File No. 333-
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
---------------
FORM S-3
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
---------------
Virginia Electric And Power Company
(Exact name of registrant as specified in its charter)
Virginia 54-0418825
(State Of Incorporation) (I.R.S. Employer Identification No.)
---------------
701 E. Cary Street, Richmond, Virginia 23219-3932
(804) 771-3000
(Address, including zip code, and telephone number, including area code, of
registrant's principal executive offices)
---------------
J. KENNERLY DAVIS, JR., Vice President-Finance and Administration, Treasurer
and Corporate Secretary PHILIP W. NICHOLS, Coordinator-Finance Administration
Virginia Electric and Power Company
701 E. Cary Street, Richmond, Virginia 23219-3932
(804) 771-3000
(Name, address, including zip code, and telephone number, including area code,
of agent for service)
---------------
Copies To:
<TABLE>
<S> <C>
THOMAS F. FARRELL, II ROBERT L. BURRUS, JR.
Virginia Electric and Power Company McGuire, Woods, Battle & Boothe LLP
701 E. Cary Street One James Center
Richmond, Virginia 23219-3932 Richmond, Virginia 23219
</TABLE>
Approximate date of commencement of proposed sale to the public: as soon as
practicable after effectiveness.
If the only securities being registered on this Form are being offered pursuant
to dividend or interest reinvestment plans, please check the following box. [ ]
If any of the securities being registered on this Form are to be offered on a
delayed or continuous basis pursuant to Rule 415 under the Securities Act of
1933, other than securities offered only in connection with dividend or
interest reinvestment plans, please check the following box. [X]
---------------
CALCULATION OF REGISTRATION FEE
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Amount Proposed Proposed
Title of Each Class of to be Maximum Offering MaximumAggregate Amount of
Securities to be Registered Registered Price Per Unit (1) Offering Price (1) Registration Fee
<S> <C> <C> <C> <C>
First and Refunding Mortgage Bonds
Senior Notes ...................... $375,000,000 100% $375,000,000 $129,311 (2)
Senior Subordinated Notes .........
</TABLE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
(1) Exclusive of accrued interest and estimated solely for the purpose of
calculating the registration fee.
(2) The appropriate registration fees were paid in connection with File No.
33-59581 and are being carried forward pursuant to Rule 429.
Pursuant to Rule 429 under the Securities Act of 1933, as amended, the
Prospectus constituting a part of this Registration Statement also relates to
$375,000,000 of the registrant's First and Refunding Mortgage Bonds registered
for sale in a Registration Statement on Form S-3 (File No. 33-59581). This
Registration Statement also constitutes Post-Effective Amendment No. 1 with
respect to Registration Statement No. 33-59581 and such Post-Effective
Amendment shall become effective concurrently with the effectiveness of this
Registration Statement in accordance with Section 8(c) of the Securities Act of
1933.
The registrant hereby amends this Registration Statement on such date or dates
as may be necessary to delay its effective date until the registrant shall file
a further amendment which specifically states that this Registration Statement
shall thereafter become effective in accordance with Section 8(a) of the
Securities Act of 1933 or until the registration statement shall become
effective on such date as the Commission, acting pursuant to said Section 8(a),
may determine.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<PAGE>
PROSPECTUS
VIRGINIA ELECTRIC AND POWER COMPANY
DEBT SECURITIES
-------------
Virginia Electric and Power Company (the Company) may offer, from time to
time, up to $375,000,000 aggregate principal amount of Debt Securities,
including its First and Refunding Mortgage Bonds (the Bonds), Senior Notes (the
Senior Notes) or Senior Subordinated Notes (the Senior Subordinated Notes, and
together with the Bonds and the Senior Notes, the Debt Securities) or any
combination thereof in one or more series at prices and on terms to be
determined at the time or times of sale. The Bonds will be issued under, and
secured by, the Indenture of Mortgage that constitutes a lien on substantially
all of the properties and franchises of the Company. See "Description of the
Bonds." The Senior Notes and the Senior Subordinated Notes will be unsecured,
and the indentures under which they are to be issued contain no limitations on
the issuance by the Company of other indebtedness (whether secured or
unsecured). The Senior Notes will rank equally and ratably with all other
unsecured and unsubordinated indebtedness of the Company. The Senior
Subordinated Notes will be subordinated to all Senior Indebtedness (as
hereinafter defined) of the Company. Certain series of Senior Subordinated
Notes may also be subordinated to other series of Senior Subordinated Notes.
See "Description of the Senior Notes and Senior Subordinated Notes."
For each offering of Bonds (the Offered Bonds), Senior Notes (the Offered
Senior Notes) or Senior Subordinated Notes (the Offered Senior Subordinated
Notes) (collectively, the Offered Securities) for which this Prospectus is
being delivered, there will be an accompanying Prospectus Supplement (the
Prospectus Supplement) that sets forth the specific designation, aggregate
principal amount, maturity or maturities, rate or rates and times of payment of
interest, sinking fund provisions, redemption terms and any other special terms
of the Offered Securities, and any planned listing thereof on a securities
exchange (although no assurance can be given as to the liquidity of, or the
trading market for, any of the Offered Securities).
The Company may sell the Offered Securities (a) to or through underwriters
or dealers, (b) directly to a limited number of purchasers or to a single
purchaser or (c) through agents. The names of any underwriters, dealers or
agents involved in the distribution of the Offered Securities, any applicable
discounts, commissions or allowances, any initial public offering price and the
proceeds to the Company from the sale of the Offered Securities will be set
forth in the Prospectus Supplement. See "Plan of Distribution" herein.
---------------
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE
ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS
A CRIMINAL OFFENSE.
---------------
THE DATE OF THIS PROSPECTUS IS , 199 .
<PAGE>
NO PERSON IS AUTHORIZED TO GIVE ANY INFORMATION OR TO MAKE ANY
REPRESENTATIONS OTHER THAN THOSE CONTAINED OR INCORPORATED BY REFERENCE IN THIS
PROSPECTUS OR THE PROSPECTUS SUPPLEMENT AND, IF GIVEN OR MADE, SUCH INFORMATION
OR REPRESENTATIONS MUST NOT BE RELIED UPON AS HAVING BEEN AUTHORIZED. THIS
PROSPECTUS DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER
TO BUY ANY SECURITIES OTHER THAN THE REGISTERED SECURITIES TO WHICH IT RELATES
OR AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO BUY SUCH SECURITIES IN ANY
JURISDICTION TO ANY PERSON TO WHOM IT IS UNLAWFUL TO MAKE SUCH OFFER OR
SOLICITATION IN SUCH JURISDICTION. NEITHER THE DELIVERY OF THIS PROSPECTUS OR
THE PROSPECTUS SUPPLEMENT NOR ANY SALE MADE HEREUNDER OR THEREUNDER SHALL,
UNDER ANY CIRCUMSTANCES, CREATE ANY IMPLICATION THAT THERE HAS BEEN NO CHANGE
IN THE AFFAIRS OF THE COMPANY SINCE THE DATE HEREOF OR THEREOF OR THAT THE
INFORMATION CONTAINED OR INCORPORATED BY REFERENCE HEREIN OR THEREIN IS CORRECT
AS OF ANY TIME SUBSEQUENT TO ITS DATE.
AVAILABLE INFORMATION
The Company is subject to the informational requirements of the Securities
Exchange Act of 1934, as amended (the Exchange Act), and in accordance
therewith, files periodic and current reports, and other information with the
Securities and Exchange Commission (the Commission). Such reports and other
information filed by the Company can be inspected and copied at the public
reference facilities of the Commission at Room 1024, 450 Fifth Street, N.W.,
Washington, D.C. 20549 and at the regional offices of the Commission located at
7 World Trade Center, 13th Floor, Suite 1300, New York, New York 10048 and
Citicorp Center, 14th Floor, 500 West Madison Street, Chicago, Illinois 60661.
Copies of such material can also be obtained at prescribed rates by writing to
the Public Reference Section of the Commission at 450 Fifth Street, N.W.,
Washington, D.C. 20549. The Commission also maintains a Worldwide Web site
(address: http://www.sec.gov) that contains reports, proxy and information
statements and other information regarding registrants that file electronically
with the Commission. In addition, such reports and other information concerning
the Company can be inspected at the offices of the New York Stock Exchange,
Inc., 20 Broad Street, New York, New York 10005.
The Company has filed with the Commission a Registration Statement on Form
S-3 (together with all amendments and exhibits thereto, the Registration
Statement) under the Securities Act of 1933, as amended (the Securities Act)
with respect to the securities offered hereby. This Prospectus does not contain
all the information set forth in the Registration Statement, certain portions
of which have been omitted as permitted by the rules and regulations of the
Commission. For further information with respect to the Company and the
securities offered hereby, reference is made to the Registration Statement and
the exhibits and the financial statements, notes and schedules filed as a part
thereof or incorporated by reference therein, which may be inspected at the
public reference facilities of the Commission, at the addresses set forth
above. Statements made in this Prospectus concerning the contents of any
documents referred to herein are not necessarily complete, and in each instance
are qualified in all respects by reference to the copy of such document filed
as an exhibit to the Registration Statement.
DOCUMENTS INCORPORATED BY REFERENCE
The following documents filed by the Company with the Commission are
incorporated in this Prospectus by reference as of their respective dates of
filing and shall be deemed to be a part hereof:
o The Company's Annual report on Form 10-K for the year ended December 31,
1996.
o The Company's Current Report on Form 8-K, dated February 20, 1997.
o The Company's Quarterly reports on Form 10-Q for the quarters ended
March 31, 1997, June 30, 1997 and September 30, 1997.
All documents subsequently filed by the Company pursuant to Section 13(a),
13(c), 14 or 15(d) of the Exchange Act after the date of this Prospectus and
prior to the termination of the offering made by this Prospectus and the
accompanying Prospectus Supplement shall be deemed to be incorporated by
reference in this Prospectus and to be made a part hereof from the date of
filing of such documents.
Any statement contained in a document incorporated or deemed to be
incorporated by reference herein shall be deemed to be modified or superseded
for purposes of this Prospectus to the extent that a statement contained herein
or in any other
2
<PAGE>
subsequently filed document which also is or is deemed to be incorporated by
reference herein or in the accompanying Prospectus Supplement modifies or
supersedes such statement. Any such statement so modified or superseded shall
not be deemed, except as so modified or superseded, to constitute a part of
this Prospectus.
THE COMPANY WILL PROVIDE WITHOUT CHARGE TO EACH PERSON, INCLUDING ANY
BENEFICIAL OWNER, TO WHOM A COPY OF THIS PROSPECTUS AND THE ACCOMPANYING
PROSPECTUS SUPPLEMENT HAS BEEN DELIVERED, UPON ORAL OR WRITTEN REQUEST OF ANY
SUCH PERSON, A COPY OF ANY OR ALL OF THE DOCUMENTS REFERRED TO ABOVE WHICH HAVE
BEEN OR MAY BE INCORPORATED BY REFERENCE IN THIS PROSPECTUS, OTHER THAN
EXHIBITS TO SUCH DOCUMENTS, UNLESS SUCH EXHIBITS ARE SPECIFICALLY INCORPORATED
BY REFERENCE THEREIN. REQUESTS FOR COPIES OF SUCH DOCUMENTS SHOULD BE ADDRESSED
TO CORPORATE SECRETARY, VIRGINIA ELECTRIC AND POWER COMPANY, P.O. BOX 26666,
RICHMOND, VIRGINIA 23261-6666 (TELEPHONE NO. 804-771-3000).
3
<PAGE>
THE COMPANY
The Company was incorporated in Virginia in 1909, and has its principal
office at 701 E. Cary Street, Richmond, Virginia 23219-3932, telephone (804)
771-3000. The Company is a wholly owned subsidiary of Dominion Resources, Inc.
(Dominion Resources).
The Company is a regulated public utility engaged in the generation,
purchase, transmission, distribution and sale of electric energy within a
30,000 square mile service area in Virginia and in northeastern North Carolina.
It transacts business under the name Virginia Power in Virginia and under the
name North Carolina Power in North Carolina. Its Virginia service area
comprises about 65% of Virginia's total land area but accounts for over 80% of
its population.
RATIO OF EARNINGS TO FIXED CHARGES
<TABLE>
<CAPTION>
Years
---------------------------------------------------------
1997 1996 1995 1994 1993
--------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
Ratio of Earnings to Fixed Charges ......... 3.21 3.13 2.99 3.20 3.36
</TABLE>
For purposes of this ratio (i) earnings consist of income from continuing
operations before income taxes and fixed charges and (ii) fixed charges consist
of all interest deductions and the interest component of rentals.
USE OF PROCEEDS
Except as otherwise provided in the accompanying Prospectus Supplement,
the proceeds from the sale of the Offered Securities will be added to the
general funds of the Company and will be used to meet a portion of its capital
requirements. Such requirements consist principally of construction, upgrading
and maintenance expenditures and refunding of outstanding securities. Pending
use by the Company, the Company will invest the net proceeds of the sale of the
Offered Securities. For a more detailed discussion of the Company's capital
requirements and its financing program, see BUSINESS --
CAPITAL REQUIREMENTS AND FINANCING PROGRAM and MANAGEMENT'S DISCUSSION AND
ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS in the Company's most
recent Annual Report on Form 10-K (incorporated herein by reference).
DESCRIPTION OF THE BONDS
The following description sets forth certain general terms and provisions
of the Bonds to which any Prospectus Supplement will relate. The particular
terms of the Bonds offered by any Prospectus Supplement will be described in
such Prospectus Supplement.
The Bonds will constitute one or more new series of the Company's First
and Refunding Mortgage Bonds issued under an Indenture of Mortgage dated
November 1, 1935, as supplemented and modified by eighty-five supplemental
indentures and as to be supplemented by one or more additional supplemental
indentures to be entered into in connection with each new series of Bonds. The
Indenture of Mortgage and all such supplemental indentures are collectively
referred to as the Mortgage. The Indenture of Mortgage, the eighty-five
supplemental indentures and a form of supplemental indenture are Exhibits to
the Registration Statement of which this Prospectus is a part. The Trustee
under the Mortgage is The Chase Manhattan Bank (the Trustee).
The statements herein concerning the Bonds and the Mortgage are merely
descriptive and do not purport to be complete. They are qualified in their
entirety by express reference to the cited Sections and Articles of the
Mortgage. Terms defined in the Mortgage are used herein as so defined.
General
Unless otherwise provided in the applicable Prospectus Supplement, the
Bonds will be issuable only in fully registered form, without coupons, in
denominations of $1,000 and integral multiples thereof and will be exchangeable
for a like aggregate principal amount of Bonds of other authorized
denominations of the same series. No charge will be made for any transfer or
exchange of the Bonds, but the Company may require payment of a sum sufficient
to cover any stamp tax or other governmental charge incident thereto. Transfers
and exchanges of the Bonds may be made at The Chase Manhattan Bank, 55 Water
Street, New York, New York 10041.
4
<PAGE>
Interest, Maturity and Payment
The Bonds will bear interest from their issue date at the rate shown in
the Prospectus Supplement relating thereto, payable semiannually on the
interest payment dates shown in such Prospectus Supplement. The Bonds will
mature on the date shown in the accompanying Prospectus Supplement. Interest
will be paid to the persons in whose names the Bonds are registered at the
close of business on the 15th day (whether or not a business day) of the
calendar month next preceding the interest payment date, except for defaulted
interest and except for unmatured accrued interest on Bonds called for
redemption on a date other than an interest payment date. Principal of,
premium, if any, and interest on the Bonds are payable at the office or agency
of the Trustee in New York City.
Reference is made to the Prospectus Supplement relating to a particular
series of the Bonds offered thereby for the following terms of that series of
Bonds: (i) its specific designation, (ii) the aggregate principal amount; (iii)
the date or dates on which the series will mature, (iv) the rate per annum at
which the series will bear interest, (v) if applicable, the date or dates after
which and the price or prices at which such series may, pursuant to any
optional or mandatory redemption provisions, be redeemed at the option of the
Company or of the holder thereof and the other terms and provisions of such
optional or mandatory redemption and (vi) any other special terms.
Security and Priority
The Bonds are to be secured, together with all other bonds now or
hereafter issued under the Mortgage, by a direct lien on all public utility
property now or hereafter owned by the Company but subject to the operation of
the release provisions (which in effect permit the disposition of all property
in excess of the amount used under the Mortgage). Prior lien debt on
after-acquired property may be extended or refunded under the same lien until
property is certified under the Mortgage, but not thereafter except upon
consent of the holders of 60% in the amount of the bonds issued and outstanding
under the Mortgage. (See Sections 4.03 and 4.07.) There are excepted from the
lien all cash, securities, accounts receivable, agreements, leases, materials
and supplies, automotive equipment, timber, coal and other minerals under the
mortgaged land, and certain other assets. (See Preamble to the Mortgage, Part
VIII and Fourteenth Supplemental Indenture, Part VI.) In case of a merger,
consolidation or sale of substantially all of the assets of the Company, the
lien may be limited to the system of the Company at that time. (See Sections
8.02, 8.03 and 8.04.)
The lien of the Mortgage is, subject to due recording and filing, a first
lien junior only to (i) statutory liens and equitable priorities for taxes,
services, materials and supplies and (ii) pre-existing liens on after-acquired
property.
Other than the security afforded by the lien of the Mortgage and described
under the "Description of the Bonds" herein, there are no provisions of the
Mortgage which afford holders of the Bonds protection in the event of a highly
leveraged transaction involving the Company. Such a transaction would require
regulatory approval, however, and management of the Company believes such
approval would be unlikely in a transaction that would result in the Company
having a highly leveraged capital structure.
Issuance of Additional Bonds
Additional bonds of any series may be issued from time to time without
limit in aggregate amount, but not in excess of the amount authorized by the
Company's stockholder (currently $5 billion), on the following bases:
1. Up to 60% of the net amount of additional property certified under
Section 2.03 and subject to no senior lien except permitted liens and liens
securing refundable debt, but only if net earnings (in 12 consecutive
months within the 15 next previous months), after depreciation but before
income taxes, are at least twice the annual interest charges on all bonds
then outstanding or applied for and any indebtedness secured by senior
liens. But no more than 20% of total net earnings may be from nonoperating
income, principally Allowance for Funds Used During Construction, and the
aggregate of maintenance and repairs and depreciation shall be not less
than 15% of total operating revenues (less (i) the cost of electricity
purchased for resale and (ii) rentals paid by the Company for electric
properties) for such period. Refundable debt may not exceed 60% of the
property securing it or 15% of the bonds outstanding or issuable and is
deducted from the amount of bonds otherwise issuable. (See Sections 2.02,
2.03, 2.08, 2.09 and 4.16.)
2. Up to the amount of bonds or refundable debt retired (unless from
certain funds). (See Sections 2.02, 2.04, 2.05, 2.08 and 2.09.)
3. Up to the amount of cash deposited for the purpose, but only if net
earnings are as required in 1 above. The cash may be withdrawn in the
amount of the bonds issuable as shown in 1 and 2 above, without regard to
earnings. This is the only restriction on the disposition of proceeds of
additional bonds. (See Sections 2.02, 2.06 and 2.07.)
5
<PAGE>
The Bonds will be issued on the basis set forth in 1 or 2 above.
Release and Substitution of Security
Property may be released upon filing a Credit Certificate or upon
depositing cash in the amount of its value (which then may be withdrawn upon
filing a Credit Certificate). The Credit Certificate supplies evidence, between
formal certifications under Section 2.03, that credits previously established
on the basis of property acquisition or bonds or refundable debt retirement
have not been exhausted by showing that the retirements not yet certified are
less than the balance of such credits that would remain unused after the action
then sought (including in such credits the amount of additional property not
formally certified and the amount of release moneys, etc., then held by the
Trustee). Instead of cash, purchase money bonds or bonds of the United States
or any State or a political subdivision thereof may be deposited. Special
provisions are made for property and cash subject to senior liens and for
refundable debt held in pledge. (See Section 2.09(q), Article 5 and Article 6.)
Modification
With the consent of the holders of 75% in amount of all bonds issued and
outstanding under the Mortgage (including at least 60% in amount of each
affected series), any default may be waived except for a default in the payment
of principal or interest at their due dates and the Mortgage may be changed in
any way except to extend the due dates of principal or interest or reduce the
amount of principal, interest or premium, if any. (See Section 7.24 and Article
14.)
Default and Action by the Trustee
An event of default includes default in payment of principal of any series
of bonds issued under the Mortgage, continuous default for 90 days in payment
of interest on any series of such bonds (except that such default need only
continue for 30 days in the case of certain series), default for 90 days after
notice in the performance of any other covenant in the Mortgage and the
occurrence of certain bankruptcy-related events. (See Section 7.01.) During an
event of default, the Trustee must use the same degree of care and skill as a
prudent man in the conduct of his own affairs. Subject to that standard, a
majority in amount of bonds issued under the Mortgage is necessary to require
the Trustee to take action, and the Trustee is entitled first to be indemnified
to its satisfaction. (See Section 7.20 and Third Supplemental Indenture
Sections 7.02 and 7.03.) The Company is required to report annually to the
Trustee that it is not in default under the Mortgage. (See Third Supplemental
Indenture Section 6.03.)
Listing
The Bonds will not be listed on any national or regional securities
exchange.
DESCRIPTION OF THE SENIOR NOTES AND SENIOR SUBORDINATED NOTES
The Senior Notes and Senior Subordinated Notes will constitute either
senior or subordinated unsecured debt of the Company and will be issued in one
or more series under (i) an indenture (the Senior Indenture) for Senior Notes
or (ii) an indenture (the Senior Subordinated Indenture) for Senior
Subordinated Notes. The Senior Indenture and the Senior Subordinated Indenture
(collectively, the Indentures) are to be dated as of the date of first issue of
Senior Notes or Senior Subordinated Notes, as the case may be, and are to be
entered into between the Company and The Chase Manhattan Bank, as Trustee (the
Trustee). Forms of the Indentures are filed as exhibits to the Registration
Statement of which this Prospectus is a part. The statements under this heading
do not purport to be complete and are subject to the detailed provisions of,
and are qualified in their entirety by reference to, the applicable Indenture
or Indentures and are summaries which make use of terms defined in one or both
Indentures.
General
Neither Indenture limits the aggregate principal amount of the Senior
Notes or Senior Subordinated Notes issuable thereunder or of any particular
series of Senior Notes or Senior Subordinated Notes. The Senior Notes and
Senior Subordinated Notes of any series need not be issued at the same time or
bear interest at the same rate or mature on the same date. Reference is made to
the Prospectus Supplement for the following terms of any particular series of
Offered Senior Notes or Offered Senior Subordinated Notes (collectively, the
Offered Securities): (i) the title of such Senior Notes or Senior Subordinated
Notes; (ii) any limit on the aggregate principal amount of such Senior Notes or
Senior Subordinated Notes or the series of which they are a part; (iii) the
date or dates on which the principal of any of such Senior Notes or Senior
Subordinated Notes will be payable or the method by which such date or dates
will be determined; (iv) the rate or rates at which
6
<PAGE>
any of such Senior Notes or Senior Subordinated Notes will bear interest, if
any, or the method by which such rate or rates will be determined, and the date
or dates from which any such interest will accrue; (v) the Interest Payment
Dates on which any such interest will be payable and the Regular Record Date,
if any, for any such interest payable on any Interest Payment Date; (vi) if
applicable, whether the interest payment periods may be extended by the Company
and, if so, the duration of any such extension; (vii) the place or places where
the principal of and any premium and interest on any of such Senior Notes or
Senior Subordinated Notes will be payable; (viii) the obligation, if any, of
the Company to redeem or purchase any of such Senior Notes or Senior
Subordinated Notes pursuant to any sinking fund, purchase fund or analogous
provision or at the option of the Holder thereof and the terms and conditions
on which any of such Senior Notes or Senior Subordinated Notes may be redeemed
or purchased pursuant to such obligation; (ix) the denominations in which any
of such Senior Notes or Senior Subordinated Notes will be issuable, if other
than denominations of $1,000 or any integral multiple thereof; (x) the terms
and conditions, if any, on which any of such Senior Notes or Senior
Subordinated Notes may be redeemed at the option of the Company; (xi) if
applicable, the fact that the terms of the applicable Indenture which are
described below under the caption "Defeasance and Covenant Defeasance" will not
apply to any of such Senior Notes or Senior Subordinated Notes; (xii) the
currency, currencies or currency units in which the principal of and any
premium and interest on any of such Senior Notes or Senior Subordinated Notes
will be payable, if other than U.S. dollars, and the manner of determining the
equivalent thereof in U.S. dollars for any purpose; (xiii) the portion of the
principal amount of any of such Senior Notes or Senior Subordinated Notes that
will be payable upon declaration of acceleration of the Maturity thereof, if
other than the entire principal amount thereof; (xiv) whether any of such
Senior Notes or Senior Subordinated Notes will be issuable in whole or in part
in the form of one or more Global Securities and, if so, the identity of the
depositary (the Depositary) for any such Global Security and any provisions
regarding the transfer, exchange or legending of any such Global Security if
different from those described below under the caption Global Securities; (xv)
any addition to, change in or deletion from the Events of Default or covenants
provided for with respect to any of such Senior Notes or Senior Subordinated
Notes and any change in the right of the Trustee or the Holders to declare the
principal amount of any of such Senior Notes or Senior Subordinated Notes due
and payable; (xvi) any index or formula used to determine the amount of
principal of or any premium or interest on any of such Senior Notes or Senior
Subordinated Notes and the manner of determining any such amounts; (xvii) if
the principal amount payable at the Stated Maturity of any of such Senior Notes
or Senior Subordinated Notes will not be determinable as of any one or more
dates prior to the Stated Maturity, the amount which will be deemed to be such
principal amount as of any such date for any purpose, including the principal
amount thereof which will be due and payable upon any Maturity other than the
Stated Maturity (or the manner of determining any such deemed principal
amount); (xviii) the subordination of such Senior Notes or Senior Subordinated
Notes to any other indebtedness of the Company, including other series of
Senior Subordinated Notes (for series of Senior Subordinated Notes only); and
(xix) any other terms of such Senior Notes or Senior Subordinated Notes.
Unless otherwise indicated in the Prospectus Supplement relating thereto,
the Senior Notes or Senior Subordinated Notes will be issued only in fully
registered certificated or book-entry form, without coupons, in denominations
of $1,000 or any integral multiple thereof. Notes issued in book-entry form
will be represented by certificates deposited with, or on behalf of, the
Depositary, and registered in the name of the Depositary's nominee. No service
charge will be made for any registration of transfer or exchange of Senior
Notes or Senior Subordinated Notes, but the Company may require payment of a
sum sufficient to cover any tax or other governmental charge payable in
connection therewith.
Unless otherwise indicated in the Prospectus Supplement relating thereto,
the principal of and any premium and interest on the Offered Debt Securities
will be payable, and the Offered Debt Securities will be exchangeable and
transfers thereof will be registrable, at The Chase Manhattan Bank, 55 Water
Street, New York, New York 10041 and payment of any interest due on any Offered
Debt Security will be made to the Person in whose name such Offered Debt
Security is registered at the close of business on the Regular Record Date for
such interest.
If the Senior Notes or Senior Subordinated Notes of any series (or any
series and specified tenor) are to be redeemed, the Company will not be
required to (i) issue, register the transfer of, or exchange any Senior Note or
Senior Subordinated Note of that series (or of that series and specified tenor,
as the case may be) during a period beginning at the opening of business 15
days before the day of mailing of a notice of redemption of any such Debt
Security that may be selected for redemption and ending at the close of
business on the day of such mailing or (ii) register the transfer of or
exchange any Debt Security so selected for redemption, in whole or in part,
except the unredeemed portion of any such Debt Security being redeemed in part.
Senior Notes or Senior Subordinated Notes, including Original Issue
Discount Securities, may be offered and sold at a substantial discount below
their principal amount. Special Federal income tax and other considerations, if
any, applicable thereto will be described in the applicable Prospectus
Supplement.
7
<PAGE>
Except as otherwise described in the applicable Prospectus Supplement, the
covenants contained in either Indenture would not afford any Holders of Senior
Notes or Senior Subordinated Notes issued thereunder protection in the event of
a highly leveraged transaction involving the Company. Such a transaction would
require regulatory approval, however, and management of the Company believes
such approval would be unlikely in a transaction that would result in the
Company having a highly leveraged capital structure.
Global Securities
Some or all of the Senior Notes or Senior Subordinated Notes of a series
may be represented in whole or in part by one or more Global Securities that
will be deposited with or on behalf of one or more Depositaries.
The specific terms of the depositary arrangement with respect to any
Senior Notes or Senior Subordinated Notes of a series will be described in the
Prospectus Supplement relating thereto. The Company anticipates that the
following provisions will apply to all depositary arrangements.
Unless otherwise specified in the related Prospectus Supplement, Senior
Notes or Senior Subordinated Notes which are to be represented by a Global
Security to be deposited with or on behalf of a Depositary will be represented
by a Global Security registered in the name of such Depositary or its nominee.
Upon the issuance of a Global Security in registered form, the Depositary for
such Global Security will credit, on its book-entry registration and transfer
system, the respective principal amounts of the Senior Notes or Senior
Subordinated Notes represented by such Global Security to the accounts of
institutions that have accounts with such Depositary or its nominee
(Participants). The accounts to be credited will be designated by the
underwriters or agents of such Senior Notes or Senior Subordinated Notes or by
the Company, if such Senior Notes or Senior Subordinated Notes are offered and
sold directly by the Company. Ownership of beneficial interests in such Global
Securities will be limited to Participants or persons that may hold interests
through Participants. Ownership of beneficial interests by participants in such
Global Securities will be shown on, and the transfer of any such ownership
interest will be effected only through, records maintained by the Depositary or
its nominee for such Global Security. Ownership of beneficial interests in
Global Securities by persons that hold through Participants will be effected
only through records maintained by such Participants. The laws of some
jurisdictions require that certain purchasers of securities take physical
delivery of such securities in definitive form. Such limits and such laws may
impair the ability to transfer beneficial interests in a Global Security.
So long as the Depositary for a Global Security, or its nominee, is the
registered owner of such Global Security, such Depositary or such nominee, as
the case may be, will be considered the sole owner or Holder of the Senior
Notes or Senior Subordinated Notes represented by such Global Security for all
purposes under the applicable Indenture. Except as set forth below, owners of
beneficial interests in the Global Security will not be entitled to have the
Senior Notes or Senior Subordinated Notes represented by such Global Security
registered in their names, will not receive or be entitled to receive physical
delivery of the Senior Notes or Senior Subordinated Notes in definitive form
and will not be considered the owners or Holders thereof under the applicable
Indenture.
Payment of principal of and any premium and interest on Senior Notes or
Senior Subordinated Notes registered in the name of or held by a Depositary or
its nominee will be made in immediately available funds to the Depositary or
its nominee, as the case may be, as the registered owner or the Holder of the
Global Security representing such Senior Notes or Senior Subordinated Notes.
None of the Company, the Trustee, any Paying Agent or the Security Registrar
for such Senior Notes or Senior Subordinated Notes will have any responsibility
or liability for any aspect of the records relating to, or payments made on
account of, beneficial ownership interests in a Global Security for such Senior
Notes or Senior Subordinated Notes or for maintaining, supervising or reviewing
any records relating to such beneficial ownership interests.
The Company expects that a Depositary for Senior Notes or Senior
Subordinated Notes of a series, upon receipt of any payment of principal or any
premium or interest in respect of a Global Security, will credit immediately
Participants' accounts with payment in amounts proportionate to their
respective beneficial interests in the principal amount of such Global Security
as shown on the records of such Depositary. The Company also expects that
payments by Participants to owners of beneficial interests in such Global
Security held through such Participants will be governed by standing
instructions and customary practices, as is now the case with securities held
for the accounts of customers registered in "street name", and will be the
responsibility of such Participants.
A Global Security may not be transferred in whole or in part except by the
Depositary for such Global Security 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
or a nominee of such successor Depositary. If a Depositary for Senior Notes or
Senior Subordinated Notes of a series is at any time unwilling or unable to
continue as
8
<PAGE>
Depositary and a successor Depositary is not appointed by the Company within 90
days, the Company will issue Senior Notes or Senior Subordinated Notes in
definitive registered form in exchange for the Global Security or Global
Securities representing such Senior Notes or Senior Subordinated Notes. In
addition, the Company may at any time determine not to have any Senior Notes or
Senior Subordinated Notes represented by one or more Global Securities and, in
such event, will issue Senior Notes or Senior Subordinated Notes in definitive
registered form in exchange for the Global Securities representing such Senior
Notes or Senior Subordinated Notes. In any such instance, an owner of a
beneficial interest in a Global Security will be entitled to physical delivery
in definitive form of Senior Notes or Senior Subordinated Notes of the series
represented by such Global Security equal in principal amount to such
beneficial interest and to have such Senior Notes or Senior Subordinated Notes
registered in its name.
Redemption
Any terms and conditions for the optional or mandatory redemption of any
Offered Debt Securities will be set forth in the applicable Prospectus
Supplement. Except as otherwise provided in the applicable Prospectus
Supplement with respect to Senior Notes or Senior Subordinated Notes that are
redeemable at the option of the Holder, Senior Notes or Senior Subordinated
Notes will be redeemable by the Company, subject to the subsequent sentence,
only upon notice mailed not less than 30 nor more than 60 days prior to the
date fixed for redemption. With certain exceptions, a notice of redemption at
the option of the Company may state that such redemption will be conditional
upon receipt by the Trustee or any applicable Paying Agent or Agents, on or
prior to the date fixed for such redemption, of money sufficient to pay the
principal of and any premium and interest on such Senior Notes or Senior
Subordinated Notes and that if such money has not been so received, such notice
will be of no force and effect and the Company will not be required to redeem
such Senior Notes or Senior Subordinated Notes.
Consolidation, Merger, etc.
Each Indenture provides that the Company may, without the consent of any
Holders of the Senior Notes or Senior Subordinated Notes Outstanding
thereunder, consolidate or merge with or into any other Person or Persons, or
convey or transfer its properties and assets as an entirety or substantially as
an entirety to any Person, provided that the successor Person, if any, assumes
by a supplemental indenture the Company's obligations under such Indenture and
such Senior Notes or Senior Subordinated Notes and the Company delivers an
Officers' Certificate and an Opinion of Counsel to the Trustee stating that all
conditions precedent in such Indenture relating to the transaction have been
complied with. Upon the assumption by the successor Person of the Company's
obligations under the applicable Indenture and the Senior Notes or Senior
Subordinated Notes issued thereunder, and the satisfaction of any other
condition precedent provided for in such Indenture, the successor Person will
succeed to and be substituted for the Company under such Indenture and the
Company will be relieved of its obligations under such Indenture and the Senior
Notes or Senior Subordinated Notes issued thereunder.
Amendments of Indenture; Waiver
Each Indenture provides that modifications and amendments thereof may be
made by the Company and the Trustee with the consent of the Holders of not less
than a majority in aggregate principal amount of the Outstanding Senior Notes
or Outstanding Senior Subordinated Notes of each series affected thereby;
provided, however, that no such modification or amendment may, without the
consent of the Holder of each Outstanding Senior Note or Outstanding Senior
Subordinated Note affected thereby, (a) change the Stated Maturity of the
principal of, or any instalment of principal of or interest on, any Senior Note
or Senior Subordinated Note; (b) reduce the principal amount of or any premium
or the rate of interest on any Senior Note or Senior Subordinated Note or
reduce the amount of principal of any Original Issue Discount Security or any
other Senior Note or Senior Subordinated Note which would be due and payable
upon acceleration of the Maturity thereof; (c) change the place of payment of
principal of or any premium or interest on any Senior Note or Senior
Subordinated Note; (d) impair the right to institute suit for the enforcement
of any such payment on any Senior Note or Senior Subordinated Note on or after
the Stated Maturity thereof (or date of redemption); (e) reduce the percentage
in principal amount of Outstanding Senior Notes or Outstanding Senior
Subordinated Notes of any series, the consent of whose Holders is required for
modification or amendment of such Indenture, for waiver of compliance with
certain provisions of such Indenture or for waiver of certain defaults or (f)
with certain exceptions, modify the above provisions or the sections of the
applicable Indenture governing waiver of certain covenants and past defaults.
Notwithstanding the foregoing, under certain limited circumstances and only
upon the fulfillment of certain conditions, modifications and amendments of the
relevant Indenture may be made by the Company and the Trustee without the
consent of any Holders of the Senior Notes or Senior Subordinated Notes issued
thereunder.
9
<PAGE>
The Holders of not less than a majority in aggregate principal amount of
the Outstanding Senior Notes or Outstanding Senior Subordinated Notes of any
series may waive, insofar as that series is concerned, compliance by the
Company with certain restrictive provisions of the Indenture under which such
Senior Notes or Senior Subordinated Notes were issued. The Holders of not less
than a majority in aggregate principal amount of the Outstanding Senior Notes
or Outstanding Senior Subordinated Notes of any series may waive any past
default under the Indenture under which such Senior Notes or Senior
Subordinated Notes were issued with respect to that series except a default in
the payment of principal of, or any premium or interest on any Senior Note or
Senior Subordinated Note of such series or in respect of a covenant or
provision under such Indenture which cannot be modified or amended without the
consent of the Holder of each Outstanding Senior Note or Outstanding Senior
Subordinated Note of such series affected thereby.
The Senior Subordinated Indenture may not be amended to alter the
subordination of any of the Outstanding Senior Subordinated Notes without the
written consent of each holder of Senior Indebtedness then outstanding that
would be adversely affected thereby.
Events of Default
The following will be Events of Default under each Indenture with respect
to Senior Notes or Senior Subordinated Notes of any series issued thereunder
(unless inapplicable to the particular series, specifically modified or deleted
as a term of such series or otherwise modified or deleted in an indenture
supplemental to such Indenture): (a) failure to pay principal of or any premium
on any Senior Note or Senior Subordinated Note of that series when due, (b)
failure for 60 days to pay any interest on any Senior Note or Senior
Subordinated Note of that series when due, (c) failure to make any sinking fund
payment when and as due by the terms of any Senior Note or Senior Subordinated
Note of that series, continued for 60 days, (d) failure to perform any covenant
of the Company in the applicable Indenture (other than a covenant that has
expressly been included in such Indenture solely for the benefit of series of
Senior Notes or Senior Subordinated Notes other than that series), continued
for 90 days after written notice has been given by the Trustee or the Holders
of at least 33% in principal amount of the Outstanding Senior Notes or
Outstanding Senior Subordinated Notes of that series (unless such time period
is extended by the Trustee or by the Trustee and the Holders of a principal
amount of Senior Notes or Senior Subordinated Notes of that series not less
than the principal amount of Senior Notes or Senior Subordinated Notes the
Holders of which had given such notice of default; provided, however, that the
Trustee, or the Trustee and such Holders, as the case may be, will be deemed to
have agreed to such an extension if corrective action is initiated, and is
being diligently pursued, by the Company, as further provided in the applicable
Indenture), (e) certain events in bankruptcy, insolvency or reorganization and
(f) any other Event of Default provided with respect to Senior Notes or Senior
Subordinated Notes of that series. No Event of Default with respect to a
particular series of Senior Notes or Senior Subordinated Notes issued under an
Indenture necessarily constitutes an Event of Default with respect to any other
series of Senior Notes or Senior Subordinated Notes issued thereunder.
If an Event of Default with respect to Senior Notes or Senior Subordinated
Notes of any series at the time Outstanding occurs and is continuing, then the
Trustee or the Holders of not less than 33% in principal amount of the
Outstanding Senior Notes or Outstanding Senior Subordinated Notes of that
series may, by a notice in writing to the Company (and to the Trustee if given
by Holders), declare to be immediately due and payable the principal amount
(or, if any Senior Notes or Senior Subordinated Notes of that series are
Original Issue Discount Securities, such portion of the principal amount as may
be specified in the terms of the series) of all Senior Notes or Senior
Subordinated Notes of that series. However, at any time after such a
declaration of acceleration with respect to Senior Notes or Senior Subordinated
Notes of any series has been made and before a judgment or decree for payment
of the money due has been obtained by the Trustee, the Event of Default giving
rise to such declaration of acceleration will, without further act, be deemed
to have been waived, and such declaration will be deemed to have been rescinded
and annulled, if (a) the Company has paid or deposited with the Trustee a sum
sufficient to pay all overdue interest on the Senior Notes or Senior
Subordinated Notes of such series, the principal of and any premium on the
Senior Notes or Senior Subordinated Notes of such series which have become due
otherwise than by such declaration of acceleration and interest thereon at the
rate or rates prescribed therefor in such Senior Notes or Senior Subordinated
Notes, interest on overdue interest at the rate or rates prescribed therefor in
the Senior Notes or Senior Subordinated Notes of such series (to the extent
that payment of such interest is lawful), and all amounts due to the Trustee
under the applicable Indenture and (b) all Events of Default with respect to
the Senior Notes or Senior Subordinated Notes of such series (other than the
nonpayment of the principal of the Senior Notes or Senior Subordinated Notes of
such series that has become due solely by such declaration of acceleration)
have been cured or waived as provided in the applicable Indenture. Reference is
made to the Prospectus Supplement relating to any series of Senior Notes or
Senior Subordinated
10
<PAGE>
Notes which are Original Issue Discount Securities for the particular
provisions relating to acceleration of a portion of the principal amount of
such Original Issue Discount Securities upon the occurrence of an Event of
Default and the continuation thereof.
Subject to the provisions of each Indenture relating to the duties of the
Trustee in case an Event of Default occurs and is continuing, each Indenture
provides that the Trustee will be under no obligation to exercise any of its
rights or powers under such Indenture at the request or direction of any of the
Holders unless such Holders shall have offered to the Trustee reasonable
security or indemnity. Subject to such provisions for security and
indemnification of the Trustee and certain other rights of the Trustee, the
Holders of a majority in principal amount of the Outstanding Senior Notes or
Outstanding Senior Subordinated Notes of any series have the right to direct
the time, method and place of conducting any proceedings for any remedy
available to the Trustee or exercising any trust or power conferred on the
Trustee with respect to the Senior Notes or Senior Subordinated Notes of that
series.
No Holder of any Senior Note or Senior Subordinated Note of any series
will have any right to institute any proceeding with respect to the Indenture
under which such Senior Note or Senior Subordinated Note was issued or for any
remedy thereunder unless such Holder has previously given to the Trustee
written notice of a continuing Event of Default with respect to the Senior
Notes or Senior Subordinated Notes of that series and unless the Holders of not
less than a majority in principal amount of the Outstanding Senior Notes or
Outstanding Senior Subordinated Notes of that series have made such written
request, and offered reasonable indemnity, to the Trustee to institute such
proceeding as trustee under the applicable Indenture, and the Trustee has not
received from the Holders of a majority in principal amount of the Outstanding
Senior Notes or Outstanding Senior Subordinated Notes of that series a
direction inconsistent with such request and has failed to institute such
proceeding within 60 days after receipt of such notice and offer of indemnity.
Notwithstanding the foregoing, the Holder of any Senior Note or Senior
Subordinated Note will have an absolute and unconditional right to receive
payment of the principal of and any premium and, subject to certain limitations
specified in the applicable Indenture, interest on such Senior Note or Senior
Subordinated Note on the Stated Maturity thereof (or, in the case of
redemption, on the Redemption Date) and to institute suit for the enforcement
of any such payment.
The Company is required to furnish annually to the Trustee for each
Indenture a statement by certain officers of the Company to the effect that to
the best of their knowledge the Company is not in default in the performance
and observance of any terms, provisions or conditions of such Indenture or, if
there has been such a default, specifying each such default and the status
thereof.
Defeasance and Covenant Defeasance
Unless otherwise provided in the Prospectus Supplement for a series of
Senior Notes or Senior Subordinated Notes, the Company may cause itself
(subject to the terms of the Indenture under which such Senior Notes or Senior
Subordinated Notes were issued) (i) to be discharged from any and all
obligations with respect to any Senior Notes or Senior Subordinated Notes or
series of Senior Notes or Senior Subordinated Notes (except for certain
obligations to register the transfer or exchange of such Senior Notes or Senior
Subordinated Notes, to replace such Senior Notes or Senior Subordinated Notes
if stolen, lost or mutilated, to maintain paying agencies and to hold money for
payment in trust) (Defeasance) and/or (ii) to be released from any covenants
expressly established in respect of any Senior Notes or Senior Subordinated
Notes or series of Senior Notes or Senior Subordinated Notes (Covenant
Defeasance), in either case on and after the date the conditions set forth in
such Indenture are satisfied. Such conditions include the deposit with the
Trustee, in trust for such purpose, of money and/or U.S. Government Obligations
(as such term is defined in the applicable Indenture), which through the
scheduled payment of principal and interest in respect thereof in accordance
with their terms will provide money in an amount sufficient to pay the
principal of and any premium and interest on such Senior Notes or Senior
Subordinated Notes on the Stated Maturity of such payments or upon redemption,
as the case may be, in accordance with the terms of the applicable Indenture
and such Senior Notes or Senior Subordinated Notes.
Defeasance by the Company with respect to any Senior Notes or Senior
Subordinated Notes of a series is permitted under certain circumstances under
each Indenture notwithstanding the Company's prior Covenant Defeasance with
respect to Senior Notes or Senior Subordinated Notes of that series. Following
a Defeasance, payment of any of such Senior Notes or Senior Subordinated Notes
may not be accelerated because of an Event of Default (as defined in the
applicable Indenture). Following a Covenant Defeasance, payment of Senior Notes
or Senior Subordinated Notes may not be accelerated under the applicable
Indenture by reference to the covenants noted under clause (ii) above. However,
if such an acceleration were to occur, the realizable value at the acceleration
date of the money and U.S. Government Obligations in the defeasance trust could
be less than the principal and interest then due on such Senior Notes or Senior
Subordinated Notes, in that
11
<PAGE>
the required deposit in the defeasance trust is based upon scheduled cash flows
rather than market value, which will vary depending upon interest rates and
other factors.
Under current Federal income tax law, the Defeasance contemplated in the
preceding paragraphs would be treated as a taxable exchange of the relevant
Senior Notes or Senior Subordinated Notes in which Holders of Senior Notes or
Senior Subordinated Notes would recognize gain or loss. In addition,
thereafter, the amount, timing and character of amounts that Holders would be
required to include in income might be different from that which would be
includible in the absence of such Defeasance. Prospective investors are urged
to consult their own tax advisors as to the specific consequences of a
Defeasance, including the applicability and effect of tax laws other than the
Federal income tax law.
Under current Federal income tax law, unless accompanied by other changes
in the terms of the Senior Notes or Senior Subordinated Notes, Covenant
Defeasance should not be treated as a taxable exchange.
Subordination of Senior Subordinated Notes
The Senior Subordinated Indenture provides that, unless otherwise provided
in the Prospectus Supplement for a series of Senior Subordinated Notes, the
Senior Subordinated Notes of any series will be expressly subordinate in right
of payment, to the extent and in the manner set forth in the Senior
Subordinated Indenture, to all Senior Indebtedness. The Senior Subordinated
Indenture defines "Senior Indebtedness" to mean, with respect to any series of
Senior Subordinated Notes, the principal of, and premium, if any, and interest
on and any other payment due pursuant to any of the following, whether
outstanding at the date of execution of the Senior Subordinated Indenture or
thereafter incurred, created or assumed: (a) all indebtedness of the Company
evidenced by notes, debentures, bonds or other securities sold by the Company
for money or other obligations for money borrowed, (b) all indebtedness of
others of the kinds described in the preceding clause (i) assumed by or
guaranteed in any manner by the Company or (ii) in effect guaranteed by the
Company through an agreement to purchase, contingent or otherwise, and (c) all
renewals, extensions or refundings of indebtedness of the kinds described in
either of the preceding clauses (a) and (b) unless, in the case of any
particular indebtedness, renewal, extension or refunding, the instrument
creating or evidencing the same or the assumption or guarantee of the same
expressly provides that such indebtedness, renewal, extension or refunding is
not superior in right of payment to or is pari passu with or subordinate to
such Senior Subordinated Notes.
In the event, with certain exceptions specified in the Indenture, (a) of
any payment by, or distribution of assets of, the Company to creditors upon any
dissolution, winding up, liquidation or reorganization of the Company, whether
in bankruptcy, insolvency or other proceedings, or (b) that (i) a default
(continuing beyond any period of grace) shall have occurred and be continuing
with respect to the payment of principal, interest or any other monetary
amounts due and payable on any Senior Indebtedness or (ii) the maturity of any
Senior Indebtedness shall have been accelerated because of a default with
respect to such Senior Indebtedness, then the Holders of all Senior
Indebtedness shall first be entitled to receive payment, in the case of (a)
above, of all amounts due or to become due upon all Senior Indebtedness, and,
in the case of (b) above, of all amounts due thereon, or provision shall be
made for such payment in money or money's worth, before the Holders of the
Senior Subordinated Notes are entitled to receive a payment on account of the
principal of or premium, if any, or interest on such Senior Subordinated Notes.
On December 31, 1997, approximately $4.0 billion of Senior Indebtedness
was outstanding. The Senior Subordinated Indenture does not restrict the amount
of Senior Indebtedness that the Company may incur.
CONCERNING THE TRUSTEE
The Chase Manhattan Bank is the Trustee under the Mortgage and each of the
Indentures. The Chase Manhattan Bank is also the trustee under the Company's
Indenture dated as of April 1, 1988 and its Subordinated Note Indenture, dated
as of August 1, 1995. The Chase Manhattan Bank is the agent for the Company's
$500 million credit facility, under which its commitment is $46 million.
The occurrence of a default under the Mortgage, the Senior Subordinated
Indenture, the Senior Indenture with respect to one or more series of Debt
Securities could create a conflicting interest for the Trustee under the Trust
Indenture Act of 1939, as amended (the 1939 Act). If such default has not been
cured or waived within 90 days after the Trustee has or acquires a conflicting
interest, the Trustee generally would be required by the 1939 Act to eliminate
such conflicting interest or resign as Trustee with respect to the Debt
Securities issued under the Mortgage, the Senior Indenture or the Senior
Subordinated Indenture. In the event of the Trustee's resignation, the Company
shall promptly appoint a successor Trustee with respect to the affected
securities.
12
<PAGE>
PLAN OF DISTRIBUTION
The Offered Securities may be sold (a) through underwriters or dealers,
(b) directly to a limited number of purchasers or to a single purchaser or (c)
through agents.
The Prospectus Supplement will set forth the manner and terms of the
offering of the related Offered Securities, including the name or names of any
underwriters, dealers or agents, the purchase price or prices of the Offered
Securities, the proceeds to the Company from the sale of the Offered
Securities, any initial public offering price, any underwriting discount or
commission and any discounts, concessions or commissions allowed or reallowed
or paid by any underwriter to other dealers. Any initial public offering price
and any discounts, concessions or commissions allowed or reallowed or paid to
dealers may be changed from time to time. Unless otherwise indicated in the
Prospectus Supplement, any agent will be acting on a best efforts basis for the
period of its appointment.
The Company may agree to indemnify the underwriters, dealers and agents
named in a Prospectus Supplement against certain liabilities, including
liabilities under the Securities Act.
Unless otherwise set forth in the Prospectus Supplement, the obligations
of any underwriter or underwriters to purchase the related Offered Securities
will be subject to certain conditions precedent and such underwriter or
underwriters with respect to the sale of such Offered Securities will be
obligated to purchase all of such Offered Securities if any are purchased.
The Prospectus Supplement will set forth any planned listing of the
related Offered Securities on a national securities exchange and indicates
whether any underwriters, dealers or agents intend to make a market in the
Offered Securities as permitted by applicable laws and regulations. No
assurance can be given as to the liquidity of or the trading market for the
Offered Securities.
EXPERTS
The financial statements included in the Company's Annual Report on Form
10-K, which is incorporated in this Prospectus by reference, have been audited
by Deloitte & Touche LLP, independent auditors, as stated in their report in
such Form 10-K. Such financial statements have been so incorporated in reliance
upon the report of Deloitte & Touche LLP, also incorporated herein by
reference, which report is given upon their authority as experts in accounting
and auditing.
Legal conclusions relating to the Company's franchises and title to its
properties in the Company's Annual Report on Form 10-K and legal conclusions
under Description of the Bonds and Description of the Senior Notes and Senior
Subordinated Notes, including limitations upon the Company's issuance of bonds,
have been reviewed by Hunton & Williams, Richmond, Virginia, except that, with
respect to the Bonds, insofar as matters relating to title to properties are
governed by the laws of West Virginia, they have been reviewed by Jackson &
Kelly, Charleston, West Virginia. The statements are included on the authority
of such firms, respectively, as experts.
LEGAL OPINIONS
Certain legal matters in connection with the Debt Securities will be
passed on for the Company by Hunton & Williams, Richmond, Virginia and, as to
West Virginia law in connection with the Bonds, by Jackson & Kelly, Charleston,
West Virginia, and for any underwriters, dealers or agents, by McGuire, Woods,
Battle & Boothe LLP, Richmond, Virginia, which also performs certain legal
services for Dominion Resources and its affiliates on other matters.
13
<PAGE>
PART II.
INFORMATION NOT REQUIRED IN PROSPECTUS
ITEM 14. Other Expenses of Issuance and Distribution (Estimated):
<TABLE>
<S> <C>
SEC Filing Fee* ............................... $129,311
Trustee Fees .................................. 45,000
Printing and Engraving Costs .................. 70,000
Legal Fees and Expenses ....................... 60,000
Accounting Fees ............................... 30,000
Recording Taxes, Fees, and Expenses** ......... 75,000
Rating Agency Fees ............................ 80,000
Miscellaneous ................................. 10,000
--------
Total ....................................... $499,311
</TABLE>
- ---------
* Actual. The appropriate registration fees were paid in connection with File
No. 33-59581 and are being carried forward pursuant to Rule 429.
** Applicable to issuance of Bonds only
ITEM 15. Indemnification of Directors and Officers.
Article VI of the registrant's Restated Articles of Incorporation, as
amended, provides that the registrant shall indemnify its directors and
officers to the fullest extent permitted by law. Article 10, Chapter 9, Title
13.1 of the Code of Virginia of 1950, as amended, permits indemnification of
directors and officers but does not permit indemnification against willful
misconduct or a knowing violation of the criminal law. The registrant maintains
director and officer liability insurance protecting the registrant's directors
and officers against certain claims resulting from their service in such
capacities, and the registrant from the liability assumed by it in accordance
with Article VI of its Restated Articles of Incorporation, as amended. The
current policy covers all occurrences during the period ending September 1,
1999, and is expected to be renewed in the ordinary course of business. In
general, the policy provides coverage for any misstatement, misleading
statement, act, omission, neglect or breach of duty committed or attempted by a
director or officer, but excludes, among other things, acts of deliberate
dishonesty and acts for personal profit or advantage to which the director or
officer was not entitled.
ITEM 16. Exhibits.
Exhibits filed herewith:
<TABLE>
<CAPTION>
EXHIBIT
NUMBER
- --------------
<S> <C>
1(i) Form of Underwriting Agreement relating to the Bonds.
1(ii) Form of Underwriting Agreement relating to the Senior Notes.
1(iii) Form of Underwriting Agreement relating to the Senior Subordinated Notes.
1(iv) Form of Calculation Agent Agreement relating to the Senior Notes.
1(v) Form of Calculation Agent Agreement relating to the Senior Subordinated Notes.
4(i) Form of Supplemental Indenture from registrant to The Chase Manhattan Bank relating to the Bonds.
4(ii) Form of Senior Indenture from registrant to The Chase Manhattan Bank relating to the Senior Notes.
4(iii) Form of Senior Subordinated Indenture from registrant to The Chase Manhattan Bank relating to the Senior
Subordinated Notes.
5 Opinion of Hunton & Williams.
12 Computation of Ratio of Earnings to Fixed Charges.
23(i) Consent of Hunton & Williams (included in Exhibit 5).
23(ii) Consent of Jackson & Kelly.
23(iii) Consent of Deloitte & Touche LLP.
24 Power of Attorney (included herein).
25(i) Statement of Eligibility of the Trustee on Form T-1 of The Chase Manhattan Bank relating to the Bonds.
25(ii) Statement of Eligibility of the Trustee on Form T-1 of The Chase Manhattan Bank relating to the Senior
Notes.
25(iii) Statement of Eligibility of the Trustee on Form T-1 of The Chase Manhattan Bank relating to the Senior
Subordinated Notes.
</TABLE>
II-1
<PAGE>
Exhibits incorporated herein by reference:
<TABLE>
<S> <C>
4(iv) Indenture of Mortgage of the Company, dated November 1, 1935, as supplemented and modified by fifty-eight
Supplemental Indentures (Exhibit 4(ii), Form 10-K for the fiscal year ended December 31, 1985, File No.
1-2255, incorporated by reference); Fifty-Ninth Supplemental Indenture (Exhibit 4(ii), Form 10-Q for the
quarter ended March 31, 1986, File No. 1-2255, incorporated by reference); Sixtieth Supplemental Indenture
(Exhibit 4(ii), Form 10-Q for the quarter ended September 30, 1986, File No. 1-2255, incorporated by
reference); Sixty-First Supplemental Indenture (Exhibit 4(ii), Form 8-K, dated June 2, 1987, File No. 1-2255,
incorporated by reference); Sixty-Second Supplemental Indenture (Exhibit 4(i), Form 8-K, dated November 3,
1987, File No. 1-2255, incorporated by reference); Sixty-Third Supplemental Indenture (Exhibit 4(i), Form
8-K, dated June 8, 1988, File No. 1-2255, incorporated by reference); Sixty-Fourth Supplemental Indenture
(Exhibit 4(i), Form 8-K, dated February 8, 1989, File No. 1-2255, incorporated by reference); Sixty-Fifth
Supplemental Indenture (Exhibit 4(i), Form 8-K, dated June 22, 1989, File No. 1-2255, incorporated by
reference); Sixty-Sixth Supplemental Indenture (Exhibit 4(i), Form 8-K, dated February 27, 1990, File No.
1-2255, incorporated by reference); Sixty-Seventh Supplemental Indenture (Exhibit 4(i), Form 8-K, dated
April 2, 1991, File No. 1-2255, incorporated by reference); Sixty-Eighth Supplemental Indenture (Exhibit
4(i)), Sixty-Ninth Supplemental Indenture (Exhibit 4(ii)) and Seventieth Supplemental Indenture (Exhibit 4(iii),
Form 8-K, dated February 25, 1992, File No. 1-2255, incorporated by reference); Seventy-First Supplemental
Indenture (Exhibit 4(i)) and Seventy-Second Supplemental Indenture (Exhibit 4(ii), Form 8-K, dated July 7,
1992, File No. 1-2255, incorporated by reference); Seventy-Third Supplemental Indenture (Exhibit 4(i), Form
8-K, dated August 6, 1992, File No. 1-2255, incorporated by reference); Seventy-Fourth Supplemental
Indenture (Exhibit 4(i), Form 8-K, dated February 10, 1993, File No. 1-2255, incorporated by reference);
Seventy-Fifth Supplemental Indenture (Exhibit 4(i), Form 8-K, dated April 6, 1993, File No. 1-2255,
incorporated by reference); Seventy-Sixth Supplemental Indenture (Exhibit 4(i), Form 8-K, dated April 21,
1993, File No. 1-2255, incorporated by reference); Seventy-Seventh Supplemental Indenture (Exhibit 4(i),
Form 8-K, dated June 8, 1993, File No. 1-2255, incorporated by reference); Seventy-Eighth Supplemental
Indenture (Exhibit 4(i), Form 8-K, dated August 10, 1993, File No. 1-2255, incorporated by reference);
Seventy-Ninth Supplemental Indenture (Exhibit 4(i), Form 8-K, dated August 10, 1993, File No. 1-2255,
incorporated by reference); Eightieth Supplemental Indenture (Exhibit 4(i), Form 8-K, dated October 12, 1993,
File No. 1-2255, incorporated by reference); Eighty-First Supplemental Indenture (Exhibit 4(iii), Form 10-K
for the fiscal year ended December 31, 1993, File No. 1-2255, incorporated by reference); Eighty-Second
Supplemental Indenture (Exhibit 4(i), Form 8-K, dated January 18, 1994, File No. 1-2255, incorporated by
reference); Eighty-Third Supplemental Indenture (Exhibit 4(i), Form 8-K, dated October 19, 1994, File No.
1-2255, incorporated by reference); Eighty-Fourth Supplemental Indenture (Exhibit 4(i), Form 8-K, dated
March 22, 1995, File No. 1-2255, incorporated by reference; and Eighty-Fifth Supplemental Indenture (Exhibit
4(i), Form 8-K, dated February 20, 1997, File No. 1-2255, incorporated by reference).
</TABLE>
ITEM 17. Undertakings.
(a) The undersigned registrant hereby undertakes:
(1) To file, during any period in which offers or sales are being made of
the securities registered hereby, a post-effective amendment to this
registration statement:
(i) To include any prospectus required by section 10(a)(3) of the
Securities Act;
(ii) To reflect in the prospectus any facts or events arising after
the effective date of this registration statement (or the most recent
post-effective amendment thereof) which, individually or in the
aggregate, represent a fundamental change in the information set forth in
this registration statement. Notwithstanding the foregoing, any increase
or decrease in volume of securities offered (if the total dollar value of
securities offered would not exceed that which was registered) and any
deviation from the low or high end of the estimated maximum offering
range may be reflected in the form of prospectus filed with the
Commission pursuant to Rule 424(b) if, in the aggregate, the changes in
volume and price represent no more than a 20 percent change in the
maximum aggregate offering price set forth in the "Calculation of
Registration Fee" table in the effective registration statement;
(iii) To include any material information with respect to the plan of
distribution not previously disclosed in this registration statement or
any material change to such information in this registration statement;
provided, however, that the undertakings set forth in paragraphs (i) and
(ii) above do not apply if the information required to be included in a
post-effective amendment by those paragraphs is contained in periodic
reports filed by the registrant pursuant to section 13 or section 15(d)
of the Exchange Act that are incorporated by reference in this
registration statement.
II-2
<PAGE>
(2) That, for the purpose of determining any liability under the
Securities Act, each such post-effective amendment shall be deemed to be a
new registration statement relating to the securities offered herein, and
the offering of such securities at that time shall be deemed to be the
initial bona fide offering thereof.
(3) To remove from registration by means of a post-effective amendment
any of the securities being registered which remain unsold at the
termination of the offering.
(4) If the registrant is a foreign private issuer, to file a
post-effective amendment to the registration statement to include any
financial statements required by Rule 3-19 of Regulation S-X at the start
of any delayed offering or throughout a continuous offering. Financial
statements and information otherwise required by Section 10(a)(3) of the
Securities Act need not be furnished, provided that the registrant includes
in the prospectus, by means of a post-effective amendment, financial
statements required pursuant to this paragraph (a)(4) and other information
necessary to ensure that all other information in the prospectus is at
least as current as the date of those financial statements. Notwithstanding
the foregoing, with respect to registration statements on Form F-3, a
post-effective amendment need not be filed to include financial statements
and information required by Section 10(a)(3) of the Securities Act or Rule
3-19 of Regulation S-X if such financial statements and information are
contained in periodic reports filed with or furnished to the Commission by
the registrant pursuant to section 13 or section 15(d) of the Exchange Act
that are incorporated by reference in the Form F-3.
(b) The undersigned registrant hereby undertakes that, for the purposes of
determining any liability under the Securities Act, each filing of the
registrant's annual report pursuant to section 13(a) or section 15(d) of the
Exchange Act that is incorporated by reference in this registration statement
shall be deemed to be a new registration statement relating to the securities
offered herein, and the offering of such securities at that time shall be
deemed to be the initial bona fide offering thereof.
(h) Insofar as indemnification for liabilities arising under the
Securities Act may be permitted to directors, officers and controlling persons
of the registrant pursuant to the indemnification provisions described in Item
15 above or in contractual arrangements pursuant thereto, or otherwise, the
registrant has been advised that in the opinion of the Commission such
indemnification is against public policy as expressed in the Securities Act and
is, therefore, unenforceable. In the event that a claim for indemnification
against such liabilities (other than the payment by the registrant of expenses
incurred or paid by a director, officer or controlling person of the registrant
in the successful defense of any action, suit or proceeding) is asserted by
such director, officer or controlling person in connection with the securities
being registered, the registrant will, unless in the opinion of its counsel the
matter has been settled by controlling precedent, submit to a court of
appropriate jurisdiction the question whether such indemnification by it is
against public policy as expressed in the Securities Act and will be governed
by the final adjudication of such issue.
II-3
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the registrant
certifies that it has reasonable grounds to believe that it meets all of the
requirements for filing on form S-3 and has duly caused this Registration
Statement or amendment thereto to be signed on its behalf by the undersigned,
thereunto duly authorized, in the City of Richmond and Commonwealth of
Virginia, on the 27th day of February, 1998.
Dated: February 27, 1998VIRGINIA ELECTRIC AND POWER COMPANY
By /s/ Thos. E. Capps
-----------------------------
(Thos. E. Capps,
Chairman of the
Board of Directors)
POWER OF ATTORNEY
Pursuant to the requirements of the Securities Act of 1933, as amended,
this Registration Statement has been signed by the following persons on
February 27, 1998 in the capacities indicated. Each person below hereby
constitutes and appoints each Agent for Service named in this Registration
Statement, his or her true and lawful attorney and agent, to do any and all
acts and execute any and all instruments for him or her in his or her name in
the capacity indicated below, which said attorneys and agents, or any of them,
may deem necessary or advisable to enable Virginia Electric and Power Company
to comply with the Securities Act of 1933, and any rules, regulations and
requirements of the Securities and Exchange Commission in connection with this
Registration Statement, including specifically, but without limitation, power
and authority to sign amendments (including post-effective amendments) and any
related Registration Statement, or amendment thereto, filed pursuant to Rule
462(b) promulgated under the Securities Act of 1933, as amended.
<TABLE>
<CAPTION>
Signature Title
- ------------------------------------- ------------------------------------
<S> <C>
/s/ THOS. E. CAPPS Chairman of the Board of Directors
- ------------------------------------- and Director
Thos. E. Capps
/s/ JOHN B. ADAMS, JR. Director
- -------------------------------------
John B. Adams, Jr.
/s/ NORMAN ASKEW President (Chief Executive Officer)
- --------------------------------------and Director
Norman Askew
/s/ JOHN B. BERNHARDT Director
- -------------------------------------
John B. Bernhardt
/s/ JAMES F. BETTS Director
- -------------------------------------
James F. Betts
Director
- -------------------------------------
Jean E. Clary
/s/ JOHN W. HARRIS Director
- -------------------------------------
John W. Harris
/s/ BENJAMIN J. LAMBERT, III Director
- -------------------------------------
Benjamin J. Lambert, III
</TABLE>
II-4
<PAGE>
<TABLE>
<CAPTION>
Signature Title
- ---------------------------------- ------------------------------------------
<S> <C>
/s/ RICHARD L. LEATHERWOOD Director
- ----------------------------------
Richard L. Leatherwood
/s/ HARVEY L. LINDSAY, JR. Director
- ----------------------------------
Harvey L. Lindsay, Jr.
/s/ KENNETH A. RANDALL DIRECTOR
- ----------------------------------
KENNETH A. RANDALL
/S/ WILLIAM T. ROOS Director
- ----------------------------------
William T. Roos
Director
- ----------------------------------
Frank S. Royal
/s/ JUDITH WARRICK SACK Director
- ----------------------------------
Judith Warrick Sack
/s/ S. DALLAS SIMMONS Director
- ----------------------------------
S. Dallas Simmons
/s/ ROBERT H. SPILMAN Director
- ----------------------------------
Robert H. Spilman
/s/ WILLIAM G. THOMAS Director
- ----------------------------------
William G. Thomas
/s/ DAVID A. WOLLARD Director
- ----------------------------------
David A. Wollard
/s/ M.S. BOLTON, JR. Controller (Principal Accounting Officer)
- ----------------------------------
M. S. Bolton, Jr.
</TABLE>
II-5
Exhibit 1(i)
VIRGINIA ELECTRIC AND POWER COMPANY
First and Refunding Mortgage Bonds
Series _, ____%, Due __________
FORM OF UNDERWRITING AGREEMENT
[Date]
[Name of Underwriter]
as Representative for
the Several Underwriters
named in Schedule II hereto
[Address of Underwriter]
Ladies and Gentlemen:
The undersigned, Virginia Electric and Power Company (the Company),
hereby confirms its agreement with the several Underwriters named in Schedule II
hereto (the Agreement) with respect to the sale to the several Underwriters of
certain of its First and Refunding Mortgage Bonds (the Mortgage Bonds) specified
in Schedule I hereto (the Mortgage Bonds so specified being referred to herein
as the Bonds), and the public offering thereof by the several Underwriters, upon
the terms specified in Schedule I hereto.
1. Underwriters and Representative. The term "Underwriters" as used
herein shall be deemed to mean the several persons, firms or corporations
(including the Representative hereinafter mentioned) named in Schedule II
hereto, and the term "Representative" as used herein shall be deemed to mean the
representative to whom this Agreement is addressed, who by signing this
Agreement represents that it has been authorized by the other Underwriters to
execute this Agreement on their behalf and to act for them in the manner herein
provided. If there shall be only one person, firm or corporation named in
Schedule II hereto, the term "Underwriters" and the term "Representative" as
used herein shall mean that person, firm or corporation. All obligations of the
Underwriters hereunder are several and not joint. Any
<PAGE>
action under or in respect of this Agreement taken by the Representative will be
binding upon all the Underwriters.
2. Description of the Bonds. Schedule I specifies the aggregate
principal amount of the Bonds, the initial public offering price of the Bonds,
the purchase price to be paid by the Underwriters, and any concession from the
initial public offering price to be allowed to dealers or brokers, and sets
forth the date, time and manner of delivery of the Bonds and payment therefor.
Schedule I also specifies (to the extent not set forth in the Registration
Statement and Prospectus referred to below) the terms and provisions for the
purchase of such Bonds. The Bonds will be issued under the Company's Indenture
of Mortgage dated November 1, 1935 between the Company and The Chase Manhattan
Bank, as Trustee (the Trustee), as supplemented and modified to the date
hereof and as to be supplemented by a Supplemental Indenture substantially in
the form contained as an exhibit to the Registration Statement referred to below
(the Supplemental Indenture).
3. Representations and Warranties of the Company. The Company
represents and warrants to, and agrees with, the Underwriters that:
(a) A registration statement, No. 33-_______ on Form S-3 for the
registration of the Mortgage Bonds under the Securities Act of
1933, as amended (the Securities Act), heretofore filed with
the Securities and Exchange Commission (the Commission), a
copy of which as so filed has been delivered to you, has
become effective. The registration statement, including all
exhibits thereto, as amended through the date hereof, is
hereinafter referred to as the "Registration Statement"; the
prospectus relating to the Mortgage Bonds included in the
Registration Statement, which prospectus is now proposed to be
supplemented by a supplement relating to the Bonds to be filed
with the Commission under the Securities Act, as so
supplemented, is hereinafter referred to as the "Prospectus".
