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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED) APRIL 30, 1998
TRICON GLOBAL RESTAURANTS, INC.
(Exact name of registrant as specified in its charter)
NORTH CAROLINA 1-13163 93-3951308
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
1441 GARDINER LANE, LOUISVILLE, KENTUCKY 40213
(Address of principal executive offices) (ZIP code)
Registrant's telephone number, including area code:
(502) 874-8300
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<PAGE>
ITEM 5. OTHER EVENTS
Exhibits are filed herewith in connection with the Registration
Statement on Form S-3 (File No. 333-42969) declared effective by the
Securities and Exchange Commission on February 6, 1998 relating to an
aggregate of $2,000,000,000 of senior debt securities of TRICON Global
Restaurants, Inc.
ITEM 7. EXHIBITS
<TABLE>
<C> <S>
1.1 Underwriting Agreement, dated April 30, 1998, between TRICON
Global Restaurants, Inc. ("Tricon") and Goldman, Sachs & Co., as
representative for itself and the other Underwriters named
therein.
4.1 Indenture, dated as of May 1, 1998 (the "Indenture"), between
Tricon and The First National Bank of Chicago, as Trustee.
4.2 Officers' Certificate establishing each of Tricon's 7.45% Senior
Notes due May 15, 2005 and 7.65% Senior Notes due May 15, 2008 as
a series of securities under the Indenture.
4.3 Form of 7.45% Senior Note due May 15, 2005 (included in Exhibit
4.2).
4.4 Form of 7.65% Senior Note due May 15, 2008 (included in Exhibit
4.2).
</TABLE>
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
TRICON GLOBAL RESTAURANTS, INC.
(Registrant)
DATE: May 13, 1998 By:/s/ Christian L. Campbell
---------------------------------
Name: Christian L. Campbell
Title: Senior Vice President,
General Counsel and Secretary
<PAGE>
UNDERWRITING AGREEMENT
April 30, 1998
TRICON Global Restaurants, Inc.
1441 Gardiner Lane
Louisville, Kentucky 40213
Ladies and Gentlemen:
We (the "Manager") are acting on behalf of the underwriter or
underwriters (including ourselves) named below (such underwriter or underwriters
being herein called the "Underwriters"), and we understand that TRICON Global
Restaurants, Inc., a North Carolina corporation (the "Company"), proposes to
issue and sell $350,000,000 aggregate principal amount ($349,384,000 initial
offering price) of its 7.45% Senior Notes due May 15, 2005 (the "Seven-Year
Notes") and $250,000,000 aggregate principal amount ($249,437,500 initial
offering price) of its 7.65% Senior Notes due May 15, 2008 (the "Ten-Year
Notes" and, together with the Seven-Year Notes, the "Debt Securities").
Subject to the terms and conditions set forth or incorporated by
reference herein, the Company hereby agrees to sell and the Underwriters
agree to purchase, severally and not jointly, the (i) principal amount of the
Seven-Year Notes set forth opposite their names at a purchase price of
98.449% of the principal amount thereof plus accrued interest, if any, from
May 6, 1998 and (ii) principal amount of the Ten-Year Notes set forth
opposite their names at a purchase price of 98.275% of the principal amount
thereof plus accrued interest, if any, from May 5, 1998:
<PAGE>
<TABLE>
<CAPTION>
Principal Amount Principal Amount
Name of of
---- Seven-Year Notes Ten-Year Notes
---------------- ----------------
<S> <C> <C>
Goldman, Sachs & Co. $ 210,002,000 $ 150,001,000
Chase Securities Inc. 46,666,000 33,333,000
Lehman Brothers Inc. 46,666,000 33,333,000
Merrill Lynch, Pierce, Fenner & Smith
Incorporated 46,666,000 33,333,000
---------------- ----------------
$ 350,000,000 $ 250,000,000
---------------- ----------------
---------------- ----------------
</TABLE>
The Underwriters will pay for the Debt Securities upon delivery
thereof to the Depositary Trust Company ("DTC") or its designated custodian at
(i) in the case of the Seven-Year Notes, 10:00 a.m. (New York time) on May 6,
1998, or at such other time, not later than 5:00 p.m. (New York time) on May 6,
1998, as shall be designated by the Manager and (ii) in the case of the Ten-Year
Notes, 10:00 a.m. (New York time) on May 5, 1998, or at such other time, not
later than 5:00 p.m. (New York time) on May 5, 1998, as shall be designated by
the Manager. The times and dates of such payments and deliveries are each
hereinafter referred to successively as the "Closing Date."
The Debt Securities shall have the terms set forth in the Prospectus
dated April 15, 1998, as supplemented by the Prospectus Supplement dated April
30, 1998, including the following:
TERMS OF DEBT SECURITIES:
<TABLE>
<S> <C>
A. The Seven-Year Notes
Maturity Date: May 15, 2005
Interest Rate: 7.45%
Redemption Provisions: As set forth in the Prospectus Supplement
under "Description of Notes."
Interest Payment Dates: May 15 and November 15 commencing November 15,
1998 (interest accrues from May 6, 1998).
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Form and Denominations: Global Note registered in the name of Cede &
Co., as the nominee of DTC. Beneficial
interests in such Global Note will be in
denominations of $1,000 and integral
multiples thereof.
Ranking: The Seven-Year Notes will be senior unsecured
debt obligations of the Company issued under
the Indenture, dated as of May 1, 1998 (the
"Indenture"), by and among the Company, as
issuer, and The First National Bank of
Chicago, as trustee (the "Trustee"), and will
rank PARI PASSU with all other senior
unsecured indebtedness of the Company from
time to time outstanding.
B. The Ten-Year Notes
Maturity Date: May 15, 2008
Interest Rate: 7.65%
Redemption Provisions: As set forth in the Prospectus Supplement
under "Description of Notes."
Interest Payment Dates: May 15 and November 15 commencing November 15,
1998 (interest accrues from May 5, 1998).
Form and Denominations: Global Note registered in the name of Cede &
Co., as the nominee of DTC. Beneficial
Interests in such Global Note will be in
denominations of $1,000 and integral
multiples thereof.
Ranking: The Ten-Year Notes will be senior unsecured
debt obligations of the Company issued under
the Indenture and will rank PARI PASSU with
all other senior unsecured indebtedness of
the Company from time to time outstanding.
</TABLE>
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All provisions contained in the document entitled TRICON Global
Restaurants, Inc. Underwriting Agreement Standard Provisions (Debt Securities)
dated April 30, 1998, a copy of which is attached hereto, are hereby
incorporated by reference in their entirety and shall be deemed to be a part of
this Agreement to the same extent as if such provisions had been set forth in
full herein, except that if any term defined in such document is otherwise
defined herein, the definition set forth herein shall control.
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Please confirm your agreement by having an authorized officer sign a
copy of this Agreement in the space set forth below.
Very truly yours,
GOLDMAN, SACHS & CO.,
acting severally on behalf of themselves
and the Underwriters named herein
By: /s/ Michael R. Lynch
-------------------------------
Name: Michael R. Lynch
Title: Managing Director
NOTICE INFORMATION:
Goldman, Sachs & Co.
85 Broad Street
New York, NY 10004
Telephone No.: (212) 902-1000
Facsimile No.: (212) 902-3000
Accepted:
TRICON GLOBAL RESTAURANTS, INC.
By:/s/ Robert C. Lowes By: /s/ Sandra S. Wijnberg
---------------------------- ----------------------------
Name: Robert C. Lowes Name: Sandra S. Wijnberg
Title: Chief Financial Officer Title: Senior Vice President
and Treasurer
NOTICE INFORMATION:
TRICON Global Restaurants, Inc.
1441 Gardiner Lane
Louisville, Kentucky 40213
Telephone No.: (502) 874-1000
Facsimile No.: (502) 874-8016
Attention: Christian L. Campbell, Esq.
and Sandra S. Wijnberg
<PAGE>
TRICON GLOBAL RESTAURANTS, INC.
UNDERWRITING AGREEMENT
STANDARD PROVISIONS
(DEBT SECURITIES)
April 30, 1998
From time to time, TRICON Global Restaurants, Inc., a North Carolina
corporation (the "Company"), may enter into one or more underwriting agreements
that provide for the sale of designated securities to the several underwriters
named therein. The standard provisions set forth herein may be incorporated by
reference in any such underwriting agreement (an "Underwriting Agreement").
The Underwriting Agreement, including the provisions incorporated therein by
reference, is herein referred to as "this Agreement." Terms defined in this
Agreement are used herein as therein defined.
The Company has filed with the Securities and Exchange Commission (the
"Commission") a registration statement including a prospectus, which, among
other things, relates to the Debt Securities and has filed with, or transmitted
for filing to, or shall promptly hereafter file with or transmit for filing to,
the Commission a prospectus supplement (the "Prospectus Supplement")
specifically relating to the Debt Securities pursuant to Rule 424(b) under the
Securities Act of 1933, as amended (the "Securities Act"), and/or a term sheet
or an abbreviated term sheet (each, a "Term Sheet"), pursuant to Rule 434 of the
rules and regulations of the Commission under the Securities Act (the
"Securities Act Regulations"), specifically relating to the Debt Securities.
The term Registration Statement means the registration statement as amended to
the date of this Agreement. The term Basic Prospectus means the prospectus
included in the Registration Statement at the time the Registration Statement
was declared effective by the Commission. The term Prospectus means the Basic
Prospectus together with the final Prospectus Supplement in the form in which it
has most recently been filed, or transmitted for filing, with the Commission on
or prior to the date of this Agreement. The term preliminary prospectus means a
preliminary prospectus supplement specifically relating to the Debt Securities
together with the Basic Prospectus. Any reference herein to the Registration
Statement or the Prospectus shall be deemed to refer to and include the
documents, financial statements and schedules incorporated by
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reference therein or deemed to be incorporated by reference therein pursuant
to Item 12 of Form S-3 under the Securities Act, and any reference to any
amendment or supplement to the Registration Statement or the Prospectus shall
be deemed to refer to and include any documents, financial statements and
schedules filed by the Company with the Commission under the Securities
Exchange Act of 1934, as amended (the "Exchange Act"), and so incorporated by
reference or deemed to be incorporated therein (such incorporated documents,
financial statements and schedules being herein called the "Incorporated
Documents"). Notwithstanding the foregoing, for purposes of this Agreement
any prospectus, prospectus supplement, term sheet or abbreviated term sheet
prepared or filed with respect to an offering pursuant to the Registration
Statement of a series of securities other than the Debt Securities shall not
be deemed to have supplemented the Prospectus.
1. REPRESENTATIONS AND WARRANTIES. The Company represents and warrants
to each of the Underwriters that:
(a) (i) The Registration Statement has been declared effective by
the Commission and no stop order suspending the effectiveness of the
Registration Statement is in effect nor, to the Company's knowledge, are any
proceedings for such purpose pending before or threatened by the Commission,
(ii) as of the Effective Date, the Company met the applicable requirements for
use of Form S-3 under the Securities Act with respect to the registration under
the Securities Act of $2,000,000,000 in aggregate public offering price of Debt
Securities and (iii) as of the Effective Date, the Registration Statement met
the requirements set forth in Rule 415(a)(l)(x) under the Securities Act and
complied in all material respects with said Rule.
(b) (i) Each document, if any, filed or to be filed pursuant to
the Exchange Act and incorporated or to be incorporated by reference in the
Prospectus complies or will comply, in all material respects, with the
applicable provisions of the Exchange Act and the rules and regulations of the
Commission thereunder, (ii) the Registration Statement and any amendments
thereto, do not and will not, as of the applicable effective date, contain any
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,
(iii) the Registration Statement and the Prospectus comply, and any further
amendments or supplements to the Registration Statement or the Prospectus will
comply, in all material respects, with the Securities Act and the Securities Act
Regulations, and the Trust Indenture Act of 1939, as amended (the "Trust
Indenture Act") and (iv) the Prospectus and any amendment or supplement thereto,
do not and will not, as of the date thereof, contain any untrue statement of a
material fact or omit to state
2
<PAGE>
a material fact necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading; PROVIDED, HOWEVER,
that the Company makes no representations and warranties (l) as to
information contained in or omitted from the Registration Statement or the
Prospectus in reliance upon and in conformity with information furnished in
writing to the Company by or on behalf of the Underwriters expressly for use
in the Registration Statement or the Prospectus or any amendment or
supplement thereto, or (2) as to that part of the Registration Statement that
constitutes the Statement of Eligibility and Qualification of the Trustee
(the "Form T-l") under the Trust Indenture Act.
(c) Each of the Company and KFC Corporation, Pizza Hut, Inc. and
Taco Bell Corp. (each a "Principal Subsidiary") has been duly incorporated and
is validly existing and in good standing under the laws of its state of
incorporation, has the corporate power and authority to own its property and to
conduct its business as described in the Prospectus, and is duly qualified to
transact business as a foreign corporation and is in good standing in each
jurisdiction in which the conduct of its business or its ownership or leasing of
property requires such qualification, except to the extent that the failure to
be so qualified or in good standing would not have a material adverse effect on
the Company and its subsidiaries taken as a whole. All of the outstanding
shares of capital stock or other securities evidencing equity ownership of each
Principal Subsidiary have been duly and validly authorized and issued and are
fully paid and non-assessable, and are owned by the Company free and clear of
any security interest, claim, lien or encumbrance.
(d) The Indenture has been duly qualified under the Trust
Indenture Act and has been duly authorized, executed, and delivered by the
Company and (assuming due authorization, valid execution, and delivery thereof
by the Trustee) is a valid and binding agreement of the Company, enforceable
against the Company in accordance with its terms, except to the extent that (x)
enforcement thereof may be limited by (i) the laws of bankruptcy, insolvency,
reorganization, fraudulent conveyance, moratorium, or similar laws relating to
or affecting creditors' rights generally (whether now or hereafter in effect),
(ii) laws limiting rights of indemnity or contribution, or (iii) equitable
principles of general applicability (regardless of whether enforceability is
considered in a proceeding at law or in equity) and (y) the waiver contained in
Section 6.12 of the Indenture may be deemed unenforceable; and the Indenture
conforms in all material respects to the description thereof contained in the
Prospectus.
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<PAGE>
(e) This Agreement has been duly authorized, executed, and
delivered by the Company.
(f) The Debt Securities have been duly authorized and, when
issued, executed, and authenticated in accordance with the provisions of the
Indenture (which will be substantially in the form filed as an exhibit to the
Registration Statement), and delivered to and duly paid for in accordance
with the applicable provisions of the Prospectus and this Agreement, will be
entitled to the benefits of the Indenture and will be valid and binding
obligations of the Company, enforceable against the Company in accordance
with their respective terms, except to the extent that (x) enforcement
thereof may be limited by (i) the laws of bankruptcy, insolvency,
reorganization, fraudulent conveyance, moratorium, or similar laws relating
to or affecting creditors' rights generally (whether now or hereafter in
effect), (ii) laws limiting rights of indemnity or contribution, or (iii)
equitable principles of general applicability (regardless of whether
enforceability is considered in a proceeding at law or in equity) and (y) the
waiver contained in Section 6.12 of the Indenture may be deemed
unenforceable; and the Debt Securities will conform in all material respects
to the description thereof contained in the Prospectus.
(g) The execution and delivery of this Agreement and the Indenture
by the Company, the issuance and sale of the Debt Securities and the performance
by the Company of its obligations under this Agreement, the Debt Securities and
the Indenture, as the case may be, will not conflict with or constitute a breach
or violation of or default (with the passage of time or otherwise) under (A) the
Restated Articles of Incorporation or By-Laws of the Company, (B) any agreement
or other instrument binding upon the Company or any of its subsidiaries, which
breach or default would, singly or in the aggregate, have a material adverse
effect on the consolidated financial condition or earnings of the Company and
its subsidiaries, considered as one enterprise, (C) any statute, law or
regulation to which the Company or any of its properties may be subject, which
violation would, singly or in the aggregate, have a material adverse effect on
the consolidated financial condition or earnings of the Company and its
subsidiaries, considered as one enterprise, or (D) of any judgment, order, or
decree of any governmental body, agency, or court having jurisdiction over the
Company or any of its subsidiaries; and no consent, approval, authorization, or
order of or qualification or registration with any governmental body or agency
is, to the Company's knowledge, required for the performance by the Company of
its obligations under this Agreement, the Debt Securities or the Indenture,
other than registration thereof under the Securities Act, qualification of the
Indenture under the Trust Indenture Act and such registrations
4
<PAGE>
or qualifications as may be necessary under the Blue Sky laws or other
securities laws of the various states in which the Debt Securities may be
offered and sold.
(h) There has not been any material adverse change (or
development involving a prospective material adverse change) in the business,
properties, earnings, or financial condition of the Company and its
subsidiaries on a consolidated basis from that set forth in the Company's
last periodic report filed with the Commission under the Exchange Act and the
rules and regulations promulgated thereunder.
(i) There are no legal or governmental proceedings pending or,
to the Company's knowledge, threatened, to which the Company or any of its
subsidiaries is a party or to which any of the properties of the Company or
any of its subsidiaries is subject that is required to be described in the
Registration Statement or the Prospectus and is not so described, or any
applicable statute, regulation, contract, or other document that is required
to be described in the Registration Statement or the Prospectus that is not
so described.
(j) The Company is not and, after giving effect to the offering
and sale of the Debt Securities, will not be an "investment company" or an
entity "controlled" by an "investment company," as such terms are defined in
the Investment Company Act of 1940, as amended.
(k) KPMG Peat Marwick LLP, who has certified certain financial
statements of the Company and its subsidiaries, are, to the Company's
knowledge, independent public accountants as required by the Securities Act
and the Securities Act Regulations.
2. PUBLIC OFFERING. The Company is advised by the Manager that the
Underwriters propose to make a public offering of their respective portions
of the Debt Securities as soon after this Agreement has been entered into as
in the Manager's judgment is advisable. The terms of the public offering of
the Debt Securities have been provided by the Manager to the Company and are
in all material respects completely set forth in the Prospectus.
3. PURCHASE AND DELIVERY. Except as otherwise provided in this
Section 3, payment for the Debt Securities shall be made by wire transfer, of
immediately available funds, by the Underwriters to the order of the Company,
at the time set forth in this Agreement, upon delivery to the Manager for the
respective accounts of the several Underwriters of the Debt Securities,
registered in such names and in such denominations
5
<PAGE>
as the Manager shall request in writing not less than two full business days
prior to the date of delivery. Delivery on the applicable Closing Date of any
Debt Securities that are in bearer form shall be effected by delivery of a
single temporary global Debt Security without coupons (the "Global Debt
Security"), evidencing the Debt Securities that are Debt Securities in bearer
form to a common depositary for Morgan Guaranty Trust Company of New York,
Brussels office, as operator of the Euro-clear System ("Euro-clear"), and for
Centrale de Livraison de Valeurs Mobilieres S.A. ("CEDEL") for credit to the
respective accounts at Euro-clear or CEDEL of each Underwriter or to such
other accounts as such Underwriter may direct. Any Global Debt Security
shall be delivered to the Manager not later than the applicable Closing Date,
against payment of funds to the Company in the net amount due to the Company
for such Global Debt Security by the method and in the form set forth herein.
The Company shall cause definitive Debt Securities in bearer form to be
prepared and delivered in exchange for such Global Debt Security in such
manner and at such time as may be provided in or pursuant to the Indenture;
provided, however, that the Global Debt Security shall be exchangeable for
definitive Debt Securities in bearer form only on or after the date specified
for such purpose in the Prospectus.
4. PAYMENT OF EXPENSES. The Company will pay all expenses incident to
the performance of its obligations under this Agreement, including (i) the
preparation, printing and filing of the Registration Statement (including
financial statements and exhibits) as originally filed and of each amendment
thereto, (ii) the printing and delivery to the Underwriters of this
Agreement, any agreement among Underwriters, the Indenture and such other
documents as may be required in connection with the offering, purchase, sale
and delivery of the Debt Securities, (iii) the preparation, issuance and
delivery of the Debt Securities and any certificates for the Debt Securities
to the Underwriters, (iv) the fees and disbursements of the Company's
counsel, accountants and other advisors or agents (including transfer agents
and registrars), as well as the fees and disbursements of the Trustee and its
counsel, (v) the qualification of the Debt Securities under state securities
laws or the applicable laws of any foreign jurisdiction in which the Debt
Securities are offered in accordance with the provisions of Section 6(g)
hereof, including filing fees and the reasonable fees and disbursements of
counsel for the Underwriters in connection therewith and in connection with
the preparation, printing and delivery of the Blue Sky Survey and any Legal
Investment Survey, and any amendment thereto, (vi) the printing and delivery
to the Underwriters of copies of each preliminary prospectus, any Term Sheet,
and the Prospectus and any amendments or supplements thereto, (vii) the fees
charged by nationally recognized statistical rating organizations for the
rating of the Debt Securities, and (viii) the fees and expenses incurred with
respect to the listing of the Debt Securities on any securities exchange.
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5. CONDITIONS TO CLOSING. The several obligations of the Underwriters
hereunder are subject to (i) the condition that the representations and
warranties of the Company contained herein are true and correct (or, with
respect to the representations and warranties contained in Section 1 that are
not qualified as to materiality, are true and correct in all material
respects) and the Company has complied with all agreements required by this
Agreement or the Indenture on its part to be performed, and (ii) the
following additional conditions precedent:
(a) The Prospectus shall have been filed with the Commission
pursuant to Rule 424(b) within the applicable time period prescribed for such
filing by the Securities Act Regulations and in accordance with Section 6(b)
hereof; no stop order suspending the effectiveness of the Registration
Statement or any part thereof shall have been issued and no proceeding for
that purpose shall have been initiated or threatened by the Commission; and
all requests for additional information on the part of the Commission shall
have been complied with to the Manager's reasonable satisfaction.
(b) OPINION OF COUNSEL EMPLOYED BY THE COMPANY. On the
applicable Closing Date, the Underwriters shall have received an opinion of
Christian L. Campbell, Esq., Senior Vice President, General Counsel and
Secretary of the Company, or such other counsel as may be selected by the
Company and agreed to by the Manager, dated as of the applicable Closing
Date, in form and substance reasonably satisfactory to the Manager to the
effect that:
(i) The Company has been duly incorporated and is validly
existing and in good standing under the laws of the State of North
Carolina. Each Principal Subsidiary is validly existing and in good
standing under the laws of its state of incorporation.
(ii) The Company has the corporate power and authority to enter
into and perform its obligations under this Agreement and the Indenture
and to issue and sell the Debt Securities.
(iii) This Agreement has been duly authorized, executed and
delivered by the Company.
(iv) The Indenture has been duly authorized, executed and
delivered by the Company.
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(v) The Debt Securities have been duly authorized by the Company.
(vi) The execution and delivery of this Agreement and the
Indenture by the Company, the issuance and sale of the Debt Securities,
and the performance by the Company of its obligations under this
Agreement, the Debt Securities and the Indenture, as the case may be,
will not conflict with or constitute a breach or violation of or default
(with the passage of time or otherwise) under (A) the Restated Articles
of Incorporation or By-Laws of the Company, (B) subject to the Company's
compliance with any applicable covenants pertaining to its incurrence of
unsecured indebtedness contained therein, any agreement or other
instrument binding upon the Company or any of its subsidiaries, which
breach or default would, singly or in the aggregate, have a material
adverse effect on the consolidated financial condition or earnings of
the Company and its subsidiaries, considered as one enterprise, (C) any
statute, law or regulation to which the Company or any of its properties
may be subject, or (D) to such counsel's knowledge, after due inquiry,
any judgment, order, or decree of any governmental body, agency, or
court having jurisdiction over the Company or any of its subsidiaries,
except that such counsel may state that the opinion set forth in clause
(C) of this paragraph (vi) is limited to those statutes, laws or
regulations in effect on the date of this opinion which, in such
counsel's experience, are normally applicable to transactions of the
type contemplated by this Agreement and such counsel expresses no
opinion as to the Blue Sky laws or other securities laws of the various
states in which the Debt Securities may be offered and sold.
(vii) No consent, approval, authorization, or order of or
qualification or registration with any court or other governmental body
or agency is, to such counsel's knowledge, required for the performance
by the Company of its obligations under this Agreement, the Debt
Securities or the Indenture, other than registration thereof under the
Securities Act, qualification of the Indenture under the Trust Indenture
Act, and such registrations or qualifications as may be necessary under
the Blue Sky laws or other securities laws of the various states in
which the Debt Securities may be offered and sold.
(viii) To such counsel's knowledge after due inquiry, there is no
legal or governmental proceeding pending or threatened, no statute or
regulation, and no agreement, instrument, or other document to which, in
any case, the Company or any of its subsidiaries is a party, or by
which, in any case, any of the properties of the Company or its
subsidiaries is bound, that is required to be
8
<PAGE>
described in the Registration Statement or the Prospectus, or that is
required to be filed as an exhibit to the Registration Statement, that
is not so described or filed.
(ix) Each document incorporated, or deemed to be incorporated, by
reference in the Registration Statement and the Prospectus, at the time
such document was filed with the Commission appeared on its face to be
appropriately responsive in all material respects to the requirements of
the Exchange Act and the rules and regulations of the Commission
thereunder, except that in each case such counsel need not express an
opinion as to the financial statements, schedules and other financial
data included or incorporated by reference in, or excluded from, the
Registration Statement or the Prospectus.
In addition, such counsel shall state that he has participated in
conferences with officers and other representatives of the Company, counsel
employed by the Company, representatives of the independent accountants for
the Company, representatives of the Underwriters and counsel for the
Underwriters, at which the contents of the Registration Statement and
Prospectus and related matters were discussed and, although such counsel is
not passing upon, and does not assume any responsibility for, the accuracy,
completeness or fairness of the statements contained in the Registration
Statement or the Prospectus and has not made any independent check or
verification thereof, on the basis of the foregoing, no facts have come to
such counsel's attention that have led him to believe that the Registration
Statement (including the documents incorporated, or deemed to be
incorporated, by reference therein), at the time the Company filed its Annual
Report on Form 10-K for the fiscal year ended December 27, 1997, contained an
untrue statement of a material fact or omitted to state a material fact
required to be stated therein or necessary to make the statements therein not
misleading or that the Prospectus (including the documents incorporated, or
deemed to be incorporated, by reference therein), as of the date of this
Agreement and at the Closing Date, contained or contains an untrue statement
of a material fact or omitted or omits to state a material fact necessary in
order to make the statements therein, in light of the circumstances under
which they were made, not misleading, except that such counsel need express
no opinion or belief with respect to (i) the financial statements, schedules
and other financial data included or incorporated by reference in, or
excluded from, the Registration Statement or the Prospectus or (ii) the Form
T-1.
(c) OPINION OF COUNSEL TO THE COMPANY. On the Closing Date, the
Underwriters shall have received an opinion from Skadden, Arps, Slate, Meagher &
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Flom LLP, counsel to the Company, dated as of the applicable Closing Date, in
form and substance reasonably satisfactory to the Manager to the effect that:
(i) Assuming the Indenture has been duly authorized, executed,
and delivered by the Company and, assuming due authorization, valid
execution, and delivery by the Trustee, the Indenture is a valid and
binding agreement of the Company, enforceable against the Company in
accordance with its terms, except to the extent that (x) enforcement
thereof may be limited by (i) the laws of bankruptcy, insolvency,
reorganization, fraudulent conveyance, moratorium, or similar laws
relating to or affecting creditors' rights generally (whether now or
hereafter in effect), (ii) laws limiting rights of indemnity or
contribution, or (iii) equitable principles of general applicability
(regardless of whether enforceability is considered in a proceeding at
law or in equity) and (y) the waiver contained in Section 6.12 of the
Indenture may be deemed unenforceable.
(ii) Assuming the Debt Securities have been duly authorized by
the Company, when issued, executed, and authenticated in accordance with
the provisions of the Indenture, and delivered to and duly paid for in
accordance with the applicable provisions of the Prospectus and this
Agreement, the Notes will be entitled to the benefits of the Indenture
and will be valid and binding obligations of the Company, enforceable
against the Company in accordance with their respective terms, except to
the extent that (x) enforcement thereof may be limited by (i) the laws
of bankruptcy, insolvency, reorganization, fraudulent conveyance,
moratorium, or similar laws relating to or affecting creditors' rights
generally (whether now or hereafter in effect), (ii) laws limiting
rights of indemnity or contribution, or (iii) equitable principles of
general applicability (regardless of whether enforceability is
considered in a proceeding at law or in equity), and (y) the waiver
contained in Section 6.12 of the Indenture may be deemed unenforceable.
(iii) The statements in the Prospectus under the captions
"Description of the Debt Securities" and "Description of Notes," insofar
as they purport to summarize certain provisions of the Indenture and the
Debt Securities, are in all material respects accurate summaries of such
provisions and, to the extent that such statements constitute matters of
law, summaries of legal matters, legal proceedings or legal conclusions,
are accurate and complete in all material respects.
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(iv) Although the discussion set forth in the Prospectus under
the heading "Certain United States Federal Tax Considerations" does not
purport to discuss all possible United States federal income tax
consequences of the purchase, ownership, and disposition of the Debt
Securities, in such counsel's opinion, such discussion constitutes, in
all material respects, a fair and accurate summary of the United States
federal income tax consequences of the purchase, ownership, and
disposition of the Debt Securities, based upon current law and subject
to the qualifications set forth therein.
(v) The Registration Statement (excluding the documents
incorporated, or deemed to be incorporated, by reference therein), at
the time the Registration Statement became effective, and the Prospectus
(excluding the documents incorporated, or deemed to be incorporated, by
reference therein), as of the date of this Agreement and at the Closing
Date, each appeared on its face to be appropriately responsive in all
material respects to the requirements of the Securities Act and the
rules and regulations of the Commission thereunder and the Trust
Indenture Act, except that in each case such counsel need not express an
opinion as to (i) the documents incorporated, or deemed to be
incorporated, by reference in the Registration Statement or the
Prospectus, (ii) the financial statements, schedules and other financial
data included or incorporated by reference in, or excluded from, the
Registration Statement or the Prospectus or (ii) the Form T-1.
In addition, such counsel shall state that they have participated
in conferences with officers and other representatives of the Company,
counsel employed by the Company, representatives of the independent
accountants of the Company, representatives of the Underwriters and counsel
for the Underwriters, at which the contents of the Registration Statement and
Prospectus and related matters were discussed and, although such counsel is
not passing upon, and does not assume any responsibility for, the accuracy,
completeness or fairness of the statements contained in the Registration
Statement or the Prospectus (other than as provided in subparagraphs (iii)
and (iv) above) and have made no independent check or verification thereof,
on the basis of the foregoing, no facts have come to such counsel's attention
that have led them to believe that the Registration Statement (excluding the
documents incorporated, or deemed to be incorporated, by reference therein),
at the time the Company filed its Annual Report on Form 10-K for the fiscal
year ended December 27, 1997, contained an untrue statement of a material
fact or omitted to state a material fact required to be stated therein or
necessary to make the statements therein not misleading or that the
Prospectus (excluding the documents incorporated, or deemed to be
incorporated, by
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reference therein), as of the date of this Agreement and at the Closing Date,
contained or contains an untrue statement of a material fact or omitted or
omits to state a material fact necessary in order to make the statements
therein, in light of the circumstances under which they were made, not
misleading, except that such counsel need express no opinion or belief with
respect to (i) the documents incorporated, or deemed to be incorporated, by
reference in the Registration Statement or the Prospectus, (ii) the financial
statements, schedules and other financial data included or incorporated by
reference in, or excluded from, the Registration Statement or the Prospectus
or (iii) the exhibits to the Registration Statement, including the Form T-1.
(d) OPINION OF UNDERWRITERS' COUNSEL. On the applicable Closing
Date, the Underwriters shall have received an opinion from counsel to the
Underwriters, dated as of the applicable Closing Date, and in form and
substance satisfactory to the Underwriters.
(e) OFFICER'S CERTIFICATE. On the applicable Closing Date, the
Underwriters shall have received a certificate signed by an officer of the
Company, dated the Closing Date, to the effect that (i) the representations
and warranties of the Company contained in Section 1 hereof are true and
correct (or, with respect to the representations and warranties contained in
Section 1 that are not qualified as to materiality, true and correct in all
material respects) with the same force and effect as though expressly made at
and as of the date of such certificate and (ii) the Company has complied with
all agreements and satisfied all conditions required by this Agreement or the
Indenture on its part to be performed or satisfied at or prior to the date of
such certificate.
