Exhibit 4.1
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STEELCASE INC.
Issuer
AND
▇.▇. ▇▇▇▇▇▇ TRUST COMPANY, NATIONAL ASSOCIATION
as Trustee
INDENTURE
Dated as of
August 7, 2006
Senior Debt Securities
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CROSS-REFERENCE TABLE(1)
Section of Trust Indenture Act of 1939, as amended................. Section of Indenture
310(a)............................................................. 7.09
310(b)............................................................. 7.08
7.10
310(c)............................................................. Inapplicable
311(a)............................................................. 7.13
311(b)............................................................. 7.13
311(c)............................................................. Inapplicable
312(a)............................................................. 5.01
5.02(a)
312(b)............................................................. 5.02(c)
312(c)............................................................. 5.05
313(a)............................................................. 5.04(a)
313(b)............................................................. 5.04(b)
313(c)............................................................. 5.04(a)
5.04(b)
313(d)............................................................. 5.04(c)
314(a)............................................................. 5.03
314(b)............................................................. Inapplicable
314(c)............................................................. 13.06
314(d)............................................................. Inapplicable
314(e)............................................................. 13.06
314(f)............................................................. Inapplicable
315(a)............................................................. 7.01(c)
7.02
315(b)............................................................. 7.01(b)
315(c)............................................................. 7.01(a)
315(d)............................................................. 7.01(c)
315(e)............................................................. 6.07
316(a)............................................................. 6.06
8.04
316(b)............................................................. 6.04
316(c)............................................................. 8.01
317(a)............................................................. 6.02
317(b)............................................................. 4.03
318(a)............................................................. 13.08
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(1) 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.
TABLE OF CONTENTS(1)
Page
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PARTIES.............................................................................................. 1
RECITALS............................................................................................. 1
ARTICLE I
Definitions
SECTION 1.01 Definitions of Terms................................................................. 1
ARTICLE II
Designation and Terms of the Securities
SECTION 2.01 Designation and Terms of Securities.................................................. 7
SECTION 2.02 Form of Securities and Trustee's Certificate......................................... 8
SECTION 2.03 Denominations; Provisions for Payment................................................ 9
SECTION 2.04 Execution and Authentications........................................................ 10
SECTION 2.05 Registration of Transfer and Exchange................................................ 11
SECTION 2.06 Temporary Securities................................................................. 12
SECTION 2.07 Mutilated, Destroyed, Lost or Stolen Securities...................................... 13
SECTION 2.08 Cancellation......................................................................... 13
SECTION 2.09 Benefits of Indenture................................................................ 14
SECTION 2.10 Authenticating Agent................................................................. 14
SECTION 2.11 Global Securities.................................................................... 14
ARTICLE III
Redemption of Securities and Sinking Fund Provisions
SECTION 3.01 Redemption........................................................................... 16
SECTION 3.02 Notice of Redemption................................................................. 16
SECTION 3.03 Payment Upon Redemption.............................................................. 17
SECTION 3.04 Sinking Fund......................................................................... 17
SECTION 3.05 Satisfaction of Sinking Fund Payments with Securities................................ 18
SECTION 3.06 Redemption of Securities for Sinking Fund............................................ 18
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ARTICLE IV
Certain Covenants
SECTION 4.01 Payment of Principal, Premium and Interest.............................................. 18
SECTION 4.02 Maintenance of Office or Agency......................................................... 18
SECTION 4.03 Paying Agents........................................................................... 19
SECTION 4.04 Appointment to Fill Vacancy in Office of Trustee........................................ 20
SECTION 4.05 Limitations on Liens.................................................................... 20
SECTION 4.06 Limitations on Sale and Lease-Back Transactions......................................... 21
SECTION 4.07 Offer to Repurchase Upon Change of Control Triggering Event............................. 23
ARTICLE V
Securityholders' Lists and Reports by the Company and the Trustee
SECTION 5.01 Company to Furnish Trustee Names and Addresses of Securityholders....................... 24
SECTION 5.02 Preservation Of Information; Communications With Securityholders........................ 24
SECTION 5.03 Reports by the Company.................................................................. 24
SECTION 5.04 Reports by the Trustee.................................................................. 25
SECTION 5.05 No Accountability by Reason of Disclosure............................................... 25
ARTICLE VI
Remedies of the Trustee and Securityholders on Event of Default
SECTION 6.01 Events of Default....................................................................... 26
SECTION 6.02 Collection of Indebtedness and Suits for Enforcement by Trustee......................... 27
SECTION 6.03 Application of Moneys Collected......................................................... 29
SECTION 6.04 Limitation on Suits..................................................................... 29
SECTION 6.05 Rights and Remedies Cumulative; Delay or Omission Not Waiver............................ 30
SECTION 6.06 Control by Securityholders.............................................................. 30
SECTION 6.07 Undertaking to Pay Costs................................................................ 31
ARTICLE VII
Concerning the Trustee
SECTION 7.01 Certain Duties and Responsibilities of Trustee.......................................... 31
SECTION 7.02 Certain Rights of Trustee............................................................... 32
SECTION 7.03 Trustee Not Responsible for Recitals, Validity of Securities or
Application of Proceeds Thereof......................................................... 34
SECTION 7.04 May Hold Securities..................................................................... 34
SECTION 7.05 Moneys Held in Trust.................................................................... 34
SECTION 7.06 Compensation and Reimbursement.......................................................... 34
SECTION 7.07 Reliance on Officers' Certificate....................................................... 35
SECTION 7.08 Disqualification; Conflicting Interests................................................. 35
SECTION 7.09 Corporate Trustee Required; Eligibility................................................. 35
SECTION 7.10 Resignation and Removal; Appointment of Successor....................................... 36
SECTION 7.11 Acceptance of Appointment By Successor.................................................. 37
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SECTION 7.12 Merger, Conversion, Consolidation or Succession to Business............................. 38
SECTION 7.13 Preferential Collection of Claims Against the Company................................... 38
ARTICLE VIII
Concerning the Securityholders
SECTION 8.01 Evidence of Action by Securityholders................................................... 38
SECTION 8.02 Proof of Execution by Securityholders................................................... 39
SECTION 8.03 Who May be Deemed Owners................................................................ 39
SECTION 8.04 Certain Securities Owned by Company Disregarded......................................... 39
SECTION 8.05 Actions Binding on Future Securityholders............................................... 40
ARTICLE IX
Supplemental Indentures
SECTION 9.01 Supplemental Indentures Without the Consent of Securityholders.......................... 40
SECTION 9.02 Supplemental Indentures With Consent of Securityholders................................. 42
SECTION 9.03 Effect of Supplemental Indentures....................................................... 42
SECTION 9.04 Securities Affected by Supplemental Indentures.......................................... 42
SECTION 9.05 Execution of Supplemental Indentures.................................................... 43
ARTICLE X
Successor Corporation
SECTION 10.01 Company May Consolidate, Etc........................................................... 43
SECTION 10.02 Successor Corporation Substituted...................................................... 44
SECTION 10.03 Securities to be Secured in Certain Events............................................. 44
SECTION 10.04 Evidence of Consolidation, Etc. to Trustee............................................. 44
ARTICLE XI
Satisfaction and Discharge and Defeasance
SECTION 11.01 Satisfaction and Discharge of Indenture................................................ 45
SECTION 11.02 Defeasance and Covenant Defeasance..................................................... 45
SECTION 11.03 Deposited Moneys to be Held in Trust................................................... 47
SECTION 11.04 Payment of Moneys Held by Paying Agents................................................ 48
SECTION 11.05 Repayment to Company................................................................... 48
SECTION 11.06 Reinstatement.......................................................................... 48
SECTION 11.07 Other Coin or Currency Units........................................................... 48
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ARTICLE XII
Immunity of Incorporators, Stockholders, Officers and Directors
SECTION 12.01 No Recourse............................................................................ 48
ARTICLE XIII
Miscellaneous Provisions
SECTION 13.01 Effect on Successors and Assigns....................................................... 49
SECTION 13.02 Actions by Successor................................................................... 49
SECTION 13.03 Notices................................................................................ 49
SECTION 13.04 Governing Law.......................................................................... 50
SECTION 13.05 Treatment of Securities as Debt........................................................ 50
SECTION 13.06 Compliance Certificates and Opinions................................................... 50
SECTION 13.07 Payments on Business Days.............................................................. 51
SECTION 13.08 Conflict with Trust Indenture Act...................................................... 51
SECTION 13.09 Effect of Headings and Table of Contents............................................... 51
SECTION 13.10 Counterparts........................................................................... 51
SECTION 13.11 Separability........................................................................... 51
SECTION 13.12 Assignment............................................................................. 51
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(1) This Table of Contents does not constitute part of the Indenture and shall
not have any bearing upon the interpretation of any of its terms or
provisions.
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INDENTURE, dated as of August 7, 2006, between Steelcase Inc., a
Michigan corporation, and ▇.▇. ▇▇▇▇▇▇ Trust Company, National Association, as
Trustee:
WHEREAS, for its lawful corporate purposes, the Company has duly
authorized the execution and delivery of this Indenture to provide for the
issuance of unsecured debt securities (hereinafter referred to as the
"Securities"), in an unlimited aggregate principal amount to be issued from time
to time in one or more series as in this Indenture provided, as registered
Securities without coupons, to be authenticated by the certificate of the
Trustee;
WHEREAS, to provide the terms and conditions upon which the
Securities are to be authenticated, issued and delivered, the Company has duly
authorized the execution of this Indenture; and
WHEREAS, all things necessary to make this Indenture a valid
agreement of the Company, 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
(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
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 (as defined herein),
or that are by reference in the Trust Indenture Act defined in the Securities
Act (as defined herein) (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.
"Attributable Debt" has the meaning set forth in Section 4.06(b).
"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.
"Bankruptcy Law" means Title 11, U.S. Code, or any similar federal
or state law for the relief of debtors.
"Below Investment Grade Rating Event" means the Securities are rated
below an Investment Grade Rating by each of the Rating Agencies on any date from
the date of the public notice of an arrangement that could result in a Change of
Control until the end of the 60-day period following public notice of the
occurrence of the Change of Control (which 60-day period
shall be extended so long as the rating of the Securities is under publicly
announced consideration for possible downgrade by any of the Rating Agencies).
"Board of Directors" means the Board of Directors of the Company or
any committee of such Board duly authorized to act generally or in a particular
respect for the Company hereunder.
"Board Resolution" means a copy of a resolution certified by the
Secretary or an Assistant Secretary of the Company to have been duly adopted by
the Board of Directors and to be in full force and effect on the date of such
certification.
"Business Day" means, with respect to any series of Securities, any
day other than a Saturday, Sunday or other day on which commercial banks in The
City of New York are authorized or required by law to close.
"Capital Stock" means (1) in the case of a corporation, corporate
stock; (2) in the case of an association or business entity (other than a
partnership or limited liability company), any and all shares, interests,
participations, rights or other equivalents (however designated) of corporate
stock; (3) in the case of a partnership or limited liability company,
partnership or membership interests (whether general or limited); and (4) 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, but excluding from all of the foregoing any debt securities convertible
into Capital Stock, whether or not such debt securities include any right of
participation with Capital Stock.
"Change of Control" means the occurrence of any of the following:
(1) the direct or indirect sale, transfer, conveyance or other disposition
(other than by way of merger or consolidation), in one or a series of related
transactions, of all or substantially all of the properties or assets of the
Company and its Subsidiaries taken as a whole to any "person" (as that term is
used in Section 13(d)(3) of the Exchange Act) other than the Company or one of
its Subsidiaries; (2) the adoption of a plan relating to the liquidation or
dissolution of the Company; (3) the consummation of any transaction (including,
without limitation, any merger or consolidation) the result of which is that any
"person" (as that term is used in Section 13(d)(3) of the Exchange Act) becomes
the beneficial owner, directly or indirectly, of more than 50% of the then
outstanding number of shares of our Voting Stock; or (4) the first day on which
a majority of the members of the Company's Board of Directors are not Continuing
Directors.
"Change of Control Offer" has the meaning set forth in Section
4.07(a).
"Change of Control Payment" has the meaning set forth in Section
4.07(a).
