Exhibit 4.5
KEYSPAN CORPORATION,
Issuer
JPMORGAN CHASE BANK,
Trustee
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INDENTURE
Dated as of February 1, 2002
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Subordinated Debt Securities
KEYSPAN CORPORATION
Reconciliation and tie showing the location in the Indenture dated as
of February 1, 2002 of the provisions inserted pursuant to Sections 310 to
318(a), inclusive, of the Trust Indenture Act of 1939, as amended.
Trust Indenture Act Section Indenture Section
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Section 310 (a)(1)..............................................................................................609
(a)(2)...........................................................................................609
(a)(3)................................................................................Not Applicable
(a)(4)................................................................................Not Applicable
(b)..............................................................................................608
610(d)
(c) ..................................................................................Not Applicable
Section 311 (a)...................................................................................613(a) and 613(c)
(b)................................................................................613(b) and 613(c)
(c) ..................................................................................Not Applicable
Section 312 (a).................................................................................................701
702(a)
(b)...........................................................................................702(b)
(c)...........................................................................................702(c)
Section 313 (a)..............................................................................................703(a)
(b)...........................................................................................703(b)
(c)................................................................................703(a) and 703(b)
(d)...........................................................................................703(d)
Section 314 (a).................................................................................................704
(b)...................................................................................Not Applicable
(c)..............................................................................................102
(c)(1)...........................................................................................102
(c)(2)...........................................................................................102
(c)(3)................................................................................Not Applicable
(d)...................................................................................Not Applicable
(e)..............................................................................................102
Section 315 (a)..............................................................................................601(a)
(b)..............................................................................................602
..........................................................................................................703(a)(7)
(c) ..........................................................................................601(b)
(d)...........................................................................................601(c)
(d)(1).....................................................................................601(a)(1)
(d)(2).....................................................................................601(c)(2)
(d)(3).....................................................................................601(c)(3)
(e)..............................................................................................514
Section 316 (a)(1)(A) 502 and 512
(a)(1)(B)........................................................................................513
(a)(2)................................................................................Not Applicable
(b)..............................................................................................508
Section 317 (a)(1) ..........................................................................................503
(a)(2)...........................................................................................504
(b).............................................................................................1003
Section 318 (a).................................................................................................107
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NOTE: This reconciliation and tie shall not, for any purpose, be deemed to be a part of the Indenture.
TABLE OF CONTENTS
PARTIES 1
RECITALS 1
ARTICLE 1 Definitions and Other Provisions of General Application.................................................1
Section 101. Definitions...............................................................................1
Section 102. Compliance Certificates and Opinions.....................................................13
Section 103. Form of Documents Delivered to Trustee...................................................14
Section 104. Acts of Holders..........................................................................14
Section 105. Notices, Etc., to Trustee and the Company................................................16
Section 106. Notice to Holders; Waiver................................................................17
Section 107. Conflict with Trust Indenture Act........................................................17
Section 108. Effect of Headings and Table of Contents.................................................18
Section 109. Successors and Assigns...................................................................18
Section 110. Separability Clause......................................................................18
Section 111. Benefits of Indenture....................................................................18
Section 112. Governing Law............................................................................18
Section 113. Non-Business Day.........................................................................18
Section 114. Immunity of Incorporators, Stockholders, Officers and Directors..........................18
Section 115. Certain Matters Relating to Currencies...................................................19
Section 116. Language of Notices, Etc.................................................................19
ARTICLE 2 Security Forms.........................................................................................20
Section 201. Forms of Securities......................................................................20
Section 202. Form of Trustee's Certificate of Authentication..........................................20
Section 203. Securities in Global Form................................................................20
ARTICLE 3 The Securities.........................................................................................21
Section 301. Title; Payment and Terms.................................................................21
Section 302. Denominations and Currencies.............................................................25
Section 303. Execution, Authentication, Delivery and Dating...........................................25
Section 304. Temporary Securities and Exchange of Securities..........................................26
Section 305. Registration, Registration of Transfer and Exchange......................................30
Section 306. Mutilated, Destroyed, Lost and Stolen Securities and Coupons.............................33
Section 307. Payment of Interest; Interest Rights Preserved...........................................34
Section 308. Persons Deemed Owners....................................................................36
Section 309. Cancellation.............................................................................36
Section 310. Computation of Interest and Determination of Comparable Yield............................37
Section 311. Currency and Manner of Payments in Respect of Securities.................................37
Section 312. Appointment and Resignation of Currency Determination Agent..............................40
ARTICLE 4 Satisfaction and Discharge.............................................................................40
Section 401. Option to Effect Legal Defeasance or Covenant Defeasance.................................40
Section 402. Legal Defeasance and Discharge...........................................................41
Section 403. Covenant Defeasance......................................................................41
Section 404. Conditions to Legal or Covenant Defeasance...............................................42
Section 405. Satisfaction and Discharge of Indenture..................................................43
Section 406. Survival of Certain Obligations..........................................................44
Section 407. Acknowledgment of Discharge by Trustee...................................................45
Section 408. Application of Trust Moneys..............................................................45
Section 409. Repayment to the Company; Unclaimed Money................................................45
Section 410. Reinstatement............................................................................46
ARTICLE 5 Remedies...............................................................................................46
Section 501. Events of Default........................................................................46
Section 502. Acceleration of Maturity; Rescission and Annulment.......................................48
Section 503. Collection of Indebtedness and Suits for Enforcement by Trustee..........................49
Section 504. Trustee May File Proofs of Claim.........................................................50
Section 505. Trustee May Enforce Claims Without Possession of Securities or Coupons...................51
Section 506. Application of Money Collected...........................................................51
Section 507. Limitation on Suits......................................................................51
Section 508. Unconditional Right of Holders to Receive Principal (and Premium, if any) and Interest,
if any. 52
Section 509. Restoration of Rights and Remedies.......................................................52
Section 510. Rights and Remedies Cumulative...........................................................53
Section 511. Delay or Omission Not Waiver.............................................................53
Section 512. Control by Holders.......................................................................53
Section 513. Waiver of Past Defaults..................................................................53
Section 514. Undertaking for Costs....................................................................54
Section 515. Waiver of Stay or Extension Laws.........................................................54
Section 516. Judgment Currency........................................................................54
ARTICLE 6 The Trustee............................................................................................55
Section 601. Certain Duties and Responsibilities......................................................55
Section 602. Notice of Defaults.......................................................................56
Section 603. Certain Rights of Trustee................................................................56
Section 604. Not Responsible for Recitals or Issuance of Securities...................................57
Section 605. May Hold Securities......................................................................58
Section 606. Money Held in Trust......................................................................58
Section 607. Compensation and Reimbursement...........................................................58
Section 608. Disqualification; Conflicting Interests..................................................59
Section 609. Corporate Trustee Required; Different Trustees for Different Series; Eligibility.........59
Section 610. Resignation and Removal; Appointment of Successor........................................60
Section 611. Acceptance of Appointment by Successor...................................................61
Section 612. Merger, Conversion, Consolidation or Succession to Business..............................62
Section 613. Preferential Collection of Claims Against Company........................................62
Section 614. Authenticating Agents....................................................................62
ARTICLE 7 Holders' Lists and Reports by Trustee and the Company..................................................64
Section 701. Company to Furnish Trustee Names and Addresses of Holders................................64
Section 702. Preservation of Information; Communications to Holders...................................64
Section 703. Reports by Trustee.......................................................................66
Section 704. Reports by Company.......................................................................66
ARTICLE 8 Consolidation, Merger, Conveyance or Transfer..........................................................67
Section 801. Company May Consolidate, Etc., Only on Certain Terms.....................................67
Section 802. Successor Corporation Substituted........................................................67
ARTICLE 9 Supplemental Indentures................................................................................68
Section 901. Supplemental Indentures Without Consent of Holders.......................................68
Section 902. Supplemental Indentures With Consent of Holders..........................................69
Section 903. Execution of Supplemental Indentures.....................................................70
Section 904. Effect of Supplemental Indentures........................................................71
Section 905. Conformity With Trust Indenture Act......................................................71
Section 906. Reference in Securities to Supplemental Indentures.......................................71
ARTICLE 10 Covenants.............................................................................................71
Section 1001. Payment of Principal (and Premium, if any) and Interest, if any.........................71
Section 1002. Maintenance of Office or Agency.........................................................72
Section 1003. Money for Securities Payments To Be Held in Trust.......................................73
Section 1004. Payment of Taxes and Other Claims.......................................................74
Section 1005. Statements as to Compliance.............................................................74
Section 1006. Corporate Existence.....................................................................75
Section 1007. Waiver of Certain Covenants.............................................................75
Section 1008. Payment of Additional Amounts...........................................................75
ARTICLE 11 Redemption of Securities..............................................................................77
Section 1101. Applicability of This Article...........................................................77
Section 1102. Election to Redeem; Notice to Trustee...................................................78
Section 1103. Selection by Trustee of Securities to Be Redeemed.......................................78
Section 1104. Notice of Redemption....................................................................78
Section 1105. Deposit of Redemption Price.............................................................79
Section 1106. Securities Payable on Redemption Date...................................................80
Section 1107. Securities Redeemed in Part.............................................................80
Section 1108. Tax Redemption; Special Tax Redemption..................................................81
ARTICLE 12 Sinking Funds.........................................................................................84
Section 1201. Applicability of This Article...........................................................84
Section 1202. Satisfaction of Sinking Fund Payments With Securities...................................84
Section 1203. Redemption of Securities for Sinking Fund...............................................84
ARTICLE 13 Meetings of Holders of Securities.....................................................................85
Section 1301. Purposes for Which Meetings May Be Called...............................................85
Section 1302. Call, Notice and Place of Meetings......................................................85
Section 1303. Persons Entitled to Vote at Meetings....................................................85
Section 1304. Quorum; Action..........................................................................86
Section 1305. Determination of Voting Rights; Conduct and Adjournment of Meetings.....................86
Section 1306. Counting Votes and Recording Action of Meetings.........................................87
ARTICLE 14 Subordination.........................................................................................88
Section 1401. Securities Subordinate to Senior Indebtedness...........................................88
Section 1402. Payment Over of Proceeds Upon Dissolution, Etc..........................................88
Section 1403. No Payment When Senior Indebtedness in Default..........................................89
Section 1404. Payment Permitted If No Default.........................................................91
Section 1405. Subrogation to Rights of Holders of Senior Indebtedness.................................91
Section 1406. Provisions Solely to Define Relative Rights.............................................91
Section 1407. Trustee to Effectuate Subordination.....................................................91
Section 1408. No Waiver of Subordination Provisions...................................................92
Section 1409. Notice to Trustee.......................................................................92
Section 1410. Reliance on Judicial Order or Certificate of Liquidating Agent..........................93
Section 1411. Trustee Not Fiduciary for Holders of Senior Indebtedness................................94
Section 1412. Rights of Trustee as Holder of Senior Indebtedness; Preservation of Trustee's Rights...94
Section 1413. Article Applicable to Paying............................................................94
ARTICLE 15 Conversion and Exchange...............................................................................94
Section 1501. Applicability of Article................................................................94
Section 1502. Conversion Privilege....................................................................94
Section 1503. Conversion and Exchange Procedure.......................................................95
Section 1504. Fractional Shares.......................................................................95
Section 1505. Taxes on Conversion or Exchange.........................................................95
Section 1506. Company to Provide Securities Issuable Upon Conversion or Exchange......................95
Section 1507. Adjustments.............................................................................95
Section 1508. Valuation...............................................................................96
Section 1509. Reorganization of Company...............................................................96
Section 1510. Trustee's Disclaimer....................................................................96
EXHIBITS
EXHIBIT A. Form of Certificate To Be Delivered to Euro-clear or Clearstream
by a Beneficial Owner of Securities, in Order to Receive a Definitive
Bearer Security in Exchange for an Interest in a Temporary Global
Security or to Exchange an Interest in a Temporary Global Security for
an Interest in a Permanent Global Security.
EXHIBIT B. Form of Certificate To Be Given to the Appropriate Trustee by
Euro-clear or Clearstream Regarding the Exchange of a Temporary Global
Security for Definitive Securities or for a Portion of a Permanent
Global Security.
EXHIBIT C. Form of Certificate To Be Delivered to Euro-clear or Clearstream
by a Beneficial Owner of Securities, in Order to Receive Payment on a
Temporary Global Security.
EXHIBIT D. Form of Certificate To Be Given to the Appropriate Trustee by
Euro-clear or Clearstream Regarding Payment on a Temporary Global
Security.
INDENTURE dated as of February 1, 2002, between KEYSPAN CORPORATION, doing
business as KeySpan Energy, a corporation duly incorporated and existing under
the laws of New York and having its principal executive office at One MetroTech
Center, Brooklyn, New York 11201 (hereinafter called "the Company") and JPMORGAN
CHASE BANK, a corporation organized and existing under the laws of the State of
New York, as Trustee (hereinafter called the "Trustee").
RECITALS OF THE COMPANY
The Company deems it necessary to issue from time to time for its
lawful purposes securities (hereinafter called the "Securities") evidencing its
unsecured subordinated indebtedness and has duly authorized the execution and
delivery of this Indenture to provide for the issuance from time to time of the
Securities, unlimited as to principal amount, to have such titles, to bear such
rates of interest, to mature at such time or times and to have such other
provisions as shall be fixed as hereinafter provided.
All things necessary to make this Indenture a valid agreement of the
Company, in accordance with its terms, have been done, and the Company proposes
to do all things necessary to make the Securities, when executed by the Company
and authenticated and delivered by the Trustee hereunder and duly issued by the
Company, the valid obligations of the Company as hereinafter provided.
NOW, THEREFORE, THIS INDENTURE WITNESSETH:
For and in consideration of the premises and the purchase of the
Securities by the Holders thereof, it is mutually covenanted and agreed, for the
equal and proportionate benefit of all Holders of the Securities or series
thereof, as follows:
ARTICLE 1
DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION
-------------------------------------------------------
Section 101. Definitions.
For all purposes of this Indenture and all Securities issued hereunder,
except as otherwise expressly provided or unless the context otherwise requires:
(1) the terms defined in this Article have the meanings assigned to them
in this Article and include the plural as well as the singular;
(2) all other terms used herein which are defined in the Trust Indenture
Act, either directly or by reference therein, have the meanings
assigned to them therein;
(3) all accounting terms not otherwise defined herein have the meanings
assigned to them in accordance with generally accepted accounting
principles in the United States, and the term "generally accepted
accounting principles" with respect to any computation required or
permitted hereunder shall mean such accounting principles as are
generally accepted in the United States at the date or time of such
computation; and
(4) the words "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.
Certain terms, used principally in Article 3 and Article 6, are defined
in those Articles.
"Act", when used with respect to any Holder, has the meaning specified
in Section 104.
"Affiliate" of any specified Person means any other Person directly or
indirectly controlling or controlled by or under direct or indirect common
control with such specified Person. For the purposes of this definition,
"control", when used with respect to any specified Person, means the power to
direct the management and policies of such Person, directly or indirectly,
whether through the ownership of voting securities, by contract or otherwise;
and the terms "controlling" and "controlled" have meanings correlative to the
foregoing.
"Attributable Value" means, as to any particular lease under which the
Company or any of its Gas Utility Subsidiaries is at any time liable as lessee
and at any date as of which the amount thereof is to be determined, the total
net obligations of the lessee for rental payments during the remaining term of
the lease (including any period for which such lease has been extended or may,
at the option of the lessor, be extended) discounted from the respective due
dates thereof to such date at a rate per annum equivalent to the interest rate
inherent in such lease (as determined in good faith by us in accordance with
generally accepted financial practice) compounded semi-annually.
"Authenticating Agent" means any Person authorized to authenticate and
deliver Securities on behalf of the Trustee for the Securities of any series
pursuant to Section 614.
"Authorized Newspapers" means a newspaper customarily published at
least once a day for at least five days in each calendar week and of general
circulation in New York City and in London and, to the extent the Securities are
listed on the Luxembourg Stock Exchange and the Luxembourg Stock Exchange shall
so require, in Luxembourg or, if it shall be impracticable in the opinion of the
Trustee for the Securities of the appropriate series to make such publication,
in another capital city in Western Europe. Such publication (which may be in
different newspapers) is expected to be made in the Eastern edition of The Wall
Street Journal, in the London edition of the Financial Times and, if applicable,
in the Luxemburger Wort.
"Bearer Security" means any Security established pursuant to Section
201 which is payable to bearer.
"Board of Directors", when used with reference to the Company, means
either the board of directors or any duly authorized committee of that board or
any director or directors and/or officer or officers to whom that board or
committee shall have duly delegated its authority, of the Company.
"Board Resolution", when used with reference to the Company, means (1)
a copy of a resolution certified by the Secretary or an Assistant Secretary of
the Company, as the case may be, to have been duly adopted by its Board of
Directors and to be in full force and effect on the date of such certification,
or (2) a certificate signed by the director or directors or officer or officers
to whom the Board of Directors of the Company shall have duly delegated its
authority, and delivered to the Trustee for the Securities of any series.
"Business Day" means any day, other than a Saturday or Sunday, that is
neither a legal holiday nor a day on which commercial banks are authorized or
required by law, regulation or executive order to close in The City of New York;
provided, however, that, with respect to Securities not denominated in Dollars,
the day is also not a day on which commercial banks are authorized or required
by law, regulation or executive order to close in the Principal Financial Center
of the country issuing the Foreign Currency or currency unit or, if the Foreign
Currency or currency unit is euro, the day is also a day on which the
Trans-European Automated Real-time Gross Settlement Express Transfer (TARGET)
System is open; provided, further, that, with respect to LIBOR Securities, the
day is also a London Business Day.
"Capital Lease Obligation" of any Person means the obligation to pay
rent or make other payments under a lease of (or other Indebtedness arrangements
conveying the right to use) real or personal property of such Person which is
required to be classified and accounted for as a capital lease or a liability on
the balance sheet of such Person in accordance with generally accepted
accounting principles. The Stated Maturity of such obligation shall be the date
of the last payment of rent or any other amount due under such lease prior to
the first date upon which such lease may be terminated by the lessee without
payment of a penalty.
"Capital Stock" of any Person means shares, interests, rights to
purchase, warrants, options, participation or other equivalents of or interests
in (however designated) equity of such Person, including any preferred stock,
but excluding any debt securities convertible into such equity.
"Certificate of a Firm of Independent Public Accountants" means a
certificate signed by any firm of independent public accountants of recognized
standing selected by the Company. The term "independent" when used with respect
to any specified firm of public accountants means such a firm which (1) is in
fact independent, (2) does not have any direct financial interest or any
material indirect financial interest in the Company or in any other obligor upon
the Securities of any series or in any affiliate of the Company or of such other
obligor, and (3) is not connected with the Company or such other obligor or any
affiliate of the Company or of such other obligor, as an officer, employee,
promoter, underwriter, trustee, partner, director or person performing similar
functions, but such firm may be the regular auditors employed by the Company.
Whenever it is herein provided that any Certificate of a Firm of Independent
Public Accountants shall be furnished to the Trustee for Securities of any
series, such Certificate shall state that the signer has read this definition
and that the signer is independent within the meaning hereof.
"Code" means the Internal Revenue Code of 1986, as amended, and the
regulations thereunder.
"Clearstream" means Clearstream Banking S.A.
"Commission" means the Securities and Exchange Commission, as from time
to time constituted, created under the Exchange Act, or if at any time after the
execution of this instrument such Commission is not existing and performing the
duties now assigned to it under the Trust Indenture Act, then the body
performing such duties on such date.
"Company" means the Person named as the "Company" in the first
paragraph of this instrument until a successor corporation shall have become
such pursuant to the applicable provisions of this Indenture, and thereafter
"Company" shall mean such successor corporation.
"Company Request" and "Company Order" mean a written request or order
signed in the name of the Company, as the case may be by (1) the Chairman of the
Board, a Vice Chairman of the Board, the President or a Vice President and by
the Treasurer, an Assistant Treasurer, the Controller, an Assistant Controller,
the Secretary or an Assistant Secretary of the Company, as the case may be, or
(2) by any two Persons designated in a Company Order previously delivered to the
Trustee for Securities of any series by any two of the foregoing officers and
delivered to the Trustee for Securities of any series.
"Component Currency" has the meaning specified in Section 311(e).
"Consolidated Tangible Assets" means, as of the date of any
determination thereof, the total of all assets which would appear on a
consolidated balance sheet of the Company and its Subsidiaries, prepared in
accordance with U.S. GAAP, at their net book values (after deducting related
depreciation, depletion and amortization which, in accordance with U.S. GAAP,
should be set aside in connection with the business conducted), but excluding
goodwill, trade names, trademarks, patents, unamortized debt discount and all
other intangible assets all as determined in accordance with U.S. GAAP.
"Conversion Event" means the unavailability of any Foreign Currency or
currency unit due to the imposition of exchange controls or other circumstances
beyond the Company's control.
"Corporate Trust Office" means the office of the Trustee for Securities
of any series at which at any particular time its corporate trust business shall
be principally administered, which office of JPMorgan Chase Bank, at the date of
the execution of this Indenture, is located at 450 West 33rd Street, 15th Floor,
New York, New York 10001.
"corporation" includes corporations, limited liability companies,
associations, companies and business trusts.
"coupon" means any interest coupon appertaining to a Bearer Security.
"Currency Determination Agent", with respect to Securities of any
series, means, unless otherwise specified in the Securities of any series, a New
York Clearing House bank designated pursuant to Section 301 or Section 312.
"Defaulted Interest" has the meaning specified in Section 307.
"Depositary" means, with respect to the Securities of any series
issuable or issued in the form of a Global Security, the Person designated as
Depositary by the Company pursuant to Section 301 until a successor Depositary
shall have become such pursuant to the applicable provisions of this Indenture,
and thereafter "Depositary" shall mean or include each Person who is then a
Depositary hereunder, and if at any time there is more than one such Person,
"Depositary" as used with respect to the Securities of any such series shall
mean the Depositary with respect to the Securities of that series.
"Determination Notice" has the meaning specified in Section 1108(b).
"Dollars" and the sign "$" mean the currency of the United States of
America as at the time of payment is legal tender for the payment of public and
private debts.
"Election Date" has the meaning specified in Section 311(e).
"Euro-clear" means Morgan Guaranty Trust Company of New York, Brussels
office, or its successor, as operator of the Euro-clear system.
"Event of Default" has the meaning specified in Section 501.
"Exchange Act" means the Securities Exchange Act of 1934, as amended,
as in force at the date as of which this Indenture was executed; provided,
however, that in the event the Securities Exchange Act of 1934 is amended after
such date, "Exchange Act" means, to the extent required by any such amendment,
the Securities Exchange Act of 1934 as so amended.
"Exchange Date" has the meaning specified in Section 304.
"Foreign Currency" means a currency issued and actively maintained as a
country's recognized unit of domestic exchange by the government of any country
other than the United States and such term shall include the euro.
"Gas Utility Subsidiaries" means the following Subsidiaries of the
Company engaged in the distribution and sale at retail of natural gas: The
Brooklyn Union Gas Company d/b/a KeySpan Energy Delivery New York, KeySpan Gas
East Corporation d/b/a KeySpan Energy Delivery Long Island, Boston Gas Company,
Colonial Gas Company, Essex Gas Company, and EnergyNorth Natural Gas, Inc.; and
any other Subsidiary of the Company engaged in such activity, provided such
Subsidiary would be, at any particular time, a Significant Subsidiary.
"Global Exchange Agent" has the meaning specified in Section 304.
"Global Securities" means Securities in global form.
"Government Obligations" means securities which are (i) direct
obligations of the government which issued the currency in which the Securities
of a particular series are payable (except as provided in Sections 311(b) and
311(d), in which case with respect to Securities for which an election has
occurred pursuant to Section 311(b), or a Conversion Event has occurred as
provided in Section 311(d), such obligations shall be issued in the currency or
currency unit in which such Securities are payable as a result of such election
or Conversion Event) or (ii) obligations of a Person controlled or supervised by
or acting as an agency or instrumentality of the government which issued the
currency in which the Securities of such series are payable (except as provided
in Sections 311(b) and 311(d), in which case with respect to Securities for
which an election has occurred pursuant to Section 311(b), or a Conversion Event
has occurred as provided in Section 311(d)), such obligations shall be issued in
the currency or currency unit in which such Securities are payable as a result
of such election or Conversion Event), the payment of which is unconditionally
guaranteed by such government, which, in either case, are full faith and credit
obligations of such government payable in such currency and are not callable or
redeemable at the option of the issuer thereof.
"Guarantee" by any Person means any obligation, contingent or
otherwise, of such Person guaranteeing any Indebtedness of any other Person (the
"primary obligor") in any manner, whether directly or indirectly, and including,
without limitation, any obligation of such Person (i) to purchase or pay (or
advance or supply funds for the purchase or payment of) such Indebtedness or to
purchase (or to advance or supply funds for the purchase of) any security for
the payment of such Indebtedness, (ii) to purchase property, securities or
services for the purpose of assuring the holder of such Indebtedness of the
payment of such Indebtedness or (iii) to maintain working capital, equity
capital or other financial statement condition or liquidity of the primary
obligor so as to enable the primary obligor to pay such Indebtedness (and
"Guaranteed," "Guaranteeing" and "Guarantor" shall have the meanings correlative
to the foregoing); provided, however, that the Guarantee by any Person shall not
include endorsements by such Person for collection or deposit, in either case,
in the ordinary course of business.
"Holder", when used with respect to any Security, means in the case of
a Registered Security the Person in whose name a Security is registered in the
Security Register, and in the case of a Bearer Security the bearer thereof and,
when used with respect to any coupon, means any bearer thereof.
"Incur" means, with respect to any Indebtedness or other obligation of
any Person, to create, issue, incur (by conversion, exchange or otherwise),
assume, Guarantee or otherwise become liable in respect of such Indebtedness or
other obligation or the recording, as required pursuant to generally accepted
accounting principles or otherwise, of any such Indebtedness or other obligation
as a liability on the balance sheet of such Person (and "Incurrence,"
"Incurred," "Incurrable" and "Incurring" shall have meanings correlative to the
foregoing); provided, however, that a change in generally accepted accounting
principles that results in an obligation of such Person that exists at such time
becoming Indebtedness shall not be deemed an Incurrence of such Indebtedness.
"Indebtedness" means (without duplication), with respect to any Person,
whether recourse is to all or a portion of the assets of such Person, all
Indebtedness described in clauses (1)-(6) of the definition of Senior
Indebtedness (all references to the Company in such definition being deemed to
refer to such Person).
"Indenture" means this instrument as it may from time to time be
supplemented or amended by one or more indentures supplemental hereto entered
into pursuant to the applicable provisions hereof and shall include the terms of
a particular series of Securities established as contemplated by Section 301.
"Indexed Security" means any Security as to which the amount of
payments of principal, premium, if any, and/or interest, if any, due thereon is
determined with reference to the rate of exchange between the currency or
currency unit in which the Security is denominated and any other specified
currency or currency unit, to the relationship between two or more currencies or
currency units, to the price of one or more specified securities or commodities,
to one or more securities or commodities exchange indices or other indices or by
other similar methods or formulas, all as specified in accordance with Section
301.
"interest", when used with respect to an OID Security which by its
terms bears interest only after Maturity, means interest payable after Maturity.
"Interest Payment Date", when used with respect to any Security, means
the Stated Maturity of an installment of interest on such Security.
"Issue Date" means the date on which the Securities of a particular
series are originally issued under this Indenture.
"Judgment Date" has the meaning specified in Section 516.
"Junior Subordinated Payment" has the meaning specified in Section
1402.
"LIBOR" means, with respect to any series of Securities, the rate
specified as LIBOR for such Securities in accordance with Section 301.
"LIBOR Currency" means the currency specified pursuant to Section 301
as to which LIBOR will be calculated or, if no currency is specified pursuant to
Section 301, Dollars.
"LIBOR Security" means any Security which bears interest at a floating
rate calculated with reference to LIBOR.
"London Business Day" means, with respect to any LIBOR Security, a day
on which commercial banks are open for business, including dealings in the LIBOR
Currency, in London.
"Luxembourg Stock Exchange", unless specified with respect to any
particular series of Securities, means the Luxembourg Stock Exchange.
"Market Exchange Rate" with respect to any Foreign Currency or currency
unit on any date means, unless otherwise specified in accordance with Section
301, the noon buying rate in The City of New York for cable transfers in such
Foreign Currency or currency unit as certified for customs purposes by the
Federal Reserve Bank of New York for such Foreign Currency or currency unit.
"Maturity", when used with respect to any Security, means the date on
which the principal (or, if the context so requires, in the case of an OID
Security, a lesser amount or, in the case of an Indexed Security, an amount
determined in accordance with the specified terms of that Security) of that
Security becomes due and payable as therein or herein provided, whether at the
Stated Maturity or by declaration of acceleration, call for redemption, request
for redemption, repayment at the option of the holder, pursuant to any sinking
fund or otherwise.
"Notice of Default" has the meaning specified in Section 501(3).
"Officers' Certificate", when used with reference to the Company, means
a certificate signed by the Chairman of the Board, a Vice Chairman of the Board,
the Chief Executive Officer, the President or a Vice President (any reference
herein to a Vice President of the Company, as the case may be, shall be deemed
to include any Vice President of the Company, as the case may be, whether or not
designated by a number or a word or words added before or after the title "Vice
President"), and by the Treasurer, an Assistant Treasurer, the Controller, an
Assistant Controller, the Secretary or an Assistant Secretary of the Company, as
the case may be, and delivered to the Trustee for the Securities of any series.
"Opinion of Counsel" means, for purposes of Section 1108, a written
opinion of independent legal counsel of recognized standing and, for all other
purposes hereof, means a written opinion of counsel, who may be an employee of
or counsel to the Company or may be other counsel satisfactory to the Trustee
for the Securities of any series.
"OID Security" means a Security which provides for an amount (excluding
any amounts attributable to accrued but unpaid interest thereon) less than the
principal amount thereof to be due and payable upon a declaration of
acceleration of the Maturity thereof pursuant to Section 502.
"Outstanding", when used with respect to Securities, means, as of the
date of determination, all Securities theretofore authenticated and delivered
under this Indenture, except:
(1) Securities theretofore cancelled by the Trustee for such
Securities or delivered to such Trustee for cancellation;
(2) Securities or portions thereof for whose payment or redemption
money in the necessary amount and in the required currency or currency unit
has been theretofore deposited with the Trustee for such Securities or any
Paying Agent (other than the Company or any other obligor upon the
Securities) in trust or set aside and segregated in trust by the Company or
any other obligor upon the Securities (if the Company or any other obligor
upon the Securities shall act as its own Paying Agent) for the Holders of
such Securities; provided, however, that, if such Securities or portions
thereof are to be redeemed, notice of such redemption has been duly given
pursuant to this Indenture, or provision therefor satisfactory to such
Trustee has been made; and
(3) Securities which have been paid pursuant to Section 306 or in
exchange for or in lieu of which other Securities have been authenticated
and delivered pursuant to this Indenture, other than any such Securities in
respect of which there shall have been presented proof satisfactory to the
Trustee for such Securities that any such Securities are held by bona fide
holders in due course;
provided, however, that in determining whether the Holders of the requisite
principal amount of Outstanding Securities have given any request, demand,
authorization, direction, notice, consent or waiver hereunder, (a) Securities
owned by the Company or any other obligor upon the Securities or any Affiliate
of the Company or such other obligor shall be disregarded and deemed not to be
Outstanding, except that, in determining whether the Trustee for such Securities
shall be protected in relying upon any such request, demand, authorization,
direction, notice, consent or waiver, only Securities which such Trustee knows
to be so owned shall be so disregarded. Securities so owned which have been
pledged in good faith may be regarded as Outstanding if the pledgee establishes
to the satisfaction of such Trustee the pledgee's right so to act with respect
to such Securities and that the pledgee is not the Company or any other obligor
upon the Securities or any Affiliate of the Company or of such other obligor,
(b) the principal amount of an OID Security that shall be deemed to be
Outstanding for such purposes shall be the amount of the principal thereof that
would be due and payable as of the date of such determination upon a declaration
of acceleration pursuant to Section 502 and (c) the principal amount of a
Security denominated in a Foreign Currency or currency unit that shall be deemed
to be outstanding for such purposes shall be determined in accordance with
Section 115.
