DOANE PET CARE COMPANY
9-3/4% Senior Subordinated Notes due 2007
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INDENTURE
Dated as of November 12, 1998
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WILMINGTON TRUST COMPANY,
as Trustee
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CROSS-REFERENCE TABLE
TIA Indenture Section Section - ------- ------- 310(a)(1)............................................................7.10
(a)(2)............................................................7.10
(a)(3)............................................................N.A.
(a)(4)............................................................N.A.
(b)...............................................................7.8; 7.10
(c)...............................................................N.A. 311(a)..............................................................7.11
(b)..............................................................7.11
(c)...............................................................N.A. 312(a)...............................................................2.5
(b)..............................................................11.3
(c)..............................................................11.3 313(a)...............................................................7.6
(b)(1)............................................................N.A.
(b)(2)............................................................7.6
(c)...............................................................7.6
(d)...............................................................7.6 314(a)...............................................................4.2 .....................................................................4.11; 12.2
(b)...............................................................N.A.
(c)(1)...........................................................12.4
(c)(2)...........................................................12.4
(c)(3)............................................................N.A.
(d)...............................................................N.A.
(e)..............................................................12.5
(f)..............................................................4.10 315(a)...............................................................7.1
(b)...............................................................7.5; 12.2
(c)...............................................................7.1
(d)...............................................................7.1
(e)...............................................................6.11 316(a)(last sentence)...............................................12.6
(a)(1)(A).........................................................6.5
(a)(1)(B).........................................................6.4
(a)(2)............................................................N.A.
(b)...............................................................6.7 317(a)(1)............................................................6.8
(a)(2)............................................................6.9
(b)...............................................................2.4 318(a)..............................................................12.1
N.A. means Not Applicable.
- -------------------- Note: This Cross-Reference Table shall not, for any purpose, be deemed to be part of the Indenture.
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TABLE OF CONTENTS
Page
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ARTICLE I.
Section 1.1. Definitions.................................................1 Section 1.2. Other Definitions..........................................16 Section 1.3. Incorporation by Reference of Trust Indenture Act..........17 Section 1.4. Rules of Construction......................................17
ARTICLE II.
The Securities
Section 2.1. Form and Dating............................................18 Section 2.2. Execution and Authentication...............................19 Section 2.3. Registrar and Paying Agent.................................20 Section 2.4. Paying Agent To Hold Money in Trust........................20 Section 2.5. Securityholder Lists.......................................20 Section 2.6. Transfer and Exchange......................................21 Section 2.7. Replacement Securities.....................................26 Section 2.8. Outstanding Securities.....................................26 Section 2.9. Temporary Securities.......................................27 Section 2.10. Cancellation...............................................27 Section 2.11. Defaulted Interest.........................................27 Section 2.12. CUSIP Numbers..............................................27
ARTICLE III.
Redemption
Section 3.1. Notices to Trustee.........................................28 Section 3.2. Selection of Securities To Be Redeemed.....................28 Section 3.3. Notice of Redemption.......................................28 Section 3.4. Effect of Notice of Redemption.............................29 Section 3.5. Deposit of Redemption Price................................29 Section 3.6. Securities Redeemed in Part................................29
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ARTICLE IV.
Covenants
Section 4.1. Payment of Securities......................................30 Section 4.2. SEC Reports................................................30 Section 4.3. Limitation on Indebtedness.................................30 Section 4.4. Limitation on Restricted Payments..........................31 Section 4.5. Limitation on Restrictions on Distributions from
Subsidiaries...............................................33 Section 4.6. Limitation on Sales of Assets..............................34 Section 4.7. Limitation on Affiliate Transactions.......................36 Section 4.8. Change of Control..........................................37 Section 4.9. Limitation on Sale of Subsidiary Capital Stock.............38 Section 4.10. Future Security Guarantors.................................38 Section 4.11. Limitation on Lines of Business............................38 Section 4.12. Maintenance of Office or Agency for Registration of
Transfer, Exchange and Payment of Securities...............38 Section 4.13. Appointment to Fill a Vacancy in the Office of Trustee.....39 Section 4.14. Provision as to Paying Agent...............................39 Section 4.15. Maintenance of Corporate Existence.........................40 Section 4.16. Compliance Certificate.....................................40 Section 4.17. Further Instruments and Acts...............................40
ARTICLE V.
