<PAGE>
AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON MARCH 12, 1998
REGISTRATION NO. 333-_____
================================================================================
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
--------------------
FORM S-3
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
--------------------
IKON OFFICE SOLUTIONS, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
OHIO 23-0334400
(STATE OR OTHER JURISDICTION OF (I.R.S. EMPLOYER IDENTIFICATION NUMBER)
INCORPORATION OR ORGANIZATION)
P.O. BOX 834
VALLEY FORGE, PENNSYLVANIA 19482
(610) 296-8000
(ADDRESS, INCLUDING ZIP CODE, AND TELEPHONE NUMBER,
INCLUDING AREA CODE, OF REGISTRANT'S PRINCIPAL EXECUTIVE OFFICES)
KARIN M. KINNEY, ESQ.
IKON OFFICE SOLUTIONS, INC.
CORPORATE SECRETARY AND CORPORATE COUNSEL
P.O. BOX 834
VALLEY FORGE, PENNSYLVANIA 19482
(610) 296-8000
(NAME, ADDRESS, INCLUDING ZIP CODE, AND TELEPHONE NUMBER,
INCLUDING AREA CODE, OF AGENT FOR SERVICE)
COPIES TO:
ROBERT E. BUCKHOLZ, JR., ESQ.
SULLIVAN & CROMWELL
125 BROAD STREET
NEW YORK, NEW YORK 10004
--------------------
APPROXIMATE DATE OF COMMENCEMENT OF PROPOSED SALE TO THE PUBLIC: From time
to time after the Registration Statement becomes effective as determined in
light of market conditions.
--------------------
If the only securities being registered on this Form are being offered
pursuant to dividend or interest reinvestment plans, please check the following
box.[_]
<PAGE>
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]
If this form is filed to register additional securities for an offering
pursuant to Rule 462(b) under the Securities Act, please check the following box
and list the Securities Act registration statement number of the earlier
effective registration statement for the same offering. [_]
If this form is a post-effective amendment filed pursuant to Rule 462(c)
under the Securities Act, check the following box and list the Securities Act
registration statement number of the earlier effective registration statement
for the same offering. [_]
If delivery of the prospectus is expected to be made pursuant to Rule 434,
please check the following box. [_]
<TABLE>
<CAPTION>
CALCULATION OF REGISTRATION FEE
=========================================================================================================
PROPOSED
TITLE OF EACH CLASS AMOUNT PROPOSED MAXIMUM
OF SECURITIES TO BE OFFERING PRICE AGGREGATE AMOUNT OF
TO BE REGISTERED REGISTERED PER UNIT OFFERING PRICE(1) REGISTRATION FEE
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Debt Securities
Preferred Stock
Depositary Shares (3) $500,000,000(2) 100%(2) $500,000,000 $147,500
Common Stock(4)(5)(6)
=========================================================================================================
</TABLE>
(1) Estimated solely for the purpose of determining the registration fee.
(2) There are being registered hereunder such principal amount or number of
Securities as may from time to time be issued at indeterminate prices, but
with an aggregate initial offering price not to exceed $500,000,000.
(3) There are being registered hereunder such indeterminate number of
Depositary Shares as may be issued in the event the Registrant elects to
offer fractional interests in shares of the Preferred Stock registered
hereunder.
(4) In addition to Common Stock that may be offered for cash, there are being
registered hereunder such indeterminate number of shares of Common Stock as
may be issuable upon conversion of the Debt Securities or Preferred Stock
being registered hereunder, to the extent any of such Debt Securities or
shares of Preferred Stock are by their terms convertible into Common Stock.
(5) Each share of Common Stock being registered hereunder includes a Common
Stock Purchase Right.
(6) There are being registered hereunder such indeterminate number of shares of
Common Stock as may be issued in connection with applicable initial hedging
and dynamic hedging transactions.
----------------
Pursuant to Rule 429 under the Securities Act, the Prospectus included in
this Registration Statement is a combined prospectus and also relates to $200
million aggregate principal amount of securities registered pursuant to
Registration Statement No. 33-64177 (as to which a filing fee of $68,966 was
previously paid). This Registration Statement also constitutes post-effective
amendment No. 1 to Registration Statement No. 33-64177. Such post-effective
amendment shall hereafter become effective concurrently with the effectiveness
of this Registration Statement in accordance with Section 8(c) of the Securities
Act.
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 THIS REGISTRATION STATEMENT SHALL BECOME
EFFECTIVE ON SUCH DATE AS THE COMMISSION, ACTING PURSUANT TO SAID SECTION 8(A),
MAY DETERMINE.
================================================================================
<PAGE>
IKON OFFICE SOLUTIONS, INC.
DEBT SECURITIES, PREFERRED STOCK AND
COMMON STOCK
------------
IKON Office Solutions, Inc. (the "Company" or "IKON") may from time to time
offer Debt Securities consisting of debentures, notes and/or other unsecured
evidences of indebtedness in one or more series; Preferred Stock in one or more
series (which may include Depositary Shares representing fractional interests in
shares of Preferred Stock); and shares of Common Stock (collectively, the
"Securities"), from which the Company will receive proceeds of up to an
aggregate of $700,000,000. The Debt Securities, Preferred Stock and Common Stock
may be offered independently or together in any combination for sale directly to
purchasers or through dealers, underwriters or agents to be designated. The
Securities will be offered to the public on terms determined by market
conditions.
The specific designation, aggregate principal amount, purchase price,
maturity, rate (or method of calculation thereof) and time of payment of
interest, if any, any conversion or exchange provisions, any redemption
provisions, any subordination provisions and other specific terms not set forth
herein of the Debt Securities in respect of which this Prospectus is being
delivered; the specific title, number of shares, dividend rate (or method of
calculation), liquidation preferences, any conversion or exchange provisions,
any redemption provisions, any other specific terms of the Preferred Stock and
any Depositary Shares in respect of which this Prospectus is being delivered;
any listing on a securities exchange of the Securities in respect of which this
Prospectus is being delivered; and the names of any underwriters, dealers or
agents, and the other terms and manner of the sale and distribution of such
Securities, are set forth in the accompanying Prospectus Supplement. See
"Description of Debt Securities", "Description of Capital Stock", "Description
of Depositary Shares" and "Plan of Distribution".
------------
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE
ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE.
------------
THE DATE OF THIS PROSPECTUS IS MARCH 12, 1998.
<PAGE>
NO DEALER, SALESPERSON OR OTHER PERSON HAS BEEN AUTHORIZED TO GIVE ANY
INFORMATION OR TO MAKE ANY REPRESENTATIONS NOT CONTAINED IN THIS PROSPECTUS OR
THE PROSPECTUS SUPPLEMENT AND, IF GIVEN OR MADE, SUCH INFORMATION OR
REPRESENTATION MUST NOT BE RELIED UPON AS HAVING BEEN AUTHORIZED BY IKON OR ANY
UNDERWRITER. THIS PROSPECTUS AND THE PROSPECTUS SUPPLEMENT DO NOT CONSTITUTE AN
OFFER TO SELL OR THE 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 OFFER IN SUCH JURISDICTION.
------------
AVAILABLE INFORMATION
IKON is subject to the informational requirements of the Securities Exchange
Act of 1934 (the "1934 Act") and in accordance therewith files reports, proxy
statements and other information with the Securities and Exchange Commission
(the "Commission"). Such reports, proxy statements and other information filed
by IKON with the Commission can be inspected and copied at the offices of the
Commission at Room 1024, Judiciary Plaza, 450 Fifth Street, N.W., Washington,
D.C. 20549 and at the following Regional Offices of the Commission: New York
Regional Office, Seven World Trade Center, New York, New York 10048, and Chicago
Regional Office, 500 West Madison Street, Suite 1400, Chicago, Illinois 60661.
Copies of such material can also be obtained from the Public Reference Section
of the Commission at Room 1024, Judiciary Plaza, 450 Fifth Street, N.W.,
Washington, D.C. 20549, at prescribed rates. Such material may also be accessed
electronically by means of the Commission's "home" page on the Internet at
http://www.sec.gov. Such material can also be inspected at the New York,
Philadelphia and Chicago Stock Exchanges on which IKON's common stock is listed.
DOCUMENTS INCORPORATED BY REFERENCE
IKON's Annual Report on Form 10-K for the fiscal year ended September 30,
1997, its Quarterly Report on Form 10-Q for the quarter ended December 31, 1997,
and its Current Report on Form 8-K dated March 6, 1998, heretofore filed by IKON
with the Commission, are incorporated herein by reference.
All documents filed by IKON pursuant to Section 13(a), 13(c), 14 or 15(d)
of the 1934 Act subsequent to the date of this Prospectus and prior to the
termination of the offering of the Securities shall be deemed to be incorporated
by reference in this Prospectus and to be a part hereof from the date of filing
of such documents. This Prospectus does not contain all information set forth in
the Registration Statement and Exhibits thereto which IKON has filed with the
Commission and to which reference is made hereby.
IKON will provide without charge to each person, including any beneficial
owner, to whom a copy of this Prospectus is delivered, on the written or oral
request of any such person, a copy of any or all of the documents referred to
above which have been incorporated in this Prospectus by reference, other than
exhibits to such documents (unless such exhibits are specifically incorporated
by reference in such documents). Requests for such copies should be directed to:
Investor Relations Department, IKON Office Solutions, Inc., P.O. Box 834, Valley
Forge, Pennsylvania 19482 (telephone number: (610) 296-8000).
2
<PAGE>
THE COMPANY
IKON Office Solutions, Inc. ("IKON" or "the Company") is a leading office
technology company, providing customers with total office solutions, including
copier and printing systems, computer networking, print-on-demand services, copy
center management, hardware and software product interfaces and electronic file
conversion. IKON's fiscal 1997 revenues were $5.1 billion.
The address of IKON's principal executive offices is P.O. Box 834, Valley
Forge, Pennsylvania 19482, telephone number (610) 296-8000.
RATIO OF EARNINGS TO FIXED CHARGES
The following table sets forth the historical ratios of earnings to fixed
charges of IKON for the periods indicated:
<TABLE>
<CAPTION>
FISCAL YEAR ENDED
THREE MONTHS ENDED SEPTEMBER 30
----------------------------
DECEMBER 31, 1997 1997 1996 1995 1994 1993
------------------ ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Ratio of Earnings to Fixed Charges....................... 2.2 2.1 3.1 3.3 3.7 3.1
Ratio of Earnings to Fixed Charges (Excluding Captive
Finance Subsidiaries)................................... 2.9 2.6 4.8 4.9 5.3 4.5
</TABLE>
For purposes of calculating this ratio, earnings consist of income from
continuing operations before provisions for income taxes and excluding the loss
from unconsolidated affiliate, plus fixed charges. Fixed charges include
interest expense on indebtedness, and an estimate of the interest component of
rental expense. The first ratio gives effect to the consolidation of the captive
finance subsidiaries of IKON. The second ratio excludes the income from
continuing operations before provision for income taxes and the fixed charges
attributable to those captive finance subsidiaries. The ratios for the three
months ended December 31, 1997 include transformation costs of $19.5 million
($12.7 million net of tax); if these costs were excluded for the three months
ended December 31, 1997, the ratios would be 2.6 (including captive finance
subsidiaries) and 3.7 (excluding captive finance subsidiaries). The 1997 ratios
include transformation costs of $126.9 million ($82.5 million net of tax); if
these costs were excluded for 1997, the ratios would be 2.8 (including captive
finance subsidiaries) and 4.0 (excluding captive finance subsidiaries). The 1996
ratios include transformation costs of $21.4 million ($13.9 million net of tax);
if these costs were excluded for 1996, the ratios would be 3.3 (including
captive finance subsidiaries) and 5.2 (excluding captive finance subsidiaries).
RATIO OF EARNINGS TO
FIXED CHARGES AND PREFERRED
STOCK DIVIDENDS
The following table sets forth the historical ratios of earnings to fixed
charges and preferred stock dividends of IKON for the periods indicated:
<TABLE>
<CAPTION>
FISCAL YEAR ENDED
THREE MONTHS ENDED SEPTEMBER 30
----------------------------
DECEMBER 31, 1997 1997 1996 1995 1994 1993
------------------ ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Ratio of Earnings to Fixed Charges and Preferred Stock
Dividends............................................... 1.9 1.8 2.4 2.5 2.8 2.3
Ratio of Earnings to Fixed Charges and Preferred Stock
Dividends (Excluding Captive Finance Subsidiaries)..... 2.1 2.0 3.0 3.1 3.3 2.8
</TABLE>
3
<PAGE>
For purposes of calculating this ratio, earnings consist of income from
continuing operations before provisions for income taxes and preferred stock
dividends and excluding the loss from unconsolidated affiliate, plus fixed
charges. Fixed charges include interest expense on indebtedness, and an estimate
of the interest component of rental expense. Preferred stock dividends include
the pretax earnings required to cover preferred stock dividend requirements. The
first ratio gives effect to the consolidation of the captive finance
subsidiaries of IKON. The second ratio excludes the income from continuing
operations before provision for income taxes, and the fixed charges attributable
to those captive finance subsidiaries. The ratios for the three months ended
December 31, 1997 include transformation costs of $19.5 million ($12.7 million
net of tax); if these costs were excluded for the three months ended December
31, 1997, the ratios would be 2.2 (including captive finance subsidiaries) and
2.7 (excluding captive finance subsidiaries). The 1997 ratios include
transformation costs of $126.9 million ($82.5 million net of tax); if these
costs were excluded for 1997, the ratios would be 2.4 (including captive finance
subsidiaries) and 3.0 (excluding captive finance subsidiaries). The 1996 ratios
include transformation costs of $21.4 million ($13.9 million net of tax); if
these costs were excluded for 1996, the ratios would be 2.6 (including captive
finance subsidiaries) and 3.2 (excluding captive finance subsidiaries).
USE OF PROCEEDS
Unless otherwise specified in the Prospectus Supplement which accompanies this
Prospectus, the net proceeds from the sale of the Securities will be added to
the general funds of IKON and may be used to finance the acquisition of new
companies and for general corporate purposes, including capital expenditures,
reduction of short-term debt and working capital requirements.
4
<PAGE>
DESCRIPTION OF DEBT SECURITIES
The following description sets forth the material terms and provisions of the
Debt Securities to which the accompanying Prospectus Supplement may relate. The
particular terms and provisions of any series of Debt Securities offered by the
Prospectus Supplement, and the extent to which such general terms and provisions
described below may apply thereto, are described in the Prospectus Supplement
relating to such series of Debt Securities.
The Debt Securities will be issued under an Indenture (the "Indenture")
between IKON and First Union National Bank, as Trustee (the "Trustee"), which is
filed as an exhibit to the Registration Statement filed with the Commission.
Wherever particular sections or defined terms of the Indenture are referred to,
it is intended that such sections or defined terms shall be incorporated herein
by reference.
GENERAL
The Indenture does not limit the amount of Debt Securities which can be
issued thereunder and provides that Debt Securities may be issued thereunder up
to the aggregate principal amount which may be authorized from time to time by
IKON. Reference is made to the Prospectus Supplement which accompanies this
Prospectus for the following terms and other information with respect to any
Debt Securities being offered thereby: (i) the designation, aggregate principal
amount and authorized denominations of such Debt Securities; (ii) the percentage
of the principal amount at which such Debt Securities will be issued; (iii) the
date or dates on which such Debt Securities will mature; (iv) the rate or rates
per annum at which such Debt Securities will bear interest, if any, or the
method of determination of such rate; (v) the time or times at which any such
interest will be payable, the record dates for such interest payments and the
date or dates from which interest will accrue; (vi) the place or places where
the principal (and premium, if any) and interest will be payable; (vii) whether
such Debt Securities will be convertible into or exchangeable for Common Stock
or other securities of IKON, and the terms and conditions of any such
conversions or exchanges; (viii) whether such Debt Securities will be
subordinated to other indebtedness of the Company, and the terms and conditions
of any such subordination; and (ix) any redemption or sinking fund provisions,
additional restrictive covenants or other terms of such Debt Securities.
(Section 301)
Unless otherwise specified in the Prospectus Supplement which accompanies
this Prospectus, principal, premium, if any, and interest, if any, are to be
payable at the Corporate Trust Office of the Trustee or its successors in The
City of New York, or at any other office or agency maintained by IKON for such
purposes, provided that payment of interest, if any, may be made at the option
of IKON by check mailed to the persons in whose names the Debt Securities are
registered at the close of business on the day specified in the Prospectus
Supplement accompanying this Prospectus. (Sections 202 and 1002)
The Debt Securities will be issued only in fully registered form, without
coupons. (Section 302) The Debt Securities will be exchangeable for other Debt
Securities of the same series of a like aggregate principal amount in authorized
denominations and will be transferable at any time or from time to time at the
Corporate Trust Office of the Trustee or at any other office or agency of IKON
maintained for that purpose. No service charge will be made for any such
exchange or transfer of Debt Securities, but IKON may require payment of a sum
sufficient to cover any tax or other governmental charge payable in connection
therewith. (Section 305)
Debt Securities of a single series may be issued at various times with
different maturity dates, may bear interest at different rates and may otherwise
vary.
One or more series of Debt Securities may be sold at a substantial discount
below their stated principal amount, bearing no interest or interest at a rate
which at the time of issuance is below market rates. Federal income tax
consequences and special considerations applicable to any such series will be
described in the Prospectus Supplement relating thereto.
5
<PAGE>
RANKING
The Debt Securities will be unsecured and will rank on a parity with all other
unsecured and unsubordinated indebtedness of IKON. At December 31, 1997, the
Company had $800 million principal amount of long-term debt and $146 million
principal amount of short-term debt (excluding, in each case, the debt of
finance subsidiaries). The substantial majority of the Company's debt, excluding
the finance subsidiaries' debt, is indebtedness of IKON (not subsidiary debt),
ranking pari passu with the Debt Securities. At December 31, 1997, the debt of
the finance subsidiaries was approximately $1,936 million. The Debt Securities
do not rank senior to any of the debt of the Company or its subsidiaries. Unless
otherwise indicated in the Prospectus Supplement relating to the Debt
Securities, the covenants contained in the Indenture and the Debt Securities
would not afford Holders of the Debt Securities protection in the event of a
highly leveraged or other transaction involving IKON or a sudden and dramatic
decline in credit quality resulting from an acquisition of IKON, or a
recapitalization or similar restructuring of IKON, that may adversely affect
Holders.
CERTAIN RESTRICTIVE PROVISIONS
IKON covenants in the Indenture that so long as any of the Debt Securities
remain outstanding, it will not, nor will it permit any Restricted Subsidiary
(as defined, see "Definition of Certain Terms" below) to create or assume any
mortgage, security interest, pledge or lien of or upon any Principal Property
(as defined) or shares of capital stock or indebtedness of any Restricted
Subsidiary (whether such Principal Property, shares of stock or indebtedness are
now owned or hereafter acquired) without making effective provision whereby the
Outstanding Debt Securities shall be secured equally and ratably with any and
all other indebtedness or obligations thereby secured. This restriction,
however, shall not apply to: (i) liens on any Principal Property existing at the
time that it is acquired, or liens on any Principal Property acquired,
constructed or improved by IKON or a Restricted Subsidiary which are created or
assumed contemporaneously with, or within 180 days after (or in certain cases,
360 days after) the completion of such acquisition, construction or improvement
to secure the purchase price of such property or the cost of such construction
or improvement; (ii) liens on property or shares of capital stock or
indebtedness of a corporation existing at the time such corporation is merged
into or consolidated with IKON or a Restricted Subsidiary or at the time of a
sale, lease or other disposition of the properties of a corporation as an
entirety or substantially as an entirety to IKON or a Restricted Subsidiary;
(iii) liens on property or shares of capital stock or indebtedness of a
corporation existing at the time such corporation becomes a Restricted
Subsidiary; (iv) liens to secure indebtedness of a Restricted Subsidiary to IKON
or to another Restricted Subsidiary; (v) liens in favor of the United States of
America or any state thereof, or any department, agency or political subdivision
of the United States of America or any state thereof, to secure partial,
progress, advance or other payments pursuant to any contract or statute,
including, without limitation, liens to secure indebtedness represented by
pollution control or industrial revenue bonds, or to secure any indebtedness
incurred for the purpose of financing all or any part of the purchase price or
the cost of constructing or improving the property subject to such liens; (vi)
liens in favor of any customer arising in respect of partial, progress, advance
or other payments made by or on behalf of such customer for goods produced for
or services rendered to such customer in the ordinary course of business not
exceeding the amount of such payments; (vii) liens existing at the date of the
Indenture; (viii) mechanics', workers', repairmen's, materialmen's,
warehousemen's, carriers' or other similar liens arising in the ordinary course
of business; (ix) pledges or deposits under the workers' compensation laws or
similar legislation and liens of judgments thereunder which are not currently
dischargeable, or good faith deposits in connection with bids, tenders,
contracts (other than for the payment of money) or leases to which IKON or any
Restricted Subsidiary is a party, or deposits in connection with obtaining or
maintaining self-insurance or to obtain the benefits of any law, regulation or
arrangement pertaining to unemployment insurance, old age pensions, social
security or similar matters, or deposits of cash or obligations of the United
States of America to secure surety, appeal or customs bonds to which IKON or any
Restricted Subsidiary is a party, or deposits in litigation or other proceedings
such as, but not limited to, interpleader proceedings; (x) liens created by or
resulting from any litigation or proceedings which are being contested in good
faith; liens arising out of judgments or awards against IKON or any Restricted
Subsidiary with respect to which IKON or such Restricted Subsidiary is in good
faith prosecuting an appeal or proceedings for review; or liens incurred by IKON
or any Restricted Subsidiary for the purpose of obtaining a stay or discharge in
the course of any legal
6
<PAGE>
proceeding to which IKON or such Restricted Subsidiary is a party; (xi) liens
for taxes or assessments or governmental charges or levies not yet due or
delinquent, or which can thereafter be paid without penalty, or which are being
contested in good faith by appropriate proceedings; landlord's liens on property
held under lease, and tenants' rights under leases; and easements; (xii) other
liens incidental to the conduct of the business or the ownership of the property
and assets of IKON or a Restricted Subsidiary which were not incurred in
connection with the borrowing of money or the obtaining of advances or credit,
and which do not, in the opinion of IKON, materially detract from the value of
the property or assets or materially impair the use thereof in the operation of
the business of IKON and its Restricted Subsidiaries taken as a whole; or (xiii)
any extension, renewal or replacement (or successive extensions, renewals or
replacements), in whole or in part, of any liens referred to in the foregoing
clauses (i) through (xii), inclusive. (Section 1006)
Sale and leaseback transactions by IKON or any Restricted Subsidiary of any
Principal Property owned for more than 180 days (except for leases of not more
than three years and except for leases between IKON and a Restricted Subsidiary
or between Restricted Subsidiaries) are prohibited unless (i) IKON or such
Restricted Subsidiary would be entitled to incur indebtedness secured by a lien
on such property without equally and ratably securing the Debt Securities
pursuant to the restrictions on liens described above, or (ii) IKON shall apply
an amount equal to the Attributable Debt (as defined) of such transaction to (a)
the acquisition of one or more Principal Properties of equal or greater
aggregate fair market value and/or (b) the retirement of indebtedness for
borrowed money, including the Debt Securities, incurred by IKON or any
Restricted Subsidiary (other than indebtedness for borrowed money owed to IKON
or any Restricted Subsidiary), provided that the amount to be applied to the
retirement of such indebtedness shall be reduced by (1) the principal amount of
any Debt Securities delivered within 180 days after such sale to the Trustee for
retirement or cancellation, and (2) the principal amount of such indebtedness,
other than Debt Securities, voluntarily retired by IKON within 180 days after
such sale. No retirement referred to in the foregoing clause (ii)(b), however,
may be effected by payment at maturity or pursuant to any mandatory sinking fund
payment or mandatory prepayment provision. (Section 1007)
Notwithstanding the foregoing restrictions on liens and sale and leaseback
transactions, IKON and its Restricted Subsidiaries may, without securing the
Debt Securities, acquiring one or more Principal Properties or retiring
indebtedness for borrowed money, create or assume liens and enter into sale and
leaseback transactions if the aggregate amount of all such liens and sale and
leaseback transactions outstanding at the time such lien is assumed or created
or such sale and leaseback transaction is entered into, as measured by all
indebtedness secured by all such liens then outstanding or to be so created or
assumed (and after giving effect to the retirement of any indebtedness or
obligations which are concurrently being retired) and the Attributable Debt of
all such sale and leaseback transactions then outstanding or to be so entered
into, would not exceed 10% of IKON's Consolidated Net Assets (as defined), as
determined in accordance with the most recent published balance sheet of IKON
and after giving effect to the receipt and application of any proceeds of all
indebtedness secured by all such liens to be created or assumed and of any sale
and leaseback transactions to be entered into. (Section 1008)
DEFINITION OF CERTAIN TERMS
"Attributable Debt" is defined as the present value (discounted as provided in
the Indenture) of the obligation of a lessee for rental payments during the
remaining term of any lease. (Section 1006)
"Consolidated Net Assets" is defined as the total of all assets (after
deducting all current liabilities) appearing on a consolidated balance sheet of
IKON and its consolidated subsidiaries, prepared in accordance with generally
accepted accounting principles, with the assets determined at their net book
values (after deducting related depreciation, depletion, amortization and other
valuation reserves). (Section 1006)
"Principal Property" is defined as any manufacturing plant, research facility
or warehouse located within the United States of America owned or leased by IKON
or any Restricted Subsidiary which has a net book value exceeding 2 1/2% of
IKON's Consolidated Net Assets, unless, in the opinion of the board of directors
of IKON, such property (or a portion thereof) is not of material importance to
the total business conducted by IKON as an entirety. (Section 1006)
7
<PAGE>
"Restricted Subsidiary" is defined to mean any Subsidiary which owns a
Principal Property. (Section 1006)
"Subsidiary" is defined to mean a corporation more than 50% of the outstanding
voting stock of which is owned, directly or indirectly, by IKON and/or by one or
more of its other Subsidiaries. (Section 101)
MERGER AND CONSOLIDATION
The Indenture provides that IKON may, without the consent of the Holders of
Debt Securities of any series, consolidate with or merge with or into any other
corporation, or convey, transfer or lease its properties and assets
substantially as an entirety to any person, provided that in any such case (i)
the successor corporation shall be a domestic corporation and such corporation
shall assume by a supplemental indenture IKON's obligations under the Indenture,
(ii) immediately after giving effect to such transaction, no Event of Default
shall have occurred and be continuing, and (iii) if, as a result of any such
transaction, the properties or assets of IKON would be subject to any lien not
permitted under the restrictions on liens described above, the Debt Securities
will be secured equally and ratably with (or prior to) all indebtedness secured
thereby. Upon compliance with these provisions by a successor corporation, IKON
(except in the case of a lease) would be relieved of its obligations under the
Indenture and the Debt Securities. (Sections 801 and 802)
MODIFICATION AND AMENDMENT
The rights and obligations of IKON and the rights of the Holders may be
modified with respect to one or more series of Debt Securities issued under the
Indenture with the consent of the Holders of not less than a majority in
principal amount of the Outstanding Debt Securities of each series so affected,
provided that no such modification or amendment may, without the consent of the
Holder of each Debt Security affected thereby: (i) change the Stated Maturity of
the principal of, or any installment of principal of or interest on, any such
Debt Security; (ii) reduce the principal amount of, or the rate of interest, if
any, on, or any premium payable upon the redemption of any Debt Security; (iii)
reduce the amount of the principal of an Original Issue Discount Security that
would be due and payable upon a declaration of acceleration of the Maturity
thereof; (iv) change the place of payment where, or the coin or currency in
which, any Debt Security or any premium or interest thereon is payable; (v)
impair the right to institute suit for the enforcement of any payment on or with
respect to any such Debt Security; (vi) reduce the above stated percentage of
Outstanding Debt Securities necessary to modify or amend the Indenture; (vii)
reduce the percentage of aggregate principal amount of Outstanding Debt
Securities for waiver of compliance with certain provisions of the Indenture or
for waiver of certain defaults; or (viii) modify (with certain exceptions) any
provisions of the Indenture relating to modification and amendment of the
Indenture or waiver of compliance with conditions and defaults thereunder.
(Section 902)
EVENTS OF DEFAULT
The Indenture defines an Event of Default with respect to any series of Debt
Securities as being any one of the following events and such other event as may
be established for the Debt Securities of a particular series: (i) failure to
pay principal of (or premium, if any, on) any Debt Security of that series when
due; (ii) failure to pay any interest installment on any Debt Security of that
series when due, continued for 30 days; (iii) failure to deposit any sinking
fund payment on any Debt Security of that series when due; (iv) failure to
perform any other covenant of IKON (other than a covenant included in the
Indenture solely for the benefit of series of Debt Securities other than that
series), continued for 60 days after receipt of written notice by IKON; (v)
failure to pay when due, or acceleration pursuant to the terms of any agreement
or instrument of the maturity of, any indebtedness of IKON for borrowed money,
if such indebtedness aggregates $10,000,000 or more and such indebtedness is not
discharged or such acceleration is not rescinded or annulled within 10 days
after receipt of written notice by IKON; (vi) certain events in bankruptcy,
insolvency or reorganization in respect of IKON; and (vii) any other defaults
provided with respect to Debt Securities of that series. (Section 501) An Event
of Default with respect to a particular series of Debt Securities issued under
the Indenture does not necessarily constitute an Event of Default with respect
to any other series of Debt Securities issued thereunder. The Trustee may
withhold notice to the Holders of any series of Debt Securities of any default
with respect to such series
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(except in the payment of principal, premium or interest or the making of any
sinking fund payment) if it considers such withholding to be in the interests of
such Holders. (Section 602)
If an Event of Default (as defined) shall occur and be continuing with respect
to any series of Debt Securities, either the Trustee or the Holders of at least
25% in principal amount of the Outstanding Debt Securities of such series (or,
if the Debt Securities of that series are Original Issue Discount Securities,
such portion of the principal amount as may be specified in the terms of that
series) may accelerate the maturity of such series; provided, however, that
after such acceleration, but before a judgment or decree based on such
acceleration, the Holders of a majority in principal amount of such series may
rescind and annul such acceleration under certain circumstances. (Section 502)
The Holders of a majority in principal amount of the Outstanding Debt Securities
of such series may waive any past default under the Indenture, except a default
in the payment of principal, premium, if any, or interest or in the making of
any sinking fund payment or in respect of a covenant or provision which cannot
be modified or amended without the consent of each of the Holders of affected
Debt Securities. (Section 513)
Except as otherwise provided in the provisions of the Indenture relating to
the duties of the Trustee in case an Event of Default (as defined) shall occur
and be continuing, the Trustee will be under no obligation to exercise any of
its rights or powers under the Indenture at the request or direction of any of
the Holders, unless such Holders shall have offered to the Trustee reasonable
security or indemnity. (Section 603) Subject to such provisions for the
indemnification of the Trustee, the Holders of a majority in principal amount of
the Outstanding Debt Securities of any series affected 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 Debt Securities of such series. (Section 512)
IKON is required to furnish to the Trustee annually a statement as to any
default under the Indenture. (Section 1009)
DEFEASANCE AND COVENANT DEFEASANCE
The Indenture provides, if such provision is made applicable to the Debt
Securities of any series pursuant to Section 301 of the Indenture, that IKON may
elect either (i) to defease and be discharged from any and all obligations with
respect to such Debt Securities (except for the obligations to register the
transfer or exchange of such Debt Securities, to replace temporary or mutilated,
destroyed, lost or stolen Debt Securities, to maintain an office or agency in
respect of the Debt Securities and to hold moneys for payment in trust)
("defeasance") or (ii) to be released from its obligations with respect to such
Debt Securities under the covenants described above under "Certain Restrictive
Provisions," in which case the events specified above in clauses (iv) (insofar
as it relates to such covenants) and (v) under "Events of Default" shall no
longer be Events of Default in respect of such Debt Securities ("covenant
defeasance"), in either case upon the deposit with the Trustee (or other
qualifying trustee), in trust for such purpose, of money, and/or U.S. Government
Obligations (as defined) which through the payment of principal and interest in
accordance with their terms will provide money, in an amount sufficient to pay
the principal of (and premium, if any) and interest on such Debt Securities and
any mandatory sinking fund or analogous payments thereon on the scheduled due
dates therefor. Such a trust may only be established if, among other things,
IKON has delivered to the Trustee an opinion of counsel (as specified in the
Indenture) to the effect that the Holders of such Debt Securities will not
recognize income, gain or loss for Federal income tax purposes as a result of
such defeasance or covenant defeasance and will be subject to Federal income tax
on the same amounts, in the same manner and at the same times as would have been
the case if such defeasance or covenant defeasance had not occurred. Such
opinion, in the case of defeasance under clause (i) above, must refer to and be
based upon a ruling of the Internal Revenue Service or a change in applicable
Federal income tax law occurring after the date of the Indenture. (Sections
1301, 1302, 1303 and 1304)
REGARDING THE TRUSTEE
From time to time, the Trustee extends credit to, and performs other customary
banking services for, IKON in the ordinary course of business.
