UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT
TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): September 16, 2015
Commission file number 001-11625
Pentair plc
(Exact name of Registrant as specified in its charter)
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Ireland |
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98-1141328 |
(State or other jurisdiction of
incorporation or organization) |
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(I.R.S. Employer
Identification number) |
P.O. Box 471, Sharp Street, Walkden, Manchester, M28 8BU United Kingdom
(Address of principal executive offices, including Zip Code)
Registrants telephone number, including area code: +44-161-703-1885
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:
¨ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
ITEM 2.03 |
Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. |
On September 16, 2015, Pentair plc (the Company), Pentair Finance S.A. (Pentair Finance) and Pentair Investments
Switzerland GmbH (Pentair Investments) completed a public offering (the Offering) of $500.0 million aggregate principal amount of Pentair Finances 2.900% Senior Notes due 2018 (the 2018 Notes), $400.0
million aggregate principal amount of Pentair Finances 3.625% Senior Notes due 2020 (the 2020 Notes) and $250.0 million aggregate principal amount of Pentair Finances 4.650% Senior Notes due 2025 (the 2025 Notes
and with the 2018 Notes and 2020 Notes, the Notes). The Notes are fully and unconditionally guaranteed as to payment of principal and interest by the Company and Pentair Investments (the Guarantees).
The Notes were issued under an Indenture (the Base Indenture), dated as of September 16, 2015, among the Company, Pentair
Finance, Pentair Investments and U.S. Bank National Association, as trustee (the Trustee), as supplemented by a First Supplemental Indenture, between the Company, Pentair Finance, Pentair Investments and the Trustee, establishing the
terms and providing for the issuance of the 2018 Notes (the 2018 Notes Supplemental Indenture), by a Second Supplemental Indenture, between the Company, Pentair Finance, Pentair Investments and the Trustee, establishing the terms and
providing for the issuance of the 2020 Notes (the 2020 Notes Supplemental Indenture), and by a Third Supplemental Indenture, between the Company, Pentair Finance, Pentair Investments and the Trustee, establishing the terms and providing
for the issuance of the 2025 Notes (the 2025 Notes Supplemental Indenture).
The 2018 Notes Supplemental Indenture and form of
the 2018 Note, which is included therein, provide, among other things, that the 2018 Notes bear interest at a rate of 2.900% per year (payable semi-annually in arrears on March 15 and September 15 of each year, beginning on
March 15, 2016), and will mature on September 15, 2018. The 2020 Notes Supplemental Indenture and form of the 2020 Note, which is included therein, provide, among other things, that the 2020 Notes bear interest at a rate of 3.625% per
year (payable semi-annually in arrears on March 15 and September 15 of each year, beginning on March 15, 2016), and will mature on September 15, 2020. The 2025 Notes Supplemental Indenture and form of the 2025 Note, which is
included therein, provide, among other things, that the 2025 Notes bear interest at a rate of 4.650% per year (payable semi-annually in arrears on March 15 and September 15 of each year, beginning on March 15, 2016), and will
mature on September 15, 2025. The interest rate payable on each of the 2018 Notes, the 2020 Notes and the 2025 Notes is subject to adjustment from time to time if a debt rating agency downgrades (or subsequently upgrades) the debt rating
assigned to such series of Notes.
The Company intends to use the net proceeds from the Offering, the net proceeds from the offering of
500.0 million aggregate principal amount of Pentair Finances 2.450% Senior Notes due 2019 (the Concurrent Offering) and borrowings under the Companys revolving credit facility to finance the acquisition of ERICO
Global Company (ERICO), including the repayment of outstanding ERICO debt, for $1.8 billion. If the Company has not consummated the ERICO acquisition by December 31, 2015 or if the merger agreement relating to the acquisition of
ERICO is terminated on or prior to December 31, 2015, then the Notes are subject to special mandatory redemption at a redemption price equal to 101% of the aggregate principal amount of the Notes, plus accrued and unpaid interest, if any, from
the date of original issuance to, but not including, the special mandatory redemption date.
For the 2018 Notes, at any time, for the 2020
Notes, prior to August 15, 2020, and for the 2025 Notes, prior to June 15, 2025, Pentair Finance may redeem the Notes at a make-whole redemption price, plus accrued and unpaid interest on the Notes being redeemed to, but not
including, the redemption date. At any time on or after August 15, 2020, with respect to the 2020 Notes, or on or after June 15, 2025, with respect to the 2025 Notes, Pentair Finance may redeem such Notes at a redemption price equal to
100% of the aggregate principal amount of the Notes being redeemed, plus accrued and unpaid interest on the Notes being redeemed to, but not including, the redemption date. Pentair Finance is required to offer to repurchase the Notes for cash at a
price of 101% of the aggregate principal amount of the Notes, plus accrued and unpaid interest, upon the occurrence of a change of control triggering event. Pentair Finance also may redeem all, but not less than all, of a series of Notes in the
event of certain tax changes affecting such Notes.
The Base Indenture, the 2018 Notes Supplemental Indenture, the 2020 Notes Supplemental
Indenture and the 2025 Notes Supplemental Indenture contain customary events of default. If an event of default occurs and is continuing with respect to any series of the Notes, then the Trustee or the holders of at least 25% of the principal amount
of the outstanding Notes of that series may declare the Notes of that series to be due and payable immediately. In addition, in the case of an event of default arising from certain events of bankruptcy, insolvency or reorganization, all outstanding
Notes will become due and payable immediately.
1
The descriptions of the Base Indenture, the 2018 Notes Supplemental Indenture, the 2020 Notes
Supplemental Indenture and the 2025 Notes Supplemental Indenture set forth above are qualified by reference to the Base Indenture, the 2018 Notes Supplemental Indenture, the 2020 Notes Supplemental Indenture and the 2025 Notes Supplemental Indenture
filed as Exhibits 4.1, 4.2, 4.3 and 4.4, respectively, to this Current Report on Form 8-K and incorporated by reference herein.
The Notes and the Guarantees are registered under the Securities Act of
1933, as amended, pursuant to a Registration Statement on Form S-3 (Registration No. 333-204066) that the Company, Pentair Finance and Pentair Investments filed with the Securities and Exchange Commission on May 11, 2015. The Company is
also filing certain exhibits as part of this Current Report on Form 8-K for purposes of such Registration Statement. See Item 9.01. Financial Statements and Exhibits.
ITEM 9.01 |
Financial Statements and Exhibits. |
(d) |
Exhibits. The following exhibits are filed herewith: |
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Exhibit |
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Description |
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4.1 |
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Indenture, dated as of September 16, 2015, among Pentair Finance S.A. (as Issuer), Pentair plc (as Parent and Guarantor), Pentair Investments Switzerland GmbH (as Guarantor) and U.S. Bank National Association (as Trustee). |
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4.2 |
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First Supplemental Indenture, dated as of September 16, 2015, among Pentair Finance S.A. (as Issuer), Pentair plc (as Parent and Guarantor), Pentair Investments Switzerland GmbH (as Guarantor) and U.S. Bank National Association (as
Trustee). |
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4.3 |
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Second Supplemental Indenture, dated as of September 16, 2015, among Pentair Finance S.A. (as Issuer), Pentair plc (as Parent and Guarantor), Pentair Investments Switzerland GmbH (as Guarantor) and U.S. Bank National Association (as
Trustee). |
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4.4 |
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Third Supplemental Indenture, dated as of September 16, 2015, among Pentair Finance S.A. (as Issuer), Pentair plc (as Parent and Guarantor), Pentair Investments Switzerland GmbH (as Guarantor) and U.S. Bank National Association (as
Trustee). |
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5.1 |
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Opinion of Foley & Lardner LLP with respect to the Notes and Guarantees. |
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5.2 |
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Opinion of Allen & Overy, société en commandite simple (inscrite au barreau de Luxembourg), with respect to the Notes. |
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5.3 |
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Opinion of Arthur Cox with respect to the Guarantees issued by Pentair plc. |
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5.4 |
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Opinion of Bär & Karrer with respect to the Guarantees issued by Pentair Investments Switzerland GmbH. |
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23.1 |
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Consent of Foley & Lardner LLP (included in Exhibit 5.1). |
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23.2 |
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Consent of Allen & Overy, société en commandite simple (inscrite au barreau de Luxembourg), (included in Exhibit 5.2). |
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23.3 |
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Consent of Arthur Cox (included in Exhibit 5.3). |
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23.4 |
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Consent of Bär & Karrer (included in Exhibit 5.4). |
2
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned, hereunto duly authorized, on September 16, 2015.
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PENTAIR PLC |
Registrant |
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By: |
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/s/ Angela D. Lageson |
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Angela D. Lageson |
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Senior Vice President, General Counsel and Secretary |
3
PENTAIR PLC
Exhibit Index to Current Report on Form 8-K
Dated September 16, 2015
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Exhibit |
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Description |
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4.1 |
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Indenture, dated as of September 16, 2015, among Pentair Finance S.A. (as Issuer), Pentair plc (as Parent and Guarantor), Pentair Investments Switzerland GmbH (as Guarantor) and U.S. Bank National Association (as Trustee). |
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4.2 |
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First Supplemental Indenture, dated as of September 16, 2015, among Pentair Finance S.A. (as Issuer), Pentair plc (as Parent and Guarantor), Pentair Investments Switzerland GmbH (as Guarantor) and U.S. Bank National Association (as
Trustee). |
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4.3 |
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Second Supplemental Indenture, dated as of September 16, 2015, among Pentair Finance S.A. (as Issuer), Pentair plc (as Parent and Guarantor), Pentair Investments Switzerland GmbH (as Guarantor) and U.S. Bank National Association (as
Trustee). |
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4.4 |
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Third Supplemental Indenture, dated as of September 16, 2015, among Pentair Finance S.A. (as Issuer), Pentair plc (as Parent and Guarantor), Pentair Investments Switzerland GmbH (as Guarantor) and U.S. Bank National Association (as
Trustee). |
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5.1 |
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Opinion of Foley & Lardner LLP with respect to the Notes and Guarantees. |
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5.2 |
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Opinion of Allen & Overy, société en commandite simple (inscrite au barreau de Luxembourg), with respect to the Notes. |
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5.3 |
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Opinion of Arthur Cox with respect to the Guarantees issued by Pentair plc. |
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5.4 |
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Opinion of Bär & Karrer with respect to the Guarantees issued by Pentair Investments Switzerland GmbH. |
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23.1 |
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Consent of Foley & Lardner LLP (included in Exhibit 5.1). |
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23.2 |
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Consent of Allen & Overy, société en commandite simple (inscrite au barreau de Luxembourg), (included in Exhibit 5.2). |
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23.3 |
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Consent of Arthur Cox (included in Exhibit 5.3). |
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23.4 |
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Consent of Bär & Karrer (included in Exhibit 5.4). |
4
Exhibit 4.1
EXECUTION VERSION
PENTAIR FINANCE S.A.,
as Issuer
AND
PENTAIR PLC,
as Parent and Guarantor
AND
PENTAIR INVESTMENTS SWITZERLAND GMBH,
as Guarantor
AND
U.S. BANK NATIONAL ASSOCIATION,
as Trustee
INDENTURE
Dated as of September 16, 2015
UNSUBORDINATED DEBT SECURITIES
TABLE OF CONTENTS
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Page |
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ARTICLE I. DEFINITIONS |
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1 |
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Section 1.01 |
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Definitions of Terms. |
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1 |
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ARTICLE II. ISSUE, DESCRIPTION, TERMS, EXECUTION, REGISTRATION AND EXCHANGE OF SECURITIES |
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9 |
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Section 2.01 |
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Designation and Terms of Securities. |
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9 |
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Section 2.02 |
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Form of Securities and Trustees Certificate. |
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12 |
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Section 2.03 |
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Denominations; Provisions for Payment. |
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14 |
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Section 2.04 |
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Execution and Authentications. |
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15 |
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Section 2.05 |
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Transfer and Exchange. |
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16 |
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Section 2.06 |
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Temporary Securities. |
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24 |
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Section 2.07 |
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Mutilated, Destroyed, Lost or Stolen Securities. |
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24 |
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Section 2.08 |
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Cancellation. |
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25 |
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Section 2.09 |
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Third Party Beneficiaries. |
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25 |
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Section 2.10 |
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Authenticating Agent. |
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26 |
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Section 2.11 |
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Global Securities. |
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26 |
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Section 2.12 |
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CUSIP Numbers. |
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27 |
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Section 2.13 |
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Securities Denominated in Foreign Currencies. |
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27 |
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Section 2.14 |
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Wire Transfers. |
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27 |
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Section 2.15 |
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Designated Currency. |
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28 |
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Section 2.16 |
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Form of Guarantee. |
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28 |
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ARTICLE III. REDEMPTION OF SECURITIES AND SINKING FUND PROVISIONS |
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29 |
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Section 3.01 |
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Redemption. |
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29 |
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Section 3.02 |
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Notice of Redemption. |
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29 |
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Section 3.03 |
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Payment Upon Redemption. |
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30 |
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Section 3.04 |
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Sinking Fund. |
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31 |
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Section 3.05 |
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Satisfaction of Sinking Fund Payments with Securities. |
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31 |
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Section 3.06 |
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Redemption of Securities for Sinking Fund. |
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32 |
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ARTICLE IV. CERTAIN COVENANTS |
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32 |
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Section 4.01 |
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Payment of Principal, Premium and Interest. |
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32 |
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Section 4.02 |
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Maintenance of Office or Agency. |
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32 |
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Section 4.03 |
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Paying Agents. |
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33 |
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Section 4.04 |
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Statement by Officers as to Default. |
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33 |
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Section 4.05 |
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Appointment to Fill Vacancy in Office of Trustee. |
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34 |
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ARTICLE V. SECURITYHOLDERS LISTS AND REPORTS BY THE COMPANY AND THE TRUSTEE |
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34 |
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Section 5.01 |
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Company to Furnish Trustee Names and Addresses of Securityholders. |
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34 |
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Section 5.02 |
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Preservation of Information; Communications with Securityholders. |
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34 |
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Section 5.03 |
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Reports by the Company. |
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35 |
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Section 5.04 |
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Reports by the Trustee. |
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35 |
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i
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ARTICLE VI. REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS ON EVENT OF DEFAULT |
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35 |
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Section 6.01 |
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Events of Default. |
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35 |
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Section 6.02 |
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Collection of Indebtedness and Suits for Enforcement by Trustee. |
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37 |
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Section 6.03 |
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Application of Funds Collected. |
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38 |
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Section 6.04 |
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Limitation on Suits. |
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39 |
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Section 6.05 |
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Rights and Remedies Cumulative; Delay or Omission not Waiver. |
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40 |
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Section 6.06 |
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Control by Securityholders. |
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40 |
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Section 6.07 |
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Undertaking to Pay Costs. |
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41 |
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Section 6.08 |
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Waiver Of Usury, Stay Or Extension Laws. |
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41 |
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ARTICLE VII. CONCERNING THE TRUSTEE |
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42 |
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Section 7.01 |
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Certain Duties and Responsibilities of Trustee. |
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42 |
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Section 7.02 |
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Certain Rights of Trustee. |
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43 |
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Section 7.03 |
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Trustee not Responsible for Recitals or Issuance of Securities. |
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44 |
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Section 7.04 |
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May Hold Securities. |
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45 |
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Section 7.05 |
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Funds Held in Trust. |
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45 |
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Section 7.06 |
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Compensation, Reimbursement and Indemnification. |
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45 |
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Section 7.07 |
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Reliance on Officers Certificate. |
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46 |
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Section 7.08 |
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Disqualification; Conflicting Interests. |
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46 |
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Section 7.09 |
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Corporate Trustee Required; Eligibility. |
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46 |
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Section 7.10 |
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Resignation and Removal; Appointment of Successor. |
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46 |
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Section 7.11 |
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Acceptance of Appointment By Successor. |
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48 |
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Section 7.12 |
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Merger, Conversion, Consolidation or Succession to Business. |
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49 |
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Section 7.13 |
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Preferential Collection of Claims Against the Company. |
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49 |
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ARTICLE VIII. CONCERNING THE SECURITYHOLDERS |
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49 |
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Section 8.01 |
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Evidence of Action by Securityholders. |
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49 |
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Section 8.02 |
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Proof of Execution by Securityholders. |
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50 |
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Section 8.03 |
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Who May be Deemed Owners. |
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50 |
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Section 8.04 |
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Certain Securities Owned by Company Disregarded. |
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51 |
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Section 8.05 |
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Actions Binding on Future Securityholders. |
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51 |
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ARTICLE IX. SUPPLEMENTAL INDENTURES |
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51 |
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Section 9.01 |
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Supplemental Indentures Without the Consent of Securityholders. |
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51 |
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Section 9.02 |
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Supplemental Indentures with Consent of Securityholders. |
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53 |
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Section 9.03 |
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Effect of Supplemental Indentures. |
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54 |
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Section 9.04 |
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Securities Affected by Supplemental Indentures. |
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54 |
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Section 9.05 |
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Execution of Supplemental Indentures. |
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55 |
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ARTICLE X. SUCCESSOR |
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55 |
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Section 10.01 |
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Consolidation, Merger and Sale of Assets. |
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55 |
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Section 10.02 |
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Successor Person Substituted. |
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56 |
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ii
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ARTICLE XI. SATISFACTION AND DISCHARGE |
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56 |
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Section 11.01 |
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Applicability of Article. |
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56 |
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Section 11.02 |
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Satisfaction and Discharge of Indenture. |
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56 |
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Section 11.03 |
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Defeasance and Discharge of Obligations; Covenant Defeasance. |
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57 |
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Section 11.04 |
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Deposited Funds to be Held in Trust. |
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59 |
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Section 11.05 |
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Payment of Funds Held by Paying Agents. |
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60 |
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Section 11.06 |
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Repayment to the Company or a Guarantor. |
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60 |
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Section 11.07 |
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Reinstatement. |
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60 |
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ARTICLE XII. IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS |
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61 |
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Section 12.01 |
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No Recourse. |
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61 |
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ARTICLE XIII. MISCELLANEOUS PROVISIONS |
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61 |
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Section 13.01 |
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Effect on Successors and Assigns. |
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61 |
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Section 13.02 |
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Actions by Successor. |
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61 |
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Section 13.03 |
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Notices. |
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62 |
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Section 13.04 |
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Governing Law. |
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63 |
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Section 13.05 |
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Treatment of Securities as Debt. |
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63 |
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Section 13.06 |
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Compliance Certificates and Opinions. |
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63 |
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Section 13.07 |
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Payments on Business Days. |
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64 |
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Section 13.08 |
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Conflict with Trust Indenture Act. |
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64 |
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Section 13.09 |
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Counterparts. |
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64 |
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Section 13.10 |
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Separability. |
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64 |
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Section 13.11 |
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No Adverse Interpretation of Other Agreements. |
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65 |
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Section 13.12 |
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Table of Contents, Headings, Etc. |
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65 |
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Section 13.13 |
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Consent to Jurisdiction and Service of Process. |
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65 |
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Section 13.14 |
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Waiver of Jury Trial. |
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66 |
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Section 13.15 |
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USA Patriot Act. |
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66 |
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Section 13.16 |
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Force Majeure. |
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66 |
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ARTICLE XIV. ADDITIONAL AMOUNTS; CERTAIN TAX PROVISIONS |
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66 |
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Section 14.01 |
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Redemption Upon Changes in Withholding Taxes. |
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66 |
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Section 14.02 |
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Payment of Additional Amounts. |
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67 |
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ARTICLE XV. GUARANTEES |
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71 |
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Section 15.01 |
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Guarantee. |
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71 |
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Section 15.02 |
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Execution and Delivery of Guarantee. |
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72 |
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Section 15.03 |
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Release of Guarantee. |
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73 |
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iii
Cross Reference Table*
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Section of Trust Indenture Act
of 1939, as amended |
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Section of Indenture |
310(a) |
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7.09 |
310(b) |
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7.08 |
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7.10 |
310(c) |
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Inapplicable |
311(a) |
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7.13 |
311(b) |
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7.13 |
311(c) |
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Inapplicable |
312(a) |
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5.01 |
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5.02(a) |
312(b) |
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5.02(b) |
312(c) |
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5.02(b) |
313(a) |
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5.04(a) |
313(b) |
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5.04(b) |
313(c) |
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5.04(b) |
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5.04(c) |
313(d) |
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5.04(c) |
314(a) |
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5.03 |
314(b) |
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Inapplicable |
314(c) |
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13.06 |
314(d) |
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Inapplicable |
314(e) |
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13.06 |
314(f) |
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Inapplicable |
315(a) |
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7.01 |
315(b) |
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6.01(c) |
315(c) |
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7.01(a) |
315(d) |
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7.01(b) |
315(e) |
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6.07 |
316(a) |
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6.06, 8.04 |
316(b) |
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6.04 |
316(c) |
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8.01 |
317(a) |
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6.02 |
317(b) |
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4.03 |
318(a) |
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13.08 |
* |
This Cross-Reference Table does not constitute part of the Indenture and shall not have any bearing on the interpretation of any of its terms or provisions. |
iv
THIS INDENTURE is dated as of September 16, 2015 among PENTAIR FINANCE S.A., a Luxembourg
public limited liability company (société anonyme) (the Company), PENTAIR PLC, an Irish public limited company (Parent), PENTAIR INVESTMENTS SWITZERLAND GMBH, a Swiss Gesellschaft mit
beschränkter Haftung (SwissCo), and U.S. BANK NATIONAL ASSOCIATION, a national banking association (the Trustee).
RECITALS
A. This
Indenture provides for the issuance of unsecured debt securities (the Securities), in an unlimited aggregate principal amount to be issued from time to time in one or more series, to be authenticated by the certificate of the
Trustee, and for guarantees of the Securities.
B. This Indenture is subject to the provisions of the Trust Indenture Act (as defined
below) that are deemed to be incorporated into this Indenture and shall, to the extent applicable, be governed by such provisions.
C. All
things necessary to make this Indenture a legal, valid and binding agreement, in accordance with its terms, have been done.
NOW,
THEREFORE, in consideration of the premises and the purchase of the Securities by the holders thereof, it is mutually covenanted and agreed as follows for the equal and ratable benefit of the holders of Securities:
ARTICLE I.
DEFINITIONS
Section 1.01 Definitions of Terms.
The terms defined in this Section 1.01 (except as in this Indenture otherwise expressly provided or unless the context otherwise requires)
for all purposes of this Indenture and of any indenture supplemental hereto shall have the respective meanings specified in this Section 1.01 and shall include the plural as well as the singular. All other terms used in this Indenture that are
defined in the Trust Indenture Act or that are by reference in the Trust Indenture Act defined in the Securities Act of 1933, as amended (the Securities Act) (except as herein otherwise expressly provided or unless the context
otherwise requires), shall have the meanings assigned to such terms in the Trust Indenture Act and in the Securities Act as in force at the date of the execution of this instrument. All accounting terms used herein and not expressly defined shall
have the meanings assigned to such terms in accordance with generally accepted accounting principles, and, except to the extent provided otherwise herein or in any supplemental indenture, the term generally accepted accounting principles
means such accounting principles as are generally accepted in the United States at the time of any computation.
144A Global
Security, with respect to any series of Securities, means one or more Global Securities bearing the Private Placement Legend that will be issued in an aggregate amount of denominations equal in total to the outstanding principal amount of
the Securities of such series sold in global form in reliance on Rule 144A.
Additional Amounts has the meaning set forth in Section 14.02.
Affiliate, with respect to 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 the purposes of this definition, control when used with respect to any specified Person means the power to direct the management and policies of such Person,
directly or indirectly, whether through ownership of voting securities, by contract or otherwise; and the terms controlling and controlled have meanings correlative to the foregoing.
Applicable Procedures, with respect to any transfer or exchange of or for beneficial interests in any Global Security for a
series of Securities, means the rules and procedures of the Depositary, Euroclear and Clearstream that apply to such transfer or exchange at the relevant time.
Authenticating Agent means an authenticating agent with respect to all or any of the series of Securities appointed with
respect to all or any series of the Securities by the Trustee pursuant to Section 2.10.
Authentication Order has
the meaning set forth in Section 2.04.
Board of Directors means the Board of Directors of the Company or a
Guarantor, as applicable, or any duly authorized committee of such Board of Directors.
Board Resolution means a copy
of a resolution certified by the Secretary or an Assistant Secretary of the Company or a Guarantor, as applicable, to have been duly adopted by its Board of Directors and to be in full force and effect on the date of such certification.
Business Day, with respect to any series of Securities, means any day other than Saturday, Sunday or a day on which Federal
or State banking institutions in the Borough of Manhattan, The City of New York, or in the city where the office or agency for payment on the Securities is maintained pursuant to Section 4.02, are authorized or obligated by law, executive order
or regulation to close.
Capital Stock of any Person means any and all shares, interests, participations, rights in or
other equivalents (however designated) of such Persons capital stock, other equity interests whether now outstanding or issued after the date of this Indenture, partnership interests (whether general or limited), any other interest or
participation that confers on a Person the right to receive a share of the profits and losses of, or distributions of assets of, the issuing Person and any rights (other than debt securities convertible into Capital Stock), warrants or options
exchangeable for or convertible into such Capital Stock.
Clearstream means Clearstream Banking S.A., or its
successors.
Code means the U.S. Internal Revenue Code of 1986, as amended.
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Commission means the Securities and Exchange Commission.
Company means Pentair Finance S.A. until a successor entity shall have become such pursuant to Article X, and thereafter
Company shall mean such successor entity.
Corporate Trust Office means the office of the Trustee at which,
at any particular time, its corporate trust business shall be principally administered, which office at the date hereof is located at U.S. Bank National Association, 60 Livingston Avenue, St. Paul, MN 55107, Attention: Global Corporate Trust
Services, or such other address as the Trustee may designate from time to time by notice to the Securityholders and the Company, or the designated corporate trust office of any successor Trustee (or such other address as such successor Trustee may
designate from time to time by notice to the Securityholders and the Company).
Currency means Dollars or Foreign
Currency.
Default means any event, act or condition that with notice or lapse of time, or both, would constitute an
Event of Default.
Defaulted Interest has the meaning set forth in Section 2.03.
Definitive Security means a certificated Security registered in the name of the Securityholder thereof and issued in
accordance with Section 2.05.
Depositary, with respect to Securities of any series which the Company shall
determine will be issued in whole or in part as a Global Security, means The Depository Trust Company (DTC), New York, New York, another clearing agency, or any successor registered as a clearing agency under the Exchange Act, and
any other applicable U.S. or foreign statute or regulation, which, in each case, shall be designated by the Company pursuant to Section 2.01.
Designated Currency has the meaning set forth in Section 2.15.
Distribution Compliance Period means the restricted period as defined in Rule 903(b)(3) under the Securities Act.
Dollar or $ means such currency of the United States as at the time of payment is legal tender for the
payment of public and private debts.
Dollar Equivalent means, with respect to any monetary amount in a Foreign
Currency, at any time for the determination thereof, the amount of Dollars obtained by converting such Foreign Currency involved in such computation into Dollars at the spot rate for the purchase of Dollars with the applicable Foreign Currency as
quoted by JPMorgan Chase Bank, N.A. (unless another comparable financial institution is designated by the Company) in New York, New York, at approximately 11:00 a.m. (New York time) on the date two business days prior to such determination.
Euroclear means Euroclear Bank S.A./N.V., or its successor, as operator of the Euroclear System.
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Event of Default, with respect to Securities of a particular series, means any
event specified in Section 6.01, continued for the period of time, if any, therein designated.
Exchange Act means
the Securities Exchange Act of 1934, as amended.
Foreign Currency means a currency, currency unit or composite
currency, including the euro, issued by the government of one or more countries other than the United States or by any recognized confederation or association of such governments or a composite currency the value of which is determined by reference
to the values of the currencies of any group of countries.
Global Security, with respect to any series of Securities,
means a Security executed by the Company and delivered by the Trustee to the Depositary or pursuant to the Depositarys instruction, all in accordance with this Indenture, which shall be registered in the name of the Depositary or its nominee.
Governmental Obligations means securities that are (i) direct obligations of the United States for the payment of
which its full faith and credit is pledged or (ii) obligations of a Person controlled or supervised by and acting as an agency or instrumentality of the United States, the payment of which is unconditionally guaranteed as a full faith and
credit obligation by the United States that, in either case, are not callable or redeemable at the option of the issuer thereof, and shall also include a depositary receipt issued by a bank (as defined in Section 3(a)(2) of the Securities Act)
as custodian with respect to any such Governmental Obligation or a specific payment of principal of or interest on any such Governmental Obligation held by such custodian for the account of the holder of such depositary receipt; provided, however,
that (except as required by law) such custodian is not authorized to make any deduction from the amount payable to the holder of such depositary receipt from any amount received by the custodian in respect of the Governmental Obligation or the
specific payment of principal of or interest on the Governmental Obligation evidenced by such depositary receipt.
Guarantee with respect to Securities of any series which the Company shall determine will be guaranteed by another Person,
means the unconditional and unsubordinated guarantee by a Guarantor of the due and punctual payment of principal of and interest on a series of Securities when and as the same shall become due and payable, whether at the stated maturity, by
acceleration, call for redemption or otherwise in accordance with the terms of the Securities of such series and this Indenture.
Guarantor shall mean any Person providing a Guarantee of the Securities of any series pursuant to Article XV.
herein, hereof and hereunder, and other words of similar import, refer to this
Indenture as a whole and not to any particular Article, Section or other subdivision.
including means including
without limitation.
Indenture means this instrument as originally executed or as it may from time to time be
supplemented or amended by one or more indentures supplemental hereto entered into in accordance with the terms hereof.
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Indirect Participant means any entity that, with respect to the Depositary,
clears through or maintains a direct or indirect, custodial relationship with a Participant.
Interest Payment Date,
when used with respect to any installment of interest on a Security of a particular series, means the date specified herein, in such Security or in a Board Resolution or in an indenture supplemental hereto with respect to such series as the fixed
date on which an installment of interest with respect to Securities of that series is due and payable.
Luxembourg
means the Grand Duchy of Luxembourg.
Officer means any director, any managing director, the chairman or any vice
chairman of the Board of Directors, the chief executive officer, the president, the chief financial officer, any vice president, the treasurer, any assistant treasurer, the secretary or any assistant secretary of the Company or a Guarantor, as the
case may be.
Officers Certificate means a certificate, signed by any director or managing director or by the
chairman or any vice chairman of the Board of Directors, or the chief executive officer, president, chief financial officer or vice president or the secretary or any assistant secretary or the treasurer or any assistant treasurer of the Company or a
Guarantor, as the case may be, that is delivered to the Trustee in accordance with the terms hereof. Each such certificate shall include the statements provided for in Section 13.06, if and to the extent required by the provisions thereof.
Opinion of Counsel means an opinion in writing of legal counsel, who may be an Officer or employee of or counsel for the
Company or a Guarantor, as applicable, that is delivered to the Trustee in accordance with the terms hereof. Each such opinion shall include the statements provided for in Section 13.06, if and to the extent required by the provisions thereof.
Original Issue Discount Security means a 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 6.01.
Outstanding, when used with reference to Securities of any series, subject to the provisions of Section 8.04, means,
as of any particular time, all Securities of such series authenticated and delivered by the Trustee under this Indenture, except:
(a) Securities theretofore canceled by the Trustee or delivered to the Trustee for cancellation;
(b) Securities, or portions thereof, for the payment or redemption of which funds in the necessary amount shall have been
deposited in trust with the Trustee or with any paying agent other than the Company, or, if the Company shall act as its own paying agent, shall have been set aside, segregated and held in trust by the Company for the Holders of such Securities,
provided that if such Securities, or portions thereof, are to be redeemed prior to the maturity thereof, notice of such redemption shall have been given as herein provided, or provision satisfactory to the Trustee shall have been made for giving
such notice; and
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(c) Securities in substitution for which other Securities shall have been
authenticated and delivered, or which shall have been paid, pursuant to the terms of Section 2.07, except with respect to any such Security as to which proof satisfactory to the Trustee is presented that such Security is held by a person in
whose hands such Security is a legal, valid and binding obligation of the Company.
In determining whether the holders of the requisite
principal amount of Outstanding Securities of any series have given any request, demand, authorization, direction, notice, consent or waiver hereunder, the principal amount of an Original Issue Discount Security that shall be deemed to be
Outstanding for such purposes shall be the amount of the principal thereof that would be due and payable as of the date of such determination upon a declaration of acceleration of the maturity thereof pursuant to Section 6.01 and the principal
amount of a Security denominated in one or more currencies that shall be deemed to be Outstanding for such purposes shall be based on the Dollar Equivalent, on the date of original issuance of such Security, of the principal amount of such Security.
Parent means Pentair plc until a successor entity shall have become such pursuant to Article X, and thereafter
Parent shall mean such successor entity.
Participant, with respect to the Depositary, Euroclear or
Clearstream, means a Person who has an account with the Depositary, Euroclear or Clearstream, respectively (and, with respect to DTC, shall include Euroclear and Clearstream).
Periodic Offering means an offering of Securities of a series from time to time, during which any or all of the specific
terms of the Securities, including the rate or rates of interest, if any, thereon, the maturity or maturities thereof and the redemption provisions, if any, with respect thereto, are to be determined by the Company or its agents upon the issuance of
such Securities in accordance with the terms of the relevant Supplemental Indenture.
Person means any individual,
corporation, limited liability company, partnership, joint venture, joint-stock company, unincorporated organization or government or any agency or political subdivision thereof.
Predecessor Security of any particular Security means every previous Security evidencing all or a portion of the same debt
as that evidenced by such particular Security. For the purposes of this definition, any Security authenticated and delivered under Section 2.07 in lieu of a lost, destroyed or stolen Security shall be deemed to evidence the same debt as the
lost, destroyed or stolen Security.
Private Placement Legend means the legend set forth in Section 2.02(b) to be
placed on all Restricted Securities issued under this Indenture or pursuant to a Board Resolution or an indenture supplemental hereto with respect to a series of Securities, except where specifically stated otherwise by the provisions of this
Indenture, such Board Resolution or such supplemental indenture.
QIB means a qualified institutional buyer
as defined in Rule 144A.
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Regulation S Global Security means, with respect to any series of Securities,
a Regulation S Temporary Global Security of such series, if required by Rule 903 of Regulation S, or a Regulation S Permanent Global Security of such series, as the case may be.
Regulation S Permanent Global Security, with respect to any series of Securities, means one or more permanent Global
Securities bearing the Private Placement Legend, that will be issued in an aggregate amount of denominations equal in total to the outstanding principal amount of the Securities of such series initially sold or, if required by Rule 903 of Regulation
S, of the Regulation S Temporary Global Security of such series upon expiration of the Distribution Compliance Period with respect to such series, as the case may be.
Regulation S Temporary Global Security, with respect to any series of Securities, means one or more temporary Global
Securities, bearing the Private Placement Legend and the Regulation S Temporary Global Security Legend, issued in an aggregate amount of denominations equal in total to the outstanding principal amount of the Securities of such series initially
sold, if required by Rule 903 of Regulation S.
Regulation S Temporary Global Security Legend means the legend set
forth in Section 2.02(d), which is required to be placed on all Regulation S Temporary Global Securities issued under this Indenture.
Regulation S means Regulation S promulgated under the Securities Act, as it may be amended from time to time, and any
successor provision thereto.
Responsible Officer means, when used with respect to the Trustee, any vice president, any
trust officer, any assistant trust officer, any assistant vice president, any assistant treasurer, or any other officer of the Trustee customarily performing 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 his knowledge of and familiarity with the particular subject and who shall have direct responsibility for the administration of this Indenture.
Restricted Definitive Security, with respect to any series of Securities, means one or more Definitive Securities of such
series bearing the Private Placement Legend issued under this Indenture.
Restricted Global Security, with respect to
any series of Securities, means one or more Global Securities of such series bearing the Private Placement Legend, issued under this Indenture.
Restricted Security, with respect to any series of Securities, means a Security of such series, unless or until it has been
(i) effectively registered under the Securities Act and disposed of in accordance with a registration statement with respect to such series or (ii) distributed to the public pursuant to Rule 144 under the Securities Act or any similar
provision then in force.
Rule 144A means Rule 144A promulgated under the Securities Act, as it may be amended from
time to time, and any successor provision thereto.
Securities means the securities authenticated and delivered under
this Indenture.
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Securityholder, Holder, holder of
Securities, registered holder, or other similar term, means the Person or Persons in whose name or names a particular Security shall be registered on the books of the Company kept for that purpose in accordance with the
terms of this Indenture.
Security Register has the meaning set forth in Section 2.05(a).
Security Registrar has the meaning set forth in Section 2.05(a).
Stated Maturity, with respect to any Security, means the date specified in such security as the fixed date on which the
payment of principal of such security is due and payable, including pursuant to any mandatory redemption provision, but excluding any provision providing for the repurchase of such security at the option of the holder thereof upon the happening of
any contingency beyond the control of the issuer unless such contingency has occurred.
Subsidiary, with respect to any
Person, means any other Person of which at least a majority of the outstanding Voting Stock at the time is owned or controlled directly or indirectly by such Person or by one or more Subsidiaries of such Person or by such Person and one or more
Subsidiaries of such Person.
SwissCo means Pentair Investments Switzerland GmbH until a successor entity shall have
become such pursuant to Article X, and thereafter SwissCo shall mean such successor entity.
Taxes has the
meaning set forth in Section 14.02.
Taxing Jurisdiction has the meaning set forth in Section 14.01.
Trustee means U.S. Bank National Association and, subject to the provisions of Article VII, shall include its successors
and assigns. The term Trustee as used with respect to a particular series of the Securities shall mean the Trustee with respect to that series.
Trust Indenture Act means the Trust Indenture Act of 1939, as amended, as in effect at the date of execution of this
instrument subject to the provisions of Sections 9.01, 9.02, and 10.01.
Unrestricted Definitive Security, with respect
to any series of Securities, means one or more Definitive Securities representing such series of Securities that do not bear and are not required to bear the Private Placement Legend, issued under this Indenture.
Unrestricted Global Security, with respect to any series of Securities, means one or more permanent Global Securities
representing such series of Securities that do not bear and are not required to bear the Private Placement Legend, issued under this Indenture.
Unrestricted Securities, with respect to any series of Securities, means a Security (i) effectively registered under
the Securities Act and disposed of in accordance with a registration statement with respect to such series or (ii) distributed to the public pursuant to Rule 144 under the Securities Act or any similar provision then in force.
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Voting Stock of a Person means Capital Stock of such Person of the class or
classes pursuant to which the holders thereof have the general voting power under ordinary circumstances to elect at least a majority of the board of directors, managers or trustees of such Person, irrespective of whether or not at the time Capital
Stock of any other class or classes shall have or might have voting power by reason of the happening of any contingency.
ARTICLE II.
ISSUE, DESCRIPTION, TERMS, EXECUTION, REGISTRATION AND
EXCHANGE OF SECURITIES
Section 2.01
Designation and Terms of Securities.
(a) 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 up to the aggregate principal amount of Securities of that series from time to time authorized by or pursuant to a Board Resolution of the Company or pursuant to
one or more indentures supplemental hereto. Prior to the initial issuance of Securities of any series, there shall be established in or pursuant to a Board Resolution of the Company, and set forth in an Officers Certificate of the Company, or
established in one or more indentures supplemental hereto, with respect to the Securities of the series:
(1) the title of the Security of
the series, which shall distinguish the Securities of the series from all other Securities;
(2) any limit upon the aggregate principal
amount of the Securities of that 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 that
series;
(3) the date or dates on which the principal and premium, if any, of the Securities of the series is payable;
(4) the rate or rates, which may be fixed or variable, at which the Securities of the series shall bear interest or the manner of calculation
of such rate or rates, if any, including any procedures to vary or reset such rate or rates, and the basis upon which interest will be calculated if other than that of a 360 day year of twelve 30-day months;
(5) the date or dates from which such interest shall accrue, the Interest Payment Dates on which such interest will be payable or the manner
of determination of such Interest Payment Dates, and the record date for the determination of holders to whom interest is payable on any such Interest Payment Dates;
(6) any trustees, authenticating agents or paying agents with respect to such series, if different from those set forth in this Indenture;
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(7) the right, if any, to extend the interest payment periods or defer the payment of interest
and the duration of such extension or deferral;
(8) the period or periods within which, the price or prices 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 Company;
(9) the obligation,
if any, of the Company to redeem, purchase or repay Securities of the series pursuant to any sinking fund or analogous provisions, including payments made in cash in anticipation of future sinking fund obligations, or at the option of a holder
thereof and the period or periods within which, the price or prices 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;
(10) the form of the Securities of the series including the form of the Trustees certificate of authentication for such series;
(11) if other than denominations of $2,000 or any integral multiple of $1,000 in excess thereof, the denominations in which the Securities of
the series shall be issuable;
(12) the Currency or Currencies in which payment of the principal of, premium, if any, and interest on,
Securities of the series shall be payable;
(13) if the principal amount payable at the Stated Maturity of Securities of the series will
not be determinable as of any one or more dates prior to such Stated Maturity, the amount which will be deemed to be such principal amount as of any such date for any purpose, including the principal amount thereof that will be due and payable upon
declaration of the maturity thereof pursuant to Section 6.01 or upon any maturity other than the Stated Maturity or that will be deemed to be Outstanding as of any such date, or, in any such case, the manner in which such deemed principal
amount is to be determined;
(14) the terms of any repurchase or remarketing rights;
(15) if the Securities of the series shall be issued in whole or in part in the form of a Global Security or Securities, the type of Global
Security to be issued; the terms and conditions, if different from those contained in this Indenture, upon which such Global Security or Securities may be exchanged in whole or in part for other individual Securities in definitive registered form;
the Depositary for such Global Security or Securities; and the form of any legend or legends to be borne by any such Global Security or Securities in addition to or in lieu of the legends referred to in Section 2.02;
(16) whether the Securities of the series will be convertible into or exchangeable for other Securities, common shares or other securities of
any kind of the Company or another obligor, and, if so, the terms and conditions upon which such Securities will be so convertible or exchangeable, including the initial conversion or exchange price or rate or the method of calculation, how and when
the conversion price or exchange ratio may be adjusted, whether conversion or exchange is mandatory, at the option of the holder or at the Companys option, the conversion or exchange period, and any other provision in addition to or in lieu of
those described herein;
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(17) any additional restrictive covenants or Events of Default that will apply to the Securities
of the series, or any changes to the restrictive covenants set forth in Article IV or the Events of Default set forth in Section 6.01 that will apply to the Securities of the series, which may consist of establishing different terms or
provisions from those set forth in Article IV or Section 6.01 or eliminating any such restrictive covenant or Event of Default with respect to the Securities of the series;
(18) any provisions granting special rights to holders when a specified event occurs;
(19) if the amount of principal of or any premium or interest on Securities of a series may be determined with reference to an index or
pursuant to a formula, the manner in which such amounts will be determined;
(20) any special tax implications of the Securities,
including provisions for original issue discount securities, if offered;
(21) whether and upon what terms Securities of a series may be
defeased if different from the provisions set forth in this Indenture;
(22) with regard to the Securities of any series that do not bear
interest, the dates for certain required reports to the Trustee;
(23) whether the Securities of the series will be issued as Unrestricted
Securities or Restricted Securities, and, if issued as Restricted Securities, the rule or regulation promulgated under the Securities Act in reliance on which they will be sold;
(24) whether the Securities of the series shall be issued with Guarantees and, if so, the identity of any Guarantor (including whether Parent
and/or SwissCo shall be a Guarantor under the series) and the terms, if any, of any Guarantee of the payment of principal and interest, if any, with respect to Securities of the series and any corresponding changes to the provisions of this
Indenture as then in effect; and
(25) any and all additional, eliminated or changed terms that shall apply to the Securities of the
series, including any terms that may be required by or advisable under United States laws or regulations, including the Securities Act and the rules and regulations promulgated thereunder, or advisable in connection with the marketing of Securities
of that series.
(b) All Securities of any one series shall be substantially identical except that Securities of any particular series may
be issued at various times, in different denominations, with different currency of payments due thereunder, with different dates on which the principal or any installment of principal is payable, with different rates of interest, if any, or
different methods by which rates of interest may be determined, with different dates from which such interest may accrue or on which such interest may be payable, and with different redemption dates, and except as may otherwise be provided in or
pursuant to any such Board Resolution or in any supplemental indenture. If any of the terms of the series are established by action taken
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pursuant to a Board Resolution of the Company, a copy of an appropriate record of such action shall be certified by the Secretary or an Assistant Secretary of the Company and delivered to the
Trustee at or prior to the delivery of the Officers Certificate of the Company setting forth the terms of the series. The terms of the Securities of any series may provide that such Securities shall be authenticated and delivered by the
Trustee upon original issuance from time to time upon written order of persons designated in such Board Resolution or supplemental indenture and that such persons are authorized to determine, consistent with such Board Resolution or supplemental
indenture, such terms and conditions of the Securities of such series.
Section 2.02 Form of Securities and Trustees Certificate.
(a) The Securities of any series and the Trustees certificate of authentication to be borne by such Securities shall be substantially of
the tenor set forth in an indenture supplemental hereto or as provided in a Board Resolution of the Company and as set forth in an Officers Certificate of the Company and may have such letters, numbers or other marks of identification or
designation and such legends or endorsements printed, lithographed or engraved thereon as the Company may deem appropriate and as are not inconsistent with the provisions of this Indenture, any Board Resolution or any indenture supplemental hereto,
or as may be required to comply with any law or with any rule or regulation made pursuant thereto or with any rule or regulation of any stock exchange on which Securities of that series may be listed, or to conform to usage.
(b) Each Restricted Security (and all Restricted Securities issued in exchange therefor or substitution thereof) shall bear a Private
Placement Legend in substantially the following form:
THIS SECURITY (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION
EXEMPT FROM REGISTRATION UNDER THE UNITED STATES SECURITIES ACT OF 1933 (THE SECURITIES ACT). THIS SECURITY MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH
PURCHASER OF THIS SECURITY IS HEREBY NOTIFIED THAT THE SELLER OF THIS SECURITY MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER.
THE HOLDER OF THIS SECURITY AGREES FOR THE BENEFIT OF THE COMPANY THAT (A) THIS SECURITY MAY BE OFFERED, RESOLD, PLEDGED OR OTHERWISE
TRANSFERRED, ONLY (I) IN THE UNITED STATES TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (II)
OUTSIDE THE UNITED STATES IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE 904 UNDER THE SECURITIES ACT, (III) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY
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RULE 144 THEREUNDER (IF AVAILABLE) OR (IV) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN EACH OF CASES (I) THROUGH (IV) IN ACCORDANCE WITH ANY APPLICABLE
SECURITIES LAWS OF ANY STATE OF THE UNITED STATES, AND (B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER OF THIS SECURITY FROM IT OF THE RESALE RESTRICTIONS REFERRED TO IN (A) ABOVE.
(c) To the extent required by the Depositary for particular series of Securities, each Global Security of such series shall bear legends in
substantially the following forms:
THIS GLOBAL SECURITY IS HELD BY THE DEPOSITARY (AS DEFINED IN THE INDENTURE GOVERNING THIS
SECURITY) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE HOLDERS OF BENEFICIAL INTERESTS HEREIN, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (I) THE TRUSTEE MAY MAKE ANY SUCH NOTATIONS HEREON AS MAY BE REQUIRED
PURSUANT TO THE INDENTURE, (II) THIS GLOBAL SECURITY MAY BE EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.05(C) OF THE INDENTURE, (III) THIS GLOBAL SECURITY MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO THE INDENTURE AND
(IV) THIS GLOBAL SECURITY MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF THE COMPANY.
UNLESS
AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR SECURITIES IN DEFINITIVE FORM, THIS SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR TO
ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY. UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY TO THE COMPANY OR
ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF ANY ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY (AND ANY PAYMENT IS MADE TO SUCH ENTITY AS MAY BE
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF HAS AN INTEREST HEREIN.
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(d) To the extent required by the Depositary, each Regulation S Temporary Global Security shall
bear a legend in substantially the following form:
THE RIGHTS ATTACHING TO THIS REGULATION S TEMPORARY GLOBAL SECURITY, AND THE
CONDITIONS AND PROCEDURES GOVERNING ITS EXCHANGE FOR DEFINITIVE SECURITIES, ARE AS SPECIFIED IN THE INDENTURE (AS DEFINED HEREIN). NEITHER THE HOLDER NOR THE HOLDER OF BENEFICIAL INTERESTS IN THIS REGULATION S TEMPORARY SECURITY SHALL BE ENTITLED TO
RECEIVE CASH PAYMENTS OF INTEREST DURING THE PERIOD WHICH SUCH HOLDER HOLDS THIS SECURITY. NOTHING IN THIS LEGEND SHALL BE DEEMED TO PREVENT INTEREST FROM ACCRUING ON THIS SECURITY.
Section 2.03 Denominations; Provisions for Payment.
The Securities shall be issuable as registered Securities and in the denominations of $2,000 or any integral multiple of $1,000 in excess
thereof, subject to Section 2.01(a)(11). The Securities of a particular series shall bear interest payable on the dates and at the rate specified as provided in Section 2.01 with respect to that series. The principal of and the
interest on the Securities of any series, as well as any premium thereon in case of redemption thereof prior to maturity, shall be payable in Dollars except as otherwise specified pursuant to Section 2.01(a)(12), at the office or agency of
the Company maintained for that purpose pursuant to Section 4.02. Each Security shall be dated the date of its authentication. Unless otherwise specified with respect to a series of Securities in accordance with the provisions of
Section 2.01(a)(4), interest on the Securities shall be computed on the basis of a 360-day year composed of twelve 30-day months.
The interest installment on any Security that is payable, and is punctually paid or duly provided for, on any Interest Payment Date for
Securities of that series shall be paid to the Person in whose name said Security (or one or more Predecessor Securities) is registered at the close of business on the regular record date for such interest installment. In the event that any Security
of a particular series or portion thereof is called for redemption and the redemption date is subsequent to a regular record date with respect to any Interest Payment Date and prior to such Interest Payment Date, interest on such Security will be
paid upon presentation and surrender of such Security as provided in Section 3.03.
Unless otherwise set forth in a Board Resolution
or one or more indentures supplemental hereto establishing the terms of any series of any Securities pursuant to Section 2.01, the term regular record date as used in this Section 2.03 with respect to a series of Securities
shall mean a date 15 days immediately preceding any Interest Payment Date, whether or not such day is a Business Day. Subject to the provisions of this Section 2.03, each Security of a series delivered under this Indenture upon registration of
transfer or in exchange for or in lieu of any other Security of such series shall carry the rights to interest accrued and unpaid, and to accrue, that were carried by such other Security.
Unless otherwise specified with respect to a series of Securities in accordance with the provisions of Section 2.01, any interest on any
Security that is payable, but is not punctually paid or duly provided for, on any Interest Payment Date for such Security (Defaulted Interest) shall forthwith cease to be payable to the registered holder on the relevant regular
record date, and such Defaulted Interest shall be paid by the Company, at its election, as provided in clause (1) or clause (2) below.
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(1) The Company may make payment of any Defaulted Interest on Securities to the
Persons in whose names such Securities (or their respective Predecessor Securities) are registered at the close of business on a special record date for the payment of such Defaulted Interest, which shall be fixed in the following manner: the
Company shall notify the Trustee in writing of the amount of Defaulted Interest proposed to be paid on each such Security and the date of the proposed payment, and at the same time the Company shall deposit with the Trustee funds in an amount equal
to the aggregate amount proposed to be paid in respect of such Defaulted Interest or shall make arrangements satisfactory to the Trustee for such deposit prior to the date of the proposed payment, such funds when deposited to be held in trust for
the benefit of the Persons entitled to such Defaulted Interest as provided in this clause (1). Thereupon the Trustee shall fix a special record date for the payment of such Defaulted Interest which shall not be more than 15 nor less than ten days
prior to the date of the proposed payment and not less than ten days after the receipt by the Trustee of the notice of the proposed payment. The Trustee promptly shall notify the Company of such special record date and, in the name and at the
expense of the Company, shall cause notice of the proposed payment of such Defaulted Interest and the special record date therefor to be mailed, first class postage prepaid, to each Securityholder at his or her address as it appears in the Security
Register, not less than ten days prior to such special record date. Notice of the proposed payment of such Defaulted Interest and the special record date therefor having been mailed as aforesaid, such Defaulted Interest shall be paid to the Persons
in whose names such Securities, or their respective Predecessor Securities, are registered on such special record date and shall not be payable pursuant to the following clause (2).
(2) The Company may make payment of any Defaulted Interest on any Securities in any other lawful manner not inconsistent with
the requirements of any securities exchange on which such Securities may be listed, and upon such notice as may be required by such exchange.
Section 2.04 Execution and Authentications.
The Securities (except Securities which are issued in bearer form, which shall be signed by two Directors of the Company in office at the time
of issue of such Securities issued in bearer form) shall be signed on behalf of the Company in accordance with the articles of association of the Company, the relevant Board Resolution or by any two members of the Board of Directors of the Company.
Signatures may be in the form of a manual or facsimile signature. In the case of Definitive Securities of any series, such signatures may be imprinted or otherwise reproduced on such Securities. The Securities may contain such notations, legends or
endorsements required by law, stock exchange rule or usage. Each Security shall be dated the date of its authentication by the Trustee.
A
Security shall not be valid until authenticated manually by an authorized signatory of the Trustee or by an Authenticating Agent. Such signature shall be conclusive evidence, and the only evidence, that the Security so authenticated has been duly
authenticated and delivered
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hereunder. At any time and from time to time after the execution and delivery of this Indenture, the Company may deliver Securities of any series executed by the Company, with the form of
Guarantee thereon executed by any Guarantor thereof, if applicable, to the Trustee for authentication, together with a written order of the Company for the authentication and delivery of such Securities, signed by an Officer (an
Authentication Order), and the Trustee in accordance with such written order shall authenticate and deliver such Securities.
Notwithstanding the provisions of Section 2.01 and the preceding paragraph, in the case of Securities offered in a Periodic Offering, the
Trustee shall authenticate and deliver such Securities from time to time in accordance with an Authentication Order or such other procedures acceptable to the Trustee as may be specified by or pursuant to a supplemental indenture or the written
order of the Company delivered to the Trustee prior to the time of the first authentication of Securities of such series. With respect to Securities of a series subject to a Periodic Offering, the Trustee conclusively may rely, as to the
authorization by the Company of any such Securities, the forms and terms thereof and the legality, validity, binding effect and enforceability thereof, upon the written order of the Company, Opinion of Counsel, Officers Certificate and other
documents delivered pursuant to this Section 2.04 at or prior to the time of the first authentication of Securities of such series unless and until such written order, Opinion of Counsel, Officers Certificate or other documents have been
superseded or revoked, and written notice thereof is provided to Trustee, or expire by their terms.
Section 2.05 Transfer and Exchange.
(a) Registration of Transfer and Exchange. The Company shall keep, or cause to be kept, at its office or agency designated for such
purpose as provided in Section 4.02, a register or registers (the Security Register) in which, subject to such reasonable regulations as it may prescribe, the Company shall register the Securities and the transfers of
Securities as provided in this Article II and which at all reasonable times shall be open for inspection by the Trustee. The registrar for the purpose of registering Securities and the transfer of Securities as herein provided shall be appointed as
authorized by Board Resolution (the Security Registrar). If the Company fails to appoint or maintain another entity as Security Registrar, the Trustee shall act as such. The Company or any of its Subsidiaries may act as Security
Registrar. The Company is also required, pursuant to Luxembourg law, to maintain at its registered office a register of debt securities in registered form (registre des obligations nominatives) (the Register). Any Security
Registrar shall provide the Company, on any issue date and after any change has been made to the Security Register, with a copy of the relevant Security Register to enable the Company to maintain the Register. For purposes of Luxembourg law,
ownership of the debt securities in registered form (obligations nominatives) will be evidenced through registration from time to time in the Register, and such registration will be a means of evidencing title to the debt securities in
registered form. In case of discrepancies between the Register and the relevant Security Register, the registrations in the Register shall prevail for purposes of Luxembourg law. For the avoidance of any doubt, the Trustee shall have no
responsibility to update the Register.
To permit registrations of transfers and exchanges, the Company shall execute a new Security or
Securities of the same series as the Security presented for a like aggregate principal amount and in authorized denominations, and any Guarantor thereof shall execute the form of Guarantee or Guarantees thereon, and the Trustee shall authenticate
and deliver such Security or
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Securities upon receipt of an Authentication Order. The Trustee shall not be required to register the transfer of or exchange any Security selected for redemption in whole or in part, except the
unredeemed portion of any Security being redeemed in part.
