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UNITED STATES
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): March 15, 2000
DYNEGY HOLDINGS INC.
(Exact name of registrant as specified in its charter)
DELAWARE 1-029311 94-3248415
(State of Incorporation) (Commission File Number) (I.R.S. Employer
Identification Number)
1000 LOUISIANA, SUITE 5800
HOUSTON, TEXAS 77002
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (713) 507-6400
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ITEM 5. OTHER EVENTS
On March 15, 2000, Dynegy Holdings Inc., a Delaware corporation (the
"Company"), entered into an Underwriting Agreement, attached as Exhibit 1.1
hereto, with the Underwriters named therein with respect to the issue and sale
by the Company of $300,000,000 aggregate principal amount of 8.125% Senior Notes
due March 15, 2005 (the "Senior Notes") in an underwritten public offering. The
Senior Notes were registered under the Securities Act of 1933, as amended,
pursuant to the Company's shelf registration statements on Form S-3 (File No.
333-60253 and File No. 333-89021). The closing respecting the Senior Notes
occurred on March 20, 2000.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c)
Exhibit No. Description of Exhibit
- ----------- ----------------------
1.1 Underwriting Agreement dated March 15, 2000, among the Company
and the Underwriters named therein relating to the sale of Senior
Notes.
4.1 Form of 8.125% Senior Note due March 15, 2005.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Dated: March 20, 2000
DYNEGY HOLDINGS INC.
By: /s/ Lisa Q. Metts
---------------------------------
Name: Lisa Q. Metts
Title: Vice President
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EXHIBIT INDEX
EXHIBIT
NUMBER DESCRIPTION
- -------- -----------
1.1 Underwriting Agreement dated March 15, 2000, among the Company
and the Underwriters named therein relating to the sale of Senior
Notes.
4.1 Form of 8.125% Senior Note due March 15, 2005.
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$300,000,000
DYNEGY HOLDINGS INC.
$300,000,000 8 1/8% SENIOR NOTES DUE 2005
UNDERWRITING AGREEMENT
----------------------
March 15, 2000
Banc of America Securities LLC
Lehman Brothers Inc
Banc One Capital Markets, Inc.
Chase Securities Inc.
Salomon Smith Barney Inc.
c/o Banc of America Securities LLC
Banc of America Corporate Center
100 North Tryon Street, 7th Floor
Charlotte, NC 28255
Dear Sirs:
Dynegy Holdings Inc., a Delaware corporation (the "Company"), proposes
to issue and sell $300,000,000 aggregate principal amount of its 8 1/8% Senior
Notes due 2005 (the "Notes") to you (the "Underwriters"). The Notes will be
issued pursuant to an Indenture dated as of September 26, 1996 and amended and
restated as of March 23, 1998 (the "Indenture") between the Company and Bank One
Trust Company, NA (formerly The First National Bank of Chicago), as Trustee (the
"Trustee"). This agreement (this "Agreement") is to confirm the agreement
concerning the purchase of the Notes from the Company by the Underwriters.
1. Representations and Warranties. The Company represents and
warrants to, and agrees with, each Underwriter that:
(a) The registration statements on Form S-3 (File No. 333-60253 and
File No. 333-89021) with respect to the Notes (i) have been prepared by the
Company in conformity with the requirements of the Securities Act of 1933, as
amended (the "Securities Act"), and the rules and regulations (the "Rules and
Regulations") of the Securities and Exchange Commission (the "Commission")
thereunder, (ii) have been filed with the Commission under the Securities Act,
(iii) either have become effective under the Securities Act and are not proposed
to be amended or are proposed to be amended by amendment or post-effective
amendment and (iv) no stop order suspending the effectiveness of such
registration statements or any Rule 462(b) registration statement has been
issued under the Securities Act and no proceedings for that purpose have been
instituted or are pending or, to the knowledge of the Company, are contemplated
by the Commission. If the Company does not propose to amend such registration
statements and if any post-effective amendment to such registration statements
has been filed with the Commission prior to the execution and delivery of this
Agreement, the most recent such amendment has been declared effective by the
Commission. Copies of such registration statements as amended to date have been
delivered by the
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Company to you. For purposes of this Agreement, "Effective Time" means the most
recent date and the time as of which registration statement No. 333-89201, or
the most recent post-effective amendment thereto, if any, was declared effective
by the Commission; "Effective Date" means the date of the Effective Time;
"Preliminary Prospectus" means the prospectus included in such registration
statement No. 333-89201, or amendments thereof, before such registration
statement became effective under the Securities Act and any prospectus filed
with the Commission by the Company with the consent of the Underwriters pursuant
to Rule 424(a) of the Rules and Regulations prior to the filing of the
prospectus; "Registration Statement" means such registration statements, as
amended at the Effective Time, including any documents incorporated by reference
therein and, if the Effective Date is on or before the date of this Agreement,
all information contained in the final prospectus filed with the Commission
pursuant to Rule 424(b) of the Rules and Regulations ("Rule 424(b)") in
accordance with Section 4(a) hereof and deemed to be a part thereof as of the
Effective Time pursuant to paragraph (b) of Rule 430A of the Rules and
Regulations; "Prospectus" means the form of prospectus relating to the Notes
(including the prospectus supplement), as first used to confirm sales of the
Notes; and "described in the Prospectus" or "disclosed in the Prospectus" means
described or disclosed, as applicable, in the Prospectus or any document
incorporated by reference therein. If it is contemplated, at the time this
Agreement is executed, that a registration statement will be filed pursuant to
Rule 462(b) under the Securities Act before the offering of the Notes may
commence, the term "Registration Statement" as used in this Agreement includes
such registration statement, as the same may be amended from time to time.
Reference made herein to any Preliminary Prospectus or the Prospectus shall be
deemed to refer to and include any documents incorporated by reference therein
as of the date of such Preliminary Prospectus or Prospectus, as the case may be,
and 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
under the Securities Exchange Act of 1934, as amended (the "Exchange Act"),
after the date of such Preliminary Prospectus or Prospectus, as the case may be,
and incorporated by reference in such Preliminary Prospectus or Prospectus. For
purposes of this Section l, all references to the Registration Statement, any
post-effective amendments thereto and the Prospectus shall be deemed to include,
without limitation, any electronically transmitted copies thereof, including,
without limitation, any copy filed with the Commission pursuant to its
Electronic Data Gathering, Analysis, and Retrieval system ("EDGAR"). The
Commission has not issued any order preventing or suspending the use of any
Preliminary Prospectus or the Prospectus.
(b) If the Effective Date is on or before the date of this Agreement,
(i) the Registration Statement conforms, and the Prospectus and any further
amendments or supplements to the Registration Statement or the Prospectus will
when they become effective or are first used to confirm sales of the Notes, as
the case may be, conform to the requirements of the Securities Act and the Rules
and Regulations, (ii) the Registration Statement and any amendment thereto does
not and will not, as of the applicable effective date, contain any untrue
statement of a material fact or omit to state any material fact required to be
stated therein or necessary to make the statements therein not misleading and
(iii) the Prospectus and any amendment or supplement thereto will not, as of the
first date of its use to confirm sales of the Notes, contain any untrue
statement of a material fact or omit to state any material fact required to be
stated therein or necessary in order to make the statements therein, in light of
the circumstances under which they were made, not misleading. If the Effective
Date is after the date of this Agreement, (i) the Registration Statement and the
Prospectus and any further amendments or supplements thereto will, when they
become effective or are first used to confirm sales of the Notes, as the case
may be, conform to the requirements of the Securities Act and the Rules and
Regulations, (ii) the Registration Statement and any amendment thereto will not,
as
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of the applicable effective date, contain any untrue statement of a material
fact or omit to state any material fact required to be stated therein or
necessary to make the statements therein not misleading and (iii) the Prospectus
and any amendment or supplement thereto will not, as of the date on which the
Prospectus and any amendment or supplement thereto is first used to confirm
sales of the Notes, contain any untrue statement of a material fact or omit to
state any material fact required to be stated therein or necessary in order to
make the statements therein, in light of the circumstances under which they were
made, not misleading. Notwithstanding the foregoing, the Company makes no
representation or warranty as to information contained in or omitted from the
Registration Statement or the Prospectus in reliance upon, and in conformity
with written information furnished to the Company by you, expressly for
inclusion therein. There is no contract or document required to be described in
the Registration Statement or the Prospectus or to be filed as an exhibit to the
Registration Statement or to a document incorporated by reference into the
Registration Statement which is not described or filed as required.
(c) Arthur Andersen LLP, whose report is included or incorporated by
reference in the Prospectus, are independent certified public accountants with
respect to the Company and its Subsidiaries (as defined in Section 13 hereof),
as required by the Securities Act and the Rules and Regulations. The financial
statements (including the related notes and supporting schedules) included or
incorporated by reference in the Registration Statement, any Preliminary
Prospectus and the Prospectus present fairly the financial condition, results of
operations and cash flows of the entities purported to be shown thereby at the
dates and for the periods indicated and have been prepared in accordance with
generally accepted accounting principles applied on a consistent basis
throughout the periods indicated and conform in all material respects with the
Rules and Regulations, except as otherwise noted therein; and the supporting
schedules included or incorporated by reference in the Registration Statement
present fairly the information required to be stated therein.