(f) COMFORT LETTER. On the date hereof, the Underwriters shall
have received a letter (an "Auditor's Letter") from KPMG Peat Marwick LLP
("KPMG"), or such other independent certified public accountants as may be
selected by the Company (KPMG or such other independent certified public
accountants that have certified the financial statements covered by any
applicable Auditor's Letter each, successively, the "Company's Auditors"),
dated as of the date hereof and in form and substance reasonably satisfactory
to the Underwriters, containing statements and information of a type
ordinarily included in accountants' "comfort letters" to underwriters with
respect to the financial statements and certain financial information
(including, without limitation, any pro forma financial statements and pro
forma financial information) contained or incorporated by reference in the
Registration Statement and the Prospectus; and, if financial statements for
any assets, business or entity acquired by the Company are included or
incorporated by reference in the Registration Statement or the
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Prospectus, the Underwriters shall have received a similar "comfort letter"
from the Company's Auditors, dated as of the date hereof, and in form and
substance reasonably satisfactory to the Underwriters, with respect to such
financial statements and any financial information with respect to such
assets, business or entity, as the case may be, contained or incorporated by
reference in the Registration Statement and the Prospectus. Without
limitation to the foregoing, the letter delivered by the Company's Auditors
shall state that nothing has come to their attention that caused them to
believe that at a specified date not more than five days prior to the date of
such letter, there was any change in the outstanding capital stock of the
Company or any increase in consolidated long-term debt of the Company or any
decrease in the stockholders' equity of the Company, in each case as compared
with the amounts shown on the most recent consolidated balance sheet of the
Company incorporated by reference in the Registration Statement and
Prospectus or, during the period from the date of such balance sheet to a
specified date not more than five days prior to the date of such letter,
there were any decreases, as compared with the corresponding period in the
preceding year, in consolidated net sales and operating revenues or net
income of the Company, except in each such case as set forth in or
contemplated by the Registration Statement and Prospectus or except for such
exceptions enumerated in such letter as shall have been agreed to by the
Underwriters and the Company.
(g) SUBSEQUENT DELIVERY OF COMFORT LETTER. On the applicable
Closing Date, the Underwriters shall have received from each firm of
independent public accountants which delivered a letter pursuant to
subsection (f) of this Section, dated as of the applicable Closing Date, to
the effect that they reaffirm the statements made in the letter furnished
pursuant to subsection (f) of this Section, except that the specified date
referred to shall be a date not more than five days prior to the applicable
Closing Date.
(h) OTHER DOCUMENTS. On the applicable Closing Date, counsel to
the Underwriters shall have been furnished with such documents and opinions
as such counsel may reasonably require for the purpose of enabling such
counsel to pass upon the issuance and sale of Debt Securities as herein
contemplated and related proceedings, or in order to evidence the accuracy
and completeness of any of the representations and warranties or the
fulfillment of any of the conditions herein contained.
6. COVENANTS OF THE COMPANY. In further consideration of the
agreements of the Underwriters contained herein, the Company covenants as
follows:
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(a) NOTICE OF CERTAIN EVENTS. The Company will promptly advise
the Manager of (i) the filing and effectiveness of any amendment to the
Registration Statement other than by virtue of the Company's filing any
report required to be filed under the Exchange Act and the filing of any
supplement to the Prospectus other than any amendment or supplement relating
solely to an offering of securities other that the Debt Securities, (ii) any
request by the Commission for any amendment to the Registration Statement,
for any amendment or supplement to the Prospectus, or for any additional
information from the Company (other than any such request relating to an
offering of securities other than the Debt Securities), (iii) the issuance by
the Commission of any stop order suspending the effectiveness of the
Registration Statement or preventing or suspending the use of any Prospectus
relating to the Debt Securities or the institution or threatening of any
proceeding for any such purpose, and (iv) the receipt by the Company of any
notification with respect to the suspension of the qualification of the Debt
Securities for sale in any jurisdiction or the initiation or threatening of
any proceeding for such purpose. The Company will use reasonable efforts to
prevent the issuance of any such stop order or notice of suspension of
qualification and, if issued, to obtain as soon as reasonably possible the
withdrawal thereof.
(b) NOTICE OF CERTAIN PROPOSED FILINGS. During the period from
the date of this Agreement to and including the last Closing Date, at or
prior to the filing by the Company of any amendment to the Registration
Statement or of any supplement to the Prospectus (other than any amendment or
supplement relating solely to an offering of securities other than the Debt
Securities), or any document the Company is required to file pursuant to
Section 13(a), 13(c), 14, or 15(d) of the Exchange Act (other than the
Company's Quarterly Report on Form 10-Q for the quarter ended March 21, 1998
(the "First Quarter 10Q")), the Company will furnish the Manager and the
Underwriters with copies of any such amendment or supplement or other
documents in a reasonable amount of time prior to such proposed filing and
will not file any such document to which the Manager shall reasonably object,
unless, in the judgment of the Company or its counsel, such amendment or
supplement or other document is necessary to comply with law. Subject to the
foregoing sentence, the Company will promptly cause each applicable
supplement to the Prospectus to be filed with or transmitted for filing with
the Commission in accordance with Rule 424(b) or 424(c) under the Securities
Act or pursuant to such other rule or regulation of the Commission as then
deemed appropriate by the Company. The Company will furnish the Manager and
the Underwriters with copies of the First Quarter 10Q prior to filing it with
the Commission.
(c) COPIES OF THE REGISTRATION STATEMENT AND THE PROSPECTUS. The
Company will furnish (in New York) to the Underwriters, without charge, one
original
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signed copy of the Registration Statement (including exhibits) and all
amendments thereto that shall become effective, and as many copies of the
Prospectus, any documents incorporated by reference therein, and any
supplements and amendments thereto as the Underwriters may reasonably
request, in each case within a reasonable period of time following the date
on which this Agreement is executed and delivered by the Company and the
Manager, or the date on which such document becomes effective, or the date on
which such document is requested by the Underwriters, as applicable.
(d) REVISIONS OF REGISTRATION STATEMENT AND PROSPECTUS --
MATERIAL CHANGES. If, at any time when a prospectus relating to the Debt
Securities is required to be delivered under the Securities Act by the
Underwriters, any event occurs or condition exists as a result of which the
Prospectus would include an untrue statement of a material fact, or omit to
state a material fact necessary to make the statements therein, in light of
the circumstances under which they were made, not misleading, or if for any
reason it is necessary to amend or supplement the Prospectus or to file under
the Exchange Act any document incorporated by reference in the Prospectus in
order to comply with the Securities Act, the Exchange Act or the Trust
Indenture Act, or the respective rules and regulations of the Commission
thereunder, or any other applicable law, the Company will promptly notify the
Underwriters, by telephone or by facsimile (in either case with written
confirmation from the Company by mail), and will promptly prepare and,
subject to Section 6(b), cause to be filed with the Commission the
appropriate documents or appropriate amendment or supplement to the
Registration Statement or the Prospectus, as the case may be, and will supply
without charge to the Underwriters one copy of a signed copy of any such
amended Registration Statement and will supply without charge to the
Underwriters as many copies of any such amended or supplemented Prospectus as
the Underwriters may from time to time reasonably request.
(e) COMPLIANCE WITH EXCHANGE ACT. The Company, during the
period when the Prospectus is required to be delivered under the Securities
Act or the Exchange Act, will comply, in a timely manner, with all applicable
requirements under the Exchange Act relating to the filing with the
Commission of the Company's reports pursuant to Section 13(a), 13(c) or 15(d)
of the Exchange Act and, if then applicable, the Company's proxy statements
pursuant to Section 14(a) of the Exchange Act.
(f) EARNINGS STATEMENT. The Company will make generally
available to its security holders earnings statements that satisfy the
provisions of Section 11 (a) of the Securities Act and Rule 158 promulgated
thereunder.
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(g) BLUE SKY QUALIFICATIONS. The Company will, with such
assistance from the Underwriters as the Company may reasonably request,
endeavor to qualify the Debt Securities for offer and sale under the Blue Sky
laws or other securities laws of such jurisdictions as the Underwriters shall
reasonably request and will maintain such qualifications for as long as
required with respect to the offer, sale, and distribution of the Debt
Securities; PROVIDED, HOWEVER, that the Company shall not be obligated to
register or qualify as a foreign corporation or take any action which would
subject it to general service of process in any jurisdiction where it is not
now subject.
(h) SUSPENSION PERIOD. During the period from the date of this
Agreement to and including the last Closing Date, the Company shall not
offer, sell, contract to sell or otherwise dispose of any debt securities of
the Company which mature more than one year after the last Closing Date and
which are substantially similar to the Debt Securities, without the prior
written consent of the Manager.
7. INDEMNIFICATION AND CONTRIBUTION.
(a) The Company agrees to indemnify and hold each Underwriter
and each person, if any, who controls an Underwriter within the meaning of
either Section 15 of the Securities Act or Section 20 of the Exchange Act,
harmless from and against any and all losses, claims, damages, or liabilities
as incurred, insofar as such losses, claims, damages, or liabilities (and
actions in respect thereof) arise out of, are based upon, or are caused by
any untrue statement or allegedly untrue statement of a material fact
contained in the Registration Statement or the Prospectus or in any amendment
or supplement thereto, or arise out of, are based upon or are caused by any
omission or alleged omission to state therein a material fact required to be
stated therein or necessary to make the statements therein not misleading,
and the Company agrees to reimburse each such indemnified party for any
reasonable legal or other expenses reasonably incurred by them in connection
with investigating or defending any such loss, claim, damage, liability, or
action as such expenses are incurred; PROVIDED, HOWEVER, that the Company
will not be liable to the extent that such losses, claims, damages, or
liabilities (or actions in respect thereof) arise out of, are based upon, or
are caused by (i) any untrue statement or omission or alleged untrue
statement or omission made in reliance upon the Form T-1, (ii) any untrue
statement or omission or alleged untrue statement or omission included in or
omitted from the Registration Statement or the Prospectus in reliance upon
and in conformity with information furnished to the Company by or on behalf
of the Underwriters in writing expressly for use in the Registration
Statement or the Prospectus or any amendment or supplement thereto, or (iii)
any untrue statement or omission or alleged untrue statement or omission in
the preliminary prospectus if
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such untrue statement or omission or alleged untrue statement or omission is
corrected in the Prospectus and if, having previously been furnished by or
on behalf of the Company with copies of such Prospectus, the Underwriters
thereafter failed to deliver such Prospectus, prior to or concurrently with
the sale of a Debt Security or Debt Securities to the person asserting such
loss, claim, damage, or liability who purchased such Debt Security or Debt
Securities which are subject thereof from the Underwriters.
(b) Each Underwriter severally (and not jointly) agrees to
indemnify and hold harmless the Company, its directors, its officers who sign
the Registration Statement, and each person, if any, who controls the Company
within the meaning of either Section 15 of the Securities Act or Section 20
of the Exchange Act, to the same extent as the foregoing indemnity from the
Company to the Underwriters, but only with respect to such losses, claims,
damages, and liabilities (and actions in respect thereof) that arise out of,
are based upon, or are caused by any untrue statement or omission or
allegedly untrue statement or omission included in or omitted from the
Registration Statement or the Prospectus in reliance upon and in conformity
with information furnished to the Company by or on behalf of such Underwriter
in writing expressly for use in the Registration Statement or the Prospectus
or any amendment or supplement thereto.
(c) In case any proceeding (including any governmental
investigation) shall be instituted involving any person in respect of which
indemnity may be sought pursuant to either paragraph (a) or (b) of this Section
7, such person (the "indemnified party") will promptly notify the person against
whom such indemnity may be sought (the "indemnifying party") in writing and the
indemnifying party, upon request of the indemnified party, will retain counsel
reasonably satisfactory to the indemnified party to represent the indemnified
party and any others the indemnifying party may designate in such proceeding and
will pay the fees and disbursements of such counsel related to such proceeding.
In any such proceeding, any indemnified party will have the right to retain its
own counsel, but the fees and expenses of such counsel will be borne by the
indemnified party unless (i) the indemnifying party and the indemnified party
shall have mutually agreed to the retention of such counsel or (ii) the named
parties to any such proceeding (including any impleaded parties) include both
the indemnifying party (whether or not the indemnifying party was an original
named party to such proceeding) and the indemnified party and such indemnified
party shall have been advised by counsel that there may be actual or potential
conflicts of interest between the Company and the indemnified party including
situations in which there may be one or more legal defenses available to the
indemnified party which are different from, or additional to, those available to
the Company. It is understood that the
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indemnifying party will not, in connection with any proceeding or
substantially similar or related proceedings in the same jurisdiction, be
liable for the fees and expenses of more than one separate firm (in addition
to any local counsel) for all such indemnified parties and that all such
reasonable fees and expenses will be reimbursed as they are incurred. Such
firm will be designated in writing by the Manager (in the case of parties
indemnified pursuant to the second preceding paragraph) or by the Company (in
the case of parties indemnified pursuant to the first preceding paragraph),
as the case may be. The indemnifying party will not be liable for any
settlement of any claim, action or proceeding effected without its written
consent, but if settled with such consent, or if there shall be a final
judgment for the plaintiff, the indemnifying party agrees to indemnify the
indemnified party from and against any loss or liability by reason of such
settlement or judgment. No indemnifying party will, without the prior
written consent of the indemnified party, effect any settlement or compromise
of or consent to the entry of any judgment with respect to any pending or
threatened claim, action or proceeding in respect of which any indemnified
party is or could have been a party and indemnity or contribution could have
been sought hereunder by such indemnified party, unless such settlement,
compromise or judgment (i) includes an unconditional release of such
indemnified party from all liability on claims that are the subject matter of
such proceeding and (ii) does not include a statement as to, or an admission
of fault, culpability or a failure to act by, the indemnified party. Any
provision of this paragraph (c) to the contrary notwithstanding, no failure
by an indemnified party to notify the indemnifying party as required
hereunder will relieve the indemnifying party from any liability it may have
had to an indemnified party otherwise than under Section 7(a) or (b).
(d) If the indemnification provided for in paragraph (a) or (b)
of this Section 7 is unavailable to an indemnified party or is insufficient
in respect of any losses, claims, damages, or liabilities referred to
therein, then each indemnifying party under such paragraph, in lieu of
indemnifying the indemnified party thereunder, will contribute to the amount
paid or payable by such indemnified party as a result of such losses, claims,
damages, or liabilities (i) in such proportion as is appropriate to reflect
the relative benefits received by the Company, on the one hand, and the
Underwriters, on the other, from the offering of Debt Securities by the
Underwriters, or (ii) if the allocation provided by clause (i) is not
permitted by applicable law, in such proportion as is appropriate to reflect
not only the relative benefits referred to in clause (i) above but also the
relative fault of the Company, on the one hand, and the Underwriters,
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on the other, in connection with the statements or omissions that resulted in
such losses, claims, damages, or liabilities, as well as any other relevant
equitable considerations. The relative benefits received by the Company, on
the one hand, and the Underwriters, on the other, in connection with the
offering of Debt Securities by the Underwriters will be deemed to be in the
same proportion as the total net proceeds received by the Company from the
offering of such Debt Securities bears to the total discounts and commissions
received by the Underwriters from the Company in respect thereof. The
relative fault of the Company, on the one hand, and of the Underwriters, on
the other, will be determined by reference to, among other things, whether
the untrue or allegedly untrue statement of a material fact or the omission
or alleged omission to state a material fact relates to information supplied
or to be supplied by the Company or by the Underwriters and the parties'
relative intent, knowledge, access to information, and opportunity to correct
or prevent such statement or omission.
(e) The Company and the Underwriters agree that it would not be
just or equitable if contribution pursuant to paragraph (d) above were
determined by pro rata allocation or by any other method of allocation that
does not take account of the equitable considerations referred to therein.
The amount paid or payable by an indemnified party as a result of the losses,
claims, damages, and liabilities referred to in paragraph (d) above will be
deemed to include, subject to the limitations set forth above, any reasonable
legal or other expenses reasonably incurred by such indemnified party in
connection with investigating or defending any such action or claim. Any
other provisions of this Section 7 to the contrary notwithstanding (i) no
Underwriter shall be required to contribute any amount in excess of the
amount by which the total price at which the applicable Debt Securities
underwritten by it and distributed to the public were offered to the public
exceeds the amount of any damages which such Underwriter has otherwise been
required to pay by reason of such untrue or alleged untrue statement or
omission or alleged omission and (ii) no person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Act) shall be
entitled to contribution from any person who was not guilty of such
fraudulent misrepresentation. The obligations of the Underwriters of Debt
Securities in this subsection (d) to contribute are several in proportion to
their respective underwriting obligations with respect to such securities and
not joint.
(f) The remedies provided for in this Section 7 are not
exclusive and will not limit any rights or remedies that may otherwise be
available to any indemnified party at law or in equity.
8. TERMINATION. The Underwriters may terminate this Agreement
immediately upon notice to the Company if, at any time prior to the Closing
Date, (i) there shall have occurred (A) any material adverse change (or
development involving a prospective material adverse change) in the business,
properties, earnings, or financial
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condition of the Company and its subsidiaries on a consolidated basis, (B)
any suspension or material limitation of trading in the Company's capital
stock by the Commission or the New York Stock Exchange, Inc. (the "NYSE"), or
(C) any decrease by Moody's Investors Services, Inc. or Standard & Poor's
Corporation with respect to the ratings of any of the debt securities issued
or guaranteed by the Company or any public announcement by any such
organization to the effect that it has placed any debt securities issued or
guaranteed by the Company on what is commonly termed a "watch list" with
negative implications (the events described in the foregoing clauses (A)
through (C) the "Company-Specific Events"), the effect of any of which
Company-Specific Events shall have made it impracticable, in the reasonable
judgment of the Manager, to market such Debt Securities, or (ii) there shall
have occurred (A) any suspension or material limitation of trading in
securities generally on the NYSE or the establishment of minimum prices on
the NYSE, (B) a declaration of a general moratorium on commercial banking
activities in New York by either federal or New York State authorities, or
(C) any outbreak or material escalation of hostilities or other national or
international calamity or crisis (the events described in the foregoing
clauses (A) through (C) the "Market Events"), the effect of any of which
Market Events (other than the Market Event described in Clause (B), which
shall not be subject to the following qualification) shall have made it
impracticable, in the reasonable judgment of the Manager, to market such Debt
Securities.
9. DEFAULTING UNDERWRITERS. If on the Closing Date any one or more of
the Underwriters shall fail or refuse to purchase Debt Securities that it has
or they have agreed to purchase on such date, and the aggregate amount of
Debt Securities which such defaulting Underwriter or Underwriters agreed but
failed or refused to purchase is not more than one-tenth of the aggregate
amount of the Debt Securities to be purchased on such date, the other
Underwriters shall be obligated severally in the proportions that the amount
of Debt Securities set forth opposite their respective names above bears to
the aggregate amount of Debt Securities set forth opposite the names of all
such non-defaulting Underwriters, or in such other proportions as the Manager
may specify, to purchase the Debt Securities which such defaulting
Underwriter or Underwriters agreed but failed or refused to purchase on such
date. If on the Closing Date any Underwriter or Underwriters shall fail or
refuse to purchase Debt Securities and the aggregate amount of Debt
Securities with respect to which such default occurs is more than one-tenth
of the aggregate amount of Debt Securities to be purchased on such date, and
arrangements satisfactory to the Manager and the Company for the purchase of
such Debt Securities are not made within 36 hours after such default, this
Agreement shall terminate without liability on the part of any non-defaulting
Underwriter or the Company. In any such case either the Manager or the
Company shall have the right to
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postpone the Closing Date but in no event for longer then 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 paragraph shall not relieve any defaulting
Underwriter from liability in respect of any default of such Underwriter
under this Agreement.
10. SURVIVABILITY. The respective indemnities, agreements,
representations, warranties and other statements of the Company and the
several Underwriters, as set forth in this Agreement or made by or on behalf
of them, respectively, pursuant to this Agreement, shall remain in full force
and effect, regardless of any investigation (or any statement as to the
results thereof) made by or on behalf of any Underwriter or any controlling
person of any Underwriter, or the Company, or any officer or director or
controlling person of the Company, and shall survive delivery of and payment
for the Debt Securities.
11. CERTAIN OBLIGATIONS. If this Agreement shall be terminated
pursuant to Section 8 hereof, the Company shall not then be under any
liability to any Underwriter with respect to the Debt Securities except as
provided in Sections 4 and 7 hereof; but, if for any other reason (other than
a default by the Underwriters under Section 9 hereof) Debt Securities are
not delivered by or on behalf of the Company as provided herein, the Company
will reimburse the Underwriters through the Manager for all out-of-pocket
expenses approved in writing by the Manager, including fees and disbursements
of counsel, reasonably incurred by the Underwriters in making preparations
for the purchase, sale and delivery of such Debt Securities, but the Company
shall then be under no further liability to any Underwriter with respect to
such Debt Securities except as provided in Sections 4 and 7 hereof.
12. NOTICES. In all dealings hereunder, the Manager shall act on
behalf of each of the Underwriters of Debt Securities, and the parties hereto
shall be entitled to act and rely upon any statement, request, notice or
agreement on behalf of any Underwriter made or given by the Manager.
Except as otherwise specifically provided herein, all
communications hereunder will be in writing and shall be deemed to have been
duly given if delivered by hand, mailed via Express Mail, deposited with
Federal Express or any nationally recognized commercial courier service for
"next day" delivery, or telecopied and confirmed in writing (by telecopied
facsimile or otherwise) to the respective addresses or telecopier numbers set
forth on the signature page hereto, or to such other address or telecopier
number as either party may hereafter designate to the other in writing;
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provided, however, that any notice to an Underwriter pursuant to Section 7(c)
hereof shall be delivered in a manner provided above to such Underwriter at
its address set forth in its Underwriters' Questionnaire, or telex
constituting such Questionnaire, which address will be supplied to the
Company by the Manager upon request. Any such statements, requests, notices
or agreements shall take effect upon receipt thereof.
13. SUCCESSORS; NON-TRANSFERABILITY. This Agreement will inure to the
benefit of and be binding upon the parties hereto, their respective
successors, and the officers, directors, and controlling persons referred to
in Section 7 hereof. No other person will have any right or obligation
hereunder. Neither party to this Agreement may assign its rights hereunder
without the written consent of the other parties.
14. REPRESENTATIONS, WARRANTIES AND AGREEMENTS TO SURVIVE DELIVERY.
All representations, warranties and agreements contained in this Agreement or
in certificates of officers of the Company submitted pursuant hereto will
survive delivery of and payment for the Debt Securities and will survive
termination of this Agreement in accordance with the provisions of Section 9
hereof.
15. COUNTERPARTS. This Agreement may be signed in any number of
counterparts, each of which will be an original, with the same effect as if
the signatures thereto and hereto were upon the same instrument.
16. TIME OF THE ESSENCE. Time shall be of the essence with respect to
this Agreement. As used herein, "business day" shall mean any day when the
Commission's office in Washington, D.C. is open for business.
17. APPLICABLE LAW. This Agreement will be governed by and construed
in accordance with the laws of the State of New York, including without
limitation, New York General Obligations Law Section 5-1401.
18. HEADINGS. The headings of the sections of this Agreement have been
inserted for convenience of reference only and will not affect the
construction of any of the terms or provisions hereof.
22
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TRICON GLOBAL RESTAURANTS, INC.
SENIOR DEBT SECURITIES
--------------------------
INDENTURE
DATED AS OF MAY 1, 1998
--------------------------
THE FIRST NATIONAL BANK OF CHICAGO,
AS TRUSTEE
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<PAGE>
CROSS REFERENCE TABLE (1)
<TABLE>
<CAPTION>
TIA INDENTURE
SECTION SECTION
- ------- ---------
<S> <C>
310 (a)(1). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7.8; 7.10
(a)(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.10
(a)(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . N.A.
(a)(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . N.A.
(a)(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.10
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7.8; 7.10
(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .N.A
311 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.11
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.11
(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . N.A.
312 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2.7
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.3
(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.3
313 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.6
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7.6
(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7.6; 12.2
(d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7.6
314 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4.2; 12.2
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . N.A.
(c)(1). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.4
(c)(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.4
(c)(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . N.A.
(d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . N.A.
(e) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.5
(f) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.3
315 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.1
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.5; 12.2
315 (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7.1
(d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7.1
(e) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.11
316 (a)(1)(A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6.5
(a)(1)(B) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6.4
(a)(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . N.A.
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6.7
</TABLE>
- -----------------------
(1) Note: This Cross Reference Table shall not, for any purpose,
be deemed to be part of the Indenture.
<PAGE>
<TABLE>
<CAPTION>
TIA INDENTURE
SECTION SECTION
- ------- ---------
<S> <C>
(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . N.A.
317 (a)(1). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6.8
(a)(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6.9
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2.6
318 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.1
</TABLE>
<PAGE>
ARTICLE I
DEFINITIONS AND INCORPORATION BY REFERENCE
<TABLE>
<S> <C>
SECTION 1.1 DEFINITIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . 1
SECTION 1.2 OTHER DEFINITIONS. . . . . . . . . . . . . . . . . . . . . . . . 7
SECTION 1.3 INCORPORATION BY REFERENCE OF TRUST INDENTURE ACT. . . . . . . . 8
SECTION 1.4 RULES OF CONSTRUCTION. . . . . . . . . . . . . . . . . . . . . . 8
</TABLE>
ARTICLE II
THE SECURITIES
<TABLE>
<S> <C>
SECTION 2.1 FORMS GENERALLY. . . . . . . . . . . . . . . . . . . . . . . . . 9
SECTION 2.2 SECURITIES IN GLOBAL FORM. . . . . . . . . . . . . . . . . . . . 9
SECTION 2.3 TITLE, TERMS AND DENOMINATIONS.. . . . . . . . . . . . . . . . . 11
SECTION 2.4 EXECUTION, AUTHENTICATION, DELIVERY AND DATING . . . . . . . . . 14
SECTION 2.5 REGISTRAR AND PAYING AGENT.. . . . . . . . . . . . . . . . . . . 18
SECTION 2.6 PAYING AGENT TO HOLD MONEY AND SECURITIES IN TRUST.. . . . . . . 18
SECTION 2.7 SECURITYHOLDER LISTS.. . . . . . . . . . . . . . . . . . . . . . 18
SECTION 2.8 TRANSFER AND EXCHANGE. . . . . . . . . . . . . . . . . . . . . . 19
SECTION 2.9 REPLACEMENT SECURITIES AND COUPONS.. . . . . . . . . . . . . . . 22
SECTION 2.10 OUTSTANDING SECURITIES; DETERMINATIONS OF HOLDERS' ACTION.. . . 23
SECTION 2.11 TEMPORARY SECURITIES. . . . . . . . . . . . . . . . . . . . . . 24
SECTION 2.12 CANCELLATION. . . . . . . . . . . . . . . . . . . . . . . . . . 26
SECTION 2.13 PAYMENT OF INTEREST; INTEREST RIGHTS PRESERVED. . . . . . . . . 27
SECTION 2.14 PERSONS DEEMED OWNERS.. . . . . . . . . . . . . . . . . . . . . 28
SECTION 2.15 COMPUTATION OF INTEREST . . . . . . . . . . . . . . . . . . . . 29
</TABLE>
ARTICLE III
REDEMPTION
<TABLE>
<S> <C>
SECTION 3.1 RIGHT TO REDEEM; NOTICES TO TRUSTEE. . . . . . . . . . . . . . . 29
SECTION 3.2 SELECTION OF SECURITIES TO BE REDEEMED.. . . . . . . . . . . . . 29
SECTION 3.3 NOTICE OF REDEMPTION.. . . . . . . . . . . . . . . . . . . . . . 30
SECTION 3.4 EFFECT OF NOTICE OF REDEMPTION.. . . . . . . . . . . . . . . . . 31
SECTION 3.5 DEPOSIT OF REDEMPTION PRICE. . . . . . . . . . . . . . . . . . . 31
SECTION 3.6 SECURITIES REDEEMED IN PART. . . . . . . . . . . . . . . . . . . 32
</TABLE>
i
<PAGE>
ARTICLE IV
COVENANTS
<TABLE>
<S> <C>
SECTION 4.1 PAYMENT OF SECURITIES. . . . . . . . . . . . . . . . . . . . . . 32
SECTION 4.2 SEC REPORTS. . . . . . . . . . . . . . . . . . . . . . . . . . . 32
SECTION 4.3 COMPLIANCE CERTIFICATE.. . . . . . . . . . . . . . . . . . . . . 33
SECTION 4.4 FURTHER INSTRUMENTS AND ACTS.. . . . . . . . . . . . . . . . . . 33
SECTION 4.5 MAINTENANCE OF OFFICE OR AGENCY. . . . . . . . . . . . . . . . . 33
SECTION 4.6 ADDITIONAL AMOUNTS.. . . . . . . . . . . . . . . . . . . . . . . 34
SECTION 4.7 LIMITATION ON LIENS. . . . . . . . . . . . . . . . . . . . . . . 35
SECTION 4.8 LIMITATION ON SALE AND LEASEBACK TRANSACTIONS. . . . . . . . . . 36
</TABLE>
ARTICLE V
SUCCESSOR CORPORATION
<TABLE>
<S> <C>
SECTION 5.1 WHEN COMPANY MAY MERGE OR TRANSFER ASSETS. . . . . . . . . . . . 36
</TABLE>
ARTICLE VI
DEFAULTS AND REMEDIES
<TABLE>
<S> <C>
SECTION 6.1 EVENTS OF DEFAULT. . . . . . . . . . . . . . . . . . . . . . . . 37
SECTION 6.2 ACCELERATION; RESCISSION.. . . . . . . . . . . . . . . . . . . . 39
SECTION 6.3 OTHER REMEDIES.. . . . . . . . . . . . . . . . . . . . . . . . . 40
SECTION 6.4 WAIVER OF PAST DEFAULTS. . . . . . . . . . . . . . . . . . . . . 40
SECTION 6.5 CONTROL BY MAJORITY. . . . . . . . . . . . . . . . . . . . . . . 40
SECTION 6.6 LIMITATION ON SUITS. . . . . . . . . . . . . . . . . . . . . . . 40
SECTION 6.7 RIGHTS OF HOLDERS TO RECEIVE PAYMENT.. . . . . . . . . . . . . . 41
SECTION 6.8 COLLECTION SUIT BY TRUSTEE.. . . . . . . . . . . . . . . . . . . 41
SECTION 6.9 TRUSTEE MAY FILE PROOFS OF CLAIM.. . . . . . . . . . . . . . . . 41
SECTION 6.10 PRIORITIES. . . . . . . . . . . . . . . . . . . . . . . . . . . 42
SECTION 6.11 UNDERTAKING FOR COSTS.. . . . . . . . . . . . . . . . . . . . . 43
SECTION 6.12 WAIVER OF STAY, EXTENSION OR USURY LAWS . . . . . . . . . . . . 43
</TABLE>
ARTICLE VII
TRUSTEE
<TABLE>
<S> <C>
SECTION 7.1 DUTIES OF TRUSTEE. . . . . . . . . . . . . . . . . . . . . . . . 43
SECTION 7.2 RIGHTS OF TRUSTEE. . . . . . . . . . . . . . . . . . . . . . . . 44
SECTION 7.3 INDIVIDUAL RIGHTS OF TRUSTEE, ETC. . . . . . . . . . . . . . . . 46
</TABLE>
ii
<PAGE>
<TABLE>
<S> <C>
SECTION 7.4 TRUSTEE'S DISCLAIMER.. . . . . . . . . . . . . . . . . . . . . . 46
SECTION 7.5 NOTICE OF DEFAULTS.. . . . . . . . . . . . . . . . . . . . . . . 46
SECTION 7.6 REPORTS BY TRUSTEE TO HOLDERS. . . . . . . . . . . . . . . . . . 46
SECTION 7.7 COMPENSATION AND INDEMNITY.. . . . . . . . . . . . . . . . . . . 46
SECTION 7.8 REPLACEMENT OF TRUSTEE.. . . . . . . . . . . . . . . . . . . . . 47
SECTION 7.9 SUCCESSOR TRUSTEE BY MERGER. . . . . . . . . . . . . . . . . . . 49
SECTION 7.10 ELIGIBILITY; DISQUALIFICATION.. . . . . . . . . . . . . . . . . 49
SECTION 7.11 PREFERENTIAL COLLECTION OF CLAIMS AGAINST COMPANY.. . . . . . . 49
</TABLE>
ARTICLE VIII
SATISFACTION AND DISCHARGE
<TABLE>
<S> <C>
SECTION 8.1 DISCHARGE OF LIABILITY ON SECURITIES.. . . . . . . . . . . . . . 50
SECTION 8.2 REPAYMENT TO THE COMPANY.. . . . . . . . . . . . . . . . . . . . 50
SECTION 8.3 OPTION TO EFFECT DEFEASANCE OR COVENANT DEFEASANCE . . . . . . . 50
SECTION 8.4 DEFEASANCE AND DISCHARGE . . . . . . . . . . . . . . . . . . . . 51
SECTION 8.5 COVENANT DEFEASANCE. . . . . . . . . . . . . . . . . . . . . . . 51
SECTION 8.6 CONDITIONS TO DEFEASANCE OR COVENANT DEFEASANCE. . . . . . . . . 52
</TABLE>
ARTICLE IX
SUPPLEMENTAL INDENTURES
<TABLE>
<S> <C>
SECTION 9.1 SUPPLEMENTAL INDENTURES WITHOUT CONSENT OF HOLDERS.. . . . . . . 52
SECTION 9.2 SUPPLEMENTAL INDENTURES WITH CONSENT OF HOLDERS. . . . . . . . . 53
SECTION 9.3 COMPLIANCE WITH TRUST INDENTURE ACT. . . . . . . . . . . . . . . 54
SECTION 9.4 REVOCATION AND EFFECT OF CONSENTS, WAIVERS AND ACTIONS.. . . . . 55
SECTION 9.5 NOTATION ON OR EXCHANGE OF SECURITIES. . . . . . . . . . . . . . 55
SECTION 9.6 TRUSTEE TO SIGN SUPPLEMENTAL INDENTURES. . . . . . . . . . . . . 55
SECTION 9.7 EFFECT OF SUPPLEMENTAL INDENTURES. . . . . . . . . . . . . . . . 55
</TABLE>
ARTICLE X
SINKING FUNDS
<TABLE>
<S> <C>
SECTION 10.1 APPLICABILITY OF ARTICLE. . . . . . . . . . . . . . . . . . . . 56
SECTION 10.2 SATISFACTION OF SINKING FUND PAYMENTS WITH SECURITIES.. . . . . 56
SECTION 10.3 REDEMPTION OF SECURITIES FOR SINKING FUND.. . . . . . . . . . . 56
</TABLE>
iii
<PAGE>
ARTICLE XI
ACTIONS OF HOLDERS OF SECURITIES
<TABLE>
<S> <C>
SECTION 11.1 PURPOSES FOR WHICH MEETINGS MAY BE CALLED.. . . . . . . . . . . 57
SECTION 11.2 CALL, NOTICE AND PLACE OF MEETINGS. . . . . . . . . . . . . . . 57
SECTION 11.3 PERSONS ENTITLED TO VOTE AT MEETINGS. . . . . . . . . . . . . . 57
SECTION 11.4 QUORUM; ACTION. . . . . . . . . . . . . . . . . . . . . . . . . 58
SECTION 11.5 DETERMINATION OF VOTING RIGHTS; CONDUCT AND
ADJOURNMENT OF MEETINGS.. . . . . . . . . . . . . . . . . . . . 58
SECTION 11.6 COUNTING VOTES AND RECORDING ACTION OF MEETINGS.. . . . . . . . 59
SECTION 11.7 ACTIONS OF HOLDERS GENERALLY. . . . . . . . . . . . . . . . . . 60
</TABLE>
ARTICLE XII
MISCELLANEOUS
<TABLE>
<S> <C>
SECTION 12.1 TRUST INDENTURE ACT CONTROLS. . . . . . . . . . . . . . . . . . 61
SECTION 12.2 NOTICES.. . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
SECTION 12.3 COMMUNICATION BY HOLDERS WITH OTHER HOLDERS.. . . . . . . . . . 63
SECTION 12.4 (Intentionally Omitted).. . . . . . . . . . . . . . . . . . . . 63
SECTION 12.5 STATEMENTS REQUIRED IN CERTIFICATE OR OPINION.. . . . . . . . . 63
SECTION 12.6 SEPARABILITY CLAUSE.. . . . . . . . . . . . . . . . . . . . . . 64
SECTION 12.7 RULES BY TRUSTEE, PAYING AGENT AND REGISTRAR. . . . . . . . . . 64
SECTION 12.8 LEGAL HOLIDAYS. . . . . . . . . . . . . . . . . . . . . . . . . 64
SECTION 12.9 GOVERNING LAW AND JURISDICTION. . . . . . . . . . . . . . . . . 64
SECTION 12.10 NO RECOURSE AGAINST OTHERS.. . . . . . . . . . . . . . . . . . 65
SECTION 12.11 SUCCESSORS.. . . . . . . . . . . . . . . . . . . . . . . . . . 65
SECTION 12.12 EFFECT OF HEADINGS AND TABLE OF CONTENTS.. . . . . . . . . . . 65
SECTION 12.13 BENEFITS OF INDENTURE. . . . . . . . . . . . . . . . . . . . . 65
SECTION 12.14 MULTIPLE ORIGINALS.. . . . . . . . . . . . . . . . . . . . . . 65
</TABLE>
EXHIBIT A
<TABLE>
<S> <C>
CERTIFICATE. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . 67
</TABLE>
iv
<PAGE>
INDENTURE, dated as of May 1, 1998, by and between Tricon Global
Restaurants, Inc., a North Carolina corporation ("COMPANY"), and The First
National Bank of Chicago, as trustee ("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
debentures, notes or other evidences of indebtedness (herein called the
"SECURITIES") to be issued in one or more series as in this Indenture
provided.