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DESCRIPTION OF CAPITAL STOCK
The Company is currently authorized to issue 300,000,000 shares of Common
Stock and 2,095,628 shares of Serial Preferred Stock ("Preferred Stock"). Both
classes are without par value. The Common Stock is subject to the express terms
of the Preferred Stock. The Preferred Stock may be issued from time to time in
one or more series, without stockholder approval, with such designations,
preferences and relative rights, and qualifications, limitations, or
restrictions thereof as shall be adopted by the Board of Directors. One series
of Preferred Stock, Series BB, is outstanding. The particular terms and
provisions of any series of Preferred Stock offered by the Prospectus
Supplement, and the extent to which such general terms and provisions described
below may apply thereto, are described in the Prospectus Supplement relating to
such series of Preferred Stock.
DIVIDEND RIGHTS
Common Stock. Dividends and other distributions of assets may be made with
respect to the Common Stock from time to time by the Board of Directors within
the limits and from the sources permitted by law after payment or provision for
payment of all accrued and unpaid dividends (which are cumulative) on the
Preferred Stock, so long as there is no default in any sinking fund provisions
for the Preferred Stock.
Preferred Stock. The Series BB Preferred Stock is entitled to payment of
annual per share dividends of $504.00 ($5.04 per Depositary Share).
So long as any shares of Preferred Stock are outstanding, the Company may not
(a) declare or pay any dividends (other than dividends payable in Common Stock
or other shares of the Company ranking junior to the Preferred Stock) to holders
of Common Stock or shares of the Company of any other class ranking on a parity
with or junior to the Preferred Stock, or (b) make any distributions of assets
(directly or indirectly, by purchase, redemption or otherwise) to the holders of
Common Stock or shares of the Company of any other class ranking on a parity
with or junior to the Preferred Stock (except in the case of shares purchased in
compromise of claims, or to prevent loss on doubtful debts and except in the
case of shares purchased out of the proceeds of the sale of Common Stock or
other shares ranking junior to the Preferred Stock received by the Company,
subsequent to January 1, 1968):
(a) Unless all accrued and unpaid dividends on shares of Preferred Stock,
including the full dividends for the then quarterly dividend period, shall
have been paid or declared and funds sufficient for payment thereof set apart;
and
(b) Unless there shall be no arrearages with respect to redemption of shares
of Preferred Stock from any sinking fund provided therefor.
No dividends may be paid upon or declared or set apart for any of the
Preferred Stock for any quarterly dividend period unless at the same time a like
proportionate dividend for the same quarterly dividend period, ratably in
proportion to the respective annual dividend rates fixed therefor, shall be paid
upon or declared or set apart for all Preferred Stock of all series then issued
and outstanding and entitled to receive such dividend.
PREEMPTIVE RIGHTS
Common Stock. The holders of Common Stock do not have any preemptive right to
purchase or have offered to them for purchase any shares or other securities of
the Company.
Preferred Stock. The only preemptive right of holders of Preferred Stock is to
participate in certain distributions, if any were to be made by the Company, to
holders of Common Stock of options or rights to acquire Common Stock, or of
evidences of the Company's debt or assets (other than cash).
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COMMON STOCK PURCHASE RIGHTS
In February 1988, the Company declared and paid a dividend distribution of one
right for each outstanding share of Common Stock. The Company amended the Rights
Agreement governing the Rights on June 18, 1997. The Rights become exercisable
ten days (or such later date, not beyond thirty days, as is fixed by the Board
of Directors) after the earlier of: (a) public announcement that an individual
or group has acquired or obtained the right to acquire 15% or more of the
Company's Common Stock or (b) an individual or group commences or announces an
intention to commence a tender or exchange offer that could result in the
acquisition of 15% or more of such securities (the "Separation Date"). When
exercisable, each Right entitles the holder to purchase one one-hundredth of a
share of IKON's Series 12 Preferred Stock for $204 (the "Exercise Price"),
subject to adjustment. Further, if any person or group owning 15% or more of
IKON's outstanding Common Stock (a) consolidates or merges into the Company, (b)
engages in certain self-dealing practices with the Company, or (c) causes the
Company to forego or reduce quarterly dividends or take an action which would
result in a more than 2% increase in the other entity's proportionate share of
the Company's outstanding shares; or if any person or group acquires 15% or more
of the Company's outstanding stock other than through a tender or exchange offer
for all shares of Common Stock that provides a fair price and other terms for
such shares, each Right would entitle the holder thereof to acquire for the
Exercise Price shares of Common Stock having a market value equal to twice the
Right's exercise price.
If the Company were acquired in a merger or other business combination, or if
more than 50% of its earning power or assets were sold in one transaction or a
series of transactions, each Right would entitle the holder thereof to purchase
shares of the acquiring company's common stock having a market value equal to
twice the Right's exercise price. The Rights that are or were held by a person
or group owning 15% or more of IKON's outstanding voting securities become void
if such person or group engages in an event which entitles holders of the Rights
to purchase Common Stock having a market value equal to twice the Right's
exercise price.
The Rights, which expire on June 18, 2007, are non-voting and may be redeemed
by IKON at a price of $.01 per Right any time prior to ten days after public
announcement that a person has acquired 15% or more of the Company's outstanding
voting securities. Until the Separation Date, each Right is transferable only
together with, and will be transferred by a transfer of, the associated share of
Common Stock.
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VOTING RIGHTS
Common Stock. Subject to certain voting rights of holders of the Preferred
Stock to vote in certain circumstances and with respect to certain matters as a
class, the holders of the Common Stock currently have full voting rights upon
all matters presented for shareholder action. Shareholders do not have the right
to cumulate votes in electing directors.
Preferred Stock. The holders of Preferred Stock are entitled to one vote per
share, and except as otherwise provided by specific provisions of the Company's
Articles of Incorporation or by Ohio law, to vote on all matters together with
the holders of Common Stock as one class. The holders of Preferred Stock are not
entitled to cumulate votes in electing directors. The Articles of Incorporation
of IKON provide that in the event of default in the payment, in whole or in
part, of six quarterly dividends on the Preferred Stock, whether or not
consecutive, the holders of shares of Preferred Stock will be entitled to elect
two directors of the Company, to serve in addition to the directors otherwise
elected. Such right to elect additional directors is in lieu of the other rights
of the holders of Preferred Stock to vote for directors, and will remain in
effect until no quarterly dividend is in default. It is also provided that the
vote or written consent of at least two-thirds of the outstanding shares of
Preferred Stock voting as a class is necessary to effect (i) any amendment or
repeal of any of the provisions of the Articles of Incorporation or the Code of
Regulations of IKON which affects the voting powers, rights, privileges or
preferences of the holders of the Preferred Stock, (ii) the authorization or
issue of any stock, or any security convertible into any stock, ranking prior to
the Preferred Stock, (iii) the purchase or redemption of less than all the
Preferred Stock then outstanding (except in accordance with a stock purchase
offer made to all holders of Preferred Stock) when any dividends or sinking fund
obligations on the Preferred Stock are in arrears, or (iv) the sale, lease or
conveyance by IKON of all or substantially all of its property or business, its
voluntary liquidation or dissolution, or its consolidation with or merger into
any other corporation, unless the resulting corporation will have no shares
authorized or outstanding ranking prior to or on a parity with the Preferred
Stock except the same number with the same rights and preferences as those of
the Company authorized and outstanding immediately preceding such consolidation
or merger, and unless each holder of Preferred Stock immediately prior thereto
receives the same number of shares, with the same rights and preferences, of the
resulting corporation. It is further provided that the vote or written consent
of two-thirds of the holders of shares of any series is necessary to amend the
Articles of Incorporation or Code of Regulations of the Company in such a way as
to affect adversely and particularly the preferences, rights, powers or
privileges of such series. No such vote or consent of the holders of Preferred
Stock or any series thereof is required if provision has been made for the
redemption of all of the Preferred Stock (or any series thereof). In addition,
the Company may not create additional classes of stock or increase the
authorized number of shares of Preferred Stock ranking on a parity with the
Preferred Stock with respect, in each case, to the payment of dividends and
amounts upon liquidation, dissolution and winding up without the vote or written
consent of at least a majority of the outstanding shares of Preferred Stock
voting as a class.
REDEMPTION PROVISIONS AND SINKING FUND
Common Stock. The Common Stock is not redeemable.
Preferred Stock. The directors are empowered to determine any redemption
rights and price of each series of the Preferred Stock.
The Series BB Preferred Stock and the Depositary Shares representing such
stock are not redeemable.
CONVERSION RIGHTS
Common Stock. The Common Stock is not convertible into any other security.
Preferred Stock. The directors are empowered to determine whether the shares
of any series of the Preferred Stock will be convertible into Common Stock, and,
if so, the conversion price or prices and the other terms or provisions of such
rights. Series BB preferred shares are convertible at the option of the holder
until October 1, 1998, at which time each share will automatically convert to a
number of shares of Common Stock determined by an exchange rate which
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will vary based on the market price of the Common Stock at that time, and which
will range from 2.0468 to 2.4972 shares of Common Stock per Depositary Share.
The conversion rights with respect to the outstanding Preferred Stock are
subject to proportionate adjustment if IKON combines or splits the outstanding
shares of Common Stock or pays a dividend in Common Stock. Shares of Common
Stock issuable upon the exercise of outstanding stock options are similarly
subject to proportionate adjustment in such events. Shares of Preferred Stock
which have been converted must be retired and may not be reissued.
LIQUIDATION RIGHTS
Common Stock. The holders of Common Stock are entitled pro rata to the
assets of IKON in the event of voluntary or involuntary liquidation, subject to
the rights of creditors and the rights of the holders of the Preferred Stock to
receive certain per share amounts plus accrued unpaid dividends.
Preferred Stock. In the event of voluntary or involuntary liquidation, the
holders of the outstanding Series BB Preferred Stock are entitled to receive
$7,737.50 per share ($77.375 per Depositary Share) plus accrued and unpaid
dividends. At December 31, 1997, the preference upon liquidation of the shares
of Preferred Stock of Series BB aggregated $290,170,000. After provision for the
liquidation preference of Preferred Stock at December 31, 1997, the portion of
shareholders' equity applicable to Common Stock was $1,240,906,000. In the
opinion of counsel for IKON, there are no restrictions upon the payment of
dividends or other distributions out of surplus solely by reason of the excess
of the liquidation preference over the carrying value of the Preferred Stock,
and there are no remedies available to security holders before or after the
payment of any dividend or distribution solely because such dividend may reduce
surplus to an amount less than the amount of such excess. The Preferred Stock
has priority over the Common Stock on any liquidation, dissolution or winding up
to the extent of the liquidation price plus any accrued and unpaid dividends.
The directors have authority in establishing any series to determine the
liquidation price for each series in the event of any liquidation, dissolution
or winding up.
DESCRIPTION OF DEPOSITARY SHARES
The description set forth below and in any Prospectus Supplement of certain
provisions of the Deposit Agreement and of the Depositary Shares and Depositary
Receipts (as those terms are defined below) does not purport to be complete and
is subject to, and qualified in its entirety by reference to, the form of
Deposit Agreement and form of Depositary Receipts which are filed as an exhibit
to the Registration Statement of which this Prospectus is a part.
GENERAL
The Company may, at its option, elect to offer fractional shares, rather than
full shares, of any series of Preferred Stock. Each such fractional share of
Preferred Stock will be represented by a depositary share (collectively, the
"Depositary Shares") pursuant to the terms of a Deposit Agreement (the "Deposit
Agreement") among the Company, a bank or trust company selected by the Company
(the "Depositary") and all holders from time to time of depositary receipts
issued thereunder (the "Depositary Receipts"). The Depositary Shares will be
evidenced by Depositary Receipts. Subject to the terms of the Deposit Agreement,
each owner of a Depositary Share will be entitled, proportionately, to all the
rights, preferences and privileges of the fractional share of Preferred Stock
represented thereby (including dividend, voting and liquidation rights), and
subject to all of the limitations of the fractional share of Preferred Stock
represented thereby, which are either summarized above under "Description of
Capital Stock" or set forth in the Prospectus Supplement relating to such series
of Preferred Stock.
ISSUANCE OF DEPOSITARY RECEIPTS AND WITHDRAWAL OF PREFERRED STOCK FROM DEPOSIT
Immediately following the issuance by the Company of the shares of any series
of Preferred Stock to be represented by Depositary Shares, the Company will
deposit such shares of Preferred Stock with the Depositary, which will then
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issue and deliver the Depositary Receipts to the Company. The Company will, in
turn, deliver the Depositary Receipts to the purchasers of the Preferred Stock.
Depositary Receipts will be issued evidencing only whole Depositary Shares.
Upon surrender of Depositary Receipts at the Corporate Office (as defined in
the Deposit Agreement) of the Depositary (or such other office as the Depositary
may designate), the owner of the Depositary Shares evidenced thereby is entitled
at such office to certificates evidencing the number of shares of Preferred
Stock (but only in whole shares of Preferred Stock) represented by such
Depositary Receipts. If the Depositary Receipts delivered by the holder evidence
a number of Depositary Shares in excess of the number of whole shares of
Preferred Stock to be withdrawn, the Depositary will deliver to such holder at
the same time a new Depositary Receipt evidencing such excess number of
Depositary Shares.
DIVIDENDS AND OTHER DISTRIBUTIONS
The Depositary will distribute all cash dividends or other cash distributions
received in respect of the Preferred Stock to the record holders of Depositary
Shares representing such Preferred Stock in proportion to the numbers of such
Depositary Shares owned by such holders on the relevant record date. In the
event of a distribution other than in cash, the Depositary will distribute
property received by it to the record holders of Depositary Shares entitled
thereto, unless the Depositary determines that it is not feasible to make such
distribution, in which case the Depositary may, with the approval of the
Company, sell such property and distribute the net proceeds from such sale to
such holders.
REDEMPTION OF DEPOSITARY SHARES
If a series of the Preferred Stock underlying the Depositary Shares is subject
to redemption, the Depositary Shares will be redeemed from the proceeds received
by the Depositary resulting from the redemption, in whole or in part, of such
series of the Preferred Stock held by the Depositary. The redemption price per
Depositary Share will be equal to the applicable fraction of the redemption
price per share payable with respect to such series of the Preferred Stock. If
less than all the Depositary Shares are to be redeemed, the Depositary Shares to
be redeemed will be selected by lot or pro rata.
After the date fixed for redemption (which will be the same date as the
redemption date for the Preferred Stock), the Depositary Shares so called for
redemption will no longer be deemed to be outstanding and all rights of the
holders of the Depositary Shares will cease, except the right to receive the
moneys payable upon such redemption and any money or other property to which the
holders of such Depositary Shares were entitled upon such redemption upon
surrender to the Depositary of the Depositary Receipts evidencing such
Depositary Shares.
VOTING
Upon receipt of notice of any meeting at which the holders of the Preferred
Stock are entitled to vote, the Depositary will mail the information contained
in such notice of meeting to the record holders of the Depositary Shares
relating to such Preferred Stock. Each record holder of such Depositary Shares
on the record date (which will be the same date as the record date for the
Preferred Stock) will be entitled to instruct the Depositary as to the exercise
of the voting rights pertaining to the number of shares of Preferred Stock
underlying such holder's Depositary Shares. The Depositary will endeavor,
insofar as practicable, to vote the number of shares of Preferred Stock
underlying such Depositary Shares in accordance with such instructions, and the
Company will agree to take all action which may be deemed necessary by the
Depositary in order to enable the Depositary to do so. The Depositary will
abstain from voting shares of Preferred Stock to the extent the Depositary does
not receive specific instructions from the holders of Depositary Shares relating
to such shares.
AMENDMENT OF THE DEPOSIT AGREEMENT
The form of Depositary Receipt evidencing the Depositary Shares and any
provision of the Deposit Agreement may at any time be amended by agreement
between the Company and the Depositary. However, any amendment which
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imposes or increases any fees, taxes, or other changes upon holders of
Depositary Receipts (other than taxes and other governmental charges, fees, and
other expenses payable by such holders as stated under "Charges of Depositary"),
or which otherwise prejudices any substantial existing right of holders of
Depositary Receipts, will not take effect as to outstanding Depositary Receipts
until the expiration of 30 days after notice of such amendment has been mailed
to the record holders of outstanding Depositary Receipts. Every holder of
Depositary Receipts at the time any such amendment becomes effective shall be
deemed to consent and agree to such amendment and to be bound by the Deposit
Agreement.
CHARGES OF DEPOSITARY
The Company will pay all transfer and other taxes and governmental charges
that arise solely from the existence of the depositary arrangements. The Company
will pay the charges of the Depositary in connection with the initial deposit of
the Preferred Stock and any redemption of the Preferred Stock. Holders of
Depositary Shares will pay all other transfer and other taxes and governmental
charges, and, in addition, such other charges as are expressly provided in the
Deposit Agreement to be for their accounts.
MISCELLANEOUS
The Depositary will forward to the holders of Depositary Shares all reports
and communications from the Company which the Company is required to furnish to
the holders of the Preferred Stock.
Neither the Depositary nor the Company will be liable if it is prevented or
delayed by law or any circumstances beyond its control in performing its
obligations under the Deposit Agreement. The obligations of the Company and the
Depositary under the Deposit Agreement will be limited to performance in good
faith of their duties thereunder and they will not be obligated to prosecute or
defend any legal proceedings in respect of any Depositary Shares or Preferred
Stock unless satisfactory indemnity is furnished. They may rely upon written
advice of counsel or accountants, or information provided by persons presenting
Preferred Stock for deposit, holders of Depositary Shares or other persons
believed to be competent and on documents believed to be genuine.
RESIGNATION AND REMOVAL OF DEPOSITARY; TERMINATION OF THE DEPOSIT AGREEMENT
The Depositary may resign at any time by delivering to the Company notice of
its election to do so, and the Company may at any time remove the Depositary,
any such resignation or removal to take effect upon the appointment of a
successor Depositary and its acceptance of such appointment. Such successor
Depositary will be appointed by the Company within 45 days after delivery of the
notice of resignation or removal. The Deposit Agreement may be terminated at the
direction of the Company or by the Depositary if a period of 45 days shall have
expired after the Depositary has delivered to the Company written notice of its
election to resign and a successor depositary shall not have been appointed.
Upon termination of the Deposit Agreement, the Depositary will discontinue the
transfer of Depositary Receipts, will suspend the distribution of dividends to
the holders thereof, and will not give any further notices (other than notice of
such termination) or perform any further acts under the Deposit Agreement except
that the Depositary will continue to collect dividends and other distributions
pertaining to the Preferred Stock, will sell rights, preferences or privileges
as provided in the Deposit Agreement and will continue to deliver Preferred
Stock certificates together with such dividends and distributions and the net
proceeds of any sales of rights, preferences, privileges, or other property in
exchange for Depositary Receipts surrendered. At any time after the expiration
of two years from the date of termination, the Depositary may sell the Preferred
Stock and hold the proceeds of such sale, without interest, for the benefit of
the holders of Receipts who have not then surrendered their Receipts. After
making such sale, the Depositary will be discharged from all obligations under
the Deposit Agreement except to account for such proceeds. In the event the
Deposit Agreement is terminated, the Company will use its best efforts to list
the underlying shares of Preferred Stock on any stock exchange on which such
Depositary Shares were listed.
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PLAN OF DISTRIBUTION
The Company may sell Securities to or through underwriters, and also may sell
Securities directly to other purchasers or through agents.
The distribution of the Securities may be effected from time to time in one or
more transactions at a fixed price or prices, which may be changed, or at market
prices prevailing at the time of sale, at prices related to such prevailing
market prices or at negotiated prices.
Sales of shares of Common Stock offered hereby may be effected from time to
time in one or more transactions on the NYSE or in negotiated transactions or a
combination of such methods of sale, at market prices prevailing at the time of
sale, at prices related to such prevailing market prices or at other negotiated
prices. In connection with distributions of shares of Common Stock or otherwise,
the Company may enter into hedging transactions with broker-dealers in
connection with which such broker-dealers may sell shares of Common Stock
registered hereunder in the course of hedging through short sales the positions
they assume with the Company.
In connection with the sale of Securities, underwriters or agents may receive
compensation from the Company or from purchasers of Securities for whom they may
act as agents in the form of discounts, concessions or commissions. Underwriters
may sell Securities to or through dealers, and such dealers may receive
compensation in the form of discounts, concessions or commissions from the
underwriters and/or commissions from the purchasers for whom they may act as
agents. Any underwriters or agents participating in the distribution of the
Securities may be deemed to be underwriters, and any discounts or commissions
received by them from the Company and any profit on the resale of Securities by
them may be deemed to be underwriting discounts and commissions under the
Securities Act of 1933 (the "Act"). Any such underwriter or agent will be
identified, and any such compensation received from the Company will be
described, in the Prospectus Supplement.
Under agreements which may be entered into by the Company, underwriters and
agents who participate in the distribution of Securities may be entitled to
indemnification by the Company against certain liabilities, including
liabilities under the Act.
If so indicated in the Prospectus Supplement, the Company will authorize
underwriters or other persons acting as the Company's agents to solicit offers
by certain institutions to purchase Securities from the Company pursuant to
contracts providing for payment and delivery on a future date. Institutions with
which such contracts may be made include commercial and savings banks, insurance
companies, pension funds, investment companies, educational and charitable
institutions and others, but in all cases such institutions must be approved by
the Company. The obligations of any purchaser under any such contract will be
subject to the condition that the purchase of such Securities shall not at the
time of delivery by prohibited under the laws of the jurisdiction to which such
purchaser is subject. The underwriters and such other agents will not have any
responsibility in respect of the validity or performance of such contracts.
Certain of the underwriters or agents and their associates may be customers
of, engage in transactions with and perform services for the Company in the
ordinary course of business.
EXPERTS
The consolidated financial statements of IKON Office Solutions, Inc.
incorporated by reference in the Company's Annual Report (Form 10-K) for the
year ended September 30, 1997 have been audited by Ernst & Young LLP,
independent auditors, as set forth in their report thereon incorporated by
reference therein and incorporated herein by reference. Such consolidated
financial statements are incorporated herein by reference in reliance upon such
report given upon the authority of such firm as experts in accounting and
auditing.
16
<PAGE>
VALIDITY OF SECURITIES
The validity of the Securities will be passed upon for IKON by its General
Counsel, William F. Drake, Esq., and for any underwriters by Sullivan &
Cromwell, New York, New York. As of January 31, 1998, Mr. Drake beneficially
owned 152,845 shares of Common Stock of IKON, including 15,741 shares over which
he has the right to acquire beneficial ownership through the exercise of stock
options granted under the Company's stock option plans. Sullivan & Cromwell from
time to time performs legal services for IKON.
17
<PAGE>
PART II. INFORMATION NOT REQUIRED IN PROSPECTUS
ITEM 14. OTHER EXPENSES OF ISSUANCE AND DISTRIBUTION*
<TABLE>
<S> <C>
S.E.C. Filing Fee.................................................... $147,500
Rating Agency Fees................................................... 312,750
Trustee's Charges.................................................... 10,000
Printing and Engraving............................................... 90,000
Accounting Fees...................................................... 100,000
Stock Exchange Listing Fees.......................................... 25,000
Blue Sky Fees........................................................ 30,000
Miscellaneous........................................................ 20,000
--------
Total.............................................................. $735,250
========
</TABLE>
* All of the amounts, except for the S.E.C. filing fee, have been estimated.
Rating agency fees and trustee's charges are estimated for a total of $350
million in debt securities.
ITEM 15. INDEMNIFICATION OF DIRECTORS AND OFFICERS
The Ohio General Corporation Law provides that a corporation shall indemnify
persons who incur certain liabilities or expenses in the successful defense of a
suit or a proceeding brought by reason of the fact that such persons are or were
directors or officers of the corporation. Pursuant to Ohio law, IKON has
adopted, as part of its Code of Regulations, provisions whereby IKON shall
indemnify such persons against expenses (including attorneys' fees) reasonably
incurred in connection with the successful defense of such actions.
If unsuccessful in defense of a third-party civil suit or a criminal suit, or
if such a suit is settled, such a person shall be indemnified under the Code of
Regulations against both (1) expenses (including attorneys' fees) and (2)
judgments, fines and amounts paid in settlement if he acted in good faith and in
a manner he reasonably believed to be in, or not opposed to, the best interests
of IKON, and with respect to any criminal action, had no reasonable cause to
believe his conduct was unlawful.
If unsuccessful in defense of a suit brought by or in the right of IKON, or if
such suit is settled, such a person shall be indemnified under such law only
against expenses (including attorneys' fees) incurred in the defense or
settlement of such suit if he acted in good faith and in a manner he reasonably
believed to be in, or not opposed to, the best interests of IKON except that if
such a person is adjudged to be liable in such a suit for negligence or
misconduct in the performance of his duty to IKON, he cannot be indemnified
unless specific court approval is obtained.
IKON has purchased liability insurance policies covering its directors and
officers to provide protection where IKON cannot legally indemnify a director or
officer and where a claim arises under the Employee Retirement Income Security
Act of 1974 against a director or officer based upon an alleged breach of
fiduciary duty or other wrongful act.
ITEM 16. EXHIBITS
EXHIBIT
NUMBER DESCRIPTION OF EXHIBITS
- -------
(1) --Form of Underwriting Agreement for Debt (incorporated herein by
reference to Form S-3 of the registrant, Registration Statement No. 33-
4829, Exhibit (1))
(1.1) --Form of Underwriting Agreement for Equity (incorporated herein by
reference to Form S-3 of the registrant, Registration Statement No. 33-
62460, Exhibit (1.1))
(1.2) --Form of Distribution Agreement (incorporated herein by reference to
Form S-3 of the Registrant, Registration Statement No. 33-64177, Exhibit
(1.2))
(4) --Indenture between the registrant and First Union National Bank,
Trustee dated as of December 11, 1995
II-1
<PAGE>
(4.1) --Form of Debt Securities (included in the form of Indenture filed as
Exhibit (4) to this Registration Statement)
(4.2) --Form of Certificate for Shares of Common Stock of IKON Office
Solution, Inc.
(4.3) --Form of Certificate for Shares of Preferred Stock of IKON Office
Solutions, Inc.
(4.4) --Form of Certificate for Depositary Receipts (included in the form of
Deposit Agreement incorporated by reference in Exhibit (4.5) to this
Registration Statement)
(4.5) --Form of Deposit Agreement (incorporated herein by reference to Form S-
3 of the registrant, Registration Statement No. 33-62460, Exhibit (4.5))
(5) --Opinion of William F. Drake, General Counsel of the registrant, as to
the validity of the Securities
(12.1) --Computation of Ratio of Earnings to Fixed Charges
(12.2) --Computation of Ratio of Earnings to Fixed Charges excluding captive
finance subsidiaries
(12.3) --Computation of Ratio of Earnings to Fixed Charges and Preferred Stock
Dividends
(12.4) --Computation of Ratio of Earnings to Fixed Charges and Preferred Stock
Dividends excluding captive finance subsidiaries
(23) --Consent of Ernst & Young LLP
(23.1) --Consent of William F. Drake, General Counsel of the registrant
(contained in the opinion filed as Exhibit (5) to this Registration
Statement)
(24) --Powers of Attorney; Certified Resolution re: Powers of Attorney
(25) --Form T-1 Statement of Eligibility under the Trust Indenture Act of
1939 of First Union National Bank, Trustee
ITEM 17. UNDERTAKINGS
The undersigned registrant hereby undertakes:
(1) To file, during any period in which offers or sales are bring 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 amendments thereof) which, individually or in the aggregate,
represent a fundamental change in the information set forth in the
registration statement. Notwithstanding the foregoing, any increase or
decrease in volume of securities offered (if the total dollar value of
securities offered would not exceed that which was registered) and any
deviation from the low or high and of the estimated maximum offering range may
be reflected in the form of prospectus filed with the Commission pursuant to
Rule 424(b) if, in the aggregate, the changes in volume and price represent no
more than 20 percent change in the maximum aggregate offering price set forth
in the ''Calculation of Registration Fee'' table in the effective registration
statement; and
(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.
(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 herein, and the
offering of such securities at that time shall be deemed to be the initial bona
fide offering thereof.
(3) To remove from registration by means of a post-effective amendment any of
the securities being registered which remain unsold at the termination of the
offering.
The undersigned 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 that is incorporated by reference in the registration
statement shall be deemed to be a new registration statement
II-2
<PAGE>
relating to the securities offered therein, and the offering of such securities
at that time shall be deemed to be initial bona fide offering thereof.
The undersigned registrant hereby undertakes that:
(1) For purposes of determining any liability under the Securities Act of
1933, the information omitted from the form of prospectus filed as part of this
registration statement in reliance upon Rule 430A and contained in a form of
prospectus filed by the registrant pursuant to Rule 424(b)(1) or (4) or 497(h)
under the Securities Act shall be deemed to be part of this registration
statement as of the time it was declared effective.
(2) For the purpose of determining any liability under the Securities Act of
1933, each post-effective amendment that contains a form of prospectus 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.
