EXHIBIT 10.15
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TRUST INDENTURE AND SECURITY AGREEMENT
dated as of August 7, 1997
among
FIRST SECURITY BANK, NATIONAL ASSOCIATION,
not in its individual
capacity except as otherwise expressly provided herein,
but solely as Nonaffiliated Partner Trustee under the
Trust Agreement dated as of August 7, 1997 with
Beneficiaries,
BJ SERVICES EQUIPMENT, L.P.,
a Delaware Limited Partnership
and
STATE STREET BANK AND TRUST COMPANY,
as Indenture Trustee.
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Well Services Equipment
(BJ Services Trust No. 1997-1) 2
CONTENTS
Section Page - ------- ---- PARTIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
RECITALS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
1. SECURITY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
1.1 Grant of Security Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
1.2 Excluded Rights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
1.3 HABENDUM CLAUSE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
1.4 Attachment of Security Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
1.5 Effect of Assignment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
1.6 Appointment of Indenture Trustee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
1.7 Further Assurances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
1.8 Representations and Warranties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
2. THE NOTES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
2.1 Notes; Title, Dating and Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
2.2 Execution and Authentication . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
2.3 Register . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
2.4 Transfer and Exchange . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
2.5 Indenture Trustee as Agent; Ownership of Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
2.6 Mutilated, Destroyed, Lost or Stolen Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
2.7 Cancellation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
2.8 Payment on Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
2.9 Payment from Indenture Estate Only; Nonrecourse Obligations; Excess Amounts . . . . . . . . . . . . . 16
2.10 Execution and Delivery of Notes upon Original Issuance . . . . . . . . . . . . . . . . . . . . . . . . 17
2.11 Security for and Parity of Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
2.12 Application of Payments to Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
2.13 Intentional Omitted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
2.14 Late Rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
2.15 Definition of Premium . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
2.16 Special Rights of Holders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
3. RECEIPT, DISTRIBUTION AND APPLICATION OF FUNDS IN THE INDENTURE ESTATE . . . . . . . . . . . . . . . . . . . 21
3.1 Payment Upon Delivery of Units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
i 3 Section Page - ------- ----
3.2 Payments Upon Event of Loss, Obsolescence or ET Right; Certain Prepayments . . . . . . . . . . . . . . 21
3.3 Application of Priority Distributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
3.4 Application of Certain Amounts Upon Event of Loss . . . . . . . . . . . . . . . . . . . . . . . . . . 22
3.5 Amounts During Indenture Event of Default . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
3.6 Amounts for Which Application is Provided in Other Basic Documents . . . . . . . . . . . . . . . . . . 24
3.7 Amounts for Which No Application is Otherwise Provided . . . . . . . . . . . . . . . . . . . . . . . . 24
3.8 Excepted Property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
3.9 Notice of Nonpayment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
4. COVENANTS OF NONAFFILIATED PARTNER TRUSTEE AND PARTNERSHIP . . . . . . . . . . . . . . . . . . . . . . . . . 25
5. DISPOSITION, SUBSTITUTION AND RELEASE OF PROPERTY INCLUDED IN THE INDENTURE ESTATE DURING CONTINUATION OF
PARTNERSHIP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
5.1 Disposition, Substitution and Release of Property Included in the Indenture Estate During
Continuation of Partnership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
5.2 Possession of Units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
5.3 Release of Units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
5.4 Release of Units - Consent of Holders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
5.5 Protection of Purchaser . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
6. PREPAYMENT OF NOTES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
6.1 Prepayment of Notes upon Event of Loss, Obsolescence or ET Date . . . . . . . . . . . . . . . . . . . 29
6.2 Notice of Prepayment to Holders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
6.3 Deposit of Prepayment Price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
6.4 Notes Payable on Prepayment Date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
7. NONAFFILIATED PARTNER TRUSTEE AND INDENTURE TRUSTEE . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
7.1 Prepayment of Moneys for Note Payments Held by Indenture Trustee . . . . . . . . . . . . . . . . . . . 32
7.2 No Representations or Warranties as to Units or Documents . . . . . . . . . . . . . . . . . . . . . . 32
8. DEFAULTS AND REMEDIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