"Paying Agent" means JPMorgan Chase Bank or any other Person authorized
by the Company to pay the principal of (and premium, if any) or interest, if
any, on any Securities of any series on behalf of the Company.
"Payment Blockage Period" has the meaning specified in Section 1403.
"Person" means any individual, firm, corporation, partnership,
association, joint venture, tribunal, limited liability company, trust,
government or political subdivision or agency or instrumentality thereof, or any
other entity or organization.
"Place of Payment", when used with respect to the Securities of any
particular series, means the place or places where the principal of (and
premium, if any) and interest, if any, on the Securities of that series are
payable, as contemplated by Section 301.
"Predecessor Security" of any particular Security means every previous
Security evidencing all or a portion of the same debt as that evidenced by that
particular Security, and, for the purposes of this definition, any Security
authenticated and delivered under Section 306 in lieu of a mutilated, destroyed,
lost or stolen Security or a Security to which a mutilated, destroyed, lost or
stolen coupon appertains shall be deemed to evidence the same debt as the
mutilated, lost, destroyed or stolen Security or the Security to which the
mutilated, destroyed, lost or stolen coupon appertains, as the case may be.
"Preferred Securities" means undivided beneficial interests in a Trust.
"Principal Financial Center" means, unless otherwise specified in
accordance with Section 301:
(1) the capital city of the country issuing the Foreign Currency or
currency unit, except that with respect to Dollars, Australian
dollars, Canadian dollars, Deutsche marks, Dutch guilders, South
African rand and Swiss francs, the "Principal Financial Center" will
be The City of New York, Sydney and Melbourne, Toronto, Frankfurt,
Amsterdam, Johannesburg and Zurich, respectively; or
(2) the capital city of the country to which the LIBOR Currency relates,
except that with respect to Dollars, Canadian dollars, Deutsche marks,
Dutch guilders, Portuguese escudos, South African rand and Swiss
francs, the "Principal Financial Center" will be The City of New York,
Toronto, Frankfurt, Amsterdam, London, Johannesburg and Zurich,
respectively.
"Principal Property" means the real estate, fixtures, pipelines, mains,
meters, pipes, valves, compressors and other related personal property primarily
used in connection with the transportation, distribution or retail sale of gas
by the Gas Utility Subsidiaries.
"Proceeding" has the meaning specified in Section 1402.
"Property" means any asset, revenue or any other property, including
Capital Stock, whether tangible or intangible, real or personal, including,
without limitation, any right to receive income.
"Redemption Date", when used with respect to any Security to be
redeemed in whole or in part, means the date fixed for such redemption by or
pursuant to this Indenture.
"Redemption Price", when used with respect to any Security to be
redeemed, means, unless otherwise specified in such Security, an amount, in the
currency or currency unit in which such Security is denominated or which is
otherwise provided for pursuant hereto, equal to the principal amount thereof
(and premium, if any, thereon) together with accrued interest, if any, to the
Redemption Date.
"Registered Security" means any Security established pursuant to
Section 201 which is registered in the Security Register.
"Regular Record Date" for the interest payable on any Interest Payment
Date on the Registered Securities of any series, means the date, if any,
specified for that purpose as contemplated by Section 301.
"Responsible Officer", when used with respect to the Trustee for any
series of Securities, means the chairman or vice chairman of the board of
directors, the chairman or vice chairman of the executive committee of the board
of directors, the president, any vice president (whether or not designated by a
number or a word or words added before or after the title "vice president"), the
secretary, any assistant secretary, the treasurer, any assistant treasurer, the
cashier, any assistant cashier, any trust officer or assistant trust officer,
the controller or any assistant controller or any other officer of such Trustee
customarily performing functions similar to those performed by any of the above
designated officers and also means, with respect to a particular corporate trust
matter, any other officer to whom such matter is referred because of his
knowledge of and familiarity with the particular subject.
"Sale and Leaseback Transaction" means any transaction or series of
related transactions relating to Principal Property now owned or hereafter
acquired whereby the Company or one of its Gas Utility Subsidiaries transfers
that Principal Property to a Person and the Company or any of its Gas Utility
Subsidiaries leases it from that Person for a period, including renewals, in
excess of three years.
"Securities" means securities evidencing unsecured indebtedness of the
Company authenticated and delivered under this Indenture.
"Securities Payment" has the meaning specified in Section 1402.
"Security Register" and "Security Registrar" have the respective
meanings specified in Section 305.
"Senior Indebtedness" means the principal of, premium, if any, interest
on and any other payment due pursuant to any of the following, whether Incurred
on or prior to the date hereof or hereafter Incurred:
(1) all obligations of the Company for money borrowed;
(2) all obligations of the Company evidenced by notes, debentures, bonds
or other similar instruments, including obligations Incurred in
connection with the acquisition of property, assets or businesses;
(3) all Capital Lease Obligations of the Company;
(4) all reimbursement obligations of the Company with respect to letters
of credit, bankers' acceptances or similar facilities issued for the
account of the Company;
(5) all obligations of the Company issued or assumed as the deferred
purchase price of property or services, including all obligations
under master lease transactions pursuant to which the Company or any
of its subsidiaries have agreed to be treated as owner of the subject
property for federal income tax purposes (but excluding trade accounts
payable or accrued liabilities arising in the ordinary course of
business);
(6) all payment obligations of the Company under interest rate swap or
similar agreements or foreign currency hedge, exchange or similar
agreements at the time of determination, including any such
obligations Incurred by the Company solely to act as a hedge against
increases in interest rates that may occur under the terms of other
outstanding variable or floating rate Indebtedness of the Company;
(7) all obligations of the type referred to in clauses (1) through (6)
above of another Person and all dividends of another Person the
payment of which, in either case, the Company has assumed or
Guaranteed or for which the Company is responsible or liable, directly
or indirectly, jointly or severally, as obligor, guarantor or
otherwise;
(8) all obligations of the Company under (i) the Indenture dated as of
November 1, 2000 between the Company and JPMorgan Chase Bank (as
successor to The Chase Manhattan Bank), as trustee and (ii) the
Indenture dated as of December 1, 1999 between KeySpan Gas East
Corporation, the Company, as guarantor, and JPMorgan Chase Bank (as
successor to The Chase Manhattan Bank), as trustee;
(9) all compensation and reimbursement obligations of the Company pursuant
to Section 607; and
(10) all amendments, modifications, renewals, extensions, refinancings,
replacements and refundings by the Company of any such Indebtedness
referred to in clauses (1) through (6) above (and of any such amended,
modified, renewed, extended, refinanced, refunded or replaced
Indebtedness);
provided, however, that the following shall not constitute Senior
Indebtedness: (A) any Indebtedness owed to a Person when such Person is
a Subsidiary of the Company, (B) any Indebtedness which by the terms of
the instrument creating or evidencing the same expressly provides that
it is not superior in right of payment to the Securities, (C) any
Indebtedness to the extent Incurred in violation of this Indenture, (D)
trade accounts payable or accrued liabilities arising in the course of
business or (E) all other debt securities of the Company issued by the
Company to any trust, other than a Trust, or a trustee of such trust,
or to a partnership or other Affiliate of the Company that acts as a
financing vehicle for the Company, in connection with the issuance by
such vehicles of equity securities or other securities that are similar
to the Preferred Securities which may be issued by a Trust. For
purposes of this definition, "Indebtedness" includes any obligation to
pay principal, premium (if any), interest, penalties, reimbursement or
indemnity amounts, fees and expenses (including interest accruing on or
after the filing of any petition in bankruptcy or for reorganization
relating to the Company whether or not a claim for post-petition
interest is allowed in such proceeding). Any Senior Indebtedness shall
continue to be Senior Indebtedness and entitled to the benefits of the
subordination provisions of Article 14 irrespective of any amendment,
modification or waiver of any term of such Senior Indebtedness.
"Senior Nonmonetary Default" has the meaning specified in Section 1403.
"Senior Payment Default" has the meaning specified in Section 1403.
A "series" of Securities means all Securities denoted as part of the
same series authorized by or pursuant to a particular Board Resolution.
"Significant Subsidiary" has the meaning specified, as of the date
hereof, in Rule 1-02 of Regulation S-X promulgated under the Securities Act of
1933, as amended.
"Special Record Date" for the payment of any Defaulted Interest on the
Registered Securities of any series means a date fixed by the Trustee for such
series pursuant to Section 307.
"Stated Maturity", when used with respect to any Security or any
installment of principal thereof or interest thereon, means the date specified
in such Security or a coupon representing such installment of interest as the
fixed date on which the principal of such Security or such installment of
principal or interest is due and payable.
"Subsidiary" of any Person means any corporation, association,
partnership or other business entity of which more than 50% of the total voting
power of shares of capital stock or other interests (including partnership
interests) entitled (without regard to the occurrence of any contingency) to
vote in the election of directors, managers or trustees thereof is at the time
owned or controlled, directly or indirectly, by (i) such Person, (ii) such
Person and one or more Subsidiaries of such Person or (iii) one or more
Subsidiaries of such Person.
"Substitute Date" has the meaning specified in Section 516.
"Trust" means one or more business trusts, partnerships or limited
liability companies created by the Company for the purpose of issuing undivided
beneficial interests therein in connection with the purchase of Securities under
this Indenture.
"Trust Indenture Act" means the Trust Indenture Act of 1939, as amended
by the Trust Indenture Reform Act of 1990, as in force at the date as of which
this Indenture was executed; provided, however, that in the event the Trust
Indenture Act is amended after such date, "Trust Indenture Act" means, to the
extent required by any such amendment, the Trust Indenture Act of 1939 as so
amended.
"Trustee" means the Person named as the "Trustee" in the first
paragraph of this instrument and, subject to the provisions of Article 6 hereof,
shall also include its successors and assigns as Trustee hereunder. If there
shall be at one time more than one Trustee hereunder, "Trustee" shall mean each
such Trustee and shall apply to each such Trustee only with respect to those
series of Securities with respect to which it is serving as Trustee.
"United States" means, unless otherwise specified with respect to
Securities of any series, the United States of America (including the states and
the District of Columbia), its territories, its possessions (which include, at
the date of this Indenture, Puerto Rico, the U.S. Virgin Islands, Guam, American
Samoa, Wake Island and the Northern Mariana Islands) and other areas subject to
its jurisdiction.
"United States Alien" has the meaning specified in Section 1008.
"U.S. GAAP" means generally accepted accounting principles which are
in effect in the United States as of the date hereof.
"Yield to Maturity", when used with respect to any OID Security, means
the yield to maturity, if any, set forth on the face thereof.
Section 102. Compliance Certificates and Opinions.
Upon any application or request by the Company to the Trustee for any
series of Securities to take any action under any provision of this Indenture,
the Company shall furnish to such Trustee an Officers' Certificate stating that
all conditions precedent, if any, 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, if any, have been
complied with, except that in the case of any such application or request as to
which the furnishing of such documents is specifically required by any provision
of this Indenture relating to such particular application or request, no
additional certificate or opinion need be furnished.
Every certificate (other than certificates provided pursuant to Section
1005) or opinion with respect to compliance with a condition or covenant
provided for in this Indenture shall include:
(1) a statement that each individual signing such certificate or opinion
has read such condition or covenant and the definitions herein
relating thereto;
(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 each such individual, he has made
such examination or investigation as is necessary to enable him to
express an informed opinion as to whether or not such condition or
covenant has been complied with; and
(4) a statement as to whether, in the opinion of each such individual,
such condition or covenant has been complied with.
Section 103. Form of Documents Delivered to Trustee.
In any case where several matters are required to be certified by, or
covered by an opinion of, any specified Person, it is not necessary that all
such matters be certified by, or covered by the opinion of, only one such
Person, or that they be so certified or covered by only one document, but one
such Person may certify or give an opinion with respect to some matters and one
or more other such Persons as to other matters, and any such Person may certify
or give an opinion as to such matters in one or several documents.
Any certificate or opinion of an 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, or in the exercise of
reasonable care should know, that the certificate or opinion or representations
with respect to matters upon which his certificate or opinion is based are
erroneous.
Any such certificate or Opinion of Counsel may be based, insofar as it
relates to factual matters, upon a certificate or opinion of, or representations
by, an officer or officers of the Company stating that the information with
respect to such factual matters is in the possession of the Company unless such
counsel knows, or in the exercise of reasonable care should know, that the
certificate or opinion or representations with respect to such matters are
erroneous.
Where any Person is required to make, give or execute two or more
applications, requests, consents, certificates, statements, opinions or other
instruments under this Indenture, they may, but need not, be consolidated and
form one instrument.
Section 104. Acts of Holders.
(a) Any request, demand, authorization, direction, notice, consent, waiver
or other action provided by this Indenture to be given or taken by Holders may
be embodied in and evidenced by one or more instruments of substantially similar
tenor signed by such Holders in person or by agent duly appointed in writing. If
Securities of a series are issuable as Bearer Securities, any request, demand,
authorization, direction, notice, consent, waiver or other action provided by
this Indenture to be given by Holders of such series may, alternatively, be
embodied in and evidenced by the record of Holders of Securities of such series
voting in favor thereof, either in person or by proxies duly appointed in
writing, at any meeting of Holders of Securities of such series duly called and
held in accordance with the provisions of Article 13, or a combination of such
instruments and any such record. Except as herein otherwise expressly provided,
such action shall become effective when such instrument or instruments or record
or both are delivered to the Trustee for the appropriate series of Securities
and, where it is hereby expressly required, to the Company. Such instrument or
instruments and any such record (and the action embodied therein and evidenced
thereby) are herein sometimes referred to as the "Act" of the Holders signing
such instrument or instruments or so voting at any such meeting. Proof of
execution of any such instrument or of a writing appointing any such agent, or
of the holding by any Person of a Security, shall be sufficient for any purpose
of this Indenture and (subject to Section 601) conclusive in favor of the
Trustee for the appropriate series of Securities and the Company and any agent
of such Trustee or the Company, if made in the manner provided in this Section.
The record of any meeting of Holders of Securities shall be proved in the manner
provided in Section 1306.
The Company may at its discretion set a record date for purposes of
determining the identity of Holders of Registered Securities entitled to vote or
consent to any action by vote or consent authorized or permitted under this
Indenture, but the Company shall have no obligation to do so. If not set by the
Company prior to the first solicitation of Holders of Registered Securities of a
particular series made by any Person in respect of any such action, or, in the
case of any such vote, prior to such vote, the record date for any such action
or vote shall be 30 days prior to the first solicitation of such vote or
consent. Upon the fixing of such a record date, those persons who were Holders
of Registered Securities at such record date (or their duly designated proxies),
and only those persons, shall be entitled with respect to such Registered
Securities to take such action by vote or consent or to revoke any vote or
consent previously given, whether or not such persons continue to be Holders
after such record date.
(b) The fact and date of the execution by any Person of any such instrument
or writing may be proved by the affidavit of a witness of such execution or by
the certificate of any notary public or other officer authorized by law to take
acknowledgments of deeds, certifying that the individual signing such instrument
or writing acknowledged to him the execution thereof. Where such execution is by
an officer of a corporation or association or a member of a partnership, or an
official of a public or governmental body, on behalf of such corporation,
association, partnership or public or governmental body or by a fiduciary, such
certificate or affidavit shall also constitute sufficient proof of his
authority.
(c) The fact and date of the execution by any Person of any such instrument
or writing, or the authority of the Person executing the same, may also be
proved in any other manner which the Trustee for the appropriate series of
Securities deems sufficient.
(d) The principal amount and serial numbers of Registered Securities held
by any Person, and the date of holding the same, shall be proved by the Security
Register.
(e) The principal amount and serial numbers of Bearer Securities held by
any Person, and the date of holding the same, may be proved by the production of
such Bearer Securities or by a certificate executed, as depositary, by any trust
company, bank, banker or other depositary, wherever situated, if such
certificate shall be deemed by the Trustee for such Securities to be
satisfactory, showing that at the date therein mentioned such Person had on
deposit with such depositary, or exhibited to it, the Bearer Securities therein
described; or such facts may be proved by the certificate or affidavit of the
Person holding such Bearer Securities, if such certificate or affidavit is
deemed by such Trustee to be satisfactory. The Trustee for such Securities and
the Company may assume that such ownership of any Bearer Security continues
until (1) another certificate or affidavit bearing a later date issued in
respect of the same Bearer Security is produced, (2) such Bearer Security is
produced to such Trustee by some other Person, (3) such Bearer Security is
surrendered in exchange for a Registered Security, or (4) such Bearer Security
is no longer Outstanding. The principal amount and serial numbers of Bearer
Securities held by any Person, and the date of holding the same, may also be
proved in any other manner which the Company and the Trustee for such Securities
deem sufficient.
(f) Subject to Section 115, in determining whether the Holders of the
requisite principal amount of Outstanding Securities have given any request,
demand, authorization, direction, notice, consent or waiver under this
Indenture, the principal amount of an OID Security that may be counted in making
such determination and that shall be deemed to be Outstanding for such purposes
shall be equal to the amount of the principal thereof that would be due and
payable upon a declaration of acceleration of the Maturity thereof pursuant to
Section 502 at the time the taking of such action by the Holders of such
requisite principal amount is evidenced to the Trustee for such Securities.
(g) Any request, demand, authorization, direction, notice, consent, waiver
or other action by the Holder of any Security shall bind every future Holder of
the same Security and the Holder of every Security issued upon the registration
of transfer thereof or in exchange therefor or in lieu thereof in respect of
anything done, omitted or suffered to be done by the Trustee for such
Securities, the Security Registrar, any Paying Agent or the Company in reliance
thereon, whether or not notation of such action is made upon such Security.
Section 105. Notices, Etc., to Trustee and the Company.
Any request, demand, authorization, direction, notice, consent, waiver
or Act of Holders or other documents provided or permitted by this Indenture to
be made upon, given or furnished to, or filed with,
(1) the Trustee for a series of Securities by any Holder or by the Company
shall be sufficient for every purpose hereunder if made, given,
furnished or filed in writing to or with such Trustee at its Corporate
Trust Office, Attention: Corporate Trustee Administration Department,
or if sent by facsimile transmission, to a facsimile number provided
by the Trustee, with a copy mailed, first class postage prepaid to the
Trustee addressed to it as provided above, or
(2) the Company by such Trustee or by any Holder shall be sufficient for
every purpose hereunder (except as provided in paragraphs (3), (4) and
(5) of Section 501) if furnished in writing and mailed, first class
postage prepaid, addressed in the case of the Company to it at the
address of its principal office specified in the first paragraph of
this instrument or at any other address previously furnished in
writing to such Trustee by the Company, or if sent by facsimile
transmission, to a facsimile number provided to the Trustee by the
Company, with a copy mailed, first class postage prepaid, to the
Company addressed to it as provided above.
Section 106. Notice to Holders; Waiver.
Where this Indenture provides for notice to Holders of any event, (1)
such notice shall be sufficiently given (unless otherwise herein expressly
provided) to Holders of Registered Securities if in writing and mailed, first
class postage prepaid, to each Holder affected by such event, at his address as
it appears in the Security Register, not later than the latest date, and not
earlier than the earliest date, prescribed for the giving of such notice; and
(2) such notice shall be sufficiently given (unless otherwise herein expressly
provided) to Holders of Bearer Securities who have filed their names and
addresses with the Trustee for such purpose within the previous two years if in
writing and mailed, first class postage prepaid, to each such Holder at his
address as so filed not later than the latest date and not earlier than the
earliest date prescribed for the giving of such notice, or to all other Holders
of Bearer Securities if published in an Authorized Newspaper on a Business Day
at least twice, the first such publication to be not earlier than the earliest
date, and the second such publication to be not later than the latest date,
prescribed herein for the giving of such notice.
In any case where notice to Holders of Registered Securities is given
by mail, neither the failure to mail such notice, nor any defect in any notice
so mailed, to any particular Holder of a Registered Security shall affect the
sufficiency of such notice with respect to other Holders of Registered
Securities or the sufficiency of any notice to Holders of Bearer Securities
given as provided herein. Any notice mailed in the manner prescribed by this
Indenture shall be deemed to have been given whether or not received by any
particular Holder. In case by reason of the suspension of regular mail service
or by reason of any other cause it shall be impracticable to give such notice to
Holders of Registered Securities by mail, then such notification as shall be
made with the approval of the Trustee for such Securities shall constitute a
sufficient notification for every purpose hereunder.
In case by reason of the suspension of any Authorized Newspaper or
Authorized Newspapers or by reason of any other cause it shall be impracticable
to publish any notice to Holders of Bearer Securities as provided above, then
such notification to Holders of Bearer Securities as shall be made with the
approval of the Trustee for such Securities shall constitute sufficient notice
to such Holders for every purpose hereunder. Neither the failure to give notice
by publication to Holders of Bearer Securities as provided above, nor any defect
in any notice so published, shall affect the sufficiency of any notice to
Holders of Registered Securities given as provided herein.
Where this Indenture provides for notice in any manner, such notice may
be waived in writing by the Person entitled to receive such notice, either
before or after the event, and such waiver shall be the equivalent of such
notice. Waivers of notice by Holders shall be filed with the Trustee for such
Securities, but such filing shall not be a condition precedent to the validity
of any action taken in reliance upon such waiver.
Section 107. Conflict with Trust Indenture Act.
If any provision hereof limits, qualifies or conflicts with the duties
imposed by any of Sections 310 through 317, inclusive, of the Trust Indenture
Act through the operation of Section 318(c) thereof, such imposed duties shall
control.
Section 108. 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 109. Successors and Assigns.
All covenants and agreements in this Indenture by the Company shall
bind its successors and assigns, whether so expressed or not.
Section 110. Separability Clause.
In case any provision in this Indenture or in the Securities or coupons
shall be invalid, illegal or unenforceable, the validity, legality and
enforceability of the remaining provisions shall not in any way be affected or
impaired thereby.
Section 111. Benefits of Indenture.
Nothing in this Indenture or in the Securities or in any coupons
appertaining thereto, expressed or implied, shall give to any Person, other than
the parties hereto, any Paying Agent, any Security Registrar and their
successors hereunder, the Holders of Securities or coupons and holders of Senior
Indebtedness, any benefit or any legal or equitable right, remedy or claim under
this Indenture.
Section 112. Governing Law.
This Indenture and the Securities shall be governed by and construed in
accordance with the laws of the State of New York.
Section 113. Non-Business Day.
Unless otherwise stated with respect to Securities of any series, in
any case where any Interest Payment Date, Redemption Date or Stated Maturity of
a Security of any particular series shall not be a Business Day at any Place of
Payment with respect to Securities of that series, then (notwithstanding any
other provision of this Indenture or of the Securities or coupons) payment of
principal of (and premium, if any) and interest, if any, with respect to such
Security need not be made at such Place of Payment on such date, but may be made
on the next succeeding Business Day at such Place of Payment with the same force
and effect as if made on the Interest Payment Date or Redemption Date, or at the
Stated Maturity, provided that no interest shall accrue for the period from and
after such Interest Payment Date, Redemption Date or Stated Maturity, as the
case may be.
Section 114. Immunity of Incorporators, Stockholders, Officers and Directors.
No recourse shall be had for the payment of the principal of (and
premium, if any), or the interest, if any, on any Security or coupon of any
series, or for any claim based thereon, or upon any obligation, covenant or
agreement of this Indenture, against any incorporator, stockholder, officer or
director, as such, past, present or future, of the Company or of any successor
corporation, either directly or indirectly through the Company or any successor
corporation, whether by virtue of any constitution, statute or rule of law or by
the enforcement of any assessment of penalty or otherwise; it being expressly
agreed and understood that this Indenture and all the Securities and coupons of
each series are solely corporate obligations, and that no personal liability
whatever shall attach to, or is incurred by, any incorporator, stockholder,
officer or director, past, present or future, of the Company or of any successor
corporation, either directly or indirectly through the Company or any successor
corporation, because of the incurring of the indebtedness hereby authorized or
under or by reason of any of the obligations, covenants or agreements contained
in this Indenture or in any of the Securities or coupons of any series, or to be
implied herefrom or therefrom; and that all such personal liability is hereby
expressly released and waived as a condition of, and as part of the
consideration for, the execution of this Indenture and the issuance of the
Securities and coupons of each series.
Section 115. Certain Matters Relating to Currencies.
Subject to Section 311, each reference to any currency or currency unit
in any Security, or in the Board Resolution or supplemental indenture relating
thereto, shall mean only the referenced currency or currency unit and no other
currency or currency unit.
The Trustee shall segregate moneys, funds and accounts held by the
Trustee in one currency or currency unit from any moneys, funds or accounts held
in any other currencies or currency units, notwithstanding any provision herein
which would otherwise permit the Trustee to commingle such amounts.
Whenever any action or Act is to be taken hereunder by the Holders of
Securities denominated in a Foreign Currency or currency unit, then for purposes
of determining the principal amount of Securities held by such Holders, the
aggregate principal amount of the Securities denominated in a Foreign Currency
or currency unit shall be deemed to be that amount of Dollars that could be
obtained for such principal amount on the basis of a spot rate of exchange
specified to the Trustee for such series in an Officers' Certificate for such
Foreign Currency or currency unit into Dollars as of the date the taking of such
action or Act by the Holders of the requisite percentage in principal amount of
the Securities is evidenced to such Trustee.
Section 116. Language of Notices, Etc.
Any request, demand, authorization, direction, notice, consent or
waiver required or permitted under this Indenture shall be in the English
language, and any published notice may also be in an official language of the
country of publication.
ARTICLE 2
SECURITY FORMS
--------------
Section 201. Forms of Securities.
The Registered Securities, if any, of each series and the Bearer
Securities, if any, of each series and related coupons shall be in such form or
forms (including global form) as shall be established by or pursuant to a Board
Resolution of the Company, in each case with such appropriate insertions,
omissions, substitutions and other variations as are required or permitted by
this Indenture or any indenture supplemental hereto and may have such letters,
numbers or other marks of identification and such legends or endorsements placed
thereon as may be required to comply with any law, with any rule or regulation
made pursuant thereto, with any rules of any securities exchange, automated
quotation system or clearing agency or to conform to usage, as may, consistently
herewith, be determined by the officers executing such Securities or coupons, as
evidenced by their execution of such Securities or coupons. If temporary
Securities of any series are issued in global form as permitted by Section 304,
the form thereof shall be established as provided in the preceding sentence.
Unless otherwise specified as contemplated by Section 301, Bearer
Securities shall have interest coupons attached.
The definitive Securities and coupons, if any, shall be printed,
lithographed or engraved or produced by any combination of these methods on a
steel engraved border or steel engraved borders or may be produced in any other
manner, all as determined by the officers executing such Securities or coupons,
as evidenced by their execution thereof.
Section 202. Form of Trustee's Certificate of Authentication.
The Certificate of Authentication on all Securities shall be in
substantially the following form:
"This is one of the Securities of the series designated
therein described in the within-mentioned Indenture.
JPMORGAN CHASE BANK,
as Trustee
By
---------------------------------
Authorized Officer
Section 203. Securities in Global Form.
If any Security of a series is issuable in global form, such Security
may provide that it shall represent the aggregate amount of Outstanding
Securities from time to time endorsed thereon and may also provide that the
aggregate amount of Outstanding Securities represented thereby may from time to
time be reduced to reflect exchanges. Any endorsement of a Security in global
form to reflect the amount, or any increase or decrease in the amount, of
Outstanding Securities represented thereby shall be made by the Trustee and in
such manner as shall be specified in such Security. Any instructions by the
Company with respect to a Security in global form, after its initial issuance,
shall be in writing but need not comply with Section 102.
Global Securities may be issued in either registered or bearer form and
in either temporary or permanent form.
ARTICLE 3
THE SECURITIES
--------------
Section 301. Title; Payment and Terms.
The aggregate principal amount of Securities which may be authenticated
and delivered and Outstanding under this Indenture is unlimited. The Securities
may be issued up to the aggregate principal amount of Securities from time to
time authorized by or pursuant to Board Resolutions of the Company.
The Securities may be issued in one or more series, each of which shall
be issued pursuant to Board Resolutions of the Company. There shall be
established in one or more Board Resolutions or pursuant to one or more Board
Resolutions of the Company and, subject to Section 303, set forth in, or
determined in the manner provided in, an Officer's Certificate of the Company,
or established in one or more supplemental indentures hereto, prior to the
issuance of Securities of any series all or any of the following, as applicable
(each of which, if so provided, may be determined from time to time by the
Company with respect to unissued Securities of that series and set forth in the
Securities of that series when issued from time to time):
(1) the title of the Securities of that series (which shall distinguish
the Securities of that series from all other series of Securities);
(2) any limit upon the aggregate principal amount of the Securities of
that series which 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 pursuant to Section 304, 305, 306, 906 or
1107);
(3) whether Securities of that series are to be issuable as Registered
Securities, Bearer Securities or both and any restrictions on the
exchange of one form of Securities for another and on the offer, sale
and delivery of the Securities in either form;
(4) the date or dates (or manner of determining the same) on which the
principal of the Securities of that series is payable (which, if so
provided in such Board Resolutions, may be determined by the Company
from time to time and set forth in the Securities of the series issued
from time to time);
(5) the rate or rates (or the manner of calculation thereof) at which the
Securities of that series shall bear interest (if any), the date or
dates from which such interest shall accrue, the Interest Payment
Dates on which such interest shall be payable (or manner of
determining the same) and the Regular Record Date for the interest
payable on any Registered Securities on any Interest Payment Date and
the extent to which, or the manner in which, any interest payable on a
temporary Global Security on an Interest Payment Date will be paid if
other than in the manner provided in Section 307;
(6) the place or places where, subject to the provisions of Section 1002,
the principal of (and premium, if any) and interest, if any, on
Securities of that series shall be payable, any Registered Securities
of that series may be surrendered for registration of transfer, any
Securities of that series may be surrendered for exchange, and notices
and demands to or upon the Company in respect of the Securities of
that series and this Indenture may be served;
(7) the period or periods within which (or manner of determining the
same), the price or prices at which (or manner of determining the
same), the currency or currency unit in which, and the terms and
conditions upon which Securities of that series may be redeemed, in
whole or in part, at the option of the Company, and any remarketing
arrangements with respect to the Securities of that series;
(8) the obligation, if any, of the Company to redeem, repay or purchase
Securities of that series pursuant to any sinking fund or analogous
provisions or at the option of a Holder thereof, and the period or
periods within which (or manner of determining the same), the price or
prices at which (or manner of determining the same), the currency or
currency unit in which, and the terms and conditions upon which,
Securities of that series shall be redeemed or purchased, in whole or
in part, pursuant to such obligation;
(9) if the currency in which the Securities of that series shall be
issuable is Dollars, the denominations in which any Registered
Securities of that series shall be issuable, if other than
denominations of $1,000 and any integral multiple thereof, and the
denominations in which any Bearer Securities of that series shall be
issuable, if other than the denomination of $5,000;
(10) if other than the principal amount thereof, the portion of the
principal amount of Securities of that series which shall be payable
upon a declaration of acceleration of the Maturity thereof pursuant to
Section 502;
(11) any Events of Default and covenants of the Company with respect to the
Securities of that series, whether or not such Events of Default or
covenants are consistent with the Events of Default or covenants set
forth herein;
(12) if a Person other than JPMorgan Chase Bank is to act as Trustee for
the Securities of that series, the name and location of the Corporate
Trust Office of such Trustee;
(13) if other than Dollars, the currency or currency unit in which payment
of the principal of (and premium, if any) or interest, if any, on the
Securities of that series shall be made or in which the Securities of
that series shall be denominated and the particular provisions
applicable thereto in accordance with, in addition to or in lieu of
the provisions of Section 311;
(14) if the principal of (and premium, if any) and interest, if any, on the
Securities of that series are to be payable, at the election of the
Company or a Holder thereof, in a currency or currency unit other than
that in which such Securities are denominated or stated to be payable,
in accordance with provisions in addition to or in lieu of, or in
accordance with the provisions of, Section 311, the period or periods
within which (including the Election Date), and the terms and
conditions upon which, such election may be made, and the time and
manner of determining the exchange rate between the currency or
currency unit in which such Securities are denominated or stated to be
payable and the currency or currency unit in which such Securities are
to be so payable;
(15) the designation of the original Currency Determination Agent, if any;
(16) if the Securities of such series are issuable as Indexed Securities,
the manner in which the amount of payments of principal, premium, if
any, and interest, if any, on that series shall be determined;
(17) if the Securities of that series do not bear interest, the applicable
dates for purposes of Section 701;
(18) if other than as set forth in Article 4, provisions for the
satisfaction and discharge of this Indenture with respect to the
Securities of that series;
(19) the date as of which any Bearer Securities of that series and any
Global Security representing Outstanding Securities of that series
shall be dated if other than the date of original issuance of the
first Security of that series to be issued;
(20) the application, if any, of Section 1008 to the Securities of that
series;
(21) whether the Securities of the series shall be issued in whole or in
part in the form of a Global Security or Securities and, in such case,
the Depositary and Global Exchange Agent, if any, for such Global
Security or Securities, whether such global form shall be permanent or
temporary and, if applicable, the Exchange Date;
(22) if Securities of the series are to be issuable initially in the form
of a temporary Global Security, the circumstances under which the
temporary Global Security can be exchanged for definitive Securities
and whether the definitive Securities will be Registered Securities
and/or Bearer Securities and will be in global form and whether
interest in respect of any portion of such Global Security payable in
respect of an Interest Payment Date prior to the Exchange Date shall
be paid to any clearing organization with respect to a portion of such
Global Security held for its account and, in such event, the terms and
conditions (including any certification requirements) upon which any
such interest payment received by a clearing organization will be
credited to the Persons entitled to interest payable on such Interest
Payment Date if other than as provided in this Article 3;
(23) whether the Securities of the series will be convertible or
exchangeable into other securities of the Company or another Person,
and if so, the terms and conditions upon which such Securities will be
so convertible or exchangeable, including the conversion price or
exchange rate and the conversion or exchange period, and any additions
or changes to the Indenture with respect to the Securities of such
series to permit or facilitate such conversion or exchange;
(24) the extent and manner, if any, to which payment on or in respect of
Securities of that series will be subordinated to the prior payment of
other liabilities and obligations of the Company;
(25) the forms of the Securities of that series; and
(26) any other terms of that series (which terms shall not be inconsistent
with the provisions of this Indenture), including any terms necessary,
customary or desirable to facilitate the issuance of Preferred
Securities by the Trusts.
