<PAGE>
As filed with the Securities and Exchange Commission on December 20, 1994
REGISTRATION NO. 33-
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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
----------------------
FORM S-3
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
----------------------
CROWN CORK & SEAL COMPANY, INC.
(Exact name of Registrant as specified in its charter)
Pennsylvania 23-1526444
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification Number)
9300 Ashton Road
Philadelphia, PA 19136
(215) 698-5100
(Address, including zip code, and telephone number, including area code, of
Registrant's principal executive offices)
----------------------
RICHARD L. KRZYZANOWSKI, ESQUIRE
EXECUTIVE VICE PRESIDENT,
SECRETARY AND GENERAL COUNSEL
CROWN CORK & SEAL COMPANY, INC.
9300 ASHTON ROAD
PHILADELPHIA, PA 19136
(215) 698-5208
(Name, address, including zip code, and telephone number, including area code,
of agent for service)
-----------------------
COPIES TO:
THOMAS A. RALPH, ESQUIRE ALLAN G. SPERLING, ESQUIRE
WILLIAM G. LAWLOR, ESQUIRE Cleary, Gottlieb, Steen &
Dechert Price & Rhoads Hamilton
4000 Bell Atlantic Tower One Liberty Plaza
1717 Arch Street New York, NY 10006
Philadelphia, PA 19103-2793
-----------------------
Approximate date of commencement of the proposed sale to the public:
From time to time after the effective date of this Registration Statement.
-----------------------
If the only securities being registered on this Form are being offered
pursuant to dividend or interest reinvestment plans, please check the following
box:[ ]
If any of the securities being registered on this Form are to be offered on a
delayed or continuous basis pursuant to Rule 415 under the Securities Act of
1933, other than securities offered only in connection with dividend or interest
reinvestment plans, check the following box:[X]
------------------------
CALCULATION OF REGISTRATION FEE
<TABLE>
<CAPTION>
==================================================================================================================
TITLE OF EACH CLASS OF PROPOSED MAXIMUM PROPOSED MAXIMUM
SECURITIES TO BE AMOUNT TO OFFERING PRICE PER AGGREGATE OFFERING AMOUNT OF
REGISTERED BE UNIT** PRICE** REGISTRATION
REGISTERED* FEE
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<S> <C> <C> <C> <C>
Debt Securities $500,000,000 100% $500,000,000 $172,415.00
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</TABLE>
* Or, if any Debt Securities are issued at original issue discount, such
greater principal amount as shall result in an aggregate initial offering
price of $500,000,000. Any offering of Debt Securities denominated in any
foreign currency or foreign currency unit will be treated as the equivalent
in U.S. dollars based on the exchange rate applicable to the purchase of
such Debt Securities.
** Estimated solely for the purpose of calculating the registration fee.
THE REGISTRANT HEREBY AMENDS THIS REGISTRATION STATEMENT ON SUCH DATE OR
DATES AS MAY BE NECESSARY TO DELAY ITS EFFECTIVE DATE UNTIL THE REGISTRANT SHALL
FILE A FURTHER AMENDMENT WHICH SPECIFICALLY STATES THAT THIS REGISTRATION
STATEMENT SHALL THEREAFTER BECOME EFFECTIVE IN ACCORDANCE WITH SECTION 8(A) OF
THE SECURITIES ACT OF 1933 OR UNTIL THE REGISTRATION STATEMENT SHALL BECOME
EFFECTIVE ON SUCH DATE AS THE COMMISSION, ACTING PURSUANT TO SAID SECTION 8(A),
MAY DETERMINE.
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<PAGE>
INFORMATION CONTAINED HEREIN IS SUBJECT TO COMPLETION OR AMENDMENT. A
REGISTRATION STATEMENT RELATING TO THESE SECURITIES HAS BEEN FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION. THESE SECURITIES MAY NOT BE SOLD NOR MAY
OFFERS TO BUY BE ACCEPTED PRIOR TO THE TIME THE REGISTRATION STATEMENT BECOMES
EFFECTIVE. THIS PROSPECTUS SHALL NOT CONSTITUTE AN OFFER TO SELL OR THE
SOLICITATION OF AN OFFER TO BUY NOR SHALL THERE BE ANY SALE OF THESE SECURITIES
IN ANY STATE IN WHICH SUCH OFFER, SOLICITATION OR SALE WOULD BE UNLAWFUL PRIOR
TO REGISTRATION OR QUALIFICATION UNDER THE SECURITIES LAWS OF ANY SUCH STATE.
SUBJECT TO COMPLETION
DATED DECEMBER 20, 1994
PROSPECTUS
[Logo]
CROWN CORK & SEAL COMPANY, INC.
DEBT SECURITIES
Crown Cork & Seal Company, Inc. (the "Company") may offer and sell from time to
time its debt securities consisting of debentures, notes and/or other unsecured
evidences of indebtedness (the "Debt Securities"), on terms to be determined at
the time of sale, through dealers, underwriters or agents to be designated or
directly to other purchasers, at an aggregate initial offering price not
exceeding U.S. $500,000,000 or its equivalent in another currency or composite
currency. The Debt Securities may be offered as separate series with the same or
various maturities. The specific designation, aggregate principal amount,
denominations, currency of payment, maturity, premium, if any, rate or rates and
times of payment of interest, if any, terms for any redemption at the option of
the Company or the holder, terms for any sinking fund payments, the initial
public offering price, the net proceeds to the Company and any other specific
terms in connection with the offering and sale of the Debt Securities in respect
of which this Prospectus is being delivered are set forth in the accompanying
Prospectus Supplement (the "Prospectus Supplement").
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE
ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS
A CRIMINAL OFFENSE.
The dealer's or other purchaser's purchase price or underwriter's or agent's
commission with respect to any Debt Securities is set forth in, or may be
calculated from, the Prospectus Supplement and the net proceeds to the Company
from such sale will be the purchase price of such Debt Securities in the case of
a dealer or other purchaser or the public offering price less such commission in
the case of an underwriter or agent, and less, in each case, the other
attributable issuance expenses. The aggregate proceeds to the Company from all
the Debt Securities will be the purchase price of Debt Securities sold less the
aggregate of underwriters' and agents' commissions and other expenses of
issuance and distribution. See "Plan of Distribution" for indemnification
arrangements for the dealers, other purchasers, underwriters, and agents.
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The date of this Prospectus is December __, 1994.
<PAGE>
NO DEALER, SALESMAN OR OTHER PERSON HAS BEEN AUTHORIZED TO GIVE ANY
INFORMATION OR TO MAKE ANY REPRESENTATION NOT CONTAINED IN OR INCORPORATED BY
REFERENCE IN THIS PROSPECTUS AND, IF GIVEN OR MADE, SUCH INFORMATION OR
REPRESENTATION MUST NOT BE RELIED UPON AS HAVING BEEN AUTHORIZED BY THE COMPANY
OR ANY UNDERWRITER OR DEALER. THIS PROSPECTUS DOES NOT CONSTITUTE AN OFFER TO
SELL OR A SOLICITATION OF AN OFFER TO BUY ANY OF THE SECURITIES OFFERED HEREBY
IN ANY JURISDICTION TO ANY PERSON TO WHOM IT IS UNLAWFUL TO MAKE SUCH AN OFFER
IN SUCH JURISDICTION. NEITHER THE DELIVERY OF THIS PROSPECTUS NOR ANY SALE MADE
HEREUNDER SHALL, UNDER ANY CIRCUMSTANCES, CREATE ANY IMPLICATION THAT THE
INFORMATION HEREIN IS CORRECT AS OF ANY TIME SUBSEQUENT TO THE DATE HEREOF OR
THAT THERE HAS BEEN NO CHANGE IN THE AFFAIRS OF THE COMPANY SINCE SUCH DATE.
AVAILABLE INFORMATION
The Company is subject to the informational requirements of the Securities
Exchange Act of 1934, as amended (the "Exchange Act"), and in accordance
therewith files reports, proxy statements and other information with the
Securities and Exchange Commission (the "Commission"). Reports, proxy statements
and other information concerning the Company filed with the Commission may be
inspected and copied at the public reference facilities maintained by the
Commission at its office at Room 1024, 450 Fifth Street, N.W., Washington, D.C.
20549, as well as at the Regional Offices of the Commission at Suite 1400,
Northwestern Atrium Center, 500 West Madison Street, Chicago, Illinois 60661 and
13th Floor, 7 World Trade Center, New York, New York 10048. Copies of such
material can be obtained from the Public Reference Section of the Commission at
450 Fifth Street, N.W., Washington, D.C. 20549, at prescribed rates. In
addition, such material may also be inspected at the office of the New York
Stock Exchange, 20 Broad Street, New York, New York 10005, on which the
Company's Common Stock is listed.
The Company has filed a registration statement on Form S-3 (herein,
together with all amendments and exhibits thereto, the "Registration
Statement"), under the Securities Act of 1933, as amended (the "Securities
Act"). This Prospectus does not contain all of the information set forth in the
Registration Statement, certain parts of which are omitted in accordance with
the rules and regulations of the Commission. For further information, reference
is made to the Registration Statement and the exhibits filed as a part thereof.
Statements contained herein concerning any document filed as an exhibit are not
necessarily complete and, in each instance, reference is made to the copy of
such document filed as an exhibit to the Registration Statement. Each such
statement is qualified in its entirety by such reference.
INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE
The following documents, filed with the Commission (File No. 1-2227)
pursuant to the Exchange Act, are hereby incorporated by reference in this
Prospectus: (a) Annual Report on Form 10-K of the Company for the fiscal year
ended December 31, 1993; (b) Quarterly Reports on Form 10-Q of the Company for
the quarters ended March 31, June 30, and September 30, 1994; and (c) the
Company's Current Reports on Form 8-K dated June 15, 1994, June 16, 1994, and
September 14, 1994.
All other documents filed by the Company pursuant to Section 13(a), 13(c),
14 and 15(d) of the Exchange Act subsequent to the date of this Prospectus and
prior to the termination of the offering of the Debt Securities shall be deemed
to be incorporated by reference and to be a part of this Prospectus from the
date of filing of such documents. Any statement contained in a document
incorporated or deemed to be incorporated by reference herein shall be deemed to
be modified or superseded for purposes of this Prospectus to the extent that a
statement contained herein or in any subsequently filed document which also is
or is deemed to be incorporated by reference herein modifies or supersedes such
statement. Any statement so modified or superseded shall not be deemed, except
as so modified or superseded, to constitute a part of this Prospectus.
THE COMPANY HEREBY UNDERTAKES TO PROVIDE WITHOUT CHARGE TO EACH PERSON TO
WHOM A COPY OF THIS PROSPECTUS IS DELIVERED, UPON ORAL OR WRITTEN REQUEST OF ANY
SUCH PERSON, A COPY OF ANY OR ALL OF THE DOCUMENTS INCORPORATED HEREIN BY
REFERENCE, OTHER THAN THE EXHIBITS TO SUCH DOCUMENTS (UNLESS SUCH EXHIBITS ARE
SPECIFICALLY INCORPORATED BY REFERENCE IN SUCH DOCUMENTS). REQUESTS SHOULD BE
DIRECTED TO CROWN CORK & SEAL COMPANY, INC., 9300 ASHTON ROAD, PHILADELPHIA,
PENNSYLVANIA 19136, ATTN: CORPORATE SECRETARY, TELEPHONE (215) 698-5100.
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<PAGE>
THE COMPANY
The Company is a leading worldwide manufacturer of metal and plastic
packaging products. The products include metal cans for beverage, food and
aerosol products, plastic containers for beverage, processed food and other
products, metal crowns (also known as bottle caps), metal and plastic closures
and composite containers. The Company also manufactures filling, packaging and
handling machinery for the bottling industry.
In the United States, the Company is one of the two leading manufacturers
of beverage cans and, including its operations in Canada and Mexico, management
believes the Company is the largest manufacturer of beverage cans in North
America. Based on management estimates and industry sources, the Company is also
among the leading worldwide manufacturers of plastic containers, food cans,
aerosol cans, plastic and metal closures and metal crowns.
The metal packaging businesses are organized into the North American
Division, comprised of the United States, Canada, Mexico and Central America,
and the International Division, which covers the rest of the world. Following
the October 1992 acquisition of CONSTAR International Inc. ("CONSTAR"), the
Company created the Plastics Division, which includes CONSTAR and two plastic
closure businesses. The Company also has a Machinery Division. The Company's
Technical Center, located near Chicago, Illinois, is a premier product
development and research center supporting the packaging businesses worldwide.
Subsidiaries involved in aluminum scrap and used beverage can recycling, coil
coating and shearing, and machine engineering and maintenance support primarily
the North American Division.
* * * * *
The Company was founded in 1892. The principal executive offices are
located at 9300 Ashton Road, Philadelphia, Pennsylvania 19136, and the telephone
number at such address is (215) 698-5100.
USE OF PROCEEDS
Unless otherwise described in a Prospectus Supplement, the net proceeds
from the sale of the Debt Securities will be used for general corporate
purposes, including primarily the repayment of debt.
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RATIO OF EARNINGS TO FIXED CHARGES
The following table sets forth the ratio of earnings to fixed charges for
the Company and its consolidated subsidiaries for the periods shown. The ratios
were derived from the audited consolidated financial statements of the Company
for the years ended December 31, 1989, 1990, 1991, 1992 and 1993 and from the
unaudited consolidated financial statements of the Company for the nine months
ended September 30, 1994.
<TABLE>
<CAPTION>
Nine Months Ended
September 30, Year Ended December 31,
1994 1993 1992 1991 1990 1989
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<S> <C> <C> <C> <C> <C> <C>
Ratio of earnings
to fixed charges..................... 2.7* 4.2 4.3 3.7 3.9 13.5
</TABLE>
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* During the third quarter of 1994, the Company incurred a pre-tax charge of
$114.6 million to reflect the costs associated with the restructuring of its
metal packaging operations in the United States and Canada. Thirteen
facilities were affected by the restructuring, primarily those that produce
three-piece, steel food and aerosol containers. The charge covers the
restructuring of facilities, including applicable severance and related
fixed asset write-downs. If such charge had not occurred, the ratio of
earnings to fixed charges for the nine months ended September 30, 1994 would
have been 4.2.
For purposes of this ratio, "earnings" consist of consolidated pre-tax
income from continuing operations plus fixed charges exclusive of capitalized
interest, plus distributed income from less than 50% owned companies and
amortization of previously capitalized interest. "Fixed charges" consist of
interest, whether expended or capitalized (including amortization of debt
discount), and that portion of rentals that is representative of interest.
DESCRIPTION OF DEBT SECURITIES
The Debt Securities are to be issued under an Indenture, dated as of
December __, 1994 (the "Indenture"), between the Company and Chemical Bank, a
New York banking corporation, as Trustee (the "Trustee"), a copy of which has
been filed with the Commission as an exhibit to the Registration Statement and
is incorporated by reference herein. The following summaries of certain
provisions of the Indenture do not purport to be complete and are subject to,
and are qualified in their entirety by reference to, all provisions of the
Indenture. Capitalized terms are defined in the Indenture unless otherwise
defined herein. Wherever particular provisions or defined terms of the Indenture
are referred to, such provisions or defined terms are incorporated herein by
reference. The following sets forth certain general terms and provisions of the
Debt Securities. Further terms of the Offered Debt Securities are set forth in
the Prospectus Supplement.
GENERAL
The Indenture provides for the issuance, from time to time in one or more
series, of unsecured obligations of the Company which may be debentures, notes
or other evidences of indebtedness ("Debt Securities"). The Indenture does not
limit the amount of Debt Securities that may be authenticated and delivered
thereunder. Each series of Debt Securities may be established in or pursuant to
a resolution of the Company's Board of Directors or in one or more indentures
supplemental to the Indenture. The Indenture does not limit the amount of other
indebtedness or securities that may be issued by the Company. The Debt
Securities will be
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<PAGE>
unsecured obligations of the Company and will rank on a parity with all other
unsecured and unsubordinated indebtedness of the Company.
The Prospectus Supplement describes the following terms of the Offered Debt
Securities: (1) the title of the Offered Debt Securities; (2) any limit on the
aggregate principal amount of the Offered Debt Securities; (3) the date or dates
on which the principal of the Offered Debt Securities is payable; (4) the rate
or rates at which the Offered Debt Securities will bear interest, if any, and
the date from which such interest, if any, will accrue; (5) the dates on which
such interest, if any, will be payable and the Regular Record Dates for such
Interest Payment Dates; (6) the place or places where the principal of (and
premium, if any) and interest, if any, on the Offered Debt Securities shall be
payable and where any of the Offered Debt Securities may be surrendered for
exchange; (7) any mandatory or optional sinking fund or analogous provisions;
(8) the period or periods within which, the price or prices at which and the
terms and conditions upon which the Offered Debt Securities may, pursuant to any
optional or mandatory redemption provisions, be redeemed; (9) the obligation, if
any, of the Company to redeem or purchase Offered Debt Securities pursuant to
any sinking fund or analogous provisions or at the option of a holder thereof
and the period or periods within which, the price or prices at which, the
currency or currency unit in which, and the terms and conditions upon which
Offered Debt Securities shall be redeemed or purchased, in whole or in part,
pursuant to such obligation; (10) if other than denominations of $1,000 and any
integral multiple thereof, the denomination in which the Offered Debt Securities
shall be issuable; (11) if other than the principal amount thereof, the portion
of the principal amount of Offered Debt Securities payable upon declaration of
acceleration of the maturity thereof; (12) any additional events of default or
covenants applicable to the Offered Debt Securities; (13) if other than Dollars,
the currency or currency unit in which payment of the principal of (and premium,
if any) or interest, if any, on the Offered Debt Securities shall be made or in
which the Offered Debt Securities shall be denominated and the particular
provisions applicable thereto; (14) if the principal of (and premium, if any)
and interest, if any, on the Offered Debt Securities are to be payable, at the
election of the Company or a holder thereof, in a currency or currency unit
other than that in which such Offered Debt Securities are denominated or stated
to be payable, the period or periods within which, and the terms and conditions
upon which, such election may be made, and the time and manner of determining
the exchange rate between the currency or currency unit in which such Offered
Debt Securities are denominated or stated to be payable and the currency or
currency unit in which such Offered Debt Securities are to be so payable; (15)
if the amount of payments of principal of (and premium, if any) or interest, if
any, on the Offered Debt Securities may be determined with reference to an index
based on a currency or currency unit other than that in which such Offered Debt
Securities are denominated or stated to be payable or any other index or
formula, the manner in which such amounts shall be determined; (16) the
application, if any, of defeasance terms to the Offered Debt Securities; (17)
whether the Offered Debt Securities shall be issued in whole or in part in the
form of one or more Global Securities and, in such case, the Depositary for such
Global Security or Securities, and whether such Global Security or Securities
shall be temporary or permanent; and whether the Offered Debt Securities shall
be issued in bearer form (including Securities registrable as to principal only)
with or without interest coupons and the exchangeability of such Debt Securities
for Debt Securities in fully registered form; (18) if the Offered Debt
Securities of any series may be converted into or exchanged for any other
securities, the terms and conditions of such conversion or exchange; and (19)
any other terms of the Offered Debt Securities, which terms shall not be
inconsistent with the provisions of the Indenture.
The Debt Securities may be issued in registered form. Debt Securities of a
series may be issued in whole or in part in the form of one or more Global
Securities, as described below under "Global Securities". Unless otherwise
indicated in the Prospectus Supplement, the Debt Securities will be issued only
in fully registered form without coupons and in denominations and currencies as
established by a resolution of the Company's Board of Directors if other than
denominations of $1,000 or any integral multiple thereof. No service charge
will be made for any registration of transfer or exchange or redemption of the
Debt Securities, but the Company may require payment of a sum sufficient to
cover any tax or other governmental charge that may be imposed in connection
therewith. (Sections 3.2 and 3.5).
Debt Securities may be issued as Original Issue Discount Debt Securities
(bearing no interest or interest at a rate which at the time of issuance is
below market rates) to be sold at a substantial discount below their principal
amount. Special federal income tax and other considerations applicable thereto
will be described in the Prospectus Supplement relating thereto.
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<PAGE>
The terms of the Debt Securities and the Indenture do not afford holders of
the Debt Securities protection in the event of a highly leveraged transaction
involving the Company that may adversely affect holders of the Debt Securities.
GLOBAL SECURITIES
The Debt Securities of a series may be issued in whole or in part in the
form of one or more Global Securities that will be deposited with, or on behalf
of, a Depositary identified in the Prospectus Supplement relating to such
series. Global Securities may be issued in either temporary or permanent form.
Except as otherwise set forth below, unless and until it is exchanged for
Securities in definitive form, a Global Security may not be transferred except
as a whole by the Depositary for such Global Security to a nominee of such
Depositary or by a nominee of such Depositary to such Depositary or another
nominee of such Depositary or by such Depositary or any such nominee to a
successor of such Depositary or a nominee of such successor (Sections 3.1 and
3.11).
The specific terms of the depositary arrangement with respect to a series of
Debt Securities will be described in the Prospectus Supplement relating to such
series. The Company anticipates that the following provisions will apply to any
depositary arrangements.
Upon the issuance of a Global Security, the Depositary for such Global
Security or its nominee will credit the accounts of persons held with it with
the respective principal amounts of the Debt Securities represented by such
Global Security. Such accounts shall be designated by the underwriters or agents
with respect to such Debt Securities or by the Company if such Debt Securities
are offered and sold directly by the Company. Ownership of beneficial interests
in a Global Security will be limited to persons that have accounts with the
Depositary for such Global Security or its nominee ("participants") or persons
that may hold interests through participants. Ownership of beneficial interests
in such Global Security will be shown on, and the transfer of that ownership
will be effected only through, records maintained by the Depositary for such
Global Security or by participants or persons that hold through participants.
The laws of some states require that certain purchasers of securities take
physical delivery of such securities in definitive form. Such limits and such
laws may impair the ability to transfer beneficial interests in a Global
Security.
So long as the Depositary for a Global Security, or its nominee, is the
owner of such Global Security, such Depositary or such nominee, as the case may
be, will be considered the sole owner or holder of the Debt Securities
represented by such Global Security for all purposes under the Indenture
governing such Debt Securities. Unless otherwise specified in the Prospectus
Supplement, and except as set forth below, owners of beneficial interests in a
Global Security will not be entitled to have Debt Securities of the series
represented by such Global Security registered in their names, will not receive
or be entitled to receive physical delivery of Debt Securities of such series in
definitive form and will not be considered the owners or holders thereof under
the Indenture governing such Debt Securities.
Payments of principal of (and premium, if any) and interest, if any, on Debt
Securities registered in the name of or held by a Depositary or its nominee will
be made to the Depositary or its nominee, as the case may be, as the registered
owner or the holder of the Global Security representing such Debt Securities.
Neither the Company nor the Trustee for such Debt Securities will have any
responsibility or liability for any aspect of the records relating to or
payments made on account of beneficial ownership interests in a Global Security
for such Debt Securities or for maintaining, supervising or reviewing any
records relating to such beneficial ownership interests.
The Company expects that the Depositary for Debt Securities of a series,
upon receipt of any payment of principal (or premium, if any) or interest, if
any, in respect of a permanent Global Security, will credit immediately
participants' accounts with payments in amounts proportionate to their
respective beneficial interests in the principal amount of such Global Security
as shown on the records of such Depositary. The Company also expects that
payments by participants to owners of beneficial interests in such Global
Security held through such participants will be governed by standing
instructions and customary practices, as is now the case with the securities
held for the accounts of customers in bearer form or registered in "street
name," and will be the responsibility of such participants. Receipt by owners of
beneficial interests in a temporary
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<PAGE>
Global Security of payments in respect of such temporary Global Security may be
subject to restrictions. Any such restrictions will be described in the
Prospectus Supplement relating thereto.
If a Depositary for Debt Securities of a series is at any time unwilling or
unable to continue as Depositary and a successor depositary is not appointed by
the Company, the Company will issue Debt Securities of such series in definitive
form in exchange for the Global Security or Debt Securities representing Debt
Securities of such series. In addition, the Company may at any time and in its
sole discretion determine not to have any Debt Securities of a series
represented by one or more Global Securities and, in such event, will issue Debt
Securities of such series in definitive form in exchange for the Global Security
or Debt Securities representing Debt Securities. Further, if the Company so
specified with respect to the Debt Securities of a series, each Person specified
by the Depositary of the Global Security representing Debt Securities of such
series may, on terms acceptable to the Company and the Depositary for such
Global Security, receive Debt Securities of such series in definitive form. In
any such instance, each Person so specified by the Depositary of the Global
Security will be entitled to physical delivery in definitive form of Debt
Securities of the series represented by such Global Security equal in principal
amount to such Person's beneficial interest in the Global Security (Sections 3.1
and 3.11).
DEFINITIONS
"Attributable Debt" with respect to any sale leaseback transaction that is
subject to the restrictions described under "Certain Covenants of the Company--
Limitation on Sale and Leaseback" below means the lesser of (i) the total net
amount of rent required to be paid during the remaining base term of the related
lease or until the earliest date on which the lessee may terminate such lease
upon payment of a penalty or a lump-sum termination payment (in which case the
total net rent shall include such penalty or termination payment), discounted at
the weighted average interest rate borne by the Outstanding Securities (as
defined in the Indenture) under the Indenture, compounded semi-annually, or (ii)
the sale price of the property so leased multiplied by a fraction the numerator
of which is the remaining base term of the related lease (expressed in months)
and the denominator of which is the base term of such lease (expressed in
months).
"Consolidated Net Tangible Assets" means the aggregate amount of assets
(less applicable reserves and other properly deductible items) after deducting
therefrom (a) all current liabilities and (b) all goodwill, tradenames,
trademarks, patents, unamortized debt discount and expense (to the extent
included in said aggregate amount of assets) and other like intangibles, all as
set forth on the most recent consolidated balance sheet of the Company and its
consolidated Subsidiaries and computed in accordance with generally accepted
accounting principles.
"Principal Property" means any single manufacturing or processing plant or
warehouse (excluding any equipment or personalty located therein) located in the
United States, other than any such plant or warehouse or portion thereof that
the Board of Directors reasonably determines is not of material importance to
the business conducted by the Company and its Subsidiaries as an entirety.
"Restricted Subsidiary" means any Subsidiary that owns, operates or leases
one or more Principal Properties.
"Subsidiary" means each corporation of which the Company, or the Company and
one or more Subsidiaries, or any one or more Subsidiaries, directly or
indirectly own securities entitling the holders thereof to elect a majority of
the directors, either at all times or so long as there is no default or
contingency that permits the holders of any other class or classes of securities
to vote for the election of one or more directors.
CERTAIN COVENANTS OF THE COMPANY
Limitation on Liens. Except as described below under "Exempted
Indebtedness", the Company covenants that it will not, nor will it permit any
Restricted Subsidiary to, create, assume or suffer to exist any mortgage,
security interest, pledge or lien ("Lien") of or upon any Principal Property or
any shares of capital stock or evidences of indebtedness for borrowed money
issued by any Restricted Subsidiary and owned by the Company or any Restricted
Subsidiary, without providing that the Debt Securities shall be secured equally
and ratably
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<PAGE>
by such Lien with any and all other indebtedness or obligations thereby secured,
so long as such indebtedness or obligations shall be so secured. This
restriction does not apply to: (i) Liens that exist on the date of the
Indenture; (ii) Liens on property or shares of capital stock or evidences of
indebtedness of any corporation existing at the time such corporation becomes a
Subsidiary; (iii) Liens in favor of the Company or any Subsidiary; (iv) Liens in
favor of governmental bodies to secure progress, advance or other payments
pursuant to contract or statute or indebtedness incurred to finance all or part
of construction of or improvements to property subject to such Liens; (v) Liens
on (a) property, shares of capital stock or evidences of indebtedness for
borrowed money existing at the time of acquisition thereof (including
acquisition through merger or consolidation), and construction and improvement
Liens that are entered into within one year from the date of such construction
or improvement, provided that in the case of construction or improvement the
Lien shall not apply to any property theretofore owned by the Company or any
Restricted Subsidiary except substantially unimproved real property on which the
property so constructed or the improvement is located and (b) for the
acquisition of any Principal Property which Liens are created within 180 days
after the completion of such acquisition to secure or provide for the payment of
the purchase price of the Principal Property acquired, provided that any such
Liens do not extend to any other property of the Company or any of its
Subsidiaries (whether or not such property is then owned or thereafter
acquired); (vi) mechanics', landlords' and similar Liens arising in the ordinary
course of business in respect of obligations not due or being contested in good
faith; (vii) Liens for taxes, assessments, or governmental charges or levies
that are not delinquent or are being contested in good faith; (viii) Liens
arising from any legal proceedings that are being contested in good faith; (ix)
any Liens that (a) are incidental to the ordinary conduct of its business or the
ownership of its properties and assets, including Liens incurred in connection
with workmen's compensation, unemployment insurance or other forms of
governmental insurance or benefits, or to secure performance of tenders,
statutory obligations, leases and contracts, (b) were not incurred in connection
with the borrowing of money or the obtaining of advances or credit and (c) do
not in the aggregate materially detract from the value of the property of the
Company or any Subsidiary or materially impair the use thereof in the operation
of its business; (x) Liens securing industrial development or pollution control
bonds; and (xi) Liens for the sole purpose of extending, renewing or replacing
(or successively extending, renewing or replacing) in whole or in part any of
the foregoing. (Section 10.7).
Limitation on Sale and Leaseback. Except as described below under "Exempted
Indebtedness", sale and leaseback transactions by the Company or any Restricted
Subsidiary (except for transactions involving temporary leases for a term of
three years or less) of any Principal Property are prohibited unless either:
(a) the Company or such Restricted Subsidiary would be entitled, pursuant to the
covenant described under Limitations on Liens above, to incur a Lien on the
Principal Property to be leased without equally and ratably securing the Debt
Securities or (b) the net proceeds of such sale are at least equal to the fair
value of the Principal Property sold and the Company will apply an amount equal
to the net proceeds of such sale to (A) the retirement of Debt Securities or
Funded Debt (as defined in the Indenture) of the Company or a Restricted
Subsidiary ranking prior to or on a parity with the Debt Securities or (B) the
acquisition, construction or improvement of a Principal Property within 120 days
of the effective date of any such arrangement. (Section 10.8).
Exempted Indebtedness. Notwithstanding the limitations on Liens and sale and
leaseback transactions outlined above, the Company or any Restricted Subsidiary
may create, assume or suffer to exist Liens or enter into sale and leaseback
transactions not otherwise permitted as described above provided that at the
time of such event, and after giving effect thereto, the sum of outstanding
indebtedness for borrowed money incurred after the date of the Indenture and
secured by such Liens plus the Attributable Debt in respect of such sale and
leaseback transactions entered into after the date of the Indenture does not
exceed 10% of Consolidated Net Tangible Assets properly appearing on a
consolidated balance sheet of the Company. (Sections 1.1, 10.7(b) and 10.8(b)).
Merger and Consolidation. The Company covenants that it will not merge,
consolidate or convey, transfer or lease its properties and assets substantially
as an entirety and the Company will not permit any Person (as defined in the
Indenture) to consolidate with or merge into the Company unless, among other
things: (a) the successor Person is the Company or other corporation organized
and existing under the laws of the United States, any state thereof or the
District of Columbia that assumes the Company's obligations on the Debt
Securities and under the Indenture, (b) immediately after giving effect to such
transaction, the Company or
-8-
<PAGE>
the successor Person would not be in default under the Indenture and (c) if, as
a result of any such consolidation or merger or such conveyance, transfer or
lease, any Principal Property of the Company would become subject to a lien that
would not be permitted by the Indenture, the Company or such successor Person
takes such steps as are necessary effectively to secure the Debt Securities
equally and ratably with (or, at the option of the Company, prior to) all
indebtedness secured thereby. (Section 8.1).
EVENTS OF DEFAULT
An Event of Default with respect to any series of Debt Securities is defined
in the Indenture as being: (a) default for 30 days in the payment of any
installment of interest on any Debt Securities of such series; (b) default in
the payment of any principal of (or premium, if any, on) any Debt Securities of
such series; (c) default in the deposit of any sinking fund payments, when and
as due with respect to such series; (d) default by the Company in the
performance of any other covenants or agreements in the Indenture contained
therein for the benefit of any Debt Securities of such series which shall not
have been remedied for a period of 60 days after written notice of such default
to the Company by the Trustee or to the Company and the Trustee by the holders
of at least 25% in aggregate principal amount of the Debt Securities of such
series; (e) certain events of bankruptcy, insolvency or reorganization of the
Company; or (f) any other event of default provided with respect to Debt
Securities of such series (as described in the Prospectus Supplement with
respect to such series of Debt Securities). (Section 5.1).
The Indenture provides that if an Event of Default shall have occurred and
be continuing, either the Trustee or the holders of not less than 25% in
principal amount of the Debt Securities of such series may declare the principal
of all the Debt Securities of such series, together with any accrued interest,
to be due and payable immediately. If an Event of Default under clause (e) above
shall have occurred and be continuing, then the principal of all the Debt
Securities of such series, together with any accrued interest, will be due and
payable immediately without any declaration or other act on the part of the
Trustee or any holder of Debt Securities of such series. Upon certain conditions
such declaration (including a declaration caused by a default in the payment of
principal or interest, the payment for which has subsequently been provided) may
be annulled by the holders of a majority in principal amount of the Debt
Securities of a series. In addition, past defaults may be waived by the holders
of a majority in principal amount of the Debt Securities of such series, except
a default in the payment of principal of (or premium, if any, on) or interest on
any Debt Securities of a series or in respect of a covenant or provision of the
Indenture which cannot be modified or amended without the approval of the holder
of each Debt Security of a series. (Sections 5.2 and 5.13).