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 provisions described under Item 15 above, or
otherwise, the registrant has been advised that in the opinion of the Securities
and Exchange Commission such indemnification is against public policy as
expressed in the Act and is, therefore, unenforceable. In the event that a claim
for indemnification against such liabilities (other than the payment by the
registrant of expenses incurred or paid by a director, officer or controlling
person of the registrant in the successful defense of any action, suit or
proceeding) is asserted against the registrant 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 Act and will be governed by the final adjudication of such
issue.
II-3
<PAGE>
SIGNATURES
PURSUANT TO THE REQUIREMENTS OF THE SECURITIES ACT OF 1933, IKON OFFICE
SOLUTIONS, INC. 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 MALVERN, COMMONWEALTH OF PENNSYLVANIA, ON THE 12TH DAY OF
MARCH, 1998.
IKON Office Solutions, Inc.
By /s/ Michael J. Dillon
--------------------------------
MICHAEL J. DILLON
VICE PRESIDENT AND CONTROLLER
(PRINCIPAL ACCOUNTING OFFICER)
PURSUANT TO THE REQUIREMENTS OF THE SECURITIES ACT OF 1933, THIS REGISTRATION
STATEMENT ON FORM S-3 HAS BEEN SIGNED BELOW BY THE FOLLOWING PERSONS IN THE
CAPACITIES AND ON THE DATES INDICATED.
<TABLE>
<CAPTION>
SIGNATURE TITLE DATE
--------- ----- ----
<S> <C> <C>
John E. Stuart* Chairman, President, Chief Executive Officer March 12, 1998
- ------------------------------
(JOHN E. STUART) and Director (Principal Executive Officer)
Kurt E. Dinkelacker* Executive Vice President, Chief Financial March 12, 1998
- ------------------------------
(KURT E. DINKELACKER) Officer and Director (Principal Financial Officer)
/s/ Michael J. Dillon Vice President and Controller (Principal March 12, 1998
- ------------------------------
(MICHAEL J. DILLON) Accounting Officer)
James R. Birle* Director March 12, 1998
- ------------------------------
(JAMES R. BIRLE)
Philip E. Cushing* Director March 12, 1998
- ------------------------------
(PHILIP E. CUSHING)
William F. Drake, Jr.* Director March 12, 1998
- ------------------------------
(WILLIAM F. DRAKE, JR.)
Frederick S. Hammer* Director March 12, 1998
- ------------------------------
(FREDERICK S. HAMMER)
Barbara Barnes Hauptfuhrer* Director March 12, 1998
- ------------------------------
(BARBARA BARNES HAUPTFUHRER)
Richard A. Jalkut* Director March 12, 1998
- ------------------------------
(RICHARD A. JALKUT)
</TABLE>
II-4
<PAGE>
*By his signature set forth below, Michael J. Dillon, pursuant to duly
executed Powers of Attorney duly filed with the Securities and Exchange
Commission, has signed this Registration Statement on behalf of the persons
whose signatures are printed above, in the capacities set forth opposite their
respective names.
/s/ Michael J. Dillon
- -----------------------------------
(MICHAEL J. DILLON)
II-5
<PAGE>
EXHIBIT INDEX
Exhibit Page
Number Description of Exhibits No.
- ------ ----------------------- ----
(1) Form of Underwriting Agreement for Debt (incorporated
herein by reference to Form S-3 of the registrant,
Registration Statement No. 33-4829, Exhibit (1))
(1.1) Form of Underwriting Agreement for Equity (incorporated
herein by reference to Form S-3 of the registrant,
Registration Statement No. 33-62460, Exhibit (1.1))
(1.2) Form of Distribution Agreement (incorporated herein by
reference to Form S-3 of the Registrant, Registration
Statement No. 33-64177, Exhibit (1.2))
(4) Indenture between the registrant and First Union National
Bank, Trustee dated as of December 11, 1995
(4.1) Form of Debt Securities (included in the form of Indenture
filed as Exhibit (4) to this Registration Statement)
(4.2) Form of Certificate for Shares of Common Stock of IKON
Office Solution, Inc.
(4.3) Form of Certificate for Shares of Preferred Stock of IKON
Office Solutions, Inc.
(4.4) Form of Certificate for Depositary Receipts (included in
the form of Deposit Agreement incorporated by reference in
Exhibit (4.5) to this Registration Statement)
(4.5) Form of Deposit Agreement (incorporated herein by reference
to Form S-3 of the registrant, Registration Statement No.
33-62460, Exhibit (4.5))
(5) Opinion of William F. Drake, General Counsel of the registrant,
as to the validity of the Securities
(12.1) Computation of Ratio of Earnings to Fixed Charges
(12.2) Computation of Ratio of Earnings to Fixed Charges excluding
captive finance subsidiaries
(12.3) Computation of Ratio of Earnings to Fixed Charges and Preferred
Stock Dividends excluding captive finance subsidiaries
(23) Consent of Ernst & Young LLP
(23.1) Consent of William F. Drake, General Counsel of the registrant
(contained in the opinion filed as Exhibit (5) to this
Registration Statement)
(24) Powers of Attorney; Certified Resolution re: Powers of Attorney
(25) Form T-1 Statement of Eligibility under the Trust Indenture Act
of 1939 of First Union National Bank, Trustee
<PAGE>
Exhibit 4
================================================================================
ALCO STANDARD CORPORATION
TO
FIRST FIDELITY BANK, National Association
Trustee
__________________
INDENTURE
Dated as of December 11, 1995
__________________
Debt Securities
================================================================================
<PAGE>
.....................................
Certain Sections of this Indenture relating to
Sections 310 through 318 of the
Trust Indenture Act of 1939:
<TABLE>
<CAPTION>
Trust Indenture Indenture
Act Section Section
- ----------------- ---------
<S> <C>
(S) 310(a)(1) ................................... 609
(a)(2) ................................... 609
(a)(3) ................................... Not Applicable
(a)(4) ................................... Not Applicable
(b) ................................... 608
610
(S) 311(a) ................................... 613
(b) . ................................. 613
(S) 312(a) ................................... 701
702(a)
(b) ................................... 702(b)
(c) ................................... 702(c)
(S) 313(a) ................................... 703(a)
(a)(4) ................................... 101
1004
(b) ................................... 703(a)
(c) ................................... 703(a)
(d) ................................... 703(b)
(S) 314(a) ................................... 704
(b) ................................... Not Applicable
(c)(1) ................................... 102
(c)(2) ................................... 102
(c)(3) ................................... Not Applicable
(d) ................................... Not Applicable
(e) ................................... 102
(S) 315(a) ................................... 601
(b) ................................... 602
(c) ................................... 601
(d) ................................... 601
(e) ................................... 514
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Trust Indenture Indenture
Act Section Section
- ----------------- ---------
<S> <C>
(S) 316(a) ................................... 101
(a)(1)(A) ................................... 502
512
(a)(1)(B) ................................... 513
(a)(2) ................................... Not Applicable
(b) ................................... 508
(c) ................................... 104(c)
(S) 317(a)(1) ................................... 503
(a)(2) ................................... 504
(b) ................................... 1003
(S) 318(a) ................................... 107
</TABLE>
______________
Note: This reconciliation and tie shall not, for any purpose, be deemed to
be a part of the Indenture.
-ii-
<PAGE>
TABLE OF CONTENTS
<TABLE>
<CAPTION>
Page
----
<S> <C>
Parties............................................................... 1
Recitals of the Company............................................... 1
ARTICLE ONE
Definitions and Other Provisions
of General Application
Section 101. Definitions..................................... 1
Act............................................. 2
Affiliate....................................... 2
Attributable Debt............................... 2
Authenticating Agent............................ 2
Board of Directors.............................. 2
Board Resolution................................ 2
Business Day.................................... 2
Commission...................................... 3
Company......................................... 3
Company Request or Company Order................ 3
Consolidated Net Assets......................... 3
Corporate Trust Office.......................... 3
corporation..................................... 3
Defaulted Interest.............................. 3
Depositary...................................... 3
Event of Default................................ 3
Exchange Act.................................... 4
Expiration Date................................. 4
Global Security................................. 4
Holder.......................................... 4
Indenture....................................... 4
interest........................................ 4
Interest Payment Date........................... 4
Investment Company Act.......................... 4
Maturity........................................ 4
Notice of Default............................... 4
Officers' Certificate........................... 5
Opinion of Counsel.............................. 5
Original Issue Discount Security................ 5
Outstanding..................................... 5
Paying Agent.................................... 6
Person.......................................... 6
Place of Payment................................ 6
Predecessor Security............................ 6
</TABLE>
Note: This table of contents shall not, for any purpose, be deemed to be a part
of the Indenture.
-i-
<PAGE>
<TABLE>
<CAPTION>
Page
<S> <C>
Principal Property............................. 7
Redemption Date................................ 7
Redemption Price............................... 7
Regular Record Date............................ 7
Responsible Officer............................ 7
Restricted Subsidiary.......................... 7
Securities..................................... 7
Securities Act................................. 7
Security Register.............................. 7
Special Record Date............................ 7
Stated Maturity................................ 8
Subsidiary..................................... 8
Trustee........................................ 8
Trust Indenture Act............................ 8
U.S. Government Obligations.................... 8
Vice President................................. 8
Section 102. Compliance Certificates and
Opinions.......................................... 8
Section 103. Form of Documents Delivered to
Trustee........................................... 9
Section 104. Acts of Holders; Record Dates...................... 10
Section 105. Notices, Etc. to Trustee and
Company........................................... 13
Section 106. Notice to Holders; Waiver.......................... 13
Section 107. Conflict with Trust Indenture
Act............................................... 14
Section 108. Effect of Headings and Table
of Contents....................................... 14
Section 109. Successors and Assigns............................. 14
Section 110. Separability Clause................................ 14
Section 111. Benefits of Indenture.............................. 14
Section 112. Governing Law...................................... 14
Section 113. Legal Holidays..................................... 15
</TABLE>
-ii-
<PAGE>
<TABLE>
<CAPTION>
Page
ARTICLE TWO
Security Forms
<S> <C>
Section 201. Forms Generally.................................... 15
Section 202. Form of Face of Security........................... 16
Section 203. Form of Reverse of Security........................ 18
SECTION 204. Form of Legend for Global
Securities........................................ 23
Section 205. Form of Trustee's Certificate
of Authentication................................. 23
ARTICLE THREE
The Securities
Section 301. Amount Unlimited; Issuable in
Series............................................ 23
Section 302. Denominations...................................... 27
Section 303. Execution, Authentication,
Delivery and Dating............................... 27
Section 304. Temporary Securities............................... 29
Section 305. Registration, Registration of
Transfer and Exchange............................. 30
Section 306. Mutilated, Destroyed, Lost and
Stolen Securities................................. 32
Section 307. Payment of Interest; Interest
Rights Preserved.................................. 33
Section 308. Persons Deemed Owners.............................. 34
Section 309. Cancellation....................................... 35
Section 310. Computation of Interest............................ 35
</TABLE>
-iii-
<PAGE>
<TABLE>
<CAPTION>
Page
ARTICLE FOUR
Satisfaction and Discharge
<S> <C>
Section 401. Satisfaction and Discharge of
Indenture......................................... 35
Section 402. Application of Trust Money......................... 37
ARTICLE FIVE
Remedies
Section 501. Events of Default.................................. 37
Section 502. Acceleration of Maturity;
Rescission and Annulment.......................... 39
Section 503. Collection of Indebtedness and
Suits for Enforcement by
Trustee........................................... 41
Section 504. Trustee May File Proofs of
Claim............................................. 42
Section 505. Trustee May Enforce Claims
Without Possession of
Securities........................................ 43
Section 506. Application of Money Collected..................... 43
Section 507. Limitation on Suits................................ 43
Section 508. Unconditional Right of Holders
to Receive Principal,
Premium and Interest.............................. 44
Section 509. Restoration of Rights and
Remedies.......................................... 45
Section 510. Rights and Remedies Cumulative..................... 45
Section 511. Delay or Omission Not Waiver....................... 45
Section 512. Control by Holders................................. 45
</TABLE>
-iv-
<PAGE>
<TABLE>
<CAPTION>
Page
<S> <C>
Section 513. Waiver of Past Defaults............................ 46
Section 514. Undertaking for Costs.............................. 46
Section 515. Waiver of Stay or Extension
Laws.............................................. 47
ARTICLE SIX
The Trustee
Section 601. Certain Duties and Responsibilities................ 47
Section 602. Notice of Defaults................................. 47
Section 603. Certain Rights of Trustee.......................... 48
Section 604. Not Responsible for Recitals
or Issuance of Securities......................... 49
Section 605. May Hold Securities................................ 49
Section 606. Money Held in Trust................................ 49
Section 607. Compensation and Reimbursement..................... 50
Section 608. Disqualification; Conflicting
Interests......................................... 50
Section 609. Corporate Trustee Required;
Eligibility....................................... 51
Section 610. Resignation and Removal, Appointment of
Successor......................................... 51
Section 611. Acceptance of Appointment by
Successor......................................... 53
Section 612. Merger, Conversion, Consolidation or
Succession to Business............................ 54
Section 613. Preferential Collection of Claims Against
Company........................................... 55
Section 614. Appointment of Authenticating Agent................ 55
</TABLE>
-v-
<PAGE>
<TABLE>
<CAPTION>
Page
ARTICLE SEVEN
Holders' List and Reports by Trustee and Company
<S> <C>
Section 701. Company to Furnish Trustee
Names and Addresses of
Holders........................................... 57
Section 702. Preservation of Information;
Communications to Holders......................... 58
Section 703. Reports by Trustee................................. 58
Section 704. Reports by Company................................. 58
ARTICLE EIGHT
Consolidation, Merger, Conveyance, Transfer or Lease
Section 801. Company May Consolidate, Etc.,
Only on Certain Terms............................. 59
Section 802. Successor Corporation Substituted.................. 60
ARTICLE NINE
Supplemental Indentures
Section 901. Supplemental Indentures
Without Consent of Holders........................ 60
Section 902. Supplemental Indentures with
Consent of Holders................................ 62
Section 903. Execution of Supplemental
Indentures........................................ 63
Section 904. Effect of Supplemental
Indentures........................................ 63
Section 905. Conformity with Trust
Indenture Act..................................... 64
Section 906. Reference in Securities to Supplemental
Indentures........................................ 64
</TABLE>
-vi-
<PAGE>
<TABLE>
<CAPTION>
Page
ARTICLE TEN
Covenants
<S> <C>
Section 1001. Payment of Principal, Premium
and Interest...................................... 64
Section 1002. Maintenance of Office or
Agency............................................ 64
Section 1003. Money for Securities to Be
Held in Trust..................................... 65
Section 1004. Corporate Existence................................ 66
Section 1005. Maintenance of Properties.......................... 67
Section 1006. Limitation on Liens................................ 67
Section 1007. Limitation on Sale and Lease-
Back.............................................. 71
Section 1008. Exemption from Limitations on
Liens and Sale and Lease-
Back.............................................. 72
Section 1009. Statement by Officers as to
Default........................................... 72
Section 1010. Waiver of Certain Covenants........................ 73
ARTICLE ELEVEN
Redemption of Securities
Section 1101. Applicability of Article........................... 73
Section 1102. Election to Redeem; Notice to
Trustee........................................... 73
Section 1103. Selection by Trustee of
Securities to Be Redeemed......................... 74
Section 1104. Notice of Redemption............................... 74
Section 1105. Deposit of Redemption Price........................ 75
</TABLE>
-vii-
<PAGE>
<TABLE>
<CAPTION>
Page
<S> <C>
Section 1106. Securities Payable on
Redemption Date................................... 76
Section 1107. Securities Redeemed in Part........................ 76
ARTICLE TWELVE
Sinking Funds
Section 1201. Applicability of Article........................... 76
Section 1202. Satisfaction of Sinking Fund
Payments with Securities.......................... 77
Section 1203. Redemption of Securities for
Sinking Fund...................................... 77
ARTICLE THIRTEEN
Defeasance and Covenant Defeasance
Section 1301. Applicability of Article; Company's Option to
Effect Defeasance or Covenant Defeasance.......... 78
Section 1302. Defeasance and Discharge........................... 78
Section 1303. Covenant Defeasance................................ 79
Section 1304. Conditions to Defeasance or Covenant
Defeasance........................................ 79
Section 1305. Deposited Money and U.S. Government
Obligations to be Held in Trust; Other
Miscellaneous Provisions.......................... 82
Section 1306. Reinstatement...................................... 82
Testimonium.......................................................... 83
Signatures and Seals................................................. 83
Acknowledgements..................................................... 84
</TABLE>
-viii-
<PAGE>
INDENTURE, dated as of December 11, 1995, between Alco Standard
Corporation, a corporation duly organized and existing under the laws of the
State of Ohio (herein called the "Company"), having its principal office at P.O.
Box 834, Valley Forge, Pennsylvania 19482, and First Fidelity Bank, National
Association, a national banking association duly organized and existing under
the laws of the United States, as Trustee (herein called the "Trustee").
RECITALS OF THE COMPANY
The Company has duly authorized the execution and delivery of this
Indenture to provide for the issuance from time to time of its unsecured
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 to make this Indenture a valid agreement of the
Company, in accordance with its terms, have been done.
NOW, THEREFORE, THIS INDENTURE WITNESSETH:
For and in consideration of the premises and the purchase of the
Securities by the Holders thereof, it is mutually covenanted and agreed, for the
equal and proportionate benefit of all Holders of the Securities or of series
thereof, as follows:
ARTICLE ONE
Definitions and Other Provisions
of General Application
Section 101. Definitions.
-----------
For all purposes of this Indenture, except as otherwise expressly
provided or unless the context otherwise requires:
(1) the terms defined in this Article have the meanings assigned to
them in this Article and include the plural as well as the singular;
(2) all other terms used herein which are defined in the Trust
Indenture Act, either directly or by reference therein, have the meanings
assigned to them therein;
<PAGE>
(3) all accounting terms not otherwise defined herein have the
meanings assigned to them in accordance with generally accepted accounting
principles;
(4) unless the context otherwise requires, any reference to an
"Article" or a "Section" refers to an Article or a Section, as the case may
be, of this Indenture; and
(5) the words "herein", "hereof" and "hereunder" and other words of
similar import refer to this Indenture as a whole and not to any particular
Article, Section or other subdivision.
Certain terms, used principally in Article Six, are defined in that
Article.
"Act", when used with respect to any Holder, has the meaning
specified in Section 104.
"Affiliate" of any specified Person means any other Person directly
or indirectly controlling or controlled by or under direct or indirect common
control with such specified Person. For the purposes of this definition,
"control" when used with respect to any specified Person means the power to
direct the management and policies of such Person, directly or indirectly,
whether through the ownership of voting securities, by contract or otherwise;
and the terms "controlling" and "controlled" have meanings correlative to the
foregoing.
"Attributable Debt" has the meaning specified in Section 1006.
"Authenticating Agent" means any Person authorized by the Trustee
pursuant to Section 614 to act on behalf of the Trustee to authenticate
Securities of one or more series.
"Board of Directors" means either the board of directors of the
Company or any duly authorized committee of that board.
"Board Resolution" means a copy of a resolution certified by the
Secretary or an Assistant Secretary of the Company to have been duly adopted by
the Board of Directors and to be in full force and effect on the date of such
certification, and delivered to the Trustee.
"Business Day", when used with respect to any Place of Payment, means
each Monday, Tuesday, Wednesday,
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Thursday and Friday which is not a day on which banking institutions in that
Place of Payment are authorized or obligated by law to close.
"Commission" means the Securities and Exchange Commission, as from
time to time constituted, created under the Securities Exchange Act of 1934, 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 corporation.
"Company Request" or "Company Order" means a written request or order
signed in the name of the Company by its Chairman of the Board, its Vice
Chairman, its President or a Vice President, and by its Treasurer, an Assistant
Treasurer, its Secretary or an Assistant Secretary, and delivered to a
Responsible Officer of the Trustee.
"Consolidated Net Assets" has the meaning specified in Section 1006.
"Corporate Trust Office" means the principal office of the Trustee at
which at any particular time its corporate trust business shall be administered,
which office at the date of the original execution of this Indenture is located
at 765 Broad Street, 5th Floor, Newark, New Jersey 07102.
"corporation" includes corporations, associations, companies, joint-
stock companies or business trusts.
"Defaulted Interest" has the meaning specified in Section 307.
"Depositary" means, with respect to Securities of any series issuable
in whole or in part in the form of one or more Global Securities, a clearing
agency registered under the Exchange Act that is designated to act as Depositary
for such Securities as contemplated by Section 301.
"Event of Default" has the meaning specified in Section 501.
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<PAGE>
"Exchange Act" means the Securities Exchange Act of 1934 and any
statute successor thereto, in each case as amended from time to time.
"Expiration Date" has the meaning specified in Section 104.
"Global Security" means a Security that evidences all or part of the
Securities of any series and bears the legend set forth in Section 204 (or such
legend as may be specified as contemplated by Section 301 for such Securities).
"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,
including, for all purposes of this instrument and any such supplemental
indenture, the provisions of the Trust Indenture Act that are deemed to be a
part of and govern this instrument and any such supplemental indenture,
respectively. The term "Indenture" shall also include the terms of particular
series of Securities established as contemplated by Section 301.
"interest", when used with respect to an Original Issue Discount
Security which by its terms bears interest only after Maturity, means interest
payable after Maturity.
"Interest Payment Date", when used with respect to any Security,
means the Stated Maturity of an instalment of interest on such Security.
"Investment Company Act" means the Investment Company Act of 1940 and
any statute successor thereto, in each case as amended from time to time.
"Maturity", when used with respect to any Security, means the date on
which the principal of such Security or an instalment of principal becomes due
and payable as therein or herein provided, whether at the Stated Maturity or by
declaration or acceleration, call for redemption or otherwise.
"Notice of Default" means a written notice of the kind specified in
Section 501(4) or 501(5).
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<PAGE>
"Officers' Certificate" means a certificate signed by the Chairman of
the Board, the President or a Vice Presi dent, and by the Treasurer, an
Assistant Treasurer, the Secretary or an Assistant Secretary, of the Company,
and delivered to the Trustee. One of the officers signing an Officers'
Certificate given pursuant to Section 1009 shall be the principal executive,
financial or accounting officer of the Company.
"Opinion of Counsel" means a written opinion of counsel, who may be
counsel for the Company.
"Original Issue Discount Security" means any Security which provides
for an amount less than the principal amount thereof to be due and payable upon
a declaration of acceleration of the Maturity thereof pursuant to Section 502.
"Outstanding", when used with respect to Securities, means, as of the
date of determination, all Securities theretofore authenticated and delivered
under this Indenture, except:
------
(i) Securities theretofore cancelled by the Trustee or
delivered to the Trustee for cancellation;
(ii) Securities for whose payment or redemption money in the
necessary amount has been theretofore deposited with the Trustee or any
Paying Agent (other than the Company) in trust or set aside and segregated
in trust by the Company (if the Company shall act as its own Paying Agent)
for the Holders of such Securities; provided that, if such Securities are
--------
to be redeemed, notice of such redemption has been duly given pursuant to
this Indenture or provision therefor satisfactory to the Trustee has been
made; and
(iii) Securities which have been paid pursuant to Section 306
or in exchange for or in lieu of which other Securities have been
authenticated and delivered pursuant to this Indenture, other than any such
Securities in respect of which there shall have been presented to the
Trustee proof satisfactory to it that such Securities are held by a bona
fide purchaser in whose hands such Securities are valid obligations of the
Company;
provided, however, that in determining whether the Holders of the requisite
principal amount of the Outstanding Securities have given, made or taken any
request, demand,
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<PAGE>
authorization, direction, notice, consent, waiver or other action hereunder as
of any date, (A) the principal amount of an Original Issue Discount Security
which shall be deemed to be Outstanding shall be the amount of the principal
thereof which would be due and payable as of such date upon acceleration of the
Maturity thereof to such date pursuant to Section 502, (B) if, as of such date,
the principal amount payable at the Stated Maturity of a Security is not
determinable, the principal amount of such Security which shall be deemed to be
Outstanding shall be the amount as specified or determined as contemplated by
Section 301, (C) the principal amount of a Security denominated in one or more
foreign currencies or currency units which shall be deemed to be Outstanding
shall be the U.S. dollar equivalent, determined as of such date in the manner
provided as contemplated by Section 301, of the principal amount of such
Security (or, in the case of Security described in Clause (A) or (B) above, of
the amount determined as provided in such Clause), and (D) Securities owned by
the Company or any other obligor upon the Securities or any Affiliate of the
Company or of such other obligor shall be disregarded and deemed not to be
Outstanding, except that, in determining whether the Trustee shall be protected
in relying upon any such request, demand, authorization, direction, notice,
consent, waiver or other action, only Securities which the Trustee actually
knows to be so owned shall be so disregarded. Securities so owned which have
been pledged in good faith may be regarded as Outstanding if the pledgee
establishes to the satisfaction of the Trustee the pledgee's right so to act
with respect to such Securities and that the pledgee is not the Company or any
other obligor upon the Securities or any Affiliate of the Company or of such
other obligor.
"Paying Agent" means any Person authorized by the Company to pay the
principal of (and premium, if any) or interest on any Securities on behalf of
the Company.
"Person" means any individual, corporation, partnership, joint
venture, 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 301.
"Predecessor Security" of any particular Security means every
previous Security evidencing all or a portion of the same debt as that evidenced
by such particular Security;
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<PAGE>
and, for the purposes of this definition, any Security authenticated and
delivered under Section 306 in exchange for or in lieu of a mutilated,
destroyed, lost or stolen Security shall be deemed to evidence the same debt as
the mutilated, destroyed, lost or stolen Security.
"Principal Property" has the meaning specified in Section 1006.
"Redemption Date", when used with respect to any Security to be
redeemed, means the date fixed for such redemption by or pursuant to this
Indenture.
"Redemption Price", when used with respect to any Security to be
redeemed, means the price at which it is to be redeemed pursuant to this
Indenture.
"Regular Record Date" for the interest payable on any Interest
Payment Date on the Securities of any series means the date specified for that
purpose as contemplated by Section 301.
"Responsible Officer", when used with respect to the Trustee, shall
mean any officer within the Trustee's Corporate Trust Office (or any successor
group), including without limitation any vice president, any assistant vice
president, any assistant secretary or any other officer of the Trustee
customarily performing functions similar to those performed by any of the above-
designated officers, and also means, with respect to a particular corporate
trust matter, any other officer to whom such matter is referred because of his
knowledge of and familiarity with the particular subject.
"Restricted Subsidiary" has the meaning specified in Section 1006.
"Securities" has the meaning stated in the first recital of this
Indenture and more particularly means any Securities authenticated and delivered
under this Indenture.
"Securities Act" means the Securities Act of 1933 and any statute
successor thereto, in each case as amended from time to time.
"Security Register" and "Security Registrar" have the respective
meanings specified in Section 305.
"Special Record Date" for the payment of any Defaulted Interest means
a date fixed by the Trustee pursuant to Section 307.
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<PAGE>
"Stated Maturity", when used with respect to any Security or any
instalment of principal thereof or interest thereon, means the date specified in
such Security as the fixed date on which the principal of such Security or such
instalment of principal or interest is due and payable.
"Subsidiary" means a corporation more than 50% of the outstanding
voting stock of which is owned, directly or indirectly, by the Company or by one
or more other Subsidiaries, or by the Company and one or more other
Subsidiaries. For the purposes of this definition, "voting stock" means stock
which ordinarily has voting power for the election of directors, whether at all
times or only so long as no senior class of stock has such voting power by
reason of any contingency.
"Trustee" means the Person named as the "Trustee" in the first
paragraph of this instrument until a successor Trustee shall have become such
pursuant to the applicable provisions of this Indenture, and thereafter
"Trustee" shall mean or include each Person who is then a Trustee hereunder, and
if at any time there is more than one such Person, "Trustee" as used with
respect to the Securities of any series shall mean the Trustee with respect to
Securities of that series.
"Trust Indenture Act" means the Trust Indenture Act of 1939 as in
force at the date as of which this instrument was executed; provided, however,
that in the event the Trust Indenture Act of 1939 is amended after such date,
"Trust Indenture Act" means, to the extent required by any such amendment, the
Trust Indenture Act of 1939 as so amended.
"U.S. Government Obligations" has the meaning specified in Section
1304.
"Vice President", when used with respect to the Company or the
Trustee, means any vice president, whether or not designated by a number or a
word or words added before or after the title "vice president".
Section 102. Compliance Certificates and Opinions.
------------------------------------
Upon any application or request by the Company to the Trustee to take
any action under any provision of this Indenture, the Company shall furnish to
the Trustee such certificates and opinions as may be required under the Trust
Indenture Act. Each such certificate or opinion shall be given in the form of
an Officers' Certificate, to be given
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<PAGE>
by an officer of the Company, or an Opinion of Counsel, if to be given by
counsel, and shall comply with the requirements of the Trust Indenture Act and
any other requirements set forth in this Indenture.
Every certificate or opinion with respect to compliance with a
condition or covenant provided for in this Indenture shall include
(1) a statement that each individual signing such certificate or
opinion has read such covenant or condition and the definitions herein
relating thereto;
(2) a brief statement as to the nature and scope of the examination
or investigation upon which the statements or opinions contained in such
certificate or opinion are based;
(3) a statement that, in the opinion of each such individual, he has
made such examination or investigation as is necessary to enable him to
express an informed opinion as to whether or not such covenant or condition
has been complied with; and
(4) a statement as to whether, in the opinion of each such
individual, such condition or covenant has been complied with.
Section 103. Form of Documents Delivered to Trustee.
--------------------------------------
In any case where several matters are required to be certified by, or
covered by an opinion of, any specified Person, it is not necessary that all
such matters be certified by, or covered by the opinion of, only one such
Person, or that they be so certified or covered by only one document, but one
such Person may certify or give an opinion with respect to some matters and one
or more other such Persons as to other matters, and any such Person may certify
or give an opinion as to such matters in one or several documents.
Any certificate or opinion of an officer of the Company may be based,
insofar as it relates to legal matters, upon a certificate or opinion of, or
representations by, counsel, unless such officer knows, or in the exercise of
reasonable care should know, that the certificate or opinion or representations
with respect to the matters upon which his certificate or opinion is based are
erroneous. Any such certificate or opinion of counsel may be based, insofar as
it relates to factual matters, upon a certificate or opinion of, or
representations by, an
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<PAGE>
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 104. Acts of Holders; Record Dates.
-----------------------------
(a) Any request, demand, authorization, direction, notice, consent,
waiver or other action provided or permitted 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 agent duly
appointed in writing; and, except as herein otherwise expressly provided, such
action shall become effective when such instrument or instruments are delivered
to the Trustee and, where it is hereby expressly required, to the Company. Such
instrument or instruments (and the action embodied therein and evidenced
thereby) are herein sometimes referred to as the "Act" of the Holders signing
such instrument or instruments. Proof of execution of any such instrument or of
a writing appointing any such agent shall be sufficient for any purpose of this
Indenture and (subject to Section 601) conclusive in favor of the Trustee and
the Company, if made in the manner provided in this Section.
(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 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.
