EXHIBIT 4(b)(15)
UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN CERTIFICATED
FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A
NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR
ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A
SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY. UNLESS THIS
CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY (55 WATER STREET, NEW YORK, NEW YORK) TO THE ISSUER OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS
REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY AND ANY PAYMENT IS
MADE TO CEDE & CO., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL, SINCE THE REGISTERED OWNER HEREOF,
CEDE & CO., HAS AN INTEREST HEREIN.
REGISTERED $[ ]
No. FL-001 CUSIP # [ ]
THE BEAR STEARNS COMPANIES INC.
MEDIUM-TERM NOTE, SERIES B
(FLOATING RATE)
Original Issue Date: January 6, 2005 Interest Reset Date(s): *
Maturity Date: January 6, 2020 Interest Reset Period: Quarterly
Interest Rate Basis: Other. See
"Interest Rate" below. Interest Determination
Date(s): Fifth Business Day
Initial Interest Rate: See prior to but not including
"Interest Rate" below. the applicable Interest
Reset Date.
Index Maturity: N/A
Spread (plus or minus): N/A Day Count Basis: 360-day year
of twelve 30-day months
Maximum Interest Rate: N/A
Minimum Interest Rate: 0.00% Interest Payment Date(s): **
Interest Payment Period: Quarterly
Redeemable On and After: ***
Optional Repayment Date(s): N/A
Minimum Denominations: $100,000, increased in multiples of $10,000
* Commencing April 6, 2005 and on each July 6th, October 6th, January 6th
and April 6th thereafter prior to Maturity. If any Interest Reset Date is
not a Business Day, then the Interest Reset Date will be postponed to the
next Business Day. If the next Business Day is in the next
succeeding calendar month, the Interest Reset Date will be the preceding
Business Day (any such adjustment being referred to as the "Modified
Business Day Convention").
** Commencing April 6, 2005 and on each July 6th, October 6th, January 6th
and April 6th thereafter, including the Maturity Date.
*** Commencing April 6, 2005 and on each Interest Payment Date thereafter
until Maturity, the Notes may be called in whole at par at the option of
the Company on five New York Business Days' notice.
If any Interest Payment Date, Maturity Date or Redemption Date is not a Business
Day, the related payment of principal, premium, if any, or interest will be
postponed to the next Business Day and no additional interest shall accrue for
the period from and after that Interest Payment Date, Maturity Date or
Redemption Date, as the case may be, to the next Business Day. If the next
Business Day is in the next calendar month, principal, premium, if any, or
interest will be paid on the preceding Business Day.
Business Day: Any day that is both a London Banking Day and a
New York Business Day.
London Banking Day: A day other than a Saturday or Sunday on which
dealings in deposits in U.S. dollars are
transacted, or with respect to any future date
are expected to be transacted, in the London
interbank market.
New York Business Day: Any day that is not a Saturday
or Sunday, and that, in New York City, is not a
legal holiday nor a day on which banking
institutions or trust companies in New York City
are authorized or obligated by law to close.
Interest Rate: USD Callable CMS Spread
Principal Protected Range Accrual Note.
The Calculation Agent will determine the Interest
Rate for each Interest Payment Period in
accordance with the following:
For each Interest Payment Period from the Original
Issue Date through January 5, 2010, the Interest
Rate shall equal:
/ n \
|7.00%x---|
\ N /
For each Interest Payment Period from January 6,
2010 through January 5, 2015, the Interest Rate
shall equal:
/ n \
|9.00%x---|
\ N /
-2-
For each Interest Payment Period from January 6,
2015 until the Maturity Date, the Interest Rate
shall equal:
/ n \
|18.00%x---|
\ N /
Where n equals the number of days in the
respective Interest Payment Period in which the
Accrual Provision is satisfied, and N equals the
actual number of days in the respective Interest
Payment Period. See "Accrual Provision" below.
Accrual Provision: Interest will accrue (at the rate per annum under
Interest Rate above for each Interest Payment
Period) on each day on which the 30-Year CMS Rate
minus the 10-Year CMS Rate for the relevant
Accrual Determination Date is equal to or greater
than 0% (such calculation referred to as the
"Accrual Provision"). If however, the difference
of the 30-Year CMS Rate minus the 10-Year CMS
Rate for any Accrual Determination Date is less
than 0%, then no interest will accrue for any day
relating to such Accrual Determination Date. No
determination as to satisfaction of the Accrual
Provision will be made with respect to the
Exclusion Period (as defined below). The
determination with respect to each day of an
Exclusion Period will be deemed to have been made
on the last New York Business Day prior to such
Exclusion Period.
Accrual Determination Date: A determination as to whether the Accrual
Provision has been satisfied will be made on each
Accrual Determination Date. Each New York
Business Day during an Interest Payment Period
will be an Accrual Determination Date, provided
that such New York Business Day is not within the
Exclusion Period. For each day during an
Interest Payment Period that is not a New York
Business Day and not within the Exclusion Period,
the Accrual Determination Date will be the
preceding New York Business Day. The Exclusion
Period means the period beginning on the fifth
New York Business Day prior to but not including
the last day of the current Interest Payment
Period.
30-Year CMS Rate: The rate in effect for each Interest Payment
Period will be the rate that appears on Reuters
page ISDA FIX1 under the heading "30YR" at 11:00
a.m., New York City time on the Interest
Determination Date for that Interest Payment
Period. If such rate does not appear on Reuters
page ISDA FIX1 on such date, the rate for such
date shall be determined as if the parties had
specified "USD-CMS-Reference Banks" as the
applicable rate.
-3-
10-Year CMS Rate: The rate in effect for each Interest Payment
Period will be the rate that appears on Reuters
page ISDA FIX1 under the heading "10YR" at 11:00
a.m., New York City time on the Interest
Determination Date for that Interest Payment
Period. If such rate does not appear on Reuters
page ISDA FIX1 on such date, the rate for such
date shall be determined as if the parties had
specified "USD-CMS-Reference Banks" as the
applicable rate.