All Securities issued upon any registration of transfer or exchange of
Securities shall be the valid obligations of the Company and any Guarantor thereof, evidencing the same indebtedness as the Securities surrendered upon such registration of transfer or exchange. Prior to such due presentment for the registration of
a transfer of any Security, the Trustee, the Company, any paying agent and the Security Registrar may deem and treat the Person in whose name any Security is registered as the absolute owner of such Security for the purpose of receiving payment of
principal of and interest on such Securities and for all other purposes, and none of the Trustee, the Company, the paying agent or the Security Registrar shall be affected by notice to the contrary.
All certifications, Officers Certificates and Opinions of Counsel required to be submitted to the Trustee pursuant to this
Section 2.05 to effect a registration of transfer or exchange may be submitted by facsimile or sent electronically in PDF format, to be followed by delivery of the original document to Trustee within three (3) Business Days of delivery by
facsimile or PDF transmission.
(b) Service Charge. No service charge shall be payable by a holder of a beneficial interest in a
Global Security or by a Holder of a Definitive Security for any exchange or registration of transfer of Securities, or for any issue of new Securities in case of partial redemption of any series. The Company, however, may require payment of a sum
sufficient to cover any tax or other governmental charge in relation thereto, other than any such taxes or other governmental charge payable upon exchange or registration of transfer pursuant to Sections 2.06, 3.03(b) and 9.04.
(c) Transfer and Exchange of Global Securities. A Global Security may not be transferred except as a whole by the Depositary for a
series of the Securities to a nominee of such Depositary, by a nominee of such Depositary to such Depositary or to another nominee of such Depositary or by such Depositary or any such nominee to a successor Depositary for a series of the Securities
or a nominee of such successor Depositary. If at any time the Depositary for a series of the Securities notifies the Company that it is unwilling or unable to continue as Depositary for such series or if at any time the Depositary for such series
shall no longer be registered or in good standing under the Exchange Act or other applicable statute or regulation, and a successor Depositary for such series is not appointed by the Company within 90 days after the Company receives such notice or
becomes aware of such condition, the provisions of Section 2.11 shall no longer be applicable to the Securities of such series. In addition, the Company may at any time determine that the Securities of any series shall no longer be represented
by a Global Security and that the provisions of Section 2.11 shall no longer apply to the Securities of such series. In either such event the Company will execute the Definitive Securities of such series, in authorized denominations, and in an
aggregate principal amount equal to the principal amount of the Global Security of such series, and any Guarantor thereof, if applicable, will execute the form of Guarantees thereon, and subject to this Section 2.05 the Trustee, upon receipt of
an Officers Certificate evidencing such determination by the Company, if applicable, will authenticate and deliver such Definitive Securities in exchange for such Global Security. Upon the exchange of
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the Global Security of such series for such Definitive Securities of such series, the Global Security shall be canceled by the Trustee. Such Definitive Securities shall be registered in such
names and in such authorized denominations as the Depositary, pursuant to instructions from its Participants or Indirect Participants or otherwise, shall in writing instruct the Trustee. The Trustee shall deliver such Securities to the Depositary
for delivery to the Persons in whose names such Securities are so registered.
Except as provided in Sections 2.06 and 2.07, a Global
Security may not be exchanged for another Security other than as provided in this Section 2.05(c); however, beneficial interests in a Global Security may be transferred and exchanged as provided in Section 2.05(d) or (e). The provisions of
this Section 2.05(c) are subject to Section 2.11.
(d) Transfer and Exchange of Beneficial Interests in the Global
Securities. The transfer and exchange of beneficial interests in the Global Securities of a series shall be effected through the Depositary, in accordance with the provisions of this Indenture, any Board Resolution and any one or more indentures
supplemental hereto, and the Applicable Procedures. Beneficial interests in the Restricted Global Securities of a series shall be subject to restrictions on transfer comparable to those set forth herein to the extent required by the Securities Act.
Transfers of beneficial interests in the Global Securities also shall require compliance with either subparagraph (1) or (2) below, as applicable, as well as one or more of the other following subparagraphs, as applicable:
(1) Transfer of Beneficial Interests in the Same Global Security. Beneficial interests in any Restricted Global Security
of a series may be transferred to Persons who take delivery thereof in the form of a beneficial interest in the same Restricted Global Security in accordance with the transfer restrictions set forth in the Private Placement Legend. Beneficial
interests in any Unrestricted Global Security of a series may be transferred to Persons who take delivery thereof in the form of a beneficial interest in an Unrestricted Global Security of such series. Subject to Section 2.05(e)(4), no written
orders or instructions shall be required to be delivered to the Security Registrar to effect the transfers described in this Section 2.05(d)(1).
(2) All Other Transfers and Exchanges of Beneficial Interests in Global Securities. In connection with all transfers and
exchanges of beneficial interests that are not subject to Section 2.05(d)(1) above, the transferor of such beneficial interest must deliver to the Security Registrar, as applicable, either:
(A)(1) an order from a Participant or an Indirect Participant given to the Depositary in accordance with the relevant
Applicable Procedures directing the Depositary to credit or cause to be credited a beneficial interest in another Global Security of such series in an amount equal to the beneficial interest to be transferred or exchanged and (2) instructions
given in accordance with the relevant Applicable Procedures containing information regarding the Participant account to be credited with such increase; or
(B)(1) an order from a Participant or an Indirect Participant given to the Depositary in accordance with the relevant
Applicable Procedures directing the
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Depositary to cause to be issued a Definitive Security of such series in an amount equal to the beneficial interest to be transferred or exchanged and (2) instructions given by the
Depositary to the Security Registrar containing information regarding the Person in whose name such Definitive Security shall be registered to effect the transfer or exchange referred to in (B)(1) above;
provided that in no event shall Definitive Securities of a series be issued upon the transfer or exchange of beneficial interests in the
Regulation S Temporary Global Security of such series prior to (y) the expiration of the relevant Distribution Compliance Period and (z) the receipt by the Security Registrar of any certificates identified by the Company or its counsel to
be required pursuant to Rule 903 and Rule 904 under the Securities Act. Upon satisfaction of all the requirements for transfer and exchange of beneficial interests in Global Securities of a series contained in this Indenture, any Board Resolution,
or one or more indentures supplemental hereto and the Securities of such series or otherwise applicable under the Securities Act, the Trustee shall adjust the principal amount of the relevant Global Security or Securities of such series pursuant to
Section 2.05(h).
(3) Transfer of Beneficial Interests to Another Restricted Global Security. A beneficial
interest in any Restricted Global Security of a series may be transferred to a Person who takes delivery thereof in the form of a beneficial interest in another Restricted Global Security of the same series if the transfer complies with the
requirements of Section 2.05(d)(2) and the Security Registrar receives a completed certificate in the form of Exhibit A.
(4) Transfer and Exchange of Beneficial Interests in a Restricted Global Security for Beneficial Interests in an
Unrestricted Global Security. A beneficial interest in any Restricted Global Security of any series may be exchanged by any holder thereof for a beneficial interest in an Unrestricted Global Security of such series or transferred to a Person who
takes delivery thereof in the form of a beneficial interest in an Unrestricted Global Security of such series if the exchange or transfer complies with the requirements of Section 2.05(d)(2) above and the Security Registrar receives a completed
certificate from such holder in the form of Exhibit A or Exhibit B, as applicable, and an opinion of counsel in form, and from legal counsel, reasonably acceptable to the Security Registrar and the Company to the effect that such exchange or
transfer is in compliance with the Securities Act and that the restrictions on transfer contained herein and in the Private Placement Legend are no longer required in order to maintain compliance with the Securities Act.
If any such transfer is effected at a time when an Unrestricted Global Security of such series has not yet been issued, the
Company shall issue and, upon receipt of an Authentication Order in accordance with Section 2.04, the Trustee shall authenticate one or more Unrestricted Global Securities of such series in an aggregate principal amount equal to the aggregate
principal amount of beneficial interests so transferred. Beneficial interests in an Unrestricted Global Security of a series cannot be exchanged for, or transferred to Persons who take delivery thereof in the form of, a beneficial interest in a
Restricted Global Security of such series.
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(e) Transfer or Exchange of Beneficial Interests for Definitive Securities.
(1) Beneficial Interests in Restricted Global Securities to Restricted Definitive Securities. If any holder of a
beneficial interest in a Restricted Global Security of a series proposes to exchange such beneficial interest for a Restricted Definitive Security of such series or to transfer such beneficial interest to a Person who takes delivery thereof in the
form of a Restricted Definitive Security of such series, then, upon receipt by the Security Registrar of a completed certificate from such holder in the form of Exhibit A or Exhibit B, as applicable, and certificates and opinions of counsel, if
applicable, the Trustee, upon receipt of written instructions accompanied by an Officers Certificate, shall cause the aggregate principal amount of the applicable Restricted Global Security of such series to be reduced accordingly pursuant to
Section 2.05(h), and the Company shall execute a Restricted Definitive Security of such series in the appropriate principal amount, and any Guarantor thereof, if applicable, shall execute the form of Guarantee thereon, and, upon receipt of an
Authentication Order pursuant to Section 2.04, the Trustee shall authenticate and deliver to the Person designated in the instructions such Restricted Definitive Security. Any Restricted Definitive Security of such series issued in exchange for
a beneficial interest in a Restricted Global Security of such series pursuant to this Section 2.05(e) shall be registered in such name or names and in such authorized denomination or denominations as the holder of such beneficial interest shall
instruct the Security Registrar through instructions from the Depositary for such series and the Participant or Indirect Participant. The Trustee shall deliver such Restricted Definitive Securities of such series to the Persons in whose names such
Securities are so registered. Any Restricted Definitive Security of such series issued in exchange for a beneficial interest in a Restricted Global Security of such series pursuant to this Section 2.05(e)(1) shall bear the Private Placement
Legend and shall be subject to all restrictions on transfer contained therein.
(2) Beneficial Interests in Restricted
Global Securities to Unrestricted Definitive Securities. A holder of a beneficial interest in a Restricted Global Security of a series may exchange such beneficial interest for an Unrestricted Definitive Security of such series or may transfer
such beneficial interest to a Person who takes delivery thereof in the form of an Unrestricted Definitive Security of such series only if the Security Registrar receives a completed certificate from such holder in the form of Exhibit A or Exhibit B,
as applicable, and an opinion of counsel in form, and from legal counsel, reasonably acceptable to the Security Registrar and the Company to the effect that such exchange or transfer is in compliance with the Securities Act and that the restrictions
on transfer contained herein and in the Private Placement Legend are no longer required in order to maintain compliance with the Securities Act.
(3) Beneficial Interests in Unrestricted Global Securities to Unrestricted Definitive Securities. If any holder of a
beneficial interest in an Unrestricted Global Security of a series proposes to exchange such beneficial interest for an Unrestricted Definitive Security of such series or to transfer such beneficial interest to a Person who takes delivery thereof in
the form of an Unrestricted Definitive Security of such series, then, upon satisfaction of the conditions set forth in Section 2.05(d)(2), the Trustee, upon receipt of written instructions accompanied by an Officers Certificate, shall
cause the
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aggregate principal amount of the applicable Unrestricted Global Security of such series to be reduced accordingly pursuant to Section 2.05(h), and the Company shall execute an Unrestricted
Definitive Security of such series in the appropriate principal amount, and any Guarantor thereof, if applicable, shall execute the form of Guarantee thereon, and, upon receipt of an Authentication Order in accordance with Section 2.04, the
Trustee shall authenticate and deliver to the Person designated in the instructions such Unrestricted Definitive Security. Any Unrestricted Definitive Security issued in exchange for a beneficial interest pursuant to this Section 2.05(e)(3)
shall be registered in such name or names and in such authorized denomination or denominations as the holder of such beneficial interest shall instruct the Security Registrar through instructions from the Depositary for such series and the
Participant or Indirect Participant. The Trustee shall deliver such Unrestricted Definitive Securities to the Persons in whose names such Securities are so registered. Any Unrestricted Definitive Security issued in exchange for a beneficial interest
pursuant to this Section 2.05(e)(3) shall not bear the Private Placement Legend.
(4) Transfer or Exchange of
Regulation S Temporary Global Securities. Notwithstanding the other provisions of this Section 2.05, a beneficial interest in the Regulation S Temporary Global Security of a series may not be (A) exchanged for a Definitive Security of
such series prior to (y) the expiration of the Distribution Compliance Period with respect to such series, unless such exchange is effected by the Company, does not require an investment decision on the part of the Holder thereof and does not
violate the provisions of Regulation S, and (z) the receipt by the Security Registrar of any certificates identified by the Company or its counsel to be required pursuant to Rule 903(b)(3)(ii)(B) under the Securities Act or (B) transferred
to a U.S. person (as such term is defined in Regulation S) or for the account or benefit of a U.S. person, other than an initial purchaser of such Regulation S Temporary Global Security, or a Person who takes delivery thereof in the form of a
Definitive Security of such series prior to the events set forth in clause (A) above or unless the transfer is pursuant to an exemption from the registration requirements of the Securities Act other than Rule 903 or 904.
(f) Transfer and Exchange of Definitive Securities for Beneficial Interests.
(1) Restricted Definitive Securities to Beneficial Interests in Restricted Global Securities. If any Holder of a
Restricted Definitive Security of a series proposes to exchange such Security for a beneficial interest in a Restricted Global Security of such series or to transfer such Restricted Definitive Securities of such series to a Person who takes delivery
thereof in the form of a beneficial interest in a Restricted Global Security of such series, then, upon receipt by the Trustee of the following documentation:
(A) if the Holder of such Restricted Definitive Security of such series proposes to exchange such Security for a beneficial
interest in a Restricted Global Security of such series, a completed certificate from such holder in the form of Exhibit B; or
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(B) if such Restricted Definitive Security is being transferred to a QIB in
accordance with Rule 144A under the Securities Act or to a non-U.S. person in an offshore transaction in accordance with Rule 903 or 904 under the Securities Act, a completed certificate to that effect set forth in Exhibit A,
the Trustee shall cancel the Restricted Definitive Security of such series, increase or cause to be increased the aggregate principal amount
of, in the case of clause (A) above, the appropriate Restricted Global Security of such series and, in the case of clause (B) above, the 144A Global Security of such series or the Regulation S Global Security of such series as applicable.
(2) Restricted Definitive Securities to Beneficial Interests in Unrestricted Global Securities. A Holder of a
Restricted Definitive Security of a series may exchange such Security for a beneficial interest in an Unrestricted Global Security of such series or transfer such Restricted Definitive Security of such series to a Person who takes delivery thereof
in the form of a beneficial interest in an Unrestricted Global Security of such series only if the Security Registrar receives a completed certificate from such Holder in the form of Exhibit A or Exhibit B, as applicable, and an opinion of counsel
in form, and from legal counsel, reasonably acceptable to the Security Registrar and the Company to the effect that such exchange or transfer is in compliance with the Securities Act and that the restrictions on transfer contained herein and in the
Private Placement Legend are no longer required in order to maintain compliance with the Securities Act. Upon receipt of evidence of the satisfaction of the conditions of any of the subparagraphs in this Section 2.05(f)(2), the Trustee shall
cancel the Restricted Definitive Securities of such series so transferred or exchanged and increase or cause to be increased the aggregate principal amount of the Unrestricted Global Security of such series.
(3) Unrestricted Definitive Securities to Beneficial Interests in Unrestricted Global Securities. A Holder of an
Unrestricted Definitive Security of a series may exchange such Security for a beneficial interest in an Unrestricted Global Security of such series or transfer such Definitive Securities of such series to a Person who takes delivery thereof in the
form of a beneficial interest in an Unrestricted Global Security of such series at any time. Upon receipt of a written request for such an exchange or transfer, the Trustee shall cancel the applicable Unrestricted Definitive Security and increase or
cause or be increased the aggregate principal amount of one of the Unrestricted Global Securities of such series. If any such exchange or transfer from a Definitive Security of a series to a beneficial interest is effected pursuant to subparagraphs
(2) or (3) of this Section 2.05(f) at a time when an Unrestricted Global Security of such series has not yet been issued, the Company shall issue and, upon receipt of an Authentication Order in accordance with Section 2.04, the
Trustee shall authenticate one or more Unrestricted Global Securities of such series in an aggregate principal amount equal to the principal amount of Definitive Securities of such series so transferred.
(g) Transfer and Exchange of Definitive Securities for Definitive Securities. Upon written request by a Holder of Definitive Securities
of a series and such Holders compliance with the provisions of this Section 2.05(g), the Trustee shall register the transfer or exchange of
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Definitive Securities of such series pursuant to the provisions of Section 2.05(a). In addition to the requirements set forth in Section 2.05(a), the requesting Holder shall provide any
additional certifications, documents, and information, as applicable, required pursuant to the following provisions of this Section 2.05(g).
(1) Restricted Definitive Securities to Restricted Definitive Securities. Any Restricted Definitive Security of a series
may be transferred to and registered in the name of Persons who take delivery thereof in the form of a Restricted Definitive Security of such series if the Trustee receives a completed certificate in the form of Exhibit A, including the
certifications, certificates and opinions of counsel required by item (3) thereof, if applicable.
(2) Restricted
Definitive Securities to Unrestricted Definitive Securities. Any Restricted Definitive Security of a series may be exchanged by the Holder thereof for an Unrestricted Definitive Security of such series or transferred to a Person or Persons who
take delivery thereof in the form of an Unrestricted Definitive Security of such series if the Security Registrar receives a completed certificate from such Holder in the form of Exhibit A or Exhibit B, as applicable and an opinion of counsel in
form, and from legal counsel, reasonably acceptable to the Company to the effect that such exchange or transfer is in compliance with the Securities Act and that the restrictions on transfer contained herein and in the Private Placement Legend are
no longer required in order to maintain compliance with the Securities Act.
(3) Unrestricted Definitive Securities to
Unrestricted Definitive Securities. A Holder of Unrestricted Definitive Securities of a series may transfer such Securities to a Person who takes delivery thereof in the form of an Unrestricted Definitive Security of such series in accordance
with Section 2.05(a). Upon receipt of a request to register such a transfer, the Security Registrar shall register the Unrestricted Definitive Securities of such series pursuant to the instructions from the Holder thereof.
(h) Cancellation and/or Adjustment of Global Securities. At such time as all beneficial interests in a particular Global Security of a
series have been exchanged for Definitive Securities of such series or a particular Global Security of a series has been redeemed, repurchased or cancelled in whole and not in part, each such Global Security of such series shall be returned to or
retained and cancelled by the Trustee in accordance with Section 2.08. At any time prior to such cancellation, if any beneficial interest in a Global Security of such series is exchanged for or transferred to a Person who will take delivery
thereof in the form of a beneficial interest in another Global Security of such series or for Definitive Securities of such series, the principal amount of Securities of such series represented by such Global Security shall be reduced accordingly
and an endorsement may be made on such Global Security by the Trustee or by the Depositary at the direction of the Trustee to reflect such reduction; and if the beneficial interest is being exchanged for or transferred to a Person who will take
delivery thereof in the form of a beneficial interest in another Global Security of such series, such other Global Security shall be increased accordingly and an endorsement may be made on such Global Security by the Trustee or by the Depositary at
the direction of the Trustee to reflect such increase.
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(i) No Exchange or Transfer. The Company shall not be required (i) to issue, exchange
or register the transfer of any Securities during a period beginning at the opening of business 15 days before the day of the mailing of a notice of redemption of the Securities of the same series and ending at the close of business on the day of
such mailing, (ii) to register the transfer of or exchange any Securities of any series or portions thereof called for redemption, or (iii) to register the transfer of or exchange a Security of any series between the applicable record date
pursuant to Section 2.01(a)(5) and the next succeeding Interest Payment Date.
(j) The Trustee shall have no obligation or duty to
monitor, determine or inquire as to compliance with any restrictions on transfer imposed under this Indenture or under applicable law with respect to any transfer of any interest in any Security (including any transfers between or among Depositary
Participants or beneficial owners of interests in any Global Security) other than to require delivery of such certificates and other documentation or evidence as are expressly required by, and to do so if and when expressly required by the terms of,
this Indenture, and to examine the same to determine substantial compliance as to form with the express requirements hereof.
Section 2.06
Temporary Securities.
Pending the preparation of definitive Securities of any series, the Company may execute temporary Securities
(printed, lithographed or typewritten) of any authorized denomination, and any Guarantor thereof, if applicable, shall execute the Guarantees thereon, and the Trustee, upon receipt of an Authentication Order, shall authenticate and deliver such
Securities. Such temporary Securities shall be substantially in the form of the definitive Securities in lieu of which they are issued, but with such omissions, insertions and variations as may be appropriate for temporary Securities, all as may be
determined by the Company. Every temporary Security of any series shall be executed by the Company, with the form of Guarantee thereon executed by any Guarantor thereof, if applicable, and be authenticated by the Trustee upon the same conditions and
in substantially the same manner, and with like effect, as the definitive Securities of such series. Without unnecessary delay the Company will execute, and if applicable any Guarantor will endorse, and will furnish definitive Securities of such
series and thereupon any or all temporary Securities of such series may be surrendered in exchange therefor without charge to the holders, at the office or agency of the Company maintained pursuant to Section 4.02 for the purpose of exchanges
of Securities of such series, and the Trustee, upon receipt of an Authentication Order, shall authenticate and such office or agency shall deliver in exchange for such temporary Securities an equal aggregate principal amount of definitive Securities
of such series, unless the Company advises the Trustee to the effect that definitive Securities need not be executed and furnished until further notice from the Company. Until so exchanged, temporary Securities of any series shall in all respects be
valid obligations under this Indenture.
Section 2.07 Mutilated, Destroyed, Lost or Stolen Securities.
In case any temporary or definitive Security shall become mutilated or be destroyed, lost or stolen, the Company, subject to the next
succeeding sentence, shall execute a new Security of the same series, bearing a number not contemporaneously outstanding in exchange and substitution for the mutilated Security, or in lieu of and in substitution for the Security so destroyed, lost
or stolen, and any Guarantor thereof, if applicable, shall execute the form of
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Guarantee thereon, and upon the Companys written request the Trustee, subject to the next succeeding sentence, upon receipt of an Authentication Order, shall authenticate and deliver such
Security. In every case the applicant for a substituted Security shall furnish to the Company and the Trustee such security or indemnity as may be required by them to save each of them harmless, and, in every case of destruction, loss or theft, the
applicant shall also furnish to the Company and the Trustee evidence to their satisfaction of the destruction, loss or theft of the applicants Security and of the ownership thereof. The Trustee, upon receipt of an Authentication Order, shall
authenticate any such substituted Security and deliver the same. Upon the issuance of any substituted Security, the Company may require the payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation
thereto and any other expenses, including the fees and expenses of the Trustee, connected therewith. In case any Security that has matured or is about to mature shall become mutilated or be destroyed, lost or stolen, the Company, instead of issuing
a substitute Security, may pay or authorize the payment of the same, without surrender thereof except in the case of a mutilated Security, if the applicant for such payment shall furnish to the Company and the Trustee such security or indemnity as
they may require to save them harmless, and, in case of destruction, loss or theft, evidence to the satisfaction of the Company and the Trustee of the destruction, loss or theft of such Security and of the ownership thereof.
Every replacement Security issued pursuant to the provisions of this Section 2.07 shall constitute an additional contractual obligation
of the Company whether or not the mutilated, destroyed, lost or stolen Security shall be found at any time, or be enforceable by anyone. All Securities shall be held and owned upon the express condition that the foregoing provisions are exclusive
with respect to the replacement or payment of mutilated, destroyed, lost or stolen Securities, and shall preclude, to the extent lawful, any and all other rights or remedies, notwithstanding any law or statute existing or hereafter enacted to the
contrary with respect to the replacement or payment of negotiable instruments or other securities without their surrender.
Section 2.08
Cancellation.
All Securities surrendered for the purpose of payment, redemption, exchange or registration of transfer, if
surrendered to the Company or any paying agent, shall be delivered to the Trustee for cancellation, or, if surrendered to the Trustee, shall be cancelled by it, and no Securities shall be issued in lieu thereof except as expressly required or
permitted by any of the provisions of this Indenture. On written request of the Company at the time of such surrender, the Trustee shall deliver to the Company evidence of the cancellation of Securities by the Trustee. If the Company shall otherwise
acquire any of the Securities, however, such acquisition shall not operate as a redemption or satisfaction of the indebtedness represented by such Securities unless and until the same are delivered to the Trustee for cancellation.
Section 2.09 Third Party Beneficiaries.
Nothing in this Indenture or in the Securities, express or implied, shall give or be construed to give to any Person, other than the parties
hereto and the holders of the Securities, any legal or equitable right, remedy or claim under or in respect of this Indenture, or under any covenant, condition or provision contained herein.
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Section 2.10 Authenticating Agent.
So long as any of the Securities of any series remain Outstanding, there may be an Authenticating Agent for any or all such series of
Securities which either the Trustee or the Company shall have the right to appoint. The Authenticating Agent shall be authorized to act on behalf of the Trustee to authenticate Securities of such series, including Securities issued upon exchange,
registration of transfer or partial redemption thereof, and Securities so authenticated shall be valid obligations for all purposes as if authenticated by the Trustee hereunder. All references in this Indenture to the authentication of Securities by
the Trustee shall be deemed to include authentication by an Authenticating Agent for such series. Each Authenticating Agent shall be acceptable to the Company and, unless otherwise specified in a supplemental indenture or other document in which the
Company appoints the Authenticating Agent, shall be a corporation that has a combined capital and surplus, as most recently reported or determined by it, sufficient under the laws of any jurisdiction under which it is organized or in which it is
doing business to conduct a trust business, and that is otherwise authorized under such laws to conduct such business and is subject to supervision or examination by Federal or State authorities. If at any time any Authenticating Agent shall cease
to be eligible in accordance with these provisions, it shall resign immediately. Any Authenticating Agent may resign at any time by giving written notice of resignation to the Trustee and to the Company. The Trustee with the Consent of the Company
at any time may, and upon written request by the Company shall, terminate the agency of any Authenticating Agent by giving written notice of termination to such Authenticating Agent and to the Company. Upon resignation, termination or cessation of
eligibility of any Authenticating Agent, either the Trustee or the Company may appoint an eligible successor Authenticating Agent acceptable to the Company. Any successor Authenticating Agent, upon acceptance of its appointment hereunder, shall
become vested with all the rights, powers and duties of its predecessor hereunder as if originally named as an Authenticating Agent pursuant hereto.
Section 2.11 Global Securities.
(a)
General. If the Company shall establish pursuant to Section 2.01 that the Securities of a particular series are to be issued as a Global Security, then the Company shall execute one or more Global Securities that (i) shall
represent, and shall be denominated in an amount equal to the aggregate principal amount of, all of the Outstanding Securities of such series, (ii) shall be registered in the name of the Depositary or its nominee and (iii) shall be
delivered to the Trustee as custodian for the Depositary or otherwise delivered pursuant to the Depositarys instructions, and any Guarantor thereof, if applicable, shall execute the Guarantee or Guarantees thereon, and the Trustee in
accordance with Section 2.04 shall authenticate such Global Security or Global Securities.
(b) Euroclear and Clearstream
Procedures Applicable. The provisions of the Operating Procedures of the Euroclear System and the Terms and Conditions Governing Use of Euroclear and the General Terms and Conditions and Customer
Handbook of Clearstream, respectively, in effect at the relevant time shall be applicable to transfers of beneficial interests in the Regulation S Global Securities of such series that are held by Participants through Euroclear or Clearstream.
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(c) Neither the Trustee nor any agent shall have any responsibility or liability for any actions
taken or not taken by the Depositary.
Section 2.12 CUSIP Numbers.
The Company in issuing the Securities of a series may use CUSIP numbers if then generally in use, and, if so, the Trustee shall use
CUSIP numbers in notices of redemption as a convenience to Securityholders; provided that any such notice may state that no representation is made as to the correctness of such numbers either as printed on the Securities or as contained
in any notice of a redemption and that reliance may be placed only on the other identification numbers printed on the Securities, and any such redemption shall not be affected by any defect in or omission of such numbers. The Company will promptly
notify the Trustee in writing of any change in the CUSIP numbers.
Section 2.13 Securities Denominated in Foreign Currencies.
Except as otherwise specified pursuant to Section 2.01 for Securities of any series, payment of the principal of, premium, if any, and
interest on, Securities of such series denominated in any Foreign Currency will be made in such Foreign Currency.
In the event any
Foreign Currency or Currencies in which any payment with respect to any series of Securities may be made ceases to be a freely convertible Currency on United States Currency markets, for any date thereafter on which payment of principal of, premium,
if any, or interest on the Securities of a series is due, the Company shall select the Currency of payment for use on such date, all as provided in the Securities of such series, in a Board Resolution or in one or more indentures supplemental
hereto. In such event, the Company shall notify the Trustee of the Currency which it has selected to constitute the funds necessary to meet the Companys obligations on such payment date and of the amount of such Currency to be paid. Such
amount shall be determined as provided in the Securities of such series, in a Board Resolution or in one or more indentures supplemental hereto. The payment with respect to such payment date shall be deposited with the Trustee by the Company solely
in the Currency so selected.
Section 2.14 Wire Transfers.
Notwithstanding any other provision to the contrary in this Indenture, the Company may make any payment required to be deposited with the
Trustee or any Paying Agent on account of principal of, premium, if any, or interest on, the Securities by any method of wire transfer to an account designated in writing by the Trustee or such Paying Agent such that funds are available on or before
the date such payment is to be made to the Holders of the Securities in accordance with the terms hereof. If the Company is acting as its own Paying Agent with respect to Securities of any series that are represented by one or more Global
Securities, the Company may make any such payment by wire transfer to an account designated in writing by the Depositary for such Securities.
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Section 2.15 Designated Currency.
The Company may provide pursuant to Section 2.01 for Securities of any series that:
(a) the obligation, if any, of the Company to pay the principal of, premium, if any, and interest on the Securities of any
series in a Foreign Currency or Dollars (the Designated Currency) as may be specified pursuant to Section 2.01(a)(12) is of the essence and agree that, to the fullest extent possible under applicable law, judgments in respect
of Securities of such series shall be given in the Designated Currency;
(b) the obligation of the Company to make payments
in the Designated Currency of the principal of, premium, if any, and interest on such Securities shall be discharged, notwithstanding any payment in any other Currency (whether pursuant to a judgment or otherwise), only to the extent of the amount
in the Designated Currency that the Securityholder receiving such payment, in accordance with normal banking procedures, may purchase with the amount paid in such other Currency after any premium and cost of exchange on the business day in the
country of issue of the Designated Currency or in the international banking community immediately following the day on which such Securityholder receives such payment;
(c) if the amount in the Designated Currency that may be so purchased for any reason falls short of the amount originally due,
the Company shall pay such additional amounts as may be necessary to compensate for such shortfall; and
(d) any obligation
of the Company not discharged by such payment shall be due as a separate and independent obligation and, until discharged as provided herein, shall continue in full force and effect.
Section 2.16 Form of Guarantee.
The
form of Guarantee shall be set forth on the applicable series of Securities substantially as follows:
GUARANTEE
For value received, [ ]
hereby absolutely, unconditionally and irrevocably guarantees (i) to the holder of this Security the payment of principal of, premium, if any, and interest on, the Security upon which this Guarantee is set forth in the amounts and at the time
when due and payable whether by declaration thereof, or otherwise, and interest on the overdue principal and interest, if any, of such Security, if lawful, to the holder of such Security and the Trustee on behalf of the Holders, and (ii) to the
Trustee all amounts owed to the Trustee under the Indenture, in each case in accordance with and subject to the terms and limitations of such Security and Article XV of the Indenture. This Guarantee will not become effective until the Trustee or
Authenticating Agent duly executes the certificate of authentication on this Security. This Guarantee shall be governed by and construed in accordance with the laws of the State of New York, without regard to conflict of law principles thereof.
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Dated:
ARTICLE III.
REDEMPTION OF SECURITIES AND SINKING FUND PROVISIONS
Section 3.01 Redemption.
The
Company may redeem the Securities of any series issued hereunder on and after the dates and in accordance with the terms established for such series pursuant to Section 2.01 or 14.01. In addition, the Company, any Guarantor and their respective
Affiliates may purchase Securities from the holders thereof from time to time, either in the open market at prevailing prices or in private transactions at negotiated prices. Any Securities purchased by the Company, any Guarantor or any of their
respective Affiliates may, at the purchasers discretion, be held, resold or canceled.
Section 3.02 Notice of Redemption.
(a) If the Company desires to exercise such right to redeem all or, as the case may be, a portion of the Securities of any series, the Company
shall, or shall instruct the Trustee in writing to, give notice of such redemption to holders of the Securities of such series to be redeemed by mailing, first class postage prepaid, a notice of such redemption not less than 30 days and not more
than 90 days before the date fixed for redemption of that series to the Trustee and such holders at their last addresses as they shall appear upon the Security Register, unless a shorter period is specified in the Securities to be redeemed. Any
notice that is mailed in the manner herein provided shall be conclusively presumed to have been duly given, whether or not the registered holder receives the notice. In any case, failure duly to give such notice to the holder of any Security of any
series designated for redemption in whole or in part, or any defect in the notice, shall not affect the validity of the proceedings for the redemption of any other Securities of such series or any other series. In the case of any redemption of
Securities prior to the expiration of any restriction on such redemption provided in the terms of such Securities or elsewhere in this Indenture, the Company shall furnish the Trustee with an Officers Certificate evidencing compliance with any
such restriction.
Each such notice of redemption shall specify the date fixed for redemption and the redemption price at which Securities
of that series are to be redeemed (or if the redemption price cannot be determined at the time such notice is delivered, the formula by which such redemption price will be determined) and the CUSIP numbers of such series, and shall state that:
(i) payment of the redemption price of such Securities to be redeemed will be made at the office or agency of the Company maintained for such purpose, or, if none, at the Corporate Trust Office of the Trustee, upon presentation and surrender of
such Securities; (ii) interest accrued to the date
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fixed for redemption will be paid as specified in said notice; (iii) from and after said date interest will cease to accrue; and (iv) the redemption is for a sinking fund, if such is
the case. If less than all the Securities of a series are to be redeemed, the notice to the holders of Securities of that series to be redeemed in whole or in part shall specify the particular Securities to be so redeemed. In case any Security is to
be redeemed in part only, the notice that relates to such Security shall state the portion of the principal amount thereof to be redeemed, and shall state that on and after the redemption date, upon surrender of such Security, a new Security or
Securities of such series in principal amount equal to the unredeemed portion thereof will be issued.
(b) The Company shall give the
Trustee at least 45 days written notice, unless a shorter period shall be satisfactory to the Trustee, in advance of the date fixed for redemption as to the aggregate principal amount of Securities of the series to be redeemed. If less than
all the Securities of such series are to be redeemed, the Trustee thereupon shall select from Securities of such series Outstanding not previously called for redemption, in accordance with a method that complies with applicable legal requirements,
the rules and procedures of the Depositary, if applicable, and the requirements, if any, of the Depositary and of any stock exchange on which Securities are listed and that the Trustee considers fair and appropriate, which may include selection pro
rata or by lot, and that may provide for the selection of a portion or portions equal to $2,000 or any integral multiple of $1,000 in excess thereof of the principal amount of such Securities of such series of a denomination larger than $2,000, the
Securities of such series to be redeemed. The Trustee promptly shall notify the Company in writing of the numbers of the Securities of such series to be redeemed, in whole or in part.
The Company, if and whenever it shall so elect, by delivery of an Officers Certificate, may instruct the Trustee or any paying agent to
call all or any part of the Securities of a particular series for redemption and to give notice of redemption in the manner set forth in this Section 3.02, such notice to be in the name and at the expense of the Company or its own name, as the
Trustee or such paying agent may deem advisable. In any case in which notice of redemption is to be given by the Trustee or any such paying agent, the Company shall deliver or cause to be delivered to, or permit to remain with, the Trustee or such
paying agent, as the case may be, such Security Register, transfer books or other records, or suitable copies or extracts therefrom, sufficient to enable the Trustee or such paying agent to give any notice by mail that may be required under the
provisions of this Section 3.02.
Section 3.03 Payment Upon Redemption.
(a) If the giving of notice of redemption shall have been completed as above provided, the Securities or portions of Securities of the series
to be redeemed specified in such notice shall become due and payable on the date and at the place stated in such notice at the applicable redemption price, together with interest accrued to the date fixed for redemption, in each case as established
pursuant to Section 2.01 or 14.01. Interest on such Securities or portions of Securities shall cease to accrue on and after the date fixed for redemption, unless the Company shall default in the payment of such redemption price and accrued
interest with respect to any such Security or portion thereof. On presentation and surrender of such Securities on or after the date fixed for redemption at the place of payment specified in the notice, such Securities shall be paid and redeemed at
the applicable redemption price for such series, together with
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interest accrued thereon to the date fixed for redemption (but if the date fixed for redemption is an Interest Payment Date, the interest installment payable on such date shall be payable to the
registered holder at the close of business on the applicable record date pursuant to Section 2.01).
(b) Upon presentation of any
Security of such series that is to be redeemed in part only, the Company shall execute a new Security of the same series and tenor of authorized denominations in principal amount equal to the unredeemed portion of the Security so presented, and any
Guarantor thereof, if applicable, shall execute the form of Guarantee thereon, and the Trustee, upon receipt of an Authentication Order, shall authenticate, and the office or agency where the Security is presented shall deliver to the holder
thereof, at the expense of the Company, such new Security; except that if a Global Security is so surrendered, the Company shall execute a new Global Security of like tenor in a denomination equal to and in exchange for the unredeemed portion of the
principal of the Global Security so surrendered, and any Guarantor thereof, if applicable, shall execute the form of Guarantee thereon, and, upon receipt of an Officers Certificate requesting authentication and delivery, the Trustee, upon
receipt of an Authentication Order, shall authenticate and deliver to the Depositary for such Global Security, without service charge, such new Global Security.
Section 3.04 Sinking Fund.
The
provisions of Sections 3.04, 3.05 and 3.06 shall be applicable to any sinking fund for the retirement of Securities of a series, except as otherwise specified as contemplated by Section 2.01 for Securities of such series.
The minimum amount of any sinking fund payment provided for by the terms of Securities of any series is referred to as a mandatory
sinking fund payment, and any payment in excess of such minimum amount provided for by the terms of Securities of any series is referred to as an optional sinking fund payment. If provided for by the terms of Securities of any
series, the cash amount of any sinking fund payment may be subject to reduction as provided in Section 3.05. 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.
Section 3.05 Satisfaction of Sinking Fund Payments with Securities.
The Company (i) may deliver Outstanding Securities of a series other than any Securities previously called for redemption and
(ii) may apply as a credit Securities of a series that have been redeemed either at the election of the Company 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 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.
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Section 3.06 Redemption of Securities for Sinking Fund.
Not less than 30 days prior to each sinking fund payment date for any series of Securities, the Company 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 the series, the portion thereof, if any, that is to be satisfied by payment of cash in the Currency in which the
Securities of such series are denominated (except as provided pursuant to Section 2.01), the portion thereof, if any, that is to be satisfied by delivering and crediting Securities of that series pursuant to Section 3.05 and the basis for
such credit. Together with such Officers Certificate, the Company will deliver to the Trustee any Securities to be so delivered. Not less than 30 days before each such sinking fund payment date the Trustee shall select the Securities to be
redeemed upon such sinking fund payment date in the manner specified in Section 3.02 and cause notice of the redemption thereof to be given in the name of and at the expense of the Company in the manner provided in Section 3.02. Such
notice having been duly given, the redemption of such Securities shall be made upon the terms and in the manner stated in Section 3.03.
ARTICLE IV.
CERTAIN COVENANTS
The following covenants shall apply to the Securities, except with respect to any series of Securities for which the supplemental
indenture or resolution of the Board of Directors under which such series of Securities is issued or the form of Security for such series expressly provides that any such covenant shall not apply to such series of Securities:
Section 4.01 Payment of Principal, Premium and Interest.
The Company will duly and punctually pay or cause to be paid the principal of, premium, if any, and interest on the Securities of a series at
the time and place and in the manner provided herein and established with respect to such Securities.
Section 4.02 Maintenance of Office or
Agency.
So long as any series of the Securities remain Outstanding, the Company will maintain for such series an office or agency
where Securities of such series may be presented or surrendered for payment, where Securities of such series may be surrendered for registration of transfer or exchange and where notices and demands to or upon the Company in respect of the
Securities of such series and this Indenture may be given or served. Such designation will continue with respect to each office or agency until the Company, by written notice signed by any Officer and delivered to the Trustee, shall designate some
other office or agency for such purposes or any of them. If at any time the Company shall fail to maintain any such required office or agency or shall fail to furnish the Trustee with the address thereof, such presentations, surrenders, notices and
demands may be made or served at the Corporate Trust Office of the Trustee, and the Company hereby appoints the Trustee as its agent to receive all presentations, surrenders, notices and demands. Unless otherwise specified in accordance with
Section 2.01 with respect to a series of Securities, the Company initially designates U.S. Bank National Association, 60 Livingston Avenue, St. Paul, MN 55107, Attention: Global Corporate Trust Services, acting as the Companys agent, as
the office to be maintained by it for each such purpose.
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Section 4.03 Paying Agents.
(a) The Company, upon written notice to the Trustee accompanied by an Officers Certificate, may appoint one or more paying agents, other
than the Trustee, for all or any series of the Securities. If the Company fails to appoint or maintain another entity as paying agent, the Trustee shall act as such. The Company, any Guarantor or any of their Subsidiaries, upon notice to the
Trustee, may act as paying agent.
(b) The Company shall require each paying agent, other than the Company, any Guarantor and the Trustee,
to agree in writing with the Company, and the Company shall deliver a copy of such agreement to the Trustee, that the paying agent will hold in trust for the benefit of Securityholders or the Trustee all funds held by the paying agent for the
payment of principal, premium, if any, or interest on the Securities, and will promptly notify the Trustee in writing of any default by the Company in making any such payment. While any such default continues, the Trustee may require a paying agent
to pay all funds held by it to the Trustee. The Company at any time may require a paying agent to pay all funds held by it to the Trustee. Upon payment over to the Trustee, the paying agent, if other than the Company or a Guarantor, shall have no
further liability for the funds. If the Company or a Guarantor acts as paying agent, it shall segregate and hold in a separate trust fund for the benefit of the Securityholders all funds held by it as paying agent.
(c) Notwithstanding anything in this Section 4.03 to the contrary, (i) the agreement to hold funds in trust as provided in this
Section 4.03 is subject to the provisions of Section 11.06, and (ii) the Company at any time, for the purpose of obtaining the satisfaction and discharge or defeasance of this Indenture or for any other purpose, may pay, or direct any
paying agent to pay, to the Trustee all funds held in trust by the Company or such paying agent, such funds to be held by the Trustee upon the same terms and conditions as those upon which such funds were held by the Company or such paying agent.
Upon such payment by any paying agent to the Trustee, such paying agent shall be released from all further liability with respect to such funds.
Section 4.04 Statement by Officers as to Default.
So long as any of the Securities remain outstanding, the Company and each Guarantor will furnish to the Trustee on or before April 30 in
each year a certificate, which need not comply with Section 13.06, executed by the principal executive, financial or accounting officer of each of the Company and any Guarantor, if applicable, on their respective behalf as to his or her
knowledge of the Companys or applicable Guarantors, as the case may be, compliance with all covenants and agreements under this Indenture required to be complied with by the Company and Guarantor, respectively (such compliance to be
determined without regard to any period of grace or requirement of notice provided under this Indenture). Such certificate need not include a reference to any non-compliance that has been fully cured prior to the date as of which such certificate
speaks.
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The Company shall provide written notice to the Trustee within 30 days of the occurrence of any
Event of Default under Section 6.01 that remains continuing as of the date of such notice.
Section 4.05 Appointment to Fill Vacancy in
Office of Trustee.
The Company, whenever necessary to avoid or to fill a vacancy in the office of Trustee, will appoint, in the manner
provided in Section 7.10, a Trustee, so that there shall be at all times a Trustee hereunder.
ARTICLE V.
SECURITYHOLDERS LISTS AND REPORTS BY THE COMPANY AND
THE TRUSTEE
Section 5.01 Company to
Furnish Trustee Names and Addresses of Securityholders.
The Company will furnish or cause to be furnished to the Trustee
(a) semi-annually at least seven Business Days before each Interest Payment Date for a series of Securities (and in all events at intervals of not more than six months) a list, in such form as the Trustee may reasonably require, of the names
and addresses of the holders of each series of Securities as of such date, provided that the Company shall not be obligated to furnish or cause to furnish such list at any time that the list shall not differ in any respect from the most recent list
furnished to the Trustee by the Company and (b) at such other times as the Trustee may require in writing within 30 days after the receipt by the Company of any such request, a list of similar form and content as of a date not more than 15 days
prior to the time such list is furnished; provided, however, that, in either case, no such list need be furnished for any series for which the Trustee shall be the Security Registrar.
Section 5.02 Preservation of Information; Communications with Securityholders.
(a) The Trustee shall preserve, in as current a form as is reasonably practicable, all information as to the names and addresses of the holders
of Securities contained in the most recent list furnished to it as provided in Section 5.01 and as to the names and addresses of holders of Securities received by the Trustee in its capacity as Security Registrar (if acting in such capacity).
(b) Securityholders may communicate as provided in Section 312(b) of the Trust Indenture Act with other Securityholders with respect
to their rights under this Indenture or under the Securities. Each Securityholder, by receiving and holding a Security, agrees with each Guarantor thereof, the Company and the Trustee that none of the Company, any Guarantor or the Trustee or any
agent of any of them shall be held accountable by reason of the disclosure of any such information as to the names and addresses of the Holders in accordance with this Section 5.02(b), regardless of the source from which such information was
derived, and that the Trustee shall not be held accountable by reason of mailing any material pursuant to a request made under this Section 5.02(b).
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Section 5.03 Reports by the Company.
(a) So long as any Securities are outstanding, the Company shall file with the Trustee, within 15 days after Parent files with the Commission,
copies of the annual reports and of the information, documents and other reports (or copies of such portions of any of the foregoing as the Commission may from time to time by rules and regulations prescribe) that Parent files with the Commission
pursuant to Section 13 or Section 15(d) of the Exchange Act. The Company shall be deemed to have complied with the previous sentence to the extent that such information, documents and reports are filed with the Commission via EDGAR (or any
successor electronic delivery procedure); provided, however, that the Trustee shall have no obligation whatsoever to determine whether or not such information, documents or reports have been filed pursuant to the EDGAR system (or its successor).
(b) Delivery of such reports, information and documents to the Trustee is for informational purposes only and the Trustees receipt
of such shall not constitute constructive notice of any information contained therein or determinable from information contained therein, including the Companys compliance with any of its covenants hereunder (as to which the Trustee is
entitled to rely exclusively on Officers Certificates).
Section 5.04 Reports by the Trustee.
(a) The Trustee shall transmit to Securityholders such reports concerning the Trustee and its actions under this Indenture as may be required
pursuant to the Trust Indenture Act at the times and in the manner provided pursuant thereto. If required by Section 313(a) of the Trust Indenture Act, the Trustee shall, within sixty days after each July 15 following the date of the
initial issuance of Securities under this Indenture deliver to Securityholders a brief report, dated as of such July 15, which complies with the provisions of such Section 313(a).
(b) The Trustee shall comply with Section 313(b) and Section 313(c) of the Trust Indenture Act.
(c) A copy of each Trustees report shall, at the time of such transmission to Securityholders, be filed by the Trustee with the Company,
with any stock exchange upon which any Securities are listed, if any, and with the Commission. The Company will promptly notify the Trustee in writing when any Securities become listed on any stock exchange or delisted therefrom.
ARTICLE VI.
REMEDIES OF THE
TRUSTEE AND SECURITYHOLDERS ON
EVENT OF DEFAULT
Section 6.01 Events of Default.
(a)
Whenever used herein with respect to Securities of a particular series, Event of Default means any one or more of the following events that has occurred and is continuing, except with respect to any series of Securities for which
the supplemental indenture or resolution of the Board of Directors under which such series of Securities is issued or the form of Security
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for such series expressly provides that any such Event of Default shall not apply to such series of Securities:
(1) default in the payment of any installment of interest upon any of the Securities of such series as and when the same shall
become due and payable, and continuance of such default for a period of 30 days; or
(2) default in the payment of all or
any part of the principal of or premium, if any, on any of the Securities of such series as and when the same shall become due and payable either at maturity, upon redemption, by declaration or otherwise; or
(3) default in the payment of any sinking fund installment as and when the same shall become due and payable by the terms of
the Securities of such series; or
(4) default in the performance, or breach, of any covenant or agreement of the Company
or a Guarantor in respect of the Securities of such series and the related Guarantee (other than a default or breach that is specifically dealt with elsewhere in this Section 6.01), and continuance of such default or breach for a period of 90
days after the date on which there has been given, by registered or certified mail, to the Company and every applicable Guarantor by the Trustee or to the Company, every applicable Guarantor and the Trustee by the Holders of at least 25% in
principal amount of the Outstanding Securities of such series, a written notice specifying such default or breach and requiring it to be remedied and stating that such notice is a Notice of Default hereunder; or
(5) the Guarantee with respect to the Securities of such series shall for any reason cease to be, or shall for any reason be
asserted in writing by the Company or a Guarantor, if applicable, not to be, in full force and effect and enforceable in accordance with its terms except to the extent contemplated by this Indenture and such Guarantee; or
(6) a court having jurisdiction in the premises shall enter a decree or order for relief in respect of the Company or a
Guarantor, if applicable, in an involuntary case under any applicable bankruptcy, insolvency or other similar law now or hereafter in effect, or appointing a receiver, liquidator, assignee, custodian, trustee or sequestrator or similar official of
the Company or a Guarantor, if applicable, or for any substantial part of its property or ordering the winding up or liquidation of its affairs, and such decree or order shall remain unstayed and in effect for a period of 90 consecutive days; or
(7) the Company or a Guarantor, if applicable, shall commence a voluntary case under any applicable bankruptcy, insolvency
or other similar law now or hereafter in effect, or consent to the entry of an order for relief in an involuntary case under any such law, or consent to the appointment of or taking possession by a receiver, liquidator, assignee, custodian, trustee
or sequestrator or similar official of the Company or a Guarantor or for any substantial part of its property, or make any general assignment for the benefit of creditors; or
(9) any other Event of Default provided in the supplemental indenture or resolution of the Board of Directors under which such
series of Securities is issued or in the form of Security for such series.
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(b) If an Event of Default shall have occurred and be continuing in respect of the Securities of
a series, in each and every such case, unless the principal of all the Securities of that series shall have already become due and payable, either the Trustee at the request of the holders or the holders of not less than 25% in aggregate principal
amount of the Securities of that series then Outstanding hereunder, by notice in writing to the Company and any Guarantor thereof, and to the Trustee if given by such Securityholders, may declare the unpaid principal of all the Securities of that
series to be due and payable immediately, and upon any such declaration the same shall become and shall be immediately due and payable, notwithstanding anything contained in this Indenture or in the Securities of that series or established with
respect to that series pursuant to Section 2.01 to the contrary.
(c) The Trustee shall give to the Securityholders of any series, as
the names and addresses of such Holders appear on the Security Register, notice by mail or electronic mail in PDF format of all defaults known to the Trustee that have occurred with respect to such series, such notice to be transmitted within 90
days after the occurrence thereof, unless such defaults shall have been cured before the giving of such notice (the term default or defaults for the purposes of this Section 6.01(c) being hereby defined to mean any event
or condition which is, or with notice or lapse of time or both would become, an Event of Default); provided that, except in the case of default in the payment of the principal of, premium, if any, or interest on any of the Securities of such series,
or in the payment of any sinking or purchase fund installment with respect to the Securities of such series, the Trustee shall be protected in withholding such notice if and so long as the board of directors, the executive committee, or a trust
committee of directors or trustees and/or Responsible Officers in good faith determines that the withholding of such notice is in the interests of the Securityholders of such series.
Section 6.02 Collection of Indebtedness and Suits for Enforcement by Trustee.
(a) The Company covenants that (i) in case it shall default in the payment of any installment of interest on any of the Securities of a
series, or any payment required by any sinking or analogous fund established with respect to that series as and when the same shall have become due and payable, and such default shall have continued for a period of 30 days, or (ii) in case it
shall default in the payment of the principal of, or premium, if any, on any of the Securities of a series when the same shall have become due and payable, whether upon maturity of the Securities of a series or upon redemption or upon declaration or
otherwise, then, upon demand of the Trustee, the Company will pay to the Trustee, for the benefit of the holders of the Securities of that series, the whole amount that then shall have been become due and payable on all such Securities for
principal, premium, if any, or interest, or both, with interest upon the overdue principal, premium, if any, and, to the extent that payment of such interest is enforceable under applicable law, upon overdue installments of interest at the rate
expressed in the Securities of that series; and, in addition thereto, such further amount as shall be sufficient to cover the costs and expenses of collection, and the amount payable to the Trustee under Section 7.06.
(b) If the Company shall fail to pay such amounts forthwith upon such demand, the Trustee, in its own name and as trustee of an express trust,
shall be entitled and empowered to institute any action or proceedings at law or in equity for the collection of the amounts so due and unpaid, and may prosecute any such action or proceeding to judgment or final decree, and may enforce any such
judgment or final decree against the Company or any Guarantor, if applicable, and collect the amounts adjudged or decreed to be payable in the manner provided by law out of the property of the Company or any Guarantor, if applicable, wherever
situated.
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(c) In case of any receivership, insolvency, liquidation, bankruptcy, reorganization,
readjustment, arrangement, composition or judicial proceedings affecting the Company or any Guarantor or its respective creditors or property, the Trustee shall have power to intervene in such proceedings and take any action therein that may be
permitted by the court and applicable law and, except as otherwise provided by law, shall be entitled to file such proofs of claim and other papers and documents as may be necessary or advisable in order to have the claims of the Trustee and of the
holders of Securities of such series allowed for the entire amount due and payable by the Company under this Indenture at the date of institution of such proceedings and for any additional amount that may become due and payable by the Company after
such date, and to collect and receive any funds or other property payable or deliverable on any such claim, and to distribute the same in accordance with Section 6.03. Any receiver, assignee or trustee in bankruptcy or reorganization is hereby
authorized by each of the holders of Securities of such series to make such payments to the Trustee, and, in the event that the Trustee shall consent to the making of such payments directly to such Securityholders, to pay to the Trustee any amount
due it under Section 7.06.
(d) All rights of action and of asserting claims under this Indenture, or under any of the terms
established with respect to Securities of that series, may be enforced by the Trustee without the possession of any of such Securities, or the production thereof at any trial or other proceeding relative thereto. Any such suit or proceeding
instituted by the Trustee shall be brought in its own name as trustee of an express trust, and any recovery of judgment shall, after provision for payment to the Trustee of any amounts due under Section 7.06, be for the ratable benefit of the
holders of the Securities of such series.
In case of an Event of Default, the Trustee in its discretion or in accordance with the
direction of the holders of a majority in aggregate principal amount of the Securities of any series at the time Outstanding may proceed to protect and enforce the rights vested in it by this Indenture by such appropriate judicial proceedings as the
Trustee shall deem most effectual to protect and enforce any of such rights, either at law or in equity or in bankruptcy or otherwise, whether for the specific enforcement of any covenant or agreement contained in this Indenture or in aid of the
exercise of any power granted in this Indenture, or to enforce any other legal or equitable right vested in the Trustee by this Indenture or by law.
Nothing contained herein shall be deemed to authorize the Trustee to authorize or consent to or accept or adopt on behalf of any
Securityholder any plan of reorganization, arrangement, adjustment or composition affecting the Securities of that series or the rights of any holder thereof or to authorize the Trustee to vote in respect of the claim of any Securityholder in any
such proceeding.
Section 6.03 Application of Funds Collected.
Any funds collected by the Trustee pursuant to this Article VI with respect to a particular series of Securities shall be applied in the
following order, at the date or dates fixed by the Trustee and, in case of the distribution of such funds on account of principal, premium, if any, or
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interest, upon presentation of the Securities of that series, and notation thereon of the payment, if only partially paid, and upon surrender thereof if fully paid:
FIRST: To the payment of costs and expenses of collection and of all amounts payable to the Trustee under Section 7.06;
SECOND: To the payment of the amounts then due and unpaid upon Securities of such series for principal, premium, if any, and interest, in
respect of which or for the benefit of which such funds have been collected, ratably, without preference or priority of any kind, according to the amounts due and payable on such Securities for principal, premium, if any, and interest, respectively;
and
THIRD: To the Company.
Section 6.04 Limitation on Suits.