The Indenture contains a provision entitling the Trustee, subject to the
duty of the Trustee during default to act with the required standard of care, to
be indemnified by the holders of Debt Securities issued thereunder before
proceeding to exercise any right or power under the Indenture at the request of
the holders of such Debt Securities. (Section 6.3). The Indenture also provides
that the holders of a majority in principal amount of the Outstanding Securities
of all series issued thereunder and affected (each series voting as a separate
class) may direct the time, method and place of conducting any proceeding for
any remedy available to the Trustee, or exercising any trust or power conferred
on the Trustee, with respect to the Debt Securities of such series. (Section
5.12).
The Indenture contains a covenant that the Company will file annually with
the Trustee a certificate as to the absence of any default or specifying any
default that exists. (Section 10.9).
SATISFACTION AND DISCHARGE
The Indenture will cease to be of further effect (except as to, among other
things, surviving rights of registration of transfer or exchange of Debt
Securities, as expressly provided for in the Indenture) as to all Debt
Securities when: (i) either (a) all Debt Securities theretofore authenticated
and delivered (except, among other things, lost, stolen or destroyed Debt
Securities that have been replaced or paid) have been delivered to the Trustee
for cancellation or (b) with respect to all Debt Securities not theretofore
delivered to the Trustee for cancellation, the Company has deposited or caused
to be deposited with the Trustee funds or Government Obligations (as defined in
the Indenture), or any combination thereof, in an amount sufficient to pay and
discharge the entire indebtedness on the Debt Securities not theretofore
delivered to the Trustee
-9-
<PAGE>
for cancellation, for unpaid principal and interest to maturity; (ii) the
Company has paid all other sums payable by it under the Indenture; (iii) the
Company has delivered to the Trustee an officers' certificate and an opinion of
counsel each stating that all conditions precedent under the Indenture to the
satisfaction and discharge of the Indenture have been complied with; and (iv) if
the Debt Securities are not due and payable within one year of the date of such
deposit, the Company has delivered to the Trustee an opinion of counsel to the
effect that the holders of the Debt Securities will not recognize income, gain
or loss for federal income tax purposes as a result of such deposit, defeasance
and discharge and will be subject to federal income tax on the same amount and
in the same manner and at the same times, as would have been the case if such
deposit, defeasance and discharge had not occurred. (Article IV).
COVENANT DEFEASANCE
If the terms of the Debt Securities of any series so provide, the Company
need not comply with certain restrictive covenants of the Indenture (including
those described under "Certain Covenants of the Company" above) if: (i) the
Company deposits in trust with the Trustee money or Government Obligations (as
defined in the Indenture), which through the payment of interest thereon and
principal thereof in accordance with their terms, will provide money, in an
amount determined in accordance with the Indenture sufficient to pay all the
principal of (and premium, if any, on) and interest on the Debt Securities of
such series when due; (ii) such deposit will not result in a violation or breach
of the Indenture or any other agreement or instrument by which the Company is
bound; (iii) no Event of Default shall have occurred or be continuing on the
date of such deposit or, in the case of an Event of Default by reason of
bankruptcy, insolvency or reorganization of the Company, on the 91st day after
such date; (iv) the Company delivers to the Trustee an Officers' Certificate (as
defined in the Indenture) and an Opinion of Counsel each stating that all
conditions precedent to defeasance have been satisfied; and (v) the Company
delivers to the Trustee an opinion of counsel to the effect that the holders of
the Debt Securities of such series will not recognize income, gain or loss for
federal income tax purposes as a result of such deposit and defeasance and will
be subject to federal income tax on the same amount and in the same manner and
at the same times, as would have been the case if such deposit and defeasance
had not occurred. (Section 10.11).
MODIFICATION AND WAIVER
Modifications and amendments of the Indenture may be made by the Company and
the Trustee with the consent of the holders of not less than a majority in
aggregate principal amount of the outstanding Debt Securities of each series
issued under the Indenture; provided, however, that no such modification or
amendment may, without the consent of the holder of each Debt Security, (i)
change the stated maturity of the principal of, or any installment of interest
on, any Debt Security or reduce the principal amount thereof or the rate of
interest thereon or any premium payable upon the redemption thereof, or change
the coin or currency in which any Debt Security or the interest thereon is
payable, or impair the right to institute suit for the enforcement of any such
payment after the stated maturity thereof; (ii) reduce the percentage in
principal amount of outstanding Debt Securities of a series necessary to waive
compliance with certain provisions of the Indenture or to waive certain defaults
or (iii) modify any of the provisions relating to supplemental indentures
requiring the consent of holders or relating to the waiver of past defaults or
relating to the waiver of certain covenants, except to increase the percentage
of outstanding Debt Securities of a series required for such actions or to
provide that certain other provisions of the Indenture cannot be modified or
waived without the consent of the holder of each Debt Security. (Section 9.2).
CONCERNING THE TRUSTEE
The Company maintains banking relationships in the ordinary course of its
business with Chemical Bank. Chemical Bank is a participating lender pursuant
to the Company's revolving credit facility. Chemical Bank also acts as the
trustee under the Indenture dated April 1, 1993 between the Company and Chemical
Bank relating to the Company's 5-7/8% Notes Due 1998, its 7% Notes Due 1999, its
6-3/4% Notes Due 2003 and its 8% Debentures Due 2023.
-10-
<PAGE>
CERTAIN PENNSYLVANIA TAXES
Debt Securities held by or for certain persons, principally individuals and
partnerships resident in Pennsylvania, are subject to the Pennsylvania Corporate
Loans Tax, the annual rate of which is currently $4 per $1,000 principal amount
of the debt, and this tax will be withheld by the Company from interest paid to
such persons. Persons resident in Pennsylvania holding Debt Securities for the
benefit of nonresidents should consult their tax advisors regarding the
applicability of the Pennsylvania Corporate Loans Tax.
As a result of the payment of the Corporate Loans Tax, the Debt Securities
will not be subject to any existing Pennsylvania (County) personal property
taxes.
PLAN OF DISTRIBUTION
The Company may sell the Debt Securities (i) through underwriters or
dealers; (ii) through agents; (iii) directly to one or more institutional
purchasers; or (iv) through a combination of any such methods of sale. The
Prospectus Supplement with respect to the Debt Securities offered thereby will
set forth the terms of the offering of such Debt Securities, including the name
or names of any underwriters, dealers or agents, the purchase price of such Debt
Securities and the proceeds to the Company from such sale, any underwriting
discounts and other items constituting compensation to underwriters, dealers or
agents, any initial public offering price, any discounts or concessions allowed
or reallowed or paid by underwriters or dealers to other dealers and any
securities exchanges on which such Debt Securities may be listed. Only
underwriters so named in the Prospectus Supplement are deemed to be underwriters
in connection with the Debt Securities offered thereby.
If underwriters or dealers are used in the sale, the Debt Securities will be
acquired by the underwriters or dealers for their own account and may be resold
from time to time in one or more transactions, including negotiated
transactions, at a fixed public offering price or at varying prices determined
at the time of sale. The Debt Securities may be offered to the public either
through underwriting syndicates represented by one or more managing underwriters
or directly by one or more of such firms. Unless otherwise set forth in the
Prospectus Supplement, the obligations of the underwriters to purchase such Debt
Securities will be subject to certain conditions precedent, and the underwriters
will be obligated to purchase all of the Debt Securities offered by the
Prospectus Supplement relating to such series if any are purchased. Any initial
public offering and any discounts or concessions allowed or reallowed or paid to
dealers may be changed from time to time.
The Debt Securities may be sold directly by the Company or through agents
designated by the Company from time to time. Any agent involved in the offering
and sale of the Debt Securities in respect of which this Prospectus is delivered
will be named, and any commissions payable by the Company to such agent (or the
method by which such commissions can be determined) will be set forth, in the
Prospectus Supplement. Unless otherwise indicated in the Prospectus Supplement,
any such agent will be acting on a best efforts basis for the period of its
appointment.
If so indicated in the Prospectus Supplement, the Company will authorize
underwriters, dealers or other persons acting as the Company's agents to solicit
offers by certain specified institutions to purchase Debt Securities from the
Company at the public offering price set forth in the Prospectus Supplement
pursuant to contracts providing for payment and delivery on a specified date in
the future. Institutional investors to which such offers may be made, when
authorized, include commercial and savings banks, insurance companies, pension
funds, investment companies, educational and charitable institutions and such
other institutions as may be approved by the Company. The obligations of any
such purchasers pursuant to such delayed delivery and payment arrangements will
not be subject to any conditions except that such purchase shall not at the time
of delivery be prohibited under the laws of any jurisdiction to which such
purchaser is subject. The Prospectus Supplement will set forth the commission
payable for solicitation of such contracts. The underwriters and other persons
soliciting such contracts will have no responsibility for the validity or
performance of any such contracts.
-11-
<PAGE>
Each underwriter, dealer and agent participating in the distribution of any
Debt Securities that are issuable as Bearer Securities will agree that it will
not offer, sell or deliver, directly or indirectly, Bearer Securities in the
United States or to United States persons (other than qualifying financial
institutions) in connection with the original issuance of such Debt Securities.
Underwriters, dealers and agents may be entitled under agreements entered
into with the Company to indemnification by the Company against certain civil
liabilities, including liabilities under the Securities Act, or to contribution
by the Company with respect to payments they may be required to make in respect
thereof. Underwriters, dealers and agents may be customers of, engage in
transactions with, or perform services for the Company in the ordinary course of
business.
Each series of Debt Securities will be a new issue of securities with no
established trading market. In the event that Debt Securities of a series
offered hereunder are not listed on a national securities exchange, certain
broker-dealers may make a market in the Debt Securities, but will not be
obligated to do so and may discontinue any market making at any time without
notice. No assurance can be given that any broker-dealer will make a market in
the Debt Securities of any series or as to the liquidity of the trading market
for the Debt Securities.
LEGAL MATTERS
The validity of the Debt Securities and certain other legal matters will be
passed upon for the Company by Richard L. Krzyzanowski, Executive Vice
President, Secretary and General Counsel of the Company, and Dechert Price &
Rhoads, Philadelphia, Pennsylvania. Certain legal matters will be passed on for
any underwriter or agent by Cleary, Gottlieb, Steen & Hamilton, New York, New
York. Cleary, Gottlieb, Steen & Hamilton may rely, as to matters of Pennsylvania
law, on the opinion of Dechert Price & Rhoads. Mr. Krzyzanowski is a full-time
employee of the Company and, as of February 24, 1994, owned .16% of the
Company's Common Stock, held options for shares of the Company's Common Stock
and participated in the Company's retirement and 401(k) plans. Chester C.
Hilinski, of counsel to Dechert Price & Rhoads, is a Director of the Company
and, as of February 24, 1994, owned .02% of the Company's Common Stock.
EXPERTS
The financial statements incorporated in this Prospectus by reference to the
Annual Report on Form 10-K for the year ended December 31, 1993, have been so
incorporated in reliance on the report of Price Waterhouse LLP, independent
accountants, given on the authority of said firm as experts in auditing and
accounting.
-12-
<PAGE>
PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
ITEM 14. OTHER EXPENSES OF ISSUANCE AND DISTRIBUTION
The following table sets forth the estimated expenses of issuance and
distribution other than underwriting discounts and commissions:
<TABLE>
<S> <C>
SEC Registration Fee............................... $ 172,000
Rating Agencies Fees............................... 150,000
Trustee's Fees..................................... 10,000
Printing and Engraving Expenses.................... 40,000
Legal Fees and Expenses............................ 75,000
Accountant's Fees and Expenses..................... 20,000
Blue Sky Fees and Expenses......................... 25,000
Miscellaneous...................................... 8,000
---------
Total.......................................... $ 500,000
=========
</TABLE>
ITEM 15. INDEMNIFICATION OF DIRECTORS AND OFFICERS
The Company is a Pennsylvania corporation. The Pennsylvania Business
Corporation Law (the "PBCL") provides for permissive and mandatory
indemnification by the Company of its representatives (including Directors and
Officers), as well as for permissive advancement of expenses, in certain
circumstances involving third party and derivative actions. In addition, Article
IV of the Company's By-Laws provides for indemnification of Directors and
Officers to the fullest extent permitted by the PBCL for reasonable
liabilities, losses and expenses (including amounts paid in the settlement of
actions). Furthermore, under Section 2 of Article IV of the Company's Bylaws,
any Director or Officer of the Company is entitled to reimbursement for expenses
incurred in defending an action if the Director or Officer undertakes to repay
such amounts if it is determined that such reimbursement was unauthorized.
Additionally, Section 12 of Article II of the Company's Bylaws limits
Directors' personal liability for monetary damages for any action taken, or any
failure to take any action, unless (a) he has breached or failed to perform the
duties of his office under the PBCL's standard of care and justifiable reliance
provisions and (b) the breach or failure to perform constitutes self-dealing,
wilful misconduct or recklessness. However, these provisions do not apply to
the responsibility or liability of a Director pursuant to any criminal statute
or for the payment of taxes pursuant to local, state or federal law.
Reference is made to the form of Underwriting Agreement filed as Exhibit
1.1 to this Registration Statement for a description of the indemnification
arrangements expected to be provided.
The foregoing summaries are necessarily subject to the complete text of the
statute, Certificate of Incorporation, Bylaws and agreements referred to above
and are qualified in their entirety by reference thereto.
ITEM 16. EXHIBITS
<TABLE>
<CAPTION>
Exhibit
Number Exhibit
- ------ -------
<S> <C>
1.1 Form of Underwriting Agreement
4.1 Form of Indenture, including forms of Debt Securities
5.1 Opinion and Consent of Dechert Price & Rhoads
12.1 Computation of ratio of earnings to fixed charges
23.1 Consent of Price Waterhouse LLP
23.2 Consent of Dechert Price & Rhoads (included in Exhibit 5.1)
24.1 Powers of Attorney
25.1 Form T-1 Statement of Eligibility and Qualification of Chemical
Bank, as Trustee, under the Trust Indenture Act of 1939, as amended
</TABLE>
II-1
<PAGE>
ITEM 17. UNDERTAKINGS
A. RULE 415 OFFERING. The undersigned Registrant hereby undertakes:
(1) To file, during any period in which offers or sales are being
made, a post-effective amendment to this registration statement;
(i) To include any prospectus required by Section 10(a)(3)
of the Securities Act of 1933;
(ii) To reflect in the prospectus any facts or events arising
after the effective date of the registration statement (or the most recent post-
effective amendment thereof) which, individually or in the aggregate, represent
a fundamental change in the information set forth in the registration statement;
(iii) To include any material information with respect to the
plan of distribution not previously disclosed in the registration statement or
any material change to such information in the registration statement;
provided, however, that paragraphs (1)(i) and (1)(ii) do not apply if the
registration statement is on Form S-3 or Form S-8, and the information required
to be included in a post-effective amendment by those paragraphs is contained in
periodic reports filed by the Registrant pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934 that are incorporated by reference in the
registration statement.
(2) That, for the purpose of determining any liability under the
Securities Act of 1933, each such post-effective amendment shall be deemed to be
a new registration statement relating to the securities offered therein, and the
offering of such securities at that time shall be deemed to be the initial bona
fide offering thereof.
(3) To remove from registration by means of a post-effective
amendment any of the securities being registered which remain unsold at the
termination of the offering.
B. FILINGS INCORPORATING SUBSEQUENT EXCHANGE ACT DOCUMENTS BY
REFERENCE. The undersigned Registrant hereby undertakes that, for purposes of
determining any liability under the Securities Act of 1933, each filing of the
Registrant's annual report pursuant to Section 13(a) or Section 15(d) of the
Securities Exchange Act of 1934 (and, where applicable, each filing of an
employee benefit plan's annual report pursuant to Section 15(d) of the
Securities Exchange Act of 1934) that is incorporated by reference in the
registration statement shall be deemed to be a new registration statement
relating to the securities offered therein, and the offering of such securities
at that time shall be deemed to be the initial bona fide offering thereof.
C. INDEMNIFICATION. Insofar as indemnification for liabilities arising
under the Securities Act of 1933 may be permitted to directors, officers and
controlling persons of the Registrant pursuant to the foregoing provisions
described in Item 15 above, the Registrant has been informed that in the opinion
of the Commission such indemnification is against public policy as expressed in
the Securities Act of 1933 and is, therefore, unenforceable. In the event that a
claim for indemnification against such liabilities (other than the payment by
the Registrant of expenses incurred or paid by a director, officer, or
controlling person of the Registrant in the successful defense of any action,
suit or proceeding) is asserted by such director, officer or controlling person
in connection with the securities being registered, the Registrant will, unless
in the opinion of its counsel the matter has been settled by controlling
precedent, submit to a court of appropriate jurisdiction the question whether
such indemnification by it is against public policy as expressed in the
Securities Act of 1933 and will be governed by the final adjudication of such
issue.
II-2
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the Registrant
certifies that it has reasonable grounds to believe that it meets all of the
requirements for filing on Form S-3 and has duly caused this registration
statement to be signed on its behalf by the undersigned, thereunto duly
authorized, in the City of Philadelphia, Commonwealth of Pennsylvania, on
December 20, 1994.
CROWN CORK & SEAL COMPANY, INC.
By: /s/ WILLIAM J. AVERY
------------------------------
William J. Avery
Chairman of the Board,
President and Chief Executive Officer
Pursuant to the requirements of the Securities Act of 1933, this
registration statement has been signed by the following persons in the
capacities and on the dates indicated.
Signatures Title Date
---------- ----- ----
/s/ WILLIAM J. AVERY Chairman of the Board, December 20, 1994
------------------------- President and
William J. Avery Chief Executive Officer
(Principal Executive
Officer)
/s/ ALAN W. RUTHERFORD Executive Vice President, December 20, 1994
--------------------------- Chief Financial Officer
Alan W. Rutherford and Director
(Principal Financial
Officer)
/s/ TIMOTHY J. DONAHUE Financial Controller December 20, 1994
--------------------------- (Principal Accounting
Timothy J. Donahue Officer)
/s/ HENRY E. BUTWEL Director December 20, 1994
---------------------------
Henry E. Butwel
/s/ CHARLES F. CASEY Director December 20, 1994
---------------------------
Charles F. Casey
/s/ FRANCIS X. DALTON Director December 20, 1994
---------------------------
Francis X. Dalton
II-3
<PAGE>
/s/ FRANCIS J. DUNLEAVY Director December 20, 1994
---------------------------
Francis J. Dunleavy
/s/ CHESTER C. HILINSKI Director December 20, 1994
---------------------------
Chester C. Hilinski
/s/ RICHARD L. KRZYZANOWSKI Director December 20, 1994
-----------------------------
Richard L. Krzyzanowski
/s/ JOSEPHINE C. MANDEVILLE Director December 20, 1994
------------------------------
Josephine C. Mandeville
/s/ OWEN A. MANDEVILLE, JR. Director December 20, 1994
-----------------------------
Owen A. Mandeville, Jr.
/s/ MICHAEL J. MCKENNA Director December 20, 1994
--------------------------
Michael J. McKenna
/s/ J. DOUGLAS SCOTT Director December 20, 1994
--------------------------
J. Douglass Scott
/s/ ROBERT J. SIEBERT Director December 20, 1994
--------------------------
Robert J. Siebert
-------------------------- Director December 20, 1994
Harold A. Sorgenti
/s/ EDWARD P. STUART Director December 20, 1994
----------------------------
Edward P. Stuart
II-4
<PAGE>
INDEX TO EXHIBITS
<TABLE>
<CAPTION>
Exhibit Sequentially
Number Description Numbered Page
- ------- ----------- -------------
<S> <C> <C>
1.1 Form of Underwriting Agreement .....................................
4.1 Form of Indenture, including forms of Debt Securities ..............
5.1 Opinion and Consent of Dechert Price & Rhoads ......................
12.1 Computation of ratio of earnings to fixed charges ..................
23.1 Consent of Price Waterhouse LLP ....................................
23.2 Consent of Dechert Price & Rhoads (included in Exhibit 5.1)
24.1 Powers of Attorney .................................................
25.1 Form T-1 Statement of Eligibility and Qualification of
Chemical Bank, as Trustee, under the Trust Indenture Act
of 1939, as amended ................................................
</TABLE>
<PAGE>
CROWN CORK & SEAL COMPANY, INC.
Debt Securities
UNDERWRITING AGREEMENT
----------------------
1. Introductory. Crown Cork & Seal Company, Inc., a Pennsylvania
------------
corporation (the "Company"), proposes to issue and sell from time to time
certain of its debt securities registered under the registration statement
referred to in Section 2(a) (the "Registered Securities"). The Registered
Securities will be issued under an indenture, dated as of December __, 1994 (the
"Indenture"), between the Company and Chemical Bank, as Trustee, in one or more
series, which series may vary as to interest rates, maturities, currency of
denomination, redemption provisions, selling prices and other terms, with all
such terms for any particular series of the Registered Securities being
determined at the time of sale. Particular series of the Registered Securities
will be sold pursuant to a Terms Agreement referred to in Section 3, for resale
in accordance with terms of offering determined at the time of sale.
The Registered Securities involved in any such offering are
hereinafter referred to as the "Securities". The firm or firms which agree to
purchase the Securities are hereinafter referred to as the "Underwriters" of
such Securities, and the representative or representatives of the Underwriters,
if any, specified in a Terms Agreement referred to in Section 3 are hereinafter
referred to as the "Representatives"; provided, however, that if the Terms
Agreement does not specify any representative of the Underwriter, the term
"Representatives", as used in this Agreement (other than in Section 2(b), 5(c)
and 6 and the second sentence of Section 3), shall mean the Underwriters.
2. Representations and Warranties of the Company. The Company
---------------------------------------------
represents and warrants to, and agrees with, each Underwriter that:
(a) The Company meets the requirements for the use of Form S-3 under
the Securities Act of 1933, as amended (the "Act") and a registration
statement (No. 33-56252) on such form, including a prospectus, relating to
the Registered Securities has been filed with the Securities and Exchange
Commission (the "Commission") and has become effective. Such registration
statement, as amended at the time of any Terms Agreement referred to in
Section 3, is hereinafter referred to as the "Registration Statement", and
the prospectus included in such Registration Statement, as supplemented as
contemplated by Section 3 to reflect the terms of the Securities and the
terms of offering thereof, as first filed with the Commission pursuant to
and in accordance with Rule
1
<PAGE>
424(b) ("Rule 424(b)") under the Act, including all material incorporated
by reference therein, is hereinafter referred to as the "Prospectus".
(b) On the effective date of the registration statement relating to
the Registered Securities, such registration statement conformed in all
material respects to the requirements of the Act, the Trust Indenture Act
of 1939, as amended (the "Trust Indenture Act"), and the rules and
regulations of the Commission thereunder (the "Rules and Regulations"), as
amended and did 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, and on the date of each Terms
Agreement referred to in Section 3, the Registration Statement and the
Prospectus will conform in all material respects to the requirements of the
Act, the Trust Indenture Act and the Rules and Regulations, and neither of
such documents will include any untrue statement of a material fact or omit
to state any material fact required to be stated therein or necessary to
make the statements therein not misleading, except that the foregoing does
not apply to statements in or omissions from any of such documents based
upon written information furnished to the Company by any Underwriter
through the Representatives, if any, specifically for use therein.
3. Purchase and Offering of Securities. The obligation of the
-----------------------------------
Underwriters to purchase the Securities will be evidenced by an exchange of
telegraphic or other written communications (the "Terms Agreement") at the time
the Company determines to sell the Securities. The Terms Agreement will
incorporate by reference the provisions of this Agreement, except as otherwise
provided therein, and will specify the firm or firms which will be Underwriters,
the names of any Representatives, the principal amount to be purchased by each
Underwriter, the purchase price to be paid by the Underwriters and the terms of
the Securities not already specified in the Indenture, including, but not
limited to, interest rate, maturity, currency of denomination, and redemption
provisions and any sinking fund requirements and whether any of the Securities
may be sold to institutional investors pursuant to Delayed Delivery Contracts
(as defined below). The Terms Agreement will also specify the time and date of
delivery and payment (such time and date, or such other time not later than
seven full business days thereafter as the Representatives and the Company agree
as the time for payment and delivery, being herein and in the Terms Agreement
referred to as the "Closing Date"), the place of delivery and payment and any
details of the terms of offering that should be reflected in the prospectus
supplement relating to the offering of the Securities. The obligations of the
Underwriters to purchase the Securities will be several and not joint. It is
understood that the Underwriters propose to offer the Securities for sale as
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set forth in the Prospectus. Unless otherwise provided in the Terms Agreement,
the Securities delivered to the Underwriters on the Closing Date will be in
definitive fully registered form, in such denominations and registered in such
names as the Underwriters may request.
If the Terms Agreement provides for sale of Securities pursuant to
delayed delivery contracts, the Company authorizes the Underwriters to solicit
offers to purchase Securities pursuant to delayed delivery contracts
substantially in the form of Annex 1 attached hereto ("Delayed Delivery
Contracts") with such changes therein as the Company may authorize or approve.
Delayed Delivery Contracts are to be with institutional investors including
commercial and savings banks, insurance companies, pension funds, investment
companies and educational and charitable institutions. On the Closing Date the
Company will pay, as compensation, to the Representatives for the accounts of
the Underwriters, the fee set forth in such Terms Agreement in respect of the
principal amount of Securities to be sold pursuant to Delayed Delivery Contracts
(the "Contract Securities"). The Underwriters will not have any responsibility
in respect of the validity or the performance of Delayed Delivery Contracts. If
the Company executes and delivers Delayed Delivery Contracts, the Contract
Securities will be deducted from the Securities to be purchased by the several
Underwriters and the aggregate principal amount of Securities to be purchased by
each Underwriter will be reduced pro rata in proportion to the principal amount
of Securities set forth opposite each Underwriter's name in such Terms
Agreement, except to the extent that the Representatives determine that such
reduction shall be otherwise than pro rata and so advise the Company. The
Company will advise the Representative not later than the business day prior to
the Closing Date of the principal amount of Contract Securities.
4. Certain Agreements of the Company. The Company agrees with the
---------------------------------
several Underwriters that it will furnish to Cleary, Gottlieb, Steen & Hamilton,
counsel for the Underwriters, one signed copy of the registration statement
relating to the Registered Securities, including all exhibits, in the form it
became effective and of all amendments thereto and that, in connection with each
offering of Securities:
(a) The Company will file the Prospectus with the Commission pursuant
to and in accordance with Rule 424(b)(2) (or, if applicable and if
consented to by the Representatives, subparagraph (5)) not later than the
second business day following the execution and delivery of the Terms
Agreement.
(b) The Company will advise the Representatives promptly of any
proposal to amend or supplement the Registration Statement or the
Prospectus and will not, unless legally required to do so, effect such
amendment or supplementation
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without the Representatives' consent; and the Company will also advise the
Representatives promptly of the filing of any such amendment or
supplementation of the Registration Statement or the Prospectus and of the
institution by the Commission of any stop order proceedings in respect of
the Registration Statement and will use its best efforts to prevent the
issuance of any such stop order and to obtain as soon as possible its
lifting, if issued.
(c) If, at any time when a prospectus relating to the Securities is
required to be delivered under the Act, any event occurs as a result of
which the Prospectus as then amended or supplemented would include an
untrue statement of a material fact or omit to state any material fact
necessary to make the statements therein, in the light of the circumstances
under which they were made, not misleading, or if it is necessary at any
time to amend the Prospectus to comply with the Act, the Company promptly
will prepare and file with the Commission an amendment or supplement which
will correct such statement or omission or an amendment which will effect
such compliance. Neither the Representatives' consent to, nor the
Underwriters' delivery of, any such amendment or supplement shall
constitute a waiver of any of the conditions set forth in Section 5.
(d) As soon as practicable, but not later than 16 months after the date
of each Terms Agreement, the Company will make generally available to its
securityholders an earnings statement covering a period of at least 12
months beginning after the later of (i) the effective date of the
registration statement relating to the Registered Securities, (ii) the
effective date of the most recent post-effective amendment to the
Registration Statement to become effective prior to the date of such Terms
Agreement and (iii) the date of the Company's most recent Annual Report on
Form 10-K filed with the Commission prior to the date of such Terms
Agreement, which earnings statement will satisfy the provisions of Section
11(a) of the Act.
(e) The Company will furnish to the Representatives copies of the
Registration Statement, including all exhibits, and so long as delivery of
a prospectus by an Underwriter or dealer may be required by the Act, any
related preliminary prospectus, any related preliminary prospectus
supplement, the Prospectus and all amendments and supplements to such
documents, in each case as soon as available and in such quantities as are
reasonably requested.
(f) The Company will arrange for the qualification of the Securities for
sale and the determination of their eligibility for investment under the
laws of such jurisdictions as the Representatives designate and will
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continue such qualifications in effect so long as required for the
distribution.
(g) During the period of five years after the date of any Terms
Agreement, the Company will furnish to the Representatives and, upon
request, to each of the other Underwriters, if any, as soon as practicable
after the end of each fiscal year, a copy of its annual report to
stockholders for such year; and the Company will furnish to the
Representatives (i) as soon as available, a copy of each report or
definitive proxy statement of the Company filed with the Commission under
the Securities Exchange Act of 1934, as amended, or mailed to stockholders,
and (ii) from time to time, such other information concerning the Company
as the Representatives may reasonably request.
(h) The Company will pay all expenses incident to the performance of its
obligations under this Agreement and will reimburse the Underwriters for
any reasonable expenses (including reasonable fees and disbursements of
counsel) incurred by them in connection with qualification of the
Registered Securities for sale and determination of their eligibility for
investment under the laws of such jurisdictions as the Representatives may
designate and the printing of memoranda relating thereto, for any fees
charged by investment rating agencies for the rating of the Securities, for
the filing fee of the National Association of Securities Dealers, Inc.
relating to the Registered Securities, if applicable, and for expenses
incurred in distributing the Prospectus, any preliminary prospectuses and
any preliminary prospectus supplements to Underwriters.
(i) For a period beginning at the time of execution of the Terms
Agreement and ending 10 days after the Closing Date, without the prior
consent of the Representatives, the Company will not offer, sell, contract
to sell or otherwise dispose of any debt securities (other than the
Securities) issued or guaranteed by the Company and having a maturity of
more than one year from the date of issue.
(j) The Company confirms as of the date hereof that it is in compliance
with all provisions of Section 1 of Laws of Florida, Chapter 92-198, An Act
Relating to Disclosure of Doing Business with Cuba, and the Company further
agrees that if it commences engaging in business with the government of
Cuba or with any person or affiliate located in Cuba after the date the
Registration Statement becomes or has become effective with the Commission
or with the Florida Department of Banking and Finance (the "Department"),
whichever date is later, or if the information reported in the Prospectus,
if any, concerning the Company's business with Cuba or with any person or
affiliate located in Cuba changes in any material
5
<PAGE>
way, the Company will provide the Department notice of such business or
change, as appropriate, in a form acceptable to the Department.
5. Conditions of the Obligations of the Underwriters. The
-------------------------------------------------
obligations of the several Underwriters to purchase and pay for the Securities
will be subject to the accuracy of the representations and warranties on the
part of the Company herein, to the accuracy of the statements of Company
officers made pursuant to the provisions hereof, to the performance by the
Company of its obligations hereunder and to the following additional conditions
precedent:
(a) Unless otherwise provided in the Terms Agreement, on or prior to
the date of the Terms Agreement, the Representatives shall have received a
letter, dated the date of delivery thereof, of Price Waterhouse, confirming
that they are independent public accountants within the meaning of the Act
and the applicable published Rules and Regulations thereunder and stating
in effect that:
(i) in their opinion, the financial statements and schedules
examined by them and included or incorporated by reference in the
prospectus contained in the registration statement relating to the
Registered Securities, as amended at the date of such letter, comply
in form in all material respects with the applicable accounting
requirements of the Act and the related published Rules and
Regulations;
(ii) they have made a review of any unaudited financial
statements included or incorporated by reference in such prospectus in
accordance with standards established by the American Institute of
Certified Public Accountants, as indicated in their report or reports
attached to such letter;
(iii) on the basis of the review referred to in (ii) above, a
reading of the latest available interim financial statements of the
Company, inquiries of officials of the Company who have responsibility
for financial and accounting matters and other specified procedures,
nothing came to their attention that caused them to believe that the
unaudited financial statements, if any, included in such prospectus do
not comply in form in all material respects with the applicable
accounting requirements of the Act and the related published Rules and
Regulations or are not in conformity with generally accepted
accounting principles applied on a basis substantially consistent with
that of the audited financial statements included in such prospectus;
and
6
<PAGE>
(iv) they have compared specified dollar amounts (or
percentages derived from such dollar amounts) and other financial
information contained in such prospectus (in each case to the extent
that such dollar amounts, percentages and other financial information
are derived from the general accounting records of the Company and its
subsidiaries subject to the internal controls of the Company's
accounting system or are derived directly from such records by
analysis or computation) with the results obtained from inquiries, a
reading of such general accounting records and other procedures
specified in such letter and have found such dollar amounts,
percentages and other financial information to be in agreement with
such results, except as otherwise specified in such letter.
All financial statements and schedules included in material incorporated by
reference into such prospectus shall be deemed included in such prospectus
for purposes of this subsection.
(b) The Prospectus shall have been filed with the Commission in
accordance with the Rules and Regulations and Section 4(a) of this
Agreement. No stop order suspending the effectiveness of the Registration
Statement or of any part thereof shall have been issued and no proceedings
for that purpose shall have been instituted or, to the knowledge of the
Company or any Underwriter, shall be contemplated by the Commission.
