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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) December 9, 1997
GTE NORTH INCORPORATED
(Exact name of registrant as specified in its charter)
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<S> <C> <C>
Wisconsin 0-1210 35-1869961
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification No.)
incorporation)
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600 Hidden Ridge, HQE04B12 - Irving, Texas 75038
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code 972-718-5600
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GTE NORTH INCORPORATED
FORM 8-K
ITEM OF INFORMATION
ITEM 7. Financial Statements and Exhibits
(c) Exhibits
1.1 - Revised Form of Purchase Agreement, including Standard Purchase
Agreement Provisions (December 1997 Edition), pertaining to
Registration Statement on Form S-3 (File No. 333-02013) (to be first
used on or about December 11, 1997).
4.4 - Form of New Debenture pertaining to Registration Statement on Form S-3
(File No. 333-02013) (to be first used on or about December 11, 1997).
26.1 - Revised Form of Invitation for Bids pertaining to Registration
Statement on Form S-3 (File No. 333-02013).
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
GTE NORTH INCORPORATED
(Registrant)
Date: December 9, 1997 BY GREGORY D. JACOBSON
GREGORY D. JACOBSON
Treasurer
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Exhibit 1.1
GTE NORTH INCORPORATED
PURCHASE AGREEMENT
GTE North Incorporated, a Wisconsin corporation (the "Company"),
proposes to issue and sell $___,000,000 aggregate principal amount of its ___%
Debentures, Series _, Due ____ (the "New Debentures"). Subject to the terms and
conditions set forth or incorporated by reference herein, the Company agrees to
sell and the purchaser or purchasers named in Schedule A attached hereto (the
"Purchasers") agree to purchase the New Debentures at __% of their principal
amount, plus accrued interest from ______________ to the date of payment for the
New Debentures and delivery thereof. Interest on the New Debentures will be
payable semi-annually on ___________ and ___________, commencing _________. The
New Debentures will be reoffered to the public at ____% of their principal
amount.
All the provisions contained in the Company's Standard Purchase
Agreement Provisions (December 1997 Edition) (the "Standard Purchase Agreement
Provisions") annexed hereto shall be deemed to be a part of this Purchase
Agreement to the same extent as if such provisions had been set forth in full
herein.
REDEMPTION PROVISIONS:
[The New Debentures will not be redeemable prior to maturity.]
OR
[The New Debentures will not be redeemable prior to _____.
Thereafter, the New Debentures will be redeemable on not less than 30 nor more
than 60 days notice given as provided in the Indenture, as a whole or in part,
at the option of the Company at the redemption price set forth below. The
"initial regular redemption price" will be the initial public offering price as
defined below plus the rate of interest on the New Debentures. The redemption
price during the twelve month period beginning ________ and during the twelve
month periods beginning on each ____________ thereafter through the twelve month
period ended ____________ will be determined by reducing the initial regular
redemption price by an amount determined by multiplying (a) 1/_ of the amount by
which such initial regular redemption price exceeds 100% by (b) the number of
such full twelve month periods which shall have elapsed between ___________ and
the date fixed for redemption; and thereafter the redemption prices during the
twelve month periods beginning ____________ shall be 100%; provided, however,
that all such prices will be specified to the nearest 0.01% or if there is no
nearest 0.01%, then to the next higher 0.01%.
For the purpose of determining the redemption prices of the New
Debentures, the initial public offering price of the New Debentures shall be the
price, expressed in percentage of principal amount (exclusive of accrued
interest), at which the New Debentures are to be initially offered for sale to
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the public; if there is not a public offering of the New Debentures, the initial
public offering price of the New Debentures shall be deemed to be the price,
expressed in percentage of principal amount (exclusive of accrued interest), to
be paid to the Company by the Purchasers.]
CLOSING:
The Purchasers agree to pay for the New Debentures, at the option of
the Company, by certified or official bank check or checks or by wire transfer
in each case in same day funds, upon delivery of such New Debentures at 10:00
A.M. (New York City time) on _____________ (the "Closing Date") or at such other
time, not later than the seventh full business day thereafter, as shall be
agreed upon by the Company and the Purchasers or the firm or firms designated as
the representative or representatives, as the case may be, of the Purchasers
(the "Representative"). The Company shall advise the Representative not later
than the business day immediately preceding the Closing Date of its decision
whether to accept payment for the New Debentures by certified bank check or by
wire transfer and, if the Company chooses to accept payment by wire transfer,
the Company shall provide the Representative on such date immediately preceding
the Closing Date with the appropriate wire transfer instructions.
DENOMINATION OF THE NEW DEBENTURES:
[The New Debentures shall be in the form of temporary or definitive
fully-registered New Debentures in denominations of One Thousand Dollars
($1,000) or any integral multiple thereof, registered in such names as the
Purchasers or the Representative shall request not less than two business days
before the Closing Date. The Company agrees to make the New Debentures
available to the Purchasers or the Representative for inspection at the office
of The First National Bank of Chicago, Chicago, Illinois or The Depository Trust
Company, New York, New York, at least twenty-four hours prior to the time fixed
for the delivery of the New Debentures on the Closing Date.]
OR
[The New Debentures shall be in the form of one or more Global
Debentures which shall represent, and shall be denominated in an amount equal to
the aggregate principal amount of, the New Debentures and shall be registered in
the name of The Depository Trust Company or its nominee. The Company agrees to
make the New Debentures available to the Purchasers or the Representative for
inspection at the office of The First National Bank of Chicago, Chicago,
Illinois or The Depository Trust Company, New York, New York, at least twenty-
four hours prior to the time fixed for the delivery of the New Debentures on the
Closing Date.]
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RESALE:
[The Purchasers represent that they intend to resell the New
Debentures, and therefore the provisions applicable to Reselling Purchasers in
the Standard Purchase Agreement Provisions will be applicable.]
OR
[The Purchasers represent that they do not intend to resell the New
Debentures, and therefore the provisions applicable to Reselling Purchasers in
the Standard Purchase Agreement Provisions will not be applicable.]
In witness whereof, the parties have executed this Purchase Agreement
this _____ day of __________, _____.