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<PAGE>
(d) Any request, demand, authorization, direction, notice, consent,
waiver or other Act of the Holder of any Security shall bind every future Holder
of the same Security and the Holder of every Security issued upon the
registration of transfer thereof or in exchange therefor or in lieu thereof in
respect of anything done, omitted or suffered to be done by the Trustee or the
Company in reliance thereon, whether or not notation of such action is made upon
such Security.
The Company may set any day as a record date for the purpose of
determining the Holders of Outstanding Securities of any series entitled to
give, make or take any request, demand, authorization, direction, notice,
consent, waiver or other action provided or permitted by this Indenture to be
given, made or taken by Holders of Securities of such series, provided that the
Company may not set a record date for, and the provisions of this paragraph
shall not apply with respect to, the giving or making of any notice,
declaration, request or direction referred to in the next paragraph. If any
record date is set pursuant to this paragraph, the Holders of Outstanding
Securities of the relevant series on such record date, and no other Holders,
shall be entitled to take the relevant action, whether or not such Holders
remain Holders after such record date; provided that no such action shall be
effective hereunder unless taken on or prior to the applicable Expiration Date
by Holders of the requisite principal amount of Outstanding Securities of such
series on such record date. Nothing in this paragraph shall be construed to
prevent the Company from setting a new record date for any action for which a
record date has previously been set pursuant to this paragraph (whereupon the
record date previously set shall automatically and with no action by any Person
be cancelled and of no effect), and nothing in this paragraph shall be construed
to render ineffective any action taken by Holders of the requisite principal
amount of Outstanding Securities of the relevant series on the date such action
is taken. Promptly after any record date is set pursuant to this paragraph, the
Company, at its own expense, shall cause notice of such record date, the
proposed action by Holders and the applicable Expiration Date to be given to the
Trustee in writing and to each Holder of Securities of the relevant series in
the manner set forth in Section 106.
The Trustee may set any day as a record date for the purpose of
determining the Holders of Outstanding Securities of any series entitled to join
in the giving or making of (i) any Notice of Default, (ii) any declaration of
acceleration referred to in Section 502, (iii) any request
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to institute proceedings referred to in Section 507(2) or (iv) any direction
referred to in Section 512, in each case with respect to Securities of such
series. If any record date is set pursuant to this paragraph, the Holders of
Outstanding Securities of such series on such record date, and no other Holders,
shall be entitled to join in such notice, declaration, request or direction,
whether or not such Holders remain Holders after such record date; provided that
no such action shall be effective hereunder unless taken on or prior to the
applicable Expiration Date by Holders of the requisite principal amount of
Outstanding Securities of such series on such record date. Nothing in this
paragraph shall be construed to prevent the Trustee from setting a new record
date for any action for which a record date has previously been set pursuant to
this paragraph (whereupon the record date previously set shall automatically and
with no action by any Person be cancelled and of no effect), and nothing in this
paragraph shall be construed to render ineffective any action taken by Holders
of the requisite principal amount of Outstanding Securities of the relevant
series on the date such action is taken. Promptly after any record date is set
pursuant to this paragraph, the Trustee, at the Company's expense, shall cause
notice of such record date, the proposed action by Holders and the applicable
Expiration Date to be given to the Company in writing and to each Holder of
Securities of the relevant series in the manner set forth in Section 106.
With respect to any record date set pursuant to this Section, the
party hereto which set such record dates may designate any day as the
"Expiration Date" and from time to time may change the Expiration Date to any
earlier or later day; provided that no such change shall be effective unless
notice of the proposed new Expiration Date is given to the other party hereto in
writing, and to each Holder of Securities of the relevant series in the manner
set forth in Section 106, on or prior to the existing Expiration Date. If an
Expiration Date is not designated with respect to any record date set pursuant
to this Section, the party hereto which set such record date shall be deemed to
have initially designated the 180th day after such record date as the Expiration
Date with respect thereto, subject to its right to change the Expiration Date as
provided in this paragraph. Notwithstanding the foregoing, no Expiration Date
shall be later than the 180th day after the applicable record date.
Without limiting the foregoing, a Holder entitled hereunder to take
any action hereunder with regard to any particular Security may do so with
regard to all or any part of the principal amount of such Security or by one or
more
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duly appointed agents each of which may do so pursuant to such appointment with
regard to all or any part of such principal amount.
Section 105. Notices, Etc. to Trustee and Company.
------------------------------------
Any request, demand, authorization, direction, notice, consent, waiver
or Act of Holders or other document provided or permitted by this Indenture to
be made upon, given or furnished to, or filed with,
(1) the Trustee by any Holder or by the Company shall be sufficient
for every purpose hereunder if made, given, furnished or filed in writing
to or with the Trustee at its Corporate Trust Office, Attention: Corporate
Trust Administration, or
(2) the Company by the Trustee or by any Holder shall be sufficient
for every purpose hereunder (unless otherwise herein expressly provided) if
in writing and mailed, first-class postage prepaid, to the Company
addressed to it at the address of its principal office specified in the
first paragraph of this instrument or at any other address previously
furnished in writing to the Trustee by the Company.
Section 106. Notice to Holders; Waiver.
-------------------------
Where this Indenture provides for notice to Holders of any event, such
notice shall be sufficiently given (unless otherwise herein expressly provided)
if in writing and mailed, first-class postage prepaid, to each Holder affected
by such event, at his address as it appears in the Security Register, not later
than the latest date (if any), and not earlier than the earliest date (if any),
prescribed for the giving of such notice. In any case where notice to Holders
is given by mail, neither the failure to mail such notice, nor any defect in any
notice so mailed, to any particular Holder shall affect the sufficiency of such
notice with respect to other Holders. Where this Indenture provides for notice
in any manner, such notice may be waived in writing by the Person entitled to
receive such notice, either before or after the event, and such waiver shall be
the equivalent of such notice. Waivers of notice by Holders shall be filed with
the Trustee, but such filing shall not be a condition precedent to the validity
of any action taken in reliance upon such waiver.
In case by reason of the suspension of regular mail service or by
reason of any other cause it shall be impracticable to give such notice by mail,
then such notifi-
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cation as shall be made with the approval of the Trustee shall constitute a
sufficient notification for every purpose hereunder.
Section 107. Conflict with Trust Indenture Act.
---------------------------------
If any provision hereof limits, qualifies or conflicts with a
provision of the Trust Indenture Act which is required under such Act to be a
part of and govern this Indenture, the latter provision shall control. If any
provision of this Indenture modifies or excludes any provision of the Trust
Indenture Act which may be so modified or excluded, the latter provision shall
be deemed to apply to this Indenture as so modified or to be excluded, as the
case may be.
Section 108. Effect of Headings and Table of Contents.
----------------------------------------
The Article and Section headings herein and the Table of Contents are
for convenience only and shall not affect the construction hereof.
Section 109. Successors and Assigns.
----------------------
All covenants and agreements in this Indenture by the Company shall
bind its successors and assigns, whether so expressed or not.
Section 110. Separability Clause.
-------------------
In case any provision in this Indenture or in the Securities shall be
invalid, illegal or unenforceable, the validity, legality and enforceability of
the remaining provisions shall not in any way be affected or impaired thereby.
Section 111. Benefits of Indenture.
---------------------
Nothing in this Indenture or in the Securities, express or implied,
shall give to any Person, other than the parties hereto and their successors
hereunder, the Security Registrar, any Paying Agent and any other agent of the
Company appointed hereunder and the Holders, any benefit or any legal or
equitable right, remedy or claim under this Indenture.
Section 112. Governing Law.
-------------
This Indenture and the Securities shall be governed by and construed
in accordance with the laws of the State of New York.
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Section 113. Legal Holidays.
--------------
In any case where any Interest Payment Date, Redemption Date or Stated
Maturity of any Security shall not be a Business Day at any Place of Payment,
then (notwithstanding any other provision of this Indenture or of the Securities
(other than a provision of any Security which specifically states that such
provision shall apply in lieu of this Section)) payment of interest or principal
(and premium, if any) need not be made at such Place of Payment on such date,
but may be made on the next succeeding Business Day at such Place of Payment
with the same force and effect as if made on the Interest Payment Date or
Redemption Date, or at the Stated Maturity, provided that no interest shall
accrue for the period from and after such Interest Payment Date, Redemption Date
or Stated Maturity, as the case may be.
ARTICLE TWO
Security Forms
Section 201. Forms Generally.
---------------
The Securities of each series shall be in substantially the form set
forth in this Article, or in such other form as shall be established by or
pursuant to a Board Resolution or in one or more indentures supplemental hereto,
in each case with such appropriate insertions, omissions, substitutions and
other variations as are required or permitted by this Indenture, and may have
such letters, numbers or other marks of identification and such legends or
endorsements placed thereon as may be required to comply with the rules of any
securities exchange or Depositary therefor or as may, consistently herewith, be
determined by the officers executing such Securities, as evidenced by their
execution thereof. If the form of Securities of any series is established by
action taken pursuant to a Board Resolution, a copy of an appropriate record of
such action shall be certified by the 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 303 for the authentication and delivery of such
Securities.
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<PAGE>
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
on steel engraved borders or may be produced in any other manner, all as
determined by the officers executing such Securities, as evidenced by their
execution of such Securities.
Section 202. Form of Face of Security.
------------------------
[Insert any legend required by the Internal Revenue Code and the
regulations thereunder.]
. . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . .
No. ......... $......
........................, a corporation duly organized and existing under the
laws of ...........(herein called the "Company", which term includes any
successor Person under the Indenture hereinafter referred to), for value
received, hereby promises to pay to .................., or registered assigns,
the principal sum of .......................... Dollars
on................................... [if the Security is to bear interest prior
to Maturity, insert -, and to pay interest thereon from .............. or from
the most recent Interest Payment Date to which interest has been paid or duly
provided for, semi-annually on.......... and.......... in each year, commencing
..................., at the rate of ....% per annum, until the principal hereof
is paid or made available for payment [if applicable, insert - , provided that
any principal and premium, and any such instalment of interest, which is overdue
shall bear interest at the rate of ... % per annum (to the extent that the
payment of such interest shall be legally enforceable), from the dates such
amounts are due until they are paid or made available for payment, and such
interest shall be payable on demand]. The interest so payable, and punctually
paid or duly provided for, on any Interest Payment Date will, as provided in
such Indenture, be paid to the Person in whose name this Security (or one or
more Predecessor Securities) is registered at the close of business on the
Regular Record Date for such interest, which shall be the ...... or......
(whether or not a Business Day), as the case may be, next preceding such
Interest Payment Date. Any such interest not so punctually paid or duly provided
for will forthwith cease to be payable to the Holder on such Regular Record Date
and
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<PAGE>
may either be paid to the Person in whose name this Security (or one or more
Predecessor Securities) is registered at the close of business on a Special
Record Date for the payment of such Defaulted Interest to be fixed by the
Trustee, notice whereof shall be given to Holders of Securities of this series
not less than 10 days prior to such Special Record Date, or be paid at any time
in any other lawful manner not inconsistent with the requirements of any
securities exchange on which the Securities of this series may be listed, and
upon such notice as may be required by such exchange, all as more fully provided
in said Indenture].
[If the Security is not to bear interest prior to Maturity, insert - The
principal of this Security shall not bear interest except in the case of a
default in payment of principal upon acceleration, upon redemption or at Stated
Maturity and in such case the overdue principal and any overdue premium shall
bear interest at the rate of ....% per annum (to the extent that the payment of
such interest shall be legally enforceable), from the dates such amounts are due
until they are paid or made available for payment. Interest on any overdue
principal or premium shall be payable on demand. [Any such interest on overdue
principal or premium which is not paid on demand shall bear interest at the rate
of ...% per annum (to the extent that the payment of such interest on interest
shall be legally enforceable), from the date of such demand until the amount so
demanded is paid or made available for payment. Interest on any overdue
interest shall be payable on demand.]
Payment of the principal of (and premium, if any) and [if applicable,
insert - any such] interest on this Security will be made at the office or
agency of the Company maintained for that purpose in ........, in such coin or
currency of the United States of America as at the time of payment is legal
tender for payment of public and private debts [if applicable, insert - ;
provided, however, that at the option of the Company payment of interest may be
made by check mailed to the address of the Person entitled thereto as such
address shall appear in the Security Register].
Reference is hereby made to the further provisions of this Security
set forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.
Unless the certificate of authentication hereon has been executed by
the Trustee referred to on the reverse hereof by manual signature, this Security
shall not be
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<PAGE>
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:
..............................
By............................
Attest:
...................
Section 203. Form of Reverse of Security.
---------------------------
This Security is one of a duly authorized issue of securities of the
Company (herein called the "Securities"), issued and to be issued in one or more
series under an Indenture, dated as of ........... (herein called the
"Indenture", which term shall have the meaning assigned to it in such
instrument), between the Company and ...................., as Trustee (herein
called the "Trustee", which term includes any successor trustee under the
Indenture), and reference is hereby made to the Indenture for a statement of the
respective rights, limitations of rights, duties and immunities thereunder of
the Company, the Trustee[, the holders of Senior Debt] and the Holders of the
Securities and of the terms upon which the Securities are, and are to be,
authenticated and delivered. This Security is one of the series designated on
the face hereof [if applicable, insert - . limited in aggregate principal amount
to $.......].
[If applicable, insert - The Securities of this series are subject to
redemption upon not less than 30 days' notice by mail, [if applicable, insert -
(1) on ........ in any year commencing with the year ..... and ending with the
year ..... through operation of the sinking fund for this series at a Redemption
Price equal to 100% of the principal amount, and (2)] at any time [If
applicable, insert - on or after ......., 19..], as a whole or in part, at the
election of the Company, at the following Redemption Prices
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<PAGE>
(expressed as percentages of the principal amount): If redeemed [if applicable,
insert - on or before .....................%, and if redeemed] during the 12-
month period beginning......... of the years indicated,
<TABLE>
<CAPTION>
Redemption Redemption
Year Year Price Price
- ---- ---- ---------- ----------
<S> <C> <C> <C>
</TABLE>
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 [if
applicable, insert - on or after.........], as a whole or in part, at the
election of the Company, at the Redemption Prices for redemption otherwise than
through operation of the sinking fund (expressed as percentages of the principal
amount) set forth in the table below: If redeemed during the 12-month period
beginning.........of the years indicated,
<TABLE>
<CAPTION>
Redemption Price
For Redemption Redemption Price For
Through Operation Redemption Otherwise
of the Than Through Operation
Year Sinking Fund of the Sinking Fund
- ---- ----------------- ----------------------
<S> <C> <C>
</TABLE>
-19-
<PAGE>
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 instalments whose Stated Maturity is on or prior to such Redemption
Date will be payable to the Holders of such Securities, or one or more
Predecessor Securities, of record at the close of business on the relevant
Record Dates referred to on the face hereof, all as provided in the Indenture.]
[If applicable, insert - Notwithstanding the foregoing, the Company
may not, prior to redeeming any Securities of this series as contemplated by [if
applicable, insert - Clause (2) of] the preceding paragraph as a part of, or in
anticipation of, any refunding operation by the application, directly or
indirectly, of moneys borrowed having an interest cost to the Company
(calculated in accordance with generally accepted financial practice) of less
than....% per annum.]
[If applicable, insert - The sinking fund for this series provides for
the redemption on..........in each year beginning with the year......and ending
with the year.... of [If applicable, insert - not less than $.......("mandatory
sinking fund") and not more than] $....... aggregate principal amount of
Securities of this series. Securities of this series acquired or redeemed by the
Company otherwise than through [if applicable, insert - mandatory] sinking fund
payments may be credited against subsequent [if applicable, insert - mandatory]
sinking fund payments otherwise required to be made [if applicable, insert - ,
in the inverse order in which they become due].]
[If the Security is subject to redemption of any kind, insert - In the
event of redemption of this Security in part only, a new Security or Securities
of this series and of like tenor for the unredeemed portion hereof will be
issued in the name of the Holder, upon the cancellation hereof.]
[If applicable, insert paragraph regarding subordination of the
Security.]
[If applicable, insert - The Indenture contains provisions for
defeasance at any time of [the entire indebtedness of this Security] [or]
[certain restrictive
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<PAGE>
covenants and Events of Default with respect to this Security] [, in each case]
upon compliance with certain conditions set forth in the Indenture.]
[If the Security is not an Original Issue Discount Security, insert -
If an Event of Default with respect to Securities of this series shall occur and
be continuing, the principal of the Securities of this series may be declared
due and payable in the manner and with the effect provided in the Indenture.]
[If the Security is an Original Issue Discount Security, insert - If
an Event of Default with respect to Securities of this series shall occur and be
continuing, an amount of principal of the Securities of this series may be
declared due and payable in the manner and with the effect provided in the
Indenture. Such amount shall be equal to -insert formula for determining the
amount. Upon payment (i) of the amount of principal so declared due and payable
and (ii) of interest on any overdue principal, premium and interest (in each
case to the extent that the payment of such interest shall be legally
enforceable), all of the Company's obligations in respect of the payment of the
principal of and premium and interest, if any, on the Securities of this series
shall terminate.]
The Indenture permits, with certain exceptions as therein provided,
the amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Securities of each series to be
affected under the Indenture at any time by the Company and the Trustee with the
consent of the Holders of a majority in principal amount of the Securities at
the time Outstanding of each series to be affected. The Indenture also contains
provisions permitting the Holders of specified percentages in principal amount
of the Securities of each series at the time Outstanding, on behalf of the
Holders of all Securities of such series, to waive compliance by the Company
with certain provisions of the Indenture and certain past defaults under the
Indenture and their consequences. Any such consent or waiver by the Holder of
this Security shall be conclusive and binding upon such Holder and upon all
future Holders of this Security and of any Security issued upon the registration
of transfer hereof or in exchange herefor or in lieu hereof, whether or not
notation of such consent or waiver is made upon this Security.
As provided in and subject to the provisions of the Indenture, the
Holder of this Security shall not have the right to institute any proceeding
with respect to the
-21-
<PAGE>
Indenture or for the appointment of a receiver or trustee or for any other
remedy thereunder, unless such Holder shall have previously given the Trustee
written notice of a continuing Event of Default with respect to the Securities
of this series, the Holders of not less than 25% in principal amount of the
Securities of this series at the time Outstanding shall have made written
request to the Trustee to institute proceedings in respect of such Event of
Default as Trustee and offered the Trustee reasonable indemnity, and the Trustee
shall not have received from the Holders of a majority in principal amount of
Securities of this series at the time Outstanding a direction inconsistent with
such request, and shall have failed to institute any such proceeding, for 60
days after receipt of such notice, request and offer of indemnity. The foregoing
shall not apply to any suit instituted by the Holder of this Security for the
enforcement of any payment of principal hereof or any premium or interest hereon
on or after the respective due dates expressed herein.
No reference herein to the Indenture and no provision of this Security
or of the Indenture shall alter or impair the obligation of the Company, which
is absolute and unconditional, to pay the principal of and any premium and
interest on this Security at the times, place and rate, and in the coin or
currency, herein prescribed.
As provided in the Indenture and subject to certain limitations
therein set forth, the transfer of this Security is registrable in the Security
Register, upon surrender of this Security for registration of transfer at the
office or agency of the Company in any place where the principal of and any
premium and interest on this Security are payable, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the
Company and the Security Registrar duly executed by, the Holder hereof or his
attorney duly authorized in writing, and thereupon one or more new Securities of
this series and of like tenor, of authorized denominations and for the same
aggregate principal amount, will be issued to the designated transferee or
transferees.
The Securities of this series are issuable only in registered form
without coupons in denominations of $...... and any integral multiple thereof.
As provided in the Indenture and subject to certain limitations therein set
forth, Securities of this series are exchangeable for a like aggregate principal
amount of Securities of this series and of like tenor of a different authorized
denomination, as requested by the Holder surrendering the same.
-22-
<PAGE>
No service charge shall be made for any such registration of transfer
or exchange, but the Company may require payment of a sum sufficient to cover
any tax or other governmental charge payable in connection therewith.
Prior to due presentment of this Security for registration of
transfer, the Company, the Trustee and any agent of the Company or the Trustee
may treat the Person in whose name this Security is registered as the owner
hereof for all purposes, whether or not this Security be overdue, ad neither the
Company, the Trustee nor any such 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.
SECTION 204. Form of Legend for Global Securities.
Unless otherwise specified as contemplated by Section 301 for the
Securities evidenced thereby, every Global Security authenticated and delivered
hereunder shall bear a legend in substantially the following form:
THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE
HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A
NOMINEE THEREOF. THIS SECURITY MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A
SECURITY REGISTERED, AND NO TRANSFER OF THIS SECURITY IN WHOLE OR IN PART MAY BE
REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITARY OR A NOMINEE
THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE
Section 205. Form of Trustee's Certificate
of Authentication.
-----------------------------
This is one of the Securities of the series designated therein
referred to in the within-mentioned Indenture.
First Fidelity Bank,
National Association
as Trustee
By
Authorized Signatory
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<PAGE>
ARTICLE THREE
The Securities
Section 301. Amount Unlimited; Issuable in Series.
------------------------------------
The aggregate principal amount of Securities which may be
authenticated and delivered under this Indenture is unlimited.
The Securities may be issued in one or more series. There shall be
established in or pursuant to a Board Resolution and, subject to Section 303,
set forth, or determined in the manner provided, in an Officers' Certificate, or
established in one or more indentures supplemental hereto, prior to the issuance
of Securities of any series,
(1) the title of the Securities of the series (which shall distinguish
the Securities of the series from Securities of any other series);
(2) any limit upon the aggregate principal amount of the Securities of
the series which may be authenticated and delivered under this Indenture
(except for Securities authenticated and delivered upon registration of
transfer of, or in exchange for, or in lieu of, other Securities of the
series pursuant to Section 304, 305, 306, 906 or 1107 and except for any
Securities which, pursuant to Section 303, are deemed never to have been
authenticated and delivered hereunder);
(3) the Person to whom any interest on a Security of the series shall
be payable, if other than the Person in whose name that Security (or one or
more Predecessor Securities) is registered at the close of business on the
Regular Record Date for such interest;
(4) the date or dates on which the principal of any Securities of the
series is payable;
(5) the rate or rates at which any Securities of the series shall bear
interest, if any, the date or dates from which any such interest shall
accrue, the Interest Payment Dates on which any such interest shall be
payable and the Regular Record Date for any such interest payable on any
Interest Payment Date;
-24-
<PAGE>
(6) the place or places where the principal of and any premium and
interest on any Securities of the series shall be payable;
(7) the period or periods within which, the price or prices at which
and the terms and conditions upon which any Securities of the series may be
redeemed, in whole or in part, at the option of the Company and, if other
than by a Board Resolution, the manner in which any election by the Company
to redeem the Securities shall be evidenced;
(8) the obligation, if any, of the Company to redeem or purchase any
Securities of the series pursuant to any sinking fund or analogous
provisions or at the option of the Holder thereof and the period or periods
within which, the price or prices at which and the terms and conditions
upon which any Securities of the series shall be redeemed or purchased, in
whole or in part, pursuant to such obligation;
(9) if other than denominations of $1,000 and any integral multiple
thereof, the denominations in which any Securities of the series shall be
issuable;
(10) if the amount of principal of or any premium or interest on any
Securities of the series may be determined with reference to an index or
pursuant to a formula, the manner in which such amounts shall be
determined;
(11) if other than the currency of the United States of America, the
currency, currencies or currency units in which the principal of or any
premium or interest on any Securities of the series shall be payable and
the manner of determining the equivalent thereof in the currency of the
United States of America for any purpose, including for purposes of the
definition of "Outstanding" in Section 101;
(12) if the principal of or any premium or interest on any Securities
of the series is to be payable, at the election of the Company or the
Holder thereof, in one or more currencies or currency units other than that
or those in which such Securities are stated to be payable, the currency,
currencies or currency units in which the principal of or any premium or
interest on such Securities as to which such election is made shall be
payable, the periods within which and the terms and conditions upon which
such
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<PAGE>
election is to be made and the amount so payable (or the manner in which
such amount shall be determined);
(13) if other than the entire principal amount thereof, the portion of
the principal amount of any Securities of the series which shall be payable
upon declaration of acceleration of the Maturity thereof pursuant to
Section 502;
(14) if the principal amount payable at the Stated Maturity of any
Securities of the series will not be determinable as of any one or more
dates prior to the Stated Maturity, the amount which shall be deemed to be
the principal amount of such Securities as of any such date for any purpose
thereunder or hereunder, including the principal amount thereof which shall
be due and payable upon any Maturity other than the Stated Maturity or
which shall be deemed to be Outstanding as of any date prior to the Stated
Maturity (or, in any such case, the manner in which such amount deemed to
be the principal amount shall be determined);
(15) if applicable, that the Securities of the series, in whole or any
specified part, shall be defeasible pursuant to Section 1302 or Section
1303 or both such Sections and, if other than by a Board Resolution, the
manner in which any election by the Company to defease such Securities
shall be evidenced;
(16) if applicable, that any Securities of the series shall be
issuable in whole or in part in the form of one or more Global Securities
and, in such case, the respective Depositaries for such Global Securities,
the form of any legend or legends which shall be borne by any such Global
Security in addition to or in lieu of that set forth in Section 204 and any
circumstances in addition to or in lieu of those set forth in Clause (2) of
the last paragraph of Section 305 in which any such Global Security may be
exchanged in whole or in part for Securities registered, and any transfer
of such Global Security in whole or in part may be registered, in the name
or names of Persons other than the Depositary for such Global Security or a
nominee thereof;
(17) any addition to or change in the Events of Default which applies
to any Securities of the series and any change in the right of the Trustee
or the requisite Holders of such Securities to declare the principal amount
thereof due and payable pursuant to Section 502;
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<PAGE>
(18) any addition to or change in the covenants set forth in Article
Ten which applies to Securities of the series; and
(19) any other terms of the series (which terms shall not be
inconsistent with the provisions of this Indenture, except as permitted by
Section 901(5)).
All Securities of any one series shall be substantially identical
except as to denomination and except as may otherwise be provided in or pursuant
to the Board Resolution referred to above and (subject to Section 303) set
forth, or determined in the manner provided, in the Officers' Certificate
referred to above or in any such indenture supplemental hereto.
If any of the terms of the series are established by action taken
pursuant to a Board Resolution, a copy of an appropriate record of such action
shall be certified by the 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 302. 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 301. 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 303. Execution, Authentication, Delivery and Dating.
----------------------------------------------
The Securities shall be executed on behalf of the Company by its
Chairman of the Board, its President, its Vice Chairman, 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 at the date of such Securities.
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<PAGE>
At any time and from time to time after the execution and delivery of
this Indenture, the Company may deliver Securities of any series executed by the
Company to the Trustee for authentication, together with a Company Order for the
authentication and delivery of such Securities, and the Trustee in accordance
with the Company Order shall authenticate and deliver such Securities. 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 201 and 301,
in authenticating such Securities, and accepting the additional responsibilities
under this Indenture in relation to such Securities, the Trustee shall be
entitled to receive, and (subject to Section 601) shall be fully protected in
relying upon, an Officers' Certificate and an Opinion of Counsel (pursuant to
Section 102) stating,
(a) if the form of such Securities has been established by or
pursuant to Board Resolution as permitted by Section 201, 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 Section 301, 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, fraudulent transfer,
reorganization, moratorium 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.
Notwithstanding the provisions of Section 301 and of the preceding
paragraph, if all Securities of a series are not to be originally issued at one
time, it shall not be necessary to deliver the Officers' Certificate otherwise
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<PAGE>
required pursuant to Section 301 or the Company Order and Opinion of Counsel
otherwise required pursuant to such preceding paragraph at or prior to the
authentication of each Security of such series if such documents are delivered
at or prior to the authentication upon original issuance of the first Security
of such series to be issued.
Each Security shall be dated the date of its authentication.
No Security shall be entitled to any benefit under this Indenture or
be valid or obligatory for any purpose unless there appears on such Security a
certificate of authentication substantially in the form provided for herein
executed by the Trustee by manual signature, 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.
Notwithstanding the foregoing, if any Security shall have been
authenticated and delivered hereunder but never issued and sold by the Company,
and the Company shall deliver such Security to the Trustee for cancellation as
provided in Section 309, for all purposes of this Indenture such Security shall
be deemed never to have been authenticated and delivered hereunder and shall
never be entitled to the benefits of this Indenture.
Section 304. Temporary Securities.
--------------------
Pending the preparation of definitive Securities of any series, the
Company may execute, and upon Company Order the Trustee shall authenticate and
deliver, temporary Securities which are printed, lithographed, typewritten,
mimeographed or otherwise produced, in any authorized denomination,
substantially of the tenor of the definitive Securities in lieu of which they
are issued and with such appropriate insertions, omissions, substitutions and
other variations as the officers executing such Securities may determine, as
evidenced by their execution of such Securities.
If temporary Securities of any series are issued, the Company will
cause definitive Securities of that series to be prepared without unreasonable
delay. After the preparation of definitive Securities of such series, the
temporary Securities of such series shall be exchangeable for definitive
Securities of such series upon surrender of the temporary Securities of such
series at the office or agency of the Company in a Place of Payment for that
series,
-29-
<PAGE>
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 the same series of authorized denominations. Until so
exchanged the temporary Securities of any series shall in all respects be
entitled to the same benefits under this Indenture as definitive Securities of
such series.
Section 305. Registration, Registration of
Transfer and Exchange.
-----------------------------
The Company shall cause to be kept at the Corporate Trust Office of
the Trustee a register (the register maintained in such office and in any other
office or agency of the Company in a Place of Payment being herein sometimes
collectively referred to as the "Security Register") in which, subject to such
reasonable regulations as it may prescribe, the Company shall provide for the
registration of Securities and of transfers of Securities. The Trustee is
hereby appointed "Security Registrar" for the purpose of registering Securities
and transfers of Securities as herein provided.
Upon surrender for registration of transfer of any Security of any
series at the office or agency in a Place of Payment for that series, the
Company shall execute, and the Trustee shall authenticate and deliver, in the
name of the designated transferee or transferees, one or more new Securities
of the same series, of any authorized denominations and of a like aggregate
principal amount.
At the option of the Holder, Securities of any series may be exchanged
for other Securities of the same series, of any authorized denominations and of
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.
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<PAGE>
Every Security presented or surrendered for registration of transfer
or for exchange shall (if so required by the Company or the Trustee) be duly
endorsed, or be accompanied by a written instrument of transfer in form
satisfactory to the Company and the Security Registrar duly executed, by the
Holder thereof or his attorney duly authorized in writing.
No service charge shall be made for any registration of transfer or
exchange of Securities, but the Company may require payment of a sum sufficient
to cover any tax or other governmental charge that may be imposed in connection
with any registration of transfer or exchange of Securities, other than
exchanges pursuant to Section 304, 906 or 1107 not involving any transfer.
If the Securities of any series (or any series and specified tenor)
are to be redeemed in part, the Company shall not be required (i) to issue,
register the transfer of or exchange Securities of that series (or that series
and tenor, as the case may be) during a period beginning at the opening of
business 15 days before the day of the mailing of a notice of redemption of
Securities of that series selected for redemption under Section 1103 and ending
at the close of business on the day of such mailing, or (ii) to register the
transfer of or exchange any Security so selected for redemption in whole or in
part, except the unredeemed portion of any Security being redeemed in part.