"Change of Control Payment Date" has the meaning set forth in
Section 4.07(a).
"Change of Control Triggering Event" means the occurrence of both a
Change of Control and a Below Investment Grade Rating Event.
"Commission" means the Securities and Exchange Commission, or any
successor agency or commission.
2
"Company" means Steelcase Inc., a corporation duly organized and
existing under the laws of the State of Michigan, and, subject to the provisions
of Article X, shall also include its successors and assigns.
"Consolidated Net Tangible Assets" as used herein means, as of any
particular time, the total of all the assets appearing on the most recent
consolidated balance sheet of the Company and the Subsidiaries (other than those
principally engaged in leasing or financing activities) as of the end of the
last fiscal quarter for which financial information is available (less
applicable reserves and other properly deductible items) after deducting from
such amount: (1) all current liabilities, including current maturities of
long-term debt and current maturities of obligations under capital leases (other
than liabilities of Subsidiaries principally engaged in leasing or financing
activities that are not guaranteed by the Company or any of its other
Subsidiaries), and (2) the total of the net book values of all assets of the
Company and its Subsidiaries (other than those principally engaged in leasing or
financing activities) properly classified as intangible assets under U.S.
generally accepted accounting principles (including goodwill, trade names,
trademarks, patents, unamortized debt discount and expense and other like
intangible assets).
"Continuing Directors" means, as of any date of determination, any
member of the Board of Directors of the Company who (1) was a member of such
Board of Directors on the date of this Indenture; or (2) was nominated for
election or elected to such Board of Directors with the approval of a majority
of the Continuing Directors who were members of such Board of Directors at the
time of such nomination or election or a majority of the then outstanding voting
power of the Company's Class B common stock.
"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 ▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇, ▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇ ▇▇▇▇▇, Attention: Worldwide Securities
Services.
"Custodian" means any receiver, trustee, assignee, liquidator or
similar official under any Bankruptcy Law.
"Debt" has the meaning set forth in Section 4.05(a).
"Default" means any event, act or condition that with notice or
lapse of time, or both, would constitute an Event of Default.
"Depositary" means, with respect to Securities of any series that
the Company shall determine will be issued as a Global Security, The Depository
Trust Company, New York, New York, another clearing agency, or any successor
registered as a clearing agency under the Exchange Act or other applicable
statute or regulation, which, in each case, shall be designated by the Company
pursuant to either Section 2.01 or 2.11.
"Event of Default" means, with respect to Securities of a particular
series, any event specified in Section 6.01, and continued for the period of
time, if any, therein designated.
"Exchange Act" means the Securities Exchange Act of 1934, as
amended.
3
"Global Security" means, with respect to any series of Securities, a
Security executed by the Company and delivered by the Trustee to the Depositary
or pursuant to the Depositary's instruction, all in accordance with the
Indenture, which shall be registered in the name of the Depositary or its
nominee.
"Governmental Obligations" means securities that are (1) direct
obligations of the United States of America for the payment of which its full
faith and credit is pledged or (2) obligations of a Person controlled or
supervised by and acting as an agency or instrumentality of the United States of
America, the timely payment of which is unconditionally guaranteed as a full
faith and credit obligation by the United States of America 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.
"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.
"Indenture" means this instrument 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 and, with respect to any Security, by
the terms of such Security (as such terms may be established pursuant to the
applicable provisions hereof).
"Interest Payment Date," when used with respect to any installment
of interest on a Security of a particular series, means the date specified in
such Security, 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.
"Investment Grade Rating" means a rating equal to or higher than
Baa3 (or the equivalent) by Moody's and BBB- (or the equivalent) by S&P.
"Lien" has the meaning set forth in Section 4.05(a).
"Moody's" means ▇▇▇▇▇'▇ Investors Service, Inc.
"Officers' Certificate" means a certificate signed by the Chairman
of the Board of Directors, Chief Executive Officer, President or a Vice
President and by the Chief Financial Officer, Treasurer or an Assistant
Treasurer, or the Controller or an Assistant Controller, or the Secretary or an
Assistant Secretary of the Company 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.
4
"Opinion of Counsel" means an opinion in writing of legal counsel,
who may be an employee of or counsel for the Company, 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.
"Outstanding," when used with reference to Securities of any series,
means, subject to the provisions of Section 8.04, as of any particular time, all
Securities of that series theretofore authenticated and delivered by the Trustee
under this Indenture, except (1) Securities theretofore cancelled by the Trustee
or any paying agent, or delivered to the Trustee or any paying agent for
cancellation, (2) Securities or portions thereof for the payment or redemption
of which moneys or Governmental Obligations in the necessary amount shall have
been deposited pursuant hereto in trust with the Trustee or with any paying
agent (other than the Company) or shall have been set aside and segregated in
trust by the Company (if the Company shall act as its own paying agent) for the
holders of such Securities; provided, however, that if such Securities or
portions of such Securities are to be redeemed prior to the maturity thereof,
notice of such redemption shall have been given as provided in Article III, or
provision satisfactory to the Trustee shall have been made for giving such
notice, and (3) Securities in lieu of or in substitution for which other
Securities shall have been authenticated and delivered pursuant to the terms of
Section 2.07.
"Person" means any individual, corporation, partnership, limited
liability company, joint venture, joint-stock company, unincorporated
organization or government or any agency or political subdivision thereof or any
other entity.
"Principal Property" means the land, improvements, buildings and
fixtures (including any leasehold interest thereof) constituting the principal
corporate office, any manufacturing plant or any manufacturing, research or
engineering facility (whether owned or leased at, or acquired or leased after,
the date of the Indenture) that is owned or leased by the Company or a
Restricted Subsidiary and that is located within the continental United States,
unless the Board of Directors has determined in good faith that such property is
not material to the operation of the business conducted by the Company and the
Subsidiaries taken as a whole.
"Rating Agency" means each of S&P and Moody's, or if S&P or Moody's
or both shall not make a rating on the Securities publicly available, a
nationally recognized statistical rating agency or agencies, as the case may be,
selected by the Company (as certified by a Board Resolution) which shall be
substituted for S&P or Moody's, or both, as the case may be.
"Redemption Date," when used with respect to any Security to be
redeemed, means the date fixed for such redemption by or pursuant to this
Indenture.
"Registrar" has the meaning set forth in Section 2.05(b).
"Responsible Officer" when used with respect to the Trustee means
any officer at the Corporate Trust Office assigned to administer this Indenture,
or to whom any matter arising under this Indenture is referred because of his or
her knowledge of and familiarity with the particular subject.
5
"Restricted Subsidiary" means any Subsidiary (1) substantially all
of whose property is located within the continental United States, (2) which
owns a Principal Property and (3) in which the Company's investment exceeds 2.5%
of the aggregate amount of assets included on a consolidated balance sheet of
the Company and the Subsidiaries as of the end of the last fiscal quarter for
which financial information is available. However, the term "Restricted
Subsidiary" does not include Steelcase Financial Services Inc. (so long as
Steelcase Financial Services Inc. is principally engaged in leasing or financing
activities) or any other Subsidiary that is principally engaged in leasing or
financing activities.
"S&P" means Standard & Poor's Ratings Services, a division of The
▇▇▇▇▇▇-▇▇▇▇ Companies, Inc.
"Sale and Lease-Back Transaction" has the meaning set forth in
Section 4.06(b).
"Securities" means the debt Securities authenticated and delivered
under this Indenture.
"Securities Act" means the Securities Act of 1933, as amended.
"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(b).
"Subsidiary" means (1) any corporation at least a majority of whose
outstanding Voting Stock shall at the time be owned, directly or indirectly, by
the Company, or by one or more of the Subsidiaries or by the Company and one or
more of the Subsidiaries and (2) any general partnership, limited liability
company, joint venture or similar entity, at least a majority of whose
outstanding partnership or similar interests shall at the time be owned by the
Company, by one or more of the Subsidiaries or by the Company and one or more of
the Subsidiaries.
"Transfer" of any Security encompasses any sale, pledge, transfer,
hypothecation or other disposition or any interest therein.
"Trustee" means ▇.▇. ▇▇▇▇▇▇ Trust Company, National Association,
and, subject to the provisions of Article VII, shall also include its successors
and assigns, and, if at any time there is more than one Person acting in such
capacity hereunder, "Trustee" shall mean each such Person. 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.
"Voting Stock" of any specified Person as of any date means 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.
6
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 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, and
set forth in an Officers' Certificate, or established in one or more indentures
supplemental hereto:
(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 of the Securities
of the series is payable;
(4) the place or places where payments will be made;
(5) the rate or rates at which the Securities of the series
shall bear interest or the manner of calculation of such rate or rates, if
any;
(6) 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;
(7) the right, if any, to extend the interest payment periods
and the duration of such extension;
(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 or
purchase Securities of the series pursuant to any sinking fund or
analogous provisions (including payments made in cash in participation 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 or purchased, in whole or in part, pursuant to such obligation;
7
(10) the form of the Securities of the series including the
form of the certificate of authentication for such series;
(11) if other than denominations of one thousand U.S. dollars
($1,000) or any integral multiple thereof, the denominations in which the
Securities of the series shall be issuable;
(12) any and all other terms with respect to such series
(which terms shall not be inconsistent with the terms of this Indenture),
including any terms which may be required by or advisable under any laws
or regulations or advisable in connection with the marketing of Securities
of that series;
(13) whether the Securities are issuable as Global Securities
and, in such case, the identity for the Depositary for such series;
(14) if other than the principal amount thereof, the portion
of the principal amount of Securities of the series which shall be payable
upon declaration of acceleration of the maturity thereof pursuant to
Section 6.01;
(15) any additional or different Events of Default or
restrictive covenants provided for with respect to the Securities of the
series;
(16) any provisions granting special rights to holders when a
specified event occurs;
(17) if other than such coin or currency of the United States
of America as at the time of payment is legal tender for payment of public
or private debts, the coin or currency or currency unit in which payment
of the principal of, or premium, if any, or interest on the Securities of
the series shall be payable;
(18) the application, if any, of Section 4.07; and
(19) the application, if any, of Section 11.02.
All Securities of any one series shall be substantially identical
except as to denomination and except as may otherwise be provided in or pursuant
to any such Board Resolution or in any Officers' Certificate or indentures
supplemental hereto pertaining to such series of Securities.
If any of the terms of the series are established by action taken
pursuant to a Board Resolution, a copy of an appropriate record of such action
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 or supplemental indenture setting forth the terms of the series.
SECTION 2.02 Form of Securities and Trustee's Certificate. The
Securities of any series and the Trustee's certificate of authentication to be
borne by such Securities shall be substantially of the tenor and purport as set
forth in one or more indentures supplemental hereto
8
or as provided in a Board Resolution and as set forth in an Officers'
Certificate 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, 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.
SECTION 2.03 Denominations; Provisions for Payment. The Securities
shall be issuable, except as otherwise provided with respect to any series of
Securities pursuant to Section 2.01, as registered Securities in the
denominations of one thousand U.S. dollars ($1,000) or any integral multiple
thereof, subject to Sections 2.01(11) and 2.01(17). The Securities of a
particular series shall bear interest payable on the dates and at the rate
specified with respect to that series. Unless otherwise provided as contemplated
by Section 2.01 with respect to any series of Securities, 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 the coin or
currency of the United States of America that at the time is legal tender for
public and private debt. Such payment shall be made at the office or agency of
the Company maintained for that purpose in the Borough of Manhattan, the City
and State of New York. Each Security shall be dated the date of its
authentication. Unless otherwise provided as contemplated by Section 2.01,
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.
Any interest on any Security that is payable, but is not punctually
paid or duly provided for, on any Interest Payment Date for Securities of the
same series (herein called "Defaulted Interest") shall forthwith cease to be
payable to the registered holder on the relevant regular record date by virtue
of having been such holder, and such Defaulted Interest shall be paid by the
Company, at its election, as provided in clause (1) or clause (2) below:
(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 an amount of money
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 money
when deposited to be held in trust for the benefit of the Persons
9
entitled to such Defaulted Interest as in this clause provided. 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 10 days
prior to the date of the proposed payment and not less than 10 days after
the receipt by the Trustee of the notice of the proposed payment. The
Trustee shall promptly 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 10 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 be no longer 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, if,
after notice given by the Company to the Trustee of the proposed payment
pursuant to this clause, such manner of payment shall be deemed
practicable by the Trustee.