(c) At any time before payment is made to the Company, there shall not
have occurred (i) a change in U.S. or international financial, political or
economic conditions or currency exchange rates for the U.S. dollar or
exchange controls of the U.S. dollar and other applicable currencies as
would, in the judgment of the Underwriters, in their view be likely to
prejudice materially the success of the proposed issue, sale or
distribution of the Securities, whether in the primary market or in respect
of dealings in the secondary market, or (ii) subsequent to the execution
and delivery of the Terms Agreement, (A) any change, or any development
involving a prospective change, in or affecting particularly the business
or properties of the Company or its subsidiaries which, in the judgment of
the Underwriters, materially impairs the investment quality of the
Securities; (B) any downgrading in the rating of the Company's debt
securities by any "nationally recognized statistical rating organization"
(as defined for purposes of Rule 436(g) under the Act), or any public
announcement that any such organization has under surveillance or review
its rating of any of the Company's debt securities (other than an
announcement of a possible upgrading, with no implication of a possible
downgrading, of such rating); (C) any suspension or material limitation of
7
<PAGE>
trading in securities generally on the New York Stock Exchange, or any
setting of minimum prices for trading on such exchange, or any suspension
of trading of any securities of the Company on any exchange or in the over-
the-counter market; (D) any banking moratorium declared by the United
States Federal or New York authorities; or (E) any outbreak or escalation
of major hostilities in which the United States is involved, any
declaration of war by the United States Congress or any other substantial
national or international calamity or emergency if, in the judgment of the
Underwriters, the effect of any such outbreak, escalation, declaration,
calamity or emergency makes it impractical or inadvisable to proceed with
completion of the sale of and payment for the Securities.
(d) The Underwriters shall have received an opinion, dated the Closing
Date, of Dechert Price & Rhoads, counsel for the Company, to the effect
that:
(i) The Company has been duly incorporated and is validly
existing and in good standing under the laws of the Commonwealth of
Pennsylvania, with corporate power and authority to own its properties
and conduct its business as described in the Prospectus;
(ii) The Indenture has been duly authorized, executed and
delivered by the Company and has been duly qualified under the Trust
Indenture Act; the Securities have been duly authorized by the
Company; the Securities other than any Contract Securities have been
duly executed, issued and delivered by the Company; the Indenture,
assuming due authorization, execution and delivery by the Trustee,
constitutes, and the Securities other than any Contract Securities,
when authenticated by the Trustee and sold pursuant to the
Underwriting Agreement, will constitute, and any Contract Securities,
when executed, authenticated, issued and delivered in the manner
provided in the Indenture and sold pursuant to Delayed Delivery
Contracts, will constitute, valid and legally binding obligations of
the Company enforceable in accordance with their terms, subject to
bankruptcy, insolvency, fraudulent transfer, reorganization,
moratorium and similar laws of general applicability relating to or
affecting creditors' rights and to general equity principles; and the
Securities other than any Contract Securities conform, and any
Contract Securities, when so issued and delivered and sold, will
conform, in all material respects to the description thereof contained
in the Prospectus;
(iii) No consent, approval, authorization or order of, or
filing with, any governmental agency or body or any court is required
for the consummation of the
8
<PAGE>
transactions contemplated by the Terms Agreement (including the
provisions of this Agreement) in connection with the issuance or sale
of the Securities by the Company, except such as have been obtained
and made under the Act and the Trust Indenture Act and such as may be
required under foreign and state securities laws;
(iv) The execution, delivery and performance by the Company
of the Indenture, the Terms Agreement (including the provisions of
this Agreement) and any Delayed Delivery Contracts and the issuance
and sale of the Securities and the compliance with the terms and
provisions thereof will not result in a material breach or violation
of any of the terms and provisions of, or constitute a default under,
the articles of incorporation or by-laws of the Company or, to the
knowledge of such counsel, result in a material breach or violation of
any material agreement or instrument known to such counsel by which
the Company is bound or to which any of the properties of the Company
is subject; and the Company has full corporate power and authority to
authorize, issue and sell the Securities as contemplated by the Terms
Agreement (including the provisions of this Agreement);
(v) The Registration Statement has become effective under
the Act, the Prospectus was filed with the Commission pursuant to the
subparagraph of Rule 424(b) specified in such opinion on the date
specified therein, and, to the best of the knowledge of such counsel,
no stop order suspending the effectiveness of the Registration
Statement or any part thereof has been issued and no proceedings for
that purpose have been instituted or are pending or contemplated under
the Act, and the registration statement relating to the Registered
Securities as of its effective date, the Registration Statement and
the Prospectus as of the date of the Terms Agreement, and each
amendment or supplement thereto, as of their respective effective or
issue dates, complied as to form in all material respects with the
requirements of the Act, the Trust Indenture Act and the Rules and
Regulations (it being understood that such counsel expresses no
opinion with respect to the financial statements, schedules and other
financial data included therein); and
(vi) The Terms Agreement (including the provisions of this
Agreement) and any Delayed Delivery Contracts have been duly
authorized, executed and delivered by the Company.
In addition, in connection with the preparation of the Registration
Statement and the Prospectus, such counsel shall
9
<PAGE>
have participated in discussions with officers and representatives of the
Company, the Company's independent public accountants, and the
Representatives, at which the contents of the Registration Statement and
the Prospectus have been discussed and (without taking any further action
to verify independently the statements made in the Registration Statement
and the Prospectus and, although such counsel will not be required to pass
upon or assume responsibility for the accuracy, completeness or fairness of
such statements, except as described in its opinion relating to the
description of the Securities and any Contract Securities in paragraph 2
hereof), such counsel shall advise that, on the basis of the foregoing, no
facts have come to such counsel's attention that causes them to believe
that (a) such registration statement, as of its effective date, the
Registration Statement as of the date of the Terms Agreement, and as of the
Closing Date or any such amendment or supplement, as of its date, contained
an untrue statement of a material fact or omitted to state a material fact
required to be stated therein or necessary in order to make the
statements therein not misleading or (b) the Prospectus, as of the date of
the Terms Agreement and as of the Closing Date, contained an untrue
statement of a material fact or omitted to state a material fact required
to be stated therein or necessary to make the statements therein, in light
of the circumstances under which they were made, not misleading (it being
understood that such counsel need not express an opinion with respect to
the financial statements, schedules and other financial data included in
the Registration Statement or the Prospectus).
(e) The Underwriters shall have received an opinion, dated the
Closing Date, of Richard L. Krzyzanowski, Esq., Executive Vice President,
General Counsel and Secretary to the Company to the effect that:
(i) Each "significant subsidiary" of the Company (as defined
in Regulation S-X under the Act) listed on Schedule I hereto (the
"Significant Subsidiaries") has been duly incorporated and is validly
existing and in good standing under the laws of its respective
jurisdiction of incorporation, with corporate power and authority to
own its respective properties and conduct its respective business as
described in the Prospectus; and the Company and each of its
Significant Subsidiaries are duly qualified to do business as foreign
corporations in good standing in all other jurisdictions in which any
such corporation owns or leases substantial properties or in which the
conduct of any such corporation's business requires such qualification
(except where the failure so to qualify would not have a material
adverse effect on the financial condition of the Company and its
subsidiaries as a whole);
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<PAGE>
(ii) No consent, approval, authorization or order of, or filing
with, any governmental agency or body or any court is required for the
consummation of the transactions contemplated by the Terms Agreement
in connection with the issuance or sale of the Securities by the
Company, except such as have been obtained and made under the Act and
the Trust Indenture Act and such as may be required under state
securities laws;
(iii) The execution, delivery and performance of the
Indenture, the Terms Agreement (including the provisions of this
Agreement) and any Delayed Delivery Contracts and the issuance and
sale of the Securities and the compliance with the terms and
provisions thereof will not result in a material breach or violation
of any of the terms and provisions of, or constitute a default under,
any statute, rule, regulation or order of any governmental agency or
body or any court having jurisdiction over the Company or any
subsidiary of the Company or any of their properties, or any material
agreement or instrument to which the Company or any such subsidiary is
a party or by which the Company or any such subsidiary is bound or to
which any of the properties of the Company or any such subsidiary is
subject, or the articles of incorporation or by-laws of the Company or
any such subsidiary; the Company has full corporate power and
authority to authorize, issue and sell the Securities as contemplated
by the Terms Agreement (including the provisions of this Agreement);
and, to the best of such counsel's knowledge, neither the Company nor
any of its Significant Subsidiaries is in violation of its articles of
incorporation or by-laws, or in material default of any material
agreement, indenture or instrument; and
(iv) Each document filed by the Company under the Securities
Exchange Act of 1934, as amended (the "Exchange Act"), and
incorporated by reference in the Registration Statement and each
amendment or supplement thereto, as of their respective dates,
complied as to form in all material respects with the requirements of
the Exchange Act and the rules and regulations thereunder.
In addition, such counsel has no reason to believe that either
the Registration Statement or the Prospectus, or any amendment or
supplement thereto, as of their respective effective and issue dates
and as of the date of the Terms Agreement and the Closing Date,
contained any untrue statement of a material fact or omitted to state
any material fact required to be stated therein or necessary to make
the statements therein not misleading; and such counsel does not know
of any legal or
11
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governmental proceedings required by Form S-3 to be described in the
Registration Statement or Prospectus which are not described as
required by Form S-3 or of any contracts or documents required by Form
S-3 to be described in the Registration Statement or Prospectus or to
be filed as exhibits to the Registration Statement which are not
described or filed as so required; it being understood that such
counsel need express no opinion as to the financial statements,
schedules and other financial data contained in the Registration
Statement or the Prospectus.
(f) The Underwriters shall have received from Cleary, Gottlieb, Steen
& Hamilton, counsel for the Underwriters, such opinion or opinions, dated
the Closing Date, with respect to the incorporation of the Company, the
validity of the Securities, the Registration Statement, the Prospectus and
other related matters as the Underwriters may require, and the Company
shall have furnished to such counsel such documents as they request for the
purpose of enabling them to pass upon such matters. In rendering such
opinion, Cleary, Gottlieb, Steen & Hamilton may rely as to the
incorporation of the Company and all other matters governed by Pennsylvania
law upon the opinion of Dechert Price & Rhoads referred to above.
(g) The Underwriters shall have received a certificate, dated the
Closing Date, of the President or any Vice-President and a principal
financial or accounting officer of the Company in which such officers, to
the best of their knowledge after reasonable investigation, shall state
that the representations and warranties of the Company in this Agreement
are true and correct, that the Company has complied with all agreements and
satisfied all conditions on its part to be performed or satisfied hereunder
at or prior to the Closing Date, that no stop order suspending the
effectiveness of the Registration Statement has been issued and no
proceedings for that purpose have been instituted or are contemplated by
the Commission and that, subsequent to the date of the most recent
financial statements in the Prospectuses, there has been no material
adverse change in the financial position or results of operations of the
Company and its subsidiaries except as set forth in or contemplated by the
Prospectuses or as described in such certificate.
(h) Unless otherwise provided in the Terms Agreement, the
Representatives shall have received a letter, dated the Closing Date, of
Price Waterhouse, which reconfirms the matters set forth in their letter
delivered pursuant to subsection (a) of this Section and states in effect
that:
(i) in their opinion, any financial statements or schedules
examined by them and included in the Prospectus
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and not covered by their letter delivered pursuant to subsection (a)
of this Section comply in form in all material respects with the
applicable accounting requirements of the Act and the related
published Rules and Regulations;
(ii) they have made a review of any unaudited financial
statements included in the Prospectus and not covered by their letter
delivered pursuant to subsection (a) of this Section in accordance
with standards established by the American Institute of Certified
Public Accountants, as indicated in their report or reports attached
to such letter;
(iii) on the basis of the review referred to in (ii) above,
a reading of the latest available interim financial statements of the
Company, inquiries of officials of the Company who have responsibility
for financial and accounting matters and other specified procedures,
nothing came to their attention that caused them to believe that:
(A) the unaudited financial statements, if any,
included in such Prospectus and not covered by their letter
delivered pursuant to subsection (a) of this Section do not
comply in form in all material respects with the applicable
accounting requirements of the Act and the related published
Rules and Regulations or are not in conformity with generally
accepted accounting principles applied on a basis
substantially consistent with that of the audited financial
statements included in the Prospectus;
(B) the unaudited capsule information, if any,
included in the Prospectus does not agree with the amounts
set forth in the unaudited consolidated financial statements
from which it was derived or was not determined on a basis
substantially consistent with that of the audited financial
statements included in the Prospectus;
(C) at the date of the latest available balance sheet
read by such accountants, or at a subsequent specified date
not more than five days prior to the Closing Date, there was
any change in the capital stock or any increase in
consolidated long-term debt or, at the date of the latest
available balance sheet read by such accountants or at a
subsequent specified date not more than five days prior to
the Closing Date, there was any decrease in consolidated net
current assets or
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shareholders' equity, as compared with amounts shown on the
latest balance sheet included in the Prospectus; or
(D) for the period from the date of the latest income
statement included in the Prospectus to the closing date of
the latest available income statement read by such
accountants there were any decreases, as compared with the
corresponding period of the previous year in consolidated net
sales, income before taxes or net income or in the total or
per share amounts of consolidated net income;
except in all cases set forth in clauses (C) and (D) above for
changes, increases or decreases which the Prospectus discloses have
occurred or may occur or which are described in such letter; and
(iv) they have compared specified dollar amounts (or
percentages derived from such dollar amounts) and other financial
information included in the Prospectus and not covered by their letter
delivered pursuant to subsection (a) of this Section (in each case to
the extent that such dollar amounts, percentages and other financial
information are derived from the general accounting records of the
Company and its subsidiaries subject to the internal controls of the
Company's accounting system or are derived directly from such records
by analysis or computation) with the results obtained from inquiries,
a reading of such general accounting records and other procedures
specified in such letter and have found such dollar amounts,
percentages and other financial information to be in agreement with
such results, except as otherwise specified in such letter.
All financial statements and schedules included in material incorporated by
reference into the Prospectus shall be deemed included in the Prospectus
for the purposes of this subsection.
The Company will furnish the Representatives with such conformed copies of such
opinions, certificates, letters and documents as they reasonably request.
6. Indemnification and Contribution. (a) The Company will indemnify
--------------------------------
and hold harmless each Underwriter against any losses, claims, damages or
liabilities, joint or several, to which such Underwriter may become subject,
under the Act, the Exchange Act or otherwise, insofar as such losses, claims,
damages or liabilities (or actions in respect thereof) arise out of or are
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based upon any untrue statement or alleged untrue statement of any material fact
contained in the Registration Statement, the Prospectus, or any amendment or
supplement thereto, or any related preliminary prospectus or preliminary
prospectus supplement, or arise out of or are based upon the omission or alleged
omission to state therein a material fact required to be stated therein or
necessary to make the statements therein not misleading, and will reimburse each
Underwriter for any legal or other expenses reasonably incurred by such
Underwriter in connection with investigating or defending any such loss, claim,
damage, liability or action as such expenses are incurred; provided, however,
that such indemnity with respect to the Prospectus shall not inure to the
benefit of any Underwriter (or to the benefit of any person controlling such
Underwriter) from whom the person asserting any such loss, claim, damage or
liability purchased Securities which are the subject thereof to the extent that
any such loss, claim, damage or liability results from the fact that such
Underwriter failed to send or give a copy of the Prospectus (as amended or
supplemented) to such person at or prior to the confirmation of the sale of such
Securities to such person in any case where such delivery is required by the
Act, if copies thereof have been previously furnished to such Underwriter by or
on behalf of the Company; provided, further, that the Company will not be liable
in any such case to the extent that any such loss, claim, damage or liability
arises out of or is based upon an untrue statement or alleged untrue statement
in or omission or alleged omission from any of such documents in reliance upon
and in conformity with written information furnished to the Company by any
Underwriter through the Representatives, if any, specifically for use therein
under the heading "Underwriting" contained in the prospectus supplement relating
to the Securities.
(b) Each Underwriter will indemnify and hold harmless the Company
against any losses, claims, damages or liabilities to which the Company may
become subject, under the Act or otherwise, insofar as such losses, claims,
damages or liabilities (or actions in respect thereof) arise out of or are based
upon any untrue statement or alleged untrue statement of any material fact
contained in the Registration Statement, the Prospectus, or any amendment or
supplement thereto, or any related preliminary prospectus or preliminary
prospectus supplement, or arise out of or are based upon the omission or the
alleged omission to state therein a material fact required to be stated therein
or necessary to make the statements therein not misleading, in each case to the
extent, but only to the extent, that such untrue statement or alleged untrue
statement or omission or alleged omission was made in reliance upon and in
conformity with written information furnished to the Company by such Underwriter
through the Representatives specifically for use therein (the parties
acknowledge that such information is limited to that included in the last
paragraph of the cover page, and under the heading "Underwriting" contained in
the prospectus supplement), and will
15
<PAGE>
reimburse any legal or other expenses reasonably incurred by the Company in
connection with investigating or defending any such loss, claim, damage,
liability or action as such expenses are incurred.
(c) Promptly after receipt by an indemnified party under this Section
of notice of the commencement of any action, such indemnified party will, if a
claim in respect thereof is to be made against the indemnifying party under
subsection (a) or (b) above, notify the indemnifying party of the commencement
thereof; but the omission so to notify the indemnifying party will not relieve
it from any liability which it may have to any indemnified party otherwise than
under subsection (a) or (b) above or to the extent that the indemnifying party
was not adversely affected by such omission. In case any such action is brought
against any indemnified party and it notifies the indemnifying party of the
commencement thereof, the indemnifying party will be entitled to participate
therein and, to the extent that it may wish, jointly with any other indemnifying
party similarly notified, to assume the defense thereof, with counsel
satisfactory to such indemnified party (who shall not, except with the consent
of the indemnified party, be counsel to the indemnifying party), and after
notice from the indemnifying party to such indemnified party of its election so
to assume the defense thereof, the indemnifying party will not be liable to such
indemnified party under this Section for any legal or other expenses
subsequently incurred by such indemnified party in connection with the defense
thereof other than reasonable costs of investigation.
(d) If the indemnification provided for in this Section is unavailable
or insufficient to hold harmless an indemnified party under subsection (a) or
(b) above, then each indemnifying party shall 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 from the offering of the Securities
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 in connection with
the statements or omissions which resulted in such losses, claims, damages or
liabilities as well as any other relevant equitable considerations. The
relative benefits received by the Company on the one hand and the Underwriters
on the other shall be deemed to be in the same proportion as the total net
proceeds from the offering (before deducting expenses) received by the Company
bear to the total underwriting discounts and commissions received by the
Underwriters. The relative fault shall be determined by reference to, among
other things, whether the untrue or alleged untrue statement of a material fact
or the
16
<PAGE>
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 amount paid by an indemnified party as a
result of the losses, claims, damages or liabilities 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 or defending 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 Securities underwritten by it and
distributed to the public were offered to the public exceeds the amount of any
damages which such Underwriter has otherwise been required to pay by reason of
such untrue or alleged untrue statement or omission or alleged omission. No
person guilty of fraudulent misrepresentation (within the meaning of Section
11(f) of the Act) shall be entitled to contribution from any person who was not
guilty of such fraudulent misrepresentation. The Underwriters' obligations in
this subsection (d) to contribute are several in proportion to their respective
underwriting obligations and not joint.
(e) The obligations of the Company under this Section shall be in
addition to any liability which the Company may otherwise have and shall extend,
upon the same terms and conditions, to each person, if any, who controls any
Underwriter within the meaning of the Act; and the obligations of the
Underwriters under this Section shall be in addition to any liability which the
respective Underwriters may otherwise have and shall extend, upon the same terms
and conditions, to each 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 Act.
7. Default of Underwriters. If any Underwriter or Underwriters
-----------------------
default in their obligations to purchase Securities under the Terms Agreement
and the aggregate principal amount of the Securities that such defaulting
Underwriter or Underwriters agreed but failed to purchase does not exceed 10% of
the total principal amount of the Securities, the Representatives may make
arrangements satisfactory to the Company for the purchase of such Securities by
other persons, including any of the Underwriters, but if no such arrangements
are made by the Closing Date, the non-defaulting Underwriters shall be obligated
severally, in proportion to their respective commitments under this Agreement
and the Terms Agreement, to purchase the Securities that such defaulting
Underwriters agreed but failed to purchase. If any Underwriter or Underwriters
so default and the aggregate principal amount of the Securities with respect to
which such default or defaults occur exceeds 10% of the total principal amount
of the Securities and
17
<PAGE>
arrangements satisfactory to the Representatives and the Company for the
purchase of such Securities by other persons are not made within 36 hours after
such default, such Terms Agreement will terminate without liability on the part
of any non-defaulting Underwriter or the Company, except as provided in Section
8. As used in this Agreement, the term "Underwriter" includes any person
substituted for an Underwriter under this Section. Nothing herein will relieve
a defaulting Underwriter from liability for its default. The respective
commitments of the several Underwriters for the purposes of this Section shall
be determined without regard to reduction in the respective Underwriters'
obligations to purchase the principal amount of the Securities set forth
opposite their names in the Terms Agreement as a result of Delayed Delivery
Contracts entered into by the Company.
The foregoing obligations and agreements set forth in this Section
will not apply if the Terms Agreement specifies that such obligations and
agreements will not apply.
8. Survival of Certain Representations and Obligations. The
---------------------------------------------------
respective indemnities, agreements, representations, warranties and other
statements of the Company or its officers and of the several Underwriters set
forth in or made pursuant to this Agreement will remain in full force and
effect, regardless of any investigation, or statement as to the results thereof,
made by or on behalf of any Underwriter, the Company or any of their respective
representatives, officers or directors or any controlling person and will
survive delivery of and payment for the Securities. If the Terms Agreement is
terminated pursuant to Section 7 or if for any reason the purchase of the
Securities by the Underwriters under the Terms Agreement is not consummated, the
Company shall remain responsible for the expenses to be paid or reimbursed by it
pursuant to Section 4 and the respective obligations of the Company and the
Underwriters pursuant to Section 6 shall remain in effect. If this Agreement is
terminated by the Underwriters by reason of (a) a breach of a representation,
warranty or agreement by the Company contained in this Agreement or (b) any
change, or any development involving a prospective change, in or affecting
particularly the business or properties of the Company or its subsidiaries taken
as a whole which materially impairs the investment quality of the Securities,
the Company will reimburse the Underwriters for all out-of-pocket expenses
(including fees and disbursements of counsel) reasonably incurred by them in
connection with the offering of the Securities.
9. Notices. All communications hereunder will be in writing and, if
-------
sent to the Underwriters, will be mailed, delivered or telegraphed and confirmed
to them at their addresses furnished to the Company in writing for the purposes
of communications hereunder or, if sent to the Company, will be mailed,
delivered or telegraphed and confirmed to it at 9300 Ashton Road, Philadelphia,
Pennsylvania 19136, Attention: Vice President and Treasurer.
18
<PAGE>
10. Successors. This Agreement will inure to the benefit of and be
----------
binding upon the Company and such Underwriters as are identified in Terms
Agreements and their respective successors and the officers and directors and
controlling persons referred to in Section 6, and no other person will have any
right or obligation hereunder.
11. Applicable Law. This Agreement and the Terms Agreement shall be
--------------
governed by, and construed in accordance with, the laws of the State of New
York.
19
<PAGE>
SCHEDULE I
LIST OF SIGNIFICANT SUBSIDIARIES
CONSTAR International Inc.
Crown Beverage Packaging, Inc.
20
<PAGE>
Annex 1
(Three copies of this Delayed Delivery Contract should be
---------------------------------------------------------
signed and returned to the address shown below so
-------------------------------------------------
as to arrive not later than 9:00 A.M.,
------------------------------------
New York City time, on ___________ __, 19__.)*
---------------------------------------------
DELAYED DELIVERY CONTRACT
-------------------------
[Insert date of initial public offering]
----------------------------------------
Crown Cork & Seal Company, Inc.
c/o [Name of Underwriting Firm]
[Address]
Ladies and Gentlemen:
The undersigned hereby agrees to purchase from Crown Cork & Seal
Company, Inc., a Philadelphia corporation (the "Company"), and the Company
agrees to sell to the undersigned, [If one delayed closing, insert -- as of the
------------------------------
date hereof, for delivery on _________, 19__ (the "Delivery Date").]
$_______________
principal amount of the Company's [insert title of securities] (the
----------------------------
"Securities"), offered by the Company's Prospectus dated __________, 19__ and a
Prospectus Supplement dated ___________, 19 relating thereto, receipt of
copies of which is hereby acknowledged, at ___% of the principal amount thereof
plus accrued interest, if any, and on the further terms and conditions set forth
in this Delayed Delivery Contract (the "Contract").
[If two or more delayed closings, insert the following:
-------------------------------------------------------
The undersigned will purchase from the Company as of the date hereof,
for delivery on the dates set forth below, Securities in the -- principal --
amounts set forth below:
- --------------------
* Insert date which is third full business day prior to Closing Date under
the Terms Agreement.
21
<PAGE>
Delivery Date Principal Amount
------------- ----------------
----------------------- -----------------------
----------------------- ------------------------
Each of such delivery dates is hereinafter referred to as a Delivery Date.]
Payment for the Securities that the undersigned has agreed to purchase
for delivery on -- the -- each -- Delivery Date shall be made to the Company or
its order by certified or official bank check in New York Clearing House (next
day) funds at the office of __________________ at ______ M. on -- the -- such --
Delivery Date upon delivery to the undersigned of the Securities to be purchased
by the undersigned -- for delivery on such Delivery Date -- in definitive fully
registered form and in such denominations and registered in such names as the
undersigned may designate by written or telegraphic communication addressed to
the Company not less than five full business days prior to -- the -- such --
Delivery Date.
It is expressly agreed that the provisions for delayed delivery and
payment are for the sole convenience of the undersigned; that the purchase
hereunder of Securities is to be regarded in all respects as a purchase as of
the date of this Contract; that the obligation of the Company to make delivery
of and accept payment for, and the obligation of the undersigned to take
delivery of and make payment for, Securities on -- the -- each -- Delivery Date
shall be subject only to the conditions that (1) investment in the Securities
shall not at -- the -- such -- Delivery Date be prohibited under the laws of any
jurisdiction in the United States to which the undersigned is subject and (2)
the Company shall have sold to the Underwriters the total principal amount of
the Securities less the principal amount thereof covered by this and other
similar Contracts. The undersigned represents that its investment in the
securities is not, as of the date hereof, prohibited under the laws of any
jurisdiction to which the undersigned is subject and which governs such
investment.
Promptly after completion of the sale to the Underwriters the Company
will mail or deliver to the undersigned at its address set forth below notice to
such effect, accompanied by -- a copy -- copies -- of the opinions of counsel
for the Company delivered to the Underwriters in connection therewith.
This Contract will inure to the benefit of and be binding upon the
parties hereto and their respective successors, but will not be assignable by
either party hereto without the written consent of the other.
22
<PAGE>
It is understood that the acceptance of any such Contract is in the
Company's sole discretion and, without limiting the foregoing, need not be on a
first-come, first-served basis. If this Contract is acceptable to the Company,
it is requested that the Company sign the form of acceptance below and mail or
deliver one of the counterparts hereof to the undersigned at its address set
forth below. This will become a binding contract between the Company and the
undersigned when such counterpart is so mailed or delivered.
Yours very truly,
-------------------------------
(Name of Purchaser)
By
-----------------------------
-------------------------------
(Title of Signatory)
-------------------------------
(Address of Purchaser)
Accepted, as of the above date.
CROWN CORK & SEAL COMPANY, INC.
By
-----------------------------
[Insert Title]
23
<PAGE>
- --------------------------------------------------------------------------------
CROWN CORK & SEAL COMPANY, INC.,
as Issuer,
TO
CHEMICAL BANK,
as Trustee
-------------
INDENTURE
DATED AS OF
------------, ----
-------------
- --------------------------------------------------------------------------------
<PAGE>
Reconciliation and tie between Trust Indenture Act of 1939 and Indenture, dated
as of .
<TABLE>
<CAPTION>
Trust Indenture Act Section Indenture Section
- ------------------------- -----------------
<S> <C>
(S) 310(a)(1).................................................... 6.9
(a)(2).................................................... 6.9
(a)(3).................................................... Not Applicable
(a)(4).................................................... Not Applicable
(a)(5).................................................... 6.9
(b)....................................................... 6.8, 6.10
(S) 311(a)....................................................... 6.13(a)
(b)....................................................... 6.13(b)
(b)(2).................................................... 7.3(a)(2),
.................................................... 7.3(b)
(S) 312(a)....................................................... 7.1, 7.2(a)
(b)....................................................... 7.2(b)
(c)....................................................... 7.2(c)
(S) 313(a)....................................................... 7.3(a)
(b)....................................................... 7.3(b)
(c)....................................................... 7.3(a), 7.3(b)
(d)....................................................... 7.3(c)
(S) 314(a)....................................................... 7.4
(b)....................................................... Not Applicable
(c)(1).................................................... 1.2
(c)(2).................................................... 1.2
(c)(3).................................................... Not Applicable
(d)....................................................... Not Applicable
(e)....................................................... 1.2
(S) 315(a)....................................................... 6.1(a)
(b)....................................................... 6.2, 7.3(a)(6)
(c)....................................................... 6.1(b)
(d)....................................................... 6.1(c)
(d)(1).................................................... 6.1(a)(1)
(d)(2).................................................... 6.1(c)(2)
(d)(3).................................................... 6.1(c)(3)
(3)....................................................... 5.14
(S) 316(a)(1).................................................... 1.1
(a)(1)(A)................................................. 5.2, 5.12
(a)(1)(B)................................................. 5.13
(b)....................................................... 5.8
(S) 317(a)(1).................................................... 5.3
(a)(2).................................................... 5.4
(b)....................................................... 10.3
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S> <C>
(S) 318(a)....................................................... 1.7
</TABLE>
________________
Note: This reconciliation and tie shall not, for any purpose, be deemed to
be a part of the Indenture.
<PAGE>
TABLE OF CONTENTS/1/
<TABLE>
<CAPTION>
Page
-------------------------------------------
<S> <C>
PARTIES.................................................................... 1
RECITALS................................................................... 1
ARTICLE I
DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION
SECTION 1.1 Definitions................................................... 1
-----------
SECTION 1.2 Compliance Certificates and Opinions.......................... 9
------------------------------------
SECTION 1.3 Form of Documents Delivered to Trustee........................ 9
--------------------------------------
SECTION 1.4 Acts of Holders............................................... 10
---------------
SECTION 1.5 Notices, etc., to Trustee and Company......................... 11
-------------------------------------
SECTION 1.6 Notice to Holders; Waiver..................................... 11
-------------------------
SECTION 1.7 Conflict with Trust Indenture Act............................. 12
---------------------------------
SECTION 1.8 Effect of Headings and Table of Contents...................... 12
----------------------------------------
SECTION 1.9 Successors and Assigns........................................ 12
----------------------
SECTION 1.10 Separability Clause........................................... 12
-------------------
SECTION 1.11 Benefits of Indentures........................................ 12
----------------------
SECTION 1.12 Governing Law ................................................ 12
-------------
SECTION 1.13 Legal Holidays................................................ 13
--------------
SECTION 1.14 Certain Matters Relating to Currencies........................ 13
--------------------------------------
SECTION 1.15 Indenture and Securities Solely
-------------------------------
Corporate Obligations ...................................... 13
---------------------
SECTION 1.16 Execution in Counterparts .................................... 14
-------------------------
</TABLE>
_______________________
/1/ Note: This table of contents shall not, for any purpose, be deemed to
be a part of this Indenture.