The provisions of Clauses (1), (2), (3) and (4) below shall apply only
to Global Securities:
(1) Each Global Security authenticated under this Indenture shall be
registered in the name of the Depositary designated for such Global
Security or a nominee thereof and delivered to such Depositary or a nominee
thereof or custodian therefor, and each such Global Security shall
constitute a single Security for all purposes of this Indenture.
(2) Notwithstanding any other provision in this Indenture, no Global
Security may be exchanged in whole or in part for Securities registered,
and no transfer of a Global Security in whole or in part may be registered,
in the name of any Person other than the Depositary for such Global
Security or a nominee thereof unless (A) such Depositary (i) has notified
the Company that it is unwilling or unable to continue as Depositary for
such Global Security or (ii) has ceased to be a clearing agency registered
under the Exchange Act, (B) there shall have occurred and be continuing an
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<PAGE>
Event of Default with respect to such Global Security or (C) there shall
exist such circumstances, if any, in addition to or in lieu of the
foregoing as have been specified for this purpose as contemplated by
Section 301.
(3) Subject to Clause (2) above, any exchange of a Global Security for
other Securities may be made in whole or in part, and all Securities issued
in exchange for a Global Security or any portion thereof shall be
registered in such names as the Depositary for such Global Security shall
direct.
(4) Every Security authenticated and delivered upon registration of
transfer of, or in exchange for or in lieu of, a Global Security or any
portion thereof, whether pursuant to this Section, Section 304, 306, 906 or
1107 or otherwise, shall be authenticated and delivered in the form of, and
shall be, a Global Security, unless such Security is registered in the name
of a Person other than the Depositary for such Global Security or a nominee
thereof.
Section 306. Mutilated, Destroyed, Lost
and Stolen Securities.
--------------------------
If any mutilated Security is surrendered to the Trustee, the Company
shall execute and the Trustee shall authenticate and deliver in exchange
therefor a new Security of the same series and of like tenor and principal
amount and bearing a number not contemporaneously outstanding.
If there shall be delivered to the Company and the Trustee (i)
evidence to their satisfaction of the destruction, loss or theft of any
Security and (ii) such security or indemnity as may be required by them to save
each of them and any agent of either of them harmless, then, in the absence of
notice to the Company or the Trustee that such Security has been acquired by a
bona fide purchaser, the Company shall execute and upon its request the Trustee
shall authenticate and deliver, in lieu of any such destroyed, lost or stolen
Security, a new Security of the same series and of like tenor and principal
amount and bearing a number not contemporaneously outstanding.
In case any such mutilated, destroyed, lost or stolen Security has
become or is about to become due and payable, the Company in its discretion may,
instead of issuing a new Security, pay such Security.
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<PAGE>
Upon the issuance of any new Security under this Section, the Company
may require the payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in relation thereto and any other
expenses (including the fees and expenses of the Trustee) connected therewith.
Every new Security of any series issued pursuant to this Section in
lieu of any destroyed, lost or stolen Security shall constitute an original
additional contractual obligation of the Company, whether or not the destroyed,
lost or stolen Security shall be at any time enforceable by anyone, and shall be
entitled to all the benefits of this Indenture equally and proportionately with
any and all other Securities of that series duly issued hereunder.
The provisions of this Section are exclusive and shall preclude (to
the extent lawful) all other rights and remedies with respect to the replacement
or payment of mutilated, destroyed, lost or stolen Securities.
Section 307. Payment of Interest; Interest
Rights Preserved.
-----------------------------
Except as otherwise provided as contemplated by Section 301 with
respect to any series of Securities, interest on any Security which is payable,
and is punctually paid or duly provided for, on any Interest Payment Date shall
be paid to the Person in whose name that Security (or one or more Predecessor
Securities) is registered at the close of business on the Regular Record Date
for such interest.
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 (herein
called "Defaulted Interest") shall forthwith cease to be payable to the Holder
on the relevant Regular Record Date by virtue of having been such Holder, and
such Defaulted Interest may be paid by the Company, at its election in each
case, as provided in Clause (1) or (2) below:
(1) The Company may elect to make payment of any Defaulted Interest
to the Persons in whose names the Securities of such series (or their
respective Predecessor Securities) are registered at the close of business
on a Special Record Date for the payment of such Defaulted Interest, which
shall be fixed in the following manner. The Company shall notify the
Trustee in writing of the amount of Defaulted Interest proposed to be paid
on each Security of such series and the date
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of the proposed payment, and at the same time the Company shall deposit
with the Trustee an amount of money equal to the aggregate amount proposed
to be paid in respect of such Defaulted Interest or shall make arrangements
satisfactory to the Trustee for such deposit prior to the date of the
proposed payment, such money when deposited to be held in trust for the
benefit of the Persons entitled to such Defaulted Interest as in this
Clause provided. Thereupon the Trustee shall fix a Special Record Date for
the payment of such Defaulted Interest which shall be not more than 15 days
and not less than 10 days prior to the date of the proposed payment and not
less than 10 days after the receipt by the Trustee of the notice of the
proposed payment. The Trustee shall promptly notify the Company of such
Special Record Date and, in the name and at the expense of the Company,
shall cause notice of the proposed payment of such Defaulted Interest and
the Special Record Date therefor to be given to each Holder of Securities
of such series in the manner provided by Section 106, not less than 10 days
prior to such Special Record Date. Notice of the proposed payment of such
Defaulted Interest and the Special Record Date therefor having been so
mailed, such Defaulted Interest shall be paid to the Persons in whose names
the Securities of such series (or their respective Predecessor Securities)
are registered at the close of business on such Special Record Date and
shall no longer be payable pursuant to the following Clause (2).
(2) The Company may make payment of any Defaulted Interest on the
Securities of any series in any other lawful manner not inconsistent with
the requirements of any securities exchange on which such Securities may be
listed, and upon such notice as may be required by such exchange, if, after
notice given by the Company to the Trustee of the proposed payment pursuant
to this Clause, such manner of payment shall be deemed practicable by the
Trustee.
Subject to the foregoing provisions of this Section, each Security
delivered under this Indenture upon registration of transfer of or in exchange
for or in lieu of any other Security shall carry the rights to interest accrued
and unpaid, and to accrue, which were carried by such other Security.
Section 308. Persons Deemed Owners.
---------------------
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Prior to due presentment of a Security for registration of transfer,
the Company, the Trustee and any agent of the Company or the Trustee may treat
the Person in whose name such Security is registered in the Security Register as
the owner of such Security for the purpose of receiving payment of principal of
(and premium, if any) and (subject to Section 307) interest on such Security and
for all other purposes whatsoever, whether or not such Security be overdue, and
neither the Company, the Trustee nor any agent of the Company or the Trustee
shall be affected by notice to the contrary.
Section 309. Cancellation.
------------
All Securities surrendered for payment, redemption, registration of
transfer or exchange or for credit against any sinking fund payment shall, if
surrendered to any Person other than the Trustee, be delivered to the Trustee
and shall be promptly 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 may deliver to the Trustee (or to any other Person for delivery
to the Trustee) for cancellation any Securities previously authenticated
hereunder which the Company has not issued and sold, and all Securities so
delivered shall be promptly cancelled 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 shall be disposed of as directed by a Company
Order.
Section 310. Computation of Interest.
-----------------------
Except as otherwise specified as contemplated by Section 301 for
Securities of any series, interest on the Securities of each series shall be
computed on the basis of a year of twelve 30-day months.
ARTICLE FOUR
Satisfaction and Discharge
Section 401. Satisfaction and Discharge of Indenture.
---------------------------------------
This Indenture shall upon Company Request cease to be of further
effect (except as to any surviving rights of registration of transfer or
exchange of Securities herein expressly provided for), and the Trustee, at the
expense of
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the Company, shall execute proper instruments acknowledging satisfaction and
discharge of this Indenture, when
(1) either
(A) all Securities theretofore authenticated and delivered
(other than (i) Securities which have been destroyed, lost or stolen
and which have been replaced or paid as provided in Section 306 and
(ii) Securities for whose payment money has theretofore been deposited
in trust or segregated and held in trust by the Company and thereafter
repaid to the Company or discharged from such trust, as provided in
Section 1003) have been delivered to the Trustee for cancellation; or
(B) all such Securities not theretofore delivered to the Trustee
for cancellation
(i) have become due and payable, or
(ii) will become due and payable at their Stated Maturity
within one year, or
(iii) are to be called for redemption within one year
under arrangements satisfactory to the Trustee for the giving of
notice of redemption by the Trustee in the name, and at the
expense, of the Company,
and the Company, in the case of (i), (ii) or (iii) above, has
deposited or caused to be deposited with the Trustee as trust funds in
trust for the purpose an amount sufficient to pay and discharge the
entire indebtedness on such Securities not theretofore delivered to
the Trustee for cancellation, for principal (and premium, if any) and
interest to the date of such deposit (in the case of Securities which
have become due and payable) or to the Stated Maturity or Redemption
Date, as the case may be;
(2) the Company has paid or caused to be paid all other sums payable
hereunder by the Company; and
(3) the Company has delivered to the Trustee an Officers' Certificate
and an Opinion of Counsel, each stating that all conditions precedent
herein provided
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for relating to the satisfaction and discharge of this Indenture have been
complied with.
Notwithstanding the satisfaction and discharge of this Indenture, the
obligations of the Company to the Trustee under Section 607, the obligations of
the Trustee to any Authenticating Agent under Section 614 and, if money shall
have been deposited with the Trustee pursuant to subclause (B) of clause (1) of
this Section, the obligations of the Trustee under Section 402 and the last
paragraph of Section 1003 shall survive.
Section 402. Application of Trust Money.
--------------------------
Subject to the provisions of the last paragraph of Section 1003, all
money deposited with the Trustee pursuant to Section 401 shall be held in trust
and applied by it, in accordance with the provisions of the Securities and this
Indenture, to the payment, either directly or through any Paying Agent
(including the Company acting as its own Paying Agent) as the Trustee may
determine, to the Persons entitled thereto, of the principal (and premium, if
any) and interest for whose payment such money has been deposited with the
Trustee.
ARTICLE FIVE
Remedies
Section 501. Events of Default.
-----------------
"Event of Default", wherever used herein with respect to Securities of
any series, mens 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):
(1) default in the payment of any interest upon any Security of that
series when it becomes due and payable, and continuance of such default for
a period of 30 days; or
(2) default in the payment of the principal of (or premium, if any,
on) any Security of that series at its Maturity; or
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(3) default in the deposit of any sinking fund payment, when and as
due by the terms of a Security of that series; or
(4) default in the performance, or breach, of any covenant or
warranty of the Company in this Indenture (other than a covenant or
warranty a default in whose performance or whose breach is elsewhere in
this Section specifically dealt with or which has expressly been included
in this Indenture solely for the benefit of series of Securities other than
that series), and continuance of such default or breach for a period of 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 10% in principal amount of the Outstanding Securities of that
series a written notice specifying such default or breach and requiring it
to be remedied and stating that such notice is a "Notice of Default"
hereunder; or
(5) a default under any bond, debenture, note or other evidence of
indebtedness for money borrowed by the Company (including a default with
respect to Securities of any series other than that series) or under any
mortgage, indenture or instrument under which there may be issued or by
which there may be secured or evidenced any indebtedness for money borrowed
by the Company (including this Indenture), whether such indebtedness now
exists or shall hereafter be created, which default shall constitute a
failure to pay any portion of the principal of such indebtedness in an
aggregate amount of $10,000,000 or more when due and payable after the
expiration of any applicable grace period with respect thereto or shall
have resulted in such indebtedness in an aggregate amount of $10,000,000 or
more becoming or being declared due and payable prior to the date on which
it would otherwise have become due and payable, without such indebtedness
having been discharged, or such acceleration having been rescinded or
annulled, within a period of 10 days after there shall have been given, by
registered or certified mail, to the Company by the Trustee or to the
Company and the Trustee by the Holders of at least 10% in principal amount
of the Outstanding Securities of that series a written notice specifying
such default and requiring the Company to cause such indebtedness to be
discharged or cause such acceleration to be rescinded or annulled and
stating that such notice is a "Notice of Default" hereunder; provided,
--------
however, that, subject to the provisions of Sections 601 and 602, the
-------
Trustee shall not be deemed to have knowledge of such default
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<PAGE>
unless either (A) a Responsible Officer of the Trustee shall have actual
knowledge of such default or (B) the Trustee shall have received written
notice thereof from the Company, from any Holder, from the holder of any
such indebtedness or from the trustee under any such mortgage, indenture or
other instrument; or
(6) the entry by a court having jurisdiction in the premises of (A) a
decree or order for relief in respect of the Company in an involuntary case
or proceeding under any applicable Federal or State bankruptcy,
insolvency, reorganization or other similar law or (B) a decree or order
adjudging the Company a bankrupt or insolvent, or approving as properly
filed a petition seeking reorganization, arrangement, adjustment or
composition of or in respect of the Company under any applicable Federal or
State law, or appointing a custodian, receiver, liquidator, assignee,
trustee, sequestrator or other similar official of the Company or of any
substantial part of its property, or ordering the winding up or liquidation
of its affairs, and the continuance of any such decree or order for relief
or any such other decree or order unstayed and in effect for a period of 90
consecutive days; or
(7) the commencement by the Company of a voluntary case or
proceeding under any applicable Federal or State bankruptcy, insolvency,
reorganization or other similar law or of any other case or proceeding to
be adjudicated a bankrupt or insolvent, or the consent by it to the entry
of a decree or order for relief in respect of the Company in an involuntary
case or proceeding under any applicable Federal or State bankruptcy,
insolvency, reorganization or other similar law or to the commencement of
any bankruptcy or insolvency case or proceeding against it, or the filing
by it of a petition or answer or consent seeking reorganization or relief
under any applicable Federal or State law, or the consent by it to the
filing of such petition or to the appointment of or taking possession by a
custodian, receiver, liquidator, assignee, trustee, sequestrator or similar
official of the Company or of any substantial part of its property, or
the making by it of an assignment for the benefit of creditors, or the
admission by it in writing of its inability to pay its debts generally as
they become due, or the taking of corporate action by the Company in
furtherance of any such action; or
(8) any other Event of Default provided with respect to Securities of
that series.
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Section 502. Acceleration of Maturity;
Rescission and Annulment.
-------------------------
If an Event of Default with respect to Securities of any series at the
time Outstanding occurs and is continuing, then in every such case the Trustee
or the Holders of not less than 25% in principal amount of the Outstanding
Securities of that series may declare the principal amount (or, if the
Securities of that series are Original Issue Discount Securities, such portion
of the principal amount as may be specified in the terms of that series) of all
of the Securities of that series to be due and payable immediately, by a notice
in writing to the Company (and to the Trustee if given by Holders), and upon any
such declaration such principal amount (or specified amount) shall become
immediately due and payable.
At any time after such a declaration of acceleration with respect to
Securities of any series has been made and before 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 that series, by written notice to the Company and the
Trustee, may rescind and annul such declaration and its consequences if
(1) the Company has paid or deposited with the Trustee a sum
sufficient to pay
(A) all overdue interest on all Securities of that series,
(B) the principal of (and premium, if any, on) any Securities of
that series 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, disbursements and advances of the
Trustee, its agents and counsel;
and
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(2) all Events of Default with respect to Securities of that series,
other than the non-payment of the principal of Securities of that series
which have become due solely by such declaration of acceleration, have
been cured or waived as provided in Section 513.
No such rescission shall affect any subsequent default or impair any right
consequent thereon.
Section 503. Collection of Indebtedness and Suits
for Enforcement by Trustee.
------------------------------------
The Company covenants that if
(1) 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
(2) default is made in the payment of the 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 and, to the extent
that payment of such interest shall be legally enforceable, interest on any
overdue principal (and premium, if any) and on any overdue interest, at the rate
or rates prescribed therefor in such Securities, and, in addition thereto, such
further amount as shall be sufficient to cover the costs and expenses of
collection, including the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel.
If 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, may
prosecute such proceeding to judgment or final decree and may enforce the same
against the Company or any other obligor upon such 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 such 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
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the rights of the Holders of Securities of such series by
such appropriate judicial proceedings as the Trustee shall deem most effectual
to protect and enforce any such rights, whether for the specific enforcement of
any covenant or agreement in this Indenture or in aid of the exercise of any
power granted herein, or to enforce any other proper remedy.
Section 504. 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 to take any and
all actions authorized under the Trust Indenture Act in order to have claims of
the Holders and the Trustee allowed in any such proceeding. In particular, the
Trustee shall be authorized;
(i) 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
(ii) to collect and receive any moneys or other property
payable or deliverable on any such claims and to distribute the same;
and any custodian, receiver, assignee, trustee, liquidator, sequestrator or
other similar official in any such judicial proceeding is hereby authorized by
each Holder to make such payments to the Trustee and, in the event that the
Trustee shall consent to the making of such payments directly to the Holders, to
pay to the Trustee any amount due it for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, and any other
amounts due the Trustee under Section 607.
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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 provided,
however, that the Trustee may, on behalf of the Holders, vote for the election
of a trustee in bankruptcy or similar official and be a member of a creditors'
or other similar committee.
Section 505. Trustee May Enforce Claims Without
Possession of Securities.
----------------------------------
All rights of action and claims under this Indenture or the Securities
may be prosecuted and enforced by the Trustee without the possession of any of
the Securities or the production thereof in any proceeding relating thereto, and
any such proceeding instituted by the Trustee shall be brought in its own name
as trustee of an express trust, and any recovery of judgment shall, after
provision for the payment of the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, be for the
ratable benefit of the Holders of the Securities in respect of which such
judgment has been recovered.
Section 506. Application of Money Collected.
------------------------------
Any money collected by the Trustee pursuant to this Article shall be
applied in the following order, at the date or dates fixed by the Trustee and,
in case of the distribution of such money on account of principal (or 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
607; and
SECOND: To the payment of the amounts then due and unpaid for
principal of (and premium, if any) and interest on the Securities in
respect of which or for the benefit of which such money has been collected,
ratably, without preference or priority of any kind, according to the
amounts due and payable on such Securities for principal (and premium, if
any) and interest, respectively.
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Section 507. Limitation on Suits.
-------------------
No Holder of any Security of any series shall have any right to
institute any proceeding, judicial or otherwise, with respect to this
Indenture, or for the appointment of a receiver or trustee, or for any other
remedy hereunder, unless
(1) such Holder has previously given written notice to the Trustee of
a continuing Event of Default with respect to the Securities of that
series;
(2) the Holders of not less than 25% in principal amount of the
Outstanding Securities of that series shall have made written request to
the Trustee to institute proceedings in respect of such Event of Default in
its own name as Trustee hereunder,
(3) such Holder or Holders have offered to the Trustee reasonable
indemnity against the costs, expenses and liabilities to be incurred in
compliance with such request;
(4) the Trustee for 60 days after its receipt of such notice, request
and offer of indemnity has failed to institute any such proceeding; and
(5) no direction inconsistent with such written request has been
given to the Trustee during such 60-day period by the Holders of a majority
in principal amount of the Outstanding Securities of that series;
it being understood and intended that no one or more of such Holders shall have
any right in any manner whatever by virtue of, or by availing of, any provision
of this Indenture to affect, disturb or prejudice the rights of any other of
such Holders, or to obtain or to seek to obtain priority or preference over any
other of such Holders or to enforce any right under this Indenture, except in
the manner herein provided and for the equal and ratable benefit of all of such
Holders.
Section 508. Unconditional Right of Holders to
Receive Principal, Premium and Interest.
---------------------------------------
Notwithstanding any other provision in this Indenture, the Holder of
any Security shall have the right, which is absolute and unconditional, to
receive payment of the principal of (and premium, if any) and (subject to
Section 307) interest on such Security on the Stated Maturity or Maturities
expressed in such Security (or, in
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the case of redemption, on the Redemption Date) and to institute suit for the
enforcement of any such payment, and such rights shall not be impaired without
the consent of such Holder.
Section 509. Restoration of Rights and Remedies.
----------------------------------
If the Trustee or any Holder has instituted any proceeding to enforce
any right or remedy under this Indenture and such proceeding has been
discontinued or abandoned for any reason, or has been determined adversely to
the Trustee or to such Holder, then and in every such case, subject to any
determination in such proceeding, the Company, the Trustee and the Holders shall
be restored severally and respectively to their former positions hereunder and
thereafter all rights and remedies of the Trustee and the Holders shall continue
as though no such proceeding had been instituted.
Section 510. Rights and Remedies Cumulative.
------------------------------
Except as otherwise provided with respect to the replacement or
payment of mutilated, destroyed, lost or stolen Securities in the last paragraph
of Section 306, no right or remedy herein conferred upon or reserved to the
Trustee or to the Holders is intended to be exclusive of any other right or
remedy, and every right and remedy shall, to the extent permitted by law, be
cumulative and in addition to every other right and remedy given hereunder or
now or hereafter existing at law or in equity or otherwise. The assertion or
employment of any right or remedy hereunder, or otherwise, shall not prevent the
concurrent assertion or employment of any other appropriate right or remedy.
Section 511. Delay or Omission Not Waiver.
----------------------------
No delay or omission of the Trustee or of any Holder of any Securities
to exercise any right or remedy accruing upon any Event of Default shall impair
any such right or remedy or constitute a waiver of any such Event of Default or
an acquiescence therein. Every right and remedy given by this Article or by law
to the Trustee or to the Holders may be exercised from time to time, and as
often as may be deemed expedient, by the Trustee or by the Holders, as the case
may be.
Section 512. Control by Holders.
------------------
The Holders of a majority in principal amount of the Outstanding
Securities of any series shall have the right to direct the time, method and
place of conducting any
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proceeding for any remedy available to the Trustee, or exercising any trust or
power conferred on the Trustee, with respect to the Securities of such series,
provided that
(1) such direction shall not be in conflict with any rule of law or
with this Indenture, and
(2) the Trustee may take any other action deemed proper by the Trustee
which is not inconsistent with such direction.
Section 513. Waiver of Past Defaults.
-----------------------
The Holders of not less than a majority in principal amount of the
Outstanding Securities of any series may on behalf of the Holders of all the
Securities of such series waive any past default hereunder with respect to such
series and its consequences, except a default
(1) in the payment of the principal of (or premium, if any) or
interest on any Security of such series, or in the making of any sinking
fund payment, or
(2) in respect of a covenant or provision hereof which under Article
Nine cannot be modified or amended without the consent of the Holder of
each Outstanding Security of such series affected.
Upon any such waiver, such default shall cease to exist, and any Event
of Default arising therefrom shall be deemed to have been cured, for every
purpose of this Indenture; but no such waiver shall extend to any subsequent or
other default or impair any right consequent thereon.
Section 514. Undertaking for Costs.
---------------------
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 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 an 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
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to any suit instituted by the Company, to any suit instituted by the Trustee, to
any suit instituted by any Holder, or group of Holders, holding in the aggregate
more than 10% in principal amount of the Outstanding Securities of any series,
or to any suit instituted by any Holder for the enforcement of the payment of
the principal of (or premium, if any) or interest on any Security on or after
the Stated Maturity or Maturities expressed in such Security (or, in the case of
redemption, on or after the Redemption Date).
Section 515. Waiver of Stay or Extension Laws.
--------------------------------
The Company covenants (to the extent that it may lawfully do so) that
it will not at any time insist upon, or plead, or in any manner whatsoever claim
or take the benefit or advantage of, any stay or extension law wherever enacted,
now or at any time hereafter in force, which may affect the covenants or the
performance of this Indenture; and the Company (to the extent that it may
lawfully do so) hereby expressly waives all benefit or advantage of any such law
and covenants that it will not hinder, delay or impede the execution of any
power herein granted to the Trustee, but will suffer and permit the execution of
every such power as though no such law had been enacted.
ARTICLE SIX
The Trustee
Section 601. Certain Duties and Responsibilities.
-----------------------------------
The duties and responsibilities of the Trustee shall be as provided by
the Trust Indenture Act. Notwithstanding the foregoing, no provision of this
Indenture shall require the Trustee to expend or risk its own funds or otherwise
incur any financial liability in the performance of any of its duties hereunder,
or in the exercise of any of its rights or powers, if it shall have reasonable
grounds for believing that repayment of such funds or adequate indemnity against
such risk or liability is not reasonably assured to it. Whether or not therein
expressly so provided, every provision of this Indenture relating to the conduct
or affecting the liability of or affording protection to the Trustee shall be
subject to the provisions of this Section.
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Section 602. Notice of Defaults.
------------------
If a default occurs hereunder with respect to Securities of any
series, the Trustee shall give the Holders of Securities of such series notice
of such default as and to the extent provided by the Trust Indenture Act;
provided, however, that in the case of any default of the character specified in
Section 501(4) with respect to Securities of such series, no such notice to
Holders shall be given until at least 30 days after the occurrence thereof. For
the purpose of this Section, the term "default" means any event which is, or
after notice or lapse of time or both would become, an Event of Default with
respect to Securities of such series.
Section 603. Certain Rights of Trustee.
-------------------------
Subject to the provisions of Section 601:
(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;
(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 of indebtedness or other paper or
document, but the Trustee, in its discretion, may make such further inquiry
or investigation into such facts or matters as it may see fit, and, if the
Trustee shall determine to make such further inquiry or investigation, it
shall be entitled 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 and the Trustee shall not be responsible for any misconduct or
negligence on the part of any agent or attorney appointed with due care by
it hereunder.
Section 604. Not Responsible for Recitals or Issuance of Securities.
------------------------------------------------------
The recitals contained herein and in the Securities, except the
Trustee's certificates of authentication, shall be taken as the statements of
the Company, and neither the Trustee nor the Authenticating Agent assumes any
responsibility for their correctness. Neither the Trustee nor the Authenticating
Agent makes any representations as to the validity or sufficiency of this
Indenture or of the Securities. Neither the Trustee nor the Authenticating Agent
shall be accountable for the use or application by the Company of Securities or
the proceeds thereof.
Section 605. May Hold Securities.
-------------------
The Trustee, any Paying Agent, any Security Registrar or any other
agent of the Company, in its individual or any other capacity, may become the
owner or pledgee of Securities and, subject to Sections 608 and 613, may
otherwise deal with the Company with the same rights it
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would have if it were not Trustee, Paying Agent, Security Registrar or such
other agent.
Section 606. Money Held in Trust.
-------------------
Money held by the Trustee in trust hereunder need not be segregated
from other funds except to the extent required by law. The Trustee shall be
under no liability for interest on any money received by it hereunder except as
otherwise agreed with the Company.
Section 607. Compensation and Reimbursement.
------------------------------
The Company agrees
(1) 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);
(2) except as otherwise expressly provided herein, to reimburse the
Trustee upon its request for all reasonable expenses, disbursements and
advances incurred or made by the Trustee in accordance with any provision
of this Indenture (including the reasonable compensation and the expenses
and disbursements of its agents and counsel), except any such expense,
disbursement or advance as may be attributable to its negligence or bad
faith; and
(3) to indemnify the Trustee for, and to hold it harmless against, any
loss, liability or expense incurred without negligence or bad faith on its
part, arising out of or in connection with the acceptance or administration
of the trust or trusts hereunder, including the costs and expenses of
defending itself against any claim or liability in connection with the
exercise or performance of any of its powers or duties hereunder.
When the Trustee incurs expenses or renders services in connection with an
Event of Default specified in Sections 501(6) or 501(7), the expenses (including
the reasonable charges and expenses of its agents and counsel) and the
compensation for the services are intended to constitute expenses of
administration under any applicable federal or state bankruptcy, insolvency or
other similar law.
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Section 608. Disqualification; Conflicting Interests.
---------------------------------------
If the Trustee has or shall acquire a conflicting interest within the
meaning of the Trust Indenture Act, the Trustee shall either eliminate such
interest or resign, to the extent and in the manner provided by, and subject to
the provisions of, the Trust Indenture Act and this Indenture. To the extent
permitted by such Act, the Trustee shall not be deemed to have a conflicting
interest by virtue of being a trustee under this Indenture with respect to
Securities of more than one series.
Section 609. Corporate Trustee Required; Eligibility.
---------------------------------------
There shall at all times be one (and only one) Trustee hereunder with
respect to the Securities of each series, which may be Trustee hereunder for
Securities of one or more series. Each Trustee shall be a Person that is
eligible pursuant to the Trust Indenture Act to act as such has a combined
capital and surplus of at least $50,000,000. If any such Person publishes
reports of condition at least annually, pursuant to law or to the requirements
of its supervising or examining authority, then for the purposes of this Section
and to the extent permitted by the Trust Indenture Act, the combined capital and
surplus of such Person shall be deemed to be its combined capital and surplus as
set forth in its most recent report of condition so published. If at any time
the Trustee with respect to the Securities of any series shall cease to be
eligible in accordance with the provisions of this Section, it shall resign
immediately in the manner and with the effect hereinafter specified in this
Article.
Section 610. Resignation and Removal, Appointment of Successor.
--------------------------------------------------
(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 in accordance with the
applicable requirements of Section 611.
(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 the
instrument of acceptance by a successor Trustee required by Section 611 shall
not have been delivered to the Trustee within 30 days after the giving of such
notice of resignation, the resigning Trustee may petition any court of competent
jurisdiction for the appointment of a successor Trustee with respect to the
Securities of such series.
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(c) The Trustee may be removed at any time with respect to the
Securities of any series by Act of the Holders of a majority in principal amount
of the Outstanding Securities of such series, delivered to the Trustee and to
the Company.
(d) If at any time:
(1) the Trustee shall fail to comply with Section 608 after
written request therefor by the Company or by any Holder who has been
a bona fide Holder of a Security for at least six months, or
(2) the Trustee shall cease to be eligible under Section 609 and
shall fail to resign after written request therefor by the Company or
by any such Holder, or
(3) the Trustee shall become incapable of acting or shall be
adjudged a bankrupt or insolvent or a receiver of the Trustee or of
its property shall be appointed or any public officer shall take
charge or control of the Trustee or of its property or affairs for the
purpose of rehabilitation, conservation or liquidation,
then, in any such case, (i) the Company by a Board Resolution may remove the
Trustee with respect to all Securities, or (ii) subject to Section 514, any
Holder who has been a bona fide Holder of a Security for at least six months
may, on behalf of himself and all others similarly situated, petition any court
of competent jurisdiction for the removal of the Trustee with respect to all
Securities and the appointment of a successor Trustee or Trustees.
(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 one or more series, the Company, by a Board
Resolution, shall promptly appoint a successor Trustee or Trustees with respect
to the Securities of that or those series (it being understood that any such
successor Trustee may be appointed with respect to the Securities of one or more
or all of such shares and that at any time there shall be only one Trustee with
respect to the Securities of any particular series) and shall comply with the
applicable requirements of Section 611. If, within one year after such
resignation, removal or incapability, or the occurrence of such vacancy a
successor Trustee with respect to the Securities of any shares shall be
appointed by Act of the Holders of a majority in principal amount of the
Outstanding
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Securities of such series delivered to the Company and the retiring Trustee, the
successor Trustee so appointed shall, forthwith upon its acceptance of such
appointment in accordance with the applicable requirements of Section 611,
become the successor Trustee with respect to the Securities of such series and
to that extent supersede the successor Trustee appointed by the Company. If no
successor Trustee with respect to the Securities of any series shall have been
so appointed by the Company or the Holders and accepted appointment in the
manner required by Section 611, any Holder who has been a bona fide Holder of a
Security of such series for at least six months may, on behalf of himself and
all others similarly situated, petition any court of competent jurisdiction for
the appointment of a successor Trustee with respect to the Securities of such
series.