For and in consideration of the premises and the purchase of the
Securities by the Holders thereof, it is mutually covenanted and agreed, for
the equal and ratable benefit of the Holders of the Securities or each series
thereof as follows:
ARTICLE I
DEFINITIONS AND INCORPORATION BY REFERENCE
SECTION 1.1 DEFINITIONS.
"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 or cause the direction of 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.
"AUTHORIZED NEWSPAPER" means a newspaper, in the English language or, at
the option of the Company, in an official language of the country of
publication, customarily published on each Business Day (with respect to
Bearer Securities, set forth in the Officers' Certificate with respect to a
series of Bearer Securities), whether or not published on Saturdays, Sundays
or holidays, and of general circulation in the place in connection with which
the term is used or in the financial community of such place. Where
successive publications are required to be made in Authorized Newspapers, the
successive publications may be made in the same or in different Authorized
Newspapers meeting the foregoing requirements and in each case on any
Business Day.
"BEARER SECURITY" means any Security in the form (to the extent
applicable thereto) established pursuant to Section 2.1 which is payable to
the bearer.
<PAGE>
"BOARD OF DIRECTORS" means the board of directors of the Company or any
committee of such board authorized with respect to any matter to exercise the
powers of the Board of Directors of the Company.
"BOARD RESOLUTION" means a copy of a resolution certified by the
Secretary or an Assistant Secretary of the Company to have been duly adopted
by the Board of Directors and to be in full force and effect on the date of
such certification, and delivered to the Trustee.
"BUSINESS DAY" means, except as otherwise specified as contemplated by
Section 2.3(a), with respect to any Place of Payment or any other particular
location referred to in this Indenture or in the Securities, each Monday,
Tuesday, Wednesday, Thursday and Friday which is not a day on which banking
institutions in that Place of Payment or other location are authorized or
obligated by law or executive order to close.
"CAPITAL STOCK" for any corporation means any and all shares, interests,
rights to purchase, warrants, options, participations or other equivalents of
or interests in (however designated) stock issued by that corporation.
"CASH" means such coin or currency of the United States as at any time
of payment is legal tender for the payment of public and private debts.
"CEDEL S.A." means Centrale de Livraison de Valeurs Mobilieres SA.
"COMPANY" means the party named as the "COMPANY" in the first paragraph
of this Indenture until a successor replaces it pursuant to the applicable
provisions of this Indenture and, thereafter, shall mean such successor.
"COMPANY REQUEST" or "COMPANY ORDER" means a written request or order
signed in the name of the Company by its Chairman of the Board, a Vice
Chairman, its Chief Executive Officer, its President or a Vice President, and
by its Treasurer, an Assistant Treasurer, its Secretary or an Assistant
Secretary, and delivered to the Trustee or, with respect to Sections 2.4,
2.8, 2.11 and 7.2, any other employee of the Company named in an Officers'
Certificate delivered to the Trustee.
"CONSOLIDATED NET TANGIBLE ASSETS" means, with respect to the Company,
the total amount of assets (less applicable valuation allowances) after
deducting (a) all current liabilities (excluding the amount of liabilities
which are by their terms extendable or renewable at the option of the obligor
to a date more than 12 months after the date as of which the amount is being
determined) and (b) all goodwill, tradenames, trademarks, patents,
unamortized debt discount and expense and other like intangible assets, all
as set forth on the most recent balance sheet of the Company and its
consolidated Subsidiaries and determined on a consolidated basis in
accordance with generally accepted accounting principles.
2
<PAGE>
"COUPON" means any interest coupon appertaining to a Bearer Security.
"DEBT" means (i) all obligations represented by notes, bonds, debentures
or similar evidences of indebtedness; (ii) all indebtedness for borrowed
money or for the deferred purchase price of property or services other than,
in the case of any such deferred purchase price, on normal trade terms; and
(iii) all rental obligations as lessee under leases which shall have been or
should be, in accordance with generally accepted accounting principles,
recorded as capital leases.
"DEFAULT" means any event which is, or after notice or passage of time
or both would be, an Event of Default.
"DEPOSITARY" means, with respect to the Securities of any series
issuable or issued in whole or in part in global form, the person specified
as contemplated by Section 2.3(a) as the Depositary with respect to such
series of Securities, until a successor shall have become such pursuant to
the applicable provisions of this Indenture, and thereafter "DEPOSITARY"
shall mean or include such successor.
"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 6.2.
"DOLLAR" or "$" means a dollar or other equivalent unit in such coin or
currency of the United States as at the time shall be legal tender for the
payment of public and private debts.
"EURO-CLEAR" means the operator of the Euro-clear System.
"EXCHANGE ACT" means the Securities Exchange Act of 1934, as amended.
"FUNDED DEBT" means Debt of the Company or a Subsidiary owning
Restricted Property maturing by its terms one year or more after its
creation, Debt directly or indirectly renewable or extendible, at the option
of the obligor, by its terms or by the terms of any instrument or agreement
relating thereto, to a date one year or more from the date of its creation,
Debt under a revolving credit or similar agreement obligating the lender or
lenders to extend credit over a period of one year or more and Debt
classified as long-term debt under generally accepted accounting principles
and, in the case of Funded Debt of the Company, ranking at least PARI PASSU
with the Securities.
"HOLDER" or "SECURITYHOLDER," when used with respect to any Security,
means, in the case of a Registered Security, a person in whose name a
Security is registered on the
3
<PAGE>
Registrar's books and, in the case of a Bearer Security, the bearer thereof
and, when used with respect to any coupon, means the bearer thereof.
"INDENTURE" means this Indenture, as amended or supplemented from time
to time in accordance with the terms hereof and shall include the terms of a
particular series of Securities established as contemplated in Section 2.3(a).
"INTEREST," when used with respect to a 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.
"LIEN" means any mortgage, pledge, lien, encumbrance, charge or security
interest.
"MATURITY," when used with respect to any Security, means the date on
which the Principal of such Security or an installment of Principal or, in
the case of a Discount Security, the Principal Amount payable upon a
declaration of acceleration pursuant to Section 6.2, becomes due and payable
as therein or herein provided, whether at the Stated Maturity or by
declaration of acceleration, call for redemption or otherwise.
"OFFICER" means the Chairman of the Board, any Vice Chairman, the Chief
Executive Officer, the President, any Vice President, the Treasurer, the
Secretary, any Assistant Treasurer or any Assistant Secretary of the Company.
"OFFICERS' CERTIFICATE" means a written certificate containing the
information specified in Sections 12.4 and 12.5, signed in the name of the
Company by its Chairman of the Board, a Vice Chairman, its Chief Executive
Officer, its President or a Vice President, and by its Treasurer, an
Assistant Treasurer, its Secretary or an Assistant Secretary, and delivered
to the Trustee.
"OPINION OF COUNSEL" means a written opinion containing the information
specified in Sections 12.4 and 12.5, from legal counsel who is acceptable to
the Trustee. The counsel may be an employee of, or counsel to, the Company
or the Trustee.
"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, if any, thereon, the Stated
Maturity or Maturities thereof, the original issue date or dates thereof, the
redemption provisions, if any, and any other terms specified as contemplated
by Section 2.3(a) with respect thereto, are to be determined by the Company,
or one or more of the Company's agents designated in an Officers'
Certificate, upon the issuance of such Securities.
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"PERSON" means any individual, corporation, partnership, joint venture,
association, joint-stock company, limited liability company, 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, subject to the provisions of Section
4.5, the Principal of and any interest on the Securities of that series are
payable as specified as contemplated by Section 2.3(a).
"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 2.9 in exchange for or in
lieu of a mutilated, destroyed, lost or stolen Security or a Security to
which a mutilated, destroyed, lost or stolen coupon appertains shall be
deemed to evidence the same debt as the mutilated, destroyed, lost or stolen
Security or the Security to which the mutilated, destroyed, lost or stolen
coupon appertains, as the case may be.
"PRINCIPAL" or "PRINCIPAL AMOUNT" of a Security, except as otherwise
specifically provided in this Indenture, means the outstanding principal of
the Security plus the premium, if any, of the Security.
"REDEMPTION DATE" or "REDEMPTION DATE," when used with respect to any
Security to be redeemed, shall mean the date specified for redemption of such
Security in accordance with the terms of such Security and this Indenture.
"REDEMPTION PRICE" or "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.
"REGISTERED SECURITY" means any Security in the form (to the extent
applicable thereto) established pursuant to Section 2.1 which is registered
on the books of the Registrar.
"REGULAR RECORD DATE" for the interest payable on any Interest Payment
Date on the Registered Securities of any series means the date specified for
that purpose as contemplated by Section 2.3(a).
"RESTRICTED PROPERTY" means (a) any individual facility or property, or
portion thereof, owned or leased by the Company or any Subsidiary and located
within the continental United States of America which, in the opinion of the
Board of Directors, is of material importance to the business of the Company
and its Subsidiaries taken as a whole, but no such individual facility,
property or portion thereof shall be deemed of material importance if its
gross book value (before deducting accumulated depreciation) is less than 3%
of Consolidated Net Tangible Assets, and (b) any shares of capital stock or
indebtedness of any Subsidiary owning any such facility.
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"SALE AND LEASEBACK TRANSACTION" means any arrangement with any person
pursuant to which the Company or any Subsidiary leases any Restricted
Property that has been or is to be sold or transferred by the Company or the
Subsidiary to such person, other than (a) leases for a term, including
renewals at the option of the lessee, of not more than three years, (b)
leases between the Company and a Subsidiary or between Subsidiaries, (c)
leases of Restricted Property executed by the time of, or within 12 months
after the latest of, the acquisition, the completion of construction or
improvement, or the commencement of commercial operation, of such Restricted
Property, and (d) arrangements pursuant to any provision of law with an
effect similar to that under former Section 168(f)(8) of the Internal Revenue
Code of 1954.
"SEC" means the Securities and Exchange Commission.
"SECURITIES" has the meaning stated in the first recital of this
Indenture and more particularly means any Securities authenticated and
delivered under this Indenture.
"SECURITYHOLDER" or "HOLDER," when used with respect to any Security,
means in the case of a Registered Security, a person in whose name a Security
is registered on the Registrar's books and in the case of a Bearer Security
the bearer thereof and, when used with respect to any coupon, means the
bearer thereof.
"SPECIAL RECORD DATE" for the payment of any Defaulted Interest on the
Registered Securities of any issue means a date fixed by the Trustee pursuant
to Section 2.13.
"STATED MATURITY," when used with respect to any Security or any
installment of Principal thereof or interest thereon, means the date
specified in such Security or a coupon representing such installment of
interest as the fixed date on which an amount equal to the Principal of such
Security or an installment of Principal thereof or interest thereon is due
and payable.
"SUBSIDIARY" means, with respect to any person, a corporation of which a
majority of the Capital Stock having voting power under ordinary
circumstances to elect a majority of the board of directors of such
corporation is owned by (i) such person, (ii) such person and one or more
Subsidiaries or (iii) one or more Subsidiaries of such person.
"TIA" means the Trust Indenture Act of 1939 as in effect on the date of
this Indenture, except as provided in Section 9.3.
"TRUST OFFICER" means, when used with respect to the Trustee, any Senior
Trust Officer, any Vice President, any Trust Officer, any Assistant Vice
President or any other officer or assistant officer of the Trustee
customarily performing functions similar to those performed by the persons
who at the time shall be such officers respectively, or to whom any
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corporate trust matter is referred because of his or her knowledge of and
familiarity with the particular subject.
"TRUSTEE" means the party named as the "TRUSTEE" in the first paragraph
of this Indenture until a successor replaces it pursuant to the applicable
provisions of this Indenture and, thereafter, shall mean such successor.
"UNITED STATES" means the United States of America, its territories, its
possessions (including the Commonwealth of Puerto Rico), and other areas
subject to its jurisdiction.
"UNITED STATES ALIEN" means any person who, for United States Federal
income tax purposes, is a foreign corporation, a non-resident alien
individual, a non-resident alien fiduciary of a foreign estate or trust, or a
foreign partnership one or more of the members of which is, for United States
Federal income tax purposes, a foreign corporation, a non-resident alien
individual or a non-resident alien fiduciary of a foreign estate or trust.
"VALUE" means, with respect to a Sale and Leaseback Transaction, an
amount equal to the present value of the lease payments (after deducting the
amount of rent to be received under noncancellable subleases) with respect to
the term of the lease remaining on the date as of which the amount is being
determined, without regard to any renewal or extension options contained in
the lease, discounted at the weighted average interest rate on the Securities
of all series (including the effective interest rate on any Original Issue
Discount (as that term is defined in the Internal Revenue Code of 1986, as
amended) Securities) which are outstanding on the effective date of such Sale
and Leaseback Transaction and which have the benefit of the covenant limiting
Sale and Leaseback Transactions. "Lease payments" shall be the aggregate
amount of the rent payable by the lessee with respect to the applicable
period, after excluding amounts required to be paid on account of maintenance
and repairs, insurance, taxes, water rates and similar charges. If and to
the extent the amount of any lease payment during any future period is not
definitely determinable under the lease in question, the amount of such lease
payment shall be estimated in such reasonable manner as the Board of
Directors of the Company may in good faith determine.
SECTION 1.2 OTHER DEFINITIONS.
<TABLE>
<CAPTION>
Defined in
Term Section
---- -------
<S> <C>
"BANKRUPTCY LAW" 6.1
"COMMON DEPOSITARY" 2.2
"CUSTODIAN" 6.1
"DEFAULTED INTEREST" 2.13
"EVENT OF DEFAULT" 6.1
"EXCHANGE DATE" 2.2
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"LEGAL HOLIDAY" 12.8
"NOTICE OF DEFAULT " 6.1
"OUTSTANDING" 2.10
"PAYING AGENT" 2.5
"PERMANENT GLOBAL BEARER SECURITY" 2.2
"REGISTRAR" 2.5
"TEMPORARY GLOBAL BEARER SECURITY" 2.2
</TABLE>
SECTION 1.3 INCORPORATION BY REFERENCE OF TRUST INDENTURE ACT.
Whenever this Indenture refers to a provision of the TIA, the provision is
incorporated by reference in and made a part of this Indenture. The following
TIA terms used in this Indenture have the following meanings:
"COMMISSION" means the SEC.
"INDENTURE SECURITIES" means the Securities.
"INDENTURE SECURITY HOLDER" means a Holder or Securityholder.
"INDENTURE TO BE QUALIFIED" means this Indenture.
"INDENTURE TRUSTEE" or "INSTITUTIONAL TRUSTEE" means the Trustee.
"OBLIGOR" on the indenture securities means the Company.
All other TIA terms used in this Indenture that are defined by the TIA,
defined by TIA reference to another statute or defined by SEC rule have the
meanings assigned to them by such definitions.
SECTION 1.4 RULES OF CONSTRUCTION. Unless the context otherwise requires:
(1) a term has the meaning assigned to it;
(2) an accounting term not otherwise defined has the meaning assigned
to it in accordance with generally accepted accounting principles in the
United States as in effect from time to time;
(3) "OR" is not exclusive;
(4) "INCLUDING" means including, without limitation; and
(5) words in the singular include the plural, and words in the plural
include the singular.
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ARTICLE II
THE SECURITIES
SECTION 2.1 FORMS GENERALLY. The Registered Securities, if any, of each
series and the Bearer Securities, if any, of each series and related coupons
shall be in substantially such form (including global form) as shall be
established by delivery to the Trustee of an Officers' Certificate 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 as may,
consistently herewith, be determined by the Officers executing such Securities
or coupons as evidenced by their execution of the Securities or coupons. The
Officers' Certificate so establishing the form of Security or coupons, if any,
of any series shall be delivered to the Trustee at or prior to the delivery of
the Company Order contemplated by Section 2.4 for the authentication and
delivery of such Securities or coupons.
Unless otherwise specified as contemplated by Section 2.3(a), Bearer
Securities shall have interest coupons attached.
The permanent Securities and coupons, if any, shall be printed,
lithographed, engraved or word processed or produced by any combination of these
methods or may be produced in any other manner, PROVIDED, that such method is
permitted by the rules of any securities exchange on which such Securities may
be listed, all as determined by the Officers executing such Securities as
evidenced by their execution of such Securities.
SECTION 2.2 SECURITIES IN GLOBAL FORM. If Securities of a series are
issuable in temporary or permanent global form, as specified as contemplated by
Section 2.3(a), then, notwithstanding clause (8) of Section 2.3(a) and the
provisions of Section 2.3(b), any such Security shall represent such of the
Outstanding Securities of such series as shall be specified therein and may
provide that it shall represent the aggregate amount of Outstanding Securities
from time to time endorsed thereon or otherwise notated on the books and records
of the Registrar and that the aggregate amount of Outstanding Securities
represented thereby may from time to time be reduced to reflect exchanges. Any
endorsement of a Security in global form to reflect the amount of any increase
or decrease in the amount of Outstanding Securities represented thereby shall be
made by the Trustee in such manner and upon instructions given by such person or
persons as shall be specified therein or in the Company Order to be delivered to
the Trustee pursuant to Section 2.4 or 2.11. Subject to the provisions of
Section 2.4 and, if applicable, Section 2.11, the Trustee shall deliver and
redeliver any Security in global form in the manner and upon instructions given
by the person or persons specified therein or in the applicable Company Order.
If a Company Order pursuant to Section 2.4 or 2.11 has been, or simultaneously
is, delivered, any instructions by the Company with respect to endorsement or
other notation on the books and records of the Registrar or delivery or
redelivery
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of a Security of such series in global form shall be in writing but
need not comply with Section 12.4 or 12.5 and need not be accompanied by an
Opinion of Counsel (except as required by Section 2.4).
The provisions of the last sentence of Section 2.4 shall apply to any
Security represented by a Security in global form if such Security was never
issued and sold by the Company, and the Company delivers to the Trustee the
Security in global form together with written instructions (which need not
comply with Section 12.4 or 12.5 and need not be accompanied by an Opinion of
Counsel) with regard to the reduction in the Principal Amount of Securities
represented thereby, together with the written statement contemplated by the
last sentence of Section 2.4.
Notwithstanding the provisions of Sections 2.1 and 2.13, unless otherwise
specified as contemplated by Section 2.3(a), payment of Principal of and any
interest on any Security in global form shall be made to the person or persons
specified therein.
Any series of Bearer Securities shall be issued initially in the form of
one temporary global Bearer Security (the "Temporary Global Bearer Security"),
which Temporary Global Bearer Security shall be deposited on behalf of the
beneficial owners of the Bearer Securities represented thereby with The First
National Bank of Chicago, London Branch, as common depositary (the "Common
Depositary"), for credit to their respective accounts (or to such other accounts
as they may direct) at Morgan Guaranty Trust Company of New York, Brussels
office, as operator of the Euro-clear or Cedel S.A.
On or before the date 40 days after the later of the announcement of the
offering of such Bearer Securities and the date of settlement (the "Exchange
Date"), the Company shall deliver to a Paying Agent located outside the
United States, or its designated agent, Bearer Securities executed by the
Company. On or after the Exchange Date, the Temporary Global Bearer Security
shall be surrendered by the Common Depositary to the Trustee or its agent, as
the Company's agent for such purpose, to be exchanged, in whole or from time
to time in part, at the sole discretion of the Company for (i) Bearer
Securities or (ii) a permanent global Bearer Security (the "Permanent Global
Bearer Security") without charge to Holders, and the principal Paying Agent
or other Paying Agent outside the United States shall authenticate and
deliver (at an office or agency outside the United States), in exchange for
the Temporary Global Bearer Security or the portions thereof to be exchanged,
an equal aggregate principal amount of Bearer Securities or the Permanent
Global Bearer Security, as shall be specified by the beneficial owners
thereof; PROVIDED, HOWEVER, that upon such presentation by the Common
Depositary, the Temporary Global Bearer Security is accompanied by a
certificate dated the Exchange Date or a subsequent date and signed by
Euro-clear as to the portion of the Temporary Global Bearer Security held for
its account then to be exchanged and a certificate dated the Exchange Date or
a subsequent date and signed by Cedel S.A. as to the portion of the Temporary
Global Bearer Security held for its account then to be exchanged, each to the
effect hereinafter provided. The Company and the Trustee agree that they will
cooperate in causing the paying agent located outside the United States to
retain each certificate provided by Euro-clear or Cedel S.A. for a period of
four calendar years following the year in which the
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certificate is received and not to destroy or otherwise dispose of any such
certificate without first offering to deliver it to the Company.
Each certificate to be provided by Euro-clear and Cedel S.A. shall be
substantially in the form attached hereto as Exhibit A or with such changes
therein as shall be approved by the Company and be satisfactory to the Trustee.
Each certificate received by Euro-clear and Cedel S.A. from persons
appearing in their records as persons entitled to a portion of the Temporary
Global Bearer Security shall be substantially to the effect set forth in this
Indenture.
Upon any such exchange of a portion of the Temporary Global Bearer
Security for Bearer Securities or the Permanent Global Bearer Security, the
Temporary Global Bearer Security shall be endorsed to reflect the reduction
of the principal amount evidenced thereby. Until so exchanged in full, the
Temporary Global Bearer Security shall in all respects be entitled to the
same benefits under, and subject to the same terms and conditions of, this
Indenture as Bearer Securities authenticated and delivered hereunder, except
that none of Euro-clear, Cedel S.A. or the beneficial owners of the Temporary
Global Bearer Security shall be entitled to receive payment of interest or
other payments thereon or to convert the Temporary Global Bearer Security, or
any portion thereof, into Common Stock of the Company or any other security,
cash or other property.
SECTION 2.3 TITLE, TERMS AND DENOMINATIONS.
(a) The aggregate Principal Amount of Securities which may be
authenticated and delivered under this Indenture shall be unlimited.
The Securities may be issued in one or more series. There shall be
established and, subject to Section 2.4, set forth, or determined in the manner
provided, in an Officers' Certificate of the Company or established in one or
more indentures supplemental hereto:
(1) the title of the Securities of the series (which shall
distinguish the Securities of the series from all other Securities);
(2) any limit upon the aggregate Principal Amount of the Securities
of the series which may be authenticated and delivered under this Indenture
(except for Securities authenticated and delivered upon registration of
transfer of, or in exchange for, or in lieu of, other Securities of the
series pursuant to Sections 2.8, 2.9, 2.11, 3.6, 9.5 or 10.3 and except for
any Securities which, pursuant to Section 2.4, are deemed never to have
been authenticated and delivered hereunder);
(3) whether Securities of the series are to be issuable as Registered
Securities, Bearer Securities or both, and whether any Securities of the
series may be represented initially by a Security in temporary or permanent
global form and, if so, the initial
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Depositary with respect to any such temporary or permanent global
Security, and if other than as provided in Section 2.8 or 2.11, as
applicable, whether and the circumstances under which beneficial owners
of interests in any such temporary or permanent global Security may
exchange such interests for Securities of such series and of like tenor
of any authorized form and denomination and the Authorized Newspapers
for publication of notices to holders of Bearer Securities;
(4) the date or dates on which the Principal of the Securities of the
series is payable or the method of determination thereof;
(5) the place or places where, subject to the provisions of Section
4.5, and the manner in which the Principal of and interest, if any, on
Securities of the series shall be payable and the place or places where the
Securities may be presented for transfer and, if applicable, conversion or
exchange and notices and demands to or upon the Company in respect of the
Securities of the series and this Indenture may be served;
(6) the rate or rates at which the Securities of the series shall
bear interest, or the method of calculating such rate or rates, if any, and
the date or dates from which any such interest shall accrue;
(7) the Interest Payment Dates on which any such interest shall be
payable and the Regular Record Date for any interest payable on any
Registered Securities on any Interest Payment Date;
(8) the obligation, if any, of the Company to redeem or purchase
Securities of the series pursuant to any sinking fund or analogous
provisions or at the option of a Holder thereof, the conditions, if any,
giving rise to such obligation, and the period or periods within which, and
the price or prices at which and the terms and conditions upon which
Securities of the series shall be redeemed or purchased, in whole or in
part, pursuant to such obligation, and any provisions for the remarketing
of such Securities;
(9) whether the Securities are convertible or exchangeable into other
securities and, if so, the terms and conditions upon which such conversion
or exchange will be effected including the initial conversion or exchange
price or rate and any adjustments thereto, the conversion or exchange
period and other conversion or exchange provisions;
(10) the currency or currencies, including composite currencies, in
which payment of the Principal of and interest, if any, on the Securities
of the series shall be payable if other than the currency of the United
States, and if so, whether the Securities of the Series may be satisfied
and discharged other than as provided in Article VIII;
(11) any terms applicable to Original Issue Discount, if any (as
that term is defined in the Internal Revenue Code of 1986, as amended, and
the Regulations
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thereunder), including the issue price thereof and the rate or rates at
which such Original Issue Discount, if any, shall accrue;
(12) if the amount of payments of Principal of and interest, if any,
on the Securities of the series is to be determined with reference to an
index, formula or other method, or based on a coin or currency other than
that in which the Securities are stated to be payable, the manner in which
such amounts shall be determined and the calculation agent, if any, with
respect thereto;
(13) if other than the Principal Amount thereof, the portion of the
Principal Amount of any Securities of the series which shall be payable
upon declaration of acceleration of the Maturity thereof pursuant to
Section 6.2;
(14) any deletions from, modifications of or additions to the Events
of Default or covenants of the Company specified in this Indenture with
respect to such Securities of the series;
(15) the person to whom any interest on any Registered 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, the manner in
which, and the person to whom, any interest on any Bearer Security of the
series shall be payable, if otherwise than upon presentation and surrender
of the coupons appertaining thereto as they severally mature, and the
extent to which, or the manner in which (including any certification
requirement and other terms and conditions under which), any interest
payable on a temporary or permanent global Security on an Interest Payment
Date will be paid if other than in the manner provided in Section 2.2 and
Section 2.4, as applicable;
(16) the period or periods within which, the price or prices at which
and the terms and conditions upon which, Securities of the series may be
redeemed, in whole or in part, at the option of the Company;
(17) the denominations in which any Registered Securities of the
series shall be issuable, if other than denominations of $1,000 and any
integral multiple thereof, and the denomination or denominations in which
any Bearer Securities of the series shall be issuable, if other than
denominations of $5,000 and $100,000;
(18) if the Company will pay additional amounts on any of the
Securities and coupons, if any, of the series to any Holder who is a United
States Alien (including any modification in the definition of such term),
in respect of any tax, assessment or governmental charge withheld or
deducted, under what circumstances and with what procedures and
documentation the Company will pay such additional amounts, whether such
additional amounts will be treated as interest or Principal pursuant to
this Indenture,
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and whether the Company will have the option to redeem such Securities
rather than pay additional amounts (and the terms of any such option);
(19) if other than as defined in Section 1.1, the meaning of
"BUSINESS DAY" when used with respect to any Securities of the series;
(20) if the Securities of the series may be issued or delivered
(whether upon original issuance or upon exchange of a temporary Security of
such series or otherwise), or any installment of Principal of or any
interest is payable, only upon receipt of certain certificates or other
documents or satisfaction of other conditions in addition to those
specified in this Indenture, the form and terms of such certificates,
documents or conditions; and
(21) any other terms of the series (which terms shall not be
inconsistent with the provisions of this Indenture, except as permitted by
Section 9.1(7)).