[Names of Purchasers or
Representative]
By: ___________________________
Title:
GTE NORTH INCORPORATED
By: ___________________________
Vice President
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SCHEDULE A
The names of the Purchasers and the principal amount of New Debentures
which each respectively offers to purchase are as follows:
Principal
Amount
of New
Name Debentures
- ---- ____________
$___,000,000
______________
Total........................ $___,000,000
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GTE NORTH INCORPORATED
STANDARD PURCHASE AGREEMENT PROVISIONS
(December 1997 Edition)
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GTE North Incorporated, a Wisconsin corporation (the "Company"), may
enter into one or more purchase agreements providing for the sale of debentures
to the purchaser or purchasers named therein (the "Purchasers"). The standard
provisions set forth herein will be incorporated by reference in any such
purchase agreement ("Purchase Agreement"). The Purchase Agreement, including
these Standard Purchase Agreement Provisions incorporated therein by reference,
is hereinafter referred to as "this Agreement". Unless otherwise defined
herein, terms used in this Agreement that are defined in the Purchase Agreement
have the meanings set forth therein.
I. SALE OF THE DEBENTURES
The Company proposes to issue one or more series of debentures
pursuant to the provisions of an Indenture dated as of January 1, 1994, as
amended and supplemented by the First Supplemental Indenture dated as of May 1,
1996 (as amended and supplemented, the "Indenture"), between the Company and The
First National Bank of Chicago (the "Trustee"). In a supplemental indenture to
the Indenture, a resolution of the Board of Directors of the Company or an
officers' certificate pursuant to a supplemental indenture or board resolution
specifically authorizing each new series of debentures, the Company will
designate the title of each new series of debentures, and the aggregate
principal amount, date or dates of maturity, dates for payment and rate of
interest, redemption dates, prices, obligations and restrictions, if any, and
any other terms with respect to each such series.
The Company has filed with the Securities and Exchange Commission (the
"Commission") under the Securities Act of 1933, as amended (the "Act"),
registration statement No. 333-02013 relating to $600,000,000 of the Company's
debentures registered thereunder (the amount remaining unsold thereunder, from
time to time, is hereinafter referred to as the "Debentures"), including a
prospectus which relates to the Debentures, and has filed with, or transmitted
for filing to, the Commission (or will promptly after the sale so file or
transmit for filing) a prospectus supplement specifically relating to a
particular series of Debentures (such particular series being hereinafter
referred to as the "New Debentures") pursuant to Rule 424(b) under the Act
("Rule 424(b)"). The term "Registration Statement" means the registration
statement referred to herein, as amended to the date of the Purchase Agreement.
The term "Basic Prospectus" means the prospectus relating to the Debentures
included in the Registration Statement. The term "Prospectus" means the Basic
Prospectus together with the prospectus supplement specifically relating to the
New Debentures, as filed with, or transmitted for filing to, the Commission
pursuant to Rule 424(b). As used herein, the terms "Registration Statement",
"Basic Prospectus" and "Prospectus" shall include in each case the material, if
any, incorporated by reference therein.
II. PURCHASERS' REPRESENTATIONS AND RESALE
Each Purchaser represents and warrants that information furnished in
writing to the Company expressly for use with respect to the New Debentures will
not contain any untrue statement of a material fact and will not omit any
material fact in connection with such information necessary to make such
information not misleading.
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If the Purchasers advise the Company in the Purchase Agreement that
they intend to resell the New Debentures, the Company will assist the Purchasers
as hereinafter provided. The terms of any such resale will be set forth in the
Prospectus. The provisions of Paragraphs C and D of Article VI and Articles
VIII, IX and X of this Agreement apply only to Purchasers that have advised the
Company of their intention to resell the New Debentures ("Reselling
Purchasers"). All other provisions apply to any Purchaser including a Reselling
Purchaser.
III. CLOSING
The closing will be held at the office of GTE Service Corporation, 4th
Floor, One Stamford Forum, Stamford, Connecticut 06904 on the Closing Date.
Concurrent with the delivery of the New Debentures to the Purchasers or to the
Representative for the account of each Purchaser, payment of the full purchase
price of the New Debentures shall be made, at the option of the Company, by
certified or official bank check or checks in same day funds, payable to the
Company or its order, at The Bank of New York, Attention: Corporate Trust
Department, or by wire transfer in same day funds to The Bank of New York for
the account of the Company. Upon receipt of such check or wire transfer by The
Bank of New York, such check or wire transfer shall be deemed to be delivered at
the closing.
IV. CONDITIONS TO PURCHASERS' OBLIGATIONS
The respective obligations of the Purchasers hereunder are subject to
the following conditions:
(A) The Registration Statement shall have become effective and no
stop order suspending the effectiveness of the Registration Statement shall be
in effect, and no proceedings for such purpose shall be pending before or
threatened by the Commission; since the latest date as of which information is
given in the Registration Statement, there shall have been no material adverse
change in the business, business prospects, properties, financial condition or
results of operations of the Company; and the Purchasers or the Representative
shall have received on the Closing Date the customary form of compliance
certificate, dated the Closing Date and signed by the President or a Vice
President of the Company, including the foregoing. The officer executing such
certificate may rely upon the best of his or her knowledge as to proceedings
pending or threatened.
(B) At the Closing Date, there shall be in full force and effect an
order or orders, satisfactory to counsel for the Purchasers, of the Illinois
Commerce Commission, Indiana Utility Regulatory Commission, Public Utilities
Commission of Ohio and Pennsylvania Public Utility Commission, and of such other
regulatory authorities, if any, as may have jurisdiction over the issue and sale
of the New Debentures by the Company to the Purchasers, authorizing such issue
and sale as herein and in the Registration Statement provided, and none of such
orders shall contain any conditions inconsistent with the provisions of this
Agreement or of the Registration Statement.
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(C) The Purchasers or the Representative shall have received on the
Closing Date an opinion of Richard M. Cahill, Esq., Vice President-General
Counsel of the Company, or other counsel to the Company satisfactory to the
Purchasers and counsel to the Purchasers, dated the Closing Date, substantially
in the form set forth in Exhibit A hereto.