<PAGE>
<TABLE>
<CAPTION>
Page
-------------------------------------------
ARTICLE II
SECURITY FORMS
<S> <C>
SECTION 2.1 Forms Generally.............................................. 14
---------------
SECTION 2.2 Form of Face of Security..................................... 14
------------------------
SECTION 2.3 Form of Reverse of Security.................................. 17
---------------------------
SECTION 2.4 Form of Trustee's Certificate of
--------------------------------
Authentication............................................. 21
--------------
ARTICLE III
THE SECURITIES
SECTION 3.1 Amount Unlimited; Issuable in Series......................... 21
------------------------------------
SECTION 3.2 Denominations................................................ 24
-------------
SECTION 3.3 Execution, Authentication, Delivery
-----------------------------------
and Dating................................................. 24
----------
SECTION 3.4 Temporary Securities......................................... 25
--------------------
SECTION 3.5 Registration, Registration of Transfer
--------------------------------------
and Exchange .............................................. 26
------------
SECTION 3.6 Mutilated, Destroyed, Lost and
------------------------------
Stolen Securities.......................................... 27
-----------------
SECTION 3.7 Payment of Interest; Interest Rights
------------------------------------
Preserved ................................................. 28
---------
SECTION 3.8 Persons Deemed Owners........................................ 29
---------------------
SECTION 3.9 Cancellation................................................. 29
------------
SECTION 3.10 Computation of Interest...................................... 30
-----------------------
SECTION 3.11 Global Securities............................................ 30
-----------------
SECTION 3.12 Payment to be in Proper Currency............................. 32
--------------------------------
</TABLE>
-ii-
<PAGE>
<TABLE>
<CAPTION>
Page
-------------------------------------------
ARTICLE IV
SATISFACTION AND DISCHARGE
<S> <C>
SECTION 4.1 Satisfaction and Discharge of Securities
----------------------------------------
of any Series.............................................. 33
-------------
SECTION 4.2 Application of Trust Money................................... 35
--------------------------
SECTION 4.3 Satisfaction and Discharge of Indenture...................... 36
---------------------------------------
SECTION 4.4 Reinstatement................................................ 36
-------------
ARTICLE V
REMEDIES
SECTION 5.1 Events of Default............................................ 37
-----------------
SECTION 5.2 Acceleration of Maturity; Rescission and
----------------------------------------
Annulment.................................................. 39
---------
SECTION 5.3 Collection of Indebtedness and Suits
------------------------------------
for Enforcement by Trustee................................. 40
--------------------------
SECTION 5.4 Trustee May File Proofs of Claim............................. 41
--------------------------------
SECTION 5.5 Trustee May Enforce Claims Without Possession
---------------------------------------------
of Securities.............................................. 41
-------------
SECTION 5.6 Application of Money Collected............................... 42
------------------------------
SECTION 5.7 Limitation on Suits.......................................... 42
-------------------
SECTION 5.8 Unconditional Right of Holders to Receive
-----------------------------------------
Principal, Premium and Interest............................ 43
-------------------------------
SECTION 5.9 Restoration of Rights and Remedies........................... 43
----------------------------------
SECTION 5.10 Rights and Remedies Cumulative............................... 43
------------------------------
SECTION 5.11 Delay or Omission Not Waiver................................. 44
----------------------------
SECTION 5.12 Control by Holders........................................... 44
------------------
SECTION 5.13 Waiver of Past Defaults...................................... 44
-----------------------
SECTION 5.14 Undertaking for Costs........................................ 44
---------------------
</TABLE>
-iii-
<PAGE>
<TABLE>
<CAPTION>
Page
-------------------------------------------
<S> <C>
SECTION 5.15 Waiver of Stay or Extension Laws............................. 45
--------------------------------
ARTICLE VI
THE TRUSTEE
SECTION 6.1 Certain Duties and Responsibilities.......................... 45
-----------------------------------
SECTION 6.2 Notice of Defaults........................................... 47
------------------
SECTION 6.3 Certain Rights of Trustee.................................... 47
-------------------------
SECTION 6.4 Not Responsible for Recitals or Issuance
----------------------------------------
of Securities.............................................. 48
-------------
SECTION 6.5 May Hold Securities.......................................... 48
-------------------
SECTION 6.6 Money Held in Trust.......................................... 48
-------------------
SECTION 6.7 Compensation and Reimbursement............................... 49
------------------------------
SECTION 6.8 Qualification of Trustee;
-------------------------
Conflicting Interests...................................... 49
---------------------
SECTION 6.9 Corporate Trustee Required;
---------------------------
Eligibility................................................ 49
-----------
SECTION 6.10 Resignation and Removal;
------------------------
Appointment of Successor................................... 50
------------------------
SECTION 6.11 Acceptance of Appointment by
----------------------------
Successor.................................................. 52
---------
SECTION 6.12 Merger, Conversion, Consolidation or
------------------------------------
Succession to Business..................................... 53
----------------------
SECTION 6.13 Preferential Collection of Claims
---------------------------------
Against Company............................................ 53
---------------
SECTION 6.14 Appointment of Authenticating Agent.......................... 53
-----------------------------------
ARTICLE VII
HOLDERS' LISTS AND REPORTS BY TRUSTEE AND COMPANY
SECTION 7.1 Company to Furnish Trustee Names and
------------------------------------
Addresses of Holders....................................... 56
--------------------
</TABLE>
-iv-
<PAGE>
<TABLE>
<CAPTION>
Page
-------------------------------------------
<S> <C>
SECTION 7.2 Preservation of Information;
----------------------------
Communications to Holders.................................. 56
-------------------------
SECTION 7.3 Reports by Trustee........................................... 57
------------------
SECTION 7.4 Reports by Company........................................... 58
------------------
ARTICLE VIII
CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE
SECTION 8.1 Company May Consolidate, etc., Only on
--------------------------------------
Certain Terms.............................................. 58
-------------
SECTION 8.2 Successor Corporation Substituted............................ 59
---------------------------------
ARTICLE IX
SUPPLEMENTAL INDENTURES
SECTION 9.1 Supplemental Indentures Without Consent of
------------------------------------------
Holders.................................................... 59
-------
SECTION 9.2 Supplemental Indentures with Consent of
---------------------------------------
Holders.................................................... 61
-------
SECTION 9.3 Execution of Supplemental Indentures......................... 62
------------------------------------
SECTION 9.4 Effect of Supplemental Indentures............................ 62
---------------------------------
SECTION 9.5 Conformity with Trust Indenture Act.......................... 63
-----------------------------------
SECTION 9.6 Reference in Securities to Supplemental
---------------------------------------
Indentures................................................. 63
----------
ARTICLE X
COVENANTS
SECTION 10.1 Payment of Principal, Premium and
---------------------------------
Interest................................................... 63
--------
SECTION 10.2 Maintenance of Office or
------------------------
Agency..................................................... 63
------
SECTION 10.3 Money for Security Payments to be Held in
-----------------------------------------
Trust...................................................... 64
-----
</TABLE>
-v-
<PAGE>
<TABLE>
<CAPTION>
Page
-------------------------------------------
<S> <C>
SECTION 10.4 Corporate Existence......................................... 65
-------------------
SECTION 10.5 Maintenance of Properties................................... 66
-------------------------
SECTION 10.6 Payment of Taxes and Other Claims........................... 66
---------------------------------
SECTION 10.7 Limitations on Liens........................................ 66
--------------------
SECTION 10.8 Limitations on Sale and Leaseback........................... 68
---------------------------------
SECTION 10.9 Statement by Officers as to Default......................... 69
-----------------------------------
SECTION 10.10 Waiver of Certain Covenants................................. 69
---------------------------
SECTION 10.11 Defeasance of Certain Obligations........................... 69
---------------------------------
ARTICLE XI
REDEMPTION OF SECURITIES
SECTION 11.1 Applicability of Article.................................... 71
------------------------
SECTION 11.2 Election to Redeem; Notice to Trustee....................... 71
-------------------------------------
SECTION 11.3 Selection by Trustee of Securities
----------------------------------
to be Redeemed............................................ 71
--------------
SECTION 11.4 Notice of Redemption........................................ 72
--------------------
SECTION 11.5 Deposit of Redemption Price................................. 73
---------------------------
SECTION 11.6 Securities Payable on Redemption Date....................... 73
-------------------------------------
SECTION 11.7 Securities Redeemed in Part................................. 73
---------------------------
ARTICLE XII
SINKING FUNDS
SECTION 12.1 Applicability of Article.................................... 74
------------------------
SECTION 12.2 Satisfaction of Sinking Fund Payments
-------------------------------------
with Securities........................................... 74
---------------
SECTION 12.3 Redemption of Securities for
----------------------------
Sinking Fund.............................................. 75
------------
</TABLE>
-vi-
<PAGE>
Page
----------------------------------------------
INDENTURE, dated as of , between CROWN CORK & SEAL
COMPANY, INC., a Pennsylvania corporation (the "Company"), and CHEMICAL BANK, a
New York banking corporation, as trustee (the "Trustee").
RECITALS OF THE COMPANY
The Company has duly authorized the execution and delivery of this
Indenture to provide for the issuance from time to time of its unsecured
debentures, notes or other evidences of indebtedness (herein called the
"Securities"), to be issued in one or more series as in this Indenture provided.
All things necessary have been done to make this Indenture a valid
agreement of the Company, in accordance with its terms.
NOW, THEREFORE, THIS INDENTURE WITNESSETH:
For and in consideration of the premises and the purchase of the
Securities by the Holders thereof, it is mutually covenanted and agreed, for the
equal and proportionate benefit of all Holders of the Securities, as follows:
ARTICLE I
DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION
SECTION 1.1 Definitions.
-----------
For all purposes of this Indenture, except as otherwise expressly
provided or unless the context otherwise requires:
(a) the terms defined in this Article have the meanings assigned to
them in this Article, and include the plural as well as the singular;
(b) all other terms used herein which are defined in the Trust
Indenture Act, either directly or by reference therein, have the meanings
assigned to them therein;
(c) all accounting terms not otherwise defined herein have the
meanings assigned to them in accordance with generally accepted accounting
principles, and, except as otherwise herein expressly provided, the term
"generally
-1-
<PAGE>
accepted accounting principles" with respect to any computation required or
permitted hereunder shall mean such accounting principles as are generally
accepted at the date of this Indenture; and
(d) the words "herein," "hereof" and "hereunder" and other words of
similar import refer to the Indenture as a whole and not to any particular
Article, Section or other subdivision.
"Act", when used with respect to any Holder, has the meaning specified
in Section 1.4.
"Affiliate" of any specified Person means any other Person directly or
indirectly controlling or controlled by or under direct or indirect common
control with such specified Person. For the purposes of this definition,
"control" when used with respect to any specified Person means the power to
direct the management and policies of such Person, directly or indirectly,
whether through the ownership of voting securities, by contract or otherwise;
and terms "controlling" and "controlled" have meanings correlative to the
foregoing.
"Attributable Debt" with respect to any sale leaseback transaction
restricted by Section 10.8 means the lesser of (i) the total net amount of rent
required to be paid during the remaining base term of the related lease or until
the earliest date on which the lessee may terminate such lease upon payment of a
penalty or a lump-sum termination payment (in which case the total net rent
shall include such penalty or termination payment), discounted at the weighted
average interest rate borne by the Outstanding Securities, compounded semi-
annually, or (ii) the sale price of the property so leased multiplied by a
fraction the numerator of which is the remaining base term of the related lease
(expressed in months) and the denominator of which is the base term of such
lease (expressed in months).
"Authenticating Agent" means any Person authorized by the Trustee to
act on behalf of the Trustee to authenticate Securities.
"Beneficial Owner" means, with respect to Global Securities, the
Person who is the beneficial owner of such Securities as reflected on the books
of the Depositary for such Securities or on the books of a Person maintaining an
account with such Depositary (directly or as an indirect participant, in
accordance with the rules of such Depositary).
"Board of Directors" means either the board of directors of the
Company or any duly authorized committee of that board, as the case may be.
"Board Resolution" means a copy of a resolution certified by the
Secretary or an Assistant Secretary of the Company to have been duly adopted by
the Board of Directors and to be in full force
2
<PAGE>
and effect on the date of such certification, and delivered to the Trustee.
"Business Day", when used with respect to any Place of Payment, means
each Monday, Tuesday, Wednesday, Thursday and Friday which is not a day on which
banking institutions in that Place of Payment are authorized or obligated by
law, regulation or executive order to close.
"Certificate of a Firm of Independent Public Accountants" means a
certificate signed by any firm of independent public accountants of recognized
national standing selected by the Company. The term "independent" when used
with respect to any specified firm of public accountants means such a firm which
(1) is in fact independent, (2) does not have any direct financial interest or
any material indirect financial interest in the Company or in any other obligor
upon the Securities of any series or in any affiliate of the Company or of such
other obligor, and (3) is not connected with the Company or such other obligor
or any affiliate of the Company or of such other obligor, as an officer,
employee, promoter, underwriter, trustee, partner, director or person performing
similar functions, but such firm may be the regular auditors employed by the
Company. Whenever it is herein provided that any Certificate of a Firm of
Independent Public Accountants shall be furnished to the Trustee for Securities
of any series, such Certificate shall state that the signer has read this
definition and that the signer is independent within the meaning hereof.
"Commission" means the Securities and Exchange Commission, as from
time to time constituted, created under the Exchange Act, or if at any time
after the execution of this instrument such Commission is not existing and
performing the duties now assigned to it under the Trust Indenture Act, then the
body performing such duties at such time.
"Company" means the Person named as the "Company" in the first
paragraph of this instrument, until a successor Person shall have become such
pursuant to the applicable provisions of this Indenture, and thereafter
"Company" shall mean such successor Person.
"Company Request" or "Company Order" means a written request or order
signed in the name of the Company by any one of its Chairman of the Board, its
President or a Vice President, and by any one of its Treasurer, an Assistant
Treasurer, its Secretary or an Assistant Secretary, and delivered to the
Trustee.
"Consolidated Net Tangible Assets" means the aggregate amount of
assets (less applicable reserves and other properly deductible items) after
deducting therefrom (a) all current liabilities and (b) all goodwill,
tradenames, trademarks, patents,
3
<PAGE>
unamortized debt discount and expense (to the extent included in said aggregate
amount of assets) and other like intangibles, all as set forth on the most
recent consolidated balance sheet of the Company and its consolidated
Subsidiaries and computed in accordance with generally accepted accounting
principles.
"Corporate Trust Office" means the office of the Trustee at which at
any particular time its corporate trust business shall be principally
administered, which office at the date of execution of this Indenture is located
at 450 W. 33rd Street, 15th Floor, New York, New York 10001.
"Corporation" includes corporations, associations, companies and
business trusts.
"Defaulted Interest" has the meaning specified in Section 3.7.
"Depositary" means a clearing agency registered as such under the
Exchange Act, or any successor thereto, which shall in either case be designated
by the Company pursuant to Section 3.1 until a successor Depositary shall have
become such pursuant to the applicable provisions of this Indenture, and
thereafter "Depositary" shall mean or include each Person who is then a
Depositary hereunder, and if at any time there is more than one such Person,
"Depositary" as used with respect to the Securities of any series shall mean the
Depositary with respect to the Securities of that series.
"Discounted Security" means any Security which provides for an amount
(excluding any amounts attributable to accrued but unpaid interest thereon) less
than the principal amount thereof to be due and payable upon a declaration of
acceleration of the Maturity thereof pursuant to Section 5.2.
"Dollars" and the sign "$" mean the currency of the United States of
America as at the time of payment is legal tender for the payment of public and
private debts.
"Event of Default" has the meaning specified in Article V.
"Exchange Act" means the Securities Exchange Act of 1934, as amended.
"Exempted Indebtedness" means as of any particular time the sum of (i)
all then-outstanding indebtedness for borrowed money of the Company and
Restricted Subsidiaries incurred after the date hereof and secured by any
mortgage, security interest, pledge or lien other than those permitted by
paragraph (a) of Section 10.7, and (ii) all Attributable Debt with respect to
Sale and Leaseback Transactions entered into by the Company and Restricted
4
<PAGE>
Subsidiaries after the date hereof other than those permitted by paragraph (a)
of Section 10.8.
"Foreign Currency" means a currency issued by the government of any
country other than the United States of America or any composite currency
(including, without limitation, the European Currency Unit).
"Funded Debt" means any indebtedness of the Company or a Restricted
Subsidiary for borrowed money having a maturity of more than 12 months from the
date such indebtedness was incurred or having a maturity of less than 12 months
but by its terms being renewable or extendable beyond 12 months from the date
such indebtedness was incurred at the option of the obligor.
"Global Security" means a Security evidencing all or part of a series
of Securities which is executed by the Company and authenticated and delivered
to the Depositary or pursuant to the Depositary's instructions, all in
accordance with this Indenture and pursuant to a Company Order, which shall be
registered in the name of the Depositary or its nominee and which shall
represent the amount of uncertificated securities as specified therein.
"Government Obligations" means securities that are (i) direct
obligations of the government which issued the currency in which the Securities
of a particular series are payable or (ii) obligations of a Person controlled or
supervised by and acting as an agency or instrumentality of the government which
issued the currency in which the Securities of such series are payable, the
payment of which is unconditionally guaranteed by such government, which, in
either case, are full faith and credit obligations of such government payable in
such currency and are not callable or redeemable at the option of the issuer
thereof.
"Holder" means a Person in whose name a Security is registered in the
Security Register.
"Indenture" means this instrument as originally executed and as it may
from time to time be supplemented or amended by one or more indentures
supplemental hereto entered into pursuant to the applicable provisions hereof
and shall include the terms of particular series of Securities established as
contemplated by Section 3.1.
"interest", when used with respect to a Discounted Security which by
its terms bears interest only after Maturity, means interest payable after
Maturity.
"Interest Payment Date", when used with respect to any Security, means
the Stated Maturity of an installment of interest on such Security.
5
<PAGE>
"Maturity", when used with respect to any Security, means the date on
which the principal of such Security or an installment of principal becomes due
and payable as therein or herein provided, whether at the Stated Maturity or by
declaration of acceleration, call for redemption or otherwise.
"Officers' Certificate" means a certificate signed by the Chairman of
the Board, the President, a Vice President or the Treasurer, and by the
Secretary or an Assistant Secretary, of the Company, and delivered to the
Trustee.
"Opinion of Counsel" means a written opinion of counsel, who may be
counsel for the Company (including in-house counsel) or the Trustee, and who
shall be acceptable to the Trustee.
"Outstanding", when used with respect to Securities, means, as of the
date of determination, all Securities theretofore authenticated and delivered
under this Indenture, except:
(a) Securities theretofore canceled by the Trustee or delivered to
the Trustee for cancellation;
(b) Securities, or portions thereof, for whose payment or redemption
money in the necessary amount has been theretofore deposited with the
Trustee or any Paying Agent (other than the Company) in trust or set aside
and segregated in trust by the Company (if the Company shall act as its own
Paying Agent) for the Holders of such Securities; provided that if such
Securities are to be redeemed, notice of such redemption has been duly
given pursuant to this Indenture or provision therefor satisfactory to the
Trustee has been made; and Securities, except to the extent provided in
Section 4.3, with respect to which the Company has effected defeasance as
provided in Article IV; and
(c) Securities that have been paid pursuant to Section 3.6 or in
exchange for or in lieu of which other Securities have been authenticated
and delivered pursuant to this Indenture, other than any such Securities in
respect of which there shall have been presented to the Trustee proof
satisfactory to it that such Securities are held by a bona fide purchaser
in whose hands the Securities are valid obligations of the Company;
provided, however, that in determining whether the Holders of the requisite
principal amount of Outstanding Securities have given any request, demand,
authorization, direction, notice, consent or waiver hereunder, (i) Securities
owned by the Company, any obligor upon the Securities or any Affiliate of the
Company, such obligation shall be disregarded and deemed not to be Outstanding,
except that (A) in determining whether the Trustee shall be protected in relying
upon any such request, demand, authorization,
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<PAGE>
direction, notice, consent or waiver, only Securities which the Trustee knows to
be so owned shall be so disregarded and (B) Securities so owned that have been
pledged in good faith may be regarded as Outstanding if the pledgee establishes
to the satisfaction of the Trustee the pledgee's right so to act with respect to
such Securities and that the pledgee is not the Company or any other obligor
upon the Securities or any Affiliate of the Company or such other obligor; and
(ii) the principal amount of any Discounted Security that shall be deemed to be
Outstanding for such purposes shall be the amount of the principal thereof that
would be due and payable as of the date of such determination upon a declaration
of acceleration pursuant to Section 5.2.
"Paying Agent" means any Person authorized by the Company to pay the
principal of (and premium, if any) or interest on any Securities on behalf of
the Company.
"Person" means any individual, corporation, partnership, joint
venture, association, joint-stock company, trust, unincorporated organization or
government or any agency or political subdivision thereof.
"Place of Payment", when used with respect to the Securities of any
series, means the place or places where the principal of (and premium, if any)
and interest on the Securities of that series are payable as specified as
contemplated by Section 3.1.
"Predecessor Security" of any particular Security means every previous
Security evidencing all or a portion of the same debt as that evidenced by such
particular Security; and, for the purposes of this definition, any Security
authenticated and delivered under Section 3.6 in exchange for a mutilated
Security or in lieu of a lost, destroyed or stolen Security shall be deemed to
evidence the same debt as the mutilated, lost, destroyed or stolen Security.
"Principal Property" means any single manufacturing or processing
plant or warehouse (excluding any equipment or personalty located therein)
located in the United States, other than any such plant or warehouse or portion
thereof that the Board of Directors reasonably determines is not of material
importance to the business conducted by the Company and its Subsidiaries as an
entirety.
"Redemption Date", when used with respect to any Security to be
redeemed, means the date fixed for such redemption by or pursuant to this
Indenture.
"Redemption Price", when used with respect to any Security to be
redeemed, means the price at which it is to be redeemed pursuant to this
Indenture.
7
<PAGE>
"Regular Record Date" for the interest payable on any Interest Payment
Date on the Securities of any series means the date specified for that purpose
as contemplated by Section 3.1.
"Required Currency" has the meaning specified in Section 3.12.
"Responsible Officer", when used with respect to the Trustee, means
any officer assigned to the Corporate Trust Office, including any vice
president, assistant vice president, assistant secretary or any other officer of
the Trustee to whom any corporate trust matter is referred because of his or her
knowledge of and familiarity with the particular subject.
"Restricted Subsidiary" means any Subsidiary that owns, operates or
leases one or more Principal Properties.
"Securities" has the meaning specified in the first recital of this
Indenture and more particularly means any Securities authenticated and delivered
under this Indenture.
"Security Register" and "Security Registrar" have the respective
meanings specified in Section 3.5.
"Special Record Date" for the payment of any Defaulted Interest means
a date fixed by the Trustee pursuant to Section 3.7.
"Stated Maturity", when used with respect to any Security or any
installment of principal thereof or interest thereon, means the date specified
in such Security as the fixed date on which the principal of such Security or
such installment of principal or interest is due and payable.
"Subsidiary" means each corporation of which the Company or the
Company and one or more Subsidiaries, or any one or more Subsidiaries, directly
or indirectly own securities entitling the holders thereof to elect a majority
of the directors, either at all times or so long as there is no default or
contingency that permits the holders of any other class or classes of securities
to vote for the election of one or more directors.
"Trustee" means the Person named as the "Trustee" in the first
paragraph of this instrument until a successor Trustee shall have become such
pursuant to the applicable provisions of this Indenture, and thereafter
"Trustee" shall mean such successor Trustee, and if at any time there is more
than one such Person, "Trustee" as used with respect to the Securities of any
series shall mean the Trustee with respect to Securities of that series.
"Trust Indenture Act" means the Trust Indenture Act of 1939, as
amended, as in force at the date as of which this instrument was executed,
except as provided in Section 9.5.
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<PAGE>
"Yield to Maturity", when used with respect to any Discounted
Security, means the yield to maturity, if any, set forth on the face thereof.
SECTION 1.2 Compliance Certificates and Opinions.
------------------------------------
Upon any application or request by the Company to the Trustee to take
any action under any provision of this Indenture, the Company or any obligor on
the Securities shall furnish to the Trustee an Officers' Certificate stating
that all conditions precedent, if any, provided for in this Indenture (including
any covenants compliance with which constitutes a condition precedent) relating
to the proposed action have been complied with and an Opinion of Counsel stating
that in the opinion of such counsel all such conditions precedent, if any, have
been complied with, except that, in the case of any such application or request
as to which the furnishing of such documents is specifically required by any
provision of this Indenture relating to such particular application or request,
no additional certificate or opinion need be furnished.
Every certificate (other than certificates provided pursuant to
Section 10.9) or opinion with respect to compliance with a condition or covenant
provided for in this Indenture shall include:
(a) a statement that each individual signing such certificate or
opinion has read such covenant or condition and the definitions herein
relating thereto;
(b) a brief statement as to the nature and scope of the examination
or investigation upon which the statements or opinions contained in such
certificate or opinion are based;
(c) a statement that, in the opinion of each such individual, he has
made such examination or investigation as is necessary to enable him to
express an informed opinion as to whether or not such covenant or condition
has been complied with; and
(d) a statement as to whether, in the opinion of each such
individual, such condition or covenant has been complied with.
SECTION 1.3 Form of Documents Delivered to Trustee.
--------------------------------------
In any case where several matters are required to be certified by, or
covered by an opinion of, any specified Person, it is not necessary that all
such matters be certified by, or covered by the opinion of, any one such Person,
or that they be so certified or covered by only one document, but one such
Person may certify or give an opinion with respect to some matters and one or
more other such Persons as to other matters, and any such Person
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<PAGE>
may certify or give an opinion as to such matters in one or several documents.
Any certificate or opinion of an officer of the Company may be based,
insofar as it relates to legal matters, upon a certificate or opinion of, or
representations by, counsel, unless such officer knows, or in the exercise of
reasonable care should know, that the certificate or opinion or representations
with respect to the matters upon which his certificate or opinion is based are
erroneous. Any such certificate or Opinion of Counsel may be based, insofar as
it relates to factual matters, upon a certificate or opinion of, or
representations by, an officer or officers of the Company stating that the
information with respect to such factual matters is in the possession of the
Company, unless such counsel knows, or in the exercise of reasonable care should
know, that the certificate or opinion or representations with respect to such
matters are erroneous.
Where any Person is required to make, give or execute two or more
applications, requests, consents, certificates, statements, opinions or other
instruments under this Indenture, they may, but need not, be consolidated and
form one instrument.
SECTION 1.4 Acts of Holders.
---------------
(a) Any request, demand, authorization, direction, notice, consent,
waiver or other action provided by this Indenture to be given or taken by
Holders may be embodied in and evidenced by one or more instruments of
substantially similar tenor signed by such Holders in person or by an agent duly
appointed in writing; and, except as herein otherwise expressly provided, such
action shall become effective when such instrument or instruments are delivered
to the Trustee and, where it is hereby expressly required, to the Company. Such
instrument or instruments (and the action embodied therein and evidenced
thereby) are herein sometimes referred to as the "Act" of the Holders signing
such instrument or instruments. Proof of execution of any such instrument or of
a writing appointing any such agent shall be sufficient for any purpose of this
Indenture and (subject to Section 6.1) conclusive in favor of the Trustee and
the Company, if made in the manner provided in this Section.
(b) The fact and date of the execution by any Person of any such
instrument or writing may be proved by the affidavit of a witness of such
execution or by a certificate of a notary public or other officer authorized by
law to take acknowledgments of deeds, certifying that the individual signing
such instrument or writing acknowledged to him the execution thereof. Where
such execution is by a signer acting in a capacity other than his individual
capacity, such certificate or affidavit shall also constitute sufficient proof
of his authority. The fact and date of the execution of any such instrument or
writing, or the authority of
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the Person executing the same, may also be proved in any other manner which the
Trustee deems sufficient.
(c) The ownership of Securities shall be proved by the Security
Register.
(d) Any request, demand, authorization, direction, notice, consent,
waiver or other action by the Holder of any Security shall bind every future
Holder of the same Security or the Holder of every Security issued upon the
transfer thereof or in exchange therefor or in lieu thereof, in respect of
anything done, suffered or omitted to be done by the Trustee, any Paying Agent
or the Company in reliance thereon, whether or not notation of such action is
made upon such Security.
SECTION 1.5 Notices, etc., to Trustee and Company.
-------------------------------------
Any request, demand, authorization, direction, notice, consent, waiver
or Act of Holders or other document provided or permitted by this Indenture to
be made upon, given or furnished to, or filed with,
(a) the Trustee by any Holder or by the Company shall be sufficient
for every purpose hereunder if made, given, furnished or filed, in writing,
to or with the Trustee at its principal Corporate Trust Office, Attention:
Corporate Trust Administration; or
(b) the Company by the Trustee or by any Holder shall be sufficient
for every purpose (except as provided in Section 5.1(d)) hereunder if in
writing and mailed, first-class postage prepaid, to the Company addressed
to it at 9300 Ashton Road, Philadelphia, Pennsylvania 19136, Attention:
Secretary; or at any other address previously furnished in writing to the
Trustee by the Company.
SECTION 1.6 Notice to Holders; Waiver.
-------------------------
Where this Indenture provides for notice to Holders of any event, such
notice shall be sufficiently given (unless otherwise herein expressly provided)
if in writing and mailed, first-class postage prepaid, to each Holder affected
by such event, at his address as it appears in the Security Register, not later
than the latest date, and not earlier than the earliest date, prescribed for the
giving of such notice. In any case where notice to Holders is given by mail,
neither the failure to mail such notice, nor any defect in any notice so mailed,
to any particular Holder shall affect the sufficiency of such notice with
respect to other Holders. Any notice when mailed to a Holder in the aforesaid
manner shall be conclusively deemed to have been received by such Holder whether
or not actually received by such Holder. Where this Indenture provides for
notice in any manner, such notice may be
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waived in writing by the Person entitled to receive such notice, either before
or after the event, and such waiver shall be the equivalent of such notice.
Waivers of notice by Holders shall be filed with the Trustee, but such filing
shall not be a condition precedent to the validity of any action taken in
reliance upon such waiver.
In case by reason of the suspension of regular mail service or by
reason of any other cause, it shall be impracticable to mail notice of any event
as required by any provision of this Indenture, then any method of giving such
notice as shall be satisfactory to the Trustee shall be deemed to be a
sufficient giving of such notice.
SECTION 1.7 Conflict with Trust Indenture Act.
---------------------------------
If any provision hereof limits, qualifies or conflicts with the duties
imposed by any of Sections 310 through 317, inclusive, of the Trust Indenture
Act through the operation of Section 318(c) thereof, such imposed duties shall
control.
SECTION 1.8 Effect of Headings and Table of Contents.
----------------------------------------
The Article and Section headings herein and the Table of Contents are
for convenience only and shall not affect the construction hereof.
SECTION 1.9 Successors and Assigns.
----------------------
All covenants and agreements in this Indenture by the Company shall
bind its successors and assigns, whether so expressed or not.
SECTION 1.10 Separability Clause.
-------------------
In case any provision in this Indenture or in the Securities shall be
invalid, illegal or enforceable, the validity, legality and enforceability of
the remaining provisions shall not in any way be affected or impaired thereby.
SECTION 1.11 Benefits of Indenture.
---------------------
Nothing in this Indenture or in the Securities, express or implied,
shall give to any Person (other than the parties hereto and their successors
hereunder, any Paying Agent and, the Holders) any benefit or any legal or
equitable right, remedy or claim under this Indenture.
SECTION 1.12 Governing Law.
-------------
This Indenture and the Securities shall be governed by and construed
in accordance with the laws of the State of New York.
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SECTION 1.13 Legal Holidays.
--------------
In any case where any Interest Payment Date, Redemption Date or Stated
Maturity of any Security shall not be a Business Day at any Place of Payment,
then (notwithstanding any other provision of this Indenture or of the
Securities) payment of interest or principal (and premium, if any) need not be
made on such date, but may be made on the next succeeding Business Day at such
Place of Payment with the same force and effect as if made on the Interest
Payment Date or Redemption Date, or at the Stated Maturity, and no interest
shall accrue with respect to such payment for the period from and after such
Interest Payment Date, Redemption Date or Stated Maturity, as the case may be,
to such next succeeding Business Day.
SECTION 1.14 Certain Matters Relating to Currencies.
--------------------------------------
Whenever any action or Act is to be taken hereunder by the Holders of
Securities denominated in different currencies or currency units, then for
purposes of determining the principal amount of Securities held by such Holders,
the aggregate principal amount of the Securities denominated in a foreign
currency or currency unit shall be deemed to be that amount of Dollars that
could be obtained for such principal amount on the basis of a spot rate of
exchange specified to the Trustee for such series in an Officers' Certificate
for such Foreign Currency or currency unit into Dollars as of the date the
taking of such action or Act by the Holders of the requisite percentage in
principal amount of the Securities is evidenced to such Trustee.
The Trustee shall segregate moneys, funds and accounts held by the
Trustee in one currency or currency unit from any moneys, funds or accounts held
in any other currencies or currency units, notwithstanding any provision herein
that would otherwise permit the Trustee to commingle such amounts.
SECTION 1.15 Indenture and Securities Solely Corporate Obligations.
-----------------------------------------------------
No recourse for the payment of the principal of or premium, if any, or
interest on any Security, or for any claim based thereon, and no recourse under
or upon any obligation, covenant or agreement of the Company in this Indenture
or in any supplemental indenture, or in any Security, or because of the creation
of any indebtedness represented thereby, shall be had against any incorporator,
stockholder, officer or director, as such, past, present or future, of the
Company or of any successor corporation, either directly or through the Company
or any successor corporation, whether by virtue of any constitution, statute or
rule of law, or by the enforcement of any assessment or penalty or otherwise; it
being expressly understood that all such liability is hereby expressly waived
and released as a condition
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of, and as a consideration for the execution of this Indenture and the issue of
the Securities.
SECTION 1.16 Execution in Counterparts
-------------------------
This Indenture may be signed in any number of counterparts with the
same effect as if the signatures to each counterpart were upon a single
instrument, and all such counterparts together shall be deemed an original of
this Indenture.
ARTICLE II
SECURITY FORMS
SECTION 2.1 Forms Generally.
---------------
The Securities of each series shall be in substantially the form set
forth in this Article, or in such other form as shall be established by or
pursuant to a Board Resolution or in one or more indentures supplemental hereto,
in each case with such appropriate insertions, omissions, substitutions and
other variations as are required or permitted by this Indenture, and may have
such letters, numbers or other marks of identification and such legends or
endorsements placed thereon as may be required to comply with the rules of any
securities exchange or as may, consistently herewith, be determined by the
officers executing such Securities, as evidenced by their execution of the
Securities. If the form of Securities of any series is established by action
taken pursuant to a Board Resolution, a copy of an appropriate record of such
action shall be certified by the Secretary or an Assistant Secretary of the
Company and delivered to the Trustee at or prior to the delivery of the Company
Order contemplated by Section 3.3 for the authentication and delivery of such
Securities.
The Trustee's certificates of authentication shall be in substantially
the form set forth in this Article.
The definitive Securities shall be printed, lithographed or engraved
or produced by any combination of these methods or may be produced in any other
manner permitted by the rules of any securities exchange on which the Securities
may be listed, all as determined by the officers executing such Securities, as
evidenced by their execution of such Securities.
SECTION 2.2 Form of Face of Security.
------------------------
[If the Security is a Discounted Security, insert -- FOR PURPOSES OF
----------------------------------------------------
SECTION 1232 OF THE UNITED STATES INTERNAL REVENUE CODE OF 1986, AS AMENDED, THE
ISSUE PRICE OF THIS SECURITY IS ____% OF ITS PRINCIPAL AMOUNT AND THE ISSUE DATE
IS _____________, 19__.]
[If the Security is a Global Security, insert -- UNLESS AND UNTIL IT
-------------------------------------------------
IS EXCHANGED IN WHOLE OR IN PART FOR SECURITIES IN
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DEFINITIVE FORM, THIS SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE
DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO
THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY
SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR
DEPOSITARY.]
CROWN CORK & SEAL COMPANY, INC.