All Securities of any one series and the coupons appertaining to any Bearer
Securities of such series shall be substantially identical except as to
denomination and the rate or rates of interest, if any, and Stated Maturity, the
date from which interest, if any, shall accrue and except as may otherwise be
provided in or pursuant to an Officers' Certificate pursuant to this Section
2.3(a) or in any indenture supplemental hereto. All Securities of any one
series need not be issued at the same time and, unless otherwise provided, a
series may be reopened for issuances of additional Securities of such series or
for the establishment of additional terms with respect to the Securities of such
series.
If any of the terms of the series are established by action taken pursuant
to a Board Resolution, a copy of any appropriate record of such action shall be
certified by the Secretary or an Assistant Secretary of the Company and
delivered to the Trustee at or prior to the delivery of the Officers'
Certificate setting forth the terms of the series. With respect to Securities
of a series subject to a Periodic Offering, such Board Resolution or Officers'
Certificate may provide general terms 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, or one or more of the Company's agents designated in an Officers'
Certificate, in accordance with the Company Order as contemplated by the first
proviso of the third paragraph of Section 2.4.
(b) Unless otherwise provided as contemplated by Section 2.3(a) with
respect to any series of Securities, any Registered Securities of a series shall
be issuable in denominations of $1,000 and any integral multiple thereof and any
Bearer Securities of a series shall be issuable in denominations of $5,000 and
$100,000.
SECTION 2.4 EXECUTION, AUTHENTICATION, DELIVERY AND DATING. The
Securities shall be executed on behalf of the Company by its Chairman of the
Board, one of its Vice Chairmen, its
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President or one of its Vice Presidents, or the Treasurer or any Assistant
Treasurer, under its corporate seal reproduced thereon attested by its
Secretary or one of its Assistant Secretaries. The signature of any of these
officers on the Securities may be manual or facsimile. Coupons shall bear the
facsimile signature of the Treasurer or any Assistant Treasurer of the
Company.
Securities and coupons bearing the manual or facsimile signatures of
individuals who were at any time the proper officers of the Company shall bind
the Company, notwithstanding that such individuals or any of them have ceased to
hold such offices prior to the authentication and delivery of such Securities or
did not hold such offices at the date of such Securities.
At any time and from time to time after the execution and delivery of this
Indenture (and subject to delivery of the Board Resolution or Officers'
Certificate or supplemental indenture as set forth in Section 2.3 with respect
to the initial issuance of Securities of any series), the Company may deliver
Securities of any series together with any coupons appertaining thereto,
executed by the Company to the Trustee or its authenticating agent with respect
to Bearer Securities for authentication, together with a Company Order for the
authentication and delivery of such Securities; and the Trustee or its
authenticating agent with respect to Bearer Securities in accordance with such
Company Order shall authenticate and deliver such Securities; PROVIDED, HOWEVER,
that, with respect to Securities of a series subject to a Periodic Offering, (a)
such Company Order may be delivered by the Company to the Trustee prior to the
delivery to the Trustee or its authenticating agent with respect to Bearer
Securities of such Securities for authentication and delivery, (b) the Trustee
shall authenticate and deliver Securities of such series for original issue from
time to time, in an aggregate Principal Amount not exceeding the aggregate
Principal Amount established for such series, pursuant to a Company Order or
pursuant to such procedures acceptable to the Trustee as may be specified from
time to time by a Company Order, (c) the rate or rates of interest, if any, the
Stated Maturity or Maturities, the original issue date or dates, the redemption
provisions, if any, and any other terms of Securities of such series shall be
determined by a Company Order or pursuant to such procedures and (d) if provided
for in such procedures, such Company Order may authorize authentication and
delivery pursuant to electronic instructions from the Company, or the Company's
duly authorized agent or agents designated in an Officers' Certificate, which
instructions shall be promptly confirmed in writing; and PROVIDED, FURTHER,
that, no Bearer Security or coupon shall be mailed or otherwise delivered to any
person who is not a United States Alien or to any location in the United States.
Except as permitted by Section 2.9, the authenticating agent shall not
authenticate and deliver any Bearer Security unless all appurtenant coupons for
interest then matured have been detached and cancelled.
If the forms or terms of the Securities of the series and any related
coupons have been established in or pursuant to one or more Officers'
Certificates as permitted by Sections 2.1 and 2.3(a), 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 7.1) shall be fully protected in relying upon, an Opinion of
Counsel stating:
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(a) that the form and terms of such Securities and any coupons have been
duly authorized by the Company and established in conformity with the provisions
of this Indenture; and
(b) that such Securities, together with any coupons appertaining thereto,
when authenticated and delivered by the Trustee or its authenticating agent 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 customary
exceptions;
PROVIDED, HOWEVER, that, with respect to Securities of a series subject to a
Periodic Offering, the Trustee shall be entitled to receive such Opinion of
Counsel only once at or prior to the time of the first authentication of
Securities of such series (provided that such Opinion of Counsel covers all
Securities of such series) and that the Opinion of Counsel above may state:
(x) that the forms of such Securities have been, and the terms of such
Securities (when established in accordance with such procedures as may be
specified from time to time in a Company Order, all as contemplated by and
in accordance with a Board Resolution or an Officers' Certificate or
supplemental indenture pursuant to Section 2.3(a), as the case may be) will
have been, duly authorized by the Company and established in conformity
with the provisions of this Indenture; and
(y) that such Securities, together with the coupons, if any,
appertaining thereto, when (1) executed by the Company, (2) completed,
authenticated and delivered by the Trustee or in the case of Bearer
Securities and coupons, an authenticating agent located outside the United
States, in accordance with this Indenture, and (3) 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 customary
exceptions.
With respect to Securities of a series subject to a Periodic Offering, the
Trustee may conclusively 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 other
documents delivered pursuant to Sections 2.1 and 2.3(a) and this Section, as
applicable, at or prior to the time of the first authentication of Securities of
such series unless and until it has received written notification that such
opinion or other documents have been superseded or revoked. In connection with
the authentication and delivery of Securities of a series subject to a Periodic
Offering, the Trustee shall be entitled to assume, unless it has received
written notice to the contrary, that the Company's instructions to authenticate
and deliver such Securities do not violate any rules, regulations or orders of
any governmental agency or commission having jurisdiction over the Company.
Notwithstanding the provisions of Section 2.3(a) and of the preceding three
paragraphs, if all Securities of a series are subject to a Periodic Offering, it
shall not be necessary to deliver the
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Officers' Certificate otherwise required pursuant to Section 2.3(a) at or
prior to the time of authentication of each Security of such series if such
Officers' Certificate is delivered at or prior to the authentication upon
original issuance of the first Security of such series to be issued.
Each Registered Security shall be dated the date of its authentication;
and, unless otherwise specified as contemplated by Section 2.3(a), each Bearer
Security (including a Bearer Security represented by a temporary global
Security) shall be dated as of the date of original issuance of the first
Security of such series to be issued.
The Trustee (at the expense of the Company) may appoint an authenticating
agent reasonably acceptable to the Company to authenticate Securities. Unless
otherwise provided in the appointment, an authenticating agent may authenticate
Securities whenever the Trustee may do so. Each reference in this Indenture to
authentication by the Trustee includes authentication by such agent.
No Security or coupon 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
duly executed by the Trustee by manual signature of an authorized signatory, and
such certificate upon any Security shall be conclusive evidence, and the only
evidence, that such Security has been duly authenticated and delivered
hereunder. 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 FIRST NATIONAL BANK OF CHICAGO, as
Trustee
By:
-----------------------------------
Authorized Signatory
Notwithstanding the foregoing, if any Security shall have been duly
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 2.12 together with a written statement (which need not
comply with Section 12.4 or 12.5 and need not be accompanied by an Opinion of
Counsel) stating that such Security has never been issued and sold by the
Company, 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.
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SECTION 2.5 REGISTRAR AND PAYING AGENT. The Company shall maintain, with
respect to each series of Securities, an office or agency where such Securities
may be presented for registration of transfer or for exchange ("REGISTRAR") and
an office or agency where such Securities may be presented for purchase or
payment ("PAYING AGENT"). The Registrar shall keep a register of the Securities
and of their transfer and exchange. The Company may have one or more additional
paying agents. The term Paying Agent includes any additional paying agent.
The Company shall enter into an appropriate agency agreement with respect
to each series of Securities with any Registrar or Paying Agent (if not the
Trustee). The agreement shall implement the provisions of this Indenture that
relate to such agent. The Company shall notify the Trustee of the name and
address of any such agent. If the Company fails to maintain a Registrar or
Paying Agent for a particular series of Securities, the Trustee shall act as
such and shall be entitled to appropriate compensation therefor pursuant to
Section 7.7. The Company or any Subsidiary or an Affiliate of either of them
may act as Paying Agent or Registrar.
The Company initially appoints the Trustee as the Registrar and Paying
Agent in connection with such Securities and The First National Bank of Chicago,
London Branch, or as provided in the Officer's Certificate establishing the
Securities, as paying agent and authenticating agent for Bearer Securities.
SECTION 2.6 PAYING AGENT TO HOLD MONEY AND SECURITIES IN TRUST. Except as
otherwise provided herein, prior to or on each due date of payments in respect
of any series of Securities, the Company shall deposit with the Paying Agent
with respect to such Securities a sum of money sufficient to make such payments
when so becoming due. The Company shall require each Paying Agent (other than
the Trustee) to agree in writing that the Paying Agent shall hold in trust for
the benefit of Holders or the Trustee all money held by such Paying Agent for
the making of payments in respect of the Securities of such series and shall
notify the Trustee in writing of any default by the Company in making any such
payment. At any time during the continuance of any such default, a Paying Agent
shall, upon the written request of the Trustee, forthwith pay to the Trustee all
money so held in trust with respect to such Securities. If the Company, a
Subsidiary or an Affiliate of either of them acts as Paying Agent for a series
of Securities, it shall segregate the money held by it as Paying Agent with
respect to such Securities and hold it as a separate trust fund. The Company at
any time may require a Paying Agent for a series of Securities to pay all money
held by it with respect to such Securities to the Trustee and to account for any
money disbursed by it. Upon doing so, such Paying Agent shall have no further
liability for the money.
SECTION 2.7 SECURITYHOLDER LISTS. The Trustee shall preserve in as
current a form as is reasonably practicable the most recent list available to it
of the names and addresses of Holders of each series of Securities. If the
Trustee is not the Registrar for any series of Securities, the Company shall
cause to be furnished to the Trustee at least semiannually on
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June 1 and December 1 a listing of Holders of such series of Securities dated
within 15 days of the date on which the list is furnished and at such other
times as the Trustee may request in writing a list in such form and as of
such date as the Trustee may reasonably require of the names and addresses of
Securityholders of such series of Securities.
SECTION 2.8 TRANSFER AND EXCHANGE. Upon surrender for registration of
transfer of any Security at the office or agency of the Company designated
pursuant to Section 4.5 for such purpose in a Place of Payment, 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 any
authorized denomination or denominations of a like aggregate Principal Amount
and tenor. The Company shall not charge a service charge for any registration
of transfer or exchange, but the Company may require payment of a sum sufficient
to pay all taxes, assessments or other governmental charges that may be imposed
in connection with the transfer or exchange of the Securities from the
Securityholder requesting such transfer or exchange (other than any exchange of
a temporary Security for a definitive Security not involving any change in
ownership or any exchange pursuant to Section 2.11, 3.6, 9.5 or 10.3 not
involving any transfer).
Notwithstanding any other provisions (other than the provisions set forth
in the sixth and seventh paragraphs) of this Section, a Security in global form
representing all or a portion of the Securities of a series may not be
transferred except as a whole by the Depositary for such series to a nominee of
such Depositary or by a nominee of such Depositary to such Depositary or another
nominee of such Depositary or by such Depositary or any such nominee to a
successor Depositary for such series or a nominee of such successor Depositary.
At the option of the Holder, Registered Securities of any series may be
exchanged for other Registered Securities of the same series of any authorized
denomination or denominations, of a like aggregate Principal Amount and tenor,
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. Bearer Securities may
not be issued in exchange for Registered Securities.
At the option of the Holder, Bearer Securities of any series may be
exchanged for Registered Securities of the same series of any authorized
denomination or denominations and of a like aggregate Principal Amount and
tenor, upon surrender of the Bearer Securities to be exchanged at any office or
agency of the Company located outside the United States, with all unmatured
coupons and all matured coupons in default thereto appertaining. If the Holder
of a Bearer Security is unable to produce any such unmatured coupon or coupons
or matured coupon or coupons in default, such exchange may be effected if the
Bearer Securities are accompanied by payment in funds acceptable to the Company
and the Trustee or Paying Agent in an amount equal to the face amount of such
missing coupon or coupons, or the surrender of such missing coupon or coupons
may be waived by the Company, the Paying
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Agent and the Trustee if there is furnished to them such security or
indemnity as they may require to save each of them and any Paying Agent
harmless. If thereafter the Holder of such Security shall surrender to any
Paying Agent any such missing coupon in respect of which such a payment shall
have been made, such Holder shall be entitled to receive the amount of such
payment; PROVIDED, HOWEVER, that, except as otherwise provided in Section
4.5, interest represented by coupons shall be payable only upon presentation
and surrender of those coupons at an office or agency located outside the
United States. Notwithstanding the foregoing, in case a Bearer Security of
any series is surrendered at any such office or agency in exchange for a
Registered Security of the same series and like tenor after the close of
business at such office or agency on (i) any Regular Record Date and before
the opening of business at such office or agency on the relevant Interest
Payment Date, or (ii) any Special Record Date and before the opening of
business at such office or agency on the related proposed date for payment of
Defaulted Interest, such Bearer Security shall be surrendered without the
coupon relating to such Interest Payment Date or proposed date for payment,
as the case may be, and interest or Defaulted Interest, as the case may be,
will not be payable on such Interest Payment Date or proposed date for
payment, as the case may be, in respect of the Registered Security issued in
exchange for such Bearer Security, but will be payable only to the Holder of
such coupon when due in accordance with the provisions of this Indenture.
Whenever any Securities are so surrendered for exchange, the Company shall
execute, and the Trustee or a duly appointed authenticating agent shall
authenticate and deliver, the Securities which the Holder making the exchange is
entitled to receive.
If at any time the Depositary for the Securities of a series notifies the
Company that it is unwilling or unable to continue as Depositary for the
Securities of such series, the Company shall appoint a successor Depositary with
respect to the Securities of such series. If a successor Depositary for the
Securities of such series is not appointed by the Company within 90 days after
the Company receives such notice, the Company will execute, and the Trustee,
upon receipt of a Company Order for the authentication and delivery of
definitive Securities of such series, will authenticate and deliver Securities
of such series in definitive form in an aggregate Principal Amount equal to the
Principal Amount of the Security or Securities in global form representing such
series in exchange for such Security or Securities in global form in accordance
with the instructions, if any, of the Depositary.
The Company may at any time and in its sole discretion determine that the
Securities of any series issued in the form of one or more global Securities
shall no longer be represented by such global Security or Securities. In such
event the Company will execute, and the Trustee, upon receipt of a Company Order
for the authentication and delivery of definitive Securities of such series,
will authenticate and deliver Securities of such series in definitive form and
in an aggregate Principal Amount equal to the Principal Amount of the Security
or Securities in global form representing such series in exchange for such
Security or Securities in global form in accordance with the instructions, if
any, of the Depositary.
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Notwithstanding the foregoing, except as otherwise specified in the
preceding two paragraphs or as contemplated by Section 2.3(a), any global
Security shall be exchangeable only as provided in this paragraph. If the
beneficial owners of interests in a global Security are entitled to exchange
such interests for definitive Securities of such series and of like Principal
Amount and tenor but of another authorized form and denomination, as specified
as contemplated by Section 2.3(a), then without unnecessary delay but in any
event not later than five business days prior to the earliest date on which such
interests may be so exchanged, the Company shall deliver to the Trustee
definitive Securities in aggregate Principal Amount equal to the Principal
Amount of such global Security, executed by the Company. On or after the
earliest date on which such interests may be so exchanged, such global Security
shall be surrendered by the Depositary with respect thereto to the Trustee, as
the Company's agent for such purpose, to be exchanged, in whole or from time to
time in part, for definitive Securities without charge and the Trustee or, in
the case of Bearer Securities, an authenticating agent outside the United States
shall authenticate and deliver, in exchange for each portion of such global
Security, an equal aggregate Principal Amount of definitive Securities of the
same series of authorized denominations and of like tenor as the portion of such
global Security to be exchanged which, unless the Securities of the series are
not issuable both as Bearer Securities and as Registered Securities, as
specified as contemplated by Section 2.3(a), shall be in the form of Bearer
Securities or Registered Securities, or any combination thereof, as shall be
specified by the beneficial owner thereof; PROVIDED, HOWEVER, that
notwithstanding the last paragraph of this Section 2.8, no such exchanges may
occur during a period beginning at the opening of business 15 days before any
selection of Securities of that series to be redeemed and ending on the relevant
Redemption Date; and PROVIDED, FURTHER, that no Bearer Security or coupon
delivered in exchange for a portion of a global Security shall be mailed or
otherwise delivered to any person that is not a United States Alien or to any
location in the United States. If a Registered Security is issued in exchange
for any portion of a global Security after the close of business at the office
or agency where such exchange occurs on (i) any Regular Record Date and before
the opening of business at such office or agency on the relevant Interest
Payment Date, or (ii) any Special Record Date and before the opening of business
at such office or agency on the related proposed date for payment of Defaulted
Interest, interest or Defaulted Interest, as the case may be, will not be
payable on such Interest Payment Date or proposed date for payment, as the case
may be, in respect of such Registered Security, but will be payable on such
Interest Payment Date or proposed date for payment, as the case may be, only to
the Person to whom interest in respect of such portion of such global Security
is payable in accordance with the provisions of this Indenture.
Upon the exchange of a Security in global form for Securities in
definitive form, such Security in global form shall be cancelled by the
Trustee. All cancelled Securities and coupons held by the Trustee shall be
destroyed by the Trustee and a certificate of their destruction delivered to
the Company unless the Company directs, by Company Order, that the Trustee
deliver cancelled Securities to the Company. Registered Securities issued in
exchange for a Security in global form pursuant to this Section 2.8 shall be
registered in such names and in such authorized denominations as the
Depositary for such Security in global
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form, pursuant to instructions from its direct or indirect participants or
otherwise, shall instruct the Trustee in writing. The Trustee shall deliver
such Registered Securities as instructed in writing by the Depositary.
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 Registered Security presented or surrendered for registration of
transfer or for exchange shall be duly endorsed, or be accompanied by a written
instrument of transfer in form satisfactory to the Company and the Registrar
duly executed by the Holder thereof or his attorney duly authorized in writing.
The Company shall not be required (i) to issue, register the transfer of or
exchange Securities of any series during a period beginning at the opening of
business 15 days before any selection of Securities of that series to be
redeemed and ending (except as otherwise provided in the first proviso in the
eighth paragraph of this Section 2.8) at the close of business on (A) if
Securities of the Series are issuable only as Registered Securities, the day of
the mailing of the relevant notice of redemption and (B) if Securities of the
series are issuable as Bearer Securities, the day of the first publication of
the relevant notice of redemption or, if Securities of the series are also
issuable as Registered Securities and there is no publication, the mailing of
the relevant notice of redemption, or (ii) to register the transfer of or
exchange any Registered Security so selected for redemption, in whole or in
part, except the unredeemed portion of any Security being redeemed in part, or
(iii) to exchange any Bearer Security so selected for redemption except that
such a Bearer Security may be exchanged for a Registered Security of that series
and like tenor, provided that such Registered Security shall be simultaneously
surrendered for redemption.
SECTION 2.9 REPLACEMENT SECURITIES AND COUPONS. If (a) any mutilated
Security or a Security with a mutilated coupon appertaining thereto is
surrendered to the Trustee or paying agent outside the United States, or (b) the
Company and the Trustee receive evidence to their satisfaction of the
destruction, loss or theft of any Security or coupon, and there is delivered to
the Company and the Trustee such security or indemnity as may be required by
them to save each of them harmless, then, in the absence of written notice to
the Company, any such paying agent or the Trustee that such Security or coupon
has been acquired by a BONA FIDE purchaser, the Company shall execute and upon
its written request the Trustee or paying agent outside the United States shall
authenticate and deliver, in exchange for any such mutilated Security or coupon
or in lieu of any such destroyed, lost or stolen Security or coupon, or in
exchange for the Security to which a mutilated, destroyed, lost or stolen coupon
appertains (with all appurtenant coupons not mutilated, destroyed, lost or
stolen), a new Security of the same series and of like tenor and Principal
Amount, bearing a number not contemporaneously outstanding, with coupons
corresponding to the coupons, if any,
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appertaining to such destroyed, lost or stolen Security or coupon, or to the
Security to which such destroyed, lost or stolen coupon appertains.
In case any such mutilated, destroyed, lost or stolen Security or coupon
has become or is about to become due and payable, the Company in its discretion
may, instead of issuing a new Security, pay such Security or coupon; PROVIDED,
HOWEVER, that the Principal of and any interest on Bearer Securities shall,
except as otherwise provided in Section 4.5, be payable only at an office or
agency located outside the United States and, unless otherwise specified as
contemplated by Section 2.3(a), any interest on Bearer Securities shall be
payable only upon presentation and surrender of the coupons appertaining
thereto.
Upon the issuance of any new Securities 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 or paying agent) connected therewith.
Every new Security of any series issued pursuant to this Section in lieu of
any mutilated, destroyed, lost or stolen Security, or in exchange for a Security
to which a mutilated, destroyed, lost or stolen coupon appertains, shall
constitute an original additional contractual obligation of the Company, whether
or not the mutilated, destroyed, lost or stolen Security and its coupons, if
any, or the mutilated, destroyed, lost or stolen coupon shall be at any time
enforceable by anyone, and any such new Security and coupons, if any, shall be
entitled to all benefits of this Indenture equally and proportionately with any
and all other Securities of that issue and their coupons, if any, duly issued
hereunder.
The provisions of this Section are exclusive and shall preclude (to the
extent lawful) all other rights and remedies with respect to the replacement or
payment of mutilated, destroyed, lost or stolen Securities or coupons.
SECTION 2.10 OUTSTANDING SECURITIES; DETERMINATIONS OF HOLDERS' ACTION.
Securities of any series "OUTSTANDING" at any time are, as of the date of
determination, all the Securities of such series theretofore authenticated by
the Trustee for such series except for (i) Securities cancelled by it or those
delivered to it for cancellation; (ii) Securities 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; (iii)
Securities as to which defeasance has been effected pursuant to Section 8.4;
(iv) Securities which have been paid 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
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such Securities are valid obligations of the Company; and (v) those described
in this Section 2.10 as not outstanding. A Security does not cease to be
"OUTSTANDING" because the Company or an Affiliate thereof holds the Security;
PROVIDED, HOWEVER, that in determining whether the Holders of the requisite
Principal Amount of Outstanding Securities have given or concurred in any
request, demand, authorization, direction, notice, consent or waiver
hereunder, Securities owned by the Company or any other obligor upon the
Securities or any Affiliate of the Company or such other obligor shall be
disregarded and deemed not to be outstanding, except that, in determining
whether the Trustee shall be protected in relying upon any such request,
demand, authorization, direction, notice, consent or waiver, only Securities
which the Trustee has received written notice are 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. Subject to the
foregoing, only Securities outstanding at the time of such determination
shall be considered in any such determination (including, without limitation,
determinations pursuant to Articles 6 and 9). In addition, in determining
whether the Holders of the requisite Principal Amount of Outstanding
Securities have given or concurred in any request, demand, authorization,
direction, notice, consent or waiver hereunder, (i) the Principal Amount of a
Discount Security that shall be deemed to be Outstanding shall be the amount
of the Principal thereof that would be due and payable as of the date of such
determination upon acceleration of the Maturity thereof pursuant to Section
6.2, (ii) the Principal Amount of a Security denominated in a foreign
currency or currencies shall be the Dollar equivalent, as determined on the
date of original issuance of such Security, of the Principal Amount (or, in
the case of a Discount Security, the Dollar equivalent on the date of
original issuance of such Security of the amount determined as provided in
(i) above) of such Security.
If a Security has been paid pursuant to Section 2.9 or in exchange for or
in lieu of which another Security has been authenticated and delivered pursuant
to this Indenture, it ceases to be outstanding unless the Trustee receives proof
satisfactory to it that the replaced Security is held by a BONA FIDE purchaser.
If the Trustee (other than the Company) holds, in accordance with this
Indenture, on a Redemption Date or on Stated Maturity, money sufficient to pay
Securities and any coupons thereto appertaining payable on that date, then on
and after that date such Securities shall cease to be outstanding and interest,
if any, on such Securities shall cease to accrue; 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.
SECTION 2.11 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,
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substantially of the tenor of the definitive Securities in lieu of which they
are issued, in registered form or, if authorized, in bearer form with one or
more coupons or without coupons, and with such appropriate insertions,
omissions, substitutions and other variations as the Officers executing such
Securities may determine, as conclusively evidenced by their execution of
such Securities. Such temporary Securities may be in global form.
Except in the case of Securities represented by a temporary global Security
(which shall be exchanged in accordance with the provisions of the three
succeeding paragraphs), if temporary Securities for some or all of the
Securities of any series are issued, the Company will cause definitive
Securities representing such Securities to be prepared without unreasonable
delay. Subject to Section 2.2, after the preparation of such definitive
Securities, the temporary Securities shall be exchangeable for such definitive
Securities of like tenor upon surrender of the temporary Securities at the
office or agency of the Company designated for such purpose pursuant to Section
4.5 in a Place of Payment for such series for the purpose of exchanges of
Securities of such series, without charge to the Holder. Upon surrender for
cancellation of any one or more temporary Securities of any series (accompanied
by any unmatured coupons appertaining thereto), the Company shall execute and
the Trustee shall authenticate and deliver in exchange therefor a like Principal
Amount of definitive Securities of the same series and of like tenor of
authorized denominations; PROVIDED, HOWEVER, that no definitive Bearer Security
or Permanent Global Bearer Security shall be delivered in exchange for a
temporary Registered Security. Until so exchanged the temporary Securities
shall in all respects be entitled to the same benefits under this Indenture as
definitive Securities.
Unless otherwise specified as contemplated by Section 2.3(a), if Bearer
Securities of any series are represented by a Security in temporary global form,
any such temporary global Security shall be delivered to the Depositary for the
benefit of Euro-clear and Cedel S.A., for credit to the respective accounts of
the beneficial owners of such Securities (or to such other accounts as they may
direct).
Without unnecessary delay but in any event not later than the Exchange
Date, the Company shall deliver to the Trustee or paying agent outside the
United States permanent Securities of the same series which may be in definitive
or global form at the sole discretion of the Company, in aggregate Principal
Amount equal to the Principal Amount of such temporary global Security, executed
by the Company. On or after the Exchange Date, such temporary global Security
shall be surrendered by the Depositary to the Trustee or paying agent outside
the United States, as the Company's agent for such purpose, to be exchanged, in
whole or from time to time in part, for permanent Securities of the same series
which may be in definitive or global form at the sole discretion of the Company
and of like tenor without charge and the authenticating agent shall authenticate
and deliver, in exchange for each portion of such temporary global Security, an
equal aggregate Principal Amount of definitive Securities or interests in the
Permanent Global Bearer Security of the same series of authorized denominations
and of like tenor as the portion of such temporary global Security to be
exchanged. The permanent Securities to be delivered in exchange for any such
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temporary global Security shall be in definitive bearer form or registered form,
or shall be represented by a Permanent Global Bearer Security, or any
combination thereof, as specified as contemplated by Section 2.3(a), and, if any
combination thereof is so specified, as requested by the beneficial owner
thereof, PROVIDED that no beneficial owner of a registered Temporary Global
Bearer Security who is not a United States Alien or who is located in the United
States shall be entitled to receive Bearer Securities.
Unless otherwise specified in any such Temporary Global Bearer Security,
the interest of a beneficial owner of Securities of a series represented by such
Temporary Global Bearer Security shall be exchanged for permanent Securities of
the same series which may be in definitive or global form at the sole discretion
of the Company and of like tenor following the Exchange Date when the account
holder instructs Euro-clear or Cedel S.A., as the case may be, to request such
exchange on his behalf and delivers to Euro-clear or Cedel S.A., as the case may
be, any certificate specified as contemplated by Section 2.3(a). Unless
otherwise specified in such Temporary Global Bearer Security, any such exchange
shall be made free of charge to the beneficial owners of such Temporary Global
Bearer Security, except that a person receiving permanent Securities must bear
the cost of insurance, postage, transportation and the like in the event that
such person does not take delivery of such permanent Securities in person at the
offices of Euro-clear or Cedel S.A.
Until exchanged in full as hereinabove provided, the temporary Securities
of any series shall in all respects be entitled to the same benefits under this
Indenture as permanent Securities of the same series and of like tenor
authenticated and delivered hereunder, except that, unless otherwise specified
as contemplated by Section 2.3(a), interest payable on a temporary global
Security representing a series of Bearer Securities on an Interest Payment Date
for Securities of such series occurring prior to the applicable Exchange Date
shall be payable to Euro-clear and Cedel S.A. on such Interest Payment Date,
upon delivery by Euro-clear and Cedel S.A. to a paying agent outside the United
States of any certificate specified as contemplated by Section 2.3(a), for
credit without further interest on or after such Interest Payment Date to the
respective accounts of the persons who are the beneficial owners of such
Temporary Global Bearer Security on such Interest Payment Date and who have each
delivered to Euro-clear or Cedel S.A., as the case may be, any certificate
specified as contemplated by Section 2.3(a).
SECTION 2.12 CANCELLATION. All Securities or coupons 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 all Registered Securities and matured
coupons so delivered shall be promptly cancelled by it. All Bearer Securities
and unmatured coupons so delivered shall be held by the Trustee and shall be
cancelled. 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 (including Securities
received by the Company in exchange or payment for other Securities of the
Company) and may deliver to
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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 cancelled by the Trustee. The Company may not reissue, or issue new
Securities to replace, Securities it has paid or delivered to the Trustee for
cancellation. No Securities shall be authenticated in lieu of or in exchange
for any Securities cancelled as provided in this Section, except as expressly
permitted in the form of Securities for any particular series or as permitted
by this Indenture. All cancelled Securities and coupons held by the Trustee
shall be destroyed by the Trustee in accordance with its customary procedures
and a certificate of their destruction delivered to the Company unless the
Company directs, by Company Order, that the Trustee deliver cancelled
Securities to the Company.
SECTION 2.13 PAYMENT OF INTEREST; INTEREST RIGHTS PRESERVED. Unless
otherwise provided as contemplated by Section 2.3(a) with respect to any
series of Securities, interest on any Registered 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. In case a Bearer Security of any series is
surrendered in exchange for a Registered Security of such series after the
close of business (at an office or agency in a Place of Payment for such
series) on any Regular Record Date and before the opening of business (at
such office or agency) on the next succeeding Interest Payment Date, such
Bearer Security shall be surrendered without the coupon relating to such
Interest Payment Date and interest will not be payable on such Interest
Payment Date in respect of the Registered Security issued in exchange for
such Bearer Security, but will be payable only to the Holder of such coupon
when due in accordance with the provisions of this Indenture.
