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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) July 23, 1997
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BECTON, DICKINSON AND COMPANY
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(Exact name of registrant as specified in its charter)
New Jersey 1-4802 22-0760120
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(State or other juris- (Commission (IRS Employer Iden-
diction of incorporation) File Number) tification Number)
1 Becton Drive, Franklin Lakes, New Jersey 07417-1880
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (201) 847-6800
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N/A
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(Former name or former addresses if changed since last report.)
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Item 7. Financial Statements and Exhibits
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The Registrant is filing herewith the exhibits referenced in the Index
of Exhibits annexed hereto and made a part hereof.
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SIGNATURES
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.
BECTON, DICKINSON AND COMPANY
(Registrant)
By: /s/ Bridget M. Healy
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Bridget M. Healy
Vice President and Secretary
Date: July 30, 1997
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INDEX TO EXHIBITS
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Exhibit
Number Description of Exhibits
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1(a) Underwriting Agreement, dated July 23, 1997, between
the Registrant and Goldman, Sachs & Co.
1(b) Pricing Agreement, dated July 23, 1997, between
the Registrant and Goldman, Sachs & Co.
4(a) Indenture, dated as of March 1, 1997, between the Registrant
and The Chase Manhattan Bank, Trustee.
4(d) Form of Definitive Global 7% Debenture due August 1, 2027.
12 Calculation of Ratio of Earnings to Fixed Charges.
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EXHIBIT 1(a)
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Becton, Dickinson and Company
Debt Securities and Warrants
to Purchase Debt Securities
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Underwriting Agreement
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July 23, 1997
To the Representatives of the
several Underwriters named in the
respective Pricing Agreements
hereinafter described.
Dear Sirs:
From time to time Becton, Dickinson and Company, a New Jersey corporation
(the "Company"), proposes to enter into one or more Pricing Agreements (each a
"Pricing Agreement") in the form of Annex I hereto, with such additions and
deletions as the parties thereto may determine, and, subject to the terms and
conditions stated herein and therein, to issue and sell to the firms named in
Schedule I to the applicable Pricing Agreement (such firms constituting the
"Underwriters" with respect to such Pricing Agreement and the securities
specified therein) certain of its debt securities (the "Securities") and/or
warrants (the "Warrants") to purchase such Securities, in each case as specified
in Schedule II to such Pricing Agreement (with respect to such Pricing
Agreement, the "Designated Securities").
The terms and rights of any particular issuance of Designated Securities
shall be as specified in the Pricing Agreement relating thereto and in or
pursuant to the indenture (the "Indenture") or warrant agreement (the "Warrant
Agreement") identified in such Pricing Agreement.
1. Particular sales of Designated Securities may be made from time to time
to the Underwriters of such Securities or Warrants, for whom the firms
designated as representatives of the Underwriters of such Securities or Warrants
in the Pricing Agreement relating thereto will act as representatives (the
"Representatives"). The term "Representatives" also refers to a single firm
acting as sole representative of the Underwriters and to Underwriters who act
without any firm being designated as their representative. This Underwriting
Agreement shall not be construed as an obligation of the Company to sell any of
the Securities or Warrants or as an obligation of any of the Underwriters to
purchase the Securities or Warrants. The obligation of the Company to issue and
sell any of the Securities or Warrants and the obligation of any of the
Underwriters to purchase any of the Securities or Warrants shall be evidenced by
the Pricing Agreement with respect to the Designated Securities specified
therein. Each Pricing Agreement shall specify the aggregate principal amount of
such Designated Securities, the initial public offering price of such Designated
Securities, the purchase price to the Underwriters of such Designated
Securities, the names of the Underwriters of such Designated Securities, the
names of the Representatives of such Underwriters and the principal amount of
such Designated Securities to be purchased by each Underwriter and shall set
forth the date, time and manner of delivery of such Designated Securities and
payment therefor. The Pricing Agreement shall also specify (to the extent not
set forth in the Indenture, the Warrant Agreement and the registration statement
and prospectus with respect thereto) the terms of such Designated Securities. A
Pricing Agreement shall be in the form of an executed writing (which may be in
counterparts), and may be evidenced by an exchange of telegraphic communications
or any other rapid transmission device designed to produce a written record of
communications transmitted. The obligations of the Underwriters under this
Agreement and each Pricing Agreement shall be several and not joint.
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2. The Company represents and warrants to, and agrees with, each of the
Underwriters that:
(a) A registration statement in respect of the Securities (including any
Securities issuable upon exercise of Warrants) and Warrants has been filed
with the Securities and Exchange Commission (the "Commission"); such
registration statement and any post-effective amendment thereto, each in the
form heretofore delivered or to be delivered to the Representatives and,
excluding exhibits to such registration statement, but including all
documents incorporated by reference in the prospectus contained therein
(except for any document or portions thereof which are deemed under Rule 412
under the Securities Act of 1933, as amended, (the "Act") not to be
incorporated by reference therein), the Representatives for each of the other
Underwriters, have been declared effective by the Commission in such form; no
other document with respect to such registration statement or document
incorporated by reference therein has heretofore been filed or transmitted
for filing with the Commission; and no stop order suspending the
effectiveness of such registration statement has been issued and no
proceeding for that purpose has been initiated or threatened by the
Commission (any preliminary prospectus included in such registration
statement or filed with the Commission pursuant to Rule 424(a) of the rules
and regulations of the Commission under the Act being hereinafter called a
"Preliminary Prospectus"; the various parts of such registration statement,
including all exhibits thereto and the documents incorporated by reference in
the prospectus contained in the registration statement at the time such part
of the registration statement became effective but excluding Form T-1, each
as amended at the time such part of the registration statement became
effective, being hereinafter called the "Registration Statement"; the
prospectus relating to the Securities and Warrants, 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, being hereinafter called the
"Prospectus"; any reference herein to any Preliminary Prospectus or the
Prospectus shall be deemed to refer to and include the documents incorporated
by reference therein pursuant to the applicable form under the Act, as of the
date of such Preliminary Prospectus or Prospectus, as the case may be; any
reference to any amendment or supplement to any Preliminary Prospectus or the
Prospectus shall be deemed to refer to and include any documents filed after
the date of such Preliminary Prospectus or Prospectus, as the case may be,
under the Securities Exchange Act of 1934, as amended (the "Exchange Act"),
and incorporated by reference in such Preliminary Prospectus or Prospectus,
as the case may be; any reference to any amendment to the Registration
Statement shall be deemed to refer to and include any annual report of the
Company filed pursuant to Section 13(a) or 15(d) of the Exchange Act after
the effective date of the Registration Statement that is incorporated by
reference in the Registration Statement; and any reference to the Prospectus
as amended or supplemented shall be deemed to refer to the Prospectus as
amended or supplemented in relation to the applicable Designated Securities
in the form in which it is filed with the Commission pursuant to Rule 424(b)
under the Act in accordance with Section 5(a) hereof, including any documents
incorporated by reference therein as of the date of such filing);
(b) The documents incorporated by reference in the Prospectus, when they
became effective or were filed with the Commission, as the case may be,
conformed in all material respects to the requirements of the Act or the
Exchange Act, as applicable, and the rules and regulations of the Commission
thereunder, and none of such documents 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; and any
further documents so filed and incorporated by reference in the Prospectus or
any further amendment or supplement thereto, when such documents become
effective or are filed with the Commission, as the case may be, will conform
in all material respects to the requirements of the Act or the Exchange Act,
as applicable, and the rules and regulations of the Commission thereunder and
will not contain an untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary to make the
statements therein not misleading; provided, however, that this
representation and warranty shall not apply to any statements or omissions
made in reliance upon and in conformity with
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information furnished in writing to the Company by an Underwriter of
Designated Securities through the Representatives expressly for use in the
Prospectus as amended or supplemented relating to such Securities or
Warrants;
(c) The Registration Statement and the Prospectus conforms, and any
further amendments or supplements to the Registration Statement or the
Prospectus will conform, in all material respects to the requirements of the
Act and the Trust Indenture Act of 1939, as amended (the "Trust Indenture
Act") and the rules and regulations of the Commission thereunder and do not
and will not, as of the applicable effective date as to the Registration
Statement and any amendment thereto and as of the applicable filing date as
to the Prospectus and any amendment or supplement thereto, contain an untrue
statement of a material fact or omit to state a material fact required to be
stated therein or necessary to make the statements therein not misleading;
provided, however, that this representation and warranty shall not apply to
any statements or omissions made in reliance upon and in conformity with
information furnished in writing to the Company by an Underwriter of
Designated Securities through the Representatives expressly for use in the
Prospectus as amended or supplemented relating to such Securities or
Warrants;
(d) Neither the Company nor any of its subsidiaries has sustained since
the date of the latest audited financial statements included or incorporated
by reference in the Prospectus any loss or interference with its business
from fire, explosion, flood or other calamity, whether or not covered by
insurance, or from any labor dispute or court or governmental action, order
or decree, otherwise than as set forth or contemplated in the Prospectus,
which event is material to the Company and its subsidiaries, taken as a
whole; and, since the respective dates as of which information is given in
the Registration Statement and the Prospectus, there has not been any change
in the capital stock (other than the repurchase of shares pursuant to Rule
10b-18 of the Exchange Act and the issuance of shares under the Company's
stock option, stock award, restricted stock, dividend reinvestment, or
savings plans or upon conversion of outstanding convertible debt of the
Company) or long-term obligations of the Company or any of its subsidiaries
which are material to the Company and its subsidiaries taken as a whole or
any material adverse change, or any development involving a prospective
material adverse change, in or affecting the general affairs, management,
financial position, stockholders' equity or results of operations of the
Company and its subsidiaries taken as a whole, otherwise than as set forth or
contemplated in the Prospectus;
(e) The Company has been duly incorporated and is validly existing as a
corporation in good standing under the laws of the State of New Jersey, with
power and authority (corporate and other) to own its properties and conduct
its business as described in the Prospectus and is duly qualified as a
foreign corporation for the transaction of business and in good standing
under the laws of each other jurisdiction in which it owns or leases
properties, or conducts any business, so as to require such qualification;
and each subsidiary of the Company has been duly incorporated and is validly
existing as a corporation in good standing under the laws of its jurisdiction
of incorporation and is duly qualified as a foreign corporation for the
transaction of business and in good standing under the laws of each other
jurisdiction in which it owns or leases properties, or conducts any business,
so as to require such qualification except in those instances with respect to
the Company and its subsidiaries where failure to be so qualified would not
have a material adverse effect on the business or financial condition of the
Company and its subsidiaries taken as a whole;
(f) The Company has an authorized capitalization as set forth in the
Prospectus, and all of the issued shares of capital stock of the Company have
been duly and validly authorized and issued and are fully paid and non-
assessable and all of the issued shares of capital stock of each subsidiary
of the Company have been duly and validly authorized and issued, are fully
paid and non-assessable and (except for directors' qualifying shares and
minority interests reflected in the Company's consolidated financial
statements included or incorporated in the Prospectus) are
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owned directly or indirectly by the Company, free and clear of all liens,
encumbrances, equities or claims;
(g) The Securities and Warrants have been duly authorized, and, when
Designated Securities are issued and delivered pursuant to this Agreement and
the Pricing Agreement with respect to such Designated Securities, such
Designated Securities will have been duly executed, authenticated, issued
and delivered and will constitute valid and legally binding obligations of
the Company entitled to the benefits provided by the Indenture or the Warrant
Agreement, as the case may be, which will be substantially in the forms filed
as exhibits to the Registration Statement or such other form as shall have
previously been agreed to by the Representatives; the Indenture has been duly
authorized and duly qualified under the Trust Indenture Act and, at the Time
of Delivery (as defined in Section 4 hereof) for such Designated Securities,
the Indenture will constitute a valid and legally binding instrument,
enforceable in accordance with its terms, subject, as to enforcement, to
bankruptcy, insolvency, reorganization and other laws of general
applicability relating to or affecting creditors' rights and to general
equity principles; when Securities have been issued and delivered upon
exercise of the Warrants pursuant to the Warrant Agreement, such Securities
will have been duly executed, authenticated, issued and delivered and will
constitute valid and legally binding obligations of the Company entitled to
the benefits provided by the Indenture; at the Time of Delivery for such
Designated Securities (as defined in Section 4 hereof), the Warrant Agreement
will constitute a valid and legally binding instrument, enforceable in
accordance with its terms, subject, as to enforcement, to bankruptcy,
insolvency, reorganization and other laws of general applicability relating
to or affecting creditors' rights and to general equity principles; and the
Indenture and Warrant Agreement conform, and the Designated Securities will
conform, to the descriptions thereof contained in the Prospectus as amended
or supplemented with respect to such Designated Securities;
(h) The issue and sale of the Securities and Warrants and the compliance
by the Company with all of the provisions of the Securities, the Indenture,
the Warrants, the Warrant Agreement, this Agreement and any Pricing
Agreement, and the consummation of the transactions herein and therein
contemplated will not conflict with or result in a breach or violation of any
of the terms or provisions of, or constitute a default under, any indenture,
mortgage, deed of trust, loan agreement or other agreement or instrument to
which the Company or any of its subsidiaries is a party or by which the
Company or any of its subsidiaries is bound or to which any of the property
or assets of the Company or any of its subsidiaries is subject, nor will such
action result in any violation of the provisions of the Certificate of
Incorporation, as amended, or By-laws of the Company or any statute or any
order, rule or regulation of any court or governmental agency or body having
jurisdiction over the Company or any of its subsidiaries or any of their
respective properties; and no consent, approval, authorization, order,
registration or qualification of or with any such court or governmental
agency or body is required for the issue and sale of the Securities or the
Warrants or the consummation by the Company of the transactions contemplated
by this Agreement or any Pricing Agreement, the Indenture or the Warrant
Agreement, except such as have been, or will have been prior to the Time of
Delivery, obtained under the Act and the Trust Indenture Act and such
consents, approvals, authorizations, registrations or qualifications as may
be required under state securities or Blue Sky laws in connection with the
purchase and distribution of the Securities or Warrants by the Underwriters;
and
(i) Other than as set forth in the Prospectus, there are no legal or
governmental proceedings pending to which the Company or any of its
subsidiaries is a party or of which any property of the Company or any of its
subsidiaries is the subject (other than litigation incidental to the kind of
business conducted by the Company and its subsidiaries) which, if determined
adversely to the Company or any of its subsidiaries, would individually or in
the aggregate have a material adverse effect on the consolidated financial
position, stockholders' equity or results of operations of the Company and
its subsidiaries taken as a whole; and, to the best of the Company's
knowledge, no
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such proceedings are threatened or contemplated by governmental authorities
or threatened by others.
3. Upon the execution of the Pricing Agreement applicable to any Designated
Securities and authorization by the Representatives of the release of such
Designated Securities, the several Underwriters propose to offer such
Designated Securities for sale upon the terms and conditions set forth in the
Prospectus as amended or supplemented.
4. Designated Securities to be purchased by each Underwriter pursuant to the
Pricing Agreement relating thereto, in definitive form to the extent
practicable, and in such authorized denominations and registered in such names
as the Representatives may request upon at least forty-eight hours' prior notice
to the Company, shall be delivered by or on behalf of the Company to the
Representatives for the account of such Underwriter, against payment by such
Underwriter or on its behalf of the purchase price therefor by certified or
official bank check or checks, payable to the order of the Company in the funds
specified in such Pricing Agreement, all at the place and time and date
specified in such Pricing Agreement or at such other place and time and date as
the Representatives and the Company may agree upon in writing, such time and
date being herein called the "Time of Delivery" for such Securities.
5. The Company agrees with each of the Underwriters of any Designated
Securities:
(a) To prepare the Prospectus as amended and supplemented in relation to
the applicable Designated Securities in a form approved by the
Representatives and to file such Prospectus pursuant to Rule 424(b) under the
Act not later than the Commission's close of business on the second business
day following the execution and delivery of the Pricing Agreement relating to
the applicable Designated Securities or, if applicable, such earlier time as
may be required by Rule 424(b); to make no further amendment or any
supplement to the Registration Statement or Prospectus as amended or
supplemented after the date of the Pricing Agreement relating to such
Securities and prior to the Time of Delivery for such Designated Securities
which shall be disapproved by the Representatives for such Designated
Securities promptly after reasonable notice thereof; to advise the
Representatives promptly of any such amendment or supplement after such Time
of Delivery and furnish the Representatives with copies thereof; to file
promptly all reports and any definitive proxy or information statements
required to be filed by the Company with the Commission pursuant to Section
13(a), 13(c), 14 or 15(d) of the Exchange Act for so long as the delivery of
a prospectus is required in connection with the offering or sale of such
Designated Securities, and during such same period to advise the
Representatives, promptly after it receives notice thereof, of the time when
any amendment to the Registration Statement has been filed or becomes
effective or any supplement to the Prospectus or any amended Prospectus has
been filed with the Commission, of the issuance by the Commission of any stop
order or of any order preventing or suspending the use of any prospectus
relating to the Securities or Warrants, of the suspension of the
qualification of such Securities or Warrants for offering or sale in any
jurisdiction, of the initiation or threatening of any proceeding for any such
purpose, or of any request by the Commission for the amending or
supplementing of the Registration Statement or Prospectus or for additional
information; and, in the event of the issuance of any such stop order or of
any such order preventing or suspending the use of any prospectus relating to
the Securities or Warrants or suspending any such qualification, to use
promptly its best efforts to obtain its withdrawal;
(b) Promptly from time to time to take such action as the Representatives
may reasonably request to qualify such Securities and Warrants for offering
and sale under the securities laws of such jurisdictions as the
Representatives may request and to comply with such laws so as to permit the
continuance of sales and dealings therein in such jurisdictions for as long
as may be necessary to complete the distribution of such Securities and
Warrants, provided that in connection therewith the Company shall not be
required to qualify as a foreign corporation or to file a general consent to
service of process in any jurisdiction;
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(c) To furnish the Underwriters with copies of the Prospectus as amended
or supplemented in such quantities as the Representatives may from time to
time reasonably request, and, if the delivery of a prospectus is required at
any time in connection with the offering or sale of the Designated Securities
and if at such time any event shall have occurred as a result of which the
Prospectus as then amended or supplemented would include an untrue statement
of a material fact or omit to state any material fact necessary in order to
make the statements therein, in the light of the circumstances under which
they were made when such Prospectus is delivered, not misleading, or, if for
any other reason it shall be necessary during such same period 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 Act,
the Exchange Act or the Trust Indenture Act, to notify the Representatives
and upon their request to file such document and to prepare and furnish
without charge to each Underwriter and to any dealer in securities as many
copies as the Representatives may from time to time reasonably request of an
amended Prospectus or a supplement to the Prospectus which will correct such
statement or omission or effect such compliance and in case the
Representatives or any of the Underwriters or any dealer in securities is
required to deliver a prospectus in connection with sales of any Designated
Securities at any time nine months or more after the time of issue of the
Prospectus as amended or supplemented relating to such Designated Securities,
then upon the request of the Representatives, but at the expense of the
Representatives, the relevant Underwriters or the relevant dealers in
securities, as the case may be, the Company shall prepare and deliver to the
Representatives, such Underwriters or such dealers in securities as many
copies as the Representatives may request of any amended or supplemented
prospectus complying with Section 10(a)(3) of the Act;
(d) To make generally available to its securityholders as soon as
practicable, but in any event not later than eighteen months after the
effective date of the Registration Statement (as defined in Rule 158(c)), an
earnings statement of the Company and its subsidiaries (which need not be
audited) complying with Section 11 (a) of the Act and the rules and
regulations of the Commission thereunder (including at the option of the
Company Rule 158); and
(e) During the period beginning from the date of the Pricing Agreement
for such Designated Securities and continuing to and including the earlier of
(i) the termination of trading restrictions for such Designated Securities,
as notified to the Company by the Representatives and (ii) the Time of
Delivery for such Designated Securities, not to offer, sell, contract to sell
or otherwise dispose of any debt securities of the Company which mature more
than one year after such Time of Delivery and which are substantially similar
to such Designated Securities, without the prior written consent of the
Representatives.
6. The Company covenants and agrees with the several Underwriters that the
Company will pay or cause to be paid the following: (i) the fees, disbursements
and expenses of the Company's counsel and accountants in connection with the
registration of the Securities and Warrants under the Act and all other expenses
in connection with the preparation, printing and filing of the Registration
Statement, any Preliminary Prospectus and the Prospectus and amendments and
supplements thereto and the mailing and delivering of copies thereof to the
Underwriters and dealers; (ii) the cost of printing or producing this Agreement,
any Pricing Agreement, any Indenture, any Blue Sky and Legal Investment
Memoranda and any other documents in connection with the offering, purchase,
sale and delivery of the Securities and Warrants; (iii) all expenses in
connection with the qualification of the Securities and Warrants for offering
and sale under state securities laws as provided in Section 5(b) hereof,
including the reasonable fees and disbursements of counsel for the Underwriters
in connection with such qualification and in connection with the Blue Sky and
legal investment surveys; (iv) any fees charged by securities rating services
for rating the Securities; (v) the cost of preparing the Securities or Warrants;
(vi) the fees and expenses of any Trustee or Warrant Agent and any agent of any
Trustee or Warrant Agent and the fees and disbursements of counsel for any
Trustee or Warrant Agent in connection with any Indenture, Warrant Agreement,
the Securities and the Warrants; and (vii) all other
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costs and expenses incident to the Company's performance of its obligations
hereunder which are not otherwise specifically provided for in this Section. It
is understood, however, that, except as provided in this Section, Section 8 and
Section 11 hereof, the Underwriters will pay all of their own costs and
expenses, including the fees of their counsel, transfer taxes on resale of any
of the Securities by them, and any advertising expenses connected with any
offers they may make.