Successor Company
Section 5.1. When Company May Merge or Transfer Assets..................40
ARTICLE VI.
Defaults and Remedies
Section 6.1. Events of Default..........................................41 Section 6.2. Acceleration...............................................43 Section 6.3. Other Remedies.............................................44 Section 6.4. Waiver of Past Defaults....................................44 Section 6.5. Control by Majority........................................44 Section 6.6. Limitation on Suits........................................44 Section 6.7. Rights of Holders to Receive Payment.......................45 Section 6.8. Collection Suit by Trustee.................................45 Section 6.9. Trustee May File Proofs of Claim...........................45 Section 6.10. Priorities.................................................45 Section 6.11. Undertaking for Costs......................................46
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ARTICLE VII.
Trustee
Section 7.1. Duties of Trustee..........................................46 Section 7.2. Rights of Trustee..........................................47 Section 7.3. Individual Rights of Trustee...............................48 Section 7.4. Trustee's Disclaimer.......................................48 Section 7.5. Notice of Defaults.........................................48 Section 7.6. Reports by Trustee to Holders..............................49 Section 7.7. Compensation and Indemnity.................................49 Section 7.8. Replacement of Trustee.....................................50 Section 7.9. Successor Trustee by Merger................................50 Section 7.10. Eligibility; Disqualification..............................51 Section 7.11. Preferential Collection of Claims Against Company..........51
ARTICLE VIII.
Discharge of Indenture; Defeasance
Section 8.1. Discharge of Liability on Securities; Defeasance...........51 Section 8.2. Conditions to Defeasance...................................52 Section 8.3. Application of Trust Money.................................53 Section 8.4. Repayment to Company.......................................53 Section 8.5. Indemnity for U.S. Government Obligations..................54 Section 8.6. Reinstatement..............................................54
ARTICLE IX.
Amendments
Section 9.1. Without Consent of Holders.................................54 Section 9.2. With Consent of Holders....................................55 Section 9.3. Compliance with Trust Indenture Act........................56 Section 9.4. Revocation and Effect of Consents and Waivers..............56 Section 9.5. Notation on or Exchange of Securities......................56 Section 9.6. Trustee To Sign Amendments.................................57
ARTICLE X.
Subordination
Section 10.1. Agreement To Subordinate...................................57 Section 10.2. Liquidation, Dissolution, Bankruptcy.......................57
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Section 10.3. Default on Senior Indebtedness or Guarantor Senior
Indebtedness...............................................58 Section 10.4. Acceleration of Payment of Securities......................59 Section 10.5. When Distribution Must Be Paid Over........................59 Section 10.6. Subrogation................................................59 Section 10.7. Relative Rights............................................60 Section 10.8. Subordination May Not Be Impaired by Company or
the Subsidiary Guarantors..................................60 Section 10.9. Rights of Trustee and Paying Agent.........................60 Section 10.10. Distribution or Notice to Representative...................61 Section 10.11. Article X Not To Prevent Events of Default or Limit
Right To Accelerate........................................61 Section 10.12. Trust Moneys Not Subordinated..............................61 Section 10.13. Trustee Entitled To Rely...................................61 Section 10.14. Trustee To Effectuate Subordination........................62 Section 10.15. Trustee Not Fiduciary for Holders of Senior Indebtedness
or Guarantor Senior Indebtedness...........................62 Section 10.16. Changes in Senior Indebtedness.............................62 Section 10.17. Reliance by Holders of Senior Indebtedness and
Guarantor Senior Indebtedness on Subordination Provisions..62 Section 10.18. Legend.....................................................63
ARTICLE XI.