Unless otherwise set forth in a Board Resolution, Officers'
Certificate or one or more indentures supplemental hereto establishing the terms
of any series of Securities pursuant to Section 2.01 hereof, the term "regular
record date" as used in this Section with respect to a series of Securities with
respect to any Interest Payment Date for such series shall mean (i) either the
fifteenth day of the month immediately preceding the month in which an Interest
Payment Date established for such series pursuant to Section 2.01 hereof shall
occur, if such Interest Payment Date is the first day of a month or (ii) the
last day of the month immediately preceding the month in which an Interest
Payment Date established for such series pursuant to Section 2.01 hereof shall
occur, if such Interest Payment Date is the fifteenth day of a month, whether or
not such date is a Business Day.
Subject to the foregoing provisions of this Section, each Security
of a series delivered under this Indenture upon transfer of 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.
SECTION 2.04 Execution and Authentications. The Securities shall be
signed on behalf of the Company by its Chairman of the Board of Directors, Chief
Executive Officer, President or one of its Vice Presidents, together with its
Chief Financial Officer, Treasurer or any of its Assistant Treasurers, or its
Controller or any of its Assistant Controllers, or its Secretary or any of its
Assistant Secretaries. Such signatures may be the manual or facsimile signatures
of the present or any future such officers. In case any such officer who shall
have signed any of the Securities shall cease to be such officer before the
Security so signed shall be authenticated and delivered by the Trustee or
disposed of by the Company, such Security nevertheless may be authenticated and
delivered or disposed of as though the Person who signed such Security had not
ceased to be such officer of the Company; and any Security may be signed
10
on behalf of the Company by such Persons as, at the actual date of the execution
of such Security, shall be the proper officers of the Company, although at the
date of the execution and delivery of this Indenture any such Person was not
such an officer. 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 that the Security so authenticated has
been duly authenticated and delivered hereunder and that the holder is entitled
to the benefits of this Indenture.
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 to the Trustee for authentication, together with a written order of
the Company for the authentication and delivery of such Securities, signed by
its Chairman of the Board of Directors, Chief Executive Officer, President or
any Vice President and its Treasurer or any Assistant Treasurer, or its
Controller or any Assistant Controller or its Secretary or any Assistant
Secretary, and the Trustee in accordance with such written order shall
authenticate and deliver such Securities.
In authenticating such Securities and accepting the additional
responsibilities under this Indenture in relation to such Securities, the
Trustee shall be provided, and (subject to the Trustee's Compliance with Section
7.01) shall be fully protected in relying upon, an Officers' Certificate and an
Opinion of Counsel each stating that the form and terms thereof have been
established in conformity with the provisions of this Indenture and an Opinion
of Counsel to the effect that all laws, requirements, covenants, and conditions
precedent to the authentication and delivery of such Securities have been
complied with; the Securities, when duly executed by the Company and
authenticated by the Trustee, constitute valid and binding obligations of the
Company, enforceable against the Company in accordance with its terms, except as
the enforceability thereto may be (i) limited by applicable bankruptcy,
insolvency, reorganization, moratorium, liquidation or other similar laws
affecting the rights of creditors generally and (ii) subject to general
principles of equity (regardless of whether such enforceability is considered in
a proceeding in equity or at law), and will entitle the Holders thereof to the
benefits of the Indenture; and the Indenture has been qualified under the Trust
Indenture Act.
SECTION 2.05 Registration of Transfer and Exchange. (a) Securities
of any series may be exchanged upon presentation thereof at the office or agency
of the Company designated for such purpose in the Borough of Manhattan, the City
and State of New York, for other Securities of such series of authorized
denominations, and for a like aggregate principal amount, upon payment of a sum
sufficient to cover any tax or other governmental charge in relation thereto,
all as provided in this Section. In respect of any Securities so surrendered for
exchange, the Company shall execute, the Trustee shall authenticate and such
office or agency shall deliver in exchange therefor the Security or Securities
of the same series that the Securityholder making the exchange shall be entitled
to receive, bearing numbers not contemporaneously outstanding.
(b) The Company shall keep, or cause to be kept, at its office
or agency designated for such purpose in the Borough of Manhattan, the City and
State of New York, or
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such other location designated by the Company a register or registers (herein
referred to as 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 in this Article provided and which at all
reasonable times shall be open for inspection by the Trustee. The registrar for
the purpose of registering Securities and transfer of Securities as herein
provided shall be appointed as authorized by Board Resolution or as established
in one or more indentures supplemental hereto (the "Registrar").
Upon surrender for transfer of any Security at the office or agency
of the Company designated for such purpose, the Company shall execute, the
Trustee shall authenticate and such office or agency shall deliver in the name
of the transferee or transferees a new Security or Securities of the same series
as the Security presented for a like aggregate principal amount.
All Securities presented or surrendered for exchange or registration
of transfer, as provided in this Section, shall be accompanied (if so required
by the Company or the Registrar) by a written instrument or instruments of
transfer, in form satisfactory to the Company or the Registrar, duly executed by
the registered holder or by such holder's duly authorized attorney in writing.
(c) No service charge shall be made for any exchange or
registration of transfer of Securities, or issue of new Securities in case of
partial redemption of any series, but the Company may require payment of a sum
sufficient to cover any tax or other governmental charge in relation thereto,
other than exchanges pursuant to Section 2.06, paragraph (b) of Section 3.03 and
Section 9.04 not involving any transfer, if applicable.
(d) 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 less than all the Outstanding Securities of the same series and
ending at the close of business on the day of such mailing, nor (ii) to register
the transfer of or exchange any Securities of any series or portions thereof
called for redemption.
The provisions of this Section 2.05 are, with respect to any Global
Security, subject to Section 2.11 hereof.
SECTION 2.06 Temporary Securities. Pending the preparation of
definitive Securities of any series, the Company may execute, and the Trustee
shall authenticate and deliver, temporary Securities in lieu thereof (printed,
lithographed or typewritten) in any authorized denomination. 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 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 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
designated for the purpose in the Borough of Manhattan, the City and State of
New York, and the Trustee shall authenticate and such office
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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, the temporary Securities of such series shall be entitled to the same
benefits under this Indenture as definitive Securities of such series
authenticated and delivered hereunder.
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, and upon the Company's request the Trustee (subject as aforesaid)
shall authenticate and deliver, 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. 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 the Company and the Trustee 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 applicant's Security and of the ownership
thereof. The Trustee shall authenticate any such substituted Security and
deliver the same upon the written request or authorization of any officer of the
Company. 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 may, instead of issuing a substitute Security, 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 the Company and the
Trustee 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 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, and shall be entitled to all the
benefits of this Indenture equally and proportionately with any and all other
Securities of the same series duly issued hereunder. 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. Securities surrendered for the purpose of
payment, redemption, exchange or registration of transfer shall, if surrendered
to the Company or any paying agent, 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 request of the Company
at
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the time of such surrender, the Trustee shall deliver to the Company cancelled
Securities held by the Trustee. In the absence of such request the Trustee may
dispose of cancelled Securities in accordance with its standard procedures and
deliver a certificate of disposition to the Company. 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 Benefits of Indenture. 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 herein contained; all such
covenants, conditions and provisions being for the sole benefit of the parties
hereto and of the holders of the Securities.
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 the Trustee shall have the right to appoint.
Said Authenticating Agent shall be authorized to act on behalf of the Trustee to
authenticate Securities of such series issued upon exchange, transfer or partial
redemption thereof, and Securities so authenticated shall be entitled to the
benefits of this Indenture and shall be valid and obligatory 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 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 at any time resign by giving written
notice of resignation to the Trustee and to the Company. The Trustee may at any
time (and upon 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, the Trustee 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) If the Company shall establish
pursuant to Section 2.01 that the Securities of a particular series are to be
issued as one or more Global Securities, then the Company shall execute and the
Trustee shall, in accordance with Section 2.04, authenticate and deliver, 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, (iii) shall be delivered by the Trustee to the
Depositary or pursuant to the Depositary's
14
instruction and (iv) shall bear a legend substantially to the following effect:
"Except as otherwise provided in Section 2.11 of the Indenture, this Security
may be transferred, in whole but not in part, only to another nominee of the
Depositary or to a successor Depositary selected and approved by the Company or
to a nominee of such successor Depositary." The Company and the Trustee may
treat the Depositary (or its nominee) as the sole and exclusive owner of the
Securities registered in its name for the purposes of payment of the principal
of or interest on the Securities, giving any notice permitted or required to be
given under the Indenture, registering the transfer of Securities, obtaining any
consent or other action to be taken by registered owners and for all other
purposes whatsoever; and neither the Company nor the Trustee shall be affected
by any notice to the contrary. Neither the Company nor the Trustee shall have
any responsibility or obligation to any participant in the Depositary, any
Person claiming a beneficial ownership interest in the Securities under or
through the Depositary or any such participant, or any other Person which is not
shown on the register as being a registered owner, with respect to either: (1)
the Securities; or (2) the accuracy of any records maintained by the Depositary
or any such participant; or (3) the payment by the Depositary or any such
participant of any amount in respect of the principal of or interest on the
Securities; or (4) any notice which is permitted or required to be given to
registered owners under the Indenture; or (5) any consent given or other action
taken by the Depositary as registered owner; or (6) any selection by the
Depositary of any participant or other Person to receive payment of principal,
interest or redemption price of the Securities.
(b) Notwithstanding the provisions of Section 2.05, a Global
Security of a series may be transferred, in whole but not in part and in the
manner provided in Section 2.05, only to another nominee of the Depositary for
such series, or to a successor Depositary for such series selected or approved
by the Company or to a nominee of such successor Depositary.
(c) If (1) 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, as the case may be, or (2) an
Event of Default has occurred and is continuing, then, this Section 2.11 shall
no longer be applicable to the Securities of such series and the Company will
execute, and subject to Section 2.04, the Trustee will authenticate and deliver
the Securities of such series in definitive registered form without coupons, in
authorized denominations, and in an aggregate principal amount equal to the
principal amount of the Global Security or Securities of such series in exchange
for such Global Security or Securities. In addition, the Company may at any time
determine that the Securities of any series shall no longer be represented by a
Global Security or Securities and that the provisions of this Section 2.11 shall
no longer apply to the Securities of such series. In such event the Company will
execute and, subject to Section 2.05, the Trustee, upon receipt of an Officers'
Certificate evidencing such determination by the Company, will authenticate and
deliver the Securities of such series in definitive registered form without
coupons, in authorized denominations, and in an aggregate principal amount equal
to the principal amount of the Global Security or Securities of such series in
exchange for such Global Security or Securities. Upon the exchange of the Global
Security or Securities for such Securities in definitive registered form without
coupons, in authorized denominations, the Global Security or Securities shall be
cancelled by the Trustee.
15
Such Securities in definitive registered form issued in exchange for the Global
Security or Securities pursuant to this Section 2.11(c) shall be registered in
such names and in such authorized denominations as the Depositary, pursuant to
instructions from its direct or indirect participants or otherwise, shall
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.
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 hereof and this
Article.
SECTION 3.02 Notice of Redemption. (a) In case the Company shall
desire to exercise such right to redeem all or, as the case may be, a portion of
the Securities of any series in accordance with the right reserved so to do, the
Company shall, or shall cause the Trustee 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 but not more
than 60 days before the date fixed for redemption of that series to such holders
at their last addresses as they shall appear in 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, and shall state (i) that payment of the redemption price of such
Securities to be redeemed will be made at the office or agency of the Company in
the Borough of Manhattan, the City and State of New York, upon presentation and
surrender of such Securities, (ii) that interest accrued and unpaid to the date
fixed for redemption will be paid as specified in said notice, (iii) that from
and after said date interest will cease to accrue and (iv) that 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.
16
(b) If less than all the Securities of a series are to be
redeemed, the Company shall give the Trustee at least 45 days' notice (or such
shorter notice as shall be acceptable 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, and thereupon, if such Securities are not Global
Securities, the Trustee shall select, in such manner as it shall deem
appropriate and fair in its discretion, the Securities (or portions thereof) of
such series to be redeemed and shall thereafter promptly notify the Company in
writing of the numbers of the Securities to be redeemed, in whole or in part.