8.1 Indenture Events of Default . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
ii 4 Section Page - ------- ----
8.2 Acceleration; Rescission and Annulment; Limitations . . . . . . . . . . . . . . . . . . . . . . . . . 34
8.3 Other Remedies Available to Indenture Trustee . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
8.4 Waiver of Nonaffiliated Partner Trustee and Partnership . . . . . . . . . . . . . . . . . . . . . . . 45
8.5 Waiver of Existing Defaults . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
8.6 Control by Holders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
8.7 Limitation on Suits by Holders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
8.8 Rights of Holders to Receive Payment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
8.9 Indenture Trustee May File Proofs of Claim . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
9. INDENTURE TRUSTEE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
9.1 Rights and Duties of Indenture Trustee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
9.2 Individual Rights of Indenture Trustee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
9.3 Funds May Be Held by Indenture Trustee; Investments . . . . . . . . . . . . . . . . . . . . . . . . . 49
9.4 Notice of Defaults . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
9.5 Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
9.6 Replacement of Indenture Trustee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
9.7 Successor Indenture Trustee by Merger, etc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
9.8 Eligibility; Disqualification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
9.9 Trustee's Liens . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
9.10 Withholding Taxes; Information Reporting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
9.11 Co-Trustee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
10. SATISFACTION AND DISCHARGE; TERMINATION
OF OBLIGATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
10.1 Satisfaction and Discharge of Agreement; Termination of Obligations . . . . . . . . . . . . . . . . . 54
10.2 Survival of Certain Obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
10.3 Moneys to Be Held in Trust . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
10.4 Moneys to Be Returned to Nonaffiliated Partner Trustee . . . . . . . . . . . . . . . . . . . . . . . . .55
11. AMENDMENTS AND WAIVERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
11.1 Amendments to This Indenture Without Consent of Holders . . . . . . . . . . . . . . . . . . . . . . . 55
11.2 Supplements to Partnership Agreement, Guaranty, Services Agreement and O&M Agreement Without Holder
Consent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
11.3 Amendments With Consent of Holders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
11.4 Notation on or Exchange of Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
iii
5 Section Page - ------- ----
11.5 Indenture Trustee Protected . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
11.6 Opinion of Counsel Conclusive as to Supplements . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
12. ACTIONS TO BE TAKEN UPON EXERCISE OF CERTAIN RIGHTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
12.1 Actions to Be Taken upon Exercise of Certain Rights . . . . . . . . . . . . . . . . . . . . . . . . . 59
13. MISCELLANEOUS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
13.1 Notices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
13.2 Governing Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
13.3 No Recourse Against Others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
13.4 Execution in Counterparts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
13.5 Indenture for Benefit of Nonaffiliated Partner Trustee, Indenture Trustee, Beneficiaries and Holders . 61
13.6 Severability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
13.7 No Oral Modifications or Continuing Waivers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
13.8 Successors and Assigns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
13.9 Headings and Table of Contents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
13.10 No Legal Title to Indenture Estate in Holders . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
13.11 Capacity in Which Acting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
13.12 Directly or Indirectly . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
SIGNATURES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . S-1
iv 6 Attachments
Exhibit A Note Exhibit B Indenture Supplement No. 1
v 7
TRUST INDENTURE AND SECURITY AGREEMENT dated as of August 7,
1997 among FIRST SECURITY BANK, NATIONAL ASSOCIATION, a national
banking association not in its individual capacity except as otherwise
expressly provided herein, but solely as Nonaffiliated Partner
Trustee, BJ SERVICES EQUIPMENT, L.P., a Delaware Limited Partnership
and STATE STREET BANK AND TRUST COMPANY, a Massachusetts trust
company, as Indenture Trustee hereunder.
R E C I T A L S:
A. Beneficiaries and First Security Bank, National Association, a national banking association, have entered into the Trust Agreement whereby, among other things, (i) Nonaffiliated Partner Trustee has established a certain trust for the use and benefit of Beneficiaries, to be subject, however, to the Lien of the Indenture created pursuant hereto and (ii) Nonaffiliated Partner Trustee has been authorized and directed to execute and deliver this Indenture.