7. The obligations of the Underwriters of any Designated Securities under
the Pricing Agreement relating to such Designated Securities shall be subject,
in the discretion of the Representatives, to the condition that all
representations and warranties and other statements of the Company in or
incorporated by reference in the Pricing Agreement relating to such Designated
Securities are, at and as of the Time of Delivery for such Designated
Securities, true and correct, the condition that the Company shall have
performed all of its obligations hereunder theretofore to be performed, and the
following additional conditions:
(a) The Prospectus as amended or supplemented in relation to the
applicable Designated Securities shall have been filed with the Commission
pursuant to Rule 424(b) within the applicable time period prescribed for such
filing by the rules and regulations under the Act and in accordance with
Section 5(a) 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 Representatives' reasonable
satisfaction;
(b) Counsel for the Underwriters shall have furnished to the
Representatives such opinion or opinions, dated the Time of Delivery for such
Designated Securities, with respect to the incorporation of the Company, the
validity of the Indenture and any Warrant Agreement, the Designated
Securities, the Registration Statement, the Prospectus as amended or
supplemented and other related matters as the Representatives may reasonably
request, and such counsel shall have received such papers and information as
they may reasonably request to enable them to pass upon such matters;
(c) The General Counsel for the Company or Counsel for the Company
satisfactory to the Representatives shall have furnished to the
Representatives their written opinion, dated the Time of Delivery for such
Designated Securities, in form and substance reasonably satisfactory to the
Representatives, to the effect that:
(i) The Company has been duly incorporated and is validly existing as
a corporation in good standing under the laws of the State of New Jersey,
with power and authority (corporate and other) to own its properties and
conduct its business as described in the Prospectus as amended or
supplemented;
(ii) The Company has been duly qualified as a foreign corporation for
the transaction of business and is in good standing under the laws of each
jurisdiction other than that of its incorporation in which it owns or
leases properties, or conducts any business, so as to require such
qualification and where the failure to so qualify would have a material
adverse effect on the Company (such counsel being entitled to rely in
respect of the opinion in this clause upon opinions of local counsel and
in respect of matters of fact upon certificates of officers of the
Company, provided that such counsel shall state that such counsel believes
that both the Representatives and such counsel are justified in relying
upon such opinions and certificates);
(iii) The Company has an authorized capitalization as set forth in the
Prospectus as amended or supplemented and all of the issued shares of
capital stock of the Company have been duly and validly authorized and
issued and are fully paid and non-assessable;
(iv) Each subsidiary of the Company has been duly incorporated and is
validly existing as a corporation in good standing under the laws of its
jurisdiction of incorporation and has been duly qualified as a foreign
corporation for the transaction of business and is in good
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standing under the laws of each other jurisdiction in which it owns or
leases properties, or conducts any business, so as to require such
qualification and where the failure to so qualify would have a material
adverse effect on the Company and its subsidiaries taken as a whole; and
all of the issued shares of capital stock of each such subsidiary have
been duly and validly authorized and issued, are fully paid and non-
assessable and (except for directors' qualifying shares and minority
interests reflected in the Company's consolidated financial statements
included or incorporated in the Prospectus) are owned directly or
indirectly by the Company, free and clear of all liens, encumbrances,
equities or claims (such counsel being entitled to rely in respect of the
opinion in this clause upon opinions of local counsel and in respect of
matters of fact upon certificates of officers of the Company or its
subsidiaries, provided that such counsel shall state that such counsel
believes that both the Representatives and such counsel are justified in
relying upon such opinions and certificates);
(v) To the best of such counsel's knowledge and other than as set
forth in the Prospectus, there are no legal or governmental proceedings
pending to which the Company or any of its subsidiaries is a party or of
which any property of the Company or any of its subsidiaries is the
subject (other than litigation incident to the kind of business conducted
by the Company and its subsidiaries) which, if determined adversely to the
Company or any of its subsidiaries, would individually or in the aggregate
have a material adverse effect on the Company and its subsidiaries taken
as a whole; and, to the best of such counsel's knowledge, no such
proceedings are threatened or contemplated by governmental authorities or
threatened by others;
(vi) This Agreement and the Pricing Agreement with respect to the
Designated Securities have been duly authorized, executed and delivered by
the Company;
(vii) The Designated Securities have been duly authorized, executed,
authenticated or countersigned, issued and delivered and constitute valid
and legally binding obligations of the Company entitled to the benefits
provided by the Indenture or the Warrant Agreement; and the Designated
Securities and the Indenture conform to the descriptions thereof in the
Prospectus as amended or supplemented;
(viii) The Indenture has been duly authorized, executed and delivered
by the Company and constitutes a valid and legally binding instrument,
enforceable in accordance with its terms, subject, as to enforcement, to
bankruptcy, insolvency, reorganization and other laws of general
applicability relating to or affecting creditors' rights and to general
equity principles; and the Indenture has been duly qualified under the
Trust Indenture Act;
(ix) When Securities have been issued and delivered upon exercise of
the Warrants pursuant to the Warrant Agreement, such Securities will have
been duly executed, authenticated, issued and delivered and will
constitute valid and legally binding obligations of the Company entitled
to the benefits provided by the Indenture; the Warrant Agreement
constitutes a valid and legally binding instrument, enforceable in
accordance with its terms, subject, as to enforcement, to bankruptcy,
insolvency, reorganization and other laws of general applicability
relating to or affecting creditors' rights and to general equity
principles; and the Warrant Agreement conforms, and the Securities
issuable upon exercise of the Warrants will conform, to the descriptions
thereof contained in the Prospectus as amended or supplemented with
respect to such Designated Securities;
(x) The issue and sale of the Designated Securities and the compliance
by the Company with all of the provisions of the Designated Securities,
the Indenture, the Warrant Agreement, this Agreement and the Pricing
Agreement with respect to the Designated Securities and the consummation
of the transactions herein and therein contemplated will not conflict with
or result in a breach or violation of any of the terms or provisions of,
or constitute a default under, any indenture, mortgage, deed of trust,
loan agreement or other agreement or
-8-
<PAGE>
instrument known to such counsel to which the Company or any of its
subsidiaries is a party or by which the Company or any of its subsidiaries
is bound or to which any of the property or assets of the Company or any
of its subsidiaries is subject, nor will such actions result in any
violation of the provisions of the Certificate of Incorporation, as
amended, or By-laws of the Company or any statute or any order, rule or
regulation known to such counsel of any court or governmental agency or
body having jurisdiction over the Company or any of its subsidiaries or
any of their properties;
(xi) No consent, approval, authorization, order, registration or
qualification of or with any such court or governmental agency or body is
required for the issue and sale of the Designated Securities or the
consummation by the Company of the transactions contemplated by this
Agreement or such Pricing Agreement, the Indenture or the Warrant
Agreement, except such as have been obtained under the Act and the Trust
Indenture Act and such consents, approvals, authorizations, registrations
or qualifications as may be required under state securities or Blue Sky
laws in connection with the purchase and distribution of the Designated
Securities by the Underwriters;
(xii) The documents incorporated by reference in the Prospectus as
amended or supplemented (other than the financial statements and related
schedules or other financial data included or incorporated by reference
therein, as to which such counsel need express no opinion), when they
became effective or were filed with the Commission, as the case may be,
complied as to form in all material respects with the requirements of the
Act or the Exchange Act, as applicable, and the rules and regulations of
the Commission thereunder; and such counsel has no reason to believe that
any of such documents, when they became effective or were so filed, as the
case may be, contained, in the case of a registration statement which
became effective under the Act, 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, in the case
of other documents which were filed under the Act or the Exchange Act with
the Commission, an untrue statement of a material fact or omitted to state
a material fact necessary in order to make the statements therein, in the
light of the circumstances under which they were made when such documents
were so filed, not mislead ing; and
(xiii) The Registration Statement and the Prospectus as amended or
supplemented and any further amendments and supplements thereto made by
the Company prior to the Time of Delivery for the Designated Securities
(other than the financial statements and related schedules or other
financial data included or incorporated by reference therein, as to which
such counsel need express no opinion) comply as to form in all material
respects with the requirements of the Act and the Trust Indenture Act and
the rules and regulations thereunder; such counsel has no reason to
believe that, as of its effective date, the Registration Statement or any
further amendment thereto made by the Company prior to the Time of
Delivery (other than the financial statements and related schedules or
other financial data included or incorporated by reference therein, as to
which such counsel need express no opinion) 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, as of its date, the Prospectus as amended or supplemented or any
further amendment or supplement thereto made by the Company prior to the
Time of Delivery (other than the financial statements and related
schedules or other financial data included or incorporated by reference
therein, as to which such counsel need express no opinion) contained an
untrue statement of a material fact or omitted to state a material fact
necessary to make the statements therein, in light of the circumstances in
which they were made, not misleading or that, as of the Time of Delivery,
either the Registration Statement or the Prospectus as amended or
supplemented or any further amendment or supplement thereto made by the
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<PAGE>
Company prior to the Time of Delivery (other than the financial statements
and related schedules or other financial data included or incorporated by
reference therein, as to which such counsel need express no opinion)
contains an untrue statement of a material fact or omits to state a
material fact necessary to make the statements therein, in light of the
circumstances in which they were made, not misleading; and such counsel
does not know of any amendment to the Registration Statement required to
be filed or any contracts or other documents of a character required to be
filed as an exhibit to the Registration Statement or required to be
incorporated by reference into the Prospectus as amended or supplemented
or required to be described in the Registration Statement or the
Prospectus as amended or supplemented which are not filed or incorporated
by reference or described as required;
(d) At the Time of Delivery for such Designated Securities, the
independent accountants of the Company who have certified the financial
statements of the Company and its subsidiaries included or incorporated by
reference in the Registration Statement shall have furnished to the
Representatives a letter dated such Time of Delivery to the effect set forth
in Annex II hereto, and as to such other matters as the Representatives may
reasonably request and in form and substance satisfactory to the
Representatives;
(e) (i) Neither the Company nor any of its subsidiaries shall have
sustained since the date of the latest audited financial statements included
or incorporated by reference in the Prospectus as amended or supplemented any
loss or interference with its business from fire, explosion, flood or other
calamity, whether or not covered by insurance, or from any labor dispute or
court or governmental action, order or decree, otherwise than as set forth or
contemplated in the Prospectus as amended or supplemented, and (ii) since the
respective dates as of which information is given in the Prospectus as
amended or supplemented there shall not have been any change in the capital
stock (other than issuance of shares under the Company's option, stock award
or savings plans or upon conversion of outstanding convertible debt of the
Company) or long-term debt of the Company or any of its subsidiaries or any
change, or any development involving a prospective change, in or affecting
the general affairs, management, financial position, stockholders' equity or
results of operations of the Company and its subsidiaries, otherwise than as
set forth or contemplated in the Prospectus as amended or supplemented, the
effect of which, in any such case described in Clause (i) or (ii), is in the
judgment of the Representatives so material and adverse as to make it
impracticable or inadvisable to proceed with the public offering or the
delivery of the Designated Securities on the terms and in the manner
contemplated in the Prospectus as amended or supplemented;
(f) On or after the date of the Pricing Agreement relating to the
Designated Securities no downgrading shall have occurred in the rating
accorded the Company's debt securities by any "nationally recognized
statistical rating organization," as that term is defined by the Commission
for purposes of Rule 436(g) (2) under the Act;
(g) On or after the date of the Pricing Agreement relating to the
Designated Securities there shall not have occurred any of the following:
(i) a suspension or material limitation in trading in securities generally on
the New York Stock Exchange; (ii) a general moratorium on commercial banking
activities in New York declared by either Federal or New York State
authorities; or (iii) the outbreak or escalation of hostilities involving the
United States or the declaration by the United States of a national emergency
or war, if the effect of any such event specified in this clause (iii) in the
judgment of the Representatives makes it impracticable or inadvisable to
proceed with the public offering or the delivery of the Designated Securities
on the terms and in the manner contemplated by the Prospectus as amended and
supplemented; and
(h) The Company shall have furnished or caused to be furnished to the
Representatives at the Time of Delivery for the Designated Securities
certificates of officers of the Company reasonably satisfactory to the
Representatives as to the accuracy of the representations and warranties of
the
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<PAGE>
Company herein at and as of such Time of Delivery, as to the performance
by the Company of all of its obligations hereunder to be performed at or
prior to such Time of Delivery, as to the matters set forth in subsections
(a) and (e) of this Section and as to such other matters as the
Representatives may reasonably request.
8. (a) The Company will indemnify and hold harmless each Underwriter
against any losses, claims, damages or liabilities, joint or several, to which
such Underwriter may become subject, under the Act or otherwise, insofar as such
losses, claims, damages or liabilities (or actions in respect thereof) arise out
of or are based upon an untrue statement or alleged untrue statement of a
material fact contained in any Preliminary Prospectus, any preliminary
prospectus supplement, the Registration Statement, the Prospectus as amended or
supplemented and any other prospectus relating to the Securities or Warrants, or
any amendment or supplement thereto, or arise out of or are based upon the
omission or alleged omission to state therein a material fact required to be
stated therein or necessary to make the statements therein not misleading, and
will reimburse each Underwriter for any legal or other expenses reasonably
incurred by such Underwriter in connection with investigating or defending any
such action or claim as such expenses are incurred; provided, however, that the
Company shall not be liable in any such case to the extent that any such loss,
claim, damage or liability arises out of or is based upon an untrue statement or
alleged untrue statement or omission or alleged omission made in any Preliminary
Prospectus, any preliminary prospectus supplement, the Registration Statement,
the Prospectus as amended or supplemented and any other prospectus relating to
the Securities or Warrants, or any such amendment or supplement in reliance upon
and in conformity with written information furnished to the Company by any
Underwriter of Designated Securities through the Representatives expressly for
use in the Prospectus as amended or supplemented relating to such Securities or
Warrants and provided, further, that the Company shall not be liable to any
Underwriter under the indemnity of this subsection (a) with respect to any
Preliminary Prospectus to the extent that any such loss, claim, damage or
liability of such Underwriter results from the fact that such Underwriter sold
Designated Securities to a person to whom there was not sent or given at or
prior to the written confirmation of such sale, a copy of the Prospectus as
amended or supplemented relating to such Designated Securities (excluding
documents incorporated by reference) if the Company has previously furnished
copies thereof to such Underwriter.
(b) Each Underwriter will indemnify and hold harmless the Company against
any losses, claims, damages or liabilities to which the Company may become
subject, under the Act or otherwise, insofar as such losses, claims, damages or
liabilities (or actions in respect thereof) arise out of or are based upon an
untrue statement or alleged untrue statement of a material fact contained in any
Preliminary Prospectus, any preliminary prospectus supplement, the Registration
Statement, the Prospectus as amended or supplemented and any other prospectus
relating to the Securities or Warrants, or any amendment or supplement thereto,
or arise out of or are based upon the omission or alleged omission to state
therein a material fact required to be stated therein or necessary to make the
statements therein not misleading, in each case to the extent, but only to the
extent, that such untrue statement or alleged untrue statement or omission or
alleged omission was made in any Preliminary Prospectus, any preliminary
prospectus supplement, the Registration Statement, the Prospectus as amended or
supplemented and any other prospectus relating to the Securities or Warrants, or
any such amendment or supplement in reliance upon and in conformity with written
information furnished to the Company by such Underwriter through the
Representatives expressly for use therein; and will reimburse the Company for
any legal or other expenses reasonably incurred by the Company in connection
with investigating or defending any such action or claim as such expenses are
incurred.
(c) Promptly after receipt by an indemnified party under subsection (a) or
(b) above of notice of the commencement of any action, such indemnified party
shall, if a claim in respect thereof is to be made against the indemnifying
party under such subsection, notify the indemnifying party in writing of the
commencement thereof; but the omission so to notify the indemnifying party shall
not relieve it from any liability which it may have to any indemnified party
otherwise than under such subsection. In case
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<PAGE>
any such action shall be brought against any indemnified party and it shall
notify the indemnifying party of the commencement thereof, the indemnifying
party shall be entitled to participate therein and, to the extent that it shall
wish, jointly with any other indemnifying party similarly notified, to assume
the defense thereof, with counsel satisfactory to such indemnified party (who
shall not, except with the consent of the indemnified party, be counsel to the
indemnifying party) provided that in the event of such assumption the action may
not be compromised or settled by the indemnifying party without the consent of
the indemnified party, which consent shall not be unreasonably withheld. After
notice from the indemnifying party to such indemnified party of its election so
to assume the defense thereof, the indemnifying party shall not be liable to
such indemnified party under such subsection for any legal expenses of other
counsel or any other expenses, in each case subsequently incurred by such
indemnified party, in connection with the defense thereof other than reasonable
costs of investigation. The indemnifying party shall not be liable to the
indemnified party pursuant to the provisions of this Section 8 in respect of any
action compromised or settled by the indemnified party, unless the written
consent of the indemnifying party shall have been obtained to such compromise or
settlement (which consent shall not be unreasonably withheld).
(d) If the indemnification provided for in this Section 8 is unavailable to
or insufficient to hold harmless an indemnified party under subsection (a) or
(b) above in respect of any losses, claims, damages or liabilities (or actions
in respect thereof) referred to therein, then each indemnifying party shall
contribute to the amount paid or payable by such indemnified party as a result
of such losses, claims, damages or liabilities (or actions in respect thereof)
in such proportion as is appropriate to reflect the relative benefits received
by the Company on the one hand and the Underwriters of the Designated Securities
on the other from the offering of the Designated Securities to which such loss,
claim, damage or liability (or action in respect thereof) relates. If, however,
the allocation provided by the immediately preceding sentence is not permitted
by applicable law or if the indemnified party failed to give the notice required
under subsection (c) above, then each indemnifying party shall contribute to
such amount paid or payable by such indemnified party in such proportion as is
appropriate to reflect not only such relative benefits but also the relative
fault of the Company on the one hand and the Underwriters of the Designated
Securities on the other in connection with the statements or omissions which
resulted in such losses, claims, damages or liabilities (or actions in respect
thereof), as well as any other relevant equitable considerations. The relative
benefits received by the Company on the one hand and such Underwriters on the
other shall be deemed to be in the same proportion as the total net proceeds
from such offering (before deducting expenses) received by the Company bear to
the total underwriting discounts and commissions received by such Underwriters.
The relative fault shall be determined by reference to, among other things,
whether the untrue or alleged untrue statement of a material fact or the
omission or alleged omission to state a material fact relates to information
supplied by the Company on the one hand or such Underwriters on the other and
the parties' relative intent, knowledge, access to information and opportunity
to correct or prevent such statement or omission. The Company and the
Underwriters agree that it would not be just and equitable if contribution
pursuant to this subsection (d) were determined by pro rata allocation (even if
the Underwriters were treated as one entity for such purpose) or by any other
method of allocation which does not take account of the equitable considera-
tions referred to above in this subsection (d). The amount paid or payable by
an indemnified party as a result of the losses, claims, damages or liabilities
(or actions in respect thereof) referred to above in this subsection (d) shall
be deemed to include any legal or other expenses reasonably incurred by such
indemnified party in connection with investigating or defending any such action
or claim. Notwithstand ing the provisions of this subsection (d), no
Underwriter shall be required to contribute any amount in excess of the amount
by which the total price at which the applicable Designated 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. 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
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<PAGE>
Underwriters of Designated Securities in this subsection (d) to contribute are
several in proportion to their respective underwriting obligations with respect
to such Securities and not joint.
(e) The obligations of the Company under this Section 8 shall be in addition
to any liability which the Company may otherwise have and shall extend, upon the
same terms and conditions, to each person, if any, who controls any Underwriter
within the meaning of the Act; and the obligations of the Underwriters under
this Section 8 shall be in addition to any liability which the respective
Underwriters may otherwise have and shall extend, upon the same terms and
conditions, to each officer and director of the Company and to each person, if
any, who controls the Company within the meaning of the Act.
9. (a) If any Underwriter shall default in its obligation to purchase the
Designated Securities which it has agreed to purchase under the Pricing
Agreement relating to such Designated Securities, the Representatives may in
their discretion arrange for themselves or another party or other parties to
purchase such Designated Securities on the terms contained herein. If within
thirty-six hours after such default by any Underwriter the Representatives do
not arrange for the purchase of such Designated Securities, then the Company
shall be entitled to a further period of thirty-six hours within which to
procure another party or other parties satisfactory to the Representatives to
purchase such Designated Securities on such terms. In the event that, within
the respective prescribed period, the Representatives notify the Company that
they have so arranged for the purchase of such Designated Securities, or the
Company notifies the Representatives that it has so arranged for the purchase of
such Designated Securities, the Representatives or the Company shall have the
right to postpone the Time of Delivery for such Designated Securities for a
period of not more than seven days, in order to effect whatever changes may
thereby be made necessary in the Registration Statement or the Prospectus as
amended or supplemented, or in any other documents or arrangements, and the
Company agrees to file promptly any amendments or supplements to the
Registration Statement or the Prospectus which in the opinion of the
Representatives may thereby be made necessary. The term "Underwriter" as used
in this Agreement shall include any person substituted under this Section with
like effect as if such person had originally been a party to the Pricing
Agreement with respect to such Designated Securities.
(b) If, after giving effect to any arrangements for the purchase of the
Designated Securities of a defaulting Underwriter or Underwriters by the
Representatives and the Company as provided in subsection (a) above, the
aggregate principal amount of such Designated Securities which remains
unpurchased does not exceed one-eleventh of the aggregate principal amount of
the Designated Securities, then the Company shall have the right to require each
non-defaulting Underwriter to purchase the principal amount of Designated
Securities which such Underwriter agreed to purchase under the Pricing Agreement
relating to such Designated Securities and, in addition, to require each non-
defaulting Underwriter to purchase its pro rata share (based on the principal
amount of Designated Securities which such Underwriter agreed to purchase under
such Pricing Agreement) of the Designated Securities of such defaulting
Underwriter or Underwriters for which such arrangements have not been made; but
nothing herein shall relieve a defaulting Underwriter from liability for its
default.
(c) If, after giving effect to any arrangements for the purchase of the
Designated Securities of a defaulting Underwriter or Underwriters by the
Representatives and the Company as provided in subsection (a) above, the
aggregate principal amount of Designated Securities which remains unpurchased
exceeds one-eleventh of the aggregate principal amount of the Designated
Securities, as referred to in subsection (b) above, or if the Company shall not
exercise the right described in subsection (b) above to require non-defaulting
Underwriters to purchase Designated Securities of a defaulting Underwriter or
Underwriters, then the Pricing Agreement relating to such Designated Securities
shall thereupon terminate, without liability on the part of any non-defaulting
Underwriter or the Company, except for the expenses to be borne by the Company
and the Underwriters as provided in Section 6 hereof and the indemnity and
contribution agreements in Section 8 hereof; but nothing herein shall relieve a
defaulting Underwriter from liability for its default.
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<PAGE>
10. 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 Designated Securities.
11. If any Pricing Agreement shall be terminated pursuant to Section 9
hereof, the Company shall not then be under any liability to any Underwriter
with respect to the Designated Securities covered by such Pricing Agreement
except as provided in Section 6 and Section 8 hereof; but, if for any other
reason Designated Securities are not delivered by or on behalf of the Company as
provided herein, the Company will reimburse the Underwriters through the
Representatives for all out-of-pocket expenses approved in writing by the
Representatives, including fees and disbursements of counsel, reasonably
incurred by the Underwriters in making preparations for the purchase, sale and
delivery of such Designated Securities, but the Company shall then be under no
further liability to any Underwriter with respect to such Designated Securities
except as provided in Section 6 and Section 8 hereof.
12. In all dealings hereunder, the Representatives of the Underwriters of
Designated Securities shall act on behalf of each of such Underwriters, 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 such
Representatives jointly or by such of the Representatives, if any, as may be
designated for such purpose in the Pricing Agreement.
All statements, requests, notices and agreements hereunder shall be in
writing, and if to the Underwriters shall be delivered or sent by mail, telex
or facsimile transmission to the address of the Repre sentatives as set forth
in the Pricing Agreement; and if to the Company shall be delivered or sent by
mail, telex or facsimile transmission to the address of the Company set forth in
the Registration Statement: Attention: Secretary; provided, however, that any
notice to an Underwriter pursuant to Section 8(c) hereof shall be delivered or
sent by mail, telex or facsimile transmission 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
Representatives upon request. Any such statements, requests, notices or
agreements shall take effect upon receipt thereof.
13. This Agreement and each Pricing Agreement shall be binding upon, and
inure solely to the benefit of, the Underwriters, the Company and, to the extent
provided in Section 8 and Section 10 hereof, the officers and directors of the
Company and each person who controls the Company or any Underwriter, and their
respective heirs, executors, administrators, successors and assigns, and no
other person shall acquire or have any right under or by virtue of this
Agreement or any such Pricing Agreement. No purchaser of any of the
Securities from any Underwriter shall be deemed a successor or assign by reason
merely of such purchase.
14. Time shall be of the essence of each Pricing Agreement. As used herein,
"business day" shall mean any day when the Commission's office in Washington,
D.C. is open for business.
15. This Agreement and each Pricing Agreement shall be governed by and
construed in accordance with the laws of the State of New York.
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<PAGE>
16. This Agreement and each Pricing Agreement may be executed by any one or
more of the parties hereto and thereto in any number of counterparts, each of
which shall be deemed to be an original, but all such respective counterparts
shall together constitute one and the same instrument.
Very truly yours,
Becton, Dickinson and Company
/s/ Geoffrey D. Cheatham
By: ______________________________
Name: Geoffrey D. Cheatham
Title: Vice President and Treasurer
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<PAGE>
EXHIBIT 1(b)
Pricing Agreement
-----------------
Goldman, Sachs & Co.,
85 Broad Street,
New York, New York 10004
July 23, 1997
Dear Sirs:
Becton, Dickinson and Company, a New Jersey corporation (the "Company"),
proposes, subject to the terms and conditions stated herein and in the
Underwriting Agreement, dated July 23, 1997 (the "Underwriting Agreement"),
to issue and sell to the Underwriters named in Schedule 1 hereto (the
"Underwriters") the Securities specified in Schedule II hereto (the "Designated
Securities"). Each of the provisions of the Underwriting Agreement is
incorporated herein by reference in its 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; and each of the representations and warranties set forth
therein shall be deemed to have been made at and as of the date of this Pricing
Agreement, except that each representation and warranty which refers to the
Prospectus in Section 2 of the Underwriting Agreement shall be deemed to be a
representation or warranty as of the date of the Underwriting Agreement in
relation to the Prospectus (as therein defined), and also a representation and
warranty as of the date of this Pricing Agreement in relation to the Prospectus
as amended or supplemented relating to the Designated Securities which are the
subject of this Pricing Agreement. Each reference to the Representatives herein
and in the provisions of the Underwriting Agreement so incorporated by reference
shall be deemed to refer to you. Unless otherwise defined herein, terms defined
in the Underwriting Agreement are used herein as therein defined. The
Representatives designated to act on behalf of the Representatives and on behalf
of each of the Underwriters of the Designated Securities pursuant to Section 12
of the Underwriting Agreement and the address of the Representatives referred to
in such Section 12 are set forth at the end of Schedule II hereto.