Any interest on any Registered Security of any series which is payable,
but is not punctually paid or duly provided for, on any Interest Payment Date
(herein called "DEFAULTED INTEREST") shall forthwith cease to be payable to
the 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 Registered Security and the date of the proposed payment, and at
the same time the Company shall deposit with the Trustee an amount of money
equal to the aggregate amount proposed to be paid in respect of such
Defaulted Interest or shall make arrangements satisfactory to the Trustee
for such deposit prior to the date of the proposed payment, such money when
deposited to be held in trust for the benefit of the persons entitled to
such Defaulted Interest as in this
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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
mailed, first-class postage prepaid, to each Holder of Registered
Securities at his address as it appears in the Security Register, not
less than 10 days prior to such Special Record Date. Notice of the
proposed payment of such Defaulted Interest and the Special Record Date
therefor having been so mailed, such Defaulted Interest shall be paid to
the persons in whose names the Securities (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
Registered Securities in any other lawful manner not inconsistent with the
requirements of any securities exchange on which such Registered 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 and Section 2.8,
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 the right to accrue, which were carried by
such other Security.
SECTION 2.14 PERSONS DEEMED OWNERS. Prior to due presentment of a
Registered 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 Registered Security is registered as the owner of such Registered
Security for the purpose of receiving payment of Principal of and (except as
otherwise specified as contemplated by Section 2.3(a) and subject to Sections
2.8 and 2.13) interest on such Registered Security and for all other purposes
whatsoever, whether or not such Registered 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.
Title to any Bearer Security and any coupons appertaining thereto shall
pass by delivery. The Company, the Trustee and any agent of the Company or
the Trustee may treat the bearer of any Bearer Security and the bearer of any
coupon as the absolute owner of such Bearer Security or coupon for the
purpose of receiving payment thereof or on account thereof and for all other
purposes whatsoever, whether or not such Bearer Security or coupon 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.
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None of the Company, the Trustee, any Paying Agent or the Registrar will
have any responsibility or liability for any aspect of the records relating
to or payments made on account of beneficial ownership interests of a
Security in global form or for maintaining, supervising or reviewing any
records relating to such beneficial ownership interests.
SECTION 2.15 COMPUTATION OF INTEREST. Except as otherwise specified as
contemplated by Section 2.3(a) for Securities of any series, (i) interest on
any Securities which bear interest at a fixed rate shall be computed on the
basis of a 360-day year comprised of twelve 30-day months and (ii) interest
on any Securities which bear interest at a variable rate shall be computed on
the basis of the actual number of days in an interest period divided by 360.
ARTICLE III
REDEMPTION
SECTION 3.1 RIGHT TO REDEEM; NOTICES TO TRUSTEE. Securities of any
series which are redeemable before their Stated Maturity shall be redeemable
in accordance with their terms and (except as otherwise specified as
contemplated by Section 2.3(a) for Securities of any series) in accordance
with this Article. In the case of any redemption at the election of the
Company of less than all the Securities of any series, the Company shall,
within the time period specified below, notify the Trustee in writing of the
Redemption Date, the Principal Amount of, and, of any other information
necessary to identify the Securities of, such series to be redeemed and the
Redemption Price (including the information set forth in clauses (4), (5) and
(6) of Section 3.3). In the case of any redemption of Securities prior to
the expiration of any restriction on such redemption provided in the terms of
such Securities or elsewhere in this Indenture, the Company shall furnish the
Trustee with an Officers' Certificate evidencing compliance with such
restriction.
The Company shall give the notice to the Trustee provided for in this
Section 3.1 at least 60 days before the Redemption Date (unless a shorter
notice shall be satisfactory to the Trustee).
SECTION 3.2 SELECTION OF SECURITIES TO BE REDEEMED. Unless otherwise
specified as contemplated by Section 2.3(a) with respect to any series of
Securities, if less than all the Securities of any series with the same issue
date, interest rate and Stated Maturity are to be redeemed, the Trustee shall
select the particular Securities to be redeemed by such method the Trustee
considers fair and appropriate, which method may provide for the selection
for redemption of portions (equal to the minimum authorized denomination for
Securities of that series or any integral multiple thereof) of the Principal
Amount of Registered Securities of such series of a denomination larger than
the minimum authorized denomination for Securities of that series. The
unredeemed portion of the Principal of any Security shall be in an authorized
denomination (which shall not be less than the minimum authorized
denomination)
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for such Security. The Trustee shall make the selection not more than 60
days before the Redemption Date from Outstanding Securities of such series
not previously called for redemption. Provisions of this Indenture that
apply to Securities called for redemption also apply to portions of
Securities called for redemption. The Trustee shall notify the Company
promptly in writing of the Securities to be redeemed and, in the case of any
portions of Securities to be redeemed, the principal amount thereof to be
redeemed.
SECTION 3.3 NOTICE OF REDEMPTION. Unless otherwise specified as
contemplated by Section 2.3(a) with respect to any series of Securities, at
least 30 days but not more than 60 days before a Redemption Date, the Company
shall mail a notice of redemption by first-class mail, postage prepaid, to
each Holder of Securities to be redeemed.
The notice shall identify the Securities (including CUSIP/ISIN numbers)
to be redeemed and shall state:
(1) the Redemption Date;
(2) the Redemption Price;
(3) if fewer than all the Outstanding Securities of any series are to
be redeemed, the identification (and, in the case of partial redemption,
the Principal Amounts) of the particular Securities to be redeemed and, if
less than all the Outstanding Securities of any series 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 will become due
and payable upon each such Security (or portion thereof) to be redeemed
and, if applicable, that interest thereon will cease to accrue on and after
said date;
(5) the place or places where such Securities, together in the case
of Bearer Securities with all coupons appertaining thereto, if any,
maturing after the Redemption Date, are to be surrendered for payment of
the Redemption Price; and
(6) that the redemption is for a sinking fund, if such is the case.
A notice of redemption with respect to Bearer Securities published as
contemplated by Section 12.2 need not identify particular Registered
Securities to be redeemed.
At the Company's written request, the Trustee shall give the notice of
redemption in the Company's name and at the Company's expense; PROVIDED,
HOWEVER, that, in all cases, the text of such Company notice shall be
prepared by the Company.
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SECTION 3.4 EFFECT OF NOTICE OF REDEMPTION. Once notice of redemption
is given, Securities called for redemption become due and payable on the
Redemption Date and at the Redemption Price stated in the notice, and from
and after such date (unless the Company shall default in the payment of the
Redemption Price and accrued interest) such Securities shall cease to bear
interest and the coupons for such interest appertaining to any Bearer
Securities so to be redeemed, except to the extent provided below, shall be
void. Upon surrender of any such Security for redemption in accordance with
said notice, together with all coupons, if any, appertaining thereto maturing
after the Redemption Date, such Security shall be paid by the Company at the
Redemption Price, together with accrued interest to the Redemption Date;
PROVIDED, HOWEVER, that installments of interest on Bearer Securities whose
Stated Maturity is on or prior to the Redemption Date shall be payable only
at an office or agency located outside the United States (except as otherwise
provided in Section 4.5) and, unless otherwise specified as contemplated by
Section 2.3(a), only upon presentation and surrender of coupons for such
interest; and PROVIDED, FURTHER, that, unless otherwise specified as
contemplated by Section 2.3(a), installments of interest on Registered
Securities whose Stated Maturity is on or prior to the Redemption Date shall
be payable to the Holders of such Securities, or one or more Predecessor
Securities, registered as such at the close of business on the relevant
Regular Record Dates according to their terms and the provisions of Sections
2.8 and 2.13.
If any Bearer Security surrendered for redemption shall not be
accompanied by all appurtenant coupons maturing after the Redemption Date,
such Security may be paid after deducting from the Redemption Price an amount
equal to the face amount of all such missing coupons, or the surrender of
such missing coupon or coupons may be waived by the Company and a paying
agent located outside the United States if there be furnished to the Company,
the Trustee and such paying agent such security or indemnity as they may
require to save each of them and any Paying Agent harmless. If thereafter
the Holder of such Security shall surrender to any Paying Agent any such
missing coupon in respect of which a deduction shall have been made from the
Redemption Price, such Holder shall be entitled to receive the amount so
deducted; PROVIDED, HOWEVER, that interest represented by coupons shall be
payable only at an office or agency located outside the United States (except
as otherwise provided in Section 4.5) and, unless otherwise specified as
contemplated by Section 2.3(a), only upon presentation and surrender of those
coupons.
If any Security called for redemption shall not be so paid upon
surrender thereof for redemption, the Principal shall, until paid, bear
interest from the Redemption Date at the rate prescribed therefor in the
Security.
SECTION 3.5 DEPOSIT OF REDEMPTION PRICE. On or prior to 10:00 a.m. New
York City time on the Redemption Date, the Company shall deposit with the
Paying Agent (or if the Company or a Subsidiary or an Affiliate of either of
them is the Paying Agent, shall segregate and hold in trust) money sufficient
to pay the Redemption Price of and (except if the Redemption Date shall be an
Interest Payment Date) accrued interest on, all Securities to be redeemed on
that date other than Securities or portions of Securities called for
redemption
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which prior thereto have been delivered by the Company to the Trustee for
cancellation. If such money is then held by the Company in trust and is not
required for such purpose, it shall be discharged from such trust.
SECTION 3.6 SECURITIES REDEEMED IN PART. Any Registered Security which
is to be redeemed only in part shall be surrendered at a Place of Payment
therefor (with due endorsement by, or a written instrument of transfer in
form satisfactory to the Company and the Trustee duly executed by, the Holder
thereof or his attorney duly authorized in writing), and upon such surrender,
the Company shall execute and the Trustee shall authenticate and deliver to
the Holder of such Security a new Registered Security or Securities of the
same series and of like tenor, in an authorized denomination as requested by
such Holder, equal in aggregate Principal Amount to and in exchange for the
unredeemed portion of the Principal of the Security surrendered.
ARTICLE IV
COVENANTS
SECTION 4.1 PAYMENT OF SECURITIES. The Company shall promptly make all
payments in respect of each series of Securities on the dates and in the
manner provided in the Securities and any coupons appertaining thereto and,
to the extent not otherwise so provided, pursuant to this Indenture. An
installment of Principal of or interest on the Securities shall be considered
paid on the date it is due if the Trustee or a Paying Agent (other than the
Company or an Affiliate of the Company) holds on that date funds (in the
currency or currencies of payment with respect to such Securities) designated
for and sufficient to pay such installment. Unless otherwise specified as
contemplated by Section 2.3(a) with respect to any series of Securities, any
interest due on Bearer Securities on or before Maturity shall be payable only
upon presentation and surrender of the several coupons for such interest
installments as are evidenced thereby as they severally mature. At the
Company's option, payments of Principal or interest may be made by check or
by transfer to an account maintained by the payee (provided, in the case of
Registered Securities, the Trustee has received written payment instructions
at least fifteen days prior to any payment date) subject, in the case of
Bearer Securities, to the provisions of Section 4.5.
SECTION 4.2 SEC REPORTS. The Company shall file with the Trustee,
within 15 days after it files such annual and quarterly reports, information,
documents and other reports with the SEC, copies of its annual report and of
the information, documents and other reports (or copies of such portions of
any of the foregoing as the SEC may by rules and regulations prescribe) which
the Company is required to file with the SEC pursuant to Section 13 or 15(d)
of the Exchange Act. The Company also shall comply with the other provisions
of TIA Section 314(a).
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SECTION 4.3 COMPLIANCE CERTIFICATE. The Company shall deliver to the
Trustee within 120 days after the end of each fiscal year (beginning with the
fiscal year ending on December 26, 1998) an Officers' Certificate stating
whether or not the signers know of any Default that occurred during such
period. If they do, such Officers' Certificate shall describe the Default and
its status.
SECTION 4.4 FURTHER INSTRUMENTS AND ACTS. Upon request of the Trustee
and subject to the Company's consent, which shall not be unreasonably
withheld, the Company will execute and deliver such further instruments and
do such further acts as may be reasonably necessary or proper to carry out
more effectively the purposes of this Indenture.
SECTION 4.5 MAINTENANCE OF OFFICE OR AGENCY. If Securities of a series
are issuable only as Registered Securities, the Company will maintain in each
Place of Payment for such series 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. If Securities of a series are
issuable as Bearer Securities, the Company will maintain (A) in the Borough
of Manhattan, The City of New York, an office or agency where any Registered
Securities of that series may be presented or surrendered for payment, where
any Registered Securities of that series may be surrendered for registration
of transfer, where Securities of that series may be surrendered for exchange,
purchase or redemption and where notices and demands to or upon the Company
in respect of the Securities of that series and this Indenture may be served
and where Bearer Securities of that series and related coupons may be
presented or surrendered for payment in the circumstances described in the
following paragraph (and not otherwise), (B) subject to any laws or
regulations applicable thereto, in a Place of Payment for that series which
is located outside the United States, an office or agency where Securities of
that series and related coupons may be presented and surrendered for payment
(including payment of any additional amounts payable on Securities of that
series pursuant to Section 4.6), and (C) subject to any laws or regulations
applicable thereto, in a Place of Payment for that series located outside the
United States, an office or agency where any Registered Securities of that
series may be surrendered for registration of transfer, where Securities of
that series may be surrendered for exchange and where notices and demands to
or upon the Company in respect of the Securities of that series and this
Indenture may be served. The office of the Trustee at The First National
Bank of Chicago, London Branch, 27 Leadenhall Street, London, England EC3A
1AA, Attention: Corporate Trust Administration, shall be such office or
agency for all of the aforesaid purposes (except that with respect to the
presentation of Registered Securities for payment or for registration of
transfer or exchange such office shall be the office of the Trustee at One
First National Plaza, Suite 0126, Chicago, IL 60670-0126, Attention:
Corporate Trust Services Division) unless the Company shall maintain some
other office or agency for such purposes and shall give prompt written notice
to the Trustee of the location, and any change in the location, of such other
office or agency. If at any time the Company shall fail to maintain any such
required office or agency in respect of any series of Securities
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or shall fail to furnish the Trustee with the address thereof, such
presentations and surrenders of Securities of that series may be made and
notices and demands may be made or served at the address of the Trustee set
forth in Section 12.2, except that Bearer Securities of that series and the
related coupons may be presented and surrendered for payment (including
payment of any additional amounts payable on Bearer Securities of that series
pursuant to Section 4.6) at the place specified for that purpose as
contemplated by Section 2.3(a) or, if no such place is specified, at the
office of the paying agent and authenticating agent in London, and the
Company hereby appoints the same as its agent to receive such respective
presentations, surrenders, notices and demands.
No payment of Principal or interest on Bearer Securities shall be made
at any office or agency of the Company in the United States, by check mailed
to any address in the United States, by transfer to an account located in the
United States or upon presentation or surrender in the United States of a
Bearer Security or coupon for payment, even if the payment would be credited
to an account located outside the United States; PROVIDED, HOWEVER, that, if
the Securities of a series are denominated and payable in Dollars, payment of
Principal of and any interest on any such Bearer Security (including any
additional amounts payable on Securities of such series pursuant to Section
4.6) shall be made at the office of the Company's Paying Agent in the Borough
of Manhattan, The City of New York, if (but only if) payment in Dollars of
the full amount of such Principal, interest or additional amounts, as the
case may be, at all offices or agencies outside the United States maintained
for such purpose by the Company in accordance with this Indenture is illegal
or effectively precluded by exchange controls or other similar restrictions.
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 accordance with the requirements set forth
above 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 4.6 ADDITIONAL AMOUNTS. If specified as contemplated by
Section 2.3(a), the Securities of a series may provide for the payment of
additional amounts, and in such case, the Company will pay to the Holder of
any Security of such series or any coupon appertaining thereto additional
amounts as provided therein. Wherever in this Indenture there is mentioned,
in any context, the payment of the Principal of or any interest on, or in
respect of, any Security of any series or payment of any related coupon, such
mention shall be deemed to include mention of the payment of additional
amounts provided for in this Section to the extent that, in such context,
additional amounts are, were or would be payable in respect thereof pursuant
to the provisions of this Section and express mention of the payment of
additional amounts (if applicable) in any provisions hereof shall not be
construed as
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excluding additional amounts in those provisions hereof where such express
mention is not made.
If the Securities of a series provide for the payment of additional
amounts, at least 10 days prior to the first Interest Payment Date with
respect to that series of Securities (or if the Securities of that series
will not bear interest prior to Maturity, the first day on which payment of
Principal is made), and at least 10 days prior to each date of payment of
Principal and any interest if there has been any change with respect to the
matters set forth in the below-mentioned Officers' Certificate, the Company
will furnish the Trustee and the Company's Paying Agent or Paying Agents, if
other than the Trustee, with an Officers' Certificate instructing the Trustee
and such Paying Agent or Paying Agents whether such payment of Principal of
and any interest on the Securities of that series shall be made to Holders of
Securities of that series or any related coupons who are United States Aliens
without withholding for or on account of any tax, assessment or other
governmental charge described in the Securities of that series. If any such
withholding shall be required, then such Officers' Certificate shall specify
by country the amount, if any, required to be withheld on such payments to
such Holders of Securities or coupons and the Company will pay to the Trustee
or such Paying Agent the additional amounts required by the Securities of
such series and this Section. The Company covenants to indemnify the Trustee
and any Paying Agent for, and to hold them harmless against, any loss,
liability or expense reasonably incurred without negligence or bad faith on
their part arising out of or in connection with actions taken or omitted by
any of them in reliance on any Officers' Certificate furnished pursuant to
this Section.
SECTION 4.7 LIMITATION ON LIENS.
The Company shall not create, assume or suffer to exist any Lien on
any Restricted Property to secure any Debt of the Company, any Subsidiary or
any other person, or permit any Subsidiary so to do, without securing the
Securities having the benefit of this covenant by such Lien equally and
ratably with (or prior to) such Debt for so long as such Debt shall be so
secured, subject to the following exceptions: (a) with respect to any series
of Securities, Liens existing on the date of issuance of such series; (b)
Liens on Restricted Property of corporations at the time they become
Subsidiaries; (c) Liens existing on Restricted Property when acquired by the
Company or any Subsidiary (including through merger or consolidation); (d)
Liens to secure Debt incurred to finance the purchase price, construction,
alteration, repair or improvement of Restricted Property; (e) Liens securing
Debt of a Subsidiary owing to the Company or another Subsidiary; (f) Liens
securing industrial development, pollution control, or similar revenue bonds
or in favor of governmental bodies to secure progress, advance or other
payments pursuant to any contract or provision of law; (g) Liens (i) to
secure the payment of all or any part of the purchase price of any Restricted
Property or the cost of construction, installation, renovation, improvement
or development thereon or thereof or (ii) to secure any Debt incurred prior
to, at the time of, or within 360 days after the later of the acquisition,
the completion of such construction, installation,
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renovation, improvement or development or the commencement of full operation
of such property for the purpose of financing all or any part of the purchase
price or cost thereof; (h) Liens otherwise prohibited by this Section 4.7,
securing Debt which, together with the aggregate outstanding principal amount
of all other Debt of the Company and its Subsidiaries owning Restricted
Property which is secured by Liens that would otherwise be prohibited by this
Section 4.7 and the Value of Sale and Leaseback Transactions effected in
accordance with this clause (h), does not exceed 10% of Consolidated Net
Tangible Assets; and (i) any extension, renewal or refunding of any Liens
referred to in the foregoing clauses; PROVIDED, HOWEVER, that in the case of
this clause (i), the principal amount of debt secured thereby shall not
exceed the principal amount of debt, plus any premium or fee payable in
connection with any such extension, renewal, replacement or refunding, so
secured at the time of such extension, renewal, replacement or refunding.
SECTION 4.8 LIMITATION ON SALE AND LEASEBACK TRANSACTIONS.
The Company shall not, and shall not permit any Subsidiary to,
enter into any Sale and Leaseback Transaction unless (a) the Company or such
Subsidiary would be entitled under Section 4.7 to incur Debt in a principal
amount equal to the Value of such Sale and Leaseback Transaction, secured by
Liens on the facilities to be leased, without equally and ratably securing
the Securities having the benefit of this covenant, or (b) the Company or
such Subsidiary, during the six months following the effective date of such
Sale and Leaseback Transaction, applies an amount equal to the Value of such
Sale and Leaseback Transaction to the acquisition of Restricted Property or
to the retirement of Securities or Funded Debt, whether by redemption,
defeasance, repurchase or otherwise, and after crediting to the amount
applied pursuant to this provision the principal amount of any Securities or
Funded Debt retired or delivered to the Trustee for retirement and
cancellation during the six months immediately following the effective date
of such Sale and Leaseback Transaction.
ARTICLE V
SUCCESSOR CORPORATION
SECTION 5.1 WHEN COMPANY MAY MERGE OR TRANSFER ASSETS. The Company shall
not consolidate with or merge with or into any other person or convey, transfer
or lease its properties and assets substantially as an entirety to any person,
unless:
(a) either (1) the Company shall be the continuing corporation
or (2) the person (if other than the Company) formed by such
consolidation or into which the Company is merged or the person which
acquires by conveyance, transfer or lease the properties and assets of
the Company substantially as an entirety (i) shall be a corporation,
partnership or trust organized and validity existing under the laws of
the United States or any state thereof or the District of Columbia and
(ii) shall expressly assume, by an indenture supplemental
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hereto, executed and delivered to the Trustee, in form satisfactory
to the Trustee, all of the obligations of the Company under the
Securities and this Indenture;
(b) immediately after giving effect to such transaction, no
Default shall have occurred and be continuing; and
(c) the Company shall have delivered to the Trustee an Officers'
Certificate and an Opinion of Counsel, each stating that such
consolidation, merger, conveyance, transfer or lease 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 satisfied.
The successor person formed by such consolidation or into which the
Company is merged or the successor person to which such conveyance, transfer
or lease 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 had been named as the Company herein; and
thereafter, except in the case of a lease of its properties and assets
substantially as an entirety, the Company shall be discharged from all
obligations and covenants under this Indenture, the Securities and coupons.
ARTICLE VI
DEFAULTS AND REMEDIES
SECTION 6.1 EVENTS OF DEFAULT. Unless otherwise specified as
contemplated by Section 2.3(a) with respect to any series of securities, an
"EVENT OF DEFAULT" occurs, with respect to each series of the Securities
individually, if:
(1) the Company defaults in (a) the payment of the principal of any
Security of such series at its Maturity, (b) the payment of any interest
upon any Security of such series when the same becomes due and payable and
continuance of such default for a period of 30 days; PROVIDED, HOWEVER,
that Holders of 75% of the then Outstanding Securities of such series shall
not have consented in accordance with Section 9.2 hereof to a postponement
of such interest payment, or (c) the payment of any sinking fund or
purchase fund installment or analagous obligation, if any, in respect of
the Securities of such series when the same becomes due and payable and
continuance of such default for a period of 30 days;
(2) the Company fails to comply with any of its agreements in the
Securities or this Indenture (other than those referred to in clause (1)
above and other than a covenant or warranty a default in whose performance
or whose breach is elsewhere
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in this Section specifically dealt with or which has been expressly
included in this Indenture solely for the benefit of a series of Securities
other than such series) and such failure continues for 90 days after
receipt by the Company of a Notice of Default;
(3) the Company defaults under any bond, debenture, note or other
evidence of indebtedness for money borrowed by the Company or under any
mortgage, indenture, guaranty or instrument under which there may be issued
or by which there may be secured or evidenced any indebtedness for money
borrowed by the Company, whether such indebtedness now exists or shall
hereafter be created, which default shall have resulted in such
indebtedness becoming or being declared due and payable prior to the date
on which it would otherwise have become due and payable, without such
indebtedness having been discharged or such acceleration having been
rescinded or annulled within a period of 30 days after there shall have
been given, by registered or certified mail, to the Company by the Trustee
or to the Company and the Trustee by the Holders of not less than a
majority in principal amount of the Outstanding Securities of such series a
written notice specifying such default and requiring the Company to cause
such indebtedness to be discharged or such acceleration to be rescinded or
annulled and stating that such notice is a "Notice of Default" hereunder,
PROVIDED that no Event of Default under this subsection (3) shall be deemed
to exist as a result of the acceleration of any such indebtedness if the
principal of and interest on such indebtedness, when added to the principal
of and interest on all other such indebtedness which has been accelerated
as aforesaid (excluding any such indebtedness which has been discharged or
as to which the acceleration has been duly rescinded or annulled), shall
not exceed $50,000,000;
(4) there shall have been the entry by a court of competent
jurisdiction of (a) a decree or order for relief in respect of the Company
in an involuntary case or proceeding under any applicable Bankruptcy Law or
(b) a decree or order adjudging the Company bankrupt or insolvent, or
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 wind up or liquidation of
its affairs, and any such decree or order for relief shall continue to be
in effect, or any such other decree or order shall be unstayed and in
effect, for a period of 60 consecutive days;
(5) (a) the Company commences a voluntary case or proceeding under
any applicable Bankruptcy Law or any other case or proceeding to be
adjudicated bankrupt or insolvent, (b) the Company consents to the entry of
a decree or order for relief in respect of the Company in an involuntary
case or proceeding under any applicable Bankruptcy Law or to the
commencement of any bankruptcy or insolvency case or proceeding against it,
(c) the Company files a petition or answer or consent
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seeking reorganization or substantially comparable relief under any
applicable federal or state law, (d) the Company (x) consents to the
filing of such petition or the appointment of, or taking possession by,
a custodian, receiver, liquidator, assignee, trustee, sequestrator or
similar official of the Company or of any substantial part of its property,
(y) makes an assignment for the benefit of creditors or (z) admits in
writing its inability to pay its debts generally as they become due or
(e) the Company takes any corporate action in furtherance of any such
actions in this clause (5); or
(6) any other Event of Default provided with respect to Securities of
that series.
"BANKRUPTCY LAW" means title 11, United States Code, or any similar
Federal or state law for the relief of debtors. "CUSTODIAN" means any
receiver, trustee, assignee, liquidator, custodian or similar official under
any Bankruptcy Law.
A Default under clause (2) above is not an Event of Default until
the Trustee notifies the Company, or the Holders of not less than a majority
in aggregate Principal Amount of the Outstanding Securities of such series
notify the Company and the Trustee, of the Default and the Company does not
cure such Default within the time specified in clause (2) above after receipt
of such notice. Any such notice must specify the Default, demand that it be
remedied and state that such notice is a "NOTICE OF DEFAULT."
SECTION 6.2 ACCELERATION; RESCISSION. If an Event of Default with
respect to Securities of any series at the time Outstanding (other than an
Event of Default specified in Section 6.1(3) or (4)) occurs and is
continuing, the Trustee by notice to the Company, or the Holders of not less
than a majority in aggregate Principal Amount of the Outstanding Securities
of that series by notice to the Company and the Trustee, may declare the
Principal Amount (or, if any of the Securities of that series are Discount
Securities, such portion of the Principal Amount of such Securities as may be
specified in the terms thereof) of all the Securities of that series to be
immediately due and payable. Upon such a declaration, such Principal (or
portion thereof) shall be due and payable immediately. If an Event of
Default specified in Section 6.1(3) or (4) occurs and is continuing, the
Principal (or portion thereof) of all the Securities of that series shall
become and be immediately due and payable without any declaration or other
act on the part of the Trustee or any Securityholders. The Holders of a
majority in aggregate Principal Amount of the Outstanding Securities of any
series, by notice to the Trustee (and without notice to any other
Securityholder) may rescind an acceleration with respect to that series and
its consequences if the rescission would not conflict with any judgment or
decree and all existing Events of Default with respect to Securities of such
series have been cured or waived except nonpayment of the Principal (or
portion thereof) of Securities of such series that has become due solely as a
result of such acceleration and if all amounts due to the Trustee under
Section 7.7 have been paid. No such rescission shall affect any subsequent
Default or impair any right consequent thereto.
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SECTION 6.3 OTHER REMEDIES. If an Event of Default with respect to a
series of Outstanding Securities occurs and is continuing, the Trustee may
pursue any available remedy to (a) collect the payment of the whole amount
then due and payable on such Securities for Principal and interest, with
interest upon the overdue Principal and, to the extent that payment of such
interest shall be legally enforceable, upon overdue installments of interest
from the date such interest was due, 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 amounts
due the Trustee under Section 7.7 or (b) enforce the performance of any
provision of the Securities or this Indenture.
The Trustee may maintain a proceeding even if the Trustee does not
possess any of the Securities or coupons or does not produce any of the
Securities or coupons in the proceeding. A delay or omission by the Trustee
or any Securityholder in exercising any right or remedy accruing upon an
Event of Default shall not impair the right or remedy or constitute a waiver
of, or acquiescence in, the Event of Default. No remedy is exclusive of any
other remedy. All available remedies are cumulative.
SECTION 6.4 WAIVER OF PAST DEFAULTS. The Holders of a majority in
aggregate Principal Amount of the Outstanding Securities of any series, by
notice to the Trustee (and without notice to any other Securityholder), may
on behalf of the Holders of all the Securities of such series and any related
coupons waive an existing Default with respect to such series and its
consequences except (1) an Event of Default described in Section 6.1(1) with
respect to such series or (2) a Default in respect of a provision that under
Section 9.2 cannot be amended without the consent of the Holder of each
Outstanding Security of such series affected. When a Default is waived, it
is deemed cured, but no such waiver shall extend to any subsequent or other
Default or impair any consequent right.
SECTION 6.5 CONTROL BY MAJORITY. The Holders of a majority in
aggregate Principal Amount of the Outstanding Securities of any series may
direct the time, method and place of conducting any proceeding for any remedy
available to the Trustee or of exercising any trust or power conferred on the
Trustee with respect to the Securities of such series. However, the Trustee
may refuse to follow any direction that conflicts with law or this Indenture
or that the Trustee determines in good faith is unduly prejudicial to the
rights of other Securityholders or would involve the Trustee in personal
liability.
SECTION 6.6 LIMITATION ON SUITS. A Holder of any Security of any
series or any related coupons may not pursue any remedy with respect to this
Indenture or the Securities unless:
(1) the Holder gives to the Trustee written notice stating that an
Event of Default with respect to the Securities of that series is
continuing;
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(2) the Holders of not less than a majority in aggregate Principal
Amount of the Outstanding Securities of that series make a written request
to the Trustee to pursue the remedy;
(3) such Holder or Holders offer to the Trustee reasonable security
or indemnity against any loss, liability or expense satisfactory to the
Trustee;
(4) the Trustee does not comply with the request within 60 days after
receipt of the notice, the request and the offer of security or indemnity;
and
(5) the Holders of a majority in aggregate Principal Amount of the
Outstanding Securities of that series do not give the Trustee a direction
inconsistent with such request during such 60-day period.
A Securityholder may not use this Indenture to prejudice the rights
of any other Securityholder or to obtain a preference or priority over any
other Securityholder.
SECTION 6.7 RIGHTS OF HOLDERS TO RECEIVE PAYMENT. Notwithstanding any
other provision of this Indenture, the right, which is absolute and
unconditional, of any Holder of any Security or coupon to receive payment of
the Principal of and (subject to Section 2.13) interest on such Security or
payment of such coupon on the Stated Maturity or Maturities expressed in such
Security or coupon (or, in the case of redemption, on the Redemption Date)
held by such Holder, on or after the respective due dates expressed in the
Securities or any Redemption Date, or to bring suit for the enforcement of
any such payment on or after such respective dates, shall not be impaired or
affected adversely without the consent of each such Holder.
SECTION 6.8 COLLECTION SUIT BY TRUSTEE. If an Event of Default
described in Section 6.1(1) with respect to Securities of any series occurs
and is continuing, the Trustee may recover judgment in its own name and as
trustee of an express trust against the Company for the whole amount owing
with respect to such series of Securities and the amounts provided for in
Section 7.7.
SECTION 6.9 TRUSTEE MAY FILE PROOFS OF CLAIM. In case of the pendency
of any receivership, insolvency, liquidation, bankruptcy, reorganization,
arrangement, adjustment, composition or other judicial proceeding relative to
the Company or any other obligor upon the Securities or the property of the
Company or of such other obligor or their creditors, the Trustee
(irrespective of whether the Principal of the Securities shall then be due
and payable as therein expressed or by declaration or otherwise and
irrespective of whether the Trustee shall have made any demand on the Company
for the payment of overdue Principal or interest) shall be entitled and
empowered, by intervention in such proceeding or otherwise,
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(a) to file and prove a claim for the whole amount of Principal
and interest owing and unpaid in respect of the Securities and to file
such other papers or documents as may be necessary or advisable in
order to have the claims of the Trustee (including any claim for the
reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel and any other amount due the Trustee
under Section 7.7) and of the Holders of Securities and coupons
allowed in such judicial proceeding, and
(b) 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
similar official in any such judicial proceeding is hereby authorized by each
Holder of Securities and coupons 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 of Securities and coupons, to pay 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 7.7.