USD-CMS-Reference Banks: The rate determined on the basis of the
mid-market semi-annual swap rate quotations
provided by the Reference Banks at approximately
11:00 a.m., New York City time on any Interest
Determination Date; and for this purpose, the
semi-annual swap rate means the mean of the bid
and offered rates for the semi-annual fixed leg,
calculated on a 30/360 day count basis, of a
fixed-for-floating U.S. Dollar interest rate swap
transaction with a term equal to the Designated
Maturity commencing on that date and in a
Representative Amount with an acknowledged dealer
of good credit in the swap market, where the
floating leg, calculated on an actual/360 day
count basis, is equivalent to USD-LIBOR-BBA with
a designated maturity of three months. The rate
for that Interest Determination Date will be the
arithmetic mean of the quotations, eliminating
the highest quotation (or, in the event of
equality, one of the highest) and the lowest
quotation (or, in the event of equality, one of
the lowest).
Reference Banks: The five leading swap dealers in the New York
City interbank market selected by the Calculation
Agent for the purposes of providing quotations as
provided above.
Designated Maturity: Either 30 years or 10 years, as the case may be.
Representative Amount: The amount that is representative for a single
transaction in the relevant market at the
relevant time.
Calculation Agent: Bear, Stearns & Co. Inc.
THE BEAR STEARNS COMPANIES INC., a Delaware corporation (the "Company"),
for value received, hereby promises to pay to CEDE & CO., or registered assigns,
the principal amount stated above on the Maturity Date shown above (the
"Maturity Date") and to pay interest thereon at the rate per annum equal to the
Initial Interest Rate shown above until the first Interest Reset Date shown
above following the Original Issue Date shown above and thereafter at a rate
determined (unless otherwise specified on the face hereof) in accordance with
the provisions on the reverse hereof under the heading "Determination of
Commercial Paper Rate," "Determination of LIBOR," "Determination of Federal
Funds Rate," "Determination of Treasury Rate," "Determination of Prime Rate" or
"Determination of CMT Rate" depending upon whether the Interest Rate Basis is
Commercial Paper Rate, LIBOR, Federal Funds Rate, Treasury Rate, Prime Rate or
CMT Rate, as
-4-
indicated above, until the principal hereof is fully paid or duly made available
for payment. The Company will pay interest monthly, quarterly, semiannually or
annually as indicated above on each Interest Payment Date shown above commencing
with the first Interest Payment Date shown above immediately following the
Original Issue Date shown above, and on the Maturity Date or, if applicable, the
Redemption Date or Optional Repayment Date; provided, however, that if the
Original Issue Date shown above is between a Regular Record Date (as defined
below) and an Interest Payment Date, interest payments will commence on the
Interest Payment Date following the next succeeding Regular Record Date; and
provided, further, however, that if an Interest Payment Date, Maturity Date,
Redemption Date or Optional Repayment Date would fall on a day that is not a
Business Day (as defined on the reverse hereof), unless otherwise specified on
the face hereof, the related payment of principal, premium, if any, or interest
shall be made on the following day that is a Business Day, and no interest shall
accrue for the period from and after that Interest Payment Date, Maturity Date,
Redemption Date or Optional Repayment Date, as the case may be, to the next
Business Day. In the event the Interest Rate Basis is LIBOR, as indicated above,
if such next Business Day falls in the next calendar month, principal, premium,
if any, or interest will be paid on the preceding day that is a Business Day,
provided that any such Business Day is also a London Banking Day (as defined on
the reverse hereof), with respect to such LIBOR Note. Except as provided above
and in the Indenture referred to on the reverse hereof, interest payments will
be made on the Interest Payment Dates shown above. The "Regular Record Date"
shall be the date whether or not a Business Day 15 calendar days immediately
preceding such Interest Payment Date, unless otherwise specified on the face
hereof.
The interest so payable, and punctually paid or duly provided for,
on the Interest Payment Dates referred to above, will, as provided in the
Indenture, be paid to the Person in whose name this Note (or one or more
Predecessor Securities) is registered at the close of business on the Regular
Record Date for such interest, provided, however, that interest payable on the
Maturity Date, or if applicable, the Redemption Date or Optional Repayment Date,
will be paid to the Person to whom the principal of this Note is payable. Any
such interest which is payable, but is not punctually paid or duly provided for,
on any Interest Payment Date shall forthwith cease to be payable to the Holder
on such Regular Record Date, and may be paid to the Person in whose name this
Note (or one or more Predecessor Securities) is registered at the close of
business on a Special Record Date for the payment of such Defaulted Interest to
be fixed by the Trustee, notice whereof shall be given to the Holder of this
Note not less than ten days prior to such Special Record Date, or may be paid at
any time in any other lawful manner not inconsistent with the requirements of
any securities exchange on which the Notes may be listed and upon such notice as
may be required by such exchange, all as more fully provided in the Indenture.
Payment of the principal of and interest on this Note shall be made
at the office or agency of the Trustee maintained for that purpose in the
Borough of Manhattan, The City of New York, in such coin or currency of the
United States of America as at the time of payment is legal tender for the
payment of public and private debt; provided, however, that payment of interest
on any Interest Payment Date (other than the Maturity Date or Redemption Date or
Optional Repayment Date, if any) may be made at the option of the Company by
check mailed to the address of the Person entitled thereto as such address shall
appear in the Security Register, or by wire transfer of immediately available
funds, if the registered holder of at least $10,000,000 in principal amount (or
such other principal amount specified on the face hereof) of Notes entitled to
such interest has so requested by a notice in writing delivered to the Trustee
not less than 16 days prior
-5-
to the Interest Payment Date on which such payment is due, which notice shall
provide appropriate instructions for such transfer.