The Securities shall be subordinated in right of Payment to Senior
Indebtedness as provided in Article 14.
All Securities of any particular series and the coupons appertaining to
any Bearer Securities of such series shall be substantially identical except as
to denomination, rate of interest, Stated Maturity and the date from which
interest, if any, shall accrue, and except as may otherwise be provided in or
pursuant to such Board Resolutions and set forth in such Officer's Certificate
relating thereto or provided in or pursuant to any supplemental indenture
hereto. The terms of such Securities, as set forth above, may be determined by
the Company from time to time if so provided in or established pursuant to the
authority granted in Board Resolutions. All Securities of any one series need
not be issued at the same time, and unless otherwise provided, a series may be
reopened for issuance of additional Securities of such series.
Prior to the delivery of a Security of any series in any such form to
the Trustee for the Securities of such series for authentication, the Company
shall deliver to such Trustee the following:
(27) The Board Resolutions of the Company by or pursuant to which such form
of Security have been approved and, if applicable, the supplemental
indenture by or pursuant to which such form of Security has been
approved;
(28) An Officers' Certificate of the Company dated the date such
Certificate is delivered to such Trustee stating that all conditions
precedent provided for in this Indenture relating to the
authentication and delivery of Securities in such forms have been
complied with; and
(29) An Opinion of Counsel stating that Securities in such forms, together
with any coupons appertaining thereto, when (a) completed by
appropriate insertions and executed and delivered by the Company to
such Trustee for authentication in accordance with this Indenture, (b)
authenticated and delivered by such Trustee in accordance with this
Indenture within the authorization as to aggregate principal amount
established from time to time by the Board of Directors of the
Company, and (c) sold in the manner specified in such Opinion of
Counsel, will be the legal, valid and binding obligations of the
Company, subject to the effects of applicable bankruptcy,
reorganization, fraudulent conveyance, moratorium, insolvency and
other similar laws generally affecting creditors' rights, to general
equitable principles, to an implied covenant of good faith and fair
dealing and to such other qualifications as such counsel shall
conclude do not materially affect the rights of Holders of such
Securities.
Section 302. Denominations and Currencies.
Unless otherwise provided with respect to any series of Securities as
contemplated by Section 301, any Registered Securities of a series shall be
issuable in denominations of $1,000 and any integral multiple thereof, and any
Bearer Securities of a series shall be issuable in the denomination of $5,000,
or the equivalent amounts thereof in the case of Registered Securities and
Bearer Securities denominated in a Foreign Currency or currency unit.
Section 303. Execution, Authentication, Delivery and Dating.
The Securities and any related coupons shall be executed on behalf of
the Company by its Chairman of the Board, a Vice Chairman of the Board, or its
President or one of its Vice Presidents. The Securities shall be so executed
under the corporate seal of the Company reproduced thereon and attested to by
its Secretary or any one of its Assistant Secretaries. The signature of any of
these officers on the Securities may be manual or facsimile.
Securities and coupons bearing the manual or facsimile signatures of
individuals who were at any time the proper officers of the Company shall bind
the Company, notwithstanding that such individuals or any of them have ceased to
hold such offices prior to the authentication and delivery of such Securities or
did not hold such offices at the date of such Securities.
At any time and from time to time after the execution and delivery of
this Indenture, the Company may deliver Securities of any series together with
any coupons appertaining thereto, executed by the Company to the Trustee for the
Securities of such series for authentication, together with a Company Order for
the authentication and delivery of such Securities, and such Trustee, in
accordance with the Company Order, shall authenticate and deliver such
Securities; provided, however, that, during the "restricted period" (as defined
in Section 1.163-5(c)(2)(i)(D)(7) of the United States Treasury Regulations), no
Bearer Security shall be mailed or otherwise delivered to any location in the
United States; and provided, further, that a Bearer Security may be delivered
outside the United States in connection with its original issuance only if the
Person entitled to receive such Bearer Security shall have furnished to the
Trustee for the Securities of such series a certificate substantially in the
form set forth in Exhibit A to this Indenture. If any Security shall be
represented by a permanent Global Security, then, for purposes of this Section
and Section 304, the notation of a beneficial owner's interest therein upon
original issuance of such Security or upon exchange of a portion of a temporary
Global Security shall be deemed to be delivery in connection with the original
issuance of such beneficial owner's interest in such permanent Global Security.
Except as permitted by Section 306 or 307, the Trustee for the Securities of a
series shall not authenticate and deliver any Bearer Security unless all
appurtenant coupons for interest then matured other than matured coupons in
default have been detached and cancelled. If all the Securities of any one
series are not to be issued at one time and if a Board Resolution relating to
such Securities shall so permit, such Company Order may set forth procedures
acceptable to the Trustee for the issuance of such Securities, including,
without limitation, procedures with respect to interest rate, Stated Maturity,
date of issuance and date from which interest, if any, shall accrue.
Notwithstanding any contrary provision herein, if all Securities of a
series are not to be originally issued at one time, it shall not be necessary to
deliver the Board Resolution, Officers' Certificate and Opinion of Counsel
otherwise required pursuant to Sections 102 and 301 at or prior to the time of
authentication of each Security of such series if such documents are delivered
at or prior to the authentication upon original issuance of the first Security
of such series to be issued.
Each Registered Security shall be dated the date of its authentication,
and, unless otherwise specified as contemplated by Section 301, each Bearer
Security shall be dated as of the date of original issuance of the first
Security of such series to be issued.
No Security or coupon appertaining thereto shall be entitled to any
benefit under this Indenture or be valid or obligatory for any purpose unless
there appears on such Security a certificate of authentication substantially in
the form provided for herein manually executed by the Trustee for such Security
or on its behalf pursuant to Section 614, and such certificate upon any Security
shall be conclusive evidence, and the only evidence, that such Security has been
duly authenticated and delivered hereunder.
In case any Securities shall have been authenticated, but not
delivered, by the Trustee or the Authenticating Agent for such series then in
office, any successor by merger, conversion or consolidation to such Trustee, or
any successor Authenticating Agent, as the case may be, may adopt such
authentication and deliver the Securities so authenticated with the same effect
as if such successor Trustee or successor Authenticating Agent had itself
authenticated such Securities.
Each Depositary designated pursuant to Section 301 for a Global
Security in registered form must, at the time of its designation and at all
times while it serves as Depositary, be a clearing agency registered under the
Exchange Act and any other applicable statute or regulation.
Section 304. Temporary Securities and Exchange of Securities.
Pending the preparation of definitive Securities of any particular
series, the Company may execute, and upon Company Order the Trustee for the
Securities of such series shall authenticate and deliver, in the manner
specified in Section 303, temporary Securities which are printed, lithographed,
typewritten, photocopied or otherwise produced, in any denomination, with like
terms and conditions as the definitive Securities of like series in lieu of
which they are issued in registered form or, if authorized, in bearer form with
one or more coupons or without coupons, and with such appropriate insertions,
omissions, substitutions and other variations as the officers executing such
Securities may determine, as evidenced by their execution of such Securities.
Any such temporary Securities may be in global form, representing such of the
Outstanding Securities of such series as shall be specified therein.
Except in the case of temporary Securities in global form (which shall
be exchanged only in accordance with the provisions of the following
paragraphs), if temporary Securities of any particular series are issued, the
Company will cause definitive Securities of that series to be prepared without
unreasonable delay. After the preparation of such definitive Securities, the
temporary Securities of such series shall be exchangeable for such definitive
Securities and of a like Stated Maturity and with like terms and provisions upon
surrender of the temporary Securities of such series, together with all
unmatured and matured coupons in default, if any, at the office or agency of the
Company in a Place of Payment for that series, without charge to the Holder.
Upon surrender for cancellation of any one or more temporary Securities of any
particular series, the Company shall execute and (in accordance with a Company
Order delivered at or prior to the authentication of the first definitive
Security of such series) the Trustee for the Securities of such series or the
Global Exchange Agent shall authenticate and deliver in exchange therefor a like
principal amount of definitive Securities of authorized denominations of the
same series and of a like Stated Maturity and with like terms and provisions;
provided, however, unless otherwise specified pursuant to Section 301, no
definitive Bearer Security shall be delivered in exchange for a temporary
Registered Security; and provided, further, that a definitive Bearer Security
shall be delivered in exchange for a temporary Bearer Security only in
compliance with the conditions set forth in Section 303. Until exchanged as
hereinabove provided, the temporary Securities of any series shall in all
respects be entitled to the same benefits under this Indenture as definitive
Securities of the same series and with like terms and conditions, except as to
payment of interest, if any, authenticated and delivered hereunder.
Any temporary Global Security and any permanent Global Security shall,
unless otherwise provided therein, be delivered to a Depositary designated
pursuant to Section 301.
Without unnecessary delay but in any event not later than the date
specified in or determined pursuant to the terms of any such temporary Global
Security (the "Exchange Date"), the Securities represented by any temporary
Global Security of a series of Securities issuable in bearer form may be
exchanged for definitive Securities (subject to the second succeeding paragraph)
or Securities to be represented thereafter by one or more permanent Global
Securities, without interest coupons. On or after the Exchange Date such
temporary Global Security shall be surrendered by the Depositary to the Trustee
for such Security, as the Company's agent for such purpose, or the agent
appointed by the Company pursuant to Section 301 to effect the exchange of the
temporary Global Security for definitive Securities (the "Global Exchange
Agent"), and following such surrender, such Trustee or the Global Exchange Agent
(as authorized by the Trustee as an Authenticating Agent pursuant to Section
614) shall (1) endorse the temporary Global Security to reflect the reduction of
its principal amount by an equal aggregate principal amount of such Security,
(2) endorse the applicable permanent Global Security, if any, to reflect the
initial amount, or an increase in the amount of Securities represented thereby,
(3) manually authenticate such definitive Securities or such permanent Global
Security, as the case may be, (4) subject to Section 303, deliver such
definitive Securities to the Holder thereof or, as the case may be, deliver such
permanent Global Security to the Depositary to be held outside the United States
for the accounts of Euro-clear and Clearstream, for credit to the respective
accounts at Euro-clear and Clearstream, designated by or on behalf of the
beneficial owners of such Securities (or to such other accounts as they may
direct) and (5) redeliver such temporary Global Security to the Depositary,
unless such temporary Global Security shall have been cancelled in accordance
with Section 309 hereof; provided, however, that, unless otherwise specified in
such temporary Global Security, upon such presentation by the Depositary, such
temporary Global Security shall be accompanied by a certificate dated the
Exchange Date or a subsequent date and signed by Euro-clear as to the portion of
such temporary Global Security held for its account then to be exchanged for
definitive Securities or one or more permanent Global Securities, as the case
may be, and a certificate dated the Exchange Date or a subsequent date and
signed by Clearstream, as to the portion of such temporary Global Security held
for its account then to be exchanged for definitive Securities or one or more
permanent Global Securities, as the case may be, each substantially in the form
set forth in Exhibit B to this Indenture. Each certificate substantially in the
form of Exhibit B hereto of Euro-clear or Clearstream, as the case may be, shall
be based on certificates of the account holders listed in the records of
Euro-clear or Clearstream, as the case may be, as being entitled to all or any
portion of the applicable temporary Global Security. An account holder of
Euro-clear or Clearstream, as the case may be, desiring to effect the exchange
of interest in a temporary Global Security for an interest in definitive
Securities or one or more permanent Global Securities shall instruct Euro-clear
or Clearstream, as the case may be, to request such exchange on its behalf and
shall deliver to Euro-clear or Clearstream, as the case may be, a certificate
substantially in the form of Exhibit A hereto and dated no earlier than 15 days
prior to the Exchange Date. Until so exchanged, temporary Global Securities
shall in all respects be entitled to the same benefits under this Indenture as
definitive Securities and permanent Global Securities of the same series
authenticated and delivered hereunder, except as provided in the fourth
succeeding paragraph.
The delivery to the Trustee for the Securities of the appropriate
series or the Global Exchange Agent by Euro-clear or Clearstream of any
certificate substantially in the form of Exhibit B hereto may be relied upon by
the Company and such Trustee or the Global Exchange Agent as conclusive evidence
that a corresponding certificate or certificates has or have been delivered to
Euro-clear or to Clearstream, as the case may be, pursuant to the terms of this
Indenture.
On or prior to the Exchange Date, the Company shall deliver to the
Trustee for the Securities of the appropriate series or the Global Exchange
Agent definitive Securities in aggregate principal amount equal to the principal
amount of such temporary Global Security, executed by the Company in the case of
the Securities. At any time, on or after the Exchange Date, upon 30 days' notice
to the Trustee for the Securities of the appropriate series or the Global
Exchange Agent by Euro-clear or Clearstream, as the case may be, acting at the
request of or on behalf of the beneficial owner, a Security represented by a
temporary Global Security or a permanent Global Security, as the case may be,
may be exchanged, in whole or from time to time in part, for definitive
Securities without charge and such Trustee or the Global Exchange Agent shall
authenticate and deliver, in exchange for each portion of such temporary Global
Security or such permanent Global Security, an equal aggregate principal amount
of definitive Securities of the same series of authorized denominations and with
like terms and provisions as the portion of such temporary Global Security or
such permanent Global Security to be exchanged, which, unless the Securities of
the series are not issuable both as Bearer Securities and as Registered
Securities, as contemplated by Section 301, shall be in the form of Bearer
Securities or Registered Securities, or any combination thereof, as shall be
specified by the beneficial owner thereof; provided, however, that definitive
Bearer Securities shall be delivered in exchange for a portion of the temporary
Global Security or the permanent Global Security only in compliance with the
requirements of the second preceding paragraph. On or prior to the thirtieth day
following receipt by the Trustee for the Securities of the appropriate series or
the Global Exchange Agent of such notice with respect to a Security, or, if such
day is not a Business Day, the next succeeding Business Day, the temporary
Global Security or the permanent Global Security, as the case may be, shall be
surrendered by the Depositary to such Trustee, as the Company's agent for such
purpose, or the Global Exchange Agent to be exchanged in whole, or from time to
time in part, for definitive Securities without charge following such surrender,
upon the request of Euro-clear or Clearstream, as the case may be, and such
Trustee or the Global Exchange Agent shall (1) endorse the applicable temporary
Global Security or the permanent Global Security to reflect the reduction of its
principal amount by the aggregate principal amount of such Security, (2) in
accordance with procedures acceptable to the Trustee cause the terms of such
Security and coupons, if any, to be entered on a definitive Security, (3)
manually authenticate such definitive Security and (4) if a Bearer Security is
to be delivered, deliver such definitive Security outside the United States to
Euro-clear or Clearstream, as the case may be, for or on behalf of the
beneficial owner thereof, in exchange for a portion of such permanent Global
Security.
Unless otherwise specified in such temporary Global Security or
permanent Global Security, any such exchange shall be made free of charge to the
beneficial owners of such temporary Global Security or permanent Global
Security, except that a Person receiving definitive Securities must bear the
cost of insurance, postage, transportation and the like in the event that such
Person does not take delivery of such definitive Securities in person at the
offices of Euro-clear or Clearstream. Definitive Securities in bearer form to be
delivered in exchange for any portion of a temporary Global Security or a
permanent Global Security shall be delivered only outside the United States.
Until exchanged in full as hereinabove provided, any temporary Global
Security or permanent Global Security shall in all respects be entitled to the
same benefits under this Indenture as definitive Securities of the same series
and with like terms and conditions, except as to payment of interest, if any,
authenticated and delivered hereunder. Unless otherwise specified as
contemplated by Section 301, interest payable on such temporary Global Security
on an Interest Payment Date for Securities of such series shall be payable to
Euro-clear and Clearstream on such Interest Payment Date upon delivery by
Euro-clear and Clearstream to the Trustee for the Securities of the appropriate
series or the Global Exchange Agent in the case of payment of interest on a
temporary Global Security with respect to an Interest Payment Date occurring
prior to the applicable Exchange Date of a certificate or certificates
substantially in the form set forth in Exhibit C to this Indenture, for credit
without further interest on or after such Interest Payment Date to the
respective accounts of the Persons who are the beneficial owners of such Global
Security on such Interest Payment Date and who have, in the case of payment of
interest on a temporary Global Security with respect to an Interest Payment Date
occurring prior to the applicable Exchange Date, each delivered to Euro-clear or
Clearstream, as the case may be, a certificate substantially in the form set
forth in Exhibit D to this Indenture.
Any definitive Bearer Security authenticated and delivered by the
Trustee for the Securities of the appropriate series or the Global Exchange
Agent in exchange for a portion of a temporary Global Security or a permanent
Global Security shall not bear a coupon for any interest which shall theretofore
have been duly paid by such Trustee to Euro-clear or Clearstream or by the
Company to such Trustee in accordance with the provisions of this Section 304.
With respect to Exhibits A, B, C and D to this Indenture, the Company
may, in its discretion and if required or desirable under applicable law,
substitute one or more other forms of such exhibits for such exhibits, eliminate
the requirement that any or all certificates be provided, or change the time
that any certificate may be required, provided that such substitute form or
forms or notice of elimination or change of such certification requirement have
theretofore been delivered to the Trustee with a Company Request and such form
or forms, elimination or change is reasonably acceptable to the Trustee.
Section 305. Registration, Registration of Transfer and Exchange.
The Company shall cause to be kept at the Corporate Trust Office of the
Trustee for the Securities of each series a register (the register maintained in
such office being herein sometimes referred to as the "Security Register") in
which, subject to such reasonable regulations as it may prescribe, the Company
shall provide for the registration of Registered Securities and of transfers of
Registered Securities. The Trustee for the Securities of each series is hereby
initially appointed "Security Registrar" for the purpose of registering
Registered Securities and transfers of Registered Securities of such series as
herein provided.
Upon surrender for registration of transfer of any Registered Security
of any particular series at the office or agency of the Company in a Place of
Payment for that series, the Company shall execute, and the Trustee for the
Securities of each series shall authenticate and deliver, in the name of the
designated transferee or transferees, one or more new Registered Securities of
any authorized denominations, and of a like Stated Maturity and of a like series
and aggregate principal amount and with like terms and conditions.
Except as set forth below, at the option of the Holder, Registered
Securities of any particular series may be exchanged for other Registered
Securities of any authorized denominations, and of a like Stated Maturity and of
a like series and aggregate principal amount and with like terms and conditions
upon surrender of the Registered Securities to be exchanged at such office or
agency. Whenever any Securities are so surrendered for exchange, the Company
shall execute, and the Trustee for such Securities shall authenticate and
deliver, the Securities which the Holder making the exchange is entitled to
receive. Except as otherwise specified pursuant to Section 301, Registered
Securities may not be exchanged for Bearer Securities.
Notwithstanding any other provision of this Section or Section 304,
unless and until it is exchanged in whole or in part for Registered Securities
in definitive form, a Global Security representing all or a portion of the
Registered Securities of a series may not be transferred except as a whole by
the Depositary for such series to a nominee of such Depositary or by a nominee
of such Depositary to such Depositary or another nominee of such Depositary or
by such Depositary or any such nominee to a successor Depositary for such series
or a nominee of such successor Depositary.
At the option of the Holder, Bearer Securities of any series may be
exchanged for Registered Securities of the same series of any authorized
denominations and of a like aggregate principal amount and with like terms and
provisions upon surrender of the Bearer Securities to be exchanged at any office
or agency of the Company in a Place of Payment for that series, with all
unmatured coupons and all matured coupons in default thereto appertaining. If
the Holder of a Bearer Security is unable to produce any such unmatured coupon
or coupons or matured coupon or coupons in default, such exchange may be
effected if the Bearer Securities are accompanied by payment in funds acceptable
to the Company (or to the Trustee for the Security in case of matured coupons in
default) in an amount equal to the face amount of such missing coupon or
coupons, or the surrender of such missing coupon or coupons may be waived by the
Company and such Trustee if there is furnished to them such security or
indemnity as they may require to save each of them and any Paying Agent
harmless. If thereafter the Holder of such Security shall surrender to any
Paying Agent any such missing coupon in respect of which such a payment shall
have been made, such Holder shall be entitled to receive the amount of such
payment; provided, however, that, except as otherwise provided in Section 1002,
interest represented by coupons shall be payable only upon presentation and
surrender of those coupons at an office or agency of the Company in a Place of
Payment for that series located outside the United States. Notwithstanding the
foregoing, in case a Bearer Security of any series is surrendered at any such
office or agency in exchange for a Registered Security of the same series and
with like terms and conditions after the close of business at such office or
agency on or after (i) any Regular Record Date and before the opening of
business at such office or agency on the relevant Interest Payment Date, or (ii)
any Special Record Date and before the opening of business at such office or
agency on the related proposed date for payment of Defaulted Interest, such
Bearer Security shall be surrendered without the coupon relating to such
Interest Payment Date or proposed date for payment, as the case may be (or, if
such coupon is so surrendered with such Bearer Security, such coupon shall be
returned to the person so surrendering the Bearer Security), and interest or
Defaulted Interest, as the case may be, will not be payable on such Interest
Payment Date or proposed date for payment, as the case may be, in respect of the
Registered Security issued in exchange for such Bearer Security, but will be
payable only to the Holder of such coupon when due in accordance with the
provisions of this Indenture.
Whenever any Securities are so surrendered for exchange, the Company
shall execute, and the Trustee for such Securities shall authenticate and
deliver, the Securities which the Holder making the exchange is entitled to
receive.
If at any time the Depositary for Securities of a series in registered
form notifies the Company that it is unwilling or unable to continue as
Depositary for the Securities of such series or if at any time the Depositary
for the Securities of such series shall no longer be eligible under Section 303,
the Company shall appoint a successor Depositary with respect to the Securities
for such series. If (i) a successor Depositary for the Securities of such series
is not appointed by the Company within 90 days after the Company receives such
notice or becomes aware of such ineligibility, (ii) the Company delivers to the
Trustee for Securities of such series in registered form a Company Order stating
that the Securities of such series shall be exchangeable, or (iii) an Event of
Default under Section 501 hereof has occurred and is continuing with respect to
the Securities of such series, the Company's election pursuant to Section 301
shall no longer be effective with respect to the Securities for such series and
the Company will execute, and the Trustee, upon receipt of a Company Order for
the authentication and delivery of definitive Securities of such series, will
authenticate and deliver Securities of such series in definitive form in an
aggregate principal amount equal to the principal amount of the Global Security
or Securities representing such series in exchange for such Global Security or
Securities.
The Company may at any time and in its sole discretion determine that
the Registered Securities of any series issued in the form of one or more Global
Securities shall no longer be represented by such Global Security or Securities.
In such event the Company will execute, and the Trustee, upon receipt of a
Company Order for the authentication and delivery of definitive Registered
Securities of such series, will authenticate and deliver, Registered Securities
of such series in definitive form and in an aggregate principal amount equal to
the principal amount of the Global Security or Securities representing such
series in exchange for such Global Security or Securities.
If specified by the Company pursuant to Section 301 with respect to a
series of Securities in registered form, the Depositary for such series of
Securities may surrender a Global Security for such series of Securities in
exchange in whole or in part for Securities of such series of like tenor and
terms and in definitive form on such terms as are acceptable to the Company and
such Depositary. Thereupon the Company shall execute, and the Trustee shall
authenticate and deliver, without service charge, (i) to each Person specified
by such Depositary a new Security or Securities of the same series, of like
tenor and terms and of any authorized denomination as requested by such Person
in aggregate principal amount equal to and in exchange for such Person's
beneficial interest in the Global Security; and (ii) to such Depositary a new
Global Security of like tenor and terms and in a denomination equal to the
difference, if any, between the principal amount of the surrendered Global
Security and the aggregate principal amount of Securities delivered to Holders
thereof.
Upon the exchange of a Global Security for Securities in definitive
form, such Global Security shall be cancelled by the Trustee. Registered
Securities issued in exchange for a Global Security pursuant to this Section
shall be registered in such names and in such authorized denominations as the
Depositary for such Global Security, pursuant to instructions from its direct or
indirect participants or otherwise, shall instruct the Trustee in writing. The
Trustee shall deliver such Registered Security to the persons in whose names
such Securities are so registered.
All Securities issued upon any registration of transfer or exchange of
Securities shall be the valid obligations of the Company, evidencing the same
debt, and entitled to the same benefits under this Indenture, as the Securities
surrendered upon such registration of transfer or exchange.
Every Security presented or surrendered for registration of transfer or
exchange shall (if so required by the Company or the Trustee for such Security)
be duly endorsed, or be accompanied by a written instrument of transfer in form
satisfactory to the Company and the Security Registrar for such series duly
executed, by the Holder thereof or his attorney duly authorized in writing.
No service charge shall be made for any registration of transfer or
exchange of Securities, but the Company may require payment of a sum sufficient
to cover any tax or other governmental charge that may be imposed in connection
with any registration of transfer or exchange of Securities, other than
exchanges pursuant to Section 304, 906 or 1107 not involving any transfer.
The Company shall not be required (i) to issue, register the transfer
of or exchange Securities of any series during a period beginning at the opening
of business 15 days before the day of the mailing of a notice of redemption of
Securities of that series selected for redemption under Section 1104 and ending
at the close of business on (A) if Securities of the series are issuable only as
Registered Securities, the day of the mailing of the relevant notice of
redemption and (B) if Securities of the series are issuable as Bearer
Securities, the day of the first publication of the relevant notice of
redemption or, if Securities of the series are also issuable as Registered
Securities and there is no publication, the mailing of the relevant notice of
redemption, or (ii) to register the transfer of or exchange any Registered
Security so selected for redemption as a whole or in part, except the unredeemed
portion of any Security being redeemed in part, or (iii) to exchange any Bearer
Security so selected for redemption except that such a Bearer Security may be
exchanged for a Registered Security of that series and like tenor; provided,
however, that such Registered Security shall be simultaneously surrendered for
redemption.
Furthermore, notwithstanding any other provision of this Section 305,
the Company will not be required to exchange any Securities if, as a result of
the exchange, the Company would suffer adverse consequences under any United
States law or regulation.
Section 306. Mutilated, Destroyed, Lost and Stolen Securities and Coupons.
If (i) any mutilated Security or a Security with a mutilated coupon
appertaining thereto is surrendered to the Trustee for such Security or the
Company and the Trustee for a Security receive evidence to their satisfaction of
the destruction, loss or theft of any Security or coupon and (ii) there is
delivered to the Company and such Trustee such security or indemnity as may be
required by them to save each of them and any agent of either of them harmless,
then, in the absence of notice to the Company or such Trustee that such Security
or coupon has been acquired by a bona fide purchaser, the Company shall execute
and upon its request such Trustee shall authenticate and deliver, in lieu of any
such destroyed, lost or stolen Security or in exchange for such mutilated
Security, or in exchange for the Security to which a mutilated, destroyed, lost
or stolen coupon appertains (with all appurtenant coupons not mutilated,
destroyed, lost or stolen) a new Security of the same series and in a like
principal amount and of a like Stated Maturity and with like terms and
conditions, and bearing a number not contemporaneously outstanding with coupons
corresponding to the coupons, if any, appertaining to such mutilated, destroyed,
lost or stolen Security or to the Security to which such mutilated, destroyed,
lost or stolen coupon appertains.
In case any such mutilated, destroyed, lost or stolen Security or
coupon has become or is about to become due and payable, the Company in its
discretion may, instead of issuing a new Security, pay such Security or coupon
(without surrender thereof except in the case of a mutilated Security or coupon)
if the applicant for such payment shall furnish to the Company and the Trustee
for such Security such security or indemnity as may be required by them to save
each of them harmless, and in case of destruction, loss or theft, evidence
satisfactory to the Company and such Trustee and any agent of any of them of the
destruction, loss or theft of such Security and the ownership thereof; provided,
however, that the principal of (and premium, if any) and interest, if any, on
Bearer Securities shall, except as otherwise provided in Section 1002, be
payable only at an office or agency located outside the United States and,
unless otherwise specified as contemplated by Section 301, any interest on
Bearer Securities shall be payable only upon presentation and surrender of the
coupons appertaining thereto.
Upon the issuance of any new Security under this Section, 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 all fees and expenses of the Trustee for such Security)
connected therewith.
Every new Security of any series, with its coupons, if any, issued
pursuant to this Section in lieu of any destroyed, lost or stolen Security or in
exchange for any mutilated Security, or in exchange for a Security to which a
mutilated, destroyed, lost or stolen coupon appertains shall constitute an
original additional contractual obligation of the Company whether or not the
destroyed, lost or stolen Security and its coupons, if any, or the destroyed,
lost or stolen coupon shall be at any time enforceable by anyone, and each such
new Security shall be at any time enforceable by anyone, and each such new
Security shall be entitled to all the benefits of this Indenture equally and
proportionately with any and all other Securities of the same series and their
coupons, if any, duly issued hereunder.
The provisions of this Section are exclusive and shall preclude (to the
extent lawful) all other rights and remedies with respect to the replacement or
payment of mutilated, destroyed, lost or stolen Securities or coupons.
Section 307. Payment of Interest; Interest Rights Preserved.
Interest on any Registered Security which is payable, and is punctually
paid or duly provided for, on any Interest Payment Date shall, if so provided in
such Security, be paid to the Person in whose name that Security (or one or more
Predecessor Securities) is registered at the close of business on the Regular
Record Date for such interest payment.
Unless otherwise provided with respect to the Securities of any series,
payment of interest may be made at the Corporate Trust Office or, at the option
of the Company (i) in the case of Registered Securities, may be made by check
mailed to the address of the Person entitled thereto as such address shall
appear in the Security Register, or (ii) in the case of Bearer Securities, upon
presentation and surrender of the appropriate coupon appertaining thereto or by
transfer to an account maintained by the payee with a bank located outside the
United States. Notwithstanding the foregoing, a Holder of $1,000,000 or more in
aggregate principal amount of Securities of any series in definitive form,
whether having identical or different terms and provisions, having the same
Interest Payment Dates will, at the option of the Company, be entitled to
receive interest payments, other than at Maturity, by wire transfer of
immediately available funds if appropriate wire transfer instructions have been
received in writing by the Trustee for the Securities of such series at least 15
days prior to the applicable Interest Payment Date. Any wire instructions
received by the Trustee for the Securities of such series shall remain in effect
until revoked by the Holder.