As used herein, the terms "Registration Statement",
"prospectus" and "Prospectus" include all documents (including
any Current Report on Form 8-K) incorporated therein by
reference, and shall include any documents (including any
Current Report on Form 8-K) filed after the date of such
Registration Statement, prospectus or Prospectus and
incorporated therein by reference from the date of filing of
such incorporated documents (collectively, the Incorporated
Documents).
(b) No order suspending the effectiveness of the Registration
Statement or otherwise preventing or suspending the use of the
Prospectus has been issued by the Commission and is in effect
and no proceedings for that purpose are pending before or, to
the knowledge of the Company, threatened by the Commission.
The Registration Statement and the Prospectus comply in all
material respects with the provisions of the Securities Act,
the Securities Exchange Act of 1934 (the Securities Exchange
Act) and the Trust Indenture Act of 1939, as amended (the
Trust Indenture Act), and the rules,
- 2 -
<PAGE>
regulations and releases of the Commission thereunder (the
Rules and Regulations), and, on the date hereof, neither the
Registration Statement nor the Prospectus contain an untrue
statement of a material fact or omit to state a material fact
required to be stated therein or necessary to make the
statements therein not misleading, and, on the Closing Date,
the Registration Statement and the Prospectus (including any
amendments and supplements thereto) will conform in all
respects to the requirements of the Securities Act, the Trust
Indenture Act and the Rules and Regulations, and neither of
such documents will include any untrue statement of a material
fact or omit to state any material fact required to be stated
therein or necessary to make the statements therein not
misleading; provided, that the foregoing representations and
warranties in this paragraph (b) shall not apply to statements
in or omissions from the Registration Statement or the
Prospectus made in reliance upon information furnished herein
or in writing to the Company by the Underwriters or on the
Underwriters' behalf for use in the Registration Statement or
Prospectus; and provided, further, that the foregoing
representations and warranties are given on the basis that any
statement contained in an Incorporated Document shall be
deemed not to be contained in the Registration Statement or
Prospectus if the statement has been modified or superseded by
any statement in a subsequently filed Incorporated Document or
in the Registration Statement or Prospectus or in any
amendment or supplement thereto.
(c) Deloitte & Touche LLP, who have examined certain of the
Company's financial statements filed with the Commission and
incorporated by reference in the Registration Statement [and
the audited results for ____ for which financial statements
have not yet been released], are independent public
accountants as required by the Securities Act and the rules
and regulations of the Commission thereunder.
(d) Except as reflected in, or contemplated by, the Registration
Statement and Prospectus, since the respective most recent
dates as of which information is given in the Registration
Statement and Prospectus, there has not been any material
adverse change in the condition of the Company, financial or
otherwise. The Company has no material contingent financial
obligation that is not disclosed in each of the Registration
Statement and Prospectus.
(e) The Company has taken all corporate action necessary to be
taken by it to authorize the execution by it of this Agreement
and the performance by it of all obligations on its part to be
performed hereunder; and the consummation of the transactions
herein contemplated and the fulfillment of the terms hereof
will not result in a breach of any of the terms or provisions
of, or constitute a default under, any indenture, mortgage,
deed of trust, or other agreement or instrument to which the
Company is now a party, or the charter of the Company, as
amended, or any order, rule
- 3 -
<PAGE>
or regulation applicable to the Company of any federal or
state regulatory board or body or administrative agency having
jurisdiction over the Company or over its property.
(f) The Bonds, upon issuance thereof, will conform in all respects
to the terms of the relevant order or orders of the State
Corporation Commission of Virginia (the Virginia Commission)
now or hereafter in effect with respect to the Bonds.
(g) The Company has complied and will comply with all of the
provisions of Florida H.B. 1771, codified as Section 517.075
of the Florida statutes, and all regulations promulgated
thereunder related to issuers of securities doing business
with Cuba.
4. Public Offering. On the basis of the representations and warranties
herein contained, but subject to the terms and conditions in this Agreement set
forth, the Company agrees to sell to each of the several Underwriters, and each
Underwriter agrees, severally and not jointly, to purchase from the Company, at
the price, place and time hereinafter specified, the principal amount of the
Bonds set forth opposite the name of such Underwriter in Schedule II hereto. The
several Underwriters agree to make a public offering of their respective Bonds
specified in Schedule II hereto at the initial public offering price specified
in Schedule I hereto. It is understood that after such initial offering the
several Underwriters reserve the right to vary the offering price and further
reserve the right to withdraw, cancel or modify such offering without notice.
5. Time and Place of Closing. Delivery of the Bonds to, and payment
therefor by, the Representative for the accounts of the several Underwriters
shall be made at the time, place and date specified in Schedule I or such other
time, place and date as the Representative and the Company may agree upon in
writing, and subject to the provisions of Section 10 hereof. The hour and date
of such delivery and payment are herein called the "Closing Date". Unless
otherwise specified in Schedule I hereto, payment for the Bonds shall be made to
the Company or its order by check or checks in New York Clearing House funds at
the Closing Date. The Bonds shall be in the form of definitive fully registered
Bonds without coupons in such authorized denominations and registered in such
names as the Representative shall specify in writing not later than 12 Noon, New
York time, on the third business day prior to the Closing Date. For the purpose
of expediting the checking of such Bond certificates by the Representative, the
Company agrees to make the certificates available to the Representative for such
purpose not later than 12 Noon, New York time, on the last business day before
the Closing Date, at the place specified in Schedule I.
- 4 -
<PAGE>
6. Covenants of the Company. The Company agrees that:
(a) The Company, at or prior to the Closing Date, will deliver to
the Representative conformed copies of the Registration
Statement as originally filed, including all exhibits, any
related preliminary prospectus supplement, the Prospectus and
all amendments and supplements to each such document, in each
case as soon as available and in such quantities as are
reasonably requested by the Representative.
(b) The Company will pay all expenses in connection with (i) the
preparation and filing by it of the Registration Statement and
Prospectus and the printing of this Agreement and the
Supplemental Indenture, (ii) the preparation, issue and
delivery of certificates for the Bonds, (iii) any fees and
expenses of the Trustee and (iv) the printing and delivery to
the Underwriters in reasonable quantities of copies of the
Registration Statement and the Prospectus (each as originally
filed and as subsequently amended). The Company also will pay
all taxes, if any, except transfer taxes, on the issue of the
Bonds. In addition, the Company will pay the reasonable fees
and disbursements of Underwriters' counsel, McGuire, Woods,
Battle & Boothe, L.L.P., in connection with the qualification
of the Bonds under state securities or blue sky laws or
investment laws (if and to the extent such qualification is
required by the Underwriters or the Company).
(c) If, at any time when a prospectus relating to the Bonds is
required to be delivered under the Securities Act, any event
occurs as a result of which the Prospectus as then amended or
supplemented would include an untrue statement of a material
fact or omit to state any material fact necessary to make the
statements therein, in the light of the circumstances under
which they were made, not misleading, or if it is necessary at
any time to amend the Prospectus to comply with the Securities
Act, the Company promptly will (i) notify the Representative
to suspend solicitation of purchases of the Bonds and (ii) at
its expense, prepare and file with the Commission an amendment
or supplement which will correct such statement or omission or
an amendment which will effect such compliance. In case any
Underwriter is required to deliver a prospectus in connection
with the sale of any Bonds after the expiration of the period
specified in the preceding sentence, the Company, upon the
request of the Representative, will furnish to the
Representative, at the expense of such Underwriter, a
reasonable quantity of a supplemented or amended prospectus,
or supplements or amendments to the Prospectus, complying with
Section 10(a) of the Securities Act. During the period
specified in the second sentence of this paragraph, the
Company will continue to prepare and file with the Commission
on a timely basis all documents or amendments required under
the Securities Exchange Act and the applicable rules and
regulations of the Commission thereunder; provided, that the
Company shall not file such documents or amendments without
also furnishing copies thereof to the Representative and
McGuire, Woods, Battle & Boothe, L.L.P.
- 5 -
<PAGE>
(d) The Company will advise the Representative promptly of any
proposal to amend or supplement the Registration Statement or
the Prospectus and will afford the Representative a reasonable
opportunity to comment on any such proposed amendment or
supplement; and the Company will also advise the
Representative promptly of the filing of any such amendment or
supplement and of the institution by the Commission of any
stop order proceedings in respect of the Registration
Statement or of any part thereof and will use its best efforts
to prevent the issuance of any such stop order and to obtain
as soon as possible its lifting, if issued.
(e) The Company will make generally available to its security
holders, as soon as it is practicable to do so, an earnings
statement of the Company (which need not be audited) in
reasonable detail, covering a period of at least 12 months
beginning within three months after the effective date of the
Registration Statement, which earnings statement shall satisfy
the requirements of Section 11(a) of the Securities Act.
(f) For a period of five years following the Closing Date, the
Company will deliver to the Representative, as soon as
practicable after the end of each fiscal year, a balance sheet
of the Company as of the end of such year and statements of
income and earnings reinvested in business for such year, all
as certified by independent public or certified public
accountants, and will deliver to the Representative upon
request, as soon as practicable after the end of each
quarterly period, statements of income and earnings reinvested
in business for the 12-month period ending with the end of
such quarterly period.
(g) The Company will use its best efforts promptly to do and
perform all things to be done and performed by it hereunder
prior to the Closing Date and to satisfy all conditions
precedent required of it to the delivery by it of the Bonds.
(h) The Company will furnish such proper information as may be
lawfully required and otherwise cooperate in qualifying the
Bonds for offer and sale under the securities or blue sky laws
of such states as the Representative may designate; provided,
however, that the Company shall not be required in any state
to qualify as a foreign corporation, or to file a general
consent to service of process, or to submit to any
requirements which it deems unduly burdensome.
(i) Fees and disbursements of McGuire, Woods, Battle & Boothe,
L.L.P. who are acting as counsel for the Underwriters
(exclusive of fees and disbursements of such counsel which are
to be paid as set forth in paragraph 6(b)), shall be paid by
the Underwriters; provided, however, that if this Agreement is
terminated in accordance with the provisions of Sections 7 or
8 hereof, the Company shall reimburse the Representative for
the account of the Underwriters for the amount of such fees
and disbursements.
- 6 -
<PAGE>
7. Conditions of Underwriters' Obligations; Termination by the
Underwriters.
(a) The obligations of the Underwriters to purchase and pay for
the Bonds shall be subject to the following conditions:
(i) No stop order suspending the effectiveness of the
Registration Statement shall be in effect on the
Closing Date and no proceedings for that purpose shall
be pending before, or to the knowledge of the Company
threatened by, the Commission on such date. The
Representative shall have received, prior to payment
for the Bonds, a certificate dated the Closing Date
and signed by the President or any Vice President of
the Company to the effect that no such stop order is
in effect and that no proceedings for such purpose are
pending before or, to the knowledge of the Company,
threatened by the Commission.
(ii) At the Closing Date an order or orders of the Virginia
Commission permitting the issuance and sale of the
Bonds substantially in accordance with the terms and
conditions hereof shall be in full force and effect
and shall contain no provision unacceptable to the
Representative or the Company (but all provisions of
such order or orders heretofore entered are deemed
acceptable to the Representative and the Company, and
all provisions of such order or orders hereafter
entered shall be deemed acceptable to the
Representative and the Company unless within 24 hours
after receiving a copy of any such order either shall
give notice to the other to the effect that such order
contains an unacceptable provision).
(iii) At the Closing Date the Representative shall receive,
on behalf of the several Underwriters, the opinions of
McGuire, Woods, Battle & Boothe, L.L.P., Hunton &
Williams and Jackson & Kelly, substantially in the
forms attached hereto as Schedules III through V.
(iv) On the date of this Agreement and on the Closing Date,
the Representative shall have received from Deloitte &
Touche LLP a letter addressed to the Representative,
dated the date of this Agreement and the Closing Date,
respectively, (A) confirming that they are independent
public accountants as required by the Securities Act;
(B) stating in effect that, in their opinion, the
audited financial statements included in or
incorporated by reference in the Registration
Statement and the Prospectus and audited by them as
stated in their report incorporated by reference in
the Registration Statement (the Audited Financial
Statements), comply as to form in all material
respects with the applicable accounting requirements
adopted pursuant to the Securities Exchange Act; (C)
stating, in effect, that on the basis of a reading of
the minutes of the
- 7 -
<PAGE>
meetings of the Board of Directors of the Company and
of committees of the Board since the end of the period
covered by the Audited Financial Statements, a reading
of the unaudited financial statements incorporated by
reference in the Prospectus (if any), of the unaudited
statement of income for any interim period for which
information is included in the Prospectus under the
caption "Selected Financial Information" or any
section updating such information, and of the latest
available unaudited financial statements of the
Company covering a period of twelve months ending
after the end of the period covered by the Audited
Financial Statements (if any), and inquiries of
officials of the Company responsible for financial and
accounting matters (which procedures did not
constitute an audit made in accordance with generally
accepted auditing standards), nothing came to their
attention that caused them to believe that such
unaudited financial statements incorporated by
reference in the Prospectus are not in conformity with
generally accepted accounting principles applied on a
basis substantially consistent with that of the
Audited Financial Statements; and (D) stating, in
effect, that on the basis of more limited procedures
than those set forth in the foregoing clause (C),
consisting merely of the reading of the minutes
referred to in said clause and inquiries of officials
of the Company responsible for financial and
accounting matters, nothing came to their attention at
a date not more than five business days prior to the
date of such letter that caused them to believe that
(1) at such date there was any decrease in common
stockholder's equity or any increase in funded debt of
the Company or any decrease in net assets as compared
with the amounts shown in the balance sheet included
in the most recent financial statements incorporated
by reference, or (2) for the period from the date of
the most recent unaudited financial statements
included or incorporated by reference in the
Registration Statement and the Prospectus to a date
not more than five business days prior to the date of
such letter there were any decreases, as compared with
the corresponding period in the preceding year, in the
operating revenues, operating income or net income,
except (with respect to (1) or (2)) in all instances
for changes or decreases that the Registration
Statement discloses have occurred or may occur;
provided, however, that said letters may vary from the
requirements specified in clause (D) hereof in such
manner as the Representative in its sole discretion
may deem to be acceptable. Said letters shall also
state that the dollar amounts, percentages and other
financial information (in each case to the extent that
such dollar amounts, percentages and other financial
information, either directly or by analysis or
computation, are derived from the general accounting
records of the Company) that appear (1) in the
Prospectus under the captions "Selected Financial
Information" and "Other Selected Data" and under any
caption contained in a supplement to the Prospectus
updating such dollar amounts, percentages and other
financial information (limited to total assets and
utility plant expenditures), (2) in the Company's most
recent
- 8 -
<PAGE>
Annual Report on Form 10-K under the caption "Selected
Financial Data" or (3) in the Registration Statement
under the caption "Ratio of Earnings to Fixed Charges"
have been compared with the general accounting records
of the Company and such dollar amounts, percentages and
financial information have been found to be in
agreement with the accounting records of the Company
and the computations have been found to be
arithmetically correct. Each such letter shall relate
to the Registration Statement and Prospectus as amended
or supplemented to the date of each such letter.
(v) Subsequent to the execution of this Agreement and prior
to the Closing Date, (A) except as reflected in, or
contemplated by, the Registration Statement and the
Prospectus, there shall not have occurred (1) any
change in the Mortgage Bonds of the Company (other than
a decrease in the aggregate principal amount thereof
outstanding), (2) any material adverse change in the
general affairs, financial condition or earnings of the
Company (whether or not arising in the ordinary course
of business) or (3) any material transaction entered
into by the Company other than a transaction in the
ordinary course of business, the effect of which in
each such case in the judgment of the Representative is
so material and so adverse that it makes it inadvisable
to proceed with the public offering or delivery of the
Bonds on the terms and in the manner contemplated in
the Prospectus and this Agreement, or (B) there shall
not have occurred (1) a downgrading in the rating
accorded the Company's Mortgage Bonds by any
"nationally recognized statistical rating organization"
(as that term is defined by the Commission for purposes
of Rule 436(g)(2) under the Securities Act), (2) any
general suspension of trading in securities on the New
York Stock Exchange or any limitation on prices for
such trading or any restrictions on the distribution of
securities established by the New York Stock Exchange
or by the Commission or by any federal or state agency
or by the decision of any court, (3) a banking
moratorium declared either by federal or New York State
authorities or (4) any outbreak or escalation of major
hostilities in which the Unites States is involved, any
declaration of war by the United States Congress or any
other substantial national or international calamity or
crisis resulting in the declaration of a national
emergency, the effect of which outbreak, escalation,
declaration, calamity or crisis, in the reasonable
judgment of the Representative, makes it impracticable
or inadvisable to proceed with the public offering or
delivery of the Bonds on the terms and in the manner
contemplated in the Prospectus and in this Agreement.
(vi) On the Closing Date, the representations and warranties
of the Company in this Agreement shall be true and
correct as if made on and as of such date, and the
Company shall have performed all obligations and
satisfied all conditions required of it under this
Agreement; and, at the Closing Date, the
- 9 -
<PAGE>
Representative shall have received a certificate to
such effect signed by the President or any Vice
President of the Company.
(vii) All legal proceedings to be taken in connection with
the issuance and sale of the Bonds shall have been
satisfactory in form and substance to McGuire, Woods,
Battle & Boothe, L.L.P.
(b) In case any of the conditions specified above in paragraph
7(a) shall not have been fulfilled, this Agreement may be
terminated by the Representative upon mailing or delivering
written notice thereof to the Company; provided, however, that
in case the conditions specified in subparagraphs 7(a)(v) and
(vi) shall not have been fulfilled, this Agreement may not be
so terminated by the Representative unless Underwriters who
have agreed to purchase in the aggregate 50% or more of the
aggregate principal amount of the Bonds shall have consented
to such termination and the aforesaid notice shall so state.
Any such termination shall be without liability of any party
to any other party except as otherwise provided in Section 9
and paragraphs 6(b), 6(i) and 7(c) hereof.
(c) If this Agreement shall be terminated by the Representative
pursuant to paragraph (b) above or because of any failure or
refusal on the part of the Company to comply with the terms or
to fulfill any of the conditions of this Agreement, or if for
any reason the Company shall be unable to perform its
obligations under this Agreement, then in any such case, the
Company will reimburse the Underwriters, severally, for all
out-of-pocket expenses (in addition to the fees and
disbursements of their counsel as provided in paragraph 6(i))
reasonably incurred by such Underwriters in connection with
this Agreement or the offering contemplated hereunder and,
upon such reimbursement, the Company shall be absolved from
any further liability hereunder, except as provided in
paragraph 6(b) and Section 9.
8. Conditions of the Obligation of the Company. The obligation of the
Company to deliver the Bonds shall be subject to the conditions set forth in the
first sentence of subparagraph 7(a)(i) and in subparagraph 7(a)(ii). In case
said conditions shall not have been fulfilled, this Agreement may be terminated
by the Company by mailing or delivering written notice thereof to the
Representative. Any such termination shall be without liability of any party to
any other party except as otherwise provided in paragraphs 6(b), 6(i), 9 and
10(c) hereof.
9. Indemnification. (a) The Company agrees to indemnify and hold
harmless each Underwriter and each person who controls any Underwriter within
the meaning of Section 15 of the Securities Act or Section 20(a) of the
Securities Exchange Act, against any and all losses, claims, damages or
liabilities, joint or several, to which they or any of them may become subject
under the Securities Act, the Securities Exchange Act, or any other statute or
common law and
- 10 -
<PAGE>
to reimburse each such Underwriter and controlling person for any legal or other
expenses (including, to the extent hereinafter provided, reasonable counsel
fees) incurred by them in connection with investigating any such losses, claims,
damages, or liabilities, or in connection with defending any actions, insofar as
such losses, claims, damages, liabilities, expenses or actions arise out of or
are based upon any untrue statement or alleged untrue statement of a material
fact contained in the Registration Statement or the Prospectus, or in either
such document as amended or supplemented (if any amendments or supplements
thereto shall have been furnished), or any Preliminary Prospectus (if and when
used prior to the effective date of the Registration Statement), or the omission
or alleged omission to state therein a material fact required to be stated
therein or necessary to make the statements therein not misleading; provided
that the foregoing agreement, insofar as it relates to any Preliminary
Prospectus, shall not inure to the benefit of any Underwriter (or to the benefit
of any person who controls such Underwriter) on account of any losses, claims,
damages or liabilities arising out of the sale of any of the Bonds by such
Underwriter to any person if it shall be established that a copy of the
Prospectus, excluding any documents incorporated by reference (as supplemented
or amended, if the Company shall have made any supplements or amendments which
have been furnished to the Representative), shall not have been sent or given by
or on behalf of such Underwriter to such person at or prior to the written
confirmation of the sale to such person in any case where such delivery is
required by the Securities Act, if the misstatement or omission leading to such
loss, claim, damage or liability was corrected in the Prospectus (excluding any
documents incorporated by reference) as amended or supplemented, and such
correction would have cured the defect giving rise to such loss, claim, damage,
or liability; and provided further, however, that the indemnity agreement
contained in this paragraph 9(a) shall not apply to any such losses, claims,
damages, liabilities, expenses or actions arising out of or based upon any such
untrue statement or alleged untrue statement, or any such omission or alleged
omission, if such statement or omission was made in reliance upon information
furnished herein or otherwise in writing to the Company by or on behalf of any
Underwriter for use in the Registration Statement or any amendment thereto, in
the Prospectus or any supplement thereto, or in any Preliminary Prospectus. The
indemnity agreement of the Company contained in this paragraph (a) and the
representations and warranties of the Company contained in Section 3 hereof
shall remain operative and in full force and effect, regardless of any
investigation made by or on behalf of any Underwriter or any such controlling
person, and shall survive the delivery of the Bonds.
(b) Each Underwriter agrees, severally and not jointly, to indemnify
and hold harmless the Company, its officers and directors, each other
Underwriter, and each person who controls any thereof within the meaning of
Section 15 of the Securities Act or Section 20(a) of the Securities Exchange
Act, against any and all losses, claims, damages or liabilities, joint or
several, to which they or any of them may become subject under the Securities
Act, the Securities Exchange Act, or any other statute or common law and to
reimburse each of them for any legal or other expenses (including, to the extent
hereinafter provided, reasonable counsel fees) incurred by them in connection
with investigating any such losses, claims, damages or
- 11 -
<PAGE>
liabilities or in connection with defending any actions, insofar as such losses,
claims, damages, liabilities, expenses or actions arise out of or are based upon
any untrue statement or alleged untrue statement of a material fact contained in
the Registration Statement or the Prospectus, or in either such document as
amended or supplemented (if any amendments or supplements thereto shall have
been furnished), or any Preliminary Prospectus (if and when used prior to the
effective date of the Registration Statement), or the omission or alleged
omission to state therein a material fact required to be stated therein or
necessary to make the statements therein not misleading, if such statement or
omission was made in reliance upon information furnished herein or in writing to
the Company by or on behalf of such Underwriter for use in the Registration
Statement or the Prospectus or any amendment or supplement to either thereof, or
any Preliminary Prospectus. The indemnity agreement of the respective
Underwriters contained in this paragraph 9(b) shall remain operative and in full
force and effect, regardless of any investigation made by or on behalf of the
Company, or any such other Underwriter or any such controlling person, and shall
survive the delivery of the Bonds.
(c) The Company and each of the Underwriters agrees that, upon the
receipt of notice of the commencement of any action against the Company or any
of its officers or directors, or any person controlling the Company, or against
such Underwriter or controlling person as aforesaid, in respect of which
indemnity may be sought on account of any indemnity agreement contained herein,
it will promptly give written notice of the commencement thereof to the party or
parties against whom indemnity shall be sought hereunder, but the omission so to
notify such indemnifying party or parties of any such action shall not relieve
such indemnifying party or parties from any liability which it or they may have
to the indemnified party otherwise than on account of such indemnity agreement.
In case such notice of any such action shall be so given, such indemnifying
party shall be entitled to participate at its own expense in the defense or, if
it so elects, to assume (in conjunction with any other indemnifying parties) the
defense of such action, in which event such defense shall be conducted by
counsel chosen by such indemnifying party (or parties) and satisfactory to the
indemnified party or parties who shall be defendant or defendants in such
action, and such defendant or defendants shall bear the fees and expenses of any
additional counsel retained by them; provided that, if the defendants in any
such action include both the indemnified party and the indemnifying party (or
parties) and the indemnified party shall have reasonably concluded that there
may be legal defenses available to it and/or other indemnified parties which are
different from or additional to those available to the indemnifying party (or
parties), the indemnified party shall have the right to select separate counsel
to assert such legal defenses and to participate otherwise in the defense of
such action on behalf of such indemnified party. The indemnifying party shall
bear the reasonable fees and expenses of counsel retained by the indemnified
party if (i) the indemnified party shall have retained such counsel in
connection with the assertion of legal defenses in accordance with the proviso
to the preceding sentence (it being understood, however, that the indemnifying
party shall not be liable for the expenses of more than one separate counsel,
representing the indemnified parties under paragraph 9(a) or 9(b), as the case
may be, who are parties to such action), (ii) the indemnifying party shall have
elected not to assume the defense of such action,
- 12 -
<PAGE>
(iii) the indemnifying party shall not have employed counsel satisfactory to the
indemnified party to represent the indemnified party within a reasonable time
after notice of the commencement of the action, or (iv) the indemnifying party
has authorized the employment of counsel for the indemnified party at the
expense of the indemnifying party.
(d) If the indemnification provided for in this Section 9 is
unavailable to or insufficient to hold harmless an indemnified party under
paragraph (a) or (b) above in respect of any losses, claims, damages or
liabilities (or actions in respect thereof) referred to therein, then each
indemnifying party shall contribute to the amount paid or payable by such
indemnified party as a result of such losses, claims, damages or liabilities (or
actions in respect thereof) in such proportion as is appropriate to reflect the
relative fault of the Company, on the one hand, and of you, on the other, in
connection with the statements or omissions that resulted in such losses,
claims, damages or liabilities (or actions in respect thereof), as well as any
other relevant equitable considerations, including relative benefit. The
relative fault shall be determined by reference to, among other things, whether
the untrue or alleged untrue statement of a material fact or the omission or
alleged omission to state a material fact required to be stated therein or
necessary in order to make the statements therein not misleading relates to
information supplied by the Company on the one hand or by you on the other and
the parties' relative intent, knowledge, access to information and opportunity
to correct or prevent such statement or omission. The Company and you agree that
it would not be just and equitable if contribution pursuant to this paragraph
(d) were determined by pro rata allocation or by any other method of allocation
which does not take account of the equitable considerations referred to above in
this paragraph (d). The amount paid or payable by an indemnified party as a
result of the losses, claims, damages or liabilities (or actions in respect
thereof) referred to above in this paragraph (d) shall be deemed to include any
legal or other expenses reasonably incurred by such indemnified party in
connection with investigating or defending any such action or claim. No person
guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of
the Securities Act) shall be entitled to contribution from any person who was
not guilty of such fraudulent misrepresentation. The Underwriters' obligations
under this paragraph (d) to contribute are several in proportion to their
respective underwriting obligations and not joint.
10. Termination by the Company. If any one or more of the Underwriters
shall fail or refuse to purchase the Bonds which it or they have agreed to
purchase hereunder, and the aggregate principal amount of the Bonds which such
defaulting Underwriter or Underwriters agreed but failed or refused to purchase
is not more than one-tenth of the aggregate principal amount of the Bonds, the
other Underwriters shall be obligated severally in the proportions which the
principal amount of the Bonds set forth opposite their respective names in
Schedule II bears to the aggregate principal amount of the Bonds, or in such
other proportions as the Underwriters may specify, to purchase the Bonds which
such defaulting Underwriter or Underwriters agreed but failed or refused to
purchase. If any Underwriter or Underwriters shall so fail or refuse to purchase
Bonds and the aggregate principal amount of the Bonds with respect to which such
default occurs is more than one-tenth of the aggregate principal amount of the
- 13 -
<PAGE>
Bonds and arrangements satisfactory to the Underwriters and the Company for the
purchase of such Bonds are not made within 36 hours after such default, this
Agreement will terminate without liability on the part of any non-defaulting
Underwriter (except as provided in paragraph 6(i) and Section 9) or of the
Company (except as provided in paragraph 6(b) and Section 9). In any such case
not involving a termination, either the Representative or the Company shall have
the right to postpone the Closing Date, but in no event for longer than seven
days, in order that the required changes, if any, in the Registration Statement
and in the Prospectus or in any other documents or arrangements may be effected.
Any action taken under this Section 10 shall not relieve any defaulting
Underwriter from liability in respect of any default of such Underwriter under
this Agreement.
11. Representations, Warranties and Agreements to Survive Delivery. All
representations, warranties and agreements contained in this Agreement or
contained in certificates of officers of the Company submitted pursuant hereto
shall remain operative and in full force and effect regardless of any
investigation made by or on behalf of any Underwriter or any controlling person
of any Underwriter, or by or on behalf of the Company, and shall survive
delivery of the Bonds.
12. Miscellaneous. The validity and interpretation of this Agreement
shall be governed by the laws of the State of New York. This Agreement shall
inure to the benefit of the Company, the Underwriters and, with respect to the
provisions of Section 9 hereof, each controlling person and each officer and
director of the Company referred to in said Section 9, and their respective
successors, assigns, executors and administrators. Nothing in this Agreement is
intended or shall be construed to give to any other person, firm or corporation
any legal or equitable right, remedy or claim under or in respect of this
Agreement or any provision herein contained. The term "successors" as used in
this Agreement shall not include any purchaser, as such, of any of the Bonds
from any of the several Underwriters.
13. Notices. All communications hereunder shall be in writing and if to
the Underwriters shall be mailed, telexed, telecopied or delivered to the
Representative at the address set forth on Schedule I hereto, or if to the
Company shall be mailed, telexed, telecopied or delivered to it, attention of
Treasurer, Virginia Electric and Power Company, 701 E. Cary Street, Richmond,
Virginia 23219.
- 14 -
<PAGE>
Please sign and return to us a counterpart of this letter, whereupon
this letter will become a binding agreement between the Company and the several
Underwriters in accordance with its terms.
VIRGINIA ELECTRIC AND POWER COMPANY
By:_________________________________
Title:
The foregoing agreement is hereby confirmed and accepted, as of the date first
above written.
[Name of Underwriter]
By:________________________________
Title:
Acting individually and on
behalf of the other several
Underwriters named in
Schedule II hereto.
- 15 -
<PAGE>
SCHEDULE I
Title of Bonds: First and Refunding Mortgage Bonds of 199_, Series _, ____ %,
due[date]
Aggregate Principal Amount: $_____________
Initial Price to Public:
% of the principal amount of the Bonds plus accrued
interest, if any, from the date of issuance
Initial Purchase Price to be paid by Underwriters:
% of the principal amount of the Bonds
Specified funds for payment of purchase price (N.Y. Clearing House Funds unless
otherwise specified).
Time of Delivery: [Closing Date and time]
Closing Location: 200 Park Avenue, 43rd Floor
New York, NY
The Bonds will be available for inspection by the Representative at:
200 Park Avenue, 43rd Floor
New York, NY
Address for Notices to the Underwriters:
- 16 -
<PAGE>
SCHEDULE II
Principal Amount
Underwriter of Bonds to be Purchased
- 17 -
<PAGE>
SCHEDULE III
PROPOSED FORM OF OPINION
OF
MCGUIRE, WOODS, BATTLE & BOOTHE, L.L.P.
One James Center
Richmond, VA 23219
Re: VIRGINIA ELECTRIC AND POWER COMPANY
First and Refunding Mortgage Bonds of 199_
Series _, ____%, due [date]
[Closing Date]
[name and address of
Representative]
Dear Sirs:
We have acted as counsel for the several Underwriters described below
in connection with arrangements for the issuance by Virginia Electric and Power
Company (the Company) of $____________ aggregate principal amount of its First
and Refunding Mortgage Bonds of 199_, Series _, ____% due [date] (the Bonds),
the terms of which are specified in Schedule I of the Underwriting Agreement
referred to below and in the Prospectus referred to therein, under and pursuant
to an Indenture of Mortgage of the Company, dated November 1, 1935, as
supplemented and modified by eighty-_____ supplemental indentures (said
Indenture of Mortgage as so supplemented and modified being hereinafter called
the Mortgage), under which The Chase Manhattan Bank, is now Trustee, and
the purchase of the Bonds by the several Underwriters pursuant to the
Underwriting Agreement dated [date] between you, acting individually and as
Representative of the several Underwriters named in Schedule II thereto, and the
Company (the Underwriting Agreement). Unless otherwise defined herein,
capitalized terms used herein shall have the meanings set forth in the
Underwriting Agreement.
- 18 -
<PAGE>
We have examined originals, or copies certified to our satisfaction, of
such corporate records of the Company, indentures, agreements and other
instruments, certificates of public officials, certificates of officers and
representatives of the Company and of the Trustee, and other documents, as we
have deemed it necessary to require as a basis for the opinions hereinafter
expressed. As to various questions of fact material to such opinions, we have,
when relevant facts were not independently established, relied upon
certifications by officers of the Company, the Trustee and other appropriate
persons and statements contained in the Registration Statement. All legal
proceedings taken as of the date hereof in connection with the issuance and sale
of the Bonds have been satisfactory in form and substance to us.
In addition, we attended the closing held today at 200 Park Avenue, New
York, New York, at which the Company delivered to the Representative, for the
accounts of the several Underwriters, certificates for the Bonds, in accordance
with the Underwriting Agreement, against payment therefor.
Based upon the foregoing, and having regard to legal considerations
which we deem relevant, we are of the opinion that:
A. The Company is a corporation duly incorporated and existing
under the laws of Virginia and is duly qualified as a foreign
corporation in West Virginia and North Carolina, and has corporate
power to transact its business as described in the Prospectus.
B. The Underwriting Agreement has been duly authorized by all
necessary corporate action and has been duly executed and delivered by
the Company, and constitutes a valid obligation of the Company.
C. The Registration Statement has become effective and remains
in effect at this date, and the Prospectus may lawfully be used for the
purposes specified in the Securities Act in connection with the offer
for sale and the sale of the Bonds in the manner therein specified.
The Registration Statement and the Prospectus (except the
financial statements and other financial or statistical information
included or incorporated by reference therein, as to which we express
no opinion) appear on their face to be appropriately responsive in all
material respects to the requirements of the Securities Act and the
Trust Indenture Act, and to the applicable rules and regulations of the
Commission thereunder.
We express no opinion with reference to the statements under
"Security and Priority" under the caption DESCRIPTION OF THE BONDS in
the Prospectus for the reasons indicated in the concluding paragraph of
this opinion; but except as aforesaid, and subject to the concluding
paragraph of this opinion, we are of the opinion that the
- 19 -
<PAGE>
statements under DESCRIPTION OF THE BONDS are accurate and do not omit
any material fact required to be stated therein or necessary to make
such statements not misleading. As to other matters, we have not
undertaken to determine independently the accuracy or completeness of
the statements contained or incorporated by reference in the
Registration Statement or in the Prospectus. We have, however,
participated in conferences with counsel for and representatives of the
Company in connection with the preparation of the Registration
Statement and the Prospectus, and we have reviewed all documents
incorporated by reference in the Prospectus through the date hereof
pursuant to the requirements of Form S-3 (the "Incorporated Documents")
and such of the corporate records of the Company as we deemed
advisable. None of the foregoing disclosed to us any information which
gives us reason to believe that the Registration Statement or the
Prospectus (except the financial statements and other financial or
statistical information included or incorporated by reference therein,
as to which we express no opinion) contained on the date the
Registration Statement became effective, or now contains, any untrue
statement of a material fact or omitted on said date or now omits to
state a material fact required to be stated therein or necessary to
make the statements therein not misleading. The foregoing is made on
the basis that any statement contained in an Incorporated Document
shall be deemed not to be contained in the Registration Statement or
Prospectus if the statement has been modified or superseded by any
statement in a subsequently filed Incorporated Document or in the
Registration Statement or Prospectus.
D. An appropriate order of the Virginia Commission with
respect to the issue and sale of the Bonds on the terms and conditions
set forth in the Underwriting Agreement has been issued, and said order
remains in effect at this date and constitutes valid and sufficient
authorization for the sale of the Bonds as contemplated by the
Underwriting Agreement. We understand said order does not contain any
provision unacceptable to the Representative under the Underwriting
Agreement. No approval or consent by any public regulatory body, other
than such order and notification of effectiveness by the Commission, is
legally required in connection with the issue and sale of the Bonds as
contemplated by the Underwriting Agreement (except compliance with the
provisions of securities or blue sky laws of certain states in
connection with the sale of the Bonds in such states) and the carrying
out of the provisions of the Underwriting Agreement.
E. The Mortgage has been duly authorized by all necessary
corporate action and has been duly executed and delivered, and conforms
to the statements with respect thereto contained in the Registration
Statement and the Prospectus; the Mortgage, so far as it relates to
properties in Virginia, North Carolina and West Virginia, subject, as
to real properties acquired after the admission of the Eighty-_____
Supplemental Indenture to recordation, to due and prompt recordation of
the Eighty-_____ Supplemental Indenture in all the recording offices
within the jurisdiction of which such properties are
- 20 -
<PAGE>
located before any sale of any such properties, and subject, as to the
mortgaged personal properties in West Virginia, to due and prompt
filing of the Eighty-_____ Supplemental Indenture in the office of the
Secretary of State of West Virginia, constitutes a valid mortgage
legally effective to create a lien (as to the ranking of which
reference is made to the below-mentioned opinions of Messrs. Hunton &
Williams and Messrs. Jackson & Kelly, including the statements made in
the Prospectus on their authority) for the security of the Bonds (pari
passu with all other bonds of the same or other series that are or may
hereafter be issued under the Mortgage) upon the interest of the
Company in the property, including franchises, now owned by the
Company, except as otherwise provided in the Mortgage as to specific
property or specific classes of property; the Mortgage contains
customary provisions for the enforcement of the security provided for
therein, certain of which may be limited by the laws of Virginia, West
Virginia or North Carolina (but such laws do not, in our opinion, make
inadequate the remedies necessary for the realization of the benefits
of such security) and, as to nuclear facilities, by the Atomic Energy
Act of 1954, as amended, and regulations thereunder, and may also be
limited or rendered unavailable by bankruptcy, moratorium and similar
laws from time to time in force or general principles of equity. We
express no opinion as to the validity or enforceability of any covenant
to pay interest on defaulted interest.
The Mortgage has been duly qualified under the Trust Indenture
Act.
F. The Bonds conform to their description in the Underwriting
Agreement and to the statements with respect thereto contained in the
Registration Statement and the Prospectus, and have been duly
authorized and are duly issued under the Mortgage and entitled to the
benefits and security thereof and are valid, binding and legal
obligations of the Company according to their tenor and effect
(subject, as to enforceability, to bankruptcy, moratorium and similar
laws from time to time in force or general principles of equity).
We have made no examination of the Company's title to property
purported to be owned by it, the description of such property contained in the
Mortgage, the validity and sufficiency of the franchises under which the Company
operates, the ranking of the lien created by the Mortgage, the absence of liens
or encumbrances on property of the Company other than the lien of the Mortgage
and the permitted liens referred to therein, the due recordation prior to the
date hereof of the original Indenture of Mortgage and the first eighty-_____
supplemental indentures, the form (for purposes of recording) of the Mortgage,
or the due filing prior to the date hereof of a financing statement or any other
instrument to protect the lien of the Mortgage upon personal property in West
Virginia. We express no opinion on such matters and, to the extent that the
opinions herein expressed involve such matters, we have relied upon the opinion
addressed to you by Messrs. Hunton & Williams of Richmond, Virginia, and
Raleigh, North Carolina, and Messrs. Jackson & Kelly of Charleston, West
Virginia, each dated the date hereof (including the statements made in the
Prospectus on their authority), which opinions are
- 21 -
<PAGE>
satisfactory in scope and form to us, and upon which opinions we believe you and
we may properly rely. Likewise, we have relied upon the opinions of such counsel
as to all matters of West Virginia and North Carolina law.
Very truly yours,
McGUIRE, WOODS, BATTLE & BOOTHE, L.L.P.
- 22 -
<PAGE>
SCHEDULE IV
PROPOSED FORM OF OPINION
OF
HUNTON & WILLIAMS
Riverfront Plaza, East Tower
951 E. Byrd Street
Richmond, Virginia 23219
Re: VIRGINIA ELECTRIC AND POWER COMPANY
First and Refunding Mortgage Bonds of 199_
Series _, ____%, due [date]
[Closing Date]
[name and address of
Representative]
Dear Sirs:
We have acted as counsel for Virginia Electric and Power
Company (the Company) in connection with arrangements for the issuance by the
Company of $____________ aggregate principal amount of its First and Refunding
Mortgage Bonds of 199_, Series _, ____%, due [date] (the Bonds) the terms of
which are specified in Schedule I of the Underwriting Agreement referred to
below and in the Prospectus referred to therein, under and pursuant to an
Indenture of Mortgage of the Company, dated November 1, 1935, as supplemented
and modified by eighty-_____ supplemental indentures (such Indenture of Mortgage
as so supplemented and modified being hereinafter called the Mortgage), under
which The Chase Manhattan Bank is now Trustee, and the purchase of the
Bonds by the several Underwriters pursuant to the Underwriting Agreement dated
[date] between you, acting individually and as Representative of the several
Underwriters named in Schedule II thereto, and the Company (the Underwriting
Agreement). Unless otherwise defined herein, capitalized terms used herein shall
have the meanings set forth in the Underwriting Agreement.
- 23 -
<PAGE>
We have examined originals, or copies certified to our
satisfaction, of such corporate records of the Company, indentures, agreements
and other instruments, certificates of public officials, certificates of
officers and representatives of the Company and of the Trustee, and other
documents, as we have deemed it necessary to require as a basis for the opinions
hereinafter expressed. As to various questions of fact material to such
opinions, we have, when relevant facts were not independently established,
relied upon certifications by officers of the Company, the Trustee and other
appropriate persons and statements contained in the Registration Statement. All
legal proceedings taken as of the date hereof in connection with the
transactions contemplated by the Underwriting Agreement have been satisfactory
to us.
In regard to the title of the Company to its properties, we
have made no independent investigation of original records but our opinion is
based (a) with respect to land and rights of way for electric lines of 69,000
volts or more, solely on reports and opinions by counsel in whom we have
confidence and (b) with respect to rights of way for electric lines of less than
69,000 volts and various matters of fact in regard to all other properties,
solely on information from officers of the Company.
On this basis, we are of the opinion that:
1. The Company is a corporation duly organized and existing
under the laws of Virginia and the Company is duly qualified as a
foreign corporation in West Virginia and North Carolina. Neither the
nature of the Company's business nor the properties it owns or holds
under lease makes necessary qualification as a foreign corporation in
any state where it is not now so qualified, and the Company has
corporate power to conduct its business and to issue the Bonds.
2. All requisite corporate and governmental authorizations
have been given for the issuance of the Bonds and the sale of the Bonds
under the Underwriting Agreement.
3. The Mortgage has been duly authorized, executed and
delivered and so far as it relates to properties in North Carolina and
Virginia is valid and binding except as stated below, and constitutes a
valid lien to the extent that it purports to be one for the benefit of
the holders of the bonds issued thereunder (except that the lien may be
defeated as to real property acquired after recordation of any latest
supplemental indenture by its sale before recordation of a further
supplemental indenture and our opinion, so far as relating to the lien
on certain properties now owned, is accordingly subject to recordation
of the Eighty-______ Supplemental Indenture and except that the lien as
to personal property of the Company held by bailees may be defeated).
The Mortgage contains customary provisions for the enforcement of the
security provided for therein, certain of which may be limited by the
laws of Virginia, West Virginia or North Carolina (but such laws do
not, in our opinion, make inadequate the remedies necessary
- 24 -
<PAGE>
for the realization of the benefits of such security) and, as to
nuclear facilities, by the Atomic Energy Act of 1954, as amended, and
regulations thereunder, and may also be limited or rendered unavailable
by bankruptcy, moratorium and similar laws from time to time in force.
We express no opinion as to the validity or enforceability of any
covenant to pay interest on defaulted interest.
4. All the Bonds have been duly executed, authenticated and
delivered and are valid and binding obligations of the Company,
enforceable in accordance with their terms (subject, as to
enforceability, to applicable bankruptcy, moratorium and similar laws
from time to time in force or general principles of equity).
5. The Underwriting Agreement has been duly authorized,
executed and delivered by the Company and is a valid obligation of the
Company.
6. The Registration Statement with respect to the Bonds filed
pursuant to the Securities Act of 1933, as amended (the Securities
Act), has become effective and remains in effect at this date, and the
Prospectus may lawfully be used for the purposes specified in the
Securities Act in connection with the offer for sale and the sale of
the Bonds in the manner therein specified.
The statements in regard to our firm made under the caption
EXPERTS in the Prospectus are correct, and we are of the opinion that,
so far as governed by the laws of the United States, North Carolina or
Virginia, the legal conclusions relating to franchises, title to
properties, limitations upon the issuance of bonds and preferred stock
in the Company's Annual Report on Form 10-K incorporated in the
Prospectus by reference and the description of the Bonds contained in
the Prospectus under DESCRIPTION OF THE BONDS are substantially
accurate and fair, including the statements as to North Carolina and
Virginia titles and defects therein and franchises and permits. As to
the statistical statements in the Registration Statement (which
includes the documents incorporated therein by reference), we have
relied solely on the officers of the Company. As to other matters of
fact, we have consulted with officers and other employees of the
Company to inform them of the disclosure requirements of the Securities
Act, and facilitated the assembly of relevant data. We have examined
various reports, records, contracts and other documents of the Company
and orders and instruments of public officials, which our investigation
led us to deem pertinent. In addition, we attended the due diligence
meetings with representatives of the Company and the closing held today
at which the Company satisfied the conditions contained in Paragraph 7
of the Underwriting Agreement. We have not, however, undertaken to make
any independent review of the other records of the Company. We
accordingly assume no responsibility for the accuracy or completeness
of the statements made in the Registration Statement except as stated
above in regard to the aforesaid captions. But such consultation,
examination and attendance disclosed to us no information with respect
- 25 -
<PAGE>
to such other matters that gives us reason to believe that the
Registration Statement or the Prospectus contained on the date the
Registration Statement became effective or contains now any untrue
statement of a material fact or omitted on said date or omits now to
state a material fact required to be stated therein or necessary to
make the statements therein not misleading. We are of the opinion that
the Registration Statement and the Prospectus (except the financial
statements and the other financial information included or incorporated
therein by reference, as to which we express no opinion) comply as to
form in all material respects to the requirements of the Securities
Act, the Securities Exchange Act and the Trust Indenture Act, and to
the applicable rules and regulations of the Commission thereunder. We
are further of the opinion that the Mortgage has been duly qualified
under the Trust Indenture Act.
7. Except as set forth in the Registration Statement, there
are no pending legal, administrative or judicial proceedings with
respect to the Company required to be described by Form S-3.
The opinions in paragraphs 6 and 7 hereof are given on the
basis that any statement contained in an Incorporated Document shall be deemed
not to be contained in the Registration Statement or Prospectus if the statement
has been modified or superseded by any statement in a subsequently filed
Incorporated Document or in the Registration Statement or Prospectus.
We understand that you are relying (we believe that you are
justified in relying, and for our part we rely) on the opinion of Jackson &
Kelly as to all matters governed by the laws of West Virginia, including the
statements made in the Prospectus on their authority.
Yours very truly,
HUNTON & WILLIAMS
- 26 -
<PAGE>
SCHEDULE V
PROPOSED FORM OF OPINION
OF
JACKSON & KELLY
1600 Laidley Tower
P. O. Box 553
Charleston, West Virginia 25322
Re: VIRGINIA ELECTRIC AND POWER COMPANY
First and Refunding Mortgage Bonds of 199_
Series _, ____%, due [date]
[Closing Date]
Virginia Electric and Power Company
P. O. Box 26666
Richmond, Virginia 23261
[name and address of
Representative]
Dear Sirs:
We are familiar with the arrangements for the issuance of
$______________ aggregate principal amount of First and Refunding Mortgage Bonds
of 199_, Series _B, ____%, due [date] (the Bonds), of Virginia Electric and
Power Company (the Company) under an Indenture of Mortgage dated November 1,
1935, as supplemented and modified by eighty-_____ supplemental indentures (the
Mortgage), and the sale thereof pursuant to an Underwriting Agreement dated
[date] between the Company and the Underwriters named in Schedule II thereto
(the Underwriting Agreement), and we have acted as West Virginia counsel for the
Company in that regard.
- 27 -
<PAGE>
We are of the opinion that, so far as governed by the laws of
West Virginia:
1. The Company is duly qualified as a foreign corporation in
West Virginia and has corporate power to conduct its business in West
Virginia and issue the Bonds.
2. No governmental authorization is requisite for the issuance
of the Bonds and their sale under the Underwriting Agreement.
3. The Mortgage has been duly authorized, executed and
delivered, is valid and binding (except as stated below) and so far as
it relates to properties in West Virginia constitutes a valid lien to
the extent that it purports to be one for the benefit of the holders of
the bonds issued thereunder (subject as to mortgaged personal
properties, to the filing of the Eighty-_____ Supplemental Indenture in
the office of the Secretary of State of West Virginia and except that
the lien may be defeated as to real property acquired after recordation
of any latest supplemental indenture and before recordation of a
further supplemental indenture and our opinion, so far as relating to
the lien on certain properties now owned, is accordingly subject to
recordation of the Eighty-_____ Supplemental Indentures). The Mortgage
contains customary provisions for the enforcement of the security
provided for therein, certain of which may be limited by the laws of
West Virginia (but such laws do not, in our opinion, make inadequate
the remedies necessary for the realization of the benefits of such
security) and may also be limited or rendered unavailable by
bankruptcy, moratorium and similar laws from time to time in force. We
express no opinion as to the validity or enforceability of any covenant
to pay interest on defaulted interest.
We have assumed, for purposes of the opinions herein
expressed, that all the Bonds have been duly executed, authenticated and
delivered and are valid and binding obligations of the Company, enforceable in
accordance with their terms.
The statements in regard to our firm made under EXPERTS in the
Prospectus relating to the Bonds are correct, and we are of the opinion that the
statements in the Prospectus referred to as being made on our authority
(including the statements as to West Virginia titles and defects therein and
franchises) are substantially accurate and fair. In regard to titles to some of
the properties in West Virginia, we have made no independent investigation of
original records, but our opinion is based solely on reports and opinions by
counsel in whom we have confidence. We assume no responsibility for the accuracy
or completeness of any other statements in the Registration Statement, but we do
not know of any reason to believe that it contains any untrue statement of a
material fact or omits to state a material fact required to be stated or
necessary to make the statements not misleading. The foregoing is made on the
basis that any statement contained in a document incorporated by reference in
the Registration Statement or the Prospectus shall be deemed not to be contained
in the Registration Statement
- 28 -
<PAGE>
or Prospectus if the statement has been modified or superseded by any statement
in a subsequently filed incorporated document or in the Registration Statement
or Prospectus.
Very truly yours,
JACKSON & KELLY
- 29 -
Exhibit 1(ii)
VIRGINIA ELECTRIC AND POWER COMPANY
Senior Notes
Series _, ____%, Due __________
FORM OF UNDERWRITING AGREEMENT
[Date]
[Name of Underwriter]
as Representative for
the Several Underwriters
named in Schedule II hereto
[Address of Underwriter]
Ladies and Gentlemen:
The undersigned, Virginia Electric and Power Company (the Company),
hereby confirms its agreement with the several Underwriters named in Schedule II
hereto (the Agreement) with respect to the sale to the several Underwriters of
certain of its Senior Notes (the Senior Notes) specified in Schedule I hereto,
and the public offering thereof by the several Underwriters, upon the terms
specified in Schedule I hereto.
1. Underwriters and Representative. The term "Underwriters" as used
herein shall be deemed to mean the several persons, firms or corporations
(including the Representative hereinafter mentioned) named in Schedule II
hereto, and the term "Representative" as used herein shall be deemed to mean the
representative to whom this Agreement is addressed, who by signing this
Agreement represents that it has been authorized by the other Underwriters to
execute this Agreement on their behalf and to act for them in the manner herein
provided. If there shall be only one person, firm or corporation named in
Schedule II hereto, the term "Underwriters" and the term "Representative" as
used herein shall mean that person, firm or corporation. All obligations of the
Underwriters hereunder are several and not joint. Any action under or in respect
of this Agreement taken by the Representative will be binding upon all the
Underwriters.
<PAGE>
2. Description of the Senior Notes. Schedule I specifies the aggregate
principal amount of the Senior Notes, the initial public offering price of the
Senior Notes, the purchase price to be paid by the Underwriters, and any
concession from the initial public offering price to be allowed to dealers or
brokers, and sets forth the date, time and manner of delivery of the Senior
Notes and payment therefor. Schedule I also specifies (to the extent not set
forth in the Registration Statement and Prospectus referred to below) the terms
and provisions for the purchase of such Senior Notes. The Senior Notes will be
issued under the Company's Senior Indenture dated as of _________, ____ between
the Company and The Chase Manhattan Bank, as Trustee (the Trustee).
3. Representations and Warranties of the Company. The Company
represents and warrants to, and agrees with, the Underwriters that:
(a) A registration statement, No. 33-______ on Form S-3 for the
registration of the Senior Notes under the Securities Act of
1933, as amended (the Securities Act), heretofore filed with
the Securities and Exchange Commission (the Commission), a
copy of which as so filed has been delivered to you, has
become effective. The registration statement, including all
exhibits thereto, as amended through the date hereof, is
hereinafter referred to as the "Registration Statement"; the
prospectus relating to the Senior Notes included in the
Registration Statement, which prospectus is now proposed to be
supplemented by a supplement relating to the Senior Notes to
be filed with the Commission under the Securities Act, as so
supplemented, is hereinafter referred to as the "Prospectus".
As used herein, the terms "Registration Statement",
"prospectus" and "Prospectus" include all documents (including
any Current Report on Form 8-K) incorporated therein by
reference, and shall include any documents (including any
Current Report on Form 8-K) filed after the date of such
Registration Statement, prospectus or Prospectus and
incorporated therein by reference from the date of filing of
such incorporated documents (collectively, the Incorporated
Documents).
(b) No order suspending the effectiveness of the Registration
Statement or otherwise preventing or suspending the use of the
Prospectus has been issued by the Commission and is in effect
and no proceedings for that purpose are pending before or, to
the knowledge of the Company, threatened by the Commission.
The Registration Statement and the Prospectus comply in all
material respects with the provisions of the Securities Act,
the Securities Exchange Act of 1934 (the Securities Exchange
Act) and the Trust Indenture Act of 1939, as amended (the
Trust Indenture Act), and the rules, regulations and releases
of the Commission thereunder (the Rules and Regulations), and,
on the date hereof, neither the Registration Statement nor the
Prospectus contain an untrue statement of a material fact or
omit to state a material fact required to be stated therein or
necessary to make the statements therein not misleading, and,
on the Closing Date, the Registration Statement and the
Prospectus (including any amendments and
- 2 -
<PAGE>
supplements thereto) will conform in all respects to the
requirements of the Securities Act, the Trust Indenture Act
and the Rules and Regulations, and neither of such documents
will include any untrue statement of a material fact or omit
to state any material fact required to be stated therein or
necessary to make the statements therein not misleading;
provided, that the foregoing representations and warranties in
this paragraph (b) shall not apply to statements in or
omissions from the Registration Statement or the Prospectus
made in reliance upon information furnished herein or in
writing to the Company by the Underwriters or on the
Underwriters' behalf for use in the Registration Statement or
Prospectus; and provided, further, that the foregoing
representations and warranties are given on the basis that any
statement contained in an Incorporated Document shall be
deemed not to be contained in the Registration Statement or
Prospectus if the statement has been modified or superseded by
any statement in a subsequently filed Incorporated Document or
in the Registration Statement or Prospectus or in any
amendment or supplement thereto.
(c) Deloitte & Touche LLP, who have examined certain of the
Company's financial statements filed with the Commission and
incorporated by reference in the Registration Statement [and
the audited results for ____ for which financial statements
have not yet been released], are independent public
accountants as required by the Securities Act and the rules
and regulations of the Commission thereunder.
(d) Except as reflected in, or contemplated by, the Registration
Statement and Prospectus, since the respective most recent
dates as of which information is given in the Registration
Statement and Prospectus, there has not been any material
adverse change in the condition of the Company, financial or
otherwise. The Company has no material contingent financial
obligation that is not disclosed in each of the Registration
Statement and Prospectus.
(e) The Company has taken all corporate action necessary to be
taken by it to authorize the execution by it of this Agreement
and the performance by it of all obligations on its part to be
performed hereunder; and the consummation of the transactions
herein contemplated and the fulfillment of the terms hereof
will not result in a breach of any of the terms or provisions
of, or constitute a default under, any indenture, mortgage,
deed of trust, or other agreement or instrument to which the
Company is now a party, or the charter of the Company, as
amended, or any order, rule or regulation applicable to the
Company of any federal or state regulatory board or body or
administrative agency having jurisdiction over the Company or
over its property.
(f) The Senior Notes, upon issuance thereof, will conform in all
respects to the terms of the relevant order or orders of the
State Corporation Commission of Virginia (the Virginia
Commission) now or hereafter in effect with respect to the
Senior Notes.
- 3 -
<PAGE>
(g) The Company has complied and will comply with all of the
provisions of Florida H.B. 1771, codified as Section 517.075
of the Florida statutes, and all regulations promulgated
thereunder related to issuers of securities doing business
with Cuba.
4. Public Offering. On the basis of the representations and warranties
herein contained, but subject to the terms and conditions in this Agreement set
forth, the Company agrees to sell to each of the several Underwriters, and each
Underwriter agrees, severally and not jointly, to purchase from the Company, at
the price, place and time hereinafter specified, the principal amount of the
Senior Notes set forth opposite the name of such Underwriter in Schedule II
hereto. The several Underwriters agree to make a public offering of their
respective Senior Notes specified in Schedule II hereto at the initial public
offering price specified in Schedule I hereto. It is understood that after such
initial offering the several Underwriters reserve the right to vary the offering
price and further reserve the right to withdraw, cancel or modify such offering
without notice.
5. Time and Place of Closing. Delivery of the Senior Notes to, and
payment therefor by, the Representative for the accounts of the several
Underwriters shall be made at the time, place and date specified in Schedule I
or such other time, place and date as the Representative and the Company may
agree upon in writing, and subject to the provisions of Section 10 hereof. The
hour and date of such delivery and payment are herein called the "Closing Date".
Unless otherwise specified in Schedule I hereto, payment for the Senior Notes
shall be made to the Company or its order by check or checks in New York
Clearing House funds at the Closing Date against delivery of the Senior Notes,
in fully registered form, to or upon your order. The Senior Notes shall be
delivered in certificated form or in the form of a global note in the
denominations equal to the aggregate principal amount of the Senior Notes upon
original issuance and registered in the name of Cede & Co., as nominee for the
Depositary Trust Company.
6. Covenants of the Company. The Company agrees that:
(a) The Company, at or prior to the Closing Date, will deliver to
the Representative conformed copies of the Registration
Statement as originally filed, including all exhibits, any
related preliminary prospectus supplement, the Prospectus and
all amendments and supplements to each such document, in each
case as soon as available and in such quantities as are
reasonably requested by the Representative.
(b) The Company will pay all expenses in connection with (i) the
preparation and filing by it of the Registration Statement and
Prospectus and the printing of this Agreement, (ii) the
preparation, issue and delivery of certificates for the Senior
Notes, (iii) any fees and expenses of the Trustee and (iv) the
printing and delivery to the
- 4 -
<PAGE>
Underwriters in reasonable quantities of copies of the
Registration Statement and the Prospectus (each as originally
filed and as subsequently amended). The Company also will pay
all taxes, if any, except transfer taxes, on the issue of the
Senior Notes. In addition, the Company will pay the reasonable
fees and disbursements of Underwriters' counsel, McGuire,
Woods, Battle & Boothe, L.L.P., in connection with the
qualification of the Senior Notes under state securities or
blue sky laws or investment laws (if and to the extent such
qualification is required by the Underwriters or the Company).
(c) If, at any time when a prospectus relating to the Senior Notes
is required to be delivered under the Securities Act, any
event occurs as a result of which the Prospectus as then
amended or supplemented would include an untrue statement of a
material fact or omit to state any material fact necessary to
make the statements therein, in the light of the circumstances
under which they were made, not misleading, or if it is
necessary at any time to amend the Prospectus to comply with
the Securities Act, the Company promptly will (i) notify the
Representative to suspend solicitation of purchases of the
Senior Notes and (ii) at its expense, prepare and file with
the Commission an amendment or supplement which will correct
such statement or omission or an amendment which will effect
such compliance. In case any Underwriter is required to
deliver a prospectus in connection with the sale of any Senior
Notes after the expiration of the period specified in the
preceding sentence, the Company, upon the request of the
Representative, will furnish to the Representative, at the
expense of such Underwriter, a reasonable quantity of a
supplemented or amended prospectus, or supplements or
amendments to the Prospectus, complying with Section 10(a) of
the Securities Act. During the period specified in the second
sentence of this paragraph, the Company will continue to
prepare and file with the Commission on a timely basis all
documents or amendments required under the Securities Exchange
Act and the applicable rules and regulations of the Commission
thereunder; provided, that the Company shall not file such
documents or amendments without also furnishing copies thereof
to the Representative and McGuire, Woods, Battle & Boothe,
L.L.P.
(d) The Company will advise the Representative promptly of any
proposal to amend or supplement the Registration Statement or
the Prospectus and will afford the Representative a reasonable
opportunity to comment on any such proposed amendment or
supplement; and the Company will also advise the
Representative promptly of the filing of any such amendment or
supplement and of the institution by the Commission of any
stop order proceedings in respect of the Registration
Statement or of any part thereof and will use its best efforts
to prevent the issuance of any such stop order and to obtain
as soon as possible its lifting, if issued.
(e) The Company will make generally available to its security
holders, as soon as it is practicable to do so, an earnings
statement of the Company (which need not be
- 5 -
<PAGE>
audited) in reasonable detail, covering a period of at least
12 months beginning within three months after the effective
date of the Registration Statement, which earnings statement
shall satisfy the requirements of Section 11(a) of the
Securities Act.
(f) For a period of five years following the Closing Date, the
Company will deliver to the Representative, as soon as
practicable after the end of each fiscal year, a balance sheet
of the Company as of the end of such year and statements of
income and earnings reinvested in business for such year, all
as certified by independent public or certified public
accountants, and will deliver to the Representative upon
request, as soon as practicable after the end of each
quarterly period, statements of income and earnings reinvested
in business for the 12 month period ending with the end of
such quarterly period.
(g) The Company will use its best efforts promptly to do and
perform all things to be done and performed by it hereunder
prior to the Closing Date and to satisfy all conditions
precedent required of it to the delivery by it of the Senior
Notes.
(h) The Company will furnish such proper information as may be
lawfully required and otherwise cooperate in qualifying the
Senior Notes for offer and sale under the securities or blue
sky laws of such states as the Representative may designate;
provided, however, that the Company shall not be required in
any state to qualify as a foreign corporation, or to file a
general consent to service of process, or to submit to any
requirements which it deems unduly burdensome.
(i) Fees and disbursements of McGuire, Woods, Battle & Boothe,
L.L.P. who are acting as counsel for the Underwriters
(exclusive of fees and disbursements of such counsel which are
to be paid as set forth in paragraph 6(b)), shall be paid by
the Underwriters; provided, however, that if this Agreement is
terminated in accordance with the provisions of Sections 7 or
8 hereof, the Company shall reimburse the Representative for
the account of the Underwriters for the amount of such fees
and disbursements.
7. Conditions of Underwriters' Obligations; Termination by the
Underwriters.
(a) The obligations of the Underwriters to purchase and pay for
the Senior Notes shall be subject to the following conditions:
(i) No stop order suspending the effectiveness of the
Registration Statement shall be in effect on the
Closing Date and no proceedings for that purpose shall
be pending before, or to the knowledge of the Company
threatened by, the Commission on such date. The
Representative shall have received, prior to payment
for the Senior Notes, a certificate dated
- 6 -
<PAGE>
the Closing Date and signed by the President or any
Vice President of the Company to the effect that no
such stop order is in effect and that no proceedings
for such purpose are pending before or, to the
knowledge of the Company, threatened by the
Commission.
(ii) At the Closing Date an order or orders of the Virginia
Commission permitting the issuance and sale of the
Senior Notes substantially in accordance with the
terms and conditions hereof shall be in full force and
effect and shall contain no provision unacceptable to
the Representative or the Company (but all provisions
of such order or orders heretofore entered are deemed
acceptable to the Representative and the Company, and
all provisions of such order or orders hereafter
entered shall be deemed acceptable to the
Representative and the Company unless within 24 hours
after receiving a copy of any such order either shall
give notice to the other to the effect that such order
contains an unacceptable provision).
(iii) At the Closing Date the Representative shall receive,
on behalf of the several Underwriters, the opinions of
McGuire, Woods, Battle & Boothe, L.L.P., Hunton &
Williams and Jackson & Kelly, substantially in the
forms attached hereto as Schedules III and IV.
(iv) On the date of this Agreement and on the Closing Date,
the Representative shall have received from Deloitte &
Touche LLP a letter addressed to the Representative,
dated the date of this Agreement and the Closing Date,
respectively, (A) confirming that they are independent
public accountants as required by the Securities Act;
(B) stating in effect that, in their opinion, the
audited financial statements included in or
incorporated by reference in the Registration
Statement and the Prospectus and audited by them as
stated in their report incorporated by reference in
the Registration Statement (the Audited Financial
Statements), comply as to form in all material
respects with the applicable accounting requirements
adopted pursuant to the Securities Exchange Act; (C)
stating, in effect, that on the basis of a reading of
the minutes of the meetings of the Board of Directors
of the Company and of committees of the Board since
the end of the period covered by the Audited Financial
Statements, a reading of the unaudited financial
statements incorporated by reference in the Prospectus
(if any), of the unaudited statement of income for any
interim period for which information is included in
the Prospectus under the caption "Selected Financial
Information" or any section updating such information,
and of the latest available unaudited financial
statements of
- 7 -
<PAGE>
the Company covering a period of twelve months ending
after the end of the period covered by the Audited
Financial Statements (if any), and inquiries of
officials of the Company responsible for financial and
accounting matters (which procedures did not
constitute an audit made in accordance with generally
accepted auditing standards), nothing came to their
attention that caused them to believe that such
unaudited financial statements incorporated by
reference in the Prospectus are not in conformity with
generally accepted accounting principles applied on a
basis substantially consistent with that of the
Audited Financial Statements; and (D) stating, in
effect, that on the basis of more limited procedures
than those set forth in the foregoing clause (C),
consisting merely of the reading of the minutes
referred to in said clause and inquiries of officials
of the Company responsible for financial and
accounting matters, nothing came to their attention at
a date not more than five business days prior to the
date of such letter that caused them to believe that
(1) at such date there was any decrease in common
stockholder's equity or any increase in funded debt of
the Company or any decrease in net assets as compared
with the amounts shown in the balance sheet included
in the most recent financial statements incorporated
by reference, or (2) for the period from the date of
the most recent unaudited financial statements
included or incorporated by reference in the
Registration Statement and the Prospectus to a date
not more than five business days prior to the date of
such letter there were any decreases, as compared with
the corresponding period in the preceding year, in the
operating revenues, operating income or net income,
except (with respect to (1) or (2)) in all instances
for changes or decreases that the Registration
Statement discloses have occurred or may occur;
provided, however, that said letters may vary from the
requirements specified in clause (D) hereof in such
manner as the Representative in its sole discretion
may deem to be acceptable. Said letters shall also
state that the dollar amounts, percentages and other
financial information (in each case to the extent that
such dollar amounts, percentages and other financial
information, either directly or by analysis or
computation, are derived from the general accounting
records of the Company) that appear (1) in the
Prospectus under the captions "Selected Financial
Information" and "Other Selected Data" and under any
caption contained in a supplement to the Prospectus
updating such dollar amounts, percentages and other
financial information (limited to total assets and
utility plant expenditures), (2) in the Company's most
recent Annual Report on Form 10-K under the caption
"Selected Financial Data" or (3) in the Registration
Statement under the caption "Ratio of Earnings to
Fixed Charges" have been compared with the general
accounting records
- 8 -
<PAGE>
of the Company and such dollar amounts, percentages
and financial information have been found to be in
agreement with the accounting records of the Company
and the computations have been found to be
arithmetically correct. Each such letter shall relate
to the Registration Statement and Prospectus as
amended or supplemented to the date of each such
letter.
(v) Subsequent to the execution of this Agreement and
prior to the Closing Date, (A) except as reflected in,
or contemplated by, the Registration Statement and the
Prospectus, there shall not have occurred (1) any
change in the Senior Notes of the Company (other than
a decrease in the aggregate principal amount thereof
outstanding), (2) any material adverse change in the
general affairs, financial condition or earnings of
the Company (whether or not arising in the ordinary
course of business) or (3) any material transaction
entered into by the Company other than a transaction
in the ordinary course of business, the effect of
which in each such case in the judgment of the
Representative is so material and so adverse that it
makes it inadvisable to proceed with the public
offering or delivery of the Senior Notes on the terms
and in the manner contemplated in the Prospectus and
this Agreement, or (B) there shall not have occurred
(1) a downgrading in the rating accorded the Company's
senior unsecured notes by any "nationally recognized
statistical rating organization" (as that term is
defined by the Commission for purposes of Rule
436(g)(2) under the Securities Act), (2) any general
suspension of trading in securities on the New York
Stock Exchange or any limitation on prices for such
trading or any restrictions on the distribution of
securities established by the New York Stock Exchange
or by the Commission or by any federal or state agency
or by the decision of any court, (3) a banking
moratorium declared either by federal or New York
State authorities or (4) any outbreak or escalation of
major hostilities in which the Unites States is
involved, any declaration of war by the United States
Congress or any other substantial national or
international calamity or crisis resulting in the
declaration of a national emergency, the effect of
which outbreak, escalation, declaration, calamity or
crisis, in the reasonable judgment of the
Representative, makes it impracticable or inadvisable
to proceed with the public offering or delivery of the
Senior Notes on the terms and in the manner
contemplated in the Prospectus and in this Agreement.
(vi) On the Closing Date, the representations and
warranties of the Company in this Agreement shall be
true and correct as if made on
- 9 -
<PAGE>
and as of such date, and the Company shall have
performed all obligations and satisfied all conditions
required of it under this Agreement; and, at the
Closing Date, the Representative shall have received a
certificate to such effect signed by the President or
any Vice President of the Company.
(vii) All legal proceedings to be taken in connection with
the issuance and sale of the Senior Notes shall have
been satisfactory in form and substance to McGuire,
Woods, Battle & Boothe, L.L.P.