Unless otherwise provided in an Officers' Certificate or supplemental indenture
provided for in Section 2.01, no Security of a denomination of $1,000 shall be
redeemed in part and Securities may be redeemed in part only in integral
multiples of $1,000.
The Company may, if and whenever it shall so elect, by delivery of
instructions signed on its behalf by its Chairman of the Board of Directors,
Chief Executive Officer, President or any Vice President, 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, such notice to be in the name 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.
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 and unpaid to
the date fixed for redemption and 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, said Securities
shall be paid and redeemed at the applicable redemption price for such series,
together with 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 2.03).
(b) Upon presentation of any Security of such series that is
to be redeemed in part only, the Company shall execute and the Trustee shall
authenticate and the office or agency where the Security is presented shall
deliver to the holder thereof, at the expense of the Company, a new Security of
the same series of authorized denominations in principal amount equal to the
unredeemed portion of the Security so presented.
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.
17
The minimum amount of any sinking fund payment provided for by the
terms of Securities of any series is herein referred to as a "mandatory sinking
fund payment," and any payment in excess of such minimum amount provided for by
the terms of Securities of any series is herein referred to as an "optional
sinking fund payment." 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, subject to Section 3.06, (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 as provided for by the terms of
such series, provided that such Securities have not been previously so credited.
Such Securities shall be received and credited for such purpose by the Trustee
at the redemption price specified in such Securities for redemption through
operation of the sinking fund and the amount of such sinking fund payment shall
be reduced accordingly.
SECTION 3.06 Redemption of Securities for Sinking Fund. Not less
than 45 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 delivering and crediting Securities of that series pursuant to
Section 3.05 and the basis for such credit and will, together with such
Officers' Certificate, 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
SECTION 4.01 Payment of Principal, Premium and Interest. The Company
shall duly and punctually pay or cause to be paid (in the currency or currency
unit in which the Securities of such series are payable) the principal of and
premium, if any, on the Securities, and the interest which shall have accrued
thereon, at the time and place and in the manner provided in the Securities and
in this Indenture.
SECTION 4.02 Maintenance of Office or Agency. So long as any series
of the Securities remain Outstanding, the Company agrees to maintain an office
or agency in the Borough of Manhattan, the City and State of New York, with
respect to each such series and at such other location or locations as may be
designated as provided in this Section 4.02, where (i)
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Securities of that series may be presented for payment, (ii) Securities of that
series may be presented as hereinabove authorized for registration of transfer
and exchange, and (iii) notices and demands to or upon the Company in respect of
the Securities of that series and this Indenture may be given or served, such
designation to continue with respect to such office or agency until the Company
shall, by written notice signed by its Chairman of the Board of Directors, Chief
Executive Officer, President or a Vice President and delivered to the trustee,
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, 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 such presentations, notices and demands in such case.
SECTION 4.03 Paying Agents. (a) If the Company shall appoint one or
more paying agents for all or any series of the Securities, other than the
Trustee, the Company will cause each such paying agent to execute and deliver to
the Trustee an instrument in which such agent shall agree with the Trustee,
subject to the provisions of this Section:
(1) that it will hold all sums held by it as such agent for
the payment of the principal of (and premium, if any) or interest on the
Securities of that series (whether such sums have been paid to it by the
Company or by any other obligor of such Securities) in trust for the
benefit of the Persons entitled thereto;
(2) that it will give the Trustee notice of any failure by the
Company (or by any other obligor of such Securities) to make any payment
of the principal of (and premium, if any) or interest on the Securities of
that series when the same shall be due and payable;
(3) that it will, at any time during the continuance of any
failure referred to in the preceding paragraph (a)(2) above, upon the
written request of the Trustee, forthwith pay to the Trustee all sums so
held in trust by such paying agent; and
(4) that it will perform all other duties of paying agent as
set forth in this Indenture.
(b) If the Company shall act as its own paying agent with respect
to any series of the Securities, it will on or before each due date of the
principal of (and premium, if any) or interest on Securities of that series, set
aside, segregate and hold in trust for the benefit of the Persons entitled
thereto a sum sufficient to pay such principal (and premium, if any) or interest
so becoming due on Securities of that series until such sums shall be paid to
such Persons or otherwise disposed of as herein provided and will promptly
notify the Trustee of such action, or any failure (by it or any other obligor on
such Securities) to take such action. Whenever the Company shall have one or
more paying agents for any series of Securities, it will, prior to each due date
of the principal of (and premium, if any) or interest on any Securities of that
series, deposit with the paying agent a sum sufficient to pay the principal (an
premium, if any) or interest so becoming due, such sum to be held in trust for
the benefit of the Persons entitled to such principal, premium or interest, and
(unless such paying agent is the Trustee) the Company will promptly notify the
Trustee of this action or failure so to act.
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(c) Notwithstanding anything in this Section to the contrary, (i)
the agreement to hold sums in trust as provided in this Section is subject to
the provisions of Section 11.05, and (ii) the Company may at any time, for the
purpose of obtaining the satisfaction and discharge of this Indenture or for any
other purpose, pay, or direct any paying agent to pay, to the Trustee all sums
held in trust by the Company or such paying agent, such sums to be held by the
Trustee upon the same terms and conditions as those upon which such sums were
held by the Company or such paying agent; and, upon such payment by any paying
agent to the Trustee, such paying agent shall be released from all further
liability with respect to such money.
SECTION 4.04 Appointment to Fill Vacancy in Office of Trustee. The
Company, whenever necessary to avoid or fill a vacancy in the office of Trustee,
will appoint, in the manner provided in Section 7.10, a Trustee, so that there
shall at all times be a Trustee hereunder.
SECTION 4.05 Limitations on Liens. (a) The Company agrees that it
shall not, nor shall it permit any Restricted Subsidiary to, issue, incur,
create, assume or guarantee any debt for borrowed money, collectively referred
to as "Debt," secured by any mortgage, deed of trust, security interest, pledge,
lien, charge or other encumbrance, each a "Lien" and collectively "Liens," upon
any Principal Property, shares of stock (or other equivalents of or interests in
equity) or indebtedness of a Restricted Subsidiary without in any such case
providing concurrently with the issuance, incurrence, creation, assumption or
guaranty of such secured Debt, or the grant of such Lien, that the Securities
(and, at the Company's option, any other indebtedness of or guarantee by the
Company ranking equally with the Securities) shall be secured equally and
ratably with (or, at the option of the Company, prior to) such secured Debt. The
foregoing restriction, however, will not apply to Debt secured by:
(1) Liens existing on the date of the initial issuance of any
Securities;
(2) Liens on property, shares of stock (or other equivalents
of or interests in equity) or indebtedness of a Person existing at the
time such Person becomes a Restricted Subsidiary, provided that such Liens
were not created in anticipation of the transaction in which such Person
becomes a Restricted Subsidiary;
(3) Liens on property acquired by the Company or a Restricted
Subsidiary existing at the time of acquisition by the Company or a
Restricted Subsidiary;
(4) Liens upon any property to secure all or a portion of the
purchase price of such property or Debt incurred to finance such purchase
price, whether such Debt was incurred prior to, at the time of or within
12 months after the date of such acquisition; or Liens upon any property
to secure all or part of the cost of improvement, repair or construction
thereof or Debt incurred prior to, at the time of or within 12 months
after the completion of such improvement, repair or construction or the
commencement of full operations thereof (whichever is later) to provide
funds for such purpose;
(5) Liens in favor of the Company or a Restricted Subsidiary;
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(6) Liens on property, shares of stock (or other equivalents
of or interests in equity) or indebtedness of a Person existing at the
time such Person is merged into or consolidated with the Company or a
Restricted Subsidiary or at the time of a sale, lease or other disposition
of all or substantially all of the properties of a Person as an entirety
or substantially as an entirety to the Company or a Restricted Subsidiary,
provided that such Lien was not incurred in anticipation of such merger or
consolidation or sale, lease or other disposition;
(7) Liens on Principal Properties subject to Sale and
Lease-Back Transactions not otherwise prohibited by this Indenture to the
extent attributable to such Sale and Lease-Back Transactions and securing
only the related Attributable Debt;
(8) Liens on property of the Company or a Restricted
Subsidiary in favor of governmental bodies to secure partial, progress,
advance or other payments owed under any contract or statute or to secure
any Debt incurred for the purpose of financing all or any part of the
purchase price or the cost of constructing or improving the property
subject to such Liens; and
(9) any extension, renewal or replacement of any Lien referred
to in the foregoing clauses (1) through (8) or of any Debt secured
thereby; provided, that such extension, renewal or replacement Lien shall
secure no larger an amount of Debt than that existing at the time of such
extension, renewal or replacement.
(b) Notwithstanding the restrictions in Section 4.05(a), the
Company or a Restricted Subsidiary may issue, incur, create, assume or guarantee
Debt secured by a Lien which would otherwise be subject to the foregoing
restrictions, without equally and ratably securing the Securities, provided that
after giving effect thereto, the aggregate amount of (x) all Debt so secured by
Liens (not including Liens permitted under clauses (1) through (9) above) and
(y) all Attributable Debt of Sale and Lease-Back Transactions permitted under
Section 4.06(4) on the basis that Debt secured by a Lien could be incurred
pursuant to this Section 4.05(b), does not exceed the greater of (i) $120
million and (ii) 15% of Consolidated Net Tangible Assets.
SECTION 4.06 Limitations on Sale and Lease-Back Transactions. (a)
The Company agrees that it shall not, nor shall it allow any Restricted
Subsidiary to, enter into, any Sale and Lease-Back Transaction with respect to
any Principal Property, unless at the effective time of such transaction:
(1) such Sale and Lease-Back Transaction occurs within 12
months from the date of the acquisition of the Principal Property subject
thereto or the date of the completion of construction or commencement of
full operations of such Principal Property (whichever is later);
(2) such Sale and Lease-Back Transaction involves a lease for
a term of not more than three years;
(3) such Sale and Lease-Back Transaction is between the
Company and a Restricted Subsidiary or between Restricted Subsidiaries;
21
(4) the Company or the Restricted Subsidiary would be
entitled, pursuant to Section 4.05 (other than clause (7) thereof),
without equally and ratably securing the Securities, to incur Debt secured
by a Lien on the Principal Property involved in such transaction in an
amount at least equal to the Attributable Debt with respect to such Sale
and Lease-Back Transaction; or
(5) the Company or such Restricted Subsidiary, within 12
months after the effective date of such Sale and Lease-Back Transaction,
applies or causes to be applied an amount not less than the Attributable
Debt from such Sale and Lease-Back Transaction to either (or a combination
of) (x) the prepayment, repayment, redemption, reduction or retirement
(other than any mandatory prepayment, mandatory repayment, mandatory
redemption or sinking fund payment or payment at maturity) of Debt of the
Company or any Restricted Subsidiary (other than Debt that is subordinate
to the Securities or Debt to the Company or a Restricted Subsidiary) or
(y) expenditures for the acquisition, construction, development or
expansion of Principal Property used or to be used in the ordinary course
of business of the Company or a Restricted Subsidiary.
(b) The term "Sale and Lease-Back Transaction" means any
arrangement with any Person providing for the leasing by the Company or any
Restricted Subsidiary of any Principal Property, whether owned at the date of
this Indenture or thereafter acquired (excluding temporary leases of a term,
including renewal periods, of not more than three years), that has been or is to
be sold or transferred by the Company or any Restricted Subsidiary to such
Person with the intention of taking back a lease of the property. The term
"Attributable Debt" means, in respect of a Sale and Lease-Back Transaction, at
the time of determination, the present value (discounted at the rate set forth
or implicit in the terms of the lease included in the transaction, as determined
in good faith by a principal accounting officer of the Company) of the
obligation of the lessee for rental payments during the remaining term of the
lease included in such transaction, including any period for which such lease
has been extended or may, at the option of the lessor, be extended or, if
earlier, until the earliest date of which the lessee may terminate such lease
upon payment of a penalty (in which case the obligation of the lessee for rental
payments will include such penalty), after excluding all amounts required to be
paid on account of maintenance and repairs, insurance, taxes, assessments, water
and utility rates and similar charges.