No holder of any Security of any series shall have any right by virtue or by availing of any provision of this Indenture to institute any suit,
action or proceeding in equity or at law upon or under or with respect to this Indenture or for the appointment of a receiver or trustee, or for any other remedy hereunder, unless (i) such holder previously shall have given to the Trustee
written notice of an Event of Default and of the continuance thereof with respect to the Securities of such series specifying such Event of Default; (ii) the holders of not less than 25% in aggregate principal amount of the Securities of such
series then Outstanding shall have made written request upon the Trustee to institute such action, suit or proceeding in its own name as trustee hereunder; (iii) such holder or holders shall have offered to the Trustee such indemnity and
security reasonably satisfactory to it against the costs, expenses and liabilities to be incurred therein or thereby; (iv) the Trustee for 60 days after its receipt of such written notice, request and offer of indemnity and security reasonably
satisfactory to it, shall have failed to institute any such action, suit or proceeding; and (v) 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 such request.
Notwithstanding anything contained herein to the contrary, any other provisions of this Indenture, the
right of any holder of any Security to receive payment of the principal of, and premium, if any, and interest on such Security, as therein provided, on or after the respective due dates expressed in such Security or, in the case of redemption, on
the redemption date, or to institute suit for the enforcement of any such payment on or after such respective dates or redemption date, shall not be impaired or affected without the consent of such holder. By accepting a Security hereunder it is
expressly understood, intended and covenanted by the taker and holder of every Security of such series with every other such taker and holder and the Trustee, that no one or more holders of Securities of such series shall have any right in any
manner whatsoever by virtue or by availing of any provision of this Indenture to affect, disturb or prejudice the rights of the holders of any other of such Securities, or to obtain or seek to obtain priority over or preference to any other such
holder, or to enforce any right under this Indenture, except in the manner herein provided and for the equal, ratable and common benefit of all holders of Securities of such series (it being understood that the Trustee does not have an affirmative
duty to ascertain whether or not such actions or forbearances are unduly prejudicial
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to such holders). For the protection and enforcement of the provisions of this Section 6.04, each Securityholder and the Trustee shall be entitled to such relief as can be given either at
law or in equity.
Section 6.05 Rights and Remedies Cumulative; Delay or Omission not Waiver.
(a) Except as otherwise provided in Section 2.07, all powers and remedies given by this Article VI to the Trustee or to the
Securityholders, to the extent permitted by law, shall be deemed cumulative and not exclusive of any other powers and remedies available to the Trustee or the holders of the Securities, by judicial proceedings or otherwise, to enforce the
performance or observance of the covenants and agreements contained in this Indenture or otherwise established with respect to such Securities.
(b) No delay or omission of the Trustee or of any holder of any of the Securities to exercise any right or power accruing upon any Event of
Default occurring and continuing shall impair any such right or power, or shall be construed to be a waiver of any such default or an acquiescence therein. Subject to the provisions of Section 6.04, every power and remedy given by this Article
VI or by law to the Trustee or the Securityholders may be exercised from time to time, and as often as shall be deemed expedient, by the Trustee or by the Securityholders.
Section 6.06 Control by Securityholders.
(a) The holders of a majority in aggregate principal amount of the Securities of any series at the time Outstanding, determined in accordance
with Section 8.04, shall have the right to direct the time, method and place of conducting any proceeding for any remedy available to the Trustee or exercising any trust or power conferred on the Trustee with respect to such series; provided,
however, that such direction shall not be in conflict with any rule of law or with this Indenture or be unduly prejudicial to the rights of holders of Securities of any other series at the time Outstanding determined in accordance with
Section 8.04. Subject to the provisions of Section 7.01, the Trustee shall have the right to decline to follow any such direction if the Trustee in good faith, by a Responsible Officer or Responsible Officers of the Trustee, shall
determine that the proceeding so directed would involve the Trustee in personal liability.
(b) In the case of an Event of Default with
respect to a series of Securities, at any time before the principal of the Securities of that series shall have been declared due and payable, the holders of a majority in aggregate principal amount of the Securities of such series at the time
Outstanding, determined in accordance with Section 8.04, on behalf of the holders of all of the Securities of such series, by written notice to the Company, any Guarantor thereof, if applicable, and the Trustee, may waive any existing default
in the performance of any of the covenants contained herein or established pursuant to Section 2.01 with respect to such series and its consequences, except a default in the payment of the principal of, premium, if any, or interest on, any of
the Securities of that series as and when the same shall become due by the terms of such Securities. Upon any such waiver, the default covered thereby and any Event of Default arising therefrom shall be deemed to be cured for all purposes of this
Indenture and the Company, the Trustee and the holders of the Securities of such series shall be restored to their former positions and rights hereunder, respectively; but no such waiver shall extend to any subsequent or other default or impair any
right consequent thereon.
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(c) At any time after the principal of the Securities of that series shall have been declared due
and payable, and before any judgment or decree for the payment of the amount due shall have been obtained or entered as hereinafter provided, the holders of a majority in aggregate principal amount of the Securities of that series at the time
Outstanding hereunder, by written notice to the Company, any Guarantor thereof, if applicable, and the Trustee, may rescind and annul such declaration and its consequences if: (i) the Company has or has caused to be paid or deposited with the
Trustee an amount sufficient to pay all matured installments of interest upon all the Securities of that series and the principal of and premium, if any, on any and all Securities of that series that shall have become due otherwise than by
acceleration, with interest upon such principal and premium, if any, and, to the extent that such payment is enforceable under applicable law, upon overdue installments of interest, at the rate expressed in the Securities of that series to the date
of such payment or deposit, and (ii) any and all Events of Default under this Indenture with respect to such series, except non-payment of the principal of, premium, if any, or interest on, any of the Securities of that series as a result of
such declaration, shall have been remedied or waived. No such rescission and annulment shall extend to or shall affect any subsequent default or impair any right consequent thereon.
(d) In case the Trustee shall have proceeded to enforce any right with respect to Securities of that series under this Indenture and such
proceedings shall have been discontinued or abandoned because of such rescission or annulment or for any other reason or shall have been determined adversely to the Trustee, then and in every such case the Company, any Guarantor thereof, if
applicable, and the Trustee shall be restored respectively to their former positions and rights hereunder, and all rights, remedies and powers of the Company and the Trustee shall continue as though no such proceedings had been taken.
Section 6.07 Undertaking to Pay Costs.
All parties to this Indenture agree, and each holder of any Securities by such holders acceptance thereof shall be deemed to have agreed,
that any court may in its discretion require, in any suit for the enforcement of any right or remedy under this Indenture, or in any suit against the Trustee for any action taken or omitted by it as Trustee, the filing by any party litigant in such
suit of an undertaking to pay the costs of such suit, and that such court may in its discretion assess reasonable costs, including reasonable attorneys fees and expenses, against any party litigant in such suit, having due regard to the merits
and good faith of the claims or defenses made by such party litigant; but the provisions of this Section 6.07 shall not apply to any suit instituted by the Trustee, to any suit instituted by any Securityholder, or group of Securityholders,
holding more than 10% in aggregate principal amount of the Outstanding Securities of any series, or to any suit instituted by any Securityholder for the enforcement of the payment of the principal of, premium, if any, or interest on any Security of
such series, on or after the respective due dates expressed in such Security or established pursuant to this Indenture.
Section 6.08 Waiver Of
Usury, Stay Or Extension Laws.
Each of the Company and any Guarantor 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 usury, stay or extension law wherever enacted, now or at any
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time hereafter in force, which may affect the covenants or the performance of this Indenture; and each of the Company and any Guarantor, to the extent that it may lawfully do so, hereby expressly
waives all benefit or advantage of any such law and covenants that it will not, by resort to any such law, hinder, delay or impede the execution of any power herein granted to the Trustee, but will suffer and permit the execution of every such power
as though no such law had been enacted.
ARTICLE VII.
CONCERNING THE TRUSTEE
Section 7.01
Certain Duties and Responsibilities of Trustee.
(a) In case an Event of Default with respect to the Securities of a series has
occurred (that has not been cured or waived), the Trustee shall exercise with respect to Securities of that series such of the rights and powers vested in it by this Indenture, and use the same degree of care and skill in their exercise, as a
prudent person would exercise or use under the circumstances in the conduct of his or her own affairs.
(b) No provision of this Indenture
shall be construed to relieve the Trustee from liability for its own negligent action, its own negligent failure to act, or its own bad faith, except that:
(1) prior to the occurrence of an Event of Default with respect to the Securities of a series and after the curing or waiving of all such
Events of Default with respect to that series that may have occurred:
(i) the duties and obligations of the Trustee shall
with respect to the Securities of such series be determined solely by the express provisions of this Indenture, and the Trustee shall not be liable with respect to the Securities of such series except for the performance of such duties and
obligations as are specifically set forth in this Indenture, and no implied covenants or obligations shall be read into this Indenture against the Trustee; and
(ii) in the absence of bad faith on the part of the Trustee, the Trustee with respect to the Securities of such series may
conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon any certificates or opinions furnished to the Trustee and conforming to the requirements of this Indenture; but in the case of any such
certificates or opinions that by any provision hereof are specifically required to be furnished to the Trustee, the Trustee shall be under a duty to examine the same to determine whether or not they conform to the requirements of this Indenture (but
need not confirm or investigate the accuracy of mathematical computations or other facts, statements and opinions stated therein);
(2)
the Trustee shall not be liable for any error of judgment made in good faith by a Responsible Officer or Responsible Officers of the Trustee, unless it shall be proved that the Trustee was negligent in ascertaining the pertinent facts;
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(3) the Trustee shall not be liable with respect to any action taken or omitted to be taken by it
in good faith in accordance with the direction of the holders of not less than a majority in principal amount of the Securities of any series at the time Outstanding, determined as provided in Sections 1.01, 6.06, 8.01 and 11.03, relating to the
time, method and place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred upon the Trustee under this Indenture with respect to the Securities of that series; and
(4) none of the provisions contained in this Indenture shall require the Trustee to expend or risk its own funds or otherwise incur personal
financial liability in the performance of any of its duties or in the exercise of any of its rights or powers, if there is reasonable ground for believing that the repayment of such funds or liability is not assured to it under the terms of this
Indenture or indemnity and security reasonably satisfactory to it against such risk is not assured.
Section 7.02 Certain Rights of Trustee.
Except as otherwise provided in Section 7.01:
(a) The Trustee may conclusively rely and shall be fully protected in acting or refraining from acting upon any resolution, certificate,
statement, instrument, opinion, report, notice, request, direction, consent, order, approval, bond, security, other evidence of indebtedness or other paper or document (whether in its original or facsimile form) believed by it to be genuine and to
have been signed or presented by the proper party or parties.
(b) Any request, direction, order, Authentication Order or demand of the
Company mentioned herein shall be sufficiently evidenced by a Board Resolution or an instrument signed in the name of the Company by an Officer (unless other evidence in respect thereof is specifically prescribed herein).
(c) The Trustee may consult with counsel of its own 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 or suffered or omitted hereunder in good faith and in reliance thereon.
(d) The Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Indenture at the request, order or
direction of any of the Securityholders, pursuant to the provisions of this Indenture, unless such Securityholders shall have offered to the Trustee indemnity satisfactory to it against the costs, expenses and liabilities that may be incurred
therein or thereby.
(e) The Trustee shall not be liable for any action taken, suffered or omitted to be taken by it in good faith and
believed by it to be authorized or within the discretion or rights or powers conferred upon it by this Indenture.
(f) The Trustee shall
not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, approval, bond, security, other evidence of indebtedness or
other papers or documents, but the Trustee, in its discretion, may make such further inquiry into such matters
43
as it may see fit, and if the Trustee shall determine to make such further inquiry or investigation, it shall be entitled to examine the books, records and premises of the Company, personally or
by agent or attorney at the sole cost of the Company and shall incur no liability or additional liability of any kind by reason of such inquiry or investigation.
(g) The Trustee shall not be deemed to have notice of any 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 is received by the Trustee at the Corporate Trust Office of the Trustee, and such notice references the Securities and this Indenture.
(h) The Trustee may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or by or through agents or
attorneys and the Trustee shall not be responsible for any misconduct or negligence on the part of any agent or attorney appointed with due care by it hereunder.
(i) The rights, privileges, protections, benefits and immunities 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.
(j) The Trustee may request that the Company 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.
(k) In no event shall the Trustee be responsible or liable for special,
indirect, punitive or consequential loss or damage of any kind whatsoever (including, but not limited to, loss of profit) irrespective of whether the Trustee has been advised of the likelihood of such loss or damage and regardless of the form of
action.
(l) The Trustee shall not be required to give any bond or surety in respect of the performance of its powers and duties
hereunder.
Section 7.03 Trustee not Responsible for Recitals or Issuance of Securities.
(a) The recitals contained herein and in the Securities shall be taken as the statements of the Company, and the Trustee assumes no
responsibility for the correctness of the same.
(b) The Trustee makes no representations as to the validity or sufficiency of this
Indenture or of the Securities.
(c) Neither the Trustee nor any Authenticating Agent shall be accountable for the use or application by
the Company of any of the Securities or of the proceeds of such Securities, or for the use or application of any funds paid over by the Trustee in accordance with any provision of this Indenture or established pursuant to Section 2.01, or for
the use or application of any funds received by any paying agent other than the Trustee.
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Section 7.04 May Hold Securities.
Each of the Trustee, any Authenticating Agent, any paying agent and the Security Registrar, in its individual or any other capacity, may become
the owner or pledgee of Securities with the same rights it would have if it were not Trustee, Authenticating Agent, paying agent or Security Registrar. However, the Trustee is subject to Sections 7.08 and 7.13.
Section 7.05 Funds Held in Trust.
Subject to the provisions of Section 11.06, all funds received by the Trustee, until used or applied as herein provided, shall be held in
trust for the purposes for which they were received, but need not be segregated from other funds except to the extent required by law. The Trustee shall be under no liability for interest on any funds received by it hereunder except such as it may
agree in writing with the Company to pay thereon.
Section 7.06 Compensation, Reimbursement and Indemnification.
(a) The Company shall pay to the Trustee, and the Trustee shall be entitled to be paid, such compensation, which shall not be limited by any
provision of law in regard to the compensation of a trustee of an express trust, as the Company and the Trustee from time to time may agree in writing, for all services rendered by it in the execution of the trusts hereby created and in the exercise
and performance of any of the powers and duties hereunder of the Trustee. Except as otherwise expressly provided herein, the Company will pay or reimburse the Trustee upon its request for all reasonable expenses and disbursements incurred or made by
the Trustee in accordance with any of the provisions of this Indenture, including the reasonable compensation as has been agreed between the Trustee and the Company from time to time and the expenses and disbursements of its counsel and of all
Persons not regularly in its employ, except any such expense or disbursement as may arise from its own negligence or bad faith. The Company and each Guarantor shall indemnify the Trustee or any predecessor Trustee (and their officers, agents,
directors and employees) for, and shall hold them harmless against, any and all loss, liability, claim, damage or expense, including taxes, other than taxes based upon, measured by or determined by the income of the Trustee, reasonably incurred by
the Trustee without negligence or bad faith on its part and arising out of or in connection with the acceptance or administration or enforcement of this trust, including the costs and expenses of defending itself against any claim of liability
whether asserted by the Company, any Guarantor, any Holder or any other Person.
(b) The obligations of the Company under this
Section 7.06 to compensate and indemnify the Trustee and to pay or reimburse the Trustee for expenses and disbursements shall: (i) be secured by a lien prior to that of the Securities upon all property and funds held or collected by the
Trustee as such, except funds held in trust for the benefit of the holders of particular Securities; and (ii) survive the termination of this Indenture and resignation or removal of the Trustee.
(c) Where the Trustee incurs expenses or renders services in connection with a bankruptcy event of default, such costs and expenses (including
reasonable attorneys fees and expenses) and the compensation for the services are intended to constitute expenses of administration under applicable Federal or State, bankruptcy, insolvency or other law.
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Section 7.07 Reliance on Officers Certificate.
Except as otherwise provided in Section 7.01, whenever in the administration of the provisions of this Indenture the Trustee shall deem it
necessary or desirable that a matter be proved or established prior to taking or suffering or omitting to take any action hereunder, such matter, unless other evidence in respect thereof be herein specifically prescribed, in the absence of
negligence or bad faith on the part of the Trustee, may be deemed to be conclusively proved and established by an Officers Certificate delivered to the Trustee and such certificate, in the absence of negligence or bad faith on the part of the
Trustee, shall be full warrant to the Trustee for any action taken, suffered or omitted to be taken by it under the provisions of this Indenture upon the faith thereof.
Section 7.08 Disqualification; Conflicting Interests.
If the Trustee has or shall acquire any conflicting interest within the meaning of Section 310(b) of the Trust Indenture Act,
the Trustee and the Company shall in all respects comply with the provisions of Section 310(b) of the Trust Indenture Act.
Section 7.09
Corporate Trustee Required; Eligibility.
There shall at all times be a Trustee with respect to the Securities issued hereunder
which shall at all times be a corporation organized and doing business under the laws of the United States or any State or Territory thereof or of the District of Columbia, or a corporation or other Person permitted to act as trustee by the
Commission, authorized under such laws to exercise corporate trust powers, having a combined capital and surplus of at least $100,000,000, and subject to supervision or examination by Federal, State, Territorial, or District of Columbia authority.
If such corporation publishes reports of condition at least annually, pursuant to law or to the requirements of the aforesaid supervising or examining authority, then for the purposes of this Section 7.09 the combined capital and surplus of
such corporation shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published. The Company may not, nor may any Affiliate of the Company, serve as Trustee. In case at any time the Trustee
shall cease to be eligible in accordance with the provisions of this Section 7.09, the Trustee shall resign immediately in the manner and with the effect specified in Section 7.10.
Section 7.10 Resignation and Removal; Appointment of Successor.
(a) The Trustee or any successor hereafter appointed may resign at any time with respect to the Securities of one or more series by giving a
written notice thereof to the Company and by transmitting notice of resignation by mail, first class postage prepaid, to the Securityholders of such series, as their names and addresses appear upon the Security Register. Upon receiving such notice
of resignation, the Company promptly shall appoint a successor trustee with respect to Securities of such series. If no successor trustee shall have been so appointed and have accepted appointment within 60 days after the retiring Trustee resigns,
the retiring Trustee, at the expense of the Company, or the Company may petition any court of competent jurisdiction for the appointment of a successor trustee with respect to Securities of
46
such series, or any Securityholder of that series who has been a bona fide holder of a Security or Securities for at least six months may on behalf of himself and all others similarly situated,
petition any such court for the appointment of a successor trustee. Such court may thereupon after such notice, if any, as it may deem proper and prescribe, appoint a successor trustee.
(b) The Company may remove the Trustee with respect to all or any series of Securities and appoint a successor trustee, or, unless the
Trustees duty to resign is stayed as provided herein, any Securityholder who has been a bona fide holder of a Security or Securities for at least six months, on behalf of that holder and all others similarly situated, may petition any court of
competent jurisdiction for the removal of the Trustee and the appointment of a successor trustee if:
(1) the Trustee shall
fail to comply with the provisions of Section 7.08 after written request therefor by the Company or by any Securityholder who has been a bona fide holder of a Security or Securities for at least six months; or
(2) the Trustee shall cease to be eligible in accordance with the provisions of Section 7.09 and shall fail to resign
after written request therefor by the Company or by any such Securityholder; or
(3) the Trustee shall become incapable of
acting, or shall be adjudged to be bankrupt or insolvent, or commences a voluntary bankruptcy proceeding, or a receiver of the Trustee or of its property shall be appointed or consented to, or any public officer shall take charge or control of the
Trustee or of its property or affairs for the purpose of rehabilitation, conservation or liquidation.
Such court may thereupon after such notice, if any,
as it may deem proper and prescribe, remove the Trustee and appoint a successor trustee. If an instrument of acceptance by a successor Trustee shall not have been delivered to the Trustee within 30 days after the giving of such notice of removal,
the Trustee being removed may petition, at the expense of the Company, any court of competent jurisdiction for the appointment of a successor Trustee with respect to the Securities of such series.
(c) The holders of a majority in aggregate principal amount of the Securities of any series at the time Outstanding at any time may remove the
Trustee with respect to such series by so notifying the Trustee and the Company and may appoint a successor Trustee for such series with the consent of the Company. If an instrument of acceptance by a successor Trustee shall not have been delivered
to the Trustee within 30 days after the giving of such notice of removal, the Trustee being removed may petition, at the expense of the Company, any court of competent jurisdiction for the appointment of a successor Trustee with respect to the
Securities of such series.
(d) Any resignation or removal of the Trustee and appointment of a successor trustee with respect to the
Securities of a series pursuant to any of the provisions of this Section 7.10 shall become effective upon acceptance of appointment by the successor trustee as provided in Section 7.11.
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(e) Any successor trustee appointed pursuant to this Section 7.10 may be appointed with
respect to the Securities of one or more series or all of such series, and at any time there shall be only one Trustee with respect to the Securities of any particular series.
Section 7.11 Acceptance of Appointment By Successor.
(a) In case of the appointment hereunder of a successor trustee with respect to all Securities, every such successor trustee so appointed shall
execute, acknowledge and deliver to the Company and to the retiring Trustee an instrument accepting such appointment, and thereupon the resignation or removal of the retiring Trustee shall become effective and such successor trustee, without any
further act, deed or conveyance, shall become vested with all the rights, powers, trusts and duties of the retiring Trustee. On the written request of the Company or the successor trustee, such retiring Trustee, upon payment of its charges, shall
execute and deliver an instrument transferring to such successor trustee all the rights, powers, and trusts of the retiring Trustee and shall assign, transfer and deliver to such successor trustee all property and funds held by such retiring Trustee
hereunder.
(b) In case of the appointment hereunder of a successor trustee with respect to the Securities of one or more but not all
series, the Company, the retiring Trustee and each successor trustee with respect to the Securities of one or more series shall execute and deliver an indenture supplemental hereto wherein each successor trustee shall accept such appointment and
which: (i) shall contain such provisions as shall be necessary or desirable to transfer and confirm to, and to vest in, each successor trustee all the rights, powers, trusts and duties of the retiring Trustee with respect to the Securities of
that or those series to which the appointment of such successor trustee relates; (ii) shall contain such provisions as shall be deemed necessary or desirable to confirm that all the rights, powers, trusts and duties of the retiring Trustee with
respect to the Securities of that or those series as to which the retiring Trustee is not retiring shall continue to be vested in the retiring Trustee; and (iii) shall add to or change any of the provisions of this Indenture as shall be
necessary to provide for or facilitate the administration of the trusts hereunder by more than one Trustee, it being understood that nothing herein or in such supplemental indenture shall constitute such Trustees co-trustees of the same trust, that
each such Trustee shall be trustee of a trust or trusts hereunder separate and apart from any trust or trusts hereunder administered by any other such Trustee and that no Trustee shall be responsible for any act or failure to act on the part of any
other Trustee hereunder. 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 such retiring Trustee shall have no further
responsibility with respect to the Securities of that or those series to which the appointment of such successor trustee relates for the exercise of rights and powers or for the performance of the duties and obligations vested in the Trustee under
this Indenture. Each such successor trustee, without any further act, deed or conveyance, shall become vested with all the rights, powers, trusts and duties of the retiring Trustee with respect to the Securities of that or those series to which the
appointment of such successor trustee relates. On the written request of the Company or any successor trustee, such retiring Trustee shall assign, transfer and deliver to such successor trustee, to the extent contemplated by such supplemental
indenture, the property and funds held by such retiring Trustee hereunder with respect to the Securities of that or those series to which the appointment of such successor trustee relates.
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(c) Upon request of any such successor trustee, the Company may execute any and all instruments
for more fully and certainly vesting in and confirming to such successor trustee all such rights, powers and trusts referred to in Section 7.11(a) or (b), as the case may be.
(d) No successor trustee shall accept its appointment unless at the time of such acceptance such successor trustee shall be qualified and
eligible under this Article VII.
(e) Upon acceptance of appointment by a successor trustee as provided in this Section 7.11, the
successor trustee shall cause a notice of its succession to be transmitted to Securityholders.
Section 7.12 Merger, Conversion, Consolidation or
Succession to Business.
Any corporation into which the Trustee may be merged or converted or with which it may be consolidated, or any
corporation resulting from any merger, conversion or consolidation to which the Trustee shall be a party, or any corporation succeeding to all or substantially all of the corporate trust business of the Trustee, shall be the successor of the Trustee
hereunder, provided that such corporation shall be qualified under the provisions of Section 7.08 and eligible under the provisions of Section 7.09, without the execution or filing of any paper or any further act on the part of any of the
parties hereto. In case any Securities shall have been authenticated, but not delivered, by the Trustee then in office, any successor by merger, conversion or consolidation to such authenticating Trustee may adopt such authentication and deliver the
Securities so authenticated with the same effect as if such successor Trustee had itself authenticated such Securities.
Section 7.13 Preferential
Collection of Claims Against the Company.
The Trustee shall comply with Section 311(a) of the Trust Indenture Act, excluding any
creditor relationship described in Section 311(b) of the Trust Indenture Act. A Trustee who has resigned or been removed shall continue to be subject to Section 311(a) of the Trust Indenture Act.
ARTICLE VIII.
CONCERNING THE
SECURITYHOLDERS
Section 8.01 Evidence of Action by Securityholders.
Whenever in this Indenture it is provided that the holders of a majority or specified percentage in aggregate principal amount of the
Securities of a particular series may take any action (including the making of any demand or request, the giving of any notice, consent or waiver or the taking of any other action), the fact that at the time of taking any such action the holders of
such majority or specified percentage of that series have joined therein may be evidenced by any instrument or any number of instruments of similar tenor executed by such holders of Securities of that series in Person or by agent or proxy appointed
in writing.
If the Company shall solicit from the Securityholders of any series any request, demand, authorization, direction, notice,
consent, waiver or other action, the Company, at its option, as
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evidenced by an Officers Certificate, may fix in advance a record date for such series for the determination of Securityholders entitled to give such request, demand, authorization,
direction, notice, consent, waiver or other action, but the Company shall have no obligation to do so. If such a record date is fixed, such request, demand, authorization, direction, notice, consent, waiver or other action may be given before or
after the record date, but only the Securityholders of record at the close of business on the record date shall be deemed to be Securityholders for the purposes of determining whether Securityholders of the requisite proportion of Outstanding
Securities of that series have authorized or agreed or consented to such request, demand, authorization, direction, notice, consent, waiver or other action, and for that purpose the Outstanding Securities of that series shall be computed as of the
record date; provided, however, that no such authorization, agreement or consent by such Securityholders on the record date shall be deemed effective unless it shall become effective pursuant to the provisions of this Indenture not later than six
months after the record date. Articles 86 to 94-8 of the Luxembourg act dated August 10, 1915 on commercial companies, as amended, are not applicable to the Securities.
Section 8.02 Proof of Execution by Securityholders.
Subject to the provisions of Section 7.01, proof of the execution of any instrument by a Securityholder (such proof will not require
notarization) or his agent or proxy and proof of the holding by any Person of any of the Securities shall be sufficient if made in the following manner:
(a) The fact and date of the execution by any such Person of any instrument may be proved in any reasonable manner acceptable to the Trustee.
(b) The ownership of Securities shall be proved by the Security Register of such Securities or by a certificate of the Security Registrar
thereof.
(c) The Trustee may require such additional proof of any matter referred to in this Section 8.02 as it shall deem
necessary.
Section 8.03 Who May be Deemed Owners.
Prior to the due presentment for registration of transfer of any Security, the Company, the Trustee, any paying agent and any Security
Registrar may deem and treat the Person in whose name such Security shall be registered upon the books of the Company as the absolute owner of such Security, whether or not such Security shall be overdue and notwithstanding any notice of ownership
or writing thereon made by anyone other than the Security Registrar, for the purpose of receiving payment of or on account of the principal of, premium, if any, and (subject to Section 2.03) interest on such Security and for all other purposes;
and neither the Company nor the Trustee nor any paying agent nor any Security Registrar shall be affected by any notice to the contrary.
None of the Company, the Trustee, any paying agent or the Security Registrar will have any responsibility or liability for any aspect of the
records relating to or payments made on account of beneficial interests in a Global Security or for maintaining, supervising or reviewing any records relating to such beneficial interests.
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Section 8.04 Certain Securities Owned by Company Disregarded.
In determining whether the holders of the requisite aggregate principal amount of Securities of a particular series have concurred in any
direction, consent of waiver under this Indenture, the Securities of that series that are owned by the Company, a Guarantor or any other obligor on the Securities of that series or by an Affiliate of the Company or a Guarantor shall be disregarded
and deemed not to be Outstanding for the purpose of any such determination, except that for the purpose of determining whether the Trustee shall be protected in relying on any such direction, consent or waiver, only Securities of such series that a
Responsible Officer of the Trustee knows are so owned shall be so disregarded. The Securities so owned that have been pledged in good faith may be regarded as Outstanding for the purposes of this Section 8.04, if the pledgee shall establish to
the satisfaction of the Trustee the pledgees right so to act with respect to such Securities and that the pledgee is not an Affiliate. In case of a dispute as to such right, any decision by the Trustee taken upon the advice of counsel shall be
full protection to the Trustee. Upon request of the Trustee, the Company shall furnish to the Trustee promptly an Officers Certificate listing and identifying all Securities of a particular series, if any known by the Company or a Guarantor to
be owned or held by or for the account of any of the above described Persons and, subject to Sections 7.01 and 7.02, the Trustee shall be entitled to accept such Officers Certificate as conclusive evidence of the facts therein set forth and of
the fact that all Securities of such particular series not listed therein are Outstanding for the purpose of any such determination.
Section 8.05
Actions Binding on Future Securityholders.
At any time prior to the evidencing to the Trustee, as provided in Section 8.01, of
the taking of any action by the holders of the majority or percentage in aggregate principal amount of the Securities of a particular series specified in this Indenture in connection with such action, any holder of a Security of that series that is
shown by the evidence to be included in the Securities the holders of which have consented to such action, by filing written notice with the Trustee, and upon proof of holding as provided in Section 8.02, may revoke such action so far as
concerns such Security. Except as aforesaid any such action taken by the holder of any Security shall be conclusive and binding upon such holder and upon all future holders and owners of such Security, and of any Security issued in exchange
therefor, on registration of transfer thereof or in place thereof, irrespective of whether or not any notation in regard thereto is made upon such Security. Any action taken by the holders of the majority or percentage in aggregate principal amount
of the Securities of a particular series specified in this Indenture in connection with such action shall be conclusively binding upon the Company, the Trustee and the holders of all the Securities of that series.
ARTICLE IX.
SUPPLEMENTAL
INDENTURES
Section 9.01 Supplemental Indentures Without the Consent of Securityholders.
In addition to any supplemental indenture otherwise authorized by this Indenture, the Company, any Guarantor of a series, if applicable, and
the Trustee from time to time and at any
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time may enter into an indenture or indentures supplemental hereto which shall conform to the provisions of the Trust Indenture Act as then in effect, without the consent of the holders of any
series of Securities, for one or more of the following purposes:
(a) to cure any ambiguity, defect, or inconsistency herein or in the
Securities of any series, including making any such changes as are required for this Indenture to comply with the Trust Indenture Act;
(b) to add an additional obligor on the Securities or to add a Guarantor of any outstanding series of Securities, or to evidence the
succession of another Person to the Company or any such Guarantor, or successive successions, and the assumption by the successor Person of the covenants, agreements and obligations of the Company or any Guarantor, as the case may be, pursuant to
Article X;
(c) to provide for uncertificated Securities in addition to or in place of certificated Securities;
(d) to add to the covenants of the Company for the benefit of the holders of any outstanding series of Securities (and if such covenants are
to be for the benefit of less than all outstanding 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 Company or any
Guarantor;
(e) to add any additional Events of Default for the benefit of the holders of any outstanding series of Securities (and if
such Events of Default are to be applicable to less than all outstanding series, stating that such Events of Default are expressly being included solely to be applicable to such series);
(f) to change or eliminate any of the provisions of this Indenture, provided that any such change or elimination shall not become effective
with respect to any outstanding Security of any series created prior to the execution of such supplemental indenture which is entitled to the benefit of such provision;
(g) to secure the Securities of any series;
(h) to make any other change that does not adversely affect the rights of any Securityholder of Outstanding Securities of the affected series
of Securities in any material respect;
(i) to provide for the issuance of and establish the form and terms and conditions of the
Securities of any series as provided in Section 2.01, to provide which, if any, of the covenants of the Company shall apply to such series, to provide which of the Events of Default shall apply to such series, to name one or more Guarantors and
provide for Guarantees of such series of Securities, to provide for the terms and conditions upon which the Guarantees of such series of Securities may be released or terminated, or to define the rights of the holders of such series of Securities;
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(j) to issue additional Securities of any series; provided that such additional Securities have
the same terms as, and be deemed part of the same series as, the applicable series of Securities issued hereunder to the extent required by Section 2.01(b);
(k) 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 trust hereunder by more than one Trustee;
(l) to supplement any of the provisions herein to permit or facilitate the defeasance and discharge of the Securities of any series in a
manner consistent with the provisions described in Section 11.03; provided, however, that any such action shall not adversely affect the interest of the holders of Securities of such series or any other series in any material respect; or
(m) to conform the text of this Indenture, any supplemental indenture or any Security to the description thereof in any prospectus, prospectus
supplement or offering circular or memorandum or supplement thereto with respect to the offer and sale of Securities of any series, to the extent that such description is inconsistent with a provision in this Indenture, any supplemental indenture or
Security, as provided in an Officers Certificate.
Upon the request of the Company, accompanied by Board Resolutions authorizing the
execution of any such supplemental indenture, and upon receipt by the Trustee of the documents described in Section 9.05, the Trustee shall join with the Company and any Guarantor, if applicable, in the execution of any such supplemental
indenture, and to make any further appropriate agreements and stipulations that may be therein contained, but the Trustee shall not be obligated to enter into any such supplemental indenture that affects the Trustees own rights, duties or
immunities under this Indenture or otherwise.
Any supplemental indenture authorized by the provisions of this Section 9.01 may be
executed by the Company, any applicable Guarantor, and the Trustee without the consent of the holders of any of the Securities at the time Outstanding, notwithstanding any of the provisions of Section 9.02.
Section 9.02 Supplemental Indentures with Consent of Securityholders.
With the consent (evidenced as provided in Section 8.01) of the holders of not less than a majority in aggregate principal amount of the
Securities of each series at the time Outstanding affected by such supplemental indenture or indentures, the Company and any Guarantor, when authorized by Board Resolutions, and the Trustee from time to time and at any time may enter into an
indenture or indentures supplemental hereto for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Indenture or of any supplemental indenture or of modifying in any manner not covered by
Section 9.01 the rights of the holders of the Securities of such series under this Indenture; provided, however, that no such supplemental indenture, without the consent of the holders of each Security of such series then Outstanding and
affected thereby, shall: (i) extend a fixed maturity of or any installment of principal of any Securities of any series or reduce the principal amount thereof or reduce the amount of principal of any original issue discount security that would
be due and payable upon
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declaration of acceleration of the maturity thereof; (ii) reduce the rate of or extend the time for payment of interest on any Security of any series; (iii) reduce the premium payable
upon the redemption of any Security; (iv) make any Security payable in Currency other than that stated in the Security; (v) impair the right to institute suit for the enforcement of any payment on or after the fixed maturity thereof (or in
the case of redemption, on or after the redemption date); or (vi) reduce the aforesaid percentage of Securities, the holders of which are required to consent to any such supplemental indenture or indentures.
A supplemental indenture that changes or eliminates any covenant, Event of Default or other provision of this Indenture that has been
expressly included solely for the benefit of one or more particular series of Securities, if any, or which modifies the rights of the holders of Securities of such series with respect to such covenant, Event of Default or other provision, shall be
deemed not to affect the rights under this Indenture of the holders of Securities of any other series.
It shall not be necessary for the
consent of Securityholders of a series affected thereby under this Section 9.02 to approve the particular form of any proposed supplemental indenture, amendment or waiver, but it shall be sufficient if such consent shall approve the substance
thereof.
Promptly after the execution by the Company, any applicable Guarantor and the Trustee of any supplemental indenture pursuant to
the provisions of this Section 9.02, the Company shall mail or caused to be mailed a notice thereof by first class mail to the Holders of Securities of each series affected thereby at their addresses as they shall appear on the Security
Register, setting forth in general terms the substance of such supplemental indenture. Any failure of the Company to mail such notice, or any defect therein, shall not in any way impair or affect the validity of any such supplemental indenture.
Section 9.03 Effect of Supplemental Indentures.
Upon the execution of any supplemental indenture pursuant to the provisions of this Article IX or Section 10.01, this Indenture shall be
and be deemed to be modified and amended with respect to such series in accordance therewith and the respective rights, limitations of rights, obligations, duties and immunities under this Indenture of the Trustee, the Company, any applicable
Guarantor and the holders of Securities of the series affected thereby shall thereafter be determined, exercised and enforced hereunder subject in all respects to such modifications and amendments, and all the terms and conditions of any such
supplemental indenture shall be and be deemed to be part of the terms and conditions of this Indenture for any and all purposes.
Section 9.04
Securities Affected by Supplemental Indentures.
Securities of any series affected by a supplemental indenture and authenticated and
delivered after the execution of such supplemental indenture pursuant to the provisions of this Article or of Section 10.01 may bear a notation in form approved by the Company, provided such form meets the requirements of any exchange upon
which such series may be listed, as to any matter provided for in such supplemental indenture. If the Company shall so determine, new Securities of that series so modified as to conform, in the opinion of the Board of Directors of the
54
Company, to any modification of this Indenture contained in any such supplemental indenture may be prepared by the Company, authenticated by the Trustee in accordance with the terms of this
Indenture and delivered in exchange for the Securities of that series then Outstanding.
Section 9.05 Execution of Supplemental Indentures.
Upon the request of the Company, accompanied by Board Resolutions authorizing the execution of any such supplemental indenture, and, if
applicable, upon the filing with the Trustee of evidence of the consent of Securityholders required to consent thereto as aforesaid, the Trustee shall join with the Company and any applicable Guarantor in the execution of such supplemental indenture
unless such supplemental indenture affects the Trustees own rights, duties or immunities under this Indenture or otherwise, in which case the Trustee in its discretion may but shall not be obligated to enter into such supplemental indenture.
In executing, or accepting the additional trusts created by, any supplemental indenture permitted by this Article IX or the modifications thereby of the trusts created by this Indenture, the Trustee shall receive, and shall be fully protected in
relying upon, an Officers Certificate and an Opinion of Counsel stating that the execution of such supplemental indenture is authorized or permitted by this Indenture and that such supplemental indenture is the legal, valid and binding
obligation of the Company, enforceable against the Company in accordance with its terms.
ARTICLE X.
SUCCESSOR
Section 10.01 Consolidation,
Merger and Sale of Assets.
The Company and each Guarantor covenants that it will not merge or consolidate with any other Person or
sell or convey all or substantially all of its assets to any Person, unless:
(i) either the Company or such Guarantor, as the case
may be, shall be the continuing entity, or the successor entity or the Person which acquires by sale or conveyance substantially all the assets of the Company or such Guarantor, as the case may be (if other than the Company or such Guarantor, as the
case may be), (A) shall expressly assume the due and punctual payment of the principal of, premium, if any, and interest on all the Securities or the obligations under the Guarantees, as the case may be, according to their tenor, and the due
and punctual performance and observance of all of the covenants and agreements of this Indenture to be performed or observed by the Company or such Guarantor, as the case may be, by a supplemental indenture reasonably satisfactory to the Trustee,
executed and delivered to the Trustee by such Person and (B) shall be an entity treated as a corporation for United States tax purposes or the Company or such Guarantor, as the case may be, obtains either (x) an opinion, in
form and substance reasonably acceptable to the Trustee, of tax counsel of recognized standing reasonably acceptable to the Trustee, which counsel shall include Foley & Lardner LLP, or (y) a ruling from the United States Internal
Revenue Service, in either case to the effect that such merger or consolidation, or such sale or conveyance, will not result in an exchange of the Securities for new debt instruments for United States federal income tax purposes; and
55
(ii) no Event of Default and no event that, after notice or lapse of time or both, would
become an Event of Default shall be continuing immediately after such merger or consolidation, or such sale or conveyance.
The Company
shall deliver to the Trustee prior to or simultaneously with the consummation of the proposed transaction an Officers Certificate to the foregoing effect and an Opinion of Counsel stating that the proposed transaction and such supplemental
indenture comply with this Indenture.
To the extent that a Board Resolution or supplemental indenture pertaining to any series provides
for different provisions relating to the subject matter of this Article X, the provisions in such Board Resolution or supplemental indenture shall govern for purposes of such series.
Section 10.02 Successor Person Substituted.
Upon any consolidation or merger, or any sale, lease, conveyance or other disposition of all or substantially all of the assets of the Company
or any Guarantor, as the case may be, the successor Person formed by such consolidation or into or with which the Company or such Guarantor, as the case may be, is merged or to which such sale, lease, conveyance or other disposition is made shall
succeed to, and be substituted for, and may exercise every right and power of, the Company or such Guarantor, as the case may be, under this Indenture with the same effect as if such successor Person has been named as the Company or such Guarantor,
as the case may be, herein. In the event of any such sale or conveyance (other than a conveyance by way of lease) the Company or the Guarantor, as the case may be, or any successor entity which shall theretofore have become such in the manner
described in this Article X, shall be discharged from all obligations and covenants under this Indenture, the Securities and the Guarantees and may be liquidated and dissolved.
ARTICLE XI.
SATISFACTION AND
DISCHARGE
Section 11.01 Applicability of Article.
If the Securities of a series are denominated and payable only in Dollars (except as provided pursuant to Section 2.01), then the
provisions of this Article XI relating to defeasance of Securities shall be applicable except as otherwise specified pursuant to Section 2.01 for Securities of such series. Defeasance provisions, if any, for Securities denominated in a Foreign
Currency may be specified pursuant to Section 2.01.
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Section 11.02 Satisfaction and Discharge of Indenture.
If at any time:
(a) the Company or any Guarantor, as applicable, shall have delivered or shall have caused to be delivered to the Trustee for
cancellation all Securities of a series theretofore authenticated, other than any Securities that shall have been destroyed, lost or stolen and that shall have been replaced or paid as provided in Section 2.07, and Securities for whose payment
funds or Governmental Obligations have theretofore been deposited in trust or segregated and held in trust by the Company or any Guarantor, as applicable, and thereupon repaid to the Company or any Guarantor, as applicable, or discharged from such
trust, as provided in Section 11.06; or
(b) all such Securities of a particular series not theretofore delivered to
the Trustee for cancellation shall have become due and payable or are by their terms to become due and payable within one year or are to be called for redemption within one year under arrangements satisfactory to the Trustee for the giving of notice
of redemption, and the Company or any Guarantor, as applicable, shall irrevocably deposit or cause to be deposited with the Trustee as trust funds the entire amount, in funds or Governmental Obligations sufficient, or a combination thereof
sufficient, to pay at maturity or upon redemption all Securities of such series not theretofore delivered to the Trustee for cancellation, including principal, premium, if any, and interest due or to become due on such date of maturity or redemption
date, as the case may be, and if in either case the Company or any Guarantor, as applicable, shall also pay or cause to be paid all other sums payable hereunder with respect to such series by the Company,
then this Indenture shall cease to be of further effect with respect to such series except for the provisions of Sections 2.03, 2.04, 2.05, 2.07, 4.01, 4.02,
4.03, 7.05 and 7.10, that shall survive until the date of maturity or redemption date, as the case may be, and Sections 7.06 and 11.06 and Article XIV, that shall survive to such date and thereafter, and the Trustee, on demand of the Company and at
the cost and expense of the Company shall execute proper instruments acknowledging satisfaction of and discharging this Indenture with respect to such series.
Section 11.03 Defeasance and Discharge of Obligations; Covenant Defeasance.
(a) If at any time:
(i) all such Securities of a particular series not heretofore delivered to the Trustee for cancellation or that have not
become due and payable as described in Section 11.02 shall have been paid by the Company or any Guarantor, as applicable, by depositing irrevocably with the Trustee in trust funds or Governmental Obligations, or a combination thereof,
sufficient to pay at maturity or upon redemption all such Securities of that series not theretofore delivered to the Trustee for cancellation, including principal, premium, if any, and interest due or to become due to such date of maturity or date
fixed for redemption, as the case may be, and
(ii) the Company or any Guarantor, as applicable, shall also pay or
cause to be paid all other amounts payable hereunder by the Company with respect to such series, then, subject to Section 11.03(c), after the date such funds or Governmental Obligations, as the case may be, are deposited with the Trustee, the
obligations of the Company and any Guarantor, as applicable, under this Indenture with respect to such series shall cease
57
to be of further effect except, to the extent applicable to each, for the provisions of Sections 2.03, 2.04, 2.05, 2.07, 4.01, 4.02, 4.03, 7.05 and 7.10 hereof that shall survive until such
Securities shall mature and be paid (defeasance). Thereafter, Sections 7.06 and 11.06 and Article XIV shall survive such satisfaction and discharge.
(b) In addition, each of the Company and any Guarantor, as applicable, at its option and at any time, by written notice executed by an Officer
delivered to the Trustee, may elect to have its obligations, to the extent applicable to each, under Section 5.03 and any covenant contained in Article X, and any other covenant contained in the Board Resolution or supplemental indenture
relating to such series pursuant to Section 2.01, discharged with respect to all Outstanding Securities of a series, this Indenture and any indentures supplemental to this Indenture insofar as such Securities are concerned (covenant
defeasance), such discharge to be effective on the date the conditions set forth in clauses (i) through (vi) of Section 11.03(c) are satisfied, and such Securities shall thereafter be deemed to be not Outstanding
for the purposes of any direction, waiver, consent or declaration of Securityholders (and the consequences of any thereof) in connection with such covenants, but shall continue to be Outstanding for all other purposes under this
Indenture. For this purpose, such covenant defeasance means that, with respect to the Outstanding Securities of a series, the Company and any Guarantor, as applicable, may omit to comply with and shall have no liability in respect of any term,
condition or limitation set forth in any such covenant, whether directly or indirectly, by reason of any reference elsewhere herein to any such covenant or by reason of reference in any such covenant to any other provision herein or in any other
document and such omission to comply shall not constitute an Event of Default under Section 6.01(a)(4) or otherwise, but except as specified in this Section 11.03(b), the remainder of the Companys and any Guarantors obligations
under the Securities of such series, this Indenture, and any indentures supplemental to this Indenture with respect to such series shall be unaffected thereby.
(c) The following shall be the conditions to the application of Section 11.03 to the Outstanding Securities of the applicable series:
(i) the Company or a Guarantor irrevocably deposits in trust with the Trustee or, at the option of the Trustee, with a
trustee satisfactory to the Trustee and the Company or Guarantor, as the case may be, under the terms of an irrevocable trust agreement in form and substance satisfactory to the Trustee, funds or Governmental Obligations sufficient, in the opinion
of a nationally-recognized firm of independent accountants, to pay principal of, premium, if any, and interest on the Outstanding Securities of such series to maturity or redemption, as the case may be, and to pay all other amounts payable by it
hereunder with respect to the Outstanding Securities of such series, provided that (A) the trustee of the irrevocable trust shall have been irrevocably instructed to pay such funds or the proceeds of such Governmental Obligations to the Trustee
and (B) the Trustee shall have been irrevocably instructed to apply such funds or the proceeds of such Governmental Obligations to the payment of said principal, premium, if any, and interest with respect to the Securities of such series;
(ii) the Company or Guarantor, as the case may be, delivers to the Trustee an Officers Certificate stating that all
conditions precedent specified herein relating to defeasance or covenant defeasance, as the case may be, have been complied with, and an Opinion of Counsel to the same effect;
58
(iii) no Event of Default under clauses (1), (2), (3), (5), (6), or (7) of
Section 6.01(a) shall have occurred and be continuing, and no event which with notice or lapse of time or both would become such an Event of Default shall have occurred and be continuing, on the date of such deposit;
(iv) the Company or Guarantor, as the case may be, shall have delivered to the Trustee an Opinion of Counsel or a ruling
received from the Internal Revenue Service to the effect that the holders of the Securities of such series will not recognize income, gain or loss for Federal income tax purposes as a result of the Companys or Guarantors exercise of its
option to effect defeasance or covenant defeasance, as the case may be, under this Section 11.03 and will be subject to Federal income tax in the same amount and in the same manner and at the same times as would have been the case if such
election had not been exercised;
(v) such defeasance or covenant defeasance shall not (i) cause the Trustee to have a
conflicting interest for purposes of the Trust Indenture Act with respect to any Securities or (ii) result in the trust arising from such deposit to constitute, unless it is registered as such, a regulated investment company under the
Investment Company Act of 1940; and
(vi) notwithstanding any other provisions of this Section 11.03, such covenant
defeasance shall be effected in compliance with any additional or substitute terms, conditions or limitations which may be imposed on the Company or Guarantor pursuant to Section 2.01.
After such irrevocable deposit made pursuant to this Section 11.03 and satisfaction of the other conditions set forth herein, the Trustee
upon written request shall acknowledge in writing the discharge of the Companys and each Guarantors obligations pursuant to this Section 11.03.
Section 11.04 Deposited Funds to be Held in Trust.
All funds or Governmental Obligations deposited with the Trustee pursuant to Sections 11.02 or 11.03 shall be held in trust and shall be
available for payment as due, either directly or through any paying agent, including the Company or Guarantor, as applicable, acting as its own paying agent, to the holders of the particular series of Securities for the payment or redemption of
which such funds or Governmental Obligations have been deposited with the Trustee. Parent or the Company shall pay and indemnify the Trustee against any tax, fee or other charge imposed on or assessed against the Governmental Obligations deposited
pursuant to Section 11.03 or the principal and interest received in respect thereof other than any such tax, fee or other charge which by law is for the account of the Securityholders of Outstanding Securities.
59
Section 11.05 Payment of Funds Held by Paying Agents.
In connection with the provisions of Section 11.02 or 11.03, all funds or Governmental Obligations then held by any paying agent under the
provisions of this Indenture shall, upon demand of the Company or Guarantor, as applicable, be paid to the Trustee and thereupon such paying agent shall be released from all further liability with respect to such funds or Governmental Obligations.
Parent or the Company shall pay and indemnify the Trustee against any tax, fee or other charge imposed on or assessed against the Governmental Obligations deposited pursuant to Section 11.03 or the principal and interest received in respect
thereof other than any such tax, fee or other charge which by law is for the account of the Securityholders of Outstanding Securities.
Section 11.06
Repayment to the Company or a Guarantor.
Any funds or Governmental Obligations deposited with any paying agent or the Trustee, or
then held by the Company or any Guarantor, in trust for payment of principal of, premium, if any, or interest on the Securities of a particular series that are not applied but remain unclaimed by the holders of such Securities for at least one year
after the date upon which the principal of, premium, if any, or interest on such Securities shall have respectively become due and payable, shall be repaid to the Company or Guarantor, as applicable, or if then held by the Company or Guarantor shall
be discharged from such trust; and thereafter, the paying agent and the Trustee shall be released from all further liability with respect to such funds or Governmental Obligations, and the holder of any of the Securities entitled to receive such
payment shall thereafter, as an unsecured general creditor, look only to the Company or Guarantor, as applicable, for the payment thereof. Anything in this Article XI to the contrary notwithstanding, subject to Section 7.06, the Trustee shall
deliver or pay to the Company or Guarantor, as applicable, from time to time upon written request by the Company or Guarantor, which shall be accompanied by an Officers Certificate, any funds or Governmental Obligations (or other property and
any proceeds therefrom) held by it as provided in Sections 11.02 or 11.03 which, in the opinion of a nationally recognized firm of independent public accountants expressed in a written certification thereof delivered to the Trustee, are in excess of
the amount thereof that would then be required to be deposited to effect a defeasance or covenant defeasance, as the case may be, in accordance with this Article XI.
Section 11.07 Reinstatement.
If the
Trustee or paying agent is unable to apply any funds or Governmental Obligations in accordance with Section 11.02 or 11.03 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 Companys and any applicable Guarantors obligations under this Indenture, any indentures supplemental to this Indenture with respect to the applicable series of Securities and the
Securities of such series shall be revived and reinstated as though no deposit had occurred pursuant to Section 11.02 or 11.03, as the case may be, until such time as the Trustee or paying agent is permitted to apply all such funds or
Governmental Obligations in accordance with Section 11.02 or 11.03, as the case may be; provided, however, that if the Company or a Guarantor has made any payment of principal, premium, if any, or interest on any Securities of such series
following the reinstatement of its obligations as aforesaid, the Company
60
or such Guarantor, as applicable, shall be subrogated to the rights of the holders of such Securities of such series to receive such payment from the funds or Governmental Obligations held by the
Trustee or paying agent.
ARTICLE XII.
IMMUNITY OF INCORPORATORS, STOCKHOLDERS,
OFFICERS AND DIRECTORS
Section 12.01 No
Recourse.
No recourse under or upon any obligation, covenant or agreement of this Indenture, or of any Security, or for any claim
based thereon or otherwise in respect thereof, shall be had against any incorporator, shareholder, officer or director, past, present or future as such, of the Company or any Guarantor or of any predecessor or successor corporation, either directly
or through the Company or Guarantor or any such predecessor or successor corporation, whether by virtue of any constitution, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise; it being expressly understood that
this Indenture and the obligations issued hereunder are solely corporate obligations, and that no such personal liability whatever shall attach to, or is or shall be incurred by, the incorporators, shareholders, officers or directors as such, of the
Company or Guarantor or of any predecessor or successor corporation, or any of them, because of the creation of the indebtedness hereby authorized, or under or by reason of the obligations, covenants or agreements contained in this Indenture or in
any of the Securities or implied therefrom; and that any and all such personal liability of every name and nature, either at common law or in equity or by constitution or statute, of, and any and all such rights and claims against, every such
incorporator, shareholder, officer or director as such, because of the creation of the indebtedness hereby authorized, or under or by reason of the obligations, covenants or agreements contained in this Indenture or in any of the Securities or
implied therefrom, are hereby expressly waived and released as a condition of, and as a consideration for, the execution of this Indenture and the issuance of such Securities.
ARTICLE XIII.
MISCELLANEOUS
PROVISIONS
Section 13.01 Effect on Successors and Assigns.
All the agreements of the Company and any Guarantor in this Indenture or the Securities shall bind their respective successors whether so
expressed or not. All agreements of the Trustee in this Indenture shall bind its successor.
Section 13.02 Actions by Successor.
Any act or proceeding by any provision of this Indenture authorized or required to be done or performed by any board, committee or officer of
the Company or any Guarantor shall and may be done and performed with like force and effect by the corresponding board, committee or officer of any corporation that shall at the time be the lawful sole successor of the Company or such Guarantor, as
applicable.
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Section 13.03 Notices.
Any notice or communication by the Company, a 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), telecopier, electronic mail (in PDF format) or overnight air courier guaranteeing next day delivery, to the others address:
|
|
|
If to the Company: |
|
Pentair Finance S.A. |
|
|
c/o Pentair Management Company |
|
|
5500 Wayzata Boulevard, Suite 600 |
|
|
Golden Valley, MN 55416 |
|
|
Attention: Mark C. Borin |
|
|
Facsimile No.: (763) 656-5411 |
|
|
If to Parent or SwissCo: |
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Pentair plc |
|
|
c/o Pentair Management Company |
|
|
5500 Wayzata Boulevard, Suite 600 |
|
|
Golden Valley, MN 55416 |
|
|
Attn: Mark C. Borin |
|
|
Facsimile No.: (763) 656-5411 |
If to a Guarantor other than Parent or SwissCo: To the address specified in the documentation naming such Guarantor.
|
|
|
In either case, with copies to: |
|
|
|
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Pentair, Inc. |
|
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5500 Wayzata Boulevard, Suite 600 |
|
|
Golden Valley, MN 55416 |
|
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Attn: Angela D. Lageson |
|
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Facsimile No.: (763) 656-5403 |
|
|
and |
|
|
|
|
|
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Foley & Lardner LLP |
|
|
777 E. Wisconsin Avenue |
|
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Milwaukee, WI 53202 |
|
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Attention: Benjamin F. Garmer III, John K. Wilson |
|
|
and Patricia J. Lane |
|
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Facsimile No.: (414) 297-4900 |
|
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If to the Trustee: |
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U.S. Bank National Association |
|
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60 Livingston Avenue |
|
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St. Paul, MN 55107 |
|
|
Attention: Global Corporate Trust Services |
|
|
Facsimile No.: (651) 466-7430 |
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The Company, any Guarantor or the Trustee by notice to the others may designate additional or
different addresses for subsequent notices or communications.