(b) In case any of the conditions specified above in paragraph
7(a) shall not have been fulfilled, this Agreement may be
terminated by the Representative upon mailing or delivering
written notice thereof to the Company; provided, however, that
in case the conditions specified in subparagraphs 7(a)(v) and
(vi) shall not have been fulfilled, this Agreement may not be
so terminated by the Representative unless Underwriters who
have agreed to purchase in the aggregate 50% or more of the
aggregate principal amount of the Senior Notes shall have
consented to such termination and the aforesaid notice shall
so state. Any such termination shall be without liability of
any party to any other party except as otherwise provided in
Section 9 and paragraphs 6(b), 6(i) and 7(c) hereof.
(c) If this Agreement shall be terminated by the Representative
pursuant to paragraph (b) above or because of any failure or
refusal on the part of the Company to comply with the terms or
to fulfill any of the conditions of this Agreement, or if for
any reason the Company shall be unable to perform its
obligations under this Agreement, then in any such case, the
Company will reimburse the Underwriters, severally, for all
out-of-pocket expenses (in addition to the fees and
disbursements of their counsel as provided in paragraph 6(i))
reasonably incurred by such Underwriters in connection with
this Agreement or the offering contemplated hereunder and,
upon such reimbursement, the Company shall be absolved from
any further liability hereunder, except as provided in
paragraph 6(b) and Section 9.
8. Conditions of the Obligation of the Company. The obligation of the
Company to deliver the Senior Notes shall be subject to the conditions set forth
in the first sentence of subparagraph 7(a)(i) and in subparagraph 7(a)(ii). In
case said conditions shall not have been fulfilled, this Agreement may be
terminated by the Company by mailing or delivering written notice thereof to the
Representative. Any such termination shall be without liability of any party to
any other party except as otherwise provided in paragraphs 6(b), 6(i), 9 and
10(c) hereof.
- 10 -
<PAGE>
9. Indemnification. (a) The Company agrees to indemnify and hold
harmless each Underwriter and each person who controls any Underwriter within
the meaning of Section 15 of the Securities Act or Section 20(a) of the
Securities Exchange Act, against any and all losses, claims, damages or
liabilities, joint or several, to which they or any of them may become subject
under the Securities Act, the Securities Exchange Act, or any other statute or
common law and to reimburse each such Underwriter and controlling person for any
legal or other expenses (including, to the extent hereinafter provided,
reasonable counsel fees) incurred by them in connection with investigating any
such losses, claims, damages, or liabilities, or in connection with defending
any actions, insofar as such losses, claims, damages, liabilities, expenses or
actions arise out of or are based upon any untrue statement or alleged untrue
statement of a material fact contained in the Registration Statement or the
Prospectus, or in either such document as amended or supplemented (if any
amendments or supplements thereto shall have been furnished), or any Preliminary
Prospectus (if and when used prior to the effective date of the Registration
Statement), or the omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements therein not
misleading; provided that the foregoing agreement, insofar as it relates to any
Preliminary Prospectus, shall not inure to the benefit of any Underwriter (or to
the benefit of any person who controls such Underwriter) on account of any
losses, claims, damages or liabilities arising out of the sale of any of the
Senior Notes by such Underwriter to any person if it shall be established that a
copy of the Prospectus, excluding any documents incorporated by reference (as
supplemented or amended, if the Company shall have made any supplements or
amendments which have been furnished to the Representative), shall not have been
sent or given by or on behalf of such Underwriter to such person at or prior to
the written confirmation of the sale to such person in any case where such
delivery is required by the Securities Act, if the misstatement or omission
leading to such loss, claim, damage or liability was corrected in the Prospectus
(excluding any documents incorporated by reference) as amended or supplemented,
and such correction would have cured the defect giving rise to such loss, claim,
damage, or liability; and provided further, however, that the indemnity
agreement contained in this paragraph 9(a) shall not apply to any such losses,
claims, damages, liabilities, expenses or actions arising out of or based upon
any such untrue statement or alleged untrue statement, or any such omission or
alleged omission, if such statement or omission was made in reliance upon
information furnished herein or otherwise in writing to the Company by or on
behalf of any Underwriter for use in the Registration Statement or any amendment
thereto, in the Prospectus or any supplement thereto, or in any Preliminary
Prospectus. The indemnity agreement of the Company contained in this paragraph
(a) and the representations and warranties of the Company contained in Section 3
hereof shall remain operative and in full force and effect, regardless of any
investigation made by or on behalf of any Underwriter or any such controlling
person, and shall survive the delivery of the Senior Notes.
(b) Each Underwriter agrees, severally and not jointly, to indemnify
and hold harmless the Company, its officers and directors, each other
Underwriter, and each person who controls
- 11 -
<PAGE>
any thereof within the meaning of Section 15 of the Securities Act or Section
20(a) of the Securities Exchange Act, against any and all losses, claims,
damages or liabilities, joint or several, to which they or any of them may
become subject under the Securities Act, the Securities Exchange Act, or any
other statute or common law and to reimburse each of them for any legal or other
expenses (including, to the extent hereinafter provided, reasonable counsel
fees) incurred by them in connection with investigating any such losses, claims,
damages or liabilities or in connection with defending any actions, insofar as
such losses, claims, damages, liabilities, expenses or actions arise out of or
are based upon any untrue statement or alleged untrue statement of a material
fact contained in the Registration Statement or the Prospectus, or in either
such document as amended or supplemented (if any amendments or supplements
thereto shall have been furnished), or any Preliminary Prospectus (if and when
used prior to the effective date of the Registration Statement), or the omission
or alleged omission to state therein a material fact required to be stated
therein or necessary to make the statements therein not misleading, if such
statement or omission was made in reliance upon information furnished herein or
in writing to the Company by or on behalf of such Underwriter for use in the
Registration Statement or the Prospectus or any amendment or supplement to
either thereof, or any Preliminary Prospectus. The indemnity agreement of the
respective Underwriters contained in this paragraph 9(b) shall remain operative
and in full force and effect, regardless of any investigation made by or on
behalf of the Company, or any such other Underwriter or any such controlling
person, and shall survive the delivery of the Senior Notes.
(c) The Company and each of the Underwriters agrees that, upon the
receipt of notice of the commencement of any action against the Company or any
of its officers or directors, or any person controlling the Company, or against
such Underwriter or controlling person as aforesaid, in respect of which
indemnity may be sought on account of any indemnity agreement contained herein,
it will promptly give written notice of the commencement thereof to the party or
parties against whom indemnity shall be sought hereunder, but the omission so to
notify such indemnifying party or parties of any such action shall not relieve
such indemnifying party or parties from any liability which it or they may have
to the indemnified party otherwise than on account of such indemnity agreement.
In case such notice of any such action shall be so given, such indemnifying
party shall be entitled to participate at its own expense in the defense or, if
it so elects, to assume (in conjunction with any other indemnifying parties) the
defense of such action, in which event such defense shall be conducted by
counsel chosen by such indemnifying party (or parties) and satisfactory to the
indemnified party or parties who shall be defendant or defendants in such
action, and such defendant or defendants shall bear the fees and expenses of any
additional counsel retained by them; provided that, if the defendants in any
such action include both the indemnified party and the indemnifying party (or
parties) and the indemnified party shall have reasonably concluded that there
may be legal defenses available to it and/or other indemnified parties which are
different from or additional to those available to the indemnifying party (or
parties), the indemnified party shall have the right to select separate counsel
to assert such legal defenses and to participate otherwise in the defense of
such action on behalf of such indemnified party. The indemnifying party shall
bear the reasonable fees and
- 12 -
<PAGE>
expenses of counsel retained by the indemnified party if (i) the indemnified
party shall have retained such counsel in connection with the assertion of legal
defenses in accordance with the proviso to the preceding sentence (it being
understood, however, that the indemnifying party shall not be liable for the
expenses of more than one separate counsel, representing the indemnified parties
under paragraph 9(a) or 9(b), as the case may be, who are parties to such
action), (ii) the indemnifying party shall have elected not to assume the
defense of such action, (iii) the indemnifying party shall not have employed
counsel satisfactory to the indemnified party to represent the indemnified party
within a reasonable time after notice of the commencement of the action, or (iv)
the indemnifying party has authorized the employment of counsel for the
indemnified party at the expense of the indemnifying party.
(d) If the indemnification provided for in this Section 9 is
unavailable to or insufficient to hold harmless an indemnified party under
paragraph (a) or (b) above in respect of any losses, claims, damages or
liabilities (or actions in respect thereof) referred to therein, then each
indemnifying party shall contribute to the amount paid or payable by such
indemnified party as a result of such losses, claims, damages or liabilities (or
actions in respect thereof) in such proportion as is appropriate to reflect the
relative fault of the Company, on the one hand, and of you, on the other, in
connection with the statements or omissions that resulted in such losses,
claims, damages or liabilities (or actions in respect thereof), as well as any
other relevant equitable considerations, including relative benefit. The
relative fault shall be determined by reference to, among other things, whether
the untrue or alleged untrue statement of a material fact or the omission or
alleged omission to state a material fact required to be stated therein or
necessary in order to make the statements therein not misleading relates to
information supplied by the Company on the one hand or by you on the other and
the parties' relative intent, knowledge, access to information and opportunity
to correct or prevent such statement or omission. The Company and you agree that
it would not be just and equitable if contribution pursuant to this paragraph
(d) were determined by pro rata allocation or by any other method of allocation
which does not take account of the equitable considerations referred to above in
this paragraph (d). The amount paid or payable by an indemnified party as a
result of the losses, claims, damages or liabilities (or actions in respect
thereof) referred to above in this paragraph (d) shall be deemed to include any
legal or other expenses reasonably incurred by such indemnified party in
connection with investigating or defending any such action or claim. No person
guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of
the Securities Act) shall be entitled to contribution from any person who was
not guilty of such fraudulent misrepresentation. The Underwriters' obligations
under this paragraph (d) to contribute are several in proportion to their
respective underwriting obligations and not joint.
10. Termination by the Company. If any one or more of the Underwriters
shall fail or refuse to purchase the Senior Notes which it or they have agreed
to purchase hereunder, and the aggregate principal amount of the Senior Notes
which such defaulting Underwriter or Underwriters agreed but failed or refused
to purchase is not more than one-tenth of the aggregate principal amount of the
Senior Notes, the other Underwriters shall be obligated severally in the
- 13 -
<PAGE>
proportions which the principal amount of the Senior Notes set forth opposite
their respective names in Schedule II bears to the aggregate principal amount of
the Senior Notes, or in such other proportions as the Underwriters may specify,
to purchase the Senior Notes which such defaulting Underwriter or Underwriters
agreed but failed or refused to purchase. If any Underwriter or Underwriters
shall so fail or refuse to purchase Senior Notes and the aggregate principal
amount of the Senior Notes with respect to which such default occurs is more
than one-tenth of the aggregate principal amount of the Senior Notes and
arrangements satisfactory to the Underwriters and the Company for the purchase
of such Senior Notes are not made within 36 hours after such default, this
Agreement will terminate without liability on the part of any non-defaulting
Underwriter (except as provided in paragraph 6(i) and Section 9) or of the
Company (except as provided in paragraph 6(b) and Section 9). In any such case
not involving a termination, either the Representative or the Company shall have
the right to postpone the Closing Date, but in no event for longer than seven
days, in order that the required changes, if any, in the Registration Statement
and in the Prospectus or in any other documents or arrangements may be effected.
Any action taken under this Section 10 shall not relieve any defaulting
Underwriter from liability in respect of any default of such Underwriter under
this Agreement.
11. Representations, Warranties and Agreements to Survive Delivery. All
representations, warranties and agreements contained in this Agreement or
contained in certificates of officers of the Company submitted pursuant hereto
shall remain operative and in full force and effect regardless of any
investigation made by or on behalf of any Underwriter or any controlling person
of any Underwriter, or by or on behalf of the Company, and shall survive
delivery of the Senior Notes.
12. Miscellaneous. The validity and interpretation of this Agreement
shall be governed by the laws of the State of New York. This Agreement shall
inure to the benefit of the Company, the Underwriters and, with respect to the
provisions of Section 9 hereof, each controlling person and each officer and
director of the Company referred to in said Section 9, and their respective
successors, assigns, executors and administrators. Nothing in this Agreement is
intended or shall be construed to give to any other person, firm or corporation
any legal or equitable right, remedy or claim under or in respect of this
Agreement or any provision herein contained. The term "successors" as used in
this Agreement shall not include any purchaser, as such, of any of the Senior
Notes from any of the several Underwriters.
13. Notices. All communications hereunder shall be in writing and if to
the Underwriters shall be mailed, telexed, telecopied or delivered to the
Representative at the address set forth on Schedule I hereto, or if to the
Company shall be mailed, telexed, telecopied or delivered to it, attention of
Treasurer, Virginia Electric and Power Company, 701 E. Cary Street, Richmond,
Virginia 23219.
- 14 -
<PAGE>
Please sign and return to us a counterpart of this letter, whereupon
this letter will become a binding agreement between the Company and the several
Underwriters in accordance with its terms.
VIRGINIA ELECTRIC AND POWER COMPANY
By:_________________________________
Title:
The foregoing agreement is hereby confirmed and accepted, as of the date first
above written.
[Name of Underwriter]
By:________________________________
Title:
Acting individually and on
behalf of the other several
Underwriters named in
Schedule II hereto.
- 15 -
<PAGE>
SCHEDULE I
Title of Senior Notes: Senior Notes of 199_, Series _, ____ %, due [date]
Aggregate Principal Amount: $_____________
Initial Price to Public:
% of the principal amount of the Senior Notes plus
accrued interest, if any,from the date of issuance
Initial Purchase Price to be paid by Underwriters:
% of the principal amount of the Senior Notes
Specified funds for payment of purchase price (N.Y. Clearing House Funds unless
otherwise specified).
Time of Delivery: [Closing Date and time]
Closing Location: 200 Park Avenue, 43rd Floor
New York, NY
The Senior Notes will be available for inspection by the
Representative at:200 Park Avenue, 43rd Floor
New York, NY
Address for Notices to the Underwriters:
- 16 -
<PAGE>
SCHEDULE II
Principal Amount
Underwriter of Senior Notes to be Purchased
- 17 -
<PAGE>
SCHEDULE III
PROPOSED FORM OF OPINION
OF
MCGUIRE, WOODS, BATTLE & BOOTHE, L.L.P.
One James Center
Richmond, VA 23219
Re: VIRGINIA ELECTRIC AND POWER COMPANY
Senior Notes of 199_
Series _, ____%, due [date]
[Closing Date]
[name and address of
Representative]
Ladies and Gentlemen:
We have acted as counsel for you in connection with arrangements for
the issuance by Virginia Electric and Power Company (the Company) of up to U.S.
$[ ] aggregate principal amount of its Senior Notes, Series __ due ___ (the
Senior Notes) under and pursuant to a Senior Indenture, dated as of
____________, ____ (the Senior Indenture) between the Company and The Chase
Manhattan Bank, as trustee (the Trustee), and the offering of the Senior Notes
by you pursuant to an Underwriting Agreement dated [ ] by and between you and
the Company (the Underwriting Agreement). All terms not otherwise defined herein
shall have the meanings set forth in the Underwriting Agreement.
We have examined originals, or copies certified to our satisfaction of
such corporate records of the Company, indentures, agreements and other
instruments, certificates of public officials, certificates of officers and
representatives of the Company and of the Trustee, and other documents, as we
have deemed necessary as a basis for the opinions hereinafter expressed. As to
various questions of fact material to such opinions, we have, when relevant
facts were not independently established, relied upon certifications by officers
of the Company, the Trustee and
- 18 -
<PAGE>
other appropriate persons and statements contained in the Registration Statement
hereinafter mentioned. All legal proceedings taken as of the date hereof in
connection with the transactions contemplated by the Underwriting Agreement have
been satisfactory to us.
In addition, we attended the closing held today at the offices of
Hunton & Williams, 200 Park Avenue, New York, New York, at which the Company
satisfied the conditions contained in Section 7 of the Underwriting Agreement
that are required to be satisfied as of the Closing Date.
Based upon the foregoing, and having regard to legal considerations
that we deem relevant, we are of the opinion that:
A. The Company is a corporation duly incorporated and existing under
the laws of Virginia and is duly qualified as a foreign corporation in West
Virginia and North Carolina, and has corporate power to transact its business as
described in the Prospectus.
B. The Underwriting Agreement has been duly authorized by all necessary
corporate action and has been duly executed and delivered by the Company.
C. The Senior Indenture has been duly authorized, executed and
delivered by, and constitutes a valid and binding obligation of, the Company and
has been duly qualified under the Trust Indenture Act, except that we express no
opinion as to the validity or enforceability of any covenant to pay interest on
defaulted interest.
D. The Senior Notes have been duly authorized by the Company and, when
executed by the Company and completed and authenticated by the Trustee in
accordance with the Senior Indenture and delivered and paid for as provided in
the Underwriting Agreement, will have been duly issued under the Senior
Indenture and will constitute valid and binding obligations of the Company
entitled to the benefits provided by the Senior Indenture, except that the
enforceability thereof may be limited by bankruptcy, insolvency, reorganization,
moratorium or other similar laws affecting creditors' rights generally from time
to time in force and general principles of equity.
E. The Registration Statement with respect to the Senior Notes filed
pursuant to the Securities Act, has become effective and remains in effect at
this date, and the Prospectus in the form filed as part of the Registration
Statement, including all Incorporated Documents constituting a part thereof, may
lawfully be used for the purposes specified in the Securities Act in connection
with the offer for sale and the sale of Senior Notes in the manner therein
specified.
The Registration Statement and the Prospectus (except the financial
statements incorporated by reference therein, as to which we express no opinion)
appear on their face to
- 19 -
<PAGE>
be appropriately responsive in all material respects to the requirements of the
Securities Act, and to the applicable rules and regulations of the Commission
thereunder.
As to the statements under DESCRIPTION OF THE DEBT SECURITIES, subject
to the concluding paragraph of this opinion, we are of the opinion that the
statements are accurate and do not omit any material fact required to be stated
therein or necessary to make such statements not misleading. As to the
statistical statements in the Registration Statement (which includes the
Incorporated Documents), we have relied solely on the officers of the Company.
As to other matters, we have not undertaken to determine independently the
accuracy or completeness of the statements contained or incorporated by
reference in the Registration Statement or in the Prospectus. We have, however,
participated in conferences with counsel for and representative of the Company
in connection with the preparation of the Registration Statement and the
Prospectus, and we have reviewed all Incorporated Documents and such of the
corporate records of the Company as we deemed advisable. None of the foregoing
disclosed to us any information that gives us reason to believe that the
Registration Statement or the Prospectus contained (except the financial
statements incorporated by reference therein, as to which we express no opinion)
on the date the Registration Statement became effective or now contains any
untrue statement of a material fact or omitted on said date or now omits to
state a material fact required to be stated therein or necessary to make the
statements therein not misleading. The foregoing opinion is given on the basis
that any statement contained in an Incorporated Document shall be deemed not to
be contained in the Registration Statement or Prospectus if the statement has
been modified or superseded by any statement in a subsequently filed
Incorporated Document or in the Registration Statement or Prospectus.
F. An appropriate order of the Virginia commission with respect to the
sale of the Senior Notes on the terms and condition set forth in the
Underwriting Agreement has been issued, and said order remains in effect at this
date and constitutes valid and sufficient authorization for the sale of the
Senior Notes as contemplated by the Underwriting Agreement. We understand said
order does not contain any provision unacceptable to you under the Underwriting
Agreement. No approval or consent by any public regulatory body, other than such
order and notification of effectiveness by the Commission, is legally required
in connection with the sale of the Senior Notes as contemplated by the
Underwriting Agreement (except compliance with the provisions of securities or
blue-sky laws of certain states in connection with the sale of the Senior Notes
in such states) and the carrying out of the provisions of the Underwriting
Agreement.
G. The Senior Notes conform to their description in the Underwriting
Agreement and to the statements with respect thereto contained in the
Registration Statement and the Prospectus.
- 20 -
<PAGE>
To the extent that the foregoing opinions involve matters governed by
the laws of North Carolina and West Virginia, we have relied upon the opinion of
Messrs. Hunton & Williams concurrently delivered to you, and we believe that you
are justified in relying thereon.
Very truly yours,
McGuire, Woods, Battle & Boothe, L.L.P.
- 21 -
<PAGE>
SCHEDULE IV
PROPOSED FORM OF OPINION
OF
HUNTON & WILLIAMS
Riverfront Plaza, East Tower
951 E. Byrd Street
Richmond, Virginia 23219
Re: VIRGINIA ELECTRIC AND POWER COMPANY
Senior Notes of 199_
Series _, ____%, due [date]
[Closing Date]
[name and address of
Representative]
Dear Sirs:
The arrangements for issuance of up to U.S. $[ ] aggregate principal
amount of Senior Notes, Series ___, due ___ (the Senior Notes), of Virginia
Electric and Power Company (the Company) under a Senior Indenture, dated as of
__________, ____ (the Senior Indenture), between the Company and The Chase
Manhattan Bank, as trustee (the Trustee), pursuant to an Underwriting Agreement
dated [ ] by and between the Company and [ ] (the Underwriting Agreement), have
been taken under our supervision as counsel for the Company. Terms not otherwise
defined herein have the meanings set forth in the Underwriting Agreement.
We have examined originals, or copies certified to our satisfaction, of
such corporate records of the Company, indentures, agreements, and other
instruments, certificates of public officials, certificates of officers and
representatives of the Company and of the Trustee, and other documents, as we
have deemed it necessary to require as a basis for the opinions
- 22 -
<PAGE>
[representative]
[date]
Page 23
hereinafter expressed. As to various questions of fact material to such
opinions, we have, when relevant facts were not independently established,
relied upon certifications by officers of the Company, the Trustee and other
appropriate persons and statements contained in the Registration Statement
hereinafter mentioned. All legal proceedings taken as of the date hereof in
connection with the transactions contemplated by the Underwriting Agreement have
been satisfactory to us.
In regard to the title of the Company to its properties, we have made
no independent investigation of original records but our opinion is based (a)
with respect to land and rights of way for electric lines of 69,000 volts or
more, solely on reports and opinions by counsel in whom we have confidence and
(b) with respect to rights of way for electric lines of less than 69,000 volts
and various matters of fact in regard to all other properties, solely on
information from officers of the Company.
On this basis we are of the opinion that:
1. The Company is a corporation duly organized and existing under the
laws of Virginia and is duly qualified as a foreign corporation in West Virginia
and North Carolina. Neither the nature of the Company's business nor the
properties it owns or holds under lease makes necessary qualification as a
foreign corporation in any state where it is not now so qualified, and the
Company has corporate power to conduct its business and to issue the Senior
Notes.
2. All requisite corporate and governmental authorizations have been
given for the issuance of the Senior Notes under the Senior Indenture.
3. The Underwriting Agreement is a valid and legally enforceable
obligation of the Company.
4. The Senior Indenture has been duly authorized, executed, and
delivered by, and constitutes a valid and binding obligation of, the Company and
has been duly qualified under the Trust Indenture Act, except that we express no
opinion as to the validity or enforceability of any covenant to pay interest on
defaulted interest.
5. The Senior Notes have been duly authorized by the Company and, when
duly executed by the Company and completed and authenticated by the Trustee in
accordance with the Senior Indenture and issued, delivered and paid for in
accordance with the Underwriting Agreement, will have been duly issued under the
Senior Indenture and will constitute valid and binding obligations of the
Company entitled to the benefits provided by the Senior Indenture, except that
the enforceability thereof may be limited by bankruptcy, insolvency,
reorganization, moratorium or other similar laws affecting creditors' rights
generally from time to time in force and general principles of equity.
- 23 -
<PAGE>
[representative]
[date]
Page 24
6. The Registration Statement, as amended, with respect to the Senior
Notes filed pursuant to the Securities Act, has become effective and remains in
effect at this date, and the Prospectus may lawfully be used for the purposes
specified in the Securities Act in connection with the offer for sale and the
sale of the Senior Notes in the manner therein specified.
The statements in regard to our firm under the caption EXPERTS in the
Prospectus relating to the Senior Notes are correct, and we are of the opinion
that, so far as governed by the laws of the United States, North Carolina or
Virginia, the legal conclusions relating to franchises, title to its properties,
rates, environmental and other regulatory matters and litigation in the
Company's Annual Report on Form 10-K incorporated in the Prospectus by reference
and the description of the provisions of the Senior Indenture and the terms of
the Senior Notes contained in the Prospectus under DESCRIPTION OF THE DEBT
SECURITIES are substantially accurate and fair. As to the statistical statements
in the Registration Statement (which includes the Incorporated Documents), we
have relied solely on the officers of the Company. As to other matters of fact,
we have consulted with officers and other employees of the Company to inform
them of the disclosure requirements of the Securities Act and facilitated the
assembly of relevant data. We have examined various reports, records, contracts
and other documents of the Company and orders and instruments of public
officials, which our investigation led us to deem pertinent. In addition, we
attended the due diligence meetings with representatives of the Company and the
closing at which the Company satisfied the conditions contained in Paragraph 7
of the Underwriting Agreement. We have not, however, undertaken to make any
independent review of the other records of the Company. We accordingly assume no
responsibility for the accuracy or completeness of the statements made in the
Registration Statement except as stated above in regard to the aforesaid
captions. But such consultation, examination and attendance disclosed to us no
information with respect to such other matters that gives us reason to believe
that the Registration Statement or the Prospectus contained on the date the
Registration Statement became effective or contains now any untrue statement of
a material fact or omitted on said date or omits now to state a material fact
required to be stated therein or necessary to make the statements herein not
misleading. We are of the opinion that the Registration Statement (excepting the
financial statements incorporated therein by reference, as to which we express
no opinion) complies as to form in all material respects with all legal
requirements and is now effective.
The Registration Statement and the Prospectus (except the financial
statements incorporated by reference therein, as to which we express no opinion)
appear on their face to be appropriately responsive in all material respects to
the requirements of the Securities Act, and to the applicable rules and
regulations of the Commission thereunder.
- 24 -
<PAGE>
[representative]
[date]
Page 25
7. The titles and interests of the Company in and to its properties are
reasonably adequate to enable the Company to carry on its business and the
Company holds such franchises, permits and licenses as are reasonably adequate
to enable the Company to carry on its business, and, as to any franchises,
permits and licenses that the Company does not hold, the absence thereof will
not materially adversely affect the operations, business and properties of the
Company as a whole.
8. Except as set forth in the Registration Statement, there are no
pending legal, administrative or judicial proceedings with respect to the
Company that are required to be described in Form S-3.
The opinions in paragraphs 6 and 8 hereof are given on the basis that
any statement contained in an Incorporated Document shall be deemed not to be
contained in the Registration Statement or Prospectus if the statement has been
modified or superseded by any statement in a subsequently filed Incorporated
Document or in the Registration Statement or Prospectus.
Yours very truly,
HUNTON & WILLIAMS
- 25 -
Exhibit 1(iii)
VIRGINIA ELECTRIC AND POWER COMPANY
Senior Subordinated Notes
Series _, ____%, Due __________
FORM OF UNDERWRITING AGREEMENT
[Date]
[Name of Underwriter]
as Representative for
the Several Underwriters
named in Schedule II hereto
[Address of Underwriter]
Ladies and Gentlemen:
The undersigned, Virginia Electric and Power Company (the Company),
hereby confirms its agreement with the several Underwriters named in Schedule II
hereto (the Agreement) with respect to the sale to the several Underwriters of
certain of its Senior Subordinated Notes (the Senior Subordinated Notes)
specified in Schedule I hereto, and the public offering thereof by the several
Underwriters, upon the terms specified in Schedule I hereto.
1. Underwriters and Representative. The term "Underwriters" as used
herein shall be deemed to mean the several persons, firms or corporations
(including the Representative hereinafter mentioned) named in Schedule II
hereto, and the term "Representative" as used herein shall be deemed to mean the
representative to whom this Agreement is addressed, who by signing this
Agreement represents that it has been authorized by the other Underwriters to
execute this Agreement on their behalf and to act for them in the manner herein
provided. If there shall be only one person, firm or corporation named in
Schedule II hereto, the term "Underwriters" and the term "Representative" as
used herein shall mean that person, firm or corporation. All obligations of the
Underwriters hereunder are several and not joint. Any action under or in respect
of this Agreement taken by the Representative will be binding upon all the
Underwriters.
<PAGE>
2. Description of the Senior Subordinated Notes. Schedule I specifies
the aggregate principal amount of the Senior Subordinated Notes, the initial
public offering price of the Senior Subordinated Notes, the purchase price to be
paid by the Underwriters, and any concession from the initial public offering
price to be allowed to dealers or brokers, and sets forth the date, time and
manner of delivery of the Senior Subordinated Notes and payment therefor.
Schedule I also specifies (to the extent not set forth in the Registration
Statement and Prospectus referred to below) the terms and provisions for the
purchase of such Senior Subordinated Notes. The Senior Subordinated Notes will
be issued under the Company's Senior Subordinated Indenture dated as of
__________, ____ between the Company and The Chase Manhattan Bank, as
Trustee (the Trustee).
3. Representations and Warranties of the Company. The Company
represents and warrants to, and agrees with, the Underwriters that:
(a) A registration statement, No. 33-59581 on Form S-3 for the
registration of the Senior Subordinated Notes under the
Securities Act of 1933, as amended (the Securities Act),
heretofore filed with the Securities and Exchange Commission
(the Commission), a copy of which as so filed has been
delivered to you, has become effective. The registration
statement, including all exhibits thereto, as amended through
the date hereof, is hereinafter referred to as the
"Registration Statement"; the prospectus relating to the
Senior Subordinated Notes included in the Registration
Statement, which prospectus is now proposed to be supplemented
by a supplement relating to the Senior Subordinated Notes to
be filed with the Commission under the Securities Act, as so
supplemented, is hereinafter referred to as the "Prospectus".
As used herein, the terms "Registration Statement",
"prospectus" and "Prospectus" include all documents (including
any Current Report on Form 8-K) incorporated therein by
reference, and shall include any documents (including any
Current Report on Form 8-K) filed after the date of such
Registration Statement, prospectus or Prospectus and
incorporated therein by reference from the date of filing of
such incorporated documents (collectively, the Incorporated
Documents).
(b) No order suspending the effectiveness of the Registration
Statement or otherwise preventing or suspending the use of the
Prospectus has been issued by the Commission and is in effect
and no proceedings for that purpose are pending before or, to
the knowledge of the Company, threatened by the Commission.
The Registration Statement and the Prospectus comply in all
material respects with the provisions of the Securities Act,
the Securities Exchange Act of 1934 (the Securities Exchange
Act) and the Trust Indenture Act of 1939, as amended (the
Trust Indenture Act), and the rules, regulations and releases
of the Commission thereunder (the Rules and Regulations), and,
on the date hereof, neither the Registration Statement nor the
Prospectus contain an untrue statement of a material fact or
omit to state a material fact required to be stated
- 2 -
<PAGE>
therein or necessary to make the statements therein not
misleading, and, on the Closing Date, the Registration
Statement and the Prospectus (including any amendments and
supplements thereto) will conform in all respects to the
requirements of the Securities Act, the Trust Indenture Act
and the Rules and Regulations, and neither of such documents
will include any untrue statement of a material fact or omit
to state any material fact required to be stated therein or
necessary to make the statements therein not misleading;
provided, that the foregoing representations and warranties in
this paragraph (b) shall not apply to statements in or
omissions from the Registration Statement or the Prospectus
made in reliance upon information furnished herein or in
writing to the Company by the Underwriters or on the
Underwriters' behalf for use in the Registration Statement or
Prospectus; and provided, further, that the foregoing
representations and warranties are given on the basis that any
statement contained in an Incorporated Document shall be
deemed not to be contained in the Registration Statement or
Prospectus if the statement has been modified or superseded by
any statement in a subsequently filed Incorporated Document or
in the Registration Statement or Prospectus or in any
amendment or supplement thereto.
(c) Deloitte & Touche LLP, who have examined certain of the
Company's financial statements filed with the Commission and
incorporated by reference in the Registration Statement [and
the audited results for ____ for which financial statements
have not yet been released], are independent public
accountants as required by the Securities Act and the rules
and regulations of the Commission thereunder.
(d) Except as reflected in, or contemplated by, the Registration
Statement and Prospectus, since the respective most recent
dates as of which information is given in the Registration
Statement and Prospectus, there has not been any material
adverse change in the condition of the Company, financial or
otherwise. The Company has no material contingent financial
obligation that is not disclosed in each of the Registration
Statement and Prospectus.
(e) The Company has taken all corporate action necessary to be
taken by it to authorize the execution by it of this Agreement
and the performance by it of all obligations on its part to be
performed hereunder; and the consummation of the transactions
herein contemplated and the fulfillment of the terms hereof
will not result in a breach of any of the terms or provisions
of, or constitute a default under, any indenture, mortgage,
deed of trust, or other agreement or instrument to which the
Company is now a party, or the charter of the Company, as
amended, or any order, rule or regulation applicable to the
Company of any federal or state regulatory board or body or
administrative agency having jurisdiction over the Company or
over its property.
- 3 -
<PAGE>
(f) The Senior Subordinated Notes, upon issuance thereof, will
conform in all respects to the terms of the relevant order or
orders of the State Corporation Commission of Virginia (the
Virginia Commission) now or hereafter in effect with respect
to the Senior Subordinated Notes.
(g) The Company has complied and will comply with all of the
provisions of Florida H.B. 1771, codified as Section 517.075
of the Florida statutes, and all regulations promulgated
thereunder related to issuers of securities doing business
with Cuba.
4. Public Offering. On the basis of the representations and warranties
herein contained, but subject to the terms and conditions in this Agreement set
forth, the Company agrees to sell to each of the several Underwriters, and each
Underwriter agrees, severally and not jointly, to purchase from the Company, at
the price, place and time hereinafter specified, the principal amount of the
Senior Subordinated Notes set forth opposite the name of such Underwriter in
Schedule II hereto. The several Underwriters agree to make a public offering of
their respective Senior Subordinated Notes specified in Schedule II hereto at
the initial public offering price specified in Schedule I hereto. It is
understood that after such initial offering the several Underwriters reserve the
right to vary the offering price and further reserve the right to withdraw,
cancel or modify such offering without notice.
5. Time and Place of Closing. Delivery of the Senior Subordinated Notes
to, and payment therefor by, the Representative for the accounts of the several
Underwriters shall be made at the time, place and date specified in Schedule I
or such other time, place and date as the Representative and the Company may
agree upon in writing, and subject to the provisions of Section 10 hereof. The
hour and date of such delivery and payment are herein called the "Closing Date".
Unless otherwise specified in Schedule I hereto, payment for the Senior
Subordinated Notes shall be made to the Company or its order by check or checks
in New York Clearing House funds at the Closing Date against delivery of the
Senior Subordinated Notes, in fully registered form, to or upon your order. The
Senior Subordinated Notes shall be delivered in certificated form or in the form
of a global note in the denominations equal to the aggregate principal amount of
the Senior Subordinated Notes upon original issuance and registered in the name
of Cede & Co., as nominee for the Depositary Trust Company.
- 4 -
<PAGE>
6. Covenants of the Company. The Company agrees that:
(a) The Company, at or prior to the Closing Date, will deliver to
the Representative conformed copies of the Registration
Statement as originally filed, including all exhibits, any
related preliminary prospectus supplement, the Prospectus and
all amendments and supplements to each such document, in each
case as soon as available and in such quantities as are
reasonably requested by the Representative.
(b) The Company will pay all expenses in connection with (i) the
preparation and filing by it of the Registration Statement and
Prospectus and the printing of this Agreement (ii) the
preparation, issue and delivery of certificates for the Senior
Subordinated Notes, (iii) any fees and expenses of the Trustee
and (iv) the printing and delivery to the Underwriters in
reasonable quantities of copies of the Registration Statement
and the Prospectus (each as originally filed and as
subsequently amended). The Company also will pay all taxes, if
any, except transfer taxes, on the issue of the Senior
Subordinated Notes. In addition, the Company will pay the
reasonable fees and disbursements of Underwriters' counsel,
McGuire, Woods, Battle & Boothe, L.L.P., in connection with
the qualification of the Senior Subordinated Notes under state
securities or blue sky laws or investment laws (if and to the
extent such qualification is required by the Underwriters or
the Company).
(c) If, at any time when a prospectus relating to the Senior
Subordinated Notes is required to be delivered under the
Securities Act, any event occurs as a result of which the
Prospectus as then amended or supplemented would include an
untrue statement of a material fact or omit to state any
material fact necessary to make the statements therein, in the
light of the circumstances under which they were made, not
misleading, or if it is necessary at any time to amend the
Prospectus to comply with the Securities Act, the Company
promptly will (i) notify the Representative to suspend
solicitation of purchases of the Senior Subordinated Notes and
(ii) at its expense, prepare and file with the Commission an
amendment or supplement which will correct such statement or
omission or an amendment which will effect such compliance. In
case any Underwriter is required to deliver a prospectus in
connection with the sale of any Senior Subordinated Notes
after the expiration of the period specified in the preceding
sentence, the Company, upon the request of the Representative,
will furnish to the Representative, at the expense of such
Underwriter, a reasonable quantity of a supplemented or
amended prospectus, or supplements or amendments to the
Prospectus, complying with Section 10(a) of the Securities
Act. During the period specified in the second sentence of
this paragraph, the Company will continue to prepare and file
with the Commission on a timely basis all documents or
amendments required under the Securities Exchange Act and the
applicable rules and regulations of the Commission thereunder;
provided, that the Company shall
- 5 -
<PAGE>
not file such documents or amendments without also furnishing
copies thereof to the Representative and McGuire, Woods,
Battle & Boothe, L.L.P.
(d) The Company will advise the Representative promptly of any
proposal to amend or supplement the Registration Statement or
the Prospectus and will afford the Representative a reasonable
opportunity to comment on any such proposed amendment or
supplement; and the Company will also advise the
Representative promptly of the filing of any such amendment or
supplement and of the institution by the Commission of any
stop order proceedings in respect of the Registration
Statement or of any part thereof and will use its best efforts
to prevent the issuance of any such stop order and to obtain
as soon as possible its lifting, if issued.
(e) The Company will make generally available to its security
holders, as soon as it is practicable to do so, an earnings
statement of the Company (which need not be audited) in
reasonable detail, covering a period of at least 12 months
beginning within three months after the effective date of the
Registration Statement, which earnings statement shall satisfy
the requirements of Section 11(a) of the Securities Act.
(f) For a period of five years following the Closing Date, the
Company will deliver to the Representative, as soon as
practicable after the end of each fiscal year, a balance sheet
of the Company as of the end of such year and statements of
income and earnings reinvested in business for such year, all
as certified by independent public or certified public
accountants, and will deliver to the Representative upon
request, as soon as practicable after the end of each
quarterly period, statements of income and earnings reinvested
in business for the 12 month period ending with the end of
such quarterly period.
(g) The Company will use its best efforts promptly to do and
perform all things to be done and performed by it hereunder
prior to the Closing Date and to satisfy all conditions
precedent required of it to the delivery by it of the Senior
Subordinated Notes.
(h) The Company will furnish such proper information as may be
lawfully required and otherwise cooperate in qualifying the
Senior Subordinated Notes for offer and sale under the
securities or blue sky laws of such states as the
Representative may designate; provided, however, that the
Company shall not be required in any state to qualify as a
foreign corporation, or to file a general consent to service
of process, or to submit to any requirements which it deems
unduly burdensome.
(i) Fees and disbursements of McGuire, Woods, Battle & Boothe,
L.L.P. who are acting as counsel for the Underwriters
(exclusive of fees and disbursements of such counsel which are
to be paid as set forth in paragraph 6(b)), shall be paid by
the
- 6 -
<PAGE>
Underwriters; provided, however, that if this Agreement is
terminated in accordance with the provisions of Sections 7 or
8 hereof, the Company shall reimburse the Representative for
the account of the Underwriters for the amount of such fees
and disbursements.
7. Conditions of Underwriters' Obligations; Termination by the
Underwriters.
(a) The obligations of the Underwriters to purchase
and pay for the Senior Subordinated Notes shall be subject to
the following conditions:
(i) No stop order suspending the effectiveness of the
Registration Statement shall be in effect on the
Closing Date and no proceedings for that purpose shall
be pending before, or to the knowledge of the Company
threatened by, the Commission on such date. The
Representative shall have received, prior to payment
for the Senior Subordinated Notes, a certificate dated
the Closing Date and signed by the President or any
Vice President of the Company to the effect that no
such stop order is in effect and that no proceedings
for such purpose are pending before or, to the
knowledge of the Company, threatened by the
Commission.
(ii) At the Closing Date an order or orders of the Virginia
Commission permitting the issuance and sale of the
Senior Subordinated Notes substantially in accordance
with the terms and conditions hereof shall be in full
force and effect and shall contain no provision
unacceptable to the Representative or the Company (but
all provisions of such order or orders heretofore
entered are deemed acceptable to the Representative
and the Company, and all provisions of such order or
orders hereafter entered shall be deemed acceptable to
the Representative and the Company unless within 24
hours after receiving a copy of any such order either
shall give notice to the other to the effect that such
order contains an unacceptable provision).
(iii) At the Closing Date the Representative shall receive,
on behalf of the several Underwriters, the opinions of
McGuire, Woods, Battle & Boothe, L.L.P., Hunton &
Williams and Jackson & Kelly, substantially in the
forms attached hereto as Schedules III and V.
(iv) On the date of this Agreement and on the Closing Date,
the Representative shall have received from Deloitte &
Touche LLP a letter addressed to the Representative,
dated the date of this Agreement and the Closing Date,
respectively, (A) confirming that they are independent
public accountants as required by the Securities Act;
(B) stating in effect
- 7 -
<PAGE>
that, in their opinion, the audited financial
statements included in or incorporated by reference in
the Registration Statement and the Prospectus and
audited by them as stated in their report incorporated
by reference in the Registration Statement (the
Audited Financial Statements), comply as to form in
all material respects with the applicable accounting
requirements adopted pursuant to the Securities
Exchange Act; (C) stating, in effect, that on the
basis of a reading of the minutes of the meetings of
the Board of Directors of the Company and of
committees of the Board since the end of the period
covered by the Audited Financial Statements, a reading
of the unaudited financial statements incorporated by
reference in the Prospectus (if any), of the unaudited
statement of income for any interim period for which
information is included in the Prospectus under the
caption "Selected Financial Information" or any
section updating such information, and of the latest
available unaudited financial statements of the
Company covering a period of twelve months ending
after the end of the period covered by the Audited
Financial Statements (if any), and inquiries of
officials of the Company responsible for financial and
accounting matters (which procedures did not
constitute an audit made in accordance with generally
accepted auditing standards), nothing came to their
attention that caused them to believe that such
unaudited financial statements incorporated by
reference in the Prospectus are not in conformity with
generally accepted accounting principles applied on a
basis substantially consistent with that of the
Audited Financial Statements; and (D) stating, in
effect, that on the basis of more limited procedures
than those set forth in the foregoing clause (C),
consisting merely of the reading of the minutes
referred to in said clause and inquiries of officials
of the Company responsible for financial and
accounting matters, nothing came to their attention at
a date not more than five business days prior to the
date of such letter that caused them to believe that
(1) at such date there was any decrease in common
stockholder's equity or any increase in funded debt of
the Company or any decrease in net assets as compared
with the amounts shown in the balance sheet included
in the most recent financial statements incorporated
by reference, or (2) for the period from the date of
the most recent unaudited financial statements
included or incorporated by reference in the
Registration Statement and the Prospectus to a date
not more than five business days prior to the date of
such letter there were any decreases, as compared with
the corresponding period in the preceding year, in the
operating revenues, operating income or net income,
except (with respect to (1) or (2)) in all instances
for changes or decreases that the Registration
Statement discloses have occurred or may occur;
provided, however, that said letters may vary from the
- 8 -
<PAGE>
requirements specified in clause (D) hereof in such
manner as the Representative in its sole discretion
may deem to be acceptable. Said letters shall also
state that the dollar amounts, percentages and other
financial information (in each case to the extent that
such dollar amounts, percentages and other financial
information, either directly or by analysis or
computation, are derived from the general accounting
records of the Company) that appear (1) in the
Prospectus under the captions "Selected Financial
Information" and "Other Selected Data" and under any
caption contained in a supplement to the Prospectus
updating such dollar amounts, percentages and other
financial information (limited to total assets and
utility plant expenditures), (2) in the Company's most
recent Annual Report on Form 10-K under the caption
"Selected Financial Data" or (3) in the Registration
Statement under the caption "Ratio of Earnings to
Fixed Charges" have been compared with the general
accounting records of the Company and such dollar
amounts, percentages and financial information have
been found to be in agreement with the accounting
records of the Company and the computations have been
found to be arithmetically correct. Each such letter
shall relate to the Registration Statement and
Prospectus as amended or supplemented to the date of
each such letter.
(v) Subsequent to the execution of this Agreement and
prior to the Closing Date, (A) except as reflected in,
or contemplated by, the Registration Statement and the
Prospectus, there shall not have occurred (1) any
change in the Senior Subordinated Notes of the Company
(other than a decrease in the aggregate principal
amount thereof outstanding), (2) any material adverse
change in the general affairs, financial condition or
earnings of the Company (whether or not arising in the
ordinary course of business) or (3) any material
transaction entered into by the Company other than a
transaction in the ordinary course of business, the
effect of which in each such case in the judgment of
the Representative is so material and so adverse that
it makes it inadvisable to proceed with the public
offering or delivery of the Senior Subordinated Notes
on the terms and in the manner contemplated in the
Prospectus and this Agreement, or (B) there shall not
have occurred (1) a downgrading in the rating accorded
the Company's senior unsecured notes by any
"nationally recognized statistical rating
organization" (as that term is defined by the
Commission for purposes of Rule 436(g)(2) under the
Securities Act), (2) any general suspension of trading
in securities on the New York Stock Exchange or any
limitation on prices for such trading or any
restrictions on the distribution of securities
established by the New York Stock Exchange or
- 9 -
<PAGE>
by the Commission or by any federal or state agency or
by the decision of any court, (3) a banking moratorium
declared either by federal or New York State
authorities or (4) any outbreak or escalation of major
hostilities in which the Unites States is involved,
any declaration of war by the United States Congress
or any other substantial national or international
calamity or crisis resulting in the declaration of a
national emergency, the effect of which outbreak,
escalation, declaration, calamity or crisis, in the
reasonable judgment of the Representative, makes it
impracticable or inadvisable to proceed with the
public offering or delivery of the Senior Subordinated
Notes on the terms and in the manner contemplated in
the Prospectus and in this Agreement.
(vi) On the Closing Date, the representations and
warranties of the Company in this Agreement shall be
true and correct as if made on and as of such date,
and the Company shall have performed all obligations
and satisfied all conditions required of it under this
Agreement; and, at the Closing Date, the
Representative shall have received a certificate to
such effect signed by the President or any Vice
President of the Company.
(vii) All legal proceedings to be taken in connection with
the issuance and sale of the Senior Subordinated Notes
shall have been satisfactory in form and substance to
McGuire, Woods, Battle & Boothe, L.L.P.
(b) In case any of the conditions specified above in paragraph
7(a) shall not have been fulfilled, this Agreement may be
terminated by the Representative upon mailing or delivering
written notice thereof to the Company; provided, however, that
in case the conditions specified in subparagraphs 7(a)(v) and
(vi) shall not have been fulfilled, this Agreement may not be
so terminated by the Representative unless Underwriters who
have agreed to purchase in the aggregate 50% or more of the
aggregate principal amount of the Senior Subordinated Notes
shall have consented to such termination and the aforesaid
notice shall so state. Any such termination shall be without
liability of any party to any other party except as otherwise
provided in Section 9 and paragraphs 6(b), 6(i) and 7(c)
hereof.
(c) If this Agreement shall be terminated by the Representative
pursuant to paragraph (b) above or because of any failure or
refusal on the part of the Company to comply with the terms or
to fulfill any of the conditions of this Agreement, or if for
any reason the Company shall be unable to perform its
obligations under this Agreement, then in any such case, the
Company will
- 10 -
<PAGE>
reimburse the Underwriters, severally, for all out-of-pocket
expenses (in addition to the fees and disbursements of their
counsel as provided in paragraph 6(i)) reasonably incurred by
such Underwriters in connection with this Agreement or the
offering contemplated hereunder and, upon such reimbursement,
the Company shall be absolved from any further liability
hereunder, except as provided in paragraph 6(b) and Section 9.
8. Conditions of the Obligation of the Company. The obligation of the
Company to deliver the Senior Subordinated Notes shall be subject to the
conditions set forth in the first sentence of subparagraph 7(a)(i) and in
subparagraph 7(a)(ii). In case said conditions shall not have been fulfilled,
this Agreement may be terminated by the Company by mailing or delivering written
notice thereof to the Representative. Any such termination shall be without
liability of any party to any other party except as otherwise provided in
paragraphs 6(b), 6(i), 9 and 10(c) hereof.
9. Indemnification. (a) The Company agrees to indemnify and hold
harmless each Underwriter and each person who controls any Underwriter within
the meaning of Section 15 of the Securities Act or Section 20(a) of the
Securities Exchange Act, against any and all losses, claims, damages or
liabilities, joint or several, to which they or any of them may become subject
under the Securities Act, the Securities Exchange Act, or any other statute or
common law and to reimburse each such Underwriter and controlling person for any
legal or other expenses (including, to the extent hereinafter provided,
reasonable counsel fees) incurred by them in connection with investigating any
such losses, claims, damages, or liabilities, or in connection with defending
any actions, insofar as such losses, claims, damages, liabilities, expenses or
actions arise out of or are based upon any untrue statement or alleged untrue
statement of a material fact contained in the Registration Statement or the
Prospectus, or in either such document as amended or supplemented (if any
amendments or supplements thereto shall have been furnished), or any Preliminary
Prospectus (if and when used prior to the effective date of the Registration
Statement), or the omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements therein not
misleading; provided that the foregoing agreement, insofar as it relates to any
Preliminary Prospectus, shall not inure to the benefit of any Underwriter (or to
the benefit of any person who controls such Underwriter) on account of any
losses, claims, damages or liabilities arising out of the sale of any of the
Senior Subordinated Notes by such Underwriter to any person if it shall be
established that a copy of the Prospectus, excluding any documents incorporated
by reference (as supplemented or amended, if the Company shall have made any
supplements or amendments which have been furnished to the Representative),
shall not have been sent or given by or on behalf of such Underwriter to such
person at or prior to the written confirmation of the sale to such person in any
case where such delivery is required by the Securities Act, if the misstatement
or omission leading to such loss, claim, damage or liability was corrected in
the Prospectus (excluding any documents incorporated by reference) as amended or
supplemented,
- 11 -
<PAGE>
and such correction would have cured the defect giving rise to such loss, claim,
damage, or liability; and provided further, however, that the indemnity
agreement contained in this paragraph 9(a) shall not apply to any such losses,
claims, damages, liabilities, expenses or actions arising out of or based upon
any such untrue statement or alleged untrue statement, or any such omission or
alleged omission, if such statement or omission was made in reliance upon
information furnished herein or otherwise in writing to the Company by or on
behalf of any Underwriter for use in the Registration Statement or any amendment
thereto, in the Prospectus or any supplement thereto, or in any Preliminary
Prospectus. The indemnity agreement of the Company contained in this paragraph
(a) and the representations and warranties of the Company contained in Section 3
hereof shall remain operative and in full force and effect, regardless of any
investigation made by or on behalf of any Underwriter or any such controlling
person, and shall survive the delivery of the Senior Subordinated Notes.
(b) Each Underwriter agrees, severally and not jointly, to indemnify
and hold harmless the Company, its officers and directors, each other
Underwriter, and each person who controls any thereof within the meaning of
Section 15 of the Securities Act or Section 20(a) of the Securities Exchange
Act, against any and all losses, claims, damages or liabilities, joint or
several, to which they or any of them may become subject under the Securities
Act, the Securities Exchange Act, or any other statute or common law and to
reimburse each of them for any legal or other expenses (including, to the extent
hereinafter provided, reasonable counsel fees) incurred by them in connection
with investigating any such losses, claims, damages or liabilities or in
connection with defending any actions, insofar as such losses, claims, damages,
liabilities, expenses or actions arise out of or are based upon any untrue
statement or alleged untrue statement of a material fact contained in the
Registration Statement or the Prospectus, or in either such document as amended
or supplemented (if any amendments or supplements thereto shall have been
furnished), or any Preliminary Prospectus (if and when used prior to the
effective date of the Registration Statement), or the omission or alleged
omission to state therein a material fact required to be stated therein or
necessary to make the statements therein not misleading, if such statement or
omission was made in reliance upon information furnished herein or in writing to
the Company by or on behalf of such Underwriter for use in the Registration
Statement or the Prospectus or any amendment or supplement to either thereof, or
any Preliminary Prospectus. The indemnity agreement of the respective
Underwriters contained in this paragraph 9(b) shall remain operative and in full
force and effect, regardless of any investigation made by or on behalf of the
Company, or any such other Underwriter or any such controlling person, and shall
survive the delivery of the Senior Subordinated Notes.
(c) The Company and each of the Underwriters agrees that, upon the
receipt of notice of the commencement of any action against the Company or any
of its officers or directors, or any person controlling the Company, or against
such Underwriter or controlling person as aforesaid, in respect of which
indemnity may be sought on account of any indemnity agreement contained herein,
it will promptly give written notice of the commencement thereof to the party or
parties against whom indemnity shall be sought hereunder, but the omission so to
notify such
- 12 -
<PAGE>
indemnifying party or parties of any such action shall not relieve such
indemnifying party or parties from any liability which it or they may have to
the indemnified party otherwise than on account of such indemnity agreement. In
case such notice of any such action shall be so given, such indemnifying party
shall be entitled to participate at its own expense in the defense or, if it so
elects, to assume (in conjunction with any other indemnifying parties) the
defense of such action, in which event such defense shall be conducted by
counsel chosen by such indemnifying party (or parties) and satisfactory to the
indemnified party or parties who shall be defendant or defendants in such
action, and such defendant or defendants shall bear the fees and expenses of any
additional counsel retained by them; provided that, if the defendants in any
such action include both the indemnified party and the indemnifying party (or
parties) and the indemnified party shall have reasonably concluded that there
may be legal defenses available to it and/or other indemnified parties which are
different from or additional to those available to the indemnifying party (or
parties), the indemnified party shall have the right to select separate counsel
to assert such legal defenses and to participate otherwise in the defense of
such action on behalf of such indemnified party. The indemnifying party shall
bear the reasonable fees and expenses of counsel retained by the indemnified
party if (i) the indemnified party shall have retained such counsel in
connection with the assertion of legal defenses in accordance with the proviso
to the preceding sentence (it being understood, however, that the indemnifying
party shall not be liable for the expenses of more than one separate counsel,
representing the indemnified parties under paragraph 9(a) or 9(b), as the case
may be, who are parties to such action), (ii) the indemnifying party shall have
elected not to assume the defense of such action, (iii) the indemnifying party
shall not have employed counsel satisfactory to the indemnified party to
represent the indemnified party within a reasonable time after notice of the
commencement of the action, or (iv) the indemnifying party has authorized the
employment of counsel for the indemnified party at the expense of the
indemnifying party.
(d) If the indemnification provided for in this Section 9 is
unavailable to or insufficient to hold harmless an indemnified party under
paragraph (a) or (b) above in respect of any losses, claims, damages or
liabilities (or actions in respect thereof) referred to therein, then each
indemnifying party shall contribute to the amount paid or payable by such
indemnified party as a result of such losses, claims, damages or liabilities (or
actions in respect thereof) in such proportion as is appropriate to reflect the
relative fault of the Company, on the one hand, and of you, on the other, in
connection with the statements or omissions that resulted in such losses,
claims, damages or liabilities (or actions in respect thereof), as well as any
other relevant equitable considerations, including relative benefit. The
relative fault shall be determined by reference to, among other things, whether
the untrue or alleged untrue statement of a material fact or the omission or
alleged omission to state a material fact required to be stated therein or
necessary in order to make the statements therein not misleading relates to
information supplied by the Company on the one hand or by you on the other and
the parties' relative intent, knowledge, access to information and opportunity
to correct or prevent such statement or omission. The Company and you agree that
it would not be just and equitable if contribution pursuant to this paragraph
(d) were determined by pro rata allocation or by any other method
- 13 -
<PAGE>
of allocation which does not take account of the equitable considerations
referred to above in this paragraph (d). The amount paid or payable by an
indemnified party as a result of the losses, claims, damages or liabilities (or
actions in respect thereof) referred to above in this paragraph (d) shall be
deemed to include any legal or other expenses reasonably incurred by such
indemnified party in connection with investigating or defending any such action
or claim. No person guilty of fraudulent misrepresentation (within the meaning
of Section 11(f) of the Securities Act) shall be entitled to contribution from
any person who was not guilty of such fraudulent misrepresentation. The
Underwriters' obligations under this paragraph (d) to contribute are several in
proportion to their respective underwriting obligations and not joint.
10. Termination by the Company. If any one or more of the Underwriters
shall fail or refuse to purchase the Senior Subordinated Notes which it or they
have agreed to purchase hereunder, and the aggregate principal amount of the
Senior Subordinated Notes which such defaulting Underwriter or Underwriters
agreed but failed or refused to purchase is not more than one-tenth of the
aggregate principal amount of the Senior Subordinated Notes, the other
Underwriters shall be obligated severally in the proportions which the principal
amount of the Senior Subordinated Notes set forth opposite their respective
names in Schedule II bears to the aggregate principal amount of the Senior
Subordinated Notes, or in such other proportions as the Underwriters may
specify, to purchase the Senior Subordinated Notes which such defaulting
Underwriter or Underwriters agreed but failed or refused to purchase. If any
Underwriter or Underwriters shall so fail or refuse to purchase Senior
Subordinated Notes and the aggregate principal amount of the Senior Subordinated
Notes with respect to which such default occurs is more than one-tenth of the
aggregate principal amount of the Senior Subordinated Notes and arrangements
satisfactory to the Underwriters and the Company for the purchase of such Senior
Subordinated Notes are not made within 36 hours after such default, this
Agreement will terminate without liability on the part of any non-defaulting
Underwriter (except as provided in paragraph 6(i) and Section 9) or of the
Company (except as provided in paragraph 6(b) and Section 9). In any such case
not involving a termination, either the Representative or the Company shall have
the right to postpone the Closing Date, but in no event for longer than seven
days, in order that the required changes, if any, in the Registration Statement
and in the Prospectus or in any other documents or arrangements may be effected.
Any action taken under this Section 10 shall not relieve any defaulting
Underwriter from liability in respect of any default of such Underwriter under
this Agreement.
11. Representations, Warranties and Agreements to Survive Delivery. All
representations, warranties and agreements contained in this Agreement or
contained in certificates of officers of the Company submitted pursuant hereto
shall remain operative and in full force and effect regardless of any
investigation made by or on behalf of any Underwriter or any controlling person
of any Underwriter, or by or on behalf of the Company, and shall survive
delivery of the Senior Subordinated Notes.
- 14 -
<PAGE>
12. Miscellaneous. The validity and interpretation of this Agreement
shall be governed by the laws of the State of New York. This Agreement shall
inure to the benefit of the Company, the Underwriters and, with respect to the
provisions of Section 9 hereof, each controlling person and each officer and
director of the Company referred to in said Section 9, and their respective
successors, assigns, executors and administrators. Nothing in this Agreement is
intended or shall be construed to give to any other person, firm or corporation
any legal or equitable right, remedy or claim under or in respect of this
Agreement or any provision herein contained. The term "successors" as used in
this Agreement shall not include any purchaser, as such, of any of the Senior
Subordinated Notes from any of the several Underwriters.
13. Notices. All communications hereunder shall be in writing and if to
the Underwriters shall be mailed, telexed, telecopied or delivered to the
Representative at the address set forth on Schedule I hereto, or if to the
Company shall be mailed, telexed, telecopied or delivered to it, attention of
Treasurer, Virginia Electric and Power Company, 701 E. Cary Street, Richmond,
Virginia 23219.
- 15 -
<PAGE>
Please sign and return to us a counterpart of this letter, whereupon
this letter will become a binding agreement between the Company and the several
Underwriters in accordance with its terms.
VIRGINIA ELECTRIC AND POWER COMPANY
By:_________________________________
Title:
The foregoing agreement is hereby confirmed and accepted, as of the date first
above written.
[Name of Underwriter]
By:________________________________
Title:
Acting individually and on behalf of the other several Underwriters named in
Schedule II hereto.
- 16 -
<PAGE>
SCHEDULE I
Title of Senior Subordinated Notes: Senior Subordinated Notes of 199_,
Series _, ____%, due [date]
Aggregate Principal Amount: $_____________
Initial Price to Public:
% of the principal amount of the Senior Subordinated
Notes plus accrued interest, if any, from the date of issuance
Initial Purchase Price to be paid by Underwriters:
% of the principal amount of the Senior Subordinated
Notes
Specified funds for payment of purchase price (N.Y. Clearing House Funds unless
otherwise specified).
Time of Delivery: [Closing Date and time]
Closing Location: 200 Park Avenue, 43rd Floor
New York, NY
The Senior Subordinated Notes will be available for inspection by the
Representative at: 200 Park Avenue, 43rd Floor
New York, NY
Address for Notices to the Underwriters:
- 17 -
<PAGE>
SCHEDULE II
Principal Amount
Underwriter of Senior Subordinated Notes to be Purchased
- 18 -
<PAGE>
SCHEDULE III
PROPOSED FORM OF OPINION
OF
MCGUIRE, WOODS, BATTLE & BOOTHE, L.L.P.
One James Center
Richmond, VA 23219
Re: VIRGINIA ELECTRIC AND POWER COMPANY
Senior Subordinated Notes of 199_
Series _, ____%, due [date]
[Closing Date]
[name and address of
Representative]
Ladies and Gentlemen:
We have acted as counsel for you in connection with arrangements for
the issuance by Virginia Electric and Power Company (the Company) of up to U.S.
$[ ] aggregate principal amount of its Senior Subordinated Notes, Series __ due
___ (the Senior Subordinated Notes) under and pursuant to a Senior Subordinated
Indenture, dated as of ___________, ____ (the Senior Subordinated Indenture)
between the Company and The Chase Manhattan Bank, as trustee (the Trustee), and
the offering of the Senior Subordinated Notes by you pursuant to an Underwriting
Agreement dated [ ] by and between you and the Company (the Underwriting
Agreement). All terms not otherwise defined herein shall have the meanings set
forth in the Underwriting Agreement.
We have examined originals, or copies certified to our satisfaction of
such corporate records of the Company, indentures, agreements and other
instruments, certificates of public officials, certificates of officers and
representatives of the Company and of the Trustee, and other documents, as we
have deemed necessary as a basis for the opinions hereinafter expressed. As to
various questions of fact material to such opinions, we have, when relevant
facts were not
- 19 -
<PAGE>
independently established, relied upon certifications by officers of the
Company, the Trustee and other appropriate persons and statements contained in
the Registration Statement hereinafter mentioned. All legal proceedings taken as
of the date hereof in connection with the transactions contemplated by the
Underwriting Agreement have been satisfactory to us.
In addition, we attended the closing held today at the offices of
Hunton & Williams, 200 Park Avenue, New York, New York, at which the Company
satisfied the conditions contained in Section 7 of the Underwriting Agreement
that are required to be satisfied as of the Closing Date.
Based upon the foregoing, and having regard to legal considerations
that we deem relevant, we are of the opinion that:
A. The Company is a corporation duly incorporated and existing under
the laws of Virginia and is duly qualified as a foreign corporation in West
Virginia and North Carolina, and has corporate power to transact its business as
described in the Prospectus.
B. The Underwriting Agreement has been duly authorized by all necessary
corporate action and has been duly executed and delivered by the Company.
C. The Senior Subordinated Indenture has been duly authorized, executed
and delivered by, and constitutes a valid and binding obligation of, the Company
and has been duly qualified under the Trust Indenture Act, except that we
express no opinion as to the validity or enforceability of any covenant to pay
interest on defaulted interest.
D. The Senior Subordinated Notes have been duly authorized by the
Company and, when executed by the Company and completed and authenticated by the
Trustee in accordance with the Senior Subordinated Indenture and delivered and
paid for as provided in the Underwriting Agreement, will have been duly issued
under the Senior Subordinated Indenture and will constitute valid and binding
obligations of the Company entitled to the benefits provided by the Senior
Subordinated Indenture, except that the enforceability thereof may be limited by
bankruptcy, insolvency, reorganization, moratorium or other similar laws
affecting creditors' rights generally from time to time in force and general
principles of equity.
E. The Registration Statement with respect to the Senior Subordinated
Notes filed pursuant to the Securities Act, has become effective and remains in
effect at this date, and the Prospectus in the form filed as part of the
Registration Statement, including all Incorporated Documents constituting a part
thereof, may lawfully be used for the purposes specified in the Securities Act
in connection with the offer for sale and the sale of Senior Subordinated Notes
in the manner therein specified.
- 20 -
<PAGE>
The Registration Statement and the Prospectus (except the financial
statements incorporated by reference therein, as to which we express no opinion)
appear on their face to be appropriately responsive in all material respects to
the requirements of the Securities Act, and to the applicable rules and
regulations of the Commission thereunder.
As to the statements under DESCRIPTION OF THE DEBT SECURITIES, subject
to the concluding paragraph of this opinion, we are of the opinion that the
statements are accurate and do not omit any material fact required to be stated
therein or necessary to make such statements not misleading. As to the
statistical statements in the Registration Statement (which includes the
Incorporated Documents), we have relied solely on the officers of the Company.
As to other matters, we have not undertaken to determine independently the
accuracy or completeness of the statements contained or incorporated by
reference in the Registration Statement or in the Prospectus. We have, however,
participated in conferences with counsel for and representative of the Company
in connection with the preparation of the Registration Statement and the
Prospectus, and we have reviewed all Incorporated Documents and such of the
corporate records of the Company as we deemed advisable. None of the foregoing
disclosed to us any information that gives us reason to believe that the
Registration Statement or the Prospectus contained (except the financial
statements incorporated by reference therein, as to which we express no opinion)
on the date the Registration Statement became effective or now contains any
untrue statement of a material fact or omitted on said date or now omits to
state a material fact required to be stated therein or necessary to make the
statements therein not misleading. The foregoing opinion is given on the basis
that any statement contained in an Incorporated Document shall be deemed not to
be contained in the Registration Statement or Prospectus if the statement has
been modified or superseded by any statement in a subsequently filed
Incorporated Document or in the Registration Statement or Prospectus.
F. An appropriate order of the Virginia commission with respect to the
sale of the Senior Subordinated Notes on the terms and condition set forth in
the Underwriting Agreement has been issued, and said order remains in effect at
this date and constitutes valid and sufficient authorization for the sale of the
Senior Subordinated Notes as contemplated by the Underwriting Agreement. We
understand said order does not contain any provision unacceptable to you under
the Underwriting Agreement. No approval or consent by any public regulatory
body, other than such order and notification of effectiveness by the Commission,
is legally required in connection with the sale of the Senior Subordinated Notes
as contemplated by the Underwriting Agreement (except compliance with the
provisions of securities or blue-sky laws of certain states in connection with
the sale of the Senior Subordinated Notes in such states) and the carrying out
of the provisions of the Underwriting Agreement.
G. The Senior Subordinated Notes conform to their description in the
Underwriting Agreement and to the statements with respect thereto contained in
the Registration Statement and the Prospectus.
- 21 -
<PAGE>
To the extent that the foregoing opinions involve matters governed by
the laws of North Carolina and West Virginia, we have relied upon the opinion of
Messrs. Hunton & Williams concurrently delivered to you, and we believe that you
are justified in relying thereon.
Very truly yours,
McGuire, Woods Battle & Boothe, L.L.P.
- 22 -
<PAGE>
SCHEDULE IV
PROPOSED FORM OF OPINION
OF
HUNTON & WILLIAMS
Riverfront Plaza, East Tower
951 E. Byrd Street
Richmond, Virginia 23219
Re: VIRGINIA ELECTRIC AND POWER COMPANY
Senior Subordinated Notes of 199_
Series _, ____%, due [date]
[Closing Date]
[name and address of
Representative]
Sirs:
The arrangements for issuance of up to U.S. $[ ] aggregate principal
amount of Senior Subordinated Notes, Series ___, due ___ (the Senior
Subordinated Notes), of Virginia Electric and Power Company (the Company) under
a Senior Subordinated Indenture, dated as of ___________, ____ (the Senior
Subordinated Indenture), between the Company and The Chase Manhattan Bank, as
trustee (the Trustee), pursuant to an Underwriting Agreement dated [ ] by and
between the Company and [ ] (the Underwriting Agreement), have been taken under
our supervision as counsel for the Company. Terms not otherwise defined herein
have the meanings set forth in the Underwriting Agreement.
We have examined originals, or copies certified to our satisfaction, of
such corporate records of the Company, indentures, agreements, and other
instruments, certificates of public
- 23 -
<PAGE>
[representative]
[date]
Page 24
officials, certificates of officers and representatives of the Company and of
the Trustee, and other documents, as we have deemed it necessary to require as a
basis for the opinions hereinafter expressed. As to various questions of fact
material to such opinions, we have, when relevant facts were not independently
established, relied upon certifications by officers of the Company, the Trustee
and other appropriate persons and statements contained in the Registration
Statement hereinafter mentioned. All legal proceedings taken as of the date
hereof in connection with the transactions contemplated by the Underwriting
Agreement have been satisfactory to us.
In regard to the title of the Company to its properties, we have made
no independent investigation of original records but our opinion is based (a)
with respect to land and rights of way for electric lines of 69,000 volts or
more, solely on reports and opinions by counsel in whom we have confidence and
(b) with respect to rights of way for electric lines of less than 69,000 volts
and various matters of fact in regard to all other properties, solely on
information from officers of the Company.
On this basis we are of the opinion that:
1. The Company is a corporation duly organized and existing under the
laws of Virginia and is duly qualified as a foreign corporation in West Virginia
and North Carolina. Neither the nature of the Company's business nor the
properties it owns or holds under lease makes necessary qualification as a
foreign corporation in any state where it is not now so qualified, and the
Company has corporate power to conduct its business and to issue the Senior
Subordinated Notes.
2. All requisite corporate and governmental authorizations have been
given for the issuance of the Senior Subordinated Notes under the Senior
Subordinated Indenture.
3. The Underwriting Agreement is a valid and legally enforceable
obligation of the Company.
4. The Senior Subordinated Indenture has been duly authorized,
executed, and delivered by, and constitutes a valid and binding obligation of,
the Company and has been duly qualified under the Trust Indenture Act, except
that we express no opinion as to the validity or enforceability of any covenant
to pay interest on defaulted interest.