An amendment to the Registration Statement, or a supplement to the
Prospectus, as the case may be, relating to the Designated Securities, in the
form heretofore delivered to you is now proposed to be filed with the
Commission.
Subject to the terms and conditions set forth herein and in the
Underwriting Agreement incorporated herein by reference, the Company agrees to
issue and sell to each of the Underwriters, and each of the Underwriters agrees,
severally and not jointly, to purchase from the Company, at the time and place
and at the purchase price to the Underwriters set forth in Schedule II hereto,
the principal amount of Designated Securities set forth opposite the name of
such Underwriter in Schedule I hereto.
If the foregoing is in accordance with your understanding, please sign
and return to us six counterparts hereof, and upon acceptance hereof by you, on
behalf of each of the Underwriters this letter and such
<PAGE>
acceptance hereof, including the provisions of the Underwriting Agreement
incorporated herein by reference, shall constitute a binding agreement between
each of the Underwriters and the Company.
Very truly yours,
Becton, Dickinson and Company
/s/ Geoffrey D. Cheatham
By: ___________________________
Name: Geoffrey D. Cheatham
Title: Vice President and Treasurer
Accepted as of the date herof:
/s/ Goldman, Sachs & Co.
______________________________
(Goldman, Sachs & Co.)
<PAGE>
SCHEDULE I
Principal
Amount of
Designated
Securities
to be
Underwriter Purchased
- ----------- ---------
Goldman, Sachs & Co. .............................. $200,000,000
------------
Total ............................ $200,000,000
============
<PAGE>
SCHEDULE II
Title of Designated Securities:
7% Debentures due August 1, 2027
Aggregate principal amount:
$200,000,000
Price to Public:
99.415% of the principal amount of the Designated Securities
Purchase Price by Underwriters:
98.540% of the principal amount of the Designated Securities
Form of Designated Securities
Book-entry only form represented by one or more global securities
deposited with The Depository Trust Company ("DTC") or its designated
custodian, to be made available for checking by the Representatives at
least twenty-four hours prior to the Time of Delivery at the office of
DTC.
Specified funds for payment of purchase price:
Federal (same day) funds
Indenture:
Indenture dated as of March 1, 1997 between the Company and The Chase
Manhattan Bank, as Trustee.
Maturity:
August 1, 2027
Interest Rate:
7%
Interest Payment Dates:
February 1 and August 1, commencing February 1, 1998
Redemption Provisions:
No provisions for redemption.
Sinking Fund Provisions:
No sinking fund provisions.
Defeasance provisions:
The defeasance provisions of the Indenture are applicable to the
Designated Securities.
Time of Delivery:
10:00 a.m. (New York City time), July 28, 1997.
<PAGE>
Closing Location:
Sullivan & Cromwell
125 Broad Street
New York, New York 10004
Names and addresses of Representatives:
Goldman, Sachs & Co.
85 Broad Street
New York, New York 10004
<PAGE>
EXHIBIT 4(a)
------------
CONFORMED COPY
===============================
BECTON, DICKINSON AND COMPANY
AND
THE CHASE MANHATTAN BANK,
TRUSTEE
----------------------------
INDENTURE
DATED AS OF MARCH 1, 1997
-----------------------------
===============================
<PAGE>
TABLE OF CONTENTS*
------------------
Page
----
RECITALS OF THE COMPANY............................................ 2
ARTICLE 1
Definitions and Incorporation by Reference
Section 1.01. Definitions......................................... 2
Section 1.02. Other Definitions................................... 7
Section 1.03. Incorporation by Reference of and Control by Trust
Indenture Act................................................ 8
Section 1.04. Rules of Construction............................... 9
ARTICLE 2
The Securities
Section 2.01. Form and Dating..................................... 9
Section 2.02. Execution and Authentication........................ 10
Section 2.03. Amount Unlimited; Issuable in Series................ 12
Section 2.04. Denominations and Interest Payments................. 15
Section 2.05. Registrar and Paying Agent.......................... 16
Section 2.06. Transfer and Exchange............................... 17
Section 2.07. Replacement Securities.............................. 19
Section 2.08. Outstanding Securities.............................. 19
Section 2.09. Temporary Securities................................ 20
Section 2.10. Cancellation........................................ 21
Section 2.11. CUSIP Numbers....................................... 21
Section 2.12. Defaulted Interest.................................. 21
Section 2.13. Persons Deemed Owners............................... 22
ARTICLE 3
Redemption and Repayment
Section 3.01. Applicability of Article............................ 23
Section 3.02. Notice of Redemption; Partial Redemptions........... 23
Section 3.03. Payment of Securities Called for Redemption......... 24
Section 3.04. Exclusion of Certain Securities from Eligibility for
Selection for Redemption..................................... 25
Section 3.05. Mandatory and Optional Sinking Funds................ 25
Section 3.06. Repayment........................................... 27
ARTICLE 4
Covenants
Section 4.01. Payment of Principal, Premium and Interest.......... 29
Section 4.02. Maintenance of Office or Agency..................... 29
Section 4.03. Money for Securities Payments to Be Held in Trust... 29
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Page
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Section 4.04. Restrictions on Secured Debt........................ 31
Section 4.05. Limitation on Sale and Leasebacks................... 33
Section 4.06. Statement by Officers as to Default; Notice of Certain
Events of Default............................................ 34
Section 4.07. Waiver of Certain Covenants......................... 35
ARTICLE 5
Successor Corporation
Section 5.01. When Company May Merge, Etc. ....................... 36
Section 5.02. Successor Substituted............................... 37
ARTICLE 6
Defaults and Remedies
Section 6.01. Events of Default................................... 37
Section 6.02. Acceleration........................................ 38
Section 6.03. Other Remedies...................................... 40
Section 6.04. Waiver of Past Defaults............................. 40
Section 6.05. Control of Majority................................. 40
Section 6.06. Limitation on Suits................................. 41
Section 6.07. Rights of Holders to Receive Payment................ 41
Section 6.08. Collection Suit by Trustee.......................... 41
Section 6.09. Trustee May File Proofs of Claim.................... 42
Section 6.10. Trustee May Enforce Claims Without Possession of
Securities................................................... 42
Section 6.11. Application of Proceeds............................. 43
Section 6.12. Restoration of Rights and Remedies.................. 43
Section 6.13. Undertaking for Costs............................... 44
Section 6.14. Rights and Remedies Cumulative...................... 44
Section 6.15. Delay or Omission Not Waiver........................ 44
Section 6.16. Waiver of Stay or Extension Laws.................... 44
ARTICLE 7
Trustee
Section 7.01. General............................................. 45
Section 7.02. Certain Rights of Trustee........................... 45
Section 7.03. Individual Rights of Trustee........................ 47
Section 7.04. Trustee's Disclaimer................................ 47
Section 7.05. Notice of Default................................... 47
Section 7.06. Reports by Trustee to Holders....................... 48
Section 7.07. Compensation and Indemnity.......................... 48
Section 7.08. Replacement of Trustee.............................. 49
Section 7.09. Successor Trustee by Merger, Etc.................... 50
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Section 7.10. Eligibility......................................... 50
Section 7.11. Money Held in Trust................................. 50
ARTICLE 8
Discharge of Indenture
Section 8.01. Defeasance Within One Year of Payment............... 51
Section 8.02. Defeasance.......................................... 52
Section 8.03. Covenant Defeasance................................. 53
Section 8.04. Application of Trust Money.......................... 54
Section 8.05. Reinstatement....................................... 54
ARTICLE 9
Amendments, Supplements and Waivers
Section 9.01. Without Consent of Holders.......................... 55
Section 9.02. With Consent of Holders............................. 55
Section 9.03. Revocation and Effect of Consent.................... 57
Section 9.04. Notation on or Exchange of Securities............... 57
Section 9.05. Trustee to Sign Amendments, Etc..................... 58
Section 9.06. Conformity with Trust Indenture Act................. 58
Section 9.07. Effect of Supplemental Indentures................... 58
ARTICLE 10
Miscellaneous
Section 10.01. Notices............................................ 58
Section 10.02. Certificate and Opinion as to Conditions Precedent. 59
Section 10.03. Statements Required in Certificate or Opinion...... 60
Section 10.04. Evidence of Ownership.............................. 60
Section 10.05. Rules by Trustee, Paying Agent or Registrar........ 60
Section 10.06. Payment Date Other than a Business Day............. 60
Section 10.07. Governing Law...................................... 61
Section 10.08. No Adverse Interpretation of Other Agreements...... 61
Section 10.09. Successors......................................... 61
Section 10.10. Duplicate Originals................................ 61
Section 10.11. Separability....................................... 61
Section 10.12. Table of Contents, Headings, Etc................... 61
Section 10.13. Incorporators, Stockholders, Officers and Directors
of Company Exempt from Individual Liability....................... 61
SIGNATURES......................................................... 62
<PAGE>
INDENTURE, dated as of March 1, 1997, between Becton, Dickinson and
Company, a New Jersey corporation, as the Company, and The Chase Manhattan Bank,
as Trustee.
RECITALS OF THE COMPANY
WHEREAS, the Company has duly authorized the issue from time to time of
its debentures, notes or other evidences of indebtedness to be issued in one or
more series (the "Securities") up to such principal amount or amounts as may
from time to time be authorized in accordance with the terms of this Indenture
and to provide, among other things, for the authentication, delivery and
administration thereof, the Company has duly authorized the execution and
delivery of this Indenture; and
WHEREAS, all things necessary to make this Indenture a valid indenture
and agreement according to its terms have been done;
NOW, THEREFORE:
In consideration of the premises and the purchases of the Securities by
the holders thereof, the Company and the Trustee mutually covenant and agree for
the equal and proportionate benefit of the respective holders from time to time
of the Securities or of any and all series thereof as follows:
ARTICLE 1
Definitions and Incorporation by Reference
Section 1.01. 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 the management and policies of such Person, directly or indirectly,
whether through the ownership of voting stock, by contract or otherwise; and the
terms "controlling" and "controlled" have meanings correlative to the foregoing.
"Agent" means any Registrar, Paying Agent, transfer agent or
Authenticating Agent.
"Attributable Debt" means as to any particular lease which the Company
or any Restricted Subsidiary is at any time liable as lessee and at any date as
of which
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the amount thereof is to be determined, the total net obligations of the lessee
for rental payments during the remaining term of the lease (including any period
for which such lease has been extended or may, at the option of the lessor, be
extended) discounted from the respective due dates thereof to such date at a
rate per annum equivalent to the interest rate inherent in such lease (as
determined in good faith by the Board of Directors of the Company) compounded
semi-annually.
"Authorized Newspaper" means The Wall Street Journal (Eastern Edition),
if practicable, and if not, another newspaper customarily published at least
once a day for at least five days in each calendar week and of general
circulation in The City of New York. If it shall be impractical in the opinion
of the Trustee to make any publication of any notice required hereby in an
Authorized Newspaper, any publication or other notice in lieu thereof which is
made or given with the approval of the Trustee shall constitute a sufficient
publication of such notice.
"Board of Directors" means either the board of directors of the Company
or any duly authorized committee of that board.
"Board Resolution" means one or more resolutions of the Board of
Directors of the Company or any authorized committee thereof, certified by the
secretary or an assistant secretary to have been duly adopted and to be in full
force and effect on the date of certification, and delivered to the Trustee.
"Business Day" means, with respect to any Security, any day, other than
a Saturday,Sunday, or a day on which banking institutions are authorized or
required by law or regulation to close in the place of payment of the principal
of, or any interest on, any such Security.
"Commission" means the U.S. Securities and Exchange Commission, as from
time to time constituted, created under the Exchange Act or, if at any time
after the execution of this instrument such Commission is not existing and
performing the duties now assigned to it under the Trust Indenture Act, then the
body performing such duties at such time.
"Company" means the party named as such in the first paragraph of this
Indenture until a successor replaces it pursuant to Article 5 of this Indenture
and thereafter means the successor.
"Consolidated Net Tangible Assets" with respect to any Person means, as
at any date of determination, the total amount of assets (less applicable
reserves and other properly deductible items) of such Person and its
Subsidiaries determined on a consolidated basis in conformity with GAAP and set
forth on the most recent consolidated balance sheet of such Person and its
Subsidiaries preceding such date of determination after deducting therefrom (a)
all current liabilities (excluding
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liabilities constituting Funded Debt by reason of being renewable or
extendible), (b) all goodwill, trade names, trademarks, patents, unamortized
debt discount and expense and other like intangibles, (c) investments in and
advances to Subsidiaries which are not Restricted Subsidiaries, and (d) minority
interests in the equity of Restricted Subsidiaries, all as determined on a
consolidated basis in conformity with GAAP and set forth on such most recent
consolidated balance sheet of such Person and its Subsidiaries.
"Corporate Trust Office" means the office of the Trustee at which the
corporate trust business of the Trustee shall, at any particular time, be
principally administered, which office is, at the date of this Indenture,
located at 450 West 33rd Street, New York, New York 10001-2697, Attention:
Global Trust Services.
"Debt" means notes, bonds, debentures or other similar evidences of
indebtedness for money borrowed.
"Default" means any Event of Default as defined in Section 6.01 and any
event that 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 the form of one or more Registered Global Securities, The
Depository Trust Company or any other Person designated as Depositary pursuant
to Section 2.03 with respect to such Securities, until a successor Depositary
shall have become such pursuant to the applicable provisions of this Indenture,
and thereafter "Depositary" shall mean or include each Person who is then a
Depositary hereunder and, if at any time there is more than one such Person,
"Depositary" as used with respect to the Securities of any such series shall
mean the Depositary with respect to the Registered Global Securities of that
series.
"Exchange Act" means the U.S. Securities Exchange Act of 1934, as
amended.
"Funded Debt" means (a) all indebtedness for money borrowed (including
the Securities) which by its terms matures more than twelve months after the
time of the computation of the amount thereof or which is extendible or
renewable at the option of the obligor on such indebtedness to a time more than
twelve months after the time of the computation of the amount thereof (excluding
any amount thereof which is included in current liabilities), (b) all
guarantees, direct or indirect, of any such indebtedness of others, other than
any guarantee of collection arising in the ordinary course of business, and (c)
all obligations in respect of lease rentals which, under generally accepted
accounting principles, are shown on a balance sheet of the obligor as a
liability item other than a current liability.
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"GAAP" means generally accepted accounting principles in the United
States of America at the date of any computation required or permitted
hereunder.
"Holder" or "Securityholder" means the registered holder of any
Security.
"Indenture" means this Indenture as originally executed or as it may be
amended or supplemented from time to time by one or more indentures supplemental
to this Indenture entered into pursuant to the applicable provisions of this
Indenture and shall include the forms and terms of the Securities of each series
established pursuant to Sections 2.01 and 2.03.
"Mortgage" means any mortgage, pledge, lien, conditional sale or other
title retention agreement or other similar encumbrance.
"Officers' Certificate" means a certificate signed (i) by the chairman
of the Board of Directors, the president or chief executive officer or a vice
president and (ii) by the chief financial officer, the treasurer or any
assistant treasurer, or the secretary or any assistant secretary, complying with
Section 10.03 and delivered to the Trustee.
"Opinion of Counsel" means a written opinion signed by legal counsel,
who may be an employee of or counsel to the Company, satisfactory to the
Trustee, complying with Section 10.03 and delivered to the Trustee.
"Original Issue Discount Security" means any Security that 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 6.02.
"Person" means an individual, a corporation, a partnership, a limited
liability company, an association, a trust or any other entity or organization,
including a government or political subdivision or an agency or instrumentality
thereof.
"principal" of a Security means the principal amount of, and, unless the
context indicates otherwise, includes any premium payable on, the Security.
"Principal Property" means any building, structure or other facility,
together with the land upon which it is erected and fixtures comprising a part
thereof, now owned or hereafter acquired by the Company or any Restricted
Subsidiary and used primarily for manufacturing, processing or warehousing and
located in the United States of America or the Commonwealth of Puerto Rico, the
gross book value (without deduction of any depreciation reserves) of which at
the time the determination is being made exceeds 2.0% of the Consolidated Net
Tangible Assets of the Company, other than any such building, structure or other
facility or portion thereof which, in the opinion of the Board of Directors of
the Company expressed in
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a Board Resolution, is not of material importance to the total business
conducted by the Company and its Restricted Subsidiaries as an entirety.
"Registered Global Security" means a Security evidencing all or a part
of a series of Securities, issued to the Depositary for such Securities in
accordance with Section 2.02, and bearing the legend prescribed in Section 2.02.
"Responsible Officer" means any officer of the Trustee within the
Corporate Trust Office of the Trustee including any vice president, assistant
vice president, secretary, assistant secretary or any other officer of the
Trustee customarily performing functions similar to those performed by any of
the above designated officers and also, with respect to a particular matter, any
other officer of the Trustee to whom such matter is referred because of such
officer's knowledge and familiarity with the particular subject.
"Restricted Subsidiary" means any Subsidiary (a) substantially all of
the property of which is located, and substantially all of the operations of
which are conducted in the United States of America or the Commonwealth of
Puerto Rico, and (b) which owns or leases a Principal Property, except a
Subsidiary which is primarily engaged in the business of a finance company.
"Securities" means any of the securities, as defined in the first
paragraph of the recitals hereof, that are authenticated and delivered under
this Indenture.
"Securities Act" means the U.S. Securities Act of 1933, as amended.
"Special Record Date" for the payment of any Defaulted Interest means a
date fixed by the Trustee pursuant to Section 2.12.
"Subsidiary" means, with respect to any Person, any corporation,
association or other business entity of which more than 50% of the outstanding
voting stock is owned, directly or indirectly, by such Person.
"Trust Indenture Act" means the U.S. Trust Indenture Act of 1939, as
amended, as in effect on the date hereof, except as provided in Section 9.06.
"Trustee" means the party named as such in the first paragraph of this
Indenture, not in its individual capacity but solely as Trustee, until a
successor replaces it with respect to the Securities of any series in accordance
with the provisions of Article 7 and thereafter means such successor, not in its
individual capacity but solely as Trustee, with respect to such Securities.
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"United States Bankruptcy Code" means the Bankruptcy Reform Act of 1978,
as amended and as codified in Title 11 of the United States Code, as amended
from time to time hereafter, or any successor federal bankruptcy law.
"U.S. Government Obligations" means securities that are (a) direct
obligations of the United States of America for the payment of which its full
faith and credit is pledged or (b) obligations of a Person controlled or
supervised by and acting as an agency or instrumentality of the United States of
America the payment of which is unconditionally guaranteed as a full faith and
credit obligation by the United States of America, which obligations (in the
case of clause (a) or clause (b)) are not callable or redeemable at the option
of the issuer thereof, and shall also include (c) a depository receipt issued by
a bank or trust company as custodian with respect to any such U.S. Government
Obligation (as specified in clauses (a) and (b) above) or a specific payment of
interest on or principal of any such U.S. Government Obligation (as specified in
clauses (a) and (b) above) held by such custodian for the account of the holder
of a depository receipt; provided that (except as required by law) such
custodian is not authorized to make any deduction from the amount payable to the
holder of such depository receipt from any amount received by the custodian in
respect of the U.S. Government Obligation or the specific payment of interest on
or principal of the U.S. Government Obligation evidenced by such depository
receipt.
"Yield to Maturity" means, with respect to any Security, the yield to
maturity on such Security calculated at the time of issuance thereof or, if
applicable, at the most recent redetermination of interest on such Security, and
calculated in accordance with the constant interest method or such other method
as is specified in the terms of such Security established pursuant to Section
2.03.
Section 1.02. Other Definitions. Each of the following terms is defined
in the Section set forth opposite such term:
Term Section
---- -------
Authenticating Agent 2.02
Bankruptcy Law 6.01
Defaulted Interest 2.12
Designated Amount 4.05
Event of Default 6.01
mandatory sinking fund payment 3.05
optional sinking fund payment 3.05
Paying Agent 2.05
record date 2.04
Registrar 2.05
sale and leaseback transaction 4.05
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Security Register 2.05
sinking fund payment date 3.05
UCC 8.02
Section 1.03. Incorporation by Reference of and Control by Trust
Indenture Act. Whenever this Indenture refers to a provision of the Trust
Indenture Act, the provision is incorporated by reference in and made a part of
this Indenture. If any provision of this Indenture limits, qualifies or
conflicts with the duties imposed by operation of the Trust Indenture Act, such
imposed duties shall control. The following terms used in this Indenture that
are defined by the Trust Indenture Act have the following meanings:
"indenture securities" means the Securities;
"indenture security holder" means a Holder or a Securityholder;
"indenture to be qualified" means this Indenture;
"indenture trustee" or "institutional trustee" means the
Trustee; and
"obligor" on the indenture securities means the Company or any
other obligor on the Securities.
All other terms used in this Indenture that are defined by the Trust Indenture
Act, defined by reference in the Trust Indenture Act to another statute or
defined by a rule of the Commission and not otherwise defined herein have the
meanings assigned to them therein. For purposes of Trust Indenture Act Section
311(b)(4) and (6), the following terms shall mean:
(a) "cash transaction" means any transaction in which full
payment for goods or securities sold is made within seven days after
delivery of the goods or securities in currency or in checks or other
orders drawn upon banks or bankers and payable upon demand; and
(b) "self-liquidating paper" means any draft, bill of exchange,
acceptance or obligation which is made, drawn, negotiated or incurred by
the Company for the purpose of financing the purchase, processing,
manufacturing, shipment, storage or sale of goods, wares or merchandise
and which is secured by documents evidencing title to, possession of, or
a lien upon, the goods, wares or merchandise or the receivables or
proceeds arising from the sale of the goods, wares or merchandise
previously constituting the security, provided the
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security is received by the Trustee simultaneously with the creation of
the creditor relationship with the Company arising from the making,
drawing, negotiating or incurring of the draft, bill of exchange,
acceptance or obligation.
Section 1.04. Rules of Construction. Unless the context otherwise
requires:
(a) an accounting term not otherwise defined has the meaning
assigned to it in accordance with GAAP;
(b) words in the singular include the plural, words in the
plural include the singular and "or" is not exclusive;
(c) "herein," "hereof" and other words of similar import refer
to this Indenture as a whole and not to any particular Article, Section
or other subdivision;
(d) all references to Sections or Articles refer to Sections or
Articles of this Indenture unless otherwise indicated;
(e) use of masculine, feminine or neuter pronouns should not be
deemed a limitation, and the use of any such pronouns should be
construed to include, where appropriate, the other pronouns; and
(f) provisions apply to successive actions, events and
transactions.
ARTICLE 2
The Securities
Section 2.01. Form and Dating. The Securities of each series and the
certificate of authentication to appear thereon, if any, shall be substantially
in such form or forms (not inconsistent with this Indenture) as shall be
established by or pursuant to Board Resolution or one or more indentures
supplemental hereto, or, to the extent not so established, as is set forth in
Exhibit A hereto, in each case with such letters, numbers or other marks of
identification, insertions, omissions, substitutions, legends, endorsements and
other variations as are authorized or permitted by the provisions of this
Indenture, or may be required to comply with any law, rule or regulation or any
rule of any securities exchange or to conform to usage, all as may consistently
herewith be determined by the officers executing such
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Securities as evidenced by their execution of the Securities. Unless otherwise
established pursuant to Section 2.03 for the Securities of any series, each
Security shall be dated the date of its authentication. The definitive
Securities shall be printed, lithographed, engraved, or produced by any
combination of these methods or in any other manner on steel engraved borders or
otherwise, all as determined by the officers executing such Securities, as
evidenced by their execution thereof. Unless otherwise established pursuant to
this Section 2.03 for the Securities of any series, the certificate of
authentication to appear on all Securities shall be substantially as follows:
CERTIFICATE OF AUTHENTICATION
This Security is one of the Securities of the series referred to herein
issued pursuant to the within-mentioned Indenture.