The principal hereof and interest due at maturity will be paid upon
maturity in immediately available funds against presentation of this Note at the
office or agency of the Trustee maintained for that purpose in the Borough of
Manhattan, The City of New York.
REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS NOTE SET
FORTH ON THE REVERSE HEREOF, WHICH FURTHER PROVISIONS SHALL FOR ALL PURPOSES
HAVE THE SAME EFFECT AS IF SET FORTH ON THE FACE HEREOF.
This Note shall be governed by and construed in accordance with the
laws of the State of New York.
This Note is one of the series of Medium-Term Notes, Series B, of
the Company.
Unless the certificate of authentication hereon has been executed by
JPMorgan Chase Bank, N.A. (formerly, The Chase Manhattan Bank), the Trustee
under the Indenture, or its successor thereunder by the manual signature of one
of its authorized signatories, this Note shall not be entitled to any benefit
under the Indenture or be valid or obligatory for any purpose.
-6-
IN WITNESS WHEREOF, the Company has caused this instrument to be
duly executed under its corporate seal.
Dated:
THE BEAR STEARNS COMPANIES INC.
By:
--------------------------------------
ATTEST:
- --------------------------
Secretary
[Corporate Seal]
CERTIFICATE OF AUTHENTICATION
This is one of the Securities of the series designated therein
referred to in the within-mentioned Indenture.
JPMORGAN CHASE BANK, N.A., as Trustee
By:
--------------------------------
Authorized Signature
-7-
[Reverse of Note]
THE BEAR STEARNS COMPANIES INC.
MEDIUM-TERM NOTE, SERIES B
(FLOATING RATE)
This Note is one of a duly authorized issue of debentures, notes or
other evidences of indebtedness (hereinafter called the "Securities") of the
Company of the series hereinafter specified, all such Securities issued and to
be issued under the Indenture dated as of May 31, 1991, as amended (herein
called the "Indenture"), between the Company and JPMorgan Chase Bank, N.A.
(formerly, The Chase Manhattan Bank), as Trustee (herein called the "Trustee,"
which term includes any successor trustee under the Indenture), to which
Indenture and all indentures supplemental thereto reference is hereby made for a
statement of the respective rights and limitations of rights thereunder of the
Company, the Trustee and the Holders of the Securities, and the terms upon which
the Securities are, and are to be, authenticated and delivered. As provided in
the Indenture, Securities may be issued in one or more series, which different
series may be issued in various aggregate principal amounts, may mature at
different times, may bear interest, if any, at different rates, may be subject
to different redemption provisions, if any, may be subject to different
repayment provisions, if any, may be subject to different sinking, purchase or
analogous funds, if any, may be subject to different covenants and Events of
Default and may otherwise vary as in the Indenture provided or permitted. This
Note is one of a series of the Securities designated as Medium-Term Notes,
Series B (the "Notes"). The Notes of this series may be issued at various times
with different maturity dates, redemption dates and different principal
repayment provisions, may bear interest at different rates and may otherwise
vary, all as provided in the Indenture.
The interest payable on this Note on each Interest Payment Date will
include accrued interest from and including the Original Issue Date or from and
including the last date in respect of which interest has been paid, as the case
may be, to, but excluding, such Interest Payment Date, except that the interest
payment at the Maturity Date, Redemption Date or Optional Repayment Date will
include interest accrued to but excluding such date. Accrued interest from the
Original Issue Date or from the last date to which interest has been paid is
calculated by multiplying the principal amount hereof by an accrued interest
factor. Such accrued interest factor is computed by adding the interest factors
calculated for each day from the Original Issue Date, or from the last date to
which interest has been paid, to the date for which accrued interest is being
calculated. Unless otherwise specified on the face hereof, the interest factor
(expressed as a decimal calculated to seven decimal places without rounding) for
each such day is computed by dividing the interest rate applicable to such day
by 360, in the case of Commercial Paper Rate Notes, Federal Funds Rate Notes,
LIBOR Notes and Prime Rate Notes, or by the actual number of days in the year,
in the case of Treasury Rate Notes. With respect to CMT Rate Notes, interest is
calculated on the basis of twelve 30-day months and a 360-day year. The interest
rate in effect on each day will be (a) if such day is an Interest Reset Date,
the interest rate with respect to the Interest Determination Date pertaining to
such Interest Reset Date or (b) if such day is not an Interest Reset Date, the
interest rate with respect to the Interest Determination Date pertaining to the
next preceding Interest Reset Date; provided, however, that (i) the interest
rate in effect from the Original Issue Date to the first Interest Reset Date
will be the Initial Interest Rate as specified on the face hereof and (ii) the
interest rate in effect for the ten calendar days immediately prior to
-8-
maturity will be that in effect on the tenth calendar day preceding maturity.
Notwithstanding the foregoing, if the rate at which interest is payable is
adjusted daily or weekly, such rate of interest shall be adjusted until the
Interest Reset Date immediately preceding the Maturity Date. Notwithstanding the
foregoing, the interest rate hereon shall not be greater than the Maximum
Interest Rate, if any, or less than the Minimum Interest Rate, if any, shown on
the face hereof. All percentages resulting from any calculations will be
rounded, if necessary, to the nearest one hundred-thousandth of a percent, with
five one-millionths of a percent being rounded upwards. In addition, the
interest rate hereon shall in no event be higher than the maximum rate, if any,
permitted by applicable law.