(D) The Purchasers or the Representative shall have received on the
Closing Date an opinion of Milbank, Tweed, Hadley & McCloy, counsel for the
Purchasers, dated the Closing Date, substantially in the form set forth in
Exhibit B hereto.
(E) The Purchasers or the Representative shall have received on the
Closing Date a letter from Arthur Andersen LLP, independent public accountants
for the Company, dated as of the Closing Date, to the effect set forth in
Exhibit C hereto.
V. CONDITIONS TO COMPANY'S OBLIGATIONS
The obligations of the Company hereunder are subject to the following
conditions:
(A) The Registration Statement shall have become effective and no
stop order suspending the effectiveness of the Registration Statement shall be
in effect, and no proceedings for such purpose shall be pending before or
threatened by the Commission.
(B) At the Closing Date, there shall be in full force and effect an
order or orders, satisfactory to the Company, of the Illinois Commerce
Commission, Indiana Utility Regulatory Commission, Public Utilities Commission
of Ohio and Pennsylvania Public Utility Commission, and of such other regulatory
authorities, if any, as may have jurisdiction over the issue and sale of the New
Debentures by the Company to the Purchasers.
(C) The Company shall have received on the Closing Date the full
purchase price of the New Debentures purchased hereunder.
VI. COVENANTS OF THE COMPANY
In further consideration of the agreements contained herein of the
Purchasers, the Company covenants to the several Purchasers as follows:
(A) To furnish to the Purchasers or the Representative a copy of the
Registration Statement including materials, if any, incorporated by reference
therein and, during the period mentioned in (C) below, to supply as many copies
of the Prospectus, any documents incorporated by reference therein and any
supplements and amendments thereto as the Purchasers or the Representative may
reasonably request. The terms "supplement" and "amendment" or "amend" as used
in this Agreement shall include all documents filed by the Company with the
Commission subsequent to the effective date of the Registration Statement, or
the date of the Basic Prospectus, as the case may be, pursuant to the Securities
Exchange Act of 1934, as amended (the "Exchange Act"), which are deemed to be
incorporated by reference therein.
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(B) Before amending or supplementing the Registration Statement or
the Prospectus with respect to the New Debentures, to furnish to any Purchaser
or the Representative, and to counsel for the Purchasers, a copy of each such
proposed amendment or supplement.
The covenants in Paragraphs (C) and (D) apply only to Reselling
Purchasers:
(C) If in the period after the first date of resale of the New
Debentures during which, in the opinion of counsel for the Reselling Purchasers,
the Prospectus is required by law to be delivered, any event shall occur as a
result of which it is necessary to amend or supplement the Prospectus in order
to make a statement therein, in light of the circumstances when the Prospectus
is delivered to a subsequent purchaser, not materially misleading, or if it is
otherwise necessary to amend or supplement the Prospectus to comply with law,
forthwith to prepare and furnish, at its own expense (unless such amendment
shall relate to information furnished by the Purchasers or the Representative by
or on behalf of the Purchasers in writing expressly for use in the Prospectus),
to the Reselling Purchasers, the number of copies requested by the Reselling
Purchasers or the Representative of either amendments or supplements to the
Prospectus so that the statements in the Prospectus as so amended or
supplemented will not, in light of the circumstances when the Prospectus is
delivered to a subsequent purchaser, be misleading or so that the Prospectus
will comply with law.
(D) To use its best efforts to qualify the New Debentures for offer
and sale under the securities or Blue Sky laws of such jurisdictions as the
Purchasers or the Representative shall reasonably request and to pay all
expenses (including fees and disbursements of counsel) in connection therewith;
provided, however, that the Company, in complying with the foregoing provisions
of this paragraph, shall not be required to qualify as a foreign company or to
register or qualify as a broker or dealer in securities in any jurisdiction or
to consent to service of process in any jurisdiction other than with respect to
claims arising out of the offering or sale of the New Debentures, and provided
further that the Company shall not be required to continue the qualification of
the New Debentures beyond one year from the date of the sale of the New
Debentures.
VII. REPRESENTATIONS AND WARRANTIES OF THE COMPANY
The Company represents and warrants to the several Purchasers that (i)
each document, if any, filed or to be filed pursuant to the Exchange Act and
incorporated by reference in the Basic Prospectus or the Prospectus complied or
will comply when so filed in all material respects with the Exchange Act and the
rules and regulations thereunder, (ii) each part of the Registration Statement
filed with the Commission pursuant to the Act relating to the New Debentures,
when such part became effective, did not contain any untrue statement of a
material fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein not misleading, (iii) on the effective
date of the Registration Statement, the date the Prospectus is filed pursuant to
Rule 424(b) and at all times subsequent to and including the Closing Date, the
Registration Statement and the Prospectus, as amended or supplemented, if
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applicable, complied or will comply in all material respects with the Act and
the applicable rules and regulations thereunder, (iv) on the effective date of
the Registration Statement, the Registration Statement did not contain, and as
amended or supplemented, if applicable, will not contain, any untrue statement
of a material fact or omit to state a material fact necessary in order to make
the statements therein not misleading, and on the date the Prospectus, or any
amendment or supplement thereto, is filed pursuant to Rule 424(b) and on the
Closing Date, the Prospectus will not contain any untrue statement of a material
fact or omit to state a material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not
misleading; except that these representations and warranties do not apply to
statements or omissions in the Registration Statement or the Prospectus based
upon information furnished to the Company by any Purchaser or the Representative
by or on behalf of any Purchaser in writing expressly for use therein or to
statements or omissions in the Statement of Eligibility of the Trustee under the
Indenture, (v) the consummation of any transaction herein contemplated will not
result in a breach of any of the terms of any agreement or instrument to which
the Company is a party, and (vi) the Indenture has been qualified under the
Trust Indenture Act of 1939, as amended.