5. The Senior Subordinated Notes have been duly authorized by the
Company and, when duly executed by the Company and completed and authenticated
by the Trustee in accordance with the Senior Subordinated Indenture and issued,
delivered and paid for in accordance with the Underwriting Agreement, will have
been duly issued under the Senior Subordinated Indenture and will constitute
valid and binding obligations of the Company entitled to the benefits provided
by the Senior Subordinated Indenture, except that the enforceability thereof may
be limited by bankruptcy, insolvency, reorganization, moratorium or other
similar
- 24 -
<PAGE>
[representative]
[date]
Page 25
laws affecting creditors' rights generally from time to time in force and
general principles of equity.
6. The Registration Statement, as amended, with respect to the Senior
Subordinated Notes filed pursuant to the Securities Act, has become effective
and remains in effect at this date, and the Prospectus may lawfully be used for
the purposes specified in the Securities Act in connection with the offer for
sale and the sale of the Senior Subordinated Notes in the manner therein
specified.
The statements in regard to our firm under the caption EXPERTS in the
Prospectus relating to the Senior Subordinated Notes are correct, and we are of
the opinion that, so far as governed by the laws of the United States, North
Carolina or Virginia, the legal conclusions relating to franchises, title to its
properties, rates, environmental and other regulatory matters and litigation in
the Company's Annual Report on Form 10-K incorporated in the Prospectus by
reference and the description of the provisions of the Senior Subordinated
Indenture and the terms of the Senior Subordinated Notes contained in the
Prospectus under DESCRIPTION OF THE DEBT SECURITIES are substantially accurate
and fair. As to the statistical statements in the Registration Statement (which
includes the Incorporated Documents), we have relied solely on the officers of
the Company. As to other matters of fact, we have consulted with officers and
other employees of the Company to inform them of the disclosure requirements of
the Securities Act and facilitated the assembly of relevant data. We have
examined various reports, records, contracts and other documents of the Company
and orders and instruments of public officials, which our investigation led us
to deem pertinent. In addition, we attended the due diligence meetings with
representatives of the Company and the closing at which the Company satisfied
the conditions contained in Paragraph 7 of the Underwriting Agreement. We have
not, however, undertaken to make any independent review of the other records of
the Company. We accordingly assume no responsibility for the accuracy or
completeness of the statements made in the Registration Statement except as
stated above in regard to the aforesaid captions. But such consultation,
examination and attendance disclosed to us no information with respect to such
other matters that gives us reason to believe that the Registration Statement or
the Prospectus contained on the date the Registration Statement became effective
or contains now any untrue statement of a material fact or omitted on said date
or omits now to state a material fact required to be stated therein or necessary
to make the statements herein not misleading. We are of the opinion that the
Registration Statement (excepting the financial statements incorporated therein
by reference, as to which we express no opinion) complies as to form in all
material respects with all legal requirements and is now effective.
- 25 -
<PAGE>
[representative]
[date]
Page 26
The Registration Statement and the Prospectus (except the financial
statements incorporated by reference therein, as to which we express no opinion)
appear on their face to be appropriately responsive in all material respects to
the requirements of the Securities Act, and to the applicable rules and
regulations of the Commission thereunder.
7. The titles and interests of the Company in and to its properties are
reasonably adequate to enable the Company to carry on its business and the
Company holds such franchises, permits and licenses as are reasonably adequate
to enable the Company to carry on its business, and, as to any franchises,
permits and licenses that the Company does not hold, the absence thereof will
not materially adversely affect the operations, business and properties of the
Company as a whole.
8. Except as set forth in the Registration Statement, there are no
pending legal, administrative or judicial proceedings with respect to the
Company that are required to be described in Form S-3.
The opinions in paragraphs 6 and 8 hereof are given on the basis that
any statement contained in an Incorporated Document shall be deemed not to be
contained in the Registration Statement or Prospectus if the statement has been
modified or superseded by any statement in a subsequently filed Incorporated
Document or in the Registration Statement or Prospectus.
Yours very truly,
HUNTON & WILLIAMS
- 26 -
Exhibit 1(iv)
CALCULATION AGENT AGREEMENT
THIS AGREEMENT dated as of ___________, 1997 between Virginia Electric
and Power Company (hereinafter called the Issuer), having its principal office
at 701 E. Cary Street, Richmond, Virginia 23219, and The Chase Manhattan Bank,
a New York banking corporation (hereinafter sometimes called the Calculation
Agent which term shall, unless the context shall otherwise require, include its
successors and assigns), having its principal corporate trust office at 450 West
33rd Street, New York, New York 10001.
RECITALS OF THE ISSUER
The Issuer proposes to issue from time to time Senior Notes (the Notes)
under a Senior Indenture dated as of _____________, 1997 (the Indenture),
between the Issuer and The Chase Manhattan Bank, as Trustee. Capitalized terms
used in this Agreement and not otherwise defined herein are used as defined in
the Indenture. Certain of the Notes may bear interest at one of several floating
rates determined by reference to an interest rate formula (the Floating Rate
Notes) and the Issuer desires to engage the Calculation Agent to perform certain
services in connection therewith.
NOW IT IS HEREBY AGREED THAT:
1. The Issuer hereby appoints The Chase Manhattan Bank as
Calculation Agent for the Floating Rate Notes, upon the terms and
subject to the conditions herein mentioned, subject to the Issuer's
right to designate a different party as Calculation Agent in the
Prospectus Supplement relating to the Floating Rate Notes, and The
Chase Manhattan Bank hereby accepts such appointment. This appointment
shall apply only to those series of Floating Rate Notes for which no
other Calculation Agent is designated in the applicable Prospectus
Supplement relating to the Floating Rate Notes and the term "Floating
Rate Notes" in this Agreement shall mean only Floating Rate Notes as to
which this appointment applies. Subject to the foregoing, the
Calculation Agent shall act as an agent of the Issuer for the purpose
of determining the interest rate or rates of the Floating Rate Notes.
2. The Issuer agrees to deliver to the Calculation Agent,
prior to the issuance of any Floating Rate Notes, copies of the
proposed forms of such Notes, including copies of the terms and
conditions relating to the determination of the interest rate
thereunder. The Issuer shall not issue any Floating Rate Note prior to
the receipt of confirmation from the Calculation Agent of its
acceptance of the proposed form of such Note.
3. The Issuer shall notify the Calculation Agent of the
issuance of any Floating Rate Notes prior to the issuance thereof and
at the time of such issuance shall deliver to the Calculation Agent the
information required to be provided by the Issuer for the calculation
of the applicable interest rates thereunder. The Calculation Agent
shall
<PAGE>
calculate the applicable interest rates for Floating Rate Notes in
accordance with the terms of such Notes, the Indenture and the
provisions of this Agreement.
4. Upon the determination of an interest rate applicable to a
Floating Rate Note, the Calculation Agent shall promptly notify the
Issuer, the Trustee and any Paying Agent of such interest rate. Upon
the request of the holder of a Floating Rate Note, the Calculation
Agent shall advise such holder of the interest rate then in effect and,
if different, the interest rate which will become effective as a result
of a determination already made with respect to such Floating Rate
Note.
5. The Issuer will pay such compensation as shall be agreed
upon with the Calculation Agent and the out-of-pocket expenses,
including reasonable counsel fees, incurred by the Calculation Agent in
connection with its duties hereunder, upon receipt of such invoices as
the Issuer shall reasonably require.
6. Notwithstanding any satisfaction or discharge of the Notes
or the Indenture, the Issuer will indemnify the Calculation Agent
against any losses, liabilities, costs, claims, actions or demands
which it may incur or sustain or which may be made against it in
connection with its appointment or the exercise of its powers and
duties hereunder as well as the reasonable costs, including the
reasonable expenses and fees of counsel in defending any claim, action
or demand, except such as may result from the gross negligence, wilful
misconduct or bad faith of the Calculation Agent or any of its
employees or agents. The Calculation Agent shall give the Issuer prompt
notice of any such claim, action or demand known to it, but failure to
do so shall not affect the indemnity provided hereby. Except as
provided in the second preceding sentence, the Calculation Agent shall
incur no liability and shall be indemnified and held harmless by the
Issuer for, or in respect of, any actions taken or suffered to be taken
in good faith by the Calculation Agent in reliance upon (i) the written
opinion or advice of counsel or (ii) written instructions from an
officer of the Issuer.
7. The Calculation Agent accepts its obligations herein set
forth upon the terms and conditions hereof, including the following, to
all of which the Issuer agrees:
(i) in acting under this Agreement and in connection
with the Floating Rate Notes, the Calculation Agent, acting as
agent for the Issuer, does not assume any obligation toward,
or any relationship of agency or trust for or with, any of the
holders of such Floating Rate Notes;
(ii) unless herein otherwise specifically provided, any
order, certificate, notice, request or communication from the
Issuer made or given under any provisions of this Agreement
shall be sufficient if signed by any person whom the
Calculation Agent reasonably believes to be a duly authorized
officer or attorney-in-fact of the Issuer;
2
<PAGE>
(iii) the Calculation Agent shall be obligated to perform
only such duties as are set forth specifically herein, in the
Floating Rate Notes or in the Indenture and any duties
necessarily incidental thereto;
(iv) the Calculation Agent shall be protected and shall
incur no liability for or in respect of any action taken or
omitted to be taken or anything suffered by it in reliance
upon any provision contained in a Floating Rate Note, the
Indenture or any information supplied to it by an officer of
the Issuer pursuant to this Agreement, including the
information to be supplied pursuant to paragraph 3 above;
(v) the Calculation Agent, whether acting for itself or
in any other capacity, may become the owner or pledgee of
Notes with the same rights as it would have had if it were not
acting hereunder as Calculation Agent; and
(vi) the Calculation Agent shall incur no liability
hereunder except for loss sustained by reason of its or its
employees' or agents' gross negligence, wilful misconduct or
bad faith.
8. (a) The Issuer agrees to notify the Calculation Agent at
least three Business Days prior to the issuance of any Floating Rate
Note with an interest rate to be determined by any formula that would
require the Calculation Agent to select banks or other financial
institutions (the Reference Banks) for purposes of quoting rates.
Immediately prior to seeking such quotes from such Reference Banks, the
Calculation Agent will notify the Issuer and the Trustee of the names
and addresses of such Reference Banks. The Calculation Agent shall not
be responsible to the Issuer or any third party for any failure of the
Reference Banks to fulfill their duties or meet their obligations as
Reference Banks or as a result of the Calculation Agent having acted
(except in the event of gross negligence, wilful misconduct or bad
faith) on any quotation or other information given by any Reference
Bank which subsequently may be found to be incorrect.
(b) Except as provided below, the Calculation Agent may at any
time resign as Calculation Agent by giving written notice to the Issuer
and the Trustee of such intention on its part, specifying the date on
which its desired resignation shall become effective, provided that
such notice shall be given not less than 60 days prior to the said
effective date unless the Issuer agrees in writing. The Calculation
Agent may be removed by the filing with it and the Trustee of an
instrument in writing signed by the Issuer specifying such removal and
the date when it shall become effective. Any resignation or removal of
the Calculation Agent shall take effect only upon:
(i) the appointment by the Issuer as hereinafter provided
of a successor Calculation Agent; and
3
<PAGE>
(ii) the acceptance of such appointment by such successor
Calculation Agent;
provided, however, that in the event the Calculation Agent has
given not less than 60 days' prior notice of its desired
resignation, and during such 60 days there has not been acceptance
by a successor Calculation Agent of its appointment as successor
Calculation Agent, the Calculation Agent so resigning may petition
any court of competent jurisdiction for the appointment of a
successor Calculation Agent. The Issuer covenants that it shall
appoint a successor Calculation Agent as soon as practicable after
receipt of any notice of resignation hereunder. Upon its
resignation or removal becoming effective, the retiring
Calculation Agent shall be entitled to the payment of all
compensation and the reimbursement of its expenses (including
reasonable counsel fees) incurred by such retiring Calculation
Agent, in accordance with paragraph 5 hereof, to the date such
resignation or removal becomes effective.
(c) If at any time the Calculation Agent shall resign or be
removed, or shall become incapable of acting or shall be adjudged
bankrupt or insolvent, or liquidated or dissolved, or an order is made
or an effective resolution is passed to wind up the Calculation Agent,
or if the Calculation Agent shall file a voluntary petition in
bankruptcy or make an assignment for the benefit of its creditors, or
shall consent to the appointment of a receiver, administrator or other
similar official of all or any substantial part of its property, or
shall admit in writing its inability to pay or meet its debts as they
mature, or if a receiver, administrator or other similar official of
the Calculation Agent or of all or any substantial part of its property
shall be appointed, or if any order of any court shall be entered
approving any petition filed by or against the Calculation Agent under
the provisions of any applicable bankruptcy or insolvency law, or if
any public officer shall take charge or control of the Calculation
Agent or its property or affairs for the purpose of rehabilitation,
conservation or liquidation, then a successor Calculation Agent shall
be appointed by the Issuer by an instrument in writing filed with the
predecessor Calculation Agent, the successor Calculation Agent and the
Trustee. Upon the appointment as aforesaid of a successor Calculation
Agent and acceptance by the latter of such appointment the former
Calculation Agent shall cease to be Calculation Agent hereunder.
(d) Any successor Calculation Agent appointed hereunder shall
execute and deliver to its predecessor, the Issuer and the Trustee an
instrument accepting such appointment hereunder, and thereupon such
successor Calculation Agent, without any further act, deed or
conveyance, shall become vested with all the authority, rights, powers,
immunities, duties and obligations of such predecessor with like effect
as if originally named as the Calculation Agent hereunder, and such
predecessor shall thereupon become obliged to transfer and deliver, and
such successor Calculation Agent shall be entitled to receive, copies
of any relevant records maintained by such predecessor Calculation
Agent.
4
<PAGE>
(e) Any corporation into which the Calculation Agent may be
merged or converted or any corporation with which the Calculation Agent
may be consolidated or any corporation resulting from any merger,
conversion or consolidation to which the Calculation Agent shall be a
party shall, to the extent permitted by applicable law, be the
successor Calculation Agent under this Agreement without the execution
or filing of any paper or any further act on the part of any of the
parties hereto. Notice of any such merger, conversion or consolidation
shall forthwith be given to the Issuer and the Trustee.
(f) The provisions of paragraphs 5 and 6 hereof shall survive
any resignation or removal hereunder.
9. Any notice required to be given hereunder shall be
delivered in person against written receipt, sent by letter or telecopy
or communicated by telephone (subject, in the case of communication by
telephone, to confirmation dispatched within two Business Days by
letter or telecopy), in the case of the Issuer, to it at the address
set forth in the heading of this Agreement, Attention: Treasurer; in
the case of the Calculation Agent, to it at the address set forth in
the heading of this Agreement, Attention: Global Trust Services; in the
case of the Trustee, to it at 450 West 33rd Street, New York, New York
10001, Attention: Global Trust Services; or, in any case, to any other
address of which the party receiving notice shall have notified the
party giving such notice in writing.
10. This Agreement may be amended only by a writing duly
executed and delivered by each of the parties signing below.
11. The provisions of this Agreement shall be governed by, and
construed in accordance with, the laws of the State of New York.
12. This Agreement may be executed in counterparts and the
executed counterparts shall together constitute a single instrument.
5
<PAGE>
IN WITNESS WHEREOF, this Agreement has been executed and delivered as
of the day and year first above written.
VIRGINIA ELECTRIC AND POWER COMPANY
By:___________________________________
Title:
THE CHASE MANHATTAN BANK
By:___________________________________
Title:
6
Exhibit 1(v)
CALCULATION AGENT AGREEMENT
THIS AGREEMENT dated as of __________, 1997 between Virginia Electric
and Power Company (hereinafter called the Issuer), having its principal office
at 701 E. Cary Street, Richmond, Virginia 23219, and The Chase Manhattan Bank,
a New York banking corporation (hereinafter sometimes called the Calculation
Agent which term shall, unless the context shall otherwise require, include its
successors and assigns), having its principal corporate trust office at 450 West
33rd Street, New York, New York 10001.
RECITALS OF THE ISSUER
The Issuer proposes to issue from time to time Senior Subordinated
Notes (the Notes) under a Senior Subordinated Indenture dated as of
_____________, 1997 (the Indenture), between the Issuer and The Chase Manhattan
Bank, as Trustee. Capitalized terms used in this Agreement and not otherwise
defined herein are used as defined in the Indenture. Certain of the Notes may
bear interest at one of several floating rates determined by reference to an
interest rate formula (the Floating Rate Notes) and the Issuer desires to engage
the Calculation Agent to perform certain services in connection therewith.
NOW IT IS HEREBY AGREED THAT:
1. The Issuer hereby appoints The Chase Manhattan Bank as
Calculation Agent for the Floating Rate Notes, upon the terms and
subject to the conditions herein mentioned, subject to the Issuer's
right to designate a different party as Calculation Agent in the
Prospectus Supplement relating to the Floating Rate Notes, and The
Chase Manhattan Bank hereby accepts such appointment. This appointment
shall apply only to those series of Floating Rate Notes for which no
other Calculation Agent is designated in the applicable Prospectus
Supplement relating to the Floating Rate Notes and the term "Floating
Rate Notes" in this Agreement shall mean only Floating Rate Notes as to
which this appointment applies. Subject to the foregoing, the
Calculation Agent shall act as an agent of the Issuer for the purpose
of determining the interest rate or rates of the Floating Rate Notes.
2. The Issuer agrees to deliver to the Calculation Agent,
prior to the issuance of any Floating Rate Notes, copies of the
proposed forms of such Notes, including copies of the terms and
conditions relating to the determination of the interest rate
thereunder. The Issuer shall not issue any Floating Rate Note prior to
the receipt of confirmation from the Calculation Agent of its
acceptance of the proposed form of such Note.
3. The Issuer shall notify the Calculation Agent of the
issuance of any Floating Rate Notes prior to the issuance thereof and
at the time of such issuance shall deliver to the Calculation Agent the
information required to be provided by the Issuer for the calculation
of the applicable interest rates thereunder. The Calculation Agent
shall
<PAGE>
calculate the applicable interest rates for Floating Rate Notes in
accordance with the terms of such Notes, the Indenture and the
provisions of this Agreement.
4. Upon the determination of an interest rate applicable to a
Floating Rate Note, the Calculation Agent shall promptly notify the
Issuer, the Trustee and any Paying Agent of such interest rate. Upon
the request of the holder of a Floating Rate Note, the Calculation
Agent shall advise such holder of the interest rate then in effect and,
if different, the interest rate which will become effective as a result
of a determination already made with respect to such Floating Rate
Note.
5. The Issuer will pay such compensation as shall be agreed
upon with the Calculation Agent and the out-of-pocket expenses,
including reasonable counsel fees, incurred by the Calculation Agent in
connection with its duties hereunder, upon receipt of such invoices as
the Issuer shall reasonably require.
6. Notwithstanding any satisfaction or discharge of the Notes
or the Indenture, the Issuer will indemnify the Calculation Agent
against any losses, liabilities, costs, claims, actions or demands
which it may incur or sustain or which may be made against it in
connection with its appointment or the exercise of its powers and
duties hereunder as well as the reasonable costs, including the
reasonable expenses and fees of counsel in defending any claim, action
or demand, except such as may result from the gross negligence, wilful
misconduct or bad faith of the Calculation Agent or any of its
employees or agents. The Calculation Agent shall give the Issuer prompt
notice of any such claim, action or demand known to it, but failure to
do so shall not affect the indemnity provided hereby. Except as
provided in the second preceding sentence, the Calculation Agent shall
incur no liability and shall be indemnified and held harmless by the
Issuer for, or in respect of, any actions taken or suffered to be taken
in good faith by the Calculation Agent in reliance upon (i) the written
opinion or advice of counsel or (ii) written instructions from an
officer of the Issuer.
7. The Calculation Agent accepts its obligations herein set
forth upon the terms and conditions hereof, including the following, to
all of which the Issuer agrees:
(i) in acting under this Agreement and in connection
with the Floating Rate Notes, the Calculation Agent, acting as
agent for the Issuer, does not assume any obligation toward,
or any relationship of agency or trust for or with, any of the
holders of such Floating Rate Notes;
(ii) unless herein otherwise specifically provided, any
order, certificate, notice, request or communication from the
Issuer made or given under any provisions of this Agreement
shall be sufficient if signed by any person whom the
Calculation Agent reasonably believes to be a duly authorized
officer or attorney-in-fact of the Issuer;
2
<PAGE>
(iii) the Calculation Agent shall be obligated to perform
only such duties as are set forth specifically herein, in the
Floating Rate Notes or in the Indenture and any duties
necessarily incidental thereto;
(iv) the Calculation Agent shall be protected and shall
incur no liability for or in respect of any action taken or
omitted to be taken or anything suffered by it in reliance
upon any provision contained in a Floating Rate Note, the
Indenture or any information supplied to it by an officer of
the Issuer pursuant to this Agreement, including the
information to be supplied pursuant to paragraph 3 above;
(v) the Calculation Agent, whether acting for itself or
in any other capacity, may become the owner or pledgee of
Notes with the same rights as it would have had if it were not
acting hereunder as Calculation Agent; and
(vi) the Calculation Agent shall incur no liability
hereunder except for loss sustained by reason of its or its
employees' or agents' gross negligence, wilful misconduct or
bad faith.
8. (a) The Issuer agrees to notify the Calculation Agent at
least three Business Days prior to the issuance of any Floating Rate
Note with an interest rate to be determined by any formula that would
require the Calculation Agent to select banks or other financial
institutions (the Reference Banks) for purposes of quoting rates.
Immediately prior to seeking such quotes from such Reference Banks, the
Calculation Agent will notify the Issuer and the Trustee of the names
and addresses of such Reference Banks. The Calculation Agent shall not
be responsible to the Issuer or any third party for any failure of the
Reference Banks to fulfill their duties or meet their obligations as
Reference Banks or as a result of the Calculation Agent having acted
(except in the event of gross negligence, wilful misconduct or bad
faith) on any quotation or other information given by any Reference
Bank which subsequently may be found to be incorrect.
(b) Except as provided below, the Calculation Agent may at any
time resign as Calculation Agent by giving written notice to the Issuer
and the Trustee of such intention on its part, specifying the date on
which its desired resignation shall become effective, provided that
such notice shall be given not less than 60 days prior to the said
effective date unless the Issuer agrees in writing. The Calculation
Agent may be removed by the filing with it and the Trustee of an
instrument in writing signed by the Issuer specifying such removal and
the date when it shall become effective. Any resignation or removal of
the Calculation Agent shall take effect only upon:
(i) the appointment by the Issuer as hereinafter provided
of a successor Calculation Agent; and
3
<PAGE>
(ii) the acceptance of such appointment by such successor
Calculation Agent;
provided, however, that in the event the Calculation Agent has
given not less than 60 days' prior notice of its desired
resignation, and during such 60 days there has not been acceptance
by a successor Calculation Agent of its appointment as successor
Calculation Agent, the Calculation Agent so resigning may petition
any court of competent jurisdiction for the appointment of a
successor Calculation Agent. The Issuer covenants that it shall
appoint a successor Calculation Agent as soon as practicable after
receipt of any notice of resignation hereunder. Upon its
resignation or removal becoming effective, the retiring
Calculation Agent shall be entitled to the payment of all
compensation and the reimbursement of its expenses (including
reasonable counsel fees) incurred by such retiring Calculation
Agent, in accordance with paragraph 5 hereof, to the date such
resignation or removal becomes effective.
(c) If at any time the Calculation Agent shall resign or be
removed, or shall become incapable of acting or shall be adjudged
bankrupt or insolvent, or liquidated or dissolved, or an order is made
or an effective resolution is passed to wind up the Calculation Agent,
or if the Calculation Agent shall file a voluntary petition in
bankruptcy or make an assignment for the benefit of its creditors, or
shall consent to the appointment of a receiver, administrator or other
similar official of all or any substantial part of its property, or
shall admit in writing its inability to pay or meet its debts as they
mature, or if a receiver, administrator or other similar official of
the Calculation Agent or of all or any substantial part of its property
shall be appointed, or if any order of any court shall be entered
approving any petition filed by or against the Calculation Agent under
the provisions of any applicable bankruptcy or insolvency law, or if
any public officer shall take charge or control of the Calculation
Agent or its property or affairs for the purpose of rehabilitation,
conservation or liquidation, then a successor Calculation Agent shall
be appointed by the Issuer by an instrument in writing filed with the
predecessor Calculation Agent, the successor Calculation Agent and the
Trustee. Upon the appointment as aforesaid of a successor Calculation
Agent and acceptance by the latter of such appointment the former
Calculation Agent shall cease to be Calculation Agent hereunder.
(d) Any successor Calculation Agent appointed hereunder shall
execute and deliver to its predecessor, the Issuer and the Trustee an
instrument accepting such appointment hereunder, and thereupon such
successor Calculation Agent, without any further act, deed or
conveyance, shall become vested with all the authority, rights, powers,
immunities, duties and obligations of such predecessor with like effect
as if originally named as the Calculation Agent hereunder, and such
predecessor shall thereupon become obliged to transfer and deliver, and
such successor Calculation Agent shall be entitled to receive, copies
of any relevant records maintained by such predecessor Calculation
Agent.
4
<PAGE>
(e) Any corporation into which the Calculation Agent may be
merged or converted or any corporation with which the Calculation Agent
may be consolidated or any corporation resulting from any merger,
conversion or consolidation to which the Calculation Agent shall be a
party shall, to the extent permitted by applicable law, be the
successor Calculation Agent under this Agreement without the execution
or filing of any paper or any further act on the part of any of the
parties hereto. Notice of any such merger, conversion or consolidation
shall forthwith be given to the Issuer and the Trustee.
(f) The provisions of paragraphs 5 and 6 hereof shall survive
any resignation or removal hereunder.
9. Any notice required to be given hereunder shall be
delivered in person against written receipt, sent by letter or telecopy
or communicated by telephone (subject, in the case of communication by
telephone, to confirmation dispatched within two Business Days by
letter or telecopy), in the case of the Issuer, to it at the address
set forth in the heading of this Agreement, Attention: Treasurer; in
the case of the Calculation Agent, to it at the address set forth in
the heading of this Agreement, Attention: Global Trust Services; in the
case of the Trustee, to it at 450 West 33rd Street, New York, New York
10001, Attention: Global Trust Services; or, in any case, to any other
address of which the party receiving notice shall have notified the
party giving such notice in writing.
10. This Agreement may be amended only by a writing duly
executed and delivered by each of the parties signing below.
11. The provisions of this Agreement shall be governed by, and
construed in accordance with, the laws of the State of New York.
12. This Agreement may be executed in counterparts and the
executed counterparts shall together constitute a single instrument.
5
<PAGE>
IN WITNESS WHEREOF, this Agreement has been executed and delivered as
of the day and year first above written.
VIRGINIA ELECTRIC AND POWER COMPANY
By:_________________________________
Title:
THE CHASE MANHATTAN BANK
By:_________________________________
Title:
6
Exhibit 4(i)
=============================================
VIRGINIA ELECTRIC AND POWER COMPANY
TO
THE CHASE MANHATTAN BANK,
Trustee.
----------
_________ Supplemental Indenture
Dated ___________, 19__
---------
$--------
First and Refunding Mortgage Bonds of 19__, Series__, ____%,
due _______________
============================================
A MORTGAGE OF BOTH REAL AND PERSONAL PROPERTY.
<PAGE>
<TABLE>
<S> <C>
TABLE OF CONTENTS*
Page
----
Parties............................................................................................................
Addresses..........................................................................................................
Recitals...........................................................................................................
Consideration Clause...............................................................................................
Granting Clause....................................................................................................
Exception Clause...................................................................................................
Habendum Clause....................................................................................................
Grant in Trust.....................................................................................................
ARTICLE 1.
BONDS OF 19__, SERIES __.
(S)1.01. Establishment, form and terms....................................................................
(S)1.02. Registration, transfer and exchange..............................................................
(S)1.03. Procedure for payment of interest................................................................
[(S)1.04. Redemption......................................................................................]
[(S)1.05. Special Provisions for certain Institutional Investors..........................................]
[(S)1.06. Funds deposited for maturity [or redemption] to be immediately available........................]
[ARTICLE 2.
PROVISIONS SUPPLEMENTING THE MORTGAGE.
(S)2.01. ___________________________.....................................................................]
[ARTICLE 3.
ADDITIONAL COVENANTS OF THE COMPANY.
(S)3.01. ___________________________.....................................................................]
ARTICLE [4.]
MISCELLANEOUS PROVISIONS.
(S)[4].01. References to Original Indenture or previous Supplemental Indentures.............................
(S)[4].02. The Trustee......................................................................................
(S)[4].03. Original Indenture and Supplemental Indentures to be read together...............................
(S)[4].04. Date of execution................................................................................
(S)[4].05. Execution in counterparts
Testimonium........................................................................................................
Signatures and Seals...............................................................................................
Acknowledgments....................................................................................................
- --------
*This Table of Contents does not constitute part of the Indenture or have any
bearing upon the interpretation of any of its terms and provisions.
</TABLE>
<PAGE>
_______________ SUPPLEMENTAL INDENTURE dated the ____ day of _____, 19__, by and
between VIRGINIA ELECTRIC AND POWER COMPANY, a Virginia public service
corporation and a transmitting utility (as such term is defined in Section
46-9-105(n) of the West Virginia Code), One James River Plaza, Richmond,
Virginia (the Company), party of the first part, and THE CHASE MANHATTAN BANK,
a national banking association, One Chase Manhattan Plaza, New York, New York
(the Trustee), party of the second part.
The Company has heretofore made its Indenture of Mortgage dated
November 1, 1935 (the Original Indenture) to The Chase National Bank of the City
of New York, predecessor Trustee, and various supplemental indentures
supplementing and/or modifying the Original Indenture as follows:
<TABLE>
<CAPTION>
Title Dated
----- -----
<S> <C>
First Supplemental Indenture............................................... September 1, 1938
Second " " ............................................... February 9, 1940
Third " " ....................................... March 1, 1941
Fourth " " ............................................... April 1, 1944
Fifth " " ....................................... March 1, 1945
Sixth " " ....................................... October 1, 1947
Seventh " " ....................................... March 1, 1948
Eighth " " ............................................... October 1, 1948
Ninth " " ....................................... June 1, 1949
Tenth " " ....................................... November 1, 1949
Eleventh " " ....................................... September 1, 1950
Twelfth " " ....................................... December 1, 1951
Thirteenth " " ....................................... October 1, 1952
Fourteenth " " ....................................... May 1, 1954
and has heretofore made to The Chase Manhattan Bank, which on March 31, 1955,
became the Trustee under the Mortgage by virtue of the merger of The Chase
National Bank of the City of New York into President and Directors of the
Manhattan Company under the name of The Chase Manhattan Bank, further
supplemental indentures supplementing and/or modifying the Original Indenture as
follows:
<CAPTION>
Title Dated
----- -----
Fifteenth Supplemental Indenture........................................... June 1, 1955
Sixteenth " " ................................... September 1, 1956
Seventeenth " " ................................... December 1, 1957
Eighteenth " " ................................... June 1, 1958
Nineteenth " " ................................... April 1, 1959
Twentieth " " ................................... September 1, 1960
Twenty-First " " ................................... June 1, 1961
<PAGE>
Twenty-Second Supplemental Indenture....................................... May 1, 1963
Twenty-Third " " ........................... December 1, 1963
Twenty-Fourth " " ........................... May 1, 1965
Twenty-Fifth " " ........................... February 1, 1967
Twenty-Sixth " " ........................... December 1, 1967
Twenty-Seventh " " ........................... January 1, 1969
Twenty-Eighth " " ........................... June 1, 1969
Twenty-Ninth " " ........................... April 1, 1970
Thirtieth " " ........................... September 1, 1970
Thirty-First " " ........................... March 1, 1971
Thirty-Second " " ........................... September 1, 1971
Thirty-Third " " ........................... June 1, 1972
Thirty-Fourth " " ........................... July 1, 1974
Thirty-Fifth " " ........................... July 1, 1974
Thirty-Sixth " " ........................... February 1, 1975
Thirty-Seventh " " ........................... September 1, 1975
Thirty-Eighth " " ........................... November 1, 1975
Thirty-Ninth " " ........................... March 1, 1976
Fortieth " " ........................... May 1, 1976
Forty-First " " ........................... September 1, 1976
Forty-Second " " ........................... March 1, 1977
Forty-Third " " ........................... March 1, 1978
Forty-Fourth " " ........................... May 1, 1978
Forty-Fifth " " ........................... July 1, 1978
Forty-Sixth " " ........................... April 1, 1979
Forty-Seventh " " ........................... October 1, 1979
Forty-Eighth " " ........................... July 1, 1980
Forty-Ninth " " ........................... April 1, 1981
Fiftieth " " ................................. July 1, 1981
Fifty-First " " ........................... July 1, 1981
Fifty-Second " " ........................... September 1, 1982
Fifty-Third " " ........................... December 1, 1982
Fifty-Fourth " " ........................... June 1, 1983
Fifty-Fifth " " ........................... June 1, 1984
Fifty-Sixth " " ........................... September 1, 1984
Fifty-Seventh " " ........................... November 1, 1984
Fifty-Eighth " " ........................... December 1, 1984
Fifty-Ninth " " ........................... April 1, 1986
Sixtieth " " ........................... November 1, 1986
Sixty-First " " ........................... June 1, 1987
Sixty-Second " " ........................... November 1, 1987
Sixty-Third " " ........................... June 1, 1988
Sixty-Fourth " " ........................... February 1, 1989
Sixty-Fifth " " ........................... June 1, 1989
2
<PAGE>
Sixty-Sixth Supplemental Indenture......................................... March 1, 1990
Sixty-Seventh " " ................................ April 1, 1991
Sixty-Eighth " " ................................ March 1, 1992
Sixty-Ninth " " ................................ March 1, 1992
Seventieth " " ................................ March 1, 1992
Seventy-First " " ................................ July 1, 1992
Seventy-Second " " ................................ July 1, 1992
Seventy-Third " " ................................ August 1, 1992
Seventy-Fourth " " ................................ February 1, 1993
Seventy-Fifth " " ................................ April 1, 1993
Seventy-Sixth " " ................................ April 1, 1993
Seventy-Seventh " " ................................ June 1, 1993
Seventy-Eighth " " ................................ August 1, 1993
Seventy-Ninth " " ................................ August 1, 1993
Eightieth " " ................................ October 1, 1993
Eighty-First " " ................................ January 1, 1994
Eighty-Second " " ................................ January 1, 1994
Eighty-Third " " ................................ October 1, 1994
Eighty-Fourth " " ................................ March 1, 1995
Eighty-Fifth " " ................................ February 1, 1997
The Original Indenture and such supplemental indentures are
incorporated herein by this reference and the Original Indenture as so
supplemented and modified is herein called the Mortgage.
3
<PAGE>
First and Refunding Mortgage Bonds (the Bonds) are presently
outstanding under the Mortgage as follows [as of February 27, 1998]:
<CAPTION>
Principal
Series* Amount*
------- -------
Series U, 5 1/8%, due February 1, 1997................................................. $ 49,290,000
Bonds of 1988, Series A, 9 3/8%, due June 1, 1998...................................... 150,000,000
Bonds of 1989, Series B, 8 7/8%, due June 1, 1999...................................... 100,000,000
Bonds of 1991, Series A, 8 3/4%, due April 1, 2021..................................... 100,000,000
Bonds of 1992, Series B, 7 1/4%, due March 1 1997..................................... 250,000,000
Bonds of 1992, Series C, 8%, due March 1, 2004......................................... 250,000,000
Bonds of 1992, Series D, 7 5/8%, due July 1, 2007...................................... 215,000,000
Bonds of 1992, Series E, 7 3/8%, due July 1, 2002...................................... 155,000,000
Bonds of 1992, Series F, 6 1/4%, due August 1, 1998.................................... 75,000,000
Bonds of 1993, Series A, 7 1/4%, due February 1, 2023.................................. 100,000,000
Bonds of 1993, Series B, 6 5/8%, due April 1, 2003..................................... 200,000,000
Bonds of 1993, Series C, 5 7/8%, due April 1, 2000..................................... 135,000,000
Bonds of 1993, Series D, 7 1/2%, due June 1, 2023...................................... 200,000,000
Bonds of 1993, Series E, 6%, due August 1, 2001........................................ 100,000,000
Bonds of 1993, Series F, 6%, due August 1, 2002........................................ 100,000,000
Bonds of 1993, Series G, 6 3/4%, due October 1, 2023................................... 200,000,000
Pollution Control Series 1994A, 5.45%, due January 1, 2024............................. 19,500,000
Bonds of 1994, Series A, 7%, due January 1, 2024....................................... 125,000,000
Bonds of 1994, Series B, 8 5/8%, due October 1, 2024................................... 200,000,000
Bonds of 1995, Series A, 8 1/4%, due March 1, 2025..................................... 200,000,000
Bonds of 1997, Series A, 6 3/4%, due February 1, 2007.................................. 200,000,000
</TABLE>
(*Subject to deletion of retired series or portions thereof and
addition of new series, as issued)
Under the Mortgage, any new series of Bonds may at any time be
established by the Board of Directors of the Company in accordance with the
provisions of the Mortgage (up to an aggregate amount of $5,000,000,000
outstanding at any one time without further authorization of the stockholder of
the Company) and their terms may be described by a supplemental indenture
executed by the Company and the Trustee.
The Company proposes to create under the Mortgage, as hereby
supplemented (the Indenture), a new series of Bonds to be designated First and
Refunding Mortgage Bonds of 19__, Series __, __%, due________ __, ____, to bear
interest from _______ __, 19__, and to be due _______ __, ____ and proposes to
issue $______ aggregate principal amount of such Bonds.
The aggregate principal amount of Bonds of the Company, issued or so to
be issued and outstanding under the provisions of and secured by the Indenture,
will then be $_______ , consisting of $_______ aggregate principal amount of
Bonds presently outstanding and $_______
4
<PAGE>
aggregate principal amount of Bonds of 19__, Series __, which are to be issued
after the execution and delivery of this _____ Supplemental Indenture pursuant
to Article 2 of the Original Indenture. Additional Bonds of certain series
herein mentioned and additional Bonds of all other series hereafter established,
except as may be limited in the Indenture as at the time supplemented and
modified, may be issued from time to time pursuant to the Indenture as at the
time supplemented and modified.
The Company also desires to supplement the Mortgage and add new
provisions thereto pursuant to the provisions of (S)13.01 of the Original
Indenture.
All conditions necessary to authorize the execution, delivery and
recording of this ____ Supplemental Indenture and to make it a valid and binding
indenture of mortgage for the security of the Bonds of the Company issued or to
be issued under the Indenture have been done or performed.
NOW, THEREFORE, THIS INDENTURE WITNESSETH,
That, in order further to secure equally and ratably the payment of the
principal of and interest on the Bonds at any time issued and outstanding under
the Indenture, according to their tenor and effect, and the performance of all
the covenants and conditions contained in the Indenture or in the Bonds, and for
the purpose, among others, of confirming the lien of the Indenture, the Company,
for and in consideration of the premises and of the purchase and acceptance of
the Bonds by the holders thereof, and of the sum of One Dollar ($1.00) and of
other valuable consideration to it duly paid by the Trustee at or before the
execution and delivery of these presents, the receipt whereof is hereby
acknowledged, has executed and delivered these presents and does hereby grant,
bargain, sell, convey, transfer, assign, mortgage, pledge and confirm to the
Trustee and its successors in the trust created by the Indenture and to its and
their assigns, [If specific property is to be mortgaged under the Supplemental
Indenture -- the property hereinafter described, to wit:] [If no specific
property is to be mortgaged under the Supplemental Indenture -- all property,
real, personal and mixed, tangible and intangible, rights, privileges,
franchises and immunities, now owned by the Company and within the Granting
Clauses covering after-acquired property.
But expressly excepting (unless and until hereafter mortgaged, pledged
or assigned to the Trustee or otherwise made subject to the lien of the
Indenture, or required so to be by any provision therein) all properties that
would be excepted by clauses (A) through (H) of Part VI of the Granting Clauses
of the Fourteenth Supplemental Indenture as if such clauses were herein set out
in full.]
[DESCRIPTION OF MORTGAGED PROPERTY.
PART I.
LAND.
5
<PAGE>
All the tracts or parcels of land or interests in land, together with
all the improvements thereon, and all rights, privileges and appurtenances
thereunto belonging or in anywise appertaining, and all equipment, fixtures and
apparatus, property, real, personal and mixed, used in connection therewith,
whether attached to the freehold or not, conveyed to the Company as indicated in
the tables below:
<TABLE>
A.
IN VIRGINIA
<CAPTION>
<S> <C>
Recordation Data
-----------------------------------
Book Page
Grantor Recording Office Date of Deed No. No.
- ------------------------- ------------------------------ --------------------- --------------- ----------------
B.
IN [OTHER STATES]
<CAPTION>
Recordation Data
-----------------------------------
Book Page
Grantor Recording Office Date of Deed No. No.
- ------------------------- ------------------------------ --------------------- --------------- ----------------
PART II.
FRANCHISES.
<CAPTION>
Grantor Date Granted
- --------------------------------------------- --------------------------------------------
6
<PAGE>
PART III.
ELECTRIC LINES AND SYSTEMS.
All electric lines and systems now owned by the Company, including
those described below:
<CAPTION>
Length
Beginning Ending in Miles
- ------------------------------- ------------------------------ ------------------------------
</TABLE>
PART IV.
OTHER PROPERTY.
All other property, real, personal and mixed, tangible and intangible,
now owned by the Company or hereafter acquired, except as herein excepted.
PART V.
INCOME.
All tolls, revenues, earnings, income, rents, issues and profits of all
property hereby mortgaged and conveyed.
PART VI.
PROPERTIES EXCEPTED.
But expressly excepting (unless and until hereafter mortgaged, pledged
or assigned to the Trustee or otherwise made subject to the lien of the
Indenture, or required so to be by any provision therein) all properties that
would be excepted by clauses (A) through (H) of Part VI of the Granting Clauses
of the Fourteenth Supplemental Indenture as if such clauses were herein set out
in full.]
7
<PAGE>
TO HAVE AND TO HOLD all and singular the aforesaid property, rights,
privileges, franchises and immunities, whether now owned or hereafter acquired,
unto the Trustee, its successors in the trust created by the Indenture and its
and their assigns forever:
BUT IN TRUST NEVERTHELESS, for the further and equal pro rata benefit,
security and protection of all present and future holders of the Bonds issued
and to be issued under and secured by the Indenture, and to secure the payment
of the principal of and interest on the Bonds thereon, in accordance with
provisions of the Bonds and of the Indenture, without any discrimination,
preference, priority or distinction as to lien or otherwise of any Bonds over
any other Bonds, by reason of priority in time of the issue or negotiation
thereof or otherwise howsoever, so that the principal and interest of every Bond
shall be equally and ratably secured hereby as if all the Bonds had been issued,
sold and delivered for value simultaneously with the execution of the Original
Indenture, and to secure the performance of and compliance with the covenants
and conditions of the Bonds and of the Indenture, and upon the trusts and for
the uses and purposes and subject to the covenants, agreements, provisions and
conditions set forth and declared in the Indenture.
ARTICLE 1.
BONDS OF 19__, Series __.
(S)1.01. There is hereby established a new series of Bonds to be issued
under and secured by the Indenture, to be designated as the Company's First and
Refunding Mortgage Bonds of 19__, Series __, ___%, due ______ __, ____ (the
Bonds of 19__, Series __).
There are to be authenticated and delivered $________ principal amount
of Bonds of 19__ Series __, and no further Bonds of 19__, Series __ shall be
authenticated and delivered except upon exchange or transfer pursuant to (S)1.11
of the Original Indenture. The Bonds of 19__, Series __ shall be registered
bonds, without coupons.
The Bonds of 19__, Series __ shall be in substantially the form set out
in Article 2 of the Twenty-Fifth Supplemental Indenture with such insertions,
modifications and additions as may be required by the particular terms and
provisions of this _______ Supplemental Indenture (and in particular this
(S)1.01 and (S)1.04 hereof) for the Bonds of 19__, Series __.
Each Bond of 19__, Series __ shall be dated the date of authentication
thereof and shall bear interest from the date of original issuance thereof or
from the most recent Interest Payment Date to which interest has been paid or
duly provided for.
All Bonds of 19__, Series __ shall be due on _______ __, ____, and
shall bear interest at the rate of __% per annum, to be paid semi-annually on
the first day of _____ and on the first day of _____ in each year until payment
of the principal thereof. The principal, premium, if any, and interest on the
Bonds of 19__, Series __, shall be payable in lawful money of the United States
of America, at the office or agency of The Chase Manhattan Bank, or its
successor in trust under the Indenture, in New York, New York. The
8
<PAGE>
Regular Record Date for the payment of the interest payable, and punctually paid
or duly provided for, on any Interest Payment Date with respect to the Bonds of
19__, Series __ shall be the fifteenth day (whether or not a business day) of
the calendar month next preceding such Interest Payment Date.
Definitive Bonds of 19__, Series __ may be issued in the denomination
of $______, or any integral multiple thereof.
(S)1.02. The Trustee shall, by virtue of its office as Trustee, be the
Registrar and Transfer Agent of the Company for the purpose of registering and
transferring Bonds of 19__, Series __. The Company shall cause to be kept at the
office or agency of the Registrar books for such registration and transfer (the
Bond Register) and will permit Bonds of 19__, Series __ to be transferred or
registered thereon, in accordance with their terms and under such reasonable
regulations as the Company may prescribe.
Upon surrender for transfer of any Bonds of 19__, Series __ at the
office or agency of the Registrar, the Company shall execute, and the Trustee
shall authenticate and deliver, in the name of the designated transferee or
transferees, one or more new Bonds of 19__, Series __ of any authorized
denominations, of a like aggregate principal amount.
At the option of the registered holder, Bonds of 19__, Series __ may be
exchanged for other Bonds of 19__, Series ___ of any authorized denominations,
of a like aggregate principal amount, upon surrender of Bonds of 19__, Series __
to be exchanged at the office or agency of the Registrar. Whenever any Bonds of
19__, Series __ are so surrendered for exchange, the Company shall execute, and
the Trustee shall authenticate and deliver, the Bonds of 19__, Series __ which
the bondholder making the exchange is entitled to receive.
All Bonds of 19__, Series __ issued upon any such transfer or exchange
shall be the valid obligations of the Company, evidencing the same debt, and
entitled to the same benefits under the Indenture, as the Bonds of 19__, Series
__ surrendered upon such transfer or exchange.
Every Bond of 19__, Series __ presented or surrendered for transfer or
exchange shall (if so required by the Company or the Trustee) be duly endorsed,
or be accompanied by a written instrument of transfer in form satisfactory to
the Company and to the Registrar duly executed, by the holder thereof or his
attorney duly authorized in writing.
No service charge will be made for any transfer or exchange of Bonds of
19__, Series __, but payment will be required of a sum sufficient to cover any
tax or other governmental charge that may be imposed in connection therewith.
[The provisions of (S)1.06, (S)1.08 and (S)1.09 of the Original
Indenture shall (not) be applicable to the Bonds of 19__, Series __.]
The Company shall not be required (a) to issue, transfer or exchange
any Bonds of 19__, Series __ during a period beginning at the opening of
business 15 days before the day of the mailing of a notice of redemption of less
than all of the outstanding Bonds of 19__, Series __
9
<PAGE>
and ending at the close of business on the day of the mailing, or (b) to
transfer or exchange any Bonds of 19__, Series __ theretofore selected for
redemption in whole or in part.
(S)1.03. Reference is made to (S)1.03 of the Twenty-Fifth Supplemental
Indenture for provisions concerning the procedure for the payment of interest on
the Bonds of 19__, Series __.
[(S)1.04. The Bonds of 19__, Series __ shall be subject to redemption
at the option of the Company, as a whole or in part, at any time or from time to
time, on or after _______ __, ____, at the percentages of the principal amount
thereof specified in the following table under the heading "Regular Redemption
Price". The Bonds of 19__, Series __ shall also be subject to redemption at the
option of the Company, as a whole or in part, at any time or from time to time,
on or after _____ __, ____, at the percentages of the principal amount thereof
specified in the following table under the heading "Special Redemption Price",
if redeemed (a) by the application of cash from the Maintenance and Improvement
Fund provided by (S)3.01 of the Third Supplemental Indenture, (b) by the
application of Funds in Escrow as defined in (S)6.02 of the Original Indenture
or (c) as a whole within 12 months after acquisition of not less than a majority
of the outstanding Common Stock of the Company by any municipality or
governmental body, agency, instrumentality or authority, or any non-profit
cooperative body, or any nominee thereof:
<TABLE>
<CAPTION>
<S> <C>
The redemption prices The redemption prices
are as follows: are as follows:
--------------------------------------- ---------------------------------------
During the Regular Special During the Regular Special
12 Months Redemption Redemption 12 Months Redemption Redemption
Beginning Price Price Beginning Price Price
- ---------------- ----------------- ------------------- ---------------- ------------------ ------------------
</TABLE>
together with any unmatured interest accrued to the Redemption Date, payable on
surrender for redemption (the interest installment payable on the Redemption
Date, if such date is an Interest Payment Date, to be paid to the holder of
record at the close of business on the Regular Record Date for such Interest
Payment Date).
[But prior to ______ __, ____, the Company may not redeem any of the
Bonds of 19__, Series __, directly or indirectly from or in anticipation of
moneys borrowed involving an interest cost to the Company (calculated in
accordance with accepted financial practice) of less than __% per year.]
Notice of redemption shall be given by first-class mail, postage
prepaid, mailed not less than 30 nor more than 60 days prior to the Redemption
Date, to each holder at his address appearing in the Bond Register and shall
contain the information required by (S)3.02 of the Original Indenture. There
need be no publication of such notice despite the provisions of such (S)3.02.
10
<PAGE>
[The Company shall not redeem, purchase or otherwise acquire for a
consideration any of the Bonds of 19__, Series __, except by redemption thereof
pursuant to this (S)1.04.]
[No supplemental indenture entered into pursuant to (S)14.01 of the
Original Indenture shall amend or otherwise modify any provision contained in
this (S)1.04 (other than provisions regarding the manner, form and timing of
notice pursuant to the second paragraph of this (S)1.04) without the consent of
all the holders of Bonds of 19__, Series __, then outstanding; nor shall any
default by the Company in the performance of its obligations under this (S)1.04
(other than the manner, form and timing of notice pursuant to the second
paragraph of this (S)1.04), and the consequences thereof, be waived pursuant to
(S)7.24 of the Original Indenture without like consent.]]
[(S)1.05. Irrespective of any provision of the Indenture or of the
Bonds of 19__, Series __ to the contrary, so long as any purchaser under one of
the Purchase Agreements (as hereinafter defined), or a nominee thereof, shall be
a registered holder of any of the Bonds of 19__, Series __, or if any other
institutional investor or its nominee or nominees shall at any time be the
registered holder or holders of at least __% of the aggregate principal amount
of Bonds of 19__, Series __ then outstanding, payment of principal of and
interest on any Bond of 19 __, Series __ of which such purchaser or its nominee
or such other institutional investor or its nominee is the registered holder
shall be made, without presentation thereof, by check payable to the order of
such holder mailed to its address as it appears on the Bond Register maintained
in accordance with (S)1.02 hereof on the Interest Payment Date or (in the case
of a redemption in part only of any Bond of 19__, Series __ of which such
purchaser or its nominee or such other institutional investor or its nominee is
the registered holder) the Redemption Date, as the case may be, or to such other
person and address and by such other manner as may be specified by such
purchaser or other institutional investor in Schedule 1 to the Purchase
Agreements, or otherwise, in a written order filed with the Company at least
five days prior to the Interest Payment Date or (in the case of a redemption in
part only of any Bond of 19__, Series __ of which such purchaser or its nominee
or such other institutional investor or its nominee is the registered holder)
the Redemption Date, as the case may be. As a condition to making any such
payment, there shall be filed with the Trustee by such purchaser or other
institutional investor an agreement (designating its nominee or nominees, if
any, and which, in the case of such purchaser, shall be a copy of its Purchase
Agreement referred to in the penultimate paragraph of this (S)1.05) that prior
to the delivery by it upon disposition of any such Bond of 19__, Series __ so
redeemed in part it will make an appropriate endorsement thereon as to all
payments on account of principal thereof.]
[The indemnity agreement of any such purchaser or any such other
institutional investor, without security therefor, shall constitute sufficient
indemnity to the Company and the Trustee for the purposes of (S)1.11 of the
Original Indenture.]
[Any provision of the Indenture or of the Bonds of 19__, Series __ to
the contrary notwithstanding, so long as any such purchaser or its nominee shall
be a registered holder of any of the Bonds of 19__, Series __ or any such
institutional investor or its nominee shall be a registered holder of at least
__% of the aggregate principal amount of the Bonds of 19__, Series __, then
outstanding, in case of the redemption in part only of the Bonds of 19__, Series
__, the
11
<PAGE>
Trustee shall prorate the principal amount of such Bonds to be redeemed among
all such Bonds in proportion to the outstanding principal amount thereof
(treating as one Bond all of the Bonds held by registered holders who are not
such purchasers or institutional investors or who are such institutional
investors and hold less than __% of the aggregate principal amount of the Bonds
of 19__, Series __ then outstanding) and shall then designate for redemption
particular Bonds of such series or portions thereof (of $1,000 or any integral
multiple thereof) equal to the principal amount of Bonds to be redeemed so
prorated; provided, however, that in any such prorating pursuant to this
paragraph, the Trustee shall, according to such method as it shall deem proper
in its discretion, make such adjustments by increasing or decreasing by not more
than $1,000 the amount which would be allocable on the basis of exact proportion
to any one or more Bonds, as may be required to provide that the principal
amount so prorated shall be in each instance an integral multiple of $1,000; and
provided, further, that, in case of such a redemption pursuant to the final
sentence of the first paragraph of (S)1.04 hereof, the Trustee shall not prorate
the principal amount of Bonds of 19__, Series __ to be so redeemed among all
Bonds of such series but shall designate for redemption particular Bonds of such
series or portions thereof (of $1,000 or any integral multiple thereof) held by
any registered holder opting for such redemption in accordance with such
holder's instructions contained in the notice of redemption given by such holder
to the Trustee pursuant to the second paragraph of (S)1.04 hereof.]
[In the case of any such purchaser or institutional investor which
acquires Bonds of 19__, Series __, with funds of a separate account, as such
term is defined in Section 3 of ERISA, or guaranteed fund, such holder shall,
with respect to each such separate account or guaranteed fund, be treated as a
separate registered holder of Bonds of 19__, Series __, for the purposes of the
Indenture.]
[As hereinabove used, the term "Underwriting Agreement" shall mean the
[several] Underwriting Agreement[s], [each] dated ______, 19__, between the
Company and the purchaser[s] named in Schedule I thereto providing for the
original issuance and sale by the Company of the Bonds of 19__, Series __, true
and correct copies of such Underwriting Agreement, certified as such by the
Corporate Secretary or an Assistant Corporate Secretary of the Company, having
been lodged with the Trustee and being available for inspection at its principal
corporate trust office.]
[No supplemental indenture entered into pursuant to (S)14.01 of the
Original Indenture shall amend or otherwise modify any provision contained in
this (S)1.05 without the consent of all the holders of Bonds of 19__, Series __
whose rights or obligations under this (S)1.05 would be affected by such
amendment or modification; nor shall any default by the Company in the
performance of its obligations under this (S)1.05, and the consequences thereof,
be waived pursuant to (S)7.24 of the Original Indenture, without like consent.]
[(S)1.06. The Company covenants that on depositing or leaving with the
Trustee funds for the payment of the principal and premium (if any) and interest
on any Bonds of 19__, Series ___ when the same become due, either at maturity or
otherwise, [or at the date fixed for redemption thereof, pursuant to (S)3.03 or
(S)10.03 of the Original Indenture], it will make effective arrangements with
the Trustee whereby such funds will be immediately available for payment to the
holder of such Bonds, and prior to, or within 5 days after, so depositing or
12
<PAGE>
leaving such funds, will give a notice, to be given as in the case of a notice
of redemption of Bonds of 19__, Series __, stating that such funds have been or
will be deposited or left with the Trustee and are or thereupon will be
immediately so available for payment to the holders of such Bonds and, as full
compliance with this Section, shall deliver to the Trustee proof satisfactory to
the Trustee that such notice has been given, or that arrangements have been made
insuring that such notice will be given, or a written instrument executed by the
Company under its corporate seal, and expressed to be irrevocable, authorizing
the Trustee to give such notice for and on behalf of the Company. In the case of
a redemption of Bonds of 19__, Series __, such notice may be a part of any
redemption notice published or given prior to or within such 5-day period after
any such deposit or leaving of such funds.]
[ARTICLE 2.
PROVISIONS SUPPLEMENTING THE MORTGAGE.
(S)2.01. [Insert applicable provisions.]]
[ARTICLE 3.
ADDITIONAL COVENANTS OF THE COMPANY.
(S)3.01. [Insert applicable provisions.]]
ARTICLE [4].
MISCELLANEOUS PROVISIONS.
(S)[4].01. All references herein to any article, section or provision
of the Original Indenture or any supplemental indenture refer to such article,
section or provision as heretofore supplemented and modified and as hereby
further supplemented and modified, unless, in any case, the context otherwise
requires. Terms used but not defined herein are used as defined in the Mortgage.
(S)[4].02. The recitals in this _________ Supplemental Indenture except
the recital of the succession of The Chase Manhattan Bank (National Association)
(formerly The Chase Manhattan Bank) to The Chase National Bank of the City of
New York are made by the Company only and not by the Trustee, and all of the
provisions contained in the Mortgage in respect of the rights, privileges,
immunities, powers and duties of the Trustee shall be applicable in respect of
the Bonds of 19__, Series __ and of this ________ Supplemental Indenture as
fully and with like effect as if set forth herein in full.
(S)[4].03. As heretofore supplemented and modified and as supplemented
hereby, the Original Indenture is in all respects ratified and confirmed, and
the Original Indenture, as
13
<PAGE>
heretofore supplemented and modified, and this _______ Supplemental Indenture
shall be read, taken and construed as one and the same instrument.
(S)[4].04. Although this _______ Supplemental Indenture is dated for
convenience and for the purpose of reference _____ __, ____, the actual dates of
execution by the Company and by the Trustee are indicated by their respective
acknowledgements hereto annexed.
(S)[4].05. In order to facilitate the recording or filing of this
_______ Supplemental Indenture, it may be simultaneously executed in several
counterparts, each of which shall be deemed to be an original and such
counterparts shall together constitute but one and the same instrument.
14
<PAGE>
IN WITNESS WHEREOF, each party hereto has caused this instrument to be
signed in its name and behalf, and its corporate seal to be hereunto affixed and
attested, by its duly authorized officers, all as of the day and year first
above written.
VIRGINIA ELECTRIC AND POWER COMPANY,
[SEAL]
By
-----------------------------------
Vice President
Attest:
- ------------------------------
Assistant Corporate Secretary
THE CHASE MANHATTAN BANK,
[SEAL]
By
-----------------------------------
Vice President
Attest:
- ------------------------------
Assistant Secretary
15
<PAGE>
COMMONWEALTH OF VIRGINIA: )
) SS.:
CITY OF RICHMOND: )
(West
Virginia)
(North
Carolina)
I, __________, a notary public duly qualified, commissioned,
sworn and acting in and for the City and Commonwealth
aforesaid, hereby certify that on this _____ day of ______,
____:
(Virginia) _____________ and _________________, whose names as Vice
(Maryland) President and Assistant Corporate Secretary of VIRGINIA
ELECTRIC AND POWER COMPANY, a corporation, are signed to the
writing above, bearing date on the _____ day of ______, ____
have acknowledged the same before me in my City aforesaid; and
______________, who signed the writing above and hereto
annexed bearing date bearing date on the ____ day of ______,
____ for VIRGINIA ELECTRIC AND POWER COMPANY, has in my said
City, before me, acknowledged said writing to be the act and
deed of said corporation; and
______________ personally came before me and acknowledged that
he is Assistant Corporate Secretary of VIRGINIA ELECTRIC AND
POWER COMPANY, a corporation, and that, by authority duly
given and as the act of the corporation, the foregoing
instrument was signed in its name by a Vice President, sealed
with its corporate seal, and attested by himself as its
Assistant Corporate Secretary. My commission expires:
____________, ____
IN WITNESS WHEREOF, I have hereunto set my hand and official seal this
____ day of _________, ____.
Notary Public
[SEAL]
16
<PAGE>
STATE OF NEW YORK: )
) SS.:
COUNTY OF NEW YORK: )
I, _________, a notary public duly qualified, commissioned,
sworn and acting in and for the County and State aforesaid,
hereby certify that on this ____ day of _______, ____:
(Virginia) ___________ and ___________, whose names as Vice President and
(Maryland) Assistant Secretary of THE CHASE MANHATTAN BANK, a
corporation, are signed to the writing above, bearing date on
the ____ day of _____ , ____ have acknowledged the same before
me in my County aforesaid; and
(West ____________, who signed the writing above and hereto annexed
Virginia) bearing date on the ____ day of _______, ____ for THE CHASE
MANHATTAN BANK, has in my said County, before me, acknowledged
said writing to be the act and deed of said corporation; and
(North _____________ personally came before me and acknowledged that
Carolina) he is Assistant Secretary of THE CHASE MANHATTAN BANK,
a corporation, and that, by authority duly given and as the
act of the corporation, the foregoing instrument was signed in
its name by a Vice President, sealed with its corporate seal,
and attested by himself as its Assistant Secretary.
My commission expires: ____________, ____
IN WITNESS WHEREOF, I have hereunto set my hand and official
seal this ______ day of _________, ____.
Notary Public
[SEAL]
Exhibit 4(ii)
VIRGINIA ELECTRIC AND POWER COMPANY
TO
THE CHASE MANHATTAN BANK
Trustee
--------------------
SENIOR INDENTURE
Dated as of __________, _____
--------------------
<PAGE>
TABLE OF CONTENTS
Page
ARTICLE ONE
DEFINITIONS AND OTHER PROVISIONS
OF GENERAL APPLICATION
SECTION 101. Definitions.................................................... 1
SECTION 102. Compliance Certificates and Opinions........................... 7
SECTION 103. Form of Documents Delivered to Trustee......................... 7
SECTION 104. Acts of Holders; Record Dates.................................. 8
SECTION 105. Notices, Etc., to Trustee and Company.......................... 10
SECTION 106. Notice to Holders; Waiver...................................... 11
SECTION 107. Conflict with Trust Indenture Act.............................. 11
SECTION 108. Effect of Headings and Table of Contents....................... 11
SECTION 109. Successors and Assigns......................................... 11
SECTION 110. Separability Clause............................................ 12
SECTION 111. Benefits of Indenture.......................................... 12
SECTION 112. Governing Law.................................................. 12
SECTION 113. Legal Holidays................................................. 12
ARTICLE TWO
SECURITY FORMS
SECTION 201. Forms Generally................................................ 13
SECTION 202. Form of Face of Security....................................... 13
SECTION 203. Form of Reverse of Security.................................... 15
SECTION 204. Form of Legend for Global Securities........................... 18
SECTION 205. Form of Trustee's Certificate of Authentication................ 19
ARTICLE THREE
THE SECURITIES
SECTION 301. Amount Unlimited; Issuable in Series.......................... 20
SECTION 302. Denominations................................................. 23
SECTION 303. Execution, Authentication, Delivery and Dating................ 23
SECTION 304. Temporary Securities.......................................... 24
SECTION 305. Registration, Registration of Transfer and Exchange........... 25
SECTION 306. Mutilated, Destroyed, Lost and Stolen Securities.............. 27
i
<PAGE>
SECTION 307. Payment of Interest; Interest Rights Preserved................. 28
SECTION 308. Persons Deemed Owners.......................................... 29
SECTION 309. Cancellation................................................... 29
SECTION 310. Computation of Interest........................................ 29
SECTION 311. CUSIP Numbers.................................................. 30
ARTICLE FOUR
SATISFACTION AND DISCHARGE
SECTION 401. Satisfaction and Discharge of Indenture........................ 31
SECTION 402. Application of Trust Money..................................... 32
ARTICLE FIVE
REMEDIES
SECTION 501. Events of Default.............................................. 33
SECTION 502. Acceleration of Maturity; Rescission and Annulment............. 34
SECTION 503. Collection of Indebtedness and Suits for Enforcement by
Trustee........................................................ 35
SECTION 504. Trustee May File Proofs of Claim............................... 36
SECTION 505. Trustee May Enforce Claims Without Possession of
Securities..................................................... 36
SECTION 506. Application of Money Collected................................. 36
SECTION 507. Limitation on Suits............................................ 37
SECTION 508. Unconditional Right of Holders to Receive Principal,
Premium and Interest........................................... 37
SECTION 509. Restoration of Rights and Remedies............................. 38
SECTION 510. Rights and Remedies Cumulative................................. 38
SECTION 511. Delay or Omission Not Waiver................................... 38
SECTION 512. Control By Holders............................................. 38
SECTION 513. Waiver of Past Defaults........................................ 39
SECTION 514. Undertaking for Costs.......................................... 39
SECTION 515. Waiver of Stay or Extension Laws............................... 39
ARTICLE SIX
THE TRUSTEE
SECTION 601. Certain Duties and Responsibilities............................ 40
SECTION 602. Notice of Defaults............................................. 40
SECTION 603. Certain Rights of Trustee...................................... 40
SECTION 604. Not Responsible for Recitals or Issuance of Securities......... 41
ii
<PAGE>
SECTION 605. May Hold Securities........................................... 41
SECTION 606. Money Held in Trust........................................... 42
SECTION 607. Compensation and Reimbursement................................ 42
SECTION 608. Conflicting Interests......................................... 43
SECTION 609. Corporate Trustee Required; Eligibility....................... 45
SECTION 610. Resignation and Removal; Appointment of Successor............. 45
SECTION 611. Acceptance of Appointment by Successor........................ 46
SECTION 612. Merger, Conversion, Consolidation or Succession to
Business...................................................... 47
SECTION 613. Preferential Collection of Claims Against Company............. 48
SECTION 614. Appointment of Authenticating Agent........................... 48
ARTICLE SEVEN
HOLDERS' LISTS AND REPORTS BY TRUSTEE AND COMPANY
SECTION 701. Company to Furnish Trustee Names and Addresses of
Holders....................................................... 50
SECTION 702. Preservation of Information; Communications to Holders........ 50
SECTION 703. Reports by Trustee............................................ 50
SECTION 704. Reports by Company............................................ 51
ARTICLE EIGHT
CONSOLIDATION, MERGER, CONVEYANCE OR TRANSFER
SECTION 801. Company May Consolidate, Etc., on Certain Terms............... 52
SECTION 802. Successor Substituted......................................... 52
ARTICLE NINE
SUPPLEMENTAL INDENTURES
SECTION 901. Supplemental Indentures Without Consent of Holders............ 53
SECTION 902. Supplemental Indentures With Consent of Holders............... 54
SECTION 903. Execution of Supplemental Indentures.......................... 55
SECTION 904. Effect of Supplemental Indentures............................. 55
SECTION 905. Conformity with Trust Indenture Act........................... 55
SECTION 906. Reference in Securities to Supplemental Indentures............ 55
iii
<PAGE>
ARTICLE TEN
COVENANTS
SECTION 1001. Payment of Principal, Premium and Interest.................... 56
SECTION 1002. Maintenance of Office or Agency............................... 56
SECTION 1003. Money for Securities Payments to Be Held in Trust............. 56
SECTION 1004. Corporate Existence........................................... 57
SECTION 1005. Statement as to Compliance.................................... 57
SECTION 1006. Waiver of Certain Covenants................................... 58
SECTION 1007. Calculation of Original Issue Discount........................ 58
ARTICLE ELEVEN
REDEMPTION OF SECURITIES
SECTION 1101. Applicability of Article...................................... 59
SECTION 1102. Election to Redeem; Notice to Trustee......................... 59
SECTION 1103. Selection by Trustee of Securities to Be Redeemed............. 59
SECTION 1104. Notice of Redemption.......................................... 60
SECTION 1105. Securities Payable on Redemption Date......................... 61
SECTION 1106. Securities Redeemed in Part................................... 61
ARTICLE TWELVE
SINKING FUNDS
SECTION 1201. Applicability of Article..................................... 63
SECTION 1202. Satisfaction of Sinking Fund Payments with Securities........ 63
SECTION 1203. Redemption of Securities for Sinking Fund.................... 63
ARTICLE THIRTEEN
DEFEASANCE AND COVENANT DEFEASANCE
SECTION 1301. Applicability of Article..................................... 65
SECTION 1302. Defeasance and Discharge..................................... 65
SECTION 1303. Covenant Defeasance.......................................... 65
SECTION 1304. Conditions to Defeasance or Covenant Defeasance.............. 66
SECTION 1305. Deposited Money and U.S. Government Obligations to Be
Held in Trust; Miscellaneous Provisions...................... 67
iv
<PAGE>
ARTICLE FOURTEEN
IMMUNITY OF INCORPORATORS, STOCKHOLDERS,
OFFICERS AND DIRECTORS
SECTION 1401. Indenture and Securities Solely Corporate Obligations......... 68
v
<PAGE>
INDENTURE, dated as of ___________, ____, between Virginia
Electric and Power Company, a corporation duly organized and existing under the
laws of the Commonwealth of Virginia (herein called the "Company"), having its
principal office at 701 E. Cary Street, Richmond, Virginia 23219-3932, and
The Chase Manhattan Bank, a New York banking corporation, duly organized and
existing under the laws of the State of New York, having its principal corporate
trust office at 450 West 33rd Street, New York, New York 10001, as Trustee
(herein called the "Trustee").
RECITALS OF THE COMPANY
The Company has duly authorized the execution and delivery of
this Indenture to provide for the issuance from time to time of its unsecured
senior notes or other evidences of indebtedness (herein called the
"Securities"), to be issued in one or more series as in this Indenture provided.
All things necessary to make this Indenture a valid agreement
of the Company, in accordance with its terms, have been done.
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 agreed, for the equal and
proportionate benefit of all Holders of the Securities or of series thereof, as
follows:
ARTICLE ONE
DEFINITIONS AND OTHER PROVISIONS
OF GENERAL APPLICATION
SECTION 101. Definitions.
For all purposes of this Indenture, 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, and, except as otherwise
herein expressly provided, the term "generally accepted
accounting principles" with respect to any computation
<PAGE>
required or permitted hereunder shall mean such accounting
principles as are generally accepted in the United States of
America;
(4) unless the context otherwise requires, any reference to an
"Article" or a "Section" refers to an Article or a Section, as
the case may be, of this Indenture; and
(5) 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.
"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.
"Authenticating Agent" means any Person authorized by the
Trustee pursuant to Section 614 to act on behalf of the Trustee to authenticate
Securities of one or more series.
"Board of Directors" means either the board of directors of
the Company or any duly authorized committee of that board.