(d) Each of the Company and its Significant Subsidiaries (as defined
in Exhibit A hereto) has been duly organized or formed and is validly existing
in good standing under the laws of the jurisdiction of its organization or
formation, with full power and authority to own, lease and operate its
properties and conduct its business and to enter into and perform its
obligations under this Agreement and the Indenture; and each of the Company and
its Subsidiaries is duly qualified to do business and is in good standing in
each jurisdiction in which the character of the business conducted by it or the
location of the properties owned, leased or operated by it make such
qualification necessary, except where the failure to so qualify would not,
individually or in the aggregate, have a material adverse effect on the
condition (financial or other), results of operations, business or prospects of
the Company and its Subsidiaries taken as a whole.
(e) All of the outstanding shares of capital stock of each Significant
Subsidiary of the Company that is a corporation have been duly authorized and
validly issued and are fully paid and nonassessable. Except as disclosed in the
Prospectus, all of the outstanding shares of capital stock or partnership
interests of each Significant Subsidiary of the Company are owned directly or
indirectly by the Company, free and clear of any claim, lien, encumbrance,
security interest, restriction upon voting or transfer, preemptive rights or any
other claim of any third party, except such as are described in the Prospectus.
All of the Company's capital stock is owned by Dynegy Inc., free and clear of
any claim, lien, encumbrance, security interest, restriction upon voting or
transfer, preemptive rights or any other claim of any third party.
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(f) Except as described in or contemplated by the Registration
Statement and the Prospectus, there has not been any material adverse change in,
or adverse development which, individually or in the aggregate, materially
affects or may materially affect, the condition (financial or other), results of
operations, business or prospects of the Company and its Subsidiaries taken as a
whole from the respective dates as of which information is given in the
Prospectus.
(g) Neither (i) the execution or delivery hereof by the Company, (ii)
the consummation of the transactions contemplated hereby, (iii) the execution
and delivery of the Indenture and the Notes by the Company nor (iv) compliance
by the Company with all of the provisions of this Agreement, the Indenture and
the Notes, will result in a breach or violation of, or constitute a default
under, the certificate of incorporation, by-laws, partnership agreement or other
governing documents of the Company or any of its Subsidiaries, or any agreement,
indenture or other instrument to which the Company or any of its Subsidiaries is
a party or by which any of them is bound, or to which any of their properties is
subject, nor will any such action or the performance by the Company of its
obligations hereunder violate any law, rule, administrative regulation or decree
of any court, or any governmental agency or body having jurisdiction over the
Company, its Subsidiaries or any of their respective properties, or result in
the creation or imposition of any lien, charge, claim or encumbrance upon any
property or asset of the Company or any of its Subsidiaries. Except for permits,
consents, approvals and similar authorizations required under the securities or
"Blue Sky" laws of certain jurisdictions, and except for such permits, consents,
approvals and authorizations which have been obtained, no permit, consent,
approval, authorization or order of any court, governmental agency or body or
financial institution is required in connection with the consummation of the
transactions contemplated by this Agreement.
(h) This Agreement has been duly authorized, executed and delivered by
the Company and constitutes the valid and binding agreement of the Company, and
is enforceable against the Company in accordance with its terms, except as the
enforceability thereof may be limited by bankruptcy, insolvency, reorganization
or similar laws relating to or affecting creditors' rights generally and by
general equitable principles (regardless of whether such enforceability is
considered in a proceeding in equity or at law).
(i) Neither the Company nor any of its Subsidiaries (i) is in
violation of its certificate of incorporation or by-laws or other governing
documents, (ii) is in default and no event has occurred which, with notice or
lapse of time or both, would constitute such a default, in the due performance
or observance of any term, covenant or condition contained in any agreement,
indenture or other instrument to which it is a party or by which it is bound or
to which any of its properties is subject, except for any such defaults that
would not, individually or in the aggregate, have a material adverse effect on
the condition (financial or other), results of operations, business or prospects
of the Company and its Subsidiaries taken as a whole, or (iii) is in violation
of any law, ordinance, governmental rule, regulation or court decree to which it
or its property may be subject, except for any such violations that would not,
individually or in the aggregate, have a material adverse effect on the
condition (financial or other), results of operations, business or prospects of
the Company and its Subsidiaries taken as a whole.
(j) The Indenture has been duly and validly authorized, executed and
delivered by the Company and is a valid and binding agreement of the Company,
enforceable against the Company in accordance with its terms, except as the
enforceability thereof may be limited by bankruptcy, insolvency, reorganization
or similar laws relating to or affecting creditors' rights
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generally and by general equitable principles (regardless of whether such
enforceability is considered in a proceeding in equity or at law). The Indenture
(i) has been duly qualified under the Trust Indenture Act of 1939, as amended
(the "Trust Indenture Act"), (ii) complies as to form with the requirements of
the Trust Indenture Act and (iii) conforms to the description thereof in the
Registration Statement and the Prospectus.
(k) The Notes have been duly and validly authorized by the Company for
issuance and sale to the Underwriters pursuant to this Agreement and, when
executed by the Company and authenticated by the Trustee in accordance with the
Indenture and delivered to the Underwriters against payment therefor in
accordance with the terms hereof, will have been validly issued and delivered,
free of any preemptive or similar rights to subscribe to or purchase the same
arising by operation of law or under the charter or by-laws of the Company or
otherwise, and will constitute valid and binding obligations of the Company
entitled to the benefits of the Indenture and enforceable in accordance with
their terms, except as enforcement thereof may be limited by bankruptcy,
insolvency, reorganization or other similar laws relating to or affecting the
enforcement of creditors' rights generally and by general equitable principles,
and the Notes conform, or will conform, to the description thereof in the
Registration Statement and the Prospectus. Neither the filing of the
Registration Statement nor the offering or sale of the Notes as contemplated by
this Agreement gives rise to any rights, other than those which have been duly
waived or satisfied, for or relating to the registration of any securities of
the Company. The capitalization of the Company as of the date of the most
recent balance sheet included in the Prospectus is as set forth in the
Prospectus. The Company has all requisite corporate power and authority to
issue, sell and deliver the Notes in accordance with and upon the terms and
conditions set forth in this Agreement and in the Registration Statement and
Prospectus. All corporate action required to be taken by the Company for the
authorization, issuance, sale and delivery of the Notes to be sold by the
Company hereunder has been validly and sufficiently taken.
(l) Each contract, agreement or arrangement to which the Company or
any of its Subsidiaries is a party or by which it or any of them may be bound,
or to which any of the property or assets of the Company or any of its
Subsidiaries is subject, which is material to the condition (financial or
other), results of operations, business or prospects of the Company and its
Subsidiaries taken as a whole, has been duly and validly authorized, executed
and delivered by the Company or its Subsidiary, as applicable; none of such
contracts, agreements or arrangements has been assigned by the Company or any of
its Subsidiaries to any non-affiliated party other than in the ordinary course
of business, and the Company knows of no present condition or fact which would
prevent compliance by the Company or any of its Subsidiaries or any other party
thereto with the terms of any such contract, agreement or arrangement in
accordance with its terms in all material respects, except for any such failures
to comply that would not, individually or in the aggregate, have a material
adverse effect on the condition (financial or other), results of operations,
business or prospects of the Company and its Subsidiaries taken as a whole;
neither the Company nor any of its Subsidiaries has any present intention to
exercise any right that it may have to cancel any such contract, agreement or
arrangement or otherwise to terminate its rights and obligations thereunder, and
none of them has any knowledge that any other party to any such contract,
agreement or arrangement has any intention not to render full performance in all
material respects as contemplated by the terms thereof, except for any such
cancellations, terminations or failures to perform that would not, individually
or in the aggregate, result in a material adverse effect on the condition
(financial or other), results of operations, business or prospects of the
Company and its Subsidiaries taken as a whole.
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(m) There is no litigation or governmental proceeding to which the
Company or any of its Subsidiaries is a party or to which any property of the
Company or any of its Subsidiaries is subject or which is pending or, to the
knowledge of the Company, threatened against the Company or any of its
Subsidiaries that could reasonably be expected to, individually or in the
aggregate, result in a material adverse effect on the condition (financial or
other), results of operations, business or prospects of the Company and its
Subsidiaries taken as a whole or which is required to be disclosed in the
Prospectus and is not disclosed.
(n) Neither the Company nor any Subsidiary is in violation of any law,
ordinance, governmental rule or regulation or court decree to which it may be
subject which violation could reasonably be expected to, individually or in the
aggregate with all such violations, have a material adverse effect on the
condition (financial or other), results of operations, business or prospects of
the Company and its Subsidiaries taken as a whole.
(o) The documents incorporated by reference into each Preliminary
Prospectus and the Prospectus, at the time they were or are filed with the
Commission, conform or will conform, as the case may be, with the requirements
of the Securities Act and the Rules and Regulations and the Exchange Act and the
rules and regulations adopted by the Commission thereunder, and did not or will
not, as the case may be, include an untrue statement of a material fact or omit
to state a material fact necessary in order to make the statements therein, in
light of the circumstances under which they were made, not misleading.
(p) Each of the Company and its Subsidiaries owns or possesses, and is
operating in compliance with, all approvals, licenses, permits, certificates,
franchises, easements, consents, orders and other governmental authorizations
and rights necessary to own or lease its properties and conduct its business
(collectively, "Approvals"), except such Approvals as to which the failure to
own, possess or operate in compliance with would not, individually or in the
aggregate, result in a material adverse effect on the condition (financial or
other), results of operations, business or prospects of the Company and its
Subsidiaries taken as a whole ("Material Approvals"); all such Material
Approvals are valid and in full force and effect; and the Company has no reason
to believe that any governmental agency or body is considering limiting,
suspending or revoking any such Material Approval.