SECTION 4.07 Offer to Repurchase Upon Change of Control Triggering
Event. If this Section is specified, as contemplated by Section 2.01, to be
applicable to Securities of any series:
(a) Upon the occurrence of a Change of Control Triggering Event,
the Company shall notify the Trustee, and make an offer (a "Change of Control
Offer") to each Holder to repurchase all or any part (equal to $1,000 or an
integral multiple thereof) of each Holder's Securities of such series at a
purchase price equal to 101% of the aggregate principal amount thereof plus
accrued and unpaid interest, if any, to the date of purchase (the "Change of
Control Payment"). Within 30 days following any Change of Control Triggering
Event, the Company shall, or shall cause the Trustee to, mail a notice to each
Holder describing the transaction or transactions that constitute the Change of
Control Triggering Event and stating: (1) that the Change of Control Offer is
being made pursuant to this Section 4.07 and that all
22
Securities of such series properly tendered will be accepted for payment; (2)
the purchase price and the purchase date, which shall be no earlier than 30 days
and no later than 60 days from the date such notice is mailed (the "Change of
Control Payment Date"); (3) that any Security of such series not tendered will
continue to accrue interest; (4) that, unless the Company defaults in the
payment of the Change of Control Payment, all Securities of such series accepted
for payment pursuant to the Change of Control Offer shall cease to accrue
interest after the Change of Control Payment Date; (5) that Holders electing to
have any Securities of such series, with the form entitled "Option of Holder to
Elect Purchase" attached as Exhibit A to this Indenture completed, purchased
pursuant to a Change of Control Offer will be required to surrender such
Securities to the Trustee or paying agent at the address specified in the notice
prior to the close of business on the third Business Day preceding the Change of
Control Payment Date; (6) that Holders will be entitled to withdraw their
election if the Trustee or paying agent receives, not later than the close of
business on the second Business Day preceding the Change of Control Payment
Date, a telegram, telex, facsimile transmission or letter setting forth the name
of the Holder, the principal amount of Securities of such series delivered for
purchase, and a statement that such Holder is withdrawing his election to have
such Securities purchased; and (7) that Holders whose Securities of such series
are being purchased only in part will be issued new Securities equal in
principal amount to the unpurchased portion of the Securities surrendered, which
unpurchased portion must be equal to $2,000 in principal amount or an integral
multiple of $1,000 thereof. The Company shall comply with the requirements of
Rule 14e--1 under the Exchange Act and any other securities laws and regulations
thereunder to the extent such laws and regulations are applicable in connection
with the repurchase of Securities of such series in connection with a Change of
Control Triggering Event. To the extent that the provisions of any securities
laws or regulations conflict with this Section 4.07, the Company will comply
with the applicable securities laws and regulations and will not be deemed to
have breached its obligations under this Section 4.07 by virtue of such
conflict; and
(b) On the Change of Control Payment Date, the Company shall, to
the extent lawful, (1) accept for payment all Securities of such series or
portions thereof properly tendered pursuant to the Change of Control Offer, (2)
deposit with the Trustee or paying agent an amount equal to the Change of
Control Payment in respect of all Securities of such series or portions thereof
properly tendered and (3) deliver or cause to be delivered to the Trustee the
Securities of such series properly accepted together with an Officers'
Certificate stating the aggregate principal amount of such Securities or
portions thereof being purchased by the Company. The Trustee or paying agent
shall promptly mail to each Holder of Securities of such series properly
tendered the Change of Control Payment for such Securities, and the Trustee
shall promptly authenticate and mail (or cause to be transferred by book entry)
to each Holder a new Security equal in principal amount to any unpurchased
portion of the Securities surrendered by such Holder, if any; provided, that
each such new Security shall be in a principal amount of $2,000 or an integral
multiple of $1,000 thereof. The Company shall publicly announce the results of
the Change of Control Offer on or as soon as practicable after the Change of
Control Payment Date.
The Company will not be required to make a Change of Control Offer upon a Change
of Control Triggering Event if a third Person makes the Change of Control Offer
in the manner, at the times and otherwise in compliance with the requirements
set forth in this Section 4.07 and all other provisions of this Indenture
applicable to a Change of Control Offer made by the Company and
23
purchases all Securities of such series properly tendered and not withdrawn
under such Change of Control Offer.
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 shall furnish or cause to be furnished to the
Trustee (a) not more than 15 days after each regular record date (as defined in
Section 2.03) 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
regular record 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 request 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 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 Registrar (if acting in
such capacity).
(b) The Trustee may destroy any list furnished to it as provided
in Section 5.01 upon receipt of a new list so furnished.
(c) 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.
SECTION 5.03 Reports by the Company. (a) The Company will file with
the Trustee, within 30 days after the Company is required to file the same 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 the
Company may be required to file with the Commission pursuant to Section 13 or
Section 15(d) of the Exchange Act; or, if the Company is not required to file
information, documents or reports pursuant to either of such sections, then to
file with the Trustee and the Commission, in accordance with the rules and
regulations prescribed from time to time by the Commission, if any, such of the
supplementary and periodic information, documents and reports that may be
required pursuant to Section 13 of the Exchange Act, in respect of a security
listed and registered on a national securities exchange as may be prescribed
from time to time in such rules and regulations. Delivery of such reports,
information and documents to the Trustee is for informative purposes only and
the Trustee's receipt of such shall
24
not constitute notice or constructive notice of any information contained
therein or determinable from information contained therein or determinable from
information contained therein, including the Company's compliance with any of
its covenants hereunder (as to which the Trustee is entitled to rely exclusively
on Officers' Certificates). The Company shall file an Officers' Certificate
complying with Section 314(a)(4) of the Trust Indenture Act with the Trustee on
or prior to each May 15.
(b) The Company will file with the Trustee and the Commission, in
accordance with the rules and regulations prescribed from to time by the
Commission, if any, such additional information, documents and reports with
respect to compliance by the Company with the conditions and covenants provided
for in this Indenture if and as may be required from time to time by such rules
and regulations.
(c) The Company will transmit by mail, first class postage
prepaid, or reputable over-night delivery service that provides for evidence of
receipt, to the Securityholders, as their names and addresses appear upon the
Security Register or as otherwise provided for in Section 313(c) of the Trust
Indenture Act, within 30 days after the filing thereof with the Trustee (unless
some other time shall be fixed by the Commission), copies or summaries of any
information, documents and reports required to be filed by the Company pursuant
to subsections (a) and (b) of this Section as may be required by rules and
regulations prescribed from time to time by the Commission.
SECTION 5.04 Reports by the Trustee. (a) On or before July 15 in
each year in which any of the Securities are Outstanding, the Trustee shall
transmit by mail, first class postage prepaid, to the Securityholders, as their
names and addresses appear upon the Security Register, a brief report dated as
of the preceding May 15, if and to the extent required under Section 313(a) of
the Trust Indenture Act.
(b) The Trustee shall comply with Section 313(b) and 313(c) of
the Trust Indenture Act.
(c) A copy of each such report shall, at the time of such
transmission to Securityholders, be filed by the Trustee with the Company, with
each stock exchange upon which any Securities are listed (if so listed) and also
with the Commission. The Company agrees to notify the Trustee when any
Securities become listed on any stock exchange.
SECTION 5.05 No Accountability by Reason of Disclosure. Each and
every Securityholder, by receiving and holding the same, agrees with the Company
and the Trustee that neither the Company nor the Trustee shall be held
accountable by reason of the disclosure of any such information as to the names
and addresses of the Securityholders in accordance with the provisions of this
Article V, 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 Article V.
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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:
(1) the Company defaults in the payment of any installment of
interest upon any of the Securities of that series, as and when the same
shall become due and payable, and continuance of such default for a period
of 30 days; provided, however, that a valid extension of an interest
payment period by the Company in accordance with the terms of any
indenture supplemental hereto shall not constitute a default in the
payment of interest for this purpose;
(2) the Company defaults in the payment of the principal of
(or premium, if any, on) any of the Securities of that series as and when
the same shall become due and payable whether at maturity, upon
redemption, by declaration or otherwise, or in any payment required by any
sinking or analogous fund established with respect to that series;
provided, however, that a valid extension of the maturity of such
Securities in accordance with the terms of any indenture supplemental
hereto shall not constitute a default in the payment of principal or
premium, if any, for this purpose;
(3) the Company fails to observe or perform any other of its
covenants or agreements with respect to that series contained in this
Indenture or otherwise established with respect to that series of
Securities pursuant to Section 2.01 hereof (other than a covenant or
agreement that has been expressly included in this Indenture solely for
the benefit of one or more series of Securities other than such series)
for a period of 60 days after the date on which written notice of such
failure, requiring the same to be remedied and stating that such notice is
a "Notice of Default" hereunder, shall have been received by the Company
from the Trustee, or received by the Company and the Trustee from the
holders of at least 25% in principal amount of the Securities of that
series at the time Outstanding in each case by registered or certified
mail;
(4) the Company pursuant to or within the meaning of any
Bankruptcy Law (i) commences a voluntary case, (ii) consents to the entry
of an order for relief against it in an involuntary case, (iii) consents
to the appointment of a Custodian of it or for all or substantially all of
its property or (iv) makes a general assignment for the benefit of its
creditors; or
(5) a court of competent jurisdiction enters an order under
any Bankruptcy Law that (i) is for relief against the Company in an
involuntary case, (ii) appoints a Custodian of the Company for all or
substantially all of their respective property or (iii) orders the
liquidation of the Company, and the order or decree remains unstayed and
in effect for 90 days.
(b) In each and every such case (other than an Event of Default
specified in Section 6.01(a)(4) or 6.01(a)(5)), unless the principal of all the
Securities of that series shall
26
have already become due and payable, either the Trustee or the holders of at
least 25% in aggregate principal amount of the Securities of that series then
Outstanding hereunder, by notice in writing to the Company (and to the Trustee
if given by such Securityholders), may declare the 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. If an Event of Default specified in Section 6.01(a)(4) or
6.01(a)(5) occurs and is continuing, the principal of all the Securities of that
series shall become and be immediately due and payable without any declaration
or other act on the part of the Trustee or the holders of the Securities.
(c) At any time after the principal of the Securities of that
series shall have been so declared due and payable (or have become immediately
due and payable), and before any judgment or decree for the payment of the
moneys 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 then Outstanding hereunder, by written notice to the Company and the
Trustee, may rescind and annul such declaration and its consequences if: (i) the
Company has paid or deposited with the Trustee a sum 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 per annum expressed in the Securities of that series to the date of such
payment or deposit) and the amount payable to the Trustee under Section 7.06,
and (ii) any and all Events of Default under the Indenture with respect to such
series, other than the nonpayment of principal on Securities of that series that
shall not have become due by their terms, shall have been remedied or waived as
provided in Section 6.06.
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, 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 6.02 Collection of Indebtedness and Suits for Enforcement by
Trustee. (a) The Company covenants that (1) 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 90 Business Days, or (2) 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 such series or upon redemption or
upon declaration or otherwise,
27
then, upon demand of the Trustee, the Company shall 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
(and premium, if any) or interest, or both, as the case may be, with interest
upon the overdue principal (and 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 per annum 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 sums 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 other obligor upon the
Securities of that series and collect the moneys adjudged or decreed to be
payable in the manner provided by law out of the property of the Company or
other obligor upon the Securities of that series, wherever situated.
(c) In case of any receivership, insolvency, liquidation,
bankruptcy, reorganization, readjustment, arrangement, composition or judicial
proceedings affected the Company, or its 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 shall (except as may be otherwise
provided by law) 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 the 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
moneys or other property payable or deliverable on any such claim, and to
distribute the same after the deduction of the amount payable to the Trustee
under Section 7.06; and 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, and 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 hereunder, the Trustee may in its
discretion 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 the Indenture or in aid of the exercise
of
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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 Moneys Collected. Any moneys collected
by the Trustee with respect to a series of Securities under this Article VI
shall be applied in the following order, at the date or dates fixed by the
Trustee for the distribution of such moneys, and the Trustee may fix a record
date for any such distribution, and, in case of the distribution of such moneys
on account of principal (or premium, if any) or interest, upon presentation of
the Securities of that series, stamping thereon 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 or any predecessor Trustee under Section 7.06;
SECOND: To the payment of the amounts then due and unpaid upon
Securities of such series for principal (and premium, if any) and interest, in
respect of which or for the benefit of which such money has been collected,
ratably, without preference or priority of any kind, according to the amounts
due and payable on such Securities for principal (and 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 other similar official, 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, as hereinbefore provided; (ii)
the holders of at least 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 reasonable
indemnity as it may require against the costs, expenses and liabilities to be
incurred therein or thereby; (iv) the Trustee for 60 days after its receipt of
such notice, request and offer of indemnity, 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 the request.