THE CHASE MANHATTAN BANK,
as Trustee
By
----------------------------
Authorized Officer
Section 2.02. Execution and Authentication. The Securities shall be
executed on behalf of the Company by its chairman of the Board, its president or
one of its vice presidents, under its corporate seal reproduced thereon attested
by its secretary or one of its assistant secretaries. The signature of any of
these officers on the Securities may be manual or facsimile. If an officer whose
signature is on a Security no longer holds that office at the time the Security
is authenticated, the Security shall nevertheless be valid.
The Trustee may appoint an authenticating agent acceptable to the
Company (an "Authenticating Agent") to authenticate Securities. The
Authenticating Agent may authenticate Securities whenever the Trustee may do so.
Each reference in this Indenture to authentication by the Trustee includes
authentication by any Authenticating Agent.
Unless otherwise established pursuant to Section 2.03 for the Securities
of any series, no Security shall be valid until the Trustee or an Authenticating
Agent manually signs the certificate of authentication on the Security. Such
signature shall be conclusive evidence that the Security has been authenticated
under this Indenture.
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At any time and from time to time after the execution and delivery of
this Indenture, the Company may deliver Securities of any series executed by the
Company to the Trustee for authentication together with the applicable documents
referred to below in this Section, and the Trustee shall thereupon authenticate
and deliver such Securities to or upon the written order of the Company. In
authenticating the Securities of any series, the Trustee shall be entitled to
receive prior to the first authentication of any Securities of such series, and
(subject to Article 7) shall be fully protected in relying upon, in addition to
the Officers' Certificate and Opinion of Counsel required by Section 10.02:
(a) any Board Resolution and/or executed supplemental indenture
referred to in Sections 2.01 and 2.03 by or pursuant to which the forms
and terms of the Securities of such series were established;
(b) an Officers' Certificate setting forth the form or forms
and terms of the Securities and stating that the form or forms and terms
of the Securities of such series have been, or will be when established
in accordance with such procedures as shall be referred to therein,
established in compliance with this Indenture;
(c) an Opinion of Counsel to the effect that
(i) the form or forms and terms of such Securities have
been established by or pursuant to a resolution of the
Board of Directors or by a supplemental indenture as
permitted by Section 2.01 and 2.03 in conformity with
the provisions of this Indenture;
(ii) such Securities, when authenticated and delivered
by the Trustee and issued by the Issuer in the manner
and subject to any conditions specified in such Opinion
of Counsel, will constitute valid and binding
obligations of the Issuer, subject to the effects of
bankruptcy, insolvency, fraudulent conveyance,
reorganization, moratorium and other similar laws
relating to creditors' rights generally, general
principles of equity (whether considered in a proceeding
in equity or at law) or an implied covenant of good
faith and fair dealing, and such other matters as shall
be specified therein; and
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(iii) covers such other matters as the Trustee may
reasonably request.
Unless the terms established pursuant to Section 2.03 for the Securities
of a series or portion thereof provide that any such Securities are to be issued
in any form other than as Registered Global Securities, the Company shall
execute and the Trustee shall authenticate and deliver one or more Registered
Global Securities that (i) shall state the aggregate principal amount of all of
the Securities of such series issued in such form and not yet cancelled, (ii)
shall be registered in the name of the Depositary therefor or the nominee of
such Depositary, (iii) shall be delivered by the Trustee to such Depositary or
its custodian or pursuant to such Depositary's instructions and (iv) shall bear
a legend substantially to the following effect, or to such other effect as such
Depositary may from time to time request:
"Unless this certificate is presented by an authorized representative of
the Depositary to Issuer or its agent for registration of transfer, exchange, or
payment, and any certificate issued is registered in the name of Cede & Co. or
in such other name as is requested by an authorized representative of the
Depositary (and any payment is made to Cede & Co. or to such other entity as is
requested by an authorized representative of the Depositary), ANY TRANSFER,
PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest
herein."
The Trustee shall have the right to decline to authenticate and deliver
any Securities under this Section if (a) the Trustee, being advised by counsel,
determines that such action may not lawfully be taken; (b) the Trustee in good
faith by its board of directors or board of trustees, executive committee, or a
trust committee of directors or trustees or Responsible Officers shall determine
that such action would expose the Trustee to personal liability; or (c) the
issue of any such Securities pursuant to this Indenture will affect the
Trustee's own rights, duties or immunities under the Securities and this
Indenture or otherwise in a manner which is not reasonably acceptable to the
Trustee.
Section 2.03. Amount Unlimited; Issuable in Series. The aggregate
principal amount of Securities which may be authenticated and delivered under
this Indenture is unlimited.
The Securities may be issued in one or more series and each such series
shall rank equally and pari passu with all other unsecured and unsubordinated
debt of the
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Company. There shall be established in or pursuant to Board Resolution or one or
more indentures supplemental hereto, prior to the initial issuance of Securities
of any series, subject to the last sentence of this Section 2.03,
(a) the designation of the Securities of the series, which
shall distinguish the Securities of the series from the Securities of
all other series;
(b) any limit upon the aggregate principal amount of the
Securities of the series that may be authenticated and delivered under
this Indenture and any limitation on the ability of the Company to
increase such aggregate principal amount after the initial issuance of
the Securities of that series (except for Securities authenticated and
delivered upon registration of transfer of, or in exchange for, or in
lieu of, or upon redemption of, other Securities of such series and
tenor pursuant to Section 2.06, 2.07, 2.09, 3.03 or 9.04);
(c) any date or dates on which the principal of the Securities
of the series is payable (which date or dates may be fixed or
extendible);
(d) any rate or rates (which may be fixed or variable) per
annum at which the Securities of the series shall bear interest, if any,
any date or dates from which such interest shall accrue, on which such
interest shall be payable and on which a record shall be taken for the
determination of Holders to whom interest is payable and/or any method
by which any such rate or rates or date or dates shall be determined;
(e) if other than as provided in Section 4.02, any place or
places where the principal of and any interest on Securities of the
series shall be payable, any Securities of the series may be surrendered
for exchange, any notices or demands to or upon the Company in respect
of the Securities of the series and this Indenture may be served and any
notice to Holders may be published, and any time when such payments are
to be made at any place of payment;
(f) any right of the Company to redeem Securities of the
series, in whole or in part, at its option and any period or periods
within which, any price or prices at which and any terms and conditions
upon which Securities of the series may be so redeemed, pursuant to any
sinking fund or otherwise;
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(g) any obligation of the Company to redeem, purchase or repay
Securities of the series pursuant to any mandatory redemption, sinking
fund or analogous provisions or at the option of a Holder thereof and
any price or prices at which, any period or periods within which, and
any terms and conditions upon which, Securities of the series shall be
redeemed, purchased or repaid, in whole or in part, pursuant to such
obligation;
(h) if other than the denominations specified in Section 2.04,
the denominations in which Securities of the series shall be issuable;
(i) if other than the principal amount thereof, the portion of
the principal amount of Securities of the series which shall be payable
upon declaration of acceleration of the maturity thereof;
(j) if other than the coin or currency in which the Securities
of the series are denominated, the coin or currency in which payment of
the principal of or any interest on the Securities of the series shall
be payable or, if the amount of any payments of principal of and/or
interest on the Securities of the series may be determined with
reference to an index based on a coin or currency other than that in
which the Securities of the series are denominated, the manner in which
such amounts shall be determined;
(k) if other than the currency of the United States of America,
the currency or currencies, including composite currencies, in which
payment of the principal of and any interest on the Securities of the
series shall be payable, and the manner in which any such currencies
shall be valued against other currencies in which any other Securities
shall be payable;
(l) any obligation of the Company to pay additional amounts on
the Securities of the series in respect of any tax, assessment or
governmental charge withheld or deducted and any right of the Company to
redeem such Securities rather than pay such additional amounts;
(m) any provisions for the Securities of the series to be
issued in bearer form, with or without coupons, and if the Securities of
the series are to be issuable in definitive form (whether upon original
issue or upon exchange of a temporary Security of such series) only upon
receipt of certain certificates or other documents or satisfaction of
other conditions, the form and terms of such certificates, documents or
conditions;
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(n) if other than the Person acting as Trustee, any Agent
authenticating the Securities of the series;
(o) any provisions for the defeasance of any Securities of the
series in addition to, in substitution for or in modification of the
provisions of Article 8;
(p) if the Securities of the series are issuable in whole or in
part as one or more Registered Global Securities, the form of any legend
or legends which shall be borne by any such Registered Global Security
in addition or in lieu of that set forth in Section 2.02, the identity
of any Depositary for such Registered Global Security or Securities
other than The Depository Trust Company and any circumstances other than
those set forth in Section 2.06 in which any Person may have the right
to obtain Securities in exchange therefor;
(q) any provisions for Events of Default applicable to any
Securities of the series in addition to, in substitution for or in
modification of the provisions of Section 6.01;
(r) any provisions for covenants applicable to any Securities
of the series in addition to, in substitution for or in modification of
the provisions of Article 4; and
(s) any other terms of the Securities of the series (which
terms shall not be inconsistent with the provisions of this Indenture).
All Securities of any one series shall be substantially identical,
except as to principal amount and as to date of authentication and payee, and
except as may otherwise be provided by or pursuant to the Board Resolution or
indenture supplemental hereto referred to above. Notwithstanding the preceding
sentence, all Securities of any one series need not be issued at the same time
and may be issued from time to time, if so provided by or pursuant to such Board
Resolution or supplemental indenture, and any forms and any terms of such
Securities may be determined from time to time prior to the issuance thereof by
procedures established by or pursuant to such Board Resolution or supplemental
indenture.
Section 2.04. Denominations and Interest Payments. The Securities shall
be issuable as registered Securities in denominations of $1,000 and any integral
multiple thereof, unless otherwise established pursuant to Section 2.03 for such
Securities.
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The Securities of each series shall bear interest, if any, from the
date, and such interest and shall be payable on the dates, established pursuant
to Section 2.03 for the Securities of such series.
The Person in whose name any Security of any series is registered at the
close of business on any record date applicable to the particular series with
respect to any interest payment date for such series shall be entitled to
receive the interest, if any, payable on such interest payment date
notwithstanding any transfer or exchange of such Security subsequent to the
record date and prior to such interest payment date, except to any extent the
Company shall default in the payment of such interest, in which case the
provisions of Section 2.12 shall apply. The term "record date" as used with
respect to any interest payment date (except a date for payment of defaulted
interest) for any Security shall mean the date specified as such in the terms of
such securities of any particular series established pursuant to Section 2.03,
or, if no such date is so established, the fifteenth day next preceding such
interest payment date, whether or not such record date is a Business Day. Each
installment of interest on the Securities of any series may be paid by check
mailed to the address of the Person entitled thereto as it appears in the
Security Register.
Except as otherwise established pursuant to Section 2.03 for the
Securities of any series, interest on the Securities of each series shall be
calculated on the basis of a 360-day year consisting of twelve months of 30 days
each and, in the case of an incomplete month, the actual number of days elapsed.
Section 2.05. Registrar and Paying Agent. The Company shall maintain an
office or agency where Securities may be presented for registration of transfer
or for exchange (the "Registrar") and an office or agency where Securities may
be presented for payment (the "Paying Agent"). The Registrar shall keep a
register of the Securi ties of each series and of their registration, transfer
and exchange (the "Security Register"). The Company may appoint one or more
additional or substitute Paying Agents or Registrars with respect to the
Securities of any series, or remove any Agent, without notice to any Person
(other than the Trustee). The terms "Paying Agent" and "Registrar" includes all
Persons appointed as such.
Whenever no other Person is acting as Registrar or Paying Agent with
respect to the Securities of any series, the Person then acting as Trustee shall
also act as such Registrar or Paying Agent. The Company or any Affiliate of the
Company may act as Paying Agent or Registrar. If, at any time, the Person acting
as the Trustee is not the Registrar with respect to the Securities of any
series, such Registrar shall make available to the Trustee ten days prior to
each interest payment date for such Securities and at such other times as the
Trustee may reasonably request the names and addresses of the Holders as they
appear in the Security Register for such Securities.
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Section 2.06. Transfer and Exchange. At the option of the Holder
thereof, Securities of any series (other than a Registered Global Security,
except as set forth below) may be exchanged for a Security or Securities of such
series and tenor having authorized denominations and an equal aggregate
principal amount, upon surrender of such Securities to be exchanged at the
agency of the Company maintained for such purpose and upon payment, if the
Company shall so require, of the sum hereinafter provided. Whenever any
Securities are so surrendered for exchange, the Company shall execute, and the
Trustee shall authenticate and deliver, the Securities which the Holder making
the exchange is entitled to receive.
All Securities presented for registration of transfer, exchange,
redemption or payment shall be duly endorsed by, or be accompanied by a written
instrument or instruments of transfer in form satisfactory to the Company and
the Trustee duly executed by the Holder or his attorney duly authorized in
writing.
The Company may require payment of a sum sufficient to cover any
transfer tax or similar governmental charge that may be imposed in connection
with any exchange or registration of transfer of Securities (other than such
transfer tax or similar charge imposed upon exchanges pursuant to Section 2.09,
3.03 or 9.04). No service charge shall be made for any such transaction.
Notwithstanding any other provision of this Section 2.06, unless and
until it is exchanged in whole or in part for Securities in definitive
registered form, a Registered Global Security of any series may not be
transferred except as a whole by the Depositary therefor 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 successive Depositary.
If at any time the Depositary for any Registered Global Securities of
any series notifies the Company that it is unwilling or unable to continue as
Depositary for such Registered Global Securities or if at any time the
Depositary for such Registered Global Securities shall no longer be eligible
under applicable law, the Company shall appoint a successor Depositary eligible
under applicable law with respect to such Registered Global Securities. If a
successor Depositary eligible under applicable law for such Registered Global
Securities is not appointed by the Company within 90 days after the Company
receives such notice or becomes aware of such ineligibility, the Company will
execute, and the Trustee, upon receipt of the Company's order for the
authentication and delivery of certificated Securities of such series, will
authenticate and deliver, certificated Securities of such series and tenor in
any authorized denominations in an aggregate principal amount equal to the
principal amount of such Registered Global Securities, in exchange for such
Registered Global Securities.
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The Company may at any time and in its sole discretion determine that
any Registered Global Securities of any series shall no longer be maintained in
global form. In such event the Company will execute, and the Trustee, upon
receipt of the Company's order for the authentication and delivery of
certificated Securities of such series, will authenticate and deliver,
certificated Securities of such series and tenor in any authorized denominations
in an aggregate principal amount equal to the principal amount of such
Registered Global Securities, in exchange for such Registered Global Securities.
During the continuance of an Event of Default and in such other
circumstances, if any, as may be established pursuant to Section 2.03 with
respect to any Registered Global Security, the Depositary for such Registered
Global Security may surrender such Registered Global Security in exchange in
whole or in part for certificated Securities of the same series and tenor on
such terms as are acceptable to the Company and such Depositary. Thereupon, the
Company shall execute, and the Trustee shall authenticate and deliver, without
service charge,
(a) to the Person specified by such Depositary new certificated
Securities of the same series and tenor, of any authorized denominations
as requested by such Person, in an aggregate principal amount equal to
and in exchange for such Person's beneficial interest in the Registered
Global Security; and
(b) to such Depositary a new Registered Global Security in a
denomination equal to the difference, if any, between the principal
amount of the surrendered Registered Global Security and the aggregate
principal amount of certificated Securities authenticated and delivered
pursuant to clause (a) above.
Securities issued in exchange for a Registered Global Security pursuant
to this Section 2.06 shall be registered in such names and in such authorized
denominations as the Depositary for such Registered Global Security, pursuant to
instructions from its direct or indirect participants or otherwise, shall
instruct the Trustee or an agent of the Company or the Trustee. The Trustee or
such Agent shall deliver such Securities to or as directed by the Persons in
whose names such Securities are so registered.
All Securities issued upon registration of any transfer or exchange of
Securities shall be 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.
The Registrar shall not be required (a) to register the transfer of or
exchange Securities of any series during a period beginning at the opening of
business 15 days
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before the day of the transmission of a notice of redemption of Securities of
such series selected for redemption under Section 3.02 and ending at the close
of business on the day of such transmission or (b) to register the transfer of
or exchange any Security selected for redemption in whole or in part, except the
unredeemed portion of any Security being redeemed in part.
Section 2.07. Replacement Securities. If a defaced or mutilated Security
of any series is surrendered to the Trustee or if a Holder claims that its
Security of any series has been lost, destroyed or wrongfully taken, the Company
shall issue and the Trustee shall authenticate a replacement Security of such
series and tenor and principal amount, bearing a number not contemporaneously
outstanding. If required by the Trustee or the Company, an indemnity bond must
be furnished that is sufficient in the judgment of both the Trustee and the
Company to protect the Company, the Trustee and any Agent from any loss that any
of them may suffer if a Security is replaced. The Company may charge such Holder
for its expenses and the expenses of the Trustee (including without limitation
attorneys' fees and expenses) in replacing a Security. In case any such
mutilated, defaced, lost, destroyed or wrongfully taken Security has become or
is about to become due and payable, the Company in its discretion may pay such
Security instead of issuing a new Security in replacement thereof.
Every replacement Security is an additional obligation of the Company
and shall be entitled to the benefits of this Indenture.
To the extent permitted by law, the foregoing provisions of this Section
are exclusive with respect to the replacement or payment of mutilated,
destroyed, lost or wrongfully taken Securities.
Section 2.08. Outstanding Securities. Securities outstanding at any time
are all Securities that have been authenticated by the Trustee except for those
cancelled by it, those delivered to it for cancellation and those described in
this Section as not outstanding.
If a Security is replaced pursuant to Section 2.07, it ceases to be
outstanding unless and until the Trustee and the Company receive proof
satisfactory to them that the replaced Security is held by a bona fide holder in
due course.
If the Paying Agent (other than the Company or an Affiliate of the
Company) holds, or if the Company or its Affiliate (if the Company or its
Affiliate shall act as the Paying Agent) sets aside and segregates in trust, on
the maturity date or any redemption date or date for repurchase of the
Securities, money sufficient to pay Securities payable or to be redeemed or
repurchased on that date, then on and after that date such Securities cease to
be outstanding and interest on them shall cease to accrue; provided, however,
that, if such Securities or portions thereof are to be
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redeemed, notice of such redemption has been duly given pursuant to this
Indenture, or provision therefor satisfactory to such Trustee has been made.
A Security does not cease to be outstanding because the Company or one
of its Affiliates holds such Security, provided, however, that, in determining
whether the Holders of the requisite principal amount of the outstanding
Securities have given any request, demand, authorization, direction, notice,
consent or waiver hereunder, Securities owned by the Company or any Affiliate of
the Company 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 a Responsible Officer of the Trustee knows to be so owned shall
be so disregarded. The principal amount of an Original Issue Discount Security
that shall be deemed to be outstanding for such purposes shall be the amount of
principal thereof that would be due and payable as of the date of such
determination upon a declaration of acceleration pursuant to Section 6.02. Any
Securities so owned which have been pledged in good faith by the Company, or by
any Affiliate of the Company, as security for loans or other obligations,
otherwise than to another such Affiliate of the Company, shall be deemed to be
outstanding if the pledgee establishes to the satisfaction of the Trustee that
the pledgee is entitled pursuant to its pledge agreement and is free to exercise
in its discretion the right to vote such securities, uncontrolled by the Company
or any other obligor upon the Securities or by any such Affiliate of the Company
or of any such other obligor upon the Securities.
Section 2.09. Temporary Securities. Until definitive Securities of any
series are ready for delivery, the Company may prepare and the Trustee shall
authenticate temporary Securities of such series. Temporary Securities of any
series shall be substantially in the form of definitive Securities of such
series but may have insertions, substitutions, omissions and other variations
determined to be appropriate by the Officers executing the temporary Securities,
as evidenced by their execution of such temporary Securities. If temporary
Securities of any series are issued, the Company will cause definitive
Securities of such series to be prepared without unreasonable delay. After the
preparation of definitive Securities of any series, the temporary Securities of
such series shall be exchangeable for definitive Securities of such series and
tenor upon surrender of such temporary Securities at the office or agency of the
Company designated for such purpose, without charge to the Holder. Upon
surrender for cancellation of any one or more temporary Securities of any series
the Company shall execute and the Trustee shall authenticate and deliver in
exchange therefor a like principal amount of definitive Securities of such
series and tenor and authorized denominations. Until so exchanged, the temporary
Securities of any series shall be entitled to the same benefits under this
Indenture as definitive Securities of such series and tenor.
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Section 2.10. Cancellation. The Company at any time may deliver to the
Trustee for cancellation any Securities previously authenticated and delivered
hereunder which the Company may have acquired in any manner whatsoever, and may
deliver to the Trustee for cancellation any Securities previously authenticated
hereunder which the Company has not issued and sold. Any Agent shall forward to
the Trustee any Securities surrendered to it for registration of transfer,
exchange or payment. The Trustee shall cancel and destroy all Securities
surrendered for registration of transfer, exchange, payment or cancellation and
shall deliver certificates of destruction to the Company, all in accordance with
its customary practices. The Company may not issue new Securities to replace
Securities it has paid in full or delivered to the Trustee for cancellation.
Section 2.11. CUSIP Numbers. The Company in issuing the Securities may
use "CUSIP" numbers (or such other numbers as then generally in use), and the
Trustee shall use such numbers in notices of redemption, repurchase or exchange
as a convenience to Holders; provided that any such notice shall state that no
representation is made as to the correctness of such numbers either as printed
on the Securities or as contained in any such notice.
Section 2.12. Defaulted Interest. Any interest on any Security of any
series which is payable, but is not punctually paid or duly provided for, on any
interest payment date established pursuant to Section 2.03 (herein called
"Defaulted Interest") shall forthwith cease to be payable to the Holder on the
relevant 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 (a) or (b) below:
(a) The Company may elect to make payment of any Defaulted
Interest to the Persons in whose names the Securities of such series are
registered at the close of business on a Special Record Date for the
payment of such Defaulted Interest, which shall be fixed in the
following manner. The Company shall notify the Trustee in writing of the
amount of Defaulted Interest proposed to be paid on each Security of
such series and the date of the proposed payment, and at the same time
the Company shall deposit with the Trustee an amount of money equal to
the aggregate amount proposed to be paid in respect to such Defaulted
Interest or shall make arrangements satisfactory to the Trustee for such
deposit prior to the date of the proposed payment, such money when
deposited to be held in trust for the benefit of the Persons entitled to
such Defaulted Interest as in this clause provided. Thereupon the
Trustee shall fix a Special Record Date for the payment of such
Defaulted Interest which shall be not more than 15 days and not less
than 10 days prior to the date of the proposed payment and not less than
10 days after the receipt by the Trustee of the notice of the proposed
payment. The Trustee shall
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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 Securities
of such series 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 of such series are registered
at the close of business of such Special Record Date and shall no longer
be payable pursuant to the following clause (b).
(b) The Company may make payment of any Defaulted Interest on
the Securities of any series in any other lawful manner not inconsistent
with the requirements of any securities exchange on which such
Securities may be listed, and upon such notice as may be required by
such exchange, if, after notice given by the Company to the Trustee of
the proposed payment pursuant to this clause, such manner of payment
shall be deemed practicable by the Trustee.
Section 2.13. Persons Deemed Owners. Prior to due presentment of a
Security for registration of transfer and subject to Section 2.12, the Company,
the Trustee and any Agent may deem and treat the Person in whose name any
Security shall be registered upon the Security Register as the absolute owner of
such Security (whether or not such Security shall be overdue and notwithstanding
any notation of the ownership or other writing thereon made by anyone other than
the Company or any Registrar) for the purpose of receiving payments or principal
of or interest on such Security and for all other purposes; and none of the
Company, the Trustee and any Agent shall be affected by any notice to the
contrary.
None of the Company, the Trustee and any Agent shall have any
responsibility or liability for any aspect of the records relating to or
payments made on account of beneficial ownership interests in a Registered
Global Security or for maintaining, supervising or reviewing any records
relating to such beneficial ownership interests.
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ARTICLE 3
Redemption and Repayment
Section 3.01. Applicability of Article. The provisions of this Article
shall be applicable to the Securities of any series which are redeemable before
their maturity or to any sinking fund for the retirement of Securities of a
series, except as otherwise specified pursuant to Section 2.03 for Securities of
such series.