"Board Resolution" means a copy of a resolution certified by
the Corporate Secretary or an Assistant Corporate Secretary of the Company to
have been duly adopted by the Board of Directors and to be in full force and
effect on the date of such certification, and delivered to the Trustee.
"Business Day", when used with respect to any Place of
Payment, means each Monday, Tuesday, Wednesday, Thursday and Friday which is not
a day on which banking institutions in that Place of Payment are authorized or
obligated by law or executive order to close.
"Commission" means the Securities and Exchange Commission,
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 at such time.
"Company" means the Person named as the "Company" in the first
paragraph of this instrument until a successor Person shall have become such
pursuant to the applicable provisions of this Indenture, and thereafter
"Company" shall mean such successor Person.
2
<PAGE>
"Company Request" or "Company Order" means a written request
or order signed in the name of the Company by its Chairman of the Board, its
Vice Chairman of the Board, its President or a Vice President, and by its
Treasurer, an Assistant Treasurer, its Secretary or an Assistant Secretary, and
delivered to the Trustee.
"Corporate Trust Office" means the office of the Trustee in
the City of New York at which at any particular time its corporate trust
business shall be principally administered, which office at the date hereof is
located at 450 West 33rd Street, New York, New York 10001.
"corporation" means a corporation, association, company,
joint-stock company or business trust.
"Covenant Defeasance" has the meaning specified in Section
1303.
"Defaulted Interest" has the meaning specified in Section 307.
"Defeasance" has the meaning specified in Section 1302.
"Depositary" means, with respect to Securities of any series
issuable in whole or in part in the form of one or more Global Securities, a
clearing agency registered under the Exchange Act that is designated to act as
Depositary for such Securities as contemplated by Section 301.
"Event of Default" has the meaning specified in Section 501.
"Exchange Act" means the Securities Exchange Act of 1934 and
any statute successor thereto, in each case as amended from time to time.
"Expiration Date" has the meaning specified in Section 104.
"Global Security" means a Security that evidences all or part
of the Securities of any series that is issued to a Depositary or a nominee
thereof for such series in accordance with Section 301(17).
"Holder" means a Person in whose name a Security is registered
in the Security Register.
"Indenture" means this Senior Indenture as originally executed
and 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, including, for all purposes of this instrument and any such
supplemental indenture, the provisions of the Trust Indenture Act that are
deemed to be a part of and govern this instrument and any such supplemental
indenture, respectively. The term "Indenture" shall also include the terms of
particular series of Securities established as contemplated by Section 301.
"interest", when used with respect to an Original Issue
Discount Security which by its terms bears interest only after Maturity, means
interest payable after Maturity.
3
<PAGE>
"Interest Payment Date", when used with respect to any
Security, means the Stated Maturity of an installment of interest on such
Security.
"Investment Company Act" means the Investment Company Act of
1940 and any statute successor thereto, in each case as amended from time to
time.
"Maturity", when used with respect to any Security, means the
date on which the principal of such Security or an instalment of principal
becomes due and payable as therein or herein provided, whether at the Stated
Maturity or by declaration of acceleration, call for redemption or otherwise.
"Notice of Default" means a written notice of the kind
specified in Section 501(4).
"Officers' Certificate" means a certificate signed by the
Chairman of the Board, the Vice Chairman of the Board, the President or a Vice
President, and by the Treasurer, an Assistant Treasurer, the Corporate Secretary
or an Assistant Corporate Secretary, of the Company, and delivered to the
Trustee. One of the officers signing an Officers' Certificate given pursuant to
Section 1005 shall be the principal executive, financial or accounting officer
of the Company.
"Opinion of Counsel" means a written opinion of counsel, who
may be counsel for the Company, or other counsel who shall be reasonably
acceptable to the Trustee.
"Original Issue Discount Security" means any Security which
provides for an amount 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 canceled by the Trustee or
delivered to the Trustee for cancellation;
(2) Securities (other than Securities as to which Covenant
Defeasance has been effected pursuant to Section 1303) for
whose payment or redemption money in the necessary amount has
been theretofore deposited with the Trustee or any Paying
Agent (other than the Company) in trust or set aside and
segregated in trust by the Company (if the Company shall act
as its own Paying Agent) for the Holders of such Securities;
provided that, if such Securities are to be redeemed, notice
of such redemption has been duly given pursuant to this
Indenture or provision therefor satisfactory to the Trustee
has been made;
(3) Securities as to which Defeasance has been effected
pursuant to Section 1302; and
(4) Securities that have been paid pursuant to Section 306 or in
exchange for or in lieu of which other Securities have been
authenticated and
4
<PAGE>
delivered pursuant to this Indenture, other than any such
Securities in respect of which there shall have been presented
to the Trustee proof satisfactory to it that such Securities
are held by a bona fide purchaser in whose hands such
Securities are valid obligations of the Company;
provided, however, that in determining whether the Holders of the requisite
principal amount of the Outstanding Securities have given, made or taken any
request, demand, authorization, direction, notice, consent, waiver or other
action hereunder as of any date, (A) the principal amount of an Original Issue
Discount Security that shall be deemed to be Outstanding shall be the amount of
the principal thereof which would be due and payable as of such date upon
acceleration of the Maturity thereof to such date pursuant to Section 502, (B)
if, as of such date, the principal amount payable at the Stated Maturity of a
Security is not determinable, the principal amount of such Security which shall
be deemed to be Outstanding shall be the amount as specified or determined as
contemplated by Section 301, [(C) the principal amount of a Security denominated
in one or more foreign currencies or currency units that shall be deemed to be
Outstanding shall be the U.S. dollar equivalent, determined as of such date in
the manner provided as contemplated by Section 301, of the principal amount of
such Security (or, in the case of a Security described in Clause (A) or (B)
above, of the amount determined as provided in such Clause), and (D) Securities
owned by the Company or any other obligor upon the Securities or any Affiliate
of the Company or of such other obligor shall be disregarded and deemed not to
be Outstanding, except that, in determining whether the Trustee shall be
protected in relying upon any such request, demand, authorization, direction,
notice, consent, waiver or other action, only Securities which the Trustee
actually 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 the 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.
"Paying Agent" means any Person authorized by the Company to
pay the principal of or any premium or interest on any Securities on behalf of
the Company.
"Periodic Offering" means an offering of Securities of a
series from time to time the specific terms of which Securities, including
without limitation the rate or rates of interest or formula for determining the
rate or rates of interest thereon, if any, the Stated Maturity or Maturities
thereof and the redemption provisions, if any, with respect thereto, are to be
determined by the Company upon the issuance of such Securities.
"Person" means any individual, corporation, partnership,
limited liability company, joint venture, trust, unincorporated organization or
government or any agency or political subdivision thereof.
"Place of Payment", when used with respect to the Securities
of any series, means the place or places where the principal of and any premium
and interest on the Securities of that series are payable as specified 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 such particular Security; and,
5
<PAGE>
for the purposes of this definition, any Security authenticated and delivered
under Section 306 in exchange for or in lieu of a mutilated, destroyed, lost or
stolen Security shall be deemed to evidence the same debt as the mutilated,
destroyed, lost or stolen Security.
"Redemption Date", when used with respect to any Security to
be redeemed, means the date fixed for such redemption by or pursuant to this
Indenture.
"Redemption Price", when used with respect to any Security to
be redeemed, means the price at which it is to be redeemed pursuant to this
Indenture.
"Regular Record Date" for the interest payable on any Interest
Payment Date on the Securities of any series means the date specified for that
purpose as contemplated by Section 301.
"Responsible Officer", when used with respect to the Trustee,
means the chairman or any vice-chairman of the board of directors, the chairman
or any vice-chairman of the executive committee of the board of directors, the
chairman of the trust committee, the president, any vice president, the
secretary, any assistant secretary, the treasurer, any assistant treasurer, the
cashier, any assistant cashier, any senior trust officer, any trust officer or
assistant trust officer, the controller or any assistant controller or any other
officer of the 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.
"Securities" has the meaning stated in the first recital of
this Indenture and more particularly means any Securities authenticated and
delivered under this Indenture.
"Securities Act" means the Securities Act of 1933 and any
statute successor thereto, in each case as amended from time to time.
"Security Register" and "Security Registrar" have the
respective meanings specified in Section 305.
"Special Record Date" for the payment of any Defaulted
Interest means a date fixed by the Trustee pursuant to Section 307.
"Stated Maturity", when used with respect to any Security or
any instalment of principal thereof or interest thereon, means the date
specified in such Security as the fixed date on which the principal of such
Security or such instalment of principal or interest is due and payable.
"Trust Indenture Act" means the Trust Indenture Act of 1939 as
in force at the date as of which this instrument was executed; provided,
however, that in the event the Trust Indenture Act of 1939 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.
6
<PAGE>
"Trustee" means the Person named as the "Trustee" in the first
paragraph of this instrument until a successor Trustee shall have become such
pursuant to the applicable provisions of this Indenture, and thereafter
"Trustee" shall mean or include each Person who is then a Trustee hereunder, and
if at any time there is more than one such Person, "Trustee" as used with
respect to the Securities of any series shall mean the Trustee with respect to
Securities of that series.
"U.S. Government Obligation" has the meaning specified in
Section 1304.
"Vice President", when used with respect to the Company or the
Trustee, means any vice president, whether or not designated by a number or a
word or words added before or after the title "vice president".
SECTION 102. Compliance Certificates and Opinions.
Upon any application or request by the Company to the Trustee
to take any action under any provision of this Indenture, the Company shall
furnish to the Trustee such certificates and opinions as may be required under
the Trust Indenture Act. Each such certificate or opinion shall be given in the
form of an Officers' Certificate, if to be given by an officer of the Company,
or an Opinion of Counsel, if to be given by counsel, and shall comply with the
requirements of the Trust Indenture Act and any other requirements set forth in
this Indenture.
Every certificate 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 covenant or condition 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 covenant or condition 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
7
<PAGE>
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 the 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.
Whenever, subsequent to the receipt by the Trustee of any
Board Resolution, Officers' Certificate, Opinion of Counsel or other document or
instrument, a clerical, typographical or other inadvertent or unintentional
error or omission shall be discovered therein, a new document or instrument may
be substituted therefor in corrected form with the same force and effect as if
originally filed in the corrected form and, irrespective of the date or dates of
the actual execution and/or delivery thereof, such substitute document or
instrument shall be deemed to have been executed and/or delivered as of the date
or dates required with respect to the document or instrument for which it is
substituted. Anything in this Indenture to the contrary notwithstanding, if any
such corrective document or instrument indicates that action has been taken by
or at the request of the Company that could not have been taken had the original
document or instrument not contained such error or omission, the action so taken
shall not be invalidated or otherwise rendered ineffective but shall be and
remain in full force and effect, except to the extent that such action was a
result of willful misconduct or bad faith. Without limiting the generality of
the foregoing, any Securities issued under the authority of such defective
document or instrument shall nevertheless be the valid obligations of the
Company entitled to the benefits of this Indenture equally and ratably with all
other Outstanding Securities, except as aforesaid.
SECTION 104. Acts of Holders; Record Dates.
Any request, demand, authorization, direction, notice,
consent, waiver or other action provided or permitted by this Indenture to be
given, made 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; and, except as herein otherwise expressly
provided, such action shall become effective when such instrument or instruments
are delivered to the Trustee and, where it is hereby expressly required, to the
Company. Such instrument or instruments (and the action embodied therein and
evidenced thereby) are herein sometimes referred to as the "Act" of the Holders
signing such instrument or instruments. Proof of execution of any such
instrument or of a writing appointing any such agent shall be sufficient
8
<PAGE>
for any purpose of this Indenture and (subject to Section 601) conclusive in
favor of the Trustee and the Company, if made in the manner provided in this
Section.
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 a certificate of a 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 a signer acting in a capacity other than his individual
capacity, such certificate or affidavit shall also constitute sufficient proof
of his authority. The fact and date of the execution of any such instrument or
writing, or the authority of the Person executing the same, may also be proved
in any other manner that the Trustee deems sufficient.
The ownership of Securities shall be proved by the Security
Register.
Any request, demand, authorization, direction, notice,
consent, waiver or other Act of 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 or
the Company in reliance thereon, whether or not notation of such action is made
upon such Security.
The Company may set any day as a record date for the purpose
of determining the Holders of Outstanding Securities of any series entitled to
give, make or take any request, demand, authorization, direction, notice,
consent, waiver or other action provided or permitted by this Indenture to be
given, made or taken by Holders of Securities of such series; provided that the
Company may not set a record date for, and the provisions of this paragraph
shall not apply with respect to, the giving or making of any notice,
declaration, request or direction referred to in the next paragraph. If any
record date is set pursuant to this paragraph, the Holders of Outstanding
Securities of the relevant series on such record date, and no other Holders,
shall be entitled to take or revoke the relevant action, whether or not such
Holders remain Holders after such record date; provided that no such action
shall be effective hereunder unless taken on or prior to the applicable
Expiration Date by Holders of the requisite principal amount of Outstanding
Securities of such series on such record date. Nothing in this paragraph shall
be construed to prevent the Company from setting a new record date for any
action for which a record date has previously been set pursuant to this
paragraph (whereupon the record date previously set shall automatically and with
no action by any Person be canceled and of no effect), and nothing in this
paragraph shall be construed to render ineffective any action taken by Holders
of the requisite principal amount of Outstanding Securities of the relevant
series on the date such action is taken. Promptly after any record date is set
pursuant to this paragraph, the Company, at its own expense, shall cause notice
of such record date, the proposed action by Holders and the applicable
Expiration Date to be given to the Trustee in writing and to each Holder of
Securities of the relevant series in the manner set forth in Section 106.
The Trustee may set any day as a record date for the purpose
of determining the Holders of Outstanding Securities of any series entitled to
join in the giving or making of (i) any Notice of Default, (ii) any declaration
of acceleration referred to in Section 502, (iii) any request to institute
proceedings referred to in Section 507(2) or (iv) any direction referred to in
Section
9
<PAGE>
512, in each case with respect to Securities of such series. If any record date
is set pursuant to this paragraph, the Holders of Outstanding Securities of such
series on such record date, and no other Holders, shall be entitled to join in
such notice, declaration, request or direction or to revoke the same, whether or
not such Holders remain Holders after such record date; provided that no such
action shall be effective hereunder unless taken on or prior to the applicable
Expiration Date by Holders of the requisite principal amount of Outstanding
Securities of such series on such record date. Nothing in this paragraph shall
be construed to prevent the Trustee from setting a new record date for any
action for which a record date has previously been set pursuant to this
paragraph (whereupon the record date previously set shall automatically and with
no action by any Person be canceled and of no effect), and nothing in this
paragraph shall be construed to render ineffective any action taken by Holders
of the requisite principal amount of Outstanding Securities of the relevant
series on the date such action is taken. Promptly after any record date is set
pursuant to this paragraph, the Trustee, at the Company's expense, shall cause
notice of such record date, the proposed action by Holders and the applicable
Expiration Date to be sent to the Company in writing and to each Holder of
Securities of the relevant series in the manner set forth in Section 106.
With respect to any record date set pursuant to this Section,
the party hereto that sets such record dates may designate any day as the
"Expiration Date" and from time to time may change the Expiration Date to any
earlier or later day; provided that no such change shall be effective unless
notice of the proposed new Expiration Date is given to the other party hereto in
writing, and to each Holder of Securities of the relevant series in the manner
set forth in Section 106, on or prior to the existing Expiration Date. If an
Expiration Date is not designated with respect to any record date set pursuant
to this Section, the party hereto that sets such record date shall be deemed to
have initially designated the 180th day after such record date as the Expiration
Date with respect thereto, subject to its right to change the Expiration Date as
provided in this paragraph. Notwithstanding the foregoing, no Expiration Date
shall be later than the 180th day after the applicable record date.
Without limiting the foregoing, a Holder entitled hereunder to
take any action hereunder with regard to any particular Security may do so with
regard to all or any part of the principal amount of such Security or by one or
more duly appointed agents each of which may do so pursuant to such appointment
with regard to all or any part of such principal amount.
SECTION 105. Notices, Etc., to Trustee and Company.
Any request, demand, authorization, direction, notice,
consent, waiver or Act of Holders or other document provided or permitted by
this Indenture to be made upon, given or furnished to, or filed with,
(1) the Trustee 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 the Trustee at its
Corporate Trust Office, Attention: Corporate Trustee
Administration, or
(2) the Company by the Trustee or by any Holder shall be
sufficient for every purpose hereunder (unless otherwise
herein expressly provided) if in
10
<PAGE>
writing and mailed, first-class postage prepaid, to the
Company addressed to it at the address of its principal office
specified in the first paragraph of this instrument,
attention: Treasurer, or at any other address previously
furnished in writing to the Trustee by the Company.
SECTION 106. Notice to Holders; Waiver.
Where this Indenture provides for notice to Holders of any
event, such notice shall be sufficiently given (unless otherwise herein
expressly provided) 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 (if any), and not earlier than the
earliest date (if any), prescribed for the giving of such notice. In any case
where notice to Holders is given by mail, neither the failure to mail such
notice, nor any defect in any notice so mailed, to any particular Holder shall
affect the sufficiency of such notice with respect to other Holders. 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, but such filing shall not be
a condition precedent to the validity of any action taken in reliance upon such
waiver.
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 by
mail, then such notification as shall be made with the approval of the Trustee
shall constitute a sufficient notification for every purpose hereunder.
SECTION 107. Conflict with Trust Indenture Act.
If any provision hereof limits, qualifies or conflicts with a
provision of the Trust Indenture Act that is required under the Trust Indenture
Act to be a part of and govern this Indenture, the latter provision shall
control. If any provision of this Indenture modifies or excludes any provision
of the Trust Indenture Act which may be so modified or excluded, the latter
provision shall be deemed to apply to this Indenture as so modified or to be
excluded, as the case may be.
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.
11
<PAGE>
SECTION 110. Separability Clause.
In case any provision in this Indenture or in the Securities
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, express or
implied, shall give to any Person, other than the parties hereto and their
successors hereunder and the Holders, 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 law of the State of New York, without regard to
conflicts of laws principles thereof.
SECTION 113. Legal Holidays.
In any case where any Interest Payment Date, Redemption Date
or Stated Maturity of any Security shall not be a Business Day at any Place of
Payment, then (notwithstanding any other provision of this Indenture or of the
Securities (other than a provision of any Security that specifically states that
such provision shall apply in lieu of this Section)) payment of interest or
principal (and premium, if any) 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.
12
<PAGE>
ARTICLE TWO
SECURITY FORMS
SECTION 201. Forms Generally.
The Securities of each series shall be in substantially the
form set forth in this Article, or in such other form as shall be established by
or pursuant to a Board Resolution or in one or more indentures supplemental
hereto, in each case with such appropriate insertions, omissions, substitutions
and other variations as are required or permitted by this Indenture, 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 the rules of any
securities exchange or Depositary therefor or as may, consistently herewith, be
determined by the officers executing such Securities, as evidenced by their
execution thereof. If the form of Securities of any series is established by
action taken pursuant to a Board Resolution, a copy of an appropriate record of
such action shall be certified by the Corporate Secretary or an Assistant
Corporate Secretary of the Company and delivered to the Trustee at or prior to
the delivery of the Company Order contemplated by Section 303 for the
authentication and delivery of such Securities.
The definitive Securities shall be printed, lithographed or
engraved on steel engraved borders or may be produced in any other manner, all
as determined by the officers executing such Securities, as evidenced by their
execution of such Securities.
SECTION 202. Form of Face of Security.
[Insert any legend required by the Internal Revenue Code and
the regulations thereunder.]
VIRGINIA ELECTRIC AND POWER COMPANY
--------------------
No. __________ $ __________
CUSIP No. ____
Virginia Electric and Power Company, a corporation duly
organized and existing under the laws of Virginia (herein called the "Company",
which term includes any successor Person under the Indenture hereinafter
referred to), for value received, hereby promises to pay to
______________________, or registered assigns, the principal sum of ________
Dollars on _________________________ [if the Security is to bear interest prior
to Maturity, insert - , and to pay interest thereon from __________ or from the
most recent Interest Payment Date to which interest has been paid or duly
provided for, [insert - semi-annually, quarterly, monthly or other description
of the relevant payment period] on [________, ________,] and __________ in each
year, commencing _______________, at the rate of ____% per annum, until the
principal hereof is paid or made available for payment [if applicable, insert -
, provided that any principal and premium, and any such instalment of interest,
that is overdue shall bear interest at the rate of
13
<PAGE>
___% per annum (to the extent that the payment of such interest shall be legally
enforceable), from the dates such amounts are due until they are paid or made
available for payment, and such interest shall be payable on demand]. The
interest so payable, and punctually paid or duly provided for, on any Interest
Payment Date will, as provided in such Indenture, be paid to the Person in whose
name this Security (or one or more Predecessor Securities) is registered at the
close of business on the Regular Record Date for such interest, which shall be
the [___________________] (whether or not a Business Day), as the case may be,
next preceding such Interest Payment Date. Any such interest not so punctually
paid or duly provided for will forthwith cease to be payable to the Holder on
such Regular Record Date and may either be paid to the Person in whose name this
Security (or one or more Predecessor Securities) is registered at the close of
business on a Special Record Date for the payment of such Defaulted Interest to
be fixed by the Trustee, notice whereof shall be given to Holders of Securities
of this series not less than 10 days prior to such Special Record Date, or be
paid at any time in any other lawful manner not inconsistent with the
requirements of any securities exchange on which the Securities of this series
may be listed, and upon such notice as may be required by such exchange, all as
more fully provided in said Indenture].
[If the Security is not to bear interest prior to Maturity,
insert - The principal of this Security shall not bear interest except in the
case of a default in payment of principal upon acceleration, upon redemption or
at Stated Maturity and in such case the overdue principal and any overdue
premium shall bear interest at the rate of ____% per annum (to the extent that
the payment of such interest shall be legally enforceable), from the dates such
amounts are due until they are paid or made available for payment. Interest on
any overdue principal or premium shall be payable on demand. Any such interest
on overdue principal or premium which is not paid on demand shall bear interest
at the rate of ____% per annum (to the extent that the payment of such interest
on interest shall be legally enforceable), from the date of such demand until
the amount so demanded is paid or made available for payment. Interest on any
overdue interest shall be payable on demand.]
Payment of the principal of (and premium, if any) and [if
applicable, insert - any such] interest on this Security will be made at the
office or agency of the Company maintained for that purpose in
_________________, in such coin or currency of the United States of America as
at the time of payment is legal tender for payment of public and private debts
[if applicable, insert - ; provided, however, that at the option of the Company
payment of interest may be made by check mailed to the address of the Person
entitled thereto as such address shall appear in the Security Register].
Reference is hereby made to the further provisions of this
Security set forth on the reverse hereof, which further provisions shall for all
purposes have the same effect as if set forth at this place.
Unless the certificate of authentication hereon has been
executed by the Trustee referred to on the reverse hereof by [manual] signature,
this Security shall not be entitled to any benefit under the Indenture or be
valid or obligatory for any purpose.
14
<PAGE>
IN WITNESS WHEREOF, the Company has caused this instrument to
be duly executed under its corporate seal.
Virginia Electric and Power Company
By_______________________________________
Attest:
- ------------------------------
SECTION 203. Form of Reverse of Security.
This Security is one of a duly authorized issue of securities
of the Company (herein called the "Securities"), issued and to be issued in one
or more series under a Senior Indenture, dated as of __________, ____ (herein
called the "Indenture", which term shall have the meaning assigned to it in such
instrument), between the Company and The Chase Manhattan Bank, as Trustee
(herein called the "Trustee", which term includes any successor trustee under
the Indenture), and reference is hereby made to the Indenture for a statement of
the respective rights, limitations of rights, duties and immunities thereunder
of the Company, the Trustee and the Holders of the Securities and of the terms
upon which the Securities are, and are to be, authenticated and delivered. This
Security is one of the series designated on the face hereof [if applicable,
insert - , limited in aggregate principal amount to $__________].
[If applicable, insert - The Securities of this series are
subject to redemption upon not less than 30 days notice by mail, [if applicable,
insert - (1) on ____________ in any year commencing with the year _____ and
ending with the year _____ through operation of the sinking fund for this series
at a Redemption Price equal to 100% of the principal amount, and (2)] at any
time [if applicable, insert - on or after ___________, 19__], as a whole or in
part, at the election of the Company, at the following Redemption Prices
(expressed as percentages of the principal amount): If redeemed [if applicable,
insert - on or before _________________, ___%, and if redeemed] during the
12-month period beginning _________ of the years indicated,
Year Redemption Price Year Redemption Price
and thereafter at a Redemption Price equal to ____% of the principal amount,
together in the case of any such redemption [if applicable, insert - (whether
through operation of the sinking fund or otherwise)] with accrued interest to
the Redemption Date, but interest installments whose Stated Maturity is on or
prior to such Redemption Date will be payable to the Holders of such Securities,
or one or more Predecessor Securities, of record at the close of business on the
relevant Record Dates referred to on the face hereof, all as provided in the
Indenture.]
15
<PAGE>
[If applicable, insert - The Securities of this series are
subject to redemption upon not less than 30 days notice by mail, (1) on
____________ in any year commencing with the year ______ and ending with the
year _____ through operation of the sinking fund for this series at the
Redemption Prices for redemption through operation of the sinking fund
(expressed as percentages of the principal amount) set forth in the table below,
and (2) at any time [if applicable, insert - on or after _____________], as a
whole or in part, at the election of the Company, at the Redemption Prices for
redemption otherwise than through operation of the sinking fund (expressed as
percentages of the principal amount) set forth in the table below: If redeemed
during the 12-month period beginning ________ of the years indicated,
Redemption Price for Redemption Price for
Redemption Through Redemption Otherwise Than
Operation of the Through Operation
Year Sinking Fund of the Sinking Fund
and thereafter at a Redemption Price equal to _____% of the principal amount,
together in the case of any such redemption (whether through operation of the
sinking fund or otherwise) with accrued interest to the Redemption Date, but
interest installments whose Stated Maturity is on or prior to such Redemption
Date will be payable to the Holders of such Securities, or one or more
Predecessor Securities, of record at the close of business on the relevant
Record Dates referred to on the face hereof, all as provided in the Indenture.]
[If applicable, insert - Notwithstanding the foregoing, the
Company may not, prior to _________, redeem any Securities of this series as
contemplated by [if applicable, insert Clause (2) of] the preceding paragraph as
a part of, or in anticipation of, any refunding operation by the application,
directly or indirectly, of moneys borrowed having an interest cost to the
Company (calculated in accordance with generally accepted financial practice) of
less than ____% per annum.]
[If applicable, insert - The sinking fund for this series
provides for the redemption on __________ in each year beginning with the year
_______ and ending with the year ______ of [if applicable, insert - not less
than $___________ ("mandatory sinking fund") and not more than] $____________
aggregate principal amount of Securities of this series. Securities of this
series acquired or redeemed by the Company otherwise than through [if
applicable, insert mandatory] sinking fund payments may be credited against
subsequent [if applicable, insert mandatory] sinking fund payments otherwise
required to be made [if applicable, insert - , in the inverse order in which
they become due].]
[If the Security is subject to redemption of any kind, insert
- - - In the event of redemption of this Security in part only, a new Security or
Securities of this series and of like tenor for the unredeemed portion hereof
will be issued in the name of the Holder hereof upon the cancellation hereof.]
16
<PAGE>
[If applicable, insert - The Securities of this series are not
redeemable prior to Stated Maturity.]
[If applicable, insert - The Indenture contains provisions for
defeasance at any time of [the entire indebtedness of this Security] [or]
[certain restrictive covenants and Events of Default with respect to this
Security] [, in each case] upon compliance with certain conditions set forth in
the Indenture.]
[If the Security is not an Original Issue Discount Security,
insert - If an Event of Default with respect to Securities of this series shall
occur and be continuing, the principal of the Securities of this series may be
declared due and payable in the manner and with the effect provided in the
Indenture.]
[If the Security is an Original Issue Discount Security,
insert - If an Event of Default with respect to Securities of this series shall
occur and be continuing, an amount of principal of the Securities of this series
may be declared due and payable in the manner and with the effect provided in
the Indenture. Such amount shall be equal to [insert formula for determining the
amount]. Upon payment (i) of the amount of principal so declared due and payable
and (ii) of interest on any overdue principal, premium and interest (in each
case to the extent that the payment of such interest shall be legally
enforceable), all of the Company's obligations in respect of the payment of the
principal of and premium and interest, if any, on the Securities of this series
shall terminate.]
The Indenture permits, with certain exceptions as therein
provided, the amendment thereof and the modification of the rights and
obligations of the Company and the rights of the Holders of the Securities of
each series to be affected under the Indenture at any time by the Company and
the Trustee with the consent of the Holders of a majority in principal amount of
the Securities at the time Outstanding of each series to be affected. The
Indenture also contains provisions permitting the Holders of specified
percentages in principal amount of the Securities of each series at the time
Outstanding, on behalf of the Holders of all Securities of such series, to waive
compliance by the Company with certain provisions of the Indenture and certain
past defaults under the Indenture and their consequences. Any such consent or
waiver by the Holder of this Security shall be conclusive and binding upon such
Holder and upon all future Holders of this Security and of any Security issued
upon the registration of transfer hereof or in exchange therefor or in lieu
hereof, whether or not notation of such consent or waiver is made upon this
Security.
As provided in and subject to the provisions of the Indenture,
the Holder of this Security shall not have the right to institute any proceeding
with respect to the Indenture or for the appointment of a receiver or trustee or
for any other remedy thereunder, unless such Holder shall have previously given
the Trustee written notice of a continuing Event of Default with respect to the
Securities of this series, the Holders of not less than a majority in principal
amount of the Securities of this series at the time Outstanding shall have made
written request to the Trustee to institute proceedings in respect of such Event
of Default as Trustee and offered the Trustee reasonable indemnity, and the
Trustee shall not have received from the Holders of a majority in principal
amount of Securities of this series at the time Outstanding a direction
inconsistent with such request, and shall have failed to institute any such
proceeding for 60 days
17
<PAGE>
after receipt of such notice, request and offer of indemnity. The foregoing
shall not apply to any suit instituted by the Holder of this Security for the
enforcement of any payment of principal hereof or any premium or interest hereon
on or after the respective due dates expressed or provided for herein.
No reference herein to the Indenture and no provision of this
Security or of the Indenture shall alter or impair the obligation of the
Company, which is absolute and unconditional, to pay the principal of and any
premium and interest on this Security at the times, place and rate, and in the
coin or currency, herein prescribed.
As provided in the Indenture and subject to certain
limitations therein set forth, the transfer of this Security is registrable in
the Security Register, upon surrender of this Security for registration of
transfer at the office or agency of the Company in any place where the principal
of and any premium and interest on this Security are payable, duly endorsed by,
or accompanied by a written instrument of transfer in form satisfactory to the
Company and the Security Registrar duly executed by, the Holder hereof or his
attorney duly authorized in writing, and thereupon one or more new Securities of
this series and of like tenor, of authorized denominations and for the same
aggregate principal amount, will be issued to the designated transferee or
transferees.
The Securities of this series are issuable only in registered
form without coupons in denominations of [$1,000] and any integral multiple
thereof. As provided in the Indenture and subject to certain limitations therein
set forth, Securities of this series are exchangeable for a like aggregate
principal amount of Securities of this series having the same Stated Maturity
and of like tenor of any authorized denominations as requested by the Holder
upon surrender of the Note or Notes to be exchanged at the office or agency of
the Company.
No service charge shall be made for any such registration of
transfer or exchange, but the Company may require payment of a sum sufficient to
cover any tax or other governmental charge payable in connection therewith.
Prior to due presentment of this Security for registration of
transfer, the Company, the Trustee and any agent of the Company or the Trustee
may treat the Person in whose name this Security is registered as the owner
hereof for all purposes, whether or not this Security be overdue, and neither
the Company, the Trustee nor any such agent shall be affected by notice to the
contrary.
All terms used in this Security that are defined in the
Indenture shall have the meanings assigned to them in the Indenture.
SECTION 204. Form of Legend for Global Securities.
Unless otherwise specified as contemplated by Section 301 for
the Securities evidenced thereby, every Global Security authenticated and
delivered hereunder shall bear a legend in substantially the following form:
18
<PAGE>
THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE
HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A
NOMINEE THEREOF. THIS SECURITY MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A
SECURITY REGISTERED, AND NO TRANSFER OF THIS SECURITY IN WHOLE OR IN PART MAY BE
REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITARY OR A NOMINEE
THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.
SECTION 205. Form of Trustee's Certificate of Authentication.
The Trustee's certificate of authentication shall be in
substantially the following form:
This is one of the Securities of the series designated therein
referred to in the within-mentioned Indenture.
THE CHASE MANHATTAN BANK,
As Trustee
By_______________________________________
Authorized Officer
19
<PAGE>
ARTICLE THREE
THE SECURITIES
SECTION 301. Amount Unlimited; Issuable in Series.
The aggregate principal amount of Securities which may be
authenticated and delivered under this Indenture is unlimited.
The Securities may be issued in one or more series. There
shall be established in or pursuant to a Board Resolution and, subject to
Section 303, set forth, or determined in the manner provided, in an Officers'
Certificate, or established in one or more indentures supplemental hereto, prior
to the issuance of Securities of any series,
(1) the title of the Securities of the series (which shall
distinguish the Securities of the series from Securities of
any other series);
(2) any limit upon the aggregate principal amount of the
Securities of the series that may be authenticated and
delivered under this Indenture (except for Securities
authenticated and delivered upon registration of transfer of,
or in exchange for, or in lieu of, other Securities of the
series pursuant to Section 304, 305, 306, 906 or 1106 and
except for any Securities which, pursuant to Section 303, are
deemed never to have been authenticated and delivered
hereunder);
(3) the Person to whom any interest on a Security of the series
shall be payable, if other than 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;
(4) the date or dates on which the principal of any Securities of
the series is payable or the method by which such date or
dates shall be determined;
(5) the rate or rates at which any Securities of the series shall
bear interest, if any, or the method by which such rate or
rates shall be determined; the date or dates from which any
such interest shall accrue; the Interest Payment Dates on
which any such interest shall be payable; the manner (if any)
of determination of such Interest Payment Dates; and the
Regular Record Date, if any, for any such interest payable on
any Interest Payment Date;
(6) the right, if any, to extend the interest payment periods and
the duration of such extension;
(7) the place or places where the principal of and any premium and
interest on any Securities of the series shall be payable;;
(8) the period or periods within which, or the date or dates on
which, the price or prices at which and the terms and
conditions upon which any
20
<PAGE>
Securities of the series may be redeemed, in whole or in part,
at the option of the Company and, if other than by a Board
Resolution, the manner in which any election by the Company to
redeem the Securities shall be evidenced;
(9) the obligation, if any, of the Company to redeem or purchase
any Securities of the series pursuant to any sinking fund,
purchase fund or analogous provisions or at the option of the
Holder thereof and the period or periods within which, the
price or prices at which and the terms and conditions upon
which any Securities of the series shall be redeemed or
purchased, in whole or in part, pursuant to such obligation;
(10) if other than denominations of $1,000 and any integral
multiple thereof, the denominations in which any Securities of
the series shall be issuable;
(11) if the amount of principal of or any premium or interest on
any Securities of the series may be determined with reference
to an index or pursuant to a formula, the manner in which such
amounts shall be determined;
[(12) if other than the currency of the United States of America,
the currency, currencies or currency units in which the
principal of or any premium or interest on any Securities of
the series shall be payable and the manner of determining the
equivalent thereof in the currency of the United States of
America for any purpose, including for purposes of the
definition of "Outstanding" in Section 101;]
(13) if the principal of or any premium or interest on any
Securities of the series is to be payable, at the election of
the Company or the Holder thereof, in one or more currencies
or currency units other than that or those in which such
Securities are stated to be payable, the currency, currencies
or currency units in which the principal of or any premium or
interest on such Securities as to which such election is made
shall be payable, the periods within which and the terms and
conditions upon which such election is to be made and the
amount so payable (or the manner in which such amount shall be
determined);
(14) if other than the entire principal amount thereof, the portion
of the principal amount of any Securities of the series that
shall be payable upon declaration of acceleration of the
Maturity thereof pursuant to Section 502;
(15) if the principal amount payable at the Stated Maturity of any
Securities of the series will not be determinable as of any
one or more dates prior to the Stated Maturity, the amount
which shall be deemed to be the principal amount of such
Securities as of any such date for any purpose thereunder or
hereunder, including the principal amount thereof which shall
be due and payable upon any Maturity other than the Stated
Maturity or which shall be deemed to be Outstanding as of any
date prior to the Stated Maturity (or, in any such case, the
manner in which such amount deemed to be the principal amount
shall be determined);
21
<PAGE>
(16) if either or both of Sections 1302 and 1303 do not apply to
any Securities of the series;
(17) if applicable, that any Securities of the series shall be
issuable in whole or in part in the form of one or more Global
Securities and, in such case, the respective Depositary or
Depositaries for such Global Securities, the form of any
legend or legends which shall be borne by any such Global
Security in addition to or in lieu of that set forth in
Section 204 and any circumstances in addition to or in lieu of
those set forth in Clause (2) of the last paragraph of Section
305 in which any such Global Security may be exchanged in
whole or in part for Securities registered, and any transfer
of such Global Security in whole or in part may be registered,
in the name or names of Persons other than the Depositary for
such Global Security or a nominee thereof;
(18) any addition, modification or deletion of any Events of
Default or covenants provided with respect to any Securities
of the series and any change in the right of the Trustee or
the requisite Holders of such Securities to declare the
principal amount thereof due and payable pursuant to Section
502;
(19) any addition to or change in the covenants set forth in
Article Ten that applies to Securities of the series, and
(20) any other terms of the series.
All Securities of any one series shall be substantially
identical except as to denomination and except as may otherwise be provided in
or pursuant to the Board Resolution referred to above and (subject to Section
303) set forth, or determined in the manner provided, in the Officers'
Certificate referred to above or in any such indenture supplemental hereto.
If any of the terms of the series are established by action
taken pursuant to a Board Resolution, a copy of an appropriate record of such
action shall be certified by the Corporate Secretary or an Assistant Corporate
Secretary of the Company and delivered to the Trustee at or prior to the
delivery of the Officers' Certificate setting forth the terms or the manner of
determining the terms of the series.
With respect to Securities of a series offered in a Periodic
Offering, the Board Resolution (or action taken pursuant thereto), Officers'
Certificate or supplemental indenture referred to above may provide general
terms or parameters for Securities of such series and provide either that the
specific terms of particular Securities of such series shall be specified in a
Company Order or that such terms shall be determined by the Company in
accordance with other procedures specified in a Company Order as contemplated by
the third paragraph of Section 303.
Notwithstanding Section 301(2) herein and unless otherwise
expressly provided with respect to a series of Securities, the aggregate
principal amount of a series of Securities may be increased and additional
Securities of such series may be issued up to the maximum aggregate principal
amount authorized with respect to such series as increased.
22
<PAGE>
SECTION 302. Denominations.
The Securities of each series shall be issuable only in fully
registered form without coupons and only in such denominations as shall be
specified as contemplated by Section 301. In the absence of any such specified
denomination with respect to the Securities of any series, the Securities of
such series shall be issuable in denominations of $1,000 and any integral
multiple thereof.
SECTION 303. Execution, Authentication, Delivery and Dating.
The Securities shall be executed on behalf of the Company by
its Chairman of the Board, its President or one of its Vice Presidents, under
its corporate seal reproduced thereon attested by its Corporate Secretary or one
of its Assistant Corporate Secretaries. The signature of any of these officers
on the Securities may be manual or facsimile.
Securities 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
executed by the Company to the Trustee for authentication, together with a
Company Order for the authentication and delivery of such Securities, and the
Trustee in accordance with the Company Order shall authenticate and deliver such
Securities, provided, however, that in the case of Securities offered in a
Periodic Offering, the Trustee shall authenticate and deliver such Securities
from time to time in accordance with such other procedures (including, without
limitation, the receipt by the Trustee of oral or electronic instructions from
the Company or its duly authorized agents, promptly confirmed in writing)
acceptable to the Trustee as may be specified by or pursuant to a Company Order
delivered to the Trustee prior to the time of the first authentication of
Securities of such series. If the form or terms of the Securities of the series
have been established by or pursuant to one or more Board Resolutions as
permitted by Sections 201 and 301, in authenticating such Securities, and
accepting the additional responsibilities under this Indenture in relation to
such Securities, the Trustee shall be entitled to receive, and (subject to
Section 601) shall be fully protected in relying upon, an Opinion of Counsel
stating,
(1) if the form or forms of such Securities have been established
by or pursuant to Board Resolution as permitted by Section
201, that such form or forms have been established in
conformity with the provisions of this Indenture;
(2) if the terms of such Securities have been, or in the case of
Securities of a series offered in a Periodic Offering, will
be, established by or pursuant to Board Resolution as
permitted by Section 301, that such terms have been, or in the
case of Securities of a series offered in a Periodic Offering,
will be, established in conformity with the provisions of this
Indenture, subject, in the
23
<PAGE>
case of Securities of a series offered in a Periodic
Offering, to any conditions specified in such Opinion of
Counsel; and
(3) that such Securities, when authenticated and delivered by the
Trustee and issued by the Company in the manner and subject to
any conditions specified in such Opinion of Counsel, will
constitute valid and legally binding obligations of the
Company enforceable in accordance with their terms, subject to
bankruptcy, insolvency, fraudulent transfer, reorganization,
moratorium and similar laws of general applicability relating
to or affecting creditors' rights and to general equity
principles.
If such form or terms have been so established, the Trustee shall not be
required to authenticate such Securities if the issue of such Securities
pursuant to this Indenture will affect the Trustee's own rights, duties or
immunities under the Securities and this Indenture or otherwise in a manner
which is not reasonably acceptable to the Trustee.
Notwithstanding the provisions of Section 301 and of the
preceding paragraph, if all Securities of a series are not to be originally
issued at one time, it shall not be necessary to deliver the Officers'
Certificate otherwise required pursuant to Section 301 or the Company Order and
Opinion of Counsel otherwise required pursuant to such preceding paragraph at or
prior to the 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.
With respect to Securities of a series offered in a Periodic
Offering, the Trustee may rely, as to the authorization by the Company of any of
such Securities, the form and terms thereof and the legality, validity, binding
effect and enforceability thereof, upon the Opinion of Counsel and the other
documents delivered pursuant to Sections 201 and 301 and this Section, as
applicable, in connection with the first authentication of Securities of such
series.
Each Security shall be dated the date of its authentication.
No Security 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 executed by the Trustee by [manual] signature of an authorized officer,
and such certificate upon any Security shall be conclusive evidence, and the
only evidence, that such Security has been duly authenticated and delivered
hereunder. Notwithstanding the foregoing, if any Security shall have been
authenticated and delivered hereunder but never issued and sold by the Company,
and the Company shall deliver such Security to the Trustee for cancellation as
provided in Section 309, for all purposes of this Indenture such Security shall
be deemed never to have been authenticated and delivered hereunder and shall
never be entitled to the benefits of this Indenture.
SECTION 304. Temporary Securities.
Pending the preparation of definitive Securities of any
series, the Company may execute, and upon Company Order the Trustee shall
authenticate and deliver, temporary Securities which are printed, lithographed,
typewritten, mimeographed or otherwise produced,
24
<PAGE>
in any authorized denomination, substantially of the tenor of the definitive
Securities in lieu of which they are issued 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.
If temporary Securities of any series are issued, the Company
will cause definitive Securities of that series to be prepared without
unreasonable delay. After the preparation of definitive Securities of such
series, the temporary Securities of such series shall be exchangeable for
definitive Securities of such series upon surrender of the temporary Securities
of such series 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 series, the Company shall execute
and the Trustee shall authenticate and deliver in exchange therefor one or more
definitive Securities of the same series, of any authorized denominations and of
like tenor and aggregate principal amount. Until so exchanged, the temporary
Securities of any series shall in all respects be entitled to the same benefits
under this Indenture as definitive Securities of such series and tenor.
SECTION 305. Registration, Registration of Transfer and Exchange.
The Company shall cause to be kept at the Corporate Trust
Office of the Trustee a register (the register maintained in such office or in
any other office or agency of the Company in a Place of Payment 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 Securities and of transfers of Securities. The Trustee is hereby
appointed "Security Registrar" for the purpose of registering Securities and
transfers of Securities as herein provided.
Upon surrender for registration of transfer of any Security of
a series at the office or agency of the Company in a Place of Payment for that
series, the Company shall execute, and the Trustee shall authenticate and
deliver, in the name of the designated transferee or transferees, one or more
new Securities of the same series, of any authorized denominations and of like
tenor and aggregate principal amount.
At the option of the Holder, Securities of any series may be
exchanged for other Securities of the same series, of any authorized
denominations and of like tenor and aggregate principal amount, upon surrender
of the Securities to be exchanged at such office or agency. Whenever any
Securities are so surrendered for exchange, the Company shall execute, and the
Trustee shall authenticate and deliver, the Securities which the Holder making
the exchange is entitled to receive.
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 for exchange shall (if so required by the Company or the Trustee) be
duly endorsed, or be
25
<PAGE>
accompanied by a written instrument of transfer in form satisfactory to the
Company and the Security Registrar 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 1106 not involving any transfer.
If the Securities of any series (or of any series and
specified tenor) are to be redeemed, the Company shall not be required (A) to
issue, register the transfer of or exchange any Securities of that series (or of
that series and specified tenor, as the case may be) during a period beginning
at the opening of business 15 days before the day of the mailing of a notice of
redemption of any such Securities selected for redemption and ending at the
close of business on the day of such mailing, or (B) to register the transfer of
or exchange any Security so selected for redemption in whole or in part, except
the unredeemed portion of any Security being redeemed in part.
The provisions of Clauses (1), (2), (3) and (4) below shall
apply only to Global Securities:
(1) Each Global Security authenticated under this Indenture shall
be registered in the name of the Depositary designated for
such Global Security or a nominee thereof and delivered to
such Depositary or a nominee thereof or custodian therefor,
and each such Global Security shall constitute a single
Security for all purposes of this Indenture.
(2) Notwithstanding any other provision in this Indenture, no
Global Security may be exchanged in whole or in part for
Securities registered, and no transfer of a Global Security in
whole or in part may be registered, in the name of any Person
other than the Depositary for such Global Security or a
nominee thereof unless (A) such Depositary has notified the
Company that it is unwilling or unable to continue as
Depositary for such Global Security and a successor Depositary
has not been appointed by the Company within 90 days of
receipt by the Company of such notification or (B) there shall
exist such circumstances, if any, in addition to or in lieu of
the foregoing as have been specified for this purpose as
contemplated by Section 301. Notwithstanding the foregoing,
the Company may at any time in its sole discretion determine
that Securities issued in the form of a Global Security shall
no longer be represented in whole or in part by such Global
Security, and the Trustee, upon receipt of a Company Order
therefor, shall authenticate and deliver definitive Securities
in exchange in whole or in part for such Global Security.
(3) Subject to Clause (2) above, any exchange or transfer of a
Global Security for other Securities may be made in whole or
in part, and all Securities issued in exchange for or upon
transfer of a Global Security or any portion
26
<PAGE>
thereof shall be registered in such names as the Depositary
for such Global Security shall direct.
(4) Every Security authenticated and delivered upon registration
of transfer of, or in exchange for or in lieu of, a Global
Security or any portion thereof, whether pursuant to this
Section, Section 304, 306, 906 or 1106 or otherwise, shall be
authenticated and delivered in the form of, and shall be, a
Global Security, unless such Security is registered in the
name of a Person other than the Depositary for such Global
Security or a nominee thereof.
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 in a Global Security or for maintaining, supervising or reviewing any
records relating to such beneficial ownership interests.
SECTION 306. Mutilated, Destroyed, Lost and Stolen Securities.
If any mutilated Security is surrendered to the Trustee, the
Company shall execute and the Trustee shall authenticate and deliver in exchange
therefor a new Security of the same series and of like tenor and principal
amount and bearing a number not contemporaneously outstanding.
If there shall be delivered to the Company and the Trustee (i)
evidence to their satisfaction of the destruction, loss or theft of any Security
and (ii) 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 the Trustee that such Security has been acquired by a bona fide
purchaser, the Company shall execute and the Trustee shall authenticate and
deliver, in lieu of any such destroyed, lost or stolen Security, a new Security
of the same series and of like tenor and principal amount and bearing a number
not contemporaneously outstanding.
In case any such mutilated, destroyed, lost or stolen Security
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.
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 the fees and expenses of the Trustee) connected therewith.
Every new Security of any series issued pursuant to this
Section in lieu of any destroyed, lost or stolen Security shall constitute an
original additional contractual obligation of the Company, whether or not the
destroyed, lost or stolen Security shall be at any time enforceable by anyone,
and shall be entitled to all the benefits of this Indenture equally and
proportionately with any and all other Securities of that series duly issued
hereunder.
27
<PAGE>
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.
SECTION 307. Payment of Interest; Interest Rights Preserved.
Except as otherwise provided as contemplated by Section 301
with respect to any series of Securities, interest on any Security which is
payable, and is punctually paid or duly provided for, on any Interest Payment
Date shall 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.
Except as otherwise provided as contemplated by Section 301
with respect to any series of Securities, any interest on any Security of any
series that 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 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 Securities of such
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 in writing of the amount of Defaulted Interest
proposed to be paid on each Security of such series and the
date of the proposed payment, and at the same time the Company
shall deposit with the Trustee an amount of money equal to the
aggregate amount proposed to be paid in respect of such
Defaulted Interest or shall make arrangements satisfactory to
the Trustee for such deposit prior to the date of the proposed
payment, such money when deposited to be held in trust for the
benefit of the Persons entitled to such Defaulted Interest as
in this Clause provided. Thereupon the Trustee shall fix a
Special Record Date for the payment of such Defaulted Interest
which shall be not 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 the Trustee of the notice of the
proposed payment. The Trustee shall promptly notify the
Company of such Special Record Date and, in the name and at
the expense of the Company, shall cause notice of the proposed
payment of such Defaulted Interest and the Special Record Date
therefor to be given to each Holder of Securities of such
series in the manner set forth in Section 106, not less than
10 days prior to such Special Record Date. Notice of the
proposed payment of such Defaulted Interest and the Special
Record Date therefor having been so mailed, such Defaulted
Interest shall be paid to the Persons in whose names the
Securities of such series (or their respective Predecessor
Securities) are registered at the close of business on such
Special Record Date and shall no longer be payable pursuant to
the following Clause (2).
28
<PAGE>
(2) The Company may make payment of any Defaulted Interest on the
Securities of any series in any other lawful manner not
inconsistent with the requirements of any securities exchange
on which such Securities may be listed, and upon such notice
as may be required by such exchange, if, after notice given by
the Company to the Trustee of the proposed payment pursuant to
this Clause, such manner of payment shall be deemed
practicable by the Trustee.
Subject to the foregoing provisions of this Section, 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 Security for registration of
transfer, the Company, the Trustee and any agent of the Company or the Trustee
may treat the Person in whose name such Security is registered as the owner of
such Security for the purpose of receiving payment of principal of and any
premium and (subject to Section 307) any interest on such Security and for all
other purposes whatsoever, whether or not such Security be overdue, and neither
the Company, the Trustee nor any agent of the Company or the Trustee shall be
affected by notice to the contrary.
SECTION 309. Cancellation.
All Securities surrendered for payment, redemption,
registration of transfer or exchange or for credit against any sinking fund
payment shall, if surrendered to any Person other than the Trustee, be delivered
to the Trustee and shall be promptly canceled by it. The Company may at any time
deliver to the Trustee for cancellation any Securities previously authenticated
and delivered hereunder which the Company may have acquired in any manner
whatsoever, and may deliver to the Trustee (or to any other Person for delivery
to the Trustee) for cancellation any Securities previously authenticated
hereunder which the Company has not issued and sold, and all Securities so
delivered shall be promptly canceled by the Trustee. No Securities shall be
authenticated in lieu of or in exchange for any Securities canceled as provided
in this Section, except as expressly permitted by this Indenture. All canceled
Securities held by the Trustee shall be disposed of as directed by a Company
Order; provided, however, that the Trustee shall not be required to destroy such
canceled Securities.
SECTION 310. Computation of Interest.
Except as otherwise specified as contemplated by Section 301
for Securities of any series, interest on the Securities of each series shall be
computed on the basis of a 360-day year of twelve 30-day months.
29
<PAGE>
SECTION 311. CUSIP Numbers.
The Company in issuing the Securities may use "CUSIP" numbers
(if then generally in use), and, if so, the Trustee shall use "CUSIP" numbers in
notices of redemption as a convenience to Holders; provided that any such notice
may state that no representation is made as to the correctness of such numbers
either as printed on the Securities or as contained in any notice of a
redemption and that reliance may be placed only on the other identification
numbers printed on the Securities, and any such redemption shall not be affected
by any defect in or omission of such numbers.
30
<PAGE>
ARTICLE FOUR
SATISFACTION AND DISCHARGE
SECTION 401. Satisfaction and Discharge of Indenture.
This Indenture shall upon Company Request cease to be of
further effect (except as to any surviving rights of registration of transfer or
exchange of Securities herein expressly provided for), and the Trustee, at the
expense of the Company, shall execute proper instruments acknowledging
satisfaction and discharge of this Indenture, when
(1) either
(A) all Securities theretofore authenticated
and delivered (other than (i) Securities that have
been destroyed, lost or stolen and that have been
replaced or paid as provided in Section 306 and (ii)
Securities for whose payment money has theretofore
been deposited in trust or segregated and held in
trust by the Company and thereafter repaid to the
Company or discharged from such trust, as provided in
Section 1003) have been delivered to the Trustee for
cancellation; or
(B) all such Securities not theretofore
delivered to the Trustee for cancellation
(i) have become due and payable, or
(ii) will become due and payable at
their Stated Maturity within one year, or
(iii) are to be called for
redemption within one year under
arrangements satisfactory to the Trustee for
the giving of notice of redemption by the
Trustee in the name, and at the expense, of
the Company,
and the Company, in the case of (i), (ii) or (iii) above, has
deposited or caused to be deposited with the Trustee as funds
in trust for the purpose an amount sufficient to pay and
discharge the entire indebtedness on such Securities not
theretofore delivered to the Trustee for cancellation, for
principal and any premium and interest to the date of such
deposit (in the case of Securities that have become due and
payable) or to the Stated Maturity or Redemption Date, as the
case may be;
(2) the Company has paid or caused to be paid all
other sums payable hereunder by the Company; and
(3) the Company has delivered to the Trustee an
Officers' Certificate and an Opinion of Counsel, each stating
that all conditions precedent herein
31
<PAGE>
provided for relating to the satisfaction and discharge of
this Indenture have been complied with.
Notwithstanding the satisfaction and discharge of this
Indenture, the obligations of the Company to the Trustee under Section 607, the
obligations of the Company to any Authenticating Agent under Section 614 and, if
money shall have been deposited with the Trustee pursuant to subclause (B) of
clause (1) of this Section, the obligations of the Trustee under Section 402 and
the last paragraph of Section 1003 shall survive.
SECTION 402. Application of Trust Money.
Subject to the provisions of the last paragraph of Section
1003, all money deposited with the Trustee pursuant to Section 401 shall be held
in trust and applied by it, in accordance with the provisions of the Securities
and this Indenture, to the payment, either directly or through any Paying Agent
(including the Company acting as its own Paying Agent) as the Trustee may
determine, to the Persons entitled thereto, of the principal and any premium and
interest for whose payment such money has been deposited with the Trustee.
32
<PAGE>
ARTICLE FIVE
REMEDIES
SECTION 501. Events of Default.
"Event of Default", wherever used herein with respect to
Securities of any series, means any one of the following events (whatever the
reason for such Event of Default and whether it shall be voluntary or
involuntary or be effected by operation of law or pursuant to any judgment,
decree or order of any court or any order, rule or regulation of any
administrative or governmental body), unless it is inapplicable to a particular
series or is specifically deleted or modified in the Board Resolution (or action
taken pursuant thereto), Officers' Certificate or supplemental indenture under
which such series of Securities is issued or has been deleted or modified in an
indenture supplemental hereto:
(1) default in the payment of any interest upon any Security of
that series when it becomes due and payable, and continuance
of such default for a period of 60 days; or
(2) default in the payment of the principal of or any premium on
any Security of that series at its Maturity; or
(3) default in the making of any sinking fund payment, when and as
due by the terms of a Security of that series, and continuance
of such default for a period of 60 days; or
(4) default in the performance, or breach, of any covenant of the
Company in this Indenture (other than a covenant a default in
whose performance or whose breach is elsewhere in this Section
specifically dealt with or which has expressly been included
in this Indenture solely for the benefit of series of
Securities other than that series), and continuance of such
default or breach for a period of 90 days after there has been
given, by registered or certified mail, to the Company by the
Trustee or to the Company and the Trustee by the Holders of at
least 33% 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, unless the Trustee, or the
Trustee and the Holders of a principal amount of Securities of
such series not less than the principal amount of Securities
the Holders of which gave such notice, as the case may be,
shall agree in writing to an extension of such period prior to
its expiration; provided, however, that the Trustee, or the
Trustee and the Holders of such principal amount of Securities
of such series, as the case may be, shall be deemed to have
agreed to an extension of such period if corrective action is
initiated by the Company within such period and is being
diligently pursued; or
(5) the entry by a court having jurisdiction in the
premises of (A) a decree or order for relief in respect of the
Company in an involuntary case or
33
<PAGE>
proceeding under any applicable Federal or State bankruptcy,
insolvency, reorganization or other similar law or (B) a
decree or order adjudging the Company a bankrupt or insolvent,
or approving as properly filed a petition seeking
reorganization, arrangement, adjustment or composition of or
in respect of the Company under any applicable Federal or
State law, or appointing a custodian, receiver, liquidator,
assignee, trustee, sequestrator or other similar official of
the Company or of any substantial part of its property, or
ordering the winding up or liquidation of its affairs, and the
continuance of any such decree or order for relief or any such
other decree or order unstayed and in effect for a period of
90 consecutive days; or
(6) the commencement by the Company of a voluntary case or
proceeding under any applicable Federal or State bankruptcy,
insolvency, reorganization or other similar law or of any
other case or proceeding to be adjudicated a bankrupt or
insolvent, or the consent by it to the entry of a decree or
order for relief in respect of the Company in an involuntary
case or proceeding under any applicable Federal or State
bankruptcy, insolvency, reorganization or other similar law or
to the commencement of any bankruptcy or insolvency case or
proceeding against it, or the filing by it of a petition or
answer or consent seeking reorganization or relief under any
applicable Federal or State law, or the consent by it to the
filing of such petition or to the appointment of or taking
possession by a custodian, receiver, liquidator, assignee,
trustee, sequestrator or other similar official of the Company
or of any substantial part of its property, or the making by
it of an assignment for the benefit of creditors, or the
admission by it in writing of its inability to pay its debts
generally as they become due, or the authorization of any such
action by the Board of Directors; or
(7) any other Event of Default provided with respect to Securities
of that series.
SECTION 502. Acceleration of Maturity; Rescission and Annulment.
If an Event of Default with respect to Securities of any
series at the time Outstanding occurs and is continuing, then in every such case
the Trustee or the Holders of not less than 33% in principal amount of the
Outstanding Securities of that series may declare the principal amount of all
the Securities of that series (or, if any Securities of that series are Original
Issue Discount Securities, such portion of the principal amount of such
Securities as may be specified by the terms thereof) to be due and payable
immediately, by a notice in writing to the Company (and to the Trustee if given
by Holders), and upon any such declaration such principal amount (or specified
amount) shall become immediately due and payable.
At any time after such a declaration of acceleration with
respect to Securities of any series has been made and before the Trustee has
obtained a judgment or decree for payment of the money due as hereinafter in
this Article provided, such declaration and its consequences shall, without
further act, be deemed to have been rescinded and annulled, if
34
<PAGE>
(1) the Company has paid or deposited with the Trustee a
sum sufficient to pay
(A) all overdue interest on all Securities of that
series,
(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 any interest
thereon at the rate or rates prescribed therefor in such
Securities,
(C) to the extent that payment of such interest is
lawful, interest upon overdue interest at the rate or rates
prescribed therefor in such Securities, and
(D) all sums paid or advanced by the Trustee
hereunder and the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and
counsel;
and
(2) all Events of Default with respect to Securities of
that series, other than the non-payment of the principal of
Securities of that series which have become due solely by such
declaration of 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 a default pursuant to Section
501(1) or 501(2) has occurred with respect to the Securities of any series, the
Company will, upon demand of the Trustee, pay to it, for the benefit of the
Holders of such Securities, the whole amount then due and payable on such
Securities for principal and any premium and interest and, to the extent that
payment of such interest shall be legally enforceable, interest on any overdue
principal and premium and on any overdue interest, at the rate or rates
prescribed therefor in such 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
the Trustee, its agents and counsel.
If an Event of Default with respect to Securities of any
series occurs and is continuing, the Trustee may in its discretion proceed to
protect and enforce its rights and the rights of the Holders of Securities of
such series by such appropriate judicial proceedings as the 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.
35
<PAGE>
SECTION 504. Trustee May File Proofs of Claim.
In case of any judicial proceeding relative to the Company (or
any other obligor upon the Securities), its property or its creditors, the
Trustee shall be entitled and empowered, by intervention in such proceeding or
otherwise, to take any and all actions authorized under the Trust Indenture Act
in order to have claims of the Holders and the Trustee allowed in any such
proceeding. In particular, the Trustee shall be authorized to collect and
receive any moneys or other property payable or deliverable on any such claims
and to distribute the same; and any custodian, receiver, assignee, trustee,
liquidator, sequestrator or other similar official in any such judicial
proceeding is hereby authorized by each Holder to make such payments to the
Trustee and, in the event that the Trustee shall consent to the making of such
payments directly to the Holders, to pay to the Trustee any amount due it for
the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel, and any other amounts due the Trustee under
Section 607.
No provision of this Indenture shall be deemed to authorize
the Trustee to authorize or consent to or accept or adopt on behalf of any
Holder any plan of reorganization, arrangement, adjustment or composition
affecting the Securities or the rights of any Holder thereof or to authorize the
Trustee to vote in respect of the claim of any Holder in any such proceeding;
provided, however, that the Trustee may, on behalf of the Holders, vote for the
election of a trustee in bankruptcy or similar official and be a member of a
creditors' or other similar committee.
SECTION 505. Trustee May Enforce Claims Without Possession of Securities.
All rights of action and claims under this Indenture or the
Securities may be prosecuted and enforced by the Trustee without the possession
of any of the Securities or the production thereof in any proceeding relating
thereto, and any such proceeding instituted by the Trustee shall be brought in
its own name as trustee of an express trust, and any recovery of judgment shall,
after provision for the payment of the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, be for the
ratable benefit of the Holders of the Securities in respect of which such
judgment has been recovered.
SECTION 506. Application of Money Collected.
Any money collected by the Trustee pursuant to this Article
shall be applied in the following order, at the date or dates fixed by the
Trustee and, in case of the distribution of such money on account of principal
or any premium or interest, upon presentation of the Securities 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 the Trustee under
Section 607;
SECOND: To the payment of the amounts then due and unpaid for
principal of and any premium and interest on the Securities in
respect of which or for the benefit of which such money has
been collected, ratably, without preference or
36
<PAGE>
priority of any kind, according to the amounts due and payable
on such Securities for principal and any premium and interest,
respectively; and
THIRD: To the payment of the balance, if any, to the Company
or any other Person or Persons legally entitled thereto.
SECTION 507. Limitation on Suits.
No Holder of any Security of any series 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) such Holder has previously given written notice
to the Trustee of a continuing Event of Default with respect
to the Securities of that series;
(2) the Holders of not less than a majority in
principal amount of the Outstanding Securities of that series
shall have made written request to the Trustee 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 the
Trustee reasonable indemnity against the costs, expenses and
liabilities to be incurred in compliance with such request;
(4) the 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 the 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 of such Holders 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 of
such Holders, or to obtain or to seek to obtain priority or preference over any
other of such Holders or to enforce any right under this Indenture, except in
the manner herein provided and for the equal and ratable benefit of all of such
Holders.
SECTION 508. Unconditional Right of Holders to Receive Principal, Premium
and Interest.
Notwithstanding any other provision in this Indenture, the
Holder of any Security shall have the right, which is absolute and
unconditional, to receive payment of the principal of and any premium and
(subject to Section 307) interest on such Security on the respective Stated
Maturities expressed in such Security (or, in the case of redemption, on the
Redemption Date) and to institute suit for the enforcement of any such payment,
and such rights shall not be impaired without the consent of such Holder.
37
<PAGE>
SECTION 509. Restoration of Rights and Remedies.
If the Trustee or any Holder 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
the Trustee or to such Holder, then and in every such case, subject to any
determination in such proceeding, the Company, the Trustee and the Holders shall
be restored severally and respectively to their former positions hereunder and
thereafter all rights and remedies of the Trustee and the 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 in the last
paragraph of Section 306, no right or remedy herein conferred upon or reserved
to the Trustee or to the Holders 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 or of any Holder of any
Securities to exercise any right or remedy accruing upon any Event of Default
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 the Trustee or to the Holders may be exercised from time to
time, and as often as may be deemed expedient, by the 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 series shall have the right to direct the time,
method and place of conducting any proceeding for any remedy available to the
Trustee, or exercising any trust or power conferred on the Trustee, with respect
to the Securities of such series; provided that
(1) such direction shall not be in conflict with any
rule of law or with this Indenture,
(2) the Trustee may take any other action deemed
proper by the Trustee which is not inconsistent with such
direction, and
(3) subject to the provisions of Section 601, the
Trustee shall have the right to decline to follow any such
direction if the Trustee in good faith shall, by a Responsible
Officer or Officers of the Trustee, determine that the
proceeding so directed would involve the Trustee in personal
liability.
38
<PAGE>
SECTION 513. Waiver of Past Defaults.
The Holders of not less than a majority in principal amount of
the Outstanding Securities of any series may on behalf of the Holders of all the
Securities of such series waive any past default hereunder with respect to such
series and its consequences, except a default
(1) in the payment of the principal of or any premium or interest
on any Security of such series, or
(2) in respect of a covenant or provision hereof which under
Article Nine cannot be modified or amended without the consent
of the Holder of each Outstanding Security of such 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.
In any suit for the enforcement of any right or remedy under
this Indenture, or in any suit against the Trustee for any action taken,
suffered or omitted by it as Trustee, a court may require any party litigant in
such suit to file an undertaking to pay the costs of such suit, and may assess
reasonable costs against any such party litigant, in the manner and to the
extent provided in the Trust Indenture Act; provided that neither this Section
nor the Trust Indenture Act shall be deemed to authorize any court to require
such an undertaking or to make such an assessment in any suit instituted by the
Company or the Trustee.
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, but will suffer and permit
the execution of every such power as though no such law had been enacted.
39
<PAGE>
ARTICLE SIX
THE TRUSTEE
SECTION 601. Certain Duties and Responsibilities.
The duties and responsibilities of the Trustee shall be as
provided by the Trust Indenture Act. Notwithstanding the foregoing, no provision
of this Indenture shall require the Trustee 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.
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 shall be subject to the provisions of this Section.
SECTION 602. Notice of Defaults.
If a default occurs hereunder with respect to Securities of
any series, the Trustee shall give the Holders of Securities of such series
notice of such default as and to the extent provided by the Trust Indenture Act;
provided, however, that in the case of any default of the character specified in
Section 501(4) with respect to Securities of such series, no such notice to
Holders shall be given until at least 30 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 such series.
SECTION 603. Certain Rights of Trustee.
Subject to the provisions of Section 601:
(1) the Trustee may rely and shall be protected in acting or
refraining from acting upon any resolution, certificate,
statement, instrument, opinion, report, notice, request,
direction, consent, order, bond, debenture, note, other
evidence of indebtedness or other paper or document believed
by it to be genuine and to have been signed or presented by
the proper party or parties;
(2) any request or direction of the Company mentioned herein shall
be sufficiently evidenced by a Company Request or Company
Order or as otherwise expressly provided herein, and any
resolution of the Board of Directors shall be sufficiently
evidenced by a Board Resolution;
(3) whenever in the administration of this Indenture the Trustee
shall deem it desirable that a matter be proved or established
prior to taking, suffering or omitting any action hereunder,
the Trustee (unless other evidence be herein specifically
prescribed) may, in the absence of bad faith on its part, rely
upon an Officers' Certificate;
40
<PAGE>
(4) the Trustee may consult with counsel of its selection and the
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;
(5) the 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 pursuant to this
Indenture, unless such Holders shall have offered to the
Trustee reasonable security or indemnity against the costs,
expenses and liabilities which might be incurred by it in
compliance with such request or direction;
(6) the Trustee shall not be bound to make any investigation into
the facts or matters stated in any resolution, certificate,
statement, instrument, opinion, report, notice, request,
direction, consent, order, bond, debenture, note, other
evidence of indebtedness or other paper or document, but the
Trustee, in its discretion, may make such further inquiry or
investigation into such facts or matters as it may see fit,
and, if the Trustee shall determine to make such further
inquiry or investigation, it shall be entitled, at reasonable
times previously notified to the Company, to examine the
relevant books, records and premises of the Company,
personally or by agent or attorney; and
(7) the Trustee may execute any of the trusts or powers hereunder
or perform any duties hereunder either directly or by or
through agents or attorneys and the Trustee 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, shall be taken as the statements
of the Company, and neither the Trustee nor any Authenticating Agent assumes any
responsibility for their correctness. The Trustee makes no representations as to
the validity or sufficiency of this Indenture or of the Securities. Neither the
Trustee 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, any Authenticating Agent, any Paying Agent, any
Security Registrar or any other agent of the Company, 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 Trustee, Authenticating Agent, Paying Agent,
Security Registrar or such other agent.
41
<PAGE>
SECTION 606. Money Held in Trust.
Money held by the Trustee in trust hereunder need not be
segregated from other funds except to the extent required by law. The Trustee
shall be under no liability for interest on any money received by it hereunder
except as otherwise agreed in writing with the Company.
SECTION 607. Compensation and Reimbursement.
The Company agrees
(1) to pay to the Trustee from time to time such compensation as
shall be agreed to in writing between the Company and the
Trustee 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 upon its request for all reasonable expenses,
disbursements and advances incurred or made by the 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 negligence or bad
faith; and
(3) to indemnify the Trustee for, and to hold it harmless against,
any loss, liability or expense incurred without negligence or
bad faith on its part, arising out of or in connection with
the acceptance or administration of the trust or trusts
hereunder, including the costs and expenses of defending
itself against any claim or liability in connection with the
exercise or performance of any of its powers or duties
hereunder.
The Trustee shall have a lien prior to the Securities upon all
property and funds held by it hereunder for any amount owing it or any
predecessor Trustee pursuant to this Section 607, except with respect to funds
held in trust for the benefit of the Holders of particular Securities.