Nothing herein contained shall be deemed to authorize the Trustee or the
holders of Senior Indebtedness to authorize or consent to or accept or adopt
on behalf of any Holder of a Security or coupon any plan of reorganization,
arrangement, adjustment or composition affecting the Securities or coupons or
the rights of any Holder thereof, or to authorize the Trustee to vote in
respect of the claim of any Holder of a Security or coupon in any such
proceeding.
SECTION 6.10 PRIORITIES. If the Trustee collects any money pursuant to
this Article 6, it shall pay out the money in the following order and, in
case of the distribution of such money on account of Principal or interest,
upon presentation of the Securities or coupons, or both, as the case may be,
and the notation thereon of the payment if only partially paid and upon
surrender thereof if fully paid:
FIRST: to the Trustee for amounts due under Section 7.7;
SECOND: to Securityholders for amounts due and unpaid for the Principal
and interest on the Securities and interest evidenced by coupons in respect
of which or for the benefit of which such money has been collected, ratably,
without preference or priority of any kind, according to the amounts due and
payable on such Securities and coupons for Principal and interest,
respectively; and
THIRD: the balance, if any, to the Company.
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The Trustee may fix a record date and payment date for any payment to
Securityholders pursuant to this Section 6.10. At least 15 days before such
record date, the Company shall mail to each Securityholder and the Trustee a
notice that states the record date, the payment date and amount to be paid.
SECTION 6.11 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 or omitted by it as Trustee, a court in its discretion
may require the filing by any party litigant (other than the Trustee) in the
suit of an undertaking to pay the costs of the suit, and the court in its
discretion may assess reasonable costs, including reasonable attorneys' fees,
against any party litigant in the suit, having due regard to the merits and
good faith of the claims or defenses made by the party litigant. This
Section 6.11 does not apply to a suit by the Trustee, a suit by a Holder
pursuant to Section 6.7 or a suit by Holders of more than 10% in aggregate
Principal Amount of the Outstanding Securities of any series, or to any suit
instituted by any Holder of any Security or coupon for the enforcement of the
payment of the Principal of or interest on any Security or the payment of any
coupon on or after the Stated Maturity or Maturities expressed in such
Security or coupon (or, in the case of redemption, on or after the Redemption
Date).
SECTION 6.12 WAIVER OF STAY, EXTENSION OR USURY 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 or any usury or other 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.
ARTICLE VII
TRUSTEE
SECTION 7.1 DUTIES OF TRUSTEE.
(a) If an Event of Default has occurred and is continuing, the Trustee
shall exercise the rights and powers vested in it by this Indenture and use the
same degree of care and skill in its exercise as a prudent man would exercise or
use under the circumstances in the conduct of his own affairs.
(b) Except during the continuance of an Event of Default with respect to
Securities of any series:
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(1) the Trustee need perform only those duties that are specifically
set forth in this Indenture and no others; and
(2) in the absence of bad faith on its part, the Trustee may
conclusively rely, as to the truth of the statements and the correctness of
the opinions expressed therein, upon certificates or opinions furnished to
the Trustee and conforming to the requirements of this Indenture. However,
with respect to any certificates or opinions specifically required to be
furnished to the Trustee, the Trustee shall examine the certificates and
opinions to determine whether or not they conform to the requirements of
this Indenture.
(c) The Trustee may not be relieved from liability for its own negligent
action, its own negligent failure to act or its own willful misconduct, except
that:
(1) this paragraph (c) does not limit the effect of paragraph (b) of
this Section 7.1;
(2) the Trustee shall not be liable for any error of judgment made in
good faith by a Trust Officer unless it is proved that the Trustee was
negligent in ascertaining the pertinent facts; and
(3) the Trustee shall not be liable with respect to any action it
takes or omits to take in good faith in accordance with a direction
received by it pursuant to Section 6.5 or exercising any trust or power
conferred upon the Trustee under this Indenture.
(d) Every provision of this Indenture that in any way relates to the
Trustee is subject to paragraphs (a), (b), (c) and (e) of this Section 7.1.
(e) 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.
(f) 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 not be
liable for any interest on any money received by it except as the Trustee may
otherwise agree with the Company.
SECTION 7.2 RIGHTS OF TRUSTEE. (a) The Trustee may rely on any document
believed by it to be genuine and to have been signed or presented by the proper
person. The Trustee need not investigate any fact or matter stated in the
document.
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(b) 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 or an Opinion of Counsel. The
Trustee shall not be liable for any action it takes or omits to take in good
faith in reliance on such Officers' Certificate or Opinion of Counsel.
(c) The Trustee may act through agents and shall not be responsible for
the misconduct or negligence of any agent appointed with due care.
(d) Subject to the provisions of Section 7.1 (c), the Trustee shall not
be liable for any action it takes or omits to take in good faith which it
believes to be authorized or within its rights or powers.
(e) Subject to the provisions of Section 7.1, the Trustee may rely and
shall be protected in acting or refraining from acting upon any resolution,
Officers' Certificate, Opinion of Counsel (or both), Company Order or any
other certificate, statement, instrument, opinion report, notice, request,
consent, order, bond, debenture, note, coupon, security or other paper
reasonably believed to be genuine and to have been signed or presented by the
proper party or parties;
(f) any request, direction, order or demand of the Company mentioned
herein shall be sufficiently evidenced by an Officers' Certificate (unless
other evidence in respect thereof be herein specifically prescribed); and any
resolution of the Board of Directors may be evidenced to the Trustee by a
copy thereof certified by the secretary or an assistant secretary of the
Company;
(g) The Trustee may consult with counsel and any written advice or
Opinion of Counsel shall, subject to the provisions of Section 7.1, be full
and complete authorization and protection in respect of any action taken,
suffered or omitted to be taken by it hereunder in good faith and in reliance
thereon in accordance with such advice or Opinion of Counsel;
(h) The Trustee shall be under no obligation to exercise any of the
trusts or powers vested in it by this Indenture at the request, order or
direction of any of the Securityholders pursuant to the provisions of this
Indenture, unless such Securityholders shall have offered to the Trustee
reasonable security or indemnity against the costs, expenses and liabilities
which might be incurred therein or thereby;
(i) Prior to the occurrence of an Event of Default hereunder and after
the curing or waiving of all Events of Default, the Trustee shall not be
bound to make any investigation into the facts or matters stated in any
resolution, certificate, statement, instrument, opinion, report, notice,
request, consent, order, approval, appraisal, bond, debenture, note, coupon,
security
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or other paper or document but the Trustee in its discretion may make such
further inquiry or investigation into such matters as it reasonably sees fit;
and
(j) 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 not regularly in its employ and the Trustee shall not be
responsible for any misconduct or negligence on the part of any such agent or
attorney appointed with due care by it hereunder.
SECTION 7.3 INDIVIDUAL RIGHTS OF TRUSTEE, ETC. The Trustee in its
individual or any other capacity may become the owner or pledgee of
Securities or coupons and may otherwise deal with the Company or its
Affiliates with the same rights it would have if it were not Trustee. Any
Paying Agent, Registrar or co-registrar or any other agent of the Company may
do the same with like rights. However, the Trustee must comply with Sections
7.10 and 7.11.
SECTION 7.4 TRUSTEE'S DISCLAIMER. The recitals contained herein and in
the Securities, except the Trustee certificates of authentication, shall be
taken as the statements of the Company, and the Trustee assumes no
responsibility for the correctness of the same. The Trustee makes no
representation as to the validity or adequacy of this Indenture or the
Securities or coupons. The Trustee shall not be accountable for the
Company's use of the proceeds from the Securities and, shall not be
responsible for any statement in the registration statement for the
Securities under the Securities Act of 1933, as amended, or in the Indenture
or the Securities or any coupons (other than its certificate of
authentication) or for the determination as to which beneficial owners are
entitled to receive any notices hereunder.
SECTION 7.5 NOTICE OF DEFAULTS. If a Default with respect to the
Securities of any series occurs and is continuing and if it is known to the
Trustee, the Trustee shall give to each Holder of Securities of such series
notice of such Default in the manner set forth in TIA Section 315(b) within
90 days after it occurs. Except in the case of a Default described in
Section 6.1(1) with respect to any Security of such series, the Trustee may
withhold the notice if and so long as a committee of its Trust Officers in
good faith determines that withholding the notice is in the interests of the
Holders of Securities of such series.
SECTION 7.6 REPORTS BY TRUSTEE TO HOLDERS. Within 60 days after each
May 15 beginning with the May 15 following the date of this Indenture, the
Trustee shall mail to each Holder of Securities a brief report dated as of
such May 15 that complies with TIA Section 313(a). The Trustee also shall
comply with TIA Section 313(b) and (c).
A copy of each report at the time of its mailing to Holders of
Securities shall be filed with the SEC and each stock exchange on which the
Securities of that series may be listed. The Company agrees to notify the
Trustee whenever the Securities of a particular series become listed on any
stock exchange and of any delisting thereof.
SECTION 7.7 COMPENSATION AND INDEMNITY. The Company agrees:
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(a) to pay to the Trustee from time to time reasonable
compensation for all services rendered by it hereunder as agreed to
between the Company and the Trustee in writing, (which compensation
shall not be limited by any provision of law in regard to the
compensation of a trustee of an express trust);
(b) 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, advances and disbursements
of its agents and counsel), PROVIDED that the Company will not be
required to pay such fees and expenses of separate counsel if it
assumes the Trustee's defense and, in the reasonable judgment of both
the Company and the Trustee, there is no conflict of interest between
the Company and the Trustee in connection with such defense. The
Company need not pay for any settlement made without its written
consent. The Company need not reimburse any expense or indemnify
against any loss or liability to the extent incurred by the Trustee
through its negligence, bad faith or willful misconduct.
(c) 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 this trust, the Indenture and the
Securities or the issuance of the Securities or of any series thereof
and the performance of its duties hereunder including the costs and
expenses of defending itself against any investigation or claim or
liability in connection with the exercise or performance of any of its
powers or duties hereunder.
To secure the Company's payment obligations in this Section 7.7, the
Trustee shall have a lien prior to the Securities and any coupons on all
money or property held or collected by the Trustee, except that held in trust
to pay the Principal of or interest, if any, on particular Securities or for
the payment of particular coupons.
The Company's payment obligations pursuant to this Section 7.7 shall
survive the discharge or other termination of this Indenture or the
resignation or removal of the Trustee. When the Trustee incurs expenses
after the occurrence of a Default specified in Section 6.1(3) or (4), the
expenses are intended to constitute expenses of administration under any
Bankruptcy Law.
SECTION 7.8 REPLACEMENT OF TRUSTEE. The Trustee may resign by so
notifying the Company; PROVIDED, HOWEVER, no such resignation shall be
effective until a successor Trustee has accepted its appointment pursuant to
this Section 7.8. The Holders of a majority in aggregate Principal Amount of
the Outstanding Securities of any series at the time outstanding
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may remove the Trustee with respect to the Securities of such series by so
notifying the Trustee and may appoint a successor Trustee. The Company may
remove the Trustee if:
(1) the Trustee fails to comply with Section 7.10 or materially
breaches any of its other obligations hereunder;
(2) the Trustee is adjudged bankrupt or insolvent;
(3) a receiver or public officer takes charge of the Trustee or its
property; or
(4) the Trustee otherwise becomes incapable of acting.
If the Trustee resigns or is removed or if a vacancy exists in the
office of Trustee for any reason, with respect to the Securities of one or
more series, the Company shall promptly appoint, by resolution of its Board
of Directors, a successor Trustee 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 series).
In the case of the appointment hereunder of a successor Trustee with
respect to all Securities, every such successor Trustee shall deliver a
written acceptance of its appointment to the retiring Trustee and to the
Company. Thereupon, subject to the rights of the retiring Trustee pursuant to
Section 7.7, the resignation or removal of the retiring Trustee shall become
effective and the successor Trustee shall have all the rights, powers and
duties of the Trustee under this Indenture. The successor Trustee shall mail
a notice of its succession to Holders of Securities of the particular series
with respect to which such successor Trustee has been appointed. The
retiring Trustee shall promptly transfer all property held by it as Trustee
to the successor Trustee, subject to the lien provided for in Section 7.7.
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
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of the trusts hereunder by more than one Trustee, it being understood that
nothing herein or in such supplemental indenture shall constitute such
Trustees as 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, subject, nevertheless, to its lien, if any,
provided for in Section 7.7.
If a successor Trustee with respect to the Securities of any series does
not take office within 30 days after the retiring Trustee resigns or is
removed, the retiring Trustee, the Company or the Holders of a majority in
aggregate Principal Amount of the Outstanding Securities of such series at
the time outstanding may petition any court of competent jurisdiction for the
appointment of a successor Trustee with respect to the Securities of such
series.
If the Trustee fails to comply with Section 7.10, any Holder of a
Security of such series may petition any court of competent jurisdiction for
the removal of such Trustee and the appointment of a successor Trustee.
SECTION 7.9 SUCCESSOR TRUSTEE BY MERGER. If the Trustee consolidates
with, merges or converts into, or transfers all or substantially all its
corporate trust business or assets to, another corporation, the resulting,
surviving or transferee corporation without any further act shall be the
successor Trustee.
SECTION 7.10 ELIGIBILITY; DISQUALIFICATION. The Trustee shall at all
times satisfy the requirements of TIA Section 310(a)(1) and 310(a)(5). The
Trustee shall have a combined capital and surplus of at least $50,000,000 as
set forth in its most recent published annual report of condition. The
Trustee shall comply with TIA Section 310(b), including the optional
provision permitted by the second sentence of TIA Section 310(b)(9). In
determining whether the Trustee has conflicting interests as defined in TIA
Section 310(b)(1), the provisions contained in the proviso to TIA Section
310(b)(1) shall be deemed incorporated herein.
SECTION 7.11 PREFERENTIAL COLLECTION OF CLAIMS AGAINST COMPANY. The
Trustee shall comply with TIA Section 311(a), excluding any creditor
relationship listed in TIA Section 311(b). A Trustee who has resigned or
been removed shall be subject to TIA Section 311(a) to the extent indicated
therein.
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ARTICLE VIII
SATISFACTION AND DISCHARGE
SECTION 8.1 DISCHARGE OF LIABILITY ON SECURITIES. Except as otherwise
contemplated by Section 2.3(a), when (a) the Company delivers to the Trustee
all Outstanding Securities or all Outstanding Securities of any series, as
the case may be, theretofore authenticated and delivered and all coupons, if
any, appertaining thereto (other than (i) coupons appertaining to Bearer
Securities surrendered for exchange for Registered Securities and maturing
after such exchange, whose surrender is not required or has been waived as
provided in Section 2.8, (ii) Securities or Securities of such series, as the
case may be, and coupons, if any, which have been destroyed, lost or stolen
and which have been replaced or paid as provided in Section 2.9, (iii)
coupons, if any, appertaining to Securities or Securities of such series, as
the case may be, called for redemption and maturing after the relevant
Redemption Date, whose surrender has been waived as provided in Section 3.4,
and (iv) Securities or Securities of such series, as the case may be, and
coupons, if any, 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 2.4) for
cancellation or (b) all Outstanding Securities have become due and payable
and the Company deposits with the Trustee cash sufficient to pay at Stated
Maturity the Principal Amount of all Principal of and interest on Outstanding
Securities or all Outstanding Securities of such series (other than
Securities replaced pursuant to Section 2.9), and if in either case the
Company pays all other sums payable hereunder by the Company, then this
Indenture shall, subject to Section 7.7, cease to be of further effect as to
all Outstanding Securities or all Outstanding Securities of any series, as
the case may be. The Trustee shall join in the execution of a document
prepared by the Company acknowledging satisfaction and discharge of this
Indenture on demand of the Company accompanied by an Officers' Certificate
and Opinion of Counsel and at the cost and expense of the Company.
SECTION 8.2 REPAYMENT TO THE COMPANY. The Trustee and the Paying Agent
shall return to the Company on Company Request any money held by them for the
payment of any amount with respect to the Securities that remains unclaimed
for two years; PROVIDED, HOWEVER, that the Trustee or such Paying Agent,
before being required to make any such return, may at the expense and
direction of the Company cause to be published once in an Authorized
Newspaper in each Place of Payment of or mail to each such Holder 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 or mailing,
any unclaimed money then remaining will be returned to the Company. After
return to the Company, Holders entitled to the money must look to the Company
for payment as general creditors unless an applicable abandoned property law
designates another person.
SECTION 8.3 OPTION TO EFFECT DEFEASANCE OR COVENANT DEFEASANCE.
Unless otherwise specified as contemplated by Section 2.3(a) with respect to
Securities of a particular
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series, the Company, may at its option, by Board Resolution, at any time,
with respect to any series of Securities, elect to have either Section 8.4 or
Section 8.5 be applied to all of the outstanding Securities of any series
(the "Defeased Securities"), upon compliance with the conditions set forth
below in Section 8.6.
SECTION 8.4 DEFEASANCE AND DISCHARGE. Upon the Company's exercise
under Section 8.3 of the option applicable to this Section 8.4, the Company
shall be deemed to have been discharged from its obligations with respect to
the Defeased Securities on the date the conditions set forth below are
satisfied (hereinafter "defeasance"). For this purpose, such defeasance
means that the Company shall be deemed to have paid and discharged the entire
indebtedness represented by the defeased Securities, which shall thereafter
be deemed to be "outstanding" only for the purposes of Sections 2.4, 2.5,
2.6, 2.8, 2.9, 2.11, 2.12, 4.1, 4.5, 6.6, 6.7, 7.7, 7.8 and 8.2 of this
Indenture and the Company shall be deemed to have satisfied all its other
obligations under such series of Securities and this Indenture insofar as
such series of Securities are concerned (and the Trustee, at the expense of
the Company, and, upon written request, 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
8.6 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 rights, powers, trusts, duties and immunities of the Trustee
hereunder and (3) this Article VIII. Subject to compliance with this Article
VIII, the Company may exercise its option under this Section 8.4
notwithstanding the prior exercise of its option under Section 8.5 with
respect to a series of Securities.
SECTION 8.5 COVENANT DEFEASANCE. Upon the Company's exercise under
Section 8.3 of the option applicable this Section 8.5, the Company shall be
released from its obligations under Sections 4.2, 4.3, 4.7 and 4.8 and
Article V and such other provisions as may be provided as contemplated by
Section 2.3(a) with respect to Securities of a particular series and with
respect to the Defeased Securities on and after the date the conditions set
forth below are satisfied (hereinafter "covenant defeasance"), and the
Defeased Securities shall thereafter be deemed to be not "outstanding" for
the purposes of any direction, waiver, consent or declaration or act of
Holders (and the consequences if any thereof) in connection with such
covenants, but shall continue to be deemed "outstanding" for all other
purposes hereunder. For this purpose, such covenant defeasance means that,
with respect to the Defeased 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 Section or Article, whether directly or indirectly, by
reason of any reference elsewhere herein to any such Section or Article or by
reason of any reference in Sections 4.2, 4.3, 4.7 and 4.8 or Article V to any
other provisions herein or in any other document and such omission to comply
shall not constitute a Default or an Event of Default under Section 6.1(2)
but, except as specified above, the remainder of this Indenture and such
Defeased Securities shall be unaffected thereby.
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SECTION 8.6 CONDITIONS TO DEFEASANCE OR COVENANT DEFEASANCE. The
following shall be the conditions to application of either Section 8.4 or 8.5
to a series of outstanding Securities.
(a) The Company shall have irrevocably deposited with the Trustee, in
trust, specifically pledged as security for, and dedicated solely to the
benefits of Holders of such Securities, (i) sufficient funds in the currency
or currency unit in which the Securities of such series are denominated to
pay the Principal of and interest to Stated Maturity (or redemption) on, the
Securities of such series, or (ii) such amount of direct obligations of, or
obligations the principal of and interest on which are fully guaranteed by,
the government which issued the currency in which the Securities of such
series are denominated, and which are not subject to prepayment, redemption
or call, as will, together with the predetermined and certain income to
accrue thereon without consideration of any reinvestment thereof, provide,
not later than one day before the due date of any payment, money in an amount
sufficient to pay when due the Principal of, and interest to Stated Maturity
(or redemption) on, the Securities of such series, or (iii) any combination
thereof.
(b) (i) The Company shall have delivered to the Trustee an opinion of
counsel that the Company has met all of the conditions precedent to such
defeasance and that the Holders of the Securities of such series will not
recognize income, gain or loss for United States Federal income tax purposes
as a result of such defeasance, and will be subject to tax on the same
amounts, in the same manner and at the same times as if no defeasance and
discharge or covenant defeasance, as the case may be, had occurred and (ii)
the Company shall have delivered to the Trustee an Officer's Certificate and
an Opinion of Counsel, each stating that all conditions precedent with
respect to such defeasance or covenant defeasance, as the case may be, have
been complied with.
ARTICLE IX
SUPPLEMENTAL INDENTURES
SECTION 9.1 SUPPLEMENTAL INDENTURES WITHOUT CONSENT OF HOLDERS.
Without the consent of any Holders of Securities or coupons, the Company and
the Trustee, at any time and from time to time, may enter into one or more
indentures supplemental hereto, in form satisfactory to the Trustee, for any
of the following purposes:
(1) to evidence the succession of another corporation to the Company
and the assumption by any such successor of the covenants of the Company
herein and in the Securities; or
(2) to add to the covenants, agreements and obligations of the
Company for the benefit of the Holders of all of the Securities or any
series thereof, or to surrender any right or power herein conferred upon
the Company; or
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(3) to add to or change any of the provisions of this Indenture to
provide that Bearer Securities may be registrable as to Principal, to
change or eliminate any restrictions (including restrictions relating to
payment in the United States) on the payment of Principal of or any premium
or interest on Bearer Securities, to permit Bearer Securities to be issued
in exchange for Registered Securities, to permit Bearer Securities to be
issued in exchange for Bearer Securities of other authorized denominations
or to permit the issuance of Securities in uncertificated form; or
(4) to establish the form or terms of Securities of any series and
any related coupons as permitted by Sections 2.1 and 2.3(a), respectively;
or
(5) 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 7.8; or
(6) to cure any ambiguity, defect or inconsistency; PROVIDED that
such action pursuant to this Clause (6) shall not adversely affect the
interests of the Holders of Securities of any series;
(7) to add to, change or eliminate any of the provisions of this
Indenture (which addition, change or elimination may apply to one or more
series of Securities), PROVIDED that any such addition, change or
elimination shall neither (A) 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 (B) modify the rights of the Holder of any
such Security with respect to such provision; or
(8) to secure the Securities; or
(9) to make any other change that does not adversely affect the
rights of any Securityholder.
SECTION 9.2 SUPPLEMENTAL INDENTURES WITH CONSENT OF HOLDERS. With the
written consent of the Holders of at least a majority in aggregate Principal
Amount of the Outstanding Securities of each series affected by such
supplemental indenture, the Company and the Trustee may amend this Indenture
or the Securities of any series or may enter into an indenture or indentures
supplemental hereto for the purpose of adding any provisions to or changing
in any manner or eliminating any of the provisions of this Indenture or of
modifying in any manner the rights of the Holders of the Securities of such
series and any related coupons under this Indenture; PROVIDED, that no such
amendment or supplemental indenture shall, without the consent of the Holders
of at least 75% of the Outstanding Securities affected thereby, extend the
time for payment of any installment of interest payable with respect to
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such Securities; PROVIDED, FURTHER, that no such amendment or supplemental
indenture shall, without the consent of the Holder of each Outstanding
Security affected thereby:
(1) change the Stated Maturity of the Principal of, or any
installment of Principal on, any such Security, or reduce the Principal
Amount thereof or the rate of interest thereon or any premium payable upon
redemption thereof or reduce the amount of Principal of any such Discount
Security that would be due and payable upon a declaration of acceleration
of maturity thereof pursuant to Section 6.2, or change the Place of
Payment, or change the coin or currency in which, any Principal of, or any
installment of interest on, any such Security 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);
(2) reduce the percentage in Principal Amount of the Outstanding
Securities of any series, the consent of whose Holders is required for any
such amendment or 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) with
respect to the Securities of such series provided for in this Indenture; or
(3) modify any of the provisions of this Section, Section 6.4 or 6.7,
except to increase the percentage of Outstanding Securities of such series
required for such actions 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.
A supplemental indenture which changes or eliminates any covenant or
other provision of this Indenture which has expressly been included solely
for the benefit of one or more particular series of Securities, or which
modifies the rights of the Holders of Securities of such series with respect
to such covenant or other provision, shall be deemed not to affect the rights
under this Indenture of the Holders of Securities of any other series.
It shall not be necessary for the consent of the Holders under this
Section 9.2 to approve the particular form of any proposed amendment or
supplemental indenture, but it shall be sufficient if such consent approves
the substance thereof.
After an amendment or supplemental indenture under this Section 9.2
becomes effective, the Company shall mail to each Holder of the particular
Securities affected thereby a notice briefly describing the amendment.
SECTION 9.3 COMPLIANCE WITH TRUST INDENTURE ACT. Every supplemental
indenture executed pursuant to this Article shall comply with the TIA as then
in effect.
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SECTION 9.4 REVOCATION AND EFFECT OF CONSENTS, WAIVERS AND ACTIONS. Until
an amendment or waiver with respect to a series of Securities becomes effective,
a consent to it or any other action by a Holder of a Security of that series
hereunder is a continuing consent by the Holder and every subsequent Holder of
that Security or portion of that Security that evidences the same obligation as
the consenting Holder's Security, even if notation of the consent, waiver or
action is not made on the Security. However, any such Holder or subsequent
Holder may revoke the consent, waiver or action as to such Holder's Security or
portion of the Security if the Trustee receives the notice of revocation before
the Company or an agent of the Company certifies to the Trustee that the consent
of the requisite aggregate Principal Amount of the Securities of that series has
been obtained. After an amendment, waiver or action becomes effective, it shall
bind every Holder of Securities of that series.
The Company may, but shall not be obligated to, fix a record date for the
purpose of determining the Holders entitled to consent to any amendment or
waiver with respect to a series of Securities. If a record date is fixed, then
notwithstanding the first two sentences of the immediately preceding paragraph,
those persons who were Holders of Securities of that series at such record date
(or their duly designated proxies), and only those persons, shall be entitled to
revoke any consent previously given, whether or not such persons continue to be
Holders after such record date. No such consent shall be valid or effective for
more than 90 days after such record date.
SECTION 9.5 NOTATION ON OR EXCHANGE OF SECURITIES. Securities of any
series authenticated and delivered after the execution of any supplemental
indenture with respect to such series 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 such series so modified as to conform, in the
opinion of the Trustee and the Board of Directors (and satisfactory to the
Trustee), 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 that series.
SECTION 9.6 TRUSTEE TO SIGN SUPPLEMENTAL INDENTURES. The Trustee shall
sign any supplemental indenture authorized pursuant to this Article 9 if the
amendment does not adversely affect the rights, duties, liabilities or
immunities of the Trustee. If it does, the Trustee may, but need not, sign it.
In signing such amendment, the Trustee shall be entitled to receive, and
(subject to the provisions of Section 7.1) shall be fully protected in relying
upon, an Officers' Certificate and an Opinion of Counsel stating that such
amendment is authorized or permitted by this Indenture.
SECTION 9.7 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
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purposes; and every Holder of Securities theretofore or thereafter
authenticated and delivered hereunder shall be bound thereby, except to the
extent otherwise set forth thereon.
ARTICLE X
SINKING FUNDS
SECTION 10.1 APPLICABILITY OF ARTICLE. The provisions of this Article
shall be applicable to any sinking fund for the retirement of Securities of a
series, except as otherwise specified as contemplated by Section 2.3(a) for
Securities of such series.
The minimum amount of any sinking fund payment provided for by the terms of
Securities of any series is herein referred to as a "MANDATORY SINKING FUND
PAYMENT," and any payment in excess of such minimum amount provided for by the
terms of Securities of any series is herein referred to as an "OPTIONAL SINKING
FUND PAYMENT." If provided for by the terms of Securities of any series, the
cash amount of any sinking fund payment may be subject to reduction as provided
in Section 10.2. Each sinking fund payment shall be applied to the redemption
of Securities of any series as provided for by the terms of the Securities of
such series.
SECTION 10.2 SATISFACTION OF SINKING FUND PAYMENTS WITH SECURITIES. The
Company (1) may deliver Outstanding Securities of a series with the same issue
date, interest rate and Stated Maturity (other than any previously called for
redemption), together in the case of any Bearer Securities of such series with
the same issue date, interest rate and Stated Maturity with all unmatured
coupons appertaining thereto, and (2) may apply as a credit Securities of a
series with the same issue date, interest rate and Stated Maturity which have
been redeemed either at the election of the Company pursuant to the terms of
such Securities or through the application of permitted optional sinking fund
payments pursuant to the terms of such Securities, in each case in satisfaction
of all or any part of any mandatory sinking fund payment with respect to the
Securities of such series with the same issue date, interest rate and Stated
Maturity; PROVIDED that such Securities have not been previously so credited.
Such Securities shall be received and credited for such purpose by the Trustee
at the Redemption Price specified in such Securities for redemption through
operation of the sinking fund and the amount of such sinking fund payment shall
be reduced accordingly.
SECTION 10.3 REDEMPTION OF SECURITIES FOR SINKING FUND. Not less than 60
days (or such shorter period as shall be acceptable to the Trustee) prior to
each sinking fund payment date for any series of Securities, the Company will
deliver to the Trustee an Officers' Certificate specifying the amount of the
next ensuing sinking fund payment for that series pursuant to the terms of that
series, 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 of that series pursuant to Section 10.2 and will also
deliver to the Trustee any Securities to be so delivered. Not less than 30 days
before each such sinking fund
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payment date the Trustee shall select the Securities to be redeemed upon such
sinking fund payment date in the manner specified in Section 3.2 and cause
notice of the redemption thereof to be given in the name of and at the
expense of the Company in the manner provided in Section 3.3. Such notice
having been duly given, the redemption of such Securities shall be made upon
the terms and in the manner stated in Sections 3.4 and 3.6.
ARTICLE XI
ACTIONS OF HOLDERS OF SECURITIES
SECTION 11.1 PURPOSES FOR WHICH MEETINGS MAY BE CALLED. A meeting of
Holders of Securities of any series may be called at any time and from time to
time pursuant to this Article to make, give or take any request, demand,
authorization, direction, notice, consent, waiver or other action provided by
this Indenture to be made, given or taken by Holders of Securities of such
series.
SECTION 11.2 CALL, NOTICE AND PLACE OF MEETINGS. (a) The Trustee may at
any time call a meeting of Holders of Securities of any series for any purpose
specified in Section 11.1, to be held at such time and at such place in the
Borough of Manhattan, The City of New York or, for a series of Securities issued
as Bearer Securities, in London as the Trustee shall determine or, with the
approval of the Company, at any other place. Notice of every meeting of Holders
of Securities of any series, setting forth the time and the place of such
meeting and in general terms the action proposed to be taken at such meeting,
shall be given, in the manner provided in Section 12.2, not less than 21 nor
more than 180 days prior to the date fixed for the meeting.
(b) In case at any time the Company or the Holders of at least 10% in
Principal Amount of the Outstanding Securities of any series shall have
requested the Trustee to call a meeting of the Holders of Securities of such
series for any purpose specified in Section 11.1, by written request setting
forth in reasonable detail the action proposed to be taken at the meeting, and
the Trustee shall not have made the first publication of the notice of such
meeting within 21 days after receipt of such request or shall not thereafter
proceed to cause the meeting to be held as provided herein, then the Company or
the Holders of Securities of such series in the amount above specified, as the
case may be, may determine the time and the place in the Borough of Manhattan,
The City of New York, or for a series of Securities issued as Bearer Securities,
in London, or in such other place as shall be determined and approved by the
Company, for such meeting and may call such meeting for such purposes by giving
notice thereof as provided in subsection (a) of this Section 11.2.