Unless otherwise provided or contemplated by Section 301, every
permanent Global Security will provide that interest, if any, payable on any
Interest Payment Date will be paid to each of Euro-clear and Clearstream with
respect to that portion of such permanent Global Security held for its account
by the Depositary. Each of Euro-clear and Clearstream will in such circumstances
credit the interest received by it in respect of such permanent Global Security
to the accounts of the beneficial owners thereof.
Any interest on any Registered Security of any particular series which
is payable, but is not punctually paid or duly provided for, on any Interest
Payment Date (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 may be paid by the
Company, at its election in each case, as provided in clause (1) or (2) below:
(1) The Company may elect to make payment of any Defaulted Interest to the
Persons in whose names the Registered Securities of that series (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 for the Registered Securities of such series
in writing of the amount of Defaulted Interest proposed to be paid on
each Registered Security of that series and the date of the proposed
payment, and at the same time the Company shall deposit with such
Trustee an amount of money in the currency or currency unit in which
the Securities of such series are payable (except as otherwise
specified pursuant to Section 301 for the Securities of such series
and except as provided in Sections 311(b) and 311(d)), equal to the
aggregate amount proposed to be paid in respect of such Defaulted
Interest or shall make arrangements satisfactory to such 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
entitled to such Defaulted Interest as in this clause provided.
Thereupon such Trustee shall fix a Special Record Date for the payment
of such Defaulted Interest which shall not be more than 15 days and
not less than 10 days prior to the date of the proposed payment and
not less than 10 days after the receipt by such Trustee of the notice
of the proposed payment. Such 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 Holder of Registered
Securities of that series at his address as it appears in the Security
Register not less than 10 days prior to such Special Record Date. Such
Trustee may, in its discretion, in the name and at the expense of the
Company, cause a similar notice to be published at least once in a
newspaper published in the English language, customarily on each
Business Day and of general circulation in New York, New York, but
such publication shall not be a condition precedent to the
establishment of 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 the Registered Securities
of that series (or their respective Predecessor Securities) are
registered on such Special Record Date and shall no longer be payable
pursuant to the following clause (2).
(2) The Company may make payment of any Defaulted Interest on Registered
Securities of any particular series in any other lawful manner not
inconsistent with the requirements of any securities exchange on which
the Registered Securities may be listed, and upon such notice as may
be required by such exchange, if, after notice is given by the Company
to the Trustee for the Securities of such series of the proposed
manner of payment pursuant to this clause, such manner of payment
shall be deemed practicable by such Trustee.
Subject to the foregoing provisions of this Section and Section 305,
each Security delivered under this Indenture upon registration of transfer of or
in exchange for or in lieu of any other Security shall carry the rights to
interest accrued and unpaid, and to accrue, which were carried by such other
Security.
Section 308. Persons Deemed Owners.
Prior to due presentment of a Registered Security for registration of
transfer, the Company, the Trustee for such Security and any agent of the
Company or such Trustee may treat the Person in whose name any such Security is
registered as the owner of such Security for the purpose of receiving payment of
principal of (and premium, if any) and (subject to Section 307) interest, if
any, on such Security and for all other purposes whatsoever, whether or not such
Security be overdue, and none of the Company, such Trustee or any agent of the
Company or such Trustee shall be affected by notice to the contrary.
Title to any Bearer Security and any coupons appertaining thereto shall
pass by delivery. The Company, the Trustee for such Security and any agent of
the Company or such Trustee may treat the bearer of any Bearer Security and the
bearer of any coupon as the absolute owner of such Bearer Security or coupon for
the purpose of receiving payment thereof or on account thereof and for all other
purposes whatsoever, whether or not such Security or coupon be overdue, and none
of the Company, such Trustee or any agent of the Company or such Trustee shall
be affected by notice to the contrary.
None of the Company, the Trustee, any Paying Agent or the Security
Registrar will have any responsibility or liability for any aspect of the
records relating to or payments made on account of beneficial ownership
interests of a Global Security or for maintaining, supervising or reviewing any
records relating to such beneficial ownership interests.
Section 309. Cancellation.
All Securities and coupons surrendered for payment, redemption,
registration of transfer or exchange, or delivered in satisfaction of any
sinking fund payment, shall, if surrendered to any Person other than the Trustee
for such Securities, be delivered to such Trustee and, in the case of Registered
Securities and matured coupons, shall be promptly cancelled by it. All Bearer
Securities and unmatured coupons so delivered to the Trustee for such Securities
shall be cancelled by such Trustee. The Company may at any time deliver to the
Trustee for Securities of a series for cancellation any Securities previously
authenticated and delivered hereunder which the Company may have acquired in any
manner whatsoever, and all Securities so delivered shall be promptly cancelled
by such Trustee. Notwithstanding any other provision of this Indenture to the
contrary, in the case of a series, all the Securities of which are not to be
originally issued at one time, a Security of such series shall not be deemed to
have been Outstanding at any time hereunder if and to the extent that,
subsequent to the authentication and delivery thereof, such Security is
delivered to the Trustee for such Security for cancellation by the Company or
any agent thereof upon the failure of the original purchaser thereof to make
payment therefor against delivery thereof, and any Security so delivered to such
Trustee shall be promptly cancelled by it. No Securities shall be authenticated
in lieu of or in exchange for any Securities cancelled as provided in this
Section, except as expressly permitted by this Indenture. All cancelled
Securities and coupons held by the Trustee for such Securities shall be disposed
of by such Trustee in accordance with its standard procedures and a certificate
of disposition evidencing such disposition of Securities and coupons shall be
provided to the Company by such Trustee. In the case of any temporary Global
Security, which shall be disposed of if the entire aggregate principal amount of
the Securities represented thereby has been exchanged, the certificate of
disposition shall state that all certificates required pursuant to Section 304
hereof, substantially in the form of Exhibit B hereto (or in the form of any
substitute exhibit as provided in the last paragraph of Section 304), to be
given by Euro-clear or Clearstream, have been duly presented to the Trustee for
such Securities by Euro-clear or Clearstream, as the case may be. Permanent
Global Securities shall not be disposed of until exchanged in full for
definitive Securities or until payment thereon is made in full.
Section 310. Computation of Interest and Determination of Comparable Yield.
Except as otherwise specified as contemplated by Section 301 for
Securities of any particular series, interest on the Securities of each series
shall be computed on the basis of a 360-day year of twelve 30-day months.
If the Securities of a given series are contingent payment debt
instruments within the meaning of Treasury Regulations section 1.1275-4, the
Holders of such Securities shall, for U.S. federal income tax purposes, be bound
by the Company's determination of the comparable yield and projected payment
schedule for such Securities.
Section 311. Currency and Manner of Payments in Respect of Securities.
Unless otherwise specified in accordance with Section 301 with respect
to any series of Securities, the following provisions shall apply:
(a) Except as provided in paragraphs (b) and (d) below, the principal of,
premium, if any, and interest on Securities of any series denominated in a
Foreign Currency or currency unit will be payable by the Company in Dollars
based on the equivalent of that Foreign Currency or currency unit converted into
Dollars in the manner described in paragraph (c) below.
(b) It may be provided pursuant to Section 301 with respect to Registered
Securities of any series denominated in a Foreign Currency or currency unit that
Holders shall have the option, subject to paragraph (d) below, to receive
payments of principal of, premium, if any, and interest on such Registered
Securities in such Foreign Currency or currency unit by delivering to the
Trustee (or to any duly appointed Paying Agent) for the Registered Securities of
that series a written election, to be in form and substance satisfactory to such
Trustee (or to any such Paying Agent), not later than the close of business on
the Election Date immediately preceding the applicable payment date. If a Holder
so elects to receive such payments in such Foreign Currency or currency unit,
such election will remain in effect for such Holder until changed by such Holder
by written notice to the Trustee (or to any such Paying Agent) for the
Registered Securities of that series; provided, however, that any such change
must be made not later than the close of business on the Election Date
immediately preceding the next payment date to be effective for the payment to
be made on such payment date; and provided, further, that no such change or
election may be made with respect to payments to be made on any Registered
Security of such series with respect to which an Event of Default has occurred,
the Company has exercised any defeasance, satisfaction or discharge options
pursuant to Article 4 or notice of redemption has been given by the Company
pursuant to Article 11. If any Holder makes any such election, such election
will not be effective as to any transferee of such Holder and such transferee
shall be paid in Dollars unless such transferee makes an election as specified
above; provided, however, that such election, if in effect while funds are on
deposit with respect to the Registered Securities of such series as described in
Section 404 or Section 405, will be effective on any transferee of such Holder
unless otherwise specified pursuant to Section 301 for such Registered
Securities. Any Holder of any such Registered Security who shall not have
delivered any such election to the Trustee (or to any duly appointed Paying
Agent) for the Registered Securities of such series not later than the close of
business on the applicable Election Date will be paid the amount due on the
applicable payment date in Dollars.
(c) With respect to any Registered Securities of any series denominated in
a Foreign Currency or currency unit and payable in Dollars, the amount of
Dollars so payable will be determined by the Currency Determination Agent based
on the highest indicative quotation in The City of New York selected by the
Currency Determination Agent at approximately 11:00 A.M., New York City time, on
the second Business Day preceding the applicable payment date. Such selection
shall be made from among the quotations appearing on the bank composite or
multi-contributor pages of the Reuters Monitor Foreign Exchange Service or, if
not available, the Telerate Monitor Foreign Exchange Service, for three (or two
if three are not available) major banks in New York City. The first three (or
two) such banks selected by the Currency Determination Agent which are offering
quotes on the Reuters Foreign Exchange Service, as the case may be, shall be
used. If such quotations are unavailable from either such foreign exchange
service, such selection shall be made from the quotations received by the
Currency Determination Agent from no more than three nor less than two
recognized foreign exchange dealers in The City of New York selected by the
Currency Determination Agent and approved by the Company (one of which may be
the Currency Determination Agent) for the purchase by the quoting dealer, for
settlement on such payment date, of the aggregate amount of the Foreign Currency
or currency unit payable on such payment date in respect of all Registered
Securities denominated in such Foreign Currency or currency unit and for which
the applicable dealer commits to execute a contract. If fewer than two such bid
quotations are available at 11:00 a.m., New York City time, on the second
Business Day preceding the applicable payment date, such payment will be based
on the Market Exchange Rate as of the second Business Day preceding the
applicable payment date. If the Market Exchange Rate for such date is not then
available, payments shall be made in the Foreign Currency or currency unit. All
currency exchange costs associated with any payment in Dollars on any such
Registered Securities will be borne by the Holder thereof by deductions from
such payment.
(d) If a Conversion Event occurs with respect to a Foreign Currency or
currency unit in which Registered Securities of any series are payable, then
with respect to each date for the payment of principal of, premium, if any, and
interest on the Registered Securities of that series occurring after the last
date on which such Foreign Currency or currency unit was used, the Company may
make such payment in Dollars. The Dollar amount to be paid by the Company to the
Trustee for the Registered Securities of such series and by such Trustee or any
Paying Agent for the Registered Securities of such series to the Holders of such
Registered Securities with respect to such payment date shall be determined by
the Currency Determination Agent on the basis of the Market Exchange Rate as of
the second Business Day preceding the applicable payment date or, if such Market
Exchange Rate is not then available, on the basis of the most recently available
Market Exchange Rate, or as otherwise established pursuant to Section 301 with
respect to such Notes. Any payment in respect of such Registered Security made
under such circumstances in Dollars will not constitute an Event of Default
hereunder.
(e) For purposes of this Indenture the following terms shall have the
following meanings:
A "Component Currency" shall mean any currency which is a
component currency of any currency unit.
"Election Date" shall mean, for the Registered Securities of
any series, the date specified pursuant to Section 301(14).
(f) Notwithstanding any other provisions of this Section 311, the following
shall apply: (i) if the official unit of any Component Currency is altered by
way of combination or subdivision, the number of units of that currency as a
component shall be divided or multiplied in the same proportion, (ii) if two or
more Component Currencies are consolidated into a single currency, the amounts
of those currencies as components shall be replaced by an amount in such single
currency equal to the sum of the amounts of the consolidated Component
Currencies expressed in such a single currency, (iii) if any Component Currency
is divided into two or more currencies, the amount of that original Component
Currency as a component shall be replaced by the amounts of such two or more
currencies having an aggregate value on the date of division equal to the amount
of the former Component Currency immediately before such division and (iv) in
the event of an official redenomination of any currency (including, without
limitation, a currency unit), the obligations of the Company to make payments in
or with reference to such currency on the Registered Securities of any series
shall, in all cases, be deemed immediately following such redenomination to be
obligations to make payments in or with reference to that amount of
redenominated currency representing the amount of such currency immediately
before such redenomination.
(g) All determinations referred to in this Section 311 made by the Currency
Determination Agent shall be in its sole discretion and shall, in the absence of
manifest error, be conclusive for all purposes and irrevocably binding upon the
Holders of the applicable Securities. The Currency Determination Agent shall
promptly give written notice to the Trustee for the Securities of such series of
any such decision or determination. The Currency Determination Agent shall
promptly give written notice to the Trustee of any such decision or
determination. The Currency Determination Agent shall have no liability for any
determinations referred to in this Section 311 made by it.
(h) The Trustee for the Securities of a particular series shall be fully
justified and protected in relying and acting upon information received by it
from the Company and the Currency Determination Agent with respect to any of the
matters addressed in or contemplated by this Section 311 and shall not otherwise
have any duty or obligation to determine such information independently.
Section 312. Appointment and Resignation of Currency Determination Agent.
(a) If and so long as the Securities of any series (i) are denominated in a
currency unit or a currency other than Dollars or (ii) may be payable in a
currency unit or a currency other than Dollars, or so long as it is required
under any other provision of this Indenture, then the Company shall maintain
with respect to each such series of Securities, or as so required, a Currency
Determination Agent. The Company shall cause the Currency Determination Agent to
make the necessary foreign exchange determinations at the time and in the manner
specified pursuant to Section 301 for the purpose of determining the applicable
rate of exchange and for the purpose of converting the issued currency or
currency unit into the applicable payment currency or currency unit for the
payment of principal (and premium, if any) and interest, if any, pursuant to
Section 311.
(b) No resignation of the Currency Determination Agent and no appointment
of a successor Currency Determination Agent pursuant to this Section shall
become effective until the acceptance of appointment by the successor Currency
Determination Agent as evidenced by a written instrument delivered to the
Company and the Trustee of the appropriate series of Securities accepting such
appointment executed by the successor Currency Determination Agent.
(c) If the Currency Determination Agent shall resign, be removed or become
incapable of acting, or if a vacancy shall occur in the office of the Currency
Determination Agent for any cause, with respect to the Securities of one or more
series, the Company, by a Board Resolution, shall promptly appoint a successor
Currency Determination Agent or Currency Determination Agents with respect to
the Securities of that or those series (it being understood that any such
successor Currency Determination Agent may be appointed with respect to the
Securities of one or more or all of such series and that at any time there shall
only be one Currency Determination Agent with respect to the Securities of any
particular series).
ARTICLE 4
SATISFACTION AND DISCHARGE
--------------------------
Section 401. Option to Effect Legal Defeasance or Covenant Defeasance.
The Company may, at the option of its Board of Directors evidenced by a
Board Resolution set forth in an Officers' Certificate, at any time, with
respect to the Securities of any series, unless otherwise specified pursuant to
Section 301 with respect to a particular series of Securities, elect to have
either Section 402 or 403 be applied to all of the Outstanding Securities of
that series upon compliance with the conditions set forth below in this Article
4.
Section 402. Legal Defeasance and Discharge.
Upon the Company's exercise under Section 401 of the option applicable
to this Section 402, the Company shall be deemed to have been discharged from
its obligations with respect to all Outstanding Securities of the particular
series, and the provisions of Article 14 shall cease to be effective with
respect to all Outstanding Securities of the Series, on the date the conditions
set forth below are satisfied (hereinafter, "Legal Defeasance"). For this
purpose, such Legal Defeasance means that the Company shall be deemed to have
paid and discharged all the obligations relating to the Outstanding Securities
of that series and the Securities of that series shall thereafter be deemed to
be "outstanding" only for the purposes of Section 406, Section 408 and the other
Sections of this Indenture referred to below in this Section 402, and to have
satisfied all of its other obligations under such Securities and this Indenture
and cured all then existing Events of Default (and the Trustee, on demand of and
at the expense of the Company, shall execute proper instruments acknowledging
the same), except for the following which shall survive until otherwise
terminated or discharged hereunder: (a) the rights of Holders of outstanding
Securities of the particular series and coupons, if any, of such series to
receive payments in respect of the principal of, premium, if any, and interest,
if any, on such Securities when such payments are due or on the Redemption Date
solely out of the trust created pursuant to this Indenture; (b) the Company's
obligations with respect to such Securities concerning issuing temporary
Securities of that series, or, where relevant, registration of such Securities,
mutilated, destroyed, lost or stolen Securities of that series and the
maintenance of an office or agency for payment and money for Security payments
held in trust; (c) the rights, powers, trusts, duties and immunities of the
Trustee for the Securities of that series, and the Company's obligations in
connection therewith; and (d) this Article 4 and the obligations set forth in
Section 406 hereof.
Subject to compliance with this Article 4, the Company may exercise its
option under Section 402 notwithstanding the prior exercise of its option under
Section 403 with respect to the Securities of a particular series.
Section 403. Covenant Defeasance.
Upon the Company's exercise under Section 401 of the option applicable
to this Section 403, the Company shall be released from any obligations under
the covenants contained in Sections 704, 801 and Article 14 hereof or
established pursuant to Sections 301(26), 901(2) or 901(11) hereof with respect
to the Outstanding Securities of the particular series on and after the date the
conditions set forth below are satisfied (hereinafter, "Covenant Defeasance"),
and the Securities of that series shall thereafter be deemed not "Outstanding"
for the purposes of any direction, waiver, consent or declaration or act of
Holders (and the consequences of any thereof) in connection with such covenants,
but shall continue to be deemed "Outstanding" for all other purposes hereunder
(it being understood that such Securities shall not be deemed outstanding for
accounting purposes). For this purpose, such Covenant Defeasance means that,
with respect to the Outstanding Securities of that series, the Company may omit
to comply with and shall have no liability in respect of any term, condition or
limitation set forth in any such covenant, whether directly or indirectly, by
reason of any reference elsewhere herein to any such covenant or by reason of
any reference in any such covenant to any other provision herein or in any other
document and such omission to comply shall not constitute a default or Event of
Default under subsection 501(3) but, except as specified above, the remainder of
this Indenture and the Securities of that series shall be unaffected thereby.
Section 404. Conditions to Legal or Covenant Defeasance.
The following shall be the conditions to the application of either
Section 402 or Section 403 to the outstanding Securities of a particular series:
(a) the Company must irrevocably deposit, or cause to be irrevocably
deposited, with the Trustee for the Securities of that series, in
trust, for the benefit of the Holders of the Securities of that
series, cash in the currency or currency unit in which the Securities
of that series are payable (except as otherwise specified pursuant to
Section 301 for the Securities of that series and except as provided
in Sections 311(b) and 311(d), in which case the deposit to be made
with respect to Securities for which an election has occurred pursuant
to Section 311(b), or a Conversion Event has occurred as provided in
Section 311(d), shall be made in the currency or currency unit in
which the Securities of that series are payable as a result of such
election or Conversion Event), Government Obligations or a combination
thereof in such amounts as will be sufficient, in the opinion of an
internationally recognized firm of independent public accountants, to
pay the principal of, premium, if any, and interest, if any, due on
the outstanding Securities of that series and any related coupons at
the Stated Maturity, or on the applicable Redemption Date, as the case
may be, with respect to the outstanding Securities of that series and
any related coupons; before such a deposit, the Company may make
arrangements satisfactory to the Trustee for the redemption of
Securities at a future date or dates in accordance with Article 14,
which shall be given effect in applying the foregoing;
(b) in the case of Legal Defeasance, the Company shall have delivered to
the Trustee for the Securities of that series an Opinion of Counsel in
the United States reasonably acceptable to such Trustee confirming
that, subject to customary assumptions and exclusions, (1) the Company
has received from, or there has been published by, the U.S. Internal
Revenue Service a ruling or (2) since the Issue Date, there has been a
change in the applicable U.S. federal income tax law, in either case
to the effect that, and based thereon such Opinion of Counsel in the
United States shall confirm that, subject to customary assumptions and
exclusions, the Holders of the Outstanding Securities of that series
will not recognize income, gain or loss for U.S. federal income tax
purposes as a result of such Legal Defeasance and will be subject to
U.S. federal income tax on the same amounts, in the same manner and at
the same times as would have been the case if such Legal Defeasance
had not occurred;
(c) in the case of Covenant Defeasance, the Company shall have delivered
to the Trustee for the Securities of that series an Opinion of Counsel
in the United States reasonably acceptable to such Trustee confirming
that, subject to customary assumptions and exclusions, the Holders of
the Outstanding Securities of that series will not recognize income,
gain or loss for U.S. federal income tax purposes as a result of such
Covenant Defeasance and will be subject to such tax on the same
amounts, in the same manner and at the same times as would have been
the case if such Covenant Defeasance had not occurred;
(d) no Event of Default or event which with the giving of notice or the
lapse of time, or both, would become an Event of Default with respect
to the Securities of that series shall have occurred and be continuing
on the date of such deposit and no Event of Default under Section
501(5) or Section 501(6) shall have occurred and be continuing on the
123rd day after such date;
(e) such Legal Defeasance or Covenant Defeasance shall not result in a
breach or violation of, or constitute a default under any material
agreement or instrument to which the Company is a party or by which
the Company is bound;
(f) the Company shall have delivered to the Trustee for the Securities of
that series an Officers' Certificate and an Opinion of Counsel in the
United States (which opinion of counsel may be subject to customary
assumptions and exclusions) each stating that all conditions precedent
provided for or relating to the Legal Defeasance or the Covenant
Defeasance, as the case may be, have been complied with;
(g) no event or condition shall exist that, pursuant to the provisions of
Article 14, would prevent the Company from making payments of the
principal of (and any premium) or interest on the Securities of such
series on the date of such deposit or on the 123rd day after the date
of such deposit.
Section 405. Satisfaction and Discharge of Indenture.
This Indenture will be discharged and will cease to be of further
effect as to all Securities of any particular series issued hereunder when
either (i) all Securities of that series theretofore authenticated and delivered
and all coupons, if any, appertaining thereto (except (A) coupons appertaining
to Bearer Securities surrendered for exchange for Registered Securities and
maturing after such exchange, whose surrender is not required or has been waived
as provided in Section 305, (B) lost, stolen or destroyed Securities or coupons
of such series which have been replaced or paid as provided in Section 306, (C)
coupons appertaining to Securities called for redemption and maturing after the
relevant Redemption Date, whose surrender is not required as provided in Section
1106 and (D) Securities and coupons of such series for whose payment money has
theretofore been deposited in trust and thereafter repaid to the Company or
discharged from such trust, as provided in the last paragraph of Section 1003)
have been delivered to the Trustee for the Securities of that series for
cancellation or (ii) (A) all Securities of that series and any coupons
appertaining thereto not theretofore delivered to Trustee for cancellation are
due and payable by their terms within one year or have become due and payable by
reason of the making of a notice of redemption and the Company has irrevocably
deposited or caused to be deposited with such Trustee as trust funds in trust an
amount of cash in any combination of currency or currency unit in which the
Securities of such series are payable (except as otherwise specified pursuant to
Section 301 for the Securities of such series and except as provided in Sections
311(b) and 311(d), in which case the deposit to be made with respect to
Securities for which an election has occurred pursuant to Section 311(b) or a
Conversion Event has occurred as provided in Section 311(d), shall be made in
the currency or currency unit in which such Securities are payable as a result
of such election or Conversion Event) sufficient to pay and discharge the entire
indebtedness on such Securities and coupons not theretofore delivered to the
Trustee for the Securities of that series for cancellation for principal,
premium, if any, and accrued and unpaid interest, if any, to the Stated Maturity
or Redemption Date, as the case may be; (B) no Event of Default or event which
with the giving of notice or the lapse of time, or both, would become an Event
of Default shall have occurred and be continuing on the date of such deposit and
no Event of Default under Section 501(5) or Section 501(6) shall have occurred
and be continuing on the 123rd day after such date; (C) the Company has paid, or
caused to be paid, all sums payable by it under this Indenture; and (D) the
Company has delivered irrevocable instructions to the Trustee for the Securities
of that series under this Indenture to apply the deposited money toward the
payment of such Securities and coupons at the Stated Maturity or the Redemption
Date, as the case may be. In addition, the Company must deliver an Officers'
Certificate and an Opinion of Counsel to the Trustee for the Securities of that
series stating that all conditions precedent to satisfaction and discharge have
been satisfied.
Section 406. Survival of Certain Obligations.
Notwithstanding the satisfaction and discharge of this Indenture and of
the Securities of a particular series referred to in Sections 401, 402, 404, or
405, the respective obligations of the Company and the Trustee for the
Securities of a particular series under Sections 303, 304, 305, 307, 309, 407,
408, 409, 410, and 508, Article 6, and Sections 701, 702, 1002, 1003, 1004 and
1006, shall survive with respect to Securities of that series until the
Securities of that series are no longer outstanding, and thereafter the
obligations of the Company and the Trustee for the Securities of a particular
series with respect to that series under Sections 407, 408, 409, and 410 shall
survive. Nothing contained in this Article 4 shall abrogate any of the
obligations or duties of the Trustee of any series of Securities under this
Indenture.
Notwithstanding the satisfaction of the conditions set forth in
Sections 404 or 405 with respect to all the Securities of any series not payable
in Dollars, upon the happening of any Conversion Event the Company shall be
obligated to make the payments in Dollars required by Section 311(d) to the
extent that the Trustee is unable to convert any Foreign Currency or currency
unit or currency unit in its possession pursuant to Sections 404 or 405 into the
Dollar equivalent of such Foreign Currency or currency unit, as the case may be.
If, after the deposits referred to in Sections 404 or 405 have been made, (x)
the Holder of a Security is entitled to, and does, elect pursuant to Section
311(b) to receive payment in a currency or currency unit other than that in
which the deposit pursuant to Sections 404 or 405 was made, or (y) a Conversion
Event occurs as contemplated in Section 311(d), then the indebtedness
represented by such Security shall be fully discharged to the extent that the
deposit made with respect to such Security shall be converted into the currency
or currency unit in which such Security is payable. The Trustee shall return to
the Company any non-converted funds or securities in its possession after such
payments have been made.
Section 407. Acknowledgment of Discharge by Trustee.
Subject to Section 410, after (i) the conditions of Section 404 or 405
have been satisfied with respect to the Securities of a particular series, (ii)
the Company has paid or caused to be paid all other sums payable hereunder by
the Company and (iii) the Company has delivered to the Trustee for the
Securities of that series an Officers' Certificate and an Opinion of Counsel,
each stating that all conditions precedent referred to in clause (i) above
relating to the satisfaction and discharge of this Indenture have been complied
with, the Trustee for the Securities of that series upon written request shall
acknowledge in writing the discharge of all of the Company's obligations under
this Indenture except for those surviving obligations specified in this Article
4.
Section 408. Application of Trust Moneys.
All money and Government Obligations deposited with the Trustee for the
Securities of a particular series pursuant to Section 404 or 405 in respect of
the Securities of that series shall be held in trust and applied by it, in
accordance with the provisions of such Securities and this Indenture, to the
payment, either directly or through any Paying Agent as the Trustee may
determine, to the Holders of the Securities and all related coupons of all sums
due and to become due thereon for principal, premium, if any, and interest, if
any, but such money need not be segregated from other funds except to the extent
required by law. Money and Governmental Obligations (including the proceeds
thereof) so held in trust shall not be subject to the provisions of Article 14,
provided that the applicable conditions of Section 404 have been satisfied.
The Company shall pay and indemnify the Trustee for the Securities of a
particular series against any tax, fee or other charge imposed on or assessed
against the Government Obligations deposited pursuant to Section 404 or 405 with
respect to the Securities of that series or the principal and interest received
in respect thereof other than any such tax, fee or other charge which by law is
for the account of the Holders of outstanding Securities of that series.
Section 409. Repayment to the Company; Unclaimed Money.
The Trustee and any Paying Agent for a series of Securities shall
promptly pay or return to the Company upon Company Order any cash or Government
Obligations held by them at any time that are not required for the payment of
the principal of, premium, if any, and interest, if any, on the Securities and
all related coupons for Securities of that series for which cash or Government
Obligations have been deposited pursuant to Section 404 or 405.
Any money deposited with the Trustee or any Paying Agent for the
Securities of any series, or then held by the Company, in trust for the payment
of the principal of (and premium, if any) and interest, if any, on any Security
of any particular series and all related coupons appertaining thereto and
remaining unclaimed for two years after such principal (and premium, if any) and
interest, if any, has become due and payable shall, unless otherwise required by
mandatory provisions of applicable escheat, or abandoned or unclaimed property
law, be paid to the Company on Company Request or (if then held by the Company)
shall be discharged from such trusts; and the Holder of such Security and all
related coupons shall, thereafter, as an unsecured general creditor, look only
to the Company for payment thereof, and all liability of such Trustee or such
Paying Agent with respect to such trust money, and all liability of the Company
as trustee thereof, shall thereupon cease; provided, however, that such Trustee
or such Paying Agent, before being required to make any such repayment may give
written notice to the Holder of such Security in the manner set forth in Section
106, that such money remains unclaimed and that, after a date specified therein,
which shall not be less than 30 days from the date of such publication, any
unclaimed balance of such money then remaining will, unless otherwise required
by mandatory provisions of applicable escheat, or abandoned or unclaimed
property law, be repaid to the Company, as the case may be.
Section 410. Reinstatement.
If the Trustee or Paying Agent for a series of Securities is unable to
apply any cash or Government Obligations, as applicable, in accordance with
Section 402, 403, 404 or 405 by reason of any legal proceeding or by reason of
any order or judgment of any court or governmental authority enjoining,
restraining or otherwise prohibiting such application, the Company's obligations
under this Indenture and the Securities of that series shall be revived and
reinstated as though no deposit had occurred pursuant to Section 402, 403, 404
or 405 until such time as the Trustee or Paying Agent for that series is
permitted to apply all such cash or Government Obligations in accordance with
Section 402, 403, 404 or 405; provided, however, that if the Company has made
any payment of principal, premium, if any, and interest, if any, on any
Securities and any related coupons because of the reinstatement of its
obligations, the Company shall be subrogated to the rights of the Holders of
such Securities and such coupons to receive such payment from the cash or
Government Obligations, as applicable, held by such Trustee or Paying Agent.
ARTICLE 5
REMEDIES
--------
Section 501. Events of Default.