Section 3.02. Notice of Redemption; Partial Redemptions. Notice of
redemption shall be given by the Company, or at the Company's request, by the
Trustee in the name and at the expense of the Company, to the Holders of
Securities to be redeemed by mailing notice of such redemption by first class
mail, postage prepaid, at least 30 days and not more than 60 days prior to the
date fixed for redemption to such Holders at their last addresses as they shall
appear upon the Security Register. Failure to give notice by mail, or any defect
in the notice to the Holder of any Security designated for redemption as a whole
or in part shall not affect the validity of the proceedings for the redemption
of any other Security.
The notice of redemption to each such Holder shall specify the principal
amount of each Security of such series held by such Holder to be redeemed, the
CUSIP numbers of the Securities to be redeemed, the date fixed for redemption,
the redemption price, the place or places of payment, that payment will be made
upon presentation and surrender of such Securities and that such redemption is
pursuant to the mandatory or optional sinking fund, or both, if such be the
case, or such other terms of such Securities as shall be specified in such
notice, that interest accrued to the date fixed for redemption will be paid as
specified in such notice and that, unless the Company defaults in making such
redemption payment, on and after said date interest thereon or on the portions
thereof to be redeemed will cease to accrue. In case any Security of a series is
to be redeemed in part only, the notice of redemption shall state the portion of
the principal amount thereof to be redeemed and shall state that on and after
the date fixed for redemption, upon surrender of such Security, a new Security
or Securities of such series and tenor in principal amount equal to the
unredeemed portion thereof will be issued.
Prior to any redemption date specified in the notice of redemption given
as provided in this Section, or at such other time as shall be established
pursuant to Section 2.03 for the Securities of any series with respect to such
Securities, the Company will deposit with the Trustee or with one or more Paying
Agents (or, if the Company is acting as its own Paying Agent, set aside,
segregate and hold in trust as provided in Section 4.03) an amount of money
sufficient to redeem on the redemption date all the Securities of such series so
called for redemption at the appropriate redemption price, together with accrued
interest to the date fixed for redemption. In case of a redemption at the
election of the Company prior to the expiration of any restriction on such
redemption, the Company shall deliver to the
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Trustee, prior to the giving of any notice of redemption to Holders pursuant to
this Section, an Officers' Certificate stating that such redemption is not
prohibited by such restriction.
If fewer than all of the Securities of a series are to be redeemed, the
Company shall give the Trustee at least 45 days' notice thereof (unless a
shorter period is acceptable to the Trustee) and, thereafter, the Trustee shall
select (not more than 60 days prior to the redemption date) by such method as
the Trustee shall deem appropriate and fair, Securities of such series to be
redeemed in whole or in part. Securities may be redeemed in part in multiples
equal to the minimum authorized denomination for Securities of such series or
any multiple thereof. The Trustee shall promptly notify the Company in writing
of the Securities of such series selected for redemption and, in the case of any
Securities of such series selected for partial redemption, the principal amount
thereof to be redeemed. For all purposes of this Indenture, unless the context
otherwise requires, all provisions relating to the redemption of Securities
shall relate, in the case of any Security redeemed or to be redeemed only in
part, to the portion of the principal amount of such Security which has been or
is to be redeemed.
Section 3.03. Payment of Securities Called for Redemption. If notice of
redemption has been given as above provided, the Securities or portions of
Securities specified in such notice shall become due and payable on the date and
at the place stated in such notice at the applicable redemption price, together
with interest accrued to the date fixed for redemption, and on and after such
date (unless the Company shall default in the payment of such Securities at the
redemption price, together with interest accrued to such date) interest on the
Securities or portions of Securities so called for redemption shall cease to
accrue, and such Securities shall cease from and after the date fixed for
redemption to be entitled to any benefit under this Indenture, and the Holders
thereof shall have no right in respect of such Securities except the right to
receive the redemption price thereof and unpaid interest to the date fixed for
redemption. On presentation and surrender of such Securities at a place of
payment specified in said notice, said Securities or the specified portions
thereof shall be paid and redeemed by the Company at the applicable redemption
price, together with interest accrued thereon to the date fixed for redemption;
provided that payment of interest becoming due on or prior to the date fixed for
redemption shall be payable to the Holders of such Securities registered as such
on the relevant record date subject to the terms and provisions of Sections 2.04
and 2.12 hereof.
If any Security called for redemption shall not be so paid upon
surrender thereof for redemption, the principal shall, until paid or duly
provided for, bear interest from the date fixed for redemption at the rate of
interest or Yield to Maturity (in the case of an Original Issue Discount
Security) borne by such Security, or at any
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rate for defaulted interest specified in the form or terms of such Security
established pursuant to Section 2.01 or 2.03.
Upon presentation of any Security of any series redeemed in part only,
the Company shall execute and the Trustee shall authenticate and deliver to or
on the order of the Holder thereof, at the expense of the Company, a new
Security or Securities of such series and tenor, of authorized denominations, in
principal amount equal to the unredeemed portion of the Security so presented.
Section 3.04. Exclusion of Certain Securities from Eligibility for
Selection for Redemption. Securities shall be excluded from eligibility for
selection for redemption if they are identified by registration and certificate
number in an Officers' Certificate delivered to the Trustee at least 40 days
prior to the last date on which notice of redemption may be given as being owned
of record and beneficially by, and not pledged or hypothecated by, either (a)
the Company or (b) an Affiliate of the Company.
Section 3.05. Mandatory and Optional Sinking Funds. 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 the
Securities of any series is herein referred to as an "optional sinking fund
payment". The date on which a sinking fund payment is to be made is herein
referred to as the "sinking fund payment date".
In lieu of making all or any part of any mandatory sinking fund payment
with respect to any series of Securities in cash, the Company may at its option
(a) deliver to the Trustee Securities of such series theretofore purchased or
otherwise acquired (except through a mandatory sinking fund payment) by the
Company or receive credit for Securities of such series (not previously so
credited) theretofore purchased or otherwise acquired (except as aforesaid) by
the Company and delivered to the Trustee for cancellation pursuant to Section
2.10, (b) receive credit for optional sinking fund payments (not previously so
credited) made pursuant to this Section, or (c) receive credit for Securities of
such series (not previously so credited) redeemed by the Company through any
optional sinking fund payment. Securities so delivered or credited shall be
received or credited by the Trustee at the sinking fund redemption price
specified in such Securities.
On or before the sixtieth day next preceding each sinking fund payment
date for any series, or such shorter period as shall be acceptable to the
Trustee, the Company will deliver to the Trustee an Officers' Certificate (a)
specifying the portion of the mandatory sinking fund payment to be satisfied by
payment of cash and the portion to be satisfied by credit of specified
Securities of such series and the basis for such credit, (b) stating that none
of the specified Securities of such series has
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theretofore been so credited, (c) stating that no defaults in the payment of
interest or Events of Default with respect to such series have occurred (which
have not been waived or cured) and are continuing and (d) stating whether or not
the Company intends to exercise its right to make an optional sinking fund
payment with respect to such series and, if so, specifying the amount of such
optional sinking fund payment which the Company intends to pay on or before the
next succeeding sinking fund payment date. Any Securities of such series to be
credited and required to be delivered to the Trustee in order for the Company to
be entitled to credit therefor as aforesaid which have not theretofore been
delivered to the Trustee shall be delivered for cancellation pursuant to Section
2.10 to the Trustee with such Officers' Certificate (or reasonably promptly
thereafter if acceptable to the Trustee). Such Officers' Certificate shall be
irrevocable and upon its receipt by the Trustee the Company shall become
unconditionally obligated to make all the cash payments or payments therein
referred to, if any, on or before the next succeeding sinking fund payment date.
Failure of the Company, on or before any such sixtieth day, to deliver such
Officers' Certificate and Securities specified in this paragraph, if any, shall
not constitute a default but shall constitute, on and as of such date, the
irrevocable election of the Company (a) that the mandatory sinking fund payment
for such series due on the next succeeding sink date shall be paid entirely in
cash without the option to deliver or credit Securities of such series in
respect thereof and (b) that the Company will make no optional sinking fund
payment with respect to such series as provided in this Section.
If the sinking fund payment or payments (mandatory or optional or both)
to be made in cash on the next succeeding sinking fund payment date plus any
unused balance of any preceding sinking fund payments made in cash shall exceed
$50,000 or a lesser sum if the Company shall so request with respect to the
Securities of any series, such cash shall be applied on the next succeeding
sinking fund payment date to the redemption of Securities of such series at the
sinking fund redemption price thereof together with accrued interest thereon to
the date fixed for redemption. If such amount shall be $50,000 or less and the
Company makes no such request then it shall be carried over until a sum in
excess of $50,000 is available. The Trustee shall select, in the manner provided
in Section 3.02, for redemption on such sinking fund payment date, a sufficient
principal amount of Securities of such series to absorb said cash, as nearly as
may be, and shall (if requested in writing by the Company) inform the Company of
the serial numbers of the Securities of such series (or portions thereof) so
selected. Securities shall be excluded from eligibility for redemption under
this Section if they are identified by registration and certificate number in an
Officers' Certificate delivered to the Trustee at least 60 days prior to the
sinking fund payment date as being owned of record and beneficially by either
(a) the Company or (b) an entity specifically identified in such Officers'
Certificate as an Affiliate of the Company. The Trustee, in the name and at the
expense of the Company (or the Company, if it shall so request the Trustee in
writing) shall cause notice of redemption of the Securities of such series to be
given in substantially the
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manner provided in Section 3.02 (and with the effect provided in Section 3.03)
for the redemption of Securities of such series in part at the option of the
Company. The amount of any sinking fund payments not so applied or allocated to
the redemption of Securities of such series shall be added to the next cash
sinking fund payment for such series and, together with such payment, shall be
applied in accordance with the provisions of this Section. Any and all sinking
fund moneys held on the stated maturity date of the Securities of any particular
series (or earlier, if such maturity is accelerated), which are not held for the
payment or redemption of particular Securities of such series shall be applied,
together with other moneys, if necessary, sufficient for the purpose, to the
payment of the principal of, and interest on, the Securities of such series at
maturity.
At or before 10:00 a.m. in the place of payment on each sinking fund
payment date, the Company shall pay to the Trustee in cash or shall otherwise
provide for the payment of all interest accrued to the date fixed for redemption
on Securities to be redeemed on the next following sinking fund payment date.
The Trustee shall not redeem or cause to be redeemed any Securities of
any series with sinking fund moneys or mail any notice of redemption of such
Securities by operation of the sinking fund during the continuance of a Default
in payment of interest on such Securities or of any Event of Default with
respect to such Securities except that, where the mailing of notice of
redemption of such Securities shall theretofore have been made, the Trustee
shall redeem or cause to be redeemed such Securities, provided that it shall
have received from the Company a sum sufficient for such redemption. Except as
aforesaid, any moneys in the sinking fund for such Securities at the time when
any such Default or Event of Default shall occur, and any moneys thereafter paid
into such sinking fund, shall, during the continuance of such Default or Event
of Default, be deemed to have been collected under Article 6 and held for the
payment of all Securities of such series. In case such Event of Default shall
have been waived as provided in Section 6.04 or such Default cured on or before
the sixtieth day preceding the sinking fund payment date in any year, such
moneys shall thereafter be applied on the next succeeding sinking fund payment
date in accordance with this Section to the redemption of such Securities.
Section 3.06. Repayment. Securities of any series which are repayable
before their maturity at the option of their Holders (as established pursuant to
Section 2.03) shall be repayable in accordance with their terms and in
accordance with this Section.
Notice of any repayment date with respect to the Securities of any
series shall, unless otherwise specified by the terms of the Securities of such
series, be given by the Company not less than 45 nor more than 60 days prior to
such repayment date to each Holder of Securities of such series in accordance
with Section 10.01. The notice of the repayment date shall state (a) the
repayment date; (b) the repayment
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price; (c) the place or places where such Securities are to be surrendered for
payment and the date by which Securities must be so surrendered in order to be
repaid; (d) a description of the procedure which a Holder must follow to
exercise a repayment right; and (e) that exercise of the option to elect
repayment is irrevocable. No failure of the Company to give the foregoing notice
shall limit any Holder's right to exercise a repayment right.
On or prior to the repayment date, the Company shall deposit with the
Trustee or with a Paying Agent (or, if the Company is acting as its own Paying
Agent, segregate and hold in trust as provided in Section 4.03) an amount of
money sufficient to pay the repayment price of and accrued interest, if any, on
all of the Securities of such series which are to be repaid on that date.
The notice of repayment having been given, the Securities of such series
to be repaid shall, on the repayment date, become due and payable at the
repayment price applicable thereto and from and after such date (unless the
Company shall default in the payment of the repayment price and accrued
interest) such Securities shall cease to bear interest. Upon surrender of any
such Security for repayment in accordance with said notice, such Security shall
be paid by the Company at the repayment price together with accrued interest to
the repayment date; provided, however, that installments of interest whose
maturity is on or prior to such repayment date shall be payable to the Holders
of such Securities registered as such at the close of business on the relevant
record dates according to the terms and provisions of Section 2.04.
If any Security shall not be paid upon surrender thereof for repayment,
the principal shall, until paid, bear interest from the repayment date at the
rate prescribed therefor for such Security.
Any Security which by its terms may be repaid in part at the option of
the Holder and which is to be repaid only in part shall be surrendered at any
office or agency of the Company designated pursuant to Section 4.02 (with, if
the Company or the Trustee so requires, due endorsement by, or a written
instrument of transfer in form satisfactory to the Company and the Trustee duly
executed by, the Holder thereof or his attorney duly authorized in writing), and
the Company shall execute, and the Trustee shall authenticate and deliver to the
Holder of such Security, without service charge, a new Security or Securities of
the same series and tenor, of any authorized denomination as requested by such
Holder, in aggregate principal amount equal to and in exchange for the unrepaid
portion of the principal of the Security so surrendered.
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ARTICLE 4
Covenants
Section 4.01. Payment of Principal, Premium and Interest. The Company
covenants and agrees for the benefit of Securities of each series that it will
duly and punctually pay the principal of and any interest on the Securities of
that series in accordance with the terms of such Securities and this Indenture.
Section 4.02. Maintenance of Office or Agency. The Company will
maintain in each place of payment of the Securities of any series established
pursuant to Section 2.03 an office or agency where Securities of that series may
be presented or surrendered for payment, where Securities of that series may be
surrendered for registration of transfer or exchange and where notices and
demands to or upon the Company in respect of the Securities of that series and
this Indenture may be served. The Company will give prompt written notice to the
Trustee of the location, and any change in the location, of such office or
agency. If at any time the Company shall fail to maintain any such required
office or agency or shall fail to furnish the Trustee with the address thereof,
such presentations, surrenders, notices and demands may be made or served at the
Corporate Trust Office of the Trustee, and the Company hereby appoints the
Trustee as its agent to receive all such presentations, surrenders, notices and
demands.
The Company may also from time to time designate one or more other
offices or agencies where the Securities of one or more series may be presented
or surrendered for any or all such purposes and may from time to time rescind
such designations; provided, however, that no such designation or rescission
shall in any manner relieve the Company of its obligation to maintain an office
or agency in each place of payment for Securities of any series for such
purposes. The Company will give prompt written notice to the Trustee of any such
designation or rescission and of any change in the location of any such other
office or agency.
Section 4.03. Money for Securities Payments to Be Held in Trust. If the
Company shall at any time act as its own Paying Agent with respect to the
Securities of any series, it will, on or before each due date of the principal
of and any interest on any of the Securities of that series, segregate and hold
in trust for the benefit of the Persons entitled thereto a sum sufficient to pay
the principal and any interest so becoming due until such sums shall be paid to
such Persons or otherwise disposed of as herein provided and will promptly
notify the Trustee of its action or failure so to act.
Whenever the Company shall have one or more Paying Agents for any series
of Securities, it will, prior to each due date of the principal of and any
interest on any Securities of that series, deposit with a Paying Agent a sum
sufficient to pay the principal and any interest so becoming due, such sum to be
held in trust for the
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benefit of the Persons entitled to such principal or interest, and (unless the
Person that is such Paying Agent is also the Trustee) the Company will promptly
notify the Trustee of its action or failure so to act.
The Company will cause each Person that acts as a Paying Agent for the
Securities of any series (unless such Person also acts as Trustee) to execute
and deliver to the Trustee an instrument in which such Paying Agent shall agree
with the Trustee, subject to the provisions of this Section, that such Paying
Agent will:
(a) hold all sums held by it for the payment of the principal
of or any interest on Securities of that series in trust for the benefit
of the Persons entitled thereto until such sums shall be paid to such
Persons or otherwise disposed of as herein provided;
(b) give the Trustee notice of any default by the Company (or
any other obligor upon the Securities of that series) in the making of
any payment of principal or interest on the Securities of that series;
and
(c) at any time during the continuance of any such default or
Event of Default, upon the written request of the Trustee, forthwith pay
to the Trustee all sums so held in trust by such Paying Agent.
The Company may at any time, for the purpose of obtaining the
satisfaction and discharge of this Indenture or for any other purpose, pay, or
by written request direct any Paying Agent to pay, to the Trustee all sums held
in trust by the Company or such Paying Agent, such sums to be held by the
Trustee upon the same trusts as those upon which such sums were held by the
Company or such Paying Agent; and, upon such payment by any Paying Agent to the
Trustee, such Paying Agent shall be released from all further liability with
respect to such money.
Subject to any applicable escheat laws, any money deposited with the
Trustee or any Paying Agent, or then held by the Company, in trust for the
payment of the principal of and any interest on any Security of any series and
remaining unclaimed for two years after such principal and any interest has
become due and payable shall be paid to the Company upon written request by the
Company, or (if then held by the Company) shall be discharged from such trust;
and the Holder of such Security shall thereafter, as an unsecured general
creditor, look only to the Company for payment thereof, and all liability of the
Trustee or such Paying Agent with respect to such trust money, and all liability
of the Company as trustee thereof, shall thereupon cease; provided, however,
that the Trustee or such Paying Agent, before being required to make any such
repayment, may at the expense of the Company mail to each holder and cause to be
published once, in an Authorized Newspaper, notice that such money remains
unclaimed and that, after a date specified therein, which shall
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not be less than 30 days from the later of the date of such publication or the
most recent date of such mailing, any unclaimed balance of such money then
remaining will be repaid to the Company.
Section 4.04. Restrictions on Secured Debt. The Company will not
itself, and will not permit any Restricted Subsidiary to, incur, issue, assume
or guarantee any Debt secured by a Mortgage on any Principal Property or on any
shares of stock or Debt of any Restricted Subsidiary, whether such Principal
Property, stock or Debt is now owned or shall hereafter be acquired, without
effectively providing that the Securities (together with, if the Company shall
so determine, any other Debt of the Company or such Restricted Subsidiary then
existing or thereafter created which is not subordinate to the Securities) shall
be secured equally and ratably with (or prior to) such secured Debt, so long as
such secured Debt shall be so secured, unless, after giving effect thereto, the
aggregate amount of all such secured Debt (other than that permitted below) plus
all Attributable Debt of the Company and its Restricted Subsidiaries in respect
of sale and leaseback transactions (other than those sale and leaseback
transactions permitted by subsections (a), (c) and (d) of Section 4.05) would
not exceed 10% of the Consolidated Net Tangible Assets of the Company; provided,
however, that this Section shall not apply to, and there shall be excluded from
secured Debt in any computation under this Section, Debt secured by:
(a) Mortgages existing at the date hereof on any
property owned or leased by the Company or any Restricted
Subsidiary at that date securing Debt outstanding on that date;
(b) Mortgages on any property, shares of stock or Debt
existing at the time of acquisition thereof (including
acquisition through merger or consolidation) or Mortgages on
Principal Properties acquired or constructed after the date of
this Indenture to secure the payment of all or any part of the
purchase price or construction cost thereof or to secure any
Debt incurred or for which a firm commitment is obtained prior
to, at the time of, or within 120 days after, the acquisition of
such property or the completion of any such construction for the
purpose of financing all or any part of the purchase price or
construction cost thereof;
(c) Mortgages on property of, or on any shares of stock
or Debt of, any corporation existing at the time such
corporation becomes a Restricted Subsidiary;
(d) Mortgages in favor of the United States of America,
any State thereof or the Commonwealth of Puerto Rico, any
political subdivision thereof or any agency, department or other
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instrumentality thereof, to secure progress, advance or other
payments pursuant to any contract or provision of any statute;
(e) Mortgages in favor of the Company or any Restricted
Subsidiary;
(f) Mortgages in connection with the issuance of tax-
exempt industrial development bonds under the Internal Revenue
Code of 1986, as amended, or as hereafter amended, to finance
all or any part of the purchase price of or the cost of
constructing or improving property; provided that any such
Mortgage shall be limited to such property acquired or
constructed or such improvement and to theretofore substantially
unimproved real property on which such construction or
improvement is located; and provided, further that the Company
and Restricted Subsidiaries may further secure all or any part
of such purchase price or the cost of construction or the
improvement by an interest on additional property of the Company
and Restricted Subsidiaries only to the extent necessary for the
construction, maintenance and operation of, and access to, such
property so acquired or constructed or such improvement;
(g) Mortgages under workers' compensation laws,
unemployment insurance laws or similar legislation, or good
faith deposits in connection with bids, tenders, contracts
(other than for the repayment of Debt), or deposits to secure
public or statutory obligations of the Company or any Restricted
Subsidiary, or deposits of cash or obligations of the United
States of America to secure surety and appeal bonds to which the
Company or any Restricted Subsidiary is a party or in lieu of
such bonds, or pledges or deposits for similar purposes in the
ordinary course of business, or liens imposed by law, such as
laborers' or others employees', carriers', warehousemen's,
mechanics', materialmen's and vendors' liens and liens arising
out of judgments or awards against the Company or any Restricted
Subsidiary with respect to which the Company or such Restricted
Subsidiary at the time shall be prosecuting an appeal or
proceedings for review and with respect to which it shall have
secured a stay of execution pending such appeal or proceedings
for review, or liens for property taxes not yet subject to
penalties for nonpayment or the amount or validity of which is
being in good faith contested by appropriate proceedings by the
Company or any Restricted Subsidiary, as the case may be, or
minor survey exceptions, minor encumbrances, easements or
reservations of, or rights of others for, rights of way, sewers,
electric lines, telegraph and telephone lines and other similar
purposes, or zoning or other
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restrictions as to the use of real properties, which liens,
exceptions, encumbrances, easements, reservations, rights and
restrictions do not, in the opinion of the Company, in the
aggregate materially detract from the value of said properties
or materially impair their use in the operation of the business
of the Company and the Restricted Subsidiaries; and
(h) Any extension, renewal or replacement (or
successive extensions, renewals or replacements), as a whole or
in part, of any Mortgage referred to in the foregoing clauses
(a) to (g), inclusive; provided that (i) such extension, renewal
or replacement Mortgage shall be limited to all or part of the
same property, shares of stock or Debt that secured the Mortgage
extended, renewed or replaced (plus improvements on such
property) and (ii) the Debt secured by such Mortgage at the time
of such extension, renewal or replacement is not increased.
Section 4.05. Limitation on Sale and Leasebacks. The Company will not
itself, and it will not permit any Restricted Subsidiary to, enter into any
arrangement with any Person (not including the Company or any Restricted
Subsidiary) or to which any such Person is a party, providing for the leasing by
the Company or any such Restricted Subsidiary for a period, including renewals,
of three years or more of any Principal Property which has been or is to be sold
or transferred, more than 120 days after the acquisition, completion of
construction or commencement of full operation thereof, by the Company or any
such Restricted Subsidiary to such Person or to any other Person to whom funds
have been or are to be advanced by such Person on the security of such Principal
Property (herein referred to as a "sale and leaseback transaction") unless:
(a) the commitment to enter into such sale and
leaseback transaction was entered into within the aforesaid 120
day period, or
(b) the Company or such Restricted Subsidiary could
create Debt secured by a Mortgage pursuant to Section 4.04 on
the Principal Property to be leased back in an amount equal to
the Attributable Debt with respect to such sale and leaseback
transaction without equally and ratably securing the Securities,
or
(c) the Company, within 120 days after the sale or
transfer shall have been made by the Company or by any such
Restricted Subsidiary, applies an amount (the "Designated
Amount") equal to the greater of (i) the net proceeds of the
sale of the Principal Property sold and leased back pursuant to
such arrangement and (ii) the fair market value of the Principal
Property so sold and leased back at the
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time of entering into such arrangement (as determined by the
Board of Directors of the Company), to the retirement of Funded
Debt of the Company, provided that the amount required to be
applied to the retirement of Funded Debt of the Company shall be
reduced by (i) the principal amount of any Securities delivered
within 120 days after such sale or transfer to the Trustee for
retirement and cancellation, and (ii) the principal amount of
Funded Debt, other than Securities, voluntarily retired by the
Company within 120 days after such sale or transfer.