Without limiting any rights available to the Trustee under
applicable law, when the Trustee incurs expenses or renders services in
connection with an Event of Default specified in Section 501(5) or Section
501(6), the expenses (including the reasonable charges and expenses of its
counsel) and the compensation for the services are intended to constitute
expenses of administration under any applicable Federal or State bankruptcy,
insolvency or other similar law.
The provisions of this Section shall survive the satisfaction
and discharge of this Indenture.
42
<PAGE>
SECTION 608. Conflicting Interests.
If the Trustee has or shall acquire a conflicting interest
within the meaning of the Trust Indenture Act, the Trustee shall either
eliminate such interest or resign, to the extent and in the manner provided by,
and subject to the provisions of, the Trust Indenture Act and this Indenture. To
the extent permitted by such Act, the Trustee shall not be deemed to have a
conflicting interest by virtue of being a trustee under this Indenture with
respect to Securities of more than one series, the Trust Indenture dated as of
November 1, 1985 between Industrial Development Authority of the City of
Chesapeake and Chemical Bank, Trustee, under which $30,000,000 Industrial
Development Authority of the City of Chesapeake Money Market Municipals(TM)
Pollution Control Revenue Bonds (Virginia Electric and Power Company Project),
Series 1985 have been issued, the payment of which Bonds are supported by a
Promissory Note of the Company dated as of November 13, 1985 and assigned to
said Trustee; the Trust Indenture dated as of November 1, 1985 between
Industrial Development Authority of the County of Chesterfield (Virginia) and
Chemical Bank, Trustee, under which $40,000,000 Industrial Development Authority
of the County of Chesterfield (Virginia) Money Market Municipals(TM) Pollution
Control Revenue Bonds (Virginia Electric and Power Company Project), Series 1985
have been issued, the payment of which Bonds are supported by a Promissory Note
of the Company dated as of November 13, 1985 and assigned to said Trustee; the
Trust Indenture dated as of November 1, 1985 between Industrial Development
Authority of York County, Virginia and Chemical Bank, Trustee, under which
$70,000,000 Industrial Development Authority of York County, Virginia Money
Market Municipals(TM) Pollution Control Revenue Bonds (Virginia Electric and
Power Company Project), Series 1985 have been issued, the payment of which Bonds
are supported by a Promissory Note of the Company dated as of November 21, 1985
and assigned to said Trustee; the Trust Indenture dated as of December 1, 1985
between Industrial Development Authority of the Town of Louisa, Virginia and
Chemical Bank, Trustee, under which $62,000,000 Industrial Development Authority
of the Town of Louisa, Virginia Money Market Municipals(TM) Pollution Control
Revenue Bonds (Virginia Electric and Power Company Project), Series 1985 have
been issued, the payment of which Bonds are supported by a Promissory Note of
the Company dated as of December 18, 1985 and assigned to said Trustee; the
Trust Indenture dated as of August 1, 1986 between Industrial Development
Authority of the County of Prince William (Virginia) and Chemical Bank, Trustee,
under which $11,200,000 Industrial Development Authority of the County of Prince
Wiulliam (Virginia) Money Market Municipals(TM) Pollution Control Revenue Bonds
(Virginia Electric and Power Company Project), Series 1986 have been issued, the
payment of which Bonds is supported by a Promissory Note of the Company dated as
of October 8, 1986 and assigned to said Trustee; the Trust Indenture dated as of
August 1, 1986 between The County Commission of Grant County, West Virginia and
Chemical Bank, Trustee, under which $7,400,000 The County Commission of Grant
Country, West Virginia Money Market Municipals(TM) Pollution Control Revenue
Bonds (Virginia Electric and Power Company Project), Series 1986 have been
issued, the payment of which Bonds is supported by a Promissory Note of the
Company dated as of November 20, 1986 and assigned to said Trustee; the Trust
Indenture dated as of June 1, 1987 between Industrial Development Authority of
the County of Chesterfield (Virginia) and Chemical Bank, Trustee, under which
$40,000,000 Industrial Development Authority of the County of Chesterfield
(Virginia) Money Market Municipals(TM) Pollution Control Revenue Bonds (Virginia
Electric and Power Company Project), Series 1987A have been issued, the payment
of which Bonds is supported by a Promissory Note of the Company dated as of June
4, 1987 and assigned
43
<PAGE>
to said Trustee; the Trust Indenture dated as of June 1, 1987 between Industrial
Development Authority of the County of Chesterfield (Virginia) and Chemical
Bank, Trustee, under which $35,000,000 Industrial Development Authority of the
County of Chesterfield (Virginia) Money Market Municipals(TM) Pollution Control
Revenue Bonds (Virginia Electric and Power Company Project), Series 1987B have
been issued, the payment of which Bonds is supported by a Promissory Note of the
Company dated as of June 4, 1987 and assigned to said Trustee; the Trust
Indenture dated as of September 1, 1987 between Industrial Development Authority
of the County of Chesterfield (Virginia) and Chemical Bank, Trustee, under which
$15,000,000 Industrial Development Authority of the County of Chesterfield
(Virginia) Money Market Municipals(TM) Pollution Control Revenue Bonds (Virginia
Electric and Power Company Project), Series 1987C have been issued, the payment
of which Bonds is supported by a Promissory Note of the Company dated as of
September 10, 1987 and assigned to said Trustee; the Trust Indenture dated as of
December 1, 1987 between Industrial Development Authority of the Town of Louisa,
Virginia and Chemical Bank, Trustee, under which $18,000,000 Industrial
Development Authority of the Town of Louisa, Virginia, Money Market
Municipals(TM) Pollution Control Revenue Bonds (Virginia Electric and Power
Company Project), Series 1987 have been issued, the payment of which Bonds is
supported by a Promissory Note of the Company dated as of December 9, 1987 and
assigned to said Trustee; the Trust Indenture dated as of November 1, 1992
between Industrial Development Authority of Halifax County, Virginia and
Chemical Bank, Trustee, under which $56,000,000 Industrial Development Authority
of Halifax County, Virginia Money Market Municipals(TM) Pollution Control
Revenue Bonds (Virginia Electric and Power Company Project) Series 1992 have
been issued, the payment of which Bonds is supported by a Promissory Note of the
Company dated as of ________________, 1992 and assigned to said Trustee; the
Trust Indenture dated as of January 1, 1994 between Industrial Development
Authority of the Town of Louisa, Virginia and Chemical Bank, Trustee, under
which $19,500,000 Industrial Development Authority of the Town of Louisa,
Virginia Pollution Control Revenue Bonds (Virginia Electric and Power Company
Project) Series 1994 have been issued, the payment of which Bonds is supported
by a Promissory Note of the Company dated as of ____________, 1994 and assigned
to said Trustee; the Trust Indenture dated as of March 1, 1994 between The
County Commission of Grant County, West Virginia and Chemical Bank, Trustee,
under which $19,000,000 The County Commission of Grant County, West Virginia
Variable Rate Pollution Control Revenue Bonds (Virginia Electric and Power
Company Project) Series 1994 have been issued, the payment of which Bonds is
supported by a Promissory Note of the Company dated as of _________, 1994 and
assigned to said Trustee; the Trust Indenture dated as of February 1, 1996
between The County Commission of Grant County, West Virginia and Chemical Bank,
Trustee, under which $24,500,000 The County Commission of Grant County, West
Virginia Variable Rate Solid Waste Disposal Revenue Bonds (Virginia Electric and
Power Company Project) Series 1996 have been issued, the payment of which Bonds
is supported by a Promissory Note of the Company dated as of ________________,
1996 and assigned to said Trustee; the Indenture of Trust dated as of April 1,
1997 between Industrial Development Authority of the Town of Louisa, Virginia
and The Chase Manhattan Bank, Trustee, under which $10,000,000 Industrial
Development Authority of the Town of Louisa, Virginia Solid Waste and Sewage
Disposal Revenue Bonds (Virginia Electric and Power Company Project) Series
1997A have been issued, the payment of which Bonds is supported by a Promissory
Note of the Company dated as of April 8, 1997 and assigned to said Trustee; the
Indenture, dated as of June 1, 1986, between the Company and Chemical Bank,
Trustee, under which the Company's Medium-Term Notes issued and the Indenture
dated as of April 1, 1988,
44
<PAGE>
between the Company and Chemical Bank, Trustee, under which the Company's
Medium-Term Notes have been issued.
SECTION 609. Corporate Trustee Required; Eligibility.
There shall at all times be one (and only one) Trustee
hereunder with respect to the Securities of each series, which may be Trustee
hereunder for Securities of one or more other series. Each Trustee shall be a
Person that is eligible pursuant to the Trust Indenture Act to act as such and
has a combined capital and surplus of at least $50,000,000. If any such Person
publishes reports of condition at least annually, pursuant to law or to the
requirements of its supervising or examining authority, then for the purposes of
this Section and to the extent permitted by the Trust Indenture Act, the
combined capital and surplus of such Person 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 the Trustee with respect to the Securities of any
series shall cease to be eligible in accordance with the provisions of this
Section, it shall resign immediately in the manner and with the effect
hereinafter specified in this Article.
SECTION 610. Resignation and Removal; Appointment of Successor.
No resignation or removal of the Trustee 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.
The Trustee may resign at any time with respect to the
Securities of one or more 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 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.
The Trustee may be removed at any time with respect to the
Securities of any series by Act of the Holders of a majority in principal amount
of the Outstanding Securities of such series, delivered to the Trustee and to
the Company.
If at any time:
(1) the Trustee shall fail to comply with Section 608
after written request therefor by the Company or by any Holder
who has been a bona fide Holder of a Security for at least six
months, or
(2) the 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) the Trustee shall become incapable of acting or
shall be adjudged a bankrupt or insolvent or a receiver of the
Trustee or of its property shall be appointed or any public
officer shall take charge or control of the Trustee or of
45
<PAGE>
its property or affairs for the purpose of rehabilitation,
conservation or liquidation,
then, in any such case, (A) the Company by a Board Resolution may remove the
Trustee with respect to all Securities, or (B) subject to Section 514, any
Holder who has been a bona fide Holder of a Security 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 the Trustee with respect to all
Securities and the appointment of a successor Trustee or Trustees.
If the Trustee shall resign, be removed or become incapable of
acting, or if a vacancy shall occur in the office of Trustee for any cause, with
respect to the Securities of one or more series, the Company, by a Board
Resolution, shall promptly appoint a successor Trustee or Trustees with respect
to the Securities of that or those series (it being understood that any such
successor Trustee may be appointed with respect to the Securities of one or more
or all of such series and that at any time there shall be only one Trustee with
respect to the Securities of any particular 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 any 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 with respect to the Securities of such series
and to that extent supersede the successor Trustee appointed by the Company. If
no successor Trustee with respect to the Securities of any series shall have
been so appointed by the Company or the Holders and accepted appointment in the
manner required by Section 611, 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.
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
to all Holders of Securities of such series in the manner provided in Section
106. Each notice shall include the name of the successor Trustee with respect to
the Securities of such series and the address of its Corporate Trust Office.
SECTION 611. Acceptance of Appointment by Successor.
In case of the appointment hereunder of a successor Trustee
with respect to all Securities, every such successor Trustee so appointed shall
execute, acknowledge and deliver to the Company and to the retiring Trustee an
instrument accepting such appointment, and thereupon the resignation or removal
of the retiring Trustee shall become effective and such successor Trustee,
without any further act, deed or conveyance, shall become vested with all the
rights, powers, trusts and duties of the retiring Trustee; but, on the request
of the Company or the successor Trustee, such retiring Trustee shall, upon
payment of its charges, execute and deliver an instrument transferring to such
successor Trustee all the rights, powers and trusts of
46
<PAGE>
the retiring Trustee and shall duly assign, transfer and deliver to such
successor Trustee all property and money held by such retiring Trustee
hereunder.
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 that each such Trustee shall be trustee of a trust or trusts
hereunder separate and apart from any trust or trusts hereunder administered by
any other such Trustee; and 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.
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 the first or second preceding paragraph, as the case may be.
No successor Trustee shall accept its appointment unless at
the time of such acceptance such successor Trustee shall be qualified and
eligible under this Article.
SECTION 612. Merger, Conversion, Consolidation or Succession to Business.
Any corporation into which the Trustee may be merged or
converted or with which it may be consolidated, or any corporation resulting
from any merger, conversion or consolidation to which the Trustee shall be a
party, or any corporation succeeding to all or substantially all the corporate
trust business of the Trustee, shall be the successor of the 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 then in office, any successor
by merger, conversion or consolidation to such authenticating
47
<PAGE>
Trustee may adopt such authentication and deliver the Securities so
authenticated with the same effect as if such successor Trustee had itself
authenticated such Securities.
SECTION 613. Preferential Collection of Claims Against Company.
If and when the Trustee shall be or become a creditor of the
Company (or any other obligor upon the Securities), the Trustee shall be subject
to the provisions of the Trust Indenture Act regarding the collection of claims
against the Company (or any such other obligor).
SECTION 614. Appointment of Authenticating Agent.
The Trustee may appoint an Authenticating Agent or Agents
acceptable to the Company with respect to one or more series of Securities which
shall be authorized to act on behalf of the Trustee to authenticate Securities
of such series issued upon exchange, registration of transfer or partial
redemption thereof or pursuant to Section 306, and Securities so authenticated
shall be entitled to the benefits of this Indenture and shall be valid and
obligatory for all purposes as if authenticated by the Trustee hereunder.
Wherever reference is made in this Indenture to the authentication and delivery
of Securities by the Trustee or the Trustee's certificate of authentication,
such reference shall be deemed to include authentication and delivery on behalf
of the Trustee by an Authenticating Agent and a certificate of authentication
executed on behalf of the Trustee by an Authenticating Agent. Each
Authenticating Agent shall be acceptable to the Company and shall at all times
be 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 act as Authenticating Agent, having a combined capital and
surplus of not less than $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 to the requirements of said
supervising or examining authority, then for the purposes of this Section, the
combined capital and surplus of such Authenticating Agent 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 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 an Authenticating Agent 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
Authenticating Agent shall be a party, or any corporation succeeding to the
corporate agency or corporate trust business of an Authenticating Agent, shall
continue to be an Authenticating Agent, provided such corporation shall be
otherwise eligible under this Section, without the execution or filing of any
paper or any further act on the part of the Trustee or the Authenticating Agent.
An Authenticating Agent may resign at any time by giving
written notice thereof to the Trustee and to the Company. The Trustee may at any
time terminate the agency of an Authenticating Agent by giving written notice
thereof to such Authenticating Agent and to the Company. Upon receiving such a
notice of resignation or upon such a termination, or in case at any time such
Authenticating Agent shall cease to be eligible in accordance with the
48
<PAGE>
provisions of this Section, the Trustee may appoint a successor Authenticating
Agent which shall be acceptable to the Company and shall give notice of such
appointment in the manner provided in Section 106 to all Holders of Securities
of the series with respect to which such Authenticating Agent will serve. 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 Company agrees to pay to each Authenticating Agent from
time to time reasonable compensation for its services under this Section.
If an appointment with respect to one or more series is made
pursuant to this Section, the Securities of such series may have endorsed
thereon, in addition to the Trustee's certificate of authentication, an
alternative certificate of authentication in the following form:
This is one of the Securities of the series designated therein
referred to in the within-mentioned Indenture.
THE CHASE MANHATTAN BANK,
As Trustee
By_______________________________________
As Authenticating Agent
By_______________________________________
Authorized Officer
49
<PAGE>
ARTICLE SEVEN
HOLDERS' LISTS AND REPORTS BY TRUSTEE AND COMPANY
SECTION 701. Company to Furnish Trustee Names and Addresses of Holders.
The Company will furnish or cause to be furnished to the
Trustee
(1) semi-annually, not later than June 1 and December
1, in each year, a list, in such form as the Trustee may
reasonably require, containing all the information in the
possession or control of the Company, or any of its Paying
Agents other than the Trustee, as to the names and addresses
of the Holders of Securities as of the preceding May 15 or
November 15, as the case may be, and
(2) at such other times as the Trustee may request in
writing, within 30 days after the receipt by the Company of
any such request, a list of similar form and content as of a
date not more than 15 days prior to the time such list is
furnished;
excluding from any such list names and addresses received by the Trustee in its
capacity as Security Registrar.
SECTION 702. Preservation of Information; Communications to Holders.
The Trustee shall preserve, in as current a form as is
reasonably practicable, the names and addresses of Holders contained in the most
recent list furnished to the Trustee as provided in Section 701 and the names
and addresses of Holders received by the Trustee in its capacity as Security
Registrar. The Trustee may destroy any list furnished to it as provided in
Section 701 upon receipt of a new list so furnished.
The rights of Holders to communicate with other Holders with
respect to their rights under this Indenture or under the Securities, and the
corresponding rights and privileges of the Trustee, shall be as provided by the
Trust Indenture Act.
Every Holder of Securities, by receiving and holding the same,
agrees with the Company and the Trustee that neither the Company nor the Trustee
nor any agent of either of them shall be held accountable by reason of any
disclosure of information as to names and addresses of Holders made pursuant to
the Trust Indenture Act.
SECTION 703. Reports by Trustee.
The Trustee shall transmit to Holders such reports concerning
the Trustee and its actions under this Indenture as may be required pursuant to
the Trust Indenture Act at the times and in the manner provided pursuant
thereto. If required by Section 313(a) of the Trust Indenture Act, the Trustee
shall, within 60 days after each May 15 following the date of this Indenture,
deliver to Holders a brief report, dated as of such May 15, which complies with
the provisions of such Section 313(a).
50
<PAGE>
A copy of each such report shall, at the time of such
transmission to Holders, be filed by the Trustee with each stock exchange upon
which any Securities are listed, with the Commission and with the Company. The
Company will promptly notify the Trustee when any Securities are listed on any
stock exchange.
SECTION 704. Reports by Company.
The Company shall file with the Trustee and the Commission,
and transmit to Holders, such information, documents and other reports, and such
summaries thereof, as may be required pursuant to the Trust Indenture Act at the
times and in the manner provided pursuant to such Act; provided that any such
information, documents or reports required to be filed with the Commission
pursuant to Section 13 or 15(d) of the Exchange Act shall be filed with the
Trustee within 15 days after the same is so required to be filed with the
Commission.
51
<PAGE>
ARTICLE EIGHT
CONSOLIDATION, MERGER, CONVEYANCE OR TRANSFER
SECTION 801. Company May Consolidate, Etc., on Certain Terms.
Nothing contained in this Indenture or in any of the
Securities shall prevent any consolidation of the Company with, or merger of the
Company into any other Person or Persons (whether or not affiliated with the
Company), or successive consolidations or mergers in which the Company or its
successor or successors shall be a party or parties, or shall prevent any
conveyance or transfer of the properties and assets of the Company as an
entirety or substantially as an entirety to any other Person (whether or not
affiliated with the Company) lawfully entitled to acquire the same; provided,
however, and the Company hereby covenants and agrees, that upon any such
consolidation, merger, conveyance or transfer, (i) the due and punctual payment
of the principal of and premium, if any, and interest on all of the Securities,
according to their tenor, and the due and punctual performance and observance of
all of the covenants and conditions of this Indenture to be performed by the
Company, shall be expressly assumed, by indenture supplemental hereto, in form
reasonably satisfactory to the Trustee, executed and delivered to the Trustee by
the Person formed by such consolidation, or into which the Company shall have
been merged, or by the Person which shall have acquired such properties and
assets, and (ii) the Company shall deliver to the Trustee an Officers'
Certificate and an Opinion of Counsel, each stating that such consolidation,
merger, conveyance or transfer and, if a supplemental indenture is required in
connection with such transaction, 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 Substituted.
Upon any consolidation of the Company with, or merger of the
Company into, any other Person or any conveyance or transfer of the properties
and assets of the Company as an entirety or substantially as an entirety in
accordance with Section 801, the successor Person 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 Person had been named as the Company herein, and thereafter the
predecessor Person shall be relieved of all obligations and covenants under this
Indenture and the Securities.
52
<PAGE>
ARTICLE NINE
SUPPLEMENTAL INDENTURES
SECTION 901. Supplemental Indentures Without Consent of Holders.
Without the consent of any Holders, the Company, when
authorized by a Board Resolution, and the Trustee, at any time and from time to
time, may enter into one or more indentures supplemental hereto, in form
reasonably satisfactory to the Trustee, for any of the following purposes:
(1) to evidence the succession of another Person 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 series of Securities (and if such
covenants are to be for the benefit of less than all series of
Securities, stating that such covenants are expressly being
included solely for the benefit of such series) or to
surrender any right or power herein conferred upon the
Company; or
(3) to add any additional Events of Default for the benefit of the
Holders of all or any series of Securities (and if such
additional Events of Default are to be for the benefit of less
than all series of Securities, stating that such additional
Events of Default are expressly being included solely for the
benefit of such series); or
(4) to add to or change any of the provisions of this Indenture in
order to change or eliminate any restrictions on the payment
of principal (or premium, if any) on the Securities or to
permit the issuance of Securities in uncertificated form,
provided, however, that no such action shall adversely affect
the interests of the Holders of Securities of any series in
any material respect; or
(5) to add to, change or eliminate any of the provisions of this
Indenture in respect of one or more series of Securities;
provided, however, that any such addition, change or
elimination (A) shall neither (i) apply to any Security of any
series created prior to the execution of such supplemental
indenture and entitled to the benefit of such provision nor
(ii) modify the rights of the Holder of any such Security with
respect to such provision or (B) shall become effective only
when there is no such Security Outstanding; or
(6) to secure the Securities; or
(7) to establish the form or terms of Securities of
any series as permitted by Sections 201 and 301; or
53
<PAGE>
(8) 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, or
(9) to cure any ambiguity, to correct or supplement any provision
herein which may be defective or inconsistent with any other
provision herein, or to make any other provisions with respect
to matters or questions arising under this Indenture; provided
that such action pursuant to this Clause (9) shall not
adversely affect the interests of the Holders of Securities of
any series in any material respect.
SECTION 902. Supplemental Indentures With Consent of Holders.
With the consent of the Holders of not less than a majority in
principal amount of the Outstanding Securities of each series affected by such
supplemental indenture, by Act of said Holders delivered to the Company and the
Trustee, the Company, when authorized by a Board Resolution, and the Trustee 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 any supplemental indenture with respect to
Securities of such series, or modifying in any manner the rights of the Holders
of Securities of such series under this Indenture; 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
instalment of principal of or interest on, any Security, or
reduce the principal amount thereof or the rate of interest
thereon or any premium payable upon the redemption thereof, or
reduce the amount of the principal of an Original Issue
Discount Security or any other Security which would be due and
payable upon a declaration of acceleration of the Maturity
thereof pursuant to Section 502, or change any Place of
Payment where, [or the coin or currency in which, any Security
or any premium 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
(2) reduce the percentage in principal amount of the Outstanding
Securities of any 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, Section 513 or
Section 1006, 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 Outstanding Security affected thereby; provided, however,
that
54
<PAGE>
this clause shall not be deemed to require the consent of any
Holder with respect to changes in the references to "the
Trustee" and concomitant changes in this Section and Section
1006, or the deletion of this proviso, in accordance with the
requirements of Sections 611 and 901(8).
A supplemental indenture that changes or eliminates any covenant or other
provision of this Indenture that has expressly been included solely for the
benefit of one or more particular series of Securities, or that 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 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 may, but
shall not be obligated to, enter into any such supplemental indenture which
affects the Trustee's own rights, 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 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.
SECTION 906. Reference in Securities to Supplemental Indentures.
Securities of any series authenticated and delivered after the
execution of any supplemental indenture pursuant to this Article may, and shall
if required by the Trustee, bear a notation in form approved by the Trustee as
to any matter provided for in such supplemental indenture. If the Company shall
so determine, new Securities of any series so modified as to conform, in the
opinion of the Trustee and the Company, to any such supplemental indenture may
be prepared and executed by the Company and authenticated and delivered by the
Trustee in exchange for Outstanding Securities of such series.
55
<PAGE>
ARTICLE TEN
COVENANTS
SECTION 1001. Payment of Principal, Premium and Interest.
The Company covenants and agrees for the benefit of each
series of Securities that it will duly and punctually pay the principal of and
any premium and interest on the Securities of that series in accordance with the
terms of the Securities and this Indenture.
SECTION 1002. Maintenance of Office or Agency.
The Company will maintain in each Place of Payment for any
series of Securities an office or agency where Securities of that series may be
presented or surrendered for payment, where Securities of that series may be
surrendered for registration of transfer or 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 of the location, and any change in the location, of such office or
agency. If at any time the Company shall fail to maintain any such required
office or agency or shall fail to furnish the Trustee with the address thereof,
such presentations, surrenders, notices and demands may be made or served at the
Corporate Trust Office of the Trustee, and the Company hereby appoints the
Trustee as its agent to receive all such presentations, surrenders, notices and
demands.
The Company may also from time to time designate one or more
other offices or agencies where the Securities of one or more series may be
presented or surrendered for any or all such purposes 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 Securities of any series for
such purposes. The Company will give prompt written notice to the Trustee of any
such designation or rescission and of any change in the location of any such
other office or agency.
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 series of Securities, it will, on or before each due date of
the principal of or any premium or interest on any of the Securities of that
series, segregate and hold in trust for the benefit of the Persons entitled
thereto a sum sufficient to pay the principal and any premium and interest 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 of its action or
failure so to act.
Whenever the Company shall have one or more Paying Agents for
any series of Securities, it will, on or prior to each due date of the principal
of or any premium or interest on any Securities of that series, deposit with a
Paying Agent a sum sufficient to pay such amount, such sum to be held as
provided by the Trust Indenture Act, and (unless such Paying Agent is the
Trustee) the Company will promptly notify the Trustee of its action or failure
so to act.
56
<PAGE>
The Company will cause each Paying Agent for any series of
Securities other than the Trustee to execute and deliver to the Trustee an
instrument in which such Paying Agent shall agree with the Trustee, subject to
the provisions of this Section, that such Paying Agent will (1) comply with the
provisions of the Trust Indenture Act applicable to it as a Paying Agent and (2)
during the continuance of any default by the Company (or any other obligor upon
the Securities of that series) in the making of any payment in respect of the
Securities of that series, upon the written request of the Trustee, forthwith
pay to the Trustee all sums held in trust by such Paying Agent for payment in
respect of the Securities of that series.
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 all sums held in
trust hereunder by the Company or such Paying Agent, such sums to be held by the
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 the
Trustee, such Paying Agent shall be released from all further liability with
respect to such money.
Any money deposited with the Trustee or any Paying Agent, or
then held by the Company, in trust for the payment of the principal of or any
premium or interest on any Security of any series and remaining unclaimed for
two years after such principal, premium or interest has become due and payable
shall be paid to the Company on Company Request, or (if then held by the
Company) shall be discharged from such trust; and the Holder of such Security
shall thereafter, as an unsecured general creditor, look only to the Company for
payment thereof, and all liability of the 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 the Trustee or such
Paying Agent, before being required to make any such repayment, may at the
expense of the Company cause to be published once, in a newspaper published in
the English language, customarily published on each Business Day and of general
circulation in New York City, notice 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 be repaid to the Company.
SECTION 1004. Corporate Existence.
Subject to Article Eight, the Company will do or cause to be done all
things necessary to preserve and keep in full force and effect its corporate
existence and the rights (charter and statutory) and franchises of the Company;
provided, however, that the Company shall not be required to preserve any such
right or franchise if the Board of Directors 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 1005. Statement as to Compliance.
The Company will deliver to the Trustee, within 120 days after the end
of each fiscal year, an Officers' Certificate, which need not comply with
Section 102, stating, as to each signer thereof, that
57
<PAGE>
(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, (a)
the Company has complied with all covenants and conditions under this
Indenture throughout such year, or, if there has been a default in
compliance with any such covenant or condition, specifying each such
default known to him and the nature and status thereof, and (b) no
event has occurred and is continuing which is, or after notice or lapse
of time or both would become, an Event of Default, or, if such an event
has occurred and is continuing, specifying each such event known to him
and the nature and status thereof.
SECTION 1006. Waiver of Certain Covenants.
Except as otherwise specified as contemplated by Section 301
for Securities of such series, the Company may, with respect to the Securities
of any series, omit in any particular instance to comply with any term,
provision or condition set forth in any covenant provided pursuant to Section
301(19), 901(2) or 901(7) for the benefit of the Holders of such series if
before the time for such compliance the Holders of at least a majority in
principal amount of the Outstanding Securities of such series shall, by Act of
such Holders, either waive such compliance in such instance or generally waive
compliance with such term, provision or condition, but no such waiver shall
extend to or affect such term, provision 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 in respect of any such term,
provision or condition shall remain in full force and effect.
SECTION 1007. Calculation of Original Issue Discount.
The Company shall file with the Trustee promptly after the end
of each calendar year a written notice specifying the amount of original issue
discount (including daily rates and accrual periods) accrued on Outstanding
Securities, if any, as of the end of such year.
58
<PAGE>
ARTICLE ELEVEN
REDEMPTION OF SECURITIES
SECTION 1101. Applicability of Article.
Securities of any series that are redeemable before their
Stated Maturity shall be redeemable in accordance with their terms and (except
as otherwise specified as contemplated by Section 301 for such Securities) in
accordance with this Article.
SECTION 1102. Election to Redeem; Notice to Trustee.
The election of the Company to redeem any Securities shall be
evidenced by a Board Resolution or in another manner specified as contemplated
by Section 301 for such Securities. In case of any redemption at the election of
the Company, the Company shall, at least 45 days prior to the Redemption Date
fixed by the Company (unless a shorter notice shall be satisfactory to the
Trustee), notify the Trustee of such Redemption Date, of the principal amount of
Securities of such series to be redeemed and, if applicable, of the tenor of the
Securities to be redeemed. In the case of any redemption of Securities (a) prior
to the expiration of any restriction on such redemption provided in the terms of
such Securities or elsewhere in this Indenture, or (b) pursuant to an election
of the Company which is subject to a condition specified in the terms of such
Securities or elsewhere in this Indenture, the Company shall furnish the Trustee
with an Officers' Certificate evidencing compliance with such restriction or
condition.
SECTION 1103. Selection by Trustee of Securities to Be Redeemed.
If less than all the Securities of any series are to be
redeemed (unless all the Securities of such series and of a specified tenor are
to be redeemed or unless such redemption affects only a single Security), the
particular Securities to be redeemed shall be selected not more than 60 days
prior to the Redemption Date by the Trustee, from the Outstanding Securities of
such series not previously called for redemption, by such method as the Trustee
shall deem fair and appropriate and which may provide for the selection for
redemption of a portion of the principal amount of any Security of such series;
provided that the unredeemed portion of the principal amount of any Security
shall be in an authorized denomination (which shall not be less than the minimum
authorized denomination) for such Security. If less than all the Securities of
such series and of a specified tenor are to be redeemed (unless such redemption
affects only a single Security), the particular Securities to be redeemed shall
be selected not more than 60 days prior to the Redemption Date by the Trustee,
from the Outstanding Securities of such series and specified tenor not
previously called for redemption in accordance with the preceding sentence.
The Trustee shall promptly notify the Company in writing of
the Securities selected for redemption as aforesaid and, in the case of any
Securities selected for partial redemption as aforesaid, the principal amount
thereof to be redeemed.
The provisions of the two preceding paragraphs shall not apply
with respect to any redemption affecting only a single Security, whether such
Security is to be redeemed in whole
59
<PAGE>
or in part. In the case of any such redemption in part, the unredeemed portion
of the principal amount of the Security shall be in an authorized denomination
(which shall not be less than the minimum authorized denomination) for such
Security.
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 Securities 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 by first-class mail,
postage prepaid, mailed not less than 30 nor more than 60 days prior to the
Redemption Date, to each Holder of Securities to be redeemed, at his address
appearing in the Security Register.
All notices of redemption shall state:
(1) the Redemption Date;
(2) the Redemption Price;
(3) if less than all the Outstanding Securities of
any series and of a specified tenor consisting of more than a
single Security are to be redeemed, the identification (and,
in the case of partial redemption of any such Securities, the
principal amounts) of the particular Securities to be redeemed
and, if less than all the Outstanding Securities of any series
and of a specified tenor consisting of a single Security are
to be redeemed, the principal amount of the particular
Security to be redeemed;
(4) that on the Redemption Date the Redemption Price,
together with accrued interest, if any, to the Redemption
Date, will become due and payable upon each such Security to
be redeemed and, if applicable, that interest thereon will
cease to accrue on and after said date;
(5) the place or places where each such Security is
to be surrendered for payment of the Redemption Price and
accrued interest, if any, unless it shall have been specified
as contemplated by Section 301 with respect to such Securities
that such surrender shall not be required;
(6) that the redemption is for a sinking fund, if
such is the case; and
(7) such other matters as the Company shall deem
desirable or appropriate.
Unless otherwise specified with respect to any Securities in
accordance with Section 301, with respect to any redemption of Securities at the
election of the Company, unless, upon the giving of notice of such redemption,
Defeasance shall have been effected with respect
60
<PAGE>
to such Securities pursuant to Section 1302, such notice may state that such
redemption shall be conditional upon the receipt by the Trustee or the Paying
Agent(s) for such Securities, on or prior to the date fixed for such redemption,
of money sufficient to pay the principal of and any premium and interest on such
Securities and that if such money shall not have been so received such notice
shall be of no force or effect and the Company shall not be required to redeem
such Securities. In the event that such notice of redemption contains such a
condition and such money is not so received, the redemption shall not be made
and within a reasonable time thereafter notice shall be given, in the manner in
which the notice of redemption was given, that such money was not so received
and such redemption was not required to be made, and the Trustee or Paying
Agent(s) for the Securities otherwise to have been redeemed shall promptly
return to the Holders thereof any of such Securities which had been surrendered
for payment upon such redemption.
Notice of redemption of Securities to be redeemed at the
election of the Company, and any notice of non-satisfaction of redemption as
aforesaid, shall be given by the Company or, at the Company's request, by the
Trustee in the name and at the expense of the Company. Subject to the preceding
paragraph, any such notice of redemption shall be irrevocable.
SECTION 1105. Securities Payable on Redemption Date.
Notice of redemption having been given as aforesaid, and the
conditions, if any, set forth in such notice having been satisfied, the
Securities or portions thereof so to be redeemed shall, on the Redemption Date,
become due and payable at the Redemption Price therein specified, and from and
after such date (unless, in the case of an unconditional notice of redemption,
the Company shall default in the payment of the Redemption Price and accrued
interest, if any) such Securities or portions thereof, if interest-bearing,
shall cease to bear interest. Upon surrender of any such Security for redemption
in accordance with said notice, such Security or portion thereof shall be paid
by the Company at the Redemption Price, together with accrued interest, if any,
to the Redemption Date; provided, however, that no such surrender shall be a
condition to such payment if so specified as contemplated by Section 301 with
respect to such Security, and provided further that, unless otherwise specified
as contemplated by Section 301, installments of interest whose Stated Maturity
is on or prior to the Redemption Date will 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 Security called for redemption shall not be so paid
upon surrender thereof for redemption, the principal and any premium shall,
until paid, bear interest from the Redemption Date at the rate prescribed
therefor in the Security.
SECTION 1106. Securities Redeemed in Part.
Any Security which is to be redeemed only in part shall be
surrendered at a Place of Payment therefor (with, if the Company or the Trustee
so requires, due endorsement by, or a written instrument of transfer in form
satisfactory to the Company and the Security Registrar duly executed by, the
Holder thereof or his attorney duly authorized in writing), and the Company
shall execute, and the Trustee shall authenticate and deliver to the Holder of
such
61
<PAGE>
Security without service charge, a new Security or Securities of the same series
and of like tenor, of any authorized denomination as requested by such Holder,
in aggregate principal amount equal to and in exchange for the unredeemed
portion of the principal of the Security so surrendered.
62
<PAGE>
ARTICLE TWELVE
SINKING FUNDS
SECTION 1201. Applicability of Article.
The provisions of this Article shall be applicable to any
sinking fund for the retirement of Securities of any series except as otherwise
specified as contemplated by Section 301 for such Securities.
The minimum amount of any sinking fund payment provided for by
the terms of any Securities 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 such Securities is herein referred to as an "optional sinking fund
payment". If provided for by the terms of any Securities, 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 as
provided for by the terms of such Securities.
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) and (2) may apply as a credit
Securities of a series that have been redeemed either at the election of the
Company pursuant to the terms of such Securities or through the application of
permitted optional sinking fund payments pursuant to the terms of such
Securities, in each case in satisfaction of all or any part of any sinking fund
payment with respect to any Securities of such series required to be made
pursuant to the terms of such Securities as and to the extent provided for by
the terms of such Securities; provided that the Securities to be so credited
have not been previously so credited. The Securities to be so credited shall be
received and credited for such purpose by the Trustee at the Redemption Price,
as specified in the Securities so to be redeemed, for redemption through
operation of the sinking fund and the amount of such sinking fund payment shall
be reduced accordingly.
SECTION 1203. Redemption of Securities for Sinking Fund.
Not less than 45 days prior to each sinking fund payment date
for any Securities, the Company will deliver to the Trustee an Officers'
Certificate specifying the amount of the next ensuing sinking fund payment for
such Securities pursuant to the terms of such Securities, the portion thereof,
if any, which is to be satisfied by payment of cash and the portion thereof, if
any, which is to be satisfied by delivering and crediting Securities pursuant to
Section 1202 and stating the basis for such credit and that such Securities have
not been previously so credited and will also deliver to the Trustee any
Securities to be so delivered. Not less than 30 days prior to each such sinking
fund payment date, the Trustee shall select the Securities to be
63
<PAGE>
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 1105 and 1106.
64
<PAGE>
ARTICLE THIRTEEN
DEFEASANCE AND COVENANT DEFEASANCE
SECTION 1301. Applicability of Article.
Unless, pursuant to Section 301, provision is made that either
or both of (a) defeasance of any Securities or any series of Securities under
Section 1302 and (b) covenant defeasance of any Securities or any series of
Securities under Section 1303 shall not apply to such Securities of a series,
then the provisions of either or both of Sections 1302 and Section 1303, as the
case may be, together with Sections 1304 and 1305, shall be applicable to the
Outstanding Securities of such series upon compliance with the conditions set
forth below in this Article.
SECTION 1302. Defeasance and Discharge.
The Company may cause itself to be discharged from its
obligations with respect to any Securities or any series of Securities on and
after the date the conditions set forth in Section 1304 are satisfied
(hereinafter called "Defeasance"). For this purpose, such Defeasance means that
the Company shall be deemed to have paid and discharged the entire indebtedness
represented by such Securities and to have satisfied all its other obligations
under such Securities and this Indenture insofar as such Securities are
concerned (and the Trustee, at the expense of the Company, shall execute proper
instruments acknowledging the same), subject to the following which shall
survive until otherwise terminated or discharged hereunder: (1) the rights of
Holders of such Securities to receive, solely from the trust fund described in
Section 1304 and as more fully set forth in such Section, payments in respect of
the principal of and any premium and interest on such Securities when payments
are due, (2) the Company's obligations with respect to such Securities under
Sections 304, 305, 306, 1002 and 1003 and with respect to the Trustee under
Section 607, (3) the rights, powers, trusts, duties and immunities of the
Trustee hereunder and (4) this Article. Subject to compliance with this Article,
Defeasance with respect to any Securities or any series of Securities by the
Company is permitted under this Section 1302 notwithstanding the prior exercise
by the Company of its rights under Section 1303 with respect to such Securities.
Following a Defeasance, payment of such Securities may not be accelerated
because of an Event of Default.
SECTION 1303. Covenant Defeasance.
The Company may cause itself to be released from its
obligations under any covenants provided pursuant to Section 301(19), 901(2),
901(6) or 901(7) with respect to any Securities or any series of Securities for
the benefit of the Holders of such Securities and the occurrence of any event
specified in Sections 501(4) (with respect to any such covenants provided
pursuant to Section 301(19), 901(2), 901(6) or 901(7)) or 501(7) shall be deemed
not to be or result in an Event of Default with respect to such Securities as
provided in this Section, in each case on and after the date the conditions set
forth in Section 1304 are satisfied (hereinafter called "Covenant Defeasance").
For this purpose, such Covenant Defeasance means that, with respect to such
Securities, 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 specified
Section (to
65
<PAGE>
the extent so specified in the case of Section 501(4)), whether directly or
indirectly by reason of any reference elsewhere herein to any such Section or by
reason of any reference in any such Section to any other provision herein or in
any other document, but the remainder of this Indenture and such Securities
shall be unaffected thereby.
SECTION 1304. Conditions to Defeasance or Covenant Defeasance.
The following shall be the conditions to the application of
Section 1302 or Section 1303 to any Securities or any series of Securities, as
the case may be:
(1) The Company shall irrevocably have deposited or caused to be
deposited with the Trustee as trust funds in trust for the
purpose of making the following payments, specifically pledged
as security for, and dedicated solely to, the benefit of the
Holders of such Securities, (A) money in an amount, or (B)
U.S. Government Obligations which through the scheduled
payment of principal and interest in respect thereof in
accordance with their terms will provide, not later than the
due date of any payment, money in an amount, or (C) a
combination thereof, in each case sufficient, in the opinion
of a nationally recognized firm of independent public
accountants expressed in a written certification thereof
delivered to the Trustee, to pay and discharge, and which
shall be applied by the Trustee to pay and discharge, the
principal of and any premium and interest on such Securities
on the respective Stated Maturities or on any Redemption Date
established pursuant to Clause (3) below, in accordance with
the terms of this Indenture and such Securities. As used
herein, "U.S. Government Obligation" means (x) any security
which is (i) a direct obligation of the United States of
America for the payment of which the full faith and credit of
the United States of America is pledged or (ii) an obligation
of a Person controlled or supervised by and acting as an
agency or instrumentality of the United States of America the
payment of which is unconditionally guaranteed as a full faith
and credit obligation by the United States of America, which,
in either case (i) or (ii), is not callable or redeemable at
the option of the issuer thereof, and (y) any depositary
receipt issued by a bank (as defined in Section 3(a)(2) of the
Securities Act) as custodian with respect to any U.S.
Government Obligation which is specified in clause (x) above
and held by such bank for the account of the holder of such
depositary receipt, or with respect to any specific payment of
principal of or interest on any U.S. Government Obligation
which is so specified and held, provided that (except as
required by law) such custodian is not authorized to make any
deduction from the amount payable to the holder of such
depositary receipt from any amount received by the custodian
in respect of the U.S. Government Obligation or the specific
payment of principal or interest evidenced by such depositary
receipt.
(2) No event that is, or after notice or lapse of time or both
would become, an Event of Default with respect to such
Securities or any other Securities shall have occurred and be
continuing at the time of such deposit or, with regard to any
such event specified in Sections 501(5) and (6), at any time
66
<PAGE>
on or prior to the 90th day after the date of such deposit (it
being understood that this condition shall not be deemed
satisfied until after such 90th day).
(3) If the Securities are to be redeemed prior to Stated Maturity
(other than from mandatory sinking fund payments or analogous
payments), notice of such redemption shall have been duly
given pursuant to this Indenture or provision therefor
satisfactory to the Trustee shall have been made.
(4) The Company shall have delivered to the Trustee an Officers'
Certificate and an Opinion of Counsel, each stating that all
conditions precedent with respect to such Defeasance or
Covenant Defeasance have been complied with.
SECTION 1305. Deposited Money and U.S. Government Obligations to Be
Held in Trust; Miscellaneous Provisions.
Subject to the provisions of the last paragraph of Section
1003, all money and U.S. Government Obligations (including the proceeds thereof)
deposited with the Trustee pursuant to Section 1304 in respect of any Securities
shall be held in trust and applied by the Trustee, in accordance with the
provisions of such Securities and this Indenture, to the payment, either
directly or through any such Paying Agent (including the Company acting as its
own Paying Agent) as the Trustee may determine, to the Holders of such
Securities, of all sums due and to become due thereon in respect of principal
and any premium and interest, but money so held in trust need not be segregated
from other funds except to the extent required by law.
The Company shall pay and indemnify the Trustee against any
tax, fee or other charge imposed on or assessed against the U.S. Government
Obligations deposited pursuant to Section 1304 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.
Anything in this Article to the contrary notwithstanding, the
Trustee shall deliver or pay to the Company from time to time upon Company
Request any money or U.S. Government Obligations held by it as provided in
Section 1304 with respect to any Securities which, in the opinion of a
nationally recognized firm of independent public accountants expressed in a
written certification thereof delivered to the Trustee, are in excess of the
amount thereof that would then be required to be deposited to effect the
Defeasance or Covenant Defeasance, as the case may be, with respect to such
Securities.
67
<PAGE>
ARTICLE FOURTEEN
IMMUNITY OF INCORPORATORS, STOCKHOLDERS,
OFFICERS AND DIRECTORS
SECTION 1401. Indenture and Securities Solely Corporate Obligations.
No recourse for the payment of the principal of or any premium
or interest on any Security, or for any claim based thereon or otherwise in
respect thereof, and no recourse under or upon any obligation, covenant or
agreement of the Company in this Indenture or in any supplemental indenture, or
in any Security, or because of the creation of any indebtedness represented
thereby, shall be had against any incorporator, stockholder, officer or
director, as such, past, present or future, of the Company or of any successor
corporation, either directly or 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 or penalty or otherwise; it being expressly
understood that all such liability is hereby expressly waived and released as a
condition of, and as a consideration for, the execution of this Indenture and
the issue of the Securities.
--------------------
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 to be duly executed, and their respective corporate seals to be
hereunto affixed and attested, all as of the day and year first above written.
VIRGINIA ELECTRIC AND POWER COMPANY
By_____________________________________
President
Attest:
- ------------------------------
THE CHASE MANHATTAN BANK
By_____________________________________
Vice President
Attest:
- ------------------------------
68
<PAGE>
COMMONWEALTH OF VIRGINIA)
) ss.:
CITY OF RICHMOND )
On the day of __________, ____, before me personally came
, to me known, who, being duly sworn, did depose and say that he is
of VIRGINIA ELECTRIC AND POWER COMPANY, one of the
corporations described in and which executed the foregoing instrument; that he
knows the seal of said corporation; that the seal affixed to said instrument is
such corporate seal; that it was so affixed by authority of the Board of
Directors of said corporation; and that he signed his name thereto by like
authority.
----------------------------------
Notary Public
[NOTARIAL SEAL]
STATE OF NEW YORK )
) ss.:
COUNTY OF NEW YORK )
On the day of __________, ____, before me personally came
, to me known, who, being by me duly sworn, did depose and say that he is
of THE CHASE MANHATTAN BANK, one of the corporations
described in and which executed the foregoing instrument; that he knows the seal
of said corporation; that the seal affixed to said instrument is such corporate
seal; that it was so affixed by authority of the Board of Directors of said
corporation; and that he signed his name thereto by like authority.
----------------------------------
Notary Public
[NOTARIAL SEAL]
69
<PAGE>
Exhibit 4(iii)
VIRGINIA ELECTRIC AND POWER COMPANY
TO
THE CHASE MANHATTAN BANK
Trustee
--------------------
SENIOR SUBORDINATED INDENTURE
Dated as of __________, ____
--------------------
<PAGE>
vi
TABLE OF CONTENTS
<TABLE>
<CAPTION>
Page
<S> <C>
ARTICLE ONE
DEFINITIONS AND OTHER PROVISIONS
OF GENERAL APPLICATION
SECTION 101. Definitions................................................................. 1
SECTION 102. Compliance Certificates and Opinions........................................ 7
SECTION 103. Form of Documents Delivered to Trustee...................................... 8
SECTION 104. Acts of Holders; Record Dates............................................... 9
SECTION 105. Notices, Etc., to Trustee and Company....................................... 11
SECTION 106. Notice to Holders; Waiver................................................... 11
SECTION 107. Conflict with Trust Indenture Act........................................... 11
SECTION 108. Effect of Headings and Table of Contents.................................... 12
SECTION 109. Successors and Assigns...................................................... 12
SECTION 110. Separability Clause......................................................... 12
SECTION 111. Benefits of Indenture....................................................... 12
SECTION 112. Governing Law............................................................... 12
SECTION 113. Legal Holidays.............................................................. 12
ARTICLE TWO
SECURITY FORMS
SECTION 201. Forms Generally............................................................. 13
SECTION 202. Form of Face of Security.................................................... 13
SECTION 203. Form of Reverse of Security................................................. 15
SECTION 204. Form of Legend for Global Securities........................................ 19
SECTION 205. Form of Trustee's Certificate of Authentication............................. 19
ARTICLE THREE
THE SECURITIES
SECTION 301. Amount Unlimited; Issuable in Series........................................ 20
SECTION 302. Denominations............................................................... 23
SECTION 303. Execution, Authentication, Delivery and Dating.............................. 23
SECTION 304. Temporary Securities........................................................ 25
SECTION 305. Registration, Registration of Transfer and Exchange......................... 25
SECTION 306. Mutilated, Destroyed, Lost and Stolen Securities............................ 27
SECTION 307. Payment of Interest; Interest Rights Preserved.............................. 28
SECTION 308. Persons Deemed Owners....................................................... 29
SECTION 309. Cancellation................................................................ 29
SECTION 310. Computation of Interest..................................................... 29
SECTION 311. CUSIP Numbers............................................................... 30
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ARTICLE FOUR
SATISFACTION AND DISCHARGE
<S> <C>
SECTION 401. Satisfaction and Discharge of Indenture..................................... 31
SECTION 402. Application of Trust Money.................................................. 32
ARTICLE FIVE
REMEDIES
SECTION 501. Events of Default........................................................... 33
SECTION 502. Acceleration of Maturity; Rescission and.................................... 34
SECTION 503. Collection of Indebtedness and Suits for Enforcement by Trustee............. 35
SECTION 504. Trustee May File Proofs of Claim............................................ 36
SECTION 505. Trustee May Enforce Claims Without Possession of Securities................. 36
SECTION 506. Application of Money Collected.............................................. 36
SECTION 507. Limitation on Suits......................................................... 37
SECTION 508. Unconditional Right of Holders to Receive Principal, Premium and
Interest.................................................................... 37
SECTION 509. Restoration of Rights and Remedies.......................................... 38
SECTION 510. Rights and Remedies Cumulative.............................................. 38
SECTION 511. Delay or Omission Not Waiver................................................ 38
SECTION 512. Control By Holders.......................................................... 38
SECTION 513. Waiver of Past Defaults..................................................... 39
SECTION 514. Undertaking for Costs....................................................... 39
SECTION 515. Waiver of Stay or Extension Laws............................................ 39
ARTICLE SIX
THE TRUSTEE
SECTION 601. Certain Duties and Responsibilities......................................... 40
SECTION 602. Notice of Defaults.......................................................... 40
SECTION 603. Certain Rights of Trustee................................................... 40
SECTION 604. Not Responsible for Recitals or Issuance of Securities...................... 41
SECTION 605. May Hold Securities......................................................... 41
SECTION 606. Money Held in Trust......................................................... 42
SECTION 607. Compensation and Reimbursement.............................................. 42
SECTION 608. Conflicting Interests....................................................... 43
SECTION 609. Corporate Trustee Required; Eligibility..................................... 43
SECTION 610. Resignation and Removal; Appointment of Successor........................... 43
SECTION 611. Acceptance of Appointment by Successor...................................... 45
SECTION 612. Merger, Conversion, Consolidation or Succession to Business................. 46
SECTION 613. Preferential Collection of Claims Against Company........................... 46
SECTION 614. Appointment of Authenticating Agent......................................... 46
ARTICLE SEVEN
HOLDERS' LISTS AND REPORTS BY TRUSTEE AND COMPANY
SECTION 701. Company to Furnish Trustee Names and Addresses of Holders................... 48
SECTION 702. Preservation of Information; Communications to Holders...................... 48
SECTION 703. Reports by Trustee.......................................................... 48
SECTION 704. Reports by Company.......................................................... 49
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ARTICLE EIGHT
CONSOLIDATION, MERGER, CONVEYANCE OR TRANSFER
<S> <C>
SECTION 801. Company May Consolidate, Etc., on Certain Terms............................. 50
SECTION 802. Successor Substituted....................................................... 50
ARTICLE NINE
SUPPLEMENTAL INDENTURES
SECTION 901. Supplemental Indentures Without Consent of Holders.......................... 51
SECTION 902. Supplemental Indentures With Consent of Holders............................. 52
SECTION 903. Execution of Supplemental Indentures........................................ 53
SECTION 904. Effect of Supplemental Indentures........................................... 53
SECTION 905. Conformity with Trust Indenture Act......................................... 53
SECTION 906. Reference in Securities to Supplemental Indentures.......................... 53
SECTION 907. Subordination Unimpaired.................................................... 54
ARTICLE TEN
COVENANTS
SECTION 1001. Payment of Principal, Premium and Interest.................................. 55
SECTION 1002. Maintenance of Office or Agency............................................. 55
SECTION 1003. Money for Securities Payments to Be Held in Trust........................... 55
SECTION 1004. Corporate Existence......................................................... 56
SECTION 1005. Statement as to Compliance.................................................. 56
SECTION 1006. Waiver of Certain Covenants................................................. 57
SECTION 1007. Calculation of Original Issue Discount...................................... 57
ARTICLE ELEVEN
REDEMPTION OF SECURITIES
SECTION 1101. Applicability of Article.................................................... 58
SECTION 1102. Election to Redeem; Notice to Trustee....................................... 58
SECTION 1103. Selection by Trustee of Securities to Be Redeemed........................... 58
SECTION 1104. Notice of Redemption........................................................ 59
SECTION 1105. Securities Payable on Redemption Date....................................... 60
SECTION 1106. Securities Redeemed in Part................................................. 60
ARTICLE TWELVE
SINKING FUNDS
SECTION 1201. Applicability of Article.................................................... 62
SECTION 1202. Satisfaction of Sinking Fund Payments with Securities....................... 62
SECTION 1203. Redemption of Securities for Sinking Fund................................... 62
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ARTICLE THIRTEEN
DEFEASANCE AND COVENANT DEFEASANCE
<S> <C>
SECTION 1301. Applicability of Article.................................................... 63
SECTION 1302. Defeasance and Discharge.................................................... 63
SECTION 1303. Covenant Defeasance......................................................... 63
SECTION 1304. Conditions to Defeasance or Covenant Defeasance............................. 64
SECTION 1305. Deposited Money and U.S. Government Obligations to Be Held in Trust;
Miscellaneous Provisions.................................................... 65
ARTICLE FOURTEEN
SUBORDINATION
SECTION 1401. Securities Subordinated to Senior Indebtedness.............................. 66
SECTION 1402. Disputes with Holders of Certain Senior Indebtedness........................ 68
SECTION 1403. Subrogation................................................................. 68
SECTION 1404. Obligation of Company Unconditional......................................... 68
SECTION 1405. Payments on Securities Permitted............................................ 69
SECTION 1406. Effectuation of Subordination by Trustee.................................... 69
SECTION 1407. Knowledge of Trustee........................................................ 70
SECTION 1408. Trustee May Hold Senior Indebtedness........................................ 70
SECTION 1409. Rights of Holders of Senior Indebtedness Not Impaired....................... 70
SECTION 1410. Trust Moneys Not Subordinated............................................... 70
SECTION 1411. Article Applicable to Paying Agents......................................... 71
SECTION 1412. Trustee; Compensation Not Prejudiced........................................ 71
ARTICLE FIFTEEN
IMMUNITY OF INCORPORATORS, STOCKHOLDERS,
OFFICERS AND DIRECTORS
SECTION 1501. Indenture and Securities Solely Corporate Obligations....................... 72
</TABLE>
<PAGE>
129
INDENTURE, dated as of __________, ____, between Virginia
Electric and Power Company, a corporation duly organized and existing under the
laws of the Commonwealth of Virginia (herein called the "Company"), having its
principal office at One James River Plaza, Richmond, Virginia 23219 and The
Chase Manhattan Bank, a New York banking corporation, duly organized and
existing under the laws of the State of New York, having its principal corporate
trust office at 450 West 33rd Street, New York, New York 10001, as Trustee
(herein called the "Trustee").
<PAGE>
RECITALS OF THE COMPANY
The Company has duly authorized the execution and delivery of
this Indenture to provide for the issuance from time to time of its unsecured
senior subordinated notes or other evidences of indebtedness (herein called the
"Securities"), to be issued in one or more series as in this Indenture provided.
All things necessary to make this Indenture a valid agreement
of the Company, in accordance with its terms, have been done.
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 agreed, for the equal and
proportionate benefit of all Holders of the Securities or of series thereof, as
follows:
ARTICLE ONE
DEFINITIONS AND OTHER PROVISIONS
OF GENERAL APPLICATION
SECTION 101. Definitions.
For all purposes of this Indenture, 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, and, except as
otherwise herein expressly provided, 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 of America;
(4) unless the context otherwise requires, any
reference to an "Article" or a "Section" refers to an Article
or a Section, as the case may be, of this Indenture; and
(5) 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.
<PAGE>
"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.
"Authenticating Agent" means any Person authorized by the
Trustee pursuant to Section 614 to act on behalf of the Trustee to authenticate
Securities of one or more series.
"Board of Directors" means either the board of directors of
the Company or any duly authorized committee of that board.
"Board Resolution" means a copy of a resolution certified by
the Corporate Secretary or an Assistant Corporate Secretary of the Company to
have been duly adopted by the Board of Directors and to be in full force and
effect on the date of such certification, and delivered to the Trustee.
"Business Day", when used with respect to any Place of
Payment, means each Monday, Tuesday, Wednesday, Thursday and Friday which is not
a day on which banking institutions in that Place of Payment are authorized or
obligated by law or executive order to close.
"Commission" means the Securities and Exchange Commission,
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 at such time.
<PAGE>
"Company" means the Person named as the "Company" in the first
paragraph of this instrument until a successor Person shall have become such
pursuant to the applicable provisions of this Indenture, and thereafter
"Company" shall mean such successor Person.
"Company Request" or "Company Order" means a written request
or order signed in the name of the Company by its Chairman of the Board, its
Vice Chairman of the Board, its President or a Vice President, and by its
Treasurer, an Assistant Treasurer, its Corporate Secretary or an Assistant
Corporate Secretary, and delivered to the Trustee.
"Corporate Trust Office" means the office of the Trustee in
the City of New York at which at any particular time its corporate trust
business shall be principally administered, which office at the date hereof is
located at 450 West 33rd Street, New York, New York 10001.
"corporation" means a corporation, association, company,
joint-stock company or business trust.
"Covenant Defeasance" has the meaning specified in Section
1303.
"Defaulted Interest" has the meaning specified in Section 307.
"Defeasance" has the meaning specified in Section 1302.
"Depositary" means, with respect to Securities of any series
issuable in whole or in part in the form of one or more Global Securities, a
clearing agency registered under the Exchange Act that is designated to act as
Depositary for such Securities as contemplated by Section 301.
"Event of Default" has the meaning specified in Section 501.
"Exchange Act" means the Securities Exchange Act of 1934 and
any statute successor thereto, in each case as amended from time to time.
"Expiration Date" has the meaning specified in Section 104.
"Global Security" means a Security that evidences all or part
of the Securities of any series which is issued to a Depositary or a nominee
thereof for such series in accordance with Section 301(17).
"Holder" means a Person in whose name a Security is registered
in the Security Register.
"Indenture" means this Senior Subordinated Indenture as
originally executed and 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, including, for all purposes of this instrument and
any such supplemental indenture, the provisions of the Trust Indenture Act that
are deemed to be a part of and govern this instrument and any such supplemental
indenture, respectively. The term "Indenture" shall also include the terms of
particular series of Securities established as contemplated by Section 301.
<PAGE>
"interest", when used with respect to an Original Issue
Discount 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.
"Investment Company Act" means the Investment Company Act of
1940 and any statute successor thereto, in each case as amended from time to
time.
"Junior Subordinated Notes" means all indebtedness of the
Company evidenced by notes, debentures, bonds or other securities sold by the
Company for money, that by their terms, are subordinate in right of any payment
due thereon to the Securities.
"Maturity", when used with respect to any Security, means the
date on which the principal of such Security or an instalment of principal
becomes due and payable as therein or herein provided, whether at the Stated
Maturity or by declaration of acceleration, call for redemption or otherwise.
"Notice of Default" means a written notice of the kind
specified in Section 501(4).
"Officers' Certificate" means a certificate signed by the
Chairman of the Board, the Vice Chairman of the Board, the President or a Vice
President, and by the Treasurer, an Assistant Treasurer, the Secretary or an
Assistant Secretary, of the Company, and delivered to the Trustee. One of the
officers signing an Officers' Certificate given pursuant to Section 1005 shall
be the principal executive, financial or accounting officer of the Company.
"Opinion of Counsel" means a written opinion of counsel, who
may be counsel for the Company, or other counsel who shall be reasonably
acceptable to the Trustee.
"Original Issue Discount Security" means any Security which
provides for an amount 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 canceled by the
Trustee or delivered to the Trustee for cancellation;
(2) Securities (other than Securities as to which
Covenant Defeasance has been effected pursuant to Section
1303) for whose payment or redemption money in the necessary
amount has been theretofore deposited with the Trustee or any
Paying Agent (other than the Company) in trust or set aside
and segregated in trust by the Company (if the Company shall
act as its own Paying Agent) for the Holders of such
Securities; provided that, if such Securities are to be
redeemed, notice of such redemption has been duly given
pursuant to this Indenture or provision therefor satisfactory
to the Trustee has been made;
<PAGE>
(3) Securities as to which Defeasance has been
effected pursuant to Section 1302; and
(4) Securities that 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 to the Trustee proof
satisfactory to it that such Securities are held by a bona
fide purchaser in whose hands such Securities are valid
obligations of the Company;
provided, however, that in determining whether the Holders of the requisite
principal amount of the Outstanding Securities have given, made or taken any
request, demand, authorization, direction, notice, consent, waiver or other
action hereunder as of any date, (A) the principal amount of an Original Issue
Discount Security which shall be deemed to be Outstanding shall be the amount of
the principal thereof that would be due and payable as of such date upon
acceleration of the Maturity thereof to such date pursuant to Section 502, (B)
if, as of such date, the principal amount payable at the Stated Maturity of a
Security is not determinable, the principal amount of such Security which shall
be deemed to be Outstanding shall be the amount as specified or determined as
contemplated by Section 301, (C) the principal amount of a Security denominated
in one or more foreign currencies or currency units which shall be deemed to be
Outstanding shall be the U.S. dollar equivalent, determined as of such date in
the manner provided as contemplated by Section 301, of the principal amount of
such Security (or, in the case of a Security described in Clause (A) or (B)
above, of the amount determined as provided in such Clause), and (D) Securities
owned by the Company or any other obligor upon the Securities or any Affiliate
of the Company or of such other obligor shall be disregarded and deemed not to
be Outstanding, except that, in determining whether the Trustee shall be
protected in relying upon any such request, demand, authorization, direction,
notice, consent, waiver or other action, only Securities that the Trustee
actually knows to be so owned shall be so disregarded. Securities so owned that
have been pledged in good faith may be regarded as Outstanding if the pledgee
establishes to the satisfaction of the 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.
"Paying Agent" means any Person authorized by the Company to
pay the principal of or any premium or interest on any Securities on behalf of
the Company.
"Periodic Offering" means an offering of Securities of a
series from time to time the specific terms of which Securities, including
without limitation the rate or rates of interest or formula for determining the
rate or rates of interest thereon, if any, the Stated Maturity or Maturities
thereof and the redemption provisions, if any, with respect thereto, are to be
determined by the Company upon the issuance of such Securities.
<PAGE>
"Person" means any individual, corporation, partnership,
limited liability company, joint venture, trust, unincorporated organization or
government or any agency or political subdivision thereof.
"Place of Payment", when used with respect to the Securities
of any series, means the place or places where the principal of and any premium
and interest on the Securities of that series are payable as specified 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 such particular Security; and, for the purposes of this definition, any
Security authenticated and delivered under Section 306 in exchange for or in
lieu of a mutilated, destroyed, lost or stolen Security shall be deemed to
evidence the same debt as the mutilated, destroyed, lost or stolen Security.
"Redemption Date", when used with respect to any Security to
be redeemed, means the date fixed for such redemption by or pursuant to this
Indenture.
"Redemption Price", when used with respect to any Security to
be redeemed, means the price at which it is to be redeemed pursuant to this
Indenture.
"Regular Record Date" for the interest payable on any Interest
Payment Date on the Securities of any series means the date specified for that
purpose as contemplated by Section 301.
"Responsible Officer", when used with respect to the Trustee,
means the chairman or any vice-chairman of the board of directors, the chairman
or any vice-chairman of the executive committee of the board of directors, the
chairman of the trust committee, the president, any vice president, the
secretary, any assistant secretary, the treasurer, any assistant treasurer, the
cashier, any assistant cashier, any senior trust officer, any trust officer or
assistant trust officer, the controller or any assistant controller or any other
officer of the 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.
"Securities" has the meaning stated in the first recital of
this Indenture and more particularly means any Securities authenticated and
delivered under this Indenture.
"Securities Act" means the Securities Act of 1933 and any
statute successor thereto, in each case as amended from time to time.
<PAGE>
"Security Register" and "Security Registrar" have the
respective meanings specified in Section 305.
"Senior Indebtedness" means with respect to any series of
Securities, the principal of, and premium, if any, and interest on and any other
payment due pursuant to any of the following, whether outstanding at the date of
execution of this Indenture or thereafter incurred, created or assumed: (a) all
indebtedness of the Company evidenced by notes, debentures, bonds or other
securities sold by the Company for money or other obligations for money
borrowed, (b) all indebtedness of others of the kinds described in the preceding
clause (a) assumed by or guaranteed in any manner by the Company or in effect
guaranteed by the Company through an agreement to purchase, contingent or
otherwise, and (c) all renewals, extensions or refundings of indebtedness of the
kinds described in either of the preceding clauses (a) and (b), except that no
such indebtedness, renewal, extension or refunding described in the preceding
clauses (a), (b) or (c) shall be Senior Indebtedness if they are (i) Junior
Subordinated Notes or (ii) the Securities or any other obligation for money
borrowed that, by their terms, are junior to or pari passu with such series of
Securities.
"Special Record Date" for the payment of any Defaulted
Interest means a date fixed by the Trustee pursuant to Section 307.
"Stated Maturity", when used with respect to any Security or
any instalment of principal thereof or interest thereon, means the date
specified in such Security as the fixed date on which the principal of such
Security or such instalment of principal or interest is due and payable.
"Trust Indenture Act" means the Trust Indenture Act of 1939 as
in force at the date as of which this instrument was executed; provided,
however, that in the event the Trust Indenture Act of 1939 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 until a successor Trustee shall have become such
pursuant to the applicable provisions of this Indenture, and thereafter
"Trustee" shall mean or include each Person who is then a Trustee hereunder, and
if at any time there is more than one such Person, "Trustee" as used with
respect to the Securities of any series shall mean the Trustee with respect to
Securities of that series.
"U.S. Government Obligation" has the meaning specified in
Section 1304.
"Vice President", when used with respect to the Company or the
Trustee, means any vice president, whether or not designated by a number or a
word or words added before or after the title "vice president".
<PAGE>
SECTION 102. Compliance Certificates and Opinions.
Upon any application or request by the Company to the Trustee
to take any action under any provision of this Indenture, the Company shall
furnish to the Trustee such certificates and opinions as may be required under
the Trust Indenture Act. Each such certificate or opinion shall be given in the
form of an Officers' Certificate, if to be given by an officer of the Company,
or an Opinion of Counsel, if to be given by counsel, and shall comply with the
requirements of the Trust Indenture Act and any other requirements set forth in
this Indenture.
Every certificate 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 covenant or condition 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 covenant or condition 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 the 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.
<PAGE>
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.
Whenever, subsequent to the receipt by the Trustee of any
Board Resolution, Officers' Certificate, Opinion of Counsel or other document or
instrument, a clerical, typographical or other inadvertent or unintentional
error or omission shall be discovered therein, a new document or instrument may
be substituted therefor in corrected form with the same force and effect as if
originally filed in the corrected form and, irrespective of the date or dates of
the actual execution and/or delivery thereof, such substitute document or
instrument shall be deemed to have been executed and/or delivered as of the date
or dates required with respect to the document or instrument for which it is
substituted. Anything in this Indenture to the contrary notwithstanding, if any
such corrective document or instrument indicates that action has been taken by
or at the request of the Company that could not have been taken had the original
document or instrument not contained such error or omission, the action so taken
shall not be invalidated or otherwise rendered ineffective but shall be and
remain in full force and effect, except to the extent that such action was a
result of willful misconduct or bad faith. Without limiting the generality of
the foregoing, any Securities issued under the authority of such defective
document or instrument shall nevertheless be the valid obligations of the
Company entitled to the benefits of this Indenture equally and ratably with all
other Outstanding Securities, except as aforesaid.
SECTION 104. Acts of Holders; Record Dates.
Any request, demand, authorization, direction, notice,
consent, waiver or other action provided or permitted by this Indenture to be
given, made 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; and, except as herein otherwise expressly
provided, such action shall become effective when such instrument or instruments
are delivered to the Trustee and, where it is hereby expressly required, to the
Company. Such instrument or instruments (and the action embodied therein and
evidenced thereby) are herein sometimes referred to as the "Act" of the Holders
signing such instrument or instruments. Proof of execution of any such
instrument or of a writing appointing any such agent shall be sufficient for any
purpose of this Indenture and (subject to Section 601) conclusive in favor of
the Trustee and the Company, if made in the manner provided in this Section.
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 a certificate of a 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 a signer acting in a capacity other than his individual
capacity, such certificate or affidavit shall also constitute sufficient proof
of his authority. The fact and date of the execution of any such instrument or
writing, or the authority of the Person executing the same, may also be proved
in any other manner that the Trustee deems sufficient.
The ownership of Securities shall be proved by the Security
Register.
<PAGE>
Any request, demand, authorization, direction, notice,
consent, waiver or other Act of 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 or
the Company in reliance thereon, whether or not notation of such action is made
upon such Security.
The Company may set any day as a record date for the purpose
of determining the Holders of Outstanding Securities of any series entitled to
give, make or take any request, demand, authorization, direction, notice,
consent, waiver or other action provided or permitted by this Indenture to be
given, made or taken by Holders of Securities of such series; provided that the
Company may not set a record date for, and the provisions of this paragraph
shall not apply with respect to, the giving or making of any notice,
declaration, request or direction referred to in the next paragraph. If any
record date is set pursuant to this paragraph, the Holders of Outstanding
Securities of the relevant series on such record date, and no other Holders,
shall be entitled to take or revoke the relevant action, whether or not such
Holders remain Holders after such record date; provided that no such action
shall be effective hereunder unless taken on or prior to the applicable
Expiration Date by Holders of the requisite principal amount of Outstanding
Securities of such series on such record date. Nothing in this paragraph shall
be construed to prevent the Company from setting a new record date for any
action for which a record date has previously been set pursuant to this
paragraph (whereupon the record date previously set shall automatically and with
no action by any Person be canceled and of no effect), and nothing in this
paragraph shall be construed to render ineffective any action taken by Holders
of the requisite principal amount of Outstanding Securities of the relevant
series on the date such action is taken. Promptly after any record date is set
pursuant to this paragraph, the Company, at its own expense, shall cause notice
of such record date, the proposed action by Holders and the applicable
Expiration Date to be given to the Trustee in writing and to each Holder of
Securities of the relevant series in the manner set forth in Section 106.