_______________
[Title of Security]
No. ________ $__________
CROWN CORK & SEAL COMPANY, INC., a Pennsylvania corporation (herein
called the "Company," which term includes any successor corporation under the
Indenture hereinafter referred to), for value received, hereby promises to pay
to ______________________ or registered assigns, the principal sum of ________
Dollars on ______________________, at the office or agency of the Company
referred to below, [If the Security is to bear interest prior to Maturity,
------------------------------------------------------
insert -- , and to pay interest thereon from _____________________ or from the
- ----------
most recent Interest Payment Date to which interest has been paid or duly
provided for, semi-annually on _______________ and _________________ in each
year, commencing ____________________, [at the rate of __% per annum] [Or, if
------
applicable, insert -- at a rate per annum as hereinafter provided], until the
- ----------------------
principal hereof is paid or duly provided for [If applicable, insert --, and (to
------------------------
the extent that the payment of such interest shall be legally enforceable) at
the rate of __% per annum on any overdue principal and premium and on any
overdue installment of interest]. 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 ____________ or _____________
(whether or not a Business Day), as the case may be, next preceding such
Interest Payment Date, and at maturity, to the persons to whom principal is
payable. Any such interest not so punctually paid or duly provided for shall
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 not less then 10
days prior to such Special Record Date, or may be paid at any time in any other
lawful manner not inconsistent with the requirements of any securities exchange
on which the Securities may be listed, and upon such notice as may be required
by such exchange, all as more fully provided in said Indenture.] [If the
------
Security is not to bear interest prior to Maturity, insert -- The principal of
- --------------------------------------------------------------
this Security shall not bear interest except in the
15
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case of a default in payment of principal upon acceleration, upon redemption or
at Stated Maturity and in such case the overdue principal of this Security shall
bear interest at the rate of __% per annum (to the extent that the payment of
such interest shall be legally enforceable), which shall accrue from the date of
such default in payment to the date payment of such principal has been made or
duly provided for. Interest on any overdue principal shall be payable on
demand. Any such interest on any overdue principal that is not so paid on
demand shall bear interest at the rate of __% per annum (to the extent that the
payment of such interest shall be legally enforceable), which shall accrue from
the date of such demand for payment to the date payment of such interest has
been made or duly provided for, and such interest shall also be payable on
demand.]
Payment of the principal of (and premium, if any) and [If applicable,
--------------
insert -- any such] interest on this Security will be made at the office or
- ----------
agency of the Company maintained for that purpose in ____________________, or at
such other office
or agency of the Company as may be maintained for such purpose, in [such coin or
currency of the United States of America as at the time of payment is legal
tender for payment of public and private debts] [If applicable, insert provision
-------------------------------
for payment in Foreign Currency] [If applicable, insert --; provided, however,
- ----------------------------------------------------------- -----------------
that payment of interest may be made at the option of the Company by check drawn
upon any Paying Agent and mailed on or prior to an Interest Payment Date to the
address of the Person entitled thereto as such address shall appear on 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 duly executed
by the Trustee referred to on the reverse hereof by manual signature, this
Security shall not be entitled to any benefit under the Indenture, or be valid
or obligatory for any purpose.
IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed under its corporate seal.
Dated: CROWN CORK & SEAL COMPANY, INC.
By:
-------------------------
16
<PAGE>
[SEAL]
Attest:
- ---------------------
Authorized Signature
SECTION 2.3 Form of Reverse of Security.
---------------------------
This Security is one of a duly authorized issue of Securities of the
Company (herein called the "Securities"), issued and to be issued in one or more
series under an indenture (herein called the "Indenture) dated as of
______________, 1994, between the Company, and Chemical Bank, 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, obligations 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 a series
designated on the face hereof [ , limited in aggregate principal amount to
$__________].
[If applicable, insert -- The Securities of this series are subject to
-------------------------
redemption upon not less than 30 days' notice by mail, [if applicable, insert --
------------------------
(1) on _________ in any year commencing with the year _________ and ending with
the year ____ through operation of the sinking fund for this series at a
Redemption Price equal to 100% of the principal amount, and (2)] at any time [on
or after ____________, 19__], as a whole or in part, at the election of the
Company, at the following Redemption Prices (expressed as percentages of the
principal amount): If redeemed [on or before ____________, ___%, and if
redeemed] during the 12-month period beginning _________ of the years indicated,
Redemption Redemption
Year Price Year Price
---- ---------- ---- ----------
17
<PAGE>
and thereafter at a Redemption Price equal to ____% of the principal amount,
together in the case of any such redemption [if applicable, insert -- (whether
through operation of the sinking fund or otherwise)] with accrued interest to
the Redemption Date, but interest installments whose Stated Maturity is on or
prior to such Redemption Date will be payable to the Holders of such Securities,
or one or more Predecessor Securities, of record at the close of business on the
relevant Record Dates referred to on the face hereof, all as provided in the
Indenture.]
[If applicable, insert -- The Securities of this series are subject to
-------------------------
redemption upon not less than 30 days' notice by mail, (1) on __________ in any
year commencing with the year ____ and ending with the year _____ through
operation of the sinking fund for this series at the Redemption Prices for
redemption through operation of the sinking fund (expressed as percentages of
the principal amount) set forth in the table below, and (2) at any time [on or
after ______], as a whole or in part, at the election of the Company, at the
Redemption Prices for redemption otherwise than through operation of the sinking
fund (expressed as percentages of the principal amount) set forth in the table
below: If redeemed during the 12-month period beginning _____________ of the
years indicated,
Redemption Price
for Redemption Redemption Price for
through Operation Redemption Otherwise
of the than through Operation
Year Sinking Fund of the Sinking Fund
- ---- ----------------- ----------------------
and thereafter at a Redemption Price equal to ____% of the principal amount,
together in the case of any such redemption (whether through operation of the
sinking fund or otherwise)] with accrued interest to the Redemption Date, but
interest installments whose Stated Maturity is on or prior to such Redemption
Date will be payable to the Holders of such Securities, or one or more
Predecessor Securities, of record at the close of business on the relevant
Record Dates referred to on the face hereof, all as provided in the Indenture.]
[Notwithstanding the foregoing, the Company may not, prior to
___________, redeem any Securities of this series as contemplated by [Clause
(2)] of the preceding paragraph as a part of, or in anticipation of, any
refunding operations by the application, directly or indirectly, of moneys
borrowed having an interest cost to the Company (calculated in accordance with
18
<PAGE>
generally accepted financial practice) of less than ____% per annum.]
[The sinking fund for this series provides for the redemption on
___________ in each year beginning with the year _________ and ending with the
year ________ of [not less than] [("mandatory sinking fund) and not more than
$_________________] aggregate principal amount of Securities of this series.
[Securities of this series acquired or redeemed by the Company otherwise than
through [mandatory] sinking fund payments may be credited against subsequent
[mandatory] sinking fund payments otherwise required to be made.]
In the event of redemption of this Security in part only, a new
Security or Securities of this series for the unredeemed portion hereof will be
issued in the name of the Holder hereof upon the cancellation hereof.
[If the Security is not a Discounted Security, -- If an Event of
-------------------------------------------------
Default with respect to Securities of this series shall occur and be continuing,
the principal of the Securities of this series may be declared due and payable
in the manner and with the effect provided in the Indenture.]
[If the Security is a Discounted Security, -- If an Event of Default
---------------------------------------------
with respect to Securities of this series shall occur and be continuing, an
amount of principal of the Securities of this series may be declared due and
payable in the manner and with the effect provided in the Indenture. Such
amount shall be equal to-insert formula for determining the amount. Upon
-----------------------------------------
payment (i) of the amount of principal so declared due and payable and (ii) of
interest on any overdue principal and overdue interest (in each case to the
extent that the payment of such interest shall be legally enforceable), all of
the Company's obligations in respect of the payment of the principal of and
interest, if any, on the Securities of this series shall terminate.]
The Indenture permits, with certain exceptions as therein provided,
the amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Securities of each series to be
affected under the Indenture at any time by the Company and the Trustee with the
consent of the Holders of a majority in aggregate principal amount of the
Securities at the time Outstanding of each series to be affected. The Indenture
also contains provisions permitting the Holders of specified percentages in
aggregate principal amount of the Securities of each series at the time
Outstanding, on behalf of the Holders of all the Securities, 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 or on behalf of the Holder of this Security shall be conclusive and binding
upon such Holder and upon all future Holders of this
19
<PAGE>
Security and of any Security issued upon the registration of transfer hereof or
in hereof or in lieu hereof whether or not notation of such consent or waiver is
made upon this Security.
No reference herein to the Indenture and no provision of this Security
or of the Indenture shall alter or impair the obligation of the Company, which
is absolute and unconditional, to pay the principal of (and premium, if any) 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 on the Security
Register of the Company, upon surrender of this Security for registration of
transfer at the office or agency of the Company maintained for such purpose in
The City of New York or at such other office or agency of the Company as may be
maintained for such purpose, 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 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 $_________ and any integral multiple
thereof. As provided in the Indenture and subject to certain limitations
therein set forth, the Securities are exchangeable for a like aggregate
principal amount of Securities of a different authorized denomination, as
requested by the Holder surrendering the same.
No service charge shall be made to the Holders for any registration of
transfer or exchange or redemption of Securities, but the Company may require
payment of a sum sufficient to cover any tax or other governmental charge
payable in connection therewith.
Prior to and at the time of due presentment of this Security for
registration of transfer, the Company, the Trustee and any agent of the Company
or the Trustee may treat the Person in whose name this Security is registered as
the owner hereof for all purposes, whether or not this Security be overdue, and
neither the Company, the Trustee nor any agent shall be affected by notice to
the contrary.
All terms used in this Security which are defined in the Indenture
shall have the meanings assigned to them in the Indenture.
20
<PAGE>
SECTION 2.4 Form of Trustee's Certificate of Authentication.
-----------------------------------------------
This is one of the Securities referred to in the within-mentioned
Indenture.
CHEMICAL BANK, as Trustee
By
-------------------------
Authorized Officer
ARTICLE III
THE SECURITIES
SECTION 3.1 Amount Unlimited; Issuable in Series.
------------------------------------
The aggregate principal amount of Securities which may be
authenticated and delivered under this Indenture is unlimited.
The Securities may be issued in one or more series. There shall be
established in or pursuant to a Board Resolution, and set forth in an Officers'
Certificate, or established in one or more indentures supplemental hereto, prior
to the issuance of any series:
(1) the title of the Securities of the series (which shall
distinguish the Securities of the series from all other Securities);
(2) any limit upon the aggregate principal amount of the Securities
of the series that may be authenticated and delivered under this Indenture
(except for Securities authenticated and delivered upon registration of
transfer of, or in exchange for, or in lieu of, other Securities of the
series pursuant to Sections 3.4, 3.5, 3.6, 9.6 or 11.7);
(3) the date or dates on which the principal of the Securities of the
series is payable;
(4) the rate or rates at which the Securities of the series shall
bear interest, if any, the date or dates from which such interest shall
accrue, the Interest Payment Dates on which such interest shall be payable
and the Regular Record Date for the interest payable on any Interest
Payment Date;
(5) the place or places where the principal of (and premium, if any)
and interest on Securities of the series shall be payable, any Securities
of that series may be surrendered for exchange, and notices and demands to
or upon
21
<PAGE>
the Company in respect of the Securities of that series and this Indenture
may be served;
(6) the period or periods within which, the price or prices at which,
the currency or currency unit in which, and the terms and conditions upon
which, Securities of the series may be redeemed, in whole or in part, at
the option of the Company;
(7) the obligation, if any, of the Company to redeem or purchase
Securities of the series pursuant to any sinking fund or analogous
provisions or at the option of a Holder thereof and the period or periods
within which, the price or prices at which, the currency or currency unit
in which, and the terms and conditions upon which Securities of the series
shall be redeemed or purchased, in whole or in part, pursuant to such
obligation;
(8) if other than denominations of $1,000 and any integral multiple
thereof, the denominations in which Securities of the series shall be
issuable;
(9) if other than the principal amount thereof, the portion of the
principal amount of Securities of the series that shall be payable upon
declaration of acceleration of the Maturity thereof pursuant to Section
5.2;
(10) any Events of Default in addition to the Events of Default
described in Section 5.1 and any covenants of the Company with respect to
the Securities of the series, whether or not such Events of Default or
covenants are consistent with the Events of Default or covenants set forth
herein;
(11) if other than Dollars, the currency or currency unit in which
payment of the principal of (and premium, if any) or interest, if any, on
the Securities of the series shall be made or in which the Securities of
the series shall be denominated and the particular provisions applicable
thereto;
(12) if the principal of (and premium, if any) and interest, if any,
on the Securities of the series are to be payable, at the election of the
Company or a Holder thereof, in a currency or currency unit other than that
in which such Securities are denominated or stated to be payable, the
period or periods within which, and the terms and conditions upon which,
such election may be made, and the time and manner of determining the
exchange rate between the currency or currency unit in which such
Securities are denominated or stated to be payable and the currency or
currency unit in which such Securities are to be so payable;
22
<PAGE>
(13) if the amount of payments of principal of (and premium, if any)
or interest, if any, on the Securities of the series may be determined with
reference to an index based on a currency or currency unit other than that
in which such Securities are denominated or stated to be payable or any
other index or formula, the manner in which such amounts shall be
determined;
(14) if the Securities of the series do not bear interest, the
applicable dates for purposes of Section 7.1;
(15) if the provisions of Section 4.1 relating to the satisfaction
and discharge of Securities of any series shall apply to the Securities of
such series; or if provisions for the satisfaction and discharge of this
Indenture other than as set forth in Section 4.1 shall apply to the
Securities of the series;
(16) the application, if any, of Section 10.11 to the Securities of
the series;
(17) whether the Securities of the series shall be issued in whole or
in part in the form of one or more Global Securities and, in such case, the
Depositary for such Global Security or Securities; and whether such Global
Security or Securities shall be temporary or permanent; and whether the
Securities of the series shall be issued in bearer form (including
Securities registrable as to principal only) with or without interest
coupons and, if applicable, the exchangeability of such Securities with
Securities issued in fully registered form;
(18) if the Securities of any series may be converted into or
exchanged for any other securities, the terms and conditions of such
conversion or exchange; and
(19) any other terms of the series (which terms shall not be
inconsistent with the provisions of this Indenture).
All Securities of any one series shall be substantially identical
except as to denomination, and except as may otherwise be provided in or
pursuant to such Board Resolution relating thereto. The terms of such
Securities, as set forth above, may be determined by the Company from time to
time if so provided in or established pursuant to the authority granted in a
Board Resolution. All Securities of any one series need not be issued at the
same time, and unless otherwise provided, a series may be reopened for issuance
of additional Securities of such series.
If any of the terms of the series are established by action taken
pursuant to a Board Resolution, a copy of an appropriate record of such action
shall be certified by the
23
<PAGE>
Secretary or an Assistant Secretary of the Company and delivered to the Trustee
at or prior to the delivery of the Officers' Certificate setting forth the terms
of the series.
SECTION 3.2 Denominations.
-------------
The Securities of each series shall be issuable in registered form
without coupons in such denominations as shall be specified as contemplated by
Section 3.1 which may be in Dollars or in any Foreign Currency. In the absence
of any such provisions with respect to the Securities of any series, the
Securities of such series shall be issuable in denominations of $1,000 and any
integral multiple thereof.
SECTION 3.3 Execution, Authentication, Delivery and Dating.
----------------------------------------------
The Securities shall be executed on behalf of the Company by its
Chairman of the Board, its President or one of its Vice Presidents, under its
corporate seal reproduced thereon attested by its Secretary or one of its
Assistant Secretaries. The signature of any of these officers on the Securities
may be manual or facsimile.
Securities bearing the manual or facsimile signatures of individuals
who were at any time the proper officers of the Company shall bind the Company,
notwithstanding that such individuals or any of them have ceased to hold such
offices prior to the authentication and delivery of such Securities or did not
hold such offices on the date of such Securities.
At any time and from time to time after the execution and delivery of
this Indenture, the Company may deliver Securities of any series executed by the
Company to the Trustee for authentication, together with a Company Order for the
authentication and delivery of such Securities; and the Trustee in accordance
with such Company Order shall authenticate and deliver such Securities as
provided in this Indenture and not otherwise. If the form or terms of the
Securities of the series have been established in or pursuant to one or more
Board Resolutions as permitted by Sections 2.1 and 3.1, in authenticating such
Securities, and accepting the additional responsibilities under this Indenture
in relation to such Securities, the Trustee shall be entitled to receive, and
(subject to Section 6.1) shall be fully protected in relying upon, an Opinion of
Counsel stating,
(a) if the form of such Securities has been established by or
pursuant to Board Resolution as permitted by Section 2.1, that such form
has been established in conformity with the provisions of this Indenture;
(b) if the terms of such Securities have been established by or
pursuant to Board Resolution as permitted by
24
<PAGE>
Section 3.1, that such terms have been established in conformity with the
provisions of this Indenture; and
(c) that such Securities, when authenticated and delivered by the
Trustee and issued by the Company in the manner and subject to any
conditions specified in such Opinion of Counsel, will constitute valid and
legally binding obligations of the Company, enforceable in accordance with
their terms, subject to bankruptcy, insolvency, reorganization and other
laws of general applicability relating to or affecting the enforcement of
creditors' rights and to general equity principles.
If such form or terms have been so established, the Trustee shall not be
required to authenticate such Securities if the issue of such Securities
pursuant to this Indenture will affect the Trustee's own rights, duties or
immunities under the Securities and this Indenture or otherwise in a manner
which is not reasonably acceptable to the Trustee.
Each Security shall be dated the date of its authentication.
No Security shall be entitled to any benefit under this Indenture or
be valid or obligatory for any purpose unless there appears on such Security a
certificate of authentication substantially in the form provided for herein duly
executed by the Trustee by manual signature of an authorized officer, and such
certificate upon any Security shall be conclusive evidence, and the only
evidence, that such Security has been duly authenticated and delivered hereunder
and is entitled to the benefits of this Indenture.
SECTION 3.4 Temporary Securities.
--------------------
Pending the preparation of definitive Securities of any series, the
Company may execute, and upon Company Order the Trustee shall authenticate and
deliver, temporary Securities of such series which are printed, lithographed,
typewritten, mimeographed or otherwise produced, in any authorized denomination,
substantially of the tenor of the definitive Securities in lieu of which they
are issued and with such appropriate insertions, omissions, substitutions and
other variations as the officers executing such Securities may determine, as
conclusively evidenced by their execution of such Securities.
If temporary Securities of any series are issued, the Company will
cause definitive Securities of such series to be prepared without unreasonable
delay. After the preparation of definitive Securities of such series, the
temporary Securities of such series shall be exchangeable for definitive
Securities of such series upon surrender of the temporary Securities of such
series at
25
<PAGE>
the office or agency of the Company in a Place of Payment for such series,
without charge to the Holder. Upon surrender for cancellation of any one or
more temporary Securities of any series the Company shall execute and the
Trustee shall authenticate and deliver in exchange therefor a like principal
amount of definitive Securities of such series of authorized denominations.
Until so exchanged the temporary Securities of such series shall in all respects
be entitled to the same benefits under this Indenture as definitive Securities
of such series.
SECTION 3.5 Registration, Registration of Transfer and Exchange.
---------------------------------------------------
The Company shall cause to be kept at the Corporate Trust Office of
the Trustee a register (the register maintained in such office and in any other
office or agency of the Company in a Place of Payment being herein sometimes
referred to as the "Security Register") in which, subject to such reasonable
regulations as the Security Registrar may prescribe, the Company shall provide
for the registration of Securities and of transfers of Securities. The Trustee
is hereby initially appointed "Security Registrar" for the purpose of
registering Securities and transfers of Securities as herein provided.
Upon surrender for registration of transfer of any Security of any
series at the office or agency in a Place of Payment for such series, the
Company shall execute, and the Trustee shall authenticate and deliver, in the
name of the designated transferee or transferees, one or more new Securities of
the same series of any authorized denomination or denominations and of a like
aggregate principal amount.
At the option of the Holder, Securities may be exchanged for other
Securities of the same series of any authorized denomination or denominations
and of a like aggregate principal amount, upon surrender of the Securities to be
exchanged at such office or agency. Whenever any Securities are so surrendered
for exchange, the Company shall execute, and the Trustee shall authenticate and
deliver, the Securities which the Holder making the exchange is entitled to
receive.
All Securities issued upon any registration of transfer or exchange of
Securities shall be the valid obligations of the Company, evidencing the same
debt, and entitled to the same benefits under this Indenture, as the Securities
surrendered upon such registration of transfer or exchange.
Every Security presented or surrendered for registration of transfer,
or for exchange or redemption shall (if so required by the Company or the
Trustee) be duly endorsed, or be accompanied by a written instrument of transfer
in form satisfactory to the Company and the Security Registrar, duly executed by
the Holder thereof or his attorney duly authorized in writing.
26
<PAGE>
No service charge shall be made to a Holder for any registration of
transfer or exchange or redemption of Securities, but the Company may require
payment of a sum sufficient to cover any tax or other governmental charge that
may be imposed in connection with any registration of transfer or exchange of
Securities, other than exchanges pursuant to Section 3.4, 9.6 or 11.7 not
involving any transfer.
The Company shall not be required (a) to issue, register the transfer
of, or exchange, any Security during a period beginning at the opening of
business 15 days before the mailing of a notice of redemption of the Securities
selected for redemption under Section 11.3 and ending at the close of business
on the day of such mailing, or (b) to register the transfer of or exchange any
Security so selected for redemption in whole or in part, except the unredeemed
portion of Securities being redeemed in part.
SECTION 3.6 Mutilated, Destroyed, Lost and Stolen Securities.
------------------------------------------------
If any mutilated Security is surrendered to the Trustee, the Company
shall execute and the Trustee shall authenticate and deliver in exchange
therefor a new Security of the same series and of like tenor and principal
amount and bearing a number not contemporaneously outstanding.
If (i) the Company and the Trustee receive evidence to their
satisfaction of the destruction, loss or theft of any Security, and (ii) there
is delivered to the Company and the Trustee such security or indemnity as may be
required by them to save each of them harmless, then, in the absence of notice
to the Company and the Trustee that such Security has been acquired by a bona
fide purchaser, the Company shall execute and upon its written request the
Trustee shall authenticate and deliver, in exchange for any such mutilated
Security or in lieu of any such destroyed, lost or stolen Security, a new
Security of like tenor and principal amount, bearing a number not
contemporaneously outstanding.
In case any such mutilated, destroyed, lost or stolen Security has
become or is about to become due and payable, the Company in its discretion,
may, instead of issuing a new Security, pay any such Security.
Upon the issuance of any new Securities under this Section, the
Company may require the payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in relation thereto and any other
expenses (including the fees and expenses of the Trustee) connected therewith.
Every new Security of any series issued pursuant to this Section in
lieu of any destroyed, lost or stolen Security shall constitute an original
additional contractual obligation of the Company, whether or not the destroyed,
lost or stolen Security
27
<PAGE>
shall be at any time enforceable by anyone, and shall be entitled to all
benefits of this Indenture equally and proportionately with any and all other
Securities of such series duly issued hereunder.
The provisions of this Section are exclusive and shall preclude (to
the extent lawful) all other rights and remedies with respect to the replacement
or payment of mutilated, destroyed, lost or stolen Securities.
SECTION 3.7 Payment of Interest; Interest Rights Preserved.
----------------------------------------------
Interest on any Security which is payable, and is punctually paid or
duly provided for, on any Interest Payment Date shall be paid to the Person in
whose name the Security (or one or more Predecessor Securities) is registered at
the close of business on the Regular Record Date for such interest.
Any interest on any Security of any series which is payable, but is
not punctually paid or duly provided for, on any Interest Payment Date
("Defaulted Interest") shall forthwith cease to be payable to the Holder on the
Regular Record Date by virtue of having been such Holder, and such Defaulted
Interest may be paid by the Company, at its election in each case, as provided
in clause (a) or (b) below:
(a) The Company may elect to make payment of any Defaulted Interest
to the Persons in whose names the Securities of such series (or their
respective Predecessor Securities) are registered at the close of business
on a Special Record Date for the payment of such Defaulted Interest, which
shall be fixed in the following manner. The Company shall notify the
Trustee in writing of the amount of Defaulted Interest proposed to be paid
on each Security of such series and the date of the proposed payment, and
at the same time the Company shall deposit with the Trustee an amount of
money equal to the aggregate amount proposed to be paid in respect of such
Defaulted Interest or shall make arrangements satisfactory to the Trustee
for such deposit prior to the date of the proposed payment, such money when
deposited to be held in trust for the benefit of the Persons entitled to
such Defaulted Interest as in this Subsection provided. Thereupon the
Trustee shall fix a Special Record Date for the payment of such Defaulted
Interest which shall be not more than 15 days and not less than 10 days
prior to the date of the proposed payment and not less than 10 days after
the receipt by the Trustee of the notice of the proposed payment. The
Trustee shall promptly notify the Company in writing of such Special Record
Date and, in the name and at the expense of the Company, the Trustee shall
cause notice of the proposed payment of such Defaulted Interest and the
Special Record Date therefor to be mailed, first-class postage prepaid, to
each Holder of Securities of such series at his address as it
28
<PAGE>
appears in the Security Register, not less than 10 days prior to such
Special Record Date. Notice of the proposed payment of such Defaulted
Interest and the Special Record Date therefor having been so mailed, such
Defaulted Interest shall be paid to the Person in whose names the
Securities (or their respective Predecessor Securities) are registered at
the close of business on such Special Record Date and shall no longer be
payable pursuant to the following clause (b).
(b) The Company may make payment of any Defaulted Interest on the
Securities of any series in any other lawful manner not inconsistent with
the requirements of any securities exchange on which such Securities may be
listed, and upon such notice as may be required by such exchange, if, after
written notice given by the Company to the Trustee of the proposed payment
pursuant to this clause, such payment shall be deemed practicable by the
Trustee.
Subject to the foregoing provisions of this Section, each Security
delivered under this Indenture upon registration of transfer of or in exchange
for or in lieu of any other Security shall carry the rights to interest accrued
and unpaid, and to accrue, which were carried by such other Security.
SECTION 3.8 Persons Deemed Owners.
---------------------
Prior to and at the time of due presentment of a Security for
registration of transfer, the Company, the Trustee and any agent of the Company
or the Trustee may treat the Person in whose name any Security is registered as
the owner of such Security for the purpose of receiving payment of principal of
(and premium, if any) and (subject to Section 3.7) interest on such Security and
for all other purposes whatsoever, whether or not such Security be overdue, and
neither the Company, the Trustee nor any agent of the Company or the Trustee
shall be affected by notice to the contrary.
SECTION 3.9 Cancellation.
------------
All Securities surrendered for payment, redemption, registration of
transfer or exchange, or for credit against any sinking fund payment, shall be
delivered to the Trustee and shall be promptly cancelled by it. The Company may
at any time deliver to the Trustee for cancellation any Securities previously
authenticated and delivered hereunder which the Company may have acquired in any
manner whatsoever, and all Securities so delivered shall be promptly canceled by
the Trustee. No Securities shall be authenticated in lieu of or in exchange for
any Securities cancelled as provided in this Section, except as expressly
permitted by this Indenture. All cancelled Securities held by the Trustee may
be destroyed and certification of their destruction delivered to the Company,
unless by a Company Order the Company directs that canceled Securities be
returned to it.
29
<PAGE>
SECTION 3.10 Computation of Interest.
-----------------------
Except as otherwise specified as contemplated by Section 3.1 for
Securities of any series, interest on the Securities of each series shall be
computed on the basis of a 360-day year of twelve 30-day months.
SECTION 3.11 Global Securities.
-----------------
If the Company shall establish pursuant to Section 3.1 that the
Securities of a series are to be issued in whole or in part in the form of one
or more Global Securities, then the Company shall execute and the Trustee shall,
in accordance with Section 3.3 and the Company Order with respect to such
series, authenticate and deliver one or more Global Securities in temporary or
permanent form that (i) shall represent and shall be denominated in an amount
equal to the aggregate principal amount of the outstanding Securities of such
series to be represented by one or more Global Securities, (ii) shall be
registered in the name of the Depositary for such Global Security or Securities
or the nominee of such Depositary, (iii) shall be delivered by the Trustee to
the Depositary or pursuant to the Depositary's instruction and (iv) shall bear a
legend substantially to the following effect: "Unless and until it is exchanged
in whole or in part for Securities in definitive form, this Security may not be
transferred except as a whole by the Depositary to a nominee of the Depositary
or by a nominee of the Depositary to the Depositary or another nominee of the
Depositary or by the Depositary or any such nominee to a successor Depositary or
a nominee of such successor Depositary". The Trustee shall deal with the
Depositary and its participants as representatives of the Beneficial Owners of
the Global Securities for purposes of exercising the rights of the Holders
hereunder and the rights of the Beneficial Owners of the Global Securities shall
be limited to those established by law and agreements between such Beneficial
Owners and the Depositary and its participants. Beneficial Owners shall not be
entitled to certificates for Global Securities as to which they are the
Beneficial Owners. Requests and directions from, and votes of, such
representatives shall not be deemed to be inconsistent if they are made with
respect to different Beneficial Owners.
Except as otherwise provided herein, unless and until it is exchanged
in whole or in part for Securities in definitive form, a Global Security
representing all or a portion of the Securities of a series may not be
transferred except as a whole by the Depositary for such series to a nominee of
such Depositary or by a nominee of such Depositary to such Depositary or another
nominee of such Depositary or by such Depositary or any such nominee to a
successor Depositary for such series or a nominee of such successor Depositary.
The Beneficial Owner's ownership of Securities shall be recorded on the records
of a participant of the Depositary that maintains such Beneficial Owner's
account for such purpose and the
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participant's record ownership of such Securities shall be recorded on the
records of the Depositary.
If at any time the Depositary for the Securities of a series notifies
the Company that it is unwilling or unable to continue as Depositary for the
Securities of such series or if at any time the Depositary for Securities of a
series shall no longer be registered or in good standing under the Exchange Act,
or other applicable statute or regulation, and the Company shall not have
appointed a successor Depositary with respect to the Securities of such series,
or if at any time there shall have occurred and be continuing an Event of
Default under this Indenture with respect to the Securities of such series, the
Company will execute, and the Trustee, upon receipt of a Company Order for the
authentication and delivery of definitive Securities of such series, will
authenticate and deliver, Securities of such series in definitive form in an
aggregate principal amount equal to the principal amount of the Global Security
or Securities representing such series in exchange for such Global Security or
Securities.
The Company may at any time and in its sole discretion determine that
the Securities of any series issued in the form of one or more Global Securities
shall no longer be represented by such Global Security or Securities. In such
event, the Company will execute, and the Trustee, upon receipt of a Company
Order for the authentication and delivery of definitive Securities of such
series, will authenticate and deliver, Securities of such series in definitive
form and in an aggregate principal amount equal to the principal amount of the
Global Security or Securities representing such series in exchange for such
Global Security or Securities.
If specified by the Company pursuant to Section 3.1 with respect to
Securities of a series, the Depositary for such series of Securities may
surrender a Global Security for such series of Securities in exchange in whole
or in part for Securities of such series in definitive form on such terms as are
acceptable to the Company and such Depositary. Thereupon, the Company shall
execute and the Trustee shall authenticate and deliver, without charge,
(i) to each Person specified by the Depositary a new Security or
Securities of the same series, of any authorized denomination as requested
by such Person in aggregate principal amount equal to and in exchange for
such Person's beneficial interest in the Global Security; and
(ii) to the Depositary a new Global Security in a denomination equal
to the difference, if any, between the principal amount of the surrendered
Global Security and the aggregate principal amount of Securities delivered
to Holders thereof.
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Upon the exchange of a Global Security for Securities in definitive
form, such Global Security shall be cancelled by the Trustee. Securities issued
in exchange for a Global Security pursuant to this Section 3.11 shall be
registered in such names and in such authorized denominations as the Depositary
for such Global Security, pursuant to instructions from its direct or indirect
participants or otherwise, shall instruct the Trustee. The Trustee shall
deliver such Securities to the persons in whose names such Securities are so
registered.
SECTION 3.12 Payment to be in Proper Currency.
--------------------------------
Each reference in any Securities to any currency shall be of the
essence. In the case of any Securities denominated in any currency (the
"Required Currency") other than Dollars, except as otherwise provided therein,
the obligation of the Company to make any payment of the principal, premium or
interest thereon shall not be discharged or satisfied by any tender by the
Company, or recovery by the Trustee, in any currency other than the Required
Currency, except to the extent that such tender or recovery shall result in the
Trustee timely holding the full amount of the Required Currency then due and
payable. If any such tender or recovery is in a currency other than the
Required Currency, the Trustee may take such actions as it considers appropriate
to exchange such currency for the Required Currency. The costs and risks of any
such exchange, including without limitation the risks of delay and exchange rate
fluctuation, shall be borne by the Company, and the Company shall remain fully
liable for any shortfall or delinquency in the full amount of the Required
Currency then due and payable, and in no circumstances shall the Trustee be
liable therefor. The Company hereby waives any defense of payment based upon
any such tender or recovery which is not in the Required Currency, or which,
when exchanged for the Required Currency by the Trustee, is less than the full
amount of Required Currency then due and payable.
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ARTICLE IV
SATISFACTION AND DISCHARGE
SECTION 4.1 Satisfaction and Discharge of Securities of any
-----------------------------------------------
Series.