Subsidiary Guarantee
Section 11.1. Subsidiary Guarantee.......................................63 Section 11.2. Limitation on Liability....................................65 Section 11.3. Successors and Assigns.....................................65 Section 11.4. No Waiver..................................................65 Section 11.5. Right of Contribution......................................65 Section 11.6. No Subrogation.............................................65 Section 11.7. Modification...............................................66
ARTICLE XII.
Miscellaneous
Section 12.1. Trust Indenture Act Controls...............................66 Section 12.2. Notices....................................................66 Section 12.3. Communication by Holders with other Holders................67 Section 12.4. Certificate and Opinion as to Conditions Precedent.........67 Section 12.5. Statements Required in Certificate or Opinion..............67 Section 12.6. When Securities Disregarded................................68 Section 12.7. Rules by Trustee, Paying Agent and Registrar...............68 Section 12.8. Legal Holidays.............................................68
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Section 12.9. Governing Law..............................................68 Section 12.10. No Recourse Against Others.................................68 Section 12.11. Successors.................................................68 Section 12.12. Multiple Originals; Counterparts...........................68 Section 12.13. Variable Provisions........................................69 Section 12.14. Qualification of Indenture.................................69 Section 12.15. Table of Contents; Headings................................69
EXHIBIT A Form of Initial Note EXHIBIT B Form of Exchange Note EXHIBIT C Form of Transferee Letter of Representation
-v- 8 INDENTURE dated as of November 12, 1998, between DOANE PET CARE COMPANY, a Delaware corporation (the "Company"), and WILMINGTON TRUST COMPANY, a Delaware banking corporation, as trustee (the "Trustee").
Each party agrees as follows for the benefit of the other parties and for the equal and ratable benefit of the Holders of the Company's 9 3/4% Senior Subordinated Notes due 2007 (the "Initial Notes") and, if and when issued in exchange for Initial Notes as provided in the Registration Rights Agreement (as hereinafter defined), the Company's 9 3/4% Senior Subordinated Notes due 2007 (the "Exchange Notes" and, together with the Initial Notes, the "Securities"):
ARTICLE I.
Definitions and Incorporation by Reference
Section 1.1. Definitions.
"Additional Assets" means (i) any property or assets (other than Indebtedness and Capital Stock) to be used by the Company or a Subsidiary in a Related Business; (ii) the Capital Stock of a Person that becomes a Subsidiary as a result of the acquisition of such Capital Stock by the Company or another Subsidiary; or (iii) Capital Stock constituting a minority interest in any Person that at such time is a Subsidiary of the Company; provided, however, that, in the case of clauses (ii) and (iii) of this definition, such Subsidiary is primarily engaged in a Related Business.
"Affiliate" of any specified Person means (i) any other Person, directly or indirectly, controlling or controlled by or under direct or indirect common control with such specified Person or (ii) any Person who is a director or officer (A) of such Person, (B) of any Subsidiary of such Person or (C) of any Person described in clause (i) above. For the purposes of this definition, "control" when used with respect to any Person means the power to direct the management and policies of such Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise; and the terms "controlling" and "controlled" have meanings correlative to the foregoing. For purposes of the covenants described in Sections 4.4, 4.6 and 4.7 only, "Affiliate" shall also mean any beneficial owner of shares representing 5% or more of the total voting power of the Voting Stock (on a fully diluted basis) of the Company or of rights or warrants to purchase such Voting Stock (whether or not currently exercisable) and any Person who would be an Affiliate of any such beneficial owner pursuant to the first sentence hereof.
"Applicable Premium" means, with respect to a Security at any redemption date, the greater of (i) 1.0% of the principal amount of such Security and (ii) the excess of (A) the present value at such time of (1) the redemption price of such Security at May 15, 2002 (such redemption price being described in the Security) plus (2) all required interest payments due on such Security through May 15, 2002, computed using a discount rate equal to the Treasury Rate plus 50 basis
-1- 9 points based on 360-day year of twelve 30-day months, over (B) the principal amount of such Security.