Commencing with the first Interest Reset Date shown on the face
hereof following the Original Issue Date, and thereafter on each succeeding
Interest Reset Date specified on the face hereof, the rate at which interest on
this Note is payable shall be adjusted daily, weekly, monthly, quarterly,
semiannually or annually as specified on the face hereof under "Interest Reset
Date(s)." Each such adjusted rate shall be applicable on and after the Interest
Reset Date to which it relates to but not including the next succeeding Interest
Reset Date or until the Maturity Date or, if applicable, the Redemption Date or
Optional Repayment Date, as the case may be. Unless otherwise specified on the
face hereof, the Interest Reset Date will be, if this Note resets daily, each
Business Day; if this Note resets weekly, the Wednesday of each week (with the
exception of weekly reset Treasury Rate Notes which will reset the Tuesday of
each week, except as specified below); if this Note resets monthly, the third
Wednesday of each month; if this Note resets quarterly, the third Wednesday of
March, June, September and December; if this Note resets semiannually, the third
Wednesday of the two months specified on the face hereof; and if this Note
resets annually, the third Wednesday of the month specified on the face hereof.
Subject to applicable law and except as specified herein, on each Interest Reset
Date, the rate of interest on this Note shall be the rate determined in
accordance with the provisions applicable below, plus or minus the Spread (as
specified on the face hereof), if any. Unless otherwise specified on the face
hereof, if any Interest Reset Date would otherwise be a day that is not a
Business Day, such Interest Reset Date shall be postponed to the next succeeding
day that is a Business Day, except that in the case of a LIBOR Note, if such
Business Day is in the next succeeding calendar month, such Interest Reset Date
shall be the next preceding Business Day. Unless otherwise specified on the face
hereof, "Business Day" means (i) with respect to any Note, any day that is not a
Saturday or Sunday, and that is neither a legal holiday nor a day on which
banking institutions or trust companies in New York City are authorized or
obligated by law to close, and (ii) with respect to LIBOR Notes only, a London
Banking Day. A "London Banking Day" means any day on which dealings in deposits
in U.S. dollars are transacted in the London interbank market.
The Interest Determination Date pertaining to an Interest Reset Date
will be, if the Interest Rate Basis is Commercial Paper Rate or Federal Funds
(Effective) Rate, the Business Day next preceding such Interest Reset Date.
Unless otherwise specified on the face hereof, the Interest Determination Date
pertaining to an Interest Reset Date will be, if the Interest Rate Basis is
LIBOR, the second London Banking Day preceding such Interest Reset Date. The
Interest Determination Date pertaining to an Interest Reset Date will be, if the
Interest Rate Basis is Treasury Rate, the day of the week in which such Interest
Reset Date falls on which Treasury bills (as defined below) of the Index
Maturity specified on the face hereof are auctioned. Treasury bills normally are
auctioned on Monday of each week, unless that day is a legal holiday, in which
case the auction is normally held on the following Tuesday, except that such
auction may be held on the preceding Friday. If, as a result of a legal holiday,
an auction is so held on the preceding Friday,
-9-
such Friday will be the Interest Determination Date pertaining to the Interest
Reset Date occurring in the next succeeding week. Interest payable hereon will
be payable monthly, quarterly, semiannually or annually (the "Interest Payment
Period") as specified on the face hereof. The Interest Determination Date
pertaining to an Interest Reset Date will be, if the Interest Rate Basis is
Prime Rate or Federal Funds (Open) Rate, the same day as such Interest Reset
Date. The Interest Determination Date pertaining to an Interest Reset Date will
be, if the Interest Rate Basis is CMT Rate, the tenth Business Day prior to each
Interest Reset Date. Unless otherwise specified on the face hereof, interest
will be payable, if this Note resets daily, weekly or monthly, on the third
Wednesday of each month or on the third Wednesday of March, June, September and
December, of each year; if this Note resets quarterly, on the third Wednesday of
March, June, September and December, of each year; if this Note resets
semiannually, on the third Wednesday of the two months of each year specified on
the face hereof; and if this Note resets annually, on the third Wednesday of the
month specified on the face hereof (each such date being an "Interest Payment
Date") and in each case, at maturity or, if applicable, upon redemption or
optional repayment.
Determination of Commercial Paper Rate. If the Interest Rate Basis
specified on the face hereof is "Commercial Paper Rate," the interest rate shall
equal (a) the Money Market Yield (as defined below) on the applicable Interest
Determination Date of the rate for commercial paper having the Index Maturity
specified on the face hereof (i) as published by the Board of Governors of the
Federal Reserve System in "Statistical Release H.15(519), Selected Interest
Rates," or any successor publication ("H.l5(519)"), under the heading
"Commercial Paper--Nonfinancial" or (ii) in the event that such rate is not
published on the Calculation Date (as defined below) pertaining to such Interest
Determination Date, then as published in H.15 Daily Update or any other
recognized electronic source used for displaying that rate under the heading
"Commercial Paper--Nonfinancial" or (b) if neither of such yields is published
by 3:00 P.M., New York City time, on such Calculation Date, the Money Market
Yield of the arithmetic mean of the offered rates as of 11:00 A.M., New York
City time, of three leading dealers of commercial paper in The City of New York
selected by JPMorgan Chase Bank, N.A. (formerly, The Chase Manhattan Bank), as
Calculation Agent (or any successor calculation agent, or any other Calculation
Agent named on the face hereof, the "Calculation Agent"), on that Interest
Determination Date, for commercial paper of the Index Maturity specified on the
face hereof placed for an industrial issuer whose bond rating is "AA," or the
equivalent, from a nationally recognized rating agency, in each of the above
cases, adjusted by the addition or subtraction of the Spread, if any, specified
on the face hereof; provided, however, that if such dealers are not quoting as
mentioned above, the interest rate in effect hereon until the Interest Reset
Date next succeeding the Interest Reset Date to which such Interest
Determination Date relates shall be the rate in effect on the Interest
Determination Date next preceding such Interest Reset Date.
"Money Market Yield" shall be a yield calculated in accordance with
the following formula:
Money Market Yield = D x 360 x 100
-------------
360 - (D x M)
where "D" refers to the per annum rate for commercial paper quoted on a bank
discount basis and expressed as a decimal; and "M" refers to the actual number
of days in the interest period for which interest is being calculated.