All notices and communications, other than those sent to Securityholders,
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 sent, if electronically mailed in PDF format; when receipt
acknowledged, if telecopied; 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 Securityholder shall be mailed by first-class mail, certified or registered, return receipt requested, to his
address shown on the Security Register. Failure to mail a notice or communication to a Securityholder or any defect in it shall not affect its sufficiency with respect to other Securityholders.
In the event of suspension of regular mail service or by reason of any other cause it shall be impracticable to give notice by mail, then such
notification as shall be given with the approval of the Trustee shall constitute sufficient notice for every purpose hereunder.
If a
notice or communication is mailed in the manner provided above within the time prescribed, it is conclusively presumed duly given, whether or not the addressee receives it.
Section 13.04 Governing Law.
This
Indenture and each Security and Guarantee shall be deemed to be a contract made under the internal laws of the State of New York, and for all purposes shall be construed in accordance with the laws of said State without regard to conflicts of laws
principles (except for Sections 5-1401 and 5-1402 of the New York General Obligations Law) that would require the application of any other law. This Indenture is subject to the provisions of the Trust Indenture Act that are required to be part of
this Indenture and shall, to the extent applicable, be governed by such provisions.
Section 13.05 Treatment of Securities as Debt.
It is intended that the Securities will be treated as indebtedness and not as equity for United States federal income tax purposes. The
provisions of this Indenture shall be interpreted to further this intention.
Section 13.06 Compliance Certificates and Opinions.
(a) Upon any application or demand by the Company or a Guarantor to the Trustee to take any action under any of the provisions of this
Indenture, the Company or such Guarantor shall furnish to the Trustee an Officers Certificate stating that, in the opinion of the signer, all conditions precedent provided for in this Indenture relating to the proposed action have been
complied with and an Opinion of Counsel stating that in the opinion of such counsel all such conditions precedent have been complied with, except that in the case of any such application or demand as to which the furnishing of such documents is
specifically dealt with by any provision of this Indenture relating to such particular application or demand, no additional certificate or opinion need be furnished.
63
(b) Each certificate or opinion provided for in this Indenture and delivered to the Trustee with
respect to compliance with a condition or covenant in this Indenture (excluding any certificate contemplated by Section 4.04) 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 has made such examination or investigation as is necessary to enable him to express an informed opinion as to whether or not such covenant or condition has been 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 13.07 Payments on Business Days.
Except as provided pursuant to Section 2.01 pursuant to a Board Resolution, and as set forth in an Officers Certificate or
established in one or more indentures supplemental to this Indenture, in any case where the date of maturity of interest or principal of any Security or the date of redemption of any Security shall not be a Business Day, then payment of principal,
premium, if any, or interest or principal and premium, if any, may be made on the next succeeding Business Day with the same force and effect as if made on the nominal date of maturity or redemption, and no interest shall accrue on such nominal date
or for the period after such nominal date.
Section 13.08 Conflict with Trust Indenture Act.
If and to the extent that any provision of this Indenture limits, qualifies or conflicts with the duties imposed by Sections 310 to 317,
inclusive, of the Trust Indenture Act, such imposed duties shall control.
Section 13.09 Counterparts.
This Indenture may be executed in any number of counterparts, each of which shall be an original, but such counterparts shall together
constitute but one and the same instrument. The exchange of copies of this Indenture and of signature pages by facsimile or PDF transmission shall constitute effective execution and delivery of this Indenture as to the parties hereto and may be used
in lieu of the original Indenture for all purposes. Signatures of the parties hereto transmitted by facsimile or PDF shall be deemed to be their original signatures for all purposes.
Section 13.10 Separability.
In case
any one or more of the provisions contained in this Indenture or in the Securities of any series shall for any reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect
any other provisions of this Indenture or of such Securities, but this Indenture and such Securities shall be construed as if such invalid or illegal or unenforceable provision had never been contained herein or therein.
64
Section 13.11 No Adverse Interpretation of Other Agreements.
This Indenture may not be used to interpret another indenture, loan or debt agreement of, the Company, any Guarantor or a Subsidiary. Any such
indenture, loan or debt agreement may not be used to interpret this Indenture.
Section 13.12 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.
Section 13.13
Consent to Jurisdiction and Service of Process.
The Company and each Guarantor (including Parent and SwissCo) agree that any legal
suit, action or proceeding brought by any party to enforce any rights under or with respect to this Indenture, any Security and any Guarantee or any other document or the transactions contemplated hereby or thereby may be instituted in any state or
federal court in The City of New York, State of New York, United States of America, irrevocably waives to the fullest extent permitted by law any objection which it may now or hereafter have to the laying of venue of any such suit, action or
proceeding, irrevocably waives to the fullest extent permitted by law any claim that and agrees not to claim or plead in any court that any such action, suit or proceeding brought in such court has been brought in an inconvenient forum and
irrevocably submits to the non-exclusive jurisdiction of any such court in any such suit, action or proceeding or for recognition and enforcement of any judgment in respect thereof.
The Company and each Guarantor (including Parent and SwissCo) hereby irrevocably and unconditionally designate and appoint CT Corporation
System, 111 Eighth Avenue, New York, New York 10011, U.S.A. (and any successor entity) (CT Corporation) as its authorized agent to receive and forward on its behalf service of any and all process which may be served in any such
suit, action or proceeding in any such court and agrees that service of process upon CT Corporation shall be deemed in every respect effective service of process upon the Company or any Guarantor, as applicable, in any such suit, action or
proceeding and shall be taken and held to be valid personal service upon the Company or each Guarantor, as the case may be. Said designation and appointment shall be irrevocable. Nothing in this Section 13.13 shall affect the right of the
Holders to serve process in any manner permitted by law or limit the right of the Holders to bring proceedings against the Company or any Guarantor in the courts of any jurisdiction or jurisdictions. The Company and each Guarantor further agree to
take any and all action, including the execution and filing of any and all such documents and instruments, as may be necessary to continue such designation and appointment of CT Corporation in full force and effect so long as the Securities are
outstanding. The Company and each Guarantor hereby irrevocably and unconditionally authorize and direct CT Corporation to accept such service on its behalf. If for any reason CT Corporation ceases to be available to act as such, the Company and each
Guarantor agree to designate a new agent in New York City.
To the extent that the Company or any Guarantor has or hereafter may acquire
any immunity from jurisdiction of any court (including any court in the United States, the State of
65
New York, Luxembourg, Switzerland, Ireland or other jurisdiction in which the Company or any such Guarantor, or any successor thereof, may be organized or any political subdivisions thereof) or
from any legal process (whether through service of notice, attachment prior to judgment, attachment in aid of execution, execution or otherwise) with respect to itself or its property or assets, this Indenture, the Securities, the Guarantees or any
other documents or actions to enforce judgments in respect of any thereof, then the Company and each Guarantor hereby irrevocably waives such immunity, and any defense based on such immunity, in respect of its obligations under the above-referenced
documents and the transactions contemplated thereby, to the extent permitted by law.
Section 13.14 Waiver of Jury Trial.
EACH OF THE COMPANY, THE GUARANTORS AND THE TRUSTEE, AND EACH HOLDER BY VIRTUE OF ITS PURCHASE OF SECURITIES, HEREBY IRREVOCABLY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE SECURITIES OR THE TRANSACTIONS CONTEMPLATED HEREBY.
Section 13.15 USA Patriot Act.
The
parties hereto acknowledge that in accordance with Section 326 of the USA Patriot Act the Trustee, like all financial institutions and in order to help fight the funding of terrorism and money laundering, is required to obtain, verify, and
record information that identifies each person or legal entity that establishes a relationship or opens an account with the Trustee. The parties to this Indenture agree that they will provide the Trustee with such information as it may request in
order for the Trustee to satisfy the requirements of the USA Patriot Act.
Section 13.16 Force Majeure.
In no event shall the Trustee be responsible or liable for any failure or delay in the performance of its obligations hereunder arising out of
or caused by, directly or indirectly, forces beyond its control, including, without limitation, strikes, work stoppages, accidents, acts of war or terrorism, civil or military disturbances, nuclear or natural catastrophes or acts of God, and
interruptions, loss or malfunctions of utilities, communications or computer (software and hardware) services; it being understood that the Trustee shall use reasonable efforts which are consistent with accepted practices in the banking industry to
resume performance as soon as practicable under the circumstances.
ARTICLE XIV.
ADDITIONAL AMOUNTS; CERTAIN TAX PROVISIONS
Section 14.01 Redemption Upon Changes in Withholding Taxes.
The Securities of any series may be redeemed, as a whole but not in part, at the option of the Company, upon not less than 30 nor more than 90
days notice (which notice shall be irrevocable), at a redemption price equal to 100% of the principal amount thereof, together with
66
accrued interest, if any, to, but excluding, the redemption date and Additional Amounts (as defined in Section 14.02), if any, if as a result of any amendment to, or change in, the laws or
regulations of Luxembourg, Switzerland, Ireland, the United Kingdom or the United States, as applicable, or any political subdivision thereof or therein having the power to tax (a Taxing Jurisdiction), or any change in the
application or official interpretation of such laws, including any action taken by a taxing authority or a holding by a court of competent jurisdiction (regardless of whether such action or such holding is with respect to the Company or a
Guarantor), which amendment or change is announced or becomes effective after the date the Securities of such series are issued, the Company or a Guarantor has become, or there is a material probability that it will become, obligated to pay
Additional Amounts on the next date on which any amount would be payable with respect to the Securities of such series, and such obligation cannot be avoided by the use of commercially reasonable measures available to the Company or Guarantor, as
the case may be; provided, however, that (a) no such notice of redemption may be given earlier than 90 days prior to the earliest date on which the Company or Guarantor, as the case may be, would be obligated to pay such Additional Amounts, and
(b) at the time such notice of redemption is given, such obligation to pay such Additional Amounts remains in effect. Prior to the giving of any notice of redemption described in this paragraph, the Company shall deliver to the Trustee
(i)(A) certificate signed by two directors of the Company stating that the obligation to pay Additional Amounts cannot be avoided by the Company taking commercially reasonable measures available to it or (B) a certificate signed by two
Officers of the Guarantor stating that the obligation to pay Additional Amounts cannot be avoided by such Guarantor taking commercially reasonable measures available to it, as the case may be, and (ii) a written opinion of independent legal
counsel to the Company or such Guarantor, as the case may be, of recognized standing to the effect that the Company or Guarantor has or there is a material probability that it will become obligated to pay Additional Amounts as a result of a change,
amendment, official interpretation or application described above and that the Company or such Guarantor, as the case may be, cannot avoid the payment of such Additional Amounts by taking commercially reasonable measures available to it.
Section 14.02 Payment of Additional Amounts.
All payments made by the Company or any Guarantor under or with respect to the Securities and the Guarantees will be made free and clear of and
without withholding or deduction for or on account of any present or future taxes, duties, levies, imposts, assessments or governmental charges of whatever nature imposed or levied by or on behalf of any Taxing Jurisdiction
(Taxes), unless the Company or Guarantor, as the case may be, is required to withhold or deduct Taxes by law or by the interpretation or administration thereof. In the event that the Company or Guarantor is required to so withhold
or deduct any amount for or on account of any Taxes from any payment made under or with respect to the Securities or the Guarantees, as the case may be, the Company or Guarantor, as the case may be, will pay such additional amounts
(Additional Amounts) as may be necessary so that the net amount received by each holder of Securities (including Additional Amounts) after such withholding or deduction will equal the amount that such Holder would have received if
such Taxes had not been required to be withheld or deducted; provided that no Additional Amounts will be payable with respect to a payment to a holder of Securities or a holder of a beneficial interests in Global Securities where such holder is
subject to taxation on such payment by a relevant Taxing
67
Jurisdiction for any reason other than such holders mere ownership of the Securities or for or on account of:
(a) any Taxes that are imposed or withheld solely because such holder or a fiduciary, settler, beneficiary, or member of such
holder if such holder is an estate, trust, partnership, limited liability company or other fiscally transparent entity, or a person holding a power over an estate or trust administered by a fiduciary holder:
|
(i) |
is or was present or engaged in, or is or was treated as present or engaged in, a trade or business in the Taxing Jurisdiction or has or had a permanent establishment in the Taxing Jurisdiction; |
|
(ii) |
has or had any present or former connection (other than the mere fact of ownership of such Securities) with the Taxing Jurisdiction imposing such Taxes, including being or having been a citizen or resident thereof or
being treated as being or having been a resident thereof; |
|
(iii) |
with respect to any withholding Taxes imposed by the United States, is or was with respect to the United States a personal holding company, a passive foreign investment company, a controlled foreign corporation, a
foreign tax exempt organization or corporation that has accumulated earnings to avoid United States federal income tax; or |
|
(iv) |
owns or owned 10% or more of the total combined voting power of all classes of stock of the Company or a Guarantor; |
(b) any estate, inheritance, gift, sales, transfer, excise, personal property or similar Taxes imposed with respect to the
Securities, except as otherwise provided herein;
(c) any Taxes imposed solely as a result of the presentation of such
Securities (where presentation is required) for payment on a date more than 30 days after the date on which such payment became due and payable or the date on which payment thereof is duly provided for, whichever is later, except to the extent that
the beneficiary or holder thereof would have been entitled to the payment of Additional Amounts had the Securities been presented for payment on any date during such 30-day period;
(d) any Taxes imposed or withheld solely as a result of the failure of such holder or any other person to comply with
applicable certification, information, documentation or other reporting requirements concerning the nationality, residence, identity or connection with the Taxing Jurisdiction of such holder, if such compliance is required by statute or regulation
of the relevant Taxing Jurisdiction as a precondition to relief or exemption from such Taxes;
(e) with respect to
withholding Taxes imposed by the United States, any such Taxes imposed by reason of the failure of such holder to fulfill the statement requirements of sections 871(h) or 881(c) of the Code;
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(f) any Taxes that are payable by any method other than withholding or deduction
by the Company or a Guarantor or any paying agent from payments in respect of such Securities;
(g) any Taxes required to
be withheld by any paying agent from any payment in respect of any Securities if such payment can be made without such withholding by at least one other paying agent;
(h) any Taxes required to be deducted or withheld pursuant to the European Council Directive 2003/48/EC of June 3, 2003,
or any other directive implementing the conclusions of the ECOFIN Council meeting of November 26 and 27, 2000, on the taxation of savings income in the form of interest payments, or any amendment thereof, or any law implementing or complying
with, or introduced in order to conform to, that Directive or the Luxembourg Law of December 23, 2005, as amended;
(i) any withholding or deduction for Taxes which would not have been imposed if the relevant Securities had been presented to
another paying agent in a Member State of the European Union;
(j) any Taxes imposed or withheld by reason of a change in
law, regulation, or administrative or judicial interpretation that becomes effective more than 15 days after the payment becomes due or is duly provided for, whichever occurs later; or
(j) any combination of Section 14.02(a), (b), (c), (d), (e), (f), (g), (h), (i) and (j).
Additional Amounts will not be payable to or for the account of any Holder or the holder of a beneficial interest in a Global Security if such
payment would not be subject to such withholding or deduction of Taxes but for the failure of a Holder or the holder of a beneficial interest in a Global Security to make a valid declaration of non-residence or other similar claim for exemption or
to provide a certificate declaring its non-residence, if the Company were treated as a domestic corporation under United States federal income tax and if (x) the making of such declaration or claim or the provision of such certificate is
required or imposed by statute, treaty, regulation, ruling or administrative practice of the relevant Taxing Authority as a precondition to an exemption from, or reduction in, the relevant Taxes, and (y) at least 60 days prior to the first
payment date with respect to which the Company or a Guarantor shall apply this paragraph, the Company or Guarantor shall have notified all Holders of Securities in writing that they shall be required to provide such declaration or claim.
Additional Amounts also will not be payable to any Holder or the holder of a beneficial interest in a Global Security that is a fiduciary,
partnership, limited liability company or other fiscally transparent entity, or to such holder that is not the sole Holder or holder of such beneficial interests of such Security, as the case may be. This exception, however, will apply only to the
extent that a beneficiary or settlor with respect to the fiduciary, or a beneficial owner or member of the partnership, limited liability company or other fiscally transparent entity, would not have been entitled to the payment of an Additional
Amount had the beneficiary, settlor, beneficial owner or member received directly its beneficial or distributive share of the
69
payment. In addition, no Additional Amounts will be paid on account of any taxes imposed or withheld pursuant to Sections 1471 through 1474 of the Code (or any amended or successor version that
is substantively comparable) and any current or future regulations promulgated thereunder or official interpretations thereof.
The
Company or Guarantor, as the case may be, will also (i) make such withholding or deduction of Taxes and (ii) remit the full amount of Taxes so deducted or withheld to the relevant Taxing Jurisdiction in accordance with all applicable laws.
The Company or Guarantor, as applicable, will use its commercially reasonable efforts to obtain certified copies of tax receipts evidencing the payment of any Taxes so deducted or withheld from each Taxing Authority imposing such Taxes. The Company
or Guarantor, as the case may be, will, upon request, make available to the holders of the Securities, within 90 days after the date the payment of any Taxes so deducted or withheld is due pursuant to applicable law, certified copies of tax receipts
evidencing such payment by the Company or Guarantor or if, notwithstanding the Companys or applicable Guarantors efforts to obtain such receipts, the same are not obtainable, other evidence of such payments by the Company or Guarantor.
At least 30 days prior to each date on which any payment under or with respect to the Securities or Guarantees is due and payable, if the
Company or a Guarantor will be obligated to pay Additional Amounts with respect to such payment, the Company or Guarantor will deliver to the Trustee an Officers Certificate stating the fact that such Additional Amounts will be payable, the
amounts so payable and will set forth such other information as is necessary to enable such Trustee to pay such Additional Amounts to holders of Securities on the payment date.
In addition, the Company will pay any stamp, issue, registration, documentary or other similar taxes and duties, including interest, penalties
and Additional Amounts with respect thereto, payable in Luxembourg or the United States or any political subdivision or taxing authority of or in the foregoing in respect of the creation, issue, offering, enforcement, redemption or retirement of the
Securities except for any Luxembourg registration duties (droits denregistrement) payable in the case of a registration of the Indenture or any related document by any Holder in Luxembourg when such registration is not required
to enforce the rights of that Holder under the Indenture or any related document.
The provisions of this Article XIV shall survive any
termination of the discharge of this Indenture and shall apply mutatis mutandis to any jurisdiction in which the Company or a Guarantor or any successor Person to the Company or Guarantor, as the case may be, is organized or is engaged in business
for tax purposes or any political subdivisions or taxing authority or agency thereof or therein; provided, however, the date on which the Company or Guarantor changes its jurisdiction in which it is organized or such Person becomes a successor to
the Company or applicable Guarantor, as the case may be, shall be substituted for the date on which the series of Securities was issued.
Whenever in this Indenture, the Securities or the Guarantees there is mentioned, in any context, the payment of principal and premium, if any,
redemption price, interest or any other amount payable under or with respect to any Security, such mention shall be deemed to include mention of the payment of Additional Amounts to the extent that, in such context, Additional Amounts are, were or
would be payable in respect thereof.
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ARTICLE XV.
GUARANTEES
Section 15.01 Guarantee.
Unless otherwise specified in the terms of a series of Securities under this Indenture, Parent and SwissCo each is named hereby as a
Guarantor with respect to each series of Securities issued under this Indenture. Each person named as a Guarantor of a series of Securities under this Indenture, by being named as a Guarantor of such series of Securities, fully and unconditionally
guarantees (i) (A) to each Holder of each Security that is authenticated and delivered by the Trustee and (B) to the Trustee on behalf of such Holder, the due and punctual payment of the principal of, premium, if any, and interest on such
Security when and as the same shall become due and payable, whether at the stated maturity, by acceleration, call for redemption or otherwise and (ii) to the Trustee on its behalf all amounts owed to the Trustee under the Indenture, in each
case in accordance with the terms of such Security and of this Indenture. In case of the failure of the Company punctually to make any such payment, each such Guarantor hereby agrees to cause such payment to be made punctually when and as the same
shall become due and payable, whether at the stated maturity or by acceleration, call for redemption or otherwise, and as if such payment were made by the Company.
Each Guarantor, by being named as a Guarantor of any series of Securities under this Indenture, agrees that its obligations hereunder shall be
absolute and unconditional, irrespective of, and shall be unaffected by, the validity, regularity or enforceability of such Security or this Indenture, the absence of any action to enforce the same or any release, amendment, waiver or indulgence
granted to the Company or any such Guarantor or any consent to departure from any requirement of any other guarantee of all or any of the Securities or any other circumstances which might otherwise constitute a legal or equitable discharge or
defense of a surety or guarantor. Each such Guarantor hereby waives the benefits of diligence, presentment, demand for payment, any requirement that the Trustee or any of the Holders protect, secure, perfect or insure any security interest in or
other lien on any property subject thereto or exhaust any right or take any action against the Company or any other Person or any collateral, filing of claims with a court in the event of insolvency or bankruptcy of the Company, any right to require
a proceeding first against the Company, protest or notice with respect to such Security or the indebtedness evidenced thereby and all demands whatsoever, and covenants that this Guarantee will not be discharged in respect of such Security except by
complete performance of the obligations contained in such Security and in such Guarantee. Each such Guarantor agrees that if, after the occurrence and during the continuance of an Event of Default, the Trustee or any of the Holders of the applicable
series of Securities are prevented by applicable law from exercising their respective rights to accelerate the maturity of such Securities, to collect interest on such Securities, or to enforce or exercise any other right or remedy with respect to
such Securities, such Guarantor agrees to pay to the Trustee for the account of such Holders, upon demand therefor, the amount that would otherwise have been due and payable had such rights and remedies been permitted to be exercised by the Trustee
or any of such Holders.
Any such Guarantor shall be subrogated to all rights of the holders of the Securities against the Company in
respect of any amounts paid by such Guarantor on account of such
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Security pursuant to the provisions of its Guarantee or this Indenture; provided, however, that such Guarantor shall not be entitled to enforce or to receive any payment arising out of, or based
upon, such right of subrogation until the principal of and interest on all Securities of such series issued hereunder shall have been paid in full.
The Guarantee shall remain in full force and effect and continue to be effective should any petition be filed by or against the Company for
liquidation or reorganization, should the Company become insolvent or make a general assignment for the benefit of creditors or should a receiver or trustee be appointed for all or any part of the Companys assets, and shall, to the fullest
extent permitted by law, continue to be effective or be reinstated, as the case may be, if at any time payment and performance of such Securities, is, pursuant to applicable law, rescinded or reduced in amount, or must otherwise be restored or
returned by any holder of such Securities, whether as a voidable preference, fraudulent transfer, or otherwise, all as though such payment or performance had not been made. In the event that any payment, or any part thereof,
is rescinded, reduced, restored or returned, such Securities shall, to the fullest extent permitted by law, be reinstated and deemed reduced only by such amount paid and not so rescinded, reduced, restored or returned.
Any term or provision of the Guarantee to the contrary notwithstanding, the aggregate amount of the obligations guaranteed hereunder shall be
reduced to the extent necessary to prevent such Guarantee from violating or becoming voidable under applicable law relating to fraudulent conveyance or fraudulent transfer or similar laws affecting the rights of creditors generally.
Section 15.02 Execution and Delivery of Guarantee.
Unless otherwise specified in the terms of a Guarantee of a series of Securities under this Indenture, each Guarantee shall include the terms
of the Guarantee set forth in Section 15.01 and shall be substantially in the form established pursuant to Section 2.16. Each Guarantor hereby agrees to execute its Guarantee, in a form established pursuant to Section 2.16, on each
Security authenticated and delivered by the Trustee.
Each such Guarantee shall be executed on behalf of each such Guarantor by any one of
its chairman of the Board of Directors, president, vice presidents or other person duly authorized by the Board of Directors of such Guarantor. The signature of any or all of these persons on the Guarantee may be manual or facsimile.
A Guarantee bearing the manual or facsimile signature of individuals who were at any time the proper officers of such Guarantor shall bind
such Guarantor, notwithstanding that such individuals or any of them have ceased to hold such offices prior to the authentication and delivery of any Security or did not hold such offices at the date of such Guarantee.
The delivery of any Security by the Trustee, after the authentication thereof, shall constitute due delivery of the Guarantee on behalf of a
Guarantor and shall bind such Guarantor notwithstanding the fact that the Guarantee does not bear the signature of such Guarantor. Every Guarantor agrees that its Guarantee set forth in Section 15.01 and in the form of Guarantee established
pursuant to Section 2.16 shall remain in full force and effect notwithstanding any failure to execute a Guarantee on any such Security.
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Section 15.03 Release of Guarantee.
Notwithstanding anything in this Article XV to the contrary, concurrently with the payment in full of the principal of, premium, if any,
and interest on Securities of a series, every Guarantor shall be released from and relieved of its obligations under this Article XV with respect to the Securities of such series. Upon the delivery by the Company to the Trustee of an
Officers Certificate and an Opinion of Counsel to the effect that the transaction giving rise to the release of this Guarantee was made by the Company in accordance with the provisions of this Indenture and the Securities, the Trustee shall
execute any documents reasonably required in order to evidence the release of each Guarantor from its obligations under this Guarantee. If any of the obligations to pay the principal of, premium, if any, and interest on such Securities and all other
obligations of the Company are revived and reinstated after the termination of this Guarantee, then all of the obligations of each Guarantor under this Guarantee shall be revived and reinstated as if this Guarantee had not been terminated until such
time as the principal of, premium, if any, and interest on such Securities are paid in full, and each Guarantor shall enter into an amendment to this Guarantee, reasonably satisfactory to the Trustee, evidencing such revival and reinstatement.
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IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly executed all as of
the day and year first above written.
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PENTAIR FINANCE S.A. |
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By: |
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/s/ Benjamin Peric |
Name: |
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Benjamin Peric |
Title: |
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Director |
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PENTAIR PLC |
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By: |
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/s/ Christopher R. Oster |
Name: |
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Christopher R. Oster |
Title: |
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Authorized Representative |
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PENTAIR INVESTMENTS SWITZERLAND GMBH |
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By: |
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/s/ Henning Wistorf |
Name: |
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Henning Wistorf |
Title: |
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Managing Officer |
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U.S. BANK NATIONAL ASSOCIATION |
as Trustee |
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By: |
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/s/ Rick Prokosch |
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Rick Prokosch |
Title: |
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Vice President |
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EXHIBIT A
FORM OF CERTIFICATE OF TRANSFER
Pentair
Finance S.A.
c/o Pentair Management Company
5500 Wayzata
Boulevard, Suite 600
Golden Valley, MN 55416-1261
Attention: Mark C. Borin
Facsimile No.: (763) 656-5411
U.S. Bank National Association
60 Livingston Avenue
St. Paul, MN 55107
Attention: Global Corporate Trust Services
Facsimile No.: (651) 466-7430
Re: [insert description
of Securities]
Ladies and Gentlemen,
Reference is hereby made to the Indenture, dated as of , among Pentair Finance S.A., a Luxembourg public limited liability company (the
Company), Pentair plc, an Irish public limited company, Pentair Investments Switzerland GmbH, a Swiss Gesellschaft mit beschränkter Haftung, and U.S. Bank National Association, a national banking association, as
trustee (the Trustee), [as supplemented by that certain supplemental indenture dated as of ][and the Board
Resolution adopted ] (together, the Indenture). Capitalized terms used but not defined herein shall have the
meanings given to them in the Indenture. (the Transferor) owns and proposes to transfer the Security or
Securities or interest[s] in such Security or Securities specified in Annex A hereto, in the principal amount of $ in such Security or Securities or interest[s] (the Transfer), to
(the Transferee), as further specified in Annex A hereto. In connection with the Transfer, the Transferor
hereby certifies that:
[CHECK ALL THAT APPLY]
1. ¨ Check if Transferee will take delivery of a beneficial interest in the 144A Global Security or a Definitive Security Pursuant to Rule 144A. The Transfer is being effected
pursuant to and in accordance with Rule 144A under the United States Securities Act of 1933, as amended (the Securities Act), and, accordingly, the Transferor hereby further certifies that the beneficial interest or Definitive
Security is being transferred to a Person that the Transferor reasonably believed and believes is purchasing the beneficial interest or Definitive Security for its own account, or for one or more accounts with respect to which such Person exercises
sole investment discretion, and such Person and each such account is a qualified institutional buyer within the meaning of Rule 144A (a QIB) in a transaction meeting the requirements of Rule 144A and such Transfer is
in compliance with any applicable blue sky securities laws of any
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State of the United States. Upon consummation of the proposed Transfer in accordance with the terms of the Indenture, the transferred beneficial interest or Definitive Security will be subject to
the restrictions on transfer enumerated in the Private Placement Legend printed on the 144A Global Security and/or the Definitive Security and in the Indenture and the Securities Act.
2. ¨ Check if Transferee will take delivery of a beneficial interest in the
Regulation S Global Security or a Definitive Security pursuant to Regulation S. The Transfer is being effected pursuant to and in accordance with Rule 903 or Rule 904 under the Securities Act and, accordingly, the Transferor hereby further
certifies that (i) the Transfer is not being made to a person in the United States and (y) at the time the buy order was originated, the Transferee was outside the United States or such Transferor and any Person acting on its behalf
reasonably believed and believes that the Transferee was outside the United States or (z) the transaction was executed in, on or through the facilities of a designated offshore securities market and neither such Transferor nor any Person acting
on its behalf knows that the transaction was prearranged with a buyer in the United States, (ii) no directed selling efforts have been made in contravention of the requirements of Rule 903(b) or Rule 904 (b) of Regulation S under the
Securities Act, (iii) the transaction is not part of a plan or scheme to evade the registration requirements of the Securities Act and (iv) if the proposed Transfer is being made prior to the expiration of the Distribution Compliance
Period, the Transfer is not being made to a U.S. person (as such is defined in Regulation S) or for the account or benefit of a U.S. person (other than an initial purchaser of the Securities) and the interest transferred will be held immediately
thereafter through Euroclear or Clearstream. Upon consummation of the proposed Transfer in accordance with the terms of the Indenture, the transferred beneficial interest or Definitive Security will be subject to the restrictions on transfer
enumerated in the Private Placement Legend printed on the Regulation S Global Security and/or the Definitive Security and in the Indenture and the Securities Act.
3. ¨ Check and complete if Transferee will take delivery of a beneficial interest
in a Definitive Security pursuant to any provision of the Securities Act other than Rule 144A or Regulation S. The Transfer is being effected in compliance with the transfer restrictions applicable to beneficial interests in Restricted
Global Securities and Restricted Definitive Securities and pursuant to and in accordance with the Securities Act and any applicable blue sky securities laws of any State of the United States, and accordingly the Transferor hereby further certifies
that (check one):
(a) ¨ Such Transfer is being effected pursuant to
and in accordance with Rule 144 under the Securities Act; or
(b) ¨
Such Transfer is being effected to the Company or a subsidiary thereof; or
(c)
¨ Such Transfer is being effected pursuant to an effective registration statement under the Securities Act and in compliance with the prospectus delivery requirements of the
Securities Act.
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4. ¨ Check if Transferee will take
delivery of a beneficial interest in an Unrestricted Global Security or of an Unrestricted Definitive Security.
(a) ¨ Check if Transfer is pursuant to Rule 144. (i) The Transfer is being effected pursuant to and in accordance with Rule 144 under the Securities Act and in compliance with
the transfer restrictions contained in the Indenture and any applicable blue sky securities laws of any State of the United States and (ii) the restrictions on transfer contained in the Indenture and the Private Placement Legend are not
required in order to maintain compliance with the Securities Act. Upon consummation of the proposed Transfer in accordance with the terms of the Indenture, the transferred beneficial interest or Definitive Security will no longer be subject to the
restrictions on transfer enumerated in the Private Placement Legend printed on the Restricted Global Securities, on Restricted Definitive Securities and in the Indenture and the Securities Act.
(b) ¨ Check if Transfer is Pursuant to Regulation S.
(i) The Transfer is being effected pursuant to and in accordance with Rule 903 or Rule 904 under the Securities Act and in compliance with the transfer restrictions contained in the Indenture and any applicable blue sky securities laws of any
State of the United States and (ii) the restrictions on transfer contained in the Indenture and the Private Placement Legend are not required in order to maintain compliance with the Securities Act. Upon consummation of the proposed Transfer in
accordance with the terms of the Indenture, the transferred beneficial interest or Definitive Security will no longer be subject to the restrictions on transfer enumerated in the Private Placement Legend printed on the Restricted Global Securities,
on Restricted Definitive Securities and in the Indenture and the Securities Act.
(c)
¨ Check if Transfer is Pursuant to Other Exemption. (i) The Transfer is being effected pursuant to and in compliance with an exemption from the registration
requirements of the Securities Act other than Rule 144, Rule 903 or Rule 904 and in compliance with the transfer restrictions contained in the Indenture and any applicable blue sky securities laws of any State of the United States and (ii) the
restrictions on transfer contained in the Indenture and the Private Placement Legend are not required in order to maintain compliance with the Securities Act. Upon consummation of the proposed Transfer in accordance with the terms of the Indenture,
the transferred beneficial interest or Definitive Security will not be subject to the restrictions on transfer enumerated in the Private Placement Legend printed on the Restricted Global Securities or Restricted Definitive Securities and in the
Indenture.
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This certificate and the statements contained herein are made for the benefit of the Company and the Trustee.
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Dated: |
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[Insert Name of Transferor] |
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By: |
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Name: |
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A-4
ANNEX A TO CERTIFICATE OF TRANSFER
1. |
The Transferor owns and proposed to transfer the following: |
[CHECK ONE OF (a) OR (b)]
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(a) |
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a beneficial interest in the: |
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(i) |
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144A Global Security (CUSIP ), or |
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(ii) |
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Regulation S Global Security (CUSIP ), or |
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(b) |
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a Restricted Definitive Security. |
2. |
After the transfer the Transferee will hold: |
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(a) |
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a beneficial interest in the: |
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(i) |
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144A Global Security (CUSIP ), or |
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(ii) |
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Regulation S Global Security (CUSIP ), or |
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(iii) |
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Unrestricted Global Security (CUSIP ); or |
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(b) |
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a Restricted Definitive Security; or |
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an Unrestricted Definitive Security, |
in accordance with the terms of the Indenture.
A-5
EXHIBIT B
FORM OF CERTIFICATE OF EXCHANGE
Pentair
Finance S.A.
c/o Pentair Management Company
5500 Wayzata
Boulevard, Suite 600
Golden Valley, MN 55416-1261
Attention: Mark C. Borin
Facsimile No.: (763) 656-5411
U.S. Bank National Association
60 Livingston Avenue
St. Paul, MN 55107
Attention: Global Corporate Trust Services
Facsimile No.: (651) 466-7430
Re: [insert description
of the Securities]
Ladies and Gentlemen,
Reference is hereby made to the Indenture, dated as of , among Pentair Finance S.A., a Luxembourg public liability company (the
Company), Pentair plc, an Irish public limited company, Pentair Investments Switzerland GmbH, a Swiss Gesellschaft mit beschränkter Haftung, and U.S. Bank National Association, a national banking association, as
trustee (the Trustee) [as supplemented by that certain supplemental indenture dated as of ][and the Board
Resolution adopted ] (together, the Indenture). Capitalized terms used but not defined herein shall have the
meanings given to them in the Indenture.
, (the
Owner) owns and proposes to transfer the Security or Securities or interest[s] in such Security or Securities specified herein, in the principal amount of $ in such Security or
Securities or interest[s] (the Exchange). In connection with the Exchange, the Owner hereby certifies that:
1.
Exchange of Restricted Definitive Securities or Beneficial Interests in a Restricted Global Security for Unrestricted Definitive Securities or Beneficial Interests in an Unrestricted Global Security.
(a) ¨ Check if Exchange is from beneficial interest in a Restricted
Global Security to beneficial interest in an Unrestricted Global Security. In connection with the Exchange of the Owners beneficial interest in a Restricted Global Security for a beneficial interest in an Unrestricted Global Security
in an equal principal amount, the Owner hereby certifies (i) the beneficial interest is being acquired for the Owners own account without transfer, (ii) such Exchange has been effected in compliance with the transfer restrictions
applicable to the Global Securities and pursuant to and in accordance with the United States Securities Act of 1933, as amended (the Securities Act), (iii) the restrictions on transfer contained in the
B-1
Indenture and the Private Placement Legend are not required in order to maintain compliance with the Securities Act and (iv) the beneficial interest in an Unrestricted Global Security is
being acquired in compliance with any applicable blue sky securities laws of any State of the United States.
(b) ¨ Check if Exchange is from beneficial interest in a Restricted Global Security to Unrestricted Definitive Security. In connection with the Exchange of the Owners beneficial
interest in a Restricted Global Security for an Unrestricted Definitive Security in an equal principal amount, the Owner hereby certifies (i) the Definitive Security is being acquired for the Owners own account without transfer,
(ii) such Exchange has been effected in compliance with the transfer restrictions applicable to the Restricted Global Securities and pursuant to and in accordance with the Securities Act, (iii) the restrictions on transfer contained in the
Indenture and the Private Placement Legend are not required in order to maintain compliance with the Securities Act and (iv) the Definitive Security is being acquired in compliance with any applicable blue sky securities laws of any State of
the United States.
(c) ¨ Check if Exchange is from Restricted
Definitive Security to beneficial interest in an Unrestricted Global Security. In connection with the Owners Exchange of a Restricted Definitive Security for a beneficial interest in an Unrestricted Global Security, the Owner hereby
certifies (i) the beneficial interest is being acquired for the Owners own account without transfer, (ii) such Exchange has been effected in compliance with the transfer restrictions applicable to Restricted Definitive Securities and
pursuant to and in accordance with the Securities Act, (iii) the restrictions on transfer contained in the Indenture and the Private Placement Legend are not required in order to maintain compliance with the Securities Act and (iv) the
beneficial interest in an Unrestricted Global Security is being acquired in compliance with any applicable blue sky securities laws of any State of the United States.
(d) ¨ Check if Exchange is from Restricted Definitive Security to
Unrestricted Definitive Security. In connection with the Owners Exchange of a Restricted Definitive Security for an Unrestricted Definitive Security, the Owner hereby certifies (i) the Unrestricted Definitive Security is being
acquired for the Owners own account without transfer, (ii) such Exchange has been effected in compliance with the transfer restrictions applicable to Restricted Definitive Securities and pursuant to and in accordance with the Securities
Act, (iii) the restrictions on transfer contained in the Indenture and the Private Placement Legend are not required in order to maintain compliance with the Securities Act and (iv) the Unrestricted Definitive Security is being acquired in
compliance with any applicable blue sky securities laws of any State of the United States.
2. Exchange of Restricted Definitive
Securities or Beneficial Interests in Restricted Global Securities for Restricted Definitive Securities or Beneficial Interests in Restricted Global Securities.
(a) ¨ Check if Exchange is from
beneficial interest in a Restricted Global Security to Restricted Definitive Security. In connection with the Exchange of the Owners
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beneficial interest in a Restricted Global Security for a Restricted Definitive Security with an equal principal amount, the Owner hereby certifies that the Restricted Definitive Security is
being acquired for the Owners own account without transfer. Upon consummation of the proposed Exchange in accordance with the terms of the Indenture, the Restricted Definitive Security issued will continue to be subject to the restrictions on
transfer enumerated in the Private Placement Legend printed on the Restricted Definitive Security and in the Indenture and the Securities Act.
(b) ¨ Check if Exchange is from Restricted Definitive Security to
beneficial interest in a Restricted Global Security. In connection with the Exchange of the Owners Restricted Definitive Security for a beneficial interest in the: [CHECK ONE]
¨ 144A Global Security or ¨ Regulation S Global Security with an equal principal amount, the Owner hereby
certifies (i) the beneficial interest is being acquired for the Owners own account without transfer and (ii) such Exchange has been effected in compliance with the transfer restrictions applicable to Restricted Global Securities and
pursuant to and in accordance with the Securities Act, and in compliance with any applicable blue sky securities laws of any State of the United States. Upon consummation of the proposed Exchange in accordance with the terms of the Indenture, the
beneficial interest issued will be subject to the restrictions on transfer enumerated in the Private Placement Legend printed on the relevant Restricted Global Security and in the Indenture and the Securities Act.
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This certificate and the statements contained herein are made for the benefit of the Company and the Trustee.
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Exhibit 4.2
Execution Version
PENTAIR FINANCE S.A.,
as Issuer
AND
PENTAIR PLC,
as Parent and Guarantor
AND
PENTAIR INVESTMENTS SWITZERLAND GMBH,
as Guarantor
AND
U.S. BANK NATIONAL ASSOCIATION,
as Trustee
FIRST SUPPLEMENTAL
INDENTURE
Dated as of September 16, 2015
$500,000,000 of 2.900% Senior Notes due 2018
THIS FIRST SUPPLEMENTAL INDENTURE is dated as of September 16, 2015, among PENTAIR FINANCE
S.A., a Luxembourg public limited liability company (société anonyme) with a registered office at 26, boulevard Royal, L-2449 Luxembourg, Luxembourg and registered with the Luxembourg Trade and Companies Register under
number B 166305, as issuer (the Company), each of PENTAIR PLC, an Irish public limited company (Parent), and PENTAIR INVESTMENTS SWITZERLAND GMBH, a Switzerland limited liability company, as guarantors (each
individually, a Guarantor and collectively, the Guarantors), and U.S. BANK NATIONAL ASSOCIATION, a national banking association, as trustee (the Trustee).
RECITALS
A. The Company, the
Guarantors and the Trustee have heretofore executed and delivered an Indenture, dated as of September 16, 2015 (the Base Indenture), to provide for the issuance by the Company from time to time of unsubordinated debt
securities evidencing its unsecured indebtedness and the guarantee of such securities by the Guarantors to the extent described therein and in this First Supplemental Indenture.
B. Pursuant to resolutions of the Board of Directors, the Company has authorized the issuance of $500,000,000 principal amount of 2.900%
Senior Notes due 2018 (the Offered Securities).
C. The entry into this First Supplemental Indenture by the parties
hereto is in all respects authorized by the provisions of the Base Indenture.
D. The Company and the Guarantors desire to enter into this
First Supplemental Indenture pursuant to Section 9.01 of the Base Indenture to establish the terms of the Offered Securities in accordance with Section 2.01 of the Base Indenture and to establish the form of the Offered Securities in
accordance with Section 2.02 of the Base Indenture.
E. All things necessary to make this First Supplemental Indenture a legal, valid
and binding indenture and agreement according to its terms have been done.
NOW, THEREFORE, for and in consideration of the foregoing
premises, the Company, the Guarantors and the Trustee mutually covenant and agree for the equal and proportionate benefit of the respective Holders from time to time of the Offered Securities as follows:
ARTICLE I
Section 1.1 Terms of Offered
Securities.
The following terms relate to the Offered Securities:
(1) The Offered Securities constitute a series of securities having the title 2.900% Senior Notes due 2018.
1
First Supplemental Indenture
(2) The initial aggregate principal amount of the Offered Securities that may be authenticated
and delivered under the Base Indenture (except for Offered Securities authenticated and delivered upon registration of transfer of, or in exchange for, or in lieu of, other Offered Securities pursuant to Section 2.05, 2.06, 2.07, 2.11, or 3.03
of the Base Indenture) is $500,000,000.
(3) The entire Outstanding principal of the Offered Securities shall be payable on
September 15, 2018.
(4) The rate at which the Offered Securities shall bear interest shall be 2.900% per year, as set forth in
Section 1 of the form of Offered Security attached hereto as Exhibit A and subject to adjustment as set forth in Section 2 of the form of Offered Security attached hereto as Exhibit A. The date from which interest shall accrue on the
Offered Securities shall be September 16, 2015 or the most recent Interest Payment Date to which interest has been paid or provided for. The Interest Payment Dates for the Offered Securities shall be March 15 and September 15 of each
year, beginning on March 15, 2016. Interest shall be payable on each Interest Payment Date to the Holders of record at the close of business on the March 1 and September 1 prior to each Interest Payment Date (a regular record
date). The basis upon which interest shall be calculated shall be that of a 360-day year consisting of twelve 30-day months.
(5) The Offered Securities shall be issuable in whole in the registered form of one or more Global Securities, and the Depositary for such
Global Securities shall be The Depository Trust Company, New York, New York. The Offered Securities shall be substantially in the form attached hereto as Exhibit A, the terms of which are incorporated by reference in this First Supplemental
Indenture. The Offered Securities shall be issuable in denominations of $2,000 or any integral multiple of $1,000 in excess thereof.
(6)
The Offered Securities shall be subject to redemption at the Companys option on any Redemption Date as set forth in Section 6 of the form of Offered Security attached hereto as Exhibit A.
(7) Except as provided in this First Supplemental Indenture, the Offered Securities shall not be subject to redemption, repurchase or
repayment at the option of any Holder thereof, upon the occurrence of any particular circumstances or otherwise. The Offered Securities shall not have the benefit of any sinking fund. For the avoidance of doubt, the Company, the Guarantors and their
respective Affiliates may purchase Offered Securities from the Holders thereof from time to time, either in the open market at prevailing prices or in private transactions at negotiated prices. Any Offered Securities purchased by the Company, the
Guarantors or any of their respective Affiliates may, at the purchasers discretion, be held, resold or canceled.
(8) Except as
provided in this First Supplemental Indenture, the Holders of the Offered Securities shall have no special rights in addition to those provided in the Base Indenture upon the occurrence of any particular events.
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First Supplemental Indenture
(9) The Offered Securities shall be general unsecured and unsubordinated obligations of the
Company and shall be ranked equally among themselves.
(10) The Offered Securities are not convertible into shares of common stock or
other securities of the Company or the Guarantors.
(11) In addition to the provisions of the Base Indenture referred to in
Section 11.03(b) thereof, the covenants described in Sections 1.3(1), 1.3(2) and 1.3(3) of this First Supplemental Indenture shall be subject to the Companys covenant defeasance right set forth in Section 11.03 of the Base Indenture.
In addition, following any such covenant defeasance, the Events of Default set forth in Sections 1.5(1), 1.5(3) and 1.5(4) of this First Supplemental Indenture shall cease to apply with respect to the Offered Securities.
Section 1.2 Additional Defined Terms.
As used in this First Supplemental Indenture, the following defined terms shall have the following meanings with respect to the Offered
Securities only:
Attributable Debt, in connection with a Sale and Lease-Back Transaction, as of any particular time,
means the aggregate of present values (discounted at a rate that, at the inception of the lease, represents the effective interest rate that the lessee would have incurred to borrow over a similar term the funds necessary to purchase the leased
assets) of the obligations of the Company, a Guarantor or any Restricted Subsidiary for net rental payments during the remaining term of the applicable lease, including any period for which such lease has been extended or, at the option of the
lessor, may be extended. The term net rental payments under any lease of any period shall mean the sum of the rental and other payments required to be paid in such period by the lessee thereunder, not including any amounts
required to be paid by such lessee, whether or not designated as rental or additional rental, on account of maintenance and repairs, reconstruction, insurance, taxes, assessments, water rates or similar charges required to be paid by such lessee
thereunder or any amounts required to be paid by such lessee thereunder contingent upon the amount of sales, maintenance and repairs, reconstruction, insurance, taxes, assessments, water rates or similar charges.
Change of Control means the occurrence on or after the Issue Date of any of the following: (1) the direct or indirect
sale, lease, transfer, conveyance or other disposition (other than by way of merger or consolidation), in one or more series of related transactions, of all or substantially all of the assets of Parent and its Subsidiaries, taken as a whole, to any
person other than Parent or a direct or indirect wholly-owned Subsidiary of Parent; (2) the consummation of any transaction (including, without limitation, any merger or consolidation) the result of which is that any person becomes the
beneficial owner (as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of more than 50% of Parents outstanding Voting Stock or other Voting Stock into which Parents Voting Stock is
reclassified, consolidated, exchanged or changed, measured by voting power rather than number of shares; (3) Parent consolidates with, or merges with or into, any person, or any person consolidates with, or merges with or into, Parent, in any
such event pursuant to a transaction in which any of Parents outstanding Voting Stock or the Voting Stock of such other person is converted into or exchanged for cash,
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First Supplemental Indenture
securities or other property, other than any such transaction where the shares of Parents Voting Stock outstanding immediately prior to such transaction constitute, or are converted into or
exchanged for, at least a majority of the Voting Stock of the surviving person or any direct or indirect parent company of the surviving person immediately after giving effect to such transaction; or (4) the approval by the holders of
Parents Voting Stock of a plan for Parents liquidation or dissolution. Notwithstanding the foregoing, a transaction shall not be deemed to involve a Change of Control under clause (1), (2) or (4) above if: (i) Parent
becomes a direct or indirect wholly-owned Subsidiary of a holding company or a holding company becomes the successor to Parent under Section 10.2 of the Base Indenture pursuant to a transaction that is permitted under Section 10.1 of the
Base Indenture and (ii) the direct or indirect holders of the Voting Stock of such holding company immediately following that transaction (or a series of related transactions) are the same or substantially the same (and hold in the same or
substantially the same proportions) as the holders of Parents Voting Stock immediately prior to that transaction. The term person, as used in this definition, means any Person and any two or more Persons as provided in
Section 13(d)(3) of the Exchange Act.
Change of Control Triggering Event means the occurrence of both a Change of
Control and a Rating Event; provided, however, that a Change of Control Triggering Event otherwise arising by virtue of a particular reduction in rating shall not be deemed to have occurred in respect of a Change of Control if the Rating Agency or
Rating Agencies making the reduction in rating to which this definition would otherwise apply do not announce or publicly confirm or inform the Trustee in writing at its request that the reduction was the result, in whole or in part, of any event or
circumstance comprised of or arising as a result of, or in respect of, the applicable Change of Control (whether or not the applicable Change of Control shall have occurred at the time of the purported Change of Control Triggering Event). Unless at
least two of the three Rating Agencies are providing a rating for the Offered Securities at the commencement of any period referred to in the definition of Rating Event, a Rating Event shall be deemed to have occurred during such period.
Notwithstanding the foregoing, no Change of Control Triggering Event shall be deemed to have occurred in connection with any particular Change of Control unless and until such Change of Control has actually been consummated.
Consolidated Net Tangible Assets at any date means Consolidated Net Worth less all Intangible Assets appearing on the most
recently prepared consolidated balance sheet of Parent and its Subsidiaries as of the end of a fiscal quarter of Parent and its Subsidiaries, prepared in accordance with United States generally accepted accounting principles as in effect on the date
of the consolidated balance sheet.
Consolidated Net Worth at any date means total assets less total liabilities, in
each case appearing on the most recently prepared consolidated balance sheet of Parent and its Subsidiaries as of the end of a fiscal quarter of Parent and its Subsidiaries, prepared in accordance with United States generally accepted accounting
principles as in effect on the date of the consolidated balance sheet.
Consolidated Total Assets at any date means the
total assets appearing on the most recently prepared consolidated balance sheet of Parent and its Subsidiaries as of the end of a fiscal quarter of Parent and its Subsidiaries, prepared in accordance with United States generally accepted accounting
principles as in effect on the date of the consolidated balance sheet.
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First Supplemental Indenture
ERICO means ERICO Global Company, an Ohio corporation.
ERICO Acquisition means the acquisition of all of the outstanding shares of ERICO by Buyer (as defined in the definition of
ERICO Merger Agreement) pursuant to the ERICO Merger Agreement.
ERICO Merger Agreement means the Agreement and Plan of
Merger dated August 15, 2015, among Parent, Pentair Lionel Acquisition Co., a Delaware corporation and wholly-owned subsidiary of Parent (Buyer), Pentair Lionel Merger Sub, Inc., an Ohio corporation and a wholly-owned
subsidiary of Parent and Buyer, and ERICO, as the same may be amended, restated, supplemented, replaced or otherwise modified from time to time.
Fitch means Fitch Inc., and its successors.
Funded Indebtedness means any Indebtedness maturing by its terms more than one year from the date of the determination
thereof, including any Indebtedness renewable or extendible at the option of the obligor to a date later than one year from the date of the determination thereof.
Indebtedness means, without duplication, the principal amount (such amount being the face amount or, with respect to
original issue discount bonds or zero coupon notes, bonds or debentures or similar securities, determined based on the accreted amount as of the date of the most recently prepared consolidated balance sheet of Parent and its Subsidiaries as of the
end of a fiscal quarter of Parent prepared in accordance with United States generally accepted accounting principles as in effect on the date of such consolidated balance sheet) of (i) all obligations for borrowed money, (ii) all
obligations evidenced by debentures, notes or other similar instruments, (iii) all obligations in respect of letters of credit or bankers acceptances or similar instruments or reimbursement obligations with respect thereto (such instruments to
constitute Indebtedness only to the extent that the outstanding reimbursement obligations in respect thereof are collateralized by cash or cash equivalents reflected as assets on a balance sheet prepared in accordance with United States generally
accepted accounting principles), (iv) all obligations as lessee to the extent capitalized in accordance with United States generally accepted accounting principles in effect on the date of this First Supplemental Indenture and (v) all
Indebtedness of others consolidated in such balance sheet that is guaranteed by the Company, a Guarantor or any of their respective Subsidiaries or for which the Company, a Guarantor or any of their respective Subsidiaries is legally responsible or
liable (whether by agreement to purchase indebtedness of, or to supply funds or to invest in, others).
Intangible
Assets means the amount, if any, stated under the heading Goodwill and Other Intangible assets, net or under any other heading of intangible assets separately listed, in each case on the face of the most recently prepared
consolidated balance sheet of Parent and its subsidiaries as of the end of a fiscal quarter of Parent, prepared in accordance with United States generally accepted accounting principles as in effect on the date of the consolidated balance sheet.
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First Supplemental Indenture
Investment Grade Rating means a rating equal to or higher than BBB- (or the
equivalent) by Fitch, Baa3 (or the equivalent) by Moodys and BBB- (or the equivalent) by S&P, and the equivalent investment grade credit rating from any replacement rating agency or rating agencies selected by the Company.
Issue Date means the date on which the Offered Securities are originally issued.
Lien means a mortgage, pledge, security interest, lien or similar encumbrance.
Moodys means Moodys Investors Service, Inc., and its successors.
Non-Recourse Indebtedness means Indebtedness upon the enforcement of which recourse may be had by the holder(s) thereof
only to identified assets of a Guarantor or the Company or any Subsidiary of a Guarantor or the Company and not to a Guarantor or the Company or any Subsidiary of a Guarantor or the Company personally (subject to, for the avoidance of doubt,
customary exceptions contained in non-recourse financings to the non-recourse nature of the obligations thereunder).
Principal
Property means any manufacturing, processing or assembly plant, warehouse or distribution facility, office building or parcel of real property of Parent or any of its Subsidiaries that is located in the United States of America, Canada or
the Commonwealth of Puerto Rico and (A) is owned by Parent or any Subsidiary of Parent on the Issue Date, (B) the initial construction of which has been completed after the date hereof, or (C) is acquired after the date hereof, in
each case, other than any such plants, facilities, warehouses, office buildings, parcels or portions thereof, that (i) in the opinion of the Board of Directors of Parent, are not collectively of material importance to the total business
conducted by Parent and its Subsidiaries as an entirety, or (ii) has a net book value (excluding any capitalized interest expense), on the Issue Date in the case of clause (A) of this definition, on the date of completion of the initial
construction in the case of clause (B) of this definition or on the date of acquisition in the case of clause (C) of this definition, of less than 1.0% of Consolidated Net Tangible Assets on the consolidated balance sheet of Parent as of
the applicable date.
Rating Agencies means (i) each of Fitch, Moodys and S&P, and (ii) if any of
Fitch, Moodys or S&P ceases to rate the Offered Securities or fails to make a rating of the Offered Securities publicly available for reasons outside of the Companys control, a nationally recognized statistical rating
organization within the meaning of Rule 15c3-1(c)(2)(vi)(F) under the Exchange Act, selected by the Company (as certified by a resolution of the Companys Board of Directors) as a replacement agency for Fitch, Moodys or S&P, or
all of them, as the case may be.
Rating Event means the rating on the Offered Securities is lowered by at least two of
the three Rating Agencies and such Offered Securities are rated below an Investment Grade Rating by at least two of the three Rating Agencies on any day during the period (which period
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First Supplemental Indenture
shall be extended so long as the rating of such Offered Securities is under publicly announced consideration for a possible downgrade by any of the Rating Agencies) commencing on the date of
Parents first public notice of the occurrence of a Change of Control or Parents intention to effect a Change of Control and ending 60 days following consummation or abandonment of such Change of Control.