(q) From the date as of which information is given in the Prospectus
through the date hereof, and except as may otherwise be disclosed in the
Prospectus, neither the Company nor any of its Subsidiaries has (i) issued,
granted, repurchased, reclassified or exchanged any of their respective
securities (other than in respect of intercompany transactions or pursuant to
employee stock options, the Company's director and key employee stock purchase
plan, the Company's director compensation plan or the Company's savings plan),
(ii) incurred any liability or obligation, direct or contingent, other than
liabilities and obligations which were incurred in the ordinary course of
business, (iii) entered into any material transaction not in the ordinary course
of business or (iv) entered into any material transaction with an affiliate of
the Company, other than Dynegy Inc. or another direct or indirect subsidiary of
Dynegy Inc.; and (v) the Company has not declared or paid any dividend on its
capital stock other than the regular quarterly dividend on its Common Stock.
(r) There has been no storage, disposal, generation, transportation,
handling or treatment of hazardous substances or hazardous wastes by the Company
or any of its Subsidiaries (or to the knowledge of the Company, any of its
predecessors in interest) at, upon or from any of the
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property now or previously owned or leased by the Company or any of its
Subsidiaries in violation of any applicable law, ordinance, rule, regulation,
order, judgment, decree or permit or which would require remedial action under
any applicable law, ordinance, rule, regulation, order, judgment, decree or
permit, except for any violation or remedial action which would not,
individually or in the aggregate with all such violations and remedial actions,
result in a material adverse effect on the condition (financial or other),
results of operations, business or prospects of the Company and its Subsidiaries
taken as a whole; there has been no material spill, discharge, leak, emission,
injection, escape, dumping or release of any kind onto such property or into the
environment surrounding such property of any hazardous wastes or hazardous
substances due to or caused by the Company or any of its Subsidiaries, except
for any such spill, discharge, leak, emission, injection, escape, dumping or
release which would not, individually or in the aggregate with all such spills,
discharges, leaks, emissions, injections, escapes, dumpings and releases result
in a material adverse effect on the condition (financial or other), results of
operations, business or prospects of the Company and its Subsidiaries taken as a
whole; none of the facilities of the Company or any of its Subsidiaries is a
solid waste facility for purposes of any applicable environmental law; and the
terms "hazardous substances" and "hazardous wastes" shall have the meanings
specified in any applicable local, state and federal laws or regulations with
respect to environmental protection.
(s) The Company has not taken and shall not take, directly or
indirectly, any action designed to cause or result in, or which has constituted
or which might reasonably be expected to constitute, the stabilization or
manipulation of the price of the Notes to facilitate the sale or resale of the
Notes.
(t) The Notes will be pari passu with all existing and future
unsecured and unsubordinated indebtedness of the Company.
(u) The conditions for the Company's use of Form S-3 for filing the
Registration Statement, as set out in the general instructions to such form,
have been satisfied.
(v) Neither the Company nor any of its Subsidiaries is an "investment
company" within the meaning of the Investment Company Act of 1940, as amended
(the "1940 Act"), or is subject to regulation as an "investment company" under
the 1940 Act.
2. Purchase of the Notes by the Underwriters. Subject to the terms
and conditions and upon the basis of the representations and warranties herein
set forth, the Company agrees to issue and sell to the Underwriters, and each of
the Underwriters agrees, severally and not jointly, to purchase from the
Company, at a price equal to 98.899 % of the principal amount thereof, plus
accrued interest, if any, from March 20, 2000, the principal amount of the Notes
set forth opposite such Underwriter's name in Schedule I hereto. The
Underwriters propose to offer the Notes to the public as set forth in the
Prospectus.
3. Delivery of and Payment for Notes. Delivery of the Notes shall
be made at such place or places as mutually may be agreed upon by the Company
and the Underwriters, at 10:00 A.M., New York City time, on March 20, 2000 or
on such later date not more than three Business Days after the foregoing date as
shall be determined by you and the Company (the "Closing Date").
Delivery of the Notes shall be made to you by or on behalf of the
Company against payment of the purchase price therefor by wire transfer of
immediately available funds. Delivery of
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the Notes shall be made through the facilities of The Depository Trust Company
unless you shall otherwise instruct. Time shall be of the essence, and delivery
of the Notes at the time and place specified in this Agreement is a further
condition to the obligations of each Underwriter.
4. Covenants of the Company. The Company covenants and agrees with
each Underwriter that:
(a) If the Effective Date is on or before the date of this Agreement,
the Company shall comply with the provisions of and make all requisite filings
with the Commission pursuant to Rule 424(b) not later than the Commission's
close of business on the second Business Day following the execution and
delivery of this Agreement or, if applicable, such earlier time as may be
required by Rule 430A(a)(3) of the Rules and Regulations. The Company shall
advise you, promptly after it receives notice thereof, of the time when, if the
Effective Date is on or before the date of this Agreement, 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. The Company shall
notify you promptly of any request by the Commission for any amendment of or
supplement to the Registration Statement or the Prospectus or for additional
information; the Company shall prepare and file with the Commission, promptly
upon your request, any amendments or supplements to the Registration Statement
or the Prospectus which, in your opinion, may be necessary or advisable in
connection with the distribution of the Notes; and the Company shall not file
any amendment or supplement to the Registration Statement or the Prospectus or
file any document under the Exchange Act before the termination of the offering
of the Notes by the Underwriters if such document would be deemed to be
incorporated by reference into the Prospectus, which filing is not consented to
by you after reasonable notice thereof, such consent not to be unreasonably
withheld or delayed. The Company shall advise you promptly of the issuance by
the Commission or any State or other regulatory body of any stop order or other
order suspending the effectiveness of the Registration Statement, suspending or
preventing the use of any Preliminary Prospectus or the Prospectus or suspending
the qualification of the Notes for offering or sale in any jurisdiction, or of
the institution of any proceedings for any such purpose; and the Company shall
use its best efforts to prevent the issuance of any stop order or other such
order and, should a stop order or other such order be issued, to obtain as soon
as possible the lifting thereof.
(b) The Company shall furnish to each of you and to counsel for the
Underwriters such number of conformed copies of the Registration Statement, as
originally filed and each amendment thereto (excluding exhibits other than this
Agreement), the Prospectus and all amendments and supplements to any of such
documents (including any document filed under the Exchange Act and deemed to be
incorporated by reference in the Preliminary Prospectus or Prospectus), in each
case as soon as available and in such quantities as you may from time to time
reasonably request.
(c) Within the time during which the Prospectus relating to the Notes
is required to be delivered under the Securities Act, the Company shall comply
with all requirements imposed upon it by the Securities Act, as now and
hereafter amended, and by the Rules and Regulations, as from time to time in
force, so far as is necessary to permit the continuance of sales of or dealings
in the Notes as contemplated by the provisions hereof and by the Prospectus. If
during such period any event occurs as a result of which the Prospectus as then
amended or supplemented would include an untrue statement of a material fact or
omit to state a material fact necessary to make the statements therein, in the
light of the circumstances then existing, not misleading, or if during such
period it is
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necessary to amend the Registration Statement or supplement the Prospectus or
file any document to comply with the Securities Act, the Company shall promptly
notify you and shall, subject to Section 4(a) above, amend the Registration
Statement or supplement the Prospectus or file any document (at the expense of
the Company) so as to correct such statement or omission or to effect such
compliance.
(d) The Company shall take or cause to be taken all necessary action
and furnish to whomever you may direct such information as may be required in
qualifying the Notes for offering and sale under the laws of such jurisdictions
as you shall designate, and to continue such qualifications in effect for as
long as may be necessary for the distribution of the Notes; except that in no
event shall the Company be obligated in connection therewith to qualify as a
foreign corporation or to execute a general consent to service of process in any
jurisdiction where it is not currently so subject.
(e) As soon as practicable, the Company shall make generally available
to its security holders (and shall deliver to you) an earnings statement
satisfying the requirements of Section 11(a) of the Securities Act and Rule 158
of the Rules and Regulations.