(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
to all Holders of Securities of such series in the manner provided in Section
106. Each notice shall include the name of the successor Trustee with respect to
the Securities of such series and the address of its Corporate Trust Office.
Section 611. Acceptance of Appointment by Successor.
--------------------------------------
(a) In case of the appointment hereunder of a successor Trustee with
respect to all Securities, every such successor Trustee so appointed shall
execute, acknowledge and deliver to the Company and to the retiring Trustee an
instrument accepting such appointment, and thereupon the resignation or removal
of the retiring Trustee shall become effective and such successor Trustee,
without any further act, deed or conveyance, shall become vested with all the
rights, powers, trusts and duties of the retiring Trustee; but, on the request
of the Company or the successor Trustee, such retiring Trustee shall, upon
payment of its charges, execute and deliver an instrument transferring to such
successor Trustee all the rights, powers and trusts of the retiring Trustee and
shall duly assign, transfer and deliver to such successor Trustee all property
and money held by such retiring Trustee hereunder.
(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
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accept such appointment and which (1) shall contain such provisions as shall be
necessary or desirable to transfer and confirm to, and to vest in, each
successor Trustee all the rights, powers, trusts and duties of the retiring
Trustee with respect to the Securities of that or those series to which the
appointment of such successor Trustee relates, (2) if the retiring Trustee is
not retiring with respect to all Securities, shall contain such provisions as
shall be deemed necessary or desirable to confirm that all the rights, powers,
trusts and duties of the retiring Trustee with respect to the Securities of that
or those series as to which the retiring Trustee is not retiring shall continue
to be vested in the retiring Trustee, and (3) shall add to or change any of the
provisions of this Indenture as shall be necessary to provide for or facilitate
the administration of the trusts hereunder by more than one Trustee, it being
understood that nothing herein or in such supplemental indenture shall
constitute such Trustees co- trustees of the same trust and that each such
Trustee shall be trustee of a trust or trusts hereunder separate and apart from
any trust or trusts hereunder administered by any other such Trustee; and upon
the execution and delivery of such supplemental indenture the resignation or
removal of the retiring Trustee shall become effective to the extent provided
therein and each such successor Trustee, without any further act, deed or
conveyance, shall become vested with all the rights, powers, trusts and duties
of the retiring Trustee with respect to the Securities of that or those series
to which the appointment of such successor Trustee relates; but, on request of
the Company or any successor Trustee, such retiring Trustee shall duly assign,
transfer and deliver to such successor Trustee all property and money held by
such retiring Trustee hereunder with respect to the Securities of that or those
series to which the appointment of such successor Trustee relates.
(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 and trusts 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.
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Section 612. Merger, Conversion, Consolidation or Succession to Business.
-----------------------------------------------------------
Any corporation into which the Trustee may be merged or converted or
with which it may be consolidated, or any corporation resulting from any merger,
conversion or consolidation to which the Trustee shall be a party, or any
corporation succeeding to all or substantially all the corporate trust business
of the Trustee, shall be the successor of the Trustee hereunder, provided such
corporation shall be otherwise qualified and eligible under this Article without
the execution or filing of any paper or any further act on the part of any of
the parties hereto. In case any Securities shall have been authenticated, but
not delivered, by the Trustee then in office, any successor by merger conversion
or consolidation to such authenticating Trustee may adopt such authentication
and deliver the Securities so authenticated with the same effect as if such
successor Trustee had itself authenticated such Securities.
Section 613. Preferential Collection of Claims Against Company.
------------------------------------------------
If and when the Trustee shall be or become a creditor of the Company
(or any other obligor upon the Securities), the Trustee shall be subject to the
provisions of the Trust Indenture Act regarding the collection of claims against
the Company (or any such other obligor).
Section 614. Appointment of Authenticating Agent.
-----------------------------------
The Trustee may appoint an Authenticating Agent or Agents with respect
to one or more series of Securities which shall be authorized to act on behalf
of the Trustee to authenticate Securities of such series issued upon original
issue and upon exchange, registration of transfer or partial redemption thereof
or pursuant to Section 306, and Securities so authenticated shall be entitled to
the benefits of this Indenture and shall be valid and obligatory for all
purposes as if authenticated by the Trustee hereunder. Wherever reference is
made in this Indenture to the authentication and delivery of Securities by the
Trustee or the Trustee's certificate of authentication, such reference shall be
deemed to include authentication and delivery on behalf of the Trustee by an
Authenticating Agent and a certificate of authentication executed on behalf of
the Trustee by a 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
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act as Authenticating Agent, having a combined capital and surplus of not less
than $50,000,000 and subject to supervision or examination by Federal or State
authority. If such Authenticating Agent publishes reports of condition at least
annually, pursuant to law or to the requirements of said supervising or
examining authority, then for the purposes of this Section, the combined capital
and surplus of such Authenticating Agent shall be deemed to be its combined
capital and surplus as set forth in its most recent report of condition so
published. If at any time an Authenticating Agent shall cease to be eligible in
accordance with the provisions of this Section, such Authenticating Agent shall
resign immediately in the manner and with the effect specified in this Section.
Any corporation into which an Authenticating Agent may be merged or
converted or with which it may be consolidated, or any corporation resulting
from any merger, conversion or consolidation to which such Authenticating Agent
shall be a party, or any corporation succeeding to the corporate agency or
corporate trust business of an Authenticating Agent, shall continue to be an
Authenticating Agent, provided such corporation shall be otherwise eligible
under this Section, without the execution or filing of any paper or any further
act on the part of the Trustee or the Authenticating Agent.
An Authenticating Agent may resign at any time by giving written
notice thereof to the Trustee and to the Company. The Trustee may at any time
terminate the agency of a Authenticating Agent by giving written notice thereof
to such Authenticating Agent and to the Company. Upon receiving such a notice
of resignation or upon such a termination, or in case at any time such
Authenticating Agent shall cease to be eligible in accordance with the
provisions of this Section, the Trustee may appoint a successor Authenticating
Agent which shall be acceptable to the Company and shall give notice of such
appointment in the manner provided in Section 106 to all Holders of Securities
of the series with respect to which such Authenticating Agent will serve. Any
successor Authenticating Agent upon acceptance of its appointment hereunder
shall become vested with all the rights, powers and duties of its predecessor
hereunder, with like effect as if originally named as a 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
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entitled to be reimbursed for such payments, subject to the provisions of
Section 607.
If a appointment with respect to one or more series is made pursuant
to this Section, the Securities of such series may have endorsed thereon, in
addition to the Trustee's certificate of authentication, an alternative
certificate of authentication in the following form:
This is one of the Securities of the series designated therein
referred to in the within-mentioned Indenture.
First Fidelity Bank, National Association,
-------------------
As Trustee
By ______________________ ,
As Authenticating Agent
By ____________________
Authorized Officer
ARTICLE SEVEN
Holders' List and Reports by Trustee and Company
Section 701. Company to Furnish Trustee Names and Addresses of Holders.
---------------------------------------------------------
The Company will furnish or cause to be furnished to the Trustee
(a) semi-annually, not later than 15 days after each Regular Record
Date for each series of Securities at the time Outstanding, a list, in such
form as the Trustee may reasonably require, of the names and addresses of
the Holders as of such Regular Record Date (or on a date to be determined
pursuant to Section 301 for any series of Original Issue Discount
Securities), and
(b) at such other times as the Trustee may request in writing, within
30 days after the receipt by
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the Company of any such request, a list of similar form and content as of a
date not more than 15 days prior to the time such list is furnished;
excluding from any such list names and addresses received by the Trustee in its
capacity as Security Registrar.
Section 702. Preservation of Information; Communications to Holders.
------------------------------------------------------
(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 701 and the
names and addresses of Holders received by the Trustee in its capacity as
Security Registrar. The Trustee may destroy any list furnished to it as
provided in Section 701 upon receipt of a new list so furnished.
(b) The rights of Holders to communicate with other Holders with
respect to their rights under this Indenture or under the Securities, and
the corresponding rights and privileges of the Trustee, shall be as
provided by the Trust indenture Act.
(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 nor any agent of either of them shall be held accountable by reason
of any disclosure of information as to names and addresses of Holders made
pursuant to the Trust Indenture Act.
Section 703. Reports by Trustee.
------------------
The Trustee shall transmit to Holders such reports concerning the
Trustee and its actions under this Indenture as may be required pursuant to the
Trust Indenture Act at the times and in the manner provided pursuant thereto.
A copy of each such report shall, at the time of such transmission to
Holders, be filed by the Trustee with each stock exchange upon which any
Securities are listed, with the Commission and with the Company. The Company
will notify the Trustee when any Securities are listed on any stock exchange.
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Section 704. Reports by Company.
------------------
The Company shall file with the Trustee and the Commission, and
transmit to Holders, such information, documents and other reports, and such
summaries thereof, as may be required pursuant to the Trust Indenture Act at the
times and in the manner provided pursuant to such Act; provided that any such
information, documents or reports required to be filed with the Commission
pursuant to Section 13 or 15(d) of the Exchange Act shall be filed with the
Trustee within 15 days after the same is so required to be filed with the
Commission.
ARTICLE EIGHT
Consolidation, Merger, Conveyance, Transfer or Lease
Section 801. 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 or convey, transfer or lease its
properties and assets substantially as an entirety to 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 person 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, partnership or trust,
shall be organized and validly 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 interest on
all the Securities and the performance or observance 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 and treating
any indebtedness which becomes
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an obligation of the Company or a Subsidiary as a result of such
transaction as having been incurred by the Company or such Subsidiary at
the time of 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;
(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 which 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) in case the Company shall consolidate with or merge into another
corporation or convey, transfer or lease its properties and assets
substantially as an entity to any Person, 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 802. Successor Corporation Substituted.
---------------------------------
Upon any consolidation by the Company with or merger by the Company
into any other person or any conveyance, transfer or lease of the properties and
assets of the Company substantially as an entirety in accordance with Section
801, the successor person formed by such consolidation or into which the Company
is merged or to which such conveyance, 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 person
had been named as the Company herein, and thereafter, except in the case of a
lease, the predecessor person shall be relieved of all obligations and covenants
under this Indenture and the Securities.
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ARTICLE NINE
Supplemental Indentures
Section 901. Supplemental Indentures Without Consent of Holders.
--------------------------------------------------
Without the consent of any Holders, the Company, when authorized by a
Board Resolution, and the Trustee, at any time and from time to time, may enter
into one or more indentures supplemental hereto, in form satisfactory to the
Trustee, for any of the following purposes:
(1) to evidence the succession of another person to the Company and
the assumption by any such successor of the covenants of the Company herein
and in the Securities; or
(2) to add to the covenants of the Company for the benefit of the
Holders of all or any series of Securities (and if such covenants are to be
for the benefit of less than all series of Securities, stating that such
covenants are expressly being included solely for the benefit of such
series) or to surrender any right or power herein conferred upon the
Company; or
(3) to add any additional Events of Default for the benefit of the
Holders of all or any series of Securities (and if such additional Events
of Default are to be for the benefit of less than all series of Securities,
stating that such additional Events of Default are expressly being included
solely for the benefit of such series); or
(4) to add to or change any of the provisions of this Indenture 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 to permit or facilitate the
issuance of Securities in uncertificated form; or
(5) to add to, change or eliminate any of the provisions of this
Indenture in respect of one or more series of Securities, provided that any
such addition, change or elimination (A) shall neither (i) apply to any
Security of any series created prior to the execution of such supplemental
indenture and entitled to the benefit of such provision nor (ii) modify the
rights of the Holder of any such Security with respect
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to such provision or (B) shall become effective only when there is no such
Security Outstanding; or
(6) to secure the Securities pursuant to the requirements of Section
1006 or otherwise; or
(7) to establish the form or terms of Securities of any series as
permitted by Sections 201 and 301; or
(8) to evidence and provide for the acceptance of appointment
hereunder by a successor Trustee with respect to the Securities of one or
more series and to add to or change any of the provisions of this Indenture
as shall be necessary to provide for or facilitate the administration of
the trusts hereunder by more than one Trustee, pursuant to the requirements
of Section 611(b); or
(9) to cure any ambiguity, to correct or supplement any provision
herein which may be defective or inconsistent with any other provision
herein, or to make any other provisions with respect to matters or
questions arising under this Indenture, provided such action pursuant to
--------
this Clause (9) shall not adversely affect the interests of the Holders of
Securities of any series in any material respect.
Section 902. Supplemental Indentures with Consent of Holders.
-----------------------------------------------
With the consent of the Holders of not less than a majority in
principal amount of the Outstanding Securities of each series affected by such
supplemental indenture, by Act of said Holders delivered to the Company and the
Trustee, the Company, when authorized by a Board Resolution, and the Trustee may
enter into an indenture or indentures supplemental hereto for the purpose of
adding any provisions to or changing in any manner or eliminating any of the
provisions of this Indenture or of modifying in any manner the rights of the
Holders of Securities of such series under this Indenture; provided, however,
-------- -------
that no such supplemental indenture shall, without the consent of the Holder of
each Outstanding Security affected thereby,
(1) change the Stated Maturity of the principal of, or any instalment
of principal of or interest on, any Security, or reduce the principal
amount thereof or the rate of interest thereon or any premium payable upon
the redemption thereof, or reduce the amount of the principal of an
Original Issue Discount Security that would be due and payable upon a
declaration of
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acceleration of the Maturity thereof pursuant to Section 502, or change any
Place of Payment where, or the coin or currency in which, any Security or
any premium or interest thereon is payable, or impair the right to
institute suit for the enforcement of any such payment on or after the
Stated Maturity thereof (or, in the case of redemption, on or after the
Redemption Date), or
(2) reduce the percentage in principal amount of the Outstanding
Securities of any series, the consent of whose Holders is required for any
such supplemental indenture, or the consent of whose Holders is required
for any waiver (of compliance with certain provisions of this Indenture or
certain defaults hereunder and their consequences) provided for in this
Indenture, or
(3) modify any of the provisions of this Section, Section 513 or
Section 1010, 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 1010, or the
deletion of this proviso, in accordance with the requirements of Sections
611(b) and 901(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.
It shall not be necessary for any Act of Holders under this Section to
approve the particular form of any proposed supplemental indenture, but it shall
be sufficient if such Act shall approve the substance thereof.
Section 903. Execution of Supplemental Indentures.
------------------------------------
In executing, or accepting the additional trusts created by, any
supplemental indenture permitted by this Article or the modifications thereby of
the trusts created by this Indenture, the Trustee shall be entitled to receive,
and (subject to Section 601) shall be fully protected in
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relying upon, an Opinion of Counsel stating that the execution of such
supplemental indenture is authorized or permitted by this Indenture. The Trustee
may, but shall not be obligated to, enter into any such supplemental indenture
which affects the Trustee's own rights, duties or immunities under this
Indenture or otherwise.
Section 904. Effect of Supplemental Indentures.
---------------------------------
Upon the execution of any supplemental indenture under this Article,
this Indenture shall be modified in accordance therewith, and such supplemental
indenture shall form a part of this Indenture for all purposes; and every Holder
of Securities theretofore or thereafter authenticated and delivered hereunder
shall be bound thereby.
Section 905. Conformity with Trust Indenture Act.
-----------------------------------
Every supplemental indenture executed pursuant to this Article shall
conform to the requirements of the Trust Indenture Act.
Section 906. Reference in Securities to Supplemental Indentures.
--------------------------------------------------
Securities of any series authenticated and delivered after the
execution of any supplemental indenture pursuant to this Article may, and shall
if required by the Trustee, bear a notation in form approved by the Trustee as
to any matter provided for in such supplemental indenture. If the Company shall
so determine, new Securities of any series so modified as to conform, in the
opinion of the Trustee and the Company, to any such supplemental indenture may
be prepared and executed by the Company and authenticated and delivered by the
Trustee in exchange for Outstanding Securities of such series.
ARTICLE TEN
Covenants
Section 1001. Payment of Principal, Premium and Interest.
------------------------------------------
The Company covenants and agrees for the benefit of each series of
Securities that it will duly and punctually pay the principal of (and premium,
if any) and interest on the Securities of that series in accordance with the
terms of the Securities and this Indenture.
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Section 1002. Maintenance of Office or Agency.
-------------------------------
The Company will maintain in each Place of Payment for any series of
Securities an office or agency where Securities of that series may be presented
or surrendered for payment, where Securities of that series may be surrendered
for registration of transfer or exchange and where notices and demands to or
upon the Company in respect of the Securities of that series and this Indenture
may be served, which office or agency shall initially be the office of the
Trustee located at 123 South Broad Street, Corporate Trust Operations, Level B-
1, Philadelphia, Pennsylvania 19109. The Company will give prompt written
notice to the Trustee of any change in the location of such office or agency.
If at any time the Company shall fail to maintain any such required office or
agency or shall fail to furnish the Trustee with the address thereof, such
presentations, surrenders, notices and demands may be made or served at the
Corporate Trust Office of the Trustee, and the Company hereby appoints the
Trustee as its agent to receive all such presentations, surrenders, notices and
demands.
The Company may also from time to time designate one or more other
offices or agencies where the Securities of one or more series may be presented
or surrendered for any or all such purposes and may from time to time rescind
such designations; provided, however, that no such designation or rescission
-------- -------
shall in any manner relieve the Company of its obligation to maintain an office
or agency in each Place of Payment for Securities of any series for such
purposes. The Company will give prompt written notice to the Trustee of any
such designation or rescission and of any change in the location of any such
other office or agency.
Section 1003. Money for Securities to Be Held in Trust.
----------------------------------------
If the Company shall at any time act as its own Paying Agent with
respect to any series of Securities, it will, on or before each due date of the
principal of (and premium, if any) or interest on any of the Securities of that
series, segregate and hold in trust for the benefit of the Persons entitled
thereto a sum sufficient to pay the principal (and 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.
Whenever the Company shall have one or more Paying Agents for any
series of Securities, it will, prior to each due date of the principal of (and
premium, if any) or interest on any Securities of that series, deposit with a
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Paying Agent a sum sufficient to pay the principal (and premium, if any) or
interest so becoming due, such sum to be held, as provided by the Trust
Indenture Act, 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 its action or failure so to act.
The Company will cause each Paying Agent for any series of Securities
other than the Trustee to execute and deliver to the Trustee an instrument in
which such Paying Agent shall agree with the Trustee, subject to the provisions
of this Section, that such Paying Agent will (1) comply with the provisions of
the Trust Indenture Act applicable to it as a Paying Agent and (2) during the
continuance of any default by the Company (or any other obligor upon the
Securities of that series) in the making of any payment in respect of the
Securities of that series, upon the written request of the Trustee, forthwith
pay to the Trustee all sums held in trust by such Paying Agent for payment in
respect of the Securities of that series.
The Company may at any time, for the purpose of obtaining the
satisfaction and discharge of this Indenture or for any other purpose, pay, or
by Company Order direct any Paying Agent to pay, to the Trustee all sums held in
trust 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 of any series 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 each Place of Payment, or
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mailed to 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 publication or mailing, as the case may be, any unclaimed
balance of such money then remaining will be repaid to the Company.
Section 1004. Corporate Existence.
-------------------
Subject to Article Eight, the Company will do or cause to be done all
things necessary to preserve and keep in full force and effect its corporate
existence, rights (charter and statutory) and franchises; provided, however,
-------- -------
that the Company shall not be required to preserve any such right or franchise
if the Board of Directors shall determine that the preservation thereof is no
longer desirable in the conduct of the business of the Company and that the loss
thereof is not disadvantageous in any material respect to the Holders.
Section 1005. Maintenance of Properties.
-------------------------
The Company will cause all properties used or useful 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
operation or 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 1006. Limitation on Liens.
-------------------
(a) Except to the extent provided in Section 1008, the Company will
not create or assume, and will not permit any Restricted Subsidiary to create or
assume, any mortgage, security interest, pledge or lien (collectively in this
Article Ten referred to as a "lien") of or upon any Principal Property or shares
of capital stock or indebtedness of 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
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whereby the Outstanding Securities shall be secured by such lien equally and
ratably with any and all other indebtedness or obligations thereby secured so
long as such other indebtedness or obligations shall be secured; provided that
the foregoing shall not apply to any of the following:
(i) liens on any Principal Property existing at the time that it is
acquired by the Company or any Restricted Subsidiary; or liens on any
Principal Property acquired, constructed or improved by the Company or any
Restricted Subsidiary after the date of this Indenture which are Created or
assumed contemporaneously with, or within 180 days after (or, in the case
of any such Principal Property which is being financed on the basis of
long-term contracts or similar financing arrangements for which a firm
commitment is made by one or more banks, insurance companies or other
lenders or investors (not including the Company or any Restricted
Subsidiary), within 360 days after) the completion of such acquisition
construction or improvement to secure or provide for the payment of any
part of the purchase price of such property or the cost of such
construction or improvement;
(ii) liens on property or shares of capital stock or indebtedness of a
corporation existing at the time such corporation is merged into or
consolidated with the Company or a Restricted Subsidiary or at the time of
a sale, lease or other disposition of the properties of a corporation as an
entirety or substantially as an entirety to the Company or a Restricted
Subsidiary;
(iii) liens on property or shares of capital stock or indebtedness of a
corporation existing at the time such corporation becomes a Restricted
Subsidiary;
(iv) liens to secure indebtedness of a Restricted Subsidiary to the
Company or to another Restricted Subsidiary, but only so long as such
indebtedness is held by the Company or a Restricted Subsidiary;
(v) liens in favor of the United States of America or any state
thereof, or any department, agency or political subdivision of the United
States of America or any state thereof, to secure partial, progress,
advance or other payments pursuant to any contract or statute, including
without limitation, liens to secure indebtedness represented by pollution
control or industrial revenue bonds, or to secure any indebtedness incurred
for the purpose of financing all
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or any part of the purchase price or the cost of constructing or improving
the property subject to such liens;
(vi) liens in favor of any customer arising in respect of partial,
progress, advance or other payments made by or on behalf of such customer
for goods produced for or services rendered to such customer in the
ordinary course of business not exceeding the amount of such payments;
(vii) liens existing at the date of this Indenture;
(viii) mechanics', workers', repairmen's, materialmen's, warehousemen's
carriers' or other similar liens arising in the ordinary course of
business;
(ix) pledges or deposits under the workers' compensation laws or
similar legislation and liens of judgments thereunder which are not
currently dischargeable, or good faith deposits in connection with bids,
tenders, contracts (other than for the payment of money) or leases to which
the Company or any Restricted Subsidiary is a party, or deposits in
connection with obtaining or maintaining self-insurance or to obtain the
benefits of any law, regulation or arrangement pertaining to unemployment
insurance, old age pensions, social security or similar matters, or
deposits of cash or obligations of the United States of America to secure
surety, appeal or customs bonds to which the Company or any Restricted
Subsidiary is a party, or deposits in litigation or other proceedings such
as, but not limited to, interpleader proceedings;
(x) liens created by or resulting from any litigation or proceedings
which are being contested in good faith; liens arising out of judgments or
awards against the Company or any Restricted Subsidiary with respect to
which the Company or such Restricted Subsidiary is in good faith
prosecuting an appeal or proceedings for review; or liens incurred by the
Company or any Restricted Subsidiary for the purpose of obtaining a stay or
discharge in the course of any legal proceeding to which the Company or
such Restricted Subsidiary is a party;
(xi) liens for taxes or assessments or governmental charges or levies
not yet due or delinquent, or which can thereafter be paid without
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penalty, or which are being contested in good faith by appropriate
proceedings; landlord's liens on property held under lease, and tenants'
rights under leases; and easements;
(xii) other liens incidental to the conduct of the business or the
ownership of the property and assets of the Company or a Restricted
Subsidiary which were not incurred in connection with the borrowing of
money or the obtaining of advances or credit, and which do not, in the
opinion of the Company, materially detract from the value of the property
or assets or materially impair the use thereof in the operation of the
business of the Company and its Restricted Subsidiaries taken as a whole;
(xiii) liens for the sole purpose of extending, renewing or replacing in
whole or in part any lien referred to in the foregoing clauses (i) to
(xii), inclusive, or in this clause (xiii), provided that the principal
amount of indebtedness secured thereby shall not exceed the principal
amount of any indebtedness so secured at the time of such extension,
renewal or replacement, and that such extension, renewal or replacement
shall be limited to all or a part of the property subject to the lien so
extended, renewed or replaced (plus improvements on such property).
(b) For the purposes of Sections 1006, 1007 and 1008:
(i) "Attributable Debt" means, as to any particular lease under which
any Person is at the time liable, at any date as of which the amount
thereof is to be determined, the total net amount of rent required to be
paid by such Person under such lease during the remaining term thereof,
excluding renewals at the option of lessee, discounted at a rate per annum
equal to the prevailing market interest rate, at the time such lease was
entered into, on United States Treasury obligations having a maturity
substantially the same as the average term of such lease, plus 3%. The net
amount of rent required to be paid under any such lease for any such period
shall be the amount of the rent payable by the lessee with respect to such
period, after excluding amounts required to be paid on account of
maintenance and repairs, insurance, taxes, assessments, water rates and
similar charges and contingent rents such as those based on sales. In the
case of any lease which is terminable by the lessee upon the payment of a
penalty, such net amount shall
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also include the amount of such penalty, but no rent shall be considered as
required to be paid under such lease subsequent to the first date upon
which it may be so terminated.
(ii) "Consolidated Net Assets" means the total of all assets after
deducting all current liabilities appearing on a consolidated balance sheet
of the Company and its consolidated Subsidiaries, prepared in accordance
with generally accepted accounting principles, the assets to be determined
at their net book values (after deducting related depreciation, depletion,
amortization and all other valuation reserves which, in accordance with
such principles, should be set aside in connection with the business
conducted).
(iii) "Principal Property" means any manufacturing plant, research
facility or warehouse owned or leased by the Company or any Restricted
Subsidiary which is located within the United States of America and has a
net book value exceeding 2 1/2% of Consolidated Net Assets, but not
including (1) any property which in the opinion of the Board of Directors
of the Company is not of material importance to the total business
conducted by the Company as an entirety or (2) any portion of a particular
property which is similarly found not to be of material importance to the
use or operation of such property.
(iv) "Restricted Subsidiary" means a Subsidiary of the Company which
owns a Principal Property.
Section 1007. Limitation on Sale and Lease-Back.
---------------------------------
Except to the extent provided in Section 1008, the Company will not,
nor will it permit any Restricted Subsidiary to, enter into any arrangement with
any Person providing for the leasing by the Company or any Restricted Subsidiary
of any Principal Property (except for leases 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 owned and operated by the
Company or any Restricted Subsidiary for more than 180 days and has been or is
to be sold or transferred by the Company or such Restricted Subsidiary to such
Person (in Section 1007 and in Section 1008 referred to as a "Sale and Lease-
Back Transaction") unless either (i) the Company or such Restricted Subsidiary
would be entitled to incur indebtedness secured by a lien on such property
without equally and ratably securing the Securities pursuant to the
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provisions of Section 1006 or (ii) the Company shall apply an amount equal to
the Attributable Debt in respect of such Sale and Lease-Back Transaction to (1)
the acquisition of one or more Principal Properties of equal or greater
aggregate fair market value, (2) the retirement of indebtedness for borrowed
money, including the Securities, incurred or assumed by the Company or any
Restricted Subsidiary (other than indebtedness for borrowed money owed to the
Company or any Restricted Subsidiary) or (3) any combination of the foregoing;
provided that the amount to be applied to the retirement of such indebtedness of
- -------- ----
the Company or any Restricted Subsidiary shall be reduced by (i) the principal
amount of any Securities delivered within 180 days after such sale to the
Trustee for retirement and cancellation, and (ii) the principal amount of such
indebtedness, other than Securities, voluntarily retired by the Company within
180 days after such sale. Notwithstanding the foregoing, no retirement referred
to in clause (2) of the preceding sentence may be effected by payment at
maturity or pursuant to any mandatory sinking fund payment or any mandatory
prepayment provision.
Section 1008. Exemption from Limitations on Liens and Sale and Lease-Back.
-----------------------------------------------------------
Notwithstanding the provisions of Section 1006 and Section 1007, the
Company and its Restricted Subsidiaries may create or assume liens and enter
into Sale and Lease-Back Transactions which would otherwise require the securing
of the Securities, the acquisition of one or more Principal Properties or the
retirement of indebtedness for borrowed money under said provisions, provided
--------
that the aggregate amount of all such liens and Sale and Lease-Back Transactions
- ----
permitted by Section 1008 outstanding at the time such lien is assumed or
created or such Sale and Lease-Back Transaction is entered into (as measured by
(i) all indebtedness secured by all such liens then outstanding or to be so
created or assumed (and after giving effect to the retirement of any
indebtedness or obligations which are concurrently being retired) and (ii) the
Attributable Debt in respect of all such Sale and Lease-Back Transactions then
outstanding or to be so entered into) shall not exceed 10% of Consolidated Net
Assets, as determined in accordance with the most recent published consolidated
balance sheet of the Company and after giving effect to the receipt and
application of any proceeds of all indebtedness secured by all such liens so to
be created or assumed and of any Sale and Lease-Back Transactions so to be
entered into.
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Section 1009. 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 1001 to 1008, 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 1010. Waiver of Certain Covenants.
---------------------------
The Company may omit in any particular instance to comply with any
term, provision or condition set forth in Sections 1004 to 1008, inclusive, with
respect to the Securities of any series if before the time for such compliance
the Holders of at least 66 2/3% in principal amount of the Outstanding
Securities of such series shall, by Act of such Holders, either waive such
compliance in such instance or generally waive compliance with such term,
provision or condition, but no such waiver shall extend to or affect such term,
provision or condition except to the extent so expressly waived, and, until such
waiver shall become effective, the obligations of the Company and the duties of
the Trustee in respect of any such term, provision or condition shall remain in
full force and effect.
ARTICLE ELEVEN
Redemption of Securities
Section 1101. 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 301 for Securities of any series)
in accordance with this Article.
Section 1102. Election to Redeem; Notice to Trustee.
-------------------------------------
The election of the Company to redeem any Securities shall be
evidenced by a Board Resolution or in another manner specified as contemplated
by Section 301 for such Securities. In case of any redemption at the election
of the Company of less than all the Securities of any series (including any such
redemption affecting only a single Security), the Company shall, at least 60
days prior to the
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Redemption Date fixed by the Company (unless a shorter notice shall be
satisfactory to the Trustee), notify the Trustee of such Redemption Date, of the
principal amount of Securities of such series to be redeemed and, if applicable,
of the tenor of the Securities to be redeemed. In the case of any redemption of
Securities prior to the expiration of any restriction on such redemption
provided in the terms of such Securities or elsewhere in this Indenture, the
Company shall furnish the Trustee with an Officers' Certificate evidencing
compliance with such restriction.