Restricted Subsidiary means any Subsidiary of Parent that owns or leases a Principal Property.
Sale and Lease-Back Transaction means an arrangement with any Person providing for the leasing by Parent or a Restricted
Subsidiary of any Principal Property whereby such Principal Property has been owned and in full operation for more than 180 days and has been or is to be sold or transferred by Parent or a Restricted Subsidiary to such Person other than a Guarantor,
the Company or any of their respective Subsidiaries; provided, however, that the foregoing shall not apply to any such arrangement involving a lease for a term, including renewal rights, for not more than three years.
S&P means Standard & Poors Ratings Services, a division of The McGraw-Hill Companies, Inc., and its
successors.
Voting Stock means, with respect to any specified Person as of any date, the capital stock of
such Person that is at the time entitled to vote generally in the election of the board of directors of such Person.
Section 1.3 Additional
Covenants.
The following additional covenants shall apply with respect to the Offered Securities so long as any of the Offered
Securities remain Outstanding (but subject to defeasance, as provided in the Base Indenture and Section 1.1 of this First Supplemental Indenture):
(1) Limitation on Liens.
None
of the Company or the Guarantors shall, and none of them shall permit any Restricted Subsidiary to, issue, assume or guarantee any Indebtedness that is secured by a Lien upon any property that at the time of such issuance, assumption or guarantee
constitutes a Principal Property, or any shares of stock of or Indebtedness issued by any Restricted Subsidiary, whether now owned or hereafter acquired, without effectively providing that, for so long as such Lien shall continue in existence with
respect to such secured Indebtedness, the Offered Securities (together with, if the Company shall so determine, any other Indebtedness of the Company ranking equally with the Offered Securities, it being understood that for purposes hereof,
Indebtedness which is secured by a Lien and Indebtedness which is not so secured shall not, solely by reason of such Lien, be deemed to be of different ranking) shall be equally and ratably secured by a Lien ranking ratably with or equal to (or at
the Companys option prior to) such secured Indebtedness; provided, however, that the foregoing covenant shall not apply to:
(a) Liens existing on the Issue Date;
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First Supplemental Indenture
(b) Liens on the stock, assets or Indebtedness of a Person existing at the time
such Person becomes a Restricted Subsidiary, unless created in contemplation of such Person becoming a Restricted Subsidiary;
(c) Liens on any assets or Indebtedness of a Person existing at the time such Person is merged with or into or consolidated
with or acquired by the Company, a Guarantor or a Restricted Subsidiary or at the time of a purchase, lease or other acquisition of the assets of a corporation or firm as an entirety or substantially as an entirety by the Company, a Guarantor or any
Restricted Subsidiary;
(d) Liens on any Principal Property existing at the time of acquisition thereof by the Company, a
Guarantor or any Restricted Subsidiary, or Liens to secure the payment of the purchase price of such Principal Property by the Company, a Guarantor or any Restricted Subsidiary, or to secure any Indebtedness incurred, assumed or guaranteed by the
Company, a Guarantor or a Restricted Subsidiary for the purpose of financing all or any part of the purchase price of such Principal Property or improvements or construction thereon, which Indebtedness is incurred, assumed or guaranteed prior to, at
the time of or within 180 days after such acquisition, or in the case of real property, completion of such improvement or construction or commencement of full operation of such property, whichever is later; provided, however, that in the case
of any such acquisition, construction or improvement, the Lien shall not apply to any Principal Property theretofore owned by the Company, a Guarantor or a Restricted Subsidiary, other than the Principal Property so acquired, constructed or
improved, and accessions thereto and improvements and replacements thereof and the proceeds of the foregoing;
(e) Liens
securing Indebtedness owing by any Restricted Subsidiary to the Company, a Guarantor or a Subsidiary thereof or by the Company to a Guarantor;
(f) Liens in favor of the United States or any State thereof, or any department, agency or instrumentality or political
subdivision of the United States or any State thereof, or in favor of any other country or any political subdivision thereof, to secure partial, progress, advance or other payments pursuant to any contract, statute, rule or regulation or to secure
any Indebtedness incurred or guaranteed for the purpose of financing all or any part of the purchase price (or, in the case of real property, the cost of construction or improvement) of the Principal Property subject to such Liens (including Liens
incurred in connection with pollution control, industrial revenue or similar financings);
(g) pledges, Liens or deposits
under workers compensation or similar legislation, and Liens thereunder that are not currently dischargeable, or in connection with bids, tenders, contracts (other than for the payment of money) or leases to which the Company, a Guarantor or
any Restricted Subsidiary is a party, or to secure the public or statutory obligations of the Company, a Guarantor or any Restricted Subsidiary, or in connection with obtaining or maintaining self-insurance, or to obtain the benefits of any law,
regulation or arrangement pertaining to unemployment insurance, old age pensions, social security or similar matters, or to secure surety, performance, appeal or customs
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First Supplemental Indenture
bonds to which the Company, a Guarantor or any Restricted Subsidiary is a party, or in litigation or other proceedings in connection with the matters heretofore referred to in this clause, such
as interpleader proceedings, and other similar pledges, Liens or deposits made or incurred in the ordinary course of business;
(h) Liens created by or resulting from any litigation or other proceeding that is being contested in good faith by appropriate
proceedings, including Liens arising out of judgments or awards against the Company, a Guarantor or any Restricted Subsidiary with respect to which the Company, a Guarantor or such Restricted Subsidiary in good faith is prosecuting an appeal or
proceedings for review or for which the time to make an appeal has not yet expired; or final unappealable judgment Liens which are satisfied within 15 days of the date of judgment; or Liens incurred by the Company, a Guarantor or any Restricted
Subsidiary for the purpose of obtaining a stay or discharge in the course of any litigation or other proceeding to which the Company, a Guarantor or such Restricted Subsidiary is a party, provided that (x) in the case of Liens arising out of
judgments or awards, the enforcement of such Liens is effectively stayed and (y) the aggregate amount secured by all such Liens does not at any time exceed the greater of (i) $25,000,000 or (ii) 0.5% of Consolidated Total Assets;
(i) Liens for taxes or assessments or governmental charges or levies not yet due or delinquent; or that can thereafter be paid
without penalty, or that are being contested in good faith by appropriate proceedings; landlords Liens on property held under lease; and any other Liens or charges incidental to the conduct of the business of the Company, a Guarantor or any
Restricted Subsidiary, or the ownership of their respective assets, that were not incurred in connection with the borrowing of money or the obtaining of advances or credit and that, in the opinion of the Board of Directors of a Guarantor, do not
materially impair the use of such assets in the operation of the business of the Company, a Guarantor or such Restricted Subsidiary or the value of such Principal Property for the purposes of such business;
(j) Liens to secure the Companys, a Guarantors or any Restricted Subsidiarys obligations under agreements
with respect to spot, forward, future and option transactions, entered into in the ordinary course of business;
(k) Liens
not permitted by the foregoing clauses (a) to (j), inclusive, if at the time of, and upon giving effect to, the creation or assumption of any such Lien, the aggregate amount of all outstanding Indebtedness of the Company, the Guarantors and all
Restricted Subsidiaries, without duplication, secured by all such Liens not so permitted by the foregoing clauses (a) through (j), inclusive, together with the Attributable Debt in respect of Sale and Lease-Back Transactions permitted by
paragraph (a) under subsection (2) below, do not exceed an amount equal to 15% of Consolidated Net Tangible Assets; and
(l) any extension, renewal or replacement (or successive extensions, renewals or replacements) in whole or in part, of any Lien
referred to in the foregoing clauses (a) to (k), inclusive; provided, however, that the principal amount of Indebtedness secured
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First Supplemental Indenture
thereby (except to the extent otherwise excepted under clauses (a) through (k)) shall not exceed the principal amount of Indebtedness so secured at the time of such extension, renewal or
replacement, and that such extension, renewal or replacement shall be limited to all or a part of the assets, or any replacements therefor and products and proceeds thereof, that secured the Lien so extended, renewed or replaced, plus improvements
and construction on real property.
(2) Limitation on Sale and Lease-Back Transactions.
None of the Company or the Guarantors shall, and none of them shall permit any Restricted Subsidiary to, enter into any Sale and Lease-Back
Transaction (other than with the Company, a Guarantor and/or one or more Subsidiaries of a Guarantor) unless:
(a) the
Company, such Guarantor or such Restricted Subsidiary, at the time of entering into such Sale and Lease-Back Transaction, would be entitled to incur Indebtedness secured by a Lien on the Principal Property to be leased in an amount at least equal to
the Attributable Debt in respect of such Sale and Lease-Back Transaction, without equally and ratably securing the Offered Securities pursuant to Section 1.3(1) of this First Supplemental Indenture; or
(b) the direct or indirect proceeds of the sale of the Principal Property to be leased are at least equal to the fair value of
such Principal Property, as determined by Parents Board of Directors, and an amount equal to the net proceeds from the sale of the property or assets so leased is applied, within 180 days of the effective date of any such Sale and Lease-Back
Transaction, to the purchase or acquisition, or, in the case of real property, commencement of the construction of property or assets or to the retirement (other than at maturity or pursuant to a mandatory sinking fund or mandatory redemption
provision) of Offered Securities, or of Funded Indebtedness of Parent or a consolidated Subsidiary ranking on a parity with or senior to the Offered Securities; provided that there shall be credited to the amount of net proceeds required to be
applied pursuant to this clause (b) an amount equal to the sum of (i) the principal amount of Offered Securities delivered within 180 days of the effective date of such Sale and Lease-Back Transaction to the Trustee for retirement and
cancellation and (ii) the principal amount of other Funded Indebtedness voluntarily retired by Parent or a consolidated Subsidiary ranking on a parity with or senior to the Offered Securities within such 180-day period, excluding retirements of
Offered Securities and other Funded Indebtedness as a result of conversions or pursuant to mandatory sinking fund or mandatory prepayment provisions.
(3) Change of Control Triggering Event.
(a) If a Change of Control Triggering Event occurs, unless the Company has exercised its option to redeem the Offered
Securities, it shall be required to make an offer (a Change of Control Offer) to each Holder of the Offered Securities to repurchase, at the Holders election, all or any part (equal to $2,000 or an integral multiple of
$1,000 in excess thereof) of that Holders Offered Securities on the terms set forth in this First Supplemental Indenture. In a Change of Control Offer, the Company shall be required to
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First Supplemental Indenture
offer payment in cash equal to 101% of the aggregate principal amount of Offered Securities repurchased, plus accrued and unpaid interest, if any, on the Offered Securities repurchased to, but
excluding, the date of repurchase (a Change of Control Payment). Within 30 days following any Change of Control Triggering Event or, at the Companys option, prior to any Change of Control, but after public announcement of
the transaction that constitutes or may constitute the Change of Control, a notice shall be sent to the Trustee and to the Holders of the Offered Securities describing in reasonable detail the transaction that constitutes or may constitute the
Change of Control Triggering Event and offering to repurchase such Offered Securities on the date specified in the notice, which date shall, except as described in the immediately following sentence and other than as required by law, be no earlier
than 30 days and no later than 60 days from the date such notice is sent (a Change of Control Payment Date). The notice shall, if sent prior to the date of consummation of the Change of Control, state that the offer to purchase is
conditioned on the Change of Control Triggering Event occurring on or prior to the Change of Control Payment Date.
(b) In
order to accept the Change of Control Offer, the Holder must deliver (or otherwise comply with alternative instructions in accordance with the procedures of the Depositary) to the paying agent, at least five Business Days prior to the Change of
Control Payment Date, its Offered Security together with the form entitled Election Form (which form is contained in the form of note attached hereto as Exhibit A) duly completed, or a telegram, telex, facsimile transmission or a letter
from a member of a national securities exchange, or the Financial Industry Regulatory Authority, Inc. or a commercial bank or trust company in the United States setting forth:
(i) the name of the Holder of such Offered Security;
(ii) the principal amount of such Offered Security;
(iii) the principal amount of such Offered Security to be repurchased;
(iv) the certificate number or a description of the tenor and terms of such Offered Security;
(v) a statement that the Holder is accepting the Change of Control Offer; and
(vi) a guarantee that such Offered Security, together with the form entitled Election Form duly completed, shall be
received by the paying agent at least five Business Days prior to the Change of Control Payment Date.
(c) Any exercise by
a Holder of its election to accept the Change of Control Offer shall be irrevocable. The Change of Control Offer may be accepted for less than the entire principal amount of an Offered Security, but in that event the principal amount of such Offered
Security remaining Outstanding after repurchase must be equal to $2,000 or an integral multiple of $1,000 in excess thereof.
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First Supplemental Indenture
(d) On the Change of Control Payment Date, the Company shall, to the extent
lawful:
(i) accept for payment all Offered Securities or portions of such Offered Securities properly tendered pursuant to
the Change of Control Offer;
(ii) deposit with the paying agent an amount equal to the Change of Control Payment in
respect of all Offered Securities or portions of Offered Securities properly tendered; and
(iii) deliver or cause to be
delivered to the Trustee the Offered Securities properly accepted together with an Officers Certificate stating the aggregate principal amount of Offered Securities or portions of Offered Securities being repurchased.
(e) The Company shall not be required to make a Change of Control Offer upon the occurrence of a Change of Control Triggering
Event if a third party makes such an offer in the manner, at the times and otherwise in compliance with the requirements for an offer made by the Company and the third party purchases all Offered Securities properly tendered and not withdrawn under
its offer. In addition, the Company shall not repurchase any Offered Securities if there has occurred and is continuing on the Change of Control Payment Date an Event of Default under the Indenture, other than a default in the payment of the Change
of Control Payment upon a Change of Control Triggering Event.
(f) Notwithstanding the foregoing, the Company and the
Guarantors shall comply with the requirements of Rule 14e-1 under the Securities Exchange Act of 1934, as amended (the Exchange Act), and any other securities laws and regulations thereunder to the extent those laws and
regulations are applicable in connection with the repurchase of the Offered Securities as a result of a Change of Control Triggering Event. To the extent that the provisions of any such securities laws or regulations conflict with this
Section 1.3(3), none of the Company or the Guarantors shall be deemed to have breached its obligations under this Section 1.3(3) by virtue of its compliance with such securities laws or regulations.
Section 1.4 Special Mandatory Redemption.
(1) In the event that either (i) Parent does not consummate the ERICO Acquisition on or prior to December 31, 2015, or (ii) the
ERICO Merger Agreement is terminated any time prior to such date (without replacement thereof) other than as a result of consummating the ERICO Acquisition, the Company shall redeem all of the Outstanding Offered Securities in whole and not in part
(a Special Mandatory Redemption) on the Special Mandatory Redemption Date at a redemption price equal to 101% of the principal amount of the Offered Securities, plus accrued and unpaid interest, if any, to, but excluding, the
Special Mandatory Redemption Date. The Special Mandatory Redemption Date means the earlier to occur of (i) February 1, 2016, if the ERICO Acquisition has not been consummated on or prior to December 31, 2015, or
(ii) the 30th day (or if such day is not a Business Day, the first Business Day thereafter) following
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First Supplemental Indenture
the termination of the ERICO Merger Agreement (without replacement thereof) other than as a result of consummating the ERICO Acquisition. Notwithstanding the foregoing, installments of interest
on the Offered Securities that are due and payable on Interest Payment Dates falling on or prior to the Special Mandatory Redemption Date shall be payable on such Interest Payment Dates to the registered Holders as of the close of business on the
relevant regular record dates, as provided in the Base Indenture and this First Supplemental Indenture.
(2) The Company shall cause the
notice of a Special Mandatory Redemption to be sent, with a copy to the Trustee, within five Business Days after the occurrence of the event triggering the obligation to effectuate the Special Mandatory Redemption to each Holder at its registered
address. On or before the Special Mandatory Redemption Date, the Company shall deposit with the Trustee or a paying agent funds sufficient to pay the special mandatory redemption price of the Offered Securities to be redeemed on the Special
Mandatory Redemption Date. If funds sufficient to pay the special mandatory redemption price of the Offered Securities to be redeemed on the Special Mandatory Redemption Date are deposited with the Trustee or a paying agent on or before such Special
Mandatory Redemption Date, and any applicable conditions set forth in the Base Indenture are satisfied, interest shall cease to accrue on the Offered Securities on and after such Special Mandatory Redemption Date.
Section 1.5 Additional Events of Default.
The following additional events shall be established and shall each constitute an Event of Default under Section 6.01(a) of
the Base Indenture with respect to the Offered Securities so long as any of the Offered Securities remain Outstanding:
(1) default in the
performance or breach by the Company or a Guarantor of the covenant described under Section 10.01 of the Base Indenture;
(2) failure
by the Company to effect a Special Mandatory Redemption, if required, on the Special Mandatory Redemption Date;
(3) failure by the
Company for 60 days from receipt of written notice by the Trustee or the Holders of at least 25% of the principal amount of the Offered Securities Outstanding to comply with the provisions under Section 1.3(3) of this First Supplemental
Indenture; and
(4) an event of default shall happen and be continuing with respect to any Indebtedness (other than Non-Recourse
Indebtedness) of the Company, a Guarantor or any Restricted Subsidiary under any indenture or other instrument evidencing or under which the Company, a Guarantor or any Restricted Subsidiary shall have a principal amount outstanding (such amount
with respect to original issue discount bonds or zero coupon notes, bonds or debentures or similar securities based on the accreted amount determined in accordance with United States generally accepted accounting principles and as of the date of the
most recently prepared consolidated balance sheet of the Company, a Guarantor or any Restricted Subsidiary, as the case may be) in excess of $100,000,000, and such event of default shall involve the failure to pay the principal of such Indebtedness
on the final maturity date thereof after the expiration of any applicable grace period with respect thereto, or such Indebtedness shall have been
13
First Supplemental Indenture
accelerated so that the same shall have become due and payable prior to the date on which the same would otherwise have become due and payable, and such acceleration shall not be rescinded or
annulled within 30 days after notice thereof shall have been given to the Company by the Trustee, or to the Company and the Trustee by the Holders of at least 25% in aggregate principal amount of the Outstanding Offered Securities; provided,
however, that:
(a) if such event of default under such indenture or instrument shall be remedied or cured by the Company
or the applicable Guarantor or waived by the requisite holders of such Indebtedness, then the Event of Default hereunder by reason thereof shall be deemed likewise to have been thereupon remedied, cured or waived without further action upon the part
of either the Trustee or any of the Holders; and
(b) subject to the provisions of Sections 7.01 and 7.02 of the Base
Indenture, the Trustee shall not be charged with actual knowledge of any such event of default unless written notice thereof shall have been given to a Responsible Officer of the Trustee by the Company or a Guarantor, as the case may be, by the
holder or an agent of the holder of any such Indebtedness, by the trustee then acting under any indenture or other instrument under which such default shall have occurred, or by the Holders of not less than 25% in the aggregate principal amount of
Outstanding Offered Securities.
ARTICLE II
MISCELLANEOUS
Section 2.1
Definitions.
Capitalized terms used but not defined in this First Supplemental Indenture shall have the meanings ascribed thereto
in the form of Offered Security attached hereto as Exhibit A or in the Base Indenture.
Section 2.2 Confirmation of Indenture.
The Base Indenture, as supplemented and amended by this First Supplemental Indenture, is in all respects ratified and confirmed, and the Base
Indenture, this First Supplemental Indenture and all indentures supplemental thereto shall be read, taken and construed as one and the same instrument.
Section 2.3 Concerning the Trustee.
In carrying out the Trustees responsibilities hereunder, the Trustee shall have all of the rights, protections and immunities which it
possesses under the Indenture. The recitals contained in this First Supplemental Indenture and in the Offered Securities, except the Trustees certificate of authentication, shall be taken as the statements of the Company, and the Trustee
assumes no responsibility for their correctness. The Trustee shall not be responsible for and makes no representations as to (i) the validity or sufficiency of this First Supplemental Indenture or of the Offered Securities, (ii) the proper
authorization hereof by each Guarantor and the Company by
14
First Supplemental Indenture
action or otherwise, (iii) the due execution hereof by each Guarantor and the Company or (iv) the consequences of any amendment herein provided for. The Trustee shall not be accountable
for the use or application by the Company of the Offered Securities or the proceeds thereof.
Section 2.4 Governing Law.
This First Supplemental Indenture and the Offered Securities shall be deemed to be a contract made under the internal laws of the State of New
York, and for all purposes shall be construed in accordance with the laws of said State without regard to conflicts of law principles (except for Sections 5-1401 and 5-1402 of the New York General Obligations Law) that would require the application
of any other law. This First Supplemental Indenture is subject to the provisions of the Trust Indenture Act of 1939 that are required to be part of this First Supplemental Indenture and shall, to the extent applicable, be governed by such
provisions. The application of articles 86 to 94-8 of the Luxembourg law on commercial companies dated 10 August 1915, as amended, to the Indenture and the Offered Securities is excluded.
Section 2.5 Separability.
In case
any one or more of the provisions contained in this First Supplemental Indenture or in the Offered Securities of any series shall for any reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or
unenforceability shall not affect any other provisions of this First Supplemental Indenture or of such Offered Securities, but this First Supplemental Indenture and such Offered Securities shall be construed as if such invalid or illegal or
unenforceable provision had never been contained herein or therein.
Section 2.6 Counterparts.
This First Supplemental Indenture may be executed in any number of counterparts, each of which shall be an original, but such counterparts
shall together constitute but one and the same instrument. The exchange of copies of this First Supplemental Indenture and of signature pages by facsimile or PDF transmission shall constitute effective execution and delivery of this First
Supplemental Indenture as to the parties hereto and may be used in lieu of the original First Supplemental Indenture for all purposes. Signatures of the parties hereto transmitted by facsimile or PDF shall be deemed to be their original signatures
for all purposes.
Section 2.7 No Benefit.
Nothing in this First Supplemental Indenture, express or implied, shall give to any Person other than the parties hereto and their successors
or assigns, and the Holders of the Offered Securities, any benefit or legal or equitable rights, remedy or claim under this First Supplemental Indenture or the Base Indenture.
15
First Supplemental Indenture
Section 2.8 Amendments and Supplemental Indentures.
This First Supplemental Indenture and the Offered Securities are subject to the provisions regarding supplemental indentures and amendments set
forth in Article IX of the Base Indenture, as amended by this First Supplemental Indenture.
Section 2.9 Legal, Valid and Binding Obligation.
The Guarantors and the Company hereby represent and warrant that, assuming the due authorization, execution and delivery of this First
Supplemental Indenture by the Trustee, this First Supplemental Indenture is the legal, valid and binding obligation of the Guarantors and the Company enforceable against the Guarantors and the Company in accordance with its terms, subject to
bankruptcy, insolvency, reorganization and other laws of general applicability relating to or affecting the enforcement of creditors rights and to general equity principles.
[Signature Page Follows]
16
First Supplemental Indenture
IN WITNESS WHEREOF, the parties hereto have caused this First Supplemental Indenture to be duly
executed as of the day and year first above written.
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PENTAIR FINANCE S.A., |
as Issuer |
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By: |
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/s/ Benjamin Peric |
Name: |
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Benjamin Peric |
Title: |
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Director |
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PENTAIR PLC, as Parent
and Guarantor |
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By: |
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/s/ Christopher R. Oster |
Name: |
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Christopher R. Oster |
Title: |
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Authorized Representative |
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PENTAIR INVESTMENTS SWITZERLAND GMBH,
as Guarantor |
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By: |
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/s/ Henning Wistorf |
Name: |
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Henning Wistorf |
Title: |
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Managing Officer |
17
First Supplemental Indenture
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U.S. BANK NATIONAL ASSOCIATION, |
as Trustee |
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By: |
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/s/ Rick Prokosch |
Name: |
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Rick Prokosch |
Title: |
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Vice President |
18
First Supplemental Indenture
EXHIBIT A
FORM OF 2.900% NOTES
[Insert the
Private Placement Legend and/or the Global Security legend, as applicable]
2.900% SENIOR NOTES DUE 2018
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No. [ ] |
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$[ ] |
CUSIP No. 709629 AM1 |
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PENTAIR FINANCE S.A.
Société anonyme
26,
boulevard Royal
L-2449 Luxembourg
R.C.S. B 166305
promises to pay to
[ ] or registered assigns, the principal sum of [ ] Dollars on September 15, 2018.
Interest Payment Dates: March 15 and September 15
Regular Record Dates: March 1 and September 1
Each holder of this Security (as defined below), by accepting the same, agrees to and shall be bound by the provisions hereof and of the
Indenture described herein, and authorizes and directs the Trustee described herein on such holders behalf to be bound by such provisions. Each holder of this Security hereby waives all notice of the acceptance of the provisions contained
herein and in the Indenture and waives reliance by such holder upon said provisions.
This Security shall not be entitled to any benefit
under the Indenture, or be valid or become obligatory for any purpose, until the Certificate of Authentication hereon shall have been signed by or on behalf of the Trustee. The provisions of this Security are continued on the reverse side hereof,
and such continued provisions shall for all purposes have the same effect as though fully set forth at this place.
[Signature Page
Follows]
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IN WITNESS WHEREOF, the Company has caused this instrument to be signed in accordance with Section 2.04 of
the Base Indenture.
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PENTAIR FINANCE S.A. |
Name: |
Title: |
CERTIFICATE OF AUTHENTICATION
This is one of the Securities of the series designated therein and referred to in the within-mentioned Indenture.
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U.S. BANK NATIONAL ASSOCIATION, |
as Trustee |
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By: |
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Authorized Signatory |
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Dated: |
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GUARANTEE
For value received, each of PENTAIR PLC and PENTAIR INVESTMENTS SWITZERLAND GMBH hereby absolutely, unconditionally and irrevocably guarantees
(i) to the holder of this Security the payment of principal of, premium, if any, and interest and any Additional Amounts, if any, on, the Security upon which this Guarantee is set forth in the amounts and at the time when due and payable
whether by declaration thereof, or otherwise, and interest on the overdue principal and interest, if any, of such Security, if lawful, to the holder of such Security and the Trustee on behalf of the Holders, and (ii) to the Trustee all amounts
owed to the Trustee under the Indenture, in each case in accordance with and subject to the terms and limitations of such Security and Article XV of the Base Indenture. This Guarantee shall not become effective until the Trustee or Authenticating
Agent duly executes the certificate of authentication on this Security. This Guarantee shall be governed by and construed in accordance with the laws of the State of New York, without regard to conflict of law principles thereof.
Dated:
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PENTAIR PLC |
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By: |
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Name: |
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Title: |
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PENTAIR INVESTMENTS SWITZERLAND GMBH |
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By: |
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Name: |
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Title: |
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PENTAIR FINANCE S.A.
Société anonyme
26,
boulevard Royal
L-2449 Luxembourg
R.C.S. B 166305
2.900% Senior
Notes due 2018
This security is one of a duly authorized series of debt securities of Pentair Finance S.A., a Luxembourg public
limited liability company (société anonyme) with a registered office at 26, boulevard Royal, L-2449 Luxembourg, Luxembourg and registered with the Luxembourg Trade and Companies Register under number B 166305 (the
Company), issued or to be issued in one or more series under and pursuant to an Indenture for the Companys unsubordinated debt securities, dated as of September 16, 2015 (the Base Indenture), duly
executed and delivered by and among the Company, Pentair plc, an Irish public limited company (Parent), Pentair Investments Switzerland GmbH, a Switzerland limited liability company (a Guarantor and, together
with Parent, the Guarantors) and U.S. Bank National Association, a national banking association (the Trustee), as supplemented by the First Supplemental Indenture, dated as of September 16, 2015 (the
First Supplemental Indenture), by and among the Company, the Guarantors and the Trustee. The Base Indenture as supplemented and amended by the First Supplemental Indenture is referred to herein as the Indenture.
By the terms of the Base Indenture, the debt securities issuable thereunder are issuable in series that may vary as to amount, date of maturity, rate of interest and in other respects as provided in the Base Indenture. This security is one of the
series designated on the face hereof (individually, a Security, and collectively, the Securities), and reference is hereby made to the Indenture for a description of the rights, limitations of rights,
obligations, duties and immunities of the Trustee, the Company, the Guarantors and the holders of this Security (the Securityholders). Capitalized terms used herein and not otherwise defined shall have the meanings given them in
the Base Indenture or in the First Supplemental Indenture, as applicable.
1. Interest. The Company promises to pay interest
on the principal amount of this Security at an annual rate of 2.900% (the Original Interest Rate), subject to adjustment pursuant to Section 2 of this Security. The Company shall pay interest semi-annually on March 15
and September 15 of each year (each such day, an Interest Payment Date). If any Interest Payment Date, redemption date or maturity date of this Security is not a Business Day, then payment of interest or principal (and
premium, if any) shall be made on the next succeeding Business Day with the same force and effect as if made on the date such payment was due, and no interest shall accrue for the period after such date to the date of such payment on the next
succeeding Business Day. Interest on the Securities shall accrue from the most recent date to which interest has been paid or duly provided for or, if no interest has been paid, from the date of issuance; provided that, if there is no existing
Default in the payment of interest, and if this Security is authenticated between a regular record date referred to on the face hereof and the next succeeding Interest Payment Date, interest shall accrue from such next succeeding Interest Payment
Date; and provided, further, that the first Interest Payment Date shall be March 15, 2016. Interest shall be calculated on the basis of a 360-day year consisting of twelve 30-day months.
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2. Interest Rate Adjustment. The interest rate payable on this Security shall be
subject to adjustment from time to time if either Moodys or S&P (or, if applicable, a nationally recognized statistical rating organization within the meaning of Section 3(a)(62) under the Exchange Act selected by the
Company as a replacement for Moodys or S&P, or both, as the case may be (each, a Substitute Rating Agency)) downgrades (or subsequently upgrades) its rating assigned to the Securities, as set forth in this
Section 2. Each of Moodys, S&P and any Substitute Rating Agency is an Interest Rate Rating Agency, and together they are Interest Rate Rating Agencies.
If the rating of the Securities from one or both of Moodys or S&P (or, if applicable, any Substitute Rating Agency) is decreased to
a rating set forth in either of the tables set forth in this Section 2, the interest rate shall increase from the Original Interest Rate by an amount equal to the sum of the percentages per annum set forth in the following tables opposite those
ratings:
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Moodys Rating* |
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Percentage |
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Ba1 |
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0.25 |
% |
Ba2 |
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0.50 |
% |
Ba3 |
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0.75 |
% |
B1 or below |
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1.00 |
% |
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S&P Rating* |
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Percentage |
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BB+ |
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0.25 |
% |
BB |
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0.50 |
% |
BB- |
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0.75 |
% |
B+ or below |
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1.00 |
% |
* |
Including the equivalent ratings of any Substitute Rating Agency therefor. |
For purposes of
making adjustments to the interest rate payable on this Security, the following rules of interpretation shall apply:
(1)
if at any time less than two Interest Rate Rating Agencies provide a rating on the Securities for reasons not within the Companys control (i) the Company shall use commercially reasonable efforts to obtain a rating on the Securities from
a Substitute Rating Agency for purposes of determining any increase or decrease in the interest rate on this Security pursuant to the tables set forth in this Section 2, (ii) such Substitute Rating Agency shall be substituted for the last
Interest Rate Rating Agency to provide a rating on the Securities but which has since ceased to provide such rating, (iii) the relative ratings scale used by such Substitute Rating Agency to assign ratings to senior unsecured debt shall be
determined in good faith by an independent investment banking institution of national standing appointed by the Company and, for purposes of determining the applicable ratings included in the applicable table with respect to such Substitute Rating
Agency, such ratings shall be deemed to be the equivalent ratings used by Moodys or S&P, as applicable, in such table, and (iv) the interest rate payable on this Security shall
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increase or decrease, as the case may be, such that the interest rate payable equals the Original Interest Rate plus the appropriate percentage, if any, set forth opposite the rating from such
Substitute Rating Agency in the applicable table (taking into account the provisions of clause (iii) in this paragraph (1)) (plus any applicable percentage resulting from a decreased rating by the other Interest Rate Rating Agency);
(2) for so long as only one Interest Rate Rating Agency provides a rating on the Securities, any increase or decrease in the
interest rate payable on this Security necessitated by a reduction or increase in the rating by that Interest Rate Rating Agency shall be twice the applicable percentage set forth in the applicable table set forth in this Section 2;
(3) if both Interest Rate Rating Agencies cease to provide a rating of the Securities for any reason, and no Substitute Rating
Agency has provided a rating on the Securities, the interest rate shall increase to, or remain at, as the case may be, 2.00% per annum above the Original Interest Rate prior to any such adjustment;
(4) if Moodys or S&P ceases to rate the Securities or make a rating of the Securities publicly available for reasons
within the Companys control, the Company shall not be entitled to obtain a rating from a Substitute Rating Agency and the increase or decrease in the interest rate on this Security shall be determined in the manner described in this
Section 2 as if either only one or no Interest Rate Rating Agency provides a rating on the Securities, as the case may be;
(5) each interest rate adjustment required by any decrease or increase in a rating as set forth in this Section 2, whether
occasioned by the action of Moodys or S&P (or, in either case, any Substitute Rating Agency), shall be made independently of (and in addition to) any and all other interest rate adjustments occasioned by the action of the other Interest
Rate Rating Agency;
(6) in no event shall the interest rate on this Security be reduced to below the Original Interest
Rate prior to any such adjustment; and
(7) subject to paragraphs (3) and (4) of this Section 2, no
adjustment in the interest rate on this Security shall be made solely as a result of an Interest Rate Rating Agency ceasing to provide a rating of the Securities.
If at any time the interest rate on this Security has been adjusted upward and either of the Interest Rate Rating Agencies subsequently
increases its rating of the Securities, the interest rate on this Security shall again be adjusted (and decreased, if appropriate) such that the interest rate on this Security equals the Original Interest Rate prior to any such adjustment plus (if
applicable) an amount equal to the sum of the percentages per annum set forth opposite the ratings in the tables set forth in this Section 2 with respect to the ratings assigned to the Securities (or deemed assigned) at that time, all
calculated in accordance with the rules of interpretation set forth in this Section 2. If Moodys or any Substitute Rating Agency subsequently increases its rating on the Securities to Baa3 (or its equivalent if with respect to
any Substitute Rating Agency) or higher and S&P or any Substitute Rating Agency subsequently increases its rating on the Securities to
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BBB- (or its equivalent if with respect to any Substitute Rating Agency) or higher, the interest rate on this Security shall be decreased to the Original Interest Rate prior to any
adjustments made pursuant to this Section 2.
Any increase or decrease in the interest rate shall take effect from the first day of
the interest period during which a rating change occurs requiring an adjustment in the interest rate. If either Interest Rate Rating Agency changes its rating of the Securities more than once during any particular interest period, the last such
change by such Interest Rate Rating Agency to occur shall control in the event of a conflict for purposes of any increase or decrease in the interest rate.
The interest rate shall permanently cease to be subject to any adjustment (notwithstanding any subsequent decrease in the ratings by either
Interest Rate Rating Agency) if the Securities becomes rated Baa1 or higher by Moodys (or its equivalent if with respect to any Substitute Rating Agency) and BBB+ or higher by S&P (or its equivalent if with respect
to any Substitute Rating Agency), in each case with a stable or positive outlook.
If the interest rate payable on this Security is
increased as set forth in this Section 2, the term interest shall be deemed to include any such additional interest unless the context otherwise requires.
3. Method of Payment. The Company shall pay interest on this Security (except defaulted interest), if any, to the persons in whose
name such Security is registered at the close of business on the regular record date referred to on the facing page of this Security for such interest installment. In the event that this Security or a portion hereof is called for redemption and the
Redemption Date is subsequent to a regular record date with respect to any Interest Payment Date and prior to such Interest Payment Date, interest on this Security shall be paid upon presentation and surrender of this Security as provided in the
Indenture. The principal of and the interest on this Security shall be payable in the coin or currency of the United States of America that at the time is legal tender for public and private debt, at the office or agency of the Company maintained
for that purpose in accordance with the Indenture.
4. Paying Agent and Registrar. Initially, U.S. Bank National Association,
the Trustee, shall act as paying agent and Security Registrar. The Company may change or appoint any paying agent or Security Registrar without notice to any Securityholder. The Guarantors, the Company or any of their Subsidiaries may act in any
such capacity.
5. Indenture. The terms of this Security include those stated in the Indenture and those made part of the
Indenture by reference to the Trust Indenture Act of 1939 (the TIA) as in effect on the date the Indenture is qualified. This Security is subject to all such terms, and Securityholders are referred to the Indenture and the TIA for
a statement of such terms. These Securities are unsecured general obligations of the Company and constitute the series designated on the face hereof as the 2.900% Senior Notes due 2018, initially limited to $500,000,000 in aggregate
principal amount.
The Company shall furnish to any Securityholder upon written request and without charge a copy of the Base Indenture
and the First Supplemental Indenture. Requests may be made to: Pentair Finance S.A., 26, boulevard Royal, L-2449 Luxembourg, Attention: the Managing Directors.
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6. Optional Redemption. This Security is subject to redemption at the option of the
Company on any date prior to the maturity date, in whole or from time to time in part, in $1,000 increments (provided that any remaining principal amount thereof shall be at least the minimum authorized denomination thereof), on written
notice given to the Securityholders thereof not less than 30 days nor more than 90 days prior to the date fixed for redemption in such notice (the Redemption Date). The Securities shall be redeemable at a redemption price equal to
the greater of (i) 100% of the principal amount of such Securities to be redeemed and (ii) as determined by the Quotation Agent (as defined below) and delivered to the Trustee in writing, the sum of the present values of the remaining
scheduled payments of principal and interest thereon due on any date after the Redemption Date (excluding the portion of interest that shall be accrued and unpaid to and including the Redemption Date) discounted from their scheduled date of payment
to the Redemption Date (assuming a 360-day year consisting of twelve 30-day months) at the Adjusted Redemption Treasury Rate (as defined below) plus 30 basis points, plus, in either the case of clause (i) or clause (ii), accrued and unpaid
interest, if any, thereon to, but excluding, the Redemption Date.
This Security is also subject to redemption to the extent provided in
Section 14.01 of the Indenture.
If the giving of the notice of redemption is completed as provided in the Indenture, interest on
such Securities or portions of Securities shall cease to accrue on and after the Redemption Date, unless the Company shall default in the payment of any such redemption price and accrued interest with respect to any such Security or portion thereof.
Except as otherwise expressly provided herein (including paragraph 8 herein) or in the First Supplemental Indenture, the Company shall
not be required to make mandatory redemption or sinking fund payments with respect to this Security.
Adjusted Redemption
Treasury Rate, with respect to any Redemption Date, means the rate equal to the semiannual equivalent yield to maturity or interpolated (on a 30/360 day count basis) yield to maturity of the Comparable Redemption Treasury Issue, assuming a
price for the Comparable Redemption Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Redemption Treasury Price for such Redemption Date.
Comparable Redemption Treasury Issue means the United States Treasury security selected by the Quotation Agent as being the
most recently issued United States Treasury note or bond displayed by Bloomberg LP (or any successor service) on screens PXI through PX8 (or any other screens as may replace such screens on such service) having a maturity comparable to the remaining
term of the Securities to be redeemed.
Comparable Redemption Treasury Price, with respect to any Redemption Date,
means (i) the average of the Redemption Reference Treasury Dealer Quotations for such Redemption Date, after excluding the highest and lowest such Redemption Reference Treasury Dealer Quotations (unless there is more than one highest or lowest
quotation, in which case only
A-8
one such highest and/or lowest quotation shall be excluded), or (ii) if the Quotation Agent obtains fewer than four such Redemption Reference Treasury Dealer Quotations, the average of all
such Redemption Reference Treasury Dealer Quotations.
Quotation Agent means a Redemption Reference Treasury Dealer
appointed as such agent by the Company.
Redemption Reference Treasury Dealers means four primary U.S. government
securities dealers in the United States selected by the Company.
Redemption Reference Treasury Dealer Quotations, with
respect to each Redemption Reference Treasury Dealer and any Redemption Date, means the average, as determined by the Quotation Agent, of the bid and offer prices at 11:00 a.m., New York City time, for the Comparable Redemption Treasury Issue
(expressed in each case as a percentage of its principal amount) for settlement on the Redemption Date quoted in writing to the Quotation Agent by such Redemption Reference Treasury Dealer on the third Business Day preceding such Redemption Date.
7. Change of Control Triggering Event. If a Change of Control Triggering Event occurs, unless the Company has exercised its option
to redeem this Security, it shall be required to make an offer to the holder of this Security to repurchase, at such holders election, all or a part (equal to $2,000 or an integral multiple of $1,000 in excess thereof; provided that any
remaining principal amount of this Security shall be at least the minimum authorized denomination thereof), of this Security, in cash equal to 101% of the aggregate principal amount of this Security repurchased, plus accrued and unpaid interest, if
any, to, but excluding, the date of repurchase. Within 30 days following any Change of Control Triggering Event, or at the Companys option, prior to any Change of Control, but after public announcement of the transaction that constitutes or
may constitute the Change of Control Triggering Event, a notice shall be sent to the Trustee and to each Securityholder describing in reasonable detail the transaction that constitutes or may constitute the Change of Control Triggering Event and
offering to repurchase this Security on the date specified in the notice, which date shall, except as described in the immediately following sentence and other than as required by law, be no earlier than 30 days and no later than 60 days from the
date such notice is sent. The notice shall, if sent prior to the date of consummation of the Change of Control, state that the offer to purchase is conditioned on the Change of Control Triggering Event occurring on or prior to the date of
repurchase.
8. Special Mandatory Redemption. If Parent does not consummate the ERICO Acquisition on or prior to
December 31, 2015, or the ERICO Merger Agreement is terminated any time prior to such date (without replacement thereof) other than as a result of consummating the ERICO Acquisition, then the Company shall be required to redeem this Security on
the Special Mandatory Redemption Date at a redemption price equal to 101% of the principal amount of this Security, plus accrued and unpaid interest, if any, to, but excluding, the Special Mandatory Redemption Date. Notwithstanding the foregoing,
installments of interest on this Security that are due and payable on Interest Payment Dates falling on or prior to the Special Mandatory Redemption Date shall be payable on such Interest Payment Dates to the registered Securityholders as of the
close of business on the relevant regular record dates. The Company
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shall cause the notice of a Special Mandatory Redemption to be sent, with a copy to the Trustee, within five Business Days after the occurrence of the event triggering the obligation to
effectuate the Special Mandatory Redemption to each Securityholder at its registered address. On or before the Special Mandatory Redemption Date, the Company shall deposit with the Trustee or a paying agent funds sufficient to pay the special
mandatory redemption price of the Securities to be redeemed on the Special Mandatory Redemption Date. If funds sufficient to pay the special mandatory redemption price of the Securities to be redeemed on the Special Mandatory Redemption Date are
deposited with the Trustee or a paying agent on or before such Special Mandatory Redemption Date, and any applicable conditions set forth in the Indenture are satisfied, interest shall cease to accrue on the Securities on and after such Special
Mandatory Redemption Date.
9. Denominations, Transfer, Exchange. The Securities are in registered form without coupons in the
denominations of $2,000 or any integral multiple of $1,000 in excess thereof. The transfer of Securities may be registered and Securities may be exchanged as provided in the Indenture. The Securities may be presented for exchange or for registration
of transfer (duly endorsed or with the form of transfer endorsed thereon duly executed if so required by the Company or the Security Registrar) at the office of the Security Registrar or at the office of any transfer agent designated by the Company
for such purpose. No service charge shall be made for any registration of transfer or exchange, but a Securityholder may be required to pay any applicable taxes or other governmental charges. If the Securities are to be redeemed, the Company shall
not be required to: (i) issue, register the transfer of, or exchange any Security during a period beginning at the opening of business 15 days before the day a notice of redemption is sent of less than all of the Outstanding Securities of the
same series and ending at the close of business on the day such notice of redemption is sent; (ii) register the transfer of or exchange any Security of any series or portions thereof selected for redemption, in whole or in part, except the
unredeemed portion of any such Security being redeemed in part; nor (iii) register the transfer of or exchange a Security of any series between the applicable regular record date and the next succeeding Interest Payment Date.
10. Persons Deemed Owners. The registered Securityholder may be treated as its owner for all purposes.
11. Repayment to the Guarantors or the Company. Any funds or Governmental Obligations deposited with any paying agent or the Trustee,
or then held by the Guarantors or the Company, in trust for payment of principal of, premium, if any, or interest on the Securities that are not applied but remain unclaimed by the Securityholders for at least one year after the date upon which the
principal of, premium, if any, or interest on such Securities shall have respectively become due and payable, shall be repaid to the Guarantors or the Company, as applicable, or (if then held by the Guarantors or the Company) shall be discharged
from such trust. After return to the Company or the Guarantors, Securityholders entitled to the money or securities must look to the Company or the Guarantors, as applicable, for payment as unsecured general creditors.
12. Amendments, Supplements and Waivers. The Base Indenture contains provisions permitting the Company, the Guarantors and the
Trustee, with the consent of the holders of not less than a majority in aggregate principal amount of the securities of each series at the time
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Outstanding affected by such supplemental indenture or indentures to enter into supplemental indentures for the purpose of adding, changing or eliminating any provisions of the Base Indenture or
any supplemental indenture or of modifying in any manner not covered elsewhere in the Base Indenture the rights of the holders of the securities of such series; provided, however, that no such supplemental indenture, without the
consent of the holders of each security then Outstanding and affected thereby, shall: (i) extend a fixed maturity of or any installment of principal of any securities of any series or reduce the principal amount thereof, or reduce the amount of
principal of any original issue discount security that would be due and payable upon declaration of acceleration of the maturity thereof; (ii) reduce the rate of or extend the time for payment of interest of any security of any series;
(iii) reduce the premium payable upon the redemption of any security; (iv) make any security payable in Currency other than that stated in the security; (v) impair the right to institute suit for the enforcement of any payment on or
after the fixed maturity thereof (or in the case or redemption, on or after the redemption date); (vi) modify any subordination provisions applicable to this Security or the guarantee of this Security in a manner adverse in any material respect
to the holder hereof; or (vii) reduce the percentage of securities, the holders of which are required to consent to any such supplemental indenture or indentures. In addition, without the consent of each of the Securityholders, the Company and
the Guarantors may not amend the provisions of Section 1.4 of the First Supplemental Indenture or the corresponding provisions of this Security.
The Base Indenture also contains provisions permitting the holders of not less than a majority in aggregate principal amount of the
Outstanding securities of each series affected thereby, on behalf of all of the holders of the securities of such series, to waive any past default under the Base Indenture, and its consequences, except a default in the payment of the principal of,
premium, if any, or interest on, any of the securities of such series as and when the same shall become due by the terms of such securities.
Any such consent or waiver by the registered Securityholder shall be conclusive and binding upon such Securityholder and upon all future
Securityholders and owners of this Security and of any Security issued in exchange for this Security or in place hereof (whether by registration of transfer or otherwise), irrespective of whether or not any notation of such consent or waiver is made
upon this Security.
13. Defaults and Remedies. If an Event of Default with respect to the securities of a series issued
pursuant to the Base Indenture occurs and is continuing, the Trustee or the holders of at least 25% in aggregate principal amount of the securities of such series then Outstanding, by notice in writing to the Company and the Guarantors (and to the
Trustee if notice is given by such holders), may declare the unpaid principal of, premium, if any, and accrued interest, if any, due and payable immediately. Subject to the terms of the Indenture, if an Event of Default under the Indenture shall
occur and be continuing, the Trustee shall be under no obligation to exercise any of its rights or powers under the Indenture at the request or direction of any of the holders, unless such holders have offered the Trustee indemnity satisfactory to
it. Upon satisfaction of certain conditions set forth in the Indenture, the holders of a majority in principal amount of the Outstanding securities of a series issued pursuant to the Base Indenture shall have the right to direct the time, method and
place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred on the Trustee, with respect to the securities of such series.
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14. Trustee, Paying Agent and Security Registrar May Hold Securities. The Trustee, subject
to certain limitations imposed by the TIA, or any paying agent or Security Registrar, in its individual or any other capacity, may become the owner or pledgee of Securities with the same rights it would have if it were not Trustee, paying agent or
Security Registrar.
15. No Recourse Against Others. No recourse under or upon any obligation, covenant or agreement of the
Indenture, or of any Security, or for any claim based thereon or otherwise in respect hereof or thereof, shall be had against any incorporator, stockholder, officer or director, past, present or future as such, of the Guarantors or the Company or of
any predecessor or successor Person, either directly or through the Guarantors or the Company or any such predecessor or successor Person, whether by virtue of any constitution, statute or rule of law, or by the enforcement of any assessment or
penalty or otherwise; it being expressly understood that the Indenture and the obligations issued hereunder and thereunder are solely corporate obligations, and that no such personal liability whatever shall attach to, or is or shall be incurred by,
the incorporators, organizers, shareholders, partners, members, officers, directors, managers or agents as such, of the Guarantors or the Company or of any predecessor or successor Person, or any of them, because of the creation of the indebtedness
authorized by the Indenture, or under or by reason of the obligations, covenants or agreements contained in the Indenture or in the Securities or implied therefrom; and that any and all such personal liability of every name and nature, either at
common law or in equity or by constitution or statute, of, and any and all such rights and claims against, every such incorporator, organizer, shareholder, partner, member, officer, director, manager or agent as such, because of the creation of the
indebtedness authorized by the Indenture, or under or by reason of the obligations, covenants or agreements contained in the Indenture or in the Securities or implied therefrom, are hereby expressly waived and released as a condition of, and as a
consideration for, the acceptance of the Securities.
16. Discharge of Indenture. The Indenture contains certain provisions
pertaining to defeasance and discharge, which provisions shall for all purposes have the same effect as if set forth herein.
17.
Authentication. This Security shall not be valid until the Trustee signs the certificate of authentication attached to the other side of this Security.
18. Guarantees. All payments by the Company under the Indenture and this Security are fully and unconditionally guaranteed to the
Securityholder by the Guarantors, as provided in the related Guarantee and the Indenture.
19. Additional Amounts. The Company and
the Guarantors are obligated to pay Additional Amounts on this Security to the extent provided in Article XIV of the Indenture.
20.
Abbreviations. Customary abbreviations may be used in the name of a Securityholder or an assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (= joint tenants with right of survivorship and not
as tenants in common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts to Minors Act).
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21. Governing Law. The Base Indenture, the First Supplemental Indenture and this
Security (and the Guarantee hereon) shall be deemed to be a contract made under the internal laws of the State of New York, and for all purposes shall be construed in accordance with the laws of said State without regard to conflicts of laws
principles (except for Sections 5-1401 and 5-1402 of the New York General Obligations Law) that would require the application of any other law. The Base Indenture, the First Supplemental Indenture and this Security (and the Guarantee hereon) are
subject to the provisions of the TIA that are required to be part of the Base Indenture, the First Supplemental Indenture and this Security (and the Guarantee hereon) and shall, to the extent applicable, be governed by such provisions. The
application of articles 86 to 94-8 of the Luxembourg law on commercial companies dated 10 August 1915, as amended, to the Base Indenture, the First Supplemental Indenture and this Security (and the Guarantee hereon) is excluded.
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ASSIGNMENT FORM
To assign this Security, fill in the form below: (I) or (we) assign and transfer this Security to
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ELECTION FORM
TO BE COMPLETED ONLY IF THE SECURITYHOLDER
ELECTS TO ACCEPT THE CHANGE OF CONTROL OFFER
The undersigned
hereby irrevocably requests and instructs the Company to repurchase the within Security (or the portion thereof specified below), pursuant to its terms, on the Change of Control Payment Date specified in the Change of Control Offer, for the Change
of Control Payment specified in the within Security, to the undersigned,
,
at
(please print or typewrite name, address and telephone number of the undersigned).
For this election to accept the Change of Control Offer to be effective, the undersigned must (A) deliver, to the address of the paying
agent set forth below or at such other place or places of which the Company shall from time to time notify the Securityholder, either (i) the Security with this Election Form duly completed, or (ii) a telegram, telex, facsimile
transmission or a letter from a member of a national securities exchange or the Financial Industry Regulatory Authority, Inc. or a commercial bank or a trust company in the United States setting forth (a) the name of the Securityholder,
(b) the principal amount of the Security, (c) the principal amount of the Security to be repurchased, (d) the certificate number or description of the tenor and terms of the Security, (e) a statement that the option to elect
repurchase is being exercised, and (f) a guarantee stating that the Security to be repurchased, together with this Election Form duly completed, will be received by the paying agent at least five Business Days prior to the Change of
Control Payment Date or (B) otherwise comply with alternative instructions in accordance with the procedures of the depositary. The address of the paying agent is 60 Livingston Avenue, St. Paul MN 55107; Attention: Paying Agent - Unisys.
If less than the entire principal amount of the within Security is to be repurchased, specify the portion thereof (which principal amount must
be $2,000 or an integral multiple of $1,000 in excess thereof; provided that any remaining principal amount shall be at least the minimum authorized denomination thereof) which the Securityholder elects to have repurchased:
$ .
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A-15
Exhibit 4.3
Execution Version
PENTAIR FINANCE S.A.,
as Issuer
AND
PENTAIR PLC,
as Parent and Guarantor
AND
PENTAIR INVESTMENTS SWITZERLAND GMBH,
as Guarantor
AND
U.S. BANK NATIONAL ASSOCIATION,
as Trustee
SECOND SUPPLEMENTAL
INDENTURE
Dated as of September 16, 2015
$400,000,000 of 3.625% Senior Notes due 2020
THIS SECOND SUPPLEMENTAL INDENTURE is dated as of September 16, 2015, among PENTAIR FINANCE
S.A., a Luxembourg public limited liability company (société anonyme) with a registered office at 26, boulevard Royal, L-2449 Luxembourg, Luxembourg and registered with the Luxembourg Trade and Companies Register under
number B 166305, as issuer (the Company), each of PENTAIR PLC, an Irish public limited company (Parent), and PENTAIR INVESTMENTS SWITZERLAND GMBH, a Switzerland limited liability company, as guarantors (each
individually, a Guarantor and collectively, the Guarantors), and U.S. BANK NATIONAL ASSOCIATION, a national banking association, as trustee (the Trustee).
RECITALS
A. The Company, the
Guarantors and the Trustee have heretofore executed and delivered an Indenture, dated as of September 16, 2015 (the Base Indenture), to provide for the issuance by the Company from time to time of unsubordinated debt
securities evidencing its unsecured indebtedness and the guarantee of such securities by the Guarantors to the extent described therein and in this Second Supplemental Indenture.
B. Pursuant to resolutions of the Board of Directors, the Company has authorized the issuance of $400,000,000 principal amount of 3.625%
Senior Notes due 2020 (the Offered Securities).
C. The entry into this Second Supplemental Indenture by the parties
hereto is in all respects authorized by the provisions of the Base Indenture.
D. The Company and the Guarantors desire to enter into this
Second Supplemental Indenture pursuant to Section 9.01 of the Base Indenture to establish the terms of the Offered Securities in accordance with Section 2.01 of the Base Indenture and to establish the form of the Offered Securities in
accordance with Section 2.02 of the Base Indenture.
E. All things necessary to make this Second Supplemental Indenture a legal,
valid and binding indenture and agreement according to its terms have been done.
NOW, THEREFORE, for and in consideration of the
foregoing premises, the Company, the Guarantors and the Trustee mutually covenant and agree for the equal and proportionate benefit of the respective Holders from time to time of the Offered Securities as follows:
ARTICLE I
Section 1.1 Terms of Offered
Securities.
The following terms relate to the Offered Securities:
(1) The Offered Securities constitute a series of securities having the title 3.625% Senior Notes due 2020.
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Second Supplemental Indenture
(2) The initial aggregate principal amount of the Offered Securities that may be authenticated
and delivered under the Base Indenture (except for Offered Securities authenticated and delivered upon registration of transfer of, or in exchange for, or in lieu of, other Offered Securities pursuant to Section 2.05, 2.06, 2.07, 2.11, or 3.03
of the Base Indenture) is $400,000,000.
(3) The entire Outstanding principal of the Offered Securities shall be payable on
September 15, 2020.
(4) The rate at which the Offered Securities shall bear interest shall be 3.625% per year, as set forth in
Section 1 of the form of Offered Security attached hereto as Exhibit A and subject to adjustment as set forth in Section 2 of the form of Offered Security attached hereto as Exhibit A. The date from which interest shall accrue on the
Offered Securities shall be September 16, 2015 or the most recent Interest Payment Date to which interest has been paid or provided for. The Interest Payment Dates for the Offered Securities shall be March 15 and September 15 of each
year, beginning on March 15, 2016. Interest shall be payable on each Interest Payment Date to the Holders of record at the close of business on the March 1 and September 1 prior to each Interest Payment Date (a regular record
date). The basis upon which interest shall be calculated shall be that of a 360-day year consisting of twelve 30-day months.