VIII. INDEMNIFICATION
The Company agrees to indemnify and hold harmless each Reselling
Purchaser and each person, if any, who controls such Reselling Purchaser within
the meaning of either Section 15 of the Act or Section 20 of the Exchange Act,
from and against any and all losses, claims, damages and liabilities based upon
any untrue statement or alleged untrue statement of a material fact contained in
the Registration Statement, the Basic Prospectus or the Prospectus (if used
within the period set forth in Paragraph (C) of Article VI hereof, and as
amended or supplemented if the Company shall have furnished any amendments or
supplements thereto), or based upon any omission or alleged omission to state
therein a material fact required to be stated therein or necessary to make the
statements therein not misleading, except insofar as such losses, claims,
damages or liabilities are based upon any such untrue statement or omission or
alleged untrue statement or omission based upon information furnished to the
Company by any Reselling Purchaser or the Representative by or on behalf of any
Reselling Purchaser in writing expressly for use therein or by any statement or
omission in the Statement of Eligibility of the Trustee under the Indenture.
The foregoing agreement, insofar as it relates to the Prospectus, shall not
inure to the benefit of any Reselling Purchaser (or to the benefit of any person
controlling such Reselling Purchaser) on account of any losses, claims, damages
or liabilities arising from the sale of any New Debentures by said Reselling
Purchaser to any person if a copy of the Prospectus (as amended or supplemented,
if prior to distribution of the Prospectus to the Reselling Purchaser, the
Company shall have made any supplements or amendments which have been furnished
to said Reselling Purchaser) shall not have been sent or given by or on behalf
of such Reselling Purchaser to such person at or prior to the written
confirmation of the sale of the New Debentures to such person and such statement
or omission is cured in the Prospectus.
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Each Reselling Purchaser agrees to indemnify and hold harmless the
Company, its directors, its officers who sign the Registration Statement and any
person controlling the Company to the same extent as the foregoing indemnity
from the Company to each Reselling Purchaser, but only with reference to
information relating to said Reselling Purchaser furnished to the Company in
writing by the Reselling Purchaser or the Representative by or on behalf of said
Reselling Purchaser expressly for use in the Registration Statement or the
Prospectus.
In case any proceeding (including any governmental investigation)
shall be instituted involving any person in respect of which indemnity may be
sought pursuant to either of the two preceding paragraphs, such person (the
"indemnified party") shall promptly notify the person or persons against whom
such indemnity may be sought (the "indemnifying party") in writing and the
indemnifying party, upon request of the indemnified party, shall retain counsel
reasonably satisfactory to the indemnified party to represent the indemnified
party and any others the indemnifying party may designate in such proceeding
(provided, however, that if such indemnified party shall object to the selection
of counsel after having been advised by such counsel that there may be one or
more legal defenses available to the indemnified party which are different from
or additional to those available to the indemnifying party, the indemnifying
party shall designate other counsel reasonably satisfactory to the indemnified
party) and the indemnifying party shall pay the fees and disbursements of such
counsel related to such proceeding. In any such proceeding, any indemnified
party shall have the right to retain its own counsel, but the fees and expenses
of such counsel shall be at the expense of such indemnified party unless the
indemnifying party and the indemnified party shall have mutually agreed to the
retention of such counsel. The indemnifying party shall not be liable for any
settlement of any proceeding effected without its written consent but if settled
with such consent or if there be a final judgment for the plaintiff, the
indemnifying party agrees to indemnify the indemnified party from and against
any loss or liability by reason of such settlement or judgment.
If the indemnification provided for in this Article VIII is
unavailable to an indemnified party under the first or second paragraph hereof
or insufficient in respect of any losses, claims, damages or liabilities
referred to therein, then each indemnifying party, in lieu of indemnifying such
indemnified party shall contribute to the amount paid or payable by such
indemnified party as a result of such losses, claims, damages or liabilities (i)
in such proportion as is appropriate to reflect the relative benefits received
by the Company on the one hand and the Reselling Purchasers on the other from
the offering of the New Debentures or (ii) if the allocation provided by clause
(i) above is not permitted by applicable law, in such proportion as is
appropriate to reflect not only the relative benefits referred to in clause (i)
above but also the relative fault of the Company on the one hand and of the
Reselling Purchasers on the other in connection with the statement or omission
that resulted in such losses, claims, damages or liabilities, as well as any
other relevant equitable considerations. The relative benefits received by the
Company on the one hand and the Reselling Purchasers on the other in connection
with the offering of the New Debentures shall be deemed to be in the same
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proportion as the total net proceeds from the offering of the New Debentures
received by the Company bear to the total commissions, if any, received by all
of the Reselling Purchasers in respect thereof. If there are no commissions
allowed or paid by the Company to the Reselling Purchasers in respect of the New
Debentures, the relative benefits received by the Reselling Purchasers in the
preceding sentence shall be the difference between the price received by such
Reselling Purchasers upon resale of the New Debentures and the price paid for
the New Debentures pursuant to the Purchase Agreement. The relative fault of the
Company on the one hand and of the Reselling Purchasers on the other shall be
determined by reference to, among other things, whether the untrue or alleged
untrue statement of a material fact or the omission or alleged omission to state
a material fact relates to information supplied by the Company or by the
Reselling Purchasers and the parties' relative intent, knowledge, access to
information and opportunity to correct or prevent such statement or omission.
The amount paid or payable by an indemnified party as a result of the
losses, claims, damages and liabilities referred to in this Article VIII shall
be deemed to include, subject to the limitations set forth above, any legal or
other expenses reasonably incurred by such indemnified party in connection with
investigating or defending any such action or claim. No person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the Act)
shall be entitled to contribution from any person who was not guilty of such
fraudulent misrepresentation.
IX. SURVIVAL
The indemnity and contribution agreements contained in Article VIII
and the representations and warranties of the Company contained in Article VII
of this Agreement shall remain operative and in full force and effect regardless
of (i) any termination of this Agreement, (ii) any investigation made by any
Reselling Purchaser or on behalf of any Reselling Purchaser or any persons
controlling any Reselling Purchaser and (iii) acceptance of and payment for any
of the New Debentures.