Section 1103. Selection by Trustee of Securities to Be Redeemed.
-------------------------------------------------
If less than all the Securities of any series are to be redeemed
(unless all the Securities of such series and of a specified tenor are to be
redeemed or unless such redemption affects only a single Security), the
particular Securities to be redeemed shall be selected not more than 60 days
prior to the Redemption Date by the Trustee, from the Outstanding Securities of
such series not previously called for redemption, if the Securities are listed
on a national securities exchange, in accordance with the rules of such
exchange, or, if the securities are not so listed, on either a pro rata basis or
by lot, or by such other method as the Trustee shall deem fair and appropriate
and which may provide for the selection for redemption of a portion (equal to
the minimum authorized denomination for Securities of that series or any
integral multiple thereof) of the principal amount of any Security of such
series, provided that the unredeemed portion of the principal amount of any
Security shall be in an authorized denomination (which shall not be less than
the minimum authorized denomination) for such Security.
The Trustee shall promptly notify the Company and each Security
Registrar in writing of the Securities selected for redemption as aforesaid and,
in case of any Securities selected for partial redemption as aforesaid, the
principal amount thereof to be redeemed.
The provisions of the two preceding paragraphs shall not apply with
respect to any redemption affecting only a single Security, whether such
Security is to be redeemed in whole or in part. In the case of any such
redemption in part, the unredeemed portion of the principal amount of the
Security shall be in an authorized denomination (which shall not be less than
the minimum authorized denomination) for such Security.
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For all purposes of this Indenture, unless the context otherwise
requires, all provisions relating to the redemption of Securities shall relate,
in the case of any Securities redeemed or to be redeemed only in part, to the
portion of the principal amount of such Securities which has been or is to be
redeemed.
Section 1104. Notice of Redemption.
--------------------
Notice of redemption shall be given by first-class mail, postage
prepaid, mailed not less than 30 nor more than 60 days prior to the Redemption
Date, to each Holder of Securities to be redeemed, at his address appearing in
the Security Register.
All notices of redemption shall state:
(1) the Redemption Date,
(2) the Redemption Price,
(3) if less than all the Outstanding Securities of any series
consisting of more than a single Security are to be redeemed, the
identification (and, in the case of partial redemption of any such
Securities, the principal amounts) of the particular Securities to be
redeemed and, if less than all the Outstanding Securities of any series
consisting of a single Security are to be redeemed, the principal amount of
the Security to be redeemed,
(4) that on the Redemption Date the Redemption Price will become due
and payable upon each such Security to be redeemed and, if applicable, that
interest thereon will cease to accrue on and after said date,
(5) the place or places where such Securities are to be surrendered
for payment of the Redemption Price, and
(6) that the redemption is for a sinking fund, if such is the case.
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.
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Section 1105. Deposit of Redemption Price.
---------------------------
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 1003) an amount of
money 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
which are to be redeemed on that date.
Section 1106. 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, unless otherwise specified as
-------- -------
contemplated by Section 301, instalments 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 at the
close of business on the relevant Record Dates according to their terms and the
provisions of Section 307.
If any Security called for redemption shall not be so paid upon
surrender thereof for redemption, the principal (and premium, if any) shall,
until paid, bear interest from the Redemption Date at the rate prescribed
therefor in the Security.
Section 1107. Securities Redeemed in Part.
---------------------------
Any Security which is to be redeemed only in part shall be surrendered
at a Place of Payment therefor (with, if the Company or the Trustee so requires,
due endorsement by, or a written instrument of transfer in form satisfactory to
the Company and the Trustee duly executed by, the Holder thereof or his attorney
duly authorized in writing), and the Company shall execute, and the Trustee
shall authenticate and deliver to the Holder of such Security without service
charge, a new Security or Securities of the same series and of like tenor, of
any authorized denomination as requested by such Holder, in aggregate principal
amount equal to and
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in exchange for the unredeemed portion of the principal of the Security so
surrendered.
ARTICLE TWELVE
Sinking Funds
Section 1201. Applicability of Article.
------------------------
The provisions of this Article shall be applicable to any sinking fund
for the retirement of Securities of a series except as otherwise specified as
contemplated by Section 301 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 1202. 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 1202. Satisfaction of Sinking Fund Payments with Securities.
-----------------------------------------------------
The Company (1) may deliver Outstanding Securities of a series (other
than any previously called for redemption) and (2) may apply as a credit
Securities of a series 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 provided for by the terms of such
series; provided that such Securities to be so credited 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.
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Section 1203. Redemption of Securities for Sinking Fund.
-----------------------------------------
Not less than 60 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 1202 and will also deliver the Trustee any Securities to be
so delivered. Not less than 30 days before each such sinking fund payment date
the Trustee shall select the Securities to be redeemed upon such sinking fund
payment date in the manner specified in Section 1103 and cause notice of the
redemption thereof to be given in the name of and at the expense of the Company
in the manner provided in Section 1104. Such notice having been duly given, the
redemption of such Securities shall be made upon the terms and in the manner
stated in Sections 1106 and 1107.
ARTICLE THIRTEEN
Defeasance and Covenant Defeasance
Section 1301. Applicability of Article; Company's Option to Effect Defeasance
---------------------------------------------------------------
or Covenant Defeasance.
----------------------
If pursuant to Section 301 provision is made for either or both of (a)
defeasance of the Securities of a series under Section 1302 or (b) covenant
defeasance of the Securities of a series under Section 1303, then the provisions
of such Section or Sections, as the case may be, together with the other
provisions of this Article Thirteen, shall be applicable to the Securities of
such series, and the Company may at any time elect (such election to be
evidenced by a Board Resolution), with respect to the Securities of such series,
either to effect such a defeasance pursuant to Section 1302 (if applicable) or
to effect such a covenant defeasance pursuant to Section 1303 (if applicable) in
respect of the Outstanding Securities of such series upon compliance with the
conditions set forth below in this Article Thirteen.
Section 1302. Defeasance and Discharge.
------------------------
Upon the Company's election to effect a defeasance with respect to the
Securities of a series pursuant to this Section, the Company shall be deemed to
have been discharged from its obligations with respect to the Outstanding
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Securities of such series on the date the conditions set forth in Section 1304
are satisfied (hereinafter, "defeasance"). For this purpose, such defeasance
means that the Company shall be deemed to have paid and discharged the entire
indebtedness represented by the Outstanding Securities of such series and to
have satisfied all its other obligations under such Securities and this
Indenture insofar as such Securities are concerned (and the Trustee, at the
expense of the Company, shall execute proper instruments acknowledging the
same), except for the following which shall survive until otherwise terminated
or discharged hereunder: (A) the rights of Holders of Outstanding Securities of
such series to receive, solely from the trust fund described in Section 1304 and
as more fully set forth in such Section, payments in respect of the principal of
(and premium, if any) and interest on such Securities when such payments are
due, (B) the Company's obligations with respect to such Securities under
Sections 304, 305, 306, 1002 and 1003, (C) the rights, powers, trusts, duties,
and immunities of the Trustee hereunder and (D) this Article Thirteen. Subject
to compliance with this Article Thirteen, the Company may exercise its option
under this Section 1302 notwithstanding the prior exercise of its option under
Section 1303 with respect to the Securities of such series.
Section 1303. Covenant Defeasance.
-------------------
Upon the Company's election to effect a covenant defeasance with
respect to the Securities of a series pursuant to this Section, the Company
shall be released from its obligations under Sections 1006, 1007 and 1008, and
Section 501(4) (with respect to Sections 1006, 1007 and 1008) and Section 501(5)
shall be deemed not to be an Event of Default, with respect to the Outstanding
Securities of such series on and after the date the conditions set forth in
Section 1304 are satisfied (hereinafter, "covenant defeasance"). For this
purpose, such covenant defeasance means that, with respect to the Outstanding
Securities of such series, the Company may omit to comply with and shall have no
liability in respect of any term, condition or limitation set forth in any such
Section, whether directly or indirectly by reason of any reference elsewhere
herein to any such Section or by reason of any reference in any such Section to
any other provision herein or in any other document, but the remainder of this
Indenture and such Securities shall be unaffected thereby.
-79-
<PAGE>
Section 1304. Conditions to Defeasance or Covenant Defeasance.
-----------------------------------------------
The following shall be the conditions to effecting a defeasance with
respect to the Securities of a series pursuant to Section 1302 or effecting a
covenant defeasance with respect to the Securities of a series pursuant to
Section 1303:
(1) the Company shall irrevocably have deposited or caused to be
deposited with the Trustee (or another trustee satisfying the requirements
of Section 609 who shall agree to comply with the provisions of this
Article Thirteen applicable to it) as trust funds in trust for the purpose
of making the following payments, specifically pledged as security for, and
dedicated solely to, the benefit of the Holders of such Securities, (A)
money in an amount, or (B) U.S. Government Obligations which through the
scheduled payment of principal and interest in respect thereof in
accordance with their terms will provide, not later than one day before the
due date of any payment, money in an amount, or (C) a combination thereof,
sufficient, in the opinion of a nationally recognized firm of independent
public accountants expressed in a written certification thereof delivered
to the Trustee, to pay and discharge, and which shall be applied by the
Trustee (or other qualifying trustee) to pay and discharge, (i) the
principal of (and premium, if any, on) and each instalment of principal of
(and premium, if any) and interest on the Outstanding Securities of such
series on the Stated Maturity of such principal or instalment of principal
or interest and (ii) any mandatory sinking fund payments or analogous
payments applicable to the Outstanding Securities of such series on the day
on which such payments are due and payable in accordance with the terms of
this Indenture and of such Securities. For this purpose, "U.S. Government
Obligations" means securities that are (x) direct obligations of the United
States of America for the payment of which its full faith and credit is
pledged or (y) obligations of a Person controlled or supervised by and
acting as an agency or instrumentality of the United States of America the
payment of which is unconditionally guaranteed as a full faith and credit
obligation by the United States of America, which, in either case, are not
callable or redeemable at the option of the issuer thereof.
(2) No Event of Default or event which with notice or lapse of time or
both would become an Event of
-80-
<PAGE>
Default with respect to the Securities of such series shall have occurred
and be continuing on the date of such deposit or, insofar as subsections
501(6) and (7) are concerned, at any time during the period ending on the
123rd day after the date of such deposit (it being understood that this
condition shall not be deemed satisfied until the expiration of such
period).
(3) Such defeasance or covenant defeasance shall not cause the Trustee
for the Securities of such series to have a conflicting interest as defined
in Section 608 and for purposes of the Trust Indenture Act with respect to
any securities of the Company.
(4) Such defeasance or covenant defeasance shall 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.
(5) Such defeasance or covenant defeasance shall not cause any
Securities of such series then listed on any registered national securities
exchange under the Securities Exchange Act of 1934, as amended, to be
delisted.
(6) In the case of an election under Section 1302, the Company shall
have delivered to the Trustee an opinion of nationally recognized tax
counsel stating that (x) the Company has received from, or there has been
published by, the Internal Revenue Service a ruling, or (y) since the date
of this Indenture there has been a change in the applicable Federal income
tax law, in either case to the effect that, and based thereon such opinion
shall confirm that, the Holders of the Outstanding Securities of such
series will not recognize income, gain or loss for Federal income tax
purposes as a result of such defeasance and will be subject to Federal
income tax on the same amounts, in the same manner and at the same times as
would have been the case if such defeasance had not occurred.
(7) In the case of an election under Section 1303, the Company shall
have delivered to the Trustee an Opinion of Counsel to the effect that the
Holders of the Outstanding Securities of such series will not recognize
income, gain or loss for Federal income tax purposes as a result of such
covenant defeasance and will be subject to Federal income tax on the same
amounts, in the same manner and at the same times as
-81-
<PAGE>
would have been the case if such covenant defeasance had not occurred.
(8) Such defeasance or covenant defeasance shall be effected in
compliance with any additional terms, conditions or limitations which may
be imposed on the Company in connection therewith pursuant to Section 301.
(9) The Company shall have delivered to the Trustee an Officers'
Certificate and an Opinion of Counsel, each stating that all conditions
precedent provided for relating to either the defeasance under Section 1302
or the covenant defeasance under Section 1303 (as the case may be) have
been complied with.
Section 1305. Deposited Money and U.S. Government Obligations to be Held in
-------------------------------------------------------------
Trust; Other Miscellaneous Provisions.
-------------------------------------
Subject to the provisions of the last paragraph of Section 1003, all
money and U.S. Government Obligations (including the proceeds thereof) deposited
with the Trustee or other qualifying trustee (collectively, for purposes of this
Section 1305 and Section 1306, the "Trustee") pursuant to Section 1304 in
respect of the Outstanding Securities of a series shall be held in trust and
applied by the Trustee, in accordance with the provisions of such Securities and
this Indenture, to the payment, either directly or through any Paying Agent
(including the Company acting as its own Paying Agent) as the Trustee may
determine, to the Holders of such Securities, of all sums due and to become due
thereon in respect of principal (and premium, if any) and interest, but such
money need not be segregated from other funds except to the extent required by
law.
The Company shall pay and indemnify the Trustee against any tax, fee
or other charge imposed on or assessed against the U.S. Government Obligations
deposited pursuant to Section 1304 or the principal and interest received in
respect thereof other than any such tax, fee or other charge which by law is for
the account of the Holders of the Outstanding Securities of such series.
Anything in this Article Thirteen to the contrary notwithstanding, the
Trustee shall deliver or pay to the Company from time to time upon Company
Request any money or U.S. Government Obligations held by it as provided in
Section 1304 with respect to any Securities which, in the opinion of a
nationally recognized firm of independent public accountants expressed in a
written certification
-82-
<PAGE>
thereof delivered to the Trustee, are in excess of the amount thereof which
would then be required to be deposited to effect an equivalent defeasance or
covenant defeasance, as the case may be, with respect to such Securities.
Section 1306. Reinstatement.
-------------
If the Trustee or the Paying Agent is unable to apply any money in
accordance with this Article with respect to any Securities by reason of any
order or judgment of any court or governmental authority enjoining, restraining
or otherwise prohibiting such application, then the obligations under this
Indenture and such Securities from which the Company has been discharged or
released pursuant to Section 1302 or 1302 shall be revived and reinstated as
though no deposit had occurred pursuant to this Article with respect to such
Securities, until such time as the Trustee or Paying Agent is permitted to apply
all money held in trust pursuant to Section 1305 with respect to such Securities
in accordance with this Article; provided, however, that if the Company makes
any payment of principal of or any premium or interest on any such Security
following such reinstatement of its obligations, the Company shall be subrogated
to the rights (if any) of the Holders of such Securities to receive such payment
from the money so held in trust.
__________________
This instrument may be executed in any number of counterparts, each of
which so executed shall be deemed to be an original, but all such counterparts
shall together constitute but one and the same instrument.
-83-
<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.
ALCO STANDARD CORPORATION
By /s/ Kathleen M. Burns
...........................
Name: Kathleen M. Burns
Title: Vice President
and Treasurer
Attest:
/s/ Karin M. Kinney
...........................
Title: Corporate Counsel
and Assistant Secretary
FIRST FIDELITY BANK, N.A.
By /s/ Melissa Matthews
...........................
Name: Melissa Matthews
Title: Vice President
Attest:
/s/ Robert Frier
...........................
Title: Vice President
-84-
<PAGE>
Exhibit 4.2
COMMON COMMON
INCORPORATED UNDER THE LAWS [IKON LOGO] THIS CERTIFICATE IS TRANSFERRABLE
OF THE IN CLEVELAND, OHIO OR IN
STATE OF OHIO NEW YORK, NEW YORK
SEE REVISE SIDE FOR CUSIP 451713 10 1
CERTAIN DEFINITIONS
NUMBER SHARES
CIK
IKON Office Solutions, Inc.
This certifies that ___________ is the owner of ____________ fully paid and
non-assessable shares of preferred stock, without par value, of IKON Office
Solutions, Inc., transferable on the books of the Corporation by the holder
hereof in person or by duly authorized attorney upon surrender of this
certificate properly endorsed. This certificate and the shares represented
hereby are issued and shall be held subject to all the provisions of the
Articles of Incorporation of the Corporation, as amended, to all of which the
holder by acceptance hereof assents. This certificate is not valid unless
countersigned and registered by the Transfer Agent and Registrar.
Witness the facsimile seal of the Corporation and the facsimile signatures
of its duly authorized officers.
Dated
Countersigned and registered:
NATIONAL CITY BANK
(CLEVELAND, OHIO) /s/ John E. Stuart
Transfer Agent Chairman and
and Registrar Chief Executive Officer
By
/s/ Karin M. Kinney
Authorized Signature Secretary
-1-
<PAGE>
[Back of the Common Stock Certificate]
IKON OFFICE SOLUTIONS, INC.
THE CORPORATION WILL MAIL TO THE HOLDER OF THE SHARES REPRESENTED BY THIS
CERTIFICATE, WITHOUT CHARGE WITHIN FIVE DAYS AFTER RECEIPT OF WRITTEN REQUEST
THEREFOR. A COPY OF THE EXPRESS TERMS OF THE SHARES REPRESENTED BY THIS
CERTIFICATE AND OF THE OTHER CLASS AND SERIES OF SHARES WHICH THE CORPORATION
IS AUTHORIZED TO ISSUE.
REPLACEMENT OF THIS CERTIFICATE
KEEP THIS CERTIFICATE IN A SAFE PLACE. IF IT IS LOST, STOLEN, MUTILATED OR
DESTROYED THE CORPORATION WILL REQUIRE THE STOCKHOLDER TO OBTAIN A BOND OF
INDEMNITY AS A CONDITION TO THE ISSUANCE OF A REPLACEMENT CERTIFICATE. THE
STOCKHOLDER WILL PAY ALL COSTS ASSOCIATED WITH THE ISSUANCE OF A REPLACEMENT
CERTIFICATE.
The following abbreviations, when used in the inscription on the face of
this certificate, shall be construed as though they were written out in full
according to applicable laws or regulations:
<TABLE>
<S> <C>
TEN COM -- as tenants in common UNIF GIFT MIN ACT -- _______ Custodian ________
TEN ENT -- as tenants by the entireties (Cust) (Minor)
JT TEN -- as joint tenants with right of under Uniform Gifts to
survivorship and not as tenants Minors Act _________
in common (state)
</TABLE>
Additional abbreviations may also be used though not in the above list.
For value received, _______________ hereby sell, assign and transfer unto
PLEASE INSERT SOCIAL SECURITY OR OTHER
IDENTIFYING NUMBER OF ASSIGNEE
- ------------------------------------------
- ------------------------------------------
________________________________________________________________________________
(PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS, INCLUDING ZIP COPE OF ASSIGNEE)
shares of the preferred stock represented by the within certificate, and do
hereby irrevocably constitute and appoint ____________________________________,
attorney to transfer the said stock on the books of the within-named Corporation
with full power of substitution in the premises.
Dated _______________ SIGNATURE(S) ________________________________________
________________________________________
NOTICE: THE SIGNATURE(S) TO THIS
ASSIGNMENT MUST CORRESPOND WITH THE
NAME(S) AS WRITTEN UPON THE FACE OF THE
CERTIFICATE IN EVERY PARTICULAR, WITHOUT
ALTERATION OR ENLARGEMENT OR ANY CHANGE
WHATEVER
SIGNATURE(S) GUARANTEED BY ________________________________________
THE SIGNATURE(S) SHOULD BE GUARANTEED BY
AN ELIGIBLE GUARANTOR INSTITUTION,
(Banks, Stockbrokers, Savings and Loan
Associations and Credit Unions) WITH
MEMBERSHIP IN AN APPROVED SIGNATURE
GUARANTEE MEDALLION PROGRAM PURSUANT TO
S.E.C. RULE 17Ad-15.
-2-
<PAGE>
Exhibit 4.3
PREFERRED PREFERRED
INCORPORATED UNDER THE LAWS [IKON LOGO] THIS CERTIFICATE IS
OF THE TRANSFERRABLE
STATE OF OHIO IN __________, __________OR IN
NEW YORK, NEW YORK
SEE REVISE SIDE FOR
CERTAIN DEFINITIONS
NUMBER ____ ____ SHARES
IKON OFFICE SOLUTIONS, INC.
This certifies that _____________ is the owner of ___________ fully
paid and non-assessable shares of preferred stock, without par value, of
IKON Office Solutions, Inc., transferable on the books of the Corporation
by the holder hereof in person or by duly authorized attorney upon
surrender of this certificate properly endorsed. This certificate and the
shares represented hereby are issued and shall be held subject to all the
provisions of the Articles of Incorporation of the Corporation, as amended,
to all of which the holder by acceptance hereof assents. This certificate
is not valid unless countersigned and registered by the Transfer Agent and
Registrar.
Witness the facsimile seal of the Corporation and the facsimile
signatures of its duly authorized officers.
Dated
Countersigned and registered:
___________________________
(________, _________)
Transfer Agent Chairman and
and Registrar Chief Executive Officer
By
Authorized Signature Secretary
-1-
<PAGE>
[Back of the Preferred Stock Certificate]
IKON OFFICE SOLUTIONS, INC.
THE CORPORATION WILL MAIL TO THE HOLDER OF THE SHARES REPRESENTED BY THIS
CERTIFICATE, WITHOUT CHARGE WITHIN FIVE DAYS AFTER RECEIPT OF WRITTEN REQUEST
THEREFOR. A COPY OF THE EXPRESS TERMS OF THE SHARES REPRESENTED BY THIS
CERTIFICATE AND OF THE OTHER CLASS AND SERIES OF SHARES WHICH THE CORPORATION IS
AUTHORIZED TO ISSUE.
REPLACEMENT OF THIS CERTIFICATE
KEEP THIS CERTIFICATE IN A SAFE PLACE. IF IT IS LOST, STOLEN, MUTILATED OR
DESTROYED THE CORPORATION WILL REQUIRE THE STOCKHOLDER TO OBTAIN A BOND OF
INDEMNITY AS A CONDITION TO THE ISSUANCE OF A REPLACEMENT CERTIFICATE. THE
STOCKHOLDER WILL PAY ALL COSTS ASSOCIATED WITH THE ISSUANCE OF A REPLACEMENT
CERTIFICATE.
The following abbreviations, when used in the inscription on the face of
this certificate, shall be construed as though they were written out in full
according to applicable laws or regulations:
<TABLE>
<S> <C>
TEN COM -- as tenants in common UNIF GIFT MIN ACT -- ____ Custodian ____
TEN ENT -- as tenants by the entireties (Cust) (Minor)
JT TEN -- as joint tenants with right of under Uniform Gifts to
survivorship and not as tenants Minors Act _________
in common (state)
</TABLE>
Additional abbreviations may also be used thought not in the above
list.
For value received, _______________ hereby sell, assign and transfer unto
______________ of the preferred stock represented by the within certificate, and
do hereby irrevocably constitute and appoint _____________, attorney to transfer
the said stock on the books of the within-named Corporation with full power of
substitution in the premises.
Dated _______________ SIGNATURE(S) _______________________________
SIGNATURE(S) GUARANTEED BY _______________________________
-2-
<PAGE>
Exhibit 5
[Letterhead of IKON Office Solutions, Inc.]
March 12, 1998
IKON Office Solutions, Inc.
P.O. Box 834
Valley Forge, Pennsylvania 19482
Ladies and Gentlemen:
I am General Counsel of IKON Office Solutions, Inc., an Ohio
corporation ("IKON"), and have acted as Counsel to IKON in connection with
IKON'S shelf registration under the Securities Act of 1933, as amended (the
"Act"), on Form S-3 (the "Registration Statement") of debt securities (the "Debt
Securities"), serial preferred stock (the "Preferred Stock"), depositary shares
representing fractional interests in shares of the Preferred Stock (the
"Depositary Shares") and common stock, no par value (the "Common Stock") to be
issued from time to time in an aggregate amount not to exceed $500,000,000. In
such connection, I have reviewed such documents and made such investigation as I
have deemed necessary under the circumstances to render the following opinion.
On the basis of such review and investigation, it is my opinion that:
(1) With respect to the Common Stock, when the Registration Statement
has become effective under the Act, the terms of the sale of the Common Stock
have been duly established in conformity with IKON's Articles of Incorporation,
and the Common Stock has been issued and sold as contemplated by the
Registration Statement, the Common Stock will be validly issued, fully paid and
nonassessable;
(2) With respect to the Preferred Stock, when the Registration
Statement has become effective under the Act, a Certificate of Amendment to the
Articles of Incorporation with respect to the Preferred Stock has been filed
with the Secretary of State of the State of Ohio, the terms of the Preferred
Stock and of their issue and sale have been duly
<PAGE>
established in conformity with IKON's Articles of Incorporation so as not to
violate any applicable law or result in a default under or breach of any
agreement or instrument binding upon IKON and so as to comply with any
requirement or restriction imposed by any court or governmental body having
jurisdiction over IKON, and the Preferred Stock has been duly issued and sold as
contemplated by the Registration Statement, the Preferred Stock will be validly
issued, fully paid and nonassessable, and any Common Stock issuable upon
conversion of the Preferred Stock, when duly issued upon conversion thereof,
will be validly issued, fully paid and nonassessable;
(3) With respect to the Depositary Shares, when the Registration
Statement has become effective under the Act, the Deposit Agreement relating to
the Depositary Shares has been duly authorized, executed and delivered, and the
Depositary Shares have been duly issued and sold as contemplated in the
Registration Statement, the Depositary Shares will be validly issued and will
entitle the holders thereof to the rights specified in the Depositary Shares and
in the Depositary Agreement, 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.
(4) With respect to the Debt Securities, when the Registration
Statement has become effective under the Act, the terms of the Debt Securities
and of their issuance and sale have been duly established in conformity with the
Indenture relating to the Debt Securities so as not to violate any applicable
law or result in a default under or breach of any agreement or instrument
binding upon IKON and so as to comply with any requirement or restriction
imposed by any court or governmental body having jurisdiction over IKON, and the
Debt Securities have been duly executed and authenticated in accordance with the
Indenture and issued and sold as contemplated in the Registration Statement, the
Debt Securities will constitute valid and legally binding obligations of IKON,
subject to 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 any Common
Stock issuable upon conversion of the Debt Securities, when duly issued upon
conversion
-2-
<PAGE>
thereof, will be validly issued, fully paid and nonassessable.
I hereby consent to the filing of this opinion as an exhibit to the
Registration Statement filed by IKON to effect such registration and the
reference to me therein under the heading "Validity of Securities." In giving
such consent, I do not thereby admit that I am in the category of persons whose
consent is required under Section 7 of the Act.
Sincerely,
/s/ William F. Drake
--------------------
(William F. Drake)
-3-
<PAGE>
EXHIBIT 12.1
IKON OFFICE SOLUTIONS, INC. AND SUBSIDIARIES
RATIO OF EARNINGS TO FIXED CHARGES
(dollars in thousands)
<TABLE>
<CAPTION>
Three Months Ended Fiscal Year Ended September 30
--------------------------------------------------
December 31, 1997 1997 1996 1995 1994 1993
----------------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Earnings
Income from continuing operations $ 36,984 $ 122,362 $ 164,893 $ 115,011 $ 1,996 $61,276
Add:
Loss from unconsolidated affiliate 117,158 2,538
Provision for income taxes 28,405 90,751 107,984 75,501 41,315 40,093
Fixed charges 54,679 192,021 127,970 82,672 60,481 49,524
----------------- -------- -------- -------- -------- --------
Earnings, as adjusted (A) $ 120,068 $ 405,134 $ 400,847 $ 273,184 $ 220,950 $153,431
================= ======== ======== ======== ======== ========
Fixed charges
Other interest expense, including
interest on capital leases $ 47,775 $ 146,117 $ 105,222 $ 61,888 $ 44,096 $ 39,044
Estimated interest component of
rental expense 6,904 27,203 22,748 20,784 16,385 10,480
Prepayment penalties on early
extinguishment of debt 18,701
----------------- -------- -------- -------- -------- --------
Total fixed charges (B) $ 54,679 $ 192,021 $ 127,970 $ 82,672 $ 60,481 $ 49,524
================= ======== ======== ======== ======== ========
Ratio of earnings to fixed charges
(A) divided by (B) 2.2 (1) 2.1 (2) 3.1 (3) 3.3 3.7 3.1
--- --- --- --- --- ---
</TABLE>
(1) Excluding the effect of transformation costs, the ratio of earnings to fixed
charges for the three months ended December 31, 1997 is 2.6.
(2) Excluding the effect of transformation costs, the ratio of earnings to fixed
charges for the fiscal year ended September 30, 1997 is 2.8.
(3) Excluding the effect of transformation costs, the ratio of earnings to fixed
charges for the fiscal year ended September 30, 1996 is 3.3.
<PAGE>
EXHIBIT 12.2
IKON OFFICE SOLUTIONS, INC. AND SUBSIDIARIES
RATIO OF EARNINGS TO FIXED CHARGES (EXCLUDING CAPTIVE FINANCE SUBSIDIARIES)
(dollars in thousands)
<TABLE>
<CAPTION>
Three Months Ended Fiscal Year Ended September 30
------------------------------------------------------
December 31, 1997 1997 1996 1995 1994 1993
------------------- --------- --------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Earnings
Income (loss) from continuing
operations $ 24,673 $ 85,897 $140,656 $100,539 $(11,351) $ 53,174
Add:
Loss from unconsolidated affiliate 117,158 2,538
Provision for income taxes 19,671 65,931 85,512 63,938 32,904 34,621
Fixed charges 23,931 92,738 59,514 42,138 32,389 25,707
------------------- -------- -------- -------- -------- --------
Earnings, as adjusted (A) $ 68,275 $244,566 $285,682 $206,615 $171,100 $116,040
=================== ======== ======== ======== ======== ========
Fixed charges
Other interest expense, including
interest on capital leases $ 17,029 $ 47,453 $ 37,179 $ 21,672 $ 16,118 $ 15,382
Estimated interest component of
rental expense 6,902 26,584 22,335 20,466 16,271 10,325
Prepayment penalties on early
extinguishment of debt 18,701
------------------- -------- -------- -------- -------- --------
Total fixed charges (B) $ 23,931 $ 92,738 $ 59,514 $ 42,138 $ 32,389 $ 25,707
=================== ======== ======== ======== ======== ========
Ratio of earnings to fixed charges
(A) divided by (B) 2.9 (1) 2.6 (2) 4.8 (3) 4.9 5.3 4.5
--- --- --- --- --- ---
</TABLE>
(1 Excluding the effect of transformation costs, the ratio of earnings to fixed
charges (excluding finance subsidiaries) for the three months ended December
31, 1997 is 3.7.
(2 Excluding the effects of the transformation costs, the ratio of earnings to
fixed charges (excluding finance subsidiaries) for the fiscal year ended
September 30, 1997 is 4.0.
(3 Excluding the effects of the transformation costs, the ratio of earnings to
fixed charges (excluding finance subsidiaries) for the fiscal year ended
September 30, 1996 is 5.2.