(5) The Offered Securities shall be issuable in whole in the registered form of one or more Global Securities, and the Depositary for such
Global Securities shall be The Depository Trust Company, New York, New York. The Offered Securities shall be substantially in the form attached hereto as Exhibit A, the terms of which are incorporated by reference in this Second Supplemental
Indenture. The Offered Securities shall be issuable in denominations of $2,000 or any integral multiple of $1,000 in excess thereof.
(6)
The Offered Securities shall be subject to redemption at the Companys option on any Redemption Date as set forth in Section 6 of the form of Offered Security attached hereto as Exhibit A.
(7) Except as provided in this Second Supplemental Indenture, the Offered Securities shall not be subject to redemption, repurchase or
repayment at the option of any Holder thereof, upon the occurrence of any particular circumstances or otherwise. The Offered Securities shall not have the benefit of any sinking fund. For the avoidance of doubt, the Company, the Guarantors and their
respective Affiliates may purchase Offered Securities from the Holders thereof from time to time, either in the open market at prevailing prices or in private transactions at negotiated prices. Any Offered Securities purchased by the Company, the
Guarantors or any of their respective Affiliates may, at the purchasers discretion, be held, resold or canceled.
(8) Except as
provided in this Second Supplemental Indenture, the Holders of the Offered Securities shall have no special rights in addition to those provided in the Base Indenture upon the occurrence of any particular events.
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Second Supplemental Indenture
(9) The Offered Securities shall be general unsecured and unsubordinated obligations of the
Company and shall be ranked equally among themselves.
(10) The Offered Securities are not convertible into shares of common stock or
other securities of the Company or the Guarantors.
(11) In addition to the provisions of the Base Indenture referred to in
Section 11.03(b) thereof, the covenants described in Sections 1.3(1), 1.3(2) and 1.3(3) of this Second Supplemental Indenture shall be subject to the Companys covenant defeasance right set forth in Section 11.03 of the Base
Indenture. In addition, following any such covenant defeasance, the Events of Default set forth in Sections 1.5(1), 1.5(3) and 1.5(4) of this Second Supplemental Indenture shall cease to apply with respect to the Offered Securities.
Section 1.2 Additional Defined Terms.
As used in this Second Supplemental Indenture, the following defined terms shall have the following meanings with respect to the Offered
Securities only:
Attributable Debt, in connection with a Sale and Lease-Back Transaction, as of any particular time,
means the aggregate of present values (discounted at a rate that, at the inception of the lease, represents the effective interest rate that the lessee would have incurred to borrow over a similar term the funds necessary to purchase the leased
assets) of the obligations of the Company, a Guarantor or any Restricted Subsidiary for net rental payments during the remaining term of the applicable lease, including any period for which such lease has been extended or, at the option of the
lessor, may be extended. The term net rental payments under any lease of any period shall mean the sum of the rental and other payments required to be paid in such period by the lessee thereunder, not including any amounts
required to be paid by such lessee, whether or not designated as rental or additional rental, on account of maintenance and repairs, reconstruction, insurance, taxes, assessments, water rates or similar charges required to be paid by such lessee
thereunder or any amounts required to be paid by such lessee thereunder contingent upon the amount of sales, maintenance and repairs, reconstruction, insurance, taxes, assessments, water rates or similar charges.
Change of Control means the occurrence on or after the Issue Date of any of the following: (1) the direct or indirect
sale, lease, transfer, conveyance or other disposition (other than by way of merger or consolidation), in one or more series of related transactions, of all or substantially all of the assets of Parent and its Subsidiaries, taken as a whole, to any
person other than Parent or a direct or indirect wholly-owned Subsidiary of Parent; (2) the consummation of any transaction (including, without limitation, any merger or consolidation) the result of which is that any person becomes the
beneficial owner (as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of more than 50% of Parents outstanding Voting Stock or other Voting Stock into which Parents Voting Stock is
reclassified, consolidated, exchanged or changed, measured by voting power rather than number of shares; (3) Parent consolidates with, or merges with or into, any person, or any person consolidates with, or merges with or into, Parent, in any
such event pursuant to a transaction in which any of Parents outstanding Voting Stock or the Voting Stock of such other person is converted into or exchanged for cash,
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Second Supplemental Indenture
securities or other property, other than any such transaction where the shares of Parents Voting Stock outstanding immediately prior to such transaction constitute, or are converted into or
exchanged for, at least a majority of the Voting Stock of the surviving person or any direct or indirect parent company of the surviving person immediately after giving effect to such transaction; or (4) the approval by the holders of
Parents Voting Stock of a plan for Parents liquidation or dissolution. Notwithstanding the foregoing, a transaction shall not be deemed to involve a Change of Control under clause (1), (2) or (4) above if: (i) Parent
becomes a direct or indirect wholly-owned Subsidiary of a holding company or a holding company becomes the successor to Parent under Section 10.2 of the Base Indenture pursuant to a transaction that is permitted under Section 10.1 of the
Base Indenture and (ii) the direct or indirect holders of the Voting Stock of such holding company immediately following that transaction (or a series of related transactions) are the same or substantially the same (and hold in the same or
substantially the same proportions) as the holders of Parents Voting Stock immediately prior to that transaction. The term person, as used in this definition, means any Person and any two or more Persons as provided in
Section 13(d)(3) of the Exchange Act.
Change of Control Triggering Event means the occurrence of both a Change of
Control and a Rating Event; provided, however, that a Change of Control Triggering Event otherwise arising by virtue of a particular reduction in rating shall not be deemed to have occurred in respect of a Change of Control if the Rating Agency or
Rating Agencies making the reduction in rating to which this definition would otherwise apply do not announce or publicly confirm or inform the Trustee in writing at its request that the reduction was the result, in whole or in part, of any event or
circumstance comprised of or arising as a result of, or in respect of, the applicable Change of Control (whether or not the applicable Change of Control shall have occurred at the time of the purported Change of Control Triggering Event). Unless at
least two of the three Rating Agencies are providing a rating for the Offered Securities at the commencement of any period referred to in the definition of Rating Event, a Rating Event shall be deemed to have occurred during such period.
Notwithstanding the foregoing, no Change of Control Triggering Event shall be deemed to have occurred in connection with any particular Change of Control unless and until such Change of Control has actually been consummated.
Consolidated Net Tangible Assets at any date means Consolidated Net Worth less all Intangible Assets appearing on the most
recently prepared consolidated balance sheet of Parent and its Subsidiaries as of the end of a fiscal quarter of Parent and its Subsidiaries, prepared in accordance with United States generally accepted accounting principles as in effect on the date
of the consolidated balance sheet.
Consolidated Net Worth at any date means total assets less total liabilities, in
each case appearing on the most recently prepared consolidated balance sheet of Parent and its Subsidiaries as of the end of a fiscal quarter of Parent and its Subsidiaries, prepared in accordance with United States generally accepted accounting
principles as in effect on the date of the consolidated balance sheet.
Consolidated Total Assets at any date means the
total assets appearing on the most recently prepared consolidated balance sheet of Parent and its Subsidiaries as of the end of a fiscal quarter of Parent and its Subsidiaries, prepared in accordance with United States generally accepted accounting
principles as in effect on the date of the consolidated balance sheet.
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Second Supplemental Indenture
ERICO means ERICO Global Company, an Ohio corporation.
ERICO Acquisition means the acquisition of all of the outstanding shares of ERICO by Buyer (as defined in the definition of
ERICO Merger Agreement) pursuant to the ERICO Merger Agreement.
ERICO Merger Agreement means the Agreement and Plan of
Merger dated August 15, 2015, among Parent, Pentair Lionel Acquisition Co., a Delaware corporation and wholly-owned subsidiary of Parent (Buyer), Pentair Lionel Merger Sub, Inc., an Ohio corporation and a wholly-owned
subsidiary of Parent and Buyer, and ERICO, as the same may be amended, restated, supplemented, replaced or otherwise modified from time to time.
Fitch means Fitch Inc., and its successors.
Funded Indebtedness means any Indebtedness maturing by its terms more than one year from the date of the determination
thereof, including any Indebtedness renewable or extendible at the option of the obligor to a date later than one year from the date of the determination thereof.
Indebtedness means, without duplication, the principal amount (such amount being the face amount or, with respect to
original issue discount bonds or zero coupon notes, bonds or debentures or similar securities, determined based on the accreted amount as of the date of the most recently prepared consolidated balance sheet of Parent and its Subsidiaries as of the
end of a fiscal quarter of Parent prepared in accordance with United States generally accepted accounting principles as in effect on the date of such consolidated balance sheet) of (i) all obligations for borrowed money, (ii) all
obligations evidenced by debentures, notes or other similar instruments, (iii) all obligations in respect of letters of credit or bankers acceptances or similar instruments or reimbursement obligations with respect thereto (such instruments to
constitute Indebtedness only to the extent that the outstanding reimbursement obligations in respect thereof are collateralized by cash or cash equivalents reflected as assets on a balance sheet prepared in accordance with United States generally
accepted accounting principles), (iv) all obligations as lessee to the extent capitalized in accordance with United States generally accepted accounting principles in effect on the date of this Second Supplemental Indenture and (v) all
Indebtedness of others consolidated in such balance sheet that is guaranteed by the Company, a Guarantor or any of their respective Subsidiaries or for which the Company, a Guarantor or any of their respective Subsidiaries is legally responsible or
liable (whether by agreement to purchase indebtedness of, or to supply funds or to invest in, others).
Intangible
Assets means the amount, if any, stated under the heading Goodwill and Other Intangible assets, net or under any other heading of intangible assets separately listed, in each case on the face of the most recently prepared
consolidated balance sheet of Parent and its subsidiaries as of the end of a fiscal quarter of Parent, prepared in accordance with United States generally accepted accounting principles as in effect on the date of the consolidated balance sheet.
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Second Supplemental Indenture
Investment Grade Rating means a rating equal to or higher than BBB- (or the
equivalent) by Fitch, Baa3 (or the equivalent) by Moodys and BBB- (or the equivalent) by S&P, and the equivalent investment grade credit rating from any replacement rating agency or rating agencies selected by the Company.
Issue Date means the date on which the Offered Securities are originally issued.
Lien means a mortgage, pledge, security interest, lien or similar encumbrance.
Moodys means Moodys Investors Service, Inc., and its successors.
Non-Recourse Indebtedness means Indebtedness upon the enforcement of which recourse may be had by the holder(s) thereof
only to identified assets of a Guarantor or the Company or any Subsidiary of a Guarantor or the Company and not to a Guarantor or the Company or any Subsidiary of a Guarantor or the Company personally (subject to, for the avoidance of doubt,
customary exceptions contained in non-recourse financings to the non-recourse nature of the obligations thereunder).
Principal
Property means any manufacturing, processing or assembly plant, warehouse or distribution facility, office building or parcel of real property of Parent or any of its Subsidiaries that is located in the United States of America, Canada or
the Commonwealth of Puerto Rico and (A) is owned by Parent or any Subsidiary of Parent on the Issue Date, (B) the initial construction of which has been completed after the date hereof, or (C) is acquired after the date hereof, in
each case, other than any such plants, facilities, warehouses, office buildings, parcels or portions thereof, that (i) in the opinion of the Board of Directors of Parent, are not collectively of material importance to the total business
conducted by Parent and its Subsidiaries as an entirety, or (ii) has a net book value (excluding any capitalized interest expense), on the Issue Date in the case of clause (A) of this definition, on the date of completion of the initial
construction in the case of clause (B) of this definition or on the date of acquisition in the case of clause (C) of this definition, of less than 1.0% of Consolidated Net Tangible Assets on the consolidated balance sheet of Parent as of
the applicable date.
Rating Agencies means (i) each of Fitch, Moodys and S&P, and (ii) if any of
Fitch, Moodys or S&P ceases to rate the Offered Securities or fails to make a rating of the Offered Securities publicly available for reasons outside of the Companys control, a nationally recognized statistical rating
organization within the meaning of Rule 15c3-1(c)(2)(vi)(F) under the Exchange Act, selected by the Company (as certified by a resolution of the Companys Board of Directors) as a replacement agency for Fitch, Moodys or S&P, or
all of them, as the case may be.
Rating Event means the rating on the Offered Securities is lowered by at least two of
the three Rating Agencies and such Offered Securities are rated below an Investment Grade Rating by at least two of the three Rating Agencies on any day during the period (which period
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Second Supplemental Indenture
shall be extended so long as the rating of such Offered Securities is under publicly announced consideration for a possible downgrade by any of the Rating Agencies) commencing on the date of
Parents first public notice of the occurrence of a Change of Control or Parents intention to effect a Change of Control and ending 60 days following consummation or abandonment of such Change of Control.
Restricted Subsidiary means any Subsidiary of Parent that owns or leases a Principal Property.
Sale and Lease-Back Transaction means an arrangement with any Person providing for the leasing by Parent or a Restricted
Subsidiary of any Principal Property whereby such Principal Property has been owned and in full operation for more than 180 days and has been or is to be sold or transferred by Parent or a Restricted Subsidiary to such Person other than a Guarantor,
the Company or any of their respective Subsidiaries; provided, however, that the foregoing shall not apply to any such arrangement involving a lease for a term, including renewal rights, for not more than three years.
S&P means Standard & Poors Ratings Services, a division of The McGraw-Hill Companies, Inc., and its
successors.
Voting Stock means, with respect to any specified Person as of any date, the capital stock of
such Person that is at the time entitled to vote generally in the election of the board of directors of such Person.
Section 1.3 Additional
Covenants.
The following additional covenants shall apply with respect to the Offered Securities so long as any of the Offered
Securities remain Outstanding (but subject to defeasance, as provided in the Base Indenture and Section 1.1 of this Second Supplemental Indenture):
(1) Limitation on Liens.
None
of the Company or the Guarantors shall, and none of them shall permit any Restricted Subsidiary to, issue, assume or guarantee any Indebtedness that is secured by a Lien upon any property that at the time of such issuance, assumption or guarantee
constitutes a Principal Property, or any shares of stock of or Indebtedness issued by any Restricted Subsidiary, whether now owned or hereafter acquired, without effectively providing that, for so long as such Lien shall continue in existence with
respect to such secured Indebtedness, the Offered Securities (together with, if the Company shall so determine, any other Indebtedness of the Company ranking equally with the Offered Securities, it being understood that for purposes hereof,
Indebtedness which is secured by a Lien and Indebtedness which is not so secured shall not, solely by reason of such Lien, be deemed to be of different ranking) shall be equally and ratably secured by a Lien ranking ratably with or equal to (or at
the Companys option prior to) such secured Indebtedness; provided, however, that the foregoing covenant shall not apply to:
(a) Liens existing on the Issue Date;
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Second Supplemental Indenture
(b) Liens on the stock, assets or Indebtedness of a Person existing at the time
such Person becomes a Restricted Subsidiary, unless created in contemplation of such Person becoming a Restricted Subsidiary;
(c) Liens on any assets or Indebtedness of a Person existing at the time such Person is merged with or into or consolidated
with or acquired by the Company, a Guarantor or a Restricted Subsidiary or at the time of a purchase, lease or other acquisition of the assets of a corporation or firm as an entirety or substantially as an entirety by the Company, a Guarantor or any
Restricted Subsidiary;
(d) Liens on any Principal Property existing at the time of acquisition thereof by the Company, a
Guarantor or any Restricted Subsidiary, or Liens to secure the payment of the purchase price of such Principal Property by the Company, a Guarantor or any Restricted Subsidiary, or to secure any Indebtedness incurred, assumed or guaranteed by the
Company, a Guarantor or a Restricted Subsidiary for the purpose of financing all or any part of the purchase price of such Principal Property or improvements or construction thereon, which Indebtedness is incurred, assumed or guaranteed prior to, at
the time of or within 180 days after such acquisition, or in the case of real property, completion of such improvement or construction or commencement of full operation of such property, whichever is later; provided, however, that in the case
of any such acquisition, construction or improvement, the Lien shall not apply to any Principal Property theretofore owned by the Company, a Guarantor or a Restricted Subsidiary, other than the Principal Property so acquired, constructed or
improved, and accessions thereto and improvements and replacements thereof and the proceeds of the foregoing;
(e) Liens
securing Indebtedness owing by any Restricted Subsidiary to the Company, a Guarantor or a Subsidiary thereof or by the Company to a Guarantor;
(f) Liens in favor of the United States or any State thereof, or any department, agency or instrumentality or political
subdivision of the United States or any State thereof, or in favor of any other country or any political subdivision thereof, to secure partial, progress, advance or other payments pursuant to any contract, statute, rule or regulation or to secure
any Indebtedness incurred or guaranteed for the purpose of financing all or any part of the purchase price (or, in the case of real property, the cost of construction or improvement) of the Principal Property subject to such Liens (including Liens
incurred in connection with pollution control, industrial revenue or similar financings);
(g) pledges, Liens or deposits
under workers compensation or similar legislation, and Liens thereunder that are not currently dischargeable, or in connection with bids, tenders, contracts (other than for the payment of money) or leases to which the Company, a Guarantor or
any Restricted Subsidiary is a party, or to secure the public or statutory obligations of the Company, a Guarantor or any Restricted Subsidiary, or in connection with obtaining or maintaining self-insurance, or to obtain the benefits of any law,
regulation or arrangement pertaining to unemployment insurance, old age pensions, social security or similar matters, or to secure surety, performance, appeal or customs
8
Second Supplemental Indenture
bonds to which the Company, a Guarantor or any Restricted Subsidiary is a party, or in litigation or other proceedings in connection with the matters heretofore referred to in this clause, such
as interpleader proceedings, and other similar pledges, Liens or deposits made or incurred in the ordinary course of business;
(h) Liens created by or resulting from any litigation or other proceeding that is being contested in good faith by appropriate
proceedings, including Liens arising out of judgments or awards against the Company, a Guarantor or any Restricted Subsidiary with respect to which the Company, a Guarantor or such Restricted Subsidiary in good faith is prosecuting an appeal or
proceedings for review or for which the time to make an appeal has not yet expired; or final unappealable judgment Liens which are satisfied within 15 days of the date of judgment; or Liens incurred by the Company, a Guarantor or any Restricted
Subsidiary for the purpose of obtaining a stay or discharge in the course of any litigation or other proceeding to which the Company, a Guarantor or such Restricted Subsidiary is a party, provided that (x) in the case of Liens arising out of
judgments or awards, the enforcement of such Liens is effectively stayed and (y) the aggregate amount secured by all such Liens does not at any time exceed the greater of (i) $25,000,000 or (ii) 0.5% of Consolidated Total Assets;
(i) Liens for taxes or assessments or governmental charges or levies not yet due or delinquent; or that can thereafter be paid
without penalty, or that are being contested in good faith by appropriate proceedings; landlords Liens on property held under lease; and any other Liens or charges incidental to the conduct of the business of the Company, a Guarantor or any
Restricted Subsidiary, or the ownership of their respective assets, that were not incurred in connection with the borrowing of money or the obtaining of advances or credit and that, in the opinion of the Board of Directors of a Guarantor, do not
materially impair the use of such assets in the operation of the business of the Company, a Guarantor or such Restricted Subsidiary or the value of such Principal Property for the purposes of such business;
(j) Liens to secure the Companys, a Guarantors or any Restricted Subsidiarys obligations under agreements
with respect to spot, forward, future and option transactions, entered into in the ordinary course of business;
(k) Liens
not permitted by the foregoing clauses (a) to (j), inclusive, if at the time of, and upon giving effect to, the creation or assumption of any such Lien, the aggregate amount of all outstanding Indebtedness of the Company, the Guarantors and all
Restricted Subsidiaries, without duplication, secured by all such Liens not so permitted by the foregoing clauses (a) through (j), inclusive, together with the Attributable Debt in respect of Sale and Lease-Back Transactions permitted by
paragraph (a) under subsection (2) below, do not exceed an amount equal to 15% of Consolidated Net Tangible Assets; and
(l) any extension, renewal or replacement (or successive extensions, renewals or replacements) in whole or in part, of any Lien
referred to in the foregoing clauses (a) to (k), inclusive; provided, however, that the principal amount of Indebtedness secured
9
Second Supplemental Indenture
thereby (except to the extent otherwise excepted under clauses (a) through (k)) shall not exceed the principal amount of Indebtedness so secured at the time of such extension, renewal or
replacement, and that such extension, renewal or replacement shall be limited to all or a part of the assets, or any replacements therefor and products and proceeds thereof, that secured the Lien so extended, renewed or replaced, plus improvements
and construction on real property.
(2) Limitation on Sale and Lease-Back Transactions.
None of the Company or the Guarantors shall, and none of them shall permit any Restricted Subsidiary to, enter into any Sale and Lease-Back
Transaction (other than with the Company, a Guarantor and/or one or more Subsidiaries of a Guarantor) unless:
(a) the
Company, such Guarantor or such Restricted Subsidiary, at the time of entering into such Sale and Lease-Back Transaction, would be entitled to incur Indebtedness secured by a Lien on the Principal Property to be leased in an amount at least equal to
the Attributable Debt in respect of such Sale and Lease-Back Transaction, without equally and ratably securing the Offered Securities pursuant to Section 1.3(1) of this Second Supplemental Indenture; or
(b) the direct or indirect proceeds of the sale of the Principal Property to be leased are at least equal to the fair value of
such Principal Property, as determined by Parents Board of Directors, and an amount equal to the net proceeds from the sale of the property or assets so leased is applied, within 180 days of the effective date of any such Sale and Lease-Back
Transaction, to the purchase or acquisition, or, in the case of real property, commencement of the construction of property or assets or to the retirement (other than at maturity or pursuant to a mandatory sinking fund or mandatory redemption
provision) of Offered Securities, or of Funded Indebtedness of Parent or a consolidated Subsidiary ranking on a parity with or senior to the Offered Securities; provided that there shall be credited to the amount of net proceeds required to be
applied pursuant to this clause (b) an amount equal to the sum of (i) the principal amount of Offered Securities delivered within 180 days of the effective date of such Sale and Lease-Back Transaction to the Trustee for retirement and
cancellation and (ii) the principal amount of other Funded Indebtedness voluntarily retired by Parent or a consolidated Subsidiary ranking on a parity with or senior to the Offered Securities within such 180-day period, excluding retirements of
Offered Securities and other Funded Indebtedness as a result of conversions or pursuant to mandatory sinking fund or mandatory prepayment provisions.
(3) Change of Control Triggering Event.
(a) If a Change of Control Triggering Event occurs, unless the Company has exercised its option to redeem the Offered
Securities, it shall be required to make an offer (a Change of Control Offer) to each Holder of the Offered Securities to repurchase, at the Holders election, all or any part (equal to $2,000 or an integral multiple of
$1,000 in excess thereof) of that Holders Offered Securities on the terms set forth in this Second Supplemental Indenture. In a Change of Control Offer, the Company shall be required to
10
Second Supplemental Indenture
offer payment in cash equal to 101% of the aggregate principal amount of Offered Securities repurchased, plus accrued and unpaid interest, if any, on the Offered Securities repurchased to, but
excluding, the date of repurchase (a Change of Control Payment). Within 30 days following any Change of Control Triggering Event or, at the Companys option, prior to any Change of Control, but after public announcement of
the transaction that constitutes or may constitute the Change of Control, a notice shall be sent to the Trustee and to the Holders of the Offered Securities describing in reasonable detail the transaction that constitutes or may constitute the
Change of Control Triggering Event and offering to repurchase such Offered Securities on the date specified in the notice, which date shall, except as described in the immediately following sentence and other than as required by law, be no earlier
than 30 days and no later than 60 days from the date such notice is sent (a Change of Control Payment Date). The notice shall, if sent prior to the date of consummation of the Change of Control, state that the offer to purchase is
conditioned on the Change of Control Triggering Event occurring on or prior to the Change of Control Payment Date.
(b) In
order to accept the Change of Control Offer, the Holder must deliver (or otherwise comply with alternative instructions in accordance with the procedures of the Depositary) to the paying agent, at least five Business Days prior to the Change of
Control Payment Date, its Offered Security together with the form entitled Election Form (which form is contained in the form of note attached hereto as Exhibit A) duly completed, or a telegram, telex, facsimile transmission or a letter
from a member of a national securities exchange, or the Financial Industry Regulatory Authority, Inc. or a commercial bank or trust company in the United States setting forth:
(i) the name of the Holder of such Offered Security;
(ii) the principal amount of such Offered Security;
(iii) the principal amount of such Offered Security to be repurchased;
(iv) the certificate number or a description of the tenor and terms of such Offered Security;
(v) a statement that the Holder is accepting the Change of Control Offer; and
(vi) a guarantee that such Offered Security, together with the form entitled Election Form duly completed, shall be
received by the paying agent at least five Business Days prior to the Change of Control Payment Date.
(c) Any exercise by
a Holder of its election to accept the Change of Control Offer shall be irrevocable. The Change of Control Offer may be accepted for less than the entire principal amount of an Offered Security, but in that event the principal amount of such Offered
Security remaining Outstanding after repurchase must be equal to $2,000 or an integral multiple of $1,000 in excess thereof.
11
Second Supplemental Indenture
(d) On the Change of Control Payment Date, the Company shall, to the extent
lawful:
(i) accept for payment all Offered Securities or portions of such Offered Securities properly tendered pursuant to
the Change of Control Offer;
(ii) deposit with the paying agent an amount equal to the Change of Control Payment in
respect of all Offered Securities or portions of Offered Securities properly tendered; and
(iii) deliver or cause to be
delivered to the Trustee the Offered Securities properly accepted together with an Officers Certificate stating the aggregate principal amount of Offered Securities or portions of Offered Securities being repurchased.
(e) The Company shall not be required to make a Change of Control Offer upon the occurrence of a Change of Control Triggering
Event if a third party makes such an offer in the manner, at the times and otherwise in compliance with the requirements for an offer made by the Company and the third party purchases all Offered Securities properly tendered and not withdrawn under
its offer. In addition, the Company shall not repurchase any Offered Securities if there has occurred and is continuing on the Change of Control Payment Date an Event of Default under the Indenture, other than a default in the payment of the Change
of Control Payment upon a Change of Control Triggering Event.
(f) Notwithstanding the foregoing, the Company and the
Guarantors shall comply with the requirements of Rule 14e-1 under the Securities Exchange Act of 1934, as amended (the Exchange Act), and any other securities laws and regulations thereunder to the extent those laws and
regulations are applicable in connection with the repurchase of the Offered Securities as a result of a Change of Control Triggering Event. To the extent that the provisions of any such securities laws or regulations conflict with this
Section 1.3(3), none of the Company or the Guarantors shall be deemed to have breached its obligations under this Section 1.3(3) by virtue of its compliance with such securities laws or regulations.
Section 1.4 Special Mandatory Redemption.
(1) In the event that either (i) Parent does not consummate the ERICO Acquisition on or prior to December 31, 2015, or (ii) the
ERICO Merger Agreement is terminated any time prior to such date (without replacement thereof) other than as a result of consummating the ERICO Acquisition, the Company shall redeem all of the Outstanding Offered Securities in whole and not in part
(a Special Mandatory Redemption) on the Special Mandatory Redemption Date at a redemption price equal to 101% of the principal amount of the Offered Securities, plus accrued and unpaid interest, if any, to, but excluding, the
Special Mandatory Redemption Date. The Special Mandatory Redemption Date means the earlier to occur of (i) February 1, 2016, if the ERICO Acquisition has not been consummated on or prior to December 31, 2015, or
(ii) the 30th day (or if such day is not a Business Day, the first Business Day thereafter) following
12
Second Supplemental Indenture
the termination of the ERICO Merger Agreement (without replacement thereof) other than as a result of consummating the ERICO Acquisition. Notwithstanding the foregoing, installments of interest
on the Offered Securities that are due and payable on Interest Payment Dates falling on or prior to the Special Mandatory Redemption Date shall be payable on such Interest Payment Dates to the registered Holders as of the close of business on the
relevant regular record dates, as provided in the Base Indenture and this Second Supplemental Indenture.
(2) The Company shall cause the
notice of a Special Mandatory Redemption to be sent, with a copy to the Trustee, within five Business Days after the occurrence of the event triggering the obligation to effectuate the Special Mandatory Redemption to each Holder at its registered
address. On or before the Special Mandatory Redemption Date, the Company shall deposit with the Trustee or a paying agent funds sufficient to pay the special mandatory redemption price of the Offered Securities to be redeemed on the Special
Mandatory Redemption Date. If funds sufficient to pay the special mandatory redemption price of the Offered Securities to be redeemed on the Special Mandatory Redemption Date are deposited with the Trustee or a paying agent on or before such Special
Mandatory Redemption Date, and any applicable conditions set forth in the Base Indenture are satisfied, interest shall cease to accrue on the Offered Securities on and after such Special Mandatory Redemption Date.
Section 1.5 Additional Events of Default.
The following additional events shall be established and shall each constitute an Event of Default under Section 6.01(a) of
the Base Indenture with respect to the Offered Securities so long as any of the Offered Securities remain Outstanding:
(1) default in the
performance or breach by the Company or a Guarantor of the covenant described under Section 10.01 of the Base Indenture;
(2) failure
by the Company to effect a Special Mandatory Redemption, if required, on the Special Mandatory Redemption Date;
(3) failure by the
Company for 60 days from receipt of written notice by the Trustee or the Holders of at least 25% of the principal amount of the Offered Securities Outstanding to comply with the provisions under Section 1.3(3) of this Second Supplemental
Indenture; and
(4) an event of default shall happen and be continuing with respect to any Indebtedness (other than Non-Recourse
Indebtedness) of the Company, a Guarantor or any Restricted Subsidiary under any indenture or other instrument evidencing or under which the Company, a Guarantor or any Restricted Subsidiary shall have a principal amount outstanding (such amount
with respect to original issue discount bonds or zero coupon notes, bonds or debentures or similar securities based on the accreted amount determined in accordance with United States generally accepted accounting principles and as of the date of the
most recently prepared consolidated balance sheet of the Company, a Guarantor or any Restricted Subsidiary, as the case may be) in excess of $100,000,000, and such event of default shall involve the failure to pay the principal of such Indebtedness
on the final maturity date thereof after the expiration of any applicable grace period with respect thereto, or such Indebtedness shall have been
13
Second Supplemental Indenture
accelerated so that the same shall have become due and payable prior to the date on which the same would otherwise have become due and payable, and such acceleration shall not be rescinded or
annulled within 30 days after notice thereof shall have been given to the Company by the Trustee, or to the Company and the Trustee by the Holders of at least 25% in aggregate principal amount of the Outstanding Offered Securities; provided,
however, that:
(a) if such event of default under such indenture or instrument shall be remedied or cured by the Company
or the applicable Guarantor or waived by the requisite holders of such Indebtedness, then the Event of Default hereunder by reason thereof shall be deemed likewise to have been thereupon remedied, cured or waived without further action upon the part
of either the Trustee or any of the Holders; and
(b) subject to the provisions of Sections 7.01 and 7.02 of the Base
Indenture, the Trustee shall not be charged with actual knowledge of any such event of default unless written notice thereof shall have been given to a Responsible Officer of the Trustee by the Company or a Guarantor, as the case may be, by the
holder or an agent of the holder of any such Indebtedness, by the trustee then acting under any indenture or other instrument under which such default shall have occurred, or by the Holders of not less than 25% in the aggregate principal amount of
Outstanding Offered Securities.
ARTICLE II
MISCELLANEOUS
Section 2.1 Definitions.
Capitalized terms used but not defined in this Second Supplemental Indenture shall have the meanings ascribed thereto in the form of
Offered Security attached hereto as Exhibit A or in the Base Indenture.
Section 2.2 Confirmation of Indenture.
The Base Indenture, as supplemented and amended by this Second Supplemental Indenture, is in all respects ratified and confirmed, and the Base
Indenture, this Second Supplemental Indenture and all indentures supplemental thereto shall be read, taken and construed as one and the same instrument.
Section 2.3 Concerning the Trustee.
In carrying out the Trustees responsibilities hereunder, the Trustee shall have all of the rights, protections and immunities which it
possesses under the Indenture. The recitals contained in this Second Supplemental Indenture and in the Offered Securities, except the Trustees certificate of authentication, shall be taken as the statements of the Company, and the Trustee
assumes no responsibility for their correctness. The Trustee shall not be responsible for and makes no representations as to (i) the validity or sufficiency of this Second Supplemental Indenture or of the Offered Securities, (ii) the
proper authorization hereof by each Guarantor and
14
Second Supplemental Indenture
the Company by action or otherwise, (iii) the due execution hereof by each Guarantor and the Company or (iv) the consequences of any amendment herein provided for. The Trustee shall not
be accountable for the use or application by the Company of the Offered Securities or the proceeds thereof.
Section 2.4 Governing Law.
This Second Supplemental Indenture and the Offered Securities shall be deemed to be a contract made under the internal laws of the State of New
York, and for all purposes shall be construed in accordance with the laws of said State without regard to conflicts of law principles (except for Sections 5-1401 and 5-1402 of the New York General Obligations Law) that would require the application
of any other law. This Second Supplemental Indenture is subject to the provisions of the Trust Indenture Act of 1939 that are required to be part of this Second Supplemental Indenture and shall, to the extent applicable, be governed by such
provisions. The application of articles 86 to 94-8 of the Luxembourg law on commercial companies dated 10 August 1915, as amended, to the Indenture and the Offered Securities is excluded.
Section 2.5 Separability.
In case
any one or more of the provisions contained in this Second Supplemental Indenture or in the Offered Securities of any series shall for any reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or
unenforceability shall not affect any other provisions of this Second Supplemental Indenture or of such Offered Securities, but this Second Supplemental Indenture and such Offered Securities shall be construed as if such invalid or illegal or
unenforceable provision had never been contained herein or therein.
Section 2.6 Counterparts.
This Second Supplemental Indenture may be executed in any number of counterparts, each of which shall be an original, but such counterparts
shall together constitute but one and the same instrument. The exchange of copies of this Second Supplemental Indenture and of signature pages by facsimile or PDF transmission shall constitute effective execution and delivery of this Second
Supplemental Indenture as to the parties hereto and may be used in lieu of the original Second Supplemental Indenture for all purposes. Signatures of the parties hereto transmitted by facsimile or PDF shall be deemed to be their original signatures
for all purposes.
Section 2.7 No Benefit.
Nothing in this Second Supplemental Indenture, express or implied, shall give to any Person other than the parties hereto and their successors
or assigns, and the Holders of the Offered Securities, any benefit or legal or equitable rights, remedy or claim under this Second Supplemental Indenture or the Base Indenture.
15
Second Supplemental Indenture
Section 2.8 Amendments and Supplemental Indentures.
This Second Supplemental Indenture and the Offered Securities are subject to the provisions regarding supplemental indentures and amendments
set forth in Article IX of the Base Indenture, as amended by this Second Supplemental Indenture.
Section 2.9 Legal, Valid and Binding Obligation.
The Guarantors and the Company hereby represent and warrant that, assuming the due authorization, execution and delivery of this
Second Supplemental Indenture by the Trustee, this Second Supplemental Indenture is the legal, valid and binding obligation of the Guarantors and the Company enforceable against the Guarantors and the Company in accordance with its terms, subject to
bankruptcy, insolvency, reorganization and other laws of general applicability relating to or affecting the enforcement of creditors rights and to general equity principles.
[Signature Page Follows]
16
Second Supplemental Indenture
IN WITNESS WHEREOF, the parties hereto have caused this Second Supplemental Indenture to be duly
executed as of the day and year first above written.
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PENTAIR FINANCE S.A., |
as Issuer |
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By: |
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/s/ Benjamin Peric |
Name: |
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Benjamin Peric |
Title: |
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Director |
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PENTAIR PLC, as Parent
and Guarantor |
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By: |
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/s/ Christopher R. Oster |
Name: |
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Christopher R. Oster |
Title: |
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Authorized Representative |
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PENTAIR INVESTMENTS SWITZERLAND GMBH,
as Guarantor |
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By: |
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/s/ Henning Wistorf |
Name: |
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Henning Wistorf |
Title: |
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Managing Officer |
17
Second Supplemental Indenture
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U.S. BANK NATIONAL ASSOCIATION, |
as Trustee |
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By: |
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/s/ Rick Prokosch |
Name: |
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Rick Prokosch |
Title: |
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Vice President |
18
Second Supplemental Indenture
EXHIBIT A
FORM OF 3.625% NOTES
[Insert the
Private Placement Legend and/or the Global Security legend, as applicable]
3.625% SENIOR NOTES DUE 2020
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No. [ ] |
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$[ ] |
CUSIP No. 709629 AN9 |
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PENTAIR FINANCE S.A.
Société anonyme
26,
boulevard Royal
L-2449 Luxembourg
R.C.S. B 166305
promises to pay to
[ ] or registered assigns, the principal sum of [ ] Dollars on September 15, 2020.
Interest Payment Dates: March 15 and September 15
Regular Record Dates: March 1 and September 1
Each holder of this Security (as defined below), by accepting the same, agrees to and shall be bound by the provisions hereof and of the
Indenture described herein, and authorizes and directs the Trustee described herein on such holders behalf to be bound by such provisions. Each holder of this Security hereby waives all notice of the acceptance of the provisions contained
herein and in the Indenture and waives reliance by such holder upon said provisions.
This Security shall not be entitled to any benefit
under the Indenture, or be valid or become obligatory for any purpose, until the Certificate of Authentication hereon shall have been signed by or on behalf of the Trustee. The provisions of this Security are continued on the reverse side hereof,
and such continued provisions shall for all purposes have the same effect as though fully set forth at this place.
[Signature Page
Follows]
A-1
IN WITNESS WHEREOF, the Company has caused this instrument to be signed in accordance with Section 2.04 of
the Base Indenture.
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PENTAIR FINANCE S.A. |
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Name: |
Title: |
CERTIFICATE OF AUTHENTICATION
This is one of the Securities of the series designated therein and referred to in the within-mentioned Indenture.
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U.S. BANK NATIONAL ASSOCIATION, |
as Trustee |
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By: |
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Authorized Signatory |
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Dated: |
A-2
GUARANTEE
For value received, each of PENTAIR PLC and PENTAIR INVESTMENTS SWITZERLAND GMBH hereby absolutely, unconditionally and irrevocably guarantees
(i) to the holder of this Security the payment of principal of, premium, if any, and interest and any Additional Amounts, if any, on, the Security upon which this Guarantee is set forth in the amounts and at the time when due and payable
whether by declaration thereof, or otherwise, and interest on the overdue principal and interest, if any, of such Security, if lawful, to the holder of such Security and the Trustee on behalf of the Holders, and (ii) to the Trustee all amounts
owed to the Trustee under the Indenture, in each case in accordance with and subject to the terms and limitations of such Security and Article XV of the Base Indenture. This Guarantee shall not become effective until the Trustee or Authenticating
Agent duly executes the certificate of authentication on this Security. This Guarantee shall be governed by and construed in accordance with the laws of the State of New York, without regard to conflict of law principles thereof.
Dated:
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PENTAIR PLC |
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By: |
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Name: |
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Title: |
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PENTAIR INVESTMENTS SWITZERLAND
GMBH |
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By: |
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Name: |
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Title: |
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A-3
PENTAIR FINANCE S.A.
Société anonyme
26,
boulevard Royal
L-2449 Luxembourg
R.C.S. B 166305
3.625% Senior
Notes due 2020
This security is one of a duly authorized series of debt securities of Pentair Finance S.A., a Luxembourg public
limited liability company (société anonyme) with registered office at 26, boulevard Royal, L-2449 Luxembourg, Luxembourg and registered with the Luxembourg Trade and Companies Register under number B 166305 (the
Company), issued or to be issued in one or more series under and pursuant to an Indenture for the Companys unsubordinated debt securities, dated as of September 16, 2015 (the Base Indenture), duly
executed and delivered by and among the Company, Pentair plc, an Irish public limited company (Parent), Pentair Investments Switzerland GmbH, a Switzerland limited liability company (a Guarantor and, together
with Parent, the Guarantors) and U.S. Bank National Association, a national banking association (the Trustee), as supplemented by the Second Supplemental Indenture, dated as of September 16, 2015 (the
Second Supplemental Indenture), by and among the Company, the Guarantors and the Trustee. The Base Indenture as supplemented and amended by the Second Supplemental Indenture is referred to herein as the
Indenture. By the terms of the Base Indenture, the debt securities issuable thereunder are issuable in series that may vary as to amount, date of maturity, rate of interest and in other respects as provided in the Base Indenture.
This security is one of the series designated on the face hereof (individually, a Security, and collectively, the Securities), and reference is hereby made to the Indenture for a description of the rights,
limitations of rights, obligations, duties and immunities of the Trustee, the Company, the Guarantors and the holders of this Security (the Securityholders). Capitalized terms used herein and not otherwise defined shall have the
meanings given them in the Base Indenture or in the Second Supplemental Indenture, as applicable.
1. Interest. The Company
promises to pay interest on the principal amount of this Security at an annual rate of 3.625% (the Original Interest Rate), subject to adjustment pursuant to Section 2 of this Security. The Company shall pay interest
semi-annually on March 15 and September 15 of each year (each such day, an Interest Payment Date). If any Interest Payment Date, redemption date or maturity date of this Security is not a Business Day, then payment of
interest or principal (and premium, if any) shall be made on the next succeeding Business Day with the same force and effect as if made on the date such payment was due, and no interest shall accrue for the period after such date to the date of such
payment on the next succeeding Business Day. Interest on the Securities shall accrue from the most recent date to which interest has been paid or duly provided for or, if no interest has been paid, from the date of issuance; provided that, if there
is no existing Default in the payment of interest, and if this Security is authenticated between a regular record date referred to on the face hereof and the next succeeding Interest Payment Date, interest shall accrue from such next succeeding
Interest Payment Date; and provided, further, that the first Interest Payment Date shall be March 15, 2016. Interest shall be calculated on the basis of a 360-day year consisting of twelve 30-day months.
A-4
2. Interest Rate Adjustment. The interest rate payable on this Security shall be
subject to adjustment from time to time if either Moodys or S&P (or, if applicable, a nationally recognized statistical rating organization within the meaning of Section 3(a)(62) under the Exchange Act selected by the
Company as a replacement for Moodys or S&P, or both, as the case may be (each, a Substitute Rating Agency)) downgrades (or subsequently upgrades) its rating assigned to the Securities, as set forth in this
Section 2. Each of Moodys, S&P and any Substitute Rating Agency is an Interest Rate Rating Agency, and together they are Interest Rate Rating Agencies.
If the rating of the Securities from one or both of Moodys or S&P (or, if applicable, any Substitute Rating Agency) is decreased to
a rating set forth in either of the tables set forth in this Section 2, the interest rate shall increase from the Original Interest Rate by an amount equal to the sum of the percentages per annum set forth in the following tables opposite those
ratings:
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Moodys Rating* |
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Percentage |
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Ba1 |
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0.25 |
% |
Ba2 |
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0.50 |
% |
Ba3 |
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|
0.75 |
% |
B1 or below |
|
|
1.00 |
% |
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|
S&P Rating* |
|
Percentage |
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BB+ |
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|
0.25 |
% |
BB |
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0.50 |
% |
BB- |
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|
0.75 |
% |
B+ or below |
|
|
1.00 |
% |
* |
Including the equivalent ratings of any Substitute Rating Agency therefor. |
For purposes of
making adjustments to the interest rate payable on this Security, the following rules of interpretation shall apply:
(1)
if at any time less than two Interest Rate Rating Agencies provide a rating on the Securities for reasons not within the Companys control (i) the Company shall use commercially reasonable efforts to obtain a rating on the Securities from
a Substitute Rating Agency for purposes of determining any increase or decrease in the interest rate on this Security pursuant to the tables set forth in this Section 2, (ii) such Substitute Rating Agency shall be substituted for the last
Interest Rate Rating Agency to provide a rating on the Securities but which has since ceased to provide such rating, (iii) the relative ratings scale used by such Substitute Rating Agency to assign ratings to senior unsecured debt shall be
determined in good faith by an independent investment banking institution of national standing appointed by the Company and, for purposes of determining the applicable ratings included in the applicable table with respect to such Substitute Rating
Agency, such ratings shall be deemed to be the equivalent ratings used by Moodys or S&P, as applicable, in such table, and (iv) the interest rate payable on this Security shall
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increase or decrease, as the case may be, such that the interest rate payable equals the Original Interest Rate plus the appropriate percentage, if any, set forth opposite the rating from such
Substitute Rating Agency in the applicable table (taking into account the provisions of clause (iii) in this paragraph (1)) (plus any applicable percentage resulting from a decreased rating by the other Interest Rate Rating Agency);
(2) for so long as only one Interest Rate Rating Agency provides a rating on the Securities, any increase or decrease in the
interest rate payable on this Security necessitated by a reduction or increase in the rating by that Interest Rate Rating Agency shall be twice the applicable percentage set forth in the applicable table set forth in this Section 2;
(3) if both Interest Rate Rating Agencies cease to provide a rating of the Securities for any reason, and no Substitute Rating
Agency has provided a rating on the Securities, the interest rate shall increase to, or remain at, as the case may be, 2.00% per annum above the Original Interest Rate prior to any such adjustment;
(4) if Moodys or S&P ceases to rate the Securities or make a rating of the Securities publicly available for reasons
within the Companys control, the Company shall not be entitled to obtain a rating from a Substitute Rating Agency and the increase or decrease in the interest rate on this Security shall be determined in the manner described in this
Section 2 as if either only one or no Interest Rate Rating Agency provides a rating on the Securities, as the case may be;
(5) each interest rate adjustment required by any decrease or increase in a rating as set forth in this Section 2, whether
occasioned by the action of Moodys or S&P (or, in either case, any Substitute Rating Agency), shall be made independently of (and in addition to) any and all other interest rate adjustments occasioned by the action of the other Interest
Rate Rating Agency;
(6) in no event shall the interest rate on this Security be reduced to below the Original Interest
Rate prior to any such adjustment; and
(7) subject to paragraphs (3) and (4) of this Section 2, no
adjustment in the interest rate on this Security shall be made solely as a result of an Interest Rate Rating Agency ceasing to provide a rating of the Securities.
If at any time the interest rate on this Security has been adjusted upward and either of the Interest Rate Rating Agencies subsequently
increases its rating of the Securities, the interest rate on this Security shall again be adjusted (and decreased, if appropriate) such that the interest rate on this Security equals the Original Interest Rate prior to any such adjustment plus (if
applicable) an amount equal to the sum of the percentages per annum set forth opposite the ratings in the tables set forth in this Section 2 with respect to the ratings assigned to the Securities (or deemed assigned) at that time, all
calculated in accordance with the rules of interpretation set forth in this Section 2. If Moodys or any Substitute Rating Agency subsequently increases its rating on the Securities to Baa3 (or its equivalent if with respect to
any Substitute Rating Agency) or higher and S&P or any Substitute Rating Agency subsequently increases its rating on the Securities to
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BBB- (or its equivalent if with respect to any Substitute Rating Agency) or higher, the interest rate on this Security shall be decreased to the Original Interest Rate prior to any
adjustments made pursuant to this Section 2.
Any increase or decrease in the interest rate shall take effect from the first day of
the interest period during which a rating change occurs requiring an adjustment in the interest rate. If either Interest Rate Rating Agency changes its rating of the Securities more than once during any particular interest period, the last such
change by such Interest Rate Rating Agency to occur shall control in the event of a conflict for purposes of any increase or decrease in the interest rate.
The interest rate shall permanently cease to be subject to any adjustment (notwithstanding any subsequent decrease in the ratings by either
Interest Rate Rating Agency) if the Securities becomes rated Baa1 or higher by Moodys (or its equivalent if with respect to any Substitute Rating Agency) and BBB+ or higher by S&P (or its equivalent if with respect
to any Substitute Rating Agency), in each case with a stable or positive outlook.
If the interest rate payable on this Security is
increased as set forth in this Section 2, the term interest shall be deemed to include any such additional interest unless the context otherwise requires.
3. Method of Payment. The Company shall pay interest on this Security (except defaulted interest), if any, to the persons in whose
name such Security is registered at the close of business on the regular record date referred to on the facing page of this Security for such interest installment. In the event that this Security or a portion hereof is called for redemption and the
Redemption Date is subsequent to a regular record date with respect to any Interest Payment Date and prior to such Interest Payment Date, interest on this Security shall be paid upon presentation and surrender of this Security as provided in the
Indenture. The principal of and the interest on this Security shall be payable in the coin or currency of the United States of America that at the time is legal tender for public and private debt, at the office or agency of the Company maintained
for that purpose in accordance with the Indenture.
4. Paying Agent and Registrar. Initially, U.S. Bank National Association,
the Trustee, shall act as paying agent and Security Registrar. The Company may change or appoint any paying agent or Security Registrar without notice to any Securityholder. The Guarantors, the Company or any of their Subsidiaries may act in any
such capacity.
5. Indenture. The terms of this Security include those stated in the Indenture and those made part of the
Indenture by reference to the Trust Indenture Act of 1939 (the TIA) as in effect on the date the Indenture is qualified. This Security is subject to all such terms, and Securityholders are referred to the Indenture and the TIA for
a statement of such terms. These Securities are unsecured general obligations of the Company and constitute the series designated on the face hereof as the 3.625% Senior Notes due 2020, initially limited to $400,000,000 in aggregate
principal amount.
The Company shall furnish to any Securityholder upon written request and without charge a copy of the Base Indenture
and the Second Supplemental Indenture. Requests may be made to: Pentair Finance S.A., 26, boulevard Royal, L-2449 Luxembourg, Attention: the Managing Directors.
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6. Optional Redemption. This Security is subject to redemption at the option of the
Company on any date prior to the maturity date, in whole or from time to time in part, in $1,000 increments (provided that any remaining principal amount thereof shall be at least the minimum authorized denomination thereof), on written
notice given to the Securityholders thereof not less than 30 days nor more than 90 days prior to the date fixed for redemption in such notice (the Redemption Date). At any time prior to August 15, 2020, the Securities shall
be redeemable at a redemption price equal to the greater of (i) 100% of the principal amount of such Securities to be redeemed and (ii) as determined by the Quotation Agent (as defined below) and delivered to the Trustee in writing, the
sum of the present values of the remaining scheduled payments of principal and interest thereon due on any date after the Redemption Date (excluding the portion of interest that shall be accrued and unpaid to and including the Redemption Date)
discounted from their scheduled date of payment to the Redemption Date (assuming a 360-day year consisting of twelve 30-day months) at the Adjusted Redemption Treasury Rate (as defined below) plus 35 basis points, plus, in either the case of clause
(i) or clause (ii), accrued and unpaid interest, if any, thereon to, but excluding, the Redemption Date. Notwithstanding the foregoing, if this Security is redeemed on or after August 15, 2020, the Securities shall be redeemable at a
redemption price equal to 100% of the principal amount of the Securities to be redeemed, plus accrued and unpaid interest, if any, thereon to, but excluding, the Redemption Date.
This Security is also subject to redemption to the extent provided in Section 14.01 of the Indenture.
If the giving of the notice of redemption is completed as provided in the Indenture, interest on such Securities or portions of Securities
shall cease to accrue on and after the Redemption Date, unless the Company shall default in the payment of any such redemption price and accrued interest with respect to any such Security or portion thereof.
Except as otherwise expressly provided herein (including paragraph 8 herein) or in the Second Supplemental Indenture, the Company shall not be
required to make mandatory redemption or sinking fund payments with respect to this Security.
Adjusted Redemption Treasury
Rate, with respect to any Redemption Date, means the rate equal to the semiannual equivalent yield to maturity or interpolated (on a 30/360 day count basis) yield to maturity of the Comparable Redemption Treasury Issue, assuming a price
for the Comparable Redemption Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Redemption Treasury Price for such Redemption Date.
Comparable Redemption Treasury Issue means the United States Treasury security selected by the Quotation Agent as being the
most recently issued United States Treasury note or bond displayed by Bloomberg LP (or any successor service) on screens PXI through PX8 (or any other screens as may replace such screens on such service) having a maturity comparable to the remaining
term of the Securities to be redeemed.
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Comparable Redemption Treasury Price, with respect to any Redemption Date,
means (i) the average of the Redemption Reference Treasury Dealer Quotations for such Redemption Date, after excluding the highest and lowest such Redemption Reference Treasury Dealer Quotations (unless there is more than one highest or lowest
quotation, in which case only one such highest and/or lowest quotation shall be excluded), or (ii) if the Quotation Agent obtains fewer than four such Redemption Reference Treasury Dealer Quotations, the average of all such Redemption Reference
Treasury Dealer Quotations.
Quotation Agent means a Redemption Reference Treasury Dealer appointed as such agent by
the Company.
Redemption Reference Treasury Dealers means four primary U.S. government securities dealers in the United
States selected by the Company.
Redemption Reference Treasury Dealer Quotations, with respect to each Redemption
Reference Treasury Dealer and any Redemption Date, means the average, as determined by the Quotation Agent, of the bid and offer prices at 11:00 a.m., New York City time, for the Comparable Redemption Treasury Issue (expressed in each case as a
percentage of its principal amount) for settlement on the Redemption Date quoted in writing to the Quotation Agent by such Redemption Reference Treasury Dealer on the third Business Day preceding such Redemption Date.
7. Change of Control Triggering Event. If a Change of Control Triggering Event occurs, unless the Company has exercised its option to
redeem this Security, it shall be required to make an offer to the holder of this Security to repurchase, at such holders election, all or a part (equal to $2,000 or an integral multiple of $1,000 in excess thereof; provided that any
remaining principal amount of this Security shall be at least the minimum authorized denomination thereof), of this Security, in cash equal to 101% of the aggregate principal amount of this Security repurchased, plus accrued and unpaid interest, if
any, to, but excluding, the date of repurchase. Within 30 days following any Change of Control Triggering Event, or at the Companys option, prior to any Change of Control, but after public announcement of the transaction that constitutes or
may constitute the Change of Control Triggering Event, a notice shall be sent to the Trustee and to each Securityholder describing in reasonable detail the transaction that constitutes or may constitute the Change of Control Triggering Event and
offering to repurchase this Security on the date specified in the notice, which date shall, except as described in the immediately following sentence and other than as required by law, be no earlier than 30 days and no later than 60 days from the
date such notice is sent. The notice shall, if sent prior to the date of consummation of the Change of Control, state that the offer to purchase is conditioned on the Change of Control Triggering Event occurring on or prior to the date of
repurchase.
8. Special Mandatory Redemption. If Parent does not consummate the ERICO Acquisition on or prior to
December 31, 2015, or the ERICO Merger Agreement is terminated any time prior to such date (without replacement thereof) other than as a result of consummating the ERICO Acquisition, then the Company shall be required to redeem this Security on
the Special Mandatory Redemption Date at a redemption price equal to 101% of the principal amount of this Security, plus accrued and unpaid interest, if any, to, but excluding, the Special
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Mandatory Redemption Date. Notwithstanding the foregoing, installments of interest on this Security that are due and payable on Interest Payment Dates falling on or prior to the Special Mandatory
Redemption Date shall be payable on such Interest Payment Dates to the registered Securityholders as of the close of business on the relevant regular record dates. The Company shall cause the notice of a Special Mandatory Redemption to be sent, with
a copy to the Trustee, within five Business Days after the occurrence of the event triggering the obligation to effectuate the Special Mandatory Redemption to each Securityholder at its registered address. On or before the Special Mandatory
Redemption Date, the Company shall deposit with the Trustee or a paying agent funds sufficient to pay the special mandatory redemption price of the Securities to be redeemed on the Special Mandatory Redemption Date. If funds sufficient to pay the
special mandatory redemption price of the Securities to be redeemed on the Special Mandatory Redemption Date are deposited with the Trustee or a paying agent on or before such Special Mandatory Redemption Date, and any applicable conditions set
forth in the Indenture are satisfied, interest shall cease to accrue on the Securities on and after such Special Mandatory Redemption Date.
9. Denominations, Transfer, Exchange. The Securities are in registered form without coupons in the denominations of $2,000 or any
integral multiple of $1,000 in excess thereof. The transfer of Securities may be registered and Securities may be exchanged as provided in the Indenture. The Securities may be presented for exchange or for registration of transfer (duly endorsed or
with the form of transfer endorsed thereon duly executed if so required by the Company or the Security Registrar) at the office of the Security Registrar or at the office of any transfer agent designated by the Company for such purpose. No service
charge shall be made for any registration of transfer or exchange, but a Securityholder may be required to pay any applicable taxes or other governmental charges. If the Securities are to be redeemed, the Company shall not be required to:
(i) issue, register the transfer of, or exchange any Security during a period beginning at the opening of business 15 days before the day a notice of redemption is sent of less than all of the Outstanding Securities of the same series and
ending at the close of business on the day such notice of redemption is sent; (ii) register the transfer of or exchange any Security of any series or portions thereof selected for redemption, in whole or in part, except the unredeemed portion
of any such Security being redeemed in part; nor (iii) register the transfer of or exchange a Security of any series between the applicable regular record date and the next succeeding Interest Payment Date.