Notwithstanding anything contained herein to the contrary, 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
29
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, and
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. For the protection and enforcement of the provisions
of this Section, each and every 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 to the Trustee or to the Securityholders shall,
to the extent permitted by law, 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 as aforesaid shall impair any such right or
power, or shall be construed to be a waiver of any such Event of Default or an
acquiescence therein; and, subject to the provisions of Section 6.04, every
power and remedy given by this Article 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. 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 shall, by a Responsible
Officer or Officers of the Trustee, determine that the proceeding so directed
would involve the Trustee in personal liability. The holders of a majority in
aggregate principal amount of the Securities of any series at the time
Outstanding affected thereby, determined in accordance with Section 8.04, may on
behalf of the holders of all of the Securities of such series waive any past
Event of Default or 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, or
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 otherwise than by
acceleration (unless such default has been cured and a
30
sum sufficient to pay all matured installments of interest and principal and any
premium has been deposited with the Trustee (in accordance with Section
6.01(c)). Upon any such waiver, the default covered thereby 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.
SECTION 6.07 Undertaking to Pay Costs. All parties to this Indenture
agree, and each holder of any Securities by such holder's 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, 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 shall not apply to any
suit instituted by the Trustee, to any suit instituted by any Securityholder, or
group of Securityholders, holding in the aggregate 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 (or 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.
ARTICLE VII
Concerning the Trustee
SECTION 7.01 Certain Duties and Responsibilities of Trustee. (a) The
Trustee, prior to the occurrence of an Event of Default with respect to the
Securities of a series and after the curing or waiver of all Events of Default
with respect to the Securities of that series that may have occurred, shall
undertake to perform with respect to the Securities of such series such duties
and only such duties as are specifically set forth in this Indenture, and no
implied covenants shall be read into this Indenture against the Trustee. 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, 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) Within ninety (90) days after the occurrence of an Event of
Default with respect to the Securities of a Series, the Trustee shall, as
provided in Section 315(b) of the Trust Indenture Act, give to the holders of
the Securities of such series notice of each default with respect to the
Securities of such series actually known to a Responsible Officer of the Trustee
in the manner provided in Section 313(c) of the Trust Indenture Act, unless such
Event of Default shall have been cured or waived before the giving of such
notice; but, unless such default be the failure to pay the principal of, or
premium, if any, or interest on any of the Securities of such series when and as
the same shall become payable, or to make any sinking fund payment as to
Securities of the same 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
31
of directors or Responsible Officers of the Trustee in good faith determine that
the withholding of such notice is in the interests of the holders of the
Securities of such series.
(c) 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 willful misconduct, 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 may, with respect to the Securities of such series,
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;
(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;
(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 at least a majority in principal amount of the
Securities of any series at the time Outstanding 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
reasonably assured to it under the terms of this Indenture or adequate
indemnity against such risk is not reasonably assured to it.
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SECTION 7.02 Certain Rights of Trustee. Except as otherwise provided
in Section 7.01:
(a) The Trustee may rely and shall be protected in acting or
refraining from acting upon any resolution, certificate, statement, instrument,
opinion, report, notice, request, consent, order, approval, bond, security or
other paper or document reasonably believed by it to be genuine and to have been
signed or presented by the proper party or parties;
(b) Any request, direction, 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 the Chairman of the Board of
Directors, the Chief Executive Officer, the President or any Vice President and
by the Treasurer or an Assistant Treasurer, or the Controller or an Assistant
Controller, or the Secretary or an Assistant Secretary thereof (unless other
evidence in respect thereof is specifically prescribed herein);
(c) The Trustee may consult with counsel and the written advice
of such counsel or any Opinion of Counsel shall be full and complete
authorization and protection in respect of any action taken, suffered or omitted
hereunder in good faith and in reliance thereon in accordance with such advice
or Opinion of Counsel;
(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
reasonable security or indemnity against the costs, expenses and liabilities
that may be incurred therein or thereby; nothing contained herein shall,
however, relieve the Trustee of the obligation, upon the occurrence of an Event
of Default with respect to a series of the Securities (that has not been cured
or waived) to exercise with respect to Securities of that series such of the
rights and powers vested in it by this Indenture, and to 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;
(e) The Trustee shall not be liable for any action taken or
omitted to be taken by it in good faith and reasonably 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, consent, order, approval, bond,
security, or other papers or documents, unless requested in writing so to do by
the holders of not less than a majority in aggregate principal amount of the
Outstanding Securities of the particular series affected thereby (determined as
provided in Section 8.04); provided, however, that if the payment within a
reasonable time to the Trustee of the costs, expenses or liabilities likely to
be incurred by it in the making of such investigation is, in the opinion of the
Trustee, not reasonably assured to the Trustee by the security afforded to it by
the terms of this Indenture, the Trustee may require reasonable indemnity
against such costs, expenses or liabilities as a condition to so proceeding. The
reasonable expense of every such examination shall be paid by the Company or, if
paid by the Trustee, shall be repaid by the Company upon demand; and
(g) 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
33
shall not be responsible for any misconduct or negligence on the part of any
agent or attorney appointed with due care by it hereunder.
SECTION 7.03 Trustee Not Responsible for Recitals, Validity of
Securities or Application of Proceeds Thereof. (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) The Trustee shall not 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 moneys 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 moneys received by any paying
agent other than the Trustee.
(d) The Trustee shall not be obligated to perform any obligation
hereunder and shall not incur any liability for the nonperformance or breach of
any obligation hereunder to the extent that the Trustee is delayed in
performing, unable to perform or breaches such obligation because of acts of
God, war, terrorism, natural disasters, electrical outages, equipment or
transmission failures, or other causes reasonably beyond its control.
SECTION 7.04 May Hold Securities. The Trustee or any paying agent or
Registrar and their affiliates, in their individual or any other capacity, may
become the owner or pledgee of Securities, and subject to the Trust Indenture
Act, may transact business with the Company and its affiliates, with the same
rights they would have if they were not Trustee, paying agent or Registrar.
SECTION 7.05 Moneys Held in Trust. Subject to the provisions of
Section 11.05, all moneys received by the Trustee shall, until used or applied
as herein provided, 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
moneys received by it hereunder except such as it may expressly agree with the
Company in writing to pay thereon.
SECTION 7.06 Compensation and Reimbursement. (a) The Company
covenants and agrees to pay to the Trustee, and the Trustee shall be entitled
to, such reasonable compensation as the Company and the Trustee may from time to
time 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, and, except as otherwise expressly provided
herein, the Company will pay or reimburse the Trustee upon its request for all
reasonable expenses, disbursements and advances incurred or made by the Trustee
in accordance with any of the provisions of this Indenture (including the
reasonable compensation, expenses and disbursements of its counsel) except any
such expense, disbursement or advance as may arise from its negligence or bad
faith. The Company also covenants to indemnify the Trustee (and its officers,
agents, directors and employees) for, and to hold it harmless against, any loss,
34
liability or expense incurred without negligence, bad faith or willful
misconduct on the part of the Trustee and arising out of or in connection with
the acceptance or administration of this trust, including the costs and expenses
of defending itself against any claim of liability in the premises.
(b) The obligations of the Company under this Section to
compensate and indemnify the Trustee and to pay or reimburse the Trustee for
expenses, disbursements and advances shall constitute additional indebtedness
hereunder. Such additional indebtedness shall 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.
(c) The provisions of this Section 7.06 shall survive the
resignation or removal of the Trustee and the termination of this Indenture.
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) may, in the absence of negligence or bad faith
on the part of the Trustee, 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 of America 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 fifty million
U.S. dollars ($50,000,000), 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, 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 Person directly or indirectly controlling, controlled by, or under
common control with 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, the Trustee shall resign immediately in the manner and with the effect
specified in Section 7.10.
35
SECTION 7.10 Resignation and Removal; Appointment of Successor. (a)
The Trustee or any successor hereafter appointed, may at any time resign with
respect to the Securities of one or more series by giving 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 shall promptly appoint a successor trustee with respect
to Securities of such series by written instrument, in duplicate, executed by
order of the Board of Directors, one copy of which instrument shall be delivered
to the resigning Trustee and one copy to the successor trustee. If no successor
trustee shall have been so appointed and have accepted appointment within 30
days after the mailing of such notice of resignation, the resigning Trustee may
petition any court of competent jurisdiction for the appointment of a successor
trustee with respect to Securities of 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) In case at any time any one of the following shall occur:
(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 with respect
to the Securities, or shall be adjudged a bankrupt or insolvent, or
commence 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,
then, in any such case, the Company may remove the Trustee with respect to
all Securities and appoint a successor trustee by written instrument, in
duplicate, executed by order of the Board of Directors, one copy of which
instrument shall be delivered to the Trustee so removed and one copy to
the successor trustee, or, unless the Trustee's 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 may, on behalf of that
holder and all others similarly situated, petition any court of competent
jurisdiction for the removal of the Trustee and the appointment of a
successor trustee. Such court may thereupon after such notice, if any, as
it may deem proper and prescribe, remove the Trustee and appoint a
successor trustee.
(c) The holders of a majority in aggregate principal amount of
the Securities of any series at the time Outstanding may at any time 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.
36
(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 shall become effective upon acceptance of
appointment by the successor trustee as provided in Section 7.11.
(e) Any successor trustee appointed pursuant to this Section 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; but, on the request of the Company or the
successor trustee, such retiring Trustee shall, upon payment of its charges,
execute and deliver an instrument transferring to such successor trustee all the
rights, powers, and trusts of the retiring Trustee and shall duly assign,
transfer and deliver to such successor trustee all property and money 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 (1) 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, (2)
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
(3) shall add to or change any of the provisions of this Indenture as shall be
necessary to provide for or facilitate the administration of the trusts
hereunder by more than one Trustee, 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; and 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,
such retiring Trustee shall with respect to the Securities of that or those
series to which the appointment of such successor trustee relates have no
further responsibility for the exercise of rights and powers or for the
performance of the duties and obligations vested in the Trustee under this
Indenture, and 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; but, on request of
the Company or any successor trustee, such retiring Trustee shall duly assign,
transfer and deliver to such
37
successor trustee, to the extent contemplated by such supplemental indenture,
the property and money 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.
(c) Upon request of any such successor trustee, the Company shall
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 paragraph (a) or (b) of this Section, 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.
(e) Upon acceptance of appointment by a successor trustee as
provided in this Section, the Company shall transmit notice of the succession of
such trustee hereunder by mail, first class postage prepaid, to the
Securityholders, as their names and addresses appear upon the Security Register.
If the Company fails to transmit such notice within ten days after acceptance of
appointment by the successor trustee, the successor trustee shall cause such
notice to be transmitted at the expense of the Company.
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 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, anything herein to the contrary
notwithstanding. 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 be subject to
Section 311(a) of the Trust Indenture Act to the extent included therein.
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
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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 may, at its option, as evidenced by an Officers'
Certificate, 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.
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 Registrar thereof.
(c) The Trustee may require such additional proof of any matter
referred to in this Section 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 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 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 Registrar shall be affected by any notice to the
contrary.
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 or
waiver under this Indenture, the Securities of that series that are owned by the
Company or any other obligor on the Securities of
39
that series or by any Person directly or indirectly controlling or controlled by
or under common control with the Company or any other obligor on the Securities
of that series 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 the Trustee actually 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, if
the pledgee shall establish to the satisfaction of the Trustee the pledgee's
right so to act with respect to such Securities and that the pledgee is not a
Person directly or indirectly controlling or controlled by or under direct or
indirect common control with the Company or any such other obligor. 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.