SECTION 11.3 PERSONS ENTITLED TO VOTE AT MEETINGS. To be entitled to vote
at any meeting of Holders of Securities of any series, a person shall be (1) a
Holder of one or more Outstanding Securities of such series, or (2) a person
appointed by an instrument in writing as proxy for a Holder or Holders of one or
more Outstanding Securities of such series by such
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Holder or Holders. The only persons who shall be entitled to be present or
to speak at any meeting of Holders of Securities of any series shall be the
persons entitled to vote at such meeting and their counsel, any
representatives of the Trustee and its counsel and any representatives of the
Company and its counsel.
SECTION 11.4 QUORUM; ACTION. The persons entitled to vote a majority in
Principal Amount of the Outstanding Securities of a series shall constitute a
quorum for a meeting of Holders of Securities of such series. In the absence of
a quorum within 30 minutes of the time appointed for any such meeting, the
meeting shall, if convened at the request of Holders of Securities of such
series, be dissolved. In any other case, the meeting may be adjourned for a
period determined by the chairman of the meeting prior to the adjournment of
such meeting. In the absence of a quorum at any such adjourned meeting, such
adjourned meeting may be further adjourned for a period determined by the
chairman of the meeting prior to the adjournment of such adjourned meeting.
Notice of the reconvening of any adjourned meeting shall be given as provided in
Section 11.2(a), except that such notice need be given only once not less than
five days prior to the date on which the meeting is scheduled to be reconvened.
Notice of the reconvening of an adjourned meeting shall state expressly the
percentage, as provided above, of the principal amount of the Outstanding
Securities of such series which shall constitute a quorum.
Except as limited by the proviso to Section 9.2, any resolution presented
to a meeting or adjourned meeting duly reconvened at which a quorum is present
as aforesaid may be adopted by the affirmative vote of the Holders of a majority
in Principal Amount of the Outstanding Securities of that series; PROVIDED,
HOWEVER, that, except as limited by the proviso to Section 9.2, any resolution
with respect to any request, demand, authorization, direction, notice, consent,
waiver or other action which this Indenture expressly provides may be made,
given or taken by the Holders of a specified percentage, which is less than a
majority, in Principal Amount of the Outstanding Securities of a series may be
adopted at a meeting or an adjourned meeting duly reconvened and at which a
quorum is present as aforesaid by the affirmative vote of the Holders of such
specified percentage in Principal Amount of the Outstanding Securities of that
series.
Any resolution passed or decision taken at any meeting of Holders of
Securities of any series duly held in accordance with this Section shall be
binding on all the Holders of Securities of such series and the related coupons,
whether or not present or represented at the meeting.
SECTION 11.5 DETERMINATION OF VOTING RIGHTS; CONDUCT AND ADJOURNMENT OF
MEETINGS. (a) Notwithstanding any other provisions of this Indenture, the
Trustee may make such reasonable regulations as it may deem advisable for any
meeting of Holders of Securities of a series in regard to proof of the holding
of Securities of such series and of the appointment of proxies and in regard to
the appointment and duties of inspectors of votes, the submission and
examination of proxies, certificates and other evidence of the right to vote,
and such other
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matters concerning the conduct of the meeting as it shall deem appropriate.
Except as otherwise permitted or required by any such regulations, the
holding of Securities shall be proved in the manner specified in Section 11.7
and the appointment of any proxy shall be proved in the manner specified in
Section 11.7 or by having the signature of the person executing the proxy
witnessed or guaranteed by any trust company, bank or banker authorized by
Section 11.7 to certify to the holding of Bearer Securities. Such
regulations may provide that written instruments appointing proxies, regular
on their face, may be presumed valid and genuine without the proof specified
in Section 11.7 or other proof.
(b) The Trustee shall, by an instrument in writing, appoint a temporary
chairman of the meeting, unless the meeting shall have been called by the
Company or by Holders of Securities as provided in Section 11.2 (b), in which
case the Company or the Holders of Securities of the series calling the meeting,
as the case may be, shall in like manner appoint a temporary chairman. A
permanent chairman and a permanent secretary of the meeting shall be elected by
vote of the persons entitled to vote a majority in Principal Amount of the
Outstanding Securities of such series represented at the meeting.
(c) At any meeting each Holder of a Security of such series or proxy shall
be entitled to vote with respect to the Outstanding Securities of such series
held or represented by him; PROVIDED, HOWEVER, that no vote shall be cast or
counted at any meeting in respect to any Security challenged as not Outstanding
and ruled by the chairman of the meeting to be not Outstanding. The chairman of
the meeting shall have no right to vote, except as a Holder of a Security of
such series or proxy.
(d) Any meeting of Holders of Securities of any series duly called
pursuant to Section 11.2 at which a quorum is present may be adjourned from time
to time by persons entitled to vote a majority in Principal Amount of the
Outstanding Securities of such series represented at the meeting; and the
meeting may be held as so adjourned without further notice.
SECTION 11.6 COUNTING VOTES AND RECORDING ACTION OF MEETINGS. The vote
upon any resolution submitted to any meeting of Holders of Securities of any
series shall be by written ballots on which shall be subscribed signatures of
the Holders of Securities of such series or of their representatives by proxy
and the Principal Amounts and serial numbers of the Outstanding Securities of
such series held or represented by them. The permanent chairman of the meeting
shall appoint two inspectors of votes who shall count all votes cast at the
meeting for or against any resolution and who shall make and file with the
secretary of the meeting their verified written reports in duplicate of all
votes cast at the meeting. A record, at least in duplicate, of the proceedings
of each meeting of Holders of Securities of any series shall be prepared by the
secretary of the meeting and there shall be attached to said record the original
reports of the inspectors of votes on any vote by ballot taken thereat and
affidavits by one or more persons having knowledge of the facts setting forth a
copy of the notice of the meeting and showing that said notice was given as
provided in Section 11.2 and,
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if applicable, Section 11.4. Each copy shall be signed and verified by the
affidavits of the permanent chairman and secretary of the meeting and one
such copy shall be delivered to the Company, and another to the Trustee to be
preserved by the Trustee, the latter to have attached thereto the ballots
voted at the meeting. Any record so signed and verified shall be conclusive
evidence of the matters therein stated.
SECTION 11.7 ACTIONS OF HOLDERS GENERALLY. (a) Any request, demand,
authorization, direction, notice, consent, waiver or other action provided by
this Indenture to be given or taken by Holders may be embodied in and evidenced
by one or more instruments of substantially similar tenor signed by such Holders
in person or by an agent duly appointed in writing. If Securities of a series
are issuable as Bearer Securities, any request, demand, authorization,
direction, notice, consent, waiver or other action provided by this Indenture to
be given or taken by Holders of such series may, alternatively, be embodied in
and evidenced by the record of Holders of Securities of such series voting in
favor thereof, either in person or by proxies duly appointed in writing, at any
meeting of Holders of Securities of such series duly called and held in
accordance with the provisions of this Article, or a combination of such
instruments and any such record. Except as herein otherwise expressly provided,
such action shall become effective when such instrument or instruments or record
or both are delivered to the Trustee and, where it is hereby expressly required,
to the Company. Proof of execution of any such instrument or of a writing
appointing any such agent, or of the holding by any person of a Security, shall
be sufficient for any purpose of this Indenture and (subject to Section 7.1)
conclusive in favor of the Trustee and the Company, if made in the manner
provided in this Section. The record of any meeting of Holders of Securities
shall be proved in the manner provided in Section 11.6.
(b) The fact and date of the execution by any person of any such
instrument or writing, or the authority of the persons executing the same, may
be proved in any reasonable manner which the Trustee deems sufficient.
(c) The Principal Amount and serial numbers of Registered Securities held
by the person, and the date of holding the same, shall be proved by the books of
the Registrar.
(d) The Principal Amount and serial numbers of Bearer Securities held by
any person, and the date of holding the same, may be proved by the production of
such Bearer Securities or by a certificate executed by any trust company, bank,
banker or other depositary, wherever situated, as depositary, if such
certificate shall be deemed by the Trustee to be satisfactory, showing that at
the date therein mentioned such person had on deposit with such depositary, or
exhibited to it, the Bearer Securities therein described; or such facts may be
proved by the certificate or affidavit of the person holding such Bearer
Securities, if such certificate or affidavit is deemed by the Trustee to be
satisfactory. The Trustee and the Company may assume that such ownership of any
Bearer Security continues until (1) another certificate or affidavit bearing a
later date issued in respect of the same Bearer Security is produced, or (2)
such Bearer Security is produced to the Trustee by some other person, or
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(3) such Bearer Security is surrendered in exchange for a Registered
Security, or (4) such Bearer Security is no longer Outstanding. The
Principal Amount and serial numbers of Bearer Securities held by any person,
and the date of holding the same, may also be proved in any other manner
which the Trustee deems sufficient.
(e) Any request, demand, authorization, direction, notice, consent, waiver
or other act of the Holder of any Security in accordance with this Section 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.
(f) If the Company shall solicit from the Holders any request, demand,
authorization, direction, notice, consent, waiver or other act in accordance
with this Section, the Company may, at its option, by or pursuant to an
Officers' Certificate delivered to the Trustee, fix in advance a record date for
the determination of Holders entitled to give such request, demand,
authorization, direction, notice, consent, waiver or such other act, but the
Company shall have no obligation to do so. If such a record date is fixed, such
request, demand, authorization, direction, notice, consent, waiver or other act
may be given before or after such record date, but only the Holders of record at
the close of business on such record date shall be deemed to be Holders for the
purposes of determining whether Holders of the requisite percentage of
Outstanding Securities or Outstanding Securities of a series, as the case may
be, have authorized or agreed or consented to such request, demand,
authorization, direction, notice, consent, waiver or other act, and for that
purpose the Outstanding Securities or Outstanding Securities of the series, as
the case may be, shall be computed as of such record date; PROVIDED, that no
such authorization, agreement or consent by the Holders on the record date shall
be deemed effective unless such request, demand, authorization, direction,
notice, consent, waiver or other act shall become effective pursuant to the
provisions of clause (a) of this Section 11.7 not later than six months after
the record date.
ARTICLE XII
MISCELLANEOUS
SECTION 12.1 TRUST INDENTURE ACT CONTROLS. If any provision of this
Indenture limits, qualifies or conflicts with another provision hereof which is
required to be included in this Indenture by the TIA, the required provision
shall control.
SECTION 12.2 NOTICES. Any notice or communication shall be in writing and
delivered in person or mailed by first-class mail, postage prepaid; PROVIDED,
that any notice or communication by and between the Trustee and the Company
shall be made (i) by telecopy or other commercially accepted electronic means
and shall be effective upon receipt thereof and shall be confirmed in writing,
mailed by first-class mail, postage prepaid, or (ii) by
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overnight delivery by a courier service of national repute effective upon
receipt thereof and, in either case, addressed as follows:
if to the Company:
Tricon Global Restaurants, Inc.
1441 Gardiner Lane
Louisville, Kentucky 40213
Facsimile Number: (502) 874-8016
Attention: General Counsel
if to the Trustee:
The First National Bank of Chicago
One First National Plaza
Suite 0126
Chicago, Illinois 60670-0126
Facsimile Number: (312) 407-4656
Attention: Corporate Trust Services Division
The Company or the Trustee by notice to the other may designate additional
or different addresses for subsequent notices or communications.
Any notice or communication given to a Holder of Registered Securities
shall be mailed to such Securityholder at the Securityholder's address as it
appears on the registration books of the Registrar and shall be sufficiently
given if so mailed within the time prescribed. Notice shall be sufficiently
given to Holders of Bearer Securities if published in an Authorized Newspaper in
The City of New York and in such other city or cities as may be specified in
such Securities on a Business Day at least twice, the first such publication to
be not earlier than the earliest date, and not later than the latest date,
prescribed for the giving of such notice.
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.
Failure to mail a notice or communication to a Securityholder or any defect
in it shall not affect its sufficiency with respect to other Holders of
Securities of the same series. If a
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notice or communication is mailed in the manner provided above, it is duly
given, whether or not received by the addressee.
If the Company mails a notice or communication to the Holders of Securities
of a particular series, it shall mail a copy to the Trustee and each Registrar
or Paying Agent, as the case may be, with respect to such series.
In case by reason of the suspension of regular mail service or by reason of
any other cause it shall be impracticable to give notice to Holders of
Registered Securities by mail, then such notification as shall be made with the
acceptance of the Trustee shall constitute a sufficient notification for every
purpose hereunder. In any case where notice to Holders of Registered Securities
is given by mail, neither the failure to mail such notice, nor any defect in any
notice so mailed, to any particular Holder of a Registered Security shall affect
the sufficiency of such notice with respect to other Holders of Registered
Securities or the sufficiency of any notice to Holders of Bearer Securities
given as provided herein.
In case by reason of the suspension of publication of any Authorized
Newspaper or Authorized Newspapers or by reason of any other cause it shall be
impracticable to publish any notice to Holders of Bearer Securities as provided
above, then such notification to Holders of Bearer Securities as shall be given
with the approval of the Trustee shall constitute sufficient notice to such
Holders for every purpose hereunder. Neither the failure to give notice by
publication to Holders of Bearer Securities as provided above, nor any defect in
any notice so published, shall affect the sufficiency of any notice to Holders
of Registered Securities given as provided herein.
Any request, demand, authorization, direction, notice, consent or waiver
required or permitted under this Indenture shall be in the English language,
except that any published notice may be in an official language of the country
of publication
SECTION 12.3 COMMUNICATION BY HOLDERS WITH OTHER HOLDERS. Securityholders
may communicate pursuant to TIA Section 312(b) with other Securityholders with
respect to their rights under this Indenture or the Securities. The Company and
the Trustee, the Registrar or the Paying Agent with respect to a particular
series of Securities, and anyone else, shall have the protection of TIA Section
312(c).
SECTION 12.4 (INTENTIONALLY OMITTED).
SECTION 12.5 STATEMENTS REQUIRED IN CERTIFICATE OR OPINION. Each
Officers' Certificate or Opinion of Counsel with respect to compliance with a
covenant or condition provided for in this Indenture shall include:
(1) a statement that each person making such Officers' Certificate or
Opinion of Counsel has read such covenant or condition;
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(2) a brief statement as to the nature and scope of the examination
or investigation upon which the statements or opinions contained in such
Officers' Certificate or Opinion of Counsel are based;
(3) a statement that, in the opinion of each such person, he has made
such examination or investigation as is necessary to enable such person to
express an informed opinion as to whether or not such covenant or condition
has been complied with; and
(4) a statement that, in the opinion of such person, such covenant or
condition has been complied with.
SECTION 12.6 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 12.7 RULES BY TRUSTEE, PAYING AGENT AND REGISTRAR. With respect
to the Securities of a particular series, the Trustee with respect to such
series of Securities may make reasonable rules for action by or a meeting of
Holders of such series of Securities. With respect to the Securities of a
particular series, the Registrar and the Paying Agent with respect to such
series of Securities may make reasonable rules for their functions.
SECTION 12.8 LEGAL HOLIDAYS. A "LEGAL HOLIDAY" is any day other than a
Business Day. If any specified date (including an Interest Payment Date,
Redemption Date or Stated Maturity of any Security, or a date for giving notice)
is a Legal Holiday at any Place of Payment or place for giving notice, then
(notwithstanding any other provision of this Indenture or of the Securities or
coupons other than a provision in the Securities of any series which
specifically states that such provision shall apply in lieu of this Section)
payment of interest or Principal need not be made at such Place of Payment, or
such other action need not be taken, on such date, but the action shall be taken
on the next succeeding day that is not a Legal Holiday 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 or such other date and to the extent
applicable no Original Issue Discount or interest, if any, shall accrue for the
intervening period.
SECTION 12.9 GOVERNING LAW AND JURISDICTION. THIS INDENTURE AND THE
SECURITIES SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF
THE STATE OF NEW YORK, INCLUDING WITHOUT LIMITATION, NEW YORK GENERAL
OBLIGATIONS LAW Sections 5-1401 AND 5-1402 AND NEW YORK CIVIL PRACTICE LAW
AND RULES 327(b). THE COMPANY, THE TRUSTEE, AND EACH HOLDER OF A SECURITY (BY
ACCEPTANCE THEREOF) THEREBY, (I) SUBMITS TO THE EXCLUSIVE JURISDICTION OF
THE FEDERAL AND NEW YORK STATE COURTS LOCATED IN THE BOROUGH OF MANHATTAN
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IN THE CITY OF NEW YORK IN CONNECTION WITH ANY SUIT, ACTION OR PROCEEDING
RELATED TO THIS INDENTURE, (II) IRREVOCABLY WAIVES ANY DEFENSE OF LACK OF
PERSONAL JURISDICTION IN SUCH SUITS AND (III) IRREVOCABLY WAIVES TO THE
FULLEST EXTENT IT MAY EFFECTIVELY DO SO UNDER APPLICABLE LAW, ANY OBJECTION
WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUIT, ACTION
OR PROCEEDING BROUGHT IN THE FEDERAL AND NEW YORK STATE COURTS LOCATED IN THE
BOROUGH OF MANHATTAN IN THE CITY OF NEW YORK AND (C) THAT SUCH SUIT, ACTION
OR PROCEEDING HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.
SECTION 12.10 NO RECOURSE AGAINST OTHERS. A director, officer, employee
or stockholder, as such, of the Company shall not have any liability for any
obligations of the Company under the Securities or this Indenture or for any
claim based on, in respect of or by reason of such obligations or their
creation. By accepting a Security, each Holder of such Security shall waive and
release all such liability. The waiver and release shall be part of the
consideration for the issue of the Securities.
SECTION 12.11 SUCCESSORS. All agreements of the Company in this Indenture
and the Securities shall bind its successor. All agreements of the Trustee in
this Indenture shall bind its successor.
SECTION 12.12 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 12.13 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 of Securities, any
benefits or any legal or equitable right, remedy or claim under this Indenture.
SECTION 12.14 MULTIPLE ORIGINALS. The parties may sign any number of
copies of this Indenture. Each signed copy shall be an original, but all of
them together represent the same agreement. One signed copy is enough to prove
this Indenture.
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IN WITNESS WHEREOF, the undersigned, being duly authorized, have executed
this Indenture on behalf of the respective parties hereto as of the date first
above written.
TRICON GLOBAL RESTAURANTS, INC.
By: /s/ Robert C. Lowes
--------------------------------
Name: Robert C. Lowes
Title: Chief Financial Officer
Attest:
By:/s/ Matthew M. Preston By: /s/ Sandra S. Wijnberg
------------------------------ -------------------------------
Name: Matthew M. Preston Name: Sandra S. Wijnberg
Title: Senior Director- Title: Senior Vice President
Corporate Law and Treasurer
THE FIRST NATIONAL BANK OF CHICAGO,
as Trustee
By: /s/ John R. Prendiville
--------------------------------
Name: John R. Prendiville
Title: Vice President
Attest:
By: /s/ Steven M. Wagner
---------------------------
Name: Steven M. Wagner
Title: Vice President
<PAGE>
EXHIBIT A
"CERTIFICATE
This is to certify that, based on certificates we have received from our
member organizations substantially in the form set out in the Indenture relating
to the above-captioned Securities, as of the date hereof, U.S.$_______________
principal amount of the above-captioned Securities acquired from Tricon Global
Restaurants, Inc. (i) is owned by persons that are not United States persons (as
defined below), (ii) is owned by United States persons that are (a) foreign
branches of United States financial institutions (as defined in United States
Treasury Regulations Section 1.165-12(c)(1)(v) ("financial institutions"))
purchasing for their own account or for resale or (b) United States persons who
acquired the Securities through foreign branches of United States financial
institutions and who hold the Securities through such financial institutions on
the date hereof (and, in the case of either clause (a) or (b), each financial
institution has agreed for the benefit of Tricon Global Restaurants, Inc. to
comply with the requirements of Section 165(j)(3)(A), (B) or (C) of the United
States Internal Revenue Code of 1986, as amended, and the regulations
thereunder) or (iii) is owned by financial institutions for purposes of resale
during the restricted period (as defined in United States Treasury Regulations
Section 1.163-5(c)(2)(i)(D)(7)). Financial institutions described in clause
(iii) of the preceding sentence (whether or not also described in clause (i) or
(ii)) have certified that they have not acquired the Securities for purposes of
resale directly or indirectly to United States persons or to persons within the
United States or its possessions.
As used in this Certificate, "United States persons" means citizens or
residents of the United States, corporations, partnerships or other entities
created or organized in or under the laws of the United States or any political
subdivision thereof or estates or trusts the income of which is subject to
United States Federal income taxation regardless of the source; "United States"
means the United States of America (including the States and the District of
Columbia), its territories, its possessions and other areas subject to its
jurisdiction; and its "possessions" include Puerto Rico, the U.S. Virgin
Islands, Guam, American Samoa, Wake Island and the Northern Mariana Islands.
We further certify that (i) we are not making available herewith for
exchange any portion of the Temporary Global Bearer Security excepted in such
certificates and (ii) as of the date hereof, we have not received any
notification from any of our member organizations to the effect that the
statements made by such member organizations with respect to any portion of the
part submitted herewith for exchange are no longer true and cannot be relied
upon as of the date hereof.
We understand that this certificate is required in connection with certain
tax laws of the United States. In connection therewith, if administrative or
legal proceedings are commenced or threatened in connection with which this
certificate is or would be relevant, we irrevocably authorize you to produce
this certificate to any interested party in such
A-1
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proceedings. We agree to retain each statement provided by a member
organization for a period of four calendar years following the year in which
the statement is received.
Dated: , 20 *
--------------- --
*To be dated no
earlier than the
Exchange Date.
[MORGAN GUARANTY TRUST COMPANY
OF NEW YORK, BRUSSELS OFFICE,
AS OPERATOR OF THE EUROCLEAR
CLEARANCE SYSTEM]
[CEDEL BANK SOCIETE ANONYME]
"
----------------------------
<PAGE>
TRICON GLOBAL RESTAURANTS, INC.
OFFICERS' CERTIFICATE
Pursuant to Section 2.1 and Section 2.3(a) of the Indenture, dated
as of May 1, 1998 (the "Indenture"), between TRICON Global Restaurants, Inc.,
a North Carolina corporation (the "Company"), and The First National Bank of
Chicago, as trustee (the "Trustee"), the undersigned Robert C. Lowes, Chief
Financial Officer, and Sandra S. Wijnberg, Senior Vice President and
Treasurer of the Company hereby certify on behalf of the Company as follows:
1. AUTHORIZATION. The establishment of two series of Securities
of the Company has been approved and authorized in accordance with the
provisions of the Indenture pursuant to a resolution adopted by the Board of
Directors of the Company on September 22, 1997.
2. COMPLIANCE WITH COVENANTS AND CONDITIONS PRECEDENT. All
covenants and conditions precedent provided for in the Indenture relating to
the establishment of the two series of Securities have been complied with.
3. TERMS. The terms of the two series of Securities established
pursuant to this Officers' Certificate shall be as follows:
(i) TITLES. The titles of the two series of Securities are (i)
the "7.45% Senior Notes due May 15, 2005" (the "Seven-Year Notes") and
(ii) the "7.65% Senior Notes due May 15, 2008" (the "Ten-Year Notes" and,
together with the Seven-Year Notes, the "Notes").
(ii) AGGREGATE PRINCIPAL AMOUNT. The aggregate principal amount
of each of the Seven-Year Notes and the Ten-Year Notes which may be
authenticated and delivered pursuant to the Indenture (except for Notes (i)
authenticated and delivered upon registration of transfer of, or in
exchange for, or in lieu of, other Notes pursuant to Sections 2.8, 2.9,
2.11, 3.6, 9.5 or 10.3 of the Indenture or (ii) which, pursuant to Section
2.4 of the Indenture, are deemed never to have been authenticated and
delivered) is $350,000,000 and $250,000,000, respectively.
(iii) REGISTERED SECURITIES IN BOOK-ENTRY FORM. Each of the
Notes will be issued in book-entry form ("Book-Entry Notes") and
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represented by one or more global notes (the "Global Notes") in fully
registered form, without coupons. The initial Depositary with respect to
the Global Notes will be The Depository Trust Company, New York, New York
("DTC"), as Depositary for the accounts of its participants. So long as
the Depositary for a Global Note, or its nominee, is the registered owner
of the Global Note, the Depositary or its nominee, as the case may be, will
be considered the sole owner or holder of the Notes in book-entry form
represented by such Global Note for all purposes under the Indenture.
Book-Entry Notes will not be exchangeable for Notes in definitive form
("Definitive Notes") except that, if the Depositary with respect to any
Global Note or Notes is at any time unwilling or unable to continue as
Depositary and a successor Depositary is not appointed by the Company
within 90 days, the Company will issue Definitive Notes in exchange for the
Book-Entry Notes represented by any such Global Note or Notes. In
addition, the Company may at any time and in its sole discretion determine
not to have a Global Note or Notes, and, in such event, will issue
Definitive Notes in exchange for the Book-Entry Notes represented by such
Global Note or Notes in accordance with the provisions of Section 2.8 of
the Indenture.
(iv) PERSONS TO WHOM INTEREST PAYABLE. Interest will be payable
to the Person in whose name a Note is registered at the close of business
(whether or not a Business Day) on the Regular Record Date with respect to
such Note, except for interest payable on a Note surrendered for redemption
as set forth in paragraph (viii) below.
(v) STATED MATURITY. The principal amounts of the Seven-Year
Notes and the Ten-Year Notes will be payable on May 15, 2005 and May 15,
2008, respectively, subject to earlier redemption as set forth in paragraph
(viii) below.
(vi) RATE OF INTEREST; INTEREST PAYMENT DATES; REGULAR RECORD
DATES; ACCRUAL OF INTEREST. The Seven-Year Notes and the Ten-Year Notes
will bear interest at the rate of 7.45% and 7.65%, respectively, per annum.
Interest on the Notes will be payable semiannually in arrears May 15 and
November 15 of each year (each, an "Interest Payment Date"), commencing on
November 15, 1998. The Regular Record Date shall be April 30 or October 31
(whether or not a Business Day), as the case may be, next preceding such
Interest Payment Date. The Notes will bear interest from May 6, 1998 in
the case of the Seven-Year Notes, and from May 5, 1998 in the case
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of the Ten-Year Notes, or from the most recent Interest Payment Date to
which interest has been paid or duly provided for until the principal
thereof is paid or made available for payment. Interest payments shall be
the amount of interest accrued from and including the most recent Interest
Payment Date in respect of which interest has been paid or duly provided
for (or from and including May 6, 1998 in the case of the Seven-Year Notes
and from and including May 5, 1998 in the case of the Ten-Year Notes, if
no interest has been paid or duly provided for with respect to such Note),
to but excluding the next succeeding Interest Payment Date.
(vii) PLACE OF PAYMENT; REGISTRATION OF TRANSFER AND EXCHANGE;
NOTICES TO COMPANY. Payment of the principal of and interest on the Notes
will be made at the Corporate Trust Office of the Trustee in the Borough of
Manhattan, The City of New York, or at any other office or agency
designated by the Company for such purpose; PROVIDED, 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 register
of Securities; and PROVIDED, FURTHER, that the Holder of the Notes shall be
entitled to receive payments of principal of and interest on the Notes by
wire transfer of immediately available funds, if appropriate wire transfer
instructions have been received in writing by the Trustee not less than 15
days prior to the applicable payment date.
The Notes may be presented for exchange and registration of
transfer at the Corporate Trust Office of the Trustee in the Borough of
Manhattan, The City of New York, or at the office of any transfer agent
hereafter designated by the Company for such purpose. Notices and demands
to or upon the Company in respect of the Notes and the Indenture may be
served at TRICON Global Restaurants, Inc., 1441 Gardiner Lane, Louisville,
Kentucky 40213, Attention: Treasurer.
(viii) REDEMPTION. The Notes are not entitled to any mandatory
redemption or sinking fund payments. However, the notes of each series will
be redeemable, at the option of the Company, in whole at any time or in
part from time to time, at a Redemption Price equal to the greater of (i)
100% of the principal amount of the Notes to be redeemed and (ii) the sum
of the present values of the Remaining Scheduled Payments (as defined
herein) on the Notes to be redeemed discounted to the date of redemption,
on a semiannual basis (assuming a 360-day year consisting of twelve 30-day
months), at
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the Treasury Rate (as defined herein) plus 37.5 basis points in the case
of the Seven-Year Notes and 50 basis points in the case of the Ten-Year
Notes, plus, in each case accrued interest thereon to the date of
redemption; PROVIDED, HOWEVER, that the installments of interest whose
Stated Maturity is prior to the relevant Redemption Date shall be payable
to the Holders of such Notes, or one or more Predecessor Securities, of
record at the close of business on the relevant Regular Record Date.
"Comparable Treasury Issue" means the United States Treasury security
selected by an Independent Investment Banker as having a maturity
comparable to the remaining term of the Notes to be redeemed that would be
utilized, at the time of selection and in accordance with customary
financial practice, in pricing new issues of corporate debt securities of
comparable maturity to the remaining term of such Notes. "Independent
Investment Banker" means one of the Reference Treasury Dealers (as defined
herein) appointed by the Company.
"Comparable Treasury Price" means, with respect to any Redemption Date, (i)
the average of the bid and asked prices for the Comparable Treasury Issue
(expressed in each case as a percentage of its principal amount) on the
third business day preceding such Redemption Date, as set forth in the
daily statistical release (or any successor release) published by the
Federal Reserve Bank of New York and designated "Composite 3:30 p.m.
Quotations for U.S. Government Securities" or (ii) if such release (or any
successor release) is not published or does not contain such prices on such
business day, (A) the average of the Reference Treasury Dealer Quotations
for such Redemption Date, after excluding the highest and lowest such
Reference Treasury Dealer Quotations, or (B) if the Trustee obtains fewer
than four such Reference Treasury Dealer Quotations, the average of all
such Quotations. "Reference Treasury Dealer Quotations" means, with
respect to each Reference Treasury Dealer and any Redemption Date, the
average, as determined by the Trustee, of the bid and asked prices for the
Comparable Treasury Issue (expressed in each case as a percentage of its
principal amount) quoted in writing to the Trustee by such Reference
Treasury Dealer at 5:00 p.m. on the third business day preceding such
Redemption Date.
"Reference Treasury Dealer" means each of Goldman, Sachs & Co., Chase
Securities Inc., Lehman Brothers Inc. and Merrill Lynch, Pierce, Fenner &
Smith Incorporated and their respective successors and, at the option of
the
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Company, additional Primary Treasury Dealers; PROVIDED, HOWEVER, that
if any of the foregoing shall cease to be a primary U.S. Government
securities dealer in New York City (a "Primary Treasury Dealer"), the
Company shall substitute therefor another Primary Treasury Dealer.
"Remaining Scheduled Payments" means, with respect to any Note of any
series, the remaining scheduled payments of the principal thereof to be
redeemed and interest thereon that would be due after the related
Redemption Date but for such redemption; PROVIDED, HOWEVER, that, if such
Redemption Date is not an interest payment date with respect to such Note
of such series, the amount of the next succeeding scheduled interest
payment thereon will be reduced by the amount of interest accrued thereon
to such Redemption Date.
"Treasury Rate" means, with respect to any Redemption Date, the rate per
annum equal to the semiannual equivalent yield to maturity of the
Comparable Treasury Issue, assuming a price for the Comparable Treasury
Issue (expressed as a percentage of its principal amount) equal to the
Comparable Treasury Price for such Redemption Date.
Notice of any redemption will be mailed at least 30 days but not more than
60 days before the redemption date to each Holder of the Notes to be
redeemed. Unless the Company defaults in payment of the redemption price,
on and after the Redemption Date, interest will cease to accrue on the
Notes or portions thereof called for redemption. If less than all of the
Notes of a series are to be redeemed, the Notes (or portions thereof) to be
redeemed shall be selected by the Trustee by such method as the Trustee
shall deem fair and appropriate.
(ix) DENOMINATIONS. The Notes are issuable in denominations of
$1,000 and integral multiples thereof.
(x) SECURITY REGISTER; PAYING AGENT. The register of Securities
for the Notes will be initially maintained at the Corporate Trust Office of
the Trustee. The Company hereby appoints the Trustee as the initial Paying
Agent.