The Trustee may set any day as a record date for the purpose
of determining the Holders of Outstanding Securities of any series entitled to
join in the giving or making of (i) any Notice of Default, (ii) any declaration
of acceleration referred to in Section 502, (iii) any request to institute
proceedings referred to in Section 507(2) or (iv) any direction referred to in
Section 512, in each case with respect to Securities of such series. If any
record date is set pursuant to this paragraph, the Holders of Outstanding
Securities of such series on such record date, and no other Holders, shall be
entitled to join in such notice, declaration, request or direction or to revoke
the same, whether or not such Holders remain Holders after such record date;
provided that no such action shall be effective hereunder unless taken on or
prior to the applicable Expiration Date by Holders of the requisite principal
amount of Outstanding Securities of such series on such record date. Nothing in
this paragraph shall be construed to prevent the Trustee from setting a new
record date for any action for which a record date has previously been set
pursuant to this paragraph (whereupon the record date previously set shall
automatically and with no action by any Person be canceled and of no effect),
and nothing in this paragraph shall be construed to render ineffective any
action taken by Holders of the requisite principal amount of Outstanding
Securities of the relevant series on the date such action is taken. Promptly
after any record date is set pursuant to this paragraph, the Trustee, at the
Company's expense, shall cause notice of such record date, the proposed action
by Holders and the applicable Expiration Date to be sent to the Company in
writing and to each Holder of Securities of the relevant series in the manner
set forth in Section 106.
<PAGE>
With respect to any record date set pursuant to this Section,
the party hereto that sets such record dates may designate any day as the
"Expiration Date" and from time to time may change the Expiration Date to any
earlier or later day; provided that no such change shall be effective unless
notice of the proposed new Expiration Date is given to the other party hereto in
writing, and to each Holder of Securities of the relevant series in the manner
set forth in Section 106, on or prior to the existing Expiration Date. If an
Expiration Date is not designated with respect to any record date set pursuant
to this Section, the party hereto which set such record date shall be deemed to
have initially designated the 180th day after such record date as the Expiration
Date with respect thereto, subject to its right to change the Expiration Date as
provided in this paragraph. Notwithstanding the foregoing, no Expiration Date
shall be later than the 180th day after the applicable record date.
Without limiting the foregoing, a Holder entitled hereunder to
take any action hereunder with regard to any particular Security may do so with
regard to all or any part of the principal amount of such Security or by one or
more duly appointed agents each of which may do so pursuant to such appointment
with regard to all or any part of such principal amount.
SECTION 105. Notices, Etc., to Trustee and Company.
Any request, demand, authorization, direction, notice,
consent, waiver or Act of Holders or other document provided or permitted by
this Indenture to be made upon, given or furnished to, or filed with,
(1) the Trustee 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 the Trustee
at its Corporate Trust Office, Attention: Corporate Trustee
Administration, or
(2) the Company by the Trustee or by any Holder shall
be sufficient for every purpose hereunder (unless otherwise
herein expressly provided) if in writing and mailed,
first-class postage prepaid, to the Company addressed to it at
the address of its principal office specified in the first
paragraph of this instrument, attention: Treasurer, or at any
other address previously furnished in writing to the Trustee
by the Company.
<PAGE>
SECTION 106. Notice to Holders; Waiver.
Where this Indenture provides for notice to Holders of any
event, such notice shall be sufficiently given (unless otherwise herein
expressly provided) 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 (if any), and not earlier than the
earliest date (if any), prescribed for the giving of such notice. In any case
where notice to Holders is given by mail, neither the failure to mail such
notice, nor any defect in any notice so mailed, to any particular Holder shall
affect the sufficiency of such notice with respect to other Holders. 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, but such filing shall not be
a condition precedent to the validity of any action taken in reliance upon such
waiver.
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 by
mail, then such notification as shall be made with the approval of the Trustee
shall constitute a sufficient notification for every purpose hereunder.
SECTION 107. Conflict with Trust Indenture Act.
If any provision hereof limits, qualifies or conflicts with a
provision of the Trust Indenture Act that is required under the Trust Indenture
Act to be a part of and govern this Indenture, the latter provision shall
control. If any provision of this Indenture modifies or excludes any provision
of the Trust Indenture Act which may be so modified or excluded, the latter
provision shall be deemed to apply to this Indenture as so modified or to be
excluded, as the case may be.
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
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.
<PAGE>
SECTION 111. Benefits of Indenture.
Nothing in this Indenture or in the Securities, express or
implied, shall give to any Person, other than the parties hereto, their
successors hereunder, the holders of Senior Indebtedness and the Holders, 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 law of the State of New York, without regard to
conflicts of laws principles thereof.
SECTION 113. Legal Holidays.
In any case where any Interest Payment Date, Redemption Date
or Stated Maturity of any Security shall not be a Business Day at any Place of
Payment, then (notwithstanding any other provision of this Indenture or of the
Securities (other than a provision of any Security that specifically states that
such provision shall apply in lieu of this Section)) payment of interest or
principal (and premium, if any) 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.
<PAGE>
ARTICLE TWO
SECURITY FORMS
SECTION 201. Forms Generally.
The Securities of each series shall be in substantially the
form set forth in this Article, or in such other form as shall be established by
or pursuant to a Board Resolution or in one or more indentures supplemental
hereto, in each case with such appropriate insertions, omissions, substitutions
and other variations as are required or permitted by this Indenture, 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 the rules of any
securities exchange or Depositary therefor or as may, consistently herewith, be
determined by the officers executing such Securities, as evidenced by their
execution thereof. If the form of Securities of any series is established by
action taken pursuant to a Board Resolution, a copy of an appropriate record of
such action shall be certified by the Corporate Secretary or an Assistant
Corporate Secretary of the Company and delivered to the Trustee at or prior to
the delivery of the Company Order contemplated by Section 303 for the
authentication and delivery of such Securities.
The definitive Securities shall be printed, lithographed or
engraved on steel engraved borders or may be produced in any other manner, all
as determined by the officers executing such Securities, as evidenced by their
execution of such Securities.
SECTION 202. Form of Face of Security.
[Insert any legend required by the Internal Revenue Code
and the regulations thereunder.]
VIRGINIA ELECTRIC AND POWER COMPANY
------------------
No.________________________ $____________________
CUSIP No._____________
Virginia Electric and Power Company, a corporation duly organized and
existing under the laws of Virginia (herein called the "Company", which term
includes any successor Person under the Indenture hereinafter referred to), for
value received, hereby promises to pay to ______________________, or registered
assigns, the principal sum of ________ Dollars on _________________________ [if
the Security is to bear interest prior to Maturity and interest payment periods
are not extendable, insert - , and to pay interest thereon from __________ or
from the most recent Interest Payment Date to which interest has been paid or
duly provided for, [insert - semi-annually, quarterly, monthly or other
description of the relevant payment period] on [________, ________,] and
__________ in each year, commencing _______________, at the rate of ____% per
annum, until the principal hereof is paid or made available for payment [if
applicable, insert - , provided that any principal and premium, and any such
instalment of interest, that is overdue shall bear interest at the rate of ___%
per annum (to the extent that the payment of such interest shall be legally
enforceable), from the dates such amounts are due until they are paid or made
available for payment, and such interest shall be payable on demand]. The
interest so payable, and punctually paid or duly provided for, on any Interest
Payment Date will, as provided in such Indenture, be paid to the Person in whose
name this Security (or one or more Predecessor Securities) is registered at the
close of business on the Regular Record Date for such interest, which shall be
the [___________________] (whether or not a Business Day), as the case may be,
next preceding such Interest Payment Date. Any such interest not so punctually
paid or duly provided for will forthwith cease to be payable to the Holder on
such Regular Record Date and may either be paid to the Person in whose name this
Security (or one or more Predecessor Securities) is registered at the close of
business on a Special Record Date for the payment of such Defaulted Interest to
be fixed by the Trustee, notice whereof shall be given to Holders of Securities
of this series not less than 10 days prior to such Special Record Date, or be
paid at any time in any other lawful manner not inconsistent with the
requirements of any securities exchange on which the Securities of this series
may be listed, and upon such notice as may be required by such exchange, all as
more fully provided in said Indenture].
<PAGE>
[If the Security is not to bear interest prior to Maturity,
insert - The principal of this Security shall not bear interest except in the
case of a default in payment of principal upon acceleration, upon redemption or
at Stated Maturity and in such case the overdue principal and any overdue
premium shall bear interest at the rate of ____% per annum (to the extent that
the payment of such interest shall be legally enforceable), from the dates such
amounts are due until they are paid or made available for payment. Interest on
any overdue principal or premium shall be payable on demand. Any such interest
on overdue principal or premium which is not paid on demand shall bear interest
at the rate of ____% per annum (to the extent that the payment of such interest
on interest shall be legally enforceable), from the date of such demand until
the amount so demanded is paid or made available for payment. Interest on any
overdue interest shall be payable on demand.]
Payment of the principal of (and premium, if any) and [if
applicable, insert- any such] interest on this Security will be made at the
office or agency of the Company maintained for that purpose in
_________________, in such coin or currency of the United States of America as
at the time of payment is legal tender for payment of public and private debts
[if applicable, insert - ; provided, however, that at the option of the Company
payment of interest may be made by check mailed to the address of the Person
entitled thereto as such address shall appear in the Security Register].
Reference is hereby made to the further provisions of this
Security set forth on the reverse hereof, which further provisions shall for all
purposes have the same effect as if set forth at this place.
Unless the certificate of authentication hereon has been
executed by the Trustee referred to on the reverse hereof by manual signature,
this Security shall not be entitled to any benefit under the Indenture or be
valid or obligatory for any purpose.
<PAGE>
IN WITNESS WHEREOF, the Company has caused this instrument to
be duly executed under its corporate seal.
VIRGINIA ELECTRIC AND POWER COMPANY
By_________________________________
Attest:
- ------------------------------
SECTION 203. Form of Reverse of Security.
This Security is one of a duly authorized issue of securities
of the Company (herein called the "Securities"), issued and to be issued in one
or more series under a Senior Subordinated Indenture, dated as of __________,
____ (herein called the "Indenture", which term shall have the meaning assigned
to it in such instrument), between the Company and The Chase Manhattan Bank, as
Trustee (herein called the "Trustee", which term includes any successor trustee
under the Indenture), and reference is hereby made to the Indenture for a
statement of the respective rights thereunder of the Company, the Trustee, the
holders of Senior Indebtedness and the Holders of the Securities and of the
terms upon which the Securities are, and are to be, authenticated and delivered.
This Security is one of the series designated on the face hereof [if applicable,
insert - , limited in aggregate principal amount to $__________].
[If applicable, insert - The Securities of this series are
subject to redemption upon not less than 30 days notice by mail, [if applicable,
insert - (1) on ____________ in any year commencing with the year _____ and
ending with the year _____ through operation of the sinking fund for this series
at a Redemption Price equal to 100% of the principal amount, and (2)] at any
time [if applicable, insert - on or after ___________, 19__], as a whole or in
part, at the election of the Company, at the following Redemption Prices
(expressed as percentages of the principal amount): If redeemed [if applicable,
insert - on or before _________________, ___%, and if redeemed] during the
12-month period beginning _________ of the years indicated,
Year Redemption Price Year Redemption Price
---- ---------------- ---- ----------------
and thereafter at a Redemption Price equal to ____% of the principal amount,
together in the case of any such redemption [if applicable, insert - (whether
through operation of the sinking fund or otherwise)] with accrued interest to
the Redemption Date, but interest installments whose Stated Maturity is on or
prior to such Redemption Date will be payable to the Holders of such Securities,
or one or more Predecessor Securities, of record at the close of business on the
relevant Record Dates referred to on the face hereof, all as provided in the
Indenture.]
<PAGE>
[If applicable, insert - The Securities of this series are
subject to redemption upon not less than 30 days notice by mail, (1) on
____________ in any year commencing with the year ______ and ending with the
year _____ through operation of the sinking fund for this series at the
Redemption Prices for redemption through operation of the sinking fund
(expressed as percentages of the principal amount) set forth in the table below,
and (2) at any time [if applicable, insert - on or after _____________], as a
whole or in part, at the election of the Company, at the Redemption Prices for
redemption otherwise than through operation of the sinking fund (expressed as
percentages of the principal amount) set forth in the table below: If redeemed
during the 12-month period beginning ________ of the years indicated,
Redemption Price for Redemption Price for
Redemption Through Redemption Otherwise Than
Operation of the Through Operation
Year Sinking Fund of the Sinking Fund
---- ------------ --------------------
and thereafter at a Redemption Price equal to _____% of the principal amount,
together in the case of any such redemption (whether through operation of the
sinking fund or otherwise) with accrued interest to the Redemption Date, but
interest installments whose Stated Maturity is on or prior to such Redemption
Date will be payable to the Holders of such Securities, or one or more
Predecessor Securities, of record at the close of business on the relevant
Record Dates referred to on the face hereof, all as provided in the Indenture.]
[If applicable, insert - Notwithstanding the foregoing, the
Company may not, prior to _________, redeem any Securities of this series as
contemplated by [if applicable, insert - Clause (2) of] the preceding paragraph
as a part of, or in anticipation of, any refunding operation by the application,
directly or indirectly, of moneys borrowed having an interest cost to the
Company (calculated in accordance with generally accepted financial practice) of
less than ____% per annum.]
[If applicable, insert - The sinking fund for this series
provides for the redemption on __________ in each year beginning with the year
_______ and ending with the year ______ of [if applicable, insert - not less
than $___________ ("mandatory sinking fund") and not more than] $____________
aggregate principal amount of Securities of this series. Securities of this
series acquired or redeemed by the Company otherwise than through [if
applicable, insert - mandatory] sinking fund payments may be credited against
subsequent [if applicable, insert - mandatory] sinking fund payments otherwise
required to be made [if applicable, insert - , in the inverse order in which
they become due].]
[If the Security is subject to redemption of any kind, insert
- - - In the event of redemption of this Security in part only, a new Security or
Securities of this series and of like tenor for the unredeemed portion hereof
will be issued in the name of the Holder hereof upon the cancellation hereof.]
<PAGE>
[If applicable, insert - The Securities of this series
are not redeemable prior to Stated Maturity.]
[If applicable, insert - The Indenture contains provisions for
defeasance at any time of [the entire indebtedness of this Security] [or]
[certain restrictive covenants and Events of Default with respect to this
Security] [, in each case] upon compliance with certain conditions set forth in
the Indenture.]
[If the Security is not an Original Issue Discount Security,
insert - If an Event of Default with respect to Securities of this series shall
occur and be continuing, the principal of the Securities of this series may be
declared due and payable in the manner and with the effect provided in the
Indenture.]
[If the Security is an Original Issue Discount Security,
insert - If an Event of Default with respect to Securities of this series shall
occur and be continuing, an amount of principal of the Securities of this series
may be declared due and payable in the manner and with the effect provided in
the Indenture. Such amount shall be equal to [insert formula for determining the
amount]. Upon payment (i) of the amount of principal so declared due and payable
and (ii) of interest on any overdue principal, premium and interest (in each
case to the extent that the payment of such interest shall be legally
enforceable), all of the Company's obligations in respect of the payment of the
principal of and premium and interest, if any, on the Securities of this series
shall terminate.]
The indebtedness represented by the Securities of this series
is, to the extent and in the manner set forth in the Indenture, expressly
subordinated in right of payment to the prior payment in full of all Senior
Indebtedness, as defined in the Indenture, with respect to this series, and this
Security is issued subject to such provisions, and each Holder of this Security,
by acceptance thereof, agrees to and shall be bound by such provisions and
authorizes and directs the Trustee in his, her or its behalf to take such action
as may be necessary or appropriate to effectuate the subordination as provided
in the Indenture and appoints the Trustee his, her or its attorney-in-fact, as
the case may be, for any and all such purposes.
The Indenture permits, with certain exceptions as therein
provided, the amendment thereof and the modification of the rights and
obligations of the Company and the rights of the Holders of the Securities of
each series to be affected under the Indenture at any time by the Company and
the Trustee with the consent of the Holders of a majority in principal amount of
the Securities at the time Outstanding of each series to be affected. The
Indenture also contains provisions permitting the Holders of specified
percentages in principal amount of the Securities of each series at the time
Outstanding, on behalf of the Holders of all Securities of such series, to waive
compliance by the Company with certain provisions of the Indenture and certain
past defaults under the Indenture and their consequences. Any such consent or
waiver by the Holder of this Security shall be conclusive and binding upon such
Holder and upon all future Holders of this Security and of any Security issued
upon the registration of transfer hereof or in exchange therefor or in lieu
hereof, whether or not notation of such consent or waiver is made upon this
Security.
<PAGE>
As provided in and subject to the provisions of the Indenture,
the Holder of this Security shall not have the right to institute any proceeding
with respect to the Indenture or for the appointment of a receiver or trustee or
for any other remedy thereunder, unless such Holder shall have previously given
the Trustee written notice of a continuing Event of Default with respect to the
Securities of this series, the Holders of not less than a majority in principal
amount of the Securities of this series at the time Outstanding shall have made
written request to the Trustee to institute proceedings in respect of such Event
of Default as Trustee and offered the Trustee reasonable indemnity, and the
Trustee shall not have received from the Holders of a majority in principal
amount of Securities of this series at the time Outstanding a direction
inconsistent with such request, and shall have failed to institute any such
proceeding for 60 days after receipt of such notice, request and offer of
indemnity. The foregoing shall not apply to any suit instituted by the Holder of
this Security for the enforcement of any payment of principal hereof or any
premium or interest hereon on or after the respective due dates expressed or
provided for herein.
No reference herein to the Indenture and no provision of this
Security or of the Indenture shall alter or impair the obligation of the
Company, which is absolute and unconditional, to pay the principal of and any
premium and interest on this Security at the times, place and rate, and in the
coin or currency, herein prescribed.
As provided in the Indenture and subject to certain
limitations therein set forth, the transfer of this Security is registrable in
the Security Register, upon surrender of this Security for registration of
transfer at the office or agency of the Company in any place where the principal
of and any premium and interest on this Security are payable, duly endorsed by,
or accompanied by a written instrument of transfer in form satisfactory to the
Company and the Security Registrar duly executed by, the Holder hereof or his
attorney duly authorized in writing, and thereupon one or more new Securities of
this series and of like tenor, of authorized denominations and for the same
aggregate principal amount, will be issued to the designated transferee or
transferees.
The Securities of this series are issuable only in registered
form without coupons in denominations of [$1,000] and any integral multiple
thereof. As provided in the Indenture and subject to certain limitations therein
set forth, Securities of this series are exchangeable for a like aggregate
principal amount of Securities of this series at the same Stated Maturity and of
like tenor of a different authorized denomination, as requested by the Holder
upon surrender of the Note or Notes to be exchanged at the office or agency of
the Company.
No service charge shall be made for any such registration of
transfer or exchange, but the Company may require payment of a sum sufficient to
cover any tax or other governmental charge payable in connection therewith.
Prior to due presentment of this Security for registration of
transfer, the Company, the Trustee and any agent of the Company or the Trustee
may treat the Person in whose name this Security is registered as the owner
hereof for all purposes, whether or not this Security be overdue, and neither
the Company, the Trustee nor any such agent shall be affected by notice to the
contrary.
<PAGE>
All terms used in this Security which are defined in the
Indenture shall have the meanings assigned to them in the Indenture.
SECTION 204. Form of Legend for Global Securities.
Unless otherwise specified as contemplated by Section 301 for
the Securities evidenced thereby, every Global Security authenticated and
delivered hereunder shall bear a legend in substantially the following form:
THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE
HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A
NOMINEE THEREOF. THIS SECURITY MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A
SECURITY REGISTERED, AND NO TRANSFER OF THIS SECURITY IN WHOLE OR IN PART MAY BE
REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITARY OR A NOMINEE
THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.
SECTION 205. Form of Trustee's Certificate of Authentication.
The Trustee's certificate of authentication shall be in
substantially the following form:
This is one of the Securities of the series designated therein
referred to in the within-mentioned Indenture.
THE CHASE MANHATTAN BANK,
As Trustee
By_____________________________
Authorized Officer
<PAGE>
ARTICLE THREE
THE SECURITIES
SECTION 301. Amount Unlimited; Issuable in Series.
The aggregate principal amount of Securities which may be
authenticated and delivered under this Indenture is unlimited.
The Securities may be issued in one or more series, with the
Securities issued hereunder being expressly subordinated in right of payment, to
the extent and in the manner set forth in Article Fourteen, to all Senior
Indebtedness of the Company. There shall be established in or pursuant to a
Board Resolution and, subject to Section 303, set forth, or determined in the
manner provided, in an Officers' Certificate, or established in one or more
indentures supplemental hereto, prior to the issuance of Securities of any
series,
(1) the title of the Securities of the series (which
shall distinguish the Securities of the series from Securities
of any other series);
(2) any limit upon the aggregate principal amount of
the Securities of the series that may be authenticated and
delivered under this Indenture (except for Securities
authenticated and delivered upon registration of transfer of,
or in exchange for, or in lieu of, other Securities of the
series pursuant to Section 304, 305, 306, 906 or 1106 and
except for any Securities which, pursuant to Section 303, are
deemed never to have been authenticated and delivered
hereunder);
(3) the Person to whom any interest on a Security of
the series shall be payable, if other than 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;
(4) the date or dates on which the principal of any
Securities of the series is payable or the method by which
such date or dates shall be determined;
(5) the rate or rates at which any Securities of the
series shall bear interest, if any, or the method by which
such rate or rates shall be determined; the date or dates from
which any such interest shall accrue; the Interest Payment
Dates on which any such interest shall be payable; the manner
(if any) of determination of such Interest Payment Dates; and
the Regular Record Date, if any, for any such interest payable
on any Interest Payment Date;
(6) the right, if any, to extend the interest payment
periods and the duration of such extension;
<PAGE>
(7) the place or places where the principal of and
any premium and interest on any Securities of the series shall
be payable;
(8) the period or periods within which, or the date
or dates on which, the price or prices at which and the terms
and conditions upon which any Securities of the series may be
redeemed, in whole or in part, at the option of the Company
and, if other than by a Board Resolution, the manner in which
any election by the Company to redeem the Securities shall be
evidenced;
(9) the obligation, if any, of the Company to redeem
or purchase any Securities of the series pursuant to any
sinking fund, purchase fund or analogous provisions or at the
option of the Holder thereof and the period or periods within
which, the price or prices at which and the terms and
conditions upon which any Securities of the series shall be
redeemed or purchased, in whole or in part, pursuant to such
obligation;
(10) if other than denominations of $1,000 and any
integral multiple thereof, the denominations in which any
Securities of the series shall be issuable;
(11) if the amount of principal of or any premium or
interest on any Securities of the series may be determined
with reference to an index or pursuant to a formula, the
manner in which such amounts shall be determined;
(12) if other than the currency of the United States
of America, the currency, currencies or currency units in
which the principal of or any premium or interest on any
Securities of the series shall be payable and the manner of
determining the equivalent thereof in the currency of the
United States of America for any purpose, including for
purposes of the definition of "Outstanding" in Section 101;
(13) if the principal of or any premium or interest
on any Securities of the series is to be payable, at the
election of the Company or the Holder thereof, in one or more
currencies or currency units other than that or those in which
such Securities are stated to be payable, the currency,
currencies or currency units in which the principal of or any
premium or interest on such Securities as to which such
election is made shall be payable, the periods within which
and the terms and conditions upon which such election is to be
made and the amount so payable (or the manner in which such
amount shall be determined);
(14) if other than the entire principal amount
thereof, the portion of the principal amount of any Securities
of the series that shall be payable upon declaration of
acceleration of the Maturity thereof pursuant to Section 502;
(15) if the principal amount payable at the Stated
Maturity of any Securities of the series will not be
determinable as of any one or more dates prior to the Stated
Maturity, the amount that shall be deemed to be the principal
amount of such Securities as of any such date for any purpose
thereunder or hereunder, including the principal amount
thereof which shall be due and payable upon any Maturity other
than the Stated Maturity or which shall be deemed to be
Outstanding as of any date prior to the Stated Maturity (or,
in any such case, the manner in which such amount deemed to be
the principal amount shall be determined);
<PAGE>
(16) if either or both of Sections 1302 and 1303
do not apply to any Securities of the series;
(17) if applicable, that any Securities of the series
shall be issuable in whole or in part in the form of one or
more Global Securities and, in such case, the respective
Depositary or Depositaries for such Global Securities, the
form of any legend or legends that shall be borne by any such
Global Security in addition to or in lieu of that set forth in
Section 204 and any circumstances in addition to or in lieu of
those set forth in Clause (2) of the last paragraph of Section
305 in which any such Global Security may be exchanged in
whole or in part for Securities registered, and any transfer
of such Global Security in whole or in part may be registered,
in the name or names of Persons other than the Depositary for
such Global Security or a nominee thereof;
(18) any addition, modification or deletion of any
Events of Default or covenants provided with respect to any
Securities of the series and any change in the right of the
Trustee or the requisite Holders of such Securities to declare
the principal amount thereof due and payable pursuant to
Section 502;
(19) any addition to or change in the covenants set
forth in Article Ten that applies to Securities of the series;
(20) the subordination of the Securities of such
series to any other indebtedness of the Company, including,
without limitation, the Securities of any other series; and
(21) any other terms of the series.
All Securities of any one series shall be substantially
identical except as to denomination and except as may otherwise be provided in
or pursuant to the Board Resolution referred to above and (subject to Section
303) set forth, or determined in the manner provided, in the Officers'
Certificate referred to above or in any such indenture supplemental hereto.
If any of the terms of the series are established by action
taken pursuant to a Board Resolution, a copy of an appropriate record of such
action shall be certified by the Corporate Secretary or an Assistant Corporate
Secretary of the Company and delivered to the Trustee at or prior to the
delivery of the Officers' Certificate setting forth the terms or the manner of
determining the terms of the series.
<PAGE>
With respect to Securities of a series offered in a Periodic
Offering, the Board Resolution (or action taken pursuant thereto), Officers'
Certificate or supplemental indenture referred to above may provide general
terms or parameters for Securities of such series and provide either that the
specific terms of particular Securities of such series shall be specified in a
Company Order or that such terms shall be determined by the Company in
accordance with other procedures specified in a Company Order as contemplated by
the third paragraph of Section 303.
Notwithstanding Section 301(2) herein and unless otherwise
expressly provided with respect to a series of Securities, the aggregate
principal amount of a series of Securities may be increased and additional
Securities of such series may be issued up to the maximum aggregate principal
amount authorized with respect to such series as increased.
SECTION 302. Denominations.
The Securities of each series shall be issuable only in fully
registered form without coupons and only in such denominations as shall be
specified as contemplated by Section 301. In the absence of any such specified
denomination with respect to the Securities of any series, the Securities of
such series shall be issuable in denominations of $1,000 and any integral
multiple thereof.
SECTION 303. Execution, Authentication, Delivery and Dating.
The Securities shall be executed on behalf of the Company by
its Chairman of the Board, its President or one of its Vice Presidents, under
its corporate seal reproduced thereon attested by its Corporate Secretary or one
of its Assistant Corporate Secretaries. The signature of any of these officers
on the Securities may be manual or facsimile.
Securities 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
executed by the Company to the Trustee for authentication, together with a
Company Order for the authentication and delivery of such Securities, and the
Trustee in accordance with the Company Order shall authenticate and deliver such
Securities, provided, however, that in the case of Securities offered in a
Periodic Offering, the Trustee shall authenticate and deliver such Securities
from time to time in accordance with such other procedures (including, without
limitation, the receipt by the Trustee of oral or electronic instructions from
the Company or its duly authorized agents, promptly confirmed in writing)
acceptable to the Trustee as may be specified by or pursuant to a Company Order
delivered to the Trustee prior to the time of the first authentication of
Securities of such series. If the form or terms of the Securities of the series
have been established by or pursuant to one or more Board Resolutions as
permitted by Sections 201 and 301, in authenticating such Securities, and
accepting the additional responsibilities under this Indenture in relation to
such Securities, the Trustee shall be entitled to receive, and (subject to
Section 601) shall be fully protected in relying upon, an Opinion of Counsel
stating,
<PAGE>
(1) if the form or forms of such Securities have been
established by or pursuant to Board Resolution as permitted by
Section 201, that such form or forms have been established in
conformity with the provisions of this Indenture;
(2) if the terms of such Securities have been, or in
the case of Securities of a series offered in a Periodic
Offering, will be, established by or pursuant to Board
Resolution as permitted by Section 301, that such terms have
been, or in the case of Securities of a series offered in a
Periodic Offering, will be, established in conformity with the
provisions of this Indenture, subject, in the case of
Securities of a series offered in a Periodic Offering, to any
conditions specified in such Opinion of Counsel; and
(3) that such Securities, when authenticated and
delivered by the Trustee and issued by the Company in the
manner and subject to any conditions specified in such Opinion
of Counsel, will constitute valid and legally binding
obligations of the Company enforceable in accordance with
their terms, subject to bankruptcy, insolvency, fraudulent
transfer, reorganization, moratorium and similar laws of
general applicability relating to or affecting creditors'
rights and to general equity principles.
If such form or terms have been so established, the Trustee shall not be
required to authenticate such Securities if the issue of such Securities
pursuant to this Indenture will affect the Trustee's own rights, duties or
immunities under the Securities and this Indenture or otherwise in a manner
which is not reasonably acceptable to the Trustee.
Notwithstanding the provisions of Section 301 and of the
preceding paragraph, if all Securities of a series are not to be originally
issued at one time, it shall not be necessary to deliver the Officers'
Certificate otherwise required pursuant to Section 301 or the Company Order and
Opinion of Counsel otherwise required pursuant to such preceding paragraph at or
prior to the 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.
With respect to Securities of a series offered in a Periodic
Offering, the Trustee may rely, as to the authorization by the Company of any of
such Securities, the form and terms thereof and the legality, validity, binding
effect and enforceability thereof, upon the Opinion of Counsel and the other
documents delivered pursuant to Sections 201 and 301 and this Section, as
applicable, in connection with the first authentication of Securities of such
series.
Each Security shall be dated the date of its authentication.
<PAGE>
No Security 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 executed by the Trustee by manual signature of an authorized officer, and
such certificate upon any Security shall be conclusive evidence, and the only
evidence, that such Security has been duly authenticated and delivered
hereunder. Notwithstanding the foregoing, if any Security shall have been
authenticated and delivered hereunder but never issued and sold by the Company,
and the Company shall deliver such Security to the Trustee for cancellation as
provided in Section 309, for all purposes of this Indenture such Security shall
be deemed never to have been authenticated and delivered hereunder and shall
never be entitled to the benefits of this Indenture.
SECTION 304. Temporary Securities.
Pending the preparation of definitive Securities of any
series, the Company may execute, and upon Company Order the Trustee shall
authenticate and deliver, temporary Securities which are printed, lithographed,
typewritten, mimeographed or otherwise produced, in any authorized denomination,
substantially of the tenor of the definitive Securities in lieu of which they
are issued 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.
If temporary Securities of any series are issued, the Company
will cause definitive Securities of that series to be prepared without
unreasonable delay. After the preparation of definitive Securities of such
series, the temporary Securities of such series shall be exchangeable for
definitive Securities of such series upon surrender of the temporary Securities
of such series 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 series, the Company shall execute
and the Trustee shall authenticate and deliver in exchange therefor one or more
definitive Securities of the same series, of any authorized denominations and of
like tenor and aggregate principal amount. Until so exchanged, the temporary
Securities of any series shall in all respects be entitled to the same benefits
under this Indenture as definitive Securities of such series and tenor.
SECTION 305. Registration, Registration of Transfer and Exchange.
The Company shall cause to be kept at the Corporate Trust
Office of the Trustee a register (the register maintained in such office or in
any other office or agency of the Company in a Place of Payment 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 Securities and of transfers of Securities. The Trustee is hereby
appointed "Security Registrar" for the purpose of registering Securities and
transfers of Securities as herein provided.
<PAGE>
Upon surrender for registration of transfer of any Security of
a series at the office or agency of the Company in a Place of Payment for that
series, the Company shall execute, and the Trustee shall authenticate and
deliver, in the name of the designated transferee or transferees, one or more
new Securities of the same series, of any authorized denominations and of like
tenor and aggregate principal amount.
At the option of the Holder, Securities of any series may be
exchanged for other Securities of the same series, of any authorized
denominations and of like tenor and aggregate principal amount, upon surrender
of the Securities to be exchanged at such office or agency. Whenever any
Securities are so surrendered for exchange, the Company shall execute, and the
Trustee shall authenticate and deliver, the Securities which the Holder making
the exchange is entitled to receive.
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 for exchange shall (if so required by the Company or the Trustee) be
duly endorsed, or be accompanied by a written instrument of transfer in form
satisfactory to the Company and the Security Registrar 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 1106 not involving any transfer.
If the Securities of any series (or of any series and
specified tenor) are to be redeemed, the Company shall not be required (A) to
issue, register the transfer of or exchange any Securities of that series (or of
that series and specified tenor, as the case may be) during a period beginning
at the opening of business 15 days before the day of the mailing of a notice of
redemption of any such Securities selected for redemption and ending at the
close of business on the day of such mailing, or (B) to register the transfer of
or exchange any Security so selected for redemption in whole or in part, except
the unredeemed portion of any Security being redeemed in part.
The provisions of Clauses (1), (2), (3) and (4) below shall
apply only to Global Securities:
(1) Each Global Security authenticated under this
Indenture shall be registered in the name of the Depositary
designated for such Global Security or a nominee thereof and
delivered to such Depositary or a nominee thereof or custodian
therefor, and each such Global Security shall constitute a
single Security for all purposes of this Indenture.
<PAGE>
(2) Notwithstanding any other provision in this
Indenture, no Global Security may be exchanged in whole or in
part for Securities registered, and no transfer of a Global
Security in whole or in part may be registered, in the name of
any Person other than the Depositary for such Global Security
or a nominee thereof unless (A) such Depositary has notified
the Company that it is unwilling or unable to continue as
Depositary for such Global Security and a successor Depositary
has not been appointed by the Company within 90 days of
receipt by the Company of such notification or (B) there shall
exist such circumstances, if any, in addition to or in lieu of
the foregoing as have been specified for this purpose as
contemplated by Section 301. Notwithstanding the foregoing,
the Company may at any time in its sole discretion determine
that Securities issued in the form of a Global Security shall
no longer be represented in whole or in part by such Global
Security, and the Trustee, upon receipt of a Company Order
therefor, shall authenticate and deliver definitive Securities
in exchange in whole or in part for such Global Security.
(3) Subject to Clause (2) above, any exchange or
transfer of a Global Security for other Securities may be made
in whole or in part, and all Securities issued in exchange for
or upon transfer of a Global Security or any portion thereof
shall be registered in such names as the Depositary for such
Global Security shall direct.
(4) Every Security authenticated and delivered upon
registration of transfer of, or in exchange for or in lieu of,
a Global Security or any portion thereof, whether pursuant to
this Section, Section 304, 306, 906 or 1106 or otherwise,
shall be authenticated and delivered in the form of, and shall
be, a Global Security, unless such Security is registered in
the name of a Person other than the Depositary for such Global
Security or a nominee thereof.
None of the Company, the Trustee, any Paying Agent or the Security
Registrar will have any responsiblity or liability for any aspect of the records
relating to or payments made on account of beneficial ownership interests in a
Global Security or for maintaining, supervising or reviewing any records
relating to such beneficial ownership interests.
SECTION 306. Mutilated, Destroyed, Lost and Stolen Securities.
If any mutilated Security is surrendered to the Trustee, the
Company shall execute and the Trustee shall authenticate and deliver in exchange
therefor a new Security of the same series and of like tenor and principal
amount and bearing a number not contemporaneously outstanding.
If there shall be delivered to the Company and the Trustee (i)
evidence to their satisfaction of the destruction, loss or theft of any Security
and (ii) 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 the Trustee that such Security has been acquired by a bona fide
purchaser, the Company shall execute and the Trustee shall authenticate and
deliver, in lieu of any such destroyed, lost or stolen Security, a new Security
of the same series and of like tenor and principal amount and bearing a number
not contemporaneously outstanding.
<PAGE>
In case any such mutilated, destroyed, lost or stolen Security
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.
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 the fees and expenses of the Trustee) connected therewith.
Every new Security of any series issued pursuant to this
Section in lieu of any destroyed, lost or stolen Security shall constitute an
original additional contractual obligation of the Company, whether or not the
destroyed, lost or stolen Security shall be at any time enforceable by anyone,
and shall be entitled to all the benefits of this Indenture equally and
proportionately with any and all other Securities of that series 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.
SECTION 307. Payment of Interest; Interest Rights Preserved.
Except as otherwise provided as contemplated by Section 301
with respect to any series of Securities, interest on any Security that is
payable, and is punctually paid or duly provided for, on any Interest Payment
Date shall 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.
Except as otherwise provided as contemplated by Section 301
with respect to any series of Securities, any interest on any Security of any
series that 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 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:
<PAGE>
(1) The Company may elect to make payment of any
Defaulted Interest to the Persons in whose names the
Securities of such 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 in writing of the amount of
Defaulted Interest proposed to be paid on each Security of
such series and the date of the proposed payment, and at the
same time the Company shall deposit with the Trustee an amount
of money equal to the aggregate amount proposed to be paid in
respect of such Defaulted Interest or shall make arrangements
satisfactory to the Trustee for such deposit prior to the date
of the proposed payment, such money when deposited to be held
in trust for the benefit of the Persons entitled to such
Defaulted Interest as in this Clause provided. Thereupon the
Trustee shall fix a Special Record Date for the payment of
such Defaulted Interest which shall be not 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 the
Trustee of the notice of the proposed payment. The Trustee
shall promptly notify the Company of such Special Record Date
and, in the name and at the expense of the Company, shall
cause notice of the proposed payment of such Defaulted
Interest and the Special Record Date therefor to be given to
each Holder of Securities of such series in the manner set
forth in Section 106, not less than 10 days prior to such
Special Record Date. Notice of the proposed payment of such
Defaulted Interest and the Special Record Date therefor having
been so mailed, such Defaulted Interest shall be paid to the
Persons in whose names the Securities of such series (or their
respective Predecessor Securities) are registered at the close
of business 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 the Securities of any series in any other lawful
manner not inconsistent with the requirements of any
securities exchange on which such Securities may be listed,
and upon such notice as may be required by such exchange, if,
after notice given by the Company to the Trustee of the
proposed payment pursuant to this Clause, such manner of
payment shall be deemed practicable by the Trustee.
Subject to the foregoing provisions of this Section, 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 Security for registration of
transfer, the Company, the Trustee and any agent of the Company or the Trustee
may treat the Person in whose name such Security is registered as the owner of
such Security for the purpose of receiving payment of principal of and any
premium and (subject to Section 307) any interest on such Security and for all
other purposes whatsoever, whether or not such Security be overdue, and neither
the Company, the Trustee nor any agent of the Company or the Trustee shall be
affected by notice to the contrary.
<PAGE>
SECTION 309. Cancellation.
All Securities surrendered for payment, redemption,
registration of transfer or exchange or for credit against any sinking fund
payment shall, if surrendered to any Person other than the Trustee, be delivered
to the Trustee and shall be promptly canceled by it. The Company may at any time
deliver to the Trustee for cancellation any Securities previously authenticated
and delivered hereunder that the Company may have acquired in any manner
whatsoever, and may deliver to the Trustee (or to any other Person for delivery
to the Trustee) for cancellation any Securities previously authenticated
hereunder which the Company has not issued and sold, and all Securities so
delivered shall be promptly canceled by the Trustee. No Securities shall be
authenticated in lieu of or in exchange for any Securities canceled as provided
in this Section, except as expressly permitted by this Indenture. All canceled
Securities held by the Trustee shall be disposed of as directed by a Company
Order; provided, however, that the Trustee shall not be required to destroy such
canceled Securities.
SECTION 310. Computation of Interest.
Except as otherwise specified as contemplated by Section 301
for Securities of any series, interest on the Securities of each series shall be
computed on the basis of a 360-day year of twelve 30-day months.
SECTION 311. CUSIP Numbers.
The Company in issuing the Securities may use "CUSIP" numbers
(if then generally in use), and, if so, the Trustee shall use "CUSIP" numbers in
notices of redemption as a convenience to Holders; provided that any such notice
may state that no representation is made as to the correctness of such numbers
either as printed on the Securities or as contained in any notice of a
redemption and that reliance may be placed only on the other identification
numbers printed on the Securities, and any such redemption shall not be affected
by any defect in or omission of such numbers.
<PAGE>
ARTICLE FOUR
SATISFACTION AND DISCHARGE
SECTION 401. Satisfaction and Discharge of Indenture.
This Indenture shall upon Company Request cease to be of
further effect (except as to any surviving rights of registration of transfer or
exchange of Securities herein expressly provided for), and the Trustee, at the
expense of the Company, shall execute proper instruments acknowledging
satisfaction and discharge of this Indenture, when
(1) either
(A) all Securities theretofore authenticated
and delivered (other than (i) Securities that have
been destroyed, lost or stolen and that have been
replaced or paid as provided in Section 306 and (ii)
Securities for whose payment money has theretofore
been deposited in trust or segregated and held in
trust by the Company and thereafter repaid to the
Company or discharged from such trust, as provided in
Section 1003) have been delivered to the Trustee for
cancellation; or
(B) all such Securities not theretofore
delivered to the Trustee for cancellation
(i) have become due and payable, or
(ii) will become due and payable at
their Stated Maturity within one year, or
(iii) are to be called for
redemption within one year under
arrangements satisfactory to the Trustee for
the giving of notice of redemption by the
Trustee in the name, and at the expense, of
the Company,
and the Company, in the case of (i), (ii) or (iii) above, has
deposited or caused to be deposited with the Trustee as funds
in trust for the purpose an amount sufficient to pay and
discharge the entire indebtedness on such Securities not
theretofore delivered to the Trustee for cancellation, for
principal and any premium and interest to the date of such
deposit (in the case of Securities that have become due and
payable) or to the Stated Maturity or Redemption Date, as the
case may be;
<PAGE>
(2) the Company has paid or caused to be paid all
other sums payable hereunder by the Company; and
(3) the Company has delivered to the Trustee an
Officers' Certificate and an Opinion of Counsel, each stating
that all conditions precedent herein provided for relating to
the satisfaction and discharge of this Indenture have been
complied with.
Notwithstanding the satisfaction and discharge of this
Indenture, the obligations of the Company to the Trustee under Section 607, the
obligations of the Company to any Authenticating Agent under Section 614 and, if
money shall have been deposited with the Trustee pursuant to subclause (B) of
clause (1) of this Section, the obligations of the Trustee under Section 402 and
the last paragraph of Section 1003 shall survive.
SECTION 402. Application of Trust Money.
Subject to the provisions of the last paragraph of Section
1003, all money deposited with the Trustee pursuant to Section 401 shall be held
in trust and applied by it, in accordance with the provisions of the Securities
and this Indenture, to the payment, either directly or through any Paying Agent
(including the Company acting as its own Paying Agent) as the Trustee may
determine, to the Persons entitled thereto, of the principal and any premium and
interest for whose payment such money has been deposited with the Trustee.
<PAGE>
ARTICLE FIVE
REMEDIES
SECTION 501. Events of Default.
"Event of Default", wherever used herein with respect to
Securities of any series, means any one of the following events (whatever the
reason for such Event of Default and whether it shall be voluntary or
involuntary or be effected by operation of law or Article Fourteen or pursuant
to any judgment, decree or order of any court or any order, rule or regulation
of any administrative or governmental body), unless it is inapplicable to a
particular series or is specifically deleted or modified in the Board Resolution
(or action taken pursuant thereto), Officers' Certificate or supplemental
indenture under which such series of Securities is issued or has been deleted or
modified in an indenture supplemental hereto:
(1) default in the payment of any interest upon any
Security of that series when it becomes due and payable, and
continuance of such default for a period of 60 days; or
(2) default in the payment of the principal of or any
premium on any Security of that series at its Maturity; or
(3) default in the making of any sinking fund
payment, when and as due by the terms of a Security of that
series, and continuance of such default for a period of 60
days; or
(4) default in the performance, or breach, of any
covenant of the Company in this Indenture (other than a
covenant a default in whose performance or whose breach is
elsewhere in this Section specifically dealt with or which has
expressly been included in this Indenture solely for the
benefit of series of Securities other than that series), and
continuance of such default or breach for a period of 90 days
after there has been given, by registered or certified mail,
to the Company by the Trustee or to the Company and the
Trustee by the Holders of at least 33% 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, unless the Trustee, or the Trustee and the Holders
of a principal amount of Securities of such series not less
than the principal amount of Securities the Holders of which
gave such notice, as the case may be, shall agree in writing
to an extension of such period prior to its expiration;
provided, however, that the Trustee, or the Trustee and the
Holders of such principal amount of Securities of such series,
as the case may be, shall be deemed to have agreed to an
extension of such period if corrective action is initiated by
the Company within such period and is being diligently
pursued; or
<PAGE>
(5) the entry by a court having jurisdiction in the
premises of (A) a decree or order for relief in respect of the
Company in an involuntary case or proceeding under any
applicable Federal or State bankruptcy, insolvency,
reorganization or other similar law or (B) a decree or order
adjudging the Company a bankrupt or insolvent, or approving as
properly filed a petition seeking reorganization, arrangement,
adjustment or composition of or in respect of the Company
under any applicable Federal or State law, or appointing a
custodian, receiver, liquidator, assignee, trustee,
sequestrator or other similar official of the Company or of
any substantial part of its property, or ordering the winding
up or liquidation of its affairs, and the continuance of any
such decree or order for relief or any such other decree or
order unstayed and in effect for a period of 90 consecutive
days; or
(6) the commencement by the Company of a voluntary
case or proceeding under any applicable Federal or State
bankruptcy, insolvency, reorganization or other similar law or
of any other case or proceeding to be adjudicated a bankrupt
or insolvent, or the consent by it to the entry of a decree or
order for relief in respect of the Company in an involuntary
case or proceeding under any applicable Federal or State
bankruptcy, insolvency, reorganization or other similar law or
to the commencement of any bankruptcy or insolvency case or
proceeding against it, or the filing by it of a petition or
answer or consent seeking reorganization or relief under any
applicable Federal or State law, or the consent by it to the
filing of such petition or to the appointment of or taking
possession by a custodian, receiver, liquidator, assignee,
trustee, sequestrator or other similar official of the Company
or of any substantial part of its property, or the making by
it of an assignment for the benefit of creditors, or the
admission by it in writing of its inability to pay its debts
generally as they become due, or the authorization of any such
action by the Board of Directors; or
(7) any other Event of Default provided with respect
to Securities of that series.
SECTION 502. Acceleration of Maturity; Rescission and Annulment.
If an Event of Default with respect to Securities of any
series at the time Outstanding occurs and is continuing, then in every such case
the Trustee or the Holders of not less than 33% in principal amount of the
Outstanding Securities of that series may declare the principal amount of all
the Securities of that series (or, if any Securities of that series are Original
Issue Discount Securities, such portion of the principal amount of such
Securities as may be specified by the terms thereof) to be due and payable
immediately, by a notice in writing to the Company (and to the Trustee if given
by Holders), and upon any such declaration such principal amount (or specified
amount) shall become immediately due and payable.
<PAGE>
At any time after such a declaration of acceleration with
respect to Securities of any series has been made and before a judgment or
decree for payment of the money due has been obtained by the Trustee as
hereinafter in this Article provided, such declaration and its consequences
shall, without further act, be deemed to have been rescinded and annulled, if
(1) the Company has paid or deposited with the
Trustee a sum sufficient to pay
(A) all overdue interest on all
Securities of that series,
(B) the principal of (and premium, if any,
on) any Securities of that series that have become
due otherwise than by such declaration of
acceleration and any interest thereon at the rate or
rates prescribed therefor in such Securities,
(C) to the extent that payment of such
interest is lawful, interest upon overdue interest at
the rate or rates prescribed therefor in such
Securities, and
(D) all sums paid or advanced by the Trustee
hereunder and the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents
and counsel;
and
(2) all Events of Default with respect to Securities
of that series, other than the non-payment of the principal of
Securities of that series which have become due solely by such
declaration of 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 a default pursuant to Section
501(1) or 501 (2) has occurred with respect to the Securities of any series, the
Company will, upon demand of the Trustee, pay to it, for the benefit of the
Holders of such Securities, the whole amount then due and payable on such
Securities for principal and any premium and interest and, to the extent that
payment of such interest shall be legally enforceable, interest on any overdue
principal and premium and on any overdue interest, at the rate or rates
prescribed therefor in such 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
the Trustee, its agents and counsel.
If an Event of Default with respect to Securities of any
series occurs and is continuing, the Trustee may in its discretion proceed to
protect and enforce its rights and the rights of the Holders of Securities of
such series by such appropriate judicial proceedings as the 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.
<PAGE>
SECTION 504. Trustee May File Proofs of Claim.
In case of any judicial proceeding relative to the Company (or
any other obligor upon the Securities), its property or its creditors, the
Trustee shall be entitled and empowered, by intervention in such proceeding or
otherwise, to take any and all actions authorized under the Trust Indenture Act
in order to have claims of the Holders and the Trustee allowed in any such
proceeding. In particular, the Trustee shall be authorized to collect and
receive any moneys or other property payable or deliverable on any such claims
and to distribute the same; and any custodian, receiver, assignee, trustee,
liquidator, sequestrator or other similar official in any such judicial
proceeding is hereby authorized by each Holder to make such payments to the
Trustee and, in the event that the Trustee shall consent to the making of such
payments directly to the Holders, to pay to the Trustee any amount due it for
the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel, and any other amounts due the Trustee under
Section 607.
No provision of this Indenture shall be deemed to authorize
the Trustee to authorize or consent to or accept or adopt on behalf of any
Holder any plan of reorganization, arrangement, adjustment or composition
affecting the Securities or the rights of any Holder thereof or to authorize the
Trustee to vote in respect of the claim of any Holder in any such proceeding;
provided, however, that the Trustee may, on behalf of the Holders, vote for the
election of a trustee in bankruptcy or similar official and be a member of a
creditors' or other similar committee.
SECTION 505. Trustee May Enforce Claims Without Possession of Securities.
All rights of action and claims under this Indenture or the
Securities may be prosecuted and enforced by the Trustee without the possession
of any of the Securities or the production thereof in any proceeding relating
thereto, and any such proceeding instituted by the Trustee shall be brought in
its own name as trustee of an express trust, and any recovery of judgment shall,
after provision for the payment of the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, be for the
ratable benefit of the Holders of the Securities in respect of which such
judgment has been recovered.
SECTION 506. Application of Money Collected.
Any money collected by the Trustee pursuant to this Article
shall, subject (in the case of clauses SECOND and THIRD below) to the
subordination provisions hereof, be applied in the following order, at the date
or dates fixed by the Trustee and, in case of the distribution of such money on
account of principal or any premium or interest, upon presentation of the
Securities and the notation thereon of the payment if only partially paid and
upon surrender thereof if fully paid:
<PAGE>
FIRST: To the payment of all amounts due the Trustee under
Section 607;
SECOND: To the payment of the amounts then due and unpaid for
principal of and any premium and interest on the 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 for principal and any premium and interest,
respectively; and
THIRD: To the payment of the balance, if any, to the
Company or any other Person or Persons legally entitled
thereto.
SECTION 507. Limitation on Suits.
No Holder of any Security of any series 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) such Holder has previously given written notice
to the Trustee of a continuing Event of Default with respect
to the Securities of that series;
(2) the Holders of not less than a majority in
principal amount of the Outstanding Securities of that series
shall have made written request to the Trustee 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 the
Trustee reasonable indemnity against the costs, expenses and
liabilities to be incurred in compliance with such request;
(4) the 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 the 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 of such Holders 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 of
such Holders, or to obtain or to seek to obtain priority or preference over any
other of such Holders or to enforce any right under this Indenture, except in
the manner herein provided and for the equal and ratable benefit of all of such
Holders.
<PAGE>
SECTION 508. Unconditional Right of Holders to Receive Principal, Premium
and Interest.
Notwithstanding any other provision in this Indenture, the
Holder of any Security shall have the right, which is absolute and
unconditional, to receive payment of the principal of and any premium and
(subject to Section 307) interest on such Security on the respective Stated
Maturities expressed in such Security (or, in the case of redemption, on the
Redemption Date) and to institute suit for the enforcement of any such payment,
and such rights shall not be impaired without the consent of such Holder.
SECTION 509. Restoration of Rights and Remedies.
If the Trustee or any Holder 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
the Trustee or to such Holder, then and in every such case, subject to any
determination in such proceeding, the Company, the Trustee and the Holders shall
be restored severally and respectively to their former positions hereunder and
thereafter all rights and remedies of the Trustee and the 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 in the last
paragraph of Section 306, no right or remedy herein conferred upon or reserved
to the Trustee or to the Holders 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 or of any Holder of any
Securities to exercise any right or remedy accruing upon any Event of Default
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 the Trustee or to the Holders may be exercised from time to
time, and as often as may be deemed expedient, by the 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 series shall have the right to direct the time,
method and place of conducting any proceeding for any remedy available to the
Trustee, or exercising any trust or power conferred on the Trustee, with respect
to the Securities of such series; provided that
<PAGE>
(1) such direction shall not be in conflict
with any rule of law or with this Indenture,
(2) the Trustee may take any other action deemed
proper by the Trustee which is not inconsistent with such
direction, and
(3) subject to the provisions of Section 601, the
Trustee shall have the right to decline to follow any such
direction if the Trustee in good faith shall, by a Responsible
Officer or Officers of the Trustee, determine that the
proceeding so directed would involve the Trustee in personal
liability.
SECTION 513. Waiver of Past Defaults.
The Holders of not less than a majority in principal amount of
the Outstanding Securities of any series may on behalf of the Holders of all the
Securities of such series waive any past default hereunder with respect to such
series and its consequences, except a default
(1) in the payment of the principal of or any
premium or interest on any Security of such series, or
(2) in respect of a covenant or provision hereof
which under Article Nine cannot be modified or amended without
the consent of the Holder of each Outstanding Security of such
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.
In any suit for the enforcement of any right or remedy under
this Indenture, or in any suit against the Trustee for any action taken,
suffered or omitted by it as Trustee, a court may require any party litigant in
such suit to file an undertaking to pay the costs of such suit, and may assess
reasonable costs against any such party litigant, in the manner and to the
extent provided in the Trust Indenture Act; provided that neither this Section
nor the Trust Indenture Act shall be deemed to authorize any court to require
such an undertaking or to make such an assessment in any suit instituted by the
Company or the Trustee.
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, but will suffer and permit
the execution of every such power as though no such law had been enacted.
<PAGE>
ARTICLE SIX
THE TRUSTEE
SECTION 601. Certain Duties and Responsibilities.
The duties and responsibilities of the Trustee shall be as
provided by the Trust Indenture Act. Notwithstanding the foregoing, no provision
of this Indenture shall require the Trustee 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.
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 shall be subject to the provisions of this Section.
SECTION 602. Notice of Defaults.
If a default occurs hereunder with respect to Securities of
any series, the Trustee shall give the Holders of Securities of such series
notice of such default as and to the extent provided by the Trust Indenture Act;
provided, however, that in the case of any default of the character specified in
Section 501(4) with respect to Securities of such series, no such notice to
Holders shall be given until at least 30 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 such series.
SECTION 603. Certain Rights of Trustee.
Subject to the provisions of Section 601:
(1) the Trustee may rely and shall be protected in
acting or refraining from acting upon any resolution,
certificate, statement, instrument, opinion, report, notice,
request, direction, consent, order, bond, debenture, note,
other evidence of indebtedness or other paper or document
believed by it to be genuine and to have been signed or
presented by the proper party or parties;
(2) any request or direction of the Company mentioned
herein shall be sufficiently evidenced by a Company Request or
Company Order or as otherwise expressly provided herein, and
any resolution of the Board of Directors shall be sufficiently
evidenced by a Board Resolution;
(3) whenever in the administration of this Indenture
the Trustee shall deem it desirable that a matter be proved or
established prior to taking, suffering or omitting any action
hereunder, the Trustee (unless other evidence be herein
specifically prescribed) may, in the absence of bad faith on
its part, rely upon an Officers' Certificate;
<PAGE>
(4) the Trustee may consult with counsel of its
selection and the 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;
(5) the 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
pursuant to this Indenture, unless such Holders shall have
offered to the Trustee reasonable security or indemnity
against the costs, expenses and liabilities which might be
incurred by it in compliance with such request or direction;
(6) the Trustee shall not be bound to make any
investigation into the facts or matters stated in any
resolution, certificate, statement, instrument, opinion,
report, notice, request, direction, consent, order, bond,
debenture, note, other evidence of indebtedness or other paper
or document, but the Trustee, in its discretion, may make such
further inquiry or investigation into such facts or matters as
it may see fit, and, if the Trustee shall determine to make
such further inquiry or investigation, it shall be entitled,
at reasonable times previously notified to the Company, to
examine the relevant books, records and premises of the
Company, personally or by agent or attorney; and
(7) the Trustee may execute any of the trusts or
powers hereunder or perform any duties hereunder either
directly or by or through agents or attorneys and the Trustee
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, shall be taken as the statements
of the Company, and neither the Trustee nor any Authenticating Agent assumes any
responsibility for their correctness. The Trustee makes no representations as to
the validity or sufficiency of this Indenture or of the Securities. Neither the
Trustee 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, any Authenticating Agent, any Paying Agent, any
Security Registrar or any other agent of the Company, 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 Trustee, Authenticating Agent, Paying Agent,
Security Registrar or such other agent.
<PAGE>
SECTION 606. Money Held in Trust.
Money held by the Trustee in trust hereunder need not be
segregated from other funds except to the extent required by law. The Trustee
shall be under no liability for interest on any money received by it hereunder
except as otherwise agreed in writing with the Company.
SECTION 607. Compensation and Reimbursement.
The Company agrees
(1) to pay to the Trustee from time to time such
compensation as shall be agreed to in writing between the
Company and the Trustee 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 upon its request for all reasonable
expenses, disbursements and advances incurred or made by the
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
negligence or bad faith; and
(3) to indemnify the Trustee for, and to hold it
harmless against, any loss, liability or expense incurred
without negligence or bad faith on its part, arising out of or
in connection with the acceptance or administration of the
trust or trusts hereunder, including the costs and expenses of
defending itself against any claim or liability in connection
with the exercise or performance of any of its powers or
duties hereunder.
The Trustee shall have a lien prior to the Securities upon all
property and funds held by it hereunder for any amount owing it or any
predecessor Trustee pursuant to this Section 607, except with respect to funds
held in trust for the benefit of the Holders of particular Securities.
Without limiting any rights available to the Trustee under
applicable law, when the Trustee incurs expenses or renders services in
connection with an Event of Default specified in Section 501(5) or Section
501(6), the expenses (including the reasonable charges and expenses of its
counsel) and the compensation for the services are intended to constitute
expenses of administration under any applicable Federal or State bankruptcy,
insolvency or other similar law.
The provisions of this Section shall survive the satisfaction
and discharge of this Indenture.
<PAGE>
SECTION 608. Conflicting Interests.
If the Trustee has or shall acquire a conflicting interest
within the meaning of the Trust Indenture Act, the Trustee shall either
eliminate such interest or resign, to the extent and in the manner provided by,
and subject to the provisions of, the Trust Indenture Act and this Indenture. To
the extent permitted by such Act, the Trustee shall not be deemed to have a
conflicting interest by virtue of being a trustee under this Indenture with
respect to Securities of more than one series.
SECTION 609. Corporate Trustee Required; Eligibility.
There shall at all times be one (and only one) Trustee
hereunder with respect to the Securities of each series, which may be Trustee
hereunder for Securities of one or more other series. Each Trustee shall be a
Person that is eligible pursuant to the Trust Indenture Act to act as such and
has a combined capital and surplus of at least $50,000,000. If any such Person
publishes reports of condition at least annually, pursuant to law or to the
requirements of its supervising or examining authority, then for the purposes of
this Section and to the extent permitted by the Trust Indenture Act, the
combined capital and surplus of such Person 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 the Trustee with respect to the Securities of any
series shall cease to be eligible in accordance with the provisions of this
Section, it shall resign immediately in the manner and with the effect
hereinafter specified in this Article.
SECTION 610. Resignation and Removal; Appointment of Successor.
No resignation or removal of the Trustee 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.
The Trustee may resign at any time with respect to the
Securities of one or more 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 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.
The Trustee may be removed at any time with respect to the
Securities of any series by Act of the Holders of a majority in principal amount
of the Outstanding Securities of such series, delivered to the Trustee and to
the Company.
If at any time:
(1) the Trustee shall fail to comply with Section 608
after written request therefor by the Company or by any Holder
who has been a bona fide Holder of a Security for at least six
months, or
<PAGE>
(2) the 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) the Trustee shall become incapable of acting or
shall be adjudged a bankrupt or insolvent or a receiver of the
Trustee or of its property shall be appointed or any public
officer shall take charge or control of the Trustee or of its
property or affairs for the purpose of rehabilitation,
conservation or liquidation,
then, in any such case, (A) the Company by a Board Resolution may remove the
Trustee with respect to all Securities, or (B) subject to Section 514, any
Holder who has been a bona fide Holder of a Security 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 the Trustee with respect to all
Securities and the appointment of a successor Trustee or Trustees.
If the Trustee shall resign, be removed or become incapable of
acting, or if a vacancy shall occur in the office of Trustee for any cause, with
respect to the Securities of one or more series, the Company, by a Board
Resolution, shall promptly appoint a successor Trustee or Trustees with respect
to the Securities of that or those series (it being understood that any such
successor Trustee may be appointed with respect to the Securities of one or more
or all of such series and that at any time there shall be only one Trustee with
respect to the Securities of any particular 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 any 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 with respect to the Securities of such series
and to that extent supersede the successor Trustee appointed by the Company. If
no successor Trustee with respect to the Securities of any series shall have
been so appointed by the Company or the Holders and accepted appointment in the
manner required by Section 611, 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.
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
to all Holders of Securities of such series in the manner provided in Section
106. Each notice shall include the name of the successor Trustee with respect to
the Securities of such series and the address of its Corporate Trust Office.
SECTION 611. Acceptance of Appointment by Successor.
In case of the appointment hereunder of a successor Trustee
with respect to all Securities, every such successor Trustee so appointed shall
execute, acknowledge and deliver to the Company and to the retiring Trustee an
instrument accepting such appointment, and thereupon the resignation or removal
of the retiring Trustee shall become effective and such successor Trustee,
without any further act, deed or conveyance, shall become vested with all the
rights, powers, trusts and duties of the retiring Trustee; but, on the request
of the Company or the successor Trustee, such retiring Trustee shall, upon
payment of its charges, execute and deliver an instrument transferring to such
successor Trustee all the rights, powers and trusts of the retiring Trustee and
shall duly assign, transfer and deliver to such successor Trustee all property
and money held by such retiring Trustee hereunder.
<PAGE>
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 that each such Trustee shall be trustee of a trust or trusts
hereunder separate and apart from any trust or trusts hereunder administered by
any other such Trustee; and 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.
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 the first or second preceding paragraph, as the case may be.
No successor Trustee shall accept its appointment unless at
the time of such acceptance such successor Trustee shall be qualified and
eligible under this Article.
<PAGE>
SECTION 612. Merger, Conversion, Consolidation or Succession to Business.
Any corporation into which the Trustee may be merged or
converted or with which it may be consolidated, or any corporation resulting
from any merger, conversion or consolidation to which the Trustee shall be a
party, or any corporation succeeding to all or substantially all the corporate
trust business of the Trustee, shall be the successor of the 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 then in office, any successor
by merger, conversion or consolidation to such authenticating Trustee may adopt
such authentication and deliver the Securities so authenticated with the same
effect as if such successor Trustee had itself authenticated such Securities.
SECTION 613. Preferential Collection of Claims Against Company.
If and when the Trustee shall be or become a creditor of the
Company (or any other obligor upon the Securities), the Trustee shall be subject
to the provisions of the Trust Indenture Act regarding the collection of claims
against the Company (or any such other obligor).
SECTION 614. Appointment of Authenticating Agent.
The Trustee may appoint an Authenticating Agent or Agents
acceptable to the Company with respect to one or more series of Securities which
shall be authorized to act on behalf of the Trustee to authenticate Securities
of such series issued upon exchange, registration of transfer or partial
redemption thereof or pursuant to Section 306, and Securities so authenticated
shall be entitled to the benefits of this Indenture and shall be valid and
obligatory for all purposes as if authenticated by the Trustee hereunder.
Wherever reference is made in this Indenture to the authentication and delivery
of Securities by the Trustee or the Trustee's certificate of authentication,
such reference shall be deemed to include authentication and delivery on behalf
of the Trustee by an Authenticating Agent and a certificate of authentication
executed on behalf of the Trustee by an Authenticating Agent. Each
Authenticating Agent shall be acceptable to the Company and shall at all times
be 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 act as Authenticating Agent, having a combined capital and
surplus of not less than $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 to the requirements of said
supervising or examining authority, then for the purposes of this Section, the
combined capital and surplus of such Authenticating Agent 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 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 an Authenticating Agent 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
Authenticating Agent shall be a party, or any corporation succeeding to the
corporate agency or corporate trust business of an Authenticating Agent, shall
continue to be an Authenticating Agent, provided such corporation shall be
otherwise eligible under this Section, without the execution or filing of any
paper or any further act on the part of the Trustee or the Authenticating Agent.
<PAGE>
An Authenticating Agent may resign at any time by giving
written notice thereof to the Trustee and to the Company. The Trustee may at any
time terminate the agency of an Authenticating Agent by giving written notice
thereof to such Authenticating Agent and to the Company. Upon receiving such a
notice of resignation or upon such a termination, or in case at any time such
Authenticating Agent shall cease to be eligible in accordance with the
provisions of this Section, the Trustee may appoint a successor Authenticating
Agent which shall be acceptable to the Company and shall give notice of such
appointment in the manner provided in Section 106 to all Holders of Securities
of the series with respect to which such Authenticating Agent will serve. 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 Company agrees to pay to each Authenticating Agent from
time to time reasonable compensation for its services under this Section.
If an appointment with respect to one or more series is made
pursuant to this Section, the Securities of such series may have endorsed
thereon, in addition to the Trustee's certificate of authentication, an
alternative certificate of authentication in the following form:
This is one of the Securities of the series designated therein
referred to in the within-mentioned Indenture.
THE CHASE MANHATTAN BANK,
As Trustee
By_______________________________________
As Authenticating Agent
By_______________________________________
Authorized Officer
<PAGE>
ARTICLE SEVEN
HOLDERS' LISTS AND REPORTS BY TRUSTEE AND COMPANY
SECTION 701. Company to Furnish Trustee Names and Addresses of Holders.
The Company will furnish or cause to be furnished to the
Trustee
(1) semi-annually, not later than June 1 and December
1, in each year, a list, in such form as the Trustee may
reasonably require, containing all the information in the
possession or control of the Company, or any of its Paying
Agents other than the Trustee, as to the names and addresses
of the Holders of Securities as of the preceding May 15 or
November 15, as the case may be, and
(2) at such other times as the Trustee may request in
writing, within 30 days after the receipt by the Company of
any such request, a list of similar form and content as of a
date not more than 15 days prior to the time such list is
furnished;
excluding from any such list names and addresses received by the Trustee in its
capacity as Security Registrar.
SECTION 702. Preservation of Information; Communications to Holders.
The Trustee shall preserve, in as current a form as is
reasonably practicable, the names and addresses of Holders contained in the most
recent list furnished to the Trustee as provided in Section 701 and the names
and addresses of Holders received by the Trustee in its capacity as Security
Registrar. The Trustee may destroy any list furnished to it as provided in
Section 701 upon receipt of a new list so furnished.
The rights of Holders to communicate with other Holders with
respect to their rights under this Indenture or under the Securities, and the
corresponding rights and privileges of the Trustee, shall be as provided by the
Trust Indenture Act.
Every Holder of Securities, by receiving and holding the same,
agrees with the Company and the Trustee that neither the Company nor the Trustee
nor any agent of either of them shall be held accountable by reason of any
disclosure of information as to names and addresses of Holders made pursuant to
the Trust Indenture Act.
SECTION 703. Reports by Trustee.
The Trustee shall transmit to Holders such reports concerning
the Trustee and its actions under this Indenture as may be required pursuant to
the Trust Indenture Act at the times and in the manner provided pursuant
thereto. If required by Section 313(a) of the Trust Indenture Act, the Trustee
shall, within 60 days after each May 15 following the date of this Indenture,
deliver to Holders a brief report, dated as of such May 15, which complies with
the provisions of such Section 313(a).
<PAGE>
A copy of each such report shall, at the time of such
transmission to Holders, be filed by the Trustee with each stock exchange upon
which any Securities are listed, with the Commission and with the Company. The
Company will promptly notify the Trustee when any Securities are listed on any
stock exchange.
SECTION 704. Reports by Company.
The Company shall file with the Trustee and the Commission,
and transmit to Holders, such information, documents and other reports, and such
summaries thereof, as may be required pursuant to the Trust Indenture Act at the
times and in the manner provided pursuant to such Act; provided that any such
information, documents or reports required to be filed with the Commission
pursuant to Section 13 or 15(d) of the Exchange Act shall be filed with the
Trustee within 15 days after the same is so required to be filed with the
Commission.
<PAGE>
ARTICLE EIGHT
CONSOLIDATION, MERGER, CONVEYANCE OR TRANSFER
SECTION 801. Company May Consolidate, Etc., on Certain Terms.
Nothing contained in this Indenture or in any of the
Securities shall prevent any consolidation of the Company with, or merger of the
Company into any other Person or Persons (whether or not affiliated with the
Company), or successive consolidations or mergers in which the Company or its
successor or successors shall be a party or parties, or shall prevent any
conveyance or transfer of the properties and assets of the Company as an
entirety or substantially as an entirety to any other Person (whether or not
affiliated with the Company) lawfully entitled to acquire the same; provided,
however, and the Company hereby covenants and agrees, that upon any such
consolidation, merger, conveyance or transfer, (i) the due and punctual payment
of the principal of and premium, if any, and interest on all of the Securities,
according to their tenor, and the due and punctual performance and observance of
all of the covenants and conditions of this Indenture to be performed by the
Company, shall be expressly assumed, by indenture supplemental hereto, in form
reasonably satisfactory to the Trustee, executed and delivered to the Trustee by
the Person formed by such consolidation, or into which the Company shall have
been merged, or by the Person which shall have acquired such properties and
assets, and (ii) the Company shall deliver to the Trustee an Officers'
Certificate and an Opinion of Counsel, each stating that such consolidation,
merger, conveyance or transfer and, if a supplemental indenture is required in
connection with such transaction, 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 Substituted.