(f) Whether or not this Agreement becomes effective or is terminated
or the sale of the Notes to the Underwriters is consummated, the Company shall
pay or cause to be paid (A) all fees and expenses (including, without
limitation, all registration and filing fees and fees and expenses of the
Company's accountants but excluding fees and expenses of counsel for the
Underwriters) incurred in connection with the preparation, printing, filing,
delivery and shipping of the Registration Statement (including the financial
statements therein and all amendments and exhibits thereto), each Preliminary
Prospectus, the Prospectus, the Indenture, the Statement of Eligibility and
Qualification of the Trustee on Form T-1 filed with the Commission (the "Form T-
1") and any amendments or supplements of the foregoing and any documents
incorporated by reference into any of the foregoing and the copying, delivery
and shipping of this Agreement and Blue Sky Memoranda, (B) all fees and expenses
incurred in connection with the preparation and delivery to the Underwriters of
the Notes (including the cost of printing the Notes), (C) all filing fees and
fees and disbursements of counsel to the Underwriters incurred in connection
with the qualification of the Notes under state securities or Blue Sky laws as
provided in Section 4(d) hereof, (D) any fees required to be paid to rating
agencies incurred in connection with the rating of the Notes, (E) the fees,
costs and charges of the Trustee, including the fees and disbursements of
counsel for the Trustee, and (F) all other costs and expenses incident to the
performance of its obligations hereunder for which provision is not otherwise
made in this Section. It is understood, however, that, except as provided in
this Section, Section 6 and Section 8 hereof, the Underwriters shall pay all of
their own costs and expenses, including the fees of their counsel and any
advertising expenses incurred in connection with any offers they may make. If
the sale of the Notes provided for herein is not consummated by reason of acts
of the Company or changes in circumstances of the Company pursuant to Section 8
hereof which prevent this Agreement from becoming effective, or by reason of any
failure, refusal or inability on the part of the Company to perform any
agreement on its part to be performed or because any other condition of the
Underwriters' obligations hereunder is not fulfilled or if the Underwriters
shall decline to purchase the Notes for any reason permitted under this
Agreement other than by reason of a default by any of the Underwriters pursuant
to Section 7, the Company shall reimburse the several Underwriters for all
reasonable out-of-pocket disbursements (including fees and disbursements of
counsel) incurred by the Underwriters in connection with any investigation or
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preparation made by them in respect of the marketing of the Notes or in
contemplation of the performance by them of their obligations hereunder.
(g) During the period of one year from the Closing Date, the Company
shall furnish to the Underwriters, copies of all reports or other communications
furnished to stockholders and copies of any reports or financial statements
furnished to or filed with the Commission and the Company shall furnish to the
Underwriters copies of all reports and other communications furnished to the
Noteholders.
(h) Until termination of the offering of the Notes, the Company shall
timely file all documents and amendments to previously filed documents required
to be filed by it pursuant to Section 12, 13, 14 or 15(d) of the Exchange Act.
(i) The Company shall apply the net proceeds from the sale of the
Notes as set forth in the Prospectus.
(j) Until the Closing Date, the Company will not, without the prior
written consent of Banc of America Securities L.L.C., directly or indirectly,
issue, sell, offer to sell, grant any option for the sale of or otherwise
dispose of, any debt securities other than to commercial banks.
5. Conditions of Underwriters' Obligations. The obligations of the
Underwriters hereunder are subject to the accuracy, as of the date hereof and
the Closing Date (as if made at the Closing Date), of the representations and
warranties of the Company contained herein, to the performance by the Company of
its obligations hereunder and to the following additional conditions:
(a) The Prospectus shall have been filed with the Commission in a
timely fashion in accordance with Section 4(a) hereof, the Registration
Statement and all post-effective amendments to the Registration Statement shall
have become effective, all filings required by Rule 424 and Rule 430A of the
Rules and Regulations shall have been made and no such filings shall have been
made without the consent of the Underwriters; no stop order suspending the
effectiveness of the Registration Statement or any amendment or supplement
thereto or suspending the qualification of the Notes for offering or sale in any
jurisdiction shall have been issued; no proceedings for the issuance of any such
order shall have been initiated or threatened; and any request of the Commission
for additional information (to be included in the Registration Statement or the
Prospectus or otherwise) shall have been disclosed to you and complied with to
your satisfaction.
(b) No Underwriter shall have been advised by the Company or shall
have discovered and disclosed to the Company that the Registration Statement or
the Prospectus or any amendment or supplement thereto, contains an untrue
statement of fact which in your opinion, or in the opinion of counsel to the
Underwriters, is material, or omits to state a fact which, in your opinion, or
in the opinion of counsel to the Underwriters, is material and is required to be
stated therein or is necessary to make the statements therein not misleading.
(c) On the Closing Date, you shall have received from Baker Botts
L.L.P., counsel for the Underwriters, such opinion or opinions with respect to
the validity of the Notes and other related matters as you may reasonably
request and such counsel shall have received such documents and information as
they request to enable them to pass upon such matters.
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(d) On the Closing Date there shall have been furnished to you the
opinion (addressed to the Underwriters) of Vinson & Elkins L.L.P., counsel for
the Company, dated the Closing Date and in form and substance satisfactory to
the Underwriters, to the effect that:
(i) The Company has been duly incorporated and is validly existing and
in good standing as a corporation under the laws of the jurisdiction of its
incorporation, with full corporate power and authority to own, lease and
operate its properties and conduct its business as described in the
Prospectus. To the knowledge of such counsel, the Company is duly
qualified to do business and is in good standing in each jurisdiction in
which the character of the business conducted by it or the location of the
properties owned, leased or operated by it makes such qualification
necessary (except where the failure to so qualify would not, individually
or in the aggregate, have a material adverse effect on the condition
(financial or other), results of operations, business or prospects of the
Company and its Subsidiaries taken as a whole).
(ii) To the best of such counsel's knowledge, neither the filing of
the Registration Statement nor the offering or sale of the Notes as
contemplated by this Agreement gives rise to any rights, other than those
which have been waived or satisfied, for or relating to the registration of
any securities of the Company or any of its Subsidiaries. The authorized
equity capitalization of the Company as of the date of the most recent
balance sheet included or incorporated by reference in the Prospectus is as
set forth in the Prospectus. The Company has all requisite corporate power
and authority to issue, sell and deliver the Notes in accordance with and
upon the terms and conditions set forth in this Agreement and in the
Registration Statement and Prospectus.
(iii) The Indenture has been duly authorized, executed and delivered
by the Company and is a valid and binding agreement of the Company,
enforceable against the Company in accordance with its terms, except as the
enforceability thereof may be limited by bankruptcy, insolvency,
reorganization, moratorium or similar laws relating to or affecting
creditors' rights generally and by general equitable principles (regardless
of whether such enforceability is considered in a proceeding in equity or
at law); and the Indenture has been duly qualified under the Trust
Indenture Act and the rules and regulations thereunder.
(iv) The Notes have been duly authorized and executed by the Company
for issuance and sale to the Underwriters pursuant to this Agreement and,
assuming due authentication of the Notes by the Trustee, upon delivery to
the Underwriters against payment therefor in accordance with the terms of
this Agreement, will have been validly issued and delivered, will be
entitled to the benefits of the Indenture and will constitute valid and
binding obligations of the Company, enforceable against the Company in
accordance with their terms, except as enforcement thereof may be limited
by bankruptcy, insolvency, reorganization, moratorium or other similar laws
or judicial decisions relating to or affecting creditors' rights generally
and by general equitable principles (regardless of whether such
enforceability is considered in a proceeding in equity or at law).
(v) Neither the execution or delivery of this Agreement nor
consummation of the transactions contemplated hereby will result in a
breach or violation of, or constitute a default under, the certificate of
incorporation or by-laws of the Company, nor will the performance by the
Company of its obligations hereunder violate any law, rule, administrative
regulation
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or (to the knowledge of such counsel) decree (except that such counsel need
not express an opinion as to federal or state securities or Blue Sky laws
with respect to this subparagraph) of any court or any governmental agency
or body having jurisdiction over the Company, its Subsidiaries or their
respective properties. Except for permits, consents, approvals and similar
authorizations required under the securities or Blue Sky laws of certain
jurisdictions and except for such permits, consents, approvals and
authorizations which have been obtained, no permit, consent, approval,
authorization or order of any court, governmental agency or body or
financial institution is required of the Company for the valid
authorization, issuance, sale and delivery of the Notes.
(vi) The Company has all necessary corporate power and authority to
execute and deliver this Agreement and perform its obligations hereunder.
This Agreement has been duly authorized, executed and delivered by the
Company.
(vii) The Registration Statement and all post-effective amendments
thereto have become effective under the Securities Act and, to the
knowledge of such counsel, no stop order suspending the effectiveness of
the Registration Statement has been issued and no proceedings for that
purpose have been instituted or are pending before or threatened by the
Commission. To the knowledge of such counsel, no order of the Commission
directed to any document incorporated by reference in the Registration
Statement has been issued, and no challenge by appropriate proceedings has
been made to the accuracy or adequacy of any document incorporated by
reference in the Registration Statement.
(viii) The Registration Statement and the Prospectus and any further
amendments or supplements thereto made by the Company and the Form T-1, as
of their respective effective or issue dates, complied as to form in all
material respects with the applicable requirements of the Securities Act
and the Rules and Regulations and the Trust Indenture Act and the rules and
regulations thereunder (except that no opinion need be expressed as to the
financial statements or notes thereto or other financial and statistical
data contained therein or omitted therefrom).
(ix) The Indenture and the Notes conform in all material respects as
to legal matters to the respective statements concerning them contained in
the Registration Statement and Prospectus. There are no legal proceedings
pending or threatened against the Company or any of its Subsidiaries to
which such counsel has given substantive attention or in which such counsel
has been engaged to represent the Company or any of its Subsidiaries that
are required to be disclosed in the Prospectus and are not disclosed.