10. Persons Deemed Owners. The registered Securityholder may be treated as its owner for all purposes.
11. Repayment to the Guarantors or the Company. Any funds or Governmental Obligations deposited with any paying agent or the Trustee,
or then held by the Guarantors or the Company, in trust for payment of principal of, premium, if any, or interest on the Securities that are not applied but remain unclaimed by the Securityholders for at least one year after the date upon which the
principal of, premium, if any, or interest on such Securities shall have respectively become due and payable, shall be repaid to the Guarantors or the Company, as applicable, or (if then held by the Guarantors or the Company) shall be discharged
from such trust. After return to the Company or the Guarantors, Securityholders entitled to the money or securities must look to the Company or the Guarantors, as applicable, for payment as unsecured general creditors.
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12. Amendments, Supplements and Waivers. The Base Indenture contains provisions
permitting the Company, the Guarantors and the Trustee, with the consent of the holders of not less than a majority in aggregate principal amount of the securities of each series at the time Outstanding affected by such supplemental indenture or
indentures to enter into supplemental indentures for the purpose of adding, changing or eliminating any provisions of the Base Indenture or any supplemental indenture or of modifying in any manner not covered elsewhere in the Base Indenture the
rights of the holders of the securities of such series; provided, however, that no such supplemental indenture, without the consent of the holders of each security then Outstanding and affected thereby, shall: (i) extend a fixed
maturity of or any installment of principal of any securities of any series or reduce the principal amount thereof, or reduce the amount of principal of any original issue discount security that would be due and payable upon declaration of
acceleration of the maturity thereof; (ii) reduce the rate of or extend the time for payment of interest of any security of any series; (iii) reduce the premium payable upon the redemption of any security; (iv) make any security
payable in Currency other than that stated in the security; (v) impair the right to institute suit for the enforcement of any payment on or after the fixed maturity thereof (or in the case or redemption, on or after the redemption date);
(vi) modify any subordination provisions applicable to this Security or the guarantee of this Security in a manner adverse in any material respect to the holder hereof; or (vii) reduce the percentage of securities, the holders of which are
required to consent to any such supplemental indenture or indentures. In addition, without the consent of each of the Securityholders, the Company and the Guarantors may not amend the provisions of Section 1.4 of the Second Supplemental
Indenture or the corresponding provisions of this Security.
The Base Indenture also contains provisions permitting the holders of not
less than a majority in aggregate principal amount of the Outstanding securities of each series affected thereby, on behalf of all of the holders of the securities of such series, to waive any past default under the Base Indenture, and its
consequences, except a default in the payment of the principal of, premium, if any, or interest on, any of the securities of such series as and when the same shall become due by the terms of such securities.
Any such consent or waiver by the registered Securityholder shall be conclusive and binding upon such Securityholder and upon all future
Securityholders and owners of this Security and of any Security issued in exchange for this Security or in place hereof (whether by registration of transfer or otherwise), irrespective of whether or not any notation of such consent or waiver is made
upon this Security.
13. Defaults and Remedies. If an Event of Default with respect to the securities of a series issued
pursuant to the Base Indenture occurs and is continuing, the Trustee or the holders of at least 25% in aggregate principal amount of the securities of such series then Outstanding, by notice in writing to the Company and the Guarantors (and to the
Trustee if notice is given by such holders), may declare the unpaid principal of, premium, if any, and accrued interest, if any, due and payable immediately. Subject to the terms of the Indenture, if an Event of Default under the Indenture shall
occur and be continuing, the Trustee shall be under no obligation to exercise any of its rights or powers under the Indenture at the request or direction of any of the holders, unless such holders have offered the Trustee indemnity satisfactory to
it. Upon satisfaction of certain conditions set forth in the Indenture, the holders of a majority in principal amount of the Outstanding securities of a series issued pursuant to the Base Indenture shall have the right to
A-11
direct the time, method and place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred on the Trustee, with respect to the securities
of such series.
14. Trustee, Paying Agent and Security Registrar May Hold Securities. The Trustee, subject to certain limitations
imposed by the TIA, or any paying agent or Security Registrar, in its individual or any other capacity, may become the owner or pledgee of Securities with the same rights it would have if it were not Trustee, paying agent or Security Registrar.
15. No Recourse Against Others. No recourse under or upon any obligation, covenant or agreement of the Indenture, or of any
Security, or for any claim based thereon or otherwise in respect hereof or thereof, shall be had against any incorporator, stockholder, officer or director, past, present or future as such, of the Guarantors or the Company or of any predecessor or
successor Person, either directly or through the Guarantors or the Company or any such predecessor or successor Person, whether by virtue of any constitution, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise;
it being expressly understood that the Indenture and the obligations issued hereunder and thereunder are solely corporate obligations, and that no such personal liability whatever shall attach to, or is or shall be incurred by, the incorporators,
organizers, shareholders, partners, members, officers, directors, managers or agents as such, of the Guarantors or the Company or of any predecessor or successor Person, or any of them, because of the creation of the indebtedness authorized by the
Indenture, or under or by reason of the obligations, covenants or agreements contained in the Indenture or in the Securities or implied therefrom; and that any and all such personal liability of every name and nature, either at common law or in
equity or by constitution or statute, of, and any and all such rights and claims against, every such incorporator, organizer, shareholder, partner, member, officer, director, manager or agent as such, because of the creation of the indebtedness
authorized by the Indenture, or under or by reason of the obligations, covenants or agreements contained in the Indenture or in the Securities or implied therefrom, are hereby expressly waived and released as a condition of, and as a consideration
for, the acceptance of the Securities.
16. Discharge of Indenture. The Indenture contains certain provisions pertaining to
defeasance and discharge, which provisions shall for all purposes have the same effect as if set forth herein.
17.
Authentication. This Security shall not be valid until the Trustee signs the certificate of authentication attached to the other side of this Security.
18. Guarantees. All payments by the Company under the Indenture and this Security are fully and unconditionally guaranteed to the
Securityholder by the Guarantors, as provided in the related Guarantee and the Indenture.
19. Additional Amounts. The Company and
the Guarantors are obligated to pay Additional Amounts on this Security to the extent provided in Article XIV of the Indenture.
20.
Abbreviations. Customary abbreviations may be used in the name of a Securityholder or an assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (= joint tenants with right of survivorship and not
as tenants in common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts to Minors Act).
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21. Governing Law. The Base Indenture, the Second Supplemental Indenture and this
Security (and the Guarantee hereon) shall be deemed to be a contract made under the internal laws of the State of New York, and for all purposes shall be construed in accordance with the laws of said State without regard to conflicts of laws
principles (except for Sections 5-1401 and 5-1402 of the New York General Obligations Law) that would require the application of any other law. The Base Indenture, the Second Supplemental Indenture and this Security (and the Guarantee hereon) are
subject to the provisions of the TIA that are required to be part of the Base Indenture, the Second Supplemental Indenture and this Security (and the Guarantee hereon) and shall, to the extent applicable, be governed by such provisions. The
application of articles 86 to 94-8 of the Luxembourg law on commercial companies dated 10 August 1915, as amended, to the Base Indenture, the Second Supplemental Indenture and this Security (and the Guarantee hereon) is excluded.
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ASSIGNMENT FORM
To assign this Security, fill in the form below: (I) or (we) assign and transfer this Security to
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assignees soc. sec. or tax I.D. no.) |
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(Print or type assignees name, address and zip code) |
and irrevocably appoint |
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agent to transfer this Security on the books of the Company. The agent may substitute another to act for him.
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Date:
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Your Signature: |
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(Sign exactly as your name appears on the face of this Security) |
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ELECTION FORM
TO BE COMPLETED ONLY IF THE SECURITYHOLDER
ELECTS TO ACCEPT THE CHANGE OF CONTROL OFFER
The undersigned
hereby irrevocably requests and instructs the Company to repurchase the within Security (or the portion thereof specified below), pursuant to its terms, on the Change of Control Payment Date specified in the Change of Control Offer, for the Change
of Control Payment specified in the within Security, to the undersigned,
, at
(please print or typewrite name, address and telephone number of the undersigned).
For this election to accept the Change of Control
Offer to be effective, the undersigned must (A) deliver, to the address of the paying agent set forth below or at such other place or places of which the Company shall from time to time notify the Securityholder, either (i) the Security
with this Election Form duly completed, or (ii) a telegram, telex, facsimile transmission or a letter from a member of a national securities exchange or the Financial Industry Regulatory Authority, Inc. or a commercial bank or a
trust company in the United States setting forth (a) the name of the Securityholder, (b) the principal amount of the Security, (c) the principal amount of the Security to be repurchased, (d) the certificate number or description
of the tenor and terms of the Security, (e) a statement that the option to elect repurchase is being exercised, and (f) a guarantee stating that the Security to be repurchased, together with this Election Form duly completed,
will be received by the paying agent at least five Business Days prior to the Change of Control Payment Date or (B) otherwise comply with alternative instructions in accordance with the procedures of the depositary. The address of the paying
agent is 60 Livingston Avenue, St. Paul MN 55107; Attention: Paying Agent - Unisys.
If less than the entire principal amount of the
within Security is to be repurchased, specify the portion thereof (which principal amount must be $2,000 or an integral multiple of $1,000 in excess thereof; provided that any remaining principal amount shall be at least the minimum authorized
denomination thereof) which the Securityholder elects to have repurchased: $ .
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A-15
Exhibit 4.4
Execution Version
PENTAIR FINANCE S.A.,
as Issuer
AND
PENTAIR PLC,
as Parent and Guarantor
AND
PENTAIR INVESTMENTS SWITZERLAND GMBH,
as Guarantor
AND
U.S. BANK NATIONAL ASSOCIATION,
as Trustee
THIRD SUPPLEMENTAL
INDENTURE
Dated as of September 16, 2015
$250,000,000 of 4.650% Senior Notes due 2025
THIS THIRD SUPPLEMENTAL INDENTURE is dated as of September 16, 2015, among PENTAIR FINANCE
S.A., a Luxembourg public limited liability company (société anonyme) with a registered office at 26, boulevard Royal, L-2449 Luxembourg, Luxembourg and registered with the Luxembourg Trade and Companies Register under
number B 166305, as issuer (the Company), each of PENTAIR PLC, an Irish public limited company (Parent), and PENTAIR INVESTMENTS SWITZERLAND GMBH, a Switzerland limited liability company, as guarantors (each
individually, a Guarantor and collectively, the Guarantors), and U.S. BANK NATIONAL ASSOCIATION, a national banking association, as trustee (the Trustee).
RECITALS
A. The Company, the
Guarantors and the Trustee have heretofore executed and delivered an Indenture, dated as of September 16, 2015 (the Base Indenture), to provide for the issuance by the Company from time to time of unsubordinated debt
securities evidencing its unsecured indebtedness and the guarantee of such securities by the Guarantors to the extent described therein and in this Third Supplemental Indenture.
B. Pursuant to resolutions of the Board of Directors, the Company has authorized the issuance of $250,000,000 principal amount of 4.650%
Senior Notes due 2025 (the Offered Securities).
C. The entry into this Third Supplemental Indenture by the parties
hereto is in all respects authorized by the provisions of the Base Indenture.
D. The Company and the Guarantors desire to enter into this
Third Supplemental Indenture pursuant to Section 9.01 of the Base Indenture to establish the terms of the Offered Securities in accordance with Section 2.01 of the Base Indenture and to establish the form of the Offered Securities in
accordance with Section 2.02 of the Base Indenture.
E. All things necessary to make this Third Supplemental Indenture a legal, valid
and binding indenture and agreement according to its terms have been done.
NOW, THEREFORE, for and in consideration of the foregoing
premises, the Company, the Guarantors and the Trustee mutually covenant and agree for the equal and proportionate benefit of the respective Holders from time to time of the Offered Securities as follows:
ARTICLE I
Section 1.1 Terms of Offered
Securities.
The following terms relate to the Offered Securities:
(1) The Offered Securities constitute a series of securities having the title 4.650% Senior Notes due 2025.
1
Third Supplemental Indenture
(2) The initial aggregate principal amount of the Offered Securities that may be authenticated
and delivered under the Base Indenture (except for Offered Securities authenticated and delivered upon registration of transfer of, or in exchange for, or in lieu of, other Offered Securities pursuant to Section 2.05, 2.06, 2.07, 2.11, or 3.03
of the Base Indenture) is $250,000,000.
(3) The entire Outstanding principal of the Offered Securities shall be payable on
September 15, 2025.
(4) The rate at which the Offered Securities shall bear interest shall be 4.650% per year, as set forth in
Section 1 of the form of Offered Security attached hereto as Exhibit A and subject to adjustment as set forth in Section 2 of the form of Offered Security attached hereto as Exhibit A. The date from which interest shall accrue on the
Offered Securities shall be September 16, 2015 or the most recent Interest Payment Date to which interest has been paid or provided for. The Interest Payment Dates for the Offered Securities shall be March 15 and September 15 of each
year, beginning on March 15, 2016. Interest shall be payable on each Interest Payment Date to the Holders of record at the close of business on the March 1 and September 1 prior to each Interest Payment Date (a regular record
date). The basis upon which interest shall be calculated shall be that of a 360-day year consisting of twelve 30-day months.
(5) The Offered Securities shall be issuable in whole in the registered form of one or more Global Securities, and the Depositary for such
Global Securities shall be The Depository Trust Company, New York, New York. The Offered Securities shall be substantially in the form attached hereto as Exhibit A, the terms of which are incorporated by reference in this Third Supplemental
Indenture. The Offered Securities shall be issuable in denominations of $2,000 or any integral multiple of $1,000 in excess thereof.
(6)
The Offered Securities shall be subject to redemption at the Companys option on any Redemption Date as set forth in Section 6 of the form of Offered Security attached hereto as Exhibit A.
(7) Except as provided in this Third Supplemental Indenture, the Offered Securities shall not be subject to redemption, repurchase or
repayment at the option of any Holder thereof, upon the occurrence of any particular circumstances or otherwise. The Offered Securities shall not have the benefit of any sinking fund. For the avoidance of doubt, the Company, the Guarantors and their
respective Affiliates may purchase Offered Securities from the Holders thereof from time to time, either in the open market at prevailing prices or in private transactions at negotiated prices. Any Offered Securities purchased by the Company, the
Guarantors or any of their respective Affiliates may, at the purchasers discretion, be held, resold or canceled.
(8) Except as
provided in this Third Supplemental Indenture, the Holders of the Offered Securities shall have no special rights in addition to those provided in the Base Indenture upon the occurrence of any particular events.
(9) The Offered Securities shall be general unsecured and unsubordinated obligations of the Company and shall be ranked equally among
themselves.
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Third Supplemental Indenture
(10) The Offered Securities are not convertible into shares of common stock or other securities
of the Company or the Guarantors.
(11) In addition to the provisions of the Base Indenture referred to in Section 11.03(b) thereof,
the covenants described in Sections 1.3(1), 1.3(2) and 1.3(3) of this Third Supplemental Indenture shall be subject to the Companys covenant defeasance right set forth in Section 11.03 of the Base Indenture. In addition, following any
such covenant defeasance, the Events of Default set forth in Sections 1.5(1), 1.5(3) and 1.5(4) of this Third Supplemental Indenture shall cease to apply with respect to the Offered Securities.
Section 1.2 Additional Defined Terms.
As used in this Third Supplemental Indenture, the following defined terms shall have the following meanings with respect to the Offered
Securities only:
Attributable Debt, in connection with a Sale and Lease-Back Transaction, as of any particular time,
means the aggregate of present values (discounted at a rate that, at the inception of the lease, represents the effective interest rate that the lessee would have incurred to borrow over a similar term the funds necessary to purchase the leased
assets) of the obligations of the Company, a Guarantor or any Restricted Subsidiary for net rental payments during the remaining term of the applicable lease, including any period for which such lease has been extended or, at the option of the
lessor, may be extended. The term net rental payments under any lease of any period shall mean the sum of the rental and other payments required to be paid in such period by the lessee thereunder, not including any amounts
required to be paid by such lessee, whether or not designated as rental or additional rental, on account of maintenance and repairs, reconstruction, insurance, taxes, assessments, water rates or similar charges required to be paid by such lessee
thereunder or any amounts required to be paid by such lessee thereunder contingent upon the amount of sales, maintenance and repairs, reconstruction, insurance, taxes, assessments, water rates or similar charges.
Change of Control means the occurrence on or after the Issue Date of any of the following: (1) the direct or indirect
sale, lease, transfer, conveyance or other disposition (other than by way of merger or consolidation), in one or more series of related transactions, of all or substantially all of the assets of Parent and its Subsidiaries, taken as a whole, to any
person other than Parent or a direct or indirect wholly-owned Subsidiary of Parent; (2) the consummation of any transaction (including, without limitation, any merger or consolidation) the result of which is that any person becomes the
beneficial owner (as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of more than 50% of Parents outstanding Voting Stock or other Voting Stock into which Parents Voting Stock is
reclassified, consolidated, exchanged or changed, measured by voting power rather than number of shares; (3) Parent consolidates with, or merges with or into, any person, or any person consolidates with, or merges with or into, Parent, in any
such event pursuant to a transaction in which any of Parents outstanding Voting Stock or the Voting Stock of such other person is converted into or exchanged for cash, securities or other property, other than any such transaction where the
shares of Parents Voting Stock outstanding immediately prior to such transaction constitute, or are converted into or exchanged for, at least a majority of the Voting Stock of the surviving person or any direct or
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Third Supplemental Indenture
indirect parent company of the surviving person immediately after giving effect to such transaction; or (4) the approval by the holders of Parents Voting Stock of a plan for
Parents liquidation or dissolution. Notwithstanding the foregoing, a transaction shall not be deemed to involve a Change of Control under clause (1), (2) or (4) above if: (i) Parent becomes a direct or indirect wholly-owned
Subsidiary of a holding company or a holding company becomes the successor to Parent under Section 10.2 of the Base Indenture pursuant to a transaction that is permitted under Section 10.1 of the Base Indenture and (ii) the direct or
indirect holders of the Voting Stock of such holding company immediately following that transaction (or a series of related transactions) are the same or substantially the same (and hold in the same or substantially the same proportions) as the
holders of Parents Voting Stock immediately prior to that transaction. The term person, as used in this definition, means any Person and any two or more Persons as provided in Section 13(d)(3) of the Exchange Act.
Change of Control Triggering Event means the occurrence of both a Change of Control and a Rating Event; provided, however,
that a Change of Control Triggering Event otherwise arising by virtue of a particular reduction in rating shall not be deemed to have occurred in respect of a Change of Control if the Rating Agency or Rating Agencies making the reduction in rating
to which this definition would otherwise apply do not announce or publicly confirm or inform the Trustee in writing at its request that the reduction was the result, in whole or in part, of any event or circumstance comprised of or arising as a
result of, or in respect of, the applicable Change of Control (whether or not the applicable Change of Control shall have occurred at the time of the purported Change of Control Triggering Event). Unless at least two of the three Rating Agencies are
providing a rating for the Offered Securities at the commencement of any period referred to in the definition of Rating Event, a Rating Event shall be deemed to have occurred during such period. Notwithstanding the foregoing, no Change
of Control Triggering Event shall be deemed to have occurred in connection with any particular Change of Control unless and until such Change of Control has actually been consummated.
Consolidated Net Tangible Assets at any date means Consolidated Net Worth less all Intangible Assets appearing on the most
recently prepared consolidated balance sheet of Parent and its Subsidiaries as of the end of a fiscal quarter of Parent and its Subsidiaries, prepared in accordance with United States generally accepted accounting principles as in effect on the date
of the consolidated balance sheet.
Consolidated Net Worth at any date means total assets less total liabilities, in
each case appearing on the most recently prepared consolidated balance sheet of Parent and its Subsidiaries as of the end of a fiscal quarter of Parent and its Subsidiaries, prepared in accordance with United States generally accepted accounting
principles as in effect on the date of the consolidated balance sheet.
Consolidated Total Assets at any date means the
total assets appearing on the most recently prepared consolidated balance sheet of Parent and its Subsidiaries as of the end of a fiscal quarter of Parent and its Subsidiaries, prepared in accordance with United States generally accepted accounting
principles as in effect on the date of the consolidated balance sheet.
ERICO means ERICO Global Company, an Ohio
corporation.
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Third Supplemental Indenture
ERICO Acquisition means the acquisition of all of the outstanding shares of
ERICO by Buyer (as defined in the definition of ERICO Merger Agreement) pursuant to the ERICO Merger Agreement.
ERICO Merger
Agreement means the Agreement and Plan of Merger dated August 15, 2015, among Parent, Pentair Lionel Acquisition Co., a Delaware corporation and wholly-owned subsidiary of Parent (Buyer), Pentair Lionel Merger Sub,
Inc., an Ohio corporation and a wholly-owned subsidiary of Parent and Buyer, and ERICO, as the same may be amended, restated, supplemented, replaced or otherwise modified from time to time.
Fitch means Fitch Inc., and its successors.
Funded Indebtedness means any Indebtedness maturing by its terms more than one year from the date of the determination
thereof, including any Indebtedness renewable or extendible at the option of the obligor to a date later than one year from the date of the determination thereof.
Indebtedness means, without duplication, the principal amount (such amount being the face amount or, with respect to
original issue discount bonds or zero coupon notes, bonds or debentures or similar securities, determined based on the accreted amount as of the date of the most recently prepared consolidated balance sheet of Parent and its Subsidiaries as of the
end of a fiscal quarter of Parent prepared in accordance with United States generally accepted accounting principles as in effect on the date of such consolidated balance sheet) of (i) all obligations for borrowed money, (ii) all
obligations evidenced by debentures, notes or other similar instruments, (iii) all obligations in respect of letters of credit or bankers acceptances or similar instruments or reimbursement obligations with respect thereto (such instruments to
constitute Indebtedness only to the extent that the outstanding reimbursement obligations in respect thereof are collateralized by cash or cash equivalents reflected as assets on a balance sheet prepared in accordance with United States generally
accepted accounting principles), (iv) all obligations as lessee to the extent capitalized in accordance with United States generally accepted accounting principles in effect on the date of this Third Supplemental Indenture and (v) all
Indebtedness of others consolidated in such balance sheet that is guaranteed by the Company, a Guarantor or any of their respective Subsidiaries or for which the Company, a Guarantor or any of their respective Subsidiaries is legally responsible or
liable (whether by agreement to purchase indebtedness of, or to supply funds or to invest in, others).
Intangible
Assets means the amount, if any, stated under the heading Goodwill and Other Intangible assets, net or under any other heading of intangible assets separately listed, in each case on the face of the most recently prepared
consolidated balance sheet of Parent and its subsidiaries as of the end of a fiscal quarter of Parent, prepared in accordance with United States generally accepted accounting principles as in effect on the date of the consolidated balance sheet.
Investment Grade Rating means a rating equal to or higher than BBB- (or the equivalent) by Fitch, Baa3 (or the
equivalent) by Moodys and BBB- (or the equivalent) by S&P, and the equivalent investment grade credit rating from any replacement rating agency or rating agencies selected by the Company.
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Third Supplemental Indenture
Issue Date means the date on which the Offered Securities are originally
issued.
Lien means a mortgage, pledge, security interest, lien or similar encumbrance.
Moodys means Moodys Investors Service, Inc., and its successors.
Non-Recourse Indebtedness means Indebtedness upon the enforcement of which recourse may be had by the holder(s) thereof
only to identified assets of a Guarantor or the Company or any Subsidiary of a Guarantor or the Company and not to a Guarantor or the Company or any Subsidiary of a Guarantor or the Company personally (subject to, for the avoidance of doubt,
customary exceptions contained in non-recourse financings to the non-recourse nature of the obligations thereunder).
Principal
Property means any manufacturing, processing or assembly plant, warehouse or distribution facility, office building or parcel of real property of Parent or any of its Subsidiaries that is located in the United States of America, Canada or
the Commonwealth of Puerto Rico and (A) is owned by Parent or any Subsidiary of Parent on the Issue Date, (B) the initial construction of which has been completed after the date hereof, or (C) is acquired after the date hereof, in
each case, other than any such plants, facilities, warehouses, office buildings, parcels or portions thereof, that (i) in the opinion of the Board of Directors of Parent, are not collectively of material importance to the total business
conducted by Parent and its Subsidiaries as an entirety, or (ii) has a net book value (excluding any capitalized interest expense), on the Issue Date in the case of clause (A) of this definition, on the date of completion of the initial
construction in the case of clause (B) of this definition or on the date of acquisition in the case of clause (C) of this definition, of less than 1.0% of Consolidated Net Tangible Assets on the consolidated balance sheet of Parent as of
the applicable date.
Rating Agencies means (i) each of Fitch, Moodys and S&P, and (ii) if any of
Fitch, Moodys or S&P ceases to rate the Offered Securities or fails to make a rating of the Offered Securities publicly available for reasons outside of the Companys control, a nationally recognized statistical rating
organization within the meaning of Rule 15c3-1(c)(2)(vi)(F) under the Exchange Act, selected by the Company (as certified by a resolution of the Companys Board of Directors) as a replacement agency for Fitch, Moodys or S&P, or
all of them, as the case may be.
Rating Event means the rating on the Offered Securities is lowered by at least two of
the three Rating Agencies and such Offered Securities are rated below an Investment Grade Rating by at least two of the three Rating Agencies on any day during the period (which period shall be extended so long as the rating of such Offered
Securities is under publicly announced consideration for a possible downgrade by any of the Rating Agencies) commencing on the date of Parents first public notice of the occurrence of a Change of Control or Parents intention to effect a
Change of Control and ending 60 days following consummation or abandonment of such Change of Control.
Restricted
Subsidiary means any Subsidiary of Parent that owns or leases a Principal Property.
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Third Supplemental Indenture
Sale and Lease-Back Transaction means an arrangement with any Person providing
for the leasing by Parent or a Restricted Subsidiary of any Principal Property whereby such Principal Property has been owned and in full operation for more than 180 days and has been or is to be sold or transferred by Parent or a Restricted
Subsidiary to such Person other than a Guarantor, the Company or any of their respective Subsidiaries; provided, however, that the foregoing shall not apply to any such arrangement involving a lease for a term, including renewal rights, for not more
than three years.
S&P means Standard & Poors Ratings Services, a division of The McGraw-Hill
Companies, Inc., and its successors.
Voting Stock means, with respect to any specified Person as of any
date, the capital stock of such Person that is at the time entitled to vote generally in the election of the board of directors of such Person.
Section
1.3 Additional Covenants.
The following additional covenants shall apply with respect to the Offered Securities so long as any of
the Offered Securities remain Outstanding (but subject to defeasance, as provided in the Base Indenture and Section 1.1 of this Third Supplemental Indenture):
(1) Limitation on Liens.
None
of the Company or the Guarantors shall, and none of them shall permit any Restricted Subsidiary to, issue, assume or guarantee any Indebtedness that is secured by a Lien upon any property that at the time of such issuance, assumption or guarantee
constitutes a Principal Property, or any shares of stock of or Indebtedness issued by any Restricted Subsidiary, whether now owned or hereafter acquired, without effectively providing that, for so long as such Lien shall continue in existence with
respect to such secured Indebtedness, the Offered Securities (together with, if the Company shall so determine, any other Indebtedness of the Company ranking equally with the Offered Securities, it being understood that for purposes hereof,
Indebtedness which is secured by a Lien and Indebtedness which is not so secured shall not, solely by reason of such Lien, be deemed to be of different ranking) shall be equally and ratably secured by a Lien ranking ratably with or equal to (or at
the Companys option prior to) such secured Indebtedness; provided, however, that the foregoing covenant shall not apply to:
(a) Liens existing on the Issue Date;
(b) Liens on the stock, assets or Indebtedness of a Person existing at the time such Person becomes a Restricted Subsidiary,
unless created in contemplation of such Person becoming a Restricted Subsidiary;
(c) Liens on any assets or Indebtedness
of a Person existing at the time such Person is merged with or into or consolidated with or acquired by the Company, a Guarantor or a Restricted Subsidiary or at the time of a purchase, lease or other acquisition of the assets of a corporation or
firm as an entirety or substantially as an entirety by the Company, a Guarantor or any Restricted Subsidiary;
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Third Supplemental Indenture
(d) Liens on any Principal Property existing at the time of acquisition thereof
by the Company, a Guarantor or any Restricted Subsidiary, or Liens to secure the payment of the purchase price of such Principal Property by the Company, a Guarantor or any Restricted Subsidiary, or to secure any Indebtedness incurred, assumed or
guaranteed by the Company, a Guarantor or a Restricted Subsidiary for the purpose of financing all or any part of the purchase price of such Principal Property or improvements or construction thereon, which Indebtedness is incurred, assumed or
guaranteed prior to, at the time of or within 180 days after such acquisition, or in the case of real property, completion of such improvement or construction or commencement of full operation of such property, whichever is later; provided,
however, that in the case of any such acquisition, construction or improvement, the Lien shall not apply to any Principal Property theretofore owned by the Company, a Guarantor or a Restricted Subsidiary, other than the Principal Property so
acquired, constructed or improved, and accessions thereto and improvements and replacements thereof and the proceeds of the foregoing;
(e) Liens securing Indebtedness owing by any Restricted Subsidiary to the Company, a Guarantor or a Subsidiary thereof or by
the Company to a Guarantor;
(f) Liens in favor of the United States or any State thereof, or any department, agency or
instrumentality or political subdivision of the United States or any State thereof, or in favor of any other country or any political subdivision thereof, to secure partial, progress, advance or other payments pursuant to any contract, statute, rule
or regulation or to secure any Indebtedness incurred or guaranteed for the purpose of financing all or any part of the purchase price (or, in the case of real property, the cost of construction or improvement) of the Principal Property subject to
such Liens (including Liens incurred in connection with pollution control, industrial revenue or similar financings);
(g)
pledges, Liens or deposits under workers compensation or similar legislation, and Liens thereunder that are not currently dischargeable, or in connection with bids, tenders, contracts (other than for the payment of money) or leases to which
the Company, a Guarantor or any Restricted Subsidiary is a party, or to secure the public or statutory obligations of the Company, a Guarantor or any Restricted Subsidiary, or in connection with obtaining or maintaining self-insurance, or to obtain
the benefits of any law, regulation or arrangement pertaining to unemployment insurance, old age pensions, social security or similar matters, or to secure surety, performance, appeal or customs bonds to which the Company, a Guarantor or any
Restricted Subsidiary is a party, or in litigation or other proceedings in connection with the matters heretofore referred to in this clause, such as interpleader proceedings, and other similar pledges, Liens or deposits made or incurred in the
ordinary course of business;
(h) Liens created by or resulting from any litigation or other proceeding that is being
contested in good faith by appropriate proceedings, including Liens arising out of judgments or awards against the Company, a Guarantor or any Restricted Subsidiary with respect to which the Company, a Guarantor or such Restricted Subsidiary in good
faith is prosecuting an appeal or proceedings for review or for which the time to make an appeal
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Third Supplemental Indenture
has not yet expired; or final unappealable judgment Liens which are satisfied within 15 days of the date of judgment; or Liens incurred by the Company, a Guarantor or any Restricted Subsidiary
for the purpose of obtaining a stay or discharge in the course of any litigation or other proceeding to which the Company, a Guarantor or such Restricted Subsidiary is a party, provided that (x) in the case of Liens arising out of judgments or
awards, the enforcement of such Liens is effectively stayed and (y) the aggregate amount secured by all such Liens does not at any time exceed the greater of (i) $25,000,000 or (ii) 0.5% of Consolidated Total Assets;
(i) Liens for taxes or assessments or governmental charges or levies not yet due or delinquent; or that can thereafter be paid
without penalty, or that are being contested in good faith by appropriate proceedings; landlords Liens on property held under lease; and any other Liens or charges incidental to the conduct of the business of the Company, a Guarantor or any
Restricted Subsidiary, or the ownership of their respective assets, that were not incurred in connection with the borrowing of money or the obtaining of advances or credit and that, in the opinion of the Board of Directors of a Guarantor, do not
materially impair the use of such assets in the operation of the business of the Company, a Guarantor or such Restricted Subsidiary or the value of such Principal Property for the purposes of such business;
(j) Liens to secure the Companys, a Guarantors or any Restricted Subsidiarys obligations under agreements
with respect to spot, forward, future and option transactions, entered into in the ordinary course of business;
(k) Liens
not permitted by the foregoing clauses (a) to (j), inclusive, if at the time of, and upon giving effect to, the creation or assumption of any such Lien, the aggregate amount of all outstanding Indebtedness of the Company, the Guarantors and all
Restricted Subsidiaries, without duplication, secured by all such Liens not so permitted by the foregoing clauses (a) through (j), inclusive, together with the Attributable Debt in respect of Sale and Lease-Back Transactions permitted by
paragraph (a) under subsection (2) below, do not exceed an amount equal to 15% of Consolidated Net Tangible Assets; and
(l) any extension, renewal or replacement (or successive extensions, renewals or replacements) in whole or in part, of any Lien
referred to in the foregoing clauses (a) to (k), inclusive; provided, however, that the principal amount of Indebtedness secured thereby (except to the extent otherwise excepted under clauses (a) through (k)) shall not exceed the principal
amount of Indebtedness so secured at the time of such extension, renewal or replacement, and that such extension, renewal or replacement shall be limited to all or a part of the assets, or any replacements therefor and products and proceeds thereof,
that secured the Lien so extended, renewed or replaced, plus improvements and construction on real property.
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Third Supplemental Indenture
(2) Limitation on Sale and Lease-Back Transactions.
None of the Company or the Guarantors shall, and none of them shall permit any Restricted Subsidiary to, enter into any Sale and Lease-Back
Transaction (other than with the Company, a Guarantor and/or one or more Subsidiaries of a Guarantor) unless:
(a) the
Company, such Guarantor or such Restricted Subsidiary, at the time of entering into such Sale and Lease-Back Transaction, would be entitled to incur Indebtedness secured by a Lien on the Principal Property to be leased in an amount at least equal to
the Attributable Debt in respect of such Sale and Lease-Back Transaction, without equally and ratably securing the Offered Securities pursuant to Section 1.3(1) of this Third Supplemental Indenture; or
(b) the direct or indirect proceeds of the sale of the Principal Property to be leased are at least equal to the fair value of
such Principal Property, as determined by Parents Board of Directors, and an amount equal to the net proceeds from the sale of the property or assets so leased is applied, within 180 days of the effective date of any such Sale and Lease-Back
Transaction, to the purchase or acquisition, or, in the case of real property, commencement of the construction of property or assets or to the retirement (other than at maturity or pursuant to a mandatory sinking fund or mandatory redemption
provision) of Offered Securities, or of Funded Indebtedness of Parent or a consolidated Subsidiary ranking on a parity with or senior to the Offered Securities; provided that there shall be credited to the amount of net proceeds required to be
applied pursuant to this clause (b) an amount equal to the sum of (i) the principal amount of Offered Securities delivered within 180 days of the effective date of such Sale and Lease-Back Transaction to the Trustee for retirement and
cancellation and (ii) the principal amount of other Funded Indebtedness voluntarily retired by Parent or a consolidated Subsidiary ranking on a parity with or senior to the Offered Securities within such 180-day period, excluding retirements of
Offered Securities and other Funded Indebtedness as a result of conversions or pursuant to mandatory sinking fund or mandatory prepayment provisions.
(3) Change of Control Triggering Event.
(a) If a Change of Control Triggering Event occurs, unless the Company has exercised its option to redeem the Offered
Securities, it shall be required to make an offer (a Change of Control Offer) to each Holder of the Offered Securities to repurchase, at the Holders election, all or any part (equal to $2,000 or an integral multiple of
$1,000 in excess thereof) of that Holders Offered Securities on the terms set forth in this Third Supplemental Indenture. In a Change of Control Offer, the Company shall be required to offer payment in cash equal to 101% of the aggregate
principal amount of Offered Securities repurchased, plus accrued and unpaid interest, if any, on the Offered Securities repurchased to, but excluding, the date of repurchase (a Change of Control Payment). Within 30 days following
any Change of Control Triggering Event or, at the Companys option, prior to any Change of Control, but after public announcement of the transaction that constitutes or may constitute the Change of Control, a notice shall be sent to the Trustee
and to the Holders of the Offered Securities describing in reasonable detail the transaction that constitutes or may constitute the Change of Control Triggering Event and offering to repurchase such Offered Securities on the date specified in the
notice, which
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Third Supplemental Indenture
date shall, except as described in the immediately following sentence and other than as required by law, be no earlier than 30 days and no later than 60 days from the date such notice is
sent (a Change of Control Payment Date). The notice shall, if sent prior to the date of consummation of the Change of Control, state that the offer to purchase is conditioned on the Change of Control Triggering Event occurring on
or prior to the Change of Control Payment Date.
(b) In order to accept the Change of Control Offer, the Holder must
deliver (or otherwise comply with alternative instructions in accordance with the procedures of the Depositary) to the paying agent, at least five Business Days prior to the Change of Control Payment Date, its Offered Security together with the form
entitled Election Form (which form is contained in the form of note attached hereto as Exhibit A) duly completed, or a telegram, telex, facsimile transmission or a letter from a member of a national securities exchange, or the Financial
Industry Regulatory Authority, Inc. or a commercial bank or trust company in the United States setting forth:
(i) the name
of the Holder of such Offered Security;
(ii) the principal amount of such Offered Security;
(iii) the principal amount of such Offered Security to be repurchased;
(iv) the certificate number or a description of the tenor and terms of such Offered Security;
(v) a statement that the Holder is accepting the Change of Control Offer; and
(vi) a guarantee that such Offered Security, together with the form entitled Election Form duly completed, shall be
received by the paying agent at least five Business Days prior to the Change of Control Payment Date.
(c) Any exercise by
a Holder of its election to accept the Change of Control Offer shall be irrevocable. The Change of Control Offer may be accepted for less than the entire principal amount of an Offered Security, but in that event the principal amount of such Offered
Security remaining Outstanding after repurchase must be equal to $2,000 or an integral multiple of $1,000 in excess thereof.
(d) On the Change of Control Payment Date, the Company shall, to the extent lawful:
(i) accept for payment all Offered Securities or portions of such Offered Securities properly tendered pursuant to the Change
of Control Offer;
(ii) deposit with the paying agent an amount equal to the Change of Control Payment in respect of all
Offered Securities or portions of Offered Securities properly tendered; and
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Third Supplemental Indenture
(iii) deliver or cause to be delivered to the Trustee the Offered Securities
properly accepted together with an Officers Certificate stating the aggregate principal amount of Offered Securities or portions of Offered Securities being repurchased.
(e) The Company shall not be required to make a Change of Control Offer upon the occurrence of a Change of Control Triggering
Event if a third party makes such an offer in the manner, at the times and otherwise in compliance with the requirements for an offer made by the Company and the third party purchases all Offered Securities properly tendered and not withdrawn under
its offer. In addition, the Company shall not repurchase any Offered Securities if there has occurred and is continuing on the Change of Control Payment Date an Event of Default under the Indenture, other than a default in the payment of the Change
of Control Payment upon a Change of Control Triggering Event.
(f) Notwithstanding the foregoing, the Company and the
Guarantors shall comply with the requirements of Rule 14e-1 under the Securities Exchange Act of 1934, as amended (the Exchange Act), and any other securities laws and regulations thereunder to the extent those laws and
regulations are applicable in connection with the repurchase of the Offered Securities as a result of a Change of Control Triggering Event. To the extent that the provisions of any such securities laws or regulations conflict with this
Section 1.3(3), none of the Company or the Guarantors shall be deemed to have breached its obligations under this Section 1.3(3) by virtue of its compliance with such securities laws or regulations.
Section 1.4 Special Mandatory Redemption.
(1) In the event that either (i) Parent does not consummate the ERICO Acquisition on or prior to December 31, 2015, or (ii) the
ERICO Merger Agreement is terminated any time prior to such date (without replacement thereof) other than as a result of consummating the ERICO Acquisition, the Company shall redeem all of the Outstanding Offered Securities in whole and not in part
(a Special Mandatory Redemption) on the Special Mandatory Redemption Date at a redemption price equal to 101% of the principal amount of the Offered Securities, plus accrued and unpaid interest, if any, to, but excluding, the
Special Mandatory Redemption Date. The Special Mandatory Redemption Date means the earlier to occur of (i) February 1, 2016, if the ERICO Acquisition has not been consummated on or prior to December 31, 2015, or
(ii) the 30th day (or if such day is not a Business Day, the first Business Day thereafter) following the termination of the ERICO Merger Agreement (without replacement thereof) other than as a result of consummating the ERICO Acquisition.
Notwithstanding the foregoing, installments of interest on the Offered Securities that are due and payable on Interest Payment Dates falling on or prior to the Special Mandatory Redemption Date shall be payable on such Interest Payment Dates to the
registered Holders as of the close of business on the relevant regular record dates, as provided in the Base Indenture and this Third Supplemental Indenture.
(2) The Company shall cause the notice of a Special Mandatory Redemption to be sent, with a copy to the Trustee, within five Business Days
after the occurrence of the event triggering the obligation to effectuate the Special Mandatory Redemption to each Holder at its
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Third Supplemental Indenture
registered address. On or before the Special Mandatory Redemption Date, the Company shall deposit with the Trustee or a paying agent funds sufficient to pay the special mandatory redemption price
of the Offered Securities to be redeemed on the Special Mandatory Redemption Date. If funds sufficient to pay the special mandatory redemption price of the Offered Securities to be redeemed on the Special Mandatory Redemption Date are deposited with
the Trustee or a paying agent on or before such Special Mandatory Redemption Date, and any applicable conditions set forth in the Base Indenture are satisfied, interest shall cease to accrue on the Offered Securities on and after such Special
Mandatory Redemption Date.
Section 1.5 Additional Events of Default.
The following additional events shall be established and shall each constitute an Event of Default under Section 6.01(a) of
the Base Indenture with respect to the Offered Securities so long as any of the Offered Securities remain Outstanding:
(1) default in the
performance or breach by the Company or a Guarantor of the covenant described under Section 10.01 of the Base Indenture;
(2) failure
by the Company to effect a Special Mandatory Redemption, if required, on the Special Mandatory Redemption Date;
(3) failure by the
Company for 60 days from receipt of written notice by the Trustee or the Holders of at least 25% of the principal amount of the Offered Securities Outstanding to comply with the provisions under Section 1.3(3) of this Third Supplemental
Indenture; and
(4) an event of default shall happen and be continuing with respect to any Indebtedness (other than Non-Recourse
Indebtedness) of the Company, a Guarantor or any Restricted Subsidiary under any indenture or other instrument evidencing or under which the Company, a Guarantor or any Restricted Subsidiary shall have a principal amount outstanding (such amount
with respect to original issue discount bonds or zero coupon notes, bonds or debentures or similar securities based on the accreted amount determined in accordance with United States generally accepted accounting principles and as of the date of the
most recently prepared consolidated balance sheet of the Company, a Guarantor or any Restricted Subsidiary, as the case may be) in excess of $100,000,000, and such event of default shall involve the failure to pay the principal of such Indebtedness
on the final maturity date thereof after the expiration of any applicable grace period with respect thereto, or such Indebtedness shall have been accelerated so that the same shall have become due and payable prior to the date on which the same
would otherwise have become due and payable, and such acceleration shall not be rescinded or annulled within 30 days after notice thereof shall have been given to the Company by the Trustee, or to the Company and the Trustee by the Holders of at
least 25% in aggregate principal amount of the Outstanding Offered Securities; provided, however, that:
(a) if such event
of default under such indenture or instrument shall be remedied or cured by the Company or the applicable Guarantor or waived by the requisite holders of such Indebtedness, then the Event of Default hereunder by reason thereof shall be deemed
likewise to have been thereupon remedied, cured or waived without further action upon the part of either the Trustee or any of the Holders; and
13
Third Supplemental Indenture
(b) subject to the provisions of Sections 7.01 and 7.02 of the Base
Indenture, the Trustee shall not be charged with actual knowledge of any such event of default unless written notice thereof shall have been given to a Responsible Officer of the Trustee by the Company or a Guarantor, as the case may be, by the
holder or an agent of the holder of any such Indebtedness, by the trustee then acting under any indenture or other instrument under which such default shall have occurred, or by the Holders of not less than 25% in the aggregate principal amount of
Outstanding Offered Securities.
ARTICLE II
MISCELLANEOUS
Section 2.1 Definitions.
Capitalized terms used but not defined in this Third Supplemental Indenture shall have the meanings ascribed thereto in the form of
Offered Security attached hereto as Exhibit A or in the Base Indenture.
Section 2.2 Confirmation of Indenture.
The Base Indenture, as supplemented and amended by this Third Supplemental Indenture, is in all respects ratified and confirmed, and the Base
Indenture, this Third Supplemental Indenture and all indentures supplemental thereto shall be read, taken and construed as one and the same instrument.
Section 2.3 Concerning the Trustee.
In carrying out the Trustees responsibilities hereunder, the Trustee shall have all of the rights, protections and immunities which it
possesses under the Indenture. The recitals contained in this Third Supplemental Indenture and in the Offered Securities, except the Trustees certificate of authentication, shall be taken as the statements of the Company, and the Trustee
assumes no responsibility for their correctness. The Trustee shall not be responsible for and makes no representations as to (i) the validity or sufficiency of this Third Supplemental Indenture or of the Offered Securities, (ii) the proper
authorization hereof by each Guarantor and the Company by action or otherwise, (iii) the due execution hereof by each Guarantor and the Company or (iv) the consequences of any amendment herein provided for. The Trustee shall not be
accountable for the use or application by the Company of the Offered Securities or the proceeds thereof.
Section 2.4 Governing Law.
This Third Supplemental Indenture and the Offered Securities shall be deemed to be a contract made under the internal laws of the State of New
York, and for all purposes shall be construed in accordance with the laws of said State without regard to conflicts of law principles (except for Sections 5-1401 and 5-1402 of the New York General Obligations Law) that would require the application
of any other law. This Third Supplemental Indenture is subject to the provisions of the Trust Indenture Act of 1939 that are required to be part of this Third
14
Third Supplemental Indenture
Supplemental Indenture and shall, to the extent applicable, be governed by such provisions. The application of articles 86 to 94-8 of the Luxembourg law on commercial companies dated
10 August 1915, as amended, to the Indenture and the Offered Securities is excluded.
Section 2.5 Separability.
In case any one or more of the provisions contained in this Third Supplemental Indenture or in the Offered Securities of any series shall for
any reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provisions of this Third Supplemental Indenture or of such Offered Securities, but this Third
Supplemental Indenture and such Offered Securities shall be construed as if such invalid or illegal or unenforceable provision had never been contained herein or therein.
Section 2.6 Counterparts.
This
Third Supplemental Indenture may be executed in any number of counterparts, each of which shall be an original, but such counterparts shall together constitute but one and the same instrument. The exchange of copies of this Third Supplemental
Indenture and of signature pages by facsimile or PDF transmission shall constitute effective execution and delivery of this Third Supplemental Indenture as to the parties hereto and may be used in lieu of the original Third Supplemental Indenture
for all purposes. Signatures of the parties hereto transmitted by facsimile or PDF shall be deemed to be their original signatures for all purposes.
Section 2.7 No Benefit.
Nothing in
this Third Supplemental Indenture, express or implied, shall give to any Person other than the parties hereto and their successors or assigns, and the Holders of the Offered Securities, any benefit or legal or equitable rights, remedy or claim under
this Third Supplemental Indenture or the Base Indenture.
Section 2.8 Amendments and Supplemental Indentures.
This Third Supplemental Indenture and the Offered Securities are subject to the provisions regarding supplemental indentures and amendments set
forth in Article IX of the Base Indenture, as amended by this Third Supplemental Indenture.
Section 2.9 Legal, Valid and Binding Obligation.
The Guarantors and the Company hereby represent and warrant that, assuming the due authorization, execution and delivery of this Third
Supplemental Indenture by the Trustee, this Third Supplemental Indenture is the legal, valid and binding obligation of the Guarantors and the Company enforceable against the Guarantors and the Company in accordance with its terms, subject to
bankruptcy, insolvency, reorganization and other laws of general applicability relating to or affecting the enforcement of creditors rights and to general equity principles.
[Signature Page Follows]
15
Third Supplemental Indenture
IN WITNESS WHEREOF, the parties hereto have caused this Third Supplemental Indenture to be duly
executed as of the day and year first above written.
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PENTAIR FINANCE S.A., |
as Issuer |
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By: |
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/s/ Benjamin Peric |
Name: |
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Benjamin Peric |
Title: |
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Director |
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PENTAIR PLC, as Parent
and Guarantor |
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By: |
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/s/ Christopher R. Oster |
Name: |
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Christopher R. Oster |
Title: |
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Authorized Representative |
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PENTAIR INVESTMENTS SWITZERLAND GMBH,
as Guarantor |
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By: |
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/s/ Henning Wistorf |
Name: |
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Henning Wistorf |
Title: |
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Managing Officer |
16
Third Supplemental Indenture
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U.S. BANK NATIONAL ASSOCIATION, |
as Trustee |
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By: |
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/s/ Rick Prokosch |
Name: |
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Rick Prokosch |
Title: |
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Vice President |
17
Third Supplemental Indenture
EXHIBIT A
FORM OF 4.650% NOTES
[Insert the Private Placement Legend and/or the Global Security legend, as applicable]
4.650% SENIOR NOTES DUE 2025
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No. [ ] |
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$[ ] |
CUSIP No. 709629 AP4 |
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PENTAIR FINANCE S.A.
Société anonyme
26,
boulevard Royal
L-2449 Luxembourg
R.C.S. B 166305
promises to pay to
[ ] or registered assigns, the principal sum of [ ] Dollars on September 15,
2025.
Interest Payment Dates: March 15 and September 15
Regular Record Dates: March 1 and September 1
Each holder of this Security (as defined below), by accepting the same, agrees to and shall be bound by the provisions hereof and of the
Indenture described herein, and authorizes and directs the Trustee described herein on such holders behalf to be bound by such provisions. Each holder of this Security hereby waives all notice of the acceptance of the provisions contained
herein and in the Indenture and waives reliance by such holder upon said provisions.
This Security shall not be entitled to any benefit
under the Indenture, or be valid or become obligatory for any purpose, until the Certificate of Authentication hereon shall have been signed by or on behalf of the Trustee. The provisions of this Security are continued on the reverse side hereof,
and such continued provisions shall for all purposes have the same effect as though fully set forth at this place.
[Signature Page
Follows]
A-1
IN WITNESS WHEREOF, the Company has caused this instrument to be signed in accordance with Section 2.04 of
the Base Indenture.
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PENTAIR FINANCE S.A. |
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Name: |
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Title: |
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CERTIFICATE OF AUTHENTICATION
This is one of the Securities of the series designated therein and referred to in the within-mentioned Indenture.
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U.S. BANK NATIONAL ASSOCIATION, |
as Trustee |
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By: |
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Authorized Signatory |
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Dated: |
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GUARANTEE
For value received, each of PENTAIR PLC and PENTAIR INVESTMENTS SWITZERLAND GMBH hereby absolutely, unconditionally and irrevocably guarantees
(i) to the holder of this Security the payment of principal of, premium, if any, and interest and any Additional Amounts, if any, on, the Security upon which this Guarantee is set forth in the amounts and at the time when due and payable
whether by declaration thereof, or otherwise, and interest on the overdue principal and interest, if any, of such Security, if lawful, to the holder of such Security and the Trustee on behalf of the Holders, and (ii) to the Trustee all amounts
owed to the Trustee under the Indenture, in each case in accordance with and subject to the terms and limitations of such Security and Article XV of the Base Indenture. This Guarantee shall not become effective until the Trustee or Authenticating
Agent duly executes the certificate of authentication on this Security. This Guarantee shall be governed by and construed in accordance with the laws of the State of New York, without regard to conflict of law principles thereof.
Dated:
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PENTAIR PLC |
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By: |
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Name: |
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Title: |
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PENTAIR INVESTMENTS SWITZERLAND GMBH |
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By: |
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Name: |
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Title: |
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PENTAIR FINANCE S.A.
Société anonyme
26,
boulevard Royal
L-2449 Luxembourg
R.C.S. B 166305
4.650% Senior
Notes due 2025
This security is one of a duly authorized series of debt securities of Pentair Finance S.A., a Luxembourg public
limited liability company (société anonyme) with registered office at 26, boulevard Royal, L-2449 Luxembourg, Luxembourg and registered with the Luxembourg Trade and Companies Register under number B 166305 (the
Company), issued or to be issued in one or more series under and pursuant to an Indenture for the Companys unsubordinated debt securities, dated as of September 16, 2015 (the Base Indenture), duly
executed and delivered by and among the Company, Pentair plc, an Irish public limited company (Parent), Pentair Investments Switzerland GmbH, a Switzerland limited liability company (a Guarantor and, together
with Parent, the Guarantors) and U.S. Bank National Association, a national banking association (the Trustee), as supplemented by the Third Supplemental Indenture, dated as of September 16, 2015 (the
Third Supplemental Indenture), by and among the Company, the Guarantors and the Trustee. The Base Indenture as supplemented and amended by the Third Supplemental Indenture is referred to herein as the Indenture.
By the terms of the Base Indenture, the debt securities issuable thereunder are issuable in series that may vary as to amount, date of maturity, rate of interest and in other respects as provided in the Base Indenture. This security is one of the
series designated on the face hereof (individually, a Security, and collectively, the Securities), and reference is hereby made to the Indenture for a description of the rights, limitations of rights,
obligations, duties and immunities of the Trustee, the Company, the Guarantors and the holders of this Security (the Securityholders). Capitalized terms used herein and not otherwise defined shall have the meanings given them in
the Base Indenture or in the Third Supplemental Indenture, as applicable.
1. Interest. The Company promises to pay interest
on the principal amount of this Security at an annual rate of 4.650% (the Original Interest Rate), subject to adjustment pursuant to Section 2 of this Security. The Company shall pay interest semi-annually on March 15
and September 15 of each year (each such day, an Interest Payment Date). If any Interest Payment Date, redemption date or maturity date of this Security is not a Business Day, then payment of interest or principal (and
premium, if any) shall be made on the next succeeding Business Day with the same force and effect as if made on the date such payment was due, and no interest shall accrue for the period after such date to the date of such payment on the next
succeeding Business Day. Interest on the Securities shall accrue from the most recent date to which interest has been paid or duly provided for or, if no interest has been paid, from the date of issuance; provided that, if there is no existing
Default in the payment of interest, and if this Security is authenticated between a regular record date referred to on the face hereof and the next succeeding Interest Payment Date, interest shall accrue from such next succeeding Interest Payment
Date; and provided, further, that the first Interest Payment Date shall be March 15, 2016. Interest shall be calculated on the basis of a 360-day year consisting of twelve 30-day months.
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2. Interest Rate Adjustment. The interest rate payable on this Security shall be
subject to adjustment from time to time if either Moodys or S&P (or, if applicable, a nationally recognized statistical rating organization within the meaning of Section 3(a)(62) under the Exchange Act selected by the
Company as a replacement for Moodys or S&P, or both, as the case may be (each, a Substitute Rating Agency)) downgrades (or subsequently upgrades) its rating assigned to the Securities, as set forth in this
Section 2. Each of Moodys, S&P and any Substitute Rating Agency is an Interest Rate Rating Agency, and together they are Interest Rate Rating Agencies.