<PAGE>
EXHIBIT 12.3
IKON OFFICE SOLUTIONS, INC. AND SUBSIDIARIES
RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
(dollars in thousands)
<TABLE>
<CAPTION>
Three Months Ended Fiscal Year Ended September 30
-----------------------------------------------------------
December 31, 1997 1997 1996 1995 1994 1993
------------------ ------------ ---------- ---------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C>
Earnings
Income from continuing operations $ 36,984 $ 122,362 $ 164,893 $ 115,011 $ 1,996 $ 61,276
Add:
Loss from unconsolidated affiliate 117,158 2,538
Provision for income taxes 28,405 90,751 107,984 75,501 41,315 40,093
Fixed charges 54,679 192,021 127,970 82,672 60,481 49,524
----------------- --------- --------- --------- --------- ---------
Earnings, as adjusted (A) $ 120,068 $ 405,134 $ 400,847 $ 273,184 $ 220,950 $ 153,431
================= ========= ========= ========= ========= =========
Fixed charges
Other interest expense, including
interest on capital leases $ 47,775 $ 146,117 $ 105,222 $ 61,888 $ 44,096 $ 39,044
Estimated interest component of
rental expense 6,904 27,203 22,748 20,784 16,385 10,480
Prepayment penalties on early
extinguishment of debt 18,701
----------------- --------- --------- --------- --------- ---------
Total fixed charges 54,679 192,021 127,970 82,672 60,481 49,524
Preferred stock dividends, as adjusted 8,350 32,458 36,709 25,180 18,908 15,846
----------------- --------- --------- --------- --------- ---------
Total fixed charges and preferred
stock dividends (B) $ 63,029 $ 224,479 $ 164,679 $ 107,852 $ 79,389 $ 65,370
================= ========= ========= ========= ========= =========
Ratio of earnings to fixed charges
(A) divided by (B) 1.9 (1) 1.8 (2) 2.4 (3) 2.5 2.8 2.3
--- --- --- --- --- ---
</TABLE>
(1) Excluding the effect of transformation costs, the ratio of earnings to fixed
charges for the three months ended December 31, 1997 is 2.2.
(2) Excluding the effect of transformation costs, the ratio of earnings to fixed
charges for the fiscal year ended September 30, 1997 is 2.4.
(3) Excluding the effect of transformation costs, the ratio of earnings to fixed
charges for the fiscal year ended September 30, 1996 is 2.6.
<PAGE>
EXHIBIT 12.4
IKON OFFICE SOLUTIONS, INC. AND SUBSIDIARIES
RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
(EXCLUDING CAPTIVE FINANCE SUBSIDIARIES)
(dollars in thousands)
<TABLE>
<CAPTION>
Three Months Ended Fiscal Year Ended September 30
-------------------------------------------------------
December 31, 1997 1997 1996 1995 1994 1993
----------------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Earnings
Income from continuing operations$ $ 24,673 $ 85,897 $ 140,656 $ 100,539 $ (11,351) $ 53,174
Add:
Loss from unconsolidated affiliate 117,158 2,538
Provision for income taxes 19,671 65,931 85,512 63,938 32,904 34,621
Fixed charges 23,931 92,738 59,514 42,138 32,389 25,707
---------------- ------- -------- -------- -------- -------
Earnings, as adjusted (A) $ 68,275 $244,566 $ 285,682 $ 206,615 $ 171,100 $116,040
================ ======= ======== ======== ======== =======
Fixed charges
Other interest expense, including
interest on capital leases $ 17,029 $ 47,453 $ 37,179 $ 21,672 $ 16,118 $ 15,382
Estimated interest component of
rental expense 6,902 26,584 22,335 20,466 16,271 10,325
Prepayment penalties on early
extinguishment of debt 18,701
---------------- ------- -------- -------- -------- -------
Total fixed charges 23,931 92,738 59,514 42,138 32,389 25,707
Preferred stock dividends, as adjusted 8,350 32,351 35,768 24,892 18,908 15,794
---------------- ------- -------- -------- -------- -------
Total fixed charges and preferred
stock dividends (B) $ 32,281 $125,089 $ 95,282 $ 67,030 $ 51,297 $ 41,501
================ ======= ======== ======== ======== =======
Ratio of earnings to fixed charges
(A) divided by (B) 2.1 (1) 2.0 (2) 3.0 (3) 3.1 3.3 2.8
--- --- --- --- --- ---
</TABLE>
(1) Excluding the effect of transformation costs, the ratio of earnings to
fixed charges for the three months ended December 31, 1997 is 2.7.
(2) Excluding the effect of transformation costs, the ratio of earnings to
fixed charges for the fiscal year ended September 30, 1997 is 3.0.
(3) Excluding the effect of transformation costs, the ratio of earnings to
fixed charges for the fiscal year ended September 30, 1996 is 3.2.
<PAGE>
Exhibit 23
Consent of Ernst & Young LLP, Independent Auditors
We consent to the reference to our firm under the caption "Experts" in the
Registration Statement (Form S-3) and related Prospectus of IKON Office
Solutions, Inc. dated March 12, 1998 and to the incorporation by reference
therein of our report dated October 15, 1997 (except for Note 8, as to which the
date is October 27, 1997), with respect to the consolidated financial statements
and schedules of IKON Office Solutions, Inc. included in its Annual Report (Form
10-K) for the year ended September 30, 1997, filed with the Securities Exchange
Commission.
Philadelphia, Pennsylvania
March 11, 1998
<PAGE>
Exhibit 24
POWER OF ATTORNEY
-----------------
The undersigned certifies that he is a Director of IKON Office Solutions,
Inc. ("IKON").
The undersigned hereby appoints each of William F. Drake, Jr., Karin M.
Kinney and Michael J. Dillon as his attorneys-in-fact, each with the power of
substitution, to execute, on his behalf, the foregoing registration statement on
Form S-3, and any and all amendments thereto, for filing with the Securities and
Exchange Commission ("SEC"), and to do all such other acts and execute all such
other documents which said attorney may deem necessary or desirable.
Dated this 12th day of March, 1998.
/s/ John E. Stuart
---------------------------------------------
John E. Stuart
<PAGE>
POWER OF ATTORNEY
-----------------
The undersigned certifies that he is a Director of IKON Office Solutions,
Inc. ("IKON").
The undersigned hereby appoints each of William F. Drake, Jr., Karin M.
Kinney and Michael J. Dillon as his attorneys-in-fact, each with the power of
substitution, to execute, on his behalf, the foregoing registration statement on
Form S-3, and any and all amendments thereto, for filing with the Securities and
Exchange Commission ("SEC"), and to do all such other acts and execute all such
other documents which said attorney may deem necessary or desirable.
Dated this 12th day of March, 1998.
/s/ Kurt E. Dinkelacker
---------------------------------------------
Kurt E. Dinkelacker
<PAGE>
POWER OF ATTORNEY
-----------------
The undersigned certifies that he is a Director of IKON Office Solutions,
Inc. ("IKON").
The undersigned hereby appoints each of William F. Drake, Jr., Karin M.
Kinney and Michael J. Dillon as his attorneys-in-fact, each with the power of
substitution, to execute, on his behalf, the foregoing registration statement on
Form S-3, and any and all amendments thereto, for filing with the Securities and
Exchange Commission ("SEC"), and to do all such other acts and execute all such
other documents which said attorney may deem necessary or desirable.
Dated this 12th day of March, 1998.
/s/ James R. Birle
---------------------------------------------
James R. Birle
<PAGE>
POWER OF ATTORNEY
-----------------
The undersigned certifies that he is a Director of IKON Office Solutions,
Inc. ("IKON").
The undersigned hereby appoints each of William F. Drake, Jr., Karin M.
Kinney and Michael J. Dillon as his attorneys-in-fact, each with the power of
substitution, to execute, on his behalf, the foregoing registration statement on
Form S-3, and any and all amendments thereto, for filing with the Securities and
Exchange Commission ("SEC"), and to do all such other acts and execute all such
other documents which said attorney may deem necessary or desirable.
Dated this 12th day of March, 1998.
/s/ Philip E. Cushing
---------------------------------------------
Philip E. Cushing
<PAGE>
POWER OF ATTORNEY
-----------------
The undersigned certifies that he is a Director of IKON Office Solutions,
Inc. ("IKON").
The undersigned hereby appoints each of Karin M. Kinney and Michael J.
Dillon as his attorneys-in-fact, each with the power of substitution, to
execute, on his behalf, the foregoing registration statement on Form S-3, and
any and all amendments thereto, for filing with the Securities and Exchange
Commission ("SEC"), and to do all such other acts and execute all such other
documents which said attorney may deem necessary or desirable.
Dated this 12th day of March, 1998.
/s/ William F. Drake, Jr.
---------------------------------------------
William F. Drake, Jr.
<PAGE>
POWER OF ATTORNEY
-----------------
The undersigned certifies that he is a Director of IKON Office Solutions,
Inc. ("IKON").
The undersigned hereby appoints each of William F. Drake, Jr., Karin M.
Kinney and Michael J. Dillon as his attorneys-in-fact, each with the power of
substitution, to execute, on his behalf, the foregoing registration statement on
Form S-3, and any and all amendments thereto, for filing with the Securities and
Exchange Commission ("SEC"), and to do all such other acts and execute all such
other documents which said attorney may deem necessary or desirable.
Dated this 12th day of March, 1998.
/s/ Frederick S. Hammer
---------------------------------------------
Frederick S. Hammer
<PAGE>
POWER OF ATTORNEY
-----------------
The undersigned certifies that he is a Director of IKON Office Solutions,
Inc. ("IKON").
The undersigned hereby appoints each of William F. Drake, Jr., Karin M.
Kinney and Michael J. Dillon as his attorneys-in-fact, each with the power of
substitution, to execute, on his behalf, the foregoing registration statement on
Form S-3, and any and all amendments thereto, for filing with the Securities and
Exchange Commission ("SEC"), and to do all such other acts and execute all such
other documents which said attorney may deem necessary or desirable.
Dated this 12th day of March, 1998.
/s/ Barbara Barnes Hauptfuhrer
--------------------------------------------
Barbara Barnes Hauptfuhrer
<PAGE>
POWER OF ATTORNEY
-----------------
The undersigned certifies that he is a Director of IKON Office Solutions,
Inc. ("IKON").
The undersigned hereby appoints each of William F. Drake, Jr., Karin M.
Kinney and Michael J. Dillon as his attorneys-in-fact, each with the power of
substitution, to execute, on his behalf, the foregoing registration statement on
Form S-3, and any and all amendments thereto, for filing with the Securities and
Exchange Commission ("SEC"), and to do all such other acts and execute all such
other documents which said attorney may deem necessary or desirable.
Dated this 12th day of March, 1998.
/s/ Richard A. Jalkut
---------------------------------------------
Richard A. Jalkut
<PAGE>
CERTIFICATION
I, Karin M. Kinney, Secretary of IKON Office Solutions, Inc. do hereby
certify that the following resolutions were duly passed by the Board of
Directors of IKON Office Solutions, Inc. (the "Corporation") on November 6,
1997, and that such resolutions are, as of the date hereof, in full force and
effect:
RESOLVED, that each of the officers and directors of the Corporation
is hereby authorized to appoint William F. Drake, Jr., Karin M. Kinney and
Michael J. Dillon as his or her attorneys-in-fact on behalf of each of them,
each attorney-in-fact with the power of substitution, to execute on such
officer's or director's behalf, one or more registration statements and annual
reports of the Corporation for filing with the Securities and Exchange
Commission ("SEC"), and any and all amendments to said documents which said
attorney may deem necessary or desirable to enable the Corporation to register
the offering of (i) serial preferred stock; (ii) common stock; (iii) debt
securities; and/or (iv) participation interests in employee benefit plans under
the federal securities laws, and to further enable the corporation to file such
reports as are necessary under Section 13 or 15(d) of the Securities Exchange
Act of 1934 and such other documents as are necessary to comply with all rules,
regulations or requirements of the SEC in respect thereto; and
FURTHER RESOLVED, that any officer of the corporation is hereby
authorized to do and perform, or cause to be done or performed, any and all
things and to execute and deliver any and all agreements, certificates,
undertakings, documents or instruments necessary or appropriate in order to
carry out the purpose and intent of the foregoing resolutions, it to be
conclusively presumed from the taking of any such action or execution of any
such document that it has been authorized hereby.
IN WITNESS WHEREOF, I have hereunto set my hand this 12th day of March,
1998.
/s/ Karin M. Kinney
---------------------------------------------
Karin M. Kinney
<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) ___
_________________________
FIRST UNION NATIONAL BANK
(Name of Trustee)
22-1147033
(Jurisdiction of Incorporation or (I.R.S. Employer
Organization if not a U.S. National Bank) Identification No.)
102 PENNSYLVANIA AVENUE, AVONDALE, PA. 19311
(Address of Principal Executive Offices) (Zip Code)
_________________________
IKON OFFICE SOLUTIONS, INC.
(Name of Obligor)
OHIO 23-0334400
(State of Incorporation) (I.R.S. Employer
Identification No.)
P.O. BOX 834, VALLEY FORGE, PA 19482
(Address of Principal Executive Offices) (Zip Code)
_________________________
DEBT SECURITIES
(Title of Indenture Securities)
<PAGE>
GENERAL
ITEM 1. GENERAL INFORMATION.
Furnish the following information as to the trustee:
(A) NAME AND ADDRESS OF EACH EXAMINING OR SUPERVISORY AUTHORITY TO WHICH
IT IS SUBJECT:
Comptroller of the Currency, Washington, D.C.
Board of Governors of the Federal Reserve System, New York, N.Y.
Federal Deposit Insurance Corporation, Washington, D.C.
(B) WHETHER IT IS AUTHORIZED TO EXERCISE CORPORATE TRUST POWERS.
The Trustee is authorized to exercise corporate trust powers.
ITEM 2. AFFILIATIONS WITH OBLIGOR.
IF THE OBLIGOR IS AN AFFILIATE OF THE TRUSTEE, DESCRIBE EACH SUCH
AFFILIATION.
None.
ITEM 3. VOTING SECURITIES OF THE TRUSTEE.
FURNISH THE FOLLOWING INFORMATION AS TO EACH CLASS OF VOTING SECURITIES OF
THE TRUSTEE:
COL. A COL. B
------ ------
TITLE OF CLASS AMOUNT OUTSTANDING
Not Applicable
ITEM 4. TRUSTEESHIP UNDER OTHER INDENTURES:
IF THE TRUSTEE IS A TRUSTEE UNDER ANOTHER INDENTURE UNDER WHICH ANY OTHER
SECURITIES, OR CERTIFICATES OF INTEREST OR PARTICIPATION IN ANY OTHER
SECURITIES, OF THE OBLIGOR ARE OUTSTANDING, FURNISH THE FOLLOWING INFORMATION:
(A) TITLE OF THE SECURITIES OUTSTANDING UNDER EACH SUCH OTHER INDENTURE.
Not Applicable
(B) A BRIEF STATEMENT OF THE FACTS RELIED UPON AS A BASIS FOR THE CLAIM
THAT NO CONFLICTING INTEREST WITHIN THE MEANING OF SECTION 310(B)(1) OF THE ACT
ARISES AS A RESULT OF THE TRUSTEESHIP UNDER ANY SUCH OTHER INDENTURE, INCLUDING
A STATEMENT AS TO HOW THE INDENTURE SECURITIES WILL RANK AS COMPARED WITH THE
SECURITIES ISSUED UNDER SUCH OTHER INDENTURE.
Not Applicable.
ITEM 5. INTERLOCKING DIRECTORATES AND SIMILAR RELATIONSHIPS WITH THE OBLIGOR OR
UNDERWRITERS.
IF THE TRUSTEE OR ANY OF THE DIRECTORS OR EXECUTIVE OFFICERS OF THE TRUSTEE
IS A DIRECTOR, OFFICER, PARTNER, EMPLOYEE, APPOINTEE, OR REPRESENTATIVE OF THE
OBLIGOR OR OF ANY UNDERWRITER FOR THE OBLIGOR, IDENTIFY EACH SUCH PERSON HAVING
ANY SUCH CONNECTION AND STATE THE NATURE OF EACH SUCH CONNECTION.
Not Applicable
<PAGE>
ITEM 6. VOTING SECURITIES OF THE TRUSTEE OWNED BY THE OBLIGOR OR ITS OFFICIALS.
FURNISH THE FOLLOWING INFORMATION AS TO THE VOTING SECURITIES OF THE
TRUSTEE OWNED BENEFICIALLY BY THE OBLIGOR AND EACH DIRECTOR, PARTNER AND
EXECUTIVE OFFICER OF THE OBLIGOR.
COL. A COL. B COL. C COL. D.
------ ------ ------ -------
Percentage of Voting
Amount owned securities represented
Name of Owner Title of Class beneficially by amount given in Col. C
Not Applicable
ITEM 7. VOTING SECURITIES OF THE TRUSTEE OWNED BY UNDERWRITERS OR THEIR
OFFICIALS.
FURNISH THE FOLLOWING INFORMATION AS TO THE VOTING SECURITIES OF THE
TRUSTEE OWNED BENEFICIALLY BY EACH UNDERWRITER FOR THE OBLIGOR AND EACH
DIRECTOR, PARTNER, AND EXECUTIVE OFFICER OF EACH SUCH UNDERWRITER.
________________________________________________________________________________
________________________________________________________________________________
COL. A COL. B COL. C COL. D.
- ------ ------ ------ -------
Percentage of Voting
Amount owned securities represented
Name of Owner Title of Class beneficially by amount given in Col. C
Not Applicable
ITEM 8. SECURITIES OF THE OBLIGOR OWNED OR HELD BY THE TRUSTEE.
FURNISH THE FOLLOWING INFORMATION AS TO SECURITIES OF THE OBLIGOR OWNED
BENEFICIALLY OR HELD AS COLLATERAL SECURITY FOR THE OBLIGATIONS IN DEFAULT BY
THE TRUSTEE.
________________________________________________________________________________
<TABLE>
<CAPTION>
COL. A COL. B COL. C COL. D.
- ------ ------ ------ ------
<S> <C> <C> <C>
Name of issuer Whether the Amount owned beneficially Percent of class
and title of class securities are or held as collateral represented by
voting or not security for obligations in amount given in
default by Trustee Col. C.
</TABLE>
Not Applicable
ITEM 9. SECURITIES OF THE UNDERWRITERS OWNED OR HELD BY THE TRUSTEE.
IF THE TRUSTEE OWNS BENEFICIALLY OR HOLDS AS COLLATERAL SECURITY FOR
OBLIGATIONS IN DEFAULT ANY SECURITIES OF AN UNDERWRITER FOR THE OBLIGOR, FURNISH
THE FOLLOWING INFORMATION AS TO EACH CLASS OF SECURITIES OF SUCH UNDERWRITER ANY
OF WHICH ARE SO OWNED OR HELD BY THE TRUSTEE.
2
<PAGE>
- --------------------------------------------------------------------------------
COL. A. COL. B. COL. C. COL. D.
- --------------------------------------------------------------------------------
AMOUNT OWNED BENEFICIALLY PERCENT OF CLASS
NAME OF OR HELD AS COLLATERAL REPRESENTED BY
ISSUER AND AMOUNT SECURITY FOR OBLIGATIONS AMOUNT GIVEN IN
TITLE OF CLASS OUTSTANDING IN DEFAULT BY TRUSTEE COL. C.
- --------------------------------------------------------------------------------
Not applicable
ITEM 10. OWNERSHIP OR HOLDINGS BY THE TRUSTEE OF VOTING SECURITIES OF CERTAIN
AFFILIATES OR SECURITY HOLDERS OF THE OBLIGOR.
IF THE TRUSTEE OWNS BENEFICIALLY OR HOLDS AS COLLATERAL SECURITY FOR
OBLIGATIONS IN DEFAULT VOTING SECURITIES OF A PERSON WHO, TO THE KNOWLEDGE OF
THE TRUSTEE (1) OWNS 10 PERCENT OR MORE OF THE VOTING SECURITIES OF THE OBLIGOR
OR (2) IS AN AFFILIATE, OTHER THAN A SUBSIDIARY, OF THE OBLIGOR, FURNISH THE
FOLLOWING INFORMATION AS TO THE VOTING SECURITIES OF SUCH PERSON.
- --------------------------------------------------------------------------------
COL. A. COL. B. COL. C. COL. D.
- --------------------------------------------------------------------------------
AMOUNT OWNED BENEFICIALLY PERCENT OF VOTING
NAME OF OR HELD AS COLLATERAL SECURITIES
ISSUER AND AMOUNT SECURITY FOR OBLIGATIONS REPRESENTED BY AMOUNT
TITLE OF CLASS OUTSTANDING IN DEFAULT BY TRUSTEE GIVEN IN COL. C.
________________________________________________________________________________
Not Applicable
ITEM 11. OWNERSHIP OR HOLDINGS BY THE TRUSTEE OF ANY SECURITIES OF A PERSON
OWNING 50 PERCENT OR MORE OF THE VOTING SECURITIES OF THE OBLIGOR.
IF THE TRUSTEE OWNS BENEFICIALLY OR HOLDS AS COLLATERAL SECURITY FOR
OBLIGATIONS IN DEFAULT ANY SECURITIES OF A PERSON WHO, TO THE KNOWLEDGE OF THE
TRUSTEE, OWNS 50 PERCENT OR MORE OF THE VOTING SECURITIES OF THE OBLIGOR,
FURNISH THE FOLLOWING INFORMATION AS TO EACH CLASS OF SECURITIES OF SUCH PERSON
ANY OF WHICH ARE SO OWNED OR HELD BY THE TRUSTEE.
- --------------------------------------------------------------------------------
COL. A. COL. B. COL. C. COL. D.
- --------------------------------------------------------------------------------
AMOUNT OWNED BENEFICIALLY PERCENT OF CLASS
NAME OF OR HELD AS COLLATERAL REPRESENTED BY
ISSUER AND AMOUNT SECURITY FOR OBLIGATIONS AMOUNT GIVEN IN
TITLE OF CLASS OUTSTANDING IN DEFAULT BY TRUSTEE COL. C.
________________________________________________________________________________
Not Applicable
ITEM 12. INDEBTEDNESS OF THE OBLIGOR TO THE TRUSTEE.
EXCEPT AS NOTED IN THE INSTRUCTIONS, IF THE OBLIGOR IS INDEBTED TO THE
TRUSTEE, FURNISH THE FOLLOWING INFORMATION:
- --------------------------------------------------------------------------------
COL. A. COL. B. COL. C.
- --------------------------------------------------------------------------------
NATURE OF INDEBTEDNESS AMOUNT OUTSTANDING DATE DUE
- --------------------------------------------------------------------------------
Not Applicable
3
<PAGE>
ITEM 13. DEFAULTS BY THE OBLIGOR.
(A) STATE WHETHER THERE IS OR HAS BEEN A DEFAULT WITH RESPECT TO THE
SECURITIES UNDER THIS INDENTURE. EXPLAIN THE NATURE OF ANY SUCH DEFAULT.
None
(B) IF THE TRUSTEE IS A TRUSTEE UNDER ANOTHER INDENTURE UNDER WHICH ANY
OTHER SECURITIES, OR CERTIFICATES OF INTEREST OR PARTICIPATION IN ANY OTHER
SECURITIES, OF THE OBLIGOR ARE OUTSTANDING, OR IS TRUSTEE FOR MORE THAN ONE
OUTSTANDING SERIES OF SECURITIES UNDER THE INDENTURE, STATE WHETHER THERE HAS
BEEN DEFAULT UNDER ANY SUCH INDENTURE OR SERIES, IDENTIFY THE INDENTURE OR
SERIES AFFECTED, AND EXPLAIN THE NATURE OF ANY SUCH DEFAULT.
None
ITEM 14. AFFILIATIONS WITH THE UNDERWRITERS.
IF ANY UNDERWRITER IS AN AFFILIATE OF THE TRUSTEE, DESCRIBE EACH SUCH
AFFILIATION.
Not Applicable
ITEM 15. FOREIGN TRUSTEE.
IDENTIFY THE ORDER OR RULE PURSUANT TO WHICH THE FOREIGN TRUSTEE IS
AUTHORIZED TO ACT AS SOLE TRUSTEE UNDER INDENTURES QUALIFIED OR TO BE QUALIFIED
UNDER THE ACT.
Not Applicable
ITEM 16. LISTS OF EXHIBITS.
1* -COPY OF ARTICLES OF ASSOCIATION OF THE TRUSTEE AS NOW IN EFFECT.
2 -NO CERTIFICATE OF AUTHORITY OF THE TRUSTEE TO COMMENCE BUSINESS IS
FURNISHED SINCE THIS AUTHORITY IS CONTAINED IN THE ARTICLES OF
ASSOCIATION OF THE TRUSTEE.
3* -COPY OF THE AUTHORIZATION OF THE TRUSTEE TO EXERCISE CORPORATE TRUST
POWERS.
4* -COPY OF THE EXISTING BY-LAWS OF THE TRUSTEE, AS NOW IN EFFECT.
5 -NOT APPLICABLE.
6 -THE CONSENT OF THE TRUSTEE REQUIRED BY SECTION 321 (B) OF THE ACT.
7 -A COPY OF THE LATEST REPORT OF CONDITION OF THE TRUSTEE PUBLISHED
PURSUANT TO THE LAW OR THE REQUIREMENTS OF ITS SUPERVISING OR
EXAMINING AUTHORITY.
8 -NOT APPLICABLE
9 -NOT APPLICABLE
________________
*EXHIBITS THUS DESIGNATED HAVE HERETOFORE BEEN FILED WITH THE SECURITIES AND
EXCHANGE COMMISSION, HAVE NOT BEEN AMENDED SINCE FILING AND ARE INCORPORATED
HEREIN BY REFERENCE (SEE EXHIBIT T-1 REGISTRATION NUMBER 333-43241).
IN ANSWERING ANY ITEM IN THIS STATEMENT OF ELIGIBILITY AND QUALIFICATION
WHICH RELATES TO MATTERS PECULIARLY WITHIN THE KNOWLEDGE OF THE OBLIGOR OR OF
ITS DIRECTORS OR OFFICERS, OR AN UNDERWRITER FOR THE OBLIGOR, THE UNDERSIGNED,
FIRST UNION NATIONAL BANK, HAS RELIED UPON INFORMATION FURNISHED TO IT BY THE
OBLIGOR OR SUCH UNDERWRITER.
4
<PAGE>
SIGNATURE
PURSUANT TO THE REQUIREMENTS OF THE TRUST INDENTURE ACT OF 1939 THE
TRUSTEE, FIRST UNION NATIONAL BANK, A NATIONAL BANKING ASSOCIATION ORGANIZED AND
EXISTING UNDER THE LAWS OF THE UNITED STATES, HAS DULY CAUSED THIS STATEMENT OF
ELIGIBILITY TO BE SIGNED ON ITS BEHALF BY THE UNDERSIGNED, THEREUNTO DULY
AUTHORIZED, ALL IN THE CITY OF NEWARK, AND STATE OF NEW JERSEY, ON THE 9TH DAY
OF MARCH, 1998.
FIRST UNION NATIONAL BANK
(TRUSTEE)
(CORPORATE SEAL)
BY: /S/ RICK BARNES
------------------------------
ASSISTANT VICE PRESIDENT
5
<PAGE>
EXHIBIT T-6
CONSENT OF TRUSTEE
PURSUANT TO THE REQUIREMENTS OF SECTION 321 (B) OF THE TRUST INDENTURE ACT
OF 1939, AND IN CONNECTION WITH THE PROPOSED ISSUE OF IKON OFFICE SOLUTIONS,
INC., WE HEREBY CONSENT THAT REPORTS OF EXAMINATIONS BY FEDERAL, STATE,
TERRITORIAL OR DISTRICT AUTHORITIES MAY BE FURNISHED BY SUCH AUTHORITIES TO THE
SECURITIES AND EXCHANGE COMMISSION UPON REQUEST THEREFOR.
FIRST UNION NATIONAL BANK
BY: /S/ RICK BARNES
--------------------------------------------
ASSISTANT VICE PRESIDENT
NEWARK, NJ
MARCH 9, 1998
<PAGE>
EXHIBIT T-7
REPORT OF CONDITION
Consolidating domestic and foreign subsidiaries of the First Fidelity Bank,
National Association , at the close of business on December 31, 1997, published
in response to call made by Comptroller of the Currency, under title 12, United
States Code, Section 161. Charter Number 33869 Comptroller of the Currency
Northeastern District.
STATEMENT OF RESOURCES AND LIABILITIES
<TABLE>
<CAPTION>
ASSETS
Thousand of Dollars
-------------------
<S> <C>
Cash and balance due from depository institutions:
Noninterest-bearing balances and currency and coin................ 1,725,148
Interest-bearing balances......................................... 4,216,934
Securities......................................................... //////////
Hold-to-maturity securities....................................... 337,471
Available-for-sale securities..................................... 3,949,655
Federal funds sold and securities purchased under agreements........ 51,999
to resell.
Loans and lease financing receivables:
Loan and leases, net of unearned income....................... 15,757,193
LESS: Allowance for loan and lease losses..................... 196,929
LESS: Allocated transfer risk reserve......................... 0
Loans and leases, net of unearned income, allowance, and
reserve....................................................... 15,560,264
Assets held in trading accounts..................................... 0
Premises and fixed assets (including capitalized leases)............ 418,837
Other real estate owned............................................. 36,598
Investment in unconsolidated subsidiaries and associated
companies........................................................... 37,868
Customer's liability to this bank on acceptances outstanding........ 91,787
Intangible assets................................................... 382,749
Other assets........................................................ 1,043,467
Total assets........................................................ 27,852,777
LIABILITIES
Deposits:
In domestic offices........................................... 20,810,085
Noninterest-bearing......................................... 3,480,114
Interest-bearing............................................ 17,329,971
In foreign offices, Edge and Agreement subsidiaries,
and IBFs...................................................... 736,612
Noninterest-bearing......................................... 136
Interest-bearing............................................ 736,476
Federal funds purchased and securities sold under agreements
to repurchase ................................................ 2,581,021
Demand notes issued to the U.S. Treasury............................ 64,236
Trading liabilities................................................. 0
Other borrowed money (includes mortgage indebtness and obligations
under capitalized leases).
With original maturity of one year or less.................... 0
With original maturity of more than one year.................. 7,510
With original maturity of more than three years............... 5,777
Bank's liability on acceptances executed and outstanding............ 93,594
Subordinated notes and debentures................................... 450,000
Other liabilities................................................... 812,999
Total liabilities................................................... 25,561,834
Limited-life preferred stock and related surplus.................... 0
EQUITY CAPITAL
Perpetual preferred stock and related surplus....................... 160,540
Common Stock........................................................ 452,156
Surplus............................................................. 1,303,224
Undivided profits and capital reserves.............................. 342,689
Net unrealized holding gains (losses) on available-for-sale......... //////////
securities......................................................... 32,334
Cumulative foreign currency translation adjustments................. 0
Total equity capital................................................ 2,290,943
Total liabilities, limited-life preferred stock and equity.......... //////////
capital........................................................... 27,852,777
</TABLE>
ikon