-------
(a) The Company shall be deemed to have satisfied and discharged the
entire indebtedness on all the Securities of any particular series (i) that have
become due and payable, or (ii) that by their terms are to become due and
payable at their Stated Maturity within one year or are to be called for
redemption within one year under arrangements satisfactory to the Trustee for
the Securities of such series, or (iii) with respect to which this Section 4.1
is specified to be applicable pursuant to Section 3.1, and, so long as no Event
of Default shall be continuing, the Trustee for the Securities of such series,
upon Company Request and at the expense of the Company, shall execute proper
instruments acknowledging satisfaction and discharge of such indebtedness, when:
(1) either
(A) all Securities of such series theretofore authenticated and
delivered and all coupons, if any, appertaining thereto (other than
(i) any Securities and coupons of such series which have been
destroyed, lost or stolen and which have been replaced or paid as
provided in Section 3.6, (ii) coupons appertaining to Securities
called for redemption and maturing after the relevant Redemption Date
and (iii) Securities and coupons of such series for whose payment
money has theretofore been deposited in trust or segregated and held
in trust by the Company and thereafter repaid to the Company or
discharged from such trust, as provided in the last paragraph of
Section 10.3) have been delivered to such Trustee for cancellation; or
(B) with respect to all Outstanding Securities of such series
described in (A) above (and, in the case of (i) or (ii) below, any
coupons appertaining thereto) not theretofore so delivered to the
Trustee for the Securities of such series for cancellation:
(i) the Company has deposited or caused to be deposited
with such Trustee as trust funds in trust an amount in the
currency or currency unit in which the Securities of such series
are payable (except as otherwise specified pursuant to Section
3.1 for the Securities of such series), sufficient to pay and
discharge the entire indebtedness on all
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such Outstanding Securities of such series and any related
coupons for unpaid principal (and premium, if any) and interest,
if any, to the Stated Maturity or any Redemption Date as
contemplated by Section 4.2, as the case may be; or
(ii) the Company has deposited or caused to be deposited
with such Trustee as obligations in trust such amount of
Government Obligations denominated in the Required Currency as
will, as evidenced by a Certificate of a Firm of Independent
Public Accountants delivered to such Trustee, together with the
predetermined and certain income to accrue thereon (without
consideration of any reinvestment thereof), be sufficient to pay
and discharge when due the entire indebtedness on all such
Outstanding Securities of such series and any related coupons for
unpaid principal (and premium, if any) and interest, if any, to
the Stated Maturity or any Redemption Date as contemplated by
Section 4.2, as the case may be; or
(iii) the Company has deposited or caused to be deposited
with such Trustee in trust an amount equal to the amount referred
to in clause (i) or (ii) in any combination of currency or
currency unit or Government Obligations;
(2) the Company has paid or caused to be paid all other sums payable
with respect to the Securities of such series and any related coupons;
(3) the Company has delivered to such Trustee an Officers'
Certificate and an Opinion of Counsel, each stating that all conditions
precedent herein provided for relating to the satisfaction and discharge of
the entire indebtedness on all Securities of such series and any related
coupons have been complied with; and
(4) if the Securities of such series and any related coupons are not
to become due and payable at their Stated Maturity within one year of the
date of such deposit or are not to be called for redemption within one year
of the date of such deposit under arrangements satisfactory to such Trustee
as of the date of such deposit, then the Company shall have given, not
later than the date of such deposit, an Opinion of Counsel based on the
fact that (x) the Company has received from, or there has been published
by, the Internal Revenue Service a ruling or (y), since the date hereof,
there has been a change in the applicable United States federal income tax
law, in either case to the effect that, and such opinion shall confirm
that, the Holders of the Securities of such series
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will not recognize income, gain or loss for federal income tax purposes as
a result of such deposit, satisfaction, defeasance and discharge and will
be subject to federal income tax on the same amount and in the same manner
and at the same times as would have been the case if such deposit,
satisfaction, defeasance and discharge had not occurred.
(b) Upon the satisfaction of the conditions set forth in this Section
4.1 with respect to all the Securities of all series, the terms and conditions
of such series, including the terms and conditions with respect thereto set
forth in this Indenture, shall no longer be binding upon, or applicable to, the
Company, and the Holders of the Securities of such series and any related
coupons shall look for payment only to the funds or obligations deposited with
the Trustee pursuant to Section 4.1(a)(1)(B); provided, however, that in no
event shall the Company be discharged from (i) any payment obligations in
respect of Securities of such series and any related coupons which are deemed
not to be Outstanding under clause (c) of the definition thereof if such
obligations continue to be valid obligations of the Company under applicable
law, (ii) any obligations under Sections 4.2(b), 6.7, 6.10 and 10.11 and (iii)
any obligations under Sections 3.5 and 3.6 (except that Securities of such
series issued upon registration of transfer or exchange or in lieu of mutilated,
destroyed, lost or stolen Securities and any related coupons shall not be
obligations of the Company) and Sections 3.12, 7.1 and 10.2; and provided,
further, that in the event a petition for relief under the Bankruptcy Act of
1978 or Title 11 of the United States Code or a successor statute is filed and
not discharged with respect to the Company within 91 days after the deposit, the
entire indebtedness on all Securities of such series and any related coupons
shall not be discharged, and in such event the Trustee shall return such
deposited funds or obligations as it is then holding to the Company upon Company
Request.
SECTION 4.2 Application of Trust Money.
---------------------------
(a) All money and obligations deposited with the Trustee for any
series of Securities pursuant to Section 4.1 and Section 10.11 shall be held
irrevocably in trust and shall be made under the terms of an escrow trust
agreement in form satisfactory to such Trustee. Such money and obligations
shall be applied by such Trustee, in accordance with the provisions of the
Securities, any coupons, this Indenture and such escrow trust agreement, to the
payment, either directly or through any Paying Agent (including the Company
acting as its own Paying Agent) as such Trustee may determine, to the Persons
entitled thereto, of the principal of (and premium, if any) and interest, if
any, on the Securities for the payment of which such money and obligations have
been deposited with such Trustee. If Securities of any series are to be
redeemed prior to their Stated Maturity, whether pursuant to any optional
redemption provision or in accordance with any mandatory sinking
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fund requirement, the Company shall make such arrangements as are satisfactory
to the Trustee for any series of Securities for the giving of notice of
redemption by such Trustee in the name, and at the expense, of the Company.
(b) The Company shall pay and shall indemnify the Trustee for any
series of Securities against any tax, fee or other charge imposed on or assessed
against Government Obligations deposited pursuant to Section 4.1 or the interest
and principal received in respect of such Government Obligations other than any
such tax, fee or other charge which by law is payable by or on behalf of
Holders. The obligation of the Company under this Section 4.2(b) shall be
deemed to be an obligation of the Company under Section 6.7(b).
(c) Anything in this Article IV to the contrary notwithstanding, the
Trustee for any series of Securities shall deliver or pay to the Company from
time to time upon Company Request any money or Government Obligations held by it
as provided in Section 4.1 which, as expressed in a Certificate of a Firm of
Independent Public Accountants delivered to such Trustee, are in excess of the
amount thereof which would then have been required to be deposited for the
purpose for which such money or Government Obligations were deposited or
received provided such delivery can be made without liquidating any Government
Obligations.
SECTION 4.3 Satisfaction and Discharge of Indenture.
----------------------------------------
Upon compliance by the Company with the provisions of Section 4.1 as
to the satisfaction and discharge of each series of Securities issued hereunder,
and if the Company has paid or caused to be paid all other sums payable under
this Indenture, this Indenture shall cease to be of any further effect (except
as otherwise provided herein). Upon Company Request and receipt of an Opinion
of Counsel and an Officers' Certificate complying with the provisions of Section
1.2, the Trustees for all series of Securities (at the expense of the Company)
shall execute proper instruments acknowledging satisfaction and discharge of
this Indenture.
Notwithstanding the satisfaction and discharge of this Indenture, any
obligations of the Company under Sections 3.4, 3.5, 3.6, 4.2(b), 6.7, 6.10, 7.1,
10.2 and 10.11 and the obligations of the Trustee for any series of Securities
under Section 4.2 shall survive.
SECTION 4.4 Reinstatement.
--------------
If the Trustee for any series of Securities is unable to apply any of
the amounts (for purposes of this Section 4.4, "Amounts") or Government
Obligations, as the case may be, described in Section 4.1(a)(1)(B)(i) or (ii),
respectively, in accordance
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with the provisions of Section 4.1 by reason of any legal proceeding or any
order or judgment of any court or governmental authority enjoining, restraining
or otherwise prohibiting such application, the Company's obligations under this
Indenture and the Securities of such series and the coupons, if any,
appertaining thereto shall be revived and reinstated as though no deposit had
occurred pursuant to Section 4.1 until such time as the Trustee for such series
is permitted to apply all such Amounts or Government Obligations, as the case
may be, in accordance with the provisions of Section 4.1; provided, however,
that if, due to the reinstatement of its rights or obligations hereunder, the
Company has made any payment of principal of (or premium, if any) or interest,
if any, on such Securities or coupons, the Company shall be subrogated to the
rights of the Holders of such Securities or coupons to receive payment from such
Amounts or Government Obligations, as the case may be, held by the Trustee for
such series.
ARTICLE V
REMEDIES
SECTION 5.1 Events of Default.
------------------
"Event of Default", wherever used herein with respect to Securities of
any series, means any one of the following events (whatever the reason for such
Event of Default and whether it shall be voluntary or involuntary or be effected
by operation of law or pursuant to any judgment, decree or order of any court or
any order, rule or regulation of any administrative or governmental body),
unless such event is either inapplicable to a particular series or it is
specifically deleted or modified in the supplemental indenture creating such
series of Securities or in the form of Security for such series:
(a) default in the payment of any interest on any Security of such
series when it becomes due and payable, and continuance of such default for
a period of 30 days; or
(b) default in the payment of the principal of (or premium, if any,
on) any Security of such series at its Maturity; or
(c) default in the deposit of any sinking fund payment, when and as
due by the terms of a Security of that series; or
(d) default in the performance, or breach, of any covenant or
agreement of the Company in this Indenture (other than a default in the
performance, or a breach, of a covenant or warranty which is specifically
dealt with elsewhere in this Section or which has expressly been included
in this Indenture
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solely for the benefit of a series of Securities other than such series),
and continuance of such default or breach for a period of 60 days after
there has been given, by registered or certified mail, to the Company by
the Trustee or to the Company and the Trustee by the Holders of at least
25% in aggregate principal amount of the Outstanding Securities of such
series a written notice specifying such default or breach and requiring it
to be remedied and stating that such notice is a "Notice of Default"
hereunder; or
(e) the entry by a court having jurisdiction in the premises of (A) a
decree or order for relief in respect of the Company in an involuntary case
or proceeding under any applicable Federal or State bankruptcy, insolvency,
reorganization or other similar law or (B) a decree or order adjudging the
Company a bankrupt or insolvent, or approving as properly filed a petition
seeking reorganization, arrangement, adjustment or composition of or in
respect of the Company under any applicable Federal or State law, or
appointing a custodian, receiver, liquidator, assignee, trustee,
sequestrator or other similar official of the Company or of any substantial
part of its property, or ordering the winding up or liquidation of its
affairs, and the continuance of any such decree or order for relief or any
such other decree or order unstayed and in effect for a period of 60
consecutive days; or
(f) the commencement by the Company of a voluntary case or proceeding
under any applicable Federal or State bankruptcy, insolvency,
reorganization or other similar law or of any other case or proceeding to
be adjudicated a bankrupt or insolvent, or the consent by the Company to
the entry of a decree or order for relief in respect of the Company in an
involuntary case or proceeding under any applicable Federal or State
bankruptcy, insolvency, reorganization or other similar law or to the
commencement of any bankruptcy or insolvency case or proceeding against it,
or the filing by the Company of a petition or answer or consent seeking
reorganization or relief under any applicable Federal or State law, or the
consent by the Company to the filing of such petition or the appointment of
or taking possession by a custodian, receiver, liquidator, assignee,
trustee, sequestrator or similar official of the Company or of any
substantial part of its property, or the making by it of an assignment for
the benefit of creditors, or the admission by the Company in writing of its
inability to pay its debts generally as they become due, or the taking of
corporate action by the Company in furtherance of any such action; or
(g) any other Event of Default provided with respect to Securities of
that series.
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SECTION 5.2 Acceleration of Maturity; Rescission and Annulment.
---------------------------------------------------
If an Event of Default with respect to the Securities of any series at
the time Outstanding occurs and is continuing, then and in every such case the
Trustee or the Holders of not less than 25% in aggregate principal amount of the
Outstanding Securities of such series may, and the Trustee upon the request of
the Holders of not less than 25% in aggregate principal amount of the
Outstanding Securities of such series shall, declare the principal amount (or,
if the Securities of such series are Discounted Securities, such portion of the
principal amount as may be specified in the terms of that series) of all the
Securities of such series to be due and payable immediately, by a notice in
writing to the Company (and to the Trustee if given by the Holders) and, upon
any such declaration such principal amount (or specified amount) shall become
due and payable. If an Event of Default specified in Section 5.1(e) or (f)
occurs and is continuing, then the principal of all the Securities shall ipso
----
facto become and be immediately due and payable without any declaration or other
- -----
act on the part of the Trustee or any Holder.
At any time after such declaration of acceleration with respect to
Securities of any series has been made and before a judgment or decree for
payment of the money due has been obtained by the Trustee as hereinafter in this
Article provided, the Holders of a majority in principal amount of the
Outstanding Securities of such series, by written notice to the Company and the
Trustee, may rescind and annul such declaration and its consequences if:
(i) the Company has paid or deposited with the Trustee a sum
sufficient to pay:
(A) all overdue interest on all Securities of such series,
(B) the principal of (and premium, if any, on) any Securities of
such series which have become due otherwise than by such declaration
of acceleration and interest thereon at the rate or rates prescribed
therefor in such Securities,
(C) to the extent that payment of such interest is lawful,
interest upon overdue interest at the rate or rates prescribed
therefor in such Securities, and
(D) all sums paid or advanced by the Trustee hereunder and the
reasonable compensation, expenses, disbursement and advances of the
Trustee, its agents and counsel;
and
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(ii) all Events of Default with respect to Securities of such series,
other than the non-payment of principal of Securities of such series which
have become due solely by such declaration of acceleration, have been cured
or waived as provided in Section 5.13.
No such rescission shall affect any subsequent default or impair any right
consequent thereon.
SECTION 5.3 Collection of Indebtedness and Suits for Enforcement
----------------------------------------------------
by Trustee.
-----------
The Company covenants that if:
(a) default is made in the payment of any interest on any Security
when such interest becomes due and payable and such default continues for a
period of 30 days, or
(b) default is made in the payment of principal of (or premium, if
any, on) any Security at the Maturity thereof,
the Company will, upon demand of the Trustee, pay to it, for the benefit of the
Holders of such Securities, the whole amount then due and payable on such
Securities for principal (and premium, if any) and interest, with interest upon
the overdue principal (and premium, if any) and, to the extent that payment of
such interest shall be legally enforceable, upon overdue installments of
interest, at the rate borne by the Securities; and, in addition thereto, such
further amount as shall be sufficient to cover the costs and expenses of
collection, including the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel.
If the Company fails to pay such amounts forthwith upon such demand,
the Trustee, in its own name and as trustee of an express trust, may institute a
judicial proceeding for the collection of the sums so due and unpaid and may
prosecute such proceeding to judgment or final decree, and may enforce the same
against the Company or any other obligor upon the Securities and collect the
moneys adjudged or decreed to be payable in the manner provided by law out of
the property of the Company or any other obligor upon the Securities, wherever
situated.
If an Event of Default with respect to Securities of any series occurs
and is continuing, the Trustee may in its discretion proceed to protect and
enforce its rights and the rights of the Holders of Securities of such series by
such appropriate judicial proceedings as the Trustee shall deem most effectual
to protect and enforce any such rights, whether for the specific enforcement for
any covenant or agreement in this Indenture or in aid of the exercise of any
power granted herein, or to enforce any other proper remedy.
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SECTION 5.4 Trustee May File Proofs of Claim.
---------------------------------
In case of the pendency of any receivership, insolvency, liquidation,
bankruptcy, reorganization, arrangement, adjustment, composition or other
judicial proceeding relative to the Company or any other obligor, upon the
Securities or the property of the Company or of such other obligor or their
creditors, the Trustee (irrespective of whether the principal of the Securities
shall then be due and payable as therein expressed or by declaration or
otherwise and irrespective of whether the Trustee shall have made any demand on
the Company for the payment of overdue principal or interest) shall be entitled
and empowered, by intervention in such proceeding or otherwise,
(a) to file and prove a claim for the whole amount of principal (and
premium, if any) and interest owing and unpaid in respect of the Securities
and to file such other papers or documents as may be necessary or advisable
in order to have the claims of the Trustee (including any claim for the
reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel) and of the Holders allowed in such
judicial proceeding, and
(b) to collect and receive any money or other property payable or
deliverable on any such claims and to distribute the same;
and any custodian, receiver, assignee, trustee, liquidator, sequestrator or
similar official in any such judicial proceeding is hereby authorized by each
Holder to make such payments to the Trustee and, in the event that the Trustee
shall consent to the making of such payments directly to the Holders, to pay the
Trustee any amount due it for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel and any other
amounts due the Trustee under Section 6.7.
Nothing herein contained shall be deemed to authorize the Trustee to
authorize or consent to or accept or adopt on behalf of any Holder any plan of
reorganization, arrangement, adjustment or composition affecting the Securities
or the rights of any Holder thereof, or to authorize the Trustee to vote in
respect of the claim of any Holder in any such proceeding.
SECTION 5.5 Trustee May Enforce Claims Without Possession of
------------------------------------------------
Securities.
-----------
All rights of action and claims under this Indenture or the Securities
may be prosecuted and enforced by the Trustee without the possession of any of
the Securities or the production thereof in any proceeding relating thereto, and
any such proceeding instituted by the Trustee shall be brought in its own name
and as trustee of an express trust, and any recovery of judgment shall
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after provision for the payment of the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, be for the
ratable benefit of the Holders of the Securities in respect of which such
judgment has been recovered.
SECTION 5.6 Application of Money Collected.
------------------------------
Any money collected by the Trustee pursuant to this Article shall be
applied in the following order, at the date or dates fixed by the Trustee and,
in case of the distribution of such money on account of principal (or premium,
if any) or interest, upon presentation of the Securities and the notation
thereon of the payment if only partially paid and upon surrender thereof if
fully paid:
FIRST: To the payment of all amounts due the Trustee under Section
6.7; and
SECOND: To the payment of the amounts then due and unpaid upon the
Securities for principal (and premium, if any) and interest, in respect of
which or for the benefit of which such money has been collected, ratably,
without preference or priority of any kind, according to the amounts due
and payable on such Securities for principal (and premium, if any) and
interest.
SECTION 5.7 Limitation on Suits.
--------------------
No Holder of any Securities of any series shall have any right to
institute any proceeding, judicial or otherwise, with respect to this Indenture,
or for the appointment of a receiver or trustee, or for any other remedy
hereunder, unless:
(a) such Holder has previously given written notice to the Trustee
of a continuing Event of Default with respect to the Securities of such
series;
(b) the Holders of not less than 25% in principal amount for the
Outstanding Securities of such series shall have made written request to
the Trustee to institute proceedings in respect of such Event of Default in
its own name as Trustee hereunder;
(c) such Holder or Holders have offered to the Trustee indemnity
satisfactory to the Trustee against the costs, expenses and liabilities to
be incurred in compliance with such request;
(d) the Trustee for 60 days after its receipt of such notice, request
and offer of indemnity has failed to institute any such proceeding; and
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(e) no direction inconsistent with such written request has been
given to the Trustee during such 60-day period by the Holders of a majority
in principal amount of the Outstanding Securities of such series;
it being understood and intended that no one or more Holders shall have any
right in any manner whatever by virtue of, or by availing of, any provision of
this Indenture to affect, disturb or prejudice the rights of any other Holders,
or to obtain or to seek to obtain priority or preference over any other Holders
or to enforce any right under this Indenture, except in the manner herein
provided and for the equal and ratable benefit of all the Holders.
SECTION 5.8 Unconditional Right of Holders to Receive Principal,
----------------------------------------------------
Premium and Interest.
---------------------
Notwithstanding any other provision in this Indenture, the Holder of
any Security shall have the right on the terms stated herein, which is absolute
and unconditional, to receive payment of the principal of (and premium, if any)
and (subject to Section 3.7) interest on such Security on the respective Stated
Maturities expressed in such Security (or, in the case of redemption, on the
Redemption Date) and to institute suit for the enforcement of any such payment,
and such rights shall not be impaired without the consent of such Holder.
SECTION 5.9 Restoration of Rights and Remedies.
-----------------------------------
If the Trustee or any Holder has instituted any proceeding to enforce
any right or remedy under this Indenture and such proceeding has been
discontinued or abandoned for any reason, or has been determined adversely to
the Trustee or to such Holder, then and in every such case the Company, the
Trustee and the Holders shall, subject to any determination in such proceeding,
be restored severally and respectively to their former positions hereunder, and
thereafter all rights and remedies of the Trustee and the Holders shall continue
as though no such proceeding has been instituted.
SECTION 5.10 Rights and Remedies Cumulative.
-------------------------------
Except as provided in Section 3.6, no right or remedy herein conferred
upon or reserved to the Trustee or to the Trustee and the Holders is intended to
be exclusive of any other right or remedy, and every right and remedy shall, to
the extent permitted by law, be cumulative and in addition to every other right
and remedy given hereunder or now or hereafter existing at law or in equity or
otherwise. The assertion or employment of any right or remedy hereunder, or
otherwise, shall not prevent the concurrent assertion or employment of any other
appropriate right or remedy.
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SECTION 5.11 Delay or Omission Not Waiver.
-----------------------------
No delay or omission of the Trustee or of any Holder of any Security
to exercise any right or remedy accruing upon any Event of Default shall impair
any such right or remedy or constitute a waiver of any such Event of Default or
an acquiescence therein. Every right and remedy given by this Article or by law
to the Trustee or the Holders may be exercised from time to time, and as often
as may be deemed expedient, by the Trustee or by the Holders, as the case may
be.
SECTION 5.12 Control by Holders.
-------------------
The Holders of a majority in principal amount of the Outstanding
Securities of any series shall have the right to direct the time, method and
place of conducting any proceeding for any remedy available to the Trustee, or
exercising any trust or power conferred on the Trustee, with respect to the
Securities of such series, provided that
(a) such direction shall not be in conflict with any rule of law or
with this Indenture; and
(b) the Trustee may take any other action deemed proper by the Trustee
which is not inconsistent with such direction.
SECTION 5.13 Waiver of Past Defaults.
------------------------
The Holders of not less than a majority in principal amount of the
Outstanding Securities of any series may on behalf of the Holders of all the
Securities of such series waive any past default hereunder and its consequences,
except a default
(a) in the payment of the principal of (or premium, if any) or
interest on any Security of such series, or
(b) in respect of a covenant or provision hereof which under Article
IX cannot be modified or amended without the consent of the Holder of each
Outstanding Security of such series affected.
Upon any such waiver, such default shall cease to exist, and any Event
of Default arising therefrom shall be deemed to have been cured, for every
purpose of this Indenture, but no such waiver shall extend to any subsequent or
other default or impair any right consequent thereon.
SECTION 5.14 Undertaking for Costs.
----------------------
All parties to this Indenture agree, and each Holder of any Security
by his acceptance thereof shall be deemed to have agreed, that any court may in
its discretion require, in any suit
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for the enforcement of any right or remedy under this Indenture, or in any suit
against the Trustee for any action taken, suffered or omitted by it as Trustee,
the filing by any party litigant in such suit of any undertaking to pay the
costs of such suit, and that such court may in its discretion assess reasonable
costs, including reasonable attorneys' fees, against any party litigant in such
suit, having due regard to the merits and good faith of the claims or defenses
made by such party litigant; but the provisions of this Section shall not apply
to any suit instituted by the Trustee, to any suit instituted by any Holder, or
group of Holders, holding in the aggregate more than 10% in principal amount of
the Outstanding Securities, or to any suit instituted by any Holder for the
enforcement of the payment of the principal of (or premium, if any) or interest
on any Security on or after the respective Stated Maturities expressed in such
Security (or, in the case of redemption, on or after the Redemption Date).
SECTION 5.15 Waiver of Stay or Extension Laws.
---------------------------------
The Company covenants (to the extent that it may lawfully do so) that
it will not at any time insist upon, or plead, or in any manner whatsoever claim
or take the benefit or advantage of, any stay or extension law wherever enacted,
now or at any time hereafter in force, which may affect the covenants or the
performance of this Indenture; and the Company (to the extent that it may
lawfully do so) hereby expressly waives all benefit or advantage of any such
law, and covenants that it will not hinder, delay or impede the execution of any
power herein granted to the Trustee, but will suffer and permit the execution of
every such power as though no such law had been enacted.
ARTICLE VI
THE TRUSTEE
SECTION 6.1 Certain Duties and Responsibilities.
------------------------------------
(a) Except during the continuance of an Event of Default,
(1) the Trustee undertakes to perform such duties and only such duties
as are specifically set forth in this Indenture or the Trust Indenture Act,
and no implied covenants or obligations shall be read into this Indenture
against the Trustee; and
(2) in the absence of bad faith on its part, the Trustee may
conclusively rely, as to the truth of the statements and the correctness of
the opinions expressed therein, upon certificates or opinions furnished to
the Trustee and conforming to the requirements of this Indenture; but in
the
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case of any such certificates or opinions which by provision hereof are
specifically required to be furnished to the Trustee, the Trustee shall be
under a duty to examine the same to determine whether or not they conform
to the requirements of this Indenture.
(b) In case an Event of Default has occurred and is continuing, the
Trustee shall exercise such of the rights and powers vested in it by this
Indenture, and use the same degree of care and skill in their exercise, as a
prudent man would exercise or use under the circumstances in the conduct of his
own affairs.
(c) No provision of this Indenture shall be construed to relieve the
Trustee from liability for its own negligent action, its own negligent failure
to act, or its own willful misconduct, except that
(1) this Subsection (c) shall not be construed to limit the
effect of Subsection (a) of this Section;
(2) the Trustee shall not be liable for any error of judgment
made in good faith by a Responsible Officer, unless it shall be proved
that the Trustee was negligent in ascertaining the pertinent facts;
(3) the Trustee shall not be liable with respect to any action
taken or omitted to be taken by it in good faith in accordance with
the direction of the Holders of a majority in principal amount of the
Outstanding Securities of any series, determined as provided in
Section 5.12, relating to the time, method and place of conducting any
proceeding for any remedy available to the Trustee, or exercising any
trust or power conferred upon the Trustee, under this Indenture with
respect to such series; and
(4) no provision of this Indenture shall require the Trustee to
expend or risk its own funds or otherwise incur any financial
liability in the performance of any of its duties hereunder, or in the
exercise of any of its rights or powers, if it shall have reasonable
grounds for believing that repayment of such funds or adequate
indemnity against such risk or liability is not reasonably assured to
it.
(d) Whether or not therein expressly so provided, every provision of
this Indenture relating to the conduct or affecting the liability of or
affording protection to the Trustee shall be subject to the provisions of this
Section.
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SECTION 6.2 Notice of Defaults.
-------------------
Within 90 days after the occurrence of any default hereunder with
respect to the Securities of any series, the Trustee shall transmit by mail to
all Holders of Securities of such series, as their names and addresses appear in
the Security Register, notice of such default hereunder known to the Trustee,
unless such default shall have been cured or waived; provided, however, that,
except in the case of a default in the payment of the principal of (or premium,
if any) or interest on any Security of such series or in the payment of any
sinking fund installment with respect to Securities, the Trustee shall be
protected in withholding such notice if and so long as a trust committee of
Responsible Officers of the Trustee in good faith determines that the
withholding of such notice is in the interest of the Holders; and provided,
further, that in the case of any default of the character specified in Section
5.1(d) no such notice to Holders shall be given until at least 60 days after the
occurrence thereof. For the purpose of this Section, the term "default" means
any event which is, or after notice or lapse of time or both would become, an
Event of Default.
SECTION 6.3 Certain Rights of Trustee.
--------------------------
Subject to the provisions of Section 6.1:
(a) the Trustee may rely and shall be protected in acting or
refraining from acting upon any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order,
bond, debenture, note, other evidence of indebtedness or other paper or
document believed by it to be genuine and to have been signed or presented
by the proper party or parties;
(b) any request or direction of the Company mentioned herein shall be
sufficiently evidenced by a Company Request or Company Order and any
resolution of the Board of Directors may be sufficiently evidenced by a
Board Resolution;
(c) whenever in the administration of this Indenture the Trustee shall
deem it desirable that a matter be proved or established prior to taking,
suffering or omitting any action hereunder, the Trustee (unless other
evidence be herein specifically prescribed) may, in the absence of bad
faith on its part, rely upon an Officers' Certificate and Opinion of
Counsel;
(d) the Trustee may consult with counsel and the written advice of
such counsel or any Opinion of Counsel shall be full and complete
authorization and protection in respect of any action taken, suffered or
omitted by it hereunder in good faith and in reliance thereon;
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(e) the Trustee shall be under no obligation to exercise any of the
rights or powers vested in it by this Indenture at the request or direction
of any of the Holders pursuant to this Indenture, unless such Holders shall
have offered to the Trustee reasonable security or indemnity against the
costs, expenses and liabilities which might be incurred by it in compliance
with such request or direction;
(f) the Trustee shall not be bound to make any investigation into the
facts or matters stated in any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order,
bond, debenture, note, other evidence or indebtedness or other paper or
document, but the Trustee, in its discretion, may make such further inquiry
or investigation into such facts or matters as it may see fit, and, if the
Trustee shall determine to make such further inquiry or investigation, it
shall be entitled to examine the books, records and premises of the
Company, personally or by agent or attorney; and
(g) the Trustee may execute any of the trusts or powers hereunder or
perform any duties hereunder either directly or by or through agents or
attorneys.
SECTION 6.4 Not Responsible for Recitals or Issuance of
-------------------------------------------
Securities.
-----------
The recitals contained herein, and in the Securities, except the
Trustee's certificates of authentication, shall be taken as the statements of
the Company and neither the Trustee nor any authenticating agent assumes any
responsibility for their correctness. The Trustee makes no representations as
to the validity or sufficiency of this Indenture or of the Securities. Neither
the Trustee nor any Authenticating Agent shall be accountable for the use or
application by the Company of Securities or the proceeds thereof.
SECTION 6.5 May Hold Securities.
--------------------
The Trustee, any Authenticating Agent, any Paying Agent, Security
Registrar or any other agent of the Company, in its individual or any other
capacity, may become the owner or pledgee of Securities, and, subject to
Sections 6.8 and 6.13, may otherwise deal with the Company with the same rights
it would have if it were not Trustee, Authenticating Agent, Paying Agent,
Security Registrar or such other agent.
SECTION 6.6 Money Held in Trust.
--------------------
Money held by the Trustee in trust hereunder need not be segregated
from other funds except to the extent required by law. The Trustee shall be
under no liability for interest on any money
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received by it hereunder except as otherwise agreed with the Company.
SECTION 6.7 Compensation and Reimbursement.
-------------------------------
The Company agrees:
(a) to pay to the Trustee from time to time reasonable compensation
for all services rendered by it hereunder (which compensation shall not be
limited by any provision of law in regard to the compensation of a trustee
of an express trust);
(b) to reimburse the Trustee upon its request for all reasonable
expenses, disbursements and advances incurred or made by the Trustee in
accordance with any provision of this Indenture (including the reasonable
compensation and the expenses and disbursements of its agents and counsel),
except any such expense, disbursement or advance as may be attributable to
its negligence or bad faith; and
(c) to indemnify the Trustee for, and to hold it harmless against, any
loss, liability or expense incurred without negligence or bad faith on its
part, arising out of or in connection with the acceptance or administration
of this trust, including the costs and expenses of defending itself against
any claim or liability in connection with the exercise or performance of
any of its powers or duties hereunder.
SECTION 6.8 Qualification of Trustee; Conflicting Interests.
------------------------------------------------
The Trustee shall be subject to the provisions of Section 310(b) of
the Trust Indenture Act during the period of time required thereby. Nothing
herein shall prevent the Trustee from filing with the Commission the application
referred to in the penultimate paragraph of Section 310(b) of the Trust
Indenture Act. In determining whether the Trustee has a conflicting interest as
defined in Section 310(b) of the Trust Indenture Act with respect to the
securities of any series, there shall be excluded securities of any particular
series of securities other than that series.
SECTION 6.9 Corporate Trustee Required; Eligibility.
----------------------------------------
There shall at all times be a Trustee hereunder which shall be:
(i) a corporation organized and doing business under the laws of the
United States of America, any state thereof, or the District of Columbia,
authorized under such laws to exercise corporate trust powers, and subject
to supervision or examination by Federal or State authority, or
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(ii) a corporation or other Person organized and doing business under
the laws of a foreign government that is permitted to act as Trustee
pursuant to a rule, regulation, or other order of the Commission,
authorized under such laws to exercise corporate trust powers, and subject
to supervision or examination by authority of such foreign government or a
political subdivision thereof substantially equivalent to supervision or
examination applicable to United States institutional trustees,
having a combined capital and surplus of at least $50,000,000. If such
corporation publishes reports of condition at least annually, pursuant to law or
to the requirements of the aforesaid supervising or examining authority, then
for the purposes of this Section, the combined capital and surplus of such
corporation shall be deemed to be its combined capital and surplus as set forth
in its most recent report of condition so published. No obligor upon the
Securities or a Person directly or indirectly controlling, controlled by, or
under common control with such obligor shall serve as Trustee upon the
Securities. If at any time the Trustee shall cease to be eligible in accordance
with the provisions of this Section, it shall resign immediately in the manner
and with the effect hereinafter specified in this Article.
SECTION 6.10 Resignation and Removal; Appointment of Successor.
--------------------------------------------------
(a) No resignation or removal of the Trustee and no appointment of a
successor Trustee pursuant to this Article shall become effective until the
acceptance of appointment by the successor Trustee under Section 6.11.