-10-
Determination of LIBOR. If the Interest Rate Basis specified on the
face hereof is "LIBOR," the interest rate shall equal, as specified on the face
hereof, either (a) the offered rates for deposits in U.S. dollars having the
Index Maturity specified on the face hereof, commencing (unless otherwise
specified on the face hereof) on the second London Banking Day immediately
following the applicable Interest Determination Date which appears on Telerate
Page 3750 (or such other page as may replace Telerate Page 3750 for the purpose
of displaying London interbank rates of major banks), as of 11:00 A.M., London
time, on such Interest Determination Date adjusted by the addition or
subtraction of the Spread, if any, specified on the face hereof ("LIBOR
Telerate") or (b) the arithmetic mean, as determined by the Calculation Agent,
of the offered rates for deposits in U.S. dollars having the Index Maturity
specified on the face hereof, commencing on the second London Banking Day
immediately following the applicable Interest Determination Date which appears
on the Reuters Screen LIBO Page (or such other page as may replace such Reuters
Screen LIBO Page for the purpose of displaying London interbank rates of major
banks), as of 11:00 A.M., London time, on such Interest Determination Date, if
at least two such offered rates appear on the Reuters Screen LIBO Page (or such
other page as may replace such page) ("LIBOR Reuters"); provided, however, that
if no such rate appears on Telerate Page 3750 (or such other page as may replace
such page) or if fewer than two offered rates appear on the Reuters Screen LIBO
Page (or such other page as may replace such page), the Calculation Agent shall
request the principal London office of each of four major banks in the London
interbank market selected by the Calculation Agent to provide a quotation of the
rate at which such bank offered to prime banks in the London interbank market at
approximately 11:00 A.M., London time, on such Interest Determination Date,
deposits in U.S. dollars having the Index Maturity specified on the face hereof
commencing (unless otherwise specified on the face hereof) on the second London
Banking Day immediately following such Interest Determination Date and in a
principal amount equal to an amount not less than U.S. $1,000,000 that is
representative of a single transaction in such market at such time, and such
rate of interest hereon shall equal the arithmetic mean of (a) such quotations,
if at least two quotations are provided, or (b) if less than two quotations are
provided, the rates quoted at approximately 11:00 A.M., New York City time, on
such Interest Determination Date by three major banks in The City of New York,
selected by the Calculation Agent for loans in U.S. dollars to leading European
banks, having the Index Maturity specified on the face hereof commencing (unless
otherwise specified on the face hereof) on the second London Banking Day
immediately following such Interest Determination Date and in a principal amount
as aforesaid, in either case, adjusted by the addition or subtraction of the
Spread, if any, specified on the face hereof; provided, however, that if the
three banks selected as aforesaid by the Calculation Agent are not quoting as
mentioned above, the interest rate in effect hereon until the Interest Reset
Date next succeeding the Interest Reset Date to which such Interest
Determination Date relates shall be the rate in effect on the Interest
Determination Date next preceding such Interest Reset Date.
Determination of Federal Funds Rate. If the Interest Rate Basis
specified on the face hereof is "Federal Funds Rate," the interest rate shall
equal either the Federal Funds (Effective) Rate or the Federal Funds (Open)
Rate.
Unless otherwise specified on the face hereof, the Federal Funds
(Effective) Rate shall equal (a) the rate on the applicable Interest
Determination Date specified on the face hereof for Federal Funds as published
in H.15(519) under the heading "Federal funds (effective)" on Telerate page 120
or any successor service or page, or (b) if such rate is not so published on the
Calculation Date pertaining to such Interest Determination Date, then the rate
on the applicable
-11-
Interest Determination Date as published in H.15 Daily Update or any other
recognized electronic source used for displaying that rate under the heading
"Federal Funds/Effective Rate."
Unless otherwise specified on the face hereof, the Federal Funds
(Open) Rate shall equal the rate on the applicable Interest Determination Date
specified on the face hereof for Federal Funds as reported on Telerate Page 5
under the heading "Federal Funds/Open."
If (a) the applicable Federal Funds (Effective) Rate described above
or (b) the Federal Funds (Open) Rate described above is not published by 3:00
P.M., New York City time, on the relevant Calculation Date, then the Federal
Funds (Effective) Rate and the Federal Funds (Open) Rate, as applicable, will be
calculated by the Calculation Agent as the arithmetic mean of the rates for the
last transaction in overnight Federal Funds arranged by three leading brokers of
Federal Funds transactions in The City of New York selected by the Calculation
Agent as of 11:00 A.M., New York City time, on such Interest Determination Date,
in each of the above cases, adjusted by the addition or subtraction of the
Spread, if any, specified on the face hereof; provided, however, that if such
brokers are not quoting as mentioned above, the interest rate in effect hereon
until the Interest Reset Date next succeeding the Interest Reset Date to which
such Interest Determination Date relates shall be the rate in effect on the
Interest Determination Date next preceding such Interest Reset Date.