Such opinion shall also contain a statement that such counsel has no
reason to believe that (i) the Registration Statement, as of the Effective Time,
or any amendment thereto (other than the financial statements and notes thereto
and the other financial and statistical data contained therein, as to which such
counsel need not comment), at the time it became effective, including in each
case any document filed under the Exchange Act and incorporated by reference
therein, contained any untrue statement of a material fact or omitted to state
any material fact required to be stated therein or necessary in order to make
the statements therein not misleading, or (ii) the Prospectus or any supplement
or amendment thereto (other than the financial statements and notes thereto and
the other financial and statistical data contained therein, as to which such
counsel need not comment), including in each case any document filed under the
Exchange Act and incorporated
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<PAGE>
by reference therein, on such Closing Date and at the time such Prospectus or
supplement or amendment thereto was issued contains or contained any untrue
statement of a material fact or omits or omitted to state any material fact
required to be stated therein or necessary in order to make the statements
therein, in light of the circumstances under which they were made, not
misleading.
(e) On the Closing Date there shall have been furnished to you the
opinion (addressed to the Underwriters) of Senior Vice President and General
Counsel of the Company, dated the Closing Date and in form and substance
satisfactory to the Underwriters, to the effect that:
(i) Each of the Company's Significant Subsidiaries has been duly
incorporated or formed as a corporation or partnership, as applicable, and
is validly existing as a corporation, a general partnership or a limited
partnership under the laws of its jurisdiction of incorporation or
formation (and each of the Significant Subsidiaries that is a corporation
or a limited partnership is in good standing under the laws of its
jurisdiction of incorporation or formation), with full corporate or
partnership (as applicable) power and authority to own, lease and operate
its properties and conduct its business as described in the Prospectus.
(ii) To the knowledge of such counsel, except as disclosed in the
Prospectus, all of the outstanding shares of capital stock or partnership
interests (or such percentage of the partnership interest as is set forth
in the respective partnership agreements) of each Significant Subsidiary
are owned directly or indirectly by the Company, free and clear of any
perfected security interest.
(iii) Neither the execution or delivery of this Agreement nor
consummation of the transactions contemplated hereby will result in a
breach or violation of, or constitute a default under, the certificate of
incorporation, by-laws, partnership agreement or other governing documents
of the Significant Subsidiaries or any agreement, indenture or other
instrument filed as an exhibit to the Registration Statement or any
document incorporated by reference therein.
(iv) Each document incorporated by reference in the Registration
Statement as filed under the Exchange Act complied when so filed as to form
in all material respects with the applicable requirements of the Exchange
Act and the rules and regulations of the Commission thereunder (except that
no opinion need be expressed as to the financial statements or notes
thereto and other financial and statistical data contained therein).
(v) The descriptions in the Registration Statement and Prospectus of
statutes, regulations, legal or governmental proceedings, to the extent
they constitute matters of law and summaries of legal matters are accurate
in all material respects. To the knowledge of such counsel, there are no
contracts or documents required to be described in the Registration
Statement or Prospectus or to be filed as exhibits thereto which are not
described or filed as required.
(f) There shall have been furnished to you a certificate, dated the
Closing Date and addressed to you, signed by the Chairman of the Board or the
President or any Senior Vice President and by the Chief Financial Officer of the
Company to the effect that: (i) the representations and warranties of the
Company contained in this Agreement are true and correct, as if made at and
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as of the Closing Date, and the Company has complied with all the agreements and
satisfied all the conditions on its part to be complied with or satisfied at or
prior to the Closing Date; (ii) no stop order suspending the effectiveness of
the Registration Statement has been issued, and no proceeding for that purpose
has been initiated or, to the best of their knowledge, threatened; (iii) all
filings required by Rule 424(b) and Rule 430A of the Rules and Regulations have
been made; (iv) the signers of said certificate have carefully examined the
Registration Statement and the Prospectus, and any amendments or supplements
thereto (including any documents filed under the Exchange Act and deemed to be
incorporated by reference into the Prospectus), and such documents contain all
statements and information required to be included therein, and do not include
any untrue statement of a material fact or omit to state any material fact
required to be stated therein or necessary to make the statements therein not
misleading; (v) since the Effective Date there has occurred no event required to
be set forth in an amendment or supplement to the Registration Statement or the
Prospectus which has not been so set forth and there has been no document
required to be filed under the Exchange Act and the Rules and Regulations that
upon such filing would be deemed to be incorporated by reference into the
Prospectus that has not been so filed and (vi) no event contemplated by
subsection (g) of this Section 5 shall have occurred.
(g) Since the dates as of which information is given in the
Registration Statement (exclusive of any amendment thereto) and in the
Prospectus (exclusive of any supplement thereto filed subsequent to the date
hereof), neither the Company nor any of its Subsidiaries shall have sustained
any loss by fire, flood, accident or other calamity, or shall have become a
party to or the subject of any litigation, which is materially adverse to the
Company and its Subsidiaries taken as a whole, nor shall there have been a
material adverse change in the general affairs, operations, business, prospects,
key personnel, capitalization, financial condition or net worth of the Company
and its Subsidiaries taken as a whole, regardless of whether arising in the
ordinary course of business, which loss, litigation or change, in your
judgement, shall render it impractical or inadvisable to proceed with the
payment for and delivery of the Notes.
(h) On the date hereof and the Closing Date you shall have received
letters from Arthur Andersen LLP, dated respectively the date hereof and the
Closing Date and addressed to you, confirming that they are independent
certified public accountants within the meaning of the Securities Act and the
applicable published Rules and Regulations, and stating, as of the date of such
letter (or, with respect to matters involving changes or developments since the
respective dates as of which specified financial information is given or
incorporated in the Prospectus as of a date not more than five days prior to the
date of such letter, provided that such date shall be after the date of the
Prospectus), the conclusions and findings of such firm with respect to the
financial information and other matters covered by its letter delivered to you
concurrently with the execution of this Agreement, and, with respect to the
letter delivered on the Closing Date, confirming the conclusions and findings
set forth in such prior letter.
(i) You shall have been furnished by the Company such additional
documents and certificates as you or counsel for the Underwriters may reasonably
request.
(j) At the time of the Closing, the Notes shall have a rating of at
least Baa2 by Moody's Investors Service and BBB+ by Standard & Poor's
Corporation, and the Company shall have delivered to the Underwriters a letter,
dated the Closing Date, from each such rating agency or other evidence
satisfactory to the Underwriters, confirming such ratings. Since the date
hereof, there shall not have occurred any downgrading with respect to any debt
securities of the Company or any
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of its Subsidiaries by any "nationally recognized statistical rating
organization" as that term is defined by the Commission for purposes of Rule
436(g)(2) under the Securities Act or any public announcement that any such
organization has under surveillance or review its rating of any such debt
securities (other than an announcement with positive implications of a possible
upgrading, and no implication of a possible downgrading of such rating).
All such opinions, certificates, letters and documents shall be in
compliance with the provisions hereof only if they are satisfactory in form and
substance to you and to counsel for the Underwriters. The Company shall furnish
to you conformed copies of such opinions, certificates, letters and other
documents in such number as you shall reasonably request. If any of the
conditions specified in this Section 5 shall not have been fulfilled when and as
required by this Agreement, this Agreement and all obligations of the
Underwriters hereunder may be canceled at, or at any time prior to, the Closing
Date, by you. Any such cancellation shall be without liability of the
Underwriters to the Company. Notice of such cancellation shall be given to the
Company in writing, or by telegraph or telephone and confirmed in writing.
6. Indemnification and Contribution. (a) The Company shall
indemnify and hold harmless each Underwriter from and against any loss, claim,
damage or liability (or any action in respect thereof), joint or several, to
which such Underwriter may become subject, under the Securities Act or
otherwise, insofar as such loss, claim, damage or liability (or action in
respect thereof) arises out of or is based upon (i) any untrue statement or
alleged untrue statement made by the Company in Section 1 hereof, (ii) any
untrue statement or alleged untrue statement of a material fact contained in the
Registration Statement, any Preliminary Prospectus, the Prospectus or the
Registration Statement or Prospectus as amended or supplemented, or (iii) the
omission or alleged omission to state in the Registration Statement, any
Preliminary Prospectus, the Prospectus or the Registration Statement or
Prospectus as amended or supplemented a material fact required to be stated
therein or necessary to make the statements therein not misleading; and shall
reimburse each Underwriter promptly after receipt of invoices from such
Underwriter for any legal or other expenses as reasonably incurred by such
Underwriter in connection with investigating, preparing to defend or defending
against or appearing as a third-party witness in connection with any such loss,
claim, damage, liability or action, notwithstanding the possibility that
payments for such expenses might later be held to be improper, in which case
such payments shall be promptly refunded; provided, however, that the Company
shall not be liable under this paragraph 6(a) in any such case to the extent,
but only to the extent, that any such loss, claim, damage, liability or action
arises out of or is based upon an untrue statement or alleged untrue statement
or omission or alleged omission made in reliance upon and in conformity with
written information furnished to the Company by the Underwriters expressly for
use in the preparation of the Registration Statement, any Preliminary
Prospectus, the Prospectus or the Registration Statement or Prospectus as
amended or supplemented; provided, further that with respect to any untrue
statement or omission or alleged untrue statement or omission made in any
Preliminary Prospectus, which untrue statement or omission or alleged untrue
statement or omission in such Preliminary Prospectus was corrected in the
Prospectus, the indemnity agreement contained in this paragraph 6(a) shall not
inure to the benefit of any Underwriter (or any person controlling such
Underwriter) to the extent that any such loss, claim, damage or liability
results from the fact that a copy of the Prospectus was not sent or given to the
person asserting any such losses, claims, damages or liabilities at or prior to
the written confirmation of the sale of the Notes concerned to such person by
such Underwriter (provided that the Company shall have complied with the
provisions of Section 4(a) and (c) hereof and such Underwriter shall have been
provided with the number of copies of such Prospectus requested by such
Underwriter in
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a timely manner) and it is judicially determined that such delivery was required
under the Securities Act and was not so made.