B. Before the Commencement Date General Partner and Organizational Limited Partner formed Partnership pursuant to the Initial Partnership Agreement, and General Partner contributed the Initial Units to Partnership.
C. Nonaffiliated Partner Trustee, Indenture Trustee and other parties have entered into the Participation Agreement providing for the commitment of the Note Purchasers to purchase Notes in an aggregate amount not to exceed $75,000,000.
D. Subject to the terms of the Participation Agreement, Nonaffiliated Partner Trustee on the Commencement Date will enter into the Partnership Agreement (which amends and restates the Initial Partnership Agreement) with General Partner, Affiliated Partner and Organizational Limited Partner and will make a capital contribution to Partnership.
E. The proceeds of the Notes are to be used by Nonaffiliated Partner Trustee to finance a portion of the Nonaffiliated Partner Trustee's capital contribution to Partnership on the Commencement Date.
F. The parties desire by this Indenture, among other things, (i) to provide for the issuance by Nonaffiliated Partner 8 Trustee of the Notes in accordance with this Indenture, (ii) to provide for the assignment, mortgage and pledge by Nonaffiliated Partner Trustee to Indenture Trustee, as part of the Indenture Estate hereunder, among other things, of Nonaffiliated Partner Trustee's Partnership Interest and of certain of Nonaffiliated Partner Trustee's right, title and interest under certain Basic Documents and certain payments and other amounts received hereunder or thereunder, and (iii) to provide for the assignment, mortgage and pledge by Partnership to Indenture Trustee, as part of the Indenture Estate hereunder, among other things, of all of Partnership's right title and interest in and to the Units and certain of Partnership's right, title and interest under certain Basic Documents and certain payments and other amounts received with respect thereto, all in accordance with the terms hereof, as security for, among other things, the payment and performance of the Notes and Nonaffiliated Partner Trustee's other obligations to Holders and to Indenture Trustee, for the ratable benefit and security of Holders.
G. The Holders (i) by entering into the Participation Agreement, have made it possible for Nonaffiliated Partner Trustee to make its capital contribution to Partnership and, accordingly, have conferred financial and other benefits on Partnership and Partners and (ii) would not enter into the transactions contemplated by the Basic Documents without the grant by Partnership and Nonaffiliated Partner Trustee of the Liens provided hereunder.
H. All things necessary to make this Indenture the legal, valid and binding obligation of Nonaffiliated Partner Trustee, Partnership and Indenture Trustee, for the uses and purposes herein set forth, in accordance with its terms, have been done and performed and have happened.
I. For all purposes of this Indenture, except as otherwise defined herein or unless the context otherwise requires:
(a) capitalized terms used herein shall have the meanings assigned to them in Appendix A attached hereto and made a part hereof;
(b) the words "herein", "hereof" and "hereunder", and other words of similar import, refer to this Indenture as a
-2- 9 whole and not to any particular Section or other subdivision hereof; and
(c) all references in this Indenture to Sections and Exhibits refer to Sections and Exhibits of this Indenture unless otherwise indicated.
NOW, THEREFORE, in consideration of the premises and of the mutual covenants herein contained, the parties hereto hereby agree as follows:
SECTION 1. SECURITY
1.1 Grant of Security Interest.
To secure the prompt payment of the principal of, Premium, if any, and interest on the Notes from time to time Outstanding in accordance with their terms and to secure the payment, performance and observance by Nonaffiliated Partner Trustee and Partnership of all the agreements, covenants and provisions for the benefit of the Holders and Indenture Trustee contained herein and in the Basic Documents to which Partnership or Nonaffiliated Partner Trustee is a party (collectively, the "Secured Obligations") and for the uses and purposes and subject to the terms and provisions hereof,
(i) Nonaffiliated Partner Trustee does hereby grant,
bargain, sell, assign, transfer, convey, pledge and confirm, unto
Indenture Trustee, its successors and assigns, for the security and
benefit of the Holders from time to time and Indenture Trustee, and
grant a security interest in and lien on, all estate, right, title and
interest of Nonaffiliated Partner Trustee in, to and under the
following described property, agreements, rights, interests and
privileges, whether now owned or hereafter acquired, arising or
existing (which collectively, including, without limitation, all
property hereafter specifically subjected to the Lien of this
Indenture by Nonaffiliated Partner Trustee by any instrument
supplemental hereto, but excluding the Excepted Property, are herein
called the "Nonaffiliated Partner Trustee Indenture Estate"):
-3- 10
(A) the Partnership Agreement and Nonaffiliated
Partner Trustee's Partnership Interest under the Partnership
Agreement (including all instruments or certificates owned or
held by or established in favor of Nonaffiliated Partner
Trustee with respect to such Partnership Interest) and all
rights, authority, powers and privileges of Nonaffiliated
Partner Trustee as a holder of such Partnership Interest and
all payments and distributions thereunder of whatever kind or
character and whether in cash or other property, at any time
made or distributable to Nonaffiliated Partner Trustee
thereunder or in respect thereof, whether due or to become due
and whether representing profits, distributions, repayment of
capital contributions or otherwise (including all amounts of
Priority Distributions, Supplemental Priority Distributions,
Special Distributions, Disposition Value, ET Price, FT Price
and payments of any kind required to be made to Nonaffiliated
Partner Trustee thereunder), including, without limitation,
the immediate and continuing right of Nonaffiliated Partner
Trustee to receive and collect all distributions and any other
payments or other amounts and the right of Nonaffiliated
Partner Trustee to exercise any election or option or to make
any decision or determination or to give or receive any
notice, consent, waiver or approval or to consent to any
amendment, modification or waiver or to make any claims or
demands under or to take any other action provided under or in
respect of the Partnership Agreement, the Services Agreement
or the O&M Agreement or to accept surrender of any Unit or
Units, including all the rights and powers of Nonaffiliated
Partner Trustee to the exclusion of General Partner and any
other Partner, to declare the O&M Agreement and the Services
Agreement to be in default, to terminate such agreements and
exercise all rights and remedies thereunder and under the
Partnership Agreement, including, without limitation, the
commencement, conduct and consummation of legal,
administrative and other proceedings as permitted thereunder
or by law, the liquidation of Partnership, and all rights and
powers of Nonaffiliated Partner Trustee to the exclusion of
General Partner and any other Partner
-4- 11
following a BJ Event of Default to amend, modify or waive such
agreements and to exercise the other rights contained in
Section 7 of the Partnership Agreement;
(B) all rights, authority, powers and privileges
of, and all payments and distributions payable to,
Nonaffiliated Partner Trustee under Sections 5.11 through 5.18
and Section 5.22 of the Participation Agreement;
(C) without limiting the foregoing clause (A) or
(B), all rents, issues, profits, revenues and other income of
the property subjected or required to be subjected to the Lien
of this Indenture which relate to such Partnership Interest,
including, without limitation, the immediate and continuing
right to receive any of the foregoing;
(D) all moneys and securities now or hereafter
paid or deposited or required to be paid or deposited to or
with Indenture Trustee by or for the account of Nonaffiliated
Partner Trustee pursuant to any term of any Basic Document and
held or required to be held by Indenture Trustee hereunder
that relate to Partnership, the Units or to the Notes;
(E) the Guaranty, including, without limitation,
all covenants and warranties in favor of Nonaffiliated Partner
Trustee and all other rights and remedies of Nonaffiliated
Partner Trustee thereunder, whether now owned or hereafter
acquired; and
(F) all proceeds of the foregoing (Nonaffiliated
Partner Trustee, concurrently, with the delivery hereof,
having delivered to Indenture Trustee originals of the
executed Partnership Agreement, O&M Agreement, Services
Agreement, Guaranty and the relevant Partnership Agreement
Supplement and O&M Agreement Supplement and executed
counterparts of the Trust Agreement); and
(ii) Partnership does hereby grant, bargain, sell, assign,
transfer, convey, pledge and confirm, unto Indenture Trustee, its
successors and assigns, for the
-5- 12
security and benefit of the Holders from time to time and Indenture
Trustee, and grant a security interest in and lien on, all estate,
right, title and interest of Partnership in, to and under ...
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