Determination of Treasury Rate. If the Interest Rate Basis specified
on the face hereof is "Treasury Rate," the interest rate shall equal the rate
for the auction held on the applicable Interest Determination Date of direct
obligations of the United States ("Treasury bills") having the Index Maturity
specified on the face hereof as published under the column designated "Invest
Rate" on Telerate page 56 under the heading "US Treasury 3 MO T-Bill Auction
Results" or Telerate page 57 under the heading "US Treasury 6 MO T-Bill Auction
Results," as applicable, or any successor publication, or, if not so published
on the Calculation Date pertaining to such Interest Determination Date, the
auction average rate (expressed as a bond equivalent on the basis of a year of
365 or 366 days, as applicable, and applied on a daily basis) as otherwise
announced by the United States Department of the Treasury, in either case,
adjusted by the addition or subtraction of the Spread, if any, specified on the
face hereof. In the event that the results are not published or reported as
provided above by 3:00 P.M., New York City time, on such Calculation Date, or if
no such auction is held in a particular week, then the rate of interest herein
shall be calculated by the Calculation Agent and shall be a yield to maturity
(expressed as a bond equivalent on the basis of a year of 365 or 366 days, as
applicable, and applied on a daily basis) of the arithmetic mean of the
secondary market bid rates as of approximately 3:30 P.M., New York City time, on
such Interest Determination Date, of three leading primary United States
government securities dealers selected by the Calculation Agent for the issue of
Treasury bills with a remaining maturity closest to the Index Maturity specified
on the face hereof, adjusted by the addition or subtraction of the Spread, if
any, specified on the face hereof; provided, however, that if the dealers
selected as aforesaid by the Calculation Agent are not quoting as mentioned
above, the interest rate in effect hereon until the Interest Reset Date next
succeeding the Interest Reset Date to which such Interest Determination Date
relates shall be the rate in effect on the Interest Determination Date next
preceding such Interest Reset Date.
Determination of Prime Rate. If the Interest Rate Basis specified on
the face hereof is "Prime Rate," the interest rate shall equal (a) the rate on
the applicable Interest Determination Date (i) as reported on Telerate Page 5
under the heading "Bank Rates/Prime" or (ii) as published
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in H.15(519), under the caption "Bank Prime Loan", (b) if the rates referred to
under (a)(i) and (a)(ii) are not published by 9:00 A.M., New York City time, on
the Calculation Date pertaining to such Interest Determination Date, then the
arithmetic mean (as calculated by the Calculation Agent) of the rates of
interest publicly announced by each bank named on the Reuters Screen NYMF Page
(as defined below) as such bank's prime rate or base lending rate as in effect
for such Interest Determination Date as quoted on the Reuters Screen NYMF Page
for such Interest Determination Date, or, if fewer than four such rates appear
on the Reuters Screen NYMF Page for such Interest Determination Date, the rate
shall be the arithmetic mean (as calculated by the Calculation Agent) of the
prime rates quoted on the basis of the actual number of days in the year divided
by 360 as of the close of business on such Interest Determination Date by at
least two of the three major money center banks in The City of New York selected
by the Calculation Agent (after consultation with the Company) from which
quotations are requested, or (c) if fewer than two quotations are provided under
(b) above, the Prime Rate shall be calculated by the Calculation Agent and shall
be determined as the arithmetic mean on the basis of the prime rates in The City
of New York by the appropriate number of substitute banks or trust companies
organized and doing business under the laws of the United States, or any State
thereof, in each case having total equity capital of at least U.S. $500 million
and being subject to supervision or examination by Federal or State authority,
selected by the Calculation Agent (after consultation with the Company) to quote
such rate or rates, in each case adjusted by the addition or subtraction of the
Spread, if any, specified on the face hereof; provided, however, that if in any
month or two consecutive months, the Prime Rate is not reported or published as
provided above, and if such quotations are not available, the interest rate in
effect hereon until the Interest Reset Date next succeeding the Interest Reset
Date to which such Interest Determination Date relates shall be the rate in
effect on the Interest Determination Date next preceding such Interest Reset
Date in each case.
If this failure continues over three or more consecutive months, the
Prime Rate for each succeeding Interest Determination Date until the maturity or
redemption of this Note or, if earlier, until this failure ceases, shall be
LIBOR determined as if this Note were a LIBOR Note, and the Spread, if any, will
be the number of basis points specified on the face hereof as the "Alternate
Rate Event Spread."
"Reuters Screen NYMF Page" means the display designated as Page
"NYMF" on the Reuters Monitor Money Rates Service (or such other page as may
replace the NYMF Page on that service for the purpose of displaying prime rates
or base lending rates of major United States banks).
Determination of CMT Rate. If the Interest Rate Basis specified on
the face hereof is "CMT Rate," the interest rate will be determined by the
Calculation Agent on each Interest Determination Date in accordance with the
following provisions, in each case, adjusted by the addition or subtraction of
the Spread, if any, specified on the face hereof.
Unless otherwise specified on the face hereof, the CMT Rate will be:
(a) the rate displayed on the designated CMT Telerate Page, under
the caption for "... Treasury Constant Maturities... Federal Reserve Board
Release H.15... Mondays Approximately 3:45 p.m.," under the column for the
designated CMT Index Maturity, for: (i) the latest rate displayed at the close
of business on such Interest Determination Date if the designated CMT Telerate
Page is 7051; or (ii) the average for the week, or the month, as specified on
the face
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hereof, ended immediately before the week in which the related Interest
Determination Date occurs if the designated CMT Telerate Page is 7052.
(b) If the applicable rate specified in (a) above is not displayed
on the relevant page by 3:00 p.m., New York City time on that Calculation Date,
unless the calculation is made earlier and the rate is available from that
source at that time on the Calculation Date, then the CMT Rate will be the
Treasury constant maturity rate having the designated Index Maturity, as
published in H.15(519) or another recognized electronic source for displaying
the rate.
(c) If the applicable rate specified in (b) above is not published
in H.15(519) or another recognized electronic source for displaying such rate by
3:00 p.m., New York City time on that Calculation Date, unless the calculation
is made earlier and the rate is available from one of those sources at that
time, then the CMT Rate will be the Treasury constant maturity rate, or other
United States Treasury rate, for the Index Maturity and with reference to the
relevant Interest Determination Date, that is published by either the Board of
Governors of the Federal Reserve System or the United States Department of the
Treasury and that the Calculation Agent determines to be comparable to the rate
formerly displayed on the designated CMT Telerate Page and published in
H.15(519).
(d) If the applicable rate specified in (c) above cannot be
determined, then the Calculation Agent will determine the CMT Rate to be a yield
to maturity based on the average of the secondary market offered rates as of
approximately 3:30 p.m., New York City time, on the relevant Interest
Determination Date reported, according to their written records, by three
leading primary United States government securities dealers in New York City.