(b) Each Underwriter severally, but not jointly, shall indemnify and
hold harmless the Company against any loss, claim, damage or liability (or any
action in respect thereof) to which the Company may become subject, under the
Securities Act or otherwise, insofar as such loss, claim, damage or liability
(or action in respect thereof) arises out of or is based upon (i) any untrue
statement or alleged untrue statement of a material fact contained in the
Registration Statement, any Preliminary Prospectus, the Prospectus or the
Registration Statement or Prospectus as amended or supplemented, or (ii) the
omission or alleged omission to state in the Registration Statement, any
Preliminary Prospectus, the Prospectus or the Registration Statement or
Prospectus as amended or supplemented a material fact required to be stated
therein or necessary to make the statements therein not misleading and shall
reimburse the Company promptly after receipt of invoices from the Company for
any legal or other expenses reasonably incurred by the Company in connection
with investigating, preparing to defend or defending against or appearing as a
third-party witness in connection with any such loss, claim, damage, liability
or action notwithstanding the possibility that payments for such expenses might
later be held to be improper, in which case such payments shall be promptly
refunded; provided, however, that such indemnification or reimbursement shall be
available in each such 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 reliance upon and in conformity with written information furnished to
the Company by such Underwriter expressly for use therein.
(c) Promptly after receipt by any indemnified party under subsection
(a) or (b) above of notice of any claim or the commencement of any action, the
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 claim or the commencement of that action; provided, however, that
the failure to so notify the indemnifying party shall not relieve it from any
liability which it may have under this Section 6 except to the extent it has
been prejudiced in any material respect by such failure or from any liability
which it may have to an indemnified party otherwise than under this Section 6.
If any such claim or action shall be brought against any indemnified party, and
it shall notify the indemnifying party thereof, the indemnifying party shall be
entitled to participate therein and, to the extent that it wishes, jointly with
any other similarly notified indemnifying party, to assume the defense thereof
with counsel reasonably satisfactory to the indemnified party. After notice
from the indemnifying party to the indemnified party of its election to assume
the defense of such claim or action, the indemnifying party shall not be liable
to the indemnified party under subsection (a) or (b) above for any legal or
other expenses subsequently incurred by the indemnified party in connection with
the defense thereof other than reasonable costs of investigation; except that
the Underwriters shall have the right to employ counsel to represent the
Underwriters who may be subject to liability arising out of any claim in respect
of which indemnity may be sought by the Underwriters against the Company under
such subsection if (i) the employment thereof has been specifically authorized
by the Company in writing, (ii) the Underwriters shall have been advised by
counsel that there may be one or more legal defenses available to the
Underwriters which are different from or additional to those available to the
Company and in the reasonable judgment of such counsel it is advisable for the
Underwriters to employ separate counsel or (iii) the Company has failed to
assume the defense of such action and employ counsel reasonably satisfactory to
the Underwriters, in which event the fees and expenses of such separate counsel
shall be paid by the Company. No indemnifying party shall (i) without the prior
written consent of the indemnified parties (which consent shall not be
unreasonably withheld), settle or compromise or consent to the
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entry of any judgment with respect to any pending or threatened claim, action,
suit or proceeding in respect of which indemnification or contribution may be
sought hereunder (whether or not the indemnified parties are actual or potential
parties to such claim or action) unless such settlement, compromise or consent
includes an unconditional release of each indemnified party from all liability
arising out of such claim, action, suit or proceeding, or (ii) be liable for any
settlement of any such action effected without its written consent (which
consent shall not be unreasonably withheld), but if settled with the consent of
the indemnifying party or if there be a final judgment of the plaintiff in any
such action, the indemnifying party agrees to indemnify and hold harmless any
indemnified party from and against any loss or liability by reason of such
settlement or judgment.
(d) If the indemnification provided for in this Section 6 is
unavailable or insufficient to hold harmless an indemnified party under
subsection (a) or (b) above, then each indemnifying party shall, in lieu of
indemnifying such indemnified party, contribute to the amount paid or payable by
such indemnified party as a result of the losses, claims, damages or liabilities
referred to in subsection (a) or (b) above (i) in such proportion as is
appropriate to reflect the relative benefits received by the Company on the one
hand and the Underwriters on the other hand from the offering of the Notes or
(ii) if the allocation provided by clause (i) above is not permitted by
applicable law, in such proportion as is appropriate to reflect not only the
relative benefits referred to in clause (i) above but also the relative fault of
the Company on the one hand and the Underwriters on the other hand in connection
with the statements or omissions that resulted in such losses, claims, damages
or liabilities, or actions in respect thereof, as well as any other relevant
equitable considerations. The relative benefits received by the Company on the
one hand and the Underwriters on the other hand shall be deemed to be in the
same proportion as the total net proceeds from the offering of the Notes (before
deducting expenses) received by the Company bear to the total underwriting
discounts and commissions received by the Underwriters, in each case as set
forth in the table on the cover page of the Prospectus. 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 or the
Underwriters and the parties' relative intent, knowledge, access to information
and opportunity to correct or prevent such untrue statement or omission. The
Company and the Underwriters agree that it would not be just and equitable if
contributions pursuant to this subsection (d) were to be determined by pro rata
allocation (even if the Underwriters were treated as one entity for such
purpose) or by any other method of allocation that does not take into account
the equitable considerations referred to in the first sentence of this
subsection (d). The amount paid by an indemnified party as a result of the
losses, claims, damages or liabilities (or actions in respect thereof) referred
to in the first sentence of this subsection (d) shall be deemed to include any
legal or other expenses reasonably incurred by such indemnified party in
connection with investigating, preparing to defend or defending against any
action or claim which is the subject of this subsection (d). Notwithstanding
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 Notes underwritten by it and distributed to the public were offered to the
public exceeds the amount of any damages that 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 Securities Act) shall be entitled to
contribution from any person who was not guilty of such fraudulent
misrepresentation. The Underwriters' obligations in this subsection (d) to
contribute are several in proportion to their respective underwriting
obligations and not joint. Each party entitled to contribution agrees that upon
the service of a summons or other initial legal process upon it in any action
instituted against
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it in respect to which contribution may be sought, it shall promptly give
written notice of such service to the party or parties from whom contribution
may be sought, but the omission so to notify such party or parties of any such
service shall not relieve the party from whom contribution may be sought for any
obligation it may have hereunder or otherwise (except as specifically provided
in subsection (c) above).
(e) The obligations of the Company under this Section 6 shall be in
addition to any liability that the Company may otherwise have, and shall extend,
upon the same terms and conditions set forth in this Section 6, to the
respective officers and directors of the Underwriters and each person, if any,
who controls any Underwriter within the meaning of the Securities Act; and the
obligations of the Underwriters under this Section 6 shall be in addition to any
liability that the respective Underwriters may otherwise have, and shall extend,
upon the same terms and conditions, to each director of the Company (including
any person who, with his or her consent, is named in the Registration Statement
as about to become a director of the Company), to each officer of the Company
who has signed the Registration Statement and to each person, if any, who
controls the Company within the meaning of the Securities Act.
7. Substitution of Underwriters. If any Underwriter defaults in its
obligation to purchase the principal amount of the Notes which it has agreed to
purchase under this Agreement, the non-defaulting Underwriters shall be
obligated to purchase (in the respective proportions which the principal amount
of the Notes set forth opposite the name of each non-defaulting Underwriter in
Schedule I hereto bears to the total principal amount of the Notes less the
principal amount of the Notes the defaulting Underwriter agreed to purchase set
forth in Schedule I hereto) the principal amount of the Notes which the
defaulting Underwriter agreed but failed to purchase; except that the non-
defaulting Underwriters shall not be obligated to purchase any of the Notes if
the total principal amount of the Notes which the defaulting Underwriter or
Underwriters agreed but failed to purchase exceed 9.09% of the total principal
amount of the Notes, and any non-defaulting Underwriters shall not be obligated
to purchase more than 110% of the principal amount of the Notes set forth
opposite its name in Schedule I hereto. If the foregoing maximums are exceeded,
the non-defaulting Underwriters, and any other underwriters satisfactory to you
who so agree, shall have the right, but shall not be obligated, to purchase (in
such proportions as may be agreed upon among them) all of the Notes. If the
non-defaulting Underwriters or the other underwriters satisfactory to the
Underwriters do not elect to purchase the Notes that the defaulting Underwriter
or Underwriters agreed but failed to purchase within 36 hours after such
default, this Agreement shall terminate without liability on the part of any
non-defaulting Underwriter or the Company, except for the indemnity and
contribution agreements of the Company and the Underwriters contained in Section
6 hereof. As used in this Agreement, the term "Underwriter" includes any person
substituted for an Underwriter pursuant to this Section 7.
Nothing contained herein shall relieve a defaulting Underwriter of any
liability it may have for damages caused by its default. If the non-defaulting
Underwriters or the other underwriters satisfactory to you are obligated or
agree to purchase the Notes of a defaulting Underwriter, either you or the
Company may postpone the Closing Date for up to seven full Business Days in
order to effect any changes that may be necessary in the Registration Statement
or the Prospectus or in any other document or agreement, and to file promptly
any amendments or any supplements to the Registration Statement or the
Prospectus which in your opinion may thereby be made necessary.