"Event of Default" wherever used herein with respect to any particular
series of Securities means any one of the following events and such other events
as may be established with respect to the Securities of such series as
contemplated by Section 301 (whatever the reason for such Event of Default and
whether it shall be occasioned by the provisions of Article 14 or be voluntary
or involuntary or be effected by operation of law pursuant to any judgment,
decree or order of any court or any order, rule or regulation of any
administrative or governmental body):
(1) default in the payment of any installment of interest upon any Security
of that series and any related coupon when it becomes due and payable,
and continuance of such default for a period of 30 days; or
(2) default in the payment of the principal of (or premium, if any, on) any
Security of that series at its Maturity or default in the deposit of
any sinking fund payment when and as due by the terms of any Security
of that series; or
(3) default in the performance of, or breach of, any covenant or warranty
of the Company in respect of any Security of that series contained in
this Indenture or in such Securities (other than a covenant or warranty
a default in whose performance or whose breach is elsewhere in this
Section specifically dealt with) or in the applicable Board Resolutions
under which such series is issued as contemplated by Section 301 and
continuance of such default or breach for a period of 60 days after
there has been given, by registered or certified mail, to the Company
by the Trustee for the Securities of such series or to the Company and
such Trustee by the Holders of at least 25% in principal amount of the
Outstanding Securities of that series a written notice specifying such
default or breach and requiring it to be remedied and stating that such
notice is a "Notice of Default" hereunder; or
(4) acceleration of maturity of Securities of another series or any other
indebtedness for borrowed money of the Company or any of its
Significant Subsidiaries, in an aggregate principal amount exceeding
$25 million, under the terms of the instrument or instruments under
which such indebtedness is issued or secured, if such acceleration is
not annulled within 30 days after written notice is provided of such
acceleration to the Company; or
(5) the Company shall commence any case or proceeding seeking to have an
order for relief entered on its behalf as debtor or to adjudicate it as
bankrupt or insolvent or seeking reorganization, liquidation,
dissolution, winding-up, arrangement, composition or readjustment of
its debts or any other relief under any bankruptcy, insolvency,
reorganization, liquidation, dissolution, arrangement, composition,
readjustment of debt or other similar act or law of any jurisdiction,
domestic or foreign, now or hereafter existing; or the Company shall
apply for a receiver, custodian or trustee (other than any trustee
appointed as a mortgagee or secured party in connection with the
issuance of indebtedness for borrowed money of the Company) of it or
for all or a substantial part of its property; or the Company shall
make a general assignment for the benefit of creditors; or the Company
shall take any corporate action in furtherance of any of the foregoing;
or
(6) an involuntary case or other proceeding shall be commenced against the
Company with respect to it or its debts under any bankruptcy,
insolvency or other similar law now or hereafter in effect seeking the
appointment of a trustee, receiver, liquidator, custodian or similar
official of the Company or any substantial part of either's property;
and such case or other proceeding (A) results in the entry of an order
for relief or a similar order against either the Company or (B) shall
continue unstayed and in effect for a period of 60 consecutive days; or
(7) a final non-appealable judgment or order for the payment of money in
excess of $25 million rendered against the Company or any of its
Significant Subsidiaries has not been paid or discharged within 60 days
following entry of such judgment or order; or
(8) any other Event of Default provided in the Security or the Board Resolution
with respect to Securities of that series.
Section 502. Acceleration of Maturity; Rescission and Annulment.
If an Event of Default with respect to any particular series of
Securities and any related coupons occurs and is continuing (other than an Event
of Default described in Section 501(5) or 501(6)), then and in every such case
either the Trustee for the Securities of such series or the Holders of not less
than 25% in principal amount of the Outstanding Securities of that series may
declare the entire principal amount (or, in the case of (i) OID Securities, such
lesser amount as may be provided for in the terms of that series or (ii) Indexed
Securities, the amount determined in accordance with the specified terms of
those Securities) of all the Securities of that series, to be due and payable
immediately, by a notice in writing to the Company (and to such Trustee if given
by Holders), and upon any such declaration of acceleration such principal or
such lesser amount, as the case may be, together with accrued interest and all
other amounts owing hereunder, shall become immediately due and payable, without
presentment, demand, protest or notice of any kind, all of which are hereby
expressly waived.
If any Event of Default specified in Section 501(5) or 501(6) occurs
with respect to the Company, all of the unpaid principal amount (or, if the
Securities of any series then outstanding are (i) OID Securities, such lesser
amount as may be provided for in the terms of that series or (ii) Indexed
Securities, the amount determined in accordance with the specified terms of
those Securities) and accrued interest on all Securities of each series then
outstanding shall ipso facto become and be immediately due and payable without
any declaration or other act by the Trustee or any Holder.
At any time after such a declaration of acceleration has been made and
before a judgment or decree for payment of the money due has been obtained by
the Trustee for the Securities of any series as hereinafter in this Article
provided, the Holders of a majority in principal amount of the Outstanding
Securities of that series, by written notice to the Company and such Trustee,
may rescind and annul such declaration and its consequences if:
(1) the Company has paid or deposited with such Trustee a sum sufficient to
pay in the currency or currency unit in which the Securities of such
series are payable (except as otherwise specified pursuant to Section
301 for the Securities of such series and except as provided in
Sections 311(b) and 311(d).
(A) all overdue interest on all Securities of that series and any
related coupons;
(B) the principal of (and premium, if any, on) any Securities of that
series which have become due otherwise than by such declaration
of acceleration and interest thereon from the date such principal
became due at a rate per annum equal to the rate borne by the
Securities of such series (or, in the case of (i) OID Securities,
the Securities' Yield to Maturity or (ii) Indexed Securities, the
rate determined in accordance with the specified terms of those
Securities), to the extent that the payment of such interest
shall be legally enforceable;
(C) to the extent that payment of such interest is lawful, interest
upon overdue interest at a rate per annum equal to the rate borne
by the Securities of such series (or, in the case of (i) OID
Securities, the Securities' Yield to Maturity or (ii) Indexed
Securities, the rate determined in accordance with the specified
terms of those Securities); and
(D) all sums paid or advanced by such Trustee hereunder and the
reasonable compensation, expenses, disbursements and advances of
such Trustee, its agents and counsel and all other amounts due to
such Trustee under Section 607;
and
(2) all Events of Default with respect to the Securities of such series,
other than the nonpayment of the principal of Securities of that series
which has become due solely by such acceleration, have been cured or
waived as provided in Section 513. No such rescission shall affect any
subsequent default or impair any right consequent thereon.
Section 503. Collection of Indebtedness and Suits for Enforcement by Trustee.
The Company covenants that if:
(1) default is made in the payment of any interest upon any Security of any
series and any related coupons when such interest becomes due and payable
and such default continues for a period of 30 days; or
(2) default is made in the payment of the principal of (or premium, if any, on)
any Security of any series at its Maturity;
the Company will, upon demand of the Trustee for the Securities of such series,
pay to it, for the benefit of the Holders of such Securities and coupons, the
whole amount then due and payable on such Securities and coupons for principal
(and premium if any) and interest, if any, with interest upon the overdue
principal (and premium, if any) and, to the extent that payment of such interest
shall be legally enforceable, upon any overdue installments of interest at a
rate per annum equal to the rate borne by such Securities (or, in the case of
(i) OID Securities, the Securities' Yield to Maturity or (ii) Indexed
Securities, the rate determined in accordance with the specified terms of those
Securities); and, in addition thereto, such further amount as shall be
sufficient to cover the costs and expenses of collection, including the
reasonable compensation, expenses, disbursements and advances of such Trustee,
its agents and counsel and all other amounts due to such Trustee under Section
607.
If the Company fails to pay such amounts forthwith upon such demand,
such Trustee, in its own name and as trustee of an express trust, may institute
a judicial proceeding against the Company for the collection of the sums so due
and unpaid, and may prosecute such proceedings to judgment or final decree, and
may enforce the same against the Company or any other obligor upon the
Securities and collect the moneys adjudged or decreed to be payable in the
manner provided by law out of the property of the Company or any other obligor
upon the Securities, wherever situated.
If an Event of Default with respect to Securities of any particular
series occurs and is continuing, the Trustee for the Securities of such series
may in its discretion proceed to protect and enforce its rights and the rights
of the Holders of Securities of that series by such appropriate judicial
proceedings as such Trustee shall deem most effectual to protect and enforce any
such rights, whether for the specific enforcement of any covenant or agreement
in this Indenture or in aid of the exercise of any power granted herein, or to
enforce any other proper remedy.
Section 504. Trustee May File Proofs of Claim.
In case of the pendency of any receivership, insolvency, liquidation,
bankruptcy, reorganization, arrangement, adjustment, composition or other
judicial proceeding relating to the Company or any other obligor upon the
Securities of any series or the property of the Company or of such other obligor
or their creditors, the Trustee for the Securities of such series (irrespective
of whether the principal (or, if the Securities of such series are (i) OID
Securities or (ii) Indexed Securities, such amount as may be due and payable
with respect to such Securities pursuant to a declaration in accordance with
Section 502) of any Security of such series shall then be due and payable as
therein expressed or by declaration or otherwise and irrespective of whether
such Trustee shall have made any demand on the Company for the payment of
overdue principal or interest) shall be entitled and empowered, by intervention
in such proceeding or otherwise
(i) to file and prove a claim for the whole amount of principal
(or, if the Securities of such series are (i) OID Securities or (ii)
Indexed Securities, such amount as may be due and payable with respect
to such Securities pursuant to a declaration in accordance with
Section 502) (and premium, if any) and interest, if any, owing and
unpaid in respect of the Securities of such series and any related
coupons and to file such other papers or documents as may be necessary
or advisable in order to have the claims of such Trustee (including
any claim for the reasonable compensation, expenses, disbursements and
advances of such Trustee, its agents and counsel and all other amounts
due to such Trustee under Section 607) and of the Holders of the
Securities of such series and any related coupons allowed in such
judicial proceeding;
(ii) to collect and receive any moneys or other property payable
or deliverable on any such claims and to distribute the same; and
(iii) unless prohibited by law or applicable regulations, to vote
on behalf of the Holders of the Securities of such series in any
election of a trustee in bankruptcy or other person performing similar
functions;
and any receiver, assignee, trustee, liquidator, sequestrator (or other similar
official) in any such judicial proceeding is hereby authorized by each Holder of
Securities and coupons to make such payments to such Trustee, and in the event
that such Trustee shall consent to the making of such payments directly to the
Holders of Securities and coupons, to pay to such Trustee any amount due to it
for the reasonable compensation, expenses, disbursements and advances of such
Trustee, its agents and counsel, and any other amounts due such Trustee under
Section 607.
Nothing herein contained shall be deemed to authorize the Trustee for
the Securities of any series to authorize or consent to or accept or adopt on
behalf of any Holder of a Security or coupon any plan of reorganization,
arrangement, adjustment or composition affecting the Securities of such series
or the rights of any Holder thereof, or to authorize the Trustee for the
Securities or coupons of any series to vote in respect of the claim of any
Holder in any such proceeding, except as aforesaid, for the election of a
trustee in bankruptcy or other person performing similar functions.
Section 505. Trustee May Enforce Claims Without Possession of Securities
or Coupons.
All rights of action and claims under this Indenture or the Securities
or coupons of any series may be prosecuted and enforced by the Trustee for the
Securities of any series without the possession of any of the Securities or
coupons of such series or the production thereof in any proceeding relating
thereto, and any such proceeding instituted by such Trustee shall be brought in
its own name as trustee of an express trust, and any recovery of judgment shall,
after provision for the payment of the reasonable compensation, expenses,
disbursements and advances of such Trustee, its agents and counsel and all other
amounts due to such Trustee under Section 607, be for the ratable benefit of the
Holders of the Securities and coupons of such series in respect of which such
judgment has been recovered.
Section 506. Application of Money Collected.
Any money collected by the Trustee for the Securities of any series
pursuant to this Article with respect to the Securities or coupons of such
series shall be applied in the following order, at the date or dates fixed by
such Trustee and, in case of the distribution of such money on account of
principal (or premium, if any) or interest, if any, upon presentation of the
Securities or coupons of such series, or both, as the case may be, and the
notation thereon of the payment if only partially paid and upon surrender
thereof if fully paid:
FIRST: To the payment of all amounts due such Trustee under
Section 607;
SECOND: Subject to Article 14, to the payment of the amounts then
due and unpaid upon the Securities and coupons of such series for
principal of (and premium, if any) and interest, if any, on such
Securities 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 and
coupons for principal (and premium, if any) and interest, if any,
respectively; and
THIRD: The balance, if any, to the Person or Persons entitled
thereto.
Section 507. Limitation on Suits.
No Holder of any Security of any particular series or any related
coupons shall have any right to institute any proceeding, judicial or otherwise,
with respect to this Indenture, or for the appointment of a receiver or trustee,
or for any other remedy hereunder, unless:
(1) an Event of Default with respect to that series shall have
occurred and be continuing and such Holder shall have previously given
written notice to the Trustee for the Securities of such series of
such default and the continuance thereof;
(2) the Holders of not less than 25% in principal amount of the
Outstanding Securities of that series shall have made written request
to the Trustee for the Securities of such series to institute
proceedings in respect of such Event of Default in its own name as
Trustee hereunder;
(3) such Holder or Holders have offered to such Trustee
reasonable indemnity against the costs, expenses and liabilities to be
incurred in compliance with such request;
(4) such Trustee for 60 days after its receipt of such notice,
request and offer of indemnity has failed to institute any such
proceeding; and
(5) no direction inconsistent with such written request has been
given to such Trustee during such 60-day period by the Holders of a
majority in principal amount of the Outstanding Securities of that
series;
it being understood and intended that no one or more Holders of Securities of
that series shall have any right in any manner whatever by virtue of, or by
availing of, any provision of this Indenture to affect, disturb or prejudice the
rights of any other Holders of Securities of that series, or to enforce any
right under this Indenture, except in the manner herein provided and for the
equal and ratable benefit of all the Holders of Securities of that series.
Section 508. Unconditional Right of Holders to Receive Principal (and Premium,
if any) and Interest, if any.
Notwithstanding any other provision in this Indenture, the Holder of
any Security or coupon shall have the right which is absolute and unconditional
to receive payment of the principal of (and premium, if any) and (subject to
Section 307) interest, if any, on such Security on the respective Stated
Maturities expressed in such Security or coupon (or, in the case of redemption,
on the Redemption Date) and to institute suit for the enforcement of any such
payment, and such right shall not be impaired without the consent of such
Holder.
Section 509. Restoration of Rights and Remedies.
If the Trustee for the Securities of any series or any Holder of a
Security or coupon has instituted any proceeding to enforce any right or remedy
under this Indenture and such proceeding has been discontinued or abandoned for
any reason, or has been determined adversely to such Trustee or to such Holder,
then and in every such case the Company, such Trustee and the Holders of
Securities or coupons shall, subject to any determination in such proceeding, be
restored severally and respectively to their former positions hereunder, and
thereafter all rights and remedies of such Trustee and such Holders shall
continue as though no such proceeding had been instituted.
Section 510. Rights and Remedies Cumulative.
Except as otherwise provided with respect to the replacement or payment
of mutilated, destroyed, lost or stolen Securities or coupons in the last
paragraph of Section 306, no right or remedy herein conferred upon or reserved
to the Trustee for the Securities of any series or to the Holders of Securities
or coupons is intended to be exclusive of any other right or remedy, and every
right and remedy shall, to the extent permitted by law, be cumulative and in
addition to every other right and remedy given hereunder or now or hereafter
existing at law or in equity or otherwise. The assertion or employment of any
right or remedy hereunder, or otherwise, shall not prevent the concurrent
assertion or employment of any other appropriate right or remedy.
Section 511. Delay or Omission Not Waiver.
No delay or omission of the Trustee for the Securities of any series or
of any Holder of any Security of such series to exercise any right or remedy
accruing upon any Event of Default with respect to the Securities of such series
shall impair any such right or remedy or constitute a waiver of any such Event
of Default or an acquiescence therein. Every right and remedy given by this
Article or by law to such Trustee for the Securities or coupons of any series or
to the Holders may be exercised from time to time, and as often as may be deemed
expedient, by such Trustee or by the Holders, as the case may be.
Section 512. Control by Holders.
The Holders of a majority in principal amount of the Outstanding
Securities of any particular series shall have the right to direct the time,
method and place of conducting any proceeding for any remedy available to the
Trustee for the Securities of such series with respect to the Securities of that
series or exercising any trust or power conferred on such Trustee with respect
to such Securities, provided that:
(1) such direction shall not be in conflict with any rule of law
or with this Indenture and could not involve the Trustee in personal
liability; and
(2) such Trustee may take any other action deemed proper by such
Trustee which is not inconsistent with such direction.
Section 513. Waiver of Past Defaults.
The Holders of not less than a majority in principal amount of the
Outstanding Securities of any particular series and any related coupons may on
behalf of the Holders of all the Securities of that series waive any past
default hereunder with respect to that series and its consequences, except:
(1) a default in the payment of the principal of (or premium, if
any) or interest, if any, on any Security of that series; or
(2) a default with respect to a covenant or provision hereof
which under Article 9 cannot be modified or amended without the
consent of the Holder of each Outstanding Security of that series
affected.
Upon any such waiver, such default shall cease to exist, and any Event
of Default arising therefrom shall be deemed to have been cured, for every
purpose of this Indenture; but no such waiver shall extend to any subsequent or
other default or impair any right consequent thereon.
Section 514. Undertaking for Costs.
All parties to this Indenture agree, and each Holder of any Security or
coupon by his 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 the
Securities or coupons of any series 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 for the Securities
of any series, to any suit instituted by any Holder, or group of Holders,
holding in the aggregate more than 10% in principal amount of the Outstanding
Securities of any particular series or to any suit instituted by any Holder of
any Security or coupon for the enforcement of the payment of the principal of
(or premium, if any) or interest, if any, on any Security of such series or the
payment of any coupon on or after the respective Stated Maturities expressed in
such Security or coupon (or, in the case of redemption, on or after the
Redemption Date).
Section 515. Waiver of Stay or Extension Laws.
The Company covenants (to the extent that it may lawfully do so) that
it will not at any time insist upon, or plead, or in any manner whatsoever claim
or take the benefit or advantage of, any stay or extension law wherever enacted,
now or at any time hereafter in force, which may affect the covenants or the
performance of this Indenture; and the Company (to the extent that it may
lawfully do so) hereby expressly waives all benefit or advantage of any such
law, and covenants that it will not hinder, delay or impede the execution of any
power herein granted to the Trustee for any series of Securities, but will
suffer and permit the execution of every such power as though no such law had
been enacted.
Section 516. Judgment Currency.
If, for the purpose of obtaining a judgment in any court with respect
to any obligation of the Company hereunder or under any Security or any related
coupon, it shall become necessary to convert into any other currency or currency
unit any amount in the currency or currency unit due hereunder or under such
Security or coupon, then such conversion shall be made by the Currency
Determination Agent at the Market Exchange Rate as in effect on the date of
entry of the judgment (the "Judgment Date"). If pursuant to any such judgment,
conversion shall be made on a date (the "Substitute Date") other than the
Judgment Date and there shall occur a change between the Market Exchange Rate as
in effect on the Judgment Date and the Market Exchange Rate as in effect on the
Substitute Date, the Company agrees to pay such additional amounts, if any, as
may be necessary to ensure that the amount paid is equal to the amount in such
other currency or currency unit which, when converted at the Market Exchange
Rate as in effect on the Judgment Date, is the amount due hereunder or under
such Security or coupon. Any amount due from the Company under this Section 516
shall be due as a separate debt and is not to be affected by or merged into any
judgment being obtained for any other sums due hereunder or in respect of any
Security or coupon. In no event, however, shall the Company be required to pay
more in the currency or currency unit due hereunder or under such Security or
coupon at the Market Exchange Rate as in effect on the Judgment Date than the
amount of currency or currency unit stated to be due hereunder or under such
Security or coupon so that in any event the Company's obligations hereunder or
under such Security or coupon will be effectively maintained as obligations in
such currency or currency unit, and the Company shall be entitled to withhold
(or be reimbursed for, as the case may be) any excess of the amount actually
realized upon any such conversion on the Substitute Date over the amount due and
payable on the Judgment Date.
ARTICLE 6
THE TRUSTEE
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Section 601. Certain Duties and Responsibilities.
(a) Except during the continuance of an Event of Default with respect to
the Securities of any series for which the Trustee is serving as such,
(1) such Trustee undertakes to perform such duties and only such
duties as are specifically set forth in this Indenture, and no implied
covenants or obligations shall be read into this Indenture against such
Trustee; and
(2) in the absence of bad faith on its part, such Trustee may
conclusively rely, as to the truth of the statements and the correctness of
the opinions expressed therein, upon certificates or opinions furnished to
such Trustee and conforming to the requirements of this Indenture; but in
the case of any such certificates or opinions which by any provisions
hereof are specifically required to be furnished to such Trustee, such
Trustee shall be under a duty to examine the same to determine whether or
not they conform to the requirements of this Indenture.
(b) In case an Event of Default with respect to a series of Securities has
occurred and is continuing, the Trustee for the Securities of such series shall
exercise such of the rights and powers vested in it by this Indenture, and use
the same degree of care and skill in their exercise, as a prudent man would
exercise or use under the circumstances in the conduct of his own affairs.
(c) No provision of this Indenture shall be construed to relieve the
Trustee for Securities of any series from liability for its own grossly
negligent action, its own grossly negligent failure to act, or its own willful
misconduct, except that:
(1) this Subsection shall not be construed to limit the effect of
Subsection (a) of this Section;
(2) such Trustee shall not be liable for any error of judgment made in
good faith by a Responsible Officer, unless it shall be proved that the
Trustee was negligent in ascertaining the pertinent facts;
(3) such Trustee shall not be liable with respect to any action taken,
suffered or omitted to be taken by it in good faith in accordance with the
direction of the Holders of a majority in principal amount of the
Outstanding Securities of any particular series, determined as provided in
Section 512, relating to the time, method and place of conducting any
proceeding for any remedy available to such Trustee, or exercising any
trust or power conferred upon such Trustee, under this Indenture with
respect to the Securities of that series; and
(4) no provision of this Indenture shall require the Trustee for any
series of Securities to expend or risk its own funds or otherwise incur any
financial liability in the performance of any of its duties hereunder or in
the exercise of any of its rights or powers, if it shall have reasonable
grounds for believing that repayment of such funds or adequate indemnity
against such risk or liability is not reasonably assured to it.
(d) Whether or not therein expressly so provided, every provision of this
Indenture relating to the conduct or affecting the liability of or affording
protection to the Trustee for any series of Securities shall be subject to the
provisions of this Section.
Section 602. Notice of Defaults.
Within 90 days after the occurrence of any default hereunder with
respect to Securities of any particular series, the Trustee for the Securities
of such series shall give to Holders of Securities of that series, in the manner
set forth in Section 106, notice of such default known to such Trustee, unless
such default shall have been cured or waived; provided, however, that, except in
the case of a default in the payment of the principal of (or premium, if any) or
interest, if any, on any Security of that series, or in the deposit of any
sinking fund payment with respect to Securities of that series, such Trustee
shall be protected in withholding such notice if and so long as the board of
directors, the executive committee or a trust committee of directors and/or
Responsible Officers of such Trustee in good faith determines that the
withholding of such notice is in the interest of the Holders of Securities of
that series and related coupons; and provided, further, that in the case of any
default of the character specified in Section 501(3) with respect to Securities
of that series no such notice to Holders shall be given until at least 60 days
after the occurrence thereof. For the purpose of this Section, the term
"default" means any event which is, or after notice or lapse of time or both
would become, an Event of Default with respect to Securities of that series.
Section 603. Certain Rights of Trustee.
Except as otherwise provided in Section 601:
(a) the Trustee for any series of Security may rely and shall be protected
in acting or refraining from acting upon any resolution, certificate, statement,
instrument, opinion, report, notice, request, discretion, consent, order, bond,
debenture or other paper or document believed by it to be genuine and to have
been signed or presented by the proper party or parties;
(b) any request or direction of the Company mentioned herein shall be
sufficiently evidenced by a Company Request or Company Order and any resolution
of the Board of Directors of the Company may be sufficiently evidenced by a
Board Resolution;
(c) whenever in the administration of this Indenture such Trustee shall
deem it desirable that a matter be proved or established prior to taking,
suffering or omitting any action hereunder, such Trustee (unless other evidence
be herein specifically prescribed) may, in the absence of bad faith on its part,
rely upon an Officers' Certificate;
(d) such 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 by it hereunder
in good faith and in reliance thereon;
(e) such Trustee shall be under no obligation to exercise any of the rights
or powers vested in it by this Indenture at the request or direction of any of
the Holders of Securities of any series pursuant to this Indenture for which it
is acting as Trustee, unless such Holders shall have offered to such Trustee
reasonable security or indemnity against the costs, expenses and liabilities
which might be incurred by it in compliance with such request or direction;
(f) such 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, discretion, consent, order, bond, debenture or
other paper or document, but such Trustee, in its discretion, may make such
further inquiry or investigation into such facts or matters at it may see fit,
and, if such Trustee shall determine to make such further inquiry or
investigation, it shall be entitled to examine the books, records and premises
of the Company, personally or by agent or attorney; and
(g) such 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 such Trustee shall not be responsible for any misconduct or
negligence on the part of any agent or attorney appointed with due care by it
hereunder.
Section 604. Not Responsible for Recitals or Issuance of Securities.
The recitals contained herein and in the Securities, except the
Trustee's certificates of authentication thereof and in any coupons shall be
taken as the statements of the Company, as the case may be, and neither the
Trustee for any series of Securities, nor any Authenticating Agent assumes any
responsibility for their correctness. The Trustee for any series of Securities
makes no representations as to the validity or sufficiency of this Indenture or
of the Securities of any series or coupons. Neither the Trustee for any series
of Securities nor any Authenticating Agent shall be accountable for the use or
application by the Company of Securities or the proceeds thereof.
Section 605. May Hold Securities.
The Trustee for any series of Securities, any Authenticating Agent,
Paying Agent, Security Registrar or any other agent of the Company, or such
Trustee, in its individual or any other capacity, may become the owner or
pledgee of Securities and, subject to Sections 608 and 613, may otherwise deal
with the Company with the same rights it would have if it were not such Trustee,
Authenticating Agent, Paying Agent, Security Registrar or such other agent.
Section 606. Money Held in Trust.
Money held by the Trustee for any series of Securities in trust
hereunder need not be segregated from other funds except as provided in Section
115 and except to the extent required by law. The Trustee for any series of
Securities shall be under no liability for interest on any money received by it
hereunder except as otherwise agreed with the Company, as the case may be.
Section 607. Compensation and Reimbursement.
The Company agrees:
(1) to pay to the Trustee for any series of Securities from time
to time reasonable compensation in Dollars for all services rendered
by it hereunder (which compensation shall not be limited by any
provision of law in regard to the compensation of a trustee of an
express trust);
(2) except as otherwise expressly provided herein, to reimburse
the Trustee for any series of Securities in Dollars upon its request
for all reasonable expenses, disbursements and advances incurred or
made by such Trustee in accordance with any provision of this
Indenture (including the reasonable compensation and the expenses and
disbursements of its agents and counsel), except any such expense,
disbursement or advance as may be attributable to its gross negligence
or bad faith; and
(3) to indemnify such Trustee and its agents in Dollars for, and
to hold them harmless against, any loss, liability or expense incurred
without gross negligence or bad faith on their part, arising out of or
in connection with the acceptance or administration of this trust,
including the costs and expenses of defending themselves against any
claim or liability in connection with the exercise or performance of
any of their powers or duties hereunder.
As security for the performance of the obligations of the Company under
this Section, the Trustee for any series of Securities shall have a lien prior
to the Securities upon all property and funds held or collected by such Trustee
as such, except funds held in trust for the payment of principal of (and
premium, if any) or interest, if any, on particular Securities.
When the Trustee incurs expenses or renders services in connection with
an Event of Default specified in Section 501(5) or (6), the expenses and the
compensation for the services are intended to constitute expenses of
administration under any bankruptcy law.
The Company's obligations under this Section 607 and any lien arising
hereunder shall survive the resignation or removal of the Trustee, the discharge
of the Company's obligations pursuant to Article 4 of this Indenture and/or the
termination of this Indenture.
Section 608. Disqualification; Conflicting Interests.
The Trustee for the Securities shall be subject to the provisions of
Section 310(b) of the Trust Indenture Act during the period of time required
thereby. Nothing herein shall prevent the Trustee from filing with the
Commission the application referred to in the penultimate paragraph of Section
310(b) of the Trust Indenture Act. In determining whether the Trustee has a
conflicting interest as defined in Section 310(b) of the Trust Indenture Act
with respect to the Securities of any series, there shall be excluded Securities
of any particular series of Securities other than that series.
Section 609. Corporate Trustee Required; Different Trustees for Different
Series; Eligibility.
There shall at all times be a Trustee hereunder which shall be
(i) a corporation organized and doing business under the laws of
the United States of America, any state thereof, or the District of
Columbia, authorized under such laws to exercise corporate trust
powers, and subject to supervision or examination by Federal or State
authority, or
(ii) a corporation or other Person organized and doing business
under the laws of a foreign government that is permitted to act as
Trustee pursuant to a rule, regulation, or other order of the
Commission, authorized under such laws to exercise corporate trust
powers, and subject to supervision or examination by authority of such
foreign government or a political subdivision thereof substantially
equivalent to supervision or examination applicable to United States
institutional trustee, having a combined capital and surplus of at
least $50,000,000. If such corporation publishes reports of condition
at least annually, pursuant to law or to 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. Neither the Company nor any
Person directly or indirectly controlling, controlled by, or under the
common control of the Company shall serve as Trustee for the
Securities. If at any time the Trustee shall cease to be eligible in
accordance with the provisions of this Section, it shall resign
immediately in the manner and with the effect hereunder specified in
this Article.
A different Trustee may be appointed by the Company for each series of
Securities prior to the issuance of such Securities. If the initial Trustee for
any series of Securities is to be other than JPMorgan Chase Bank, the Company
and such Trustee shall, prior to the issuance of such Securities, execute and
deliver an indenture supplemental hereto, which shall provide for the
appointment of such Trustee as Trustee for the Securities of such series and
shall add to or change any of the provisions of this Indenture as shall be
necessary to 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 and 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.
Section 610. Resignation and Removal; Appointment of Successor.
(a) No resignation or removal of the Trustee for the Securities of any
series and no appointment of a successor Trustee pursuant to this Article shall
become effective until the acceptance of appointment by the successor Trustee in
accordance with the applicable requirements of Section 611.
(b) The Trustee for the Securities of any series may resign at any time
with respect to the Securities of such series by giving written notice thereof
to the Company. If the instrument of acceptance by a successor Trustee required
by Section 611 shall not have been delivered to the Trustee for the Securities
of such series within 30 days after the giving 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 the Securities of such
series.
(c) The Trustee for the Securities of any series may be removed at any time
with respect to the Securities of such series by Act of the Holders of a
majority in principal amount of the Outstanding Securities of such series,
delivered to such Trustee and to the Company.
(d) If at any time:
(1) the Trustee for the Securities of any series shall fail to comply
with Section 310(b) of the Trust Indenture Act pursuant to Section 608
hereof after written request therefor by the Company or by any Holder who
has been a bona fide Holder of a Security of such series for at least six
months, unless the Trustee's duty to resign is stayed in accordance with
the provisions of Section 310(b) of the Trust Indenture Act, or
(2) such Trustee shall cease to be eligible under Section 609 and
shall fail to resign after written request therefor by the Company or by
any such Holder, or
(3) such Trustee shall become incapable of acting or shall be adjudged
a bankrupt or insolvent or a receiver of such Trustee or of its property
shall be appointed or any public officer shall take charge or control of
such Trustee or of its property or affairs for the purpose of
rehabilitation, conservation or liquidation, then, in any such case, (i)
the Company by a Board Resolution may remove such Trustee or (ii) subject
to Section 514, any Holder who has been a bona fide Holder of a Security of
such series for at least six months may, on behalf of himself and all
others similarly situated, petition any court of competent jurisdiction for
the removal of such Trustee and the appointment of a successor Trustee.
(e) If the Trustee for the Securities of any series shall resign, be
removed or become incapable of acting, or if a vacancy shall occur in the office
of Trustee for the Securities of any series for any cause, the Company, by a
Board Resolution, shall promptly appoint a successor Trustee with respect to the
Securities of such series and shall comply with the applicable requirements of
Section 611. If, within one year after such resignation, removal or
incapability, or the occurrence of such vacancy, a successor Trustee with
respect to the Securities of such series shall be appointed by Act of the
Holders of a majority in principal amount of the Outstanding Securities of such
series delivered to the Company and the retiring Trustee, the successor Trustee
so appointed shall, forthwith upon its acceptance of such appointment in
accordance with the applicable requirements of Section 611, become the successor
Trustee for the Securities of such series and supersede the successor Trustee
appointed by the Company. If no successor Trustee for the Securities of such
series shall have been so appointed by the Company or the Holders and shall have
accepted appointment in the manner required by Section 611, and if such Trustee
is still incapable of acting, any Holder who has been a bona fide Holder of a
Security of such series for at least six months may, on behalf of himself and
all others similarly situated, petition any court of competent jurisdiction for
the appointment of a successor Trustee with respect to the Securities of such
series.