The Calculation Agent will select five such securities dealers after consulting
with the Company, and will eliminate the highest quotation (or, in the event of
equality, one of the highest) and the lowest quotation (or, in the event of
equality, one of the lowest), for the most recently issued direct noncallable
fixed rate obligations of the United States Treasury ("Treasury Notes") with an
original maturity of approximately the designated Index Maturity and a remaining
term to maturity of not less than the designated Index Maturity minus one year
in a representative amount. If two Treasury Notes with an original maturity as
described above have remaining terms to maturity equally close to the designated
Index Maturity, the quotes for the Treasury Note with the shorter remaining term
to maturity will be used.
(e) If the Calculation Agent cannot obtain three Treasury Note
quotations of the kind described in the prior paragraph, the Calculation Agent
will determine the CMT Rate to be the yield to maturity based on the average of
the secondary market offered rates for Treasury Notes with an original maturity
longer than the designated CMT Index Maturity which have a remaining term to
maturity closest to the designated CMT Index Maturity and in a representative
amount, as of approximately 3:30 p.m., New York City time, on the relevant
Interest Determination Date of leading primary United States government
securities dealers in New York City. In selecting these offered rates, the
Calculation Agent will request quotations from at least five such securities
dealers and will disregard the highest quotation (or if there is equality, one
of the highest) and the lowest quotation (or if there is equality, one of the
lowest). If two Treasury Notes with an original maturity longer than the
designated CMT Index Maturity have remaining terms to maturity that are equally
close to the designated CMT Index Maturity, the Calculation Agent will obtain
quotations for the Treasury Note with the shorter remaining term to maturity.
(f) If fewer than five but more than two if the leading primary
United States
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government securities dealers are quoting as described in the prior paragraph,
then the CMT Rate for the relevant Interest Determination Date will be based on
the average of the offered rates obtained, and neither the highest nor the
lowest of those quotations will be eliminated.
(g) If two or fewer leading primary United States government
securities dealers selected by the Calculation Agent are quoting as described
above, the CMT Rate will remain the CMT Rate then in effect on that Interest
Determination Date.
The Calculation Date pertaining to an Interest Determination Date
shall be the earlier of (a) the tenth calendar day after such Interest
Determination Date or if any such day is not a Business Day, the next succeeding
Business Day, or (b) the Business Day prior to the applicable Interest Payment
Date, Maturity Date, Redemption Date or Optional Repayment Date. The Calculation
Agent shall calculate the interest rate hereon in accordance with the foregoing
and will confirm in writing such calculation to the Trustee and any Paying Agent
immediately after each determination. Neither the Trustee nor any Paying Agent
shall be responsible for any such calculation. All determinations made by the
Calculation Agent shall be, in the absence of manifest error, conclusive for all
purposes and binding on the Company and holders of the Note. At the request of
the Holder hereof, the Calculation Agent will provide to the Holder hereof the
interest rate hereon then in effect and, if different, the interest rate that
will become effective as a result of a determination made on the most recent
Interest Reset Date with respect to the Note.
If so specified on the face of this Note, this Note may be redeemed
by the Company on and after the date so indicated on the face hereof. If no such
date is set forth on the face hereof, this Note may not be redeemed prior to
maturity. On and after such date, if any, from which this Note may be redeemed,
unless otherwise specified on the face hereof, this Note may be redeemed in
whole or in part in increments of $1,000 (provided, unless a different minimum
denomination is set forth on the face hereof, that any remaining principal
amount of this Note shall be at least $25,000) at the option of the Company, at
a redemption price equal to 100% of the principal amount to be redeemed,
together with interest thereon payable to the Redemption Date, on notice given,
unless otherwise specified on the face hereof, not more than 60 nor less than 30
days prior to the Redemption Date. If less than all the Outstanding Notes having
such terms as specified by the Company are to be redeemed, the particular Notes
to be redeemed shall be selected by the Trustee not more than 60 days prior to
the Redemption Date from the Outstanding Notes having such terms as specified by
the Company not previously called for redemption, by such method as the Trustee
shall deem fair and appropriate. The notice of such redemption shall specify
which Notes are to be redeemed. In the event of redemption of this Note, in part
only, a new Note or Notes in authorized denominations for the unredeemed portion
hereof shall be issued in the name of the Holder hereof upon the surrender
hereof.
If so specified on the face of this Note, this Note will be subject
to repayment at the option of the Holder hereof on the Optional Repayment
Date(s). Except as set forth in the next paragraph, if no Optional Repayment
Date is set forth on the face hereof, this Note may not be repaid at the option
of the Holder prior to maturity. Unless otherwise specified on the face hereof,
on and after the Optional Repayment Date, if any, from which this Note may be
repaid at the option of the Holder, this Note shall be repayable in whole or in
part in increments of $1,000 (provided, unless a different minimum denomination
is set forth on the face hereof, that any remaining principal amount of this
Note shall be at least $25,000) at a repayment price equal to 100% of the
principal amount to be repaid, together with interest thereon payable to the
Optional Repayment
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Date. For this Note to be repaid in whole or in part at the option of the Holder
hereof, the Trustee must receive not less than 30 nor more than 60 days prior to
the Optional Repayment Date (i) this Note with the form entitled "Option to
Elect Repayment," which appears below, duly completed or (ii) a telegram, telex,
facsimile transmission or a letter from a member of a national securities
exchange or the National Association of Securities Dealers, Inc. or a commercial
bank or trust company in the United States of America setting forth the name of
the Holder of this Note, the principal amount of this Note, the certificate
number of this Note or a description of this Note's tenor or terms, the
principal amount of this Note to be repaid, a statement that the option to elect
repayment is being exercised thereby and a guarantee that this Note with the
form entitled "Option to Elect Repayment," which appears below, duly completed,
will be received by the Trustee no later than five Business Days after the date
of such telegram, telex, facsimile transmission or letter and this Note and such
form duly completed are received by the Trustee by such fifth Business Day.