18
<PAGE>
8. Effective Date and Termination. (a) This Agreement shall become
effective (i) if the Effective Date is on or before the date of this Agreement,
at [11:00 A.M.], New York City time, on the next Business Day following the date
hereof, (ii) if the Effective Date is after the date of this Agreement, at
[11:00 A.M.], New York City time, on the first full Business Day following the
Effective Date or (iii) at such earlier time after the Registration Statement
becomes effective as you shall first release the Notes for sale to the public.
You shall notify the Company immediately after you have taken any action which
causes this Agreement to become effective. Until this Agreement is effective,
it may be terminated by the Company by giving notice as hereinafter provided to
you, or by you by giving notice as hereinafter provided to the Company except
that the provisions of Section 4(f) and Section 6 hereof shall at all times be
effective. For purposes of this Agreement, the release of the initial public
offering of the Notes for sale to the public shall be deemed to have been made
when you release, by telegram or otherwise, firm offers of the Notes to
securities dealers or release for publication a newspaper advertisement relating
to the Notes, whichever occurs first.
(b) Until the Closing Date, this Agreement may be terminated by you by
giving notice as hereinafter provided to the Company if (i) the Company shall
have failed, refused or been unable, at or prior to the Closing Date, to perform
any agreement on its part to be performed hereunder, (ii) any other condition of
the Underwriters' obligation hereunder is not fulfilled, (iii) trading in the
Common Stock of the Company's parent company shall have been suspended by the
Commission or the NYSE or trading in securities generally on the NYSE shall have
been suspended or minimum prices shall have been established on such exchange by
the Commission or such exchange or other regulatory body or governmental
authority having jurisdiction which, in the judgment of a majority in interest
of the several Underwriters make,it inadvisable or impractical to proceed with
the offering or delivery of the Notes, (iv) a banking moratorium is declared by
either federal or New York state authorities, (v) the United States becomes
engaged in hostilities or there is an escalation of hostilities involving the
United States or there is a declaration of a national emergency or war by the
United States which, in the judgment of a majority in interest of the several
Underwriters, make it inadvisable or impracticable to proceed with the offering
or delivery of the Notes or (vi) there shall have been such a material adverse
change in general economic, political or financial conditions, or the effect of
international conditions on the financial markets in the United States shall be
such, as to, in the judgment of a majority in interest of the several
Underwriters, make it inadvisable or impracticable to proceed with the offering
or delivery of the Notes. Any termination of this Agreement pursuant to this
Section 8 shall be without liability on the part of the Company or any
Underwriter, except as otherwise provided in Sections 4(f) and 6 hereof.
Any notice referred to above may be given at the address specified in
Section 10 hereof in writing or by telegraph or telephone, and if by telegraph
or telephone, shall be immediately confirmed in writing.
9. Survival of Certain Provisions. The agreements contained in
Section 6 hereof and the representations, warranties and agreements of the
Company contained in Sections 1 and 4 hereof shall survive the delivery of the
Notes to the Underwriters hereunder and shall remain in full force and effect,
regardless of any termination or cancellation of this Agreement or any
investigation made by or on behalf of any indemnified party.
10. Notices. Except as otherwise provided in the Agreement, (a)
whenever notice is required by the provisions of this Agreement to be given to
the Company, such notice shall be in writing or by telegraph addressed to the
Company at 1000 Louisiana, Suite 5800, Houston, Texas
19
<PAGE>
77002, Attention: General Counsel; (b) whenever notice is required by the
provisions of this Agreement to be given to the several Underwriters, such
notice shall be in writing or by telegraph addressed to you in care of Banc of
America Securities LLC, 100 North Tryon Street, 7th Floor, Charlotte, North
Carolina 28255, Attention: General Counsel.
11. Information Furnished by Underwriters. The Underwriters
severally confirm that the information appearing in the list of names of, and
principal amount of Notes to be purchased by, each of the Underwriters, under
the caption "Underwriting" in any Preliminary Prospectus and in the Prospectus,
and the statements in the second, fourth and sixth paragraphs and the second and
third sentences of the third paragraph next following such list, constitute the
written information furnished by or on behalf of any Underwriter referred to in
paragraph (b) of Section 1 hereof and in paragraphs (a) and (b) of Section 6
hereof.
12. Parties. This Agreement shall inure to the benefit of and be
binding upon the several Underwriters, the Company and their respective
successors. This Agreement and the terms and provisions hereof are for the sole
benefit of only those persons, except that (a) the representations, warranties,
indemnities and agreements of the Company contained in this Agreement shall also
be deemed to be for the benefit of the person or persons, if any, who control
any Underwriter within the meaning of Section 15 of the Securities Act and (b)
the indemnity agreement of the Underwriters contained in Section 6 hereof shall
be deemed to be for the benefit of directors of the Company, officers of the
Company who signed the Registration Statement and any person controlling the
Company within the meaning of Section 15 of the Securities Act. Nothing in this
Agreement shall be construed to give any person, other than the persons referred
to in this paragraph, any legal or equitable right, remedy or claim under or in
respect of this Agreement or any provision contained herein.
13. Definition of "Business Day" and "Subsidiary." For purposes of
this Agreement, (a) "Business Day" means any day on which the New York Stock
Exchange, Inc. is open for trading, other than any day on which commercial banks
are authorized or required to be closed in New York City or Houston, Texas, and
(b) "Subsidiary" has the meaning set forth in Rule 405 of the Rules and
Regulations and includes both partnerships and corporations.
14. Governing Law. This Agreement shall be governed by and construed
in accordance with the laws of the State of New York without regard to the
conflicts of laws provisions thereof.
15. Headings. The headings herein are inserted for convenience of
reference only and are not intended to be part of, or to affect the meaning or
interpretation of, this Agreement.
16. Counterparts. This Agreement may be signed in one or more
counterparts, each of which shall constitute an original and all of which
together shall constitute one and the same agreement.
20
<PAGE>
Please confirm, by signing and returning to us two counterparts of
this Agreement, that you are acting on behalf of yourselves and the several
Underwriters and that the foregoing correctly sets forth the Agreement between
the Company and the several Underwriters.
Very truly yours,
Dynegy Holdings Inc.
By: /s/ Robert D. Doty, Jr.
----------------------------------
Name: Robert D. Doty, Jr.
----------------------------
Title: Senior Vice President
----------------------------
Confirmed and accepted as of
the date first above mentioned
Banc of America Securities LLC
Lehman Brothers Inc
Banc One Capital Markets, Inc.
Chase Securities Inc.
Salomon Smith Barney Inc.
By: Banc of America Securities LLC
By: /s/ Lynn T. McConnell
----------------------------------------
Name: Lynn T. McConnell
---------------------------------
Title: Managing Director
---------------------------------
21
<PAGE>
SCHEDULE I
Underwriting Agreement dated March 15, 2000
Principal
Amount
of Notes to
Underwriter be Purchased
- ----------- ----------------
Banc of America Securities LLC......................... $105,000,000
Lehman Brothers Inc.................................... 105,000,000
Banc One Capital Markets, Inc.......................... 30,000,000
Chase Securities Inc................................... 30,000,000
Salomon Smith Barney Inc............................... 30,000,000
------------
Total.................................................. $300,000,000
============
1
<PAGE>
EXHIBIT A
Underwriting Agreement dated March 15, 2000
As used in the Underwriting Agreement, the "Significant Subsidiaries" of the
Company are as follows:
Dynegy Power Corp.
Dynegy Global Energy, Inc.
Dynegy Upper Holdings, L.L.C.
DMT Holdings, Inc.
Dynegy GP Inc.
Dynegy NGL, Inc.
Dynegy Regulated Holdings, Inc.
Dynegy Administrative Services Company
A-1
<PAGE>
SENIOR NOTE
This Security is a Book-Entry Security within the meaning of the Indenture
hereinafter referred to and is registered in the name of a Depository or a
nominee of a Depository. This Security is exchangeable for Securities
registered in the name of a Person other than the Depository or its nominee only
in the limited circumstances described in the Indenture, and no transfer of this
Security (other than a transfer of this Security as a whole by the Depository to
a nominee of the Depository or by a nominee of the Depository to the Depository
or another nominee of the Depository) may be registered except in such limited
circumstances.
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE COMPANY 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.
DYNEGY HOLDINGS INC.
8.125% Senior Notes due March 15, 2005
No. R-005 CUSIP 26816L AC 6
Dynegy Holdings Inc., a corporation duly organized and existing under the
laws of the State of Delaware (herein called the "Company," which term includes
any successor Person under the Indenture referred to on the reverse hereof), for
value received, hereby promises to pay to Cede & Co. or registered assigns, the
principal sum of $300,000,000 on March 15, 2005 and to pay interest thereon from
March 20, 2000 or from the most recent Interest Payment Date to which interest
has been paid or duly provided for, semi-annually in arrears on March 15 and
September 15 in each year, commencing September 15, 2000, at the rate of 8.125%
per annum, until the principal hereof is paid or made available for payment.