X. TERMINATION BY RESELLING PURCHASERS
At any time prior to the Closing Date this Agreement shall be subject
to termination in the absolute discretion of the Reselling Purchasers, by notice
given to the Company, if (i) trading in securities generally on the New York
Stock Exchange shall have been suspended or materially limited, (ii) a general
moratorium on commercial banking activities in New York shall have been declared
by either Federal or New York State authorities, (iii) minimum prices shall have
been established on the New York Stock Exchange by Federal or New York State
authorities or (iv) any outbreak or material escalation of hostilities involving
the United States or declaration by the United States of a national emergency or
war or other calamity or crisis shall have occurred, the effect of any of which
is such as to make it impracticable or inadvisable to proceed with the delivery
of the New Debentures on the terms and in the manner contemplated by the
Prospectus.
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XI. TERMINATION BY PURCHASERS
If this Agreement shall be terminated by the Purchasers because of any
failure or refusal on the part of the Company to comply with the terms or to
fulfill any of the conditions of this Agreement, or if for any reason (other
than those set forth in Article V) the Company shall be unable to perform its
obligations under this Agreement, the Company will reimburse the Purchasers for
all out-of-pocket expenses (including the fees and disbursements of counsel)
reasonably incurred by such Purchasers in connection with the New Debentures.
Except as provided herein, the Purchasers shall bear all of their expenses,
including the fees and disbursements of counsel.
XII. SUBSTITUTION OF PURCHASERS
If for any reason any Purchaser shall not purchase the New Debentures
it has agreed to purchase hereunder, the remaining Purchasers shall have the
right within 24 hours to make arrangements satisfactory to the Company for the
purchase of such New Debentures hereunder. If they fail to do so, the amounts
of New Debentures that the remaining Purchasers are obligated, severally, to
purchase under this Agreement shall be increased in the proportions which the
total amount of New Debentures which they have respectively agreed to purchase
bears to the total amount of New Debentures which all non-defaulting Purchasers
have so agreed to purchase, or in such other proportions as the Purchasers may
specify to absorb such unpurchased New Debentures, provided that such aggregate
increases shall not exceed 10% of the total amount of the New Debentures set
forth in Schedule A to the Purchase Agreement. If any unpurchased New
Debentures still remain, the Company shall have the right either to elect to
consummate the sale except as to any such unpurchased New Debentures so
remaining or, within the next succeeding 24 hours, to make arrangements
satisfactory to the remaining Purchasers for the purchase of such New
Debentures. In any such cases, either the Purchasers or the Representative or
the Company shall have the right to postpone the Closing Date for not more than
seven business days to a mutually acceptable date. If the Company shall not
elect to so consummate the sale and any unpurchased New Debentures remain for
which no satisfactory substitute Purchaser is obtained in accordance with the
above provisions, then this Agreement shall terminate without liability on the
part of any non-defaulting Purchaser or the Company for the purchase or sale of
any New Debenture under this Agreement. No provision in this paragraph shall
relieve any defaulting Purchaser of liability to the Company for damages
occasioned by such default.
XIII. MISCELLANEOUS
This Agreement may be signed in any number of counterparts, each of
which shall be an original, with the same effect as if the signatures thereto
and hereto were upon the same instrument.
This Agreement shall be governed by and construed in accordance with the
substantive laws of the State of New York.
<PAGE>
Exhibit A
LETTERHEAD OF
RICHARD M. CAHILL
Vice President - General Counsel
_____________, 199_
and the other Purchasers named in
the Purchase Agreement dated ____________,
199_, between GTE North Incorporated
and such Purchasers
Re: GTE North Incorporated
___% Debentures, Series _, Due ____
Dear Sirs:
I have been requested by GTE North Incorporated, a Wisconsin
corporation (the "Company"), as its Vice President-General Counsel to furnish
you with my opinion pursuant to a Purchase Agreement dated ______, 199_ (the
"Agreement") between you and the Company, relating to the purchase and sale of
$___,000,000 aggregate principal amount of its ___% Debentures, Series _, Due
____ (the "New Debentures").
In this connection I have examined among other things:
(a) The Restated Articles of Incorporation of the Company, as
amended, and the By-laws of the Company, each as presently in effect;
(b) A copy of the Indenture dated as of January 1, 1994, as amended
and supplemented by the First Supplemental Indenture dated as of May 1, 1996 (as
amended and supplemented, the "Indenture"), between the Company and The First
National Bank of Chicago (the "Trustee"), under which the New Debentures are
being issued;
(c) [The Supplemental Indenture, dated as of ____, 199_ (the
"Supplemental Indenture") between the Company and the Trustee] [The resolutions
of the Board of Directors adopted _____, 199_ (the "Board Resolution")] [The
certificate, dated _____, 199_, of an authorized officer of the Company pursuant
to authorization from the Board of Directors of the Company (the "Officer's
Certificate")] specifically authorizing the New Debentures, including the
issuance and sale of the New Debentures;
(d) The form of the New Debentures set forth in the [Supplemental
Indenture] [Board Resolution] [Officer's Certificate];
(e) The records of the corporate proceedings of the Company relating
to the authorization, execution and delivery of the Indenture and the
[Supplemental Indenture] [Board Resolution] [Officer's Certificate];
<PAGE>
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(f) The records of the corporate proceedings of the Company relating
to the authorization, execution and delivery of the Agreement;
(g) The record of all proceedings taken by the Company relating to
the registration of the New Debentures under the Securities Act of 1933, as
amended (the "Act"), and qualification of the Indenture under the Trust
Indenture Act of 1939, as amended (the "TIA"), particularly Registration
Statement No. 333-02013, including the form of prospectus contained therein
(unless the context shall otherwise require, the Registration Statement as
amended is hereinafter called the "Registration Statement" and the prospectus
dated _________, together with the prospectus supplement dated __________
relating to the New Debentures in the form filed under Rule 424(b) of the Act,
are hereinafter called the "Prospectus");
(h) Statutes, permits and other documents relating to the Company's
franchises;
(i) The records of proceedings and orders issued by the Illinois
Commerce Commission, Indiana Utility Regulatory Commission, Public Utilities
Commission of Ohio and Pennsylvania Public Utility Commission authorizing the
issuance and sale of the New Debentures; and
(j) The Registration Statement, the Prospectus and all documents
filed by the Company under the Securities Exchange Act of 1934, as amended (the
"Exchange Act"), which are incorporated by reference in the Prospectus (the
"Incorporated Documents") .