Notwithstanding the foregoing, no retirement referred to in this
clause (c) may be effected by payment at maturity or pursuant to
any mandatory sinking fund payment or any mandatory prepayment
provision, or
(d) the Company or any Restricted Subsidiary, within a
period commencing 180 days prior to and ending 180 days after
the date of the sale or transfer in respect of such sale and
leaseback transaction, has expended or reasonably expects to
expend within such period any monies to acquire or construct any
Principal Property or Properties (and such amounts expended or
to be expended have not been applied to other sale and leaseback
transactions pursuant to this subsection (d)), in which case the
Company or any Restricted Subsidiary shall be entitled to enter
into such sale and leaseback transaction to the extent that the
Designated Amount in respect thereof is less than such monies
expended or to be expended, provided that if such designated
Amount exceeds such monies expended or to be expended, the
Company shall be entitled to enter into such sale and leaseback
transaction if (i) the Attributable Debt applicable to the
proportion of the Designated Amount represented by such excess
can be incurred under subsection (b) above, or (ii) such excess
is applied as set forth in subsection (c) above, or (iii) any
combination of clauses (i) and (ii) above is elected by the
Company or any Restricted Subsidiary in respect of such excess,
and provided further that if such monies expended or to be
expended exceed the Designated Amount in respect of such sale
and leaseback transaction, such excess may be applied as
provided in this subsection (d) to any other sale and leaseback
transaction occurring within such period.
Section 4.06. Statement by Officers as to Default; Notice of Certain
Events of Default. Within 120 days after the close of each fiscal year of the
Company ending after the date hereof, the Company shall file with the Trustee a
certificate signed by the chairman of the Board of Directors, the chief
executive officer, the president or any vice president and by the chief
financial officer, the treasurer, the controller or the secretary or any
assistant secretary of the Company (provided that one such signatories shall be
the Company's principal executive officer, principal
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financial officer or principal accounting officer), as to such officer's
knowledge of the Company's compliance with all conditions and covenants under
this Indenture (without regard to any period of grace or requirement of notice
provided hereunder) and in the event any Default of the Company exists, such
officers shall specify the nature of such Default.
The Company covenants to (a) file with the Trustee, within 15 days after
the Company is required to file the same with the Commission, copies of the
annual reports and of the information, documents and other reports which the
Company may be required to file with the Commission pursuant to Section 13 or
Section 15(d) of the Exchange Act (or copies of such portions thereof as may be
prescribed by the Commission by rules and regulations); or, if the Company is
not required to file with the Commission information, documents or reports
pursuant to either Section 13 or Section 15(d) of the Exchange Act, then the
Company will file with the Trustee and will file with the Commission, in
accordance with rules and regulations prescribed by the Commission, such of the
supplementary and periodic information, documents and reports required pursuant
to Section 13 of the Exchange Act in respect of a security listed and registered
on a national securities exchange as may be prescribed in such rules and
regulations; (b) file with the Trustee and the Commission, in accordance with
the rules and regulations prescribed from time to time by the Commission, such
additional information, documents and reports with respect to compliance by the
Company with the conditions and covenants provided for in this Indenture as may
be required by such rules and regulations, including, in the case of annual
reports, if required by such rules and regulations, certificates or opinions of
independent public accountants, conforming to the requirements of Sections 10.02
and 10.03, as to compliance with conditions or covenants, compliance with which
is subject to verification by accountants; (c) mail, or cause the Trustee to
mail, to the Holders of the Securities, as the names and addresses of such
Holders appear on the Security Register, such information, documents or reports
required to be filed with the Trustee pursuant to the provisions of paragraphs
(a) and (b) of this Section 4.06 as may be required by rules and regulations
prescribed by the Commission; and (d) remain subject to the informational filing
requirements of the Commission pursuant to the Exchange Act.
Within 5 days after the occurrence thereof, the Company shall notify the
Trustee of each Default or Event of Default.
Section 4.07. Waiver of Certain Covenants. The Company may omit in any
particular instance to comply with any term, provision or condition set forth in
Sections 4.04 and 4.05 with respect to the Securities of any series if before
the time for such compliance the Holders of a majority in principal amount of
the Outstanding Securities of such series shall, by Act of such Holders, either
waive such compliance in such instance or generally waive compliance with such
term, provision or condition, but no such waiver shall extend to or affect such
term, provision or
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condition except to the extent so expressly waived, and, until such waiver shall
become effective, the obligations of the Company and the duties of the Trustee
in respect of any such term, provision or condition shall remain in full force
and effect.
ARTICLE 5
Successor Corporation
Section 5.01. When Company May Merge, Etc.. The Company shall not
consolidate or merge with any other Person or sell, convey, assign, transfer,
lease or otherwise dispose of all or substantially all its properties and assets
as an entirety in one transaction or a series of transactions to any Person, and
the Company shall not permit any Person to consolidate with or merge into the
Company or sell, convey, assign, transfer, lease or otherwise dispose of all or
substantially all of its properties or assets to the Company, unless:
(a) either (i) the Company shall be the surviving Person or
such (ii) Person shall be a corporation organized and validly existing
under the laws of the United States of America or any State thereof or
the District of Columbia and shall expressly assume by a supplemental
indenture, executed and delivered to the Trustee, in form satisfactory
to the Trustee, all of the Company's obligations under the Securities
and under this Indenture;
(b) immediately before and after such transaction or each
element of such series, no Default or Event of Default shall have
occurred and be continuing;
(c) if, as a result of any such consolidation or merger or such
conveyance, transfer or lease, properties or assets of the Company would
become subject to a mortgage, pledge, lien, security interest or other
encumbrance which would not be permitted by this Indenture, the Company
or such successor corporation or Person, as the case may be, takes such
steps as shall be necessary effectively to secure the Securities equally
and ratably with (or prior to) all indebtedness secured thereby; and
(d) giving effect to such transaction will not cause an event
of default under any mortgage, bond, debenture, note or other instrument
or obligation that the Company or any Subsidiary of the Company is a
party to or bound by.
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The Company shall deliver to the Trustee prior to the consummation of
the proposed transaction an Officers' Certificate certifying to the foregoing
effects, and an Opinion of Counsel stating that the proposed transaction and any
such supplemental indenture comply with this Indenture.
Section 5.02. Successor Substituted. Upon any consolidation or merger,
or any sale, conveyance, assignment, transfer, lease or other disposition of all
or substantially all of the properties and assets of the Company in accordance
with Section 5.01, the successor Person formed by such consolidation or into or
with which the Company is merged or to which such sale, conveyance, assignment,
transfer, lease or other disposition is made shall succeed to, and be
substituted for, and may exercise every right and power of, the Company under
this Indenture with the same effect as if such successor Person had been named
as the Company herein; and, except in the case of a lease, the predecessor
Person shall be relieved of all obligations and covenants under this Indenture
and the Securities.
ARTICLE 6
Defaults and Remedies
Section 6.01. Events of Default. An Event of Default shall occur with
respect to the Securities of any series if there shall occur (whatever the
reason for such Event of Default and whether it shall be voluntary or
involuntary or be effected by operation of law or pursuant to any judgment,
decree or order of any court or any order, rule or regulation of any
administrative or governmental body):
(a) Any failure to pay any installment of interest on any
Securities of such series, when and as the same shall become payable as
therein expressed, and such failure shall continue for a period of 30
days; or
(b) Any failure to pay the principal of any Securities of such
series when and as the same shall become due and payable as therein
expressed, whether at the stated maturity thereof or otherwise; or
(c) Any default in the deposit of any sinking fund payment,
when and as due by the terms of any Security of that series; or
(d) Any failure to perform or observe any other of the
covenants, conditions or agreements on the part of the Company to be
performed or observed pursuant to this Indenture or in the Securities of
such series (other than a covenant, condition or agreement a Default in
whose performance or whose breach is elsewhere in this Section 6.01
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specifically dealt with), and such failure shall continue for a period
of 60 days after written notice by registered or certified mail
specifying the failure and that the same is a Default and requiring the
Company to remedy such failure shall have been given to the Company from
the Trustee or to the Company and to the Trustee from the Holders of not
less than 25% of the principal amount of the Securities of such series
then outstanding; or
(e) The Company shall commence, or file a petition commencing,
a voluntary case under the United States Bankruptcy Code or any similar
Federal or state law for the relief of debtors (the "Bankruptcy Law");
or the Company shall file a petition or answer or consent seeking
reorganization, arrangement, adjustment, or composition under any
Bankruptcy Law, or shall consent to the filing of any such petition,
answer, or consent; or the Company shall appoint, or consent to the
appointment of, a custodian, receiver, liquidator, trustee, assignee,
sequestrator or other similar official in bankruptcy or insolvency of
the Company or of any substantial part of its property or shall make an
assignment for the benefit of creditors; or shall admit in writing its
inability to pay its debts generally as they become due; or shall take
corporate action in furtherance of any such action; or
(f) Any order for relief against the Company shall have been
entered by a court having jurisdiction in the premises under any
provision of Bankruptcy Law and such order shall have continued
undischarged or unstayed for a period of 60 days; or a decree or order
by a court having jurisdiction in the premises shall have been entered
approving as properly filed a petition seeking reorganization,
arrangement, adjustment, or composition of the Company under any
Bankruptcy Law, and such decree or order shall have continued
undischarged or unstayed for a period of 60 days; or a decree or order
of court having jurisdiction in the premises for the appointment of a
custodian, receiver, similar official in bankruptcy or insolvency of the
Company or of any substantial part of its property, or for the winding
up or liquidation of its affairs, shall have been entered, and such
decree or order shall have remained in force undischarged or unstayed
for a period of 60 days; or
(g) Any other Event of Default established pursuant to Section
2.03 for the Securities of such series.
Section 6.02. Acceleration. If an Event of Default with respect to the
Securities of any series then outstanding occurs and is continuing, then, and in
each and every such case, except for any Securities the principal of which shall
have
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already become due and payable, either the Trustee or the Holders of not
less than 25% in aggregate principal amount of the Securities of such series
then outstanding hereunder (each such series treated as a separate class) by
notice in writing to the Company (and to the Trustee if given by Holders), may
declare the entire principal (or, if the Securities of any such series are
Original Issue Discount Securities, such portion of the principal amount as may
be specified in the terms of such series established pursuant to Section 2.03)
of all Securities of such series, and the interest accrued thereon, if any, to
be due and payable immediately, and upon any such declaration the same shall
become immediately due and payable.
However, if at any time after the entire principal (or, if the
Securities are Original Issue Discount Securities, such portion of the principal
as may be specified in the terms thereof established pursuant to Section 2.03)
of the Securities of any series shall have been so declared due and payable, and
before any judgment or decree for the payment of the moneys due shall have been
obtained or entered as hereinafter provided, the Company shall have paid or
shall have deposited with the Trustee a sum sufficient to pay all overdue
interest and principal of all Securities of such series which shall have become
due otherwise than by acceleration (with interest upon such principal and, to
the extent that payment of such interest is enforceable under applicable law,
upon overdue installments of interest, at the rate specified therefor in such
Securities or, if not so specified, at the same rate as the rate of interest or
Yield to Maturity (in the case of Original Issue Discount Securities) specified
in the Securities of each such series to the date of such payment or deposit)
and such amount as shall be sufficient to cover all amounts owing the Trustee
under Section 7.07, and if all Events of Default under the Indenture, other than
the non-payment of the principal of Securities which shall have become due by
acceleration, shall have been cured, waived or otherwise remedied as provided
herein, then and in every such case the Holders of a majority in aggregate
principal amount of all the then outstanding Securities of such series that have
been accelerated (each such series voting as a separate class), by written
notice to the Company and to the Trustee, may waive all defaults with respect to
each such series and rescind and annul such declaration and its consequences,
but no such waiver or rescission and annulment shall extend to or shall affect
any subsequent default or shall impair any right consequent thereon.
For all purposes under this Indenture, if a portion of the principal of
any Original Issue Discount Securities shall have been accelerated and declared
due and payable pursuant to the provisions hereof, then, from and after such
declaration, unless such declaration has been rescinded and annulled, the
principal amount of such Original Issue Discount Securities, or, if a formula
for calculating the principal due in the event of acceleration is specified in
the terms of any Original Issue Discount Securities, the amount determined by
application of such formula, shall be deemed, for all purposes hereunder, to be
such portion
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of the principal thereof as shall be due and payable as a result of such
acceleration, and payment of such portion of the principal thereof as shall be
due and payable as a result of such acceleration, together with interest, if
any, thereon and all other amounts owing thereunder, shall constitute payment in
full of such Original Issue Discount Securities.
Section 6.03. Other Remedies. If an Event of Default with respect to the
Securities of any series occurs and is continuing, the Trustee may pursue, in
its own name or as trustee of an express trust, any available remedy by
proceeding at law or in equity to collect the payment of principal of and
interest on the Securities of such series or to enforce the performance of any
provision of the Securities of such series or this Indenture.
The Trustee may maintain a proceeding even if it does not possess any of
the Securities or does not produce any of them in the proceeding.
Section 6.04. Waiver of Past Defaults. Subject to Sections 6.02, 6.07
and 9.02, the Holders of at least a majority in principal amount (or, if the
Securities are Original Issue Discount Securities, such portion of the principal
as may be specified in the terms thereof established pursuant to Section 2.03)
of the outstanding Securities of each series affected (each such series voting
as a separate class), by notice to the Trustee, may waive an existing Default or
Event of Default with respect to the Securities of such series and its
consequences, except a Default in the payment of principal of or interest on any
Security as specified in clause (a) or (b) of Section 6.01 or in respect of a
covenant or provision of this Indenture which cannot be modified or amended
without the consent of the Holder of each outstanding Security affected. Upon
any such waiver, such Default shall cease to exist, and any Event of Default
with respect to the Securities of such series arising therefrom shall be deemed
to have been cured, for every purpose of this Indenture; but no such waiver
shall extend to any subsequent or other Default or Event of Default or impair
any right consequent thereto.
Section 6.05. Control of Majority. Subject to Sections 7.01 and 7.02(e),
the Holders of at least a majority in aggregate principal amount (or, if any
Securities are Original Issue Discount Securities, such portion of the principal
as may be specified in the terms thereof established pursuant to Section 2.03)
of the outstanding Securities of each series affected (each such series voting
as a separate class) may direct the time, method and place of conducting any
proceeding for any remedy available to the Trustee or exercising any trust or
power conferred on the Trustee with respect to the Securities of such series by
this Indenture; provided that the Trustee may refuse to follow any direction
that conflicts with law or this Indenture, that may involve the Trustee in
personal liability or that the Trustee determines in good faith may be unduly
prejudicial to the rights of Holders not joining in the giving of such
direction; and provided further that the Trustee may take any other action it
deems proper that is not inconsistent with any directions received from Holders
of Securities pursuant to this Section 6.05.
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Section 6.06. Limitation on Suits. No Holder of any Security of any
series may institute any proceeding, judicial or otherwise, with respect to this
Indenture or the Securities of such series, or for the appointment of a receiver
or trustee, or for any other remedy hereunder, unless:
(a) such Holder has previously given to the Trustee written
notice of a continuing Event of Default with respect to the Securities
of such series;
(b) the Holders of at least 25% in aggregate principal amount
of outstanding Securities of such series shall have made written request
to the Trustee to institute proceedings in respect of such Event of
Default in its own name as Trustee hereunder;
(c) such Holder or Holders have offered to the Trustee
indemnity reasonably satisfactory to the Trustee against any costs,
liabilities or expenses to be incurred in compliance with such request;
(d) the Trustee for 60 days after its receipt of such notice,
request and offer of indemnity has failed to institute any such
proceeding; and
(e) during such 60-day period, the Holders of a majority in
aggregate principal amount of the outstanding Securities of such series
have not given the Trustee a direction that is inconsistent with such
written request.
A Holder may not use this Indenture to prejudice the rights of another
Holder or to obtain a preference or priority over such other Holder.
Section 6.07. Rights of Holders to Receive Payment. Notwithstanding any
other provision of this Indenture, the right of any Holder of a Security to
receive payment of principal of or interest, if any, on such Holder's Security
on or after the respective due dates expressed on such Security (or in the case
of redemption, the redemption date, or in the case of repayment, at the option
of the Holders, on the repayment date), which right is unconditional and
absolute, or to bring suit for the enforcement of any such payment on or after
such respective dates, shall not be impaired or affected without the consent of
such Holder.
Section 6.08. Collection Suit by Trustee. If an Event of Default with
respect to the Securities of any series in payment of principal or interest
specified in clause (a) or (b) of Section 6.01 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 (or such portion thereof as specified
in the terms established pursuant to
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Section 2.03 of Original Issue Discount Securities) of principal of, and accrued
interest remaining unpaid on, together with interest on overdue principal of,
and, to the extent that payment of such interest is lawful, interest on overdue
installments of interest on, the Securities of such series, in each case at the
rate or Yield to Maturity (in the case of Original Issue Discount Securities)
specified in such Securities or, if not so specified, at the same rate as the
rate of interest or Yield to Maturity (in such case) specified for such
Securities, and such further amount as shall be sufficient to cover all amounts
owing the Trustee under Section 7.07.
If an Event of Default with respect to the Securities of any series
occurs and is continuing, the Trustee may in its discretion proceed to protect
and enforce its rights and the rights of the Holders of the Securities of such
series by such appropriate judicial proceedings as the Trustee shall deem most
effectual to protect and enforce any such rights, whether for the specific
enforcement of any covenant or agreement in this Indenture or in aid of the
exercise of any power granted herein, or to enforce any other proper remedy.
Section 6.09. Trustee May File Proofs of Claim. The Trustee may file
such proofs of claim and other papers or documents as may be necessary or
advisable in order to have the claims of the Trustee (including any claim for
amounts due the Trustee under Section 7.07) and the Holders allowed in any
judicial proceedings relative to the Company (or any other obligor on the
Securities), its creditors or its property and shall be entitled and empowered
to collect and receive any moneys, securities or other property payable or
deliverable upon conversion or exchange of the Securities or upon any such
claims and to distribute the same, and any custodian, receiver, assignee,
trustee, liquidator, sequestrator or other similar official in any such judicial
proceeding is hereby authorized by each Holder to make such payments to the
Trustee and, in the event that the Trustee shall consent to the making of such
payments directly to the Holders, to pay to the Trustee any amount due to it
under Section 7.07. Nothing herein contained shall be deemed to empower the
Trustee to authorize or consent to, or accept or adopt on behalf of any Holder,
any plan of reorganization, arrangement, adjustment or composition affecting the
Securities or the rights of any Holder thereof, or to authorize the Trustee to
vote in respect of the claim of any Holder in any such proceeding.
Section 6.10. Trustee May Enforce Claims Without Possession of
Securities. All rights of action and claims under this Indenture or the
Securities may be prosecuted and enforced by the Trustee without the possession
of any of the Securities or the production thereof in any proceeding relating
thereto, and any such proceeding instituted by the Trustee shall be brought in
its own name as trustee of an express trust, and any recovery of judgment shall,
after provision for the payment of the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, be for the
ratable benefit of the Holders of the Securities in respect of which such
judgment has been recovered.
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Section 6.11. Application of Proceeds. Any moneys collected by the
Trustee pursuant to this Article in respect of the Securities of any series
shall be applied in the following order at the date or dates fixed by the
Trustee and, in case of the distribution of such moneys on account of principal
or interest, upon presentation of the several Securities in respect of which
moneys have been collected and stamping (or otherwise noting) thereon the
payment, or issuing Securities of such series and tenor in reduced principal
amounts in exchange for the presented Securities of such series and tenor if
only partially paid, or upon surrender thereof if fully paid:
FIRST: To the payment of all amounts due the Trustee under Section 7.07;
SECOND: In case the principal of the Securities of such series in
respect of which moneys have been collected shall not have become and be then
due and payable, to the payment of interest on the Securities of such series in
default in the order of the maturity of the installments of such interest, with
interest (to the extent that such interest has been collected by the Trustee)
upon the overdue installments of interest, at the rate specified therefor in
such Securities or, if not so specified, at the same rate as the rate of
interest or Yield to Maturity (in the case of Original Issue Discount
Securities) specified in such Securities, such payments to be made ratably to
the Persons entitled thereto, without discrimination or preference;
THIRD: In case the principal of the Securities of such series in respect
of which moneys have been collected shall have become and shall be then due and
payable, to the payment of the whole amount then owing and unpaid upon all the
Securities of such series for principal and interest, with interest upon the
overdue principal, and (to the extent that such interest has been collected by
the Trustee) upon overdue installments of interest, at the rate specified
therefor in such Securities or, if not so specified, at the same rate as the
rate of interest or Yield to Maturity (in the case of Original Issue Discount
Securities) specified in the Securities of such series; and in case such moneys
shall be insufficient to pay in full the whole amount so due and unpaid upon the
Securities of such series, then to the payment of such principal and interest or
Yield to Maturity, without preference or priority of principal over interest or
Yield to Maturity, or of interest or Yield to Maturity over principal, or of any
installment of interest over any other installment of interest, or of any
Security of such series over any other Security of such series, ratably to the
aggregate of such principal and accrued and unpaid interest or Yield to
Maturity; and
FOURTH: To the payment of the remainder, if any, to the Company or any
other Person lawfully entitled thereto.
Section 6.12. Restoration of Rights and Remedies. If the Trustee or any
Holder has instituted any proceeding to enforce any right or remedy under this
Indenture and such proceeding has been discontinued or abandoned for any reason,
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or has been determined adversely to the Trustee or to such Holder, then, and in
every such case, subject to any determination in such proceeding, the Company,
the Trustee and the Holders shall be restored severally and respectively to
their former positions hereunder and thereafter all rights and remedies of the
Company, Trustee and the Holders shall continue as though no such proceeding had
been instituted.
Section 6.13. 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, in either case in respect to the
Securities of any series, a court may require any party litigant in such suit to
file an undertaking to pay the costs of the suit, and the court 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; but the provisions of this
Section shall not apply to any suit instituted by the Company, to any suit
instituted by the Trustee, to any suit instituted by any Holder, or group of
Holders, holding in the aggregate more than 10% in principal amount of the
outstanding Securities of any series, or to any suit instituted by any Holder
for the enforcement of the payment of the principal of or interest on any
Security on or after the maturity of such Security (or, in the case of
redemption, on or after the redemption date, or in the case of repayment, at the
option of the Holders, on the repayment date).
Section 6.14. Rights and Remedies Cumulative. Except as otherwise
provided with respect to the replacement or payment of mutilated, destroyed,
lost or wrongfully taken Securities in Section 2.07, no right or remedy herein
conferred upon or reserved to the Trustee or to the Holders is intended to be
exclusive of any other right or remedy, and every right and remedy shall, to the
extent permitted by law, be cumulative and in addition to every other right and
remedy given hereunder or now or hereafter existing at law or in equity or
otherwise. The assertion or employment of any right or remedy hereunder, or
otherwise, shall not prevent the concurrent assertion or employment of any other
appropriate right or remedy.
Section 6.15. Delay or Omission Not Waiver. No delay or omission of the
Trustee or of any Holder to exercise any right or remedy accruing upon any Event
of Default shall impair any such right or remedy or constitute a waiver of any
such Event of Default or an acquiescence therein. Every right and remedy given
by this Article 6 or by law to the Trustee or to the Holders may be exercised
from time to time, and as often as may be deemed expedient, by the Trustee or by
the Holders, as the case may be.
Section 6.16. Waiver of Stay or Extension Laws. The Company covenants
(to the extent 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 whenever 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
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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 7
Trustee
Section 7.01. General. The duties and responsibilities of the Trustee
shall be as provided by the Trust Indenture Act and as set forth herein.