SECTION 8.05 Actions Binding on Future Securityholders. At any time
prior to (but not after) 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 may, by filing written notice
with the Trustee, and upon proof of holding as provided in Section 8.02, 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 and the Trustee may from time to time and at any
time 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 Securityholders, for one or more of the following purposes:
(a) to cure any ambiguity or to correct or supplement any
provision contained herein or in any supplemental indenture which may be
defective or inconsistent with any other provision contained herein or in any
supplemental indenture; or to make such other provisions in regard to matters or
questions arising under this Indenture or under any supplemental indenture as
the Board of Directors may deem necessary or desirable and which shall not
materially and adversely affect the interests of the Holders of the Securities;
40
(b) evidence the succession of another corporation to the
Company, or successive successions and the assumption by the successor
corporation of the covenants, agreements and obligations of the Company 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 all or any Series of Securities (and if such covenants are to be for
the benefit of less than all series of Securities, stating that such covenants
are expressly being included solely for the benefit of such series) or to
surrender any right or power herein conferred upon the Company;
(e) to add to, delete from, or revise the conditions,
limitations, and restrictions on the authorized amount, terms, or purposes of
issue, authentication, and delivery of Securities, as herein set forth;
(f) to make any change that does not materially adversely affect
the rights of any Securityholder;
(g) 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 establish the form of any certifications required to be furnished
pursuant to the terms of this Indenture or any series of Securities, or to add
to the rights of the holders of any series of Securities;
(h) to secure the Securities pursuant to the requirements of
Section 4.05 or Section 10.03;
(i) to add any additional Events of Default;
(j) to change or eliminate any of the provisions of this
Indenture; provided that any such change or elimination shall become effective
only when there is no Security of any series Outstanding created prior to the
execution of such supplemental indenture which is entitled to the benefit of
such provision;
(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 trusts
hereunder by more than the one Trustee, pursuant to the requirements of Section
7.11; and
(l) to comply with requirements of the Commission in order to
effect or maintain the qualification of this Indenture under the Trust Indenture
Act.
The Trustee is hereby authorized to join with the Company 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 Trustee's own rights, duties or immunities under this Indenture
or otherwise.
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Any supplemental indenture authorized by the provisions of this
Section may be executed by the Company 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 affected by such supplemental indenture or indentures
at the time Outstanding (including consents obtained in connection with a tender
offer or exchange offer for the Securities), the Company, when authorized by
resolution of its Board of Directors, and the Trustee may from time to time and
at any time enter into an indenture or indentures supplemental hereto (which
shall conform to the provisions of the Trust Indenture Act as then in effect)
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 shall, without the consent of the
holders of each Security then Outstanding and affected thereby, (i) extend the
fixed maturity of any Securities of any series, or reduce the principal amount
thereof, or reduce the rate or extend the time of payment of interest thereon,
or reduce any premium payable upon the redemption thereof or (ii) reduce the
aforesaid percentage of Securities, the holders of which are required to consent
to any such supplemental indenture.
It shall not be necessary for the consent of the Securityholders of
any series affected thereby under this Section to approve the particular form of
any proposed supplemental indenture, but it shall be sufficient if such consent
shall approve the substance thereof.
SECTION 9.03 Effect of Supplemental Indentures. Upon the execution
of any supplemental indenture pursuant to the provisions of this Article or of
Section 10.01, this Indenture shall, with respect to such series, be and be
deemed to be modified and amended in accordance therewith and the respective
rights, limitations of rights, obligations, duties and immunities under this
Indenture of the Trustee, the Company 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, 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 Company, to any modification of this Indenture contained in any
such supplemental indenture may be prepared by the Company, authenticated by the
Trustee and delivered in exchange for the Securities of that series then
Outstanding.
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SECTION 9.05 Execution of Supplemental Indentures. Upon the request
of the Company, accompanied by its Board Resolutions authorizing the execution
of any such supplemental indenture, and upon the filing with the Trustee of
evidence of the consent of Securityholders, if required to consent thereto as
aforesaid, the Trustee shall join with the Company in the execution of such
supplemental indenture unless such supplemental indenture affects the Trustee's
own rights, duties or immunities under this Indenture or otherwise, in which
case the Trustee may in its discretion but shall not be obligated to enter into
such supplemental indenture. The Trustee, subject to the provisions of Section
7.01, shall be provided an Officers' Certificate and an Opinion of Counsel as
conclusive evidence that any supplemental indenture executed pursuant to this
Article complies with the applicable provisions of this Indenture; provided,
however, that such Officers' Certificate and Opinion of Counsel need not be
provided in connection with the execution of a supplemental indenture that
establishes the terms of a series of Securities pursuant to Section 2.01 hereof.
Promptly after the execution by the Company and the Trustee of any
supplemental indenture pursuant to the provisions of this Section, the Trustee
shall transmit by mail, first class postage prepaid, a notice, setting forth in
general terms the substance of such supplemental indenture, to the
Securityholders of all series affected thereby as their names and addresses
appear upon the Security Register. Any failure of the Trustee to mail such
notice, or any defect therein, shall not, however, in any way impair or affect
the validity of any such supplemental indenture.
ARTICLE X
Successor Corporation
SECTION 10.01 Company May Consolidate, Etc. Nothing contained in
this Indenture or in any of the Securities shall prevent any consolidation or
merger of the Company with or into any other entity or entities (whether or not
affiliated with the Company) or successive consolidations or mergers in which
the Company or any of its successors shall be a party or parties, or shall
prevent any sale, conveyance, lease, transfer or other disposition of all or
substantially all of the property of the Company or any of its successors, to
any other entity (whether or not affiliated with the Company or its successors)
authorized to acquire and operate the same; provided, however, the Company
hereby covenants and agrees that, upon any such consolidation, merger, sale,
conveyance, lease, transfer or other disposition involving the Company or all or
substantially all of the property of the Company, if the Company is not the
surviving entity, the due and punctual payment of the principal of (premium, if
any) and interest on all of the Securities of all series in accordance with the
terms of each series, according to their tenor and the due and punctual
performance and observance of all the covenants and conditions of this Indenture
with respect to each series or established with respect to such series pursuant
to Section 2.01 to be kept or performed by the Company shall be expressly
assumed, by supplemental indenture (which shall conform to the provisions of the
Trust Indenture Act, as then in effect) reasonably satisfactory in form to the
Trustee executed and delivered to the Trustee by the entity formed by such
consolidation, or into which the Company shall have been merged, or by the
entity which shall have acquired such property.
43
SECTION 10.02 Successor Corporation Substituted. (a) In case of any
such consolidation, merger, sale, conveyance, lease, transfer or other
disposition and upon the assumption by the successor entity, by supplemental
indenture, executed and delivered to the Trustee and satisfactory in form to the
Trustee, of the due and punctual payment of the principal of, premium, if any,
and interest on all of the Securities of all series Outstanding and the due and
punctual performance of all of the covenants and conditions of this Indenture or
established with respect to each series of the Securities pursuant to Section
2.01 to be performed by the Company with respect to each series, such successor
entity shall succeed to and be substituted for and may exercise every right and
power of the Company under this Indenture with the same effect as if it had been
named as the Company herein, and thereupon the predecessor entity shall be
relieved of all obligations and covenants under this Indenture and the
Securities.
(b) In case of any such consolidation, merger, sale, conveyance,
transfer or other disposition such changes in phraseology and form (but not in
substance) may be made in the Securities thereafter to be issued as may be
appropriate.
(c) Nothing contained in this Indenture or in any of the
Securities shall prevent the Company from merging into itself or acquiring by
purchase or otherwise all or any part of the property of any other Person
(whether or not affiliated with the Company).
SECTION 10.03 Securities to be Secured in Certain Events. If, upon
any consolidation, merger, sale, conveyance, lease, transfer or other
disposition referred to in Section 10.01, any Principal Properties of the
Company or of any Restricted Subsidiary or any shares of capital stock or
indebtedness of any Restricted Subsidiary which is owned immediately after such
consolidation, merger, sale, conveyance, lease, transfer or other disposition by
the Company or a Restricted Subsidiary or a successor to the Company pursuant to
Sections 10.01 and 10.02 would thereupon become subject to any mortgage, deed of
trust, security interest, pledge, lien or encumbrance (other than a mortgage,
deed of trust, security interest, pledge, lien or encumbrance in favor of the
Company, a Restricted Subsidiary or any such successor), then unless such
mortgage, deed of trust, security interest, pledge, lien or encumbrance could be
created pursuant to Section 4.05 without equally and ratably securing the
Securities, the Company or Restricted Subsidiary shall, prior to or concurrently
with such consolidation, merger, sale, conveyance, lease, transfer or other
disposition, effectively provide that the Securities shall be secured equally
and ratably with (or prior to) the obligation or liability which upon such
consolidation, merger, sale, conveyance, lease, transfer or other disposition is
to become secured as to such properties or assets by such mortgage, deed of
trust, security interest, pledge, lien or encumbrance, so long as such
properties or assets shall be subject to such mortgage, deed of trust, security
interest, pledge, lien or encumbrance.
SECTION 10.04 Evidence of Consolidation, Etc. to Trustee. The
Trustee, subject to the provisions of Section 7.01, shall be provided an
Officers' Certificate and an Opinion of Counsel as conclusive evidence that any
such consolidation, merger, sale, conveyance, transfer or other disposition, and
any such assumption and securing of the Securities, comply with the provisions
of this Article.
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ARTICLE XI
Satisfaction and Discharge and Defeasance
SECTION 11.01 Satisfaction and Discharge of Indenture. If at any
time: (a) the Company shall have 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 money and/or
Governmental Obligations have theretofore been deposited in trust or segregated
and held in trust by the Company and thereupon repaid to the Company or
discharged from such trust, as provided in Section 11.05); 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 shall deposit or cause to be deposited with the
Trustee as trust funds the entire amount in moneys or Governmental Obligations
sufficient or a combination thereof, sufficient in the opinion of a nationally
recognized firm of independent public accountants expressed in a written
certification thereof delivered to the Trustee, to pay at maturity or upon
redemption all Securities of that series not theretofore delivered to the
Trustee for cancellation, including principal (and 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 if the Company shall also pay or cause to be paid all other
sums payable hereunder with respect to such series by the Company, and shall
deliver an Officers' Certificate and an Opinion of Counsel, each stating that
all conditions precedent herein provided for relating to the satisfaction and
discharge of this indenture with respect to such series have been complied with,
then this Indenture shall thereupon cease to be of further effect with respect
to such series except for (i) the provisions of Sections 2.03, 2.04, 2.05, 2.06,
2.07, 2.09, 2.10, 2.11, 4.02, 4.03, 4.04, 5.01, 7.05, 7.06, 7.10, 10.01, 10.02
and 10.04, that shall survive until the Securities have been paid in full
(thereafter, the Company's obligations in Sections 7.06 only shall survive) and
(ii) this Article XI. Upon the Company's exercise of this Section 11.01(a), 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 11.02 Defeasance and Covenant Defeasance. In addition to
discharge of this Indenture pursuant to Section 11.01, if this Section is
specified, as contemplated by Section 2.01, to be applicable to Securities of
any series, the Company may at its option elect at any time either to effect:
(i) a defeasance and discharge of the Securities of any particular series under
Section 11.02(a) below; or (ii) a covenant defeasance of the Securities of any
particular series under Section 11.02(b) below; in each case upon compliance
with the applicable conditions set forth in Section 11.02(c).
(a) Upon election by the Company to effect a defeasance and
discharge of the Securities of any series under this Section 11.02(a) and
satisfaction of the conditions precedent set forth in Section 11.02(c) with
respect to the Securities of such series, the Company shall be deemed to have
paid and discharged the Securities of such series and the Company shall be
deemed to have satisfied all its other obligations under such Securities and all
its other obligations relating to such Securities under the Indenture, except
for (i) the provisions of
45
Sections 2.03, 2.04, 2.05, 2.06, 2.07, 2.09, 2.10, 2.11, 4.02, 4.03, 4.04, 5.01,
7.05, 7.06, 7.10, 10.01, 10.02 and 10.04, that shall survive until the
Securities have been paid in full (thereafter, the Company's obligations in
Sections 7.06 only shall survive) and (ii) this Article XI.