(b) The Trustee may resign at any time with respect to the Securities
of one or more series by giving written notice thereof to the Company. If an
instrument of acceptance by a successor Trustee shall not have been delivered to
the Trustee within 30 days after the giving of such notice of resignation, the
resigning Trustee may petition any court of competent jurisdiction for the
appointment of a successor Trustee with respect to the Securities of such
series.
(c) The Trustee may be removed at any time with respect to the
Securities of any series by an Act of the Holders of a majority in principal
amount of the Outstanding Securities of such series, delivered to the Trustee
and to the Company.
(d) If at any time:
(1) the Trustee shall fail to comply with Section 310(b) of the
Trust Indenture Act pursuant to Section 6.8 hereof after written request
therefor by the Company or by any Holder who has been a bona fide Holder of
a Security for at least six months unless the Trustee's duty to resign is
stayed
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in accordance with Section 310(b) of the Trust Indenture Act, or
(2) the Trustee shall cease to be eligible under Section 6.9 and
shall fail to resign after written request therefor by the Company or by
any such Holder, or
(3) the Trustee shall become incapable of acting or shall be
adjudged a bankrupt or insolvent, or a receiver of the Trustee or of its
property shall be appointed or any public officer shall take charge or
control of the Trustee or of its property or affairs for the purpose of
rehabilitation, conservation or liquidation,
then, in any case, (i) the Company by a Board Resolution may remove the Trustee,
or (ii) subject to Section 5.14, the Holder of any Security who has been a bona
fide Holder of a Security for at least six months may, on behalf of himself and
all others similarly situated, petition any court of competent jurisdiction for
the removal of the Trustee and the appointment of a successor Trustee.
(e) If the Trustee shall resign, be removed or become incapable of
acting, or if a vacancy shall occur in the office of Trustee for any cause, with
respect to the Securities of any one or more series, the Company, by a Board
Resolution, shall promptly appoint a successor Trustee with respect to the
securities of such series and shall comply with the applicable requirements of
Section 6.11. If, within one year after such resignation, removal or
incapability, or the occurrence of such vacancy, a successor Trustee with
respect to the Securities of any series shall be appointed by Act of the Holders
of a majority in principal amount of the Outstanding Securities of such series
delivered to the Company and the retiring Trustee, the successor Trustee so
appointed shall, forthwith upon its acceptance of such appointment in accordance
with the applicable requirements of Section 6.11, become the successor Trustee
and supersede the successor Trustee appointed by the Company. If no successor
Trustee with respect to the Securities of any series shall have been so
appointed by the Company or the Holders of such Securities and accepted
appointment in the manner required by Section 6.11, the Holder of any Security
of such series who has been a bona fide Holder for at least six months may,
subject to Section 5.14, on behalf of himself and all others similarly situated,
petition any court of competent jurisdiction for the appointment of a successor
Trustee with respect to the Securities of such series.
(f) The Company shall give notice of each resignation and each removal
of the Trustee with respect to the Securities of any series and each appointment
of a successor Trustee with respect to the Securities of any series by mailing
written notice of such event by first-class mail, postage prepaid, to the
Holders of Securities of such series as their names and addresses appear in
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the Security Register. Each notice shall include the name of the successor
Trustee with respect to the Securities of such series and the address of its
Corporate Trust Office.
SECTION 6.11 Acceptance of Appointment by Successor.
---------------------------------------
(a) In case of the appointment hereunder of a successor Trustee with
respect to all Securities, every such successor Trustee appointed hereunder
shall execute, acknowledge and deliver to the Company and to the retiring
Trustee an instrument accepting such appointment, and thereupon the resignation
or removal of the retiring Trustee shall become effective and such successor
Trustee, without any further act, deed or conveyance, shall become vested with
all the rights, powers, trusts and duties of the retiring Trustee; but, on
request of the Company or the successor Trustee, such retiring Trustee shall,
upon payment of its charges, execute and deliver an instrument transferring to
such successor Trustee all the rights, powers, trusts and duties of the retiring
Trustee, and shall duly assign, transfer and deliver to such successor Trustee
all property and money held by such retiring Trustee hereunder.
(b) In case of the appointment hereunder of a successor Trustee with
respect to the Securities of one or more (but not all) series, the Company, the
retiring Trustee and each successor Trustee with respect to the Securities of
one or more series shall execute and deliver an indenture supplemental hereto
wherein each successor Trustee shall accept such appointment and which (1) shall
contain such provisions as shall be necessary or desirable to transfer and
confirm to, and to vest in, each successor Trustee all the rights, powers,
trusts and duties of the retiring Trustee with respect to the Securities of that
or those series to which the appointment of such successor Trustee relates, (2)
if the retiring Trustee is not retiring with respect to all Securities, shall
contain such provisions as shall be deemed necessary or desirable to confirm
that all the rights, powers, trusts and duties of the retiring Trustee with
respect to the Securities of that or those series as to which the retiring
Trustee is not retiring shall continue to be vested in the retiring Trustee, and
(3) shall add to or change any of the provisions of this Indenture as shall be
necessary to provide for or facilitate the administration of the trusts
hereunder by more than one Trustee, it being understood that nothing herein or
in such supplemental indenture shall constitute such Trustees co-trustees of the
same trust and that each such Trustee shall be trustee of a trust or trusts
hereunder separate and apart from any trust or trusts hereunder administered by
any other such Trustee; and upon the execution and delivery of such supplemental
indenture the resignation or removal of the retiring Trustee shall become
effective to the extent provided therein and each such successor Trustee,
without any further act, deed or conveyance, shall become vested with all the
rights, powers, trust and duties of the retiring Trustee with respect to the
Securities
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of that or those series to which the appointment of such successor Trustee
relates; but, on request of the Company or any successor Trustee, such retiring
Trustee shall duly assign, transfer and deliver to such successor Trustee all
property and money held by such retiring Trustee hereunder with respect to the
Securities of that or those series to which the appointment of such successor
Trustee relates.
(c) Upon request of any such successor Trustee, the Company shall
execute any and all instruments for more fully and certainly vesting in and
confirming to such successor Trustee all such rights, powers, trusts and duties
referred to in paragraph (a) or (b) of this Section, as the case may be.
(d) No successor Trustee shall accept its appointment unless at the
time of such acceptance such successor Trustee shall be qualified and eligible
under this Article.
SECTION 6.12 Merger, Conversion, Consolidation or Succession to
--------------------------------------------------
Business.
---------
Any corporation into which the Trustee may be merged or converted or
with which it may be consolidated, or any corporation resulting from any merger,
conversion or consolidation to which the Trustee shall be a party, or any
corporation succeeding to all or substantially all of the corporate trust
business of the Trustee, shall be the successor of the Trustee hereunder,
provided such corporation shall be otherwise qualified and eligible under this
Article, without the execution or filing of any paper or any further act on the
part of any of the parties hereto. In case any Securities shall have been
authenticated, but not delivered, by the Trustee then in office, any successor
by merger, conversion or consolidation to such authenticating Trustee may adopt
such authentication and deliver the Securities so authenticated with the same
effect as if such successor Trustee had itself authenticated such Securities.
SECTION 6.13 Preferential Collection of Claims Against Company.
--------------------------------------------------
The Trustee shall comply with Section 311(a) of the Trust Indenture
Act, excluding any creditor relationship listed in Section 311(b) of that Act.
If the Trustee shall resign or be removed as Trustee, it shall be subject to
Section 311(a) of the Trust Indenture Act to the extent provided therein.
SECTION 6.14 Appointment of Authenticating Agent.
------------------------------------
At any time when any of the Securities remain Outstanding the Trustee
may appoint an Authenticating Agent or Agents with respect to one or more series
of Securities which shall be authorized to act on behalf of the Trustee to
authenticate
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Securities of such series issued upon exchange, registration of transfer or
partial redemption thereof or pursuant to Section 3.6, and Securities so
authenticated shall be entitled to the benefits of this Indenture and shall be
valid and obligatory for all purposes as if authenticated by the Trustee
hereunder. Wherever reference is made in this Indenture to the authentication
and delivery of Securities by the Trustee or the Trustee's certificate of
authentication, such reference shall be deemed to include authentication and
delivery on behalf of the Trustee by an Authenticating Agent and a certificate
of authentication executed on behalf of the Trustee by an Authenticating Agent.
Each Authenticating Agent shall be acceptable to the Company and shall at all
times be a corporation organized and doing business under the laws of the United
States of America, any State thereof or the District of Columbia, authorized
under such laws to act as Authenticating Agent, having a combined capital and
surplus of not less than $50,000,000 and subject to supervision or examination
by Federal or State authority. If such Authenticating Agent publishes reports
of condition at least annually, pursuant to law or to the requirements of said
supervising or examining authority, then for the purpose of this Section, the
combined capital and surplus of such Authenticating Agent shall be deemed to be
its combined capital and surplus as set forth in its most recent report of
condition so published. If at any time an Authenticating Agent shall cease to
be eligible in accordance with the provisions of this Section, such
Authenticating Agent shall resign immediately in the manner and with the effect
specified in this Section.
Any corporation into which an Authenticating Agent may be merged or
converted or with which it may be consolidated, or any corporation resulting
from any merger, conversion or consolidation to which such Authenticating Agent
shall be a party, or any corporation succeeding to the corporate agency or
corporate trust business of an Authenticating Agent, shall continue to be an
Authenticating Agent, provided such corporation shall be otherwise eligible
under this Section, without the execution or filing of any paper or any further
act on the part of the Trustee or the Authenticating Agent.
An Authenticating Agent may resign at any time by giving written
notice thereof to the Trustee and to the Company. The Trustee may at any time
terminate the agency of an Authenticating Agent by giving written notice thereof
to such Authenticating Agent and to the Company. Upon receiving such a notice
of resignation or upon such a termination, or in case at any time such
Authenticating Agent shall cease to be eligible in accordance with the
provisions of this Section, the Trustee may appoint a successor Authenticating
Agent which shall be acceptable to the Company and shall mail written notice of
such appointment by first-class mail, postage prepaid, to all Holders of
Securities of the series with respect to which such Authenticating Agent will
serve, as their names and addresses appear in the Security Register. Any
successor
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Authenticating Agent upon acceptance of its appointment hereunder shall become
vested with all the rights, powers and duties of its predecessor hereunder, with
like effect as if originally named as an Authenticating Agent. No successor
Authenticating Agent shall be appointed unless eligible under the provisions of
this Section.
The Trustee agrees to pay to each Authenticating Agent from time to
time reasonable compensation for its services under this Section, and the
Trustee shall be entitled to be reimbursed for such payments, subject to the
provisions of Section 6.7.
If an appointment with respect to one or more series is made pursuant
to this Section, the Securities of such series may have endorsed thereon, in
addition to the Trustee's certificate of authentication, an alternate
certificate of authentication in the following form:
This is one of the Securities of the series designated therein
referred to in the within-mentioned Indenture.
--------------------------------------
As Trustee
By -----------------------------------
As Authenticating Agent
By -----------------------------------
Authorized Officer
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ARTICLE VII
HOLDERS' LISTS AND REPORTS BY TRUSTEE AND COMPANY
SECTION 7.1 Company to Furnish Trustee Names and Addresses of
-------------------------------------------------
Holders.
--------
The Company will furnish or cause to be furnished to the Trustee:
(a) semi-annually, not later than May 15 and November 15 in each year,
a list, in such form as the Trustee may reasonably require, of the names
and addresses of the Holders as of the preceding April 1 or October 1, as
the case may be; and
(b) at such other times as the Trustee may request in writing, within
30 days after receipt by the Company of any such request, a list of similar
form and content as of a date not more than 15 days prior to the time such
list is furnished;
provided, however, that if and so long as the Trustee shall be the Security
- ------------------
Registrar, no such list need be furnished.
SECTION 7.2 Preservation of Information; Communications to Holders.
-------------------------------------------------------
(a) The Trustee shall preserve, in as current a form as is reasonably
practicable, the names and addresses of Holders contained in the most recent
list furnished to the Trustee as provided in Section 7.1 and the names and
addresses of Holders received by the Trustee in its capacity as Security
Registrar or Paying Agent (if so acting). The Trustee may destroy any list
furnished to it as provided in Section 7.1 upon receipt of a new list so
furnished.
(b) If three or more Holders (hereinafter referred to as "applicants")
apply in writing to the Trustee, and furnish to the Trustee reasonable proof
that each such applicant has owned a Security for a period of at least six
months preceding the date of such application, and such application states that
the applicants desire to communicate with other Holders with respect to their
rights under this Indenture or under the Securities and is accompanied by a copy
of the form of proxy or other communication which such applicants propose to
transmit, then the Trustee shall, within five Business Days after the receipt of
such application, at its election, either
(1) afford such applicants access to the information preserved at the
time by the Trustee in accordance with Section 7.2(a), or
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(2) inform such applicants as to the approximate number of Holders
whose names and addresses appear in the information preserved at the time
by the Trustee in accordance with Section 7.2(a), and as to the approximate
cost of mailing to such Holders the form of proxy or other communication,
if any, specified in such application.
If the Trustee shall elect not to afford such applicants access to
such information, the Trustee shall, upon the written request of such
applicants, mail to each Holder whose name and address appear in the information
preserved at the time by the Trustee in accordance with Section 7.2(a), a copy
of the form of proxy or other communication which is specified in such request,
with reasonable promptness after a tender to the Trustee of the material to be
mailed and of payment, or provision for the payment, of the reasonable expenses
of mailing, unless within five days after such tender, the Trustee shall mail to
such applicants and file with the Commission, together with a copy of the
material to be mailed, a written statement to the effect that, in the opinion of
the Trustee, such mailing would be contrary to the best interests of the Holders
or would be in violation of applicable law. Such written statement shall
specify the basis of such opinion. If the Commission, after opportunity for a
hearing upon the objections specified in the written statement so filed, shall
enter an order refusing to sustain any of such objections or if, after the entry
of an order sustaining one or more of such objections, the Commission shall
find, after notice and opportunity for hearing, that all the objections so
sustained have been met and shall enter an order so declaring, the Trustee shall
mail copies of such material to all such Holders with reasonable promptness
after the entry of such order and the renewal of such tender; otherwise the
Trustee shall be relieved of any obligation or duty to such applicants
respecting their application.
(c) Every Holder of Securities, by receiving and holding the same,
agrees with the Company and the Trustee that neither the Company nor the Trustee
shall be held accountable by reason of the disclosure of any such information as
to the names and addresses of the Holders in accordance with Section 7.2(b),
regardless of the source from which such information was derived, and that the
Trustee shall not be held accountable by reason of mailing any material pursuant
to a request made under Section 7.2(b).
SECTION 7.3 Reports by Trustee.
-------------------
Within 60 days after May 15 of each year commencing with the year
following the first issuance of Securities, the Trustee shall transmit by mail
to all Holders of the Securities of each outstanding series a brief report dated
as of such date that complies with Section 313(a) of the Trust Indenture Act,
but only if such report is required in any year under such Section 313(a) of the
Trust Indenture Act. With respect to each series of
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Securities, the Trustee shall also comply with Sections 313(b) and 313(c) of the
Trust Indenture Act. At any time a report is mailed to the Holders of any
particular series of Securities, a copy of such report shall be filed with the
Commission and with each securities exchange, if any, on which the Securities of
such series are listed. With respect to each series of Securities, the Company
will notify the Trustee when such series of Securities is listed on any
securities exchange.
SECTION 7.4 Reports by Company.
-------------------
The Company shall file such annual and/or periodic reports and
certificates with the Trustee and/or with the Commission and/or with the Holders
of each series of Securities as are required by the provisions of Section 314(a)
of the Trust Indenture Act.
ARTICLE VIII
CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE
SECTION 8.1 Company May Consolidate, etc., Only on Certain Terms.
-----------------------------------------------------
The Company shall not consolidate with or merge into any other Person
or convey, transfer or lease its properties and assets substantially as an
entirety to any Person, and the Company shall not permit any Person to
consolidate with or merge into the Company, unless:
(1) in case the Company shall consolidate with or merge into another
Person or convey, transfer or lease its properties and assets substantially
as an entirety to any Person, the corporation formed by such consolidation
or into which the Company is merged or the Person which acquires by
conveyance or transfer, or which leases, the properties and assets of the
Company substantially as an entirety shall be a corporation organized and
existing under the laws of the United States of America, any State thereof
or the District of Columbia and shall expressly assume, by an indenture
supplemental hereto, executed and delivered to the Trustee, in form
satisfactory to the Trustee, the due and punctual payment of the principal
of (and premium, if any) and interests on all the Securities and the
performance of every covenant of this Indenture on the part of the Company
to be performed or observed;
(2) immediately after giving effect to such transaction, no Event of
Default, and no event which, after notice or lapse of time or both, would
become an Event of Default, shall have happened and be continuing;
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(3) if, as a result of any such consolidation or merger or such
conveyance, transfer or lease, properties or assets of the Company would
become subject to a mortgage, pledge, lien, security interest or other
encumbrance that would not be permitted by this Indenture, the Company or
such successor corporation or Person, as the case may be, shall take such
steps as shall be necessary effectively to secure the Securities equally
and ratably with (or prior to) all indebtedness secured thereby; and
(4) the Company has delivered to the Trustee an Officers' Certificate
and an Opinion of Counsel, each stating that such consolidation, merger,
conveyance, transfer or lease and, if a supplemental indenture is required
in connection with such transaction, such supplemental indenture, comply
with this Article and that all conditions precedent herein provided for
relating to such transaction have been complied with.
SECTION 8.2 Successor Corporation Substituted.
----------------------------------
Upon any consolidation by the Company with or merger by the Company
into any other corporation or any conveyance, transfer or lease of the
properties and assets of the Company substantially as an entirety in accordance
with Section 8.1, the successor corporation formed by such consolidation or into
which the Company is merged or to which such conveyance, transfer or lease is
made shall succeed to, and be substituted for, and may exercise every right and
power of, the Company under this Indenture with the same effect as if such
successor had been named as the Company herein; and thereafter, except in the
case of a lease, the Company shall be discharged from all obligations and
covenants under the Indenture and the Securities.
ARTICLE IX
SUPPLEMENTAL INDENTURES
SECTION 9.1 Supplemental Indentures Without Consent of Holders.
---------------------------------------------------
Without the consent of any Holders, the Company, when authorized by a
Board Resolution, and the Trustee, at any time and from time to time, may enter
into one or more indentures supplemental hereto, in form satisfactory to the
Trustee, for any of the following purposes:
(1) to evidence the succession of another Person to the Company and
the assumption by any such successor of the covenants of the Company herein
and in the Securities; or
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(2) to add to the covenants of the Company for the benefit of the
Holders of all or any series of Securities (and if such covenants are to be
for the benefit of less than all series of Securities, stating that such
covenants are expressly being included solely for the benefit of such
series) or to surrender any right or power herein conferred upon the
Company; or
(3) to add any additional Events of Default with respect to any or all
series of Securities (and, if any such Event of Default applies to fewer
than all series of Securities, stating each series to which such Event of
Default applies); or
(4) to add or change any of the provisions of this Indenture to such
extent as shall be necessary to permit or facilitate the issuance of
Securities in bearer form, registrable or not registrable as to principal,
and with or without interest coupons; or
(5) to change or eliminate any of the provisions of this Indenture,
provided that any such change or elimination shall become effective only
--------
when there is no Security Outstanding of any series created prior to the
execution of such supplemental indenture which is entitled to the benefit
of such provision; or
(6) to establish the form or terms of Securities of any series as
permitted by Sections 2.1 and 3.1; or
(7) to evidence and provide for the acceptance of appointment
hereunder by a successor Trustee with respect to the Securities of one or
more series and to add to or change any of the provisions of this Indenture
as shall be necessary to provide for or facilitate the administration of
the trusts hereunder by more than one Trustee, pursuant to the requirements
of Section 6.11(b); or
(8) to cure any ambiguity, to correct or supplement any provision
herein which may be defective or inconsistent with any other provision
herein, or to make any other provisions with respect to matters or
questions arising under this Indenture; provided that, in each case, such
provisions shall not adversely affect the interests of the Holders of
Securities of any series in any material respect; or
(9) to add to the conditions, limitations and restrictions on the
authorized amount, form, terms or purposes of issue, authentication and
delivery of Securities, as herein set forth, other conditions, limitations
and restrictions thereafter to be observed; or
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(10) to supplement any of the provisions of this Indenture to such
extent as shall be necessary to permit or facilitate the defeasance and
discharge of any series of Securities pursuant to Section 4.1, provided
that any such action shall not adversely affect the interests of the
Holders of Securities of such series and any related coupons or any other
series of Securities in any material respect; or
(11) to comply with the requirements of the Commission in order to
effect or maintain the qualification of this Indenture under the Trust
Indenture Act, as contemplated by Section 9.5 or otherwise.
SECTION 9.2 Supplemental Indentures with Consent of Holders.
------------------------------------------------
With the consent of the Holders of not less than a majority in
aggregate principal amount of the Outstanding Securities of each series affected
by such supplemental indenture, by Act of said Holders delivered to the Company
and the Trustee, the Company, when authorized by a Board Resolution, and the
Trustee may enter into an indenture or indentures supplemental hereto for the
purpose of adding any provisions to or changing in any manner or eliminating any
of the provisions of this Indenture or of modifying in any manner the rights of
the Holders under this Indenture; provided, however, that no such supplemental
indenture shall, without the consent of the Holder of each Outstanding Security
affected thereby:
(a) change the Stated Maturity of the principal of, or any installment
of interest on, any Security, or reduce the principal amount thereof or the
rate of interest thereon or any premium payable upon the redemption
thereof, or reduce the amount of the principal of a Discounted Security
that would be due and payable upon a declaration of acceleration of the
Maturity thereof pursuant to Section 5.2, or change any Place of Payment
where, or the coin or currency in which, any Security or any premium or the
interest thereon is payable, or impair the right to institute suit for the
enforcement of any such payment after the Stated Maturity thereof (or, in
the case of redemption, on or after the Redemption Date); or
(b) reduce the percentage in principal amount of the Outstanding
Securities, the consent of whose Holders is required for any such
supplemental indenture, or the consent of whose Holders is required for any
waiver (of compliance with certain provisions of this Indenture or certain
defaults hereunder and their consequences) provided for in this Indenture;
or
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(c) modify any of the provisions of this Section or Sections 5.13 and
10.10, except to increase any such percentage or to provide that certain
other provisions of this Indenture cannot be modified or waived without the
consent of the Holder of each Outstanding Security affected thereby;
provided, however, that this clause shall not be deemed to require the
consent of any Holder with respect to changes in the references to "the
Trustee" and concomitant changes in this Section and Section 10.10, or the
deletion of this proviso, in accordance with the requirements of Sections
6.11(b) and 9.1(8).
A supplemental indenture which changes or eliminates any covenant or
other provision of this Indenture which has expressly been included solely for
the benefit of one or more particular series of Securities, or which modifies
the rights of the Holders of Securities of such series with respect to such
covenant or other provision, shall be deemed not to affect the rights under this
Indenture of the Holders of Securities of any other series.
Upon the request of the Company, each accompanied by a copy of a Board
Resolution authorizing the execution of any such supplemental indenture, and
upon the filing with the Trustee of evidence of the consent of Holders as
aforesaid, the Trustee shall join with the Company in the execution of such
supplemental indenture.
It shall not be necessary for any Act of Holders under this Section to
approve the particular form of any proposed supplemental indenture, but it shall
be sufficient if such Act shall approve the substance thereof.
SECTION 9.3 Execution of Supplemental Indentures.
-------------------------------------
In executing, or accepting the additional trusts created by, any
supplemental indenture permitted by this Article or the modifications thereby of
the trusts created by this Indenture, the Trustee shall be entitled to receive,
and (subject to Section 6.1) shall be fully protected in relying upon, an
Opinion of Counsel and an Officers' Certificate stating that the execution of
such supplemental indenture is authorized or permitted by this Indenture. The
Trustee may, but shall not be obligated to, enter into any such supplemental
indenture which affects the Trustee's own rights, duties or immunities under
this Indenture or otherwise.
SECTION 9.4 Effect of Supplemental Indentures.
----------------------------------
Upon the execution of any supplemental indenture under this Article,
this Indenture shall be modified in accordance therewith, and such supplemental
indenture shall form a part of this Indenture for all purposes; and every Holder
of Securities
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theretofore or thereafter authenticated and delivered hereunder shall be bound
thereby.
SECTION 9.5 Conformity with Trust Indenture Act.
------------------------------------
Every supplemental indenture executed pursuant to the Article shall
conform to the requirements of the Trust Indenture Act as then in effect.
SECTION 9.6 Reference in Securities to Supplemental Indentures.
---------------------------------------------------
Securities of any series authenticated and delivered after the
execution of any supplemental indenture pursuant to this Article may, and shall
if required by the Trustee, bear a notation in form approved by the Trustee as
to any matter provided for in such supplemental indenture. If the Company shall
so determine, new Securities of any series so modified as to conform, in the
opinion of the Trustee and the Board of Directors, to any such supplemental
indenture may be prepared and executed by the Company and authenticated and
delivered by the Trustee in exchange for Outstanding Securities of such series.
ARTICLE X
COVENANTS
SECTION 10.1 Payment of Principal, Premium and Interest.
-------------------------------------------
The Company covenants and agrees for the benefit of the Holders of
each series of Securities that it will duly and punctually pay the principal of
(and premium, if any) and interest on the Securities in accordance with the
terms of the Securities and this Indenture.
SECTION 10.2 Maintenance of Office or Agency.
--------------------------------
The Company will maintain in each Place of Payment for any series of
Securities, an office or agency where Securities of such series may be presented
or surrendered for payment, where Securities of such series may be surrendered
for registration of transfer or exchange and where notices and demands to or
upon the Company in respect of the Securities of such series and this Indenture
may be served. The office of the Trustee at its Corporate Trust Office or at
the offices or agencies of its agent shall be such office or agency of the
Company, unless the Company shall designate and maintain some other office or
agency for one or more of such purposes. The Company will give prompt written
notice to the Trustee of any change in the location of any such office or
agency. If at any time the Company shall fail to maintain any such required
office or agency or shall fail to furnish the Trustee with the address thereof,
such presentations, surrenders, notices and
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demands may be made or served at the Corporate Trust Office, and the Company
hereby appoints the Trustee as its agent to receive all such presentations,
surrenders, notices and demands.
The Company may from time to time designate one or more other offices
or agencies where the Securities of one or more series may be presented or
surrendered for any or all such purposes, and may from time to time rescind such
designation; provided, however, that no such designation or rescission shall in
any manner relieve the Company of its obligation to maintain an office or agency
in each Place of Payment for Securities of any series for such purposes. The
Company will give prompt written notice to the Trustee of any such designation
or rescission and of any change in the location of any such office or agency.
SECTION 10.3 Money for Security Payments to be Held in Trust.
------------------------------------------------
If the Company shall at any time act as its own Paying Agent, it will,
on or not more than one Business Day before each due date of the principal of
(and premium, if any) or interest on any of the Securities, segregate and hold
in trust for the benefit of the Holders entitled thereto a sum sufficient to pay
the principal (and premium, if any) or interest so becoming due until such sums
shall be paid to such Persons or otherwise disposed of as herein provided, and
will promptly notify the Trustee of its action or failure so to act.
If the Company is not acting as Paying Agent, the Company will, on or
before each due date of the principal of (and premium, if any), or interest on,
any Securities, deposit with a Paying Agent a sum in same day funds sufficient
to pay the principal (and premium, if any) or interest so becoming due, such sum
to be held in trust for the benefit of the Persons entitled to such principal,
premium or interest, and (unless such Paying Agent is the Trustee) the Company
will promptly notify the Trustee of such action or any failure so to act.
If the Company is not acting as Paying Agent, the Company will cause
each Paying Agent other than the Trustee to execute and deliver to the Trustee
an instrument in which such Paying Agent shall agree with the Trustee, subject
to the provisions of this Section, that such Paying Agent will:
(a) hold all sums held by it for the payment of the principal of (and
premium, if any) or interest on Securities in trust for the benefit of the
Persons entitled thereto until such sums shall be paid to such Persons or
otherwise disposed of as herein provided;
(b) give the Trustee notice of any default by the Company (or any
other obligor upon the Securities) in the
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making of any payment of principal (and premium, if any) or interest;
(c) at any time during the continuance of any such default, upon the
written request of the Trustee, forthwith pay to the Trustee all sums so
held in trust by such Paying Agent; and
(d) acknowledge, accept and agree to comply in all aspects with the
provisions of this Indenture relating to the duties, rights and liabilities
of such Paying Agent.
The Company may at any time, for the purpose of obtaining the
satisfaction and discharge of this Indenture or for any other purpose, pay, or
by Company Order direct any Paying Agent to pay, to the Trustee all sums held in
trust by the Company or such Paying Agent, such sums to be held by the Trustee
upon the same trusts as those upon which such sums were held by the Company or
such Paying Agent; and, upon such payment by any Paying Agent to the Trustee,
such Paying Agent shall be released from all further liability with respect to
such money.
Any money deposited with the Trustee or any Paying Agent, or then held
by the Company, in trust for the payment of the principal of (and premium, if
any) or interest on any Security and remaining unclaimed for three years after
such principal (and premium, if any) or interest has become due and payable
shall be paid to the Company on Company Request, or (if then held by the
Company) shall be discharged from such trust; and the Holder of such Security
shall thereafter, as an unsecured general creditor, look only to the Company for
payment thereof, and all liability of the Trustee or such Paying Agent with
respect to such trust money, and all liability of the Company as trustee
thereof, shall thereupon cease; provided, however, that the Trustee or such
Paying Agent, before being required to make any such repayment, may at the
expense of the Company cause to be published once, in a newspaper published in
the English language, customarily published on each Business Day and of general
circulation in the Borough of Manhattan, The City of New York, or mail to each
such Holder or both notice that such money remains unclaimed and that, after a
date specified therein, which shall not be less than 30 days from the date of
such notification, publication or mailing, any unclaimed balance of such money
then remaining will be repaid to the Company.
SECTION 10.4 Corporate Existence.
--------------------
Subject to Article VIII, the Company shall do or cause to be done all
things necessary to preserve and keep in full force and effect the corporate
existence, rights (charter and statutory) and franchises of the Company and each
Subsidiary; provided, however, that the Company shall not be required to
preserve any such right
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or franchise if the Board of Directors shall determine that the preservation
thereof is no longer desirable in the conduct of the business, the Company and
its Subsidiaries as a whole and that the loss thereof is not disadvantageous in
any material respect to the Holders; and provided, further, however, that the
foregoing shall not prohibit a sale, transfer or conveyance of a Subsidiary or
assets of the Company or any Subsidiary in compliance with the terms of this
Indenture.
SECTION 10.5 Maintenance of Properties.
--------------------------
The Company shall cause all properties owned by the Company or any
Subsidiary or used or held for use in the conduct of its business or the
business of any Subsidiary to be maintained and kept in good condition, repair
and working order and supplied with all necessary equipment, and will cause to
be made all necessary repairs, renewals, replacements, betterments and
improvements thereof, all as in the judgment of the Company may be necessary so
that the business carried on in connection therewith may be properly and
advantageously conducted at all times; provided, however, that nothing in this
Section shall prevent the Company from discontinuing the maintenance of any of
such properties if such discontinuance is, in the judgment of the Company,
desirable in the conduct of its business or the business of any Subsidiary and
not disadvantageous in any material respect to the Holders.
SECTION 10.6 Payment of Taxes and Other Claims.
----------------------------------
The Company will pay or discharge or cause to be paid or discharged,
before the same shall become delinquent, (i) all taxes, assessments and
governmental charges levied or imposed upon the Company or any Subsidiary or
upon the income, profits or property of the Company or any Subsidiary, and (ii)
all lawful claims for labor, materials and supplies which, if unpaid, might by
law become a lien upon the property of the Company or any Subsidiary; provided,
however, that the Company shall not be required to pay or discharge or cause to
be paid or discharged any such tax, assessment, charge or claim whose amount,
applicability or validity is being contested in good faith by appropriate
proceedings.
SECTION 10.7 Limitations on Liens.
---------------------
(a) The Company will not, and will not permit any Restricted
Subsidiary to, hereafter, create, assume or suffer to exist any mortgage,
security interest, pledge or lien (herein referred to as a "Lien") of or upon
any Principal Property, or any shares of capital stock or evidences of
indebtedness for borrowed money issued by any Restricted Subsidiary and owned by
the Company or any Restricted Subsidiary, whether owned at the date of this
Indenture or thereafter acquired, without making effective provision, and the
Company in such case will make or cause to be made effective provision, whereby
the Securities shall be secured
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by such Lien equally and ratably with any and all other indebtedness or
obligations thereby secured, so long as such indebtedness or obligations shall
be so secured; provided, however, that the foregoing shall not apply to any of
the following:
(1) Liens that exist on the date of this Indenture;
(2) Liens on property, shares of capital stock or evidences of
indebtedness of any corporation existing at the time such corporation
becomes a Subsidiary;
(3) Liens in favor of the Company or any Subsidiary;
(4) Liens in favor of governmental bodies to secure progress, advance
or other payments pursuant to contract or statute or indebtedness incurred
to finance all or a part of construction of or improvements to property
subject to such Liens;
(5) Liens (i) on property, shares of capital stock or evidences of
indebtedness for borrowed money existing at the time of acquisition thereof
(including acquisition through merger or consolidation), and construction
and improvement Liens that are entered into within one year from the date
of such construction or improvement, provided that in the case of
construction or improvement the Lien shall not apply to any property
theretofore owned by the Company or any Restricted Subsidiary except
substantially unimproved real property on which the property so constructed
or the improvement is located and (ii) for the acquisition of any Principal
Property, which Liens are created within 180 days after the completion of
such acquisition to secure or provide for the payment of the purchase price
of the Principal Property acquired; provided that any such Liens do not
extend to any other property of the Company or any of its Subsidiaries
(whether such property is then owned or thereafter acquired);
(6) mechanics', landlords' and similar Liens arising in the ordinary
course of business in respect of obligations not due or being contested in
good faith;
(7) Liens for taxes, assessments, or governmental charges or levies
that are not delinquent or are being contested in good faith;
(8) Liens arising from any legal proceedings that are being contested
in good faith;
(9) any Liens that (i) are incidental to the ordinary conduct of its
business or the ownership of its properties and assets, including Liens
incurred in connection with workmen's compensation, unemployment insurance
or other forms of
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governmental insurance or benefits, or to secure performance of tenders,
statutory obligations, leases and contracts, (ii) were not incurred in
connection with the borrowing of money or the obtaining of advances or
credit and (iii) do not in the aggregate materially detract from the value
of the property of the Company or any Subsidiary or materially impair the
use thereof in the operation of its business;
(10) Liens securing industrial development or pollution control bonds;
and
(11) Liens for the sole purpose of extending, renewing or replacing
(or successively extending, renewing or replacing) in whole or in part any
of the foregoing.