Upon any consolidation of the Company with, or merger of the
Company into, any other Person or any conveyance or transfer of the properties
and assets of the Company as an entirety or substantially as an entirety in
accordance with Section 801, the successor Person 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 Person had been named as the Company herein, and thereafter the
predecessor Person shall be relieved of all obligations and covenants under this
Indenture and the Securities.
<PAGE>
ARTICLE NINE
SUPPLEMENTAL INDENTURES
SECTION 901. Supplemental Indentures Without Consent of Holders.
Without the consent of any Holders, the Company, when
authorized by a Board Resolution, and the Trustee, at any time and from time to
time, may enter into one or more indentures supplemental hereto, in form
reasonably satisfactory to the Trustee, for any of the following purposes:
(1) to evidence the succession of another Person 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 series of Securities (and
if such covenants are to be for the benefit of less than all
series of Securities, stating that such covenants are
expressly being included solely for the benefit of such
series) or to surrender any right or power herein conferred
upon the Company; or
(3) to add any additional Events of Default for the
benefit of the Holders of all or any series of Securities (and
if such additional Events of Default are to be for the benefit
of less than all series of Securities, stating that such
additional Events of Default are expressly being included
solely for the benefit of such series); or
(4) to add to or change any of the provisions of this
Indenture in order to change or eliminate any restrictions on
the payment of principal (or premium, if any) on the
Securities or to permit the issuance of Securities in
uncertificated form, provided, however, that no such action
shall adversely affect the interests of the Holders of
Securities of any series in any material respect; or
(5) to add to, change or eliminate any of the
provisions of this Indenture in respect of one or more series
of Securities; provided, however, that any such addition,
change or elimination (A) shall neither (i) apply to any
Security of any series created prior to the execution of such
supplemental indenture and entitled to the benefit of such
provision nor (ii) modify the rights of the Holder of any such
Security with respect to such provision or (B) shall become
effective only when there is no such Security Outstanding; or
(6) to secure the Securities; or
(7) to establish the form or terms of Securities of
any series as permitted by Sections 201 and 301; or
<PAGE>
(8) 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; or
(9) to cure any ambiguity, to correct or supplement
any provision herein which may be defective or inconsistent
with any other provision herein, or to make any other
provisions with respect to matters or questions arising under
this Indenture; provided that such action pursuant to this
Clause (9) shall not adversely affect the interests of the
Holders of Securities of any series in any material respect.
SECTION 902. Supplemental Indentures With Consent of Holders.
With the consent of the Holders of not less than a majority in
principal amount of the Outstanding Securities of each series affected by such
supplemental indenture, by Act of said Holders delivered to the Company and the
Trustee, the Company, when authorized by a Board Resolution, and the Trustee 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 any supplemental indenture with respect to
Securities of such series, or modifying in any manner the rights of the Holders
of Securities of such series under this Indenture; 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 instalment of principal of or interest on, any
Security, or reduce the principal amount thereof or the rate
of interest thereon or any premium payable upon the redemption
thereof, or reduce the amount of the principal of an Original
Issue Discount Security or any other Security that would be
due and payable upon a declaration of acceleration of the
Maturity thereof pursuant to Section 502, or change any Place
of Payment where, or the coin or currency in which, any
Security or any premium 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
(2) reduce the percentage in principal amount of the
Outstanding Securities of any 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,
Section 513 or Section 1006, 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 Outstanding Security affected thereby;
provided, however, that this clause shall not be deemed to
require the consent of any Holder with respect to changes in
the references to "the Trustee" and concomitant changes in
this Section and Section 1006, or the deletion of this
proviso, in accordance with the requirements of Sections 611
and 901(8), or
<PAGE>
(4) to make any change to Article Fourteen of this Indenture
that would adversely effect the interests of the Holders of
any Securities in any material respect.
A supplemental indenture that changes or eliminates any covenant or other
provision of this Indenture that has expressly been included solely for the
benefit of one or more particular series of Securities, or that 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 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 may, but
shall not be obligated to, enter into any such supplemental indenture which
affects the Trustee's own rights, 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 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.
SECTION 906. Reference in Securities to Supplemental Indentures.
Securities of any series authenticated and delivered after the
execution of any supplemental indenture pursuant to this Article may, and shall
if required by the Trustee, bear a notation in form approved by the Trustee as
to any matter provided for in such supplemental indenture. If the Company shall
so determine, new Securities of any series so modified as to conform, in the
opinion of the Trustee and the Company, to any such supplemental indenture may
be prepared and executed by the Company and authenticated and delivered by the
Trustee in exchange for Outstanding Securities of such series.
SECTION 907. Subordination Unimpaired.
This Indenture may not be amended to alter the subordination
of any of the Outstanding Securities without the written consent of each holder
of Senior Indebtedness then outstanding that would be adversely affected
thereby.
<PAGE>
ARTICLE TEN
COVENANTS
SECTION 1001. Payment of Principal, Premium and Interest.
The Company covenants and agrees for the benefit of each
series of Securities that it will duly and punctually pay the principal of and
any premium and interest on the Securities of that series in accordance with the
terms of the Securities and this Indenture.
SECTION 1002. Maintenance of Office or Agency.
The Company will maintain in each Place of Payment for any
series of Securities an office or agency where Securities of that series may be
presented or surrendered for payment, where Securities of that series may be
surrendered for registration of transfer or 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 of the location, and any change in the location, of such office or
agency. If at any time the Company shall fail to maintain any such required
office or agency or shall fail to furnish the Trustee with the address thereof,
such presentations, surrenders, notices and demands may be made or served at the
Corporate Trust Office of the Trustee, and the Company hereby appoints the
Trustee as its agent to receive all such presentations, surrenders, notices and
demands.
The Company may also from time to time designate one or more
other offices or agencies where the Securities of one or more series may be
presented or surrendered for any or all such purposes 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 Securities of any series for
such purposes. The Company will give prompt written notice to the Trustee of any
such designation or rescission and of any change in the location of any such
other office or agency.
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 series of Securities, it will, on or before each due date of
the principal of or any premium or interest on any of the Securities of that
series, segregate and hold in trust for the benefit of the Persons entitled
thereto a sum sufficient to pay the principal and any premium and interest 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 of its action or
failure so to act.
Whenever the Company shall have one or more Paying Agents for
any series of Securities, it will, on or prior to each due date of the principal
of or any premium or interest on any Securities of that series, deposit with a
Paying Agent a sum sufficient to pay such amount, such sum to be held as
provided by the Trust Indenture Act, and (unless such Paying Agent is the
Trustee) the Company will promptly notify the Trustee of its action or failure
so to act.
<PAGE>
The Company will cause each Paying Agent for any series of
Securities other than the Trustee to execute and deliver to the Trustee an
instrument in which such Paying Agent shall agree with the Trustee, subject to
the provisions of this Section, that such Paying Agent will (1) comply with the
provisions of the Trust Indenture Act applicable to it as a Paying Agent and (2)
during the continuance of any default by the Company (or any other obligor upon
the Securities of that series) in the making of any payment in respect of the
Securities of that series, upon the written request of the Trustee, forthwith
pay to the Trustee all sums held in trust by such Paying Agent for payment in
respect of the Securities of that series.
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 all sums held in
trust hereunder by the Company or such Paying Agent, such sums to be held by the
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 the
Trustee, such Paying Agent shall be released from all further liability with
respect to such money.
Any money deposited with the Trustee or any Paying Agent, or
then held by the Company, in trust for the payment of the principal of or any
premium or interest on any Security of any series and remaining unclaimed for
two years after such principal, premium or interest has become due and payable
shall be paid to the Company on Company Request, or (if then held by the
Company) shall be discharged from such trust; and the Holder of such Security
shall thereafter, as an unsecured general creditor, look only to the Company for
payment thereof, and all liability of the 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 the Trustee or such
Paying Agent, before being required to make any such repayment, may at the
expense of the Company cause to be published once, in a newspaper published in
the English language, customarily published on each Business Day and of general
circulation in New York City, notice 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 be repaid to the Company.
SECTION 1004. Corporate Existence
Subject to Article Eight, the Company will do or cause to be done all
things necessary to preserve and keep in full force and effect its corporate
existence and the rights (charter and statutory) and franchises of the Company;
provided, however, that the Company shall not be required to preserve any such
right or franchise if the Board of Directors 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.
<PAGE>
SECTION 1005. Statement as to Compliance
The Company will deliver to the Trustee, within 120 days after the end
of each fiscal year, an Officers' Certificate, which need not comply with
Section 102, stating, as to each signer thereof, 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, (a)
the Company has complied with all covenants and conditions under this
Indenture throughout such year, or, if there has been a default in
compliance with any such covenant or condition, specifying each such
default known to him and the nature and status thereof, and (b) no
event has occurred and is continuing which is, or after notice or lapse
of time or both would become, an Event of Default, or, if such an event
has occurred and is continuing, specifying each such event known to him
and the nature and status thereof.
SECTION 1006. Waiver of Certain Covenants.
Except as otherwise specified as contemplated by Section 301
for Securities of such series, the Company may, with respect to the Securities
of any series, omit in any particular instance to comply with any term,
provision or condition set forth in any covenant provided pursuant to Section
301(19), 901(2) or 901(7) for the benefit of the Holders of such series if
before the time for such compliance the Holders of at least a majority in
principal amount of the Outstanding Securities of such series shall, by Act of
such Holders, either waive such compliance in such instance or generally waive
compliance with such term, provision or condition, but no such waiver shall
extend to or affect such term, provision 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 in respect of any such term,
provision or condition shall remain in full force and effect.
SECTION 1007. Calculation of Original Issue Discount.
The Company shall file with the Trustee promptly after the end
of each calendar year a written notice specifying the amount of original issue
discount (including daily rates and accrual periods) accrued on Outstanding
Securities as of the end of such year.
<PAGE>
ARTICLE ELEVEN
REDEMPTION OF SECURITIES
SECTION 1101. Applicability of Article.
Securities of any series that are redeemable before their
Stated Maturity shall be redeemable in accordance with their terms and (except
as otherwise specified as contemplated by Section 301 for such Securities) in
accordance with this Article.
SECTION 1102. Election to Redeem; Notice to Trustee.
The election of the Company to redeem any Securities shall be
evidenced by a Board Resolution or in another manner specified as contemplated
by Section 301 for such Securities. In case of any redemption at the election of
the Company, the Company shall, at least 45 days prior to the Redemption Date
fixed by the Company (unless a shorter notice shall be satisfactory to the
Trustee), notify the Trustee of such Redemption Date, of the principal amount of
Securities of such series to be redeemed and, if applicable, of the tenor of the
Securities to be redeemed. In the case of any redemption of Securities (a) prior
to the expiration of any restriction on such redemption provided in the terms of
such Securities or elsewhere in this Indenture, or (b) pursuant to an election
of the Company which is subject to a condition specified in the terms of such
Securities or elsewhere in this Indenture, the Company shall furnish the Trustee
with an Officers' Certificate evidencing compliance with such restriction or
condition.
SECTION 1103. Selection by Trustee of Securities to Be Redeemed.
If less than all the Securities of any series are to be
redeemed (unless all the Securities of such series and of a specified tenor are
to be redeemed or unless such redemption affects only a single Security), the
particular Securities to be redeemed shall be selected not more than 60 days
prior to the Redemption Date by the Trustee, from the Outstanding Securities of
such series not previously called for redemption, by such method as the Trustee
shall deem fair and appropriate and which may provide for the selection for
redemption of a portion of the principal amount of any Security of such series;
provided that the unredeemed portion of the principal amount of any Security
shall be in an authorized denomination (which shall not be less than the minimum
authorized denomination) for such Security. If less than all the Securities of
such series and of a specified tenor are to be redeemed (unless such redemption
affects only a single Security), the particular Securities to be redeemed shall
be selected not more than 60 days prior to the Redemption Date by the Trustee,
from the Outstanding Securities of such series and specified tenor not
previously called for redemption in accordance with the preceding sentence.
The Trustee shall promptly notify the Company in writing of
the Securities selected for redemption as aforesaid and, in the case of any
Securities selected for partial redemption as aforesaid, the principal amount
thereof to be redeemed.
<PAGE>
The provisions of the two preceding paragraphs shall not apply
with respect to any redemption affecting only a single Security, whether such
Security is to be redeemed in whole or in part. In the case of any such
redemption in part, the unredeemed portion of the principal amount of the
Security shall be in an authorized denomination (which shall not be less than
the minimum authorized denomination) for such Security.
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 Securities 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 by first-class mail,
postage prepaid, mailed not less than 30 nor more than 60 days prior to the
Redemption Date, to each Holder of Securities to be redeemed, at his address
appearing in the Security Register.
All notices of redemption shall state:
(1) the Redemption Date;
(2) the Redemption Price;
(3) if less than all the Outstanding Securities of
any series and of a specified tenor consisting of more than a
single Security are to be redeemed, the identification (and,
in the case of partial redemption of any such Securities, the
principal amounts) of the particular Securities to be redeemed
and, if less than all the Outstanding Securities of any series
and of a specified tenor consisting of a single Security are
to be redeemed, the principal amount of the particular
Security to be redeemed;
(4) that on the Redemption Date the Redemption Price,
together with accrued interest, if any, to the Redemption
Date, will become due and payable upon each such Security to
be redeemed and, if applicable, that interest thereon will
cease to accrue on and after said date;
(5) the place or places where each such Security is
to be surrendered for payment of the Redemption Price and
accrued interest, if any, unless it shall have been specified
as contemplated by Section 301 with respect to such Securities
that such surrender shall not be required;
(6) that the redemption is for a sinking fund,
if such is the case; and
(7) such other matters as the Company shall deem
desirable or appropriate.
<PAGE>
Unless otherwise specified with respect to any Securities in
accordance with Section 301, with respect to any redemption of Securities at the
election of the Company, unless, upon the giving of notice of such redemption,
Defeasance shall have been effected with respect to such Securities pursuant to
Section 1302, such notice may state that such redemption shall be conditional
upon the receipt by the Trustee or the Paying Agent(s) for such Securities, on
or prior to the date fixed for such redemption, of money sufficient to pay the
principal of and any premium and interest on such Securities and that if such
money shall not have been so received such notice shall be of no force or effect
and the Company shall not be required to redeem such Securities. In the event
that such notice of redemption contains such a condition and such money is not
so received, the redemption shall not be made and within a reasonable time
thereafter notice shall be given, in the manner in which the notice of
redemption was given, that such money was not so received and such redemption
was not required to be made, and the Trustee or Paying Agent(s) for the
Securities otherwise to have been redeemed shall promptly return to the Holders
thereof any of such Securities which had been surrendered for payment upon such
redemption.
Notice of redemption of Securities to be redeemed at the
election of the Company, and any notice of non-satisfaction of redemption as
aforesaid, shall be given by the Company or, at the Company's request, by the
Trustee in the name and at the expense of the Company. Subject to the preceding
paragraph, any such notice of redemption shall be irrevocable.
SECTION 1105. Securities Payable on Redemption Date.
Notice of redemption having been given as aforesaid, and the
conditions, if any, set forth in such notice having been satisfied, the
Securities or portions thereof so to be redeemed shall, on the Redemption Date,
become due and payable at the Redemption Price therein specified, and from and
after such date (unless, in the case of an unconditional notice of redemption,
the Company shall default in the payment of the Redemption Price and accrued
interest, if any) such Securities or portions thereof, if interest-bearing,
shall cease to bear interest. Upon surrender of any such Security for redemption
in accordance with said notice, such Security or portion thereof shall be paid
by the Company at the Redemption Price, together with accrued interest, if any,
to the Redemption Date; provided, however, that no such surrender shall be a
condition to such payment if so specified as contemplated by Section 301 with
respect to such Security, and provided further that, unless otherwise specified
as contemplated by Section 301, installments of interest whose Stated Maturity
is on or prior to the Redemption Date will 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 Security called for redemption shall not be so paid
upon surrender thereof for redemption, the principal and any premium shall,
until paid, bear interest from the Redemption Date at the rate prescribed
therefor in the Security.
SECTION 1106. Securities Redeemed in Part.
Any Security which is to be redeemed only in part shall be
surrendered at a Place of Payment therefor (with, if the Company or the Trustee
so requires, due endorsement by, or a written instrument of transfer in form
satisfactory to the Company and the Security Registrar duly executed by, the
Holder thereof or his attorney duly authorized in writing), and the Company
shall execute, and the Trustee shall authenticate and deliver to the Holder of
such Security without service charge, a new Security or Securities of the same
series and of like tenor, of any authorized denomination as requested by such
Holder, in aggregate principal amount equal to and in exchange for the
unredeemed portion of the principal of the Security so surrendered.
<PAGE>
ARTICLE TWELVE
SINKING FUNDS
SECTION 1201. Applicability of Article.
The provisions of this Article shall be applicable to any
sinking fund for the retirement of Securities of any series except as otherwise
specified as contemplated by Section 301 for such Securities.
The minimum amount of any sinking fund payment provided for by
the terms of any Securities 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 such Securities is herein referred to as an "optional sinking fund
payment". If provided for by the terms of any Securities, 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 as
provided for by the terms of such Securities.
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) and (2) may apply as a credit
Securities of a series that have been redeemed either at the election of the
Company pursuant to the terms of such Securities or through the application of
permitted optional sinking fund payments pursuant to the terms of such
Securities, in each case in satisfaction of all or any part of any sinking fund
payment with respect to any Securities of such series required to be made
pursuant to the terms of such Securities as and to the extent provided for by
the terms of such Securities; provided that the Securities to be so credited
have not been previously so credited. The Securities to be so credited shall be
received and credited for such purpose by the Trustee at the Redemption Price,
as specified in the Securities so to be redeemed, for redemption through
operation of the sinking fund and the amount of such sinking fund payment shall
be reduced accordingly.
SECTION 1203. Redemption of Securities for Sinking Fund.
Not less than 45 days prior to each sinking fund payment date
for any Securities, the Company will deliver to the Trustee an Officers'
Certificate specifying the amount of the next ensuing sinking fund payment for
such Securities pursuant to the terms of such Securities, the portion thereof,
if any, which is to be satisfied by payment of cash and the portion thereof, if
any, which is to be satisfied by delivering and crediting Securities pursuant to
Section 1202 and stating the basis for such credit and that such Securities have
not been previously so credited and will also deliver to the Trustee any
Securities to be so delivered. Not less than 30 days prior to each such sinking
fund payment date, the Trustee shall select the Securities to be redeemed upon
such sinking fund payment date in the manner specified in Section 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 1105 and 1106.
<PAGE>
ARTICLE THIRTEEN
DEFEASANCE AND COVENANT DEFEASANCE
SECTION 1301. Applicability of Article.
Unless, pursuant to Section 301, provision is made that either
or both of (a) defeasance of any Securities or any series of Securities under
Section 1302 and (b) covenant defeasance of any Securities or any series of
Securities under Section 1303 shall not apply to such Securities of a series,
then the provisions of either or both of Sections 1302 and Section 1303, as the
case may be, together with Sections 1304 and 1305, shall be applicable to the
Outstanding Securities of such series upon compliance with the conditions set
forth below in this Article.
SECTION 1302. Defeasance and Discharge.
The Company may cause itself to be discharged from its
obligations with respect to any Securities or any series of Securities on and
after the date the conditions set forth in Section 1304 are satisfied
(hereinafter called "Defeasance"). For this purpose, such Defeasance means that
the Company shall be deemed to have paid and discharged the entire indebtedness
represented by such Securities and to have satisfied all its other obligations
under such Securities and this Indenture insofar as such Securities are
concerned (and the Trustee, at the expense of the Company, shall execute proper
instruments acknowledging the same), subject to the following which shall
survive until otherwise terminated or discharged hereunder: (1) the rights of
Holders of such Securities to receive, solely from the trust fund described in
Section 1304 and as more fully set forth in such Section, payments in respect of
the principal of and any premium and interest on such Securities when payments
are due, (2) the Company's obligations with respect to such Securities under
Sections 304, 305, 306, 1002 and 1003 and with respect to the Trustee under
Section 607, (3) the rights, powers, trusts, duties and immunities of the
Trustee hereunder and (4) this Article. Subject to compliance with this Article,
Defeasance with respect to any Securities or any series of Securities by the
Company is permitted under this Section 1302 notwithstanding the prior exercise
by the Company of its rights under Section 1303 with respect to such Securities.
Following a Defeasance, payment of such Securities may not be accelerated
because of an Event of Default.
SECTION 1303. Covenant Defeasance.
The Company may cause itself to be released from its
obligations under any covenants provided pursuant to Section 301(19), 901(2),
901(6) or 901(7) with respect to any Securities or any series of Securities for
the benefit of the Holders of such Securities and the occurrence of any event
specified in Sections 501(4) (with respect to any such covenants provided
pursuant to Section 301(19), 901(2), 901(6) or 901(7)) or 501(7) shall be deemed
not to be or result in an Event of Default with respect to such Securities as
provided in this Section, in each case on and after the date the conditions set
forth in Section 1304 are satisfied (hereinafter called "Covenant Defeasance").
For this purpose, such Covenant Defeasance means that, with respect to such
Securities, 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 specified
Section (to the extent so specified in the case of Section 501(4)), whether
directly or indirectly by reason of any reference elsewhere herein to any such
Section or by reason of any reference in any such Section to any other provision
herein or in any other document, but the remainder of this Indenture and such
Securities shall be unaffected thereby.
<PAGE>
SECTION 1304. Conditions to Defeasance or Covenant Defeasance.
The following shall be the conditions to the application of
Section 1302 or Section 1303 to any Securities or any series of Securities, as
the case may be:
(1) The Company shall irrevocably have deposited or
caused to be deposited with the Trustee as trust funds in
trust for the purpose of making the following payments,
specifically pledged as security for, and dedicated solely to,
the benefit of the Holders of such Securities, (A) money in an
amount, or (B) U.S. Government Obligations which through the
scheduled payment of principal and interest in respect thereof
in accordance with their terms will provide, not later than
the due date of any payment, money in an amount, or (C) a
combination thereof, in each case sufficient, in the opinion
of a nationally recognized firm of independent public
accountants expressed in a written certification thereof
delivered to the Trustee, to pay and discharge, and which
shall be applied by the Trustee to pay and discharge, the
principal of and any premium and interest on such Securities
on the respective Stated Maturities or on any Redemption Date
established pursuant to Clause (3) below, in accordance with
the terms of this Indenture and such Securities. As used
herein, "U.S. Government Obligation" means (x) any security
which is (i) a direct obligation of the United States of
America for the payment of which the full faith and credit of
the United States of America is pledged or (ii) an obligation
of a Person controlled or supervised by and acting as an
agency or instrumentality of the United States of America the
payment of which is unconditionally guaranteed as a full faith
and credit obligation by the United States of America, which,
in either case (i) or (ii), is not callable or redeemable at
the option of the issuer thereof, and (y) any depositary
receipt issued by a bank (as defined in Section 3(a)(2) of the
Securities Act) as custodian with respect to any U.S.
Government Obligation which is specified in clause (x) above
and held by such bank for the account of the holder of such
depositary receipt, or with respect to any specific payment of
principal of or interest on any U.S. Government Obligation
which is so specified and held, provided that (except as
required by law) such custodian is not authorized to make any
deduction from the amount payable to the holder of such
depositary receipt from any amount received by the custodian
in respect of the U.S. Government Obligation or the specific
payment of principal or interest evidenced by such depositary
receipt.
(2) No event which is, or after notice or lapse of
time or both would become, an Event of Default with respect to
such Securities or any other Securities shall have occurred
and be continuing at the time of such deposit or, with regard
to any such event specified in Sections 501(5) and (6), at any
time on or prior to the 90th day after the date of such
deposit (it being understood that this condition shall not be
deemed satisfied until after such 90th day).
<PAGE>
(3) If the Securities are to be redeemed prior to
Stated Maturity (other than from mandatory sinking fund
payments or analogous payments), notice of such redemption
shall have been duly given pursuant to this Indenture or
provision therefor satisfactory to the Trustee shall have been
made.
(4) The Company shall have delivered to the Trustee
an Officers' Certificate and an Opinion of Counsel, each
stating that all conditions precedent with respect to such
Defeasance or Covenant Defeasance have been complied with.
SECTION 1305. Deposited Money and U.S. Government Obligations to Be Held in
Trust; Miscellaneous Provisions.
Subject to the provisions of the last paragraph of Section
1003, all money and U.S. Government Obligations (including the proceeds thereof)
deposited with the Trustee pursuant to Section 1304 in respect of any Securities
shall be held in trust and applied by the Trustee, in accordance with the
provisions of such Securities and this Indenture, to the payment, either
directly or through any such Paying Agent (including the Company acting as its
own Paying Agent) as the Trustee may determine, to the Holders of such
Securities, of all sums due and to become due thereon in respect of principal
and any premium and interest, but money so held in trust need not be segregated
from other funds except to the extent required by law.
The Company shall pay and indemnify the Trustee against any
tax, fee or other charge imposed on or assessed against the U.S. Government
Obligations deposited pursuant to Section 1304 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.
Anything in this Article to the contrary notwithstanding, the
Trustee shall deliver or pay to the Company from time to time upon Company
Request any money or U.S. Government Obligations held by it as provided in
Section 1304 with respect to any Securities which, in the opinion of a
nationally recognized firm of independent public accountants expressed in a
written certification thereof delivered to the Trustee, are in excess of the
amount thereof that would then be required to be deposited to effect the
Defeasance or Covenant Defeasance, as the case may be, with respect to such
Securities.
<PAGE>
ARTICLE FOURTEEN
SUBORDINATION
SECTION 1401. Securities Subordinated to Senior Indebtedness.
Except as otherwise specified as contemplated by Section 301
for any series of Securities, the Company covenants and agrees, and each Holder
of a Security, by his acceptance thereof, likewise covenants and agrees, that
the indebtedness represented by the Securities of any series and the payment of
the principal of and any premium or interest on each and all of the Securities
of each series is subordinate, to the extent and in the manner hereinafter set
forth, in right of payment to the prior payment in full of all Senior
Indebtedness. Senior Indebtedness shall continue to be Senior Indebtedness and
entitled to the benefits of these subordination provisions irrespective of any
amendment, modification or waiver of any term of the Senior Indebtedness or
extension or renewal of the Senior Indebtedness.
In the event (a) of any payment by, or distribution of assets
of, the Company of any kind or character, whether in cash, property or
securities, to creditors upon any dissolution, winding-up, liquidation or
reorganization of the Company, whether voluntary or involuntary or in
bankruptcy, insolvency, receivership or other proceedings, or (b) subject to the
provisions of Section 1402 that (i) a default shall have occurred and be
continuing with respect to the payment of principal, interest or any other
monetary amounts due and payable on any Senior Indebtedness and such default
shall have continued beyond the period of grace, if any, specified in the
instrument evidencing such Senior Indebtedness, (and the Trustee shall have
received written notice thereof from the Company or one or more holders of
Senior Indebtedness or their representative or representatives or the trustee or
trustees under any indenture pursuant to which any such Senior Indebtedness may
have been issued), or (ii) the maturity of any Senior Indebtedness shall have
been accelerated because of a default in respect of such Senior Indebtedness
(and the Trustee shall have received written notice thereof from the Company or
one or more holders of Senior Indebtedness or their representative or
representatives or the trustee or trustees under any indenture pursuant to which
any such Senior Indebtedness may have been issued), then:
(i) the holders of all Senior Indebtedness shall
first be entitled to receive, in the case of (a) above,
payment of all amounts due or to become due upon all Senior
Indebtedness and, in the case of subclauses (i) and (ii) of
clause (b) above, payment of all amounts due thereon, or
provision shall be made for such payment in money or money's
worth, before the Holders of any of the Securities are
entitled to receive any payment on account of the principal of
or any premium or interest on the indebtedness evidenced by
the Securities, including, without limitation, any payments
made pursuant to Article Eleven or Article Twelve;
(ii) any payment by, or distribution of assets of,
the Company of any kind or character, whether in cash,
property or securities, to which the Holders of any of the
Securities would be entitled except for the provisions of this
Article, including any such payment or distribution which may
be payable or deliverable by reason of the payment of any
other indebtedness of the Company being subordinated to the
payment of such Securities, shall be paid or delivered by the
Person making such payment or distribution, whether a trustee
in bankruptcy, a receiver or liquidating trustee or otherwise,
directly to the holders of such 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 such Senior Indebtedness held or
represented by each, to the extent necessary to make payment
in full of all Senior Indebtedness remaining unpaid after
giving effect to any concurrent payment or distribution (or
provision therefor) to the holders of such Senior
Indebtedness, before any payment or distribution is made to
the Holders of the indebtedness evidenced by such Securities;
and
<PAGE>
(iii) in the event that, notwithstanding the
foregoing, any payment by, or distribution of assets of, the
Company of any kind or character, whether in cash, property or
securities, including any such payment or distribution which
may be payable or deliverable by reason of the payment of any
other indebtedness of the Company being subordinated to the
payment of such Securities, in respect of principal of or any
premium or interest on any of the Securities or in connection
with the repurchase by the Company of any of the Securities,
shall be received by the Trustee or the Holders of any of the
Securities when such payment or distribution is prohibited
pursuant to this Section, such payment or distribution shall
be paid over to the holders of such Senior Indebtedness or
their representative or representatives or to the trustee or
trustees under any indenture pursuant to which any instruments
evidencing any such Senior Indebtedness may have been issued,
ratably as aforesaid, for application to the payment of all
Senior Indebtedness remaining unpaid until all such Senior
Indebtedness shall have been paid in full, after giving effect
to any concurrent payment or distribution (or provision
therefor) to the holders of such Senior Indebtedness.
Notwithstanding the foregoing, at any time after the 90th day
following the date of deposit of money or U.S. Government Obligations pursuant
to Section 1304 or at any time after the date of deposit of funds pursuant to
Section 401 (provided, in each case, all other conditions set out in such
Section shall have been satisfied) the funds so deposited and any interest
thereon will not be subject to any rights of holders of Senior Indebtedness
including, without limitation, those arising under this Article.
For purposes of this Article Fourteen, the words "cash,
property or securities" shall not be deemed to include shares of stock of the
Company as reorganized or readjusted, or securities of the Company or any other
Person provided for by a plan of reorganization or readjustment, the payment of
which is subordinated at least to the extent provided in this Article with
respect to the Securities to the payment of all Senior Indebtedness which may at
the time be outstanding; provided that (i) the Senior Indebtedness is assumed by
the Person, if any, resulting from any such reorganization or readjustment, and
(ii) the rights of the holders of the Senior Indebtedness are not, without the
consent of each such holder adversely affected thereby, altered by such
reorganization or readjustment. 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 its property as an entirety,
or substantially as an entirety, to another Person upon the terms and conditions
provided for in Article Eight hereof shall not be deemed a dissolution,
winding-up, liquidation or reorganization for the purposes of this Section if
such other Person shall, as part of such consolidation, merger, conveyance or
transfer, comply with the conditions stated in Article Eight hereof.
<PAGE>
SECTION 1402. Disputes with Holders of Certain Senior Indebtedness.
Any failure by the Company to make any payment on or perform
any other obligation under Senior Indebtedness, other than any indebtedness
incurred by the Company or assumed or guaranteed, directly or indirectly, by the
Company for money borrowed (or any deferral, renewal, extension or refunding
thereof) or any indebtedness or obligation as to which the provisions of this
Section shall have been waived by the Company in the instrument or instruments
by which the Company incurred, assumed, guaranteed or otherwise created such
indebtedness or obligation, shall not be deemed a default or event of default
under Section 1401(b) if (i) the Company shall be disputing its obligation to
make such payment or perform such obligation and (ii) either (A) no final
judgment relating to such dispute shall have been issued against the Company
which is in full force and effect and is not subject to further review,
including a judgment that has become final by reason of the expiration of the
time within which a party may seek further appeal or review, and (B) in the
event of a judgment that is subject to further review or appeal has been issued,
the Company shall in good faith be prosecuting an appeal or other proceeding for
review and a stay of execution shall have been obtained pending such appeal or
review.
SECTION 1403. Subrogation.
Subject to the payment in full of all Senior Indebtedness, the
Holders of the Securities shall be subrogated (equally and ratably with the
holders of all obligations of the Company which by their express terms are
subordinated to Senior Indebtedness of the Company to the same extent as the
Securities are subordinated and which are entitled to like rights of
subrogation) to the rights of the holders of Senior Indebtedness to receive
payments or distributions of cash, property or securities of the Company
applicable to the Senior Indebtedness until all amounts owing on the Securities
shall be paid in full, and as between the Company, its creditors other than
holders of such Senior Indebtedness and the Holders, no such payment or
distribution made to the holders of Senior Indebtedness by virtue of this
Article that otherwise would have been made to the Holders shall be deemed to be
a payment by the Company on account of such Senior Indebtedness, it being
understood that 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.
<PAGE>
SECTION 1404. Obligation of Company Unconditional.
Nothing contained in this Article or elsewhere in this
Indenture or in the Securities is intended to or shall impair, as among the
Company, its creditors other than the holders of Senior Indebtedness and the
Holders, the obligation of the Company, which is absolute and unconditional, to
pay to the Holders the principal of and any premium or interest on the
Securities as and when the same shall become due and payable in accordance with
their terms, or is intended to or shall affect the relative rights of the
Holders and creditors of the Company other than the holders of Senior
Indebtedness, nor shall anything herein or therein prevent the Trustee or any
Holder 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 in respect of cash, property or securities
of the Company received upon the exercise of any such remedy.
Upon payment or distribution of assets of the Company referred
to in this Article, the Trustee and the Holders shall be entitled to rely upon
any order or decree made by any court of competent jurisdiction in which any
such dissolution, winding up, liquidation or reorganization proceeding affecting
the affairs of the Company is pending or upon a certificate of the trustee in
bankruptcy, receiver, assignee for the benefit of creditors, liquidating trustee
or agent or other person making any payment or distribution, delivered to the
Trustee or to the Holders, 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.
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 or representative on behalf of such holder) to
establish that such notice has been given by a holder of Senior Indebtedness or
a trustee or representative on behalf of any such holder or holders. 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 payment to such Person pending judicial determination as to
the right of such Person to receive such payment.
SECTION 1405. Payments on Securities Permitted.
Nothing contained in this Article or elsewhere in this
Indenture or in the Securities shall affect the obligations of the Company to
make, or prevent the Company from making, payment of the principal of or any
premium or interest on the Securities in accordance with the provisions hereof
and thereof, except as otherwise provided in this Article.
<PAGE>
SECTION 1406. Effectuation of Subordination by Trustee.
Each Holder of Securities, by his acceptance thereof,
authorizes and directs the Trustee in his, her or its behalf to take such action
as may be necessary or appropriate to effectuate the subordination provided in
this Article and appoints the Trustee his, her or its attorney-in-fact, as the
case may be, for any and all such purposes.
SECTION 1407. Knowledge of Trustee.
The Company shall give prompt written notice to the Trustee of
any fact known to the Company that would prohibit the making of any payment of
moneys to or by the Trustee in respect of the Securities pursuant to the
provisions of this Article. Notwithstanding the provisions of this Article or
any other provisions of this Indenture, the Trustee shall not be charged with
knowledge of the existence of any facts that would prohibit the making of any
payment of moneys to or by the Trustee, or the taking of any other action by the
Trustee, unless and until the Trustee shall have received written notice thereof
mailed or delivered to the Trustee at its Corporate Trust Office from the
Company, any Holder, any paying agent or the holder or representative of any
Senior Indebtedness; provided that if at least two Business Days prior to the
date upon which by the terms hereof any such moneys may become payable for any
purpose (including, without limitation, the payment of the principal or any
premium or interest on any Security) the Trustee shall not have received with
respect to such moneys the notice provided for in this Section, then, anything
herein contained to the contrary notwithstanding, the Trustee shall have full
power and authority to receive such moneys and to apply the same to the purpose
for which they were received and shall not be affected by any notice to the
contrary that may be received by it within two Business Days prior to or on or
after such date.
SECTION 1408. Trustee May Hold Senior Indebtedness.
The Trustee in its individual capacity shall be entitled to
all the rights set forth in this Article with respect to any Senior Indebtedness
at the time 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.
SECTION 1409. Rights of Holders of Senior Indebtedness Not Impaired.
No right of any present or future holder of any Senior
Indebtedness to enforce the subordination herein shall at any time or in any way
be prejudiced or impaired by any act or failure to act on the part of the
Company or by any noncompliance by the Company with the terms, provisions and
covenants of this Indenture, regardless of any knowledge thereof which any such
holder may have or be otherwise charged with.
With respect to the holders of Senior Indebtedness, (i) the
duties and obligations of the Trustee shall be determined solely by the express
provisions of this Indenture; (ii) the Trustee shall not be liable except for
the performance of such duties and obligations as are specifically set forth in
this Indenture; (iii) no implied covenants or obligations shall be read into
this Indenture against the Trustee; and (iv) the Trustee shall not be deemed to
be a fiduciary as to such holders.
<PAGE>
SECTION 1410. Trust Moneys Not Subordinated.
Notwithstanding anything contained herein to the contrary,
payments from money or U.S. Government Obligations held in trust under Article
Four or Article Thirteen by the Trustee for the payment of principal of and any
premium or interest on the Securities of any series shall not be subordinated to
the prior payment of any Senior Indebtedness of the Company or subject to the
restrictions set forth in this Article and none of the Holders shall be
obligated to pay over any such amount to the Company or any holder of Senior
Indebtedness or any other creditor of the Company.
SECTION 1411. 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 shall
otherwise require) 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 Sections 1407 and 1408 shall not apply to the Company if it acts
as its own paying agent.
SECTION 1412. Trustee; Compensation Not Prejudiced.
Nothing in this Article shall apply to claims of, or payments
to, the Trustee pursuant to Section 607.
<PAGE>
ARTICLE FIFTEEN
IMMUNITY OF INCORPORATORS, STOCKHOLDERS,
OFFICERS AND DIRECTORS
SECTION 1501. Indenture and Securities Solely Corporate Obligations.
No recourse for the payment of the principal of or any premium
or interest on any Security, or for any claim based thereon or otherwise in
respect thereof, and no recourse under or upon any obligation, covenant or
agreement of the Company in this Indenture or in any supplemental indenture, or
in any Security, or because of the creation of any indebtedness represented
thereby, shall be had against any incorporator, stockholder, officer or
director, as such, past, present or future, of the Company or of any successor
corporation, either directly or 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 or penalty or otherwise; it being expressly
understood that all such liability is hereby expressly waived and released as a
condition of, and as a consideration for, the execution of this Indenture and
the issue of the Securities.
--------------------
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 to be duly executed, and their respective corporate seals to be
hereunto affixed and attested, all as of the day and year first above written.
VIRGINIA ELECTRIC AND POWER COMPANY
By_________________________________
President
Attest:
- ------------------------------
THE CHASE MANHATTAN BANK
By_________________________________
Vice President
Attest:
- ------------------------------
<PAGE>
COMMONWEALTH OF VIRGINIA)
) ss.:
CITY OF RICHMOND )
On the day of __________, ____, before me personally came , to
me known, who, being duly sworn, did depose and say that he is of VIRGINIA
ELECTRIC AND POWER COMPANY, one of the corporations described in and which
executed the foregoing instrument; that he knows the seal of said corporation;
that the seal affixed to said instrument is such corporate seal; that it was so
affixed by authority of the Board of Directors of said corporation; and that he
signed his name thereto by like authority.
------------------------------------
Notary Public
[NOTARIAL SEAL]
STATE OF NEW YORK )
) ss.:
COUNTY OF NEW YORK )
On the day of __________, ____, before me personally came , to me
known, who, being by me duly sworn, did depose and say that he is of THE CHASE
MANHATTAN BANK, one of the corporations described in and which executed the
foregoing instrument; that he knows the seal of said corporation; that the seal
affixed to said instrument is such corporate seal; that it was so affixed by
authority of the Board of Directors of said corporation; and that he signed his
name thereto by like authority.
--------------------------------
Notary Public
[NOTARIAL SEAL]
<PAGE>
Exhibit 5
[LETTERHEAD OF HUNTON & WILLIAMS]
FILE NO.: 23350.346140
DIRECT DIAL: (804) 788-8637
February 27, 1998
Virginia Electric and Power Company
Richmond, Virginia 23219
Virginia Electric and Power Company
First and Refunding Mortgage Bonds
----------------------------------
Gentlemen:
We consent that this opinion may be filed as an Exhibit to the
Registration Statement on Form S-3 of Virginia Electric and Power Company (the
Company) that is being filed with the Securities and Exchange Commission on or
about February 27, 1998 in connection with the registration of up to $375
million aggregate principal amount of Debt Securities, including First and
Refunding Mortgage Bonds, Senior Notes and Senior Subordinated Notes (together,
the "Debt Securities") under and pursuant to one of (i) the Indenture of
Mortgage dated November 1, 1935, as heretofore supplemented and modified by
eighty-five supplemental indentures and as to be further supplemented by one or
more additional supplemental indentures (the Supplemental Indentures) to be
entered into in connection with the Bonds (the Mortgage), (ii) the Senior
Indenture dated _________, ____ and (iii) the Senior Subordinated Indenture,
dated _____________, ____, respectively.
We are of the opinion that the Company is a corporation duly organized
and existing under the laws of Virginia, is duly qualified as a foreign
corporation in West Virginia and North Carolina, and has corporate power to
conduct its business and issue the Debt Securities.
We are further of the opinion that when the steps mentioned in the next
paragraph below shall have been taken, (a) all requisite corporate and
governmental authorizations will have been given for the issuance and sale of
the Debt Securities (except such governmental authorization as may be necessary
under the blue sky laws of the several states), and (b) the Debt Securities will
be valid, legal and binding obligations of the Company (subject, as to
enforceability, to applicable bankruptcy, moratorium and similar laws from time
to time in force) and entitled as to the Bonds, except as stated below, to the
security purportedly afforded by the
<PAGE>
Virginia Electric and Power Company
February 27, 1998
Page 2
Mortgage (except that (i) the lien may not be valid as against purchasers with
respect to real property in Virginia and West Virginia acquired after
recordation of a further supplemental indenture, (ii) the lien with respect to
personal property held by bailees may be defeated and (iii) no opinion is
expressed as to the validity or enforceability of any covenant to pay interest
on defaulted interest). The Mortgage contains customary provisions for the
enforcement of the security provided for therein, certain of which may be
limited by the laws of Virginia, West Virginia or North Carolina and by the
Atomic Energy Act, as amended (but such laws and Act do not, in our opinion,
make inadequate the remedies necessary to the realization of the benefits of
such security) and may also be limited or rendered unavailable by bankruptcy,
moratorium and similar laws from time to time in force.
The steps to be taken as indicated in the preceding paragraph are:
(1) authorization of the issuance and sale of the Debt Securities by
the Board of Directors of the Company and the State Corporation Commission of
Virginia;
(2) approval of certain terms of the Debt Securities by the Executive
Committee of the Company;
(3) compliance with the Securities Act of 1933, as amended;
(4) execution and recordation of the Supplemental Indentures, or
execution of the Senior Note Indenture and the Senior Subordinated Note
Indenture, as the case may be;
(5) filing of the Supplemental Indentures in the office of the
Secretary of State of West Virginia; and
(6) issuance and sale of the Debt Securities in accordance with such
authorizations.
Insofar as this opinion relates to any matter governed by the laws of
West Virginia, we base it on the opinion of Jackson & Kelly, Charleston, West
Virginia, evidenced by their consents to the statements made in regard to them
under the caption EXPERTS in the Registration Statement. But we express no
opinion with respect to any matter governed by the laws of West Virginia in
regard to property titles, franchises or the lien of the Mortgage.
<PAGE>
Virginia Electric and Power Company
February 27, 1998
Page 3
We hereby consent to the statements made in regard to our firm under
the captions EXPERTS and LEGAL OPINIONS in the Registration Statement.
The opinions expressed in this letter are solely for your information
and use, and no other person may rely upon or otherwise use the opinions for any
purpose without our express written consent.
Very truly yours,
HUNTON & WILLIAMS
Exhibit 12
<TABLE>
<CAPTION>
VIRGINIA ELECTRIC AND POWER COMPANY
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(thousands of dollars)
For the Years
---------------------------------------------------------------------------
1997 1996 1995 1994 1993
---------- --------- ---------- ---------- ----------
<S> <C>
Net Income $469,114 $457,304 $432,844 $447,144 $509,051
Add: Income Taxes 249,292 240,189 227,507 225,647 257,217
---------- --------- ---------- ---------- ----------
Total Pretax Net Income $718,406 $697,493 $660,351 $672,791 $766,268
========== ========= ========== ========== ==========
Fixed Charges:
Interest on Long-Term Debt $274,850 $287,928 $302,618 $291,864 $300,152
Other Interest 30,703 22,380 19,998 7,551 19,121
Paid Distribution of
Affiliate 10,868 10,868 3,653
Estimated Interest Factor
of Rents Charged to
Operating Expenses,
Clearing & Other
Accounts 8,595 6,291 6,475 7,132 5,660
---------- --------- ---------- ---------- ----------
Total Fixed Charges $325,016 $327,467 $332,744 $306,547 $324,933
========== ========= ========== ========== ==========
Earnings as Defined $1,043,422 $1,024,960 $993,095 $979,338 $1,091,201
========== ========= ========== ========== ==========
Ratio of Earnings to
Fixed Charges 3.21 3.13 2.99 3.20 3.36
========== ========= ========== ========== ==========
</TABLE>
Exhibit 23(ii)
JACKSON & KELLY
1600 LAIDLEY TOWER, P.O. BOX 553
CHARLESTON, WEST VIRGINIA 25322
----------------
February 27, 1998
Virginia Electric and Power Company
Richmond, Virginia 23261
Ladies & Gentlemen:
We hereby consent to the statements made in respect to our firm
under the caption "EXPERTS" appearing in the Registration Statement on
Form S-3 (and the prospectus included therein) of Virginia Electric and Power
Company to be filed on or about February 27, 1998, with the Securities and
Exchange Commission under the provisions of the Securities Act of 1933,
as amended, for registration of up to $375 million aggregate principal
amount of its Debt Securities.
Very truly yours,
JACKSON & KELLY
Exhibit 23 (iii)
INDEPENDENT AUDITORS' CONSENT
We consent to the incorporation by reference in this Registration Statement of
Virginia Electric and Power Company on Form S-3 of our report dated February 11,
1997, appearing in the Annual Report on Form 10-K of Virginia Electric and Power
Company for the year ended December 31, 1996 and to the reference to us under
the heading "Experts" in the Prospectus, which is part of this Registration
Statement.
DELOITTE & TOUCHE LLP
Richmond, Virginia
February 27, 1998
Exhibit 25(i)
-------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
-------------------------
FORM T-1
STATEMENT OF ELIGIBILITY
UNDER THE TRUST INDENTURE ACT OF 1939 OF
A CORPORATION DESIGNATED TO ACT AS TRUSTEE
-------------------------------------------
CHECK IF AN APPLICATION TO DETERMINE ELIGIBILITY OF
A TRUSTEE PURSUANT TO SECTION 305(b)(2) ________
----------------------------------------
THE CHASE MANHATTAN BANK
(Exact name of trustee as specified in its charter)
New York 13-4994650
(State of incorporation (I.R.S. employer
if not a national bank) identification No.)
270 Park Avenue
New York, New York 10017
(Address of principal executive offices) (Zip Code)
William H. McDavid
General Counsel
270 Park Avenue
New York, New York 10017
Tel: (212) 270-2611
(Name, address and telephone number of agent for service)
---------------------------------------------
Virginia Electric and Power Company
(Exact name of obligor as specified in its charter)
Virginia 54-0418825
(State or other jurisdiction of (I.R.S. employer
incorporation or organization) identification No.)
701 East Cary Street
Richmond, Virginia 23219-3932
(Address of principal executive offices) (Zip Code)
First and Refunding Mortgage Bonds
(Title of the indenture securities)
<PAGE>
GENERAL
Item 1. General Information.
Furnish the following information as to the trustee:
(a) Name and address of each examining or supervising authority to
which it is subject.
New York State Banking Department, Suite 2310,
5 Empire State Plaza, Albany, New York 12223.
Board of Governors of the Federal Reserve System
20th and C Street NW, Washington, D.C., 20551 Federal Reserve Bank
of New York,
District No. 2, 33 Liberty Street, New York, N.Y. 10045.
Federal Deposit Insurance Corporation, 550 Seventeenth Street NW
Washington, D.C., 20429.
(b) Whether it is authorized to exercise corporate trust powers.
Yes.
Item 2. Affiliations with the Obligor.
If the obligor is an affiliate of the trustee, describe each such
affiliation.
None.
- 2 -
<PAGE>
Item 16. List of Exhibits
List below all exhibits filed as a part of this Statement of
Eligibility.
1. A copy of the Articles of Association of the Trustee as now in
effect, including the Organization Certificate and the Certificates of Amendment
dated February 17, 1969, August 31, 1977, December 31, 1980, September 9, 1982,
February 28, 1985, December 2, 1991 and July 10, 1996 (see Exhibit 1 to Form T-1
filed in connection with Registration Statement No. 333-06249, which is
incorporated by reference).
2. A copy of the Certificate of Authority of the Trustee to Commence
Business (see Exhibit 2 to Form T-1 filed in connection with Registration
Statement No. 33-50010, which is incorporated by reference. On July 14, 1996, in
connection with the merger of Chemical Bank and The Chase Manhattan Bank
(National Association), Chemical Bank, the surviving corporation, was renamed
The Chase Manhattan Bank).
3. None, authorization to exercise corporate trust powers being
contained in the documents identified above as Exhibits 1 and 2.
4. A copy of the existing By-Laws of the Trustee (see Exhibit 4 to
Form T-1 filed in connection with Registration Statement No. 333-06249, which is
incorporated by reference).
5. Not applicable.
6. The consent of the Trustee required by Section 321(b) of the Act
(see Exhibit 6 to Form T-1 filed in connection with Registration Statement No.
33-50010, which is incorporated by reference. On July 14, 1996, in connection
with the merger of Chemical Bank and The Chase Manhattan Bank (National
Association), Chemical Bank, the surviving corporation, was renamed The Chase
Manhattan Bank).
7. A copy of the latest report of condition of the Trustee, published
pursuant to law or the requirements of its supervising or examining authority.
8. Not applicable.
9. Not applicable.
SIGNATURE
Pursuant to the requirements of the Trust Indenture Act of 1939 the
Trustee, The Chase Manhattan Bank, a corporation organized and existing under
the laws of the State of New York, has duly caused this statement of eligibility
to be signed on its behalf by the undersigned, thereunto duly authorized, all in
the City of New York and State of New York, on the 19th day of February, 1998.
THE CHASE MANHATTAN BANK
By /s/ P. Kelly
-----------------
P. Kelly
Vice President
- 3 -
<PAGE>
Exhibit 7 to Form T-1
Bank Call Notice
RESERVE DISTRICT NO. 2
CONSOLIDATED REPORT OF CONDITION OF
The Chase Manhattan Bank
of 270 Park Avenue, New York, New York 10017
and Foreign and Domestic Subsidiaries,
a member of the Federal Reserve System,
at the close of business December 31, 1997,
in accordance with a call made by the Federal Reserve
Bank of this District pursuant to the provisions of
the Federal Reserve Act.
<TABLE>
<CAPTION>
Dollar Amounts
ASSETS in Millions
<S> <C>
Cash and balances due from depository institutions:
Noninterest-bearing balances and
currency and coin .................................... 12,428
Interest-bearing balances ............................ 3,428
Securities: ..............................................
Held to maturity securities................................ 2,561
Available for sale securities.............................. 43,058
Federal funds sold and securities purchased under
agreements to resell ................................. 29,633
Loans and lease financing receivables:
Loans and leases, net of unearned income $129,260
Less: Allowance for loan and lease losses 2,783
Less: Allocated transfer risk reserve ... 0
----------
Loans and leases, net of unearned income,
allowance, and reserve ............................... 26,477
Trading Assets ............................................ 62,575
Premises and fixed assets (including capitalized
leases)............................................... 2,943
Other real estate owned ................................... 295
Investments in unconsolidated subsidiaries and
associated companies.................................. 231
Customers' liability to this bank on acceptances
outstanding .......................................... 1,698
Intangible assets ......................................... 1,466
Other assets .............................................. 10,268
------
TOTAL ASSETS .............................................. $297,061
========
</TABLE>
- 4 -
<PAGE>
<PAGE>
<TABLE>
<CAPTION>
LIABILITIES
<S> <C>
Deposits
In domestic offices ................................. $94,524
Noninterest-bearing ..........................$39,487
Interest-bearing ............................. 55,037
------
In foreign offices, Edge and Agreement,
subsidiaries and IBF's .............................. 71,162
Noninterest-bearing ..........................$ 3,205
Interest-bearing ............................. 67,957
Federal funds purchased and securities sold under agree-
ments to repurchase ...................................... 43,181
Demand notes issued to the U.S. Treasury ................. 1,000
Trading liabilities ...................................... 48,903
Otherborrowed money (includes mortgage indebtedness and obligations under
capitalized leases):
With a remaining maturity of one year or less ....... 3,599
With a remaining maturity of more than one year......
through three years........................... 253
With a remaining maturity of more than three years.. 132
Bank's liability on acceptances executed and outstanding 1,698
Subordinated notes and debentures ........................ 5,715
Other liabilities ........................................ 9,896
TOTAL LIABILITIES ........................................ 280,063
-------
</TABLE>
<TABLE>
<CAPTION>
EQUITY CAPITAL
<S> <C>
Perpetual preferred stock and related surplus 0
Common stock ............................................. 1,211
Surplus (exclude all surplus related to preferred stock). 10,291
Undivided profits and capital reserves ................... 5,502
Net unrealized holding gains (losses)
on available-for-sale securities ......................... (22)
Cumulative foreign currency translation adjustments ...... 16
TOTAL EQUITY CAPITAL ..................................... 16,998
------
TOTAL LIABILITIES AND EQUITY CAPITAL ..................... $297,061
=========
</TABLE>
I, Joseph L. Sclafani, E.V.P. & Controller of the above-named bank, do hereby
declare that this Report of Condition has been prepared in conformance with the
instructions issued by the appropriate Federal regulatory authority and is true
to the best of my knowledge and belief.
JOSEPH L. SCLAFANI
We, the undersigned directors, attest to the correctness of this Report of
Condition and declare that it has been examined by us, and to the best of our
knowledge and belief has been prepared in conformance with the instructions
issued by the appropriate Federal regulatory authority and is true and correct.
WALTER V. SHIPLEY )
THOMAS G. LABRECQUE ) DIRECTORS
WILLIAM B. HARRISON, JR.)
-5-
Exhibit 25(ii)
-------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
-------------------------
FORM T-1
STATEMENT OF ELIGIBILITY
UNDER THE TRUST INDENTURE ACT OF 1939 OF
A CORPORATION DESIGNATED TO ACT AS TRUSTEE
-------------------------------------------
CHECK IF AN APPLICATION TO DETERMINE ELIGIBILITY OF
A TRUSTEE PURSUANT TO SECTION 305(b)(2) ________
----------------------------------------
THE CHASE MANHATTAN BANK
(Exact name of trustee as specified in its charter)
New York 13-4994650
(State of incorporation (I.R.S. employer
if not a national bank) identification No.)
270 Park Avenue
New York, New York 10017
(Address of principal executive offices) (Zip Code)
William H. McDavid
General Counsel
270 Park Avenue
New York, New York 10017
Tel: (212) 270-2611
(Name, address and telephone number of agent for service)
---------------------------------------------
Virginia Electric and Power Company
(Exact name of obligor as specified in its charter)
Virginia 54-0418825
(State or other jurisdiction of (I.R.S. employer
incorporation or organization) identification No.)
701 East Cary Street
Richmond, Virginia 23219-3932
(Address of principal executive offices) (Zip Code)
Senior Notes
(Title of the indenture securities)
GENERAL
Item 1. General Information.
Furnish the following information as to the trustee:
(a) Name and address of each examining or supervising authority to
which it is subject.
New York State Banking Department, Suite 2310, 5 Empire State
Plaza, Albany, New York 12223.
Board of Governors of the Federal Reserve System 20th and C Street
NW, Washington, D.C., 20551
Federal Reserve Bank of New York, District No. 2, 33 Liberty
Street, New York, N.Y. 10045.
Federal Deposit Insurance Corporation, 550 Seventeenth Street NW
Washington, D.C., 20429.
(b) Whether it is authorized to exercise corporate trust powers.
Yes.
Item 2. Affiliations with the Obligor.
If the obligor is an affiliate of the trustee, describe each such
affiliation.
None.
- 2 -
<PAGE>
Item 16. List of Exhibits
List below all exhibits filed as a part of this Statement of
Eligibility.
1. A copy of the Articles of Association of the Trustee as now in
effect, including the Organization Certificate and the Certificates of Amendment
dated February 17, 1969, August 31, 1977, December 31, 1980, September 9, 1982,
February 28, 1985, December 2, 1991 and July 10, 1996 (see Exhibit 1 to Form T-1
filed in connection with Registration Statement No. 333-06249, which is
incorporated by reference).
2. A copy of the Certificate of Authority of the Trustee to Commence
Business (see Exhibit 2 to Form T-1 filed in connection with Registration
Statement No. 33-50010, which is incorporated by reference. On July 14, 1996, in
connection with the merger of Chemical Bank and The Chase Manhattan Bank
(National Association), Chemical Bank, the surviving corporation, was renamed
The Chase Manhattan Bank).
3. None, authorization to exercise corporate trust powers being
contained in the documents identified above as Exhibits 1 and 2.
4. A copy of the existing By-Laws of the Trustee (see Exhibit 4 to
Form T-1 filed in connection with Registration Statement No. 333-06249, which is
incorporated by reference).
5. Not applicable.
6. The consent of the Trustee required by Section 321(b) of the Act
(see Exhibit 6 to Form T-1 filed in connection with Registration Statement No.
33-50010, which is incorporated by reference. On July 14, 1996, in connection
with the merger of Chemical Bank and The Chase Manhattan Bank (National
Association), Chemical Bank, the surviving corporation, was renamed The Chase
Manhattan Bank).
7. A copy of the latest report of condition of the Trustee, published
pursuant to law or the requirements of its supervising or examining authority.
8. Not applicable.
9. Not applicable.
SIGNATURE
Pursuant to the requirements of the Trust Indenture Act of 1939 the
Trustee, The Chase Manhattan Bank, a corporation organized and existing under
the laws of the State of New York, has duly caused this statement of eligibility
to be signed on its behalf by the undersigned, thereunto duly authorized, all in
the City of New York and State of New York, on the 19th day of February, 1998.
THE CHASE MANHATTAN BANK
By /s/ P. Kelly
-----------------------------
P. Kelly
Vice President
- 3 -
<PAGE>
Exhibit 7 to Form T-1
Bank Call Notice
RESERVE DISTRICT NO. 2
CONSOLIDATED REPORT OF CONDITION OF
The Chase Manhattan Bank
of 270 Park Avenue, New York, New York 10017
and Foreign and Domestic Subsidiaries,
a member of the Federal Reserve System,
at the close of business December 31, 1997,
in accordance with a call made by the Federal Reserve
Bank of this District pursuant to the provisions of
the Federal Reserve Act.
Dollar Amounts
ASSETS in Millions
Cash and balances due from depository institutions:
Noninterest-bearing balances and
currency and coin ................................................$ 12,428
Interest-bearing balances ........................................ 3,428
Securities: ..........................................................
Held to maturity securities............................................ 2,561
Available for sale securities.......................................... 43,058
Federal funds sold and securities purchased under
agreements to resell ............................................. 29,633
Loans and lease financing receivables:
Loans and leases, net of unearned income..........................$129,260
Less: Allowance for loan and lease losses......................... 2,783
Less: Allocated transfer risk reserve ............................ 0
--------
Loans and leases, net of unearned income,
allowance, and reserve ........................................... 126,477
Trading Assets ........................................................ 62,575
Premises and fixed assets (including capitalized
leases)........................................................... 2,943
Other real estate owned ............................................... 295
Investments in unconsolidated subsidiaries and
associated companies.............................................. 231
Customers' liability to this bank on acceptances
outstanding ...................................................... 1,698
Intangible assets ..................................................... 1,466
Other assets .......................................................... 10,268
--------
TOTAL ASSETS ..........................................................$297,061
========
- 4 -
<PAGE>
LIABILITIES
Deposits
In domestic offices .............................................. $94,524
Noninterest-bearing .............................................. $39,487
Interest-bearing ................................................. 55,037
In foreign offices, Edge and Agreement,
subsidiaries and IBF's ........................................... 71,162
Noninterest-bearing .............................................. $ 3,205
Interest-bearing ................................................. 67,957
Federal funds purchased and securities sold under agree-
ments to repurchase ................................................. 43,181
Demand notes issued to the U.S. Treasury .............................. 1,000
Trading liabilities ................................................... 48,903
Otherborrowed money (includes mortgage indebtedness and obligations
under capitalized leases):
With a remaining maturity of one year or less .................... 3,599
With a remaining maturity of more than one year
through three years........................................ 253
With a remaining maturity of more than three years............... 132
Bank's liability on acceptances executed and outstanding............... 1,698
Subordinated notes and debentures ..................................... 5,715
Other liabilities ..................................................... 9,896
TOTAL LIABILITIES ..................................................... 280,063
-------
EQUITY CAPITAL
Perpetual preferred stock and related surplus.......................... 0
Common stock .......................................................... 1,211
Surplus (exclude all surplus related to preferred stock).............. 10,291
Undivided profits and capital reserves ................................ 5,502
Net unrealized holding gains (losses)
on available-for-sale securities .................................... (22)
Cumulative foreign currency translation adjustments ................... 16
TOTAL EQUITY CAPITAL .................................................. 16,998
------
TOTAL LIABILITIES AND EQUITY CAPITAL ..................................$297,061
========
I, Joseph L. Sclafani, E.V.P. & Controller of the above-named bank, do hereby
declare that this Report of Condition has been prepared in conformance with the
instructions issued by the appropriate Federal regulatory authority and is true
to the best of my knowledge and belief.
JOSEPH L. SCLAFANI
We, the undersigned directors, attest to the correctness of this Report of
Condition and declare that it has been examined by us, and to the best of our
knowledge and belief has been prepared in conformance with the instructions
issued by the appropriate Federal regulatory authority and is true and correct.
WALTER V. SHIPLEY )
THOMAS G. LABRECQUE ) DIRECTORS
WILLIAM B. HARRISON, JR.)
-5-
Exhibit 25(iii)
- -------------------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
_________________________
FORM T-1
STATEMENT OF ELIGIBILITY
UNDER THE TRUST INDENTURE ACT OF 1939 OF
A CORPORATION DESIGNATED TO ACT AS TRUSTEE
___________________________________________
CHECK IF AN APPLICATION TO DETERMINE ELIGIBILITY OF
A TRUSTEE PURSUANT TO SECTION 305(b)(2) ________
________________________________________
THE CHASE MANHATTAN BANK
(Exact name of trustee as specified in its charter)
New York 13-4994650
(State of incorporation (I.R.S. employer
if not a national bank) identification No.)
270 Park Avenue
New York, New York 10017
(Address of principal executive offices) (Zip Code)
William H. McDavid
General Counsel
270 Park Avenue
New York, New York 10017
Tel: (212) 270-2611
(Name, address and telephone number of agent for service)
_____________________________________________
Virginia Electric and Power Company
(Exact name of obligor as specified in its charter)
Virginia 54-0418825
(State or other jurisdiction of (I.R.S. employer
incorporation or organization) identification No.)
701 East Cary Street
Richmond, Virginia 23219-3932
(Address of principal executive offices) (Zip Code)
_____________________________________________
Senior Subordinated Notes
(Title of the indenture securities)
________________________________________________________________________________
GENERAL
Item 1. General Information.
Furnish the following information as to the trustee:
(a) Name and address of each examining or supervising authority to
which it is subject.
New York State Banking Department, Suite 2310,
5 Empire State Plaza, Albany, New York 12223.
Board of Governors of the Federal Reserve System
20th and C Street NW, Washington, D.C., 20551
Federal Reserve Bank of New York, District No. 2,
33 Liberty Street, New York, N.Y. 10045.
Federal Deposit Insurance Corporation, 550 Seventeenth Street NW
Washington, D.C., 20429.
(b) Whether it is authorized to exercise corporate trust powers.
Yes.
Item 2. Affiliations with the Obligor.
If the obligor is an affiliate of the trustee, describe each such
affiliation.
None.
- 2 -
<PAGE>
Item 16. List of Exhibits
List below all exhibits filed as a part of this Statement of
Eligibility.
1. A copy of the Articles of Association of the Trustee as
now in effect, including the Organization Certificate and the Certificates
of Amendment dated February 17, 1969, August 31, 1977, December 31, 1980,
September 9, 1982, February 28, 1985, December 2, 1991 and July 10, 1996 (see
Exhibit 1 to Form T-1 filed in connection with Registration Statement No.
333-06249, which is incorporated by reference).
2. A copy of the Certificate of Authority of the Trustee to
Commence Business (see Exhibit 2 to Form T-1 filed in connection with
Registration Statement No. 33-50010, which is incorporated by reference. On
July 14, 1996, in connection with the merger of Chemical Bank and The Chase
Manhattan Bank (National Association), Chemical Bank, the surviving
corporation, was renamed The Chase Manhattan Bank).
3. None, authorization to exercise corporate trust powers
being contained in the documents identified above as Exhibits 1 and 2.
4. A copy of the existing By-Laws of the Trustee (see Exhibit 4
to Form T-1 filed in connection with Registration Statement No. 333-06249,
which is incorporated by reference).
5. Not applicable.
6. The consent of the Trustee required by Section 321(b) of the
Act (see Exhibit 6 to Form T-1 filed in connection with Registration Statement
No. 33-50010, which is incorporated by reference. On July 14, 1996, in
connection with the merger of Chemical Bank and The Chase Manhattan Bank
(National Association), Chemical Bank, the surviving corporation, was renamed
The Chase Manhattan Bank).
7. A copy of the latest report of condition of the Trustee,
published pursuant to law or the requirements of its supervising or examining
authority.
8. Not applicable.
9. Not applicable.
SIGNATURE
Pursuant to the requirements of the Trust Indenture Act of 1939 the
Trustee, The Chase Manhattan Bank, a corporation organized and existing under
the laws of the State of New York, has duly caused this statement of eligibility
to be signed on its behalf by the undersigned, thereunto duly authorized, all in
the City of New York and State of New York, on the 19th day of February,
1998.
THE CHASE MANHATTAN BANK
By /s/ P. Kelly
--------------------
P. Kelly
Vice President
- 3 -
<PAGE>
Exhibit 7 to Form T-1
Bank Call Notice
RESERVE DISTRICT NO. 2
CONSOLIDATED REPORT OF CONDITION OF
The Chase Manhattan Bank
of 270 Park Avenue, New York, New York 10017
and Foreign and Domestic Subsidiaries,
a member of the Federal Reserve System,
at the close of business December 31, 1997, in
accordance with a call made by the Federal Reserve Bank of this
District pursuant to the provisions of the Federal Reserve Act.
<TABLE>
<CAPTION>
Dollar Amounts
ASSETS in Millions
<S> <C>
Cash and balances due from depository institutions:
Noninterest-bearing balances and
currency and coin ........................................... $ 12,428
Interest-bearing balances ................................... 3,428
Securities: .....................................................
Held to maturity securities.......................................2,561
Available for sale securities..................................... 43,058
Federal funds sold and securities purchased under
agreements to resell ........................................ 29,633
Loans and lease financing receivables:
Loans and leases, net of unearned income $129,260
Less: Allowance for loan and lease losses 2,783
Less: Allocated transfer risk reserve ......... 0
--------
Loans and leases, net of unearned income,
allowance, and reserve ...................................... 126,477
Trading Assets ........................................ .......... 62,575
Premises and fixed assets (including capitalized
leases)...................................................... 2,943
Other real estate owned .......................................... 295
Investments in unconsolidated subsidiaries and
associated companies......................................... 231
Customers' liability to this bank on acceptances
outstanding ................................................. 1,698
Intangible assets ................................................ 1,466
Other assets ..................................................... 10,268
------
TOTAL ASSETS ..................................................... $297,061
=========
</TABLE>
- 4 -
<TABLE>
<CAPTION>
LIABILITIES
<S> <C>
Deposits
In domestic offices ......................................... $94,524
Noninterest-bearing ..................................$39,487
Interest-bearing ..................................... 55,037
------
In foreign offices, Edge and Agreement,
subsidiaries and IBF's ...................................... 71,162
Noninterest-bearing ..................................$ 3,205
Interest-bearing ..................................... 67,957
Federal funds purchased and securities sold under agree-
ments to repurchase ............................................... 43,181
Demand notes issued to the U.S. Treasury .......................... 1,000
Trading liabilities ............................................... 48,903
Other borrowed money (includes mortgage indebtedness
and obligations under capitalized leases):
With a remaining maturity of one year or less ................ 3,599
With a remaining maturity of more than one year .
through three years.................................... 253
With a remaining maturity of more than three years........... 132
Bank's liability on acceptances executed and outstanding 1,698
Subordinated notes and debentures ................................. 5,715
Other liabilities ................................................. 9,896
TOTAL LIABILITIES ................................................. 280,063
-------
</TABLE>
EQUITY CAPITAL
<TABLE>
<CAPTION>
<S> <C>
Perpetual preferred stock and related surplus 0
Common stock ...................................................... 1,211
Surplus (exclude all surplus related to preferred stock)... 10,291
Undivided profits and capital reserves ............................ 5,502
Net unrealized holding gains (losses)
on available-for-sale securities .................................. (22)
Cumulative foreign currency translation adjustments ............... 16
TOTAL EQUITY CAPITAL .............................................. 16,998
______
TOTAL LIABILITIES AND EQUITY CAPITAL .............................. $297,061
========
</TABLE>
I, Joseph L. Sclafani, E.V.P. & Controller of the above-named
bank, do hereby declare that this Report of Condition has
been prepared in conformance with the instructions issued
by the appropriate Federal regulatory authority and is true
to the best of my knowledge and belief.
JOSEPH L. SCLAFANI
We, the undersigned directors, attest to the correctness
of this Report of Condition and declare that it has been
examined by us, and to the best of our knowledge and
belief has been prepared in conformance with the in-
structions issued by the appropriate Federal regulatory
authority and is true and correct.
WALTER V. SHIPLEY )
THOMAS G. LABRECQUE ) DIRECTORS
WILLIAM B. HARRISON, JR.)
-5-