"Asset Disposition" means any sale, lease, transfer, issuance or other disposition (or series of related sales, leases, transfers, issuances or dispositions that are part of a common plan) of shares of Capital Stock of a Subsidiary (other than directors' qualifying shares), property or other assets (each referred to for the purposes of this definition as a "disposition") by the Company or any of its Subsidiaries (including any disposition by means of a merger, consolidation or similar transaction) other than (i) a disposition by a Subsidiary to the Company or a Wholly-Owned Subsidiary or by the Company or a Subsidiary to a Wholly-Owned Subsidiary, (ii) a disposition of inventory or Temporary Cash Investments in the ordinary course of business, (iii) a disposition of obsolete equipment or equipment that is no longer useful in the conduct of the business of the Company and its Subsidiaries and that is disposed of in each case in the ordinary course of business, (iv) the sale of other assets so long as the fair market value of the assets disposed of pursuant to this clause (iv) does not exceed $1.0 million in the aggregate in any fiscal year and $5.0 million in the aggregate prior to May 15, 2007, (v) for the purposes of the covenant described in Section 4.6 only, a disposition subject to the covenant described in Section 4.4 and (vi) the disposition of all or substantially all of the assets of the Company in the manner permitted pursuant to Section 5.1 or any disposition that constitutes a Change of Control pursuant to this Indenture.
"Attributable Indebtedness" in respect of a Sale/Leaseback Transaction means, as at the time of determination, the present value (discounted at the interest rate borne by the Securities, compounded annually) of the total obligations of the lessee for rental payments during the remaining term of the lease included in such Sale/Leaseback Transaction (including any period for which such lease has been extended).
"Average Life" means, as of the date of determination, with respect to any Indebtedness or Preferred Stock, the quotient obtained by dividing (i) the sum of the products of the numbers of years from the date of determination to the dates of each successive scheduled principal payment of such Indebtedness or redemption or similar payment with respect to Preferred Stock multiplied by the amount of such payment by (ii) the sum of all such payments.
"Bank Indebtedness" means any and all amounts payable under or in respect of the Senior Credit Documents and any Indebtedness that is incurred to refund, refinance, replace, renew, repay or extend (including pursuant to any defeasance or discharge mechanism) Indebtedness under such Senior Credit Documents including Indebtedness that refinances such Indebtedness, as amended from time to time, including principal, premium (if any), interest (including interest accruing on or after the filing of any petition in bankruptcy or for reorganization relating to the Company whether or not a claim for post filing interest is allowed in such proceedings), fees, charges, expenses, reimbursement obligations, guarantees and all other amounts payable thereunder or in respect thereof (including, without limitation, cash collateralization of letters of credit).
"Board of Directors" means the Board of Directors of the Company or any committee thereof duly authorized to act on behalf of such Board of Directors.
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"Business Day" means a day other than a Saturday, Sunday or other day on which commercial banks in New York City or Wilmington, Delaware are authorized or required by law to close.
"Capital Stock" of any Person means any and all shares, interests, rights to purchase, warrants, options, participations or other equivalents of or interests in (however designated) equity of such Person, including any Preferred Stock, but excluding any debt securities convertible into such equity.
"Capitalized Lease Obligations" means an obligation that is required to be classified and accounted for as a capitalized lease for financial reporting purposes in accordance with GAAP, and the amount of Indebtedness represented by such obligation shall be the capitalized amount of such obligation determined in accordance with GAAP, and the Stated Maturity thereof shall be the date of the last payment of rent or any other amount due under such lease prior to the first date such lease may be terminated without penalty.