(b) Notwithstanding the provisions of paragraph (a) of this Section
10.7, the Company or any Restricted Subsidiary may, without equally and ratably
securing the Securities, create or assume Liens which would otherwise be subject
to the foregoing restrictions if at the time of such creation or assumption, and
after giving effect thereto, Exempted Indebtedness does not exceed 10% of
Consolidated Net Tangible Assets.
SECTION 10.8 Limitations on Sale and Leaseback.
----------------------------------
(a) The Company will not, nor will it permit any Restricted Subsidiary
to, enter into any arrangement with any person providing for the leasing (as
lessee) by the Company or any Restricted Subsidiary of any Principal Property
(except for temporary leases for a term, including any renewal thereof, of not
more than three years and except for leases between the Company and a Restricted
Subsidiary or between Restricted Subsidiaries) which property has been or is to
be sold or transferred by the Company or a Restricted Subsidiary to such person
(herein referred to as a "Sale and Leaseback Transaction") unless either (i) the
Company or such Restricted Subsidiary would be entitled to incur a Lien on such
property without equally and ratably securing the Securities pursuant to
paragraph (a) of Section 10.7 or (ii) the net proceeds of such sale are at least
equal to the fair value (as determined by the Board of Directors) of such
property and the Company shall apply an amount equal to the net proceeds of such
sale to (A) the retirement (other than any mandatory retirement or payment at
maturity) of (x) Securities (other than any retirement prohibited by the terms
of any Securities pursuant to prohibitions on advance refundings) or (y) Funded
Debt of the Company or any Restricted Subsidiary ranking prior to or on a parity
with the Securities or (B) the acquisition, construction or improvement of a
Principal Property, within 120 days of the effective date of any such
arrangement.
(b) Notwithstanding the provisions of paragraph (a) of this Section
10.8, the Company or any Restricted Subsidiary may
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enter into Sale and Leaseback Transactions, if at the time of such entering
into, and after giving effect thereto, Exempted Indebtedness does not exceed 10%
of Consolidated Net Tangible Assets.
SECTION 10.9 Statement by Officers as to Default.
------------------------------------
The Company will deliver to the Trustee, within 120 days after the end
of each fiscal year of the Company ending after the date hereof, an Officers'
Certificate, stating whether or not to the best knowledge of the signers thereof
the Company is in default in the performance and observance of any of the terms,
provisions and conditions of Sections 10.1 to 10.8, inclusive, and if the
Company shall be in default, specifying all such defaults and the nature and
status thereof of which they may have knowledge.
SECTION 10.10 Waiver of Certain Covenants.
----------------------------
The Company may omit in any particular instance to comply with any
covenant or condition set forth in Sections 10.2 through 10.8 if, before or
after the time for such compliance, the Holders of not less than a majority in
aggregate principal amount of the Securities at the time Outstanding shall, by
Act of such Holders, either waive such compliance in such instance or generally
waive compliance with such covenant or condition, but no such waiver shall
extend to or affect such covenant or condition except to the extent so expressly
waived, and, until such waiver shall become effective, the obligations of the
Company and the duties of the Trustee in respect of any such covenant or
condition shall remain in full force and effect.
SECTION 10.11 Defeasance of Certain Obligations.
----------------------------------
If specified pursuant to Section 3.1 to be applicable to the
Securities of any series, the Company may omit to comply with any term,
provision or condition set forth in Section 8.1, Section 10.7 and Section 10.8
and any such omission with respect to such Sections shall not be an Event of
Default, in each case with respect to the Securities of such series; provided,
however, that the following conditions have been satisfied:
(1) with respect to all Outstanding Securities of such series and any
coupons appertaining thereto not theretofore delivered to the Trustee for
cancellation, the Company shall have deposited or caused to be deposited
with the Trustee for such series as trust funds or obligations in trust an
amount of:
(i) cash in the currency or currency unit in which the Securities
of such series are payable (except as otherwise specified pursuant to
Section 3.1 for the Securities of such series);
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(ii) Government Obligations; or
(iii) a combination of such cash and Government Obligations,
in each case in an amount which, together with, as evidenced by a
Certificate of a Firm of Independent Public Accountants delivered to such
Trustee, the predetermined and certain income to accrue on any Government
Obligations when due (without the consideration of any reinvestment
thereof) is sufficient to pay and discharge when due the entire
indebtedness on all such Outstanding Securities of such series and any
related coupons for unpaid principal (and premium, if any) and interest, if
any, to the Stated Maturity or any Redemption Date, as the case may be;
(2) such deposit will not result in a breach or violation of, or
constitute a default under, this Indenture or any other agreement or
instrument to which the Company is a party or by which it is bound;
(3) no Event of Default or event which with the giving of notice or
lapse of time, or both, would become an Event of Default with respect to
the Securities of that Series shall have occurred and be continuing on the
date of such deposit and no Event of Default under Section 5.1(e) or
Section 5.1(f) or event which with the giving of notice or lapse of time,
or both, would become an Event of Default under Section 5.1(e) or Section
5.1(f) shall have occurred and be continuing on the 91st day after such
date;
(4) the Company has delivered to the Trustee an Officers' Certificate
and an Opinion of Counsel each stating that all conditions precedent herein
provided for relating to the defeasance contemplated in the Section have
been complied with; and
(5) if the Securities of such series and any related coupons are not
to become due and payable at their Stated Maturity within one year of the
date of such deposit or are not to be called for redemption within one year
of the date of such deposit under arrangements satisfactory to such Trustee
as of the date of such deposit, then the Company shall have given, not
later than the date of such deposit, an Opinion of Counsel based on the
fact that (x) the Company has received from, or there has been published
by, the Internal Revenue Service a ruling or (y), since the date hereof,
there has been a change in the applicable United States federal income tax
law, in either case to the effect that, and such opinion shall confirm
that, the Holders of the Securities of such series will not recognize
income, gain or loss for federal income tax purposes as a result of such
deposit and defeasance and will
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be subject to federal income tax on the same amount and in the same manner
and at the same times as would have been the case if such deposit and
defeasance had not occurred.
All obligations of the Company under this Indenture with respect to
the Securities of such series, other than with respect to Section 8.1, Section
10.7 and Section 10.8, shall remain in full force and effect. Anything in this
Section 10.11 to the contrary notwithstanding, the Trustee for any series of
Securities shall deliver or pay to the Company, from time to time upon Company
Request, any money or Government Obligations held by it as provided in this
Section 10.11 which, as expressed in a Certificate of a Firm of Independent
Public Accountants delivered to such Trustee, are in excess of the amount
thereof which would then have been required to be deposited for the purpose of
which such money or Government Obligations were deposited or received, provided
such delivery can be made without liquidating any Government Obligations.
ARTICLE XI
REDEMPTION OF SECURITIES
SECTION 11.1 Applicability of Article.
-------------------------
Securities of any series which are redeemable before their Stated
Maturity shall be redeemable in accordance with their terms and (except as
otherwise specified as contemplated by Section 3.1 for Securities of any series)
in accordance with this Article.
SECTION 11.2 Election to Redeem; Notice to Trustee.
--------------------------------------
The election of the Company to redeem any Securities pursuant to
Section 11.1 shall be evidenced by a Board Resolution and an Officers'
Certificate. In case of any redemption at the election of the Company, the
Company shall, at least 60 days prior to the Redemption Date fixed by the
Company (unless a shorter notice period shall be satisfactory to the Trustee),
notify the Trustee in writing of such Redemption Date and of the principal
amount of Securities to be redeemed.
SECTION 11.3 Selection by Trustee of Securities to be Redeemed.
--------------------------------------------------
If less than all the Securities of any series are to be redeemed, the
particular Securities or portions thereof to be redeemed shall be selected not
more than 60 days prior to the Redemption Date by the Trustee, from the
Outstanding Securities not previously called for redemption, either pro rata or
by lot, and the amounts to be redeemed may be equal to $1,000 or any integral
multiple thereof.
71
<PAGE>
The Trustee shall promptly notify the Company and each Security
Registrar in writing of the Securities selected for redemption and, in the case
of any Securities selected for partial redemption, the principal amount thereof
to be redeemed.
For all purposes of this Indenture, unless the context otherwise
requires, all provisions relating to the redemption of Securities shall relate,
in the case of any Security redeemed or to be redeemed only in part, to the
portion of the principal amount of such Security which has been or is to be
redeemed.
SECTION 11.4 Notice of Redemption.
---------------------
Notice of redemption shall be given by first-class mail, postage
prepaid, mailed not less than 30 nor more than 60 days prior to the Redemption
Date, to each Holder of Securities to be redeemed at his address appearing in
the Security Register.
All notices of redemption shall state:
(a) the Redemption Date;
(b) the Redemption Price;
(c) if less than all Outstanding Securities of any series are to be
redeemed, the identification of the particular Securities to be redeemed;
(d) in the case of a Security to be redeemed in part, the principal
amount of such Security to be redeemed, and that after the Redemption Date
upon surrender of such Security, a new Security or Securities in the
aggregate principal amount equal to the unredeemed portion thereof will be
issued;
(e) that Securities called for redemption must be surrendered to the
Paying Agent to collect the Redemption Price;
(f) that on the Redemption Date the Redemption Price will become due
and payable upon each such Security or portion thereof, and that (unless
the Company shall default in payment of the Redemption Price) interest
thereon shall cease to accrue on and after said date;
(g) the place or places where such Securities are to be surrendered
for payment of the Redemption Price;
(h) the CUSIP Number of the Securities; and
(i) that the redemption is for a sinking fund, if such is the case.
72
<PAGE>
Notice of redemption of Securities to be redeemed at the election of
the Company shall be given by the Company or, at the Company's request, by the
Trustee in the name and at the expense of the Company.
The notice if mailed in the manner herein provided shall be
conclusively presumed to have been given, whether or not the Holder receives
such notice. In any case, failure to give such notice by mail or any defect in
the notice to the Holder of any Security designated for redemption as a whole or
in part shall not affect the validity of the proceedings for the redemption of
any other Security.
SECTION 11.5 Deposit of Redemption Price.
----------------------------
On or prior to any Redemption Date, the Company shall deposit with the
Trustee or with a Paying Agent (or, if the Company is acting as its own Paying
Agent, segregate and hold in trust as provided in Section 10.3) an amount of
money in same day funds sufficient to pay the Redemption Price of, and (except
if the Redemption Date shall be an Interest Payment Date) accrued interest on,
all the Securities or portions thereof which are to be redeemed on that date.
SECTION 11.6 Securities Payable on Redemption Date.
--------------------------------------
Notice of redemption having been given as aforesaid, the Securities so
to be redeemed shall, on the Redemption Date, become due and payable at the
Redemption Price therein specified, and from and after such date (unless the
Company shall default in the payment of the Redemption Price and accrued
interest) such Securities shall cease to bear interest. Upon surrender of any
such Security for redemption in accordance with said notice, such Security shall
be paid by the Company at the Redemption Price together with accrued interest to
the Redemption Date; provided, however, that installments of interest whose
Stated Maturity is on or prior to the Redemption Date shall be payable to the
Holders of such Securities, or one or more Predecessor Securities, registered as
such on the relevant Regular Record Dates according to the terms and provisions
of Section 3.7.
If any Security called for redemption shall not be so paid upon
surrender thereof for redemption, the principal (and premium, if any) shall,
until paid, bear interest from the Redemption Date at the rate borne by such
Security.
SECTION 11.7 Securities Redeemed in Part.
----------------------------
Any Security which is to be redeemed only in part shall be surrendered
at the office or agency of the Company maintained for such purpose pursuant to
Section 10.2 (with, if the Company, the Security Registrar or the Trustee so
requires, due endorsement
73
<PAGE>
by, or a written instrument of transfer in form satisfactory to the Company, the
Security Registrar or the Trustee duly executed by, the Holder thereof or his
attorney duly authorized in writing), and the Company shall execute, and the
Trustee shall authenticate and deliver to the Holder of such Security without
service charge to the Holder, a new Security or Securities of the same series,
of any authorized denomination as requested by such Holder in aggregate
principal amount equal to and in exchange for the unredeemed portion of the
principal of the Security so surrendered; provided, however, that the Depositary
need not surrender Global Securities for a partial redemption and may be
authorized to make a notation on such Global Security of such partial
redemption. In the case of a partial redemption of the Global Securities, the
Depositary, and in turn, the participants in the Depositary, shall have the
responsibility to select any Securities to be redeemed by random lot.
ARTICLE XII
SINKING FUNDS
SECTION 12.1 Applicability of Article.
-------------------------
The provisions of this Article shall be applicable to any sinking fund
for the retirement of Securities of a series except as otherwise specified as
contemplated by Section 3.1 for Securities of such series.
The minimum amount of any sinking fund payment provided for by the
terms of Securities of any series is herein referred to as a "mandatory sinking
fund payment", and any payment in excess of such minimum amount provided for by
the terms of Securities of any series is herein referred to as an "optional
sinking fund payment". If provided for by the terms of Securities of any
series, the cash amount of any sinking fund payment may be subject to reduction
as provided in Section 12.2. Each sinking fund payment shall be applied to the
redemption of Securities of any series as provided for by the terms of
Securities of such series.
SECTION 12.2 Satisfaction of Sinking Fund Payments
-------------------------------------
with Securities.
----------------
The Company (1) may deliver Outstanding Securities of a series (other
than any previously called-for redemption) and (2) may apply as a credit
Securities of a series which have been redeemed either at the election of the
Company pursuant to the terms of such Securities or through the application of
permitted optional sinking fund payments pursuant to the terms of such
Securities, in each case in satisfaction of all or any part of any sinking fund
payment with respect to the Securities of such series required to be made
pursuant to the terms of such Securities as
74
<PAGE>
provided for by the terms of such series, provided that such Securities have not
--------
been previously so credited. Such Securities shall be received and credited for
such purpose by the Trustee at the Redemption Price specified in such Securities
for redemption through operation of the sinking fund and the amount of such
sinking fund payment shall be reduced accordingly.
SECTION 12.3 Redemption of Securities for Sinking Fund.
------------------------------------------
Not less than 90 days prior to each sinking fund payment date for any
series of Securities, the Company will deliver to the Trustee an Officers'
Certificate specifying the amount of the next ensuing sinking fund payment for
that series pursuant to the terms of that series, the portion thereof, if any,
which is to be satisfied by payment of cash and the portion thereof, if any,
which is to be satisfied by delivering and crediting Securities of that series
pursuant to Section 12.2, and will also deliver to the Trustee any Securities to
be so delivered. The Trustee shall select the Securities to be redeemed upon
such sinking fund payment date in the manner specified in Section 11.3 and cause
notice of the redemption thereof to be given in the name of and at the expense
of the Company in the manner provided in Section 11.4. Such notice having been
duly given, the redemption of such Securities shall be made upon the terms and
in the manner stated in Sections 11.6 and 11.7.
75
<PAGE>
IN WITNESS WHEREOF, the parties hereto have caused this Indenture to
be duly executed, and their respective corporate seals to be hereunto affixed
and attested, all as of the day and year first above written.
CROWN CORK & SEAL COMPANY, INC.
By:____________________________
Name:
Title:
Attest:________________________________
Name:
Title:
CHEMICAL BANK,
as Trustee
By:____________________________
Name:
Title:
Attest:________________________________
Name:
Title:
76
<PAGE>
IN WITNESS WHEREOF, the parties hereto have caused this Indenture to
be duly executed, and their respective corporate seals to be hereunto affixed
and attested, all as of the day and year first above written.
CROWN CORK & SEAL COMPANY, INC.
By:____________________________
Name:
Title:
Attest:________________________________
Name:
Title:
CHEMICAL BANK,
as Trustee
By:____________________________
Name:
Title:
Attest:________________________________
Name:
Title:
77
<PAGE>
STATE OF ____________________ )
) ss.:
COUNTY OF ___________________ )
On the ___th day of ___________, 199_ , before me personally came
___________________________, to me known, who, being by me duly sworn, did
depose and say that he is __________________ of Crown Cork & Seal Company, Inc.,
one of the corporations described in and which executed the foregoing
instrument; that he knows the seal of said corporation; that the seal affixed to
said instrument is such corporate seal; that it was so affixed by authority of
the Board of Directors of said corporation; and that he signed his name thereto
by like authority.
______________________________
STATE OF ____________________ )
) ss.:
COUNTY OF ___________________ )
On the ___th day of _____________, 199_, before me personally came
___________________________, to me known, who, being by me duly sworn, did
depose and say that he is __________________ of Chemical Bank, one of the
corporations described in and which executed the foregoing instrument; that he
knows the seal of said corporation; that the seal affixed to said instrument is
such corporate seal; that it was so affixed by authority of the Board of
Directors of said corporation; and that he signed his name thereto by like
authority.
______________________________
78
<PAGE>
STATE OF ____________________ )
) ss.:
COUNTY OF ___________________ )
On the ___th day of ____________, 199_, before me personally came
___________________________, to me known, who, being by me duly sworn, did
depose and say that he is __________________ of Crown Cork & Seal Company, Inc.,
one of the corporations described in and which executed the foregoing
instrument; that he knows the seal of said corporation; that the seal affixed to
said instrument is such corporate seal; that it was so affixed by authority of
the Board of Directors of said corporation; and that he signed his name thereto
by like authority.
______________________________
STATE OF ____________________ )
) ss.:
COUNTY OF ___________________ )
On the ___th day of _____________, 199_, before me personally came
___________________________, to me known, who, being by me duly sworn, did
depose and say that he is __________________ of Chemical Bank, one of the
corporations described in and which executed the foregoing instrument; that he
knows the seal of said corporation; that the seal affixed to said instrument is
such corporate seal; that it was so affixed by authority of the Board of
Directors of said corporation; and that he signed his name thereto by like
authority.
______________________________
79
<PAGE>
Dechert Price & Rhoads
4000 Bell Atlantic Tower
1717 Arch Street
Philadelphia, PA 19103
December 20, 1994
Crown Cork & Seal Company, Inc.
9300 Ashton Road
Philadelphia, PA 19136
Re: Form S-3 Registration Statement
-------------------------------
Gentlemen:
We have acted as counsel to Crown Cork & Seal Company, Inc. (the
"Company") in connection with the preparation of a Registration Statement on
Form S-3 (the "Registration Statement") under the Securities Act of 1933, as
amended (the "Securities Act"), relating to the issuance of an aggregate of up
to $500,000,000 of debt securities of the Company (the "Debt Securities")
pursuant to an indenture in the form filed as Exhibit 4.1 to the Registration
Statement (the "Indenture") between Chemical Bank, as trustee, and the Company.
We have examined such corporate records and documents and other
matters as we have deemed necessary in order to render this opinion.
Based upon the foregoing, it is our opinion that the Debt Securities,
when duly executed, authenticated and delivered in accordance with the terms of
the Indenture and delivered to the purchasers thereof against payment therefor,
will constitute legal, valid and binding obligations of the Company, enforceable
against the Company in accordance with their terms, subject to bankruptcy,
insolvency, fraudulent conveyance, moratorium, reorganization or similar laws
affecting creditors' rights or debtors' obligations generally and to general
equity principles.
We hereby consent to the filing of this opinion as Exhibit 5.1 to the
Registration Statement and to the use of our name in the Prospectus under the
caption "Legal Matters."
Very truly yours,
/s/ Dechert Price & Rhoads
<PAGE>
EXHIBIT 12.1
------------
STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
--------------------------------------------------------------
<TABLE>
<CAPTION>
Nine Months ended
September 30, 1994 1993 1992 1991 1990 1989
------------------ ---- ---- ---- ---- ----
Computation of Earnings:
- -----------------------
<S> <C> <C> <C> <C> <C> <C>
Pretax income from continuing operations 126.6 279.8 254.7 208.8 178.7 148.4
Adjustments to Income:
Add: Distributed income
from less than 50%
owned companies 6.8 7.1 4.6 3.3 0 0
Add: Portion of rent expense
representative of
interest expense 0 0 .6 2.0 1.6 0
Add: Interest incurred
net of amounts capitalized 70.6 89.5 77.4 76.6 59.9 11.9
Add: Amortization of
interest previously capitalized .6 0 0 0 0 0
Add: Amortization of
debt expense and discount
or premium on indebtedness .3 .3 0 0 0 0
----- ----- ----- ----- ----- -----
Earnings 204.9 376.7 337.3 290.7 240.2 160.3
----- ----- ----- ----- ----- -----
Computation of Fixed Charges:
- ----------------------------
Interest incurred 75.3 89.5 77.4 76.6 59.9 11.9
Amortization of debt expense
and discount or premium
on indebtedness .3 .3 0 0 0 0
Portion of rental expense
representative of interest 0 0 .6 2.0 1.6 0
----- ----- ----- ----- ----- -----
Fixed Charges 75.6 89.8 78.0 78.6 61.5 11.9
----- ----- ----- ----- ----- -----
Ratio of Earnings to Fixed Charges 2.7x* 4.2x 4.3x 3.7x 3.9x 13.5x
</TABLE>
* During the third quarter of 1994, the Company incurred a pre-tax charge of
$114.6 million to reflect the costs associated with the restructuring of
its metal packaging operations in the United States and Canada. Thirteen
facilities were affected by the restructuring, primarily those that produce
three-piece, steel food and aerosol containers. The charge covers the
restructuring of facilities, including applicable severance and related
fixed asset write-downs. If such charge had not occurred, the ratio of
earnings to fixed charges for the nine months ended September 30, 1994
would have been 4.2x.
<PAGE>
CONSENT OF INDEPENDENT ACCOUNTANTS
We hereby consent to the incorporation by reference in the Prospectus
constituting part of this Registration Statement on Form S-3 of our report dated
March 14, 1994, appearing on Page 18 of Crown Cork & Seal Company, Inc.'s Annual
Report on Form 10-K for the year ended December 31, 1993. We also consent to
the reference to us under the heading "Experts" in such Prospectus.
PRICE WATERHOUSE LLP
Philadelphia, PA
December 19, 1994
<PAGE>
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that each person whose signature
appears below constitutes and appoints William J. Avery and Richard L.
Krzyzanowski, and each of them (with full power to each of them to act alone),
such person's true and lawful attorney-in-fact and agent, with full power of
substitution and resubstitution, for such person and in such person's name,
place and stead, in any and all capacities to sign a Registration Statement on
Form S-3 of Crown Cork & Seal Company, Inc. (the "Company") and any and all
amendments (including post-effective amendments) or supplements to the
Registration Statement, and to file the same, with all exhibits thereto and
other documents in connection therewith with the Securities and Exchange
Commission, granting unto said attorneys-in-fact and agents, and each of them,
full power and authority to do and perform each and every act and thing
requisite and necessary to be done in and about the premises, as fully to all
intents and purposes as such person might or could do in person, hereby
ratifying and confirming all that said attorneys-in-fact and agents or any of
them, or their substitutes, may lawfully do or cause to be done by virtue
hereof.
<TABLE>
<CAPTION>
Signatures Title Date
---------- ----- ----
<S> <C> <C>
/s/ WILLIAM J. AVERY Chairman of the Board, December 15, 1994
------------------------- President and
William J. Avery Chief Executive Officer
(Principal Executive
Officer)
/s/ ALAN W. RUTHERFORD Executive Vice December 15, 1994
------------------------- President,
Alan W. Rutherford Chief Financial Officer
and Director
(Principal Financial
Officer)
/s/ TIMOTHY J. DONAHUE Financial Controller December 15, 1994
------------------------- (Principal Accounting
Timothy J. Donahue Officer)
/s/ HENRY E. BUTWEL Director December 15, 1994
-------------------------
Henry E. Butwel
/s/ CHARLES F. CASEY Director December 15, 1994
-------------------------
Charles F. Casey
/s/ FRANCIS X. DALTON Director December 15, 1994
-------------------------
Francis X. Dalton
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C>
/s/ FRANCIS J. DUNLEAVY Director December 15, 1994
-------------------------
Francis J. Dunleavy
/s/ CHESTER C. HILINSKI Director December 15, 1994
-------------------------
Chester C. Hilinski
/s/ RICHARD L. KRZYZANOWSKI Director December 15, 1994
-----------------------------
Richard L. Krzyzanowski
/s/ JOSEPHINE C. MANDEVILLE Director Decemeber 15, 1994
-----------------------------
Josephine C. Mandeville
/s/ OWEN A. MANDEVILLE, JR. Director December 15, 1994
-----------------------------
Owen A. Mandeville, Jr.
/s/ MICHAEL J. MCKENNA Director December 15, 1994
-------------------------
Michael J. McKenna
/s/ J. DOUGLAS SCOTT Director December 15, 1994
------------------------
J. Douglass Scott
/s/ ROBERT J. SIEBERT Director December 15, 1994
------------------------
Robert J. Siebert
___________________________ Director December 15, 1994
Harold A. Sorgenti
/s/ EDWARD P. STUART Director December 15, 1994
----------------------------
Edward P. Stuart
</TABLE>
<PAGE>
___________________________________________________________________
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
_________________________
FORM T-1
STATEMENT OF ELIGIBILITY
UNDER THE TRUST INDENTURE ACT OF 1939 OF
A CORPORATION DESIGNATED TO ACT AS TRUSTEE
___________________________________________
CHECK IF AN APPLICATION TO DETERMINE ELIGIBILITY OF
A TRUSTEE PURSUANT TO SECTION 305(b)(2) ________
________________________________________
CHEMICAL BANK
(Exact name of trustee as specified in its charter)
NEW YORK 13-4994650
(State of incorporation (I.R.S. employer
if not a national bank) identification No.)
270 PARK AVENUE
NEW YORK, NEW YORK 10017
(Address of principal executive offices) (Zip Code)
William H. McDavid
General Counsel
270 Park Avenue
New York, New York 10017
Tel: (212) 270-2611
(Name, address and telephone number of agent for service)
_____________________________________________
CROWN CORK & SEAL COMPANY, INC.
(Exact name of obligor as specified in its charter)
PENNSYLVANIA 23-1526444
(State or other jurisdiction of (I.R.S. employer
incorporation or organization) identification No.)
9300 ASHTON ROAD
PHILADELPHIA, PENNSYLVANI 19136
(Address of principal executive offices) (Zip Code)
___________________________________________
DEBT SECURITIES
(Title of the indenture securities)
_____________________________________________________
<PAGE>
GENERAL
Item 1.General Information.
Furnish the following information as to the trustee:
(a) Name and address of each examining or supervising authority to which
it is subject.
New York State Banking Department, State House, Albany, New York 12110.
Board of Governors of the Federal Reserve System, Washington, D.C., 20551
and Federal Reserve Bank of New York, District No. 2, 33 Liberty Street,
New York, N.Y.
Federal Deposit Insurance Corporation, Washington, D.C., 20429.
(b) Whether it is authorized to exercise corporate trust powers.
Yes.
Item 2.Affiliations with the Obligor.
If the obligor is an affiliate of the trustee, describe each such
affiliation.
None.
-2-
<PAGE>
Item 16. List of Exhibits
List below all exhibits filed as a part of this Statement of
Eligibility.
1. A copy of the Articles of Association of the Trustee as now in
effect, including the Organization Certificate and the Certificates of Amendment
dated February 17, 1969, August 31, 1977, December 31, 1980, September 9, 1982,
February 28, 1985 and December 2, 1991 (see Exhibit 1 to Form T-1 filed in
connection with Registration Statement No. 33-50010, which is incorporated by
reference).
2. A copy of the Certificate of Authority of the Trustee to Commence
Business (see Exhibit 2 to Form T-1 filed in connection with Registration
Statement No. 33-50010, which is incorporated by reference).
3. None, authorization to exercise corporate trust powers being
contained in the documents identified above as Exhibits 1 and 2.
4. A copy of the existing By-Laws of the Trustee (see Exhibit 4 to
Form T-1 filed in connection with Registration Statement No. 33-84460, which is
incorporated by reference).
5. Not applicable.
6. The consent of the Trustee required by Section 321(b) of the Act
(see Exhibit 6 to Form T-1 filed in connection with Registration Statement No.
33-50010, which is incorporated by reference).
7. A copy of the latest report of condition of the Trustee, published
pursuant to law or the requirements of its supervising or examining authority.
8. Not applicable.
9. Not applicable.
SIGNATURE
Pursuant to the requirements of the Trust Indenture Act of 1939, the
Trustee, Chemical Bank, a corporation organized and existing under the laws of
the State of New York, has duly caused this statement of eligibility to be
signed on its behalf by the undersigned, thereunto duly authorized, all in the
City of New York and State of New York, on the 12TH day of DECEMBER, 1994.
CHEMICAL BANK
By /s/G. Mcfarlane
----------------------------------------
G. McFarlane
Vice President
-3-
<PAGE>
Exhibit 7 to Form T-1
Bank Call Notice
RESERVE DISTRICT NO. 2
CONSOLIDATED REPORT OF CONDITION OF
Chemical Bank
of 270 Park Avenue, New York, New York 10017
and Foreign and Domestic Subsidiaries,
a member of the Federal Reserve System,
at the close of business June 30, 1994, published in
accordance with a call made by the Federal Reserve Bank of this
District pursuant to the provisions of the Federal Reserve Act.
<TABLE>
<CAPTION>
DOLLAR AMOUNTS
ASSETS IN MILLIONS
<S> <C>
Cash and balances due from depository institutions:
Noninterest-bearing balances and
currency and coin .................................... $ 7,253
Interest-bearing balances ............................ 4,282
Securities: ............. .............................
Held to maturity securities............................... 6,841
Available for sale securities............................. 14,520
Federal Funds sold and securities purchased under
agreements to resell in domestic offices of the
bank and of its Edge and Agreement subsidiaries,
and in IBF's:
Federal funds sold.................................... 2,011
Securities purchased under agreements to resell....... 144
Loans and lease financing receivables:
Loans and leases, net of unearned income $61,454
Less: Allowance for loan and lease losses 2,026
Less: Allocated transfer risk reserve.. 115
------
Loans and leases, net of unearned income,
allowance, and reserve................................ 59,313
Assets held in trading accounts........................... 28,005
Premises and fixed assets (including capitalized
leases)............................................... 1,334
Other real estate owned................................... 553
Investments in unconsolidated subsidiaries and
associated companies.................................. 127
Customer's liability to this bank on acceptance
outstanding........................................... 1,181
Intangible assets......................................... 564
Other assets.............................................. 7,063
-----
TOTAL ASSETS.............................................. $133,191
========
</TABLE>
- 4 -
<PAGE>
LIABILITIES
<TABLE>
<CAPTION>
Deposits
<S> <C>
In domestic offices................................. $ 48,229
Noninterest-bearing .........................$17,236
Interest-bearing ............................ 30,993
------
In foreign offices, Edge and Agreement subsidiaries,
and IBF's........................................... 25,005
Noninterest-bearing .........................$ 221
Interest-bearing ............................ 24,784
------
Federal funds purchased and securities sold under agree-
ments to repurchase in domestic offices of the bank and
of its Edge and Agreement subsidiaries, and in IBF's
Federal funds purchased............................. 9,286
Securities sold under agreements to repurchase...... 2,476
Demand notes issued to the U.S. Treasury................ 2,000
Trading liabilities..................................... 19,206
Other Borrowed money:
With original maturity of one year or less.......... 7,868
with original maturity of more than one year........ 1,033
Mortgage indebtedness and obligations under capitalized
leases.............................................. 19
Bank's liability on acceptances executed and outstanding 1,184
Subordinated notes and debentures....................... 3,500
Other liabilities....................................... 5,893
TOTAL LIABILITIES....................................... 125,699
--------
</TABLE>
EQUITY CAPITAL
<TABLE>
<S> <C>
Common stock......................................... 620
Surplus.............................................. 4,501
Undivided profits and capital reserves............... 2,668
Net unrealized holding gains (Losses)
on available-for-sale securities..................... (295)
Cumulative foreign currency translation adjustments.. (2)
TOTAL EQUITY CAPITAL................................. 7,492
--------
TOTAL LIABILITIES, LIMITED-LIFE PREFERRED
STOCK AND EQUITY CAPITAL............................ $133,191
========
</TABLE>
I, Joseph L. Sclafani, S.V.P. & Controller of the
above-named bank, do hereby declare that this Report of
Condition is true and correct to the best of my knowledge
and belief.
JOSEPH L. SCLAFANI
We, the undersigned directors, attest to the correctness
of this statement of resources and liabilities. We
declare that it has been examined by us, and to the best
of our knowledge and belief has been prepared in confor-
mance with the instructions and is true and correct.
WALTER V. SHIPLEY )
EDWARD D. MILLER )DIRECTORS
WILLIAM B. HARRISON )
- 5 -