On the basis of my examination of the foregoing and of such other
documents and matters as I have deemed necessary as the basis for the opinions
hereinafter expressed, I am of the opinion that:
1. The Company is a corporation duly incorporated, validly existing
and in good standing under the laws of the State of Wisconsin, and has adequate
corporate power to own and operate its properties and to carry on the business
in which it is now engaged. There are no states or jurisdictions in which the
qualification or licensing of the Company as a foreign corporation is necessary
where the failure to be qualified or licensed would have a material adverse
effect on the Company.
2. All legal proceedings necessary to the authorization, issue and
sale of the New Debentures to you have been taken by the Company.
3. The Agreement has been duly and validly authorized, executed and
delivered by the Company.
4. The Indenture is in proper form, has been duly authorized by the
Company, has been duly executed by the Company and the Trustee and delivered by
the Company and constitutes a legal, valid and binding agreement of the Company
enforceable in accordance with its terms, except as limited by bankruptcy,
insolvency and other laws affecting the enforcement of creditors' rights and the
availability of equitable remedies. The Indenture has been duly qualified under
the TIA.
<PAGE>
-3-
5. The New Debentures conform as to legal matters with the statements
concerning them in the Registration Statement and Prospectus and have been duly
authorized and executed by the Company and (assuming due authentication and
delivery thereof by the Trustee) have been duly issued for value by the Company
and (subject to the qualifications set forth in paragraph 4 above) constitute
legal, valid and binding obligations of the Company enforceable in accordance
with their terms and are entitled to the benefits afforded by the Indenture.
6. The issuance and sale of the New Debentures, as contemplated by
the Agreement, have been duly authorized by the Illinois Commerce Commission,
Indiana Utility Regulatory Commission, Public Utilities Commission of Ohio and
Pennsylvania Public Utility Commission, and such authorization is in full force
and effect and, except as may be required by the securities or Blue Sky laws of
certain jurisdictions, no other authorization, approval or consent of any
governmental regulatory authority is required for the issuance and sale of the
New Debentures.
7. The Company holds valid and subsisting franchises, licenses and
permits adequate for the conduct of its business in the territory served by it,
except for limited areas where the Company operates by sufferance, and none of
the franchises, licenses or permits of the Company contain any unduly burdensome
restrictions.
8. Registration Statement No. 333-02013 became effective on April 11,
1996, and, to the best of my knowledge, no proceedings under Section 8 of the
Act looking toward the possible issuance of a stop order with respect thereto
are pending or threatened and the Registration Statement remains in effect on
the date hereof. The Registration Statement and the Prospectus comply as to
form in all material respects with the relevant provisions of the Act and of the
Exchange Act as to the Incorporated Documents and the applicable rules and
regulations of the Securities and Exchange Commission thereunder, except that I
express no opinion as to the financial statements or other financial data
contained therein. The Prospectus is lawful for use for the purposes specified
in the Act in connection with the offer for sale and sale of the New Debentures
in the manner therein specified. I have no reason to believe that the
Registration Statement or the Incorporated Documents, considered as a whole on
the effective date of the Registration Statement, contained any untrue statement
of a material fact or omitted to state a material fact required to be stated
therein or necessary in order to make the statements therein not misleading or
that the Prospectus and the Incorporated Documents, considered as a whole on the
date hereof, contain any untrue statement of a material fact or omit to state a
material fact necessary in order to make the statements therein, in the light of
the circumstances under which they were made, not misleading, except that in
each case I express no opinion as to the financial statements or other financial
data contained therein.
<PAGE>
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Without my prior written consent, this opinion may not be relied upon
by any person or entity other than the addressee, quoted in whole or in part, or
otherwise referred to in any report or document, or furnished to any other
person or entity, except that Milbank, Tweed, Hadley & McCloy may rely upon this
opinion as if this opinion were separately addressed to them.
Very truly yours,
Richard M. Cahill
Vice President - General Counsel
cc: Milbank, Tweed, Hadley & McCloy
<PAGE>
Exhibit B
MILBANK, TWEED, HADLEY & McCLOY
1 Chase Manhattan Plaza
New York, New York 10005
__________, 199_
GTE NORTH INCORPORATED
$___,000,000 __% Debentures, Series _, Due ____
and the other several Purchasers
referred to in the Purchase Agreement
dated ___________________, among such
Purchasers and GTE North Incorporated
Dear Sirs:
We have been designated by GTE North Incorporated (the "Company") as
counsel for the purchasers of $___,000,000 aggregate principal amount of its
___% Debentures, Series _, Due ____ (the "New Debentures"). Pursuant to such
designation and the terms of a Purchase Agreement dated ________, relating to
the New Debentures (the "Purchase Agreement"), entered into by you with the
Company, we have acted as your counsel in connection with your several
purchases this day from the Company of the New Debentures, which are issued
under an Indenture dated as of January 1, 1994, as amended and supplemented by
the First Supplemental Indenture dated as of May 1, 1996 (as amended and
supplemented, the "Indenture"), between the Company and The First National Bank
of Chicago (the "Trustee").
We have reviewed originals, or copies certified to our satisfaction,
of such corporate records of the Company, indentures, agreements and other
instruments, certificates of public officials and of officers and
representatives of the Company, and other documents, as we have deemed necessary
as a basis for the opinions hereinafter expressed. In such examination we have
assumed the genuineness of all signatures, the authenticity of all documents
submitted to us as originals, the conformity with the original documents of all
documents submitted to us as copies, and the authenticity of the originals of
such latter documents. As to various questions of fact material to such
opinions, we have, when relevant facts were not independently established,
relied upon certifications by officers of the Company and statements contained
in the Registration Statement hereinafter mentioned.
In addition, we attended the closing held today at the offices of GTE
Service Corporation, One Stamford Forum, Stamford, Connecticut, at which the
Company caused the New Debentures to be delivered to your representatives at
<PAGE>
-2-
the Depository Trust Company, 55 Water Street, New York, New York, for your
several accounts, against payment therefor.