(xi) FORM. The Seven-Year Notes and the Ten-Year Notes will be
in substantially the forms set forth in Exhibits A and B, respectively,
attached hereto and may have such other terms as are provided in such
forms.
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Capitalized terms used in this Officers' Certificate and not otherwise
defined herein shall have the meanings set forth in the Indenture.
Each of the undersigned, for himself or herself, states that he or
she has read and is familiar with the provisions of Article Two of the
Indenture relating to the establishment of a series of Securities thereunder
and the establishment of a form of Security representing a series of
Securities thereunder and, in each case, the definitions therein relating
thereto; that he or she is generally familiar with the other provisions of
the Indenture and with the affairs of the Company and its acts and
proceedings and that the statements and opinions made by him or her in this
Certificate are based upon such familiarity; and that he or she has made such
examination or investigation as is necessary to enable him or her to
determine whether or not the covenants and conditions referred to above have
been complied with; and in his or her opinion, such covenants and conditions
have been complied with.
Insofar as this Certificate relates to legal matters it is based
upon the Opinion of Counsel delivered to the Trustee contemporaneously
herewith pursuant to Section 2.4 of the Indenture and relating to the Notes.
6
<PAGE>
IN WITNESS WHEREOF, the undersigned have hereunto signed this
Certificate on behalf of the Company as of this 30th day of April, 1998.
TRICON GLOBAL RESTAURANTS, INC.
By: /s/ Robert C. Lowes
-------------------------------
Name: Robert C. Lowes
Title: Chief Financial Officer
By: /s/ Sandra S. Wijnberg
-------------------------------
Name: Sandra S. Wijnberg
Title: Senior Vice President
and Treasurer
<PAGE>
EXHIBIT A
Form of Seven-Year Note
<PAGE>
Unless and until it is exchanged in whole or in part for Notes in
definitive form, this Note may not be transferred except as a whole by the
Depositary to a nominee of the Depositary or by a nominee of the Depositary
to the Depositary or another nominee of the Depositary or by the Depositary
or any such nominee to a successor Depositary or a nominee of such successor
Depositary. Unless this certificate is presented by an authorized
representative of The Depository Trust Company, New York, New York ("DTC") to
the issuer or its agent for registration of transfer, exchange or payment,
and any certificate issued is registered in the name of Cede & Co. or such
other name as requested by an authorized representative of DTC and any
payment is made to Cede & Co. or such other entity as is requested by an
authorized representative of DTC, ANY TRANSFER, PLEDGE OR OTHER USE HEREOF
FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL since the registered
owner hereof, Cede & Co., has an interest herein.
REGISTERED TRICON GLOBAL RESTAURANTS, INC. REGISTERED
7.45% SENIOR NOTE DUE MAY 15, 2005
NO. R- Principal Amount: $
CUSIP: 895953 AA 5
TRICON Global Restaurants, Inc., a corporation duly organized and
existing under the laws of the State of North Carolina (herein referred to as
the "Company," which term includes any successor corporation under the
Indenture as hereinafter referred to) for value received, hereby promises to
pay to Cede & Co., or registered assigns, the principal sum of
DOLLARS, on May 15, 2005 and to pay interest thereon from May 6, 1998 or from
the most recent Interest Payment Date to which interest has been paid or duly
provided for semiannually in arrears on May 15 and November 15, in each year,
commencing on November 15, 1998 at the rate of 7.45% per annum, until the
principal hereof is paid or made available for payment. The interest so
payable, and punctually paid or duly provided for, on any Interest Payment
Date will, as provided in the Indenture (as defined herein), be paid to the
Person in whose name this Note (or one or more Predecessor Securities) is
registered at the close of business on the Regular Record Date, which shall
be the April 30 or October 31 (whether or not a Business Day), as the case
may be, next preceding such Interest Payment Date. Except as otherwise
provided in the Indenture, any such interest not punctually paid or duly
provided for on any Interest Payment Date (herein called "Defaulted
Interest") will forthwith cease to be payable to the Holder on the Regular
Record Date with respect to such Interest Payment Date and may either be paid
to the Person in whose name this Note (or one or more Predecessor Securities)
is registered at the close of business on a Special Record Date for the
payment of such Defaulted Interest to be fixed by the Trustee, notice of
which shall be given to Holders of Notes 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
Notes may be listed, and upon such notice as may be required by such
exchange, all as more fully provided in said Indenture. Payment of the
principal and interest on this Note will be made at the office or agency of
the Company maintained for that purpose in the Borough of Manhattan, The City
of New York, and at any other office or agency maintained by the Company for
such purpose, 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;
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
<PAGE>
register of Securities; and PROVIDED, FURTHER, that the Holder of this Note
shall be entitled to receive payments of principal of and interest on this
Note by wire transfer of immediately available funds, if appropriate wire
transfer instructions have been received in writing by the Trustee not less
than 15 days prior to the applicable payment date.
Reference is hereby made to the further provisions of this Note set forth
herein, which further provisions shall for all proposes have the same effect as
if set forth at this place.
Unless the certificate of authentication hereon has been executed by the
Trustee or its duly appointed co-authenticating agent by manual signature, this
Note shall not be entitled to any benefit under the Indenture or be valid or
obligatory for any purpose.
IN WITNESS WHEREOF, TRICON Global Restaurants, Inc. has caused this
instrument to be signed by the manual signature of its Chairman of the Board,
one of its Vice Chairmen, its President or one of its Vice Presidents, or the
Treasurer or any Assistant Treasurer, under its corporate seal reproduced
thereon attested by its Secretary or one of its Assistant Secretaries.
TRICON GLOBAL RESTAURANTS, INC.
(SEAL)
By:
-------------------------------
Name:
Title:
ATTEST:
By: By:
------------------------------- -------------------------------
Name: Name:
Title: Title:
Dated: May 6, 1998
TRUSTEE'S CERTIFICATE OF AUTHENTICATION
This is one of the Notes of the series designated herein referred to in the
within-mentioned Indenture.
THE FIRST NATIONAL BANK OF CHICAGO, as Trustee
By:
-------------------------------
Authorized Signatory
2
<PAGE>
TRICON GLOBAL RESTAURANTS, INC.
7.45% SENIOR NOTE DUE MAY 15, 2005
This Note is one of a duly authorized issue of securities (herein called
the "Securities") of the Company (which term includes any successor
corporation under the Indenture hereinafter referred to), issued and to be
issued pursuant to such Indenture. This Note is one of a series designated
by the Company as its 7.45% Senior Notes due May 15, 2005, limited in
aggregate principal amount to $350,000,000. The Indenture does not limit the
aggregate principal amount of the Securities.
The Company issued this Note pursuant to an Indenture, dated as of May
1, 1998 (herein called the "Indenture"), between the Company and The First
National Bank of Chicago, as Trustee (herein called the "Trustee," which term
includes any successor trustee under the Indenture), to which Indenture and
all indentures supplemental thereto reference is hereby made for a statement
of the respective rights, limitations of rights, duties and immunities
thereunder of the Company, the Trustee and the Holders of the Notes and of
the terms upon which the Notes are, and are to be, authenticated and
delivered.
The Notes are issuable 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, the Notes
are exchangeable for a like aggregate principal amount of Notes of like tenor
of any authorized denomination, as requested by the Holder surrendering the
same, upon surrender of the Note or Notes to be exchanged at any office or
agency described below where the Notes may be presented for registration of
transfer.
The Notes are not entitled to any mandatory redemption or sinking fund
payments. However, the Notes are redeemable, at the option of the Company,
in whole at any time or in part from time to time, on at least 30 but no more
than 60 days prior written notice mailed to DTC, at a Redemption Price equal
to the greater of (i) 100% of the principal amount of the Notes and (ii) the
sum of the present values of the Remaining Scheduled Payments (as defined
herein) on the Notes discounted to the date of redemption, on a semiannual
basis, at the Treasury Rate (as defined herein) plus 37.5 basis points plus
accrued interest thereon to the date of redemption. Interest on the Notes
shall be calculated on the basis of a 360-day year consisting of twelve
30-day months.
If money sufficient to pay the Redemption Price of and accrued interest
on all Notes (or portions thereof) is deposited with the Trustee on or before
the Redemption Date and certain other conditions are satisfied, on and after
such date interest will cease to accrue on the Notes (or such portions
thereof) called for redemption.
"Comparable Treasury Issue" means the United States Treasury security
selected by an Independent Investment Banker as having a maturity comparable
to the remaining term of the Notes to be redeemed that would be utilized, at
the time of selection and in accordance with customary financial practice, in
pricing new issues of corporate debt securities of comparable maturity to the
remaining term of the Notes. "Independent Investment Banker" means one of
the Reference Treasury Dealers (as defined herein) appointed by the Company.
3
<PAGE>
"Comparable Treasury Price" means, with respect to any Redemption Date,
(i) the average of the bid and asked prices for the Comparable Treasury
Issue (expressed in each case as a percentage of its principal amount) on the
third business day preceding such Redemption Date, as set forth in the daily
statistical release (or any successor release) published by the Federal
Reserve Bank of New York and designated "Composite 3:30 p.m. Quotations for
U.S. Government Securities" or (ii) if such release (or any successor
release) is not published or does not contain such prices on such business
day, (A) the average of the Reference Treasury Dealer Quotations for such
Redemption Date, after excluding the highest and lowest such Reference
Treasury Dealer Quotations, or (B) if the Trustee obtains fewer than four
such Reference Treasury Dealer Quotations, the average of all such
Quotations. "Reference Treasury Dealer Quotations" means, with respect to
each Reference Treasury Dealer and any Redemption Date, the average, as
determined by the Trustee, of the bid and asked prices for the Comparable
Treasury Issue (expressed in each case as a percentage of its principal
amount) quoted in writing to the Trustee by such Reference Treasury Dealer at
5:00 p.m. on the third business day preceding such Redemption Date.
"Reference Treasury Dealer" means each of Goldman, Sachs & Co., Chase
Securities Inc., Lehman Brothers Inc. and Merrill Lynch, Pierce, Fenner &
Smith Incorporated and their respective successors and, at the option of the
Company, additional Primary Treasury Dealers; PROVIDED, HOWEVER, that if any
of the foregoing shall cease to be a primary U.S. Government securities
dealer in New York City (a "Primary Treasury Dealer"), the Company shall
substitute therefor another Primary Treasury Dealer.
"Remaining Scheduled Payments" means the remaining scheduled payments of
the principal of and interest on the Notes that would be due after the
related Redemption Date but for such redemption; PROVIDED, HOWEVER, that, if
such Redemption Date is not an interest payment date with respect to such
Notes, the amount of the next succeeding scheduled interest payment thereon
will be reduced by the amount of interest accrued thereon to such Redemption
Date.
"Treasury Rate" means, with respect to any Redemption Date, the rate per
annum equal to the semiannual equivalent yield to maturity of the Comparable
Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed
as a percentage of its principal amount) equal to the Comparable Treasury
Price for such Redemption Date.
Notwithstanding the foregoing, installments of interest whose Stated
Maturity is prior to the Redemption Date of any Note will be payable to the
Holder of such Note, or one or more Predecessor Securities, of record at the
close of business on the relevant Regular Record Date referred to above, all
as provided in the Indenture.
All notices of redemption shall state the Redemption Date, the
Redemption Price, if fewer than all the Outstanding Notes are to be redeemed,
the identification (and, in the case of partial redemption, the principal
amounts) of the particular Notes to be redeemed, that on the Redemption Date
the Redemption Price will become due and payable upon each Note, or portion
thereof, to be redeemed, that interest on each Note, or portion thereof,
called for redemption will cease to accrue on the Redemption Date and the
place or places where Notes may be surrendered for redemption. If fewer than
all of the Notes are to be redeemed at any time, selection of such Notes for
redemption will be made by the Trustee by such method as the Trustee shall
deem fair and appropriate.
4
<PAGE>
In the event of redemption of this Note in part only, a new Note or
Notes of like tenor for the unredeemed portion hereof will be issued in
authorized denominations in the name of the Holder hereof upon the
cancellation hereof.
For all purposes of this Note and the Indenture, unless the context
otherwise requires, all provisions relating to the redemption by the Company
of this Note shall relate, in the case that this Note is redeemed or to be
redeemed by the Company only in part to that portion of the principal amount
of this Note that has been or is to be redeemed.
If an Event of Default with respect to the Notes shall occur and be
continuing, the principal of all the Notes may be declared due and payable in
the manner and with the effect provided in the Indenture. Holders of Notes
may not enforce their rights pursuant to the Indenture or the Notes except as
provided in the Indenture.
The Indenture permits, in certain circumstances therein specified, the
amendment thereof without the consent of the Holders of the Securities. The
Indenture also permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations under
the Indenture 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 aggregate
principal amount of the Securities at the time Outstanding of each series to
be affected. The Indenture also contains provisions permitting the Holders of
a majority in aggregate principal amount of the Securities of each series at
the time Outstanding, on behalf of the Holders of all the 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 Note shall be
conclusive and binding upon such Holder and upon all future Holders of this
Note and of any Note issued upon the registration of transfer hereof or in
exchange herefor or in lieu hereof, whether or not notation of such consent
or waiver is made upon this Note.
No reference herein to the Indenture and no provision of this Note or,
subject to the provisions for satisfaction and discharge in Article Eight, of
the Indenture shall alter or impair the obligation of the Company, which is
absolute and unconditional, to pay the principal of and interest on this Note
at the times, place and rate, and in the coin or currency, herein prescribed.
The Indenture permits the Company, by irrevocably depositing, in amounts
and maturities sufficient to pay and discharge at the Stated Maturity or
Redemption Date, as the case may be, the entire indebtedness on all
Outstanding Notes, cash or direct obligations of, or obligations the
principal of and interest on which are fully guaranteed by, the United States
government, and which are not subject to prepayment, redemption or call, with
the Trustee in trust solely for the benefit of the Holders of all Outstanding
Notes, to defease the Indenture with respect to such Notes, and upon such
deposit the Company shall be deemed to have paid and discharged its entire
indebtedness on such Notes. Thereafter, Holders would be able to look only to
such trust fund for payment of principal and interest at the Stated Maturity
or Redemption Date, as the case may be. The Indenture also permits, in
certain circumstances therein specified, the Company to be released from
certain of its obligations under the Indenture on the terms and subject to
the conditions therein provided.
5
<PAGE>
As provided in the Indenture and subject to certain limitations therein
set forth, the transfer of this Note is registrable in the register of
Securities, upon surrender of this Note for registration of transfer at the
office or agency of the Company in the Borough of Manhattan, The City of New
York, or at such other offices or agencies as the Company may designate, duly
endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Company and the Registrar duly executed by, the Holder
hereof or his attorney duly authorized in writing, and thereupon one or more
new Notes of like tenor, of authorized denominations and for the same
aggregate principal amount, will be issued to the designated transferee or
transferees.
No service charge shall be made by the Company, the Trustee or the
Registrar for any such registration of transfer or exchange, but the Company
may require payment of a sum sufficient to cover any tax, assessment or other
governmental charge payable in connection therewith (other than exchanges
pursuant to Sections 2.11, 3.6 or 9.5 of the Indenture, not involving any
transfer).
Prior to due presentment of this Note for registration of transfer, the
Company, the Trustee and any agent of the Company or the Trustee may treat
the Person in whose name this Note is registered as the owner hereof for all
purposes, whether or not this Note be overdue, and neither the Company, the
Trustee nor any such agent shall be affected by notice to the contrary.
The Indenture and the Notes shall be governed by and construed in
accordance with the laws of the State of New York of the United States of
America, including without limitation, New York General Obligations Law
Sections 5-1401 and 5-1402 and New York Civil Practice Law and Rules 327.
All undefined terms used in this Note which are defined in the Indenture
shall have the meanings assigned to them in the Indenture.
6
<PAGE>
ABBREVIATIONS
The following abbreviations, when used in the inscription on the face of
this instrument, shall be construed as though they were written out in full
according to applicable laws or regulations:
TEN COM - as tenants in common UNIF GIFT MIN ACT Custodian
-------- ---------
(Cust.) (Minor)
TEN ENT - as tenants by the entireties
JT TEN - as joint tenants with right of survivor- Under Uniform Gifts
ship and not as tenants in common to Minor Act
(State)
Additional abbreviations may also be used though not in the above list.
_______________________
FOR VALUE RECEIVED, the undersigned hereby sells(s), assign(s) and transfer(s)
unto
Please Insert Social Security or Employer
Identification number of assignee
- -----------------------------------
---- ----
- -----------------------------------
- -------------------------------------------------------------------------------
Please Print or Typewrite Name and Address
Including Postal Zip Code of Assignee
- -------------------------------------------------------------------------------
the within Security and all rights thereunder, hereby irrevocably constituting
and appointing ______________________________________ attorney to transfer
said Security on the books of the Company, with full power of substitution in
the premises.
Dated:
-------------------------------- -------------------------------------
Signature
NOTICE: The signature to this assignment must correspond with the name as it
appears upon the face of the within Note in every particular, without
alteration or enlargement or any change whatever.
7
<PAGE>
EXHIBIT B
Form of Ten-Year Note
<PAGE>
Unless and until it is exchanged in whole or in part for Notes in
definitive form, this Note may not be transferred except as a whole by the
Depositary to a nominee of the Depositary or by a nominee of the Depositary
to the Depositary or another nominee of the Depositary or by the Depositary
or any such nominee to a successor Depositary or a nominee of such successor
Depositary. Unless this certificate is presented by an authorized
representative of The Depository Trust Company, New York, New York ("DTC") to
the issuer or its agent for registration of transfer, exchange or payment,
and any certificate issued is registered in the name of Cede & Co. or such
other name as requested by an authorized representative of DTC and any
payment is made to Cede & Co. or such other entity as is requested by an
authorized representative of DTC, ANY TRANSFER, PLEDGE OR OTHER USE HEREOF
FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL since the registered
owner hereof, Cede & Co., has an interest herein.
REGISTERED TRICON GLOBAL RESTAURANTS, INC. REGISTERED
7.65% SENIOR NOTE DUE MAY 15, 2008
NO. R- Principal Amount: $
CUSIP: 895953 AB 3
TRICON Global Restaurants, Inc., a corporation duly organized and
existing under the laws of the State of North Carolina (herein referred to as
the "Company," which term includes any successor corporation under the
Indenture as hereinafter referred to) for value received, hereby promises to
pay to Cede & Co., or registered assigns, the principal sum of
DOLLARS, on May 15, 2008 and to pay interest thereon from May 5, 1998 or
from the most recent Interest Payment Date to which interest has been paid or
duly provided for semiannually in arrears on May 15 and November 15, in each
year, commencing on November 15, 1998 at the rate of 7.65% per annum, until
the principal hereof is paid or made available for payment. The interest so
payable, and punctually paid or duly provided for, on any Interest Payment
Date will, as provided in the Indenture (as defined herein), be paid to the
Person in whose name this Note (or one or more Predecessor Securities) is
registered at the close of business on the Regular Record Date, which shall
be the April 30 or October 31 (whether or not a Business Day), as the case
may be, next preceding such Interest Payment Date. Except as otherwise
provided in the Indenture, any such interest not punctually paid or duly
provided for on any Interest Payment Date (herein called "Defaulted
Interest") will forthwith cease to be payable to the Holder on the Regular
Record Date with respect to such Interest Payment Date and may either be paid
to the Person in whose name this Note (or one or more Predecessor Securities)
is registered at the close of business on a Special Record Date for the
payment of such Defaulted Interest to be fixed by the Trustee, notice of
which shall be given to Holders of Notes 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
Notes may be listed, and upon such notice as may be required by such
exchange, all as more fully provided in said Indenture. Payment of the
principal and interest on this Note will be made at the office or agency of
the Company maintained for that purpose in the Borough of Manhattan, The City
of New York, and at any other office or agency maintained by the Company for
such purpose, 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;
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
<PAGE>
register of Securities; and PROVIDED, FURTHER, that the Holder of this Note
shall be entitled to receive payments of principal of and interest on this
Note by wire transfer of immediately available funds, if appropriate wire
transfer instructions have been received in writing by the Trustee not less
than 15 days prior to the applicable payment date.
Reference is hereby made to the further provisions of this Note set
forth herein, which further provisions shall for all proposes have the same
effect as if set forth at this place.
Unless the certificate of authentication hereon has been executed by the
Trustee or its duly appointed co-authenticating agent by manual signature,
this Note shall not be entitled to any benefit under the Indenture or be
valid or obligatory for any purpose.
IN WITNESS WHEREOF, TRICON Global Restaurants, Inc. has caused this
instrument to be signed by the manual signature of its Chairman of the Board,
one of its Vice Chairmen, its President or one of its Vice Presidents, or the
Treasurer or any Assistant Treasurer, under its corporate seal reproduced
thereon attested by its Secretary or one of its Assistant Secretaries.
TRICON GLOBAL RESTAURANTS, INC.
(SEAL)
By:
-----------------------------------
Name:
Title:
ATTEST:
By: By:
----------------------------------- -----------------------------------
Name: Name:
Title: Title:
Dated: May 5, 1998
TRUSTEE'S CERTIFICATE OF AUTHENTICATION
This is one of the Notes of the series designated herein referred to in the
within-mentioned Indenture.
THE FIRST NATIONAL BANK OF CHICAGO, as Trustee
By:
-----------------------------------
Authorized Signatory
2
<PAGE>
TRICON GLOBAL RESTAURANTS, INC.
7.65% SENIOR NOTE DUE MAY 15, 2008
This Note is one of a duly authorized issue of securities (herein called
the "Securities") of the Company (which term includes any successor
corporation under the Indenture hereinafter referred to), issued and to be
issued pursuant to such Indenture. This Note is one of a series designated
by the Company as its 7.65% Senior Notes due May 15, 2008, limited in
aggregate principal amount to $250,000,000. The Indenture does not limit the
aggregate principal amount of the Securities.
The Company issued this Note pursuant to an Indenture, dated as of May
1, 1998 (herein called the "Indenture"), between the Company and The First
National Bank of Chicago, as Trustee (herein called the "Trustee," which term
includes any successor trustee under the Indenture), to which Indenture and
all indentures supplemental thereto reference is hereby made for a statement
of the respective rights, limitations of rights, duties and immunities
thereunder of the Company, the Trustee and the Holders of the Notes and of
the terms upon which the Notes are, and are to be, authenticated and
delivered.
The Notes are issuable 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, the Notes
are exchangeable for a like aggregate principal amount of Notes of like tenor
of any authorized denomination, as requested by the Holder surrendering the
same, upon surrender of the Note or Notes to be exchanged at any office or
agency described below where the Notes may be presented for registration of
transfer.
The Notes are not entitled to any mandatory redemption or sinking fund
payments. However, the Notes are redeemable, at the option of the Company,
in whole at any time or in part from time to time, on at least 30 but no more
than 60 days prior written notice mailed to DTC, at a Redemption Price equal
to the greater of (i) 100% of the principal amount of the Notes and (ii) the
sum of the present values of the Remaining Scheduled Payments (as defined
herein) on the Notes discounted to the date of redemption, on a semiannual
basis, at the Treasury Rate (as defined herein) plus 50 basis points plus
accrued interest thereon to the date of redemption. Interest on the Notes
shall be calculated on the basis of a 360-day year consisting of twelve
30-day months.
If money sufficient to pay the Redemption Price of and accrued interest
on all Notes (or portions thereof) is deposited with the Trustee on or before
the Redemption Date and certain other conditions are satisfied, on and after
such date interest will cease to accrue on the Notes (or such portions
thereof) called for redemption.
"Comparable Treasury Issue" means the United States Treasury security
selected by an Independent Investment Banker as having a maturity comparable
to the remaining term of the Notes to be redeemed that would be utilized, at
the time of selection and in accordance with customary financial practice, in
pricing new issues of corporate debt securities of comparable maturity to the
remaining term of the Notes. "Independent Investment Banker" means one of
the Reference Treasury Dealers (as defined herein) appointed by the Company.
3
<PAGE>
"Comparable Treasury Price" means, with respect to any Redemption Date,
(i) the average of the bid and asked prices for the Comparable Treasury
Issue (expressed in each case as a percentage of its principal amount) on the
third business day preceding such Redemption Date, as set forth in the daily
statistical release (or any successor release) published by the Federal
Reserve Bank of New York and designated "Composite 3:30 p.m. Quotations for
U.S. Government Securities" or (ii) if such release (or any successor
release) is not published or does not contain such prices on such business
day, (A) the average of the Reference Treasury Dealer Quotations for such
Redemption Date, after excluding the highest and lowest such Reference
Treasury Dealer Quotations, or (B) if the Trustee obtains fewer than four
such Reference Treasury Dealer Quotations, the average of all such
Quotations. "Reference Treasury Dealer Quotations" means, with respect to
each Reference Treasury Dealer and any Redemption Date, the average, as
determined by the Trustee, of the bid and asked prices for the Comparable
Treasury Issue (expressed in each case as a percentage of its principal
amount) quoted in writing to the Trustee by such Reference Treasury Dealer at
5:00 p.m. on the third business day preceding such Redemption Date.
"Reference Treasury Dealer" means each of Goldman, Sachs & Co., Chase
Securities Inc., Lehman Brothers Inc. and Merrill Lynch, Pierce, Fenner &
Smith Incorporated and their respective successors and, at the option of the
Company, additional Primary Treasury Dealers; PROVIDED, HOWEVER, that if any
of the foregoing shall cease to be a primary U.S. Government securities
dealer in New York City (a "Primary Treasury Dealer"), the Company shall
substitute therefor another Primary Treasury Dealer.
"Remaining Scheduled Payments" means the remaining scheduled payments of
the principal of and interest on the Notes that would be due after the
related Redemption Date but for such redemption; PROVIDED, HOWEVER, that, if
such Redemption Date is not an interest payment date with respect to such
Notes, the amount of the next succeeding scheduled interest payment thereon
will be reduced by the amount of interest accrued thereon to such Redemption
Date.
"Treasury Rate" means, with respect to any Redemption Date, the rate per
annum equal to the semiannual equivalent yield to maturity of the Comparable
Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed
as a percentage of its principal amount) equal to the Comparable Treasury
Price for such Redemption Date.
Notwithstanding the foregoing, installments of interest whose Stated
Maturity is prior to the Redemption Date of any Note will be payable to the
Holder of such Note, or one or more Predecessor Securities, of record at the
close of business on the relevant Regular Record Date referred to above, all
as provided in the Indenture.
All notices of redemption shall state the Redemption Date, the
Redemption Price, if fewer than all the Outstanding Notes are to be redeemed,
the identification (and, in the case of partial redemption, the principal
amounts) of the particular Notes to be redeemed, that on the Redemption Date
the Redemption Price will become due and payable upon each Note, or portion
thereof, to be redeemed, that interest on each Note, or portion thereof,
called for redemption will cease to accrue on the Redemption Date and the
place or places where Notes may be surrendered for redemption. If fewer than
all of the Notes are to be redeemed at any time, selection of such Notes for
redemption will be made by the Trustee by such method as the Trustee shall
deem fair and appropriate.
4
<PAGE>
In the event of redemption of this Note in part only, a new Note or
Notes of like tenor for the unredeemed portion hereof will be issued in
authorized denominations in the name of the Holder hereof upon the
cancellation hereof.
For all purposes of this Note and the Indenture, unless the context
otherwise requires, all provisions relating to the redemption by the Company
of this Note shall relate, in the case that this Note is redeemed or to be
redeemed by the Company only in part to that portion of the principal amount
of this Note that has been or is to be redeemed.
If an Event of Default with respect to the Notes shall occur and be
continuing, the principal of all the Notes may be declared due and payable in
the manner and with the effect provided in the Indenture. Holders of Notes
may not enforce their rights pursuant to the Indenture or the Notes except as
provided in the Indenture.
The Indenture permits, in certain circumstances therein specified, the
amendment thereof without the consent of the Holders of the Securities. The
Indenture also permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations under
the Indenture 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 aggregate
principal amount of the Securities at the time Outstanding of each series to
be affected. The Indenture also contains provisions permitting the Holders of
a majority in aggregate principal amount of the Securities of each series at
the time Outstanding, on behalf of the Holders of all the 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 Note shall be
conclusive and binding upon such Holder and upon all future Holders of this
Note and of any Note issued upon the registration of transfer hereof or in
exchange herefor or in lieu hereof, whether or not notation of such consent
or waiver is made upon this Note.
No reference herein to the Indenture and no provision of this Note or,
subject to the provisions for satisfaction and discharge in Article Eight, of
the Indenture shall alter or impair the obligation of the Company, which is
absolute and unconditional, to pay the principal of and interest on this Note
at the times, place and rate, and in the coin or currency, herein prescribed.
The Indenture permits the Company, by irrevocably depositing, in amounts
and maturities sufficient to pay and discharge at the Stated Maturity or
Redemption Date, as the case may be, the entire indebtedness on all
Outstanding Notes, cash or direct obligations of, or obligations the
principal of and interest on which are fully guaranteed by, the United States
government, and which are not subject to prepayment, redemption or call, with
the Trustee in trust solely for the benefit of the Holders of all Outstanding
Notes, to defease the Indenture with respect to such Notes, and upon such
deposit the Company shall be deemed to have paid and discharged its entire
indebtedness on such Notes. Thereafter, Holders would be able to look only to
such trust fund for payment of principal and interest at the Stated Maturity
or Redemption Date, as the case may be. The Indenture also permits, in
certain circumstances therein specified, the Company to be released from
certain of its obligations under the Indenture on the terms and subject to
the conditions therein provided.
5
<PAGE>
As provided in the Indenture and subject to certain limitations therein
set forth, the transfer of this Note is registrable in the register of
Securities, upon surrender of this Note for registration of transfer at the
office or agency of the Company in the Borough of Manhattan, The City of New
York, or at such other offices or agencies as the Company may designate, duly
endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Company and the Registrar duly executed by, the Holder
hereof or his attorney duly authorized in writing, and thereupon one or more
new Notes of like tenor, of authorized denominations and for the same
aggregate principal amount, will be issued to the designated transferee or
transferees.
No service charge shall be made by the Company, the Trustee or the
Registrar for any such registration of transfer or exchange, but the Company
may require payment of a sum sufficient to cover any tax, assessment or other
governmental charge payable in connection therewith (other than exchanges
pursuant to Sections 2.11, 3.6 or 9.5 of the Indenture, not involving any
transfer).
Prior to due presentment of this Note for registration of transfer, the
Company, the Trustee and any agent of the Company or the Trustee may treat
the Person in whose name this Note is registered as the owner hereof for all
purposes, whether or not this Note be overdue, and neither the Company, the
Trustee nor any such agent shall be affected by notice to the contrary.
The Indenture and the Notes shall be governed by and construed in
accordance with the laws of the State of New York of the United States of
America, including without limitation, New York General Obligations Law
Sections 5-1401 and 5-1402 and New York Civil Practice Law and Rules 327.
All undefined terms used in this Note which are defined in the Indenture
shall have the meanings assigned to them in the Indenture.
<PAGE>
ABBREVIATIONS
The following abbreviations, when used in the inscription on the face of
this instrument, shall be construed as though they were written out in full
according to applicable laws or regulations:
TEN COM - as tenants in common UNIF GIFT MIN ACT Custodian
-------- ---------
(Cust.) (Minor)
TEN ENT - as tenants by the entireties
JT TEN - as joint tenants with right of survivor- Under Uniform Gifts
ship and not as tenants in common to Minor Act
(State)
Additional abbreviations may also be used though not in the above list.
_______________________
FOR VALUE RECEIVED, the undersigned hereby sells(s), assign(s) and transfer(s)
unto
Please Insert Social Security or Employer
Identification number of assignee
- -----------------------------------
---- ----
- -----------------------------------
- -------------------------------------------------------------------------------
Please Print or Typewrite Name and Address
Including Postal Zip Code of Assignee
- -------------------------------------------------------------------------------
the within Security and all rights thereunder, hereby irrevocably constituting
and appointing ______________________________________ attorney to transfer
said Security on the books of the Company, with full power of substitution in
the premises.
Dated:
-------------------------------- -------------------------------------
Signature
NOTICE: The signature to this assignment must correspond with the name as it
appears upon the face of the within Note in every particular, without
alteration or enlargement or any change whatever.