(f) The Company shall give notice of each resignation and each removal of
the Trustee with respect to the Securities of any series and each appointment of
a successor Trustee with respect to the Securities of any series in the manner
and to the extent provided in Section 106. Each notice shall include the name of
the successor Trustee with respect to the Securities of that series and the
address of its Corporate Trust Office.
Section 611. Acceptance of Appointment by Successor.
(a) Every such successor Trustee appointed hereunder with respect to the
Securities of any series 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)
if the retiring Trustee is not retiring with respect to all Securities, 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 and 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 upon the execution and delivery of such supplemental indenture
the resignation or removal of the retiring Trustee shall become effective to the
extent provided therein and 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 successor Trustee all 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
Subsections (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 for the Securities of any series shall be
qualified and eligible under this Article.
Section 612. Merger, Conversion, Consolidation or Succession to Business.
Any corporation into which the Trustee for the Securities of any series
may be merged or converted or with which it may be consolidated, or any
corporation resulting from any merger, conversion or consolidation to which such
Trustee shall be a party, or any corporation succeeding to all or substantially
all of the corporate trust business of such Trustee, shall be the successor of
such Trustee hereunder, provided such corporation shall be otherwise qualified
and eligible under this Article, without the execution or filing of any paper or
any further act on the part of any of the parties hereto. In case any Securities
shall have been authenticated, but not delivered, by the Trustee or the
Authenticating Agent for such series then in office, any successor by merger,
conversion or consolidation to such authenticating Trustee or Authenticating
Agent, as the case may be, may adopt such authentication and deliver the
Securities so authenticated with the same effect as if such successor Trustee or
successor Authenticating Agent had itself authenticated such Securities.
Section 613. Preferential Collection of Claims Against Company.
The Trustee is subject to Section 311(a) of the Trust Indenture Act,
excluding any creditor relationship listed 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 indicated.
Section 614. Authenticating Agents.
From time to time the Trustee for the Securities of any series may,
subject to its sole discretion, appoint one or more Authenticating Agents with
respect to the Securities of such series, which may include the Company or any
Affiliate of the Company, with power to act on the Trustee's behalf and subject
to its discretion in the authentication and delivery of Securities of such
series in connection with transfers and exchanges under Sections 304, 305 and
1107 as fully to all intents and purposes as though such Authenticating Agent
had been expressly authorized by those Sections of this Indenture to
authenticate and deliver Securities of such series. For all purposes of this
Indenture, the authentication and delivery of Securities of such series by an
Authenticating Agent for such Securities pursuant to this Section shall be
deemed to be authentication and delivery of such Securities "by the Trustee" for
the Securities of such series. Any such Authenticating Agent shall at all times
be a corporation organized and doing business under the laws of the United
States or of any State, authorized under such laws to exercise corporate trust
powers, having a combined capital and surplus of at least $50,000,000 and
subject to supervision or examination by Federal or State authority. If such
Authenticating Agent publishes reports of condition at least annually pursuant
to law or the requirements of such 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. If at any time an
Authenticating Agent for any series of Securities shall cease to be eligible in
accordance with the provisions of this Section, such Authenticating Agent shall
resign immediately in the manner and with the effect specified in this Section.
Any corporation into which any Authenticating Agent may be merged or
converted or with which it may be consolidated, or any corporation resulting
from any merger, consolidation or conversion to which any Authenticating Agent
shall be a party, or any corporation succeeding to the corporate trust business
of any Authenticating Agent, shall be the successor of such Authenticating Agent
hereunder, if such successor corporation is otherwise eligible under this
Section, without the execution or filing of any paper or any further act on the
part of the parties hereto or the Authenticating Agent or such successor
corporation.
Any Authenticating Agent for any series of Securities may resign at any
time by giving written notice of resignation to the Trustee for such series and
to the Company. The Trustee for any series of Securities may at any time
terminate the agency of any Authenticating Agent by giving written notice of
termination to such Authenticating Agent and to the Company in the manner set
forth in Section 105. Upon receiving such a notice of resignation or upon such a
termination, or in case at any time any Authenticating Agent for any series of
Securities shall cease to be eligible under this Section, the Trustee for such
series may appoint a successor Authenticating Agent, shall give written notice
of such appointment to the Company and shall give written notice of such
appointment to all Holders of Securities of such series in the manner set forth
in Section 106. Any successor Authenticating Agent, upon acceptance of its
appointment hereunder, shall become vested with all the rights, powers and
duties of its predecessor hereunder, with like effect as if originally named as
an Authenticating Agent. No successor Authenticating Agent shall be appointed
unless eligible under the provisions of this Section.
The Trustee for the Securities of each series agrees to pay to any
Authenticating Agent for such series from time to time reasonable compensation
for its services, and such Trustee shall be entitled to be reimbursed for such
payments, subject to Section 607.
If an appointment with respect to one or more series of Securities is
made pursuant to this Section, the Securities of such series may have endorsed
thereon, in addition to the Trustee's certification of authentication, an
alternate certificate of authentication in the following form:
"This is one of the Securities of the series designated therein
described in the within-mentioned Indenture.
JPMORGAN CHASE BANK, as Trustee
By By
------------------------------ ------------------------------------
As Authenticating Agent Authorized Officer"
ARTICLE 7
HOLDERS' LISTS AND REPORTS BY TRUSTEE AND THE COMPANY
-----------------------------------------------------
Section 701. Company to Furnish Trustee Names and Addresses of Holders.
With respect to each particular series of Securities, the Company will
furnish or cause to be furnished to the Trustee for the Securities of such
series,
(a) semiannually, not more than 15 days after each Regular Record Date
relating to that series (or, if there is no Regular Record Date relating to that
series, on June 30 and December 31), a list, in such form as such Trustee may
reasonably require, containing all the information in the possession or control
of the Company or any of its Paying Agents other than such Trustee as to the
names and addresses of the Holders of that series as of such dates,
(b) on semi-annual dates on each year to be determined pursuant to Section
301 if the Securities of such series do not bear interest, a list of similar
form and content, and
(c) at such other times as such 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,
excluding from any such list names and addresses received by such Trustee in its
capacity as Security Registrar for the Securities of such series, if so acting.
Section 702. Preservation of Information; Communications to Holders.
(a) The Trustee for each series of Securities shall preserve, in as current
a form as is reasonably practicable, the names and addresses of Holders of the
Securities of such series contained in the most recent lists furnished to such
Trustee as provided in Section 701 and the names and addresses of Holders of the
Securities of such series received by such Trustee in its capacity as Security
Registrar for such series, if so acting. The Trustee for each series of
Securities may destroy any list relating to such series of Securities furnished
to it as provided in Section 701 upon receipt of a new list relating to such
series so furnished.
(b) If three or more Holders of Securities of any particular series
(hereinafter referred to as "applicants") apply in writing to the Trustee for
the Securities of any such series, and furnish to such Trustee reasonable proof
that each such applicant has owned a Security of that series for a period of at
least six months preceding the date of such application, and such application
states that the applicants desire to communicate with other Holders of
Securities of that series with respect to their rights under this Indenture or
under the Securities of that series and is accompanied by a copy of the form of
proxy or other communication which such applicants propose to transmit, then
such Trustee shall, within five Business Days after the receipt of such
application, at its election, either
(i) afford such applicants access to the information preserved at
the time by such Trustee in accordance with Section 702(a), or
(ii) inform such applicants as to the approximate number of
Holders of Securities of that series whose names and addresses appear
in the information preserved at the time by such Trustee in accordance
with Section 702(a), and as to the approximate cost of mailing to such
Holders the form of proxy or other communication, if any, specified in
such application.
If any such Trustee shall elect not to afford such applicants access to
that information, such Trustee shall, upon the written request of such
applicants, mail to each Holder of Securities of that series whose name and
address appears in the information preserved at the time by such Trustee in
accordance with Section 702(a), a copy of the form of proxy or other
communication which is specified in such request, with reasonable promptness
after a tender to such Trustee of the material to be mailed and of payment, or
provision for the payment, of the reasonable expenses of mailing, unless within
five days after such tender, such Trustee shall mail to such applicants and file
with the Commission, together with a copy of the material to be mailed, a
written statement to the effect that, in the opinion of such Trustee, such
mailing would be contrary to the best interests of the Holders of Securities of
that series or would be in violation of applicable law. Such written statement
shall specify the basis of such opinion. If the Commission, after opportunity
for a hearing upon the objections specified in the written statement so filed,
shall enter an order refusing to sustain any of such objections or if, after the
entry of an order sustaining one or more of such objections, the Commission
shall find, after notice and opportunity for hearing, that all the objections so
sustained have been met and shall enter an order so declaring, such Trustee
shall mail copies of such material to all such Holders with reasonable
promptness after the entry of such order and the renewal of such tender;
otherwise such Trustee shall be relieved of any obligation or duty to such
applicants respecting their application.
(c) Every Holder of Securities of each series or coupons, by receiving and
holding the same, agrees with the Company and the Trustee for the Securities of
such series that neither the Company nor such Trustee, nor any agent of either
of them shall be held accountable by reason of the disclosure of any such
information as to the names and addresses of the Holders of the Securities of
such series in accordance with Section 702(b), regardless of the source from
which such information was derived, and that the Trustee shall not be held
accountable by reason of mailing any material pursuant to a request made under
Section 702(b).
Section 703. Reports by Trustee.
(a) Within 60 days after March 15 of each year, the Trustee for the
Securities of each series shall mail to each Holder of the Securities of such
series entitled to receive reports pursuant to Section 704(3), a brief reported
dated as of such date that complies with Section 313(a) of the Trust Indenture
Act. The Trustee for the Securities of each series shall also comply with
Sections 313(b), 313(c) and 313(d) of the Trust Indenture Act.
(b) At the time that the Trustee for the Securities of each series mails
such a report to the Holders of Securities of such series, each such Trustee
shall file a copy of that report with the Commission and with each stock
exchange on which the Securities of that series are listed. The Company shall
provide notice to the appropriate Trustee when the Securities of any series are
listed on any stock exchange.
Section 704. Reports by Company.
The Company will:
(1) file with the Trustee for the Securities of such series,
within 15 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) which the Company may be required to file with
the Commission pursuant to Section 13 or Section 15(d) of the
Securities Exchange Act of 1934; or, if the Company is not required to
file information, documents or reports pursuant to either of said
Sections, then it will file with such Trustee and the Commission, in
accordance with rules and regulations prescribed from time to time by
the Commission, such of the supplementary and periodic information,
documents and reports which may be required pursuant to Section 13 of
the Securities Exchange Act of 1934 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;
(2) file with the Trustee for the Securities of such series and
the Commission, in accordance with rules and regulations prescribed
from time to time by the Commission, such additional information,
documents, and reports with respect to compliance by the Company with
the conditions and covenants of this Indenture as may be required from
time to time by such rules and regulations; and
(3) transmit by mail to all Holders of Securities of each series,
as provided in Section 703(a), within 30 days after the filing thereof
with the Trustee for the Securities of such series, such summaries of
any information, documents and reports required to be filed by the
Company pursuant to paragraphs (1) and (2) of this Section as may be
required by rules and regulations prescribed from time to time by the
Commission.
ARTICLE 8
CONSOLIDATION, MERGER, CONVEYANCE OR TRANSFER
---------------------------------------------
Section 801. Company May Consolidate, Etc., Only on Certain Terms.
The Company shall not consolidate with or merge into any other
corporation or convey or transfer its properties and assets substantially as an
entirety to any Person unless:
(1) the corporation formed by such consolidation or into which
the Company is merged or the Person which acquires by conveyance or
transfer the properties and assets of the Company substantially as an
entirety shall be a corporation organized and existing under the laws
of the United States of America, any State thereof or the District of
Columbia, and shall expressly assume, by an indenture supplemental
hereto, executed and delivered to the Trustee for each series of
Securities, in form satisfactory to each such Trustee, the due and
punctual payment of the principal of (and premium, if any) and
interest, if any, (including all additional amounts, if any, payable
pursuant to Sections 516 or 1008) on all the Securities and any
related coupons and the performance of every covenant of this
Indenture on the part of the Company to be performed or observed;
(2) immediately after giving effect to such transaction, no Event
of Default with respect to any series of Securities, and no event
which, after notice or lapse of time, or both, would become an Event
of Default with respect to any series of Securities, shall have
happened and be continuing;
(3) the Company has delivered to the Trustee for each series of
Securities an Officers' Certificate and an Opinion of Counsel each
stating that such consolidation, merger, conveyance or transfer and
such supplemental indenture comply with this Article and that all
conditions precedent herein provided for relating to such transaction
have been complied with.
Section 802. Successor Corporation Substituted.
Upon any consolidation or merger, or any conveyance or transfer of the
properties and assets of the Company substantially as an entirety in accordance
with Section 801, the successor corporation formed by such consolidation or into
which the Company is merged or to which such conveyance or transfer is made
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 such successor
corporation had been named as the Company herein and thereafter the predecessor
corporation shall be relieved of all obligations and covenants under this
Indenture, the Securities and any related coupons and, in the event of any such
consolidation, merger, conveyance or transfer, the Company as the predecessor
corporation may thereupon or at any time thereafter be dissolved, wound up, or
liquidated.
ARTICLE 9
SUPPLEMENTAL INDENTURES
-----------------------
Section 901. Supplemental Indentures Without Consent of Holders.
Without the consent of any Holders of Securities or coupons, the
Company, when authorized by a Board Resolution, and the Trustee for the
Securities of any or all series, at any time and from time to time, may enter
into one or more indentures supplemental hereto, in form satisfactory to such
Trustee, for any of the following purposes:
(1) to evidence the succession of another corporation to the
Company, and the assumption by any such successor of the covenants of
the Company herein and in the Securities; or
(2) to add to the covenants of the Company, for the benefit of
the Holders of all or any particular series of Securities and any
related coupons (and, if such covenants are to be for the benefit of
fewer than all series of Securities, stating that such covenants are
being included solely for the benefit of such series), or to surrender
any right or power herein conferred upon the Company; or
(3) to add any additional Events of Default with respect to any
or all series of Securities (and, if any such Event of Default applies
to fewer than all series of Securities, stating each series to which
such Event of Default applies); or
(4) to add to or to change any of the provisions of this
Indenture to provide that Bearer Securities may be registrable as to
principal, to change or eliminate any restrictions on the payment of
principal of or any premium or interest on Bearer Securities, to
permit Bearer Securities to be issued in exchange for Registered
Securities, to permit Bearer Securities to be issued in exchange for
Bearer Securities of other authorized denominations, to provide for
the issuance of uncertificated Securities of any series in addition to
or in place of any certificated Securities and to make all appropriate
changes for such purposes; provided, however, that any such action
shall not adversely affect the interests of the Holders of Securities
of any series or any related coupons in any material respect; or
(5) to change or eliminate any of the provisions of this
Indenture, provided, however, that any such change or elimination
shall become effective only when there is no Security Outstanding of
any series created prior to the execution of such supplemental
indenture which is entitled to the benefit of such provision; or
(6) to evidence and provide for the acceptance of appointment
hereunder of a Trustee other than JPMorgan Chase Bank as Trustee for a
series of Securities 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 one Trustee,
pursuant to the requirements of Section 609; or
(7) 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 one Trustee,
pursuant to the requirements of Section 611(b); or
(8) to add to the conditions, limitations and restrictions on the
authorized amount, form, terms or purposes of issue, authentication
and delivery of Securities, as herein set forth, other conditions,
limitations and restrictions thereafter to be observed; or
(9) to supplement any of the provisions of this Indenture to such
extent as shall be necessary to permit or facilitate the defeasance
and discharge of any series of Securities pursuant to Section 401;
provided, however, that any such action shall not adversely affect the
interests of the Holders of Securities of such series and any related
coupons or any other series of Securities in any material respect; or
(10) to add to or change or eliminate any provisions of this
Indenture as shall be necessary or desirable in accordance with any
amendments to the Trust Indenture Act; or
(11) to issue and establish the form and terms of any series of
Securities; or
(12) to cure any ambiguity, to correct or supplement any
provision herein which may be inconsistent with any other provision
herein, to convey, transfer, assign, mortgage or pledge any property
to or with the Trustee for the Securities of any series or to
surrender any right or power herein conferred upon the Company, or to
make any other provisions with respect to matters or questions arising
under this Indenture, provided such action shall not adversely affect
the interests of the Holders of Securities of any particular series in
any material respect.
Section 902. Supplemental Indentures With Consent of Holders.
The Company, when authorized by a Board Resolution, and the Trustee for
the Securities of any or all series may enter into an indenture or indentures
supplemental hereto for the purpose of adding any provisions to or changing in
any manner or eliminating any of the provisions of this Indenture or of
modifying in any manner the rights of the Holders of such Securities and any
related coupons under this Indenture, but only with the consent of the Holders
of more than 50% in aggregate principal amount of the Outstanding Securities of
each series of Securities then Outstanding affected thereby, in each case by Act
of said Holders of Securities of each such series delivered to the Company and
the Trustee for Securities of each such series; provided, however, that no such
supplemental indenture shall, without the consent of the Holder of each
Outstanding Security affected thereby:
(1) change the Stated Maturity of the principal of, or any
installment of principal of or interest on, any Security, or reduce
the principal amount thereof or the rate of interest thereon, if any
(or, in the case of OID Securities, reduce the rate of accretion of
original issue discount), or any premium payable upon the redemption
thereof, or change any obligation of the Company to pay additional
amounts pursuant to Section 1008 (except as contemplated by Section
801(1) and permitted by Section 901(1)) or reduce the amount of the
principal of an OID Security that would be due and payable upon a
declaration of acceleration of the Maturity thereof, or provable in
bankruptcy, or, in the case of Indexed Securities, reduce the amount
payable in accordance with the terms of those Securities upon a
declaration of acceleration of Maturity thereof, or provable in
bankruptcy, pursuant to Section 502, or change the Place of Payment,
or the currency or currency unit in which any Security or the
principal or interest thereon is payable, or impair the right to
institute suit for the enforcement of any such payment on or after the
Stated Maturity thereof (or, in the case of redemption, on or after
the Redemption Date); or impair any right of Holders of Securities
hereunder to repay or purchase Securities at their option; or reduce
or alter the method of computation of any amount payable upon
redemption, repayment or purchase of any Securities by the Issuer (or
the time when such redemption, repayment or purchase may be made); or
adversely affect the right to convert or exchange any Security into
other securities of the Company or another Person as may be provided
pursuant to Section 301; or
(2) reduce the percentage in principal amount of the Outstanding
Securities of any particular series, the consent of whose Holders is
required for any such supplemental indenture, or the consent of whose
Holders is required for any waiver (of compliance with certain
provisions of this Indenture or certain defaults hereunder and their
consequences) provided for in this Indenture; or
(3) modify any of the provisions of this Section or Section 513
or 1007, except to increase any such percentage or to provide that
certain other provisions of this Indenture cannot be modified or
waived without the consent of the Holder of each Security affected
thereby; provided, however, that this clause shall not be deemed to
require the consent of any Holder of a Security or coupon with respect
to changes in the references to "the Trustee" and concomitant changes
in this Section and Section 1007, or the deletion of this proviso, in
accordance with the requirements of Sections 609, 611(b), 901(6) and
901(7); or
(4) modify the provisions of Article 14 in a manner adverse to
the Holders.
A supplemental indenture which changes or eliminates any covenant or other
provision of this Indenture which has expressly been included solely for the
benefit of one or more particular series of Securities, or which modifies the
rights of the Holders of Securities of such series with respect to such covenant
or other provision, shall be deemed not to affect the rights under this
Indenture of the Holders of Securities of any other series.
It shall not be necessary for any Act of Holders under this Section to
approve the particular form of any proposed supplemental indenture, but it shall
be sufficient if such Act shall approve the substance thereof.
Section 903. Execution of Supplemental Indentures.
In executing, or accepting the additional trusts created by, any
supplemental indenture permitted by this Article or the modifications thereby of
the trusts created by this Indenture, the Trustee for any series of Securities
shall be entitled to receive, and (subject to Section 601) shall be fully
protected in relying upon, an Opinion of Counsel stating that the execution of
such supplemental indenture is authorized or permitted by this Indenture. The
Trustee for any series of Securities may, but shall not be obligated to, enter
into any such supplemental indenture which affects such Trustee's own rights,
liabilities, duties or immunities under this Indenture or otherwise.
Section 904. Effect of Supplemental Indentures.
Upon the execution of any supplemental indenture under this Article,
this Indenture shall be modified in accordance therewith and such supplemental
indenture shall form a part of this Indenture for all purposes; and every Holder
of Securities theretofore or thereafter authenticated and delivered hereunder
and of any coupons appertaining thereto shall be bound thereby.
Section 905. Conformity With Trust Indenture Act.
Every supplemental indenture executed pursuant to this Article shall
conform to the requirements of the Trust Indenture Act as then in effect.
Section 906. Reference in Securities to Supplemental Indentures.
Securities of any particular series authenticated and delivered after
the execution of any supplemental indenture pursuant to this Article may, and
shall if required by the Trustee for the Securities of such series, bear a
notation in form approved by such Trustee as to any matter provided for in such
supplemental indenture. If the Company shall so determine, new Securities of any
series and any related coupons so modified as to conform, in the opinion of the
Trustee for the Securities of such series and the Board of Directors of the
Company, to any such supplemental indenture may be prepared and executed by the
Company and such Securities may be authenticated and delivered by such Trustee
in exchange for Outstanding Securities of such series and any related coupons.
ARTICLE 10
COVENANTS
---------
Section 1001. Payment of Principal (and Premium, if any) and Interest, if any.
The Company agrees, for the benefit of each particular series of
Securities, that it will duly and punctually pay in the currency or currency
unit in which the Securities of such series are payable (except as otherwise
specified pursuant to Section 301 for the Securities of such series and except
as provided in Sections 311(b) and 311(d)) the principal of (and premium, if
any) and interest, if any, on that series of Securities in accordance with the
terms of the Securities of such series, any coupons appertaining thereto and
this Indenture. Unless otherwise specified as contemplated by Section 301 with
respect to any series of Securities, any interest due on Bearer Securities on or
before Maturity shall be payable only upon presentation and surrender of the
several coupons for such interest installments as are evidenced thereby as they
severally mature. The interest, if any, due in respect of any temporary or
permanent Global Security, together with any additional amounts payable in
respect thereof, as provided in the terms and conditions of such Security, shall
be payable, subject to the conditions set forth in Section 1012, only upon
presentation of such Security to the Trustee thereof for notation thereon of the
payment of such interest.
Section 1002. Maintenance of Office or Agency.
If Securities of a series are issuable only as Registered Securities
the Company will maintain in each Place of Payment for that series an office or
agency where Securities of that series may be presented or surrendered for
payment, an office or agency where Securities of that series may be surrendered
for registration of transfer or exchange and where notices and demands to or
upon the Company with respect to the Securities of that series and this
Indenture may be served. If Securities of a series are issuable as Bearer
Securities, the Company will maintain (A) an office or agency (which may be the
same office or agency) in a Place of Payment for that series in the United
States where any Registered Securities of that series may be presented or
surrendered for payment, where any Registered Securities of that series may be
surrendered for registration of transfer, where Securities of that series may be
surrendered for exchange, where notices and demands to or upon the Company in
respect of the Securities of that series and this Indenture may be served and
where Bearer Securities of that series and related coupons may be presented or
surrendered for payment in the circumstances described in the following
paragraph (and not otherwise), (B) subject to any laws or regulations applicable
thereto, in a Place of Payment for that series which is located outside the
United States, an office or agency where Securities of that series and related
coupons may be presented and surrendered for payment; provided, however, that if
the Securities of that series are listed on the Stock Exchange or any other
stock exchange located outside the United States and such stock exchange shall
so require, the Company will maintain a Paying Agent for the Securities of that
series in Luxembourg or any other required city located outside the United
States, as the case may be, so long as the Securities of that series are listed
on such exchange, and (C) subject to any laws or regulations applicable thereto,
in a Place of Payment for that series located outside the United States an
office or agency where any Registered Securities of that series may be
surrendered for registration of transfer, where Securities of that series may be
surrendered for exchange and where notices and demands to or upon the Company in
respect of the Securities of that series and this Indenture may be served. The
Company will give prompt written notice to the Trustee for the Securities of
that series of the location, and any change in the location, of any such office
or agency. If at any time the Company shall fail to maintain any such required
office or agency in respect of any series of Securities or shall fail to furnish
the Trustee for the Securities of that series with the address thereof, such
presentations (to the extent permitted by law), and surrenders of Securities of
that series may be made and notices and demands may be made or served at the
Corporate Trust Office of such Trustee, except that Bearer Securities of that
series and the related coupons may be presented and surrendered for payment at
the offices specified in the Security, and the Company hereby appoints the same
as its agent to receive such presentations, surrenders, notices and demands.
No payment of principal (and premium, if any) or interest, if any, on
Bearer Securities shall be made at any office or agency of the Company in the
United States or by check mailed to any address in the United States or by
transfer to an account maintained with a bank located in the United States.
Payments will not be made in respect of Bearer Securities or coupons
appertaining thereto pursuant to presentation to the Company, or its designated
Paying Agents within the United States. Notwithstanding the foregoing, payment
of principal of (and premium, if any) and interest, if any, on any Bearer
Security denominated and payable in Dollars will be made at the office of the
Company's Paying Agent in the United States, if, and only if, payment in Dollars
of the full amount of such principal, premium or interest, as the case may be,
at all offices or agencies outside the United States maintained for that purpose
by the Company in accordance with this Indenture is illegal or effectively
precluded by exchange controls or other similar restrictions and the Company has
delivered to the Trustee an Opinion of Counsel to that effect.
The Company may also from time to time designate one or more other
offices or agencies (in or outside the Place of Payment) where the Securities of
one or more series may be presented or surrendered for any or all of the
purposes specified above in this Section and may from time to time rescind such
designations; provided, however, that no such designation or rescission shall in
any manner relieve the Company of its obligation to maintain an office or agency
in each Place of Payment for such purpose. The Company will give prompt written
notice to the Trustee for the Securities of each series so affected of any such
designation or rescission and of any change in the location of any such office
or agency.
If and so long as the Securities of any series (i) are denominated in a
currency other than Dollars or (ii) may be payable in a currency other than
Dollars, or so long as it is required under any other provision of the
Indenture, then the Company will maintain with respect to each such series of
Securities, or as so required, a Currency Determination Agent.
Section 1003. Money for Securities Payments To Be Held in Trust.
If the Company shall at any time act as its own Paying Agent with
respect to any particular series of Securities and any related coupons, it will,
on or before each due date of the principal of (and premium, if any) or
interest, if any, on any of the Securities of that series, segregate and hold in
trust for the benefit of the Persons entitled thereto a sum in the currency or
currency unit in which the Securities of such series are payable (except as
otherwise specified pursuant to Section 301 for the Securities of such series
and except as provided in Sections 311(b) and 311(d)) sufficient to pay the
principal (and premium, if any) and interest, if any, so becoming due until such
sums shall be paid to such Persons or otherwise disposed of as herein provided,
and will promptly notify the Trustee for the Securities of such series of its
action or failure so to act.
Whenever the Company shall have one or more Paying Agents for any
particular series of Securities and any related coupons, it will, prior to each
due date of the principal of (and premium, if any) or interest, if any, on any
such Securities, deposit with a Paying Agent for the Securities of such series a
sum (in the currency or currency unit described in the preceding paragraph)
sufficient to pay the principal (and premium, if any) and interest, if any, so
becoming due, such sum to be held in trust for the benefit of the Persons
entitled thereto, and (unless such Paying Agent is the Trustee for the
Securities of such series) the Company will promptly notify such Trustee of its
action or failure so to act.
The Company will cause each Paying Agent for any particular series of
Securities other than the Trustee for the Securities of such series to execute
and deliver to such Trustee an instrument in which such Paying Agent shall agree
with such Trustee, subject to the provisions of this Section, that such Paying
Agent will:
(1) hold all sums held by it for the payment of the principal of
(and premium, if any) or interest, if any, on Securities of that
series in trust for the benefit of the Persons entitled thereto until
such sums shall be paid to such Persons or otherwise disposed of as
herein provided;
(2) give such Trustee notice of any default by the Company (or
any other obligor upon the Securities) in the making of any payment of
principal (or premium, if any) and interest, if any, on Securities of
that series; and
(3) at any time during the continuation of any such default, upon
the written request of such Trustee, forthwith pay to such Trustee all
sums so held in trust by such Paying Agent.
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
by Company Order direct any Paying Agent to pay, to the Trustee for the
Securities of any series all sums held in trust by the Company or such Paying
Agent, such sums to be held by such Trustee upon the same trusts as those upon
which such sums were held by the Company or such Paying Agent; and, upon such
payment by any Paying Agent to such Trustee, such Paying Agent shall be released
from all further liability with respect to such money.
Section 1004. Payment of Taxes and Other Claims.
The Company will pay or discharge or cause to be paid or discharged,
before the same shall become delinquent, (1) all taxes, assessments and
governmental charges levied or imposed upon it or upon its income, profits or
property, and (2) all lawful claims for labor, materials and supplies which, if
unpaid, might by law become a lien upon its property; provided, however, that
the Company shall not be required to pay or discharge or cause to be paid or
discharged any such tax, assessment, charge or claim whose amount, applicability
or validity is being contested in good faith by appropriate proceedings.
Section 1005. Statements as to Compliance.
The Company will deliver to the Trustee for each series of Securities,
within 120 days after the end of each fiscal year, a written statement signed by
the principal executive officer, principal financial officer or principal
accounting officer of the Company stating that:
(1) a review of the activities of the Company during such year
and of performance under this Indenture has been made under his
supervision; and
(2) to the best of his knowledge, based on such review, the
Company is in compliance with all conditions and covenants under this
Indenture.
For purposes of this Section, such compliance shall be determined
without regard to any period of grace or requirement of notice provided under
this Indenture.
Section 1006. Corporate Existence.
Subject to Article 8, the Company will each do or cause to be done all
things necessary to preserve and keep in full force and effect its corporate
existence, rights (charter and statutory) and franchises; provided, however,
that the Company shall not be required to preserve any right or franchise if the
Board of Directors of the Company shall determine that the preservation thereof
is no longer desirable in the conduct of the business of the Company and that
the loss thereof is not disadvantageous in any material respect to the Holders.
Section 1007. Waiver of Certain Covenants.
The Company may omit in any particular instance to comply with any
covenant or condition set forth in Sections 1004 to 1006, inclusive, or
established pursuant to Sections 301(26), 901(2) or 901(11) if before or after
the time for such compliance the Holders of more than 50% in principal amount of
the Outstanding Securities of each series of Securities affected by the omission
shall, in each case by Act of such Holders, either waive such compliance in such
instance or generally waive compliance with such covenant or condition, but no
such waiver shall extend to or affect such covenant or condition except to the
extent so expressly waived, and, until such waiver shall become effective, the
obligations of the Company and the duties of the Trustee for the Securities of
each series with respect to any such covenant or condition shall remain in full
force and effect.
Section 1008. Payment of Additional Amounts.
If specified pursuant to Section 301, the provisions of this Section
1008 shall be applicable to Securities of any series.