The interest so payable, and punctually paid or duly provided for, on any
Interest Payment Date will, as provided in such Indenture, be paid to the Person
in whose name this Security (or one or more Predecessor Securities) is
registered at the close of business on the Regular Record Date for such
interest, which shall be the March 1 or September 1 (whether or not a Business
Day), as the case may be, next preceding such Interest Payment Date. Except as
otherwise provided in the Indenture, any such interest not so punctually paid or
duly provided for will forthwith cease to be payable to the Holder on such
Regular Record Date and may either be paid to the Person in whose name this
Security (or one or more Predecessor Securities) is registered at the close of
business on a Special Record Date for the payment of such Defaulted Interest to
be fixed by the Trustee, notice whereof shall be given to Holders of Securities
of this series not less than 10 days prior to such Special Record Date, or be
paid at any time in any other lawful manner not inconsistent with the
requirements of any securities exchange on which the Securities of this series
may be listed, and upon such notice as may be required by such exchange, all as
more fully provided
<PAGE>
in the Indenture. Payment of the principal of and interest on this Security will
be made at the Corporate Trust Office of the Trustee, or such other office or
agency of the Company as may be designated by it for such purpose in such coin
or currency of the United States of America as at the time of payment shall be
legal tender for the payment of public and private debts; provided, however,
that at the option of the Company payment of interest may be made by check
mailed to the address of the Person entitled thereto as such address shall
appear in the Security Register.
Reference is hereby made to the further provisions of this Security set
forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.
Unless the certificate of authentication hereon has been executed by the
Trustee referred to on the reverse hereof, directly or through an Authenticating
Agent, by manual signature of an authorized signatory, this Security shall not
be entitled to any benefit under the Indenture or be valid or obligatory for any
purpose.
IN WITNESS WHEREOF, the Company has caused this instrument to be signed in
its name by its Chairman of the Board, President, Treasurer or Chief Financial
Officer, manually or by a facsimile of his signature, and its corporate seal (or
a facsimile thereof) to be hereunto affixed and the same to be attested by its
Secretary or an Assistant Secretary, all either manually or in facsimile.
Dated: March 20, 2000
DYNEGY HOLDINGS INC.
By:
-------------------------------------
Name: John U. Clarke
Title: Executive Vice President and
Chief Financial Officer
Attest:
- -----------------------------
Secretary
<PAGE>
TRUSTEE'S CERTIFICATE OF AUTHENTICATION
This is one of the Securities of the series designated therein referred to
in the within-mentioned Indenture.
BANK ONE TRUST COMPANY, N.A.,
as Trustee
By:
------------------------------
Authorized Officer
<PAGE>
Reverse of Senior Note
This Senior Note is one of a duly authorized issue of securities of the
Company (herein called the "Securities"), issued and to be issued in one or more
series under an Indenture, dated as of September 26, 1996, and as amended and
restated on March 23, 1998 (herein called the "Indenture"), among the Company
and Bank One Trust Company, NA (formerly The First National Bank of Chicago), as
Trustee (herein called the "Trustee," which term includes any successor trustee
under the Indenture), to which Indenture and all indentures supplemental thereto
reference is hereby made for a statement of the respective rights, limitations
of rights, duties and immunities thereunder of the Company, the Trustee and the
Holders of the Securities and of the terms upon which the Securities are, and
are to be, authenticated and delivered. This Security is one of the series
designated on the face hereof, limited in aggregate principal amount of
$300,000,000.
The Securities of this series are not subject to any sinking fund.
The Securities of this series shall be redeemable, at the option of the
Company, in whole at any time or in part from time to time, on at least 30 days
but not more than 60 days prior notice mailed to the registered address of each
holder of Securities to be so redeemed, at a redemption price equal to the
greater of (i) 100% of the principal amount of the Securities to be so redeemed
plus accrued interest thereon to the date of redemption, and (ii) the sum of the
present values of the remaining scheduled payments of principal of the
Securities to be so redeemed and interest thereon discounted to the date of
redemption, on a semiannual basis (assuming 360-day year consisting of twelve
30-day months), at the Treasury Rate (as defined below) plus 25 basis points
plus accrued interest thereon to the date of redemption.
"Comparable Treasury Issue" means the United States Treasury security
selected by an Independent Investment Banker as having a maturity comparable to
the remaining term of the Securities to be redeemed that would be utilized, at
the time of selection and in accordance with customary financial practice, in
pricing new issues of corporate debt securities of comparable maturity to the
remaining term of such Securities.
"Independent Investment Banker" means one of the Reference Treasury
Dealers.
"Treasury Rate" means, with respect to any redemption date, the rate per
annum equal to the semiannual equivalent yield to maturity of the Comparable
Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as
a percentage of its principal amount) equal to the Comparable Treasury Price for
such redemption date.
"Comparable Treasury Price" means, with respect to any redemption date, (i)
the average of the bid and asked prices for the Comparable Treasury Issue
(expressed in each case as a percentage of its principal amount) on the third
business day preceding such redemption date, as set forth in the daily
statistical release (or any successor release) published by the Federal Reserve
Bank of New York and designated "Composite 3:30 p.m. Quotations for U.S.
Government Securities" or (ii) if such release (or any successor release) is not
published or does not contain such prices on such business day, the average of
the Reference Treasury Dealer Quotations for such redemption date.
<PAGE>
"Reference Treasury Dealer Quotations" means, with respect to the Reference
Treasury Dealer and any redemption date, the average, as determined by the
Trustee, of the bid and asked prices for the Comparable Treasury Issue
(expressed in each case as a percentage of its principal amount) quoted in
writing to the Trustee by the Reference Treasury Dealer at 5:00 p.m. on the
third business day preceding such redemption date.
"Reference Treasury Dealer" means Banc of America Securities LLC or Lehman
Brothers Inc. and their respective successors; provided however, that if either
party shall cease to be a primary U.S. Government securities dealer in New York
City (a "Primary Treasury Dealer"), the Company shall substitute therefor
another Primary Treasury Dealer.
The Indenture contains provisions for defeasance of (a) the entire
indebtedness of the Company on this Security and (b) certain restrictive
covenants upon compliance by the Company with certain conditions set forth
therein which provisions apply to this Security.
If an Event of Default with respect to the Securities of this series shall
occur and be continuing, the principal hereof may be declared due and payable in
the manner and with the effect provided in the Indenture.
The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Securities of each series to be
affected under the Indenture at any time by the Company and the Trustee with the
consent of the Holders of a majority in principal amount of the Securities at
the time Outstanding of each series to be affected. The Indenture also contains
provisions permitting the Holders of specified percentages in aggregate
principal amount of the Securities of each series at the time Outstanding, on
behalf of the Holders of all Securities of such series, to waive compliance by
the Company with certain provisions of the Indenture and certain past defaults
under the Indenture and their consequences. Any such consent or waiver by the
Holder of this Security shall be conclusive and binding upon such Holder and
upon all future Holders of this Security and of any Security issued upon the
registration of transfer hereof or in exchange herefor or in lieu hereof,
whether or not notation of such consent or waiver is made upon this Security.
As set forth in, and subject to, the provisions of the Indenture, no Holder
of any Security of this series will have any right to institute any proceeding
with respect to the Indenture or for any remedy thereunder, unless such Holder
shall have previously given to the Trustee written notice of a continuing Event
of Default with respect to this series, the Holders of not less than 25% in
principal amount of the Outstanding Securities of this series shall have made
written request, and offered reasonable indemnity, to the Trustee to institute
such proceeding as trustee, and the Trustee shall not have received from the
Holders of a majority in principal amount of the Outstanding Securities of this
series a direction inconsistent with such request and shall have failed to
institute such proceeding within 60 days; provided, however, that such
limitations do not apply to a suit instituted by the Holder hereof for the
enforcement of payment of the principal of or interest on this Security on or
after the respective due dates expressed herein.
No reference herein to the Indenture and no provision of this Security or
of the Indenture shall alter or impair the obligation of the Company, which is
absolute and unconditional, to pay the
<PAGE>
principal of and interest on this Security at the times, place and rate, and in
the coin or currency herein, prescribed.
As provided in the Indenture and subject to certain limitations therein set
forth, the transfer of this Security is registrable in the Security Register,
upon surrender of this Security for registration of transfer at the office or
agency of the Company in any place where the principal of and interest on this
Security are payable, duly endorsed by, or accompanied by a written instrument
of transfer in form satisfactory to the Company and the Security Registrar duly
executed by, the Holder hereof or his attorney duly authorized in writing, and
thereupon one or more new Securities of this series and of like tenor, of
authorized denominations and for the same aggregate principal amount, will be
issued to the designated transferee or transferees.
The Securities of this series are issuable only in registered form, without
coupons, in denominations of $1,000 and any integral multiple thereof. As
provided in the Indenture and subject to certain limitations therein set forth,
Securities of this series are exchangeable for a like aggregate principal amount
of Securities of this series and of like tenor of a different authorized
denomination, as requested by the Holder surrendering the same.
No service charge shall be made for any such registration of transfer or
exchange, but the Company may require payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.
Prior to due presentment of this Security for registration of transfer, the
Company, the Trustee and any agent of the Company or the Trustee may treat the
Person in whose name this Security is registered as the owner hereof for all
purposes, whether or not this Security is overdue, and none of the Company, the
Trustee or any agent shall be affected by notice to the contrary.
The Indenture and this Security shall be governed by and construed in
accordance with the laws of the State of New York, without regard to principles
of conflicts of laws.
All terms used in this Security which are defined in the Indenture shall
have the same meanings assigned to them in the Indenture.