If the rating of the Securities from one or both of Moodys or S&P (or, if applicable, any Substitute Rating Agency) is decreased to
a rating set forth in either of the tables set forth in this Section 2, the interest rate shall increase from the Original Interest Rate by an amount equal to the sum of the percentages per annum set forth in the following tables opposite those
ratings:
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Moodys Rating* |
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Percentage |
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Ba1 |
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0.25 |
% |
Ba2 |
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0.50 |
% |
Ba3 |
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0.75 |
% |
B1 or below |
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1.00 |
% |
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S&P Rating* |
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Percentage |
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BB+ |
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0.25 |
% |
BB |
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0.50 |
% |
BB- |
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0.75 |
% |
B+ or below |
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1.00 |
% |
* |
Including the equivalent ratings of any Substitute Rating Agency therefor. |
For purposes of
making adjustments to the interest rate payable on this Security, the following rules of interpretation shall apply:
(1)
if at any time less than two Interest Rate Rating Agencies provide a rating on the Securities for reasons not within the Companys control (i) the Company shall use commercially reasonable efforts to obtain a rating on the Securities from
a Substitute Rating Agency for purposes of determining any increase or decrease in the interest rate on this Security pursuant to the tables set forth in this Section 2, (ii) such Substitute Rating Agency shall be substituted for the last
Interest Rate Rating Agency to provide a rating on the Securities but which has since ceased to provide such rating, (iii) the relative ratings scale used by such Substitute Rating Agency to assign ratings to senior unsecured debt shall be
determined in good faith by an independent investment banking institution of national standing appointed by the Company and, for purposes of determining the applicable ratings included in the applicable table with respect to such Substitute Rating
Agency, such ratings shall be deemed to be the equivalent ratings used by Moodys or S&P, as applicable, in such table, and (iv) the interest rate payable on this Security shall
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increase or decrease, as the case may be, such that the interest rate payable equals the Original Interest Rate plus the appropriate percentage, if any, set forth opposite the rating from such
Substitute Rating Agency in the applicable table (taking into account the provisions of clause (iii) in this paragraph (1)) (plus any applicable percentage resulting from a decreased rating by the other Interest Rate Rating Agency);
(2) for so long as only one Interest Rate Rating Agency provides a rating on the Securities, any increase or decrease in the
interest rate payable on this Security necessitated by a reduction or increase in the rating by that Interest Rate Rating Agency shall be twice the applicable percentage set forth in the applicable table set forth in this Section 2;
(3) if both Interest Rate Rating Agencies cease to provide a rating of the Securities for any reason, and no Substitute Rating
Agency has provided a rating on the Securities, the interest rate shall increase to, or remain at, as the case may be, 2.00% per annum above the Original Interest Rate prior to any such adjustment;
(4) if Moodys or S&P ceases to rate the Securities or make a rating of the Securities publicly available for reasons
within the Companys control, the Company shall not be entitled to obtain a rating from a Substitute Rating Agency and the increase or decrease in the interest rate on this Security shall be determined in the manner described in this
Section 2 as if either only one or no Interest Rate Rating Agency provides a rating on the Securities, as the case may be;
(5) each interest rate adjustment required by any decrease or increase in a rating as set forth in this Section 2, whether
occasioned by the action of Moodys or S&P (or, in either case, any Substitute Rating Agency), shall be made independently of (and in addition to) any and all other interest rate adjustments occasioned by the action of the other Interest
Rate Rating Agency;
(6) in no event shall the interest rate on this Security be reduced to below the Original Interest
Rate prior to any such adjustment; and
(7) subject to paragraphs (3) and (4) of this Section 2, no
adjustment in the interest rate on this Security shall be made solely as a result of an Interest Rate Rating Agency ceasing to provide a rating of the Securities.
If at any time the interest rate on this Security has been adjusted upward and either of the Interest Rate Rating Agencies subsequently
increases its rating of the Securities, the interest rate on this Security shall again be adjusted (and decreased, if appropriate) such that the interest rate on this Security equals the Original Interest Rate prior to any such adjustment plus (if
applicable) an amount equal to the sum of the percentages per annum set forth opposite the ratings in the tables set forth in this Section 2 with respect to the ratings assigned to the Securities (or deemed assigned) at that time, all
calculated in accordance with the rules of interpretation set forth in this Section 2. If Moodys or any Substitute Rating Agency subsequently increases its rating on the Securities to Baa3 (or its equivalent if with respect to
any Substitute Rating Agency) or higher and S&P or any Substitute Rating Agency subsequently increases its rating on the Securities to
A-6
BBB- (or its equivalent if with respect to any Substitute Rating Agency) or higher, the interest rate on this Security shall be decreased to the Original Interest Rate prior to any
adjustments made pursuant to this Section 2.
Any increase or decrease in the interest rate shall take effect from the first day of
the interest period during which a rating change occurs requiring an adjustment in the interest rate. If either Interest Rate Rating Agency changes its rating of the Securities more than once during any particular interest period, the last such
change by such Interest Rate Rating Agency to occur shall control in the event of a conflict for purposes of any increase or decrease in the interest rate.
The interest rate shall permanently cease to be subject to any adjustment (notwithstanding any subsequent decrease in the ratings by either
Interest Rate Rating Agency) if the Securities becomes rated Baa1 or higher by Moodys (or its equivalent if with respect to any Substitute Rating Agency) and BBB+ or higher by S&P (or its equivalent if with respect
to any Substitute Rating Agency), in each case with a stable or positive outlook.
If the interest rate payable on this Security is
increased as set forth in this Section 2, the term interest shall be deemed to include any such additional interest unless the context otherwise requires.
3. Method of Payment. The Company shall pay interest on this Security (except defaulted interest), if any, to the persons in whose
name such Security is registered at the close of business on the regular record date referred to on the facing page of this Security for such interest installment. In the event that this Security or a portion hereof is called for redemption and the
Redemption Date is subsequent to a regular record date with respect to any Interest Payment Date and prior to such Interest Payment Date, interest on this Security shall be paid upon presentation and surrender of this Security as provided in the
Indenture. The principal of and the interest on this Security shall be payable in the coin or currency of the United States of America that at the time is legal tender for public and private debt, at the office or agency of the Company maintained
for that purpose in accordance with the Indenture.
4. Paying Agent and Registrar. Initially, U.S. Bank National Association,
the Trustee, shall act as paying agent and Security Registrar. The Company may change or appoint any paying agent or Security Registrar without notice to any Securityholder. The Guarantors, the Company or any of their Subsidiaries may act in any
such capacity.
5. Indenture. The terms of this Security include those stated in the Indenture and those made part of the
Indenture by reference to the Trust Indenture Act of 1939 (the TIA) as in effect on the date the Indenture is qualified. This Security is subject to all such terms, and Securityholders are referred to the Indenture and the TIA for
a statement of such terms. These Securities are unsecured general obligations of the Company and constitute the series designated on the face hereof as the 4.650% Senior Notes due 2025, initially limited to $250,000,000 in aggregate
principal amount.
The Company shall furnish to any Securityholder upon written request and without charge a copy of the Base Indenture
and the Third Supplemental Indenture. Requests may be made to: Pentair Finance S.A., 26, boulevard Royal, L-2449 Luxembourg, Attention: the Managing Directors.
A-7
6. Optional Redemption. This Security is subject to redemption at the option of the
Company on any date prior to the maturity date, in whole or from time to time in part, in $1,000 increments (provided that any remaining principal amount thereof shall be at least the minimum authorized denomination thereof), on written
notice given to the Securityholders thereof not less than 30 days nor more than 90 days prior to the date fixed for redemption in such notice (the Redemption Date). At any time prior to June 15, 2025, the Securities shall be
redeemable at a redemption price equal to the greater of (i) 100% of the principal amount of such Securities to be redeemed and (ii) as determined by the Quotation Agent (as defined below) and delivered to the Trustee in writing, the sum
of the present values of the remaining scheduled payments of principal and interest thereon due on any date after the Redemption Date (excluding the portion of interest that shall be accrued and unpaid to and including the Redemption Date)
discounted from their scheduled date of payment to the Redemption Date (assuming a 360-day year consisting of twelve 30-day months) at the Adjusted Redemption Treasury Rate (as defined below) plus 40 basis points, plus, in either the case of clause
(i) or clause (ii), accrued and unpaid interest, if any, thereon to, but excluding, the Redemption Date. Notwithstanding the foregoing, if this Security is redeemed on or after June 15, 2025, the Securities shall be redeemable at a
redemption price equal to 100% of the principal amount of the Securities to be redeemed, plus accrued and unpaid interest, if any, thereon to, but excluding, the Redemption Date.
This Security is also subject to redemption to the extent provided in Section 14.01 of the Indenture.
If the giving of the notice of redemption is completed as provided in the Indenture, interest on such Securities or portions of Securities
shall cease to accrue on and after the Redemption Date, unless the Company shall default in the payment of any such redemption price and accrued interest with respect to any such Security or portion thereof.
Except as otherwise expressly provided herein (including paragraph 8 herein) or in the Third Supplemental Indenture, the Company shall not be
required to make mandatory redemption or sinking fund payments with respect to this Security.
Adjusted Redemption Treasury
Rate, with respect to any Redemption Date, means the rate equal to the semiannual equivalent yield to maturity or interpolated (on a 30/360 day count basis) yield to maturity of the Comparable Redemption Treasury Issue, assuming a price
for the Comparable Redemption Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Redemption Treasury Price for such Redemption Date.
Comparable Redemption Treasury Issue means the United States Treasury security selected by the Quotation Agent as being the
most recently issued United States Treasury note or bond displayed by Bloomberg LP (or any successor service) on screens PXI through PX8 (or any other screens as may replace such screens on such service) having a maturity comparable to the remaining
term of the Securities to be redeemed.
A-8
Comparable Redemption Treasury Price, with respect to any Redemption Date,
means (i) the average of the Redemption Reference Treasury Dealer Quotations for such Redemption Date, after excluding the highest and lowest such Redemption Reference Treasury Dealer Quotations (unless there is more than one highest or lowest
quotation, in which case only one such highest and/or lowest quotation shall be excluded), or (ii) if the Quotation Agent obtains fewer than four such Redemption Reference Treasury Dealer Quotations, the average of all such Redemption Reference
Treasury Dealer Quotations.
Quotation Agent means a Redemption Reference Treasury Dealer appointed as such agent by
the Company.
Redemption Reference Treasury Dealers means four primary U.S. government securities dealers in the United
States selected by the Company.
Redemption Reference Treasury Dealer Quotations, with respect to each Redemption
Reference Treasury Dealer and any Redemption Date, means the average, as determined by the Quotation Agent, of the bid and offer prices at 11:00 a.m., New York City time, for the Comparable Redemption Treasury Issue (expressed in each case as a
percentage of its principal amount) for settlement on the Redemption Date quoted in writing to the Quotation Agent by such Redemption Reference Treasury Dealer on the third Business Day preceding such Redemption Date.
7. Change of Control Triggering Event. If a Change of Control Triggering Event occurs, unless the Company has exercised its option to
redeem this Security, it shall be required to make an offer to the holder of this Security to repurchase, at such holders election, all or a part (equal to $2,000 or an integral multiple of $1,000 in excess thereof; provided that any
remaining principal amount of this Security shall be at least the minimum authorized denomination thereof), of this Security, in cash equal to 101% of the aggregate principal amount of this Security repurchased, plus accrued and unpaid interest, if
any, to, but excluding, the date of repurchase. Within 30 days following any Change of Control Triggering Event, or at the Companys option, prior to any Change of Control, but after public announcement of the transaction that constitutes or
may constitute the Change of Control Triggering Event, a notice shall be sent to the Trustee and to each Securityholder describing in reasonable detail the transaction that constitutes or may constitute the Change of Control Triggering Event and
offering to repurchase this Security on the date specified in the notice, which date shall, except as described in the immediately following sentence and other than as required by law, be no earlier than 30 days and no later than 60 days from the
date such notice is sent. The notice shall, if sent prior to the date of consummation of the Change of Control, state that the offer to purchase is conditioned on the Change of Control Triggering Event occurring on or prior to the date of
repurchase.
8. Special Mandatory Redemption. If Parent does not consummate the ERICO Acquisition on or prior to
December 31, 2015, or the ERICO Merger Agreement is terminated any time prior to such date (without replacement thereof) other than as a result of consummating the ERICO Acquisition, then the Company shall be required to redeem this Security on
the Special Mandatory Redemption Date at a redemption price equal to 101% of the principal amount of this Security, plus accrued and unpaid interest, if any, to, but excluding, the Special
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Mandatory Redemption Date. Notwithstanding the foregoing, installments of interest on this Security that are due and payable on Interest Payment Dates falling on or prior to the Special Mandatory
Redemption Date shall be payable on such Interest Payment Dates to the registered Securityholders as of the close of business on the relevant regular record dates. The Company shall cause the notice of a Special Mandatory Redemption to be sent, with
a copy to the Trustee, within five Business Days after the occurrence of the event triggering the obligation to effectuate the Special Mandatory Redemption to each Securityholder at its registered address. On or before the Special Mandatory
Redemption Date, the Company shall deposit with the Trustee or a paying agent funds sufficient to pay the special mandatory redemption price of the Securities to be redeemed on the Special Mandatory Redemption Date. If funds sufficient to pay the
special mandatory redemption price of the Securities to be redeemed on the Special Mandatory Redemption Date are deposited with the Trustee or a paying agent on or before such Special Mandatory Redemption Date, and any applicable conditions set
forth in the Indenture are satisfied, interest shall cease to accrue on the Securities on and after such Special Mandatory Redemption Date.
9. Denominations, Transfer, Exchange. The Securities are in registered form without coupons in the denominations of $2,000 or any
integral multiple of $1,000 in excess thereof. The transfer of Securities may be registered and Securities may be exchanged as provided in the Indenture. The Securities may be presented for exchange or for registration of transfer (duly endorsed or
with the form of transfer endorsed thereon duly executed if so required by the Company or the Security Registrar) at the office of the Security Registrar or at the office of any transfer agent designated by the Company for such purpose. No service
charge shall be made for any registration of transfer or exchange, but a Securityholder may be required to pay any applicable taxes or other governmental charges. If the Securities are to be redeemed, the Company shall not be required to:
(i) issue, register the transfer of, or exchange any Security during a period beginning at the opening of business 15 days before the day a notice of redemption is sent of less than all of the Outstanding Securities of the same series and
ending at the close of business on the day such notice of redemption is sent; (ii) register the transfer of or exchange any Security of any series or portions thereof selected for redemption, in whole or in part, except the unredeemed portion
of any such Security being redeemed in part; nor (iii) register the transfer of or exchange a Security of any series between the applicable regular record date and the next succeeding Interest Payment Date.
10. Persons Deemed Owners. The registered Securityholder may be treated as its owner for all purposes.
11. Repayment to the Guarantors or the Company. Any funds or Governmental Obligations deposited with any paying agent or the Trustee,
or then held by the Guarantors or the Company, in trust for payment of principal of, premium, if any, or interest on the Securities that are not applied but remain unclaimed by the Securityholders for at least one year after the date upon which the
principal of, premium, if any, or interest on such Securities shall have respectively become due and payable, shall be repaid to the Guarantors or the Company, as applicable, or (if then held by the Guarantors or the Company) shall be discharged
from such trust. After return to the Company or the Guarantors, Securityholders entitled to the money or securities must look to the Company or the Guarantors, as applicable, for payment as unsecured general creditors.
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12. Amendments, Supplements and Waivers. The Base Indenture contains provisions
permitting the Company, the Guarantors and the Trustee, with the consent of the holders of not less than a majority in aggregate principal amount of the securities of each series at the time Outstanding affected by such supplemental indenture or
indentures to enter into supplemental indentures for the purpose of adding, changing or eliminating any provisions of the Base Indenture or any supplemental indenture or of modifying in any manner not covered elsewhere in the Base Indenture the
rights of the holders of the securities of such series; provided, however, that no such supplemental indenture, without the consent of the holders of each security then Outstanding and affected thereby, shall: (i) extend a fixed
maturity of or any installment of principal of any securities of any series or reduce the principal amount thereof, or reduce the amount of principal of any original issue discount security that would be due and payable upon declaration of
acceleration of the maturity thereof; (ii) reduce the rate of or extend the time for payment of interest of any security of any series; (iii) reduce the premium payable upon the redemption of any security; (iv) make any security
payable in Currency other than that stated in the security; (v) impair the right to institute suit for the enforcement of any payment on or after the fixed maturity thereof (or in the case or redemption, on or after the redemption date);
(vi) modify any subordination provisions applicable to this Security or the guarantee of this Security in a manner adverse in any material respect to the holder hereof; or (vii) reduce the percentage of securities, the holders of which are
required to consent to any such supplemental indenture or indentures. In addition, without the consent of each of the Securityholders, the Company and the Guarantors may not amend the provisions of Section 1.4 of the Third Supplemental
Indenture or the corresponding provisions of this Security.
The Base Indenture also contains provisions permitting the holders of not
less than a majority in aggregate principal amount of the Outstanding securities of each series affected thereby, on behalf of all of the holders of the securities of such series, to waive any past default under the Base Indenture, and its
consequences, except a default in the payment of the principal of, premium, if any, or interest on, any of the securities of such series as and when the same shall become due by the terms of such securities.
Any such consent or waiver by the registered Securityholder shall be conclusive and binding upon such Securityholder and upon all future
Securityholders and owners of this Security and of any Security issued in exchange for this Security or in place hereof (whether by registration of transfer or otherwise), irrespective of whether or not any notation of such consent or waiver is made
upon this Security.
13. Defaults and Remedies. If an Event of Default with respect to the securities of a series issued
pursuant to the Base Indenture occurs and is continuing, the Trustee or the holders of at least 25% in aggregate principal amount of the securities of such series then Outstanding, by notice in writing to the Company and the Guarantors (and to the
Trustee if notice is given by such holders), may declare the unpaid principal of, premium, if any, and accrued interest, if any, due and payable immediately. Subject to the terms of the Indenture, if an Event of Default under the Indenture shall
occur and be continuing, the Trustee shall be under no obligation to exercise any of its rights or powers under the Indenture at the request or direction of any of the holders, unless such holders have offered the Trustee indemnity satisfactory to
it. Upon satisfaction of certain conditions set forth in the Indenture, the holders of a majority in principal amount of the Outstanding securities of a series issued pursuant to the Base Indenture shall have the right to
A-11
direct the time, method and place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred on the Trustee, with respect to the securities
of such series.
14. Trustee, Paying Agent and Security Registrar May Hold Securities. The Trustee, subject to certain limitations
imposed by the TIA, or any paying agent or Security Registrar, in its individual or any other capacity, may become the owner or pledgee of Securities with the same rights it would have if it were not Trustee, paying agent or Security Registrar.
15. No Recourse Against Others. No recourse under or upon any obligation, covenant or agreement of the Indenture, or of any
Security, or for any claim based thereon or otherwise in respect hereof or thereof, shall be had against any incorporator, stockholder, officer or director, past, present or future as such, of the Guarantors or the Company or of any predecessor or
successor Person, either directly or through the Guarantors or the Company or any such predecessor or successor Person, whether by virtue of any constitution, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise;
it being expressly understood that the Indenture and the obligations issued hereunder and thereunder are solely corporate obligations, and that no such personal liability whatever shall attach to, or is or shall be incurred by, the incorporators,
organizers, shareholders, partners, members, officers, directors, managers or agents as such, of the Guarantors or the Company or of any predecessor or successor Person, or any of them, because of the creation of the indebtedness authorized by the
Indenture, or under or by reason of the obligations, covenants or agreements contained in the Indenture or in the Securities or implied therefrom; and that any and all such personal liability of every name and nature, either at common law or in
equity or by constitution or statute, of, and any and all such rights and claims against, every such incorporator, organizer, shareholder, partner, member, officer, director, manager or agent as such, because of the creation of the indebtedness
authorized by the Indenture, or under or by reason of the obligations, covenants or agreements contained in the Indenture or in the Securities or implied therefrom, are hereby expressly waived and released as a condition of, and as a consideration
for, the acceptance of the Securities.
16. Discharge of Indenture. The Indenture contains certain provisions pertaining to
defeasance and discharge, which provisions shall for all purposes have the same effect as if set forth herein.
17.
Authentication. This Security shall not be valid until the Trustee signs the certificate of authentication attached to the other side of this Security.
18. Guarantees. All payments by the Company under the Indenture and this Security are fully and unconditionally guaranteed to the
Securityholder by the Guarantors, as provided in the related Guarantee and the Indenture.
19. Additional Amounts. The Company and
the Guarantors are obligated to pay Additional Amounts on this Security to the extent provided in Article XIV of the Indenture.
20.
Abbreviations. Customary abbreviations may be used in the name of a Securityholder or an assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (= joint tenants with right of survivorship and
not as tenants in common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts to Minors Act).
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21. Governing Law. The Base Indenture, the Third Supplemental Indenture and this
Security (and the Guarantee hereon) shall be deemed to be a contract made under the internal laws of the State of New York, and for all purposes shall be construed in accordance with the laws of said State without regard to conflicts of laws
principles (except for Sections 5-1401 and 5-1402 of the New York General Obligations Law) that would require the application of any other law. The Base Indenture, the Third Supplemental Indenture and this Security (and the Guarantee hereon) are
subject to the provisions of the TIA that are required to be part of the Base Indenture, the Third Supplemental Indenture and this Security (and the Guarantee hereon) and shall, to the extent applicable, be governed by such provisions. The
application of articles 86 to 94-8 of the Luxembourg law on commercial companies dated 10 August 1915, as amended, to the Base Indenture, the Third Supplemental Indenture and this Security (and the Guarantee hereon) is excluded.
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ASSIGNMENT FORM
To assign this Security, fill in the form below: (I) or (we) assign and transfer this Security to
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(Insert
assignees soc. sec. or tax I.D. no.) |
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(Print or type assignees name, address and zip code) |
and irrevocably appoint
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agent to transfer this Security on the books of the Company. The agent may substitute another to act for him.
Date:
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Your Signature: |
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(Sign exactly as your name appears on the face of this Security) |
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ELECTION FORM
TO BE COMPLETED ONLY IF THE SECURITYHOLDER
ELECTS TO ACCEPT THE CHANGE OF CONTROL OFFER
The undersigned
hereby irrevocably requests and instructs the Company to repurchase the within Security (or the portion thereof specified below), pursuant to its terms, on the Change of Control Payment Date specified in the Change of Control Offer, for the Change
of Control Payment specified in the within Security, to the undersigned,
, at
(please print or typewrite name, address and telephone number of the undersigned).
For this election to accept the Change of Control
Offer to be effective, the undersigned must (A) deliver, to the address of the paying agent set forth below or at such other place or places of which the Company shall from time to time notify the Securityholder, either (i) the Security
with this Election Form duly completed, or (ii) a telegram, telex, facsimile transmission or a letter from a member of a national securities exchange or the Financial Industry Regulatory Authority, Inc. or a commercial bank or a
trust company in the United States setting forth (a) the name of the Securityholder, (b) the principal amount of the Security, (c) the principal amount of the Security to be repurchased, (d) the certificate number or description
of the tenor and terms of the Security, (e) a statement that the option to elect repurchase is being exercised, and (f) a guarantee stating that the Security to be repurchased, together with this Election Form duly completed,
will be received by the paying agent at least five Business Days prior to the Change of Control Payment Date or (B) otherwise comply with alternative instructions in accordance with the procedures of the depositary. The address of the paying
agent is 60 Livingston Avenue, St. Paul MN 55107; Attention: Paying Agent - Unisys.
If less than the entire principal amount of the
within Security is to be repurchased, specify the portion thereof (which principal amount must be $2,000 or an integral multiple of $1,000 in excess thereof; provided that any remaining principal amount shall be at least the minimum authorized
denomination thereof) which the Securityholder elects to have repurchased: $ .
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Title: |
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A-15
Exhibit 5.1
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ATTORNEYS AT LAW |
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777 East Wisconsin Avenue |
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Milwaukee, WI 53202-5306 |
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414.271.2400 TEL |
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414.297.4900 FAX |
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www.foley.com |
September 16, 2015
Pentair plc
P.O. Box 471, Sharp Street
Walkden, Manchester, M28 8BU
United Kingdom
Pentair Finance S.A.
26, boulevard Royal
L-2449
Luxembourg
Pentair Investments Switzerland GmbH
Freier Platz 10
8200
Schaffhausen, Switzerland
Ladies and Gentlemen:
We have acted as counsel
for Pentair Finance S.A., a Luxembourg public limited liability company (the Issuer), Pentair Investments Switzerland GmbH, a Switzerland limited liability company (Pentair Investments), and Pentair plc, an Irish public
limited company (Pentair and, together with Pentair Investments, the Guarantors), in connection with the preparation of a Registration Statement on Form S-3 (Registration No. 333-204066) (the Registration
Statement), including the prospectus constituting a part thereof, dated May 11, 2015 and the final supplement to the prospectus, dated September 9, 2015 (collectively, the Prospectus), filed by the Issuer and the
Guarantors with the Securities and Exchange Commission (the SEC) under the Securities Act of 1933, as amended (the Securities Act), relating to the issuance and sale by the Issuer in the manner set forth in the Registration
Statement and the Prospectus of $500,000,000 aggregate principal amount of the Issuers 2.900% Senior Notes due 2018, $400,000,000 aggregate principal amount of the Issuers 3.625% Senior Notes due 2020 and $250,000,000 aggregate principal
amount of the Issuers 4.650% Senior Notes due 2025 (collectively, the Notes). The Notes are fully and unconditionally guaranteed as to the due and punctual payment of the principal of, premium, if any, and interest and any
additional amounts, if any, on the Notes when and as the same shall become due and payable, whether at maturity, upon redemption or otherwise, by the Guarantors (the Guarantees). The Notes will be issued under the Indenture, dated
September 16, 2015 (the Base Indenture), among the Issuer, the Guarantors, and U.S. Bank National Association, as trustee (the Trustee), and the First Supplemental Indenture, the Second Supplemental Indenture and Third
Supplemental Indenture, each dated September 16, 2015 (collectively the Supplemental Indentures and, together with the Base Indenture, the Indenture), among the Issuer, the Guarantors and the Trustee.
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BOSTON BRUSSELS
CHICAGO DETROIT |
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JACKSONVILLE LOS ANGELES MADISON
MIAMI |
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MILWAUKEE NEW YORK ORLANDO
SACRAMENTO |
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SAN DIEGO SAN FRANCISCO SHANGHAI
SILICON VALLEY |
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TALLAHASSEE TAMPA TOKYO
WASHINGTON, D.C. |
Pentair plc
Pentair Finance
S.A.
Pentair Investments Switzerland GmbH
September 16,
2015
Page
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In connection with our opinion, we have examined: (i) the Registration Statement,
including the Prospectus, and the exhibits (including those incorporated by reference) constituting a part of the Registration Statement; (ii) the Indenture; (iii) the forms of the Notes and the Guarantees; and (iv) such other
proceedings, documents and records as we have deemed necessary to enable us to render this opinion.
In our examination of the
above-referenced documents, we have assumed the genuineness of all signatures, the authenticity of all documents, certificates and instruments submitted to us as originals and the conformity with the originals of all documents submitted to us as
copies. We have also assumed that (i) the Trustee is duly organized, validly existing and in good standing under the laws of its jurisdiction of organization, and is duly qualified to engage in the activities contemplated by the Indenture;
(ii) the Indenture has been duly authorized, executed and delivered by, and represents the valid and binding obligation of, the Trustee, enforceable against the Trustee in accordance with its terms, (iii) the Company and Guarantors are
validly existing with power and authority to execute and deliver the Indenture, Notes and the Guarantees; (iv) the Indenture and Notes are duly authorized, executed and delivered by the Issuer in accordance with applicable Luxembourg law;
(v) the Indenture and Guarantees are duly authorized, executed and delivered by Pentair and Pentair Investments in accordance with applicable Irish or Swiss law, respectively; and (vi) the Notes and the Guarantees have been duly
authenticated by the Trustee in accordance with the Indenture.
Based upon and subject to the foregoing and the other matters set forth
herein, and having regard for such legal considerations as we deem relevant, we are of the opinion that:
1. The Notes are legally issued
and valid and binding obligations of the Issuer, enforceable against the Issuer in accordance with their terms.
2. The Guarantees are
legally issued and valid and binding obligations of the Guarantors, enforceable against the Guarantors in accordance with their terms.
The opinions above are each subject to (i) the effect of any bankruptcy, insolvency, reorganization, moratorium, arrangement or similar
laws affecting the rights and remedies of creditors generally, including without limitation the effect of statutory or other laws regarding fraudulent transfers or preferential transfers and (ii) general principles of equity, including
without limitation concepts of materiality, reasonableness, good faith and fair dealing and the possible unavailability of specific performance, injunctive relief or other equitable remedies regardless of whether enforceability is considered in a
proceeding in equity or at law.
Pentair plc
Pentair Finance
S.A.
Pentair Investments Switzerland GmbH
September 16,
2015
Page
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We express no opinion as to the laws of any jurisdiction other than the State of New York and
the federal laws of the United States.
We hereby consent to the deemed incorporation by reference of this opinion into the Registration
Statement and the Prospectus and to the references to our firm therein. In giving this consent, we do not admit that we are experts within the meaning of Section 11 of the Securities Act or within the category of persons whose
consent is required by Section 7 of the Securities Act.
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Very truly yours, |
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/s/ Foley & Lardner LLP |
Exhibit 5.2
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Allen & Overy
société en commandite simple, inscrite au
barreau de Luxembourg 33 avenue J.F. Kennedy L-1855
Luxembourg Boîte postale 5017 L-1050 Luxembourg
Tel +352 4444 55 1 Fax +352 4444 55 557
frank.mausen@allenovery.com |
Pentair Finance S.A.
26,
boulevard Royal
L-2449 Luxembourg
(the
Addressee)
Our ref 0106257-0000001 LU:9578715.3
Luxembourg, 16 September 2015
Pentair Finance S.A.
Registration statement on form S-3
Dear Sirs,
1. |
We have acted as legal advisers in the Grand Duchy of Luxembourg (Luxembourg) to Pentair Finance S.A. (formerly Tyco Flow Control International Finance S.A.), a public limited liability company
(société anonyme), having its registered office at 26, boulevard Royal, L-2449 Luxembourg and registered with the Luxembourg trade and companies register (Registre de commerce et des sociétés, Luxembourg)
(the Register) under number B 166305 (the Company). |
This legal opinion is issued in connection with the
preparation of a Registration Statement on Form S-3 (Registration No. 333-204066) (the Registration Statement), including the prospectus constituting a part thereof, dated 11 May
2015 and the final supplement to the prospectus, dated 9 September 2015 (collectively, the Prospectus), filed by the Company, Pentair plc, an Irish public limited company, and Pentair Investments Switzerland GmbH, a Swiss Gesellschaft
mit beschränkter Haftung (Pentair Investments and, together with Pentair Plc, the Guarantors) with the Securities and Exchange Commission (the SEC) under the Securities Act of 1933, as amended (the Securities
Act), relating to the issuance and sale by Company in the manner set forth in the Registration Statement and the Prospectus of USD 500,000,000 aggregate principal amount of the Companys 2.900% Senior Notes due 2018, USD 400,000,000
aggregate principal amount of the Companys 3.625% Senior Notes due 2020 and USD 250,000,000 aggregate principal amount of the Companys 4.650% Senior Notes due 2025 (collectively, the Notes). The Notes are fully and unconditionally
guaranteed as to the due and punctual payment of the principal of, premium, if any, and interest and any additional amounts, if any, on the Notes when and as the same shall become due and payable, whether at maturity, upon redemption or otherwise,
by the Guarantors. The Notes will be issued pursuant to an indenture dated 16 September 2015 (the Base Indenture) and made between the Company, the Guarantors and U.S. Bank National Association, as trustee, as amended by supplemental
indentures dated 16 September 2015 (the Supplemental Indentures and, together with the Base Indenture, the Indenture).
Allen & Overy,
société en commandite simple, is an affiliated office of Allen & Overy LLP. Allen & Overy LLP or an affiliated undertaking has an office in each of: Abu Dhabi, Amsterdam, Antwerp, Bangkok, Barcelona, Beijing, Belfast,
Bratislava, Brussels, Bucharest (associated office), Budapest, Casablanca, Doha, Dubai, Düsseldorf, Frankfurt, Hamburg, Hanoi, Ho Chi Minh City, Hong Kong, Istanbul, Jakarta (associated office), Johannesburg, London, Luxembourg, Madrid, Milan,
Moscow, Munich, New York, Paris, Perth, Prague, Riyadh (associated office), Rome, São Paulo, Séoul, Shanghai, Singapore, Sydney, Tokyo, Toronto, Warsaw, Washington, D.C. and Yangon.
We have examined, to the exclusion of any other document, copies of the documents listed
below:
2.1 |
an e-mailed scanned copy of the restated articles of association (statuts coordonnés) of the Company in a version dated 28 September 2012 (the Articles); |
2.2 |
an electronic copy of a negative certificate (certificat négatif) issued by the Register in respect of the Company dated 16 September 2015 stating that on the day immediately prior to the date of
issuance of the negative certificate, there were no records at the Register of any court order regarding, amongst others, a (i) bankruptcy adjudication against the Company, (ii) reprieve from payment (sursis de paiement),
(iii) controlled management (gestion contrôlée) or (iv) composition with creditors (concordat préventif de la faillite) (the Certificate); |
2.3 |
an e-mailed scanned copy of the resolutions taken by the board of directors of the Company on 7 May 2015 (the May Resolutions); |
2.4 |
an e-mailed scanned copy of the resolutions taken by the board of directors of the Company on 28 July 2015 (the July Resolutions and together with the May Resolutions, the Resolutions);
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2.5 |
an electronic copy of the Registration Statement, including the Prospectus; |
2.6 |
an e-mailed scanned signed copy of the Indenture; and |
2.7 |
e-mailed scanned signed copies of the global notes representing the Notes dated 16 September 2015. |
The
documents listed in paragraphs 2.6 and 2.7 above are herein referred to as the Opinion Documents. The term Opinion Documents includes, for the purposes of paragraphs 3. and 5. below, any document in connection therewith.
Unless otherwise provided herein, terms and expressions shall have the meaning ascribed to them in the Opinion Documents.
In giving this legal opinion, we have assumed with your consent, and we have not verified
independently:
3.1 |
the genuineness of all signatures, stamps and seals, the completeness and conformity to the originals of all the documents submitted to us as certified, photostatic, faxed, scanned or e-mailed copies or specimens and
the authenticity of the originals of such documents and that the individuals purported to have signed, have in fact signed (and had the general legal capacity to sign) these documents; |
3.2 |
the due authorisation, execution and delivery of the Opinion Documents (as the case may be) by all the parties thereto (other than the Company) as well as the capacity, power, authority and legal right of all the
parties thereto (other than the Company) to enter into, execute, deliver and perform their respective obligations thereunder, and the compliance with all internal authorisation procedures by each party (other than the Company) for the execution by
it of the Opinion Documents to which it is expressed to be a party; |
3.3 |
that all factual matters and statements relied upon or assumed herein were, are and will be (as the case may be) true, complete and accurate on the date of execution of the Opinion Documents; |
3.4 |
that all authorisations, approvals and consents under any applicable law (other than Luxembourg law to the extent opined upon herein) which may be required in connection with the execution, delivery and performance of
the Indenture and the issue of the Notes have been or will be obtained; |
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3.5 |
the due compliance with all matters (including without limitation, the obtaining of necessary consents and approvals and the making of necessary filings and registrations) required in connection with the Indenture and
the Notes to render them enforceable in all relevant jurisdictions (other than Luxembourg to the extent opined upon herein); |
3.6 |
that the place of the central administration (siège de ladministration centrale), the principal place of business (principal établissement) and the centre of main interests (as referred
to in Council Regulation (EC) No 1346/2000 of 29 May 2000 on insolvency proceedings, as amended (the EU Insolvency Regulation)) of the Company are located at the place of its registered office (siège statutaire) in
Luxembourg and that the Company has no establishment (as such term is defined in the EU Insolvency Regulation) outside Luxembourg; |
3.7 |
that the Opinion Documents are entered into and performed by the parties thereto in good faith and that there are no provisions of the laws of any jurisdiction outside Luxembourg which would adversely affect, or
otherwise have any negative impact on, the opinions expressed in this legal opinion; |
3.8 |
that all the parties to the Indenture (other than the Company) are companies duly organised, incorporated and existing in accordance with the laws of the jurisdiction of their respective incorporation and/or their
registered office and/or the place of effective management, having a corporate existence; that in respect of all the parties to the Indenture (other than the Company), no steps have been taken pursuant to any insolvency, bankruptcy, liquidation or
equivalent or analogous proceedings to appoint an administrator, bankruptcy receiver, insolvency officer or liquidator over the respective parties or their assets and that no voluntary or judicial winding-up or liquidation of such parties has been
resolved or become effective at the date hereof; |
3.9 |
that the Resolutions have not been amended, rescinded, revoked or declared void and that the meetings of the board of directors of the Company (as referred to in paragraphs 2.3 and 2.4 above) have been duly convened and
validly held and included a proper discussion and deliberation in respect of all the items of the agendas of the meetings; |
3.10 |
that the Resolutions will remain in full for and effect and will not been amended, rescinded, revoked or declared void as long as Notes are been issued by the Company; |
3.11 |
that the Opinion Documents are legally valid, binding and enforceable under their governing laws (other than Luxembourg law but only to the extent opined herein), that the choices of such governing laws and of the
jurisdiction clauses are valid (as a matter of such governing law and all other applicable laws (other than Luxembourg law to the extent opined upon herein)) as the choice of the governing law and the submission to the jurisdiction of the chosen
courts for the Opinion Documents; |
3.12 |
that the Articles have not been modified since the date referred to in paragraph 2.1 above; and |
3.13 |
that the entry into and performance of the Indenture and the issue of the Notes are for the corporate benefit (intérêt social) of the Company. |
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Based upon, and subject to, the assumptions made above and the qualifications set out below
and subject to any matters not disclosed to us, we are of the opinion that, under the laws of Luxembourg in effect, as construed and applied by the Luxembourg courts in published Luxembourg court decisions, on the date hereof:
The Company is a public limited liability company (société anonyme) formed
for an unlimited duration and legally existing under the laws of Luxembourg.
The Company has the corporate power and authority to enter into and perform
the obligations under the Indenture and the Notes.
The Indenture and the Notes have been duly authorised, executed and delivered on
behalf of the Company.
The above opinions are subject to the following qualifications:
5.1 |
The opinion expressed herein is subject to, and may be affected or limited by, the provisions of any applicable bankruptcy (faillite), insolvency, liquidation, reprieve from payment (sursis de paiement),
controlled management (gestion contrôlée), composition with creditors (concordat préventif de la faillite), reorganisation proceedings or similar Luxembourg or foreign law proceedings or regimes affecting the rights
of creditors generally. |
5.2 |
We express no tax opinion whatsoever in respect of the Company or the tax consequences of the transactions contemplated by the Opinion Documents. |
5.3 |
We express no opinion whatsoever on matters of fact or on matters other than those expressly set forth in this legal opinion, and no opinion is, or may be, implied or inferred therefrom. |
5.4 |
We express no opinion whatsoever on the legal validity and enforceability of the Opinion Documents. |
5.5 |
A search at the Register is not capable of conclusively revealing whether a (and the Certificate does not constitute conclusive evidence that no) winding-up resolution or petition, or an order adjudicating or declaring
a, or a petition or filing for, bankruptcy or reprieve from payment (sursis de paiement), controlled management (gestion contrôlée), composition with creditors (concordat préventif de la faillite) or judicial
liquidation (liquidation judiciaire) or similar action has been adopted or made. |
5.6 |
The corporate documents of, and relevant court orders affecting, a Luxembourg company (including, but not limited to, the notice of a winding-up order or resolution, notice of the appointment of a receiver or similar
officer) may not be held at the Register immediately and there is generally a delay in the relevant document appearing on the files regarding the company concerned. Furthermore, it cannot be ruled out that the required filing of documents has not
occurred or that documents filed with the Register may have been mislaid or lost. In accordance with Luxembourg company law, changes or amendments to corporate documents to be filed at the Register will be effective (opposable)
vis-à-vis third parties only as of the day of their publication in the Official Gazette unless the company proves that the relevant third parties had prior knowledge thereof. |
6. |
This legal opinion is as of this date and we undertake no obligation to update it or advise of changes hereafter occurring. We express no opinion as to any matters other than those expressly set forth herein, and
no opinion is, or may be, implied or inferred herefrom. We express no opinion on any economic, financial or statistical information (including formulas determining payments to be made) contained in the Opinion Documents (or any document in
connection therewith). |
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7. |
This legal opinion is given on the express basis, accepted by each person who is entitled to rely on it, that this legal opinion and all rights, obligations or liability in relation to it are governed by, and
shall be construed in accordance with, Luxembourg law and that any action or claim in relation to it can be brought exclusively before the courts of Luxembourg. |
8. |
Any Addressee who is entitled to, and does, rely on this opinion agrees, by so relying, that, to the fullest extent permitted by law and regulation (and except in the case of wilful misconduct or fraud) there is
no assumption of personal duty of care by, and such person will not bring any claim against, any individual who is a partner of, member of, employee of or consultant to Allen & Overy, société en commandite simple,
Allen & Overy LLP or any other member of the group of Allen & Overy undertakings and that such person will instead confine any claim to Allen & Overy, société en commandite simple, Allen &
Overy LLP or any other member of the group of Allen & Overy undertakings (and for this purpose claim means (save only where law and regulation applies otherwise) any claim, whether in contract, tort (including negligence), for
breach of statutory duty, or otherwise). |
Luxembourg legal concepts are expressed in English terms and not in their original
French or German terms. The concepts concerned may not be identical to the concepts described by the same English terms as they exist under the laws of other jurisdictions. It should be noted that there are always irreconcilable differences between
languages making it impossible to guarantee a totally accurate translation or interpretation. In particular, there are always some legal concepts which exist in one jurisdiction and not in another, and in those cases it is bound to be difficult to
provide a completely satisfactory translation or interpretation because the vocabulary is missing from the language. We accept no responsibility for omissions or inaccuracies to the extent that they are attributable to such factors.
This legal opinion is given to you in connection with the registration of the Notes with the SEC. We hereby consent to the inclusion of this legal opinion as
an exhibit to the Registration Statement and the reference to our firm under the caption Legal Matters in the Prospectus which is filed as part of the Registration Statement. In giving this consent, we do not thereby admit that we are in
a category of person whose consent is required under Section 7 of the Securities Act.
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Yours faithfully, |
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/s/ Frank Mausen |
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Allen & Overy |
Frank Mausen* |
Partner |
Avocat à la Cour |
* |
This document is signed on behalf of Allen & Overy, a société en commandite simple, registered on list V of the Luxembourg bar. The individual signing this document is a qualified lawyer
representing this entity. |
5
Exhibit 5.3
SEC OPINION
16 September 2015
Pentair plc
Arthur Cox Building
Earlsfort
Terrace
Dublin 2
Ireland
Re: |
Pentair plc (the Company) incorporated in Ireland under registered number 536025 |
Dear Sirs,
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1.1 |
We are acting as Irish counsel to Pentair plc, registered number 536025, a public company limited by shares, incorporated under the laws of Ireland, with its registered office at Arthur Cox Building, Earlsfort Terrace,
Dublin 2 (the Company), in connection with the registration statement on Form S-3 (Registration No. 333-204066) (the Registration Statement) including the prospectus constituting a part thereof, dated
May 11, 2015 and the final supplement to the prospectus, dated September 9, 2015 (collectively, the Prospectus), filed by Pentair Finance S.A. (the Issuer), the Company and Pentair Investments
Switzerland GmbH (Pentair Investments) with the Securities and Exchange Commission (the SEC) under the Securities Act of 1933, as amended (the Securities Act), relating to the issuance and
sale by the Issuer in the manner set forth in the Registration Statement and the Prospectus of $500,000,000 aggregate principal amount of the Issuers 2.900% Senior Notes due 2018, $400,000,000 aggregate principal amount of the Issuers
3.625% Senior Notes due 2020 and $250,000,000 aggregate principal amount of the Issuers 4.650% Senior Notes due 2020 (collectively, the Notes). The Notes are fully and unconditionally guaranteed as to the due and punctual
payment of the principal of, premium, if any, and interest and any additional amounts, if any, on the Notes when and as the same shall become due and payable, whether at maturity, upon redemption or otherwise, by the Company (the
Guarantees) and Pentair Investments. The Notes will be issued under the Indenture, dated September 16, 2015 (the Base Indenture), among the Issuer, the Company, Pentair Investments, and U.S. Bank National
Association, as trustee (the Trustee), and the First Supplemental Indenture, the Second Supplemental Indenture and Third Supplemental Indenture, each dated September 16, 2015 (collectively, the Supplemental
Indentures and, together with the Base Indenture, the Indenture) between the Issuer, the Company, Pentair Investments, and the Trustee. |
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1.2 |
This Opinion is confined to and given in all respects on the basis of the laws of Ireland in force as at the date of this Opinion as currently applied by the courts of Ireland. We have made no investigations of and we
express no opinion as to the laws of any other jurisdiction or the effect thereof. In particular, we express no opinion on the laws of the European Union as they affect any jurisdiction other than Ireland. We have assumed without investigation that
insofar as the laws of any jurisdiction other than Ireland are relevant, such laws do not prohibit and are not inconsistent with any of the obligations or rights expressed in the Documents (as defined in paragraph 1.3) or the transactions
contemplated thereby. |
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1.3 |
This Opinion is also strictly confined to: |
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(a) |
the matters expressly stated herein at paragraph 2 below and is not to be read as extending by implication or otherwise to any other matter; |
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(b) |
the documents listed in the Schedule to this Opinion (the Documents); and |
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(c) |
the searches listed at paragraph 1.6 below. |
We express no opinion, and make no representation
or warranty, as to any matter of fact or in respect of any documents which may exist in relation to the Guarantees, other than the Documents.
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1.4 |
In giving this opinion, we have relied upon the Corporate Certificate (as defined in the Schedule to this Opinion), the Searches (as defined below) and we give this opinion expressly on the terms that no further
investigation or diligence in respect of any matter referred to in the Corporate Certificate or the Searches is required of us. |
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1.5 |
For the purpose of giving this Opinion, we have examined copies sent to us by email in pdf or other electronic format of the Documents. |
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1.6 |
For the purpose of giving this Opinion, we have caused to be made the following legal searches against the Company on 15 September 2015 (together the Searches): |
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(a) |
on the file of the Company maintained by the Irish Registrar of Companies in Dublin for returns of allotments, special resolutions amending the memorandum and articles of association of the Company, mortgages,
debentures or similar charges or notices thereof, notice of the appointment of directors and secretary of the Company and for the appointment of any receiver, examiner or liquidator; |
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(b) |
in the Judgments Office of the High Court for unsatisfied judgments, orders, decrees and the like for the twelve years immediately preceding the date of the search; and |
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(c) |
in the Central Office of the High Court in Dublin for any proceedings and petitions filed in respect of the Company. |
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1.7 |
This Opinion is governed by and is to be construed in accordance with the laws of Ireland as interpreted by the courts of Ireland at the date hereof. This Opinion speaks only as of its date. |
Subject to the assumptions and qualifications set out in this Opinion and to
any matters not disclosed to us, we are of the opinion that:
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2.1 |
The Company is a public company limited by shares, is duly incorporated and validly existing under the laws of Ireland and has the requisite corporate power and authority to execute and deliver the Indenture and the
Guarantees. |
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2.2 |
The Company has duly authorized, executed and delivered the Indenture and the Guarantees. |
For the purpose of giving this Opinion, we assume the following without any
responsibility on our part if any assumption proves to have been untrue as we have not verified independently any assumption:
Authenticity and bona fides
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3.1 |
the completeness and authenticity of all documents submitted to us as originals or copies of originals and (in the case of copies) conformity to the originals of copy documents and the genuineness of all signatories,
stamps and seals thereon; |
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3.2 |
where incomplete Documents have been submitted to us or signature pages only have been supplied to us for the purposes of issuing this Opinion, that the originals of such Documents correspond in all respects with the
last draft of the complete Documents submitted to us; |
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3.3 |
that the terms of the Documents will be observed and performed by the parties thereto; |
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3.4 |
that the copies produced to us of minutes of meetings and/or of resolutions correctly record the proceedings at such meetings and/or the subject matter which they purport to record and that any meetings referred to in
such copies were duly convened, duly quorate and held, that those present at any such meetings were entitled to attend and vote at the meeting and acted bona fide throughout and that no further resolutions have been passed or other action taken
which would or might alter the effectiveness thereof; |
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3.5 |
that each of the Documents is up-to-date and current and has not been amended, varied or terminated in any respect and no resolution contained in any of the Documents has been amended, varied, revoked or superseded in
any respect; |
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3.6 |
that the Memorandum and Articles of Association of the Company amended on 20 May 2014 are the current Memorandum and Articles of Association of the Company, are up to date and have not been amended or superseded;
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Accuracy of searches and warranties
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3.7 |
the accuracy and completeness of the information disclosed in the Searches and that such information is accurate as of the date of this Opinion and has not since the time of such search or enquiry been altered. It
should be noted that: (a) the matters disclosed in the Searches may not present a complete summary of the actual position on the matters we have caused searches to be conducted for; (b) the position reflected by the Searches may not be
fully up-to-date; and (c) searches at the Companies Registration Office do not necessarily reveal whether or not a prior charge has been created or a resolution has been passed or a petition presented or any other action taken for the
winding-up of, or the appointment of a receiver or an examiner to, the Company or its assets; |
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3.8 |
the truth, completeness and accuracy of all representations and statements as to factual matters contained in the Documents; |
Solvency and Insolvency
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3.9 |
that: (i) the Company is as at the date of this Opinion able to pay its debts as they fall due within the meaning of sections 508(3) and 570 of the Companies Act 2014 or any analogous provision under any applicable
laws immediately after the execution and delivery of the Documents; and (ii) the Company will not, as a consequence of doing any act or thing which any Document contemplates, permits or requires the relevant party to do, be unable to pay its
debts within the meaning of such sections or any analogous provisions under any applicable laws. |
Commercial Benefit
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3.10 |
that the Documents have been entered into for bona fide commercial purposes, on arms length terms and for the benefit of each party thereto and are in those parties respective commercial interest and for
their respective corporate benefit. |
This Opinion is addressed to you in connection with the registration of the
Guarantees with the SEC. We hereby consent to the inclusion of this Opinion as an exhibit to the Registration Statement and the reference to our firm under the caption Legal Matters in the prospectus which is filed as part of the
Registration Statement. In giving this consent, we do not thereby admit that we are in a category of person whose consent is required under section 7 of the Securities Act.
This Opinion speaks only as of its date. We are not under any obligation
to update this Opinion from time to time or to notify you of any change of law, fact or circumstances referred to or relied upon in the giving of this Opinion.
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Yours faithfully, |
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/s/ Arthur Cox |
ARTHUR COX |
SCHEDULE
Documents
1. |
The Notes, the Guarantees and the Indenture |
2. |
The Registration Statement |
4. |
A corporate certificate of the secretary of the Company dated the date of this opinion (the Corporate Certificate) with copies of: |
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(a) |
the Memorandum and Articles of Association of the Company in the form amended by resolution of the shareholders of the Company on 20 May 2014; |
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(b) |
the Certificate of Incorporation of the Company dated 28 November 2013; and |
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(c) |
Resolutions of the board of directors of the Company. |
5. |
A copy of the certificate of a public company entitled to do business of the Company dated 29 September 2013. |
6. |
Letter of status in respect of the Company from the Irish Companies Registration Office dated 15 September 2015. |
Exhibit 5.4
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Pentair Investments Switzerland GmbH |
Freier Platz 10 |
CH-8200 Schaffhausen |
Switzerland |
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Zurich, 16 September 2015 |
Registration Statement on Form S-3
Dear Sir or Madam
We are acting as special Swiss counsel to
Pentair Investments Switzerland GmbH (the Company). This opinion is being rendered at the request of the Company in connection with the Companys registration statement on Form S-3 (Registration No. 333-204066) (the
Registration Statement) including the prospectus constituting a part thereof, dated 11 May, 2015 and the final supplement to the prospectus, dated 9 September, 2015 (collectively, the Prospectus),
filed by Pentair Finance S.A. (the Issuer), Pentair plc (Pentair) and the Company with the Securities and Exchange Commission (the SEC) under the Securities Act of 1933, as amended (the
Securities Act), relating to the issuance and sale by the Issuer in the manner set forth in the Registration Statement and the Prospectus of $500,000,000 aggregate principal amount of the Issuers 2.900% Senior Notes due
2018, $400,000,000 aggregate principal amount of the Issuers 3.625% Senior Notes due 2020 and $250,000,000 aggregate principal amount of the Issuers 4.650% Senior Notes due 2025 (collectively, the Notes). The Notes are
fully and unconditionally guaranteed as to the due and punctual payment of the principal of, premium, if any, and interest and any additional amounts, if any, on the Notes when and as the same shall become due and payable, whether at maturity, upon
redemption or otherwise, by the Company (the Guarantees) and Pentair plc. The Notes will be issued under the Indenture, dated 16 September 2015 (the Base Indenture), among the Issuer, Pentair plc, the
Company, and U.S. Bank National Association, as trustee (the Trustee), and the First Supplemental Indenture, the Second Supplemental Indenture and Third Supplemental Indenture, each dated 16 September 2015 (collectively, the
Supplemental Indentures and, together with the Base Indenture, the Indenture) between the Issuer, Pentair plc, the Company, and the Trustee.
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Bär & Karrer |
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Zürich |
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Genf |
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Lugano |
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Zug |
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www.baerkarrer.ch |
Rechtsanwälte |
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Bär & Karrer AG |
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Bär & Karrer SA |
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Bär & Karrer SA |
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Bär & Karrer AG |
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Brandschenkestrasse 90 |
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12, quai de la Poste |
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Via Vegezzi 6 |
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Baarerstrasse 8 |
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CH-8027 Zürich |
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CH-1211 Genève 11 |
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CH-6901 Lugano |
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CH-6301 Zug |
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Phone: +41 58 261 50 00 |
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Phone: +41 58 261 57 00 |
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Phone: +41 58 261 58 00 |
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Phone: +41 58 261 59 00 |
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Fax: +41 58 261 50 01 |
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Fax: +41 58 261 57 01 |
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Fax: +41 58 261 58 01 |
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Fax: +41 58 261 59 01 |
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zuerich@baerkarrer.ch |
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geneve@baerkarrer.ch |
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lugano@baerkarrer.ch |
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zug@baerkarrer.ch |
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We have not investigated the laws of any jurisdiction other than Switzerland, and do not express an opinion
on the laws of any jurisdiction other than Switzerland. For the purpose of rendering this opinion, we have examined and solely relied on (i) the Registration Statement, including the Prospectus constituting a part of the Registration Statement,
(ii) a copy of the signed Indenture, (iii) a copy of the signed the Guarantees and (iv) a copy of the signed secretarys certificate of the Company dated 16 September 2015 including attached thereto a certified extract,
dated 10 September 2015, of the Commercial Register of the Canton of Schaffhausen, Switzerland, the Companys articles of association certified to be up-to-date as of 10 September 2015, resolutions duly adopted by the meeting of the
managing officers (Geschäftsführer) of the Company held on 6 May 2015 and a circular resolution of the Board of Directors (i.e. managing officers/Geschäftsführer) of the Company dated 31 July 2015 and
containing certain representations.
We have assumed the genuineness of all signatures, the authenticity of all documents submitted to us as originals,
the conformity to original documents of all the documents submitted to us as certified, conformed or photostatic copies and the authenticity of the originals of such latter documents. We have assumed the entering of the parties to the Indenture and
the Guarantees for bona fide commercial reasons and on arms length terms, that none of the managing officers of any such party has or had a conflict of interest with such party in respect of the Indenture or the Guarantee, or otherwise
lacked capacity that would preclude such managing officer from validly representing (or granting a power of attorney in respect of the Indenture and the Guarantees for) such party. We further have assumed that the Company is, at the time of this
opinion letter, neither insolvent nor over-indebted (in the sense of article 725 Swiss Code of Obligations) and that the Company does not guarantee the satisfaction of any liabilities entered of Pentair. This opinion speaks as of its date and is
strictly limited to the matters stated herein and we assume no obligation to review or update this opinion if applicable law or the existing facts or circumstances should change.
Based on the foregoing and subject to the qualifications set forth herein, we are of the opinion (i) that the Company is a duly organized limited
liability company (Gesellschaft mit beschränkter Haftung) validly existing under the laws of Switzerland, (ii) that the Company has the corporate power to enter into, and perform its obligations under, the Indenture and the
Guarantees and (iii) that the Company has duly authorized, executed and delivered the Indenture and the Guarantees in accordance with the laws of.
The opinions set out above are subject to applicable bankruptcy, insolvency, reorganization, liquidation, moratorium, civil procedure and other similar laws
and regulations as applicable to creditors, debtors, claimants and defendants generally as well as principles of equity (good faith) and the absence of a misuse of rights.
We hereby consent to the filing of this opinion as an exhibit to the Registration Statement and to references
to our firm therein. In giving this consent, we do not hereby admit that we are within the category of persons whose consent is required under Section 7 of the Securities Act or the rules and regulations of the SEC promulgated thereunder.
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Yours faithfully, |
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/s/ Bär & Karrer AG |
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Bär & Karrer AG |
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