On the basis of the foregoing and having regard to legal
considerations which we deem relevant, we are of the opinion that:
1. The Company is a validly existing corporation, in good standing,
under the laws of the State of Wisconsin.
2. The Purchase Agreement has been duly authorized, executed and
delivered by and on behalf of the Company.
3. The Indenture has been duly authorized, executed and delivered by
the Company and constitutes a legal, valid and binding agreement of the Company
enforceable in accordance with its terms, except as limited by bankruptcy,
insolvency, reorganization, moratorium or similar laws of general applicability
affecting the enforceability of creditors' rights. The enforceability of the
Indenture is subject to the effect of general principles of equity (regardless
of whether considered in a proceeding in equity or at law), including without
limitation (i) the possible unavailability of specific performance, injunctive
relief or any other equitable remedy and (ii) concepts of materiality,
reasonableness, good faith and fair dealing. The Indenture has been duly
qualified under the Trust Indenture Act of 1939, as amended.
4. The New Debentures have been duly authorized and conform as to
legal matters in all substantial respects to the description thereof contained
in the Registration Statement and Prospectus hereinafter mentioned. The New
Debentures (assuming due execution thereof by the Company and due authentication
and delivery by the Trustee) have been duly issued for value by the Company and
(subject to the qualifications stated in paragraph 3 above) constitute legal,
valid and binding obligations of the Company, and are entitled to the benefits
afforded by the Indenture in accordance with the terms of the Indenture and of
the New Debentures.
5. On the basis of information received by the Company from the
Securities and Exchange Commission (the "Commission") Registration Statement No.
333-02013 with respect to the New Debentures (the "Registration Statement"),
filed with the Commission pursuant to the Securities Act of 1933, as amended
(the "Act"), became effective under the Act on April 11, 1996, and thereupon the
Prospectus dated ______________ as supplemented by the Prospectus Supplement
dated ____________ (collectively, the "Prospectus") became lawful for use for
the purposes specified in the Act, in connection with the offer for sale and
sale of the New Debentures in the manner therein specified, subject to
compliance with the provisions of securities or Blue Sky laws of certain States
in connection with the offer for sale or sale of the New Debentures in such
States. To the best of our knowledge, the Registration Statement remains in
effect at this date.
6. The Registration Statement, as of its effective date, and the
Prospectus, as of the date hereof, together with the documents incorporated by
reference therein (the "Incorporated Documents") (except any financial
<PAGE>
-3-
statements or other financial data contained or incorporated by reference in the
Registration Statement, the Prospectus or such Incorporated Documents, as to
which no opinion is expressed) appear on their face to be appropriately
responsive, in all material respects relevant to the offering of the New
Debentures, to the requirements of the Act and the Securities Exchange Act of
1934, as amended (the "Exchange Act"), as applicable, and the applicable rules
and regulations of the Commission thereunder.
The Registration Statement was filed on Form S-3 under the Act and,
accordingly, the Prospectus does not necessarily contain a current description
of the Company's business and affairs, since Form S-3 provides for the
incorporation by reference of certain documents filed with the Commission which
contain descriptions as of various dates. We participated in conferences with
counsel for, and representatives of, the Company in connection with the
preparation of the Registration Statement and Prospectus and we have reviewed
the Incorporated Documents. In connection with our participation in the
preparation of the Registration Statement and the Prospectus, we have not
independently verified the accuracy, completeness or fairness of the statements
contained therein or in the Incorporated Documents, and the limitations inherent
in the review made by us and the knowledge available to us are such that we are
unable to assume, and we do not assume, any responsibility for the accuracy,
completeness or fairness of the statements contained in the Registration
Statement, the Prospectus or the Incorporated Documents, except as otherwise
specifically stated herein. None of the foregoing disclosed to us any
information which gave us reason to believe that the Registration Statement or
the Incorporated Documents, considered as a whole on the effective date of the
Registration Statement, contained or contain any untrue statement of a material
fact or omitted or omit to state a material fact required to be stated therein
or necessary in order to make the statements therein not misleading or that the
Prospectus and the Incorporated Documents, considered as a whole on the date
hereof, contain any untrue statement of a material fact or omit to state a
material fact necessary in order to make the statements therein, in light of the
circumstances under which they were made, not misleading. We express no opinion
as to any document filed by the Company under the Exchange Act, whether prior or
subsequent to such effective date, except to the extent that such documents are
Incorporated Documents read together with the Registration Statement or the
Prospectus and considered as a whole, nor do we express any opinion as to the
financial statements or other financial data included in or omitted from, or
incorporated by reference in the Registration Statement, the Prospectus or the
Incorporated Documents.
We express no opinion as to matters governed by any laws other than
the laws of the State of New York, the Federal laws of the United States of
America and, to the extent the foregoing opinions involve the laws of the States
of Wisconsin, Illinois, Indiana, Ohio, Michigan, Pennsylvania and Texas, in
reliance upon the opinion of even date herewith of Richard M. Cahill, Esq., Vice
President-General Counsel of the Company, the laws of the States of Wisconsin,
Illinois, Indiana, Ohio, Michigan, Pennsylvania and Texas.
<PAGE>
-4-
The opinions contained herein are rendered to you and are solely for
your benefit and the benefit of the Purchasers represented by you in connection
with the transaction contemplated by the Purchase Agreement. These opinions may
not be relied upon by you for any other purpose, or furnished to, quoted or
relied upon by any other person, firm or corporation for any purpose, without
our prior written consent.