Notwithstanding the foregoing, no provision of this Indenture shall require the
Trustee to expend or risk its own funds or otherwise incur any financial
liability in the performance of any of its duties hereunder, or in the exercise
of any of its rights or powers, unless it receives indemnity satisfactory to it
against any loss, liability or expense. Whether or not therein expressly so
provided, every provision of this Indenture relating to the conduct or affecting
the liability of or affording protection to the Trustee shall be subject to the
provisions of this Article 7.
Section 7.02. Certain Rights of Trustee. Subject to Trust Indenture Act
Sections 315(a) through (d):
(a) The Trustee may rely and shall be protected in acting or
refraining from acting upon any resolution, certificate, Officers'
Certificate, Opinion of Counsel, statement, instrument, opinion, report,
notice, request, direction, consent, order, bond, debenture, note, other
evidence of indebtedness or other paper or document believed by it to be
genuine and to have been signed or presented by the proper Person or
Persons. The Trustee need not investigate any fact or matter stated in
the document, but the Trustee, in its discretion, may make such further
inquiry or investigation into such facts or matters as it may see fit,
and in the case of any such documents which by any provision hereof are
specifically required to be furnished to the Trustee, the Trustee shall
be under a duty to examine the same to determine whether or not they
conform to the requirements of this Indenture.
(b) Before the Trustee acts or refrains from acting, it may
require an Officers' Certificate and/or an Opinion of Counsel, which
shall conform to Section 10.03. The Trustee shall not be liable for any
action it takes or omits to take in good faith in reliance on such
certificate or opinion. Whenever in the administration of the trusts of
this Indenture the Trustee shall deem it necessary or desirable that a
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matter be proved or established prior to taking or suffering or omitting
any action hereunder, such matter (unless other evidence in respect
thereof be herein specifically prescribed) may, in the absence of
negligence or bad faith on the part of the Trustee, be deemed to be
conclusively proved and established by an Officers' Certificate
delivered to the Trustee, and such certificate, in the absence of
negligence or bad faith on the part of the Trustee, shall be full
warrant to the Trustee for any action taken, suffered or omitted by it
under the provisions of this Indenture upon the faith thereof.
(c) The Trustee may act through its attorneys and agents not
regularly in its employ and shall not be responsible for the misconduct
or negligence of any agent or attorney appointed with due care.
(d) 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 Board Resolution.
(e) The Trustee shall be under no obligation to exercise any of
the rights or powers vested in it by this Indenture at the request,
order or direction of any of the Holders, unless such Holders shall have
offered to the Trustee security or indemnity satisfactory to it against
the costs, expenses and liabilities that might be incurred by it in
compliance with such request or direction.
(f) The Trustee shall not be liable for any action it takes or
omits to take in good faith in accordance with Section 6.05 relating to
the time, method and place of conducting any proceeding for any remedy
available to the Trustee, or exercising any trust or power conferred
upon the Trustee, under this Indenture.
(g) The Trustee may consult with counsel and the written advice
of such counsel or any Opinion of Counsel shall be full and complete
authorization and protection in respect of any action taken, suffered or
omitted by it hereunder in good faith and in reliance thereon.
(h) 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, Officers' Certificate, Opinion of
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Counsel, Board Resolution, statement, instrument, opinion, report,
notice, request, consent, order, approval, appraisal, bond, debenture,
note, coupon, security, or other paper or document unless requested in
writing so to do by the Holders of not less than a majority in aggregate
principal amount of the Securities of all series affected then
outstanding; provided that, if the payment within a reasonable time to
the Trustee of the costs, expenses or liabilities likely to be incurred
by it in the making of such investigation is, in the opinion of the
Trustee, not reasonably assured to the Trustee by the security afforded
to it by the terms of this Indenture, the Trustee may require indemnity
satisfactory to it against such expenses or liabilities as a condition
to proceeding.
(i) The Trustee shall not be charged with knowledge of any
Default or Event of Default with respect to the Securities of any series
for which it is acting as Trustee unless either (i) a Responsible
Officer shall have actual knowledge of such Default or Event of Default
or (ii) written notice of such Default or Event of Default shall have
been given to the Trustee by the Company or any other obligor on such
Securities or by any other Holder of such Securities.
(j) The Trustee shall not be liable for any action taken,
suffered or omitted by it in good faith and believed by it to be
authorized or within the discretion or rights or powers conferred upon
it by this Indenture.
Section 7.03. Individual Rights of Trustee. The Person acting as the
Trustee, in its individual or any other capacity, may become the owner or
pledgee of Securities and may otherwise deal with the Company or its Affiliates
with the same rights it would have if it were not the Trustee. Any Agent may do
the same with like rights. However, the Trustee is subject to Trust Indenture
Act Sections 310(b) and 311.
Section 7.04. Trustee's Disclaimer. The recitals contained herein and in
the Securities (except the Trustee's certificate of authentication) shall be
taken as statements of the Company and not of the Trustee and the Trustee
assumes no responsibility for the correctness of the same. Neither the Trustee
nor any of its agents (a) makes any representation as to the validity or
adequacy of this Indenture or the Securities and (b) shall be accountable for
the Company's use or application of the proceeds from the Securities.
Section 7.05. Notice of Default. If any Default with respect to the
Securities of any series occurs and is continuing the Trustee shall give to all
Holders of Securities of such series notice of such Default known to it within
60 days after it
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occurs in the manner and to the extent provided in Section 313(c) of the Trust
Indenture Act, unless such Default shall have been cured or waived before the
mailing or publication of such notice; provided, however, that, except in the
case of a Default in the payment of the principal of, interest on or sinking
fund installment with respect to any Security, the Trustee shall be protected in
withholding such notice if a Responsible Officer in good faith determines that
the withholding of such notice is in the interests of such Holders.
Section 7.06. Reports by Trustee to Holders. Within 60 days after each
May 15, beginning with May 15, 1997, the Trustee shall mail to each Holder in
the manner and to the extent provided in Trust Indenture Act Section 313(c) a
brief report dated as of such May 15, if required by Trust Indenture Act Section
313(a).
Section 7.07. Compensation and Indemnity. The Company shall pay to the
Trustee such compensation as shall be agreed upon in writing from time to time
for its services. The compensation of the Trustee shall not be limited by any
law on compensation of a trustee of an express trust. The Company shall
reimburse the Trustee upon request for all reasonable out-of-pocket expenses,
disbursements and advances incurred or made by the Trustee without negligence or
bad faith in its part. Such expenses shall include the reasonable compensation
and expenses of the Trustee's agents, counsel and other Persons not regularly in
its employ.
The Company shall indemnify each of the Trustee, any predecessor Trustee
and their officers, directors and employees, for, and hold each of them harmless
against, any loss, liability or expense incurred by any of them without
negligence or bad faith on the part of any of them arising out of or in
connection with the acceptance or administration of this Indenture or the trusts
hereunder, the issuance of the Securities of any series and the performance of
duties under this Indenture and the Securities, including the costs and expenses
of defending against or investigating any claim of liability and of complying
with any process served upon it or any of them in connection with the exercise
or performance of any of the powers or duties of the Trustee under this
Indenture and the Securities.
The obligations of the Company under this Section 7.07 to compensate the
Trustee, to indemnify the Trustee, each predecessor Trustee and their officers,
directors and employees and to pay or reimburse the Trustee for expenses,
disbursements and advances shall constitute additional indebtedness hereunder
and shall survive the resignation or removal of the Trustee, the satisfaction
and discharge of this Indenture or the rejection or termination of this
Indenture under Bankruptcy Law. Such additional indebtedness shall be a senior
claim to that of the Securities upon all property and funds held or collected by
the Trustee as such, except funds held in trust for the benefit of the Holders
of particular Securities, and the Securities are hereby subordinated to such
senior claim.
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Section 7.08. Replacement of Trustee. A resignation or removal of the
Trustee as Trustee with respect to the Securities of any series and an
appointment of a successor Trustee as Trustee with respect to the Securities of
any series shall become effective only upon the successor Trustee's acceptance
of appointment as provided in this Section 7.08.
The Trustee may resign as Trustee with respect to the Securities of any
series at any time by so notifying the Company in writing. The Holders of a
majority in principal amount of the outstanding Securities of any series may
remove the Trustee as Trustee with respect to the Securities of such series by
so notifying the Trustee in writing and may appoint a successor Trustee with
respect thereto with the consent of the Company. The Company, by a Board
Resolution, or, subject to an undertaking by any party litigant to such suit to
pay the costs of such suit, any Holder who has been a bona fide Holder of a
Security for at least six months, on behalf of himself and all others similarly
situated by petition to any court of competent jurisdiction, may remove the
Trustee as Trustee with respect to the Securities of any series if: (a) the
Trustee is no longer eligible under Section 7.10 of this Indenture; (b) the
Trustee is adjudged bankrupt or insolvent; (c) a receiver or other public
officer takes charge of the Trustee or its property; or (d) the Trustee becomes
incapable of acting.
If the Trustee resigns or is removed as Trustee with respect to the
Securities of any series, or if a vacancy exists in the office of Trustee with
respect to the Securities of any series for any reason, the Company, by a Board
Resolution, shall promptly appoint a successor Trustee with respect thereto.
Within one year after the successor Trustee takes office, the Holders of a
majority in principal amount of the outstanding Securities of such series may
appoint a successor Trustee in respect of such Securities to replace the
successor Trustee appointed by the Company. If the successor Trustee with
respect to the Securities of any series does not deliver its written acceptance
required by the next succeeding paragraph of this Section 7.08 within 30 days
after the retiring Trustee resigns or is removed, the retiring Trustee, the
Company or any bona fide Holder of a Security of such series for at least six
months may petition any court of competent jurisdiction for the appointment of a
successor Trustee with respect thereto.
A successor Trustee with respect to the Securities of any series shall
deliver a written acceptance of its appointment to the retiring Trustee and to
the Company. Immediately after the delivery of such written acceptance, subject
to the lien provided for in Section 7.07, (a) the retiring Trustee shall
promptly transfer all property held by it as Trustee in respect of the
Securities of such series to the successor Trustee, (b) the resignation or
removal of the retiring Trustee in respect of the Securities of such series
shall become effective and (c) the successor Trustee shall have all the rights,
powers and duties of the Trustee in respect of the Securities of such series
under this Indenture.
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Upon request of any such successor Trustee, the Company shall execute
any and all instruments for more fully and certainly vesting in and confirming
to such successor Trustee all such rights, powers and trusts referred to in the
preceding paragraph.
The Company shall promptly give notice of any resignation and any
removal of the Trustee with respect to the Securities of any series and each
appointment of a successor Trustee in respect of the Securities of such series
to all Holders of Securities of such series. Each notice shall include the name
of the successor Trustee and the address of its Corporate Trust Office.
Notwithstanding replacement of the Trustee with respect to the
Securities of any series pursuant to this Section 7.08, the Company's
obligations under Section 7.07 shall continue for the benefit of the retiring
Trustee and the retiring Trustee shall have no liability for the acts or
omissions of any successor Trustee.
Section 7.09. Successor Trustee by Merger, Etc. If the Trustee
consolidates with, merges or converts into, or transfers all or substantially
all of its corporate trust business to, another corporation or national banking
association, the resulting, surviving or transferee corporation or national
banking association without any further act shall be the successor Trustee with
the same effect as if the successor Trustee had been named as the Trustee
herein, provided such corporation or national banking association shall be
otherwise qualified and eligible under this Article. In case any Securities
shall have been authenticated, but not delivered, by the Trustee then in office,
any successor by merger, conversion or consolidation to such authenticating
Trustee may adopt such authentication and deliver the Securities so
authenticated with the same effect as if such successor Trustee had itself
authenticated such Securities.
Section 7.10. Eligibility. This Indenture shall always have a Trustee
who satisfies the requirements of Trust Indenture Act Section 310(a). 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. If at any time
the Trustee shall cease to be eligible in accordance with the provisions of this
Section, it shall resign immediately in the manner and with the effect
hereinafter specified in this Article.
Section 7.11. Money Held in Trust. The Trustee shall not be liable for
interest on any money received by it except as the Trustee may agree in writing
with the Company. Money held in trust by the Trustee need not be segregated from
other funds except to the extent required by law and except for money held in
trust under Article 8 of this Indenture.
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ARTICLE 8
Discharge of Indenture
Section 8.01. Defeasance Within One Year of Payment. Except as otherwise
provided in this Section 8.01, the Company may terminate its obligations under
the Securities of any series and this Indenture with respect to Securities of
such series if:
(a) all Securities of such series previously authenticated and
delivered (other than destroyed, lost or wrongfully taken Securities of
such series that have been replaced or paid pursuant to Section 2.07 or
Securities of such series for whose payment money or securities have
theretofore been held in trust and thereafter repaid to the Company, as
provided in Section 4.03) have been delivered to the Trustee for
cancellation and the Company has paid all sums payable by it hereunder;
or
(b) (i) all of the Securities of such series mature within one
year or are to be called for redemption within one year under
arrangements satisfactory to the Trustee for giving the notice of
redemption, (ii) the Company irrevocably deposits in trust with the
Trustee, as trust funds solely for the benefit of the Holders of such
Securities for that purpose, money or U.S. Government Obligations or a
combination thereof sufficient (unless such funds consist solely of
money, in the opinion of a nationally recognized firm of independent
public accountants expressed in a written certification thereof
delivered to the Trustee), without consideration of any reinvestment, to
pay the principal of and any interest on the Securities of such series
to maturity or redemption, as the case may be, and to pay all other sums
payable by it hereunder, (iii) such deposit will not result in a breach
or violation of or constitute a default under this Indenture or any
other agreement or instrument to which the Company is a party or by
which it is bound, and (iv) the Company delivers to the Trustee an
Officers' Certificate and an Opinion of Counsel, in each case stating
that all conditions precedent provided for herein relating to the
satisfaction and discharge of this Indenture with respect to the
Securities of such series and of the Securities of such series have been
complied with.
With respect to the foregoing clause (a), only the Company's obligations
under Section 7.07 in respect of the Securities of such series shall survive.
With respect to the foregoing clause (b), only the Company's obligations in
Sections 2.02, 2.03, 2.04, 2.05, 2.06, 2.07, 2.10, 2.11, 2.13, 4.02, 4.03, 7.07,
7.08, 8.04, and 8.05 in respect of the Securities of such
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<PAGE>
series shall survive until the Securities of such series are no longer
outstanding. Thereafter, only the Company's obligations in Sections 4.03 and
7.07 in respect of the Securities of such series shall survive. After any such
irrevocable deposit, the Trustee upon request shall acknowledge in writing the
discharge of the Company's obligations under the Securities of such series and
this Indenture with respect to the Securities of such series except for those
surviving obligations specified above.
Section 8.02. Defeasance. The Company will be deemed to have paid and
will be discharged from any and all obligations in respect of the Securities of
any series, the provisions of this Indenture will, except as provided below, no
longer be in effect with respect to the Securities of such series, the Trustee,
at the expense of the Company, shall execute proper instruments acknowledging
the same and the Securities of any such series will no longer be outstanding
pursuant to Section 2.08, on the 91st day after the following conditions shall
have been satisfied:
(a) the Company has irrevocably deposited in trust with the
Trustee as trust funds solely for the benefit of the Holders of the
Securities of such series, for payment of the principal of and any
interest on the Securities of such series, money or U.S. Government
Obligations or a combination thereof in an amount sufficient (unless
such funds consist solely of money, in the opinion of a nationally
recognized firm of independent public accountants expressed in a written
certification thereof delivered to the Trustee) without consideration of
any reinvestment and after payment of all federal, state and local taxes
or other charges and assessments in respect thereof payable by the
Trustee, to pay and discharge the principal of, any accrued interest on,
and any mandatory sinking fund payments in respect of the outstanding
Securities of such series to maturity or earlier redemption (irrevocably
provided for under arrangements satisfactory to the Trustee), as the
case may be;
(b) such deposit will not result in a breach or violation of,
or constitute a default under, this Indenture or any other agreement or
instrument to which the Company is a party or by which it is bound;
(c) no Default with respect to the Securities of such series
shall have occurred and be continuing on the date of such deposit;
(d) the Company shall have delivered to the Trustee (i) either
(A) a ruling directed to the Trustee received from the Internal Revenue
Service to the effect that the Holders of the Securities of such series
will not recognize income, gain or loss for federal income tax purposes
as a result of such deposit and will be subject to federal income tax on
the same amount and in the same manner and at the
52
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same times as would have been the case if such deposit had not been made
or (B) an Opinion of Counsel to the same effect as the ruling described
in clause (A) above and (ii) an Opinion of Counsel to the effect that
the Holders of the Securities of such series have a valid security
interest in the trust funds subject to no prior liens under the Uniform
Commercial Code or successor law, as then in effect in each applicable
jurisdiction (the "UCC");
(e) such deposit would not cause any Securities of such series
then listed on the New York Stock Exchange or other national securities
exchange to be delisted as a result thereof; and
(f) the Company shall have delivered to the Trustee an Officers'
Certificate and an Opinion of Counsel, in each case stating that all
conditions precedent provided for herein relating to the defeasance
contemplated by this Section 8.02 of the Securities of such series have
been complied with.
The Company's obligations in Sections 2.02, 2.03, 2.04, 2.05, 2.06,
2.07, 2.10, 2.11, 2.13, 4.02, 4.03, 7.07, 7.08, and 8.04 with respect to the
Securities of such series shall survive until such Securities are no longer
outstanding. Thereafter, only the Company's obligations in Sections 4.03 and
7.07 shall survive.
Section 8.03. Covenant Defeasance. The Company may omit to comply with
any term, provision or condition set forth in Sections 4.04 and 4.05 (or any
other specific covenant relating to the Securities of any series established
pursuant to Section 2.03 which may by its terms be defeased pursuant to this
Section 8.03), and such omission shall be deemed not to be an Event of Default
under clause (d) of Section 6.01 with respect to the outstanding Securities of a
series if:
(a) the Company has irrevocably deposited in trust with the
Trustee as trust funds solely for the benefit of the Holders of the
Securities of such series, for payment of the principal of and any
interest on the Securities of such series, money or U.S. Government
Obligations or a combination thereof in an amount sufficient (unless
such funds consist solely of money, in the opinion of a nationally
recognized firm of independent public accountants expressed in a written
certification thereof delivered to the Trustee) without consideration of
any reinvestment and after payment of all federal, state and local taxes
or other charges and assessments in respect thereof payable by the
Trustee, to pay and discharge the principal of, any interest on, and any
mandatory sinking fund payments in respect of the outstanding Securities
of such series to maturity or earlier
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redemption (irrevocably provided for under arrangements satisfactory to
the Trustee), as the case may be;
(b) such deposit will not result in a breach or violation of,
or constitute a default under, this Indenture or any other agreement or
instrument to which the Company is a party or by which it is bound;
(c) no Default with respect to the Securities of such series
shall have occurred and be continuing on the date of such deposit;
(d) the Company shall have delivered to the Trustee an Opinion
of Counsel to the effect that (i) the Holders of the Securities of such
series have a valid security interest in the trust funds subject to no
prior liens under the UCC and (ii) such Holders will not recognize
income, gain or loss for federal income tax purposes as a result of such
deposit and covenant defeasance and will be subject to federal income
tax on the same amount and in the same manner and at the same times as
would have been the case if such deposit and defeasance had not
occurred; and
(e) the Company shall have delivered to the Trustee an Officers'
Certificate and an Opinion of Counsel, in each case stating that all
conditions precedent provided for herein relating to the covenant
defeasance contemplated by this Section 8.03 of the Securities of such
series have been complied with.
Section 8.04. Application of Trust Money. Subject to Section 4.03, the
Trustee or Paying Agent shall hold in trust money or U.S. Government Obligations
deposited with it pursuant to Section 8.01, 8.02 or 8.03, as the case may be, in
respect of the Securities of any series and shall apply the deposited money and
the proceeds from deposited U.S. Government Obligations in accordance with the
Securities of such series and this Indenture to the payment of the principal of
and any interest on the Securities of such series; but such money need not be
segregated from other funds except to the extent required by law.
Section 8.05. Reinstatement. If the Trustee or Paying Agent is unable to
apply any money or U.S. Government Obligations in accordance with Section 8.01,
8.02 or 8.03, as the case may be, by reason of any legal proceeding or by reason
of any order or judgment of any court or governmental authority enjoining,
restraining or otherwise prohibiting such application, the Company's obligations
under this Indenture and the Securities of the series for which such application
was to be made shall be revived and reinstated as though no deposit had occurred
pursuant to Section 8.01, 8.02 or 8.03 and the Trustee or Paying Agent shall
promptly pay to the Company upon written request any money or U.S. Government
Obligations
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<PAGE>
deposited with it pursuant thereto; provided that if the Company has made any
payment of interest on or principal of any Securities of such series because of
the reinstatement of its obligations, the Company shall be subrogated to the
rights of the Holders of such Securities to receive such payment from the money
or U.S. Government Obligations held by the Trustee or Paying Agent.
ARTICLE 9
Amendments, Supplements and Waivers
Section 9.01. Without Consent of Holders. The Company, by a Board
Resolution, and the Trustee may amend or supplement this Indenture or the
Securities of any series without notice to or the consent of any Holder:
(a) to cure any ambiguity, defect or inconsistency in this
Indenture or such Securities; provided that such amendments or
supplements shall not materially and adversely affect the interests of
the Holders affected thereby;
(b) to comply with Article 5;
(c) to evidence and provide for the acceptance of appointment
hereunder with respect to the Securities of any or all series by a
successor Trustee and to make provision for the appointment of different
Trustees for the Securities of different series;
(d) to establish the form or forms or terms of the Securities
of any series or of any coupons appertaining to such Securities pursuant
to Section 2.03;
(e) to provide for uncertificated or bearer Securities, with or
without coupons, and to make all appropriate changes for such purpose;
and
(f) to make any change that does not materially and adversely
affect the rights of any Holder of outstanding securities.
Section 9.02. With Consent of Holders. The Company, by a Board
Resolution, and the Trustee may amend this Indenture and the Securities of any
series for the purpose of adding any provisions to or changing in any manner or
eliminating any of the provisions of this Indenture or modifying in any manner
the rights of Holders under this Indenture of such Securities, but only with the
written consent of the Holders of a majority in principal amount of the
outstanding Securities of each
55
<PAGE>
series affected by such supplemental indenture voting separately; provided,
however, that no such supplemental indenture shall, without the consent of the
Holder of each outstanding Security of each series affected thereby,
(a) extend the stated maturity of the principal of, or any
sinking fund obligation or any installment of interest on, such Holder's
Security, or reduce the principal amount thereof or the rate of interest
thereon (or Yield to Maturity of any Original Issue Discount Security),
or adversely affect the rights of such Holder under any mandatory
redemption or repurchase provision or any right of redemption or
repurchase at the option of the Company or such Holder, or reduce the
amount of the principal of an Original Issue Discount Security that
would be due and payable upon an acceleration of the maturity thereof
pursuant to Section 6.02 or the amount thereof provable in bankruptcy,
or change any place of payment where, or the currency in which, any
Security or the interest thereon is payable, or impair the right to
institute suit for the enforcement of any such payment on or after the
due date therefor, or change the manner of determining any of the
foregoing established pursuant to Section 2.03 for the Securities of any
series;
(b) reduce the percentage in principal amount of outstanding
Securities of the relevant series the consent of whose Holders is
required for any such supplemental indenture, for any waiver of
compliance with certain provisions of this Indenture or certain Defaults
and their consequences provided for in this Indenture;
(c) waive a Default in the payment of principal of or interest
on any Security of such Holder; or
(d) change any obligation of the Company to maintain an office
or agency in the places and for the purposes specified in Section 4.02;
or
(e) modify any of the provisions of this Section 9.02, except
to increase any such percentage or to provide that certain other
provisions of this Indenture cannot be modified or waived without the
consent of the Holder of each outstanding Security affected thereby.
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 Holders of Securities of such series with respect to such covenant
or provision, shall be
56
<PAGE>
deemed not to affect the rights under this Indenture of the Holders of
Securities of any other series or of the coupons appertaining to such
Securities.