(b) Upon election by the Company to effect a covenant defeasance
with respect to the Securities of any series under this Section 11.02(b), the
Company shall be released from its obligations under Section 4.05, Section 4.06
and Section 10.03 of this Indenture (if applicable to such series) and any
covenants made applicable to the Securities of such series which are subject to
defeasance under the terms of any indenture supplemental hereto or the terms
otherwise established with respect to such series pursuant to Section 2.01
hereof and any such failure to comply with such covenants shall not constitute a
default or Event of Default hereunder on or after the date the conditions
precedent set forth in Section 11.02(c) are satisfied (hereinafter, "covenant
defeasance"). For this purpose, such covenant defeasance means that the Company
may omit to comply with and shall have no liability in respect of any term,
condition or limitation set forth in Section 4.05, Section 4.06 and Section
10.03 of this Indenture (if applicable to such series) or in any other covenant
applicable to such series which is subject to defeasance under the terms of an
indenture supplemental hereto or the terms otherwise established with respect to
such series pursuant to Section 2.01 hereof pertaining to such series.
(c) The following shall be conditions precedent to the
application of Sections 11.02(a) and 11.02(b):
(i) with respect to Section 11.02(a) or 11.02(b) the
Company shall have deposited or cause to be deposited irrevocably with the
Trustee, as trust funds in trust for the purpose of making the following
payments and specifically pledged as security for and dedicated solely to
the benefit of the holders of the Securities to be defeased, cash in U.S.
dollars (or such other money or currencies as shall then be legal tender
in the United States) and/or Governmental Obligations, which through the
scheduled payment of interest and principal in respect thereof, in
accordance with their terms, will be provided (and without reinvestment
and assuming no tax liability will be imposed on the Trustee), not later
than one day before the due date of any payment of money, an amount in
cash, sufficient, in the opinion of a nationally recognized firm of
independent certified public accountants expressed in a written
certification thereof delivered to the Trustee, to discharge principal
(including premium, if any) and interest on such Securities on the stated
maturity of such principal or installment of principal or interest on the
dates on which such installments of principal and interest are due, in
accordance with the terms of this Indenture, any indenture supplemental
thereto entered into pursuant to Section 2.01 with respect to such
Securities, and such Securities;
(ii) in the case of defeasance under Section 11.02(a), the
Company shall have delivered to the Trustee an Opinion of Counsel based on
the fact that (A) the Company has received from, or there has been
published by, the Internal Revenue Service a ruling (which ruling may be,
but need not be, issued with respect to the Company) or (B) since the date
of this Indenture, there has been a change in the applicable United States
federal income tax law, in either case to the effect that, and such
opinion shall confirm that, the holders of the Outstanding Securities of
such series will not recognize income, gain or loss for United States
federal income tax purposes as a
46
result of such deposit, defeasance and discharge and will be subject to
United States federal income tax on the same amount and in the same manner
and at the same times as would have been the case if such deposit,
defeasance and discharge had not occurred;
(iii) in the case of covenant defeasance under Section
11.02(b), the Company shall have delivered to the Trustee an Opinion of
Counsel to the effect that, and such opinion shall confirm that, the
holders of the Outstanding Securities of such series will not recognize
income, gain or loss for United States federal income tax purposes as a
result of such deposit and covenant defeasance and will be subject to
United States federal income tax on the same amount and in the same manner
and at the same times as would have been the case if such deposit and
covenant defeasance had not occurred;
(iv) no Event of Default or Default with respect to the
Securities to be defeased shall have occurred and be continuing on the
date of such deposit, and no Event of Default under Sections 6.01(a)(4) or
6.01(a)(5) shall have occurred and be continuing on the 90th day after the
date of such deposit (it being understood that this condition of this
subsection (iv) shall not be deemed satisfied until the expiration of such
period);
(v) such deposit and defeasance or covenant defeasance will
not result in a breach or violation of, or constitute a default under,
this Indenture or any other agreement or instrument to which the Company
is a party or by which it is bound;
(vi) the Company has delivered to the Trustee an Officers'
Certificate and an Opinion of Counsel, each stating that all conditions
precedent provided for relating to either the defeasance and discharge
under Section 11.02(a) or the covenant defeasance under Section 11.02(b)
(as the case may be) have been complied with;
(vii) such defeasance and discharge or covenant defeasance
will not cause the Trustee to have a conflicting interest as defined in
Section 7.08 or for purposes of the Trust Indenture Act with respect to
any securities of the Company or result in the trust arising from such
deposit to constitute an investment company under the Investment Company
Act of 1940 or such trust shall be qualified under such act or exempt from
regulation thereunder; and
(viii) the Company has paid or caused to be paid all other
sums payable with respect to the Securities to be defeased.
SECTION 11.03 Deposited Moneys to be Held in Trust. All moneys or
Governmental Obligations deposited with the Trustee pursuant to Sections 11.01
or 11.02 shall be held in trust and shall be available for payment as due,
either directly or through any paying agent (including the Company acting as its
own paying agent), to the holders of the particular series of Securities for the
payment or redemption of which such moneys or Governmental Obligations have been
deposited with the Trustee.
47
SECTION 11.04 Payment of Moneys Held by Paying Agents. In connection
with the satisfaction and discharge of this Indenture, all moneys or
Governmental Obligations then held by any paying agent under the provisions of
this Indenture shall, upon demand of the Company, be paid to the Trustee and
thereupon such paying agent shall be released from all further liability with
respect to such moneys or Governmental Obligations.
SECTION 11.05 Repayment to Company. Any moneys or Governmental
Obligations deposited with any paying agent or the Trustee, or then held by the
Company, in trust for payment of principal of or premium 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 two years after the date upon which
the principal of (and premium, if any) or interest on such Securities shall have
respectively become due and payable, shall be repaid to the Company on May 31 of
each year or (if then held by the Company) shall be discharged from such trust;
and thereupon the paying agent and the Trustee shall be released from all
further liability with respect to such moneys 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 for the
payment thereof.
SECTION 11.06 Reinstatement. If the Trustee or the paying agent is
unable to apply any money in accordance with either Section 11.01 or 11.02 by
reason of any order or judgment of any court or governmental authority
enjoining, restraining, or otherwise prohibiting such application, then the
Company's obligations under the Securities to be defeased shall be revived and
reinstated as though no deposit had occurred pursuant to this Article XI until
such time as the Trustee or paying agent is permitted to apply all such money in
accordance with Section 11.01 or 11.02; provided, however, that if the Company
makes any payment of principal of (and premium, if any) or interest on any such
Securities following the reinstatement of its obligations, the Company shall be
subrogated to the rights of the holders of such Securities to receive such
payment from the money held by the Trustee or paying agent.
SECTION 11.07 Other Coin or Currency Units. Notwithstanding the
foregoing provisions of this Article XI, if the Securities of any series are
payable in a coin or currency or currency unit other than such coin or currency
of the United States of America as at the time of payment is legal tender for
payment of public or private debts, the coin or currency or currency unit or the
nature of the government obligations to be deposited with the Trustee under the
foregoing provisions of this Article XI shall be set forth in the Officers'
Certificate or established in the supplemental indenture under which the
Securities of such series are issued.
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, stockholder, officer or director, past, present or future as such,
of the Company or of any predecessor or successor corporation, either directly
or through the Company or any such predecessor or successor
48
corporation, whether by virtue of any constitution, statute or rule of law, by
the enforcement of any assessment or penalty, by any legal or equitable
proceeding 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, stockholders, officers or directors as such, of the Company
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, stockholder, 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 covenants,
stipulations, promises and agreements in this Indenture contained by or on
behalf of the Company shall bind their respective successors and assigns,
whether so expressed or not.
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 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.
SECTION 13.03 Notices. Except as otherwise expressly provided herein
any notice or demand that by any provision of this Indenture is required or
permitted to be given or served by the Trustee or by the holders of Securities
to or on the Company may be given or served by being deposited first class
postage prepaid in a post-office letterbox addressed (until another address is
filed in writing by the Company with the Trustee), as follows: Steelcase Inc.,
▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇ ▇▇▇▇▇, Attention: Legal Services. Any
notice, election, request or demand by the Company or any Securityholder to or
upon the Trustee shall be deemed to have been sufficiently given or made, for
all purposes, if given or made in writing at the Corporate Trust Office of the
Trustee. Any notice to be given to any Securityholder shall be given to each
Securityholder by being deposited first class postage prepaid in a post-office
letterbox addressed to his or her address as it appears in the Security Register
and shall be sufficiently given if so mailed within the time prescribed herein.
Failure to mail a notice or communication to a Securityholder or any defect in
it shall not affect its sufficiency with respect to other Securityholders. If a
notice or communication is mailed in the manner provided above, it is duly
given, whether or not the addressee receives it.
49
SECTION 13.04 Governing Law. This Indenture and each Security 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.
SECTION 13.05 Treatment of Securities as Debt. It is intended that
the Securities will be treated as indebtedness and not as equity for 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 to the Trustee to take any action under any
of the provisions of this Indenture, the Company, shall furnish to the Trustee
an Officers' Certificate stating that 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 required by any provision of this Indenture relating to such
particular application or demand, no additional certificate or opinion need be
furnished.
(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 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.
(c) Any certificate, statement or opinion of any officer of the
Company may be based, insofar as it relates to legal matters, upon a certificate
or opinion of or representations by counsel, unless such officer knows that the
certificate or opinion or representations with respect to the matters upon which
his certificate, statement or opinion may be based as aforesaid are erroneous,
or in the exercise of reasonable care should know that the same are erroneous.
Any certificate, statement or opinion of counsel may be based,
insofar as it relates to factual matters or information with respect to which is
in the possession of the Company, upon the certificate, statement or opinion of
or representations by an officer of officers of the Company, unless such counsel
knows that the certificate, statement or opinion or representations with respect
to the matters upon which his certificate, statement or opinion may be based as
aforesaid are erroneous, or in the exercise of reasonable care should know that
the same are erroneous.
Any certificate, statement or opinion of an officer of the Company
or of counsel may be based, insofar as it relates to accounting matters, upon a
certificate or opinion of or representations by an accountant or firm of
accountants in the employ of the Company, unless such officer or counsel, as the
case may be, knows that the certificate or opinion of or
50
representations with respect to the accounting matters upon which his
certificate, statement or opinion may be based as aforesaid are erroneous, or in
the exercise of reasonable care should know that the same are erroneous.
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 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 additional interest shall
accrue as a result of such payment being made on the next succeeding Business
Day.
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 Effect of Headings and Table of Contents. The Article
and Section headings herein and the Table of Contents are for convenience only
and shall not affect the construction hereof.
SECTION 13.10 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.
SECTION 13.11 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.
SECTION 13.12 Assignment. The Company will have the right at all
times to assign any of its rights or obligations under this Indenture to a
direct or indirect wholly-owned Subsidiary, provided that, in the event of any
such assignment, the Company, will remain liable for all such obligations.
Subject to the foregoing, the Indenture is binding upon and inures to the
benefit of the parties thereto and their respective successors and assigns. This
Indenture may not otherwise be assigned by the parties thereto.
51
IN WITNESS WHEREOF, the parties hereto have caused this Indenture to
be duly executed all as of the day and year first above written.
STEELCASE INC.
By /s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇
---------------------------------------------
Name: ▇▇▇▇▇ ▇. ▇▇▇▇▇
Title: Senior Vice President, Chief Financial
Officer
▇.▇. ▇▇▇▇▇▇ TRUST COMPANY, NATIONAL
ASSOCIATION, as Trustee
By /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
---------------------------------------------
Name: ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
Title: Vice President
EXHIBIT A
OPTION OF HOLDER TO ELECT PURCHASE
If you want to elect to have this Security purchased by the Company pursuant to
Section 4.07 of the Indenture, check the box below:
[ ] Section 4.07
If you want to elect to have only part of the Note purchased by the Company
pursuant to Section 4.07 of the Indenture, state the amount you elect to have
purchased: $__________________
Date: ________ Your Signature: ________________________
(Sign exactly as your name appears on
the face of the Security)
Tax Identification No: _________________
Signature Guarantee*:
_____________________________________________________
(*Participant in a Recognized Signature Guarantee Medallion Program)