"Cash Equivalents" means (i) securities issued or directly and fully guaranteed or insured by the United States Government, or any agency or instrumentality thereof, having maturities of not more than one year from the date of acquisition; (ii) marketable general obligations issued by any state of the United States of America or any political subdivision of any such state or any public instrumentality thereof maturing within one year from the date of acquisition thereof and, at the time of acquisition thereof, having a credit rating of "A" or better from either Standard & Poor's Ratings Group or Moody's Investors Service, Inc.; (iii) certificates of deposit, time deposits, eurodollar time deposits, overnight bank deposits or bankers' acceptances having maturities of not more than one year from the date of acquisition thereof issued by any domestic commercial bank the long-term debt of which is rated at the time of acquisition thereof at least "A" or the equivalent thereof by Standard & Poor's Ratings Group, or "A" or the equivalent thereof by Moody's Investors Service, Inc., and having capital and surplus in excess of $500.0 million; (iv) repurchase obligations with a term of not more than seven days for underlying securities of the types described in clauses (i), (ii) and (iii) entered into with any bank meeting the qualifications specified in clause (iii) above; (v) commercial paper rated at the time of acquisition thereof at least "A-2" or the equivalent thereof by Standard & Poor's Ratings Group or "P-2" or the equivalent thereof by Moody's Investors Service, Inc., or carrying an equivalent rating by a nationally recognized rating agency, if both of the two named rating agencies cease publishing ratings of investments, and in either case maturing within 270 days after the date of acquisition thereof; and (vi) interests in any investment company which invests solely in instruments of the type specified in clauses (i) through (v) above.
"Change of Control" means the occurrence of any of the following events: (i) prior to the first public offering of Voting Stock of the Company or Holdings, as the case may be, the Permitted Holders cease to be the "beneficial owner" (as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of majority voting power of the Voting Stock of the Company, whether as a result of issuance of securities of the Company or Holdings, as the case may be, any merger, consolidation, liquidation or dissolution of the Company or Holdings, as the case may be, any direct or indirect transfer of securities by any Permitted Holder or otherwise (for purposes of this clause (i) and clause (ii) below, the Permitted Holders will be deemed to beneficially own any
-3- 11 Voting Stock of a Person (the "specified corporation") held by any other Person (the "parent corporation") so long as the Permitted Holders beneficially own (as so defined), directly or indirectly, a majority of the voting power of the Voting Stock of the parent corporation);
(ii) following the first public offering of Voting Stock of the Company or Holdings, as the case may be, any "person" (as such term is used in Sections 13(d) and 14(d) of the Exchange Act), other than one or more Permitted Holders, is or becomes the beneficial owner (as defined in clause (i) above, except that a Person shall be deemed to have "beneficial ownership" of all shares that any such Person has the right to acquire, whether such right is exercisable immediately or only after the passage of time), directly or indirectly, of more than 35% of the total voting power of the Voting Stock of the Company or Holdings, as the case may be; provided that the Permitted Holders beneficially own (as defined in clause (i) above), directly or indirectly, in the aggregate a lesser percentage of the total voting power of the Voting Stock of the Company or Holdings, as the case may be, than such other person and do not have the right or ability by voting power, contract or otherwise to elect or designate for election a majority of the board of directors of the Company or Holdings, as the case may be, (for purposes of this clause (ii), such other person shall be deemed to beneficially own any Voting Stock of a specified corporation held by a parent corporation, if such other person "beneficially owns" (as defined in this clause (ii)), directly or indirectly, more than 35% of the voting power of the Voting Stock of such parent corporation and the Permitted Holders "beneficially own" (as defined in clause (i) above), directly or indirectly, in the aggregate a lesser percentage of the voting power of the Voting Stock of such parent corporation and do not have the right or ability by voting power, contract or otherwise to elect or designate for election a majority of the board of directors of such parent corporation); or
(iii) during any period of two consecutive years, individuals who at the beginning of such period constituted the Board of Directors (together with any new directors whose election by such Board of Directors or whose nomination fo ...
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