Exercise of the repayment option shall be irrevocable.
If an Event of Default with respect to the Notes shall occur and be
continuing, the Trustee or the Holders of not less than 25% in principal amount
of the Outstanding Notes may declare the principal of all the Notes due and
payable in the manner and with the effect provided in the Indenture.
The Indenture permits, with certain exceptions as therein provided,
the amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Securities of each series to be
affected under the Indenture at any time by the Company and the Trustee with the
consent of the Holders of 66-2/3% in aggregate principal amount of the
Securities at the time Outstanding of each series affected thereby. The
Indenture also contains provisions permitting the Holders of specified
percentages in aggregate principal amount of the Securities of each series at
the time Outstanding, on behalf of the Holders of all Securities of each series,
to waive compliance by the Company with certain provisions of the Indenture and
certain past defaults under the Indenture and their consequences. Any such
consent or waiver by the Holder of this Note shall be conclusive and binding
upon such Holder and upon future Holders of this Note and of any Note issued
upon the registration of transfer hereof or in exchange hereof or in lieu hereof
whether or not notation of such consent or waiver is made upon this Note.
Holders of Securities may not enforce their rights pursuant to the
Indenture or the Securities except as provided in the Indenture. No reference
herein to the Indenture and no provision of this Note or the Indenture shall
alter or impair the obligation of the Company, which is absolute and
unconditional, to pay the principal of and interest on this Note at the time,
place, and rate, and in the coin or currency, herein prescribed.
As provided in the Indenture and subject to certain limitations
therein set forth, the transfer of this Note may be registered on the Security
Register of the Company, upon surrender of this Note for registration of
transfer at the office or agency of the Company in the Borough of Manhattan, The
City of New York, duly endorsed by, or accompanied by a written instrument of
transfer in form satisfactory to the Company, and this Note duly executed by,
the Holder hereof or by his attorney duly authorized in writing and thereupon
one or more new Notes, of authorized denominations and for the same aggregate
principal amount, will be issued to the designated transferee or transferees.
-16-
Unless otherwise specified on the face hereof, the Notes are
issuable only in registered form without coupons in denominations of $25,000 or
any amount in excess thereof which is an integral multiple of $1,000. As
provided in the Indenture and subject to certain limitations therein set forth,
this Note is exchangeable for a like aggregate principal amount of Notes of
different authorized denomination as requested by the Holder surrendering the
same.
No service charge will be made for any such registration of transfer
or exchange, but the Company may require payment of a sum sufficient to cover
any tax or other governmental charge payable in connection therewith.
Prior to the due presentment of this Note for registration of
transfer, the Company, the Trustee and any agent of the Company or the Trustee
may treat the Person in whose name this Note is registered as the owner hereof
for all purposes, whether or not this Note be overdue, and neither the Company,
the Trustee nor any such agent shall be affected by notice to the contrary.
The interest rate payable with respect to this Note shall in no
event be higher than the maximum rate, if any, permitted by applicable law.
All capitalized terms used in this Note and not otherwise defined
herein shall have the meanings assigned to them in the Indenture.
-17-
ABBREVIATIONS
The following abbreviations, when used in the inscription on the face of this
instrument, shall be construed as though they were written out in full according
to applicable laws or regulations:
TEN COM - as tenants in common
TEN ENT - as tenants by the entireties
JT TEN - as joint tenants with right of survivorship and not as tenants
in common
UNIF GIFT MIN ACT - ________________________ Custodian ________________________
(Cust) (Minor)
Under Uniform Gifts to Minors Act
_________________________________________
(State)
Additional abbreviations may also be used though not in the above list.
____________________
OPTION TO ELECT REPAYMENT
The undersigned hereby irrevocably request(s) and instruct(s) the
Company to repay this Note (or portion thereof specified below) pursuant to its
terms on _____________, 20__ (the "Optional Repayment Date") at a price equal to
the principal amount thereof, together with interest to the Optional Repayment
Date, to the undersigned at
________________________________________________________________________________
________________________________________________________________________________
(Please print or typewrite name and address of the undersigned.)
For this Note to be repaid the Trustee must receive at 4 New York
Plaza, New York, New York 10004, Attention: Debt Operations -- 13th Floor, or at
such other place or places of which the Company shall from time to time notify
the Holder of this Note, not more than 60 days nor less than 30 days prior to
the Optional Repayment Date, this Note with this "Option to Elect Repayment"
form duly completed.
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If less than the entire principal amount of this Note is to be
repaid, specify the portion thereof (which shall be increments of $1,000) which
the Holder elects to have repaid: $______________; and specify the denomination
or denominations (which, unless a different minimum denomination is set forth on
the face hereof, shall be $25,000 or an integral multiple of $1,000 in excess of
$25,000) of the Notes to be issued to the Holder for the portion of this Note
not being repaid (in the absence of any such specification, one such Note will
be issued for the portion not being repaid):
$________________.
Date:____________________ ________________________________________________
Note: The signature to this Option to Elect
Repayment must correspond with the same as written
upon the face of this Note in every particular
without alteration or enlargement.
_________________________________
ASSIGNMENT
----------
FOR VALUE RECEIVED, the undersigned
hereby sell(s), assign(s) and transfer(s) unto
________________________________________________________________________________
PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE
________________________________________________________________________________
________________________________________________________________________________
PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS INCLUDING POSTAL ZIP CODE OF ASSIGNEE
________________________________________________________________________________
the within Note and all rights thereunder, hereby irrevocably constituting and
appointing
______________________________________________________________________ Attorney
to transfer said Note on the books of the Company, with full power of
substitution in the premises.
Dated: __________________________
________________________________
_______________________________________
(Signature Guarantee)
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