The Company will, subject to the exceptions and limitations set forth
below, pay to the Holder of any Security or coupon who is a United States Alien
such additional amounts as may be necessary so that every net payment on such
Security or coupon, after deduction or withholding by the Company or any of its
Paying Agents for or on account of any present or future tax, assessment or
other governmental charge imposed upon or as a result of such payment by the
United States (or any political subdivision or taxing authority thereof or
therein), will not be less than the amount provided in such Security or in such
coupon to be then due and payable. However, the Company will not be required to
make any payment of additional amounts for or on account of:
(a) any tax, assessment or other governmental charge that would not have
been so imposed but for (i) the existence of any present or former connection
between such Holder (or between a fiduciary, settler or beneficiary of, or a
person holding a power over, such Holder, if such Holder is an estate or trust,
or a member or shareholder of such Holder, if such Holder is a partnership or
corporation) and the United States, including, without limitation, such Holder
(or such fiduciary, settler, beneficiary, person holding a power, member or
shareholder) being or having been a citizen, resident or treated as a resident
thereof or being or having been engaged in trade or business or present therein
or having or having had a permanent establishment therein, or (ii) such Holder's
present or former status as a personal holding company, foreign personal holding
company, controlled foreign corporation or passive foreign investment company
with respect to the United States or as a corporation that accumulates earnings
to avoid United States federal income tax;
(b) any tax, assessment or other governmental charge which would not have
been so imposed but for the presentation by the Holder of such Security or
coupon for payment on a date more than 10 days after the date on which such
payment became due and payable or the date on which payment thereof is duly
provided for, whichever occurs later;
(c) any estate, inheritance, gift, sales, transfer, personal property tax
or any similar tax, assessment or other governmental charge;
(d) any tax, assessment or other governmental charge required to be
withheld by any Paying Agent from any payment in respect of any Security or
coupon, if such payment can be made without such withholding by at least one
other Paying Agent;
(e) any tax, assessment or other governmental charge which is payable
otherwise than by withholding from payments in respect of such Security or
coupon;
(f) any tax, assessment or other governmental charge imposed on a Holder of
a Security or coupon that actually or constructively owns 10 percent or more of
the total combined voting power of all classes of stock of the Company entitled
to vote within the meaning of Section 871(h)(3) of the Code or that is a
controlled foreign corporation related to the Company through stock ownership;
(g) any tax, assessment or other governmental charge imposed as a result of
the failure to comply with applicable certification, information, documentation
or other reporting requirements concerning the nationality, residence, identity
or connection with the United States of the Holder or beneficial owner of a
Security or coupon, if such compliance is required by statute or by regulation
of the United States, as a precondition to relief or exemption from such tax,
assessment or other governmental charge;
(h) any tax, assessment or other governmental charge imposed with respect
to payments on any Registered Security by reason of the failure of the Holder to
fulfill the statement requirement of Sections 871(h) or 881(c) of the Code; or
(i) any combination of items (a), (b), (c), (d), (e), (f), (g) and (h);
nor will additional amounts be paid with respect to any payment on any such
Security or coupon to a Holder who is a fiduciary or partnership or other than
the sole beneficial owner of such payment to the extent such payment would be
required by the laws of the United States (or any political subdivision thereof)
to be included in the income for federal income tax purposes of a beneficiary or
settler with respect to such fiduciary or a member of such partnership or a
beneficial owner who would not have been entitled to payment of the additional
amounts had beneficiary, settler, member or beneficial owner been the Holder of
such Security or coupon.
The term "United States Alien" means any corporation, partnership,
individual or fiduciary that is, as to the United States, a foreign corporation,
a nonresident alien individual, a nonresident fiduciary of a foreign estate or
trust, or a foreign partnership one or more of the members of which is, as to
the United States, a foreign corporation, a nonresident alien individual or a
nonresident fiduciary of a foreign estate or trust.
Whenever in this Indenture there is mentioned, in any context, the
payment of the principal of (and premium, if any) and interest, if any, on any
Security or payment with respect to any coupon of any series, such mention shall
be deemed to include mention of the payment of additional amounts provided for
in the terms of such Securities and this Section to the extent that, in such
context, additional amounts are, were or would be payable in respect thereof
pursuant to the provisions of this Section and express mention of the payment of
additional amounts (if applicable) in any provisions hereof shall not be
construed as excluding additional amounts in those provisions hereof where such
express mention is not made.
If the Securities of a series provide for the payment of additional
amounts as contemplated by Section 301(20), at least 10 days prior to the first
Interest Payment Date with respect to that series of Securities (or if the
Securities of that series will not bear interest prior to maturity, the first
day on which a payment of principal and any premium is made), and at least 10
days prior to each date of payment of principal (and premium, if any) and
interest, if any, if there has been any change with respect to the matters set
forth in the below mentioned Officers' Certificate, the Company will furnish the
Trustee for that series of Securities and the Company's principal Paying Agent
or Paying Agents, if other than such Trustee, with an Officers' Certificate
instructing such Trustee and such Paying Agent or Paying Agents whether such
payment of principal of (and premium, if any) and interest, if any, on the
Securities of that series shall be made to Holders of Securities of that series
or any related coupons who are United States Aliens without withholding for or
on account of any tax, assessment or other governmental charge referred to above
or described in the Securities of that series. If any such withholding shall be
required, then such Officers' Certificate shall specify by country the amount,
if any, required to be withheld on such payments to such Holders of Securities
or coupons and the Company will pay to the Trustee for such series of Securities
or such Paying Agent such additional amounts as may be required pursuant to the
terms applicable to such series. The Company covenants to indemnify the Trustee
for such series of Securities and any Paying Agent for, and to hold them
harmless against, any loss, liability or expense reasonably incurred without
gross negligence or bad faith on their part arising out of or in connection with
actions taken or omitted by any of them in reliance on any Officers' Certificate
furnished pursuant to this Section 1008.
ARTICLE 11
REDEMPTION OF SECURITIES
------------------------
Section 1101. Applicability of This Article.
Redemption of Securities of any series (whether by operation of a
sinking fund or otherwise) as permitted or required by any form of Security
issued pursuant to this Indenture shall be made in accordance with such form of
Security and this Article; provided, however, that if any provision of any such
form of Security shall conflict with any provision of this Article, the
provision of such form of Security shall govern.
Section 1102. Election to Redeem; Notice to Trustee.
The election of the Company to redeem any Securities of any series
shall be evidenced by or pursuant to a Board Resolution. In case of any
redemption at the election of the Company of less than all of the Securities of
any particular series, the Company shall, at least 60 days prior to the
Redemption Date fixed by the Company (unless a shorter notice shall be
satisfactory to the Trustee for the Securities of such series) notify such
Trustee by Company Request of such Redemption Date and of the principal amount
of Securities of that series to be redeemed and shall deliver to such Trustee
such documentation and records as shall enable such Trustee to select the
Securities to be redeemed pursuant to Section 1103. In the case of any
redemption of Securities of any series 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 for
Securities of such series with an Officers' Certificate evidencing compliance
with such restriction.
Section 1103. Selection by Trustee of Securities to Be Redeemed.
If less than all the Securities are to be redeemed, the Company may
select the series to be redeemed, and if less than all the Securities of any
series are to be redeemed, the particular Securities of that series to be
redeemed shall be selected not more than 60 days prior to the Redemption Date by
the Trustee for the Securities of such series, from the Outstanding Securities
of that series not previously called for redemption, by such method as such
Trustee shall deem fair and appropriate and which may provide for the selection
for redemption of portions (equal to the minimum authorized denomination for
Securities of that series, or any integral multiple thereof) of the principal
amount of Securities of that series of a denomination larger than the minimum
authorized denomination for Securities of that series pursuant to Section 302 in
the currency or currency unit in which the Securities of such series are
denominated.
The Trustee for the Securities of any series to be redeemed shall
promptly notify the Company in writing of the Securities of such series selected
for redemption and, in the case of any Securities selected for partial
redemption, the principal amount thereof to be redeemed.
For all purposes of this Indenture, unless the context otherwise
requires, all provisions relating to the redemption of Securities shall relate,
in the case of any Security redeemed or to be redeemed only in part, to the
portion of the principal amount of such Securities which has been or is to be
redeemed.
Section 1104. Notice of Redemption.
Notice of redemption shall be given in the manner provided in Section
106 not later than the thirtieth day and not earlier than the sixtieth day prior
to the Redemption Date, to each Holder of Securities to be redeemed.
All notices of redemption shall state:
(1) the Redemption Date,
(2) the Redemption Price,
(3) if less than all Outstanding Securities of a particular
series are to be redeemed, the identification (and, in the case of
partial redemption, the respective principal amounts) of the
particular Securities to be redeemed, including the CUSIP number of
such Securities,
(4) that on the Redemption Date the Redemption Price will become
due and payable upon each such Security or portion thereof, and that
interest thereon, if any (or in the case of OID Securities, original
issue discount), shall cease to accrue on and after said date,
(5) the place or places where such Securities, together in the
case of Bearer Securities with all coupons appertaining thereto, if
any, maturing after the Redemption Date are to be surrendered for
payment of the Redemption Price,
(6) that the redemption is for a sinking fund, if such is the
case,
(7) that, unless otherwise specified in such notice, Bearer
Securities of any series, if any, surrendered for redemption must be
accompanied by all coupons maturing subsequent to the date fixed for
redemption or the amount of any such missing coupon or coupons will be
deducted from the Redemption Price or security or indemnity
satisfactory to the Company, the Trustee for such series and any
Paying Agent is furnished, and
(8) if Bearer Securities of any series are to be redeemed and any
Registered Securities of such series are not to be redeemed, and if
such Bearer Securities may be exchanged for Registered Securities not
subject to redemption on this Redemption Date pursuant to Section 305
or otherwise, the last date, as determined by the Company, on which
such exchanges may be made.
Notice of redemption of Securities to be redeemed at the election of
the Company shall be given by the Company or, at the Company's request, by the
Trustee for such Securities in the name and at the expense of the Company.
Section 1105. Deposit of Redemption Price.
Prior to the opening of business on any Redemption Date, the Company
shall deposit with the Trustee for the Securities to be redeemed or with a
Paying Agent for such Securities (or, if the Company is acting as its own Paying
Agent for such Securities, segregate and hold in trust as provided in Section
1003) an amount of money in the currency or currency unit in which the
Securities of such series are payable (except as otherwise specified pursuant to
Section 301 for the Securities of such Series and except as provided in Sections
311(b) and 311(d)) sufficient to pay the principal amount of (and premium, if
any, thereon), and (except if the Redemption Date shall be an Interest Payment
Date) any accrued interest on, all the Securities which are to be redeemed on
that date.
Section 1106. Securities Payable on Redemption Date.
Notice of redemption having been given as aforesaid, the Securities so
to be redeemed shall, on the Redemption Date, become due and payable at the
Redemption Price therein specified in the currency or currency unit in which the
Securities of such series are payable (except as otherwise provided pursuant to
Section 301 for the Securities of such series and except as provided in Sections
311(b) and 311(d)) and from and after such date (unless the Company shall
default in the payment of the Redemption Price) such Securities shall cease to
bear interest and the coupons for such interest appertaining to any Bearer
Securities so to be redeemed, except to the extent provided below, shall be
void. Upon surrender of such Security for redemption in accordance with said
notice together with all coupons, if any, appertaining thereto maturing after
the Redemption Date, such Security or specified portions thereof shall be paid
by the Company at the Redemption Price; provided, however, that installments of
interest on Bearer Securities whose Stated Maturity is on or prior to the
Redemption Date shall be payable only at an office or agency located outside the
United States (except as otherwise provided in Section 1002) and, unless
otherwise specified as contemplated by Section 301, only upon presentation and
surrender of coupons for such interest, and provided, further, that unless
otherwise specified as contemplated by Section 301, installments of interest on
Registered Securities whose Stated Maturity is on or prior to the Redemption
Date shall be payable to the Holders of such Securities, or one or more
Predecessor Securities, registered as such at the close of business on the
relevant Record Dates according to their terms and the provisions of Section
307.
If any Bearer Security surrendered for redemption shall not be
accompanied by all coupons appertaining thereto maturing after the Redemption
Date, such Security may be paid after deducting from the Redemption Price an
amount equal to the face amount of all such missing coupons or the surrender of
such missing coupon or coupons may be waived by the Company if there is
furnished to the Company, the Trustee for such Security and any Paying Agent
such security or indemnity as they may require to save the Company, such Trustee
and any Paying Agent harmless. If thereafter the Holder of such Security shall
surrender to such Trustee or any Paying Agent any such missing coupon in respect
of which a deduction shall have been made from the Redemption Price, such Holder
shall be entitled to receive the amount so deducted; provided, however, that
interest represented by coupons shall be payable only at an office or agency
located outside the United States (except as otherwise provided in Section 1002)
and, unless otherwise specified as contemplated by Section 301, only upon
presentation and surrender of those coupons.
If any Security called for redemption shall not be so paid upon
surrender thereof for redemption, the principal thereof (and premium, if any,
thereon) shall, until paid, bear interest from the Redemption Date at a rate per
annum equal to the rate borne by the Security (or, in the case of (i) OID
Securities, the Security's Yield to Maturity or (ii) Indexed Securities, the
rate determined in accordance with the specified terms of those Securities).
Section 1107. Securities Redeemed in Part.
Any Registered Security which is to be redeemed only in part shall be
surrendered at the Place of Payment (with, if the Company or the Trustee for
such Security so requires, due endorsement by, or a written instrument of
transfer in form satisfactory to the Company, and the Security Registrar for
such Security duly executed by, the Holder thereof or his attorney duly
authorized in writing), and the Company shall execute and such Trustee shall
authenticate and deliver to the Holder of such Security without service charge,
a new Registered Security or Securities, of any authorized denomination as
requested by such Holder, of the same series and having the same terms and
provisions and in an aggregate principal amount equal to and in exchange for the
unredeemed portion of the principal of the Registered Security so surrendered.
Section 1108. Tax Redemption; Special Tax Redemption.
(a) Unless otherwise specified pursuant to Section 301, Securities of any
series may be redeemed at the option of the Company in whole, but not in part,
on not more than 60 days' and not less than 30 days' notice, on any Redemption
Date at the Redemption Price specified pursuant to Section 301, if the Company
determines that (A) as a result of any change in or amendment to the laws (or
any regulations or rulings promulgated thereunder) of the United States or of
any political subdivision or taxing authority thereof or therein affecting
taxation, or any change in official position regarding application or
interpretation of such laws, regulations or rulings (including a holding by a
court of competent jurisdiction in the United States), which change or amendment
is announced or becomes effective on or after a date specified in Section 301
with respect to any Security of such series, the Company has or will become
obligated to pay additional amounts pursuant to Section 1011 with respect to any
Security of such series or (B) on or after a date specified in Section 301 with
respect to any Security of such series, any action has been taken by any taxing
authority of, or any decision has been rendered by a court of competent
jurisdiction in, the United States or any political subdivision or taxing
authority thereof or therein, including any of those actions specified in (A)
above, whether or not such action was taken or decision was rendered with
respect to the Company, or any change, amendment, application or interpretation
shall be officially proposed, which, in any such case, in the Opinion of Counsel
to the Company will result in a material probability that the Company will
become obligated to pay additional amounts with respect to any Security of such
series, and (C) in any such case specified in (A) or (B) above the Company, in
its business judgment, determines that such obligation cannot be avoided by the
use of reasonable measures available to the Company.
(b) Unless otherwise specified pursuant to Section 301, if the Company
shall determine that any payment made outside the United States by the Company
or any of their Paying Agents of principal or interest due in respect of any
Bearer Security (an "Affected Security") of such series or any coupon
appertaining thereto would, under any present or future laws or regulations of
the United States, be subject to any certification, information or other
reporting requirement of any kind, the effect of which requirement is the
disclosure to the Company, any Paying Agent or any governmental authority of the
nationality, residence or identity (as distinguished from, for example, status
as a United States Alien) of a beneficial owner of such Affected Security of
such series or coupon that is a United States Alien (other than such a
requirement that (i) would not be applicable to a payment made by the Company,
or any one of their Paying Agents (A) directly to the beneficial owner or (B) to
a custodian, nominee or other agent of the beneficial owner, (ii) can be
satisfied by such custodian, nominee or other agent certifying to the effect
that such beneficial owner is a United States Alien; provided that, in each case
referred to in clauses (i)(B) or (ii), payment by such custodian, nominee or
other agent to such beneficial owner is not otherwise subject to any such
requirement (other than a requirement which is imposed on a custodian, nominee
or other agent described in item (iv) of this sentence), (iii) would not be
applicable to a payment made by at least one other Paying Agent of the Company
or (iv) is applicable to a payment to a custodian, nominee or other agent of the
beneficial owner of such Security who is a United States person (as hereinafter
defined), a controlled foreign corporation for United States tax purposes, a
foreign person 50 percent or more of the gross income of which for the
three-year period ending with the close of its taxable year preceding the year
of payment is effectively connected with a United States trade or business, or
is otherwise related to the United States), the Company shall elect by notice to
the Trustee for such series of Securities either (x) to redeem the Affected
Securities of such series, as a whole, at a redemption price equal to the
principal amount thereof, together with interest accrued to the date fixed for
redemption, or (y) if the conditions of the next succeeding paragraph are
satisfied, to pay the additional amounts specified in such paragraph. The
Company shall make such determination and election as soon as practicable and
give prompt notice thereof (the "Determination Notice") in the manner described
in Section 106 stating the effective date of such certification, information or
reporting requirement, whether the Company has elected to redeem the Affected
Securities of such series or to pay the additional amounts specified in the next
succeeding paragraph, and (if applicable) the last date by which the redemption
of the Affected Securities of such series must take place, as provided in the
next succeeding sentence. If the Company elects to redeem the Affected
Securities of such series, such redemption shall take place on such date, not
later than one year after the giving of the Determination Notice, as the Company
shall specify by notice to such Trustee given not less than 45 nor more than 75
days before the Redemption Date. Notice of such redemption of the Affected
Securities of such series shall be given to the Holders thereof not less than 30
days nor more than 60 days prior to the Redemption Date. Notwithstanding the
foregoing, the Company shall not so redeem the Affected Securities of such
series if the Company shall subsequently determine by notice to the Trustee, not
less than 30 days prior to the Redemption Date, that subsequent payments on the
Affected Securities of such series would not be subject to any such
certification, information or other reporting requirement, in which case the
Company shall give prompt notice of such subsequent determination in the manner
specified in Section 106 and any earlier redemption notice shall be revoked and
be of no further effect. The right of the Holders of Affected Securities called
for redemption to exchange such Affected Securities for Registered Securities
(which Registered Securities will remain Outstanding following such redemption)
will terminate on the fifteenth day prior to the Redemption Date, and no further
exchanges of Affected Securities for Registered Securities shall be permitted
unless the Company shall have made the subsequent determination and given the
notice referred to in the preceding sentence. As used hereinabove, "United
States person" means any citizen or resident of the United States, any
corporation, partnership or other entity created or organized in or under the
laws of the United States and any estate or trust the income of which is subject
to United States federal income taxation regardless of its source.
If and so long as the certification, information or other reporting
requirement referred to in the preceding paragraph would be fully satisfied by
payment of a withholding tax, backup withholding tax or similar charge, the
Company may elect by notice to the Trustee to pay such additional amounts as may
be necessary so that every net payment made outside the United States following
the effective date of such requirement by the Company or any of their Paying
Agents of principal (or premium, if any) or interest, if any, due in respect of
any Affected Security of such series or any coupon appertaining thereto to a
Holder who certifies that the beneficial owner is a United States Alien (but
without any requirement that the nationality, residence or identity of such
beneficial owner be disclosed to the Company, any Paying Agent or any
governmental authority), after deduction or withholding for or on account of
such withholding tax, backup withholding tax or similar charge (other than a
withholding tax, backup withholding tax or similar charge that (i) is the result
of a certification, information or other reporting requirement described in the
third parenthetical clause of the first sentence of the preceding paragraph or
(ii) is imposed as a result of presentation of any such Affected Security or
such coupon for payment more than 10 days after the date on which such payment
becomes due and payable or on which payment thereof was duly provided for,
whichever occurs later), will not be less than the amount provided in such
Affected Security or such coupon to be then due and payable. In the event the
Company elects to pay such additional amounts, (the Company's election to
exercise such right to be evidenced by prompt notice to the Trustee for the
Securities of the appropriate series), the Company will have the right, at its
sole option, at any time, to redeem the Affected Securities of such series as a
whole, but not in part, at the Redemption Price, subject to the provisions of
the last four sentences of the immediately preceding paragraph. If the Company
has made the determination described in the preceding paragraph with respect to
certification, information or other reporting requirements applicable only to
interest and subsequently makes a determination in the manner and of the nature
referred to in such preceding paragraph with respect to such requirements
applicable to principal, the Company will redeem the Affected Securities of such
series in the manner and on the terms described in the preceding paragraph
unless the Company elects to have the provisions of this paragraph apply rather
than the provisions of the immediately preceding paragraph. If in such
circumstances the Affected Securities of such series are to be redeemed, the
Company shall have no obligation to pay additional amounts pursuant to this
paragraph with respect to principal (or premium, if any) or interest accrued and
unpaid after the date of the notice of such determination indicating such
redemption, but will be obligated to pay such additional amounts with respect to
interest accrued and unpaid to the date of such determination. If the Company
elects to pay additional amounts pursuant to this paragraph and the condition
specified in the first sentence of this paragraph should no longer be satisfied,
then the Company shall promptly redeem the Affected Securities of such series in
whole, but not in part, at the Redemption Price subject to the provisions of the
last four sentences of the immediately preceding paragraph. If the Company
elects to, or is required to, redeem the Affected Securities of such series
pursuant to this paragraph, it shall publish in the manner and to the extent
provided in Section 106 prompt notice thereof. If the Affected Securities of
such series are to be redeemed pursuant to this paragraph, the redemption shall
take place on such date, not later than one year after publication of the notice
of redemption, as the Company shall specify by notice to the Trustee for such
series of Securities at least 60 days prior to the Redemption Date. Any
redemption payments made by the Company pursuant to this paragraph shall be
subject to the continuing obligation of the Company to pay additional amounts
pursuant to this paragraph.
ARTICLE 12
SINKING FUNDS
-------------
Section 1201. Applicability of This Article.
Redemption of Securities through operation of a sinking fund as
permitted or required by any form of Security issued pursuant to this Indenture
shall be made in accordance with such form of Security and this Article;
provided, however, that if any provision of any such form of Security shall
conflict with any provision of this Article, the provision of such form of
Security shall govern.
The minimum amount of any sinking fund payment provided for by the
terms of Securities of any particular 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 particular series is
herein referred to as an "optional sinking fund payment". If provided for by the
terms of Securities of any particular series, the cash amount of any sinking
fund payment may be subject to reduction as provided in Section 1202. Each
sinking fund payment shall be applied to the redemption of Securities of any
particular series as provided for by the terms of Securities of that series.
Section 1202. Satisfaction of Sinking Fund Payments With Securities.
The Company (1) may deliver Outstanding Securities of a series (other
than any previously called for redemption), together in the case of any Bearer
Securities of such series with all unmatured coupons appertaining thereto, and
(2) may apply as a credit Securities of a series which 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, however, that such Securities have not been previously
so credited. Such Securities shall be received and credited for such purpose by
the Trustee for such Securities at the principal amount thereof and the amount
of such sinking fund payment shall be reduced accordingly.
Section 1203. Redemption of Securities for Sinking Fund.
Not less than 60 days prior to each sinking fund payment date for any
particular series of Securities, the Company will deliver to the Trustee for the
Securities of such series an Officers' Certificate specifying the amount of the
next ensuing mandatory sinking fund payment for that series pursuant to the
terms of that series, the portion thereof, if any, which is to be satisfied by
payment of cash in the currency or currency unit in which the Securities of that
series are payable (except as otherwise specified pursuant to Section 301 for
the Securities of that series and except as provided in Sections 311(b) and
311(d)) and the portion thereof, if any, which is to be satisfied by delivering
and crediting Securities of that series pursuant to Section 1202 and shall state
the basis for such credit and that such Securities have not previously been so
credited and will also deliver to such Trustee any Securities to be so
delivered. Such Trustee shall select the Securities to be redeemed upon such
sinking fund payment date in the manner specified in Section 1103 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 1104. Such notice having been
duly given, the redemption of such Securities shall be made upon the terms and
in the manner stated in Sections 1106 and 1107.
ARTICLE 13
MEETINGS OF HOLDERS OF SECURITIES
---------------------------------
Section 1301. Purposes for Which Meetings May Be Called.
If Securities of a series are issuable as Bearer Securities, a meeting
of Holders of Securities of such series may be called at any time and from time
to time pursuant to this Article to make, give or take any request, demand,
authorization, direction, notice, consent, waiver or other action provided by
this Indenture to be made, given or taken by Holders of Securities of such
series.
Section 1302. Call, Notice and Place of Meetings.
(a) The Trustee for any series of Securities that includes Bearer
Securities, may at any time call a meeting of the Holders of Securities of such
series for any purpose specified in Section 1301, to be held at such time and at
such place in the Borough of Manhattan, The City of New York, or in London, as
such Trustee shall determine. Notice of every meeting of Holders of Securities
of such series, setting forth the time and the place of such meeting and in
general terms the action proposed to be taken at such meeting, shall be given,
in the manner provided in Section 106, not less than 20 nor more than 180 days
prior to the date fixed for the meeting.
(b) In case at any time the Company, pursuant to a Board Resolution, or the
Holders of at least 10% in principal amount of the Outstanding Securities of any
such series shall have requested the Trustee for any such series to call a
meeting of the Holders of Securities of such series for any purpose specified in
Section 1301, by written request setting forth in reasonable detail the action
proposed to be taken at the meeting, and such Trustee shall not have made the
first publication of the notice of such meeting within 30 days after receipt of
such request or shall not thereafter proceed to cause the meeting to be held as
provided herein, then the Company or the Holders of Securities of such series in
the amount above specified, as the case may be, may determine the time and the
place in the Borough of Manhattan, The City of New York, or in London, for such
meeting and may call such meeting for such purposes by giving notice thereof as
provided in subsection (a) of this Section.
Section 1303. Persons Entitled to Vote at Meetings.
To be entitled to vote at any meeting of Holders of Securities of any
series, a Person shall be (1) a Holder of one or more Outstanding Securities of
such series, or (2) a Person appointed by an instrument in writing as proxy for
a Holder or Holders of one or more Outstanding Securities of such series by such
Holder or Holders. The only Persons who shall be entitled to be present or to
speak at any meeting of Holders of Securities of any series shall be the Persons
entitled to vote at such meeting and their counsel, any representatives of the
Trustee for such series and its counsel and any representatives of the Company
and its counsel.
Section 1304. Quorum; Action.
The Persons entitled to vote a majority in principal amount of the
Outstanding Securities of a series shall constitute a quorum for a meeting of
Holders of Securities of such series. In the absence of a quorum within 30
minutes of the time appointed for any such meeting, the meeting shall, if
convened at the request of Holders of Securities of such series, be dissolved.
In any other case the meeting may be adjourned for a period of not less than 10
days as determined by the chairman of the meeting prior to the adjournment of
such meeting. In the absence of a quorum at any such adjourned meeting, such
adjourned meeting may be further adjourned for a period of not less than 10 days
as determined by the chairman of the meeting prior to the adjournment of such
adjourned meeting. Subject to Section 1305(d), notice of the reconvening of any
adjourned meeting shall be given as provided in Section 1302(a), except that
such notice need be given only once not less than five days prior to the date on
which the meeting is scheduled to be reconvened. Notice of the reconvening of an
adjourned meeting shall state expressly that Persons entitled to vote a majority
in principal amount of the Outstanding Securities of such series shall
constitute a quorum.
Except as limited by the proviso to Section 902, any resolution
presented to a meeting or adjourned meeting duly reconvened at which a quorum is
present as aforesaid may be adopted by the affirmative vote of the Holders of a
majority in principal amount of the Outstanding Securities of that series;
provided, however, that except as limited by the proviso to Section 902, any
resolution with respect to any request, demand, authorization, direction,
notice, consent, waiver or other action which this Indenture expressly provides
may be made, given or taken by the Holders of a specified percentage which is
less than a majority in principal amount of the Outstanding Securities of a
series may be adopted at a meeting or an adjourned meeting duly reconvened and
at which a quorum is present as aforesaid by the affirmative vote of the Holders
of such specified percentage in principal amount of the Outstanding Securities
of that series.
Any resolution passed or decision taken at any meeting of Holders of
Securities of any series duly held in accordance with this Section shall be
binding on all the Holders of Securities of such series and the related coupons,
whether or not present or represented at the meeting.
Section 1305. Determination of Voting Rights; Conduct and Adjournment of
Meetings.
(a) Notwithstanding any other provision of this Indenture, the Trustee for
any series of Securities that includes Bearer Securities may make such
reasonable regulations as it may deem advisable for any meeting of Holders of
Securities of such series in regard to proof of the holding of Securities of
such series and of the appointment of proxies and in regard to the appointment
and duties of inspectors of votes, the submission and examination of proxies,
certificates and other evidence of the right to vote, and such other matters
concerning the conduct of the meeting as it shall deem appropriate. Except as
otherwise permitted or required by any such regulations, the holding of
Securities shall be proved in the manner specified in Section 104 and the
appointment of any proxy shall be proved in the manner specified in Section 104
or by having the signature of the person executing the proxy witnessed or
guaranteed by any trust company, bank or banker authorized by Section 104 to
certify to the holding of Bearer Securities. Such regulations may provide that
written instruments appointing proxies, regular on their face, may be presumed
valid and genuine without the proof specified in Section 104 or other proof.
(b) The Trustee for any series of Securities that includes Bearer
Securities shall, by an instrument in writing, appoint a temporary chairman of
the meeting, unless the meeting shall have been called by the Company or by
Holders of Securities as provided in Section 1302(b), in which case the Company
or the Holders of Securities of the series calling the meeting, as the case may
be, shall in like manner appoint a temporary chairman. A permanent chairman and
a permanent secretary of the meeting shall be elected by vote of the Persons
entitled to vote a majority in principal amount of the Outstanding Securities of
such series represented at the meeting.
(c) At any meeting each Holder of a Security of such series or proxy shall
be entitled to one vote for each $1,000 principal amount of Securities of such
series held or represented by him as determined in accordance with Section 115;
provided, however, that no vote shall be cast or counted at any meeting in
respect of any Security challenged as not Outstanding and ruled by the chairman
of the meeting to be not Outstanding. The chairman of the meeting shall have no
right to vote, except as a Holder of a Security of such series or proxy.
(d) Any meeting of holders of Securities of any series duly called pursuant
to Section 1302 at which a quorum is present may be adjourned from time to time
by Persons entitled to vote a majority in principal amount of the Outstanding
Securities of such series represented at the meeting; and the meeting may be
held as so adjourned without further notice.
Section 1306. Counting Votes and Recording Action of Meetings.
The vote upon any resolution submitted to any meeting of Holders of
Securities of any series shall be by written ballots on which shall be
subscribed the signatures of the Holders of Securities of such series or of
their representatives by proxy and the principal amounts and serial numbers of
the Outstanding Securities of such series held or represented by them. The
permanent chairman of the meeting shall appoint two inspectors of votes who
shall count all votes cast at the meeting for or against any resolution and who
shall make and file with the secretary of the meeting their verified written
reports in triplicate of all votes cast at the meeting. A record, at least in
duplicate, of the proceedings of each meeting of Holders of Securities of any
series shall be prepared by the secretary of the meeting and there shall be
attached to said record the original reports of the inspectors of votes on any
vote by ballot taken thereat and affidavits by one or more persons having
knowledge of the facts setting forth a copy of the notice of the meeting and
showing that said notice was given as provided in Section 1302 and, if
applicable, Section 1304. Each copy shall be signed and verified by the
affidavits of the permanent chairman and secretary of the meeting and one such
copy shall be delivered to the Company, and another to the Trustee for such
series of Securities to be preserved by such Trustee, the latter to have
attached thereto the ballots voted at the meeting. Any record so signed and
verified shall be conclusive evidence of the matters therein stated.
ARTICLE 14
SUBORDINATION
-------------
Section 1401. Securities Subordinate to Senior Indebtedness.
The Company covenants and agrees, and each Holder of a Security of any
series, by his acceptance thereof, likewise covenants and agrees, that, to the
extent and in the manner hereinafter set forth in this Article (subject to
Article 4), the payment of the principal of and interest on each and all of the
Securities are hereby expressly made subordinate and subject in right of payment
to the prior payment in full in cash of all Senior Indebtedness.
This Article 14 shall constitute a continuing offer to all persons who
become holders of, or continue to hold, Senior Indebtedness, and such provisions
are made for the benefit of the holders of Senior Indebtedness and such holders
are made obligees hereunder and any one or more of them may enforce such
provisions. Holders of Senior Indebtedness need not prove reliance on the
subordination provisions hereof.
Section 1402. Payment Over of Proceeds Upon Dissolution, Etc.