It shall not be necessary for the consent of any Holder under this
Section 9.02 to approve the particular form of any proposed amendment,
supplement or waiver, but it shall be sufficient if such consent approves the
substance thereof.
After an amendment, supplement or waiver under this Section 9.02 becomes
effective, the Company shall give to the Holders affected thereby a notice
briefly describing the amendment, supplement or waiver. The Company will mail
supplemental indentures to Holders upon request. Any failure of the Company to
mail such notice, or any defect therein, shall not, however, in any way impair
or affect the validity of any such supplemental indenture or waiver.
Section 9.03. Revocation and Effect of Consent. Until an amendment,
supplemental indenture or waiver becomes effective, a consent to it by a Holder
is a continuing consent by the Holder and every subsequent Holder of a Security
or portion of a Security that evidences the same debt as the Security of the
consenting Holder, even if notation of the consent is not made on any Security.
However, any such Holder or subsequent Holder may revoke the consent as to its
Security or portion of its Security. Such revocation shall be effective only if
the Trustee receives the notice of revocation before the date the amendment,
supplement or waiver becomes effective. An amendment, supplement or waiver shall
become effective with respect to any Securities affected thereby on receipt by
the Trustee of written consents from the requisite Holders of outstanding
Securities affected thereby.
The Company may, but shall not be obligated to, fix a record date (which
may be not less than 10 nor more than 60 days prior to the solicitation of
consents) for the purpose of determining the Holders of the Securities of any
series affected entitled to consent to any amendment, supplement or waiver. If a
record date is fixed, then, notwithstanding the immediately preceding paragraph,
those Persons who were such Holders at such record date (or their duly
designated proxies) and only those Persons shall be entitled to consent to such
amendment, supplement or waiver or to revoke any consent previously given,
whether or not such Persons continue to be such Holders after such record date.
No such consent shall be valid or effective for more than 90 days after such
record date.
After an amendment, supplement or waiver becomes effective with respect
to the Securities of any series affected thereby, it shall bind every Holder of
such Securities.
Section 9.04. Notation on or Exchange of Securities. If an amendment,
supplement or waiver changes the terms of any Security, the Trustee may require
the Holder thereof to deliver it to the Trustee. The Trustee may place an
appropriate
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notation on the Security about the changed terms and return it to the Holder and
the Trustee may place an appropriate notation on any Security of such series
thereafter authenticated. Alternatively, if the Company or the Trustee so
determines, the Company in exchange for the Security shall issue and the Trustee
shall authenticate a new Security of the same series and tenor that reflects the
changed terms.
Section 9.05. Trustee to Sign Amendments, Etc.. The Trustee shall be
entitled to receive, and shall be fully protected in relying upon, in addition
to the documents required by Section 10.02, an Opinion of Counsel stating that
the execution of any amendment, supplement or waiver authorized pursuant to this
Article 9 is authorized or permitted by this Indenture, stating that all
requisite consents have been obtained or that no consents are required and
stating that such supplemental indenture constitutes a legal, valid and binding
obligation of the Company, enforceable against the Company in accordance with
its terms, subject to customary exceptions. Subject to the preceding sentence,
the Trustee shall sign such amendment, supplement or waiver if the same does not
adversely affect the rights of the Trustee. The Trustee may, but shall not be
obligated to, execute any such amendment, supplement or waiver that affects the
Trustee's own rights, duties or immunities under this Indenture or otherwise.
Section 9.06. Conformity with Trust Indenture Act. Every supplemental
indenture executed pursuant to this Article 9 shall conform to the requirements
of the Trust Indenture Act as then in effect.
Section 9.07. Effect of Supplemental Indentures. Upon the execution of
any supplemental indenture under this Article, this Indenture shall be modified
in accordance therewith, and such supplemental indenture shall form a part of
this Indenture for all purposes; and every Holder of Securities theretofore or
thereafter authenticated and delivered hereunder will be bound thereby.
ARTICLE 10
Miscellaneous
Section 10.01. Notices. Any notice or communication shall be
sufficiently given if written and (a) if delivered in person when received or
(b) if mailed by first class mail 5 days after mailing, or (c) as between the
Company and the Trustee if sent by facsimile transmission, when transmission is
confirmed, in each case addressed as follows:
if to the Company:
- -----------------
Becton, Dickinson & Company
1 Becton Drive
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Franklin Lakes, New Jersey 07417-1880
Attention: Chief Financial Officer
Telephone No.: (201) 847-6800
Telecopy No.: (201) 847-5361
if to the Trustee:
- -----------------
The Chase Manhattan Bank
450 West 33rd Street
New York, NY 10001-2697
Telephone No.: (212) 946-8157
Telecopy No.: (212) 946-7799
The Company or the Trustee by written notice to the other may designate
additional or different addresses for subsequent notices or communications.
Failure to mail a notice or communication to a Holder or any defect in
it shall not affect its sufficiency with respect to other Holders. Except as
otherwise provided in this Indenture, if a notice or communication is mailed in
the manner provided in this Section 10.01, it is duly given, whether or not the
addressee receives it.
Where this Indenture provides for notice in any manner, such notice may
be waived in writing by the Person entitled to receive such notice, either
before or after the event, and such waiver shall be the equivalent of such
notice. Waivers of notice by Holders shall be filed with the Trustee, but such
filing shall not be a condition precedent to the validity of any action taken in
reliance upon such waiver.
In case it shall be impracticable to give notice as herein contemplated,
then such notification as shall be made with the approval of the Trustee shall
constitute a sufficient notification for every purpose hereunder.
Section 10.02. Certificate and Opinion as to Conditions Precedent. Upon
any request or application by the Company to the Trustee to take any action
under this Indenture, the Company shall furnish to the Trustee:
(a) an Officers' Certificate stating that, in the opinion of
the signers, all conditions precedent, if any, provided for in this
Indenture relating to the proposed action have been complied with; and
(b) an Opinion of Counsel stating that, in the opinion of such
Counsel, all such conditions precedent have been complied with.
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Section 10.03. Statements Required in Certificate or Opinion. Each
certificate or opinion with respect to compliance with a condition or covenant
provided for in this Indenture shall include:
(a) a statement that each person signing such certificate or
opinion has read such covenant or condition and the definitions herein
relating thereto;
(b) a brief statement as to the nature and scope of the
examination or investigation upon which the statement or opinion
contained in such certificate or opinion is based;
(c) a statement that, in the opinion of each such person, he
has made such examination or investigation as is necessary to enable him
to express an informed opinion as to whether or not such covenant or
condition has been complied with; and
(d) a statement as to whether or not, in the opinion of each
such person, such condition or covenant has been complied with;
provided, however, that, with respect to matters of fact, an Opinion of
Counsel may rely on an Officers' Certificate or certificates of public
officials.
Section 10.04. Evidence of Ownership. The Company, the Trustee and any
agent of the Company or the Trustee may deem and treat the Person in whose name
any Security shall be registered upon the Security Register for such series as
the absolute owner of such Security (whether or not such Security shall be
overdue and notwithstanding any notation of ownership or other writing thereon)
for the purpose of receiving payment of or on account of the principal of and,
subject to the provisions of this Indenture, interest on such Security and for
all other purposes; and neither the Company nor the Trustee nor any agent of the
Company or the Trustee shall be affected by any notice to the contrary.
Section 10.05. Rules by Trustee, Paying Agent or Registrar. The Trustee
may make reasonable rules for action by or at a meeting of Holders. The Paying
Agent or Registrar may make reasonable rules for its functions.
Section 10.06. Payment Date Other than a Business Day. If any date for
payment of principal or interest on any Security shall not be a Business Day at
any place of payment for such Security, then payment of principal of or interest
on such Security, as the case may be, need not be made on such date, but may be
made on the next succeeding Business Day at any place of payment with the same
force and effect as if made on such date and no interest shall accrue in respect
of such payment for the period from and after such date.
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Section 10.07. Governing Law. The laws of the State of New York shall
govern this Indenture and the Securities.
Section 10.08. No Adverse Interpretation of Other Agreements. This
Indenture may not be used to interpret another indenture or loan or debt
agreement of the Company or any Subsidiary of the Company. Any such indenture or
agreement may not be used to interpret this Indenture.
Section 10.09. Successors. All covenants and agreements of the Company
in this Indenture and the Securities shall bind its successors and assigns,
whether or not so expressed. All agreements of the Trustee in this Indenture
shall bind its successors.
Section 10.10. Duplicate 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.
Section 10.11. Separability. 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 10.12. Table of Contents, Headings, Etc. The Table of Contents
and headings of the Articles and Sections of this Indenture have been inserted
for convenience of reference only, are not to be considered a part hereof and
shall in no way modify or restrict any of the terms and provisions hereof.
Section 10.13. Incorporators, Stockholders, Officers and Directors of
Company Exempt from Individual Liability. No recourse under or upon any
obligation, covenant or agreement contained in this Indenture, in any Security,
or because of any indebtedness evidenced thereby, shall be had against any
incorporator, as such or against any past, present or future stockholder,
officer, director or employee, as such, of the Company or of any successor,
either directly or through the Company or any successor, under any rule of law,
statute or constitutional provision or by the enforcement of any assessment or
by any legal or equitable proceeding or otherwise, all such personal liability
being expressly waived and released by the acceptance of the Securities by the
Holders thereof and as part of the consideration for the issue of the
Securities.
61
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SIGNATURES
IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly
executed, all as of the date first written above.
BECTON, DICKINSON & COMPANY
as the Company
By: /s/ Geoffrey D. Cheatham
--------------------------------------
Name: Geoffrey D. Cheatham
Title: Vice President and Treasurer
THE CHASE MANHATTAN BANK
as Trustee
By: /s/ Greg McFarlane
-------------------------------------------
Name: Greg McFarlane
Title: Vice President
62
<PAGE>
EXHIBIT A
---------
FORM OF FACE OF SECURITY:
[Legend for Registered Global Security: Unless this certificate is presented by
an authorized representative of The Depository Trust Company, a New York
corporation ("DTC"), to Issuer or its agent for registration of transfer,
exchange, or payment, and any certificate issued is registered in the name of
Cede & Co. or in such other name as is requested by an authorized representative
of DTC (and any payment is made to Cede & Co. or to 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 inasmuch
as the registered owner hereof, Cede & Co., has an interest herein.]
BECTON, DICKINSON AND COMPANY
___% Notes due ______
No. ____ $_________
BECTON, DICKINSON AND COMPANY, a New Jersey corporation (such
corporation, and its successors and assigns under the Indenture hereinafter
referred to, being herein called the "Company"), for value received, hereby
promises to pay to ______, or registered assigns, the principal sum of
___________________________, on ____________ and to pay interest, on __________
and ___________, of each year, commencing ________, on said principal sum at the
rate of _______ per annum, from _______ or ________, as the case may be, next
preceding the date of this Note to which interest has been paid, unless the date
hereof is a date to which interest has been paid, in which case from the date of
this Note, or unless no interest has been paid on the Notes, in which case from
_________, until payment of said principal sum has been made or duly provided
for, provided, however, that payment of interest may be made at the option of
the Company (i) by check mailed to the address of the Person entitled thereto as
such address shall appear on the register of Notes or (ii) by transfer in
immediately available funds to an account maintained by the Person entitled
thereto as specified in the register of Notes. Notwithstanding the foregoing,
if the date hereof is after the fifteenth day of the calendar month preceding
any _________or ________, as the case may be, and prior to such _______or
_______, this Note shall bear interest from such ______ or ______; provided,
however, that if and to the extent that the Company shall default in the payment
of interest due on such _______ or _______, then this Note shall bear interest
from the next preceding ______ or _______ to which interest has been paid, or,
if no interest has been paid on the Notes, from _________ [If applicable insert
- --, and (to the extent that the payment of such interest shall be legally
enforceable) at the rate of ____% per annum on any overdue principal and on any
overdue installment of interest]. The interest so payable on any ________or
________ will, subject to certain exceptions provided in the Indenture referred
to on the reverse hereof, be paid to the Person in whose
<PAGE>
name this Note is registered at the close of business on the fifteenth day of
the calendar month preceding such _______ or ________.
Reference is made to the further provisions of this Note set forth on the
reverse hereof. Such further provisions shall for all purposes have the same
effect as though fully set forth at this place.
This Note shall not be valid or become obligatory for any purpose until
the certificate of authentication hereon shall have been signed by the Trustee
under the Indenture referred to on the reverse hereof.
IN WITNESS HEREOF, Becton, Dickinson and Company has caused this Note to
be executed in its name and on its behalf by the signatures of two of its
officers authorized to execute Securities pursuant to the Indenture and has
caused its corporate seal to be affixed hereunto or imprinted hereon.
Dated: ________, 199_
[SEAL] BECTON, DICKINSON AND COMPANY
By:______________________________
By:______________________________
TRUSTEE'S CERTIFICATE
OF AUTHENTICATION
This Note is one of the Securities of the series referred to herein issued
pursuant to the within-mentioned Indenture.
THE CHASE MANHATTAN BANK,
as Trustee
By:______________________________
Authorized Officer
<PAGE>
FORM OF REVERSE OF SECURITY:
BECTON, DICKINSON AND COMPANY
[Title of Security]
This Note is one of a duly authorized issue of debentures, notes or other
evidences of indebtedness of the Company (herein called the "Securities") of the
series hereinafter specified, all issued or to be issued under and pursuant to
an Indenture, dated as of March 1, 1997 (as amended or supplemented, herein
called the "Indenture"), duly executed and delivered by the Company and The
Chase Manhattan Bank, as Trustee (herein called the "Trustee"), to which
Indenture and all indentures supplemental thereto reference is hereby made for a
statement of the respective rights, limitations of rights, duties, obligations
and immunities thereunder of the Company, the Trustee and the Holders of the
Securities. The Securities may be issued in one or more series, which different
series may be issued in various aggregate principal amounts, may mature at
different times, may bear interest (if any) at different rates, may be subject
to different redemption provisions (if any), may be subject to different
sinking, purchase or analogous funds (if any) and may otherwise vary as in the
Indenture provided. This Note is one of a series designed as the [Title of
Security] (the "Notes") limited in aggregate principal amount to $______________
(except as in the Indenture provided). Terms defined in the Indenture have the
same definition herein unless otherwise specified.
In case an Event of Default, as defined in the Indenture, with respect to
the Notes shall have occurred and be continuing, the principal hereof and
interest hereon may be declared, and upon such declaration shall become, due and
payable, in the manner, with the effect and subject to the conditions provided
in the Indenture.
The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Securities of any series at any
time by the Company and the Trustee with the consent of the Holders of a
majority in aggregate principal amount of the outstanding Securities of such
series, each affected series voting separately. The Indenture also contains
provisions permitting the Holders of a majority in aggregate principal amount of
the outstanding Securities of any series, on behalf of the Holders of all the
Securities of such series, to waive certain past defaults under the Indenture
and their consequences. Any such consent or waiver by or on behalf of 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 hereof or in lieu hereof whether or not notation
of such consent or waiver is made upon this Note or such other Note.
Subject to the terms of the Indenture, the Company may elect either (i)
to defease and be discharged from any and all obligations with respect to the
Notes or (ii) to be
<PAGE>
released from its obligations with respect to certain covenants applicable to
the Notes, upon compliance by the Company with certain conditions set forth
therein, which provisions apply to this Note.
No reference herein to the Indenture and no provision of this Note or 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 place, at the respective times, at the rate and in the coin or currency
prescribed herein. [This Note is not redeemable prior to maturity.] [Insert
redemption provisions if applicable.]
Upon the presentment for registration of transfer of this Note at the
office or agency of the Company designated for such purpose pursuant to the
Indenture, a new Note or Notes of authorized denominations for an equal
aggregate principal amount will be issued to the transferee in exchange
therefor, subject to the limitations provided in the Indenture, without charge
except for any tax or other governmental charge imposed in connection therewith.
Prior to due presentment for registration of transfer of this Note, the
Company, the Trustee or any Note registrar, co-registrar, paying agent or
authenticating agent, may deem and treat the registered Holder hereof as the
absolute owner of this Note (whether or not this Note shall be overdue and
notwithstanding any notation of ownership or other writing hereon), for the
purpose of receiving payment hereof, or on account hereof, and for all other
purposes, and the Company, the Trustee and any Note registrar, co-registrar,
paying agent and authenticating agent shall not be affected by any notice to the
contrary.
<PAGE>
EXHIBIT 4(d)
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO ISSUER OR ITS AGENT
FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE ISSUED
IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY
AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO
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 INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.
BECTON, DICKINSON AND COMPANY
7% Debentures due August 1, 2027
CUSIP No. 075887AN9
No. 1 $200,000,000
BECTON, DICKINSON AND COMPANY, a New Jersey corporation (such
corporation, and its successors and assigns under the Indenture hereinafter
referred to, being herein called the "Company"), for value received, hereby
promises to pay to Cede & Co., or registered assigns, the principal sum of
$200,000,000 on August 1, 2027 and to pay interest, on February 1 and August 1,
of each year, commencing February 1, 1998, on said principal sum at the rate of
7.00% per annum, from July 28, 1997 or from the most recent interest payment
date to which interest has been paid or provided for, as the case may be, until
payment of said principal sum has been made or duly provided for; provided,
however, that payment of interest may be made at the option of the Company (i)
by check mailed to the address of the person entitled thereto as such address
shall appear on the register of Debentures or (ii) by transfer in immediately
available funds to an account maintained by the person entitled thereto as
specified in the register of Debentures. The interest so payable on any
February 1 or August 1 will, subject to certain exceptions provided in the
Indenture referred to on the reverse hereof, be paid to the person in whose name
this Debenture is registered at the close of business on the fifteenth day of
the calendar month preceding such February 1 or August 1.
Reference is made to the further provisions of this Debenture set
forth on the reverse hereof. Such further provisions shall for all purposes
have the same effect as though fully set forth at this place.
<PAGE>
This Debenture shall not be valid or become obligatory for any purpose
until the certificate of authentication hereon shall have been signed by the
Trustee under the Indenture referred to on the reverse hereof.
IN WITNESS HEREOF, Becton, Dickinson and Company has caused this
Debenture to be executed in its name and on its behalf by the signatures of two
of its officers authorized to execute Securities pursuant to the Indenture and
has caused its corporate seal to be affixed hereunto or imprinted hereon.
Dated: July 28, 1997
[SEAL] BECTON, DICKINSON AND COMPANY
By: /s/ Edward J. Ludwig
-----------------------------
Attest By: /s/ Bridget M. Healy
------------------------------
TRUSTEE'S CERTIFICATE
OF AUTHENTICATION
This Debenture is one of the Securities of the series referred to herein issued
pursuant to the within-mentioned Indenture.
THE CHASE MANHATTAN BANK,
as Trustee
By: /s/ Greg McFarlane
-------------------
Authorized Officer
<PAGE>
BECTON, DICKINSON AND COMPANY
7% Debentures due August 1, 2027
This Debenture is one of a duly authorized issue of debentures, notes
or other evidences of indebtedness of the Company (herein called the
"Securities") of the series hereinafter specified, all issued or to be issued
under and pursuant to an Indenture, dated as of March 1, 1997 (as amended or
supplemented, herein called the "Indenture"), duly executed and delivered by the
Company and The Chase Manhattan Bank, as Trustee (herein called the "Trustee"),
to which Indenture and all indentures supplemental thereto reference is hereby
made for a statement of the respective rights, limitations of rights, duties,
obligations and immunities thereunder of the Company, the Trustee and the
holders of the Securities. The Securities may be issued in one or more series,
which different series may be issued in various aggregate principal amounts, may
mature at different times, may bear interest (if any) at different rates, may be
subject to different redemption provisions (if any), may be subject to different
sinking, purchase or analogous funds (if any) and may otherwise vary as in the
Indenture provided. This Debenture is one of a series designated as the 7%
Debentures due August 1, 2027 (the "Debentures") limited in aggregate principal
amount to $200,000,000 (except as in the Indenture provided).
In case an Event of Default, as defined in the Indenture, with respect
to the Debentures shall have occurred and be continuing, the principal hereof
and interest hereon may be declared, and upon such declaration shall become, due
and payable, in the manner, with the effect and subject to the conditions
provided in the Indenture.
The Indenture permits, with certain exceptions as therein provided,
the amendment thereof and the modification of the rights and obligations of the
Company and the rights of the holders of the Securities of any series at any
time by the Company and the Trustee with the consent of the holders of a
majority in aggregate principal amount of the outstanding Securities of such
series, each affected series voting separately. The Indenture also contains
provisions permitting the holders of a majority in aggregate principal amount of
the outstanding Securities of any series, on behalf of the holders of all the
Securities of such series, to waive certain past defaults under the Indenture
and their consequences. Any such consent or waiver by or on behalf of the
holder of this Debenture shall be conclusive and binding upon such holder and
upon all future holders of this Debenture and of any Debenture issued upon the
registration of transfer hereof or in exchange hereof or in lieu hereof whether
or not notation of such consent or waiver is made upon this Debenture or such
other Debenture.
Subject to the terms of the Indenture, the Company may elect either
(i) to defease and be discharged from any and all obligations with respect to
the Debentures or (ii) to be released from its obligations with respect to
certain covenants applicable to the
<PAGE>
Debentures, upon compliance by the Company with certain conditions set forth
therein, which provisions apply to this Debenture.
No reference herein to the Indenture and no provision of this
Debenture or 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 Debenture at the place, at the respective times, at the rate
and in the coin or currency prescribed herein. This Debenture is not redeemable
prior to maturity.
Upon the presentment for registration of transfer of this Debenture at
the office or agency of the Company designated for such purpose pursuant to the
Indenture, a new Debenture or Debentures of authorized denominations for an
equal aggregate principal amount will be issued to the transferee in exchange
therefor, subject to the limitations provided in the Indenture, without charge
except for any tax or other governmental charge imposed in connection therewith.
Prior to due presentment for registration of transfer of this
Debenture, the Company, the Trustee or any Debenture registrar, co-registrar,
paying agent or authenticating agent, may deem and treat the registered holder
hereof as the absolute owner of this Debenture (whether or not this Debenture
shall be overdue and notwithstanding any notation of ownership or other writing
hereon), for the purpose of receiving payment hereof, or on account hereof, and
for all other purposes, and the Company, the Trustee and any Debenture
registrar, co-registrar, paying agent and authenticating agent shall not be
affected by any notice to the contrary.
<PAGE>
Exhibit 12
----------
BECTON, DICKINSON AND COMPANY
CALCULATION OF RATIO OF EARNINGS TO FIXED CHARGES
(All Amounts in Millions Except for
Ratio of Earnings to Fixed Charges)
<TABLE>
<CAPTION>
(Unaudited) Year Ended September 30,
----------- -------------------------------------------------------------------
Six
Months
Ended
March 31,
Earnings: 1997 1996 1995 1994 1993 1992
------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Income Before Income Taxes and
Cumulative Effect of Accounting
Changes............................. $198.3 $393.7 $349.6 $296.2 $222.9 $269.5
Undistributed (Earnings)/Losses of
Less Than 50%-Owned Companies
Carried at Equity................... - - - - 0.2 (1.2)
Net Capitalized Interest............. 1.6 4.5 7.2 5.7 3.3 (10.9)
Fixed Charges........................ 35.0 75.8 80.5 84.0 90.9 96.0
------ ------ ------ ------ ------ ------
Earnings as Adjusted................ $234.9 $474.0 $437.3 $385.9 $317.3 $353.4
====== ====== ====== ====== ====== ======
Fixed Charges:
Interest Cost (1)................... $ 27.2 $ 59.5 $ 64.7 $ 68.4 $ 74.9 $ 81.8
Interest Allocable to Rents (2)..... 7.5 15.0 15.3 15.0 15.5 13.7
Amortization of Debt Expense........ 0.3 1.3 0.5 0.6 0.5 0.5
------ ------ ------ ------ ------ ------
Fixed Charges....................... $ 35.0 $ 75.8 $ 80.5 $ 84.0 $ 90.9 $ 96.0
====== ====== ====== ====== ====== ======
Ratio of Earnings to Fixed Charges 6.71 6.25 5.43 4.59 3.49 3.68
====== ====== ====== ====== ====== ======
</TABLE>
(1) Includes interest expense and interest capitalized in accordance with FASB
Statement No. 34.
(2) Represents an appropriate portion of rental expense.