Upon any payment or distribution of assets of the Company to creditors
upon (a) any insolvency or bankruptcy case or proceeding, or any receivership,
liquidation, reorganization or other similar case or proceeding in connection
therewith, relative to the Company or to its assets, or (b) any liquidation,
dissolution or other winding up of the Company, whether voluntary or involuntary
and whether or not involving insolvency or bankruptcy, or (c) any assignment for
the benefit of creditors or any other marshalling of assets or liabilities of
the Company, then and in any such event specified in (a), (b) or (c) above (each
such event, if any, herein sometimes referred to as a "Proceeding"):
(1) the holders of Senior Indebtedness shall be entitled to
receive payment in full in cash of all amounts due on or to become due
on or in respect of all Senior Indebtedness, before the Holders of the
Securities are entitled to receive any payment or distribution of any
kind or character whether in cash, property or securities (including
any payment or distribution which may be payable or deliverable to
Holders of the Securities in respect of any other Indebtedness of the
Company subordinated to the payment of the Securities, such payment or
distribution being hereinafter referred to as a "Junior Subordinated
Payment"), on account of the principal of or interest on the
Securities or on account of any purchase, redemption or other
acquisition of Securities by the Company, any Subsidiary of the
Company, the Trustee or any Paying Agent (all such payments,
distributions, purchases, redemptions and acquisitions, whether or not
in connection with a Proceeding, herein referred to, individually and
collectively, as a "Securities Payment"); and
(2) any payment or distribution of assets of the Company of any
kind or character, whether in cash, property or securities, by set-off
or otherwise, to which the Holders of the Securities or the Trustee
would be entitled but for the provisions of this Article (including,
without limitation, any Junior Subordinated Payment) shall be paid by
the liquidating trustee or agent or other Person making such payment
or distribution, whether a trustee in bankruptcy, a receiver or
liquidating trustee or otherwise, directly to the holders of Senior
Indebtedness or their representative or representatives or to the
trustee or trustees under any indenture under which any instruments
evidencing any of such Senior Indebtedness may have been issued,
ratably according to the aggregate amounts remaining unpaid on account
of the Senior Indebtedness held or represented by each, to the extent
necessary to make payment in full in cash of all Senior Indebtedness
remaining unpaid, after giving effect to any concurrent payment to the
holders of such Senior Indebtedness.
In the event that, notwithstanding the foregoing provisions of this Section, the
Trustee or the Holder of any Security shall have received in connection with any
Proceeding any Securities Payment before all Senior Indebtedness is paid in full
or payment thereof provided for in cash, then and in such event such Securities
Payment shall be paid over or delivered forthwith to the trustee in bankruptcy,
receiver, liquidating trustee, custodian, assignee, agent or other Person making
payment or distribution of assets of the Company for application to the payment
of all Senior Indebtedness remaining unpaid, to the extent necessary to pay all
Senior Indebtedness in full in cash after giving effect to any concurrent
payment to or for the holders of Senior Indebtedness.
For purposes of this Article only, the words "any payment or
distribution of any kind or character, whether in cash, property or securities"
shall not be deemed to include a payment or distribution of stock or securities
of the Company provided for by a plan of reorganization or readjustment
authorized by an order or decree of a court of competent jurisdiction in a
reorganization proceeding under any applicable bankruptcy law or of any other
corporation provided for by such plan of reorganization or readjustment which
stock or securities are subordinated in right of payment to all then outstanding
Senior Indebtedness to substantially the same extent, or to a greater extent
than, the Securities are so subordinated as provided in this Article. The
consolidation of the Company with, or the merger of the Company into, another
Person or the liquidation or dissolution of the Company following the conveyance
or transfer of all or substantially all of its properties and assets as an
entirety to another Person upon the terms and conditions set forth in Article 8
shall not be deemed a Proceeding for the purposes of this Section if the Person
formed by such consolidation or into which the Company is merged or the Person
which acquires by conveyance or transfer such properties and assets as an
entirety, as the case may be, shall, as a part of such consolidation, merger,
conveyance or transfer, comply with the conditions set forth in Article 8.
Section 1403. No Payment When Senior Indebtedness in Default.
In the event that any Senior Payment Default (as defined below) shall
have occurred, then no Securities Payment shall be made, nor shall any property
of the Company or any Subsidiary of the Company be applied to the purchase,
acquisition, retirement or redemption of the Securities, unless and until such
Senior Payment Default shall have been cured or waived in writing or shall have
ceased to exist or all amounts then due and payable in respect of such Senior
Indebtedness (including amounts that have become and remain due by acceleration)
shall have been paid in full in cash. "Senior Payment Default" means any default
in the payment of principal of (or premium, if any) or interest on any Senior
Indebtedness when due, whether at the Stated Maturity of any such payment or by
declaration of acceleration, call for redemption, mandatory payment or
prepayment or otherwise.
In the event that any Senior Nonmonetary Default (as defined below)
shall have occurred and be continuing, then, upon the receipt by the Company and
the Trustee of written notice of such Senior Nonmonetary Default from the holder
of such Senior Indebtedness (or the agent, trustee or representative thereof),
no Securities Payment shall be made, nor shall any property of the Company or
any Subsidiary of the Company be applied to the purchase, acquisition,
retirement or redemption of the Securities, during the period (the "Payment
Blockage Period") commencing on the date of such receipt of such written notice
and ending (subject to any blockage of payments that may then or thereafter be
in effect as the result of any Senior Payment Default) on the earlier of (i) the
date on which the Senior Indebtedness to which such Senior Nonmonetary Default
relates is discharged or such Senior Nonmonetary Default shall have been cured
or waived in writing or shall have ceased to exist and any acceleration of
Senior Indebtedness to which such Senior Nonmonetary Default relates shall have
been rescinded or annulled or (ii) the 179th day after the date of such receipt
of such written notice. No more than one Payment Blockage Period may be
commenced with respect to the Securities during any period of 360 consecutive
days and there shall be a period of at least 181 consecutive days in each period
of 360 consecutive days when no Payment Blockage Period is in effect. Following
the commencement of any Payment Blockage Period, the holders of any Senior
Indebtedness will be precluded from commencing a subsequent Payment Blockage
Period until the conditions set forth in the preceding sentence are satisfied.
For all purposes of this paragraph, no Senior Nonmonetary Default that existed
or was continuing on the date of commencement of any Payment Blockage Period
with respect to the Senior Indebtedness initiating such Payment Blockage Period
shall be, or be made, the basis for the commencement of a subsequent Payment
Blockage Period by holders of Senior Indebtedness or their representatives
unless such Senior Nonmonetary Default shall have been cured for a period of not
less than 90 consecutive days. "Senior Nonmonetary Default" means the occurrence
or existence and continuance of any default (other than a Senior Payment
Default) or any event which, after notice or lapse of time (or both), would
become an Event of Default (other than a Senior Payment Default), under the
terms of any instrument or agreement pursuant to which any Senior Indebtedness
is outstanding, permitting (after notice or lapse of time or both) one or more
holders of such Senior Indebtedness (or a trustee or agent on behalf of the
holders thereof) to declare such Senior Indebtedness due and payable prior to
the date on which it would otherwise become due and payable.
In the event that, notwithstanding the foregoing, the Company shall
make any payment to the Trustee or the Holder of any Security prohibited by the
foregoing provisions of this Section, and if such fact shall, at or prior to the
time of such payment, have been made known to the Trustee or, as the case may
be, such Holder in writing, then and in such event such payment shall be paid
over and delivered forthwith to the Company.
The provisions of this Section shall not apply to any Securities
Payment with respect to which Section 1402 hereof would be applicable.
Section 1404. Payment Permitted If No Default.
Nothing contained in this Article or elsewhere in this Indenture or in
any of the Securities shall prevent the Company, at any time except during the
pendency of any Proceeding referred to in Section 1402 hereof or under the
conditions described in Section 1403 hereof, from making Securities Payments.
Section 1405. Subrogation to Rights of Holders of Senior Indebtedness.
Subject to the payment in full in cash of all Senior Indebtedness, the
Holders of the Securities of such series shall be subrogated (equally and
ratably with the holders of all indebtedness of the Company which by its express
terms is subordinated to indebtedness of the Company to substantially the same
extent as the Securities are subordinated and is entitled to like rights of
subrogation) to the rights of the holders of such Senior Indebtedness to receive
payments and distributions of cash, property and securities applicable to the
Senior Indebtedness until the principal of (and premium, if any) and interest on
the Securities shall be paid in full. For purposes of such subrogation, no
payments or distributions to the holders of the Senior Indebtedness of any cash,
property or securities to which the Holders of the Securities or the Trustee
would be entitled except for the provisions of this Article, and no payments
over pursuant to the provisions of this Article to the holders of Senior
Indebtedness by Holders of the Securities or the Trustee, shall, as among the
Company, its creditors other than holders of Senior Indebtedness and the Holders
of the Securities, be deemed to be a payment or distribution by the Company to
or on account of the Senior Indebtedness.
Section 1406. Provisions Solely to Define Relative Rights.
The provisions of this Article are and are intended solely for the
purpose of defining the relative rights of the Holders on the one hand and the
holders of Senior Indebtedness on the other hand. Nothing contained in this
Article or elsewhere in this Indenture or in the Securities is intended to or
shall (a) impair, as among the Company, its creditors other than holders of
Senior Indebtedness and the Holders of the Securities, the obligation of the
Company, which is absolute and unconditional (and which, subject to the rights
under this Article of the holders of Senior Indebtedness, is intended to rank
equally with all other general obligations of the Company), to pay to the
Holders of the Securities the principal of and interest on the Securities as and
when the same shall become due and payable in accordance with their terms; or
(b) affect the relative rights against the Company of the Holders of the
Securities and creditors of the Company other than the holders of Senior
Indebtedness; or (c) prevent the Trustee or the Holder of any Security from
exercising all remedies otherwise permitted by applicable law upon default under
this Indenture, subject to the rights, if any, under this Article of the holders
of Senior Indebtedness to receive cash, property and securities otherwise
payable or deliverable to the Trustee or such Holder.
Section 1407. Trustee to Effectuate Subordination.
Each Holder of a Security by his acceptance thereof authorizes and
directs the Trustee on his behalf to take such action as may be necessary or
appropriate to effectuate the subordination provided in this Article and
appoints the Trustee his attorney-in-fact for any and all such purposes,
including, in the event of any dissolution, winding-up, liquidation or
reorganization of the Company whether in bankruptcy, insolvency, receivership
proceedings, or otherwise, the timely filing of a claim for the unpaid balance
of the Indebtedness of the Company owing to such Holder in the form required in
such proceedings and the causing of such claim to be approved. If the Trustee
does not file a proper claim at least 30 days before the expiration of the time
to file such claim, then the holders of the Senior Indebtedness and their
agents, trustees or other representatives are authorized to do so (but shall in
no event be liable for any failure to do so) for and on behalf of the Holders of
the Securities.
Section 1408. No Waiver of Subordination Provisions.
No right of any present or future holder of any Senior Indebtedness to
enforce subordination as herein provided shall at any time in any way be
prejudiced or impaired by any act or failure to act on the part of the Company
or by any act or failure to act, in good faith, by any such holder, or by any
noncompliance by the Company with the terms, provisions and covenants of this
Indenture, regardless of any knowledge thereof any such holder may have or be
otherwise charged with.
Without in any way limiting the generality of the foregoing paragraph,
the holders of Senior Indebtedness may, at any time and from time to time,
without the consent of or notice to the Trustee or the Holders of the
Securities, without incurring responsibility to the Holders of the Securities
and without impairing or releasing the subordination provided in this Article or
the obligations hereunder of the Holders of the Securities to the holders of
Senior Indebtedness, do any one or more of the following: (i) change the manner,
place or terms of payment or extend the time of payment of, or renew or alter,
Senior Indebtedness, or otherwise amend or supplement in any manner Senior
Indebtedness or any instrument evidencing the same or any agreement under which
Senior Indebtedness is outstanding; (ii) permit the Company to borrow, repay and
then reborrow any or all of the Senior Indebtedness; (iii) sell, exchange,
release or otherwise deal with any property pledged, mortgaged or otherwise
securing Senior Indebtedness; (iv) release any Person liable in any manner for
the collection of Senior Indebtedness; (v) exercise or refrain from exercising
any rights against the Company and any other Person; and (vi) apply any sums
received by them to Senior Indebtedness.
Section 1409. Notice to Trustee.
The Company shall give prompt written notice to the Trustee of any fact
known to the Company which would prohibit the making of any payment to or by the
Trustee in respect of the Securities. Notwithstanding the provisions of this
Article or any other provision of this Indenture, the Trustee shall not be
charged with knowledge of the existence of any facts which would prohibit the
making of any payment to or by the Trustee in respect of the Securities, unless
and until a Responsible Officer of the Trustee shall have received written
notice thereof from the Company, any holder of Senior Indebtedness or from any
trustee, fiduciary or agent therefor; and, prior to the receipt of any such
written notice, the Trustee, subject to the provisions of Section 601 hereof,
shall be entitled in all respects to assume that no such facts exist; provided,
however, that if the Trustee shall not have received the notice provided for in
this Section at least three Business Days prior to the date upon which by the
terms hereof any money may become payable for any purpose (including, without
limitation, the payment of the principal of (and premium, if any) or interest on
any Security), then, anything herein contained to the contrary notwithstanding,
but without limiting the rights and remedies of the holders of Senior
Indebtedness or any trustee, fiduciary or agent therefor, the Trustee shall have
full power and authority to receive such money and to apply the same to the
purpose for which such money was received and shall not be affected by any
notice to the contrary which may be received by it within three Business Days
prior to such date. Any notice required or permitted to be given to the Trustee
by a holder of Senior Indebtedness or by any agent, trustee or representative
thereof shall be in writing and shall be sufficient for every purpose hereunder
if in writing and either (i) sent via facsimile to the Trustee, the receipt of
which shall be confirmed via telephone, or (ii) mailed, first class postage
prepaid, or sent by overnight carrier, to the Trustee addressed to its Corporate
Trust Office or to any other address furnished in writing to such holder of
Senior Indebtedness by the Trustee.
Subject to the provisions of Section 601 hereof, the Trustee shall be
entitled to rely on the delivery to it of a written notice by a Person
representing himself to be a holder of Senior Indebtedness (or a trustee,
fiduciary or agent therefor to establish that such notice has been given by a
holder of Senior Indebtedness or a trustee, fiduciary or agent therefor). In the
event that the Trustee determines in good faith that further evidence is
required with respect to the right of any Person as a holder of Senior
Indebtedness to participate in any payment or distribution pursuant to this
Article, the Trustee may request such Person to furnish evidence to the
reasonable satisfaction of the Trustee as to the amount of Senior Indebtedness
held by such Person, the extent to which such Person is entitled to participate
in such payment or distribution and any other facts pertinent to the rights of
such Person under this Article, and if such evidence is not furnished, the
Trustee may defer any payment to such Person pending judicial determination as
to the right of such Person to receive such payment.
Notwithstanding anything else contained herein, no notice, request or
other communication to or with the Trustee shall be deemed given unless received
by a Responsible Officer at the Corporate Trust Office.
Section 1410. Reliance on Judicial Order or Certificate of Liquidating Agent.
Upon any payment or distribution of assets of the Company referred to
in this Article, the Trustee, subject to the provisions of Section 601 hereof,
and the Holders of the Securities shall be entitled to rely upon any order or
decree entered by any court of competent jurisdiction in which such Proceeding
is pending, or a certificate of the trustee in bankruptcy, receiver, liquidating
trustee, custodian, assignee for the benefit of creditors, agent or other Person
making such payment or distribution, delivered to the Trustee or to the Holders
of Securities, for the purpose of ascertaining the Persons entitled to
participate in such payment or distribution, the holders of the Senior
Indebtedness and other Indebtedness of the Company, the amount thereof or
payable thereon, the amount or amounts paid or distributed thereon and all other
facts pertinent thereto or to this Article, provided that the foregoing shall
apply only if such court has been apprised of the provisions of this Article.
Section 1411. Trustee Not Fiduciary for Holders of Senior Indebtedness.
The Trustee shall not be deemed to owe any fiduciary duty to the
holders of Senior Indebtedness and shall not be liable to any such holders if it
shall in good faith mistakenly pay over or distribute to Holders of Securities
or to the Company or to any other Person cash, property or securities to which
any holders of Senior Indebtedness shall be entitled by virtue of this Article
or otherwise.
Section 1412. Rights of Trustee as Holder of Senior Indebtedness; Preservation
of Trustee's Rights.
The Trustee in its individual capacity shall be entitled to all the
rights set forth in this Article with respect to any Senior Indebtedness which
may at any time be held by it, to the same extent as any other holder of Senior
Indebtedness, and nothing in this Indenture shall deprive the Trustee of any of
its rights as such holder.
Nothing in this Article shall apply to claims of, or payments to, the
Trustee under or pursuant to Section 607 hereof.
Section 1413. Article Applicable to Paying Agents.
In case at any time any Paying Agent other than the Trustee shall have
been appointed by the Company and be then acting hereunder, the term "Trustee"
as used in this Article shall in such case (unless the context otherwise
requires) be construed as extending to and including such Paying Agent within
its meaning as fully for all intents and purposes as if such Paying Agent were
named in this Article in addition to or in place of the Trustee; provided,
however, that Section 1411 hereof shall not apply to the Company or any
Affiliate of the Company if it or such Affiliate acts as Paying Agent.
ARTICLE 15
CONVERSION AND EXCHANGE
-----------------------
Section 1501. Applicability of Article.
Securities of any series which are designated as being convertible into
or exchangeable for any other security of the Company or another Person prior to
their Stated Maturity shall be convertible or exchangeable in accordance with
their terms and (except as otherwise specified pursuant to Section 301 for the
Securities of such series) in accordance with this Article.
Section 1502. Conversion Privilege.
A Holder of a Security of a series, which, by its terms, is convertible
into or exchangeable for any other security of the Company or another Person,
may convert or exchange such Security at any time during the period and in the
manner as is set forth in the terms of the Securities of such series. The number
of shares or units of such other security issuable upon conversion of or
exchange for a Security shall be determined in the manner set forth in the terms
of such Security.
Section 1503. Conversion and Exchange Procedure.
To convert or exchange a Security, the Holder thereof must comply with
and satisfy all of the terms, conditions and other requirements set forth in the
terms of such Security. As soon as practicable, the Company shall deliver
through the relevant conversion or exchange agent a certificate for the number
of shares or units of the security issuable upon the conversion or exchange.
Section 1504. Fractional Shares.
The terms of convertible and exchangeable Securities shall set forth
whether the Company will issue or deliver a fractional share or units of a
security upon conversion or exchange of a Security, or will deliver its check
for the value of the fractional share or units of a security.
Section 1505. Taxes on Conversion or Exchange.
The terms of convertible and exchangeable Securities shall state
whether the Company will pay any documentary, stamp or similar issue or transfer
tax, due on the issue of shares or units of the security issuable and whether
upon the conversion or exchange the Holder will be required to pay any such tax
which is due because securities are issued in a name other than that of such
Holder.
Section 1506. Company to Provide Securities Issuable Upon Conversion or
Exchange.
The Company shall reserve or otherwise provide for a sufficient amount
of its respective securities or securities of a third Person which would be
issuable upon the conversion or exchange of the Securities, including reserving
out of its respective authorized but unissued equity securities or its equity
securities held in treasury enough shares to permit the conversion or exchange
of the Securities.
All shares of equity securities of the Company which may be issued upon
conversion or exchange of the Securities shall be fully paid and nonassessable.
The Company shall endeavor to comply with all securities laws
regulating the offer and delivery of shares or units of its respective
securities upon conversion or exchange of Securities and will endeavor to list
such shares or units on any national securities exchange on which such shares or
units are listed.`
Section 1507. Adjustments.
The terms of the Securities shall set forth the nature of mechanics for
and notice of any adjustments in the number or price of securities issuable upon
conversion or exchange of the Securities.
Section 1508. Valuation.
The terms of the Securities shall set forth the method or methods for
valuing the securities issuable upon conversion or exchange of the Securities.
Section 1509. Reorganization of Company.
The terms of the Securities shall set forth the rights, if any, of the
Holders to, convert or exchange their Securities in the event that the Company
is a party to a transaction subject to Article 8 or a merger which reclassifies
or changes its outstanding Securities into which the Securities are convertible
or exchangeable.
Section 1510. Trustee's Disclaimer.
The Trustee has no duty to determine when an adjustment under this
Article of the terms of the Securities should be made, how it should be made or
what it should be. The Trustee makes no representation as to the validity or
value of any securities issued upon conversion of or exchange for Securities.
The Trustee shall not be responsible for the failure of the Company to comply
with this Article. Each conversion and exchange agent other than the Company
shall have the same protection under this Section 1510 as the Trustee.
* * *
This instrument may be executed in any number of counterparts, each of
which so executed shall be deemed to be an original, but all such counterparts
shall together constitute but one and the same instrument.
IN WITNESS WHEREOF, the parties hereto have caused this Indenture dated
as of February 1, 2002 to be duly executed, and their respective corporate seals
to be hereunto affixed and attested, all as of February 1, 2002.
KEYSPAN CORPORATION,
Issuer
By:
-----------------------------------
[Title]
Attest:
- ----------------------
Assistant Secretary
JPMORGAN CHASE BANK,
Trustee
By:
----------------------------------
[Title]:
Attest:
- -----------------------
Trust Officer
EXHIBIT A
---------
[FORM OF CERTIFICATE TO BE DELIVERED TO EUROCLEAR OR CLEARSTREAM BY A BENEFICIAL
OWNER OF SECURITIES, IN ORDER TO RECEIVE A DEFINITIVE BEARER SECURITY IN
EXCHANGE FOR AN INTEREST IN A TEMPORARY GLOBAL SECURITY OR TO EXCHANGE AN
INTEREST IN A TEMPORARY GLOBAL SECURITY FOR AN INTEREST IN A PERMANENT GLOBAL
SECURITY]
KEYSPAN CORPORATION
[Insert title or description of Securities]
Reference is hereby made to the Indenture, dated as of ___________,
2002 (the "Indenture") between KeySpan Corporation (the "Company") and JPMorgan
Chase Bank, as Trustee. Terms used herein unless otherwise defined shall have
the meanings ascribed to them in the Indenture.
This is to certify that as of the date hereof [and except as provided
in the fourth paragraph hereof]*, $___________________principal amount of the
above-captioned Securities represented by a temporary Global Security (the
"temporary Global Security") held by you for our account is:
(i) beneficially owned by persons that are not United States
persons (as defined below);
(ii) owned by United States person(s) that are (a) foreign
branches of United States financial institutions (as defined in United
States Treasury Regulation Section 1.165-12(c)(1)(iv) ("financial
institutions")) purchasing for their own account or for resale, or (b)
United States person(s) who acquired the beneficial interest in the
temporary Global Security through foreign branches of United States
financial institutions and who hold the beneficial interest in the
temporary Global Security through such United States financial
institutions on the date hereof (and in either case (a) or (b), each
such United States financial institution hereby agrees, for the
benefit of the Company, that it will comply with the requirements of
Section 165(j)(3)(A), (B) or (C) of the United States Internal Revenue
Code of 1986, as amended, and the regulations thereunder); or
(iii) owned by financial institution(s) for the purpose of resale
during the restricted period (as defined in United States Treasury
Regulation Section 1.163-5(c)(2)(i)(D)(7)) and, in addition, financial
institution(s) described in this clause (iii) (whether or not also
described in clause (i) or (ii)), further certify that they have not
acquired the beneficial interest in the temporary Global Security for
the purpose of resale directly or indirectly to a United States person
or to a person within the United States.
"United States person" means a citizen or resident of the United
States, a corporation, partnership or other entity created or organized in or
under the laws of the United States and an estate or trust the income of which
is subject to United States federal income taxation regardless of its source,
and "United States" means the United States of America (including the States and
the District of Columbia), its territories, its possessions and other areas
subject to its jurisdiction (including the Commonwealth of Puerto Rico).
[This certificate excepts and does not relate to $_________ principal
amount of the temporary Global Security held by you for our account as to which
we are not able to provide a certificate in this form. We understand that
exchange of such portion of the temporary Global Security for [definitive Bearer
Securities] [interests in a permanent Global Security] cannot be made until we
are able to provide a certificate in this form.]* We undertake to advise you
promptly by tested telex on or prior to the date on which you intend to submit
your certification relating to the above-captioned Securities held by you for
our account if any applicable statement herein is not correct on such date, and
in the absence of any such notification it may be assumed that this
certification applies as of such date.
We understand that this certificate is required in connection with
certain tax laws and regulations in the United States. If administrative or
legal proceedings are commenced or threatened in connection with which this
certificate is or would be relevant, we irrevocably authorize you to produce
this certificate or a copy thereof to any interested party in such proceedings.
Dated:
- -------------------------
[Name of Person Making Certification]
By:
---------------------------------------------
* Delete if inappropriate.
EXHIBIT B
[FORM OF CERTIFICATE TO BE GIVEN TO THE APPROPRIATE TRUSTEE BY EUROCLEAR OR
CLEARSTREAM REGARDING THE EXCHANGE OF A TEMPORARY GLOBAL SECURITY FOR DEFINITIVE
SECURITIES OR FOR A PORTION OF A PERMANENT GLOBAL SECURITY]
KEYSPAN CORPORATION
[Insert title or description of Securities]
Reference is hereby made to the Indenture, dated as of _____________,
2002 (the "Indenture") between KeySpan Corporation (the "Company") and JPMorgan
Chase Bank, as Trustee. Terms used herein unless otherwise defined shall have
the meanings ascribed to them in the Indenture.
We refer to that portion of the temporary Global Security in respect of
the above-captioned Securities which is herewith submitted to be exchanged for
[definitive Bearer Securities] [interests in a permanent Global Security] (the
"Submitted Portion") as provided in the Prospectus Supplement dated [insert date
of Prospectus Supplement] in respect of such issue. This is to certify that (i)
we have received in writing or by tested telex or electronically (in accordance
with the requirements of United States Treasury Regulation Section
1.163-5(c)(2)(i)(D)(3)(ii)) a certificate or certificates with respect to the
entire Submitted Portion, substantially in the form of Exhibit A to the
Indenture, and (ii) the Submitted Portion includes no part of the temporary
Global Security excepted in such certificates.
We further certify that as of the date hereof we have not received any
notification from any of the persons giving such certificates to the effect that
the statements made by them with respect to any part of the Submitted Portion
are no longer true and cannot be relied on as of the date thereof.
We understand that this certificate is required in connection with certain
tax laws and regulations in the United States of America. If administrative or
legal proceedings are commenced or threatened in connection with which this
certificate is or would be relevant, we irrevocably authorize you to produce
this certificate or a copy thereof to any interested party in such proceedings.
Submitted Portion:
U.S. $
---------------------
Date:
--------------------
[Morgan Guaranty Trust Company of New York, Brussels office, as operator of the
Euroclear System] [Clearstream]*
By:
---------------------------------------
* Delete if inappropriate.
EXHIBIT C
---------
[FORM OF CERTIFICATE TO BE DELIVERED TO EUROCLEAR OR CLEARSTREAM BY A BENEFICIAL
OWNER OF SECURITIES, IN ORDER TO RECEIVE PAYMENT ON A TEMPORARY GLOBAL SECURITY]
KEYSPAN CORPORATION
[Insert title or description of Securities]
Reference is hereby made to the Indenture, dated as of ______________,
2002 (the "Indenture") between KeySpan Corporation (the "Company") and JPMorgan
Chase Bank, as Trustee. Terms used herein unless otherwise defined shall have
the meanings ascribed to them in the Indenture.
This is to certify that as of the date hereof [and except as provided
in the fourth paragraph hereof]*, $___________________principal amount of the
above-captioned Securities represented by a temporary Global Security (the
"temporary Global Security") held by you for our account is:
(i) beneficially owned by persons that are not United States
persons (as defined below);
(ii) owned by United States person(s) that are (a) foreign
branches of United States financial institutions (as defined in United
States Treasury Regulation Section 1.165-12(c)(1)(iv) ("financial
institutions")) purchasing for their own account or for resale, or (b)
United States person(s) who acquired the beneficial interest in the
temporary Global Security through foreign branches of United States
financial institutions and who hold the beneficial interest in the
temporary Global Security through such United States financial
institutions on the date hereof (and in either case (a) or (b), each
such United States financial institution hereby agrees, for the
benefit of the Company, that it will comply with the requirements of
Section 165(j)(3)(A), (B) or (C) of the United States Internal Revenue
Code of 1986, as amended, and the regulations thereunder); or
(iii) owned by financial institution(s) for the purpose of resale
during the restricted period (as defined in United States Treasury
Regulation Section 1.163-5(c)(2)(i)(D)(7)) and, in addition, financial
institution(s) described in this clause (iii) (whether or not also
described in clause (i) or (ii)), further certify that they have not
acquired the beneficial interest in the temporary Global Security for
the purpose of resale directly or indirectly to a United States person
or to a person within the United States.
"United States person" means a citizen or resident of the United
States, a corporation, partnership or other entity created or organized in or
under the laws of the United States and an estate or trust the income of which
is subject to United States federal income taxation regardless of its source,
and "United States" means the United States of America (including the States and
the District of Columbia), its territories, its possessions and other areas
subject to its jurisdiction (including the Commonwealth of Puerto Rico).
[This certificate excepts and does not relate to $_________ principal
amount of the temporary Global Security held by you for our account as to which
we are not able to provide a certificate in this form. We understand that
payments, if any, due with respect to such portion of the temporary Global
Security cannot be made until we are able to provide a certificate in this
form.]*
We undertake to advise you promptly by tested telex on or prior to the
date on which you intend to submit your certification relating to the
above-captioned Securities held by you for our account if any applicable
statement herein is not correct on such date, and in the absence of any such
notification it may be assumed that this certification applies as of such date.
We understand that this certificate is required in connection with
certain tax laws and regulations in the United States. If administrative or
legal proceedings are commenced or threatened in connection with which this
certificate is or would be relevant, we irrevocably authorize you to produce
this certificate or a copy thereof to any interested party in such proceedings.
Dated:
-------------------
[Name of Person Making Certification]
By:
---------------------------------------
- ---------------------------------
* Delete if inappropriate.
EXHIBIT D
---------
[FORM OF CERTIFICATE TO BE GIVEN TO THE APPROPRIATE TRUSTEE BY EUROCLEAR OR
CLEARSTREAM REGARDING PAYMENT ON A TEMPORARY GLOBAL SECURITY]
KEYSPAN CORPORATION
[Insert title or description of Securities]
Reference is hereby made to the Indenture, dated as of ______________,
2002 (the "Indenture") between KeySpan Corporation (the "Company") and JPMorgan
Chase Bank, as Trustee. Terms used herein unless otherwise defined shall have
the meanings ascribed to them in the Indenture.
We refer to that portion of the temporary Global Security in respect of
the above-captioned Securities for which we hereby request that you make payment
to us of the amounts payable on the relevant payment date (the "Submitted
Portion") as provided in the Prospectus Supplement dated [insert date of
Prospectus Supplement] in respect of such issue. This is to certify that (i) we
have received in writing or by tested telex or electronically (in accordance
with the requirements of United States Treasury Regulation Section 1.163-
5(c)(2)(i)(D)(3)(ii)) a certificate or certificates with respect to the entire
Submitted Portion, substantially in the form of Exhibit C to the Indenture, and
(ii) the Submitted Portion includes no part of the temporary Global Security
excepted in such certificates.
We further certify that as of the date hereof we have not received any
notification from any of the persons giving such certificates to the effect that
the statements made by them with respect to any part of the Submitted Portion
are no longer true and cannot be relied on as of the date thereof.
We understand that this certificate is required in connection with
certain tax laws and regulations in the United States of America. If
administrative or legal proceedings are commenced or threatened in connection
with which this certificate is or would be relevant, we irrevocably authorize
you to produce this certificate or a copy thereof to any interested party in
such proceedings.
Submitted Portion:
U.S. $
-------------------
Dated:
-------------------
[Morgan Guaranty Trust Company
of New York, Brussels office, as
operator of the Euroclear System]*
[Clearstream]*
By:
--------------------------------------
* Delete if inappropriate.