Very truly yours,
MILBANK, TWEED, HADLEY & McCLOY
<PAGE>
Exhibit C
LETTER OF INDEPENDENT PUBLIC ACCOUNTANTS
The letter of independent public accountants for the Company to be
delivered pursuant to Article IV, paragraph (E) of the document entitled
Standard Purchase Agreement Provisions, December 1997 Edition, shall be to the
effect that:
At the closing, the Purchasers shall have received such number of
copies as are necessary to provide one for each Purchaser of a letter addressed
to the Company and satisfactory to the Purchasers or the Representative and
counsel to the Purchasers, dated as of the Closing Date and encompassing the
performance of certain procedures described in the letter as of a date not more
than five business days prior to the Closing Date (the "Cutoff Date"), from
Arthur Andersen LLP, confirming that they are independent public accountants
with respect to the Company within the meaning of the Securities Act of 1933, as
amended (the "Act") and the applicable published rules and regulations of the
Commission thereunder, specifically Rule 2-01 of Regulation S-X, and stating in
effect (1) that in their opinion, the financial statements and schedules audited
by them and incorporated by reference in the Prospectus comply as to form in all
material respects with the applicable accounting requirements of the Act, and
the Securities Exchange Act of 1934, as amended the ("Exchange Act") and the
published rules and regulations thereunder, (2) that although they have not
audited any financial statements of the Company as of any date or for any period
subsequent to the prior-year audit, and although they have conducted an audit
for that period, the purpose (and therefore the scope) of the audit was to
enable them to express their opinion on the financial statements as of that date
and for the year then ended, but not on the financial statements for any interim
period within that year; therefore, they are unable to and do not express any
opinion on the unaudited condensed consolidated balance sheet as of the latest
available interim date, and the unaudited condensed consolidated statements of
income, reinvested earnings, and cash flows for the latest available interim
period subsequent to that prior-year audit which are included in the Prospectus
and for the comparable period of the preceding year; they have performed the
procedures specified by the American Institute of Certified Public Accountants
for a review of interim financial information as described in SAS No. 71,
Interim Financial Information, on the latest available unaudited interim
condensed consolidated financial statements prepared by the Company, inquired of
certain officials of the Company responsible for financial and accounting
matters, and read the minutes of the Board of Directors and shareholders of the
Company, all of which procedures have been agreed to by the Purchasers, nothing
has come to their attention which caused them to believe that: (a) any unaudited
interim condensed consolidated financial statements incorporated by reference in
the Prospectus (i) do not comply as to form in all material respects with the
applicable accounting requirements of the Exchange Act as it applies to Form
10-Q and the related published rules and regulations thereunder or (ii) have not
been presented in conformity with generally accepted accounting principles
applied on a basis substantially consistent with that of the audited financial
statements incorporated by reference in the Prospectus; or (b) (i) as of the
<PAGE>
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date of the latest available unaudited condensed consolidated interim financial
statements prepared by the Company, there have been any changes in the capital
stock or any increase in the short-term indebtedness or long-term debt of the
Company or any decrease in net assets, in each case as compared with the amounts
shown on the latest balance sheet incorporated by reference in the Prospectus,
(ii) for the period from the date of the latest financial statements included or
incorporated by reference in the Prospectus to the specified date referred to in
the preceding clause (i), there were any decreases in operating revenues, net
operating income, net income or the Company's ratio to earnings to fixed
charges, in each case as compared with the comparable period of the preceding
year, or (iii) as of the Cutoff Date there have been any material changes in the
capital stock or any material increase in the debt of the Company, or any
material decreases in net assets, in each case as compared with amounts shown in
the latest balance sheet included or incorporated by reference in the
Prospectus, and (iv) for the period from the date of the latest available
interim financial statements referred to in clause (b)(i) above to the Cutoff
Date, there were any material decreases in operating revenues, net operating
income or net income, in each case as compared with the comparable period of the
preceding year, except in all instances for changes or decreases which the
Prospectus discloses have occurred or may occur or as disclosed in such letter
and except for changes occasioned by the declaration and payment of dividends on
the stock of the Company or occasioned by sinking fund payments made on the debt
securities of the Company, and (3) that they have performed the following
additional procedures with respect to the ratios of earnings to fixed charges
included or incorporated by reference in the Prospectus: (i) compared the
amounts used in the computation of such ratios with the amounts included in the
financial statements incorporated by reference in the Prospectus and noted
agreement in all material respects, and (ii) recomputed the ratios and noted
agreement in all material respects.
<PAGE>
Exhibit 4.4
FORM OF NEW DEBENTURE
(FORM OF FACE OF DEBENTURE)
[If Debenture is a Global Debenture, insert the following:
EXCEPT AS OTHERWISE PROVIDED IN SECTION 2.11 OF THE INDENTURE, THIS GLOBAL
DEBENTURE MAY BE TRANSFERRED, IN WHOLE BUT NOT IN PART, ONLY TO ANOTHER NOMINEE
OF THE DEPOSITORY OR TO A SUCCESSOR DEPOSITORY OR TO A NOMINEE OF SUCH SUCCESSOR
DEPOSITORY.]
[If The Depository Trust Company is the Depository, insert the following:
Unless this certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to the Company or its
agent for registration of transfer, exchange, or payment, and any certificate
issued is registered in the name of DTC (and any payment is made to Cede & Co.
or to such other entity as is requested by an authorized representative of DTC),
ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY
PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an
interest herein.]
No. _____________ $ _____________
GTE North Incorporated
____% Debentures, Series _, Due ____
GTE North Incorporated, a corporation duly organized and existing under the laws
of the State of Wisconsin (herein referred to as the "Company"), for value
received, hereby promises to pay to _______________ or registered assigns, the
principal sum of __________________ Dollars on __________________ and to pay
interest on said principal sum 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 shall
have become due and payable, and on any overdue principal and (to the extent
that payment of such interest is enforceable under applicable law) on any
overdue installment of interest at the same rate per annum. The interest
installment so payable, and punctually paid or duly provided for, on any
interest payment date will, as provided in the Indenture hereinafter referred
to, be paid to the person in whose name this Debenture (or one or more
Predecessor Securities, as defined in said Indenture) is registered at the close
of business on the regular record date for such interest installment, which
shall be the __________ or __________, as the case may be (whether or not a
business day), next preceding such interest payment date. Any such interest
installment not so punctually paid or duly provided for shall forthwith cease to
be payable to the registered holder on such regular record date, and may be paid
to the person in whose name this Debenture (or one or more Predecessor
Securities) is registered at the close of business on a special record date to
be fixed by the Trustee for the payment of such defaulted interest, notice
whereof shall be given to the registered holders of this series of Debentures
<PAGE>
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not less than 10 days prior to such special record date, or may be paid at any
time in any other lawful manner not inconsistent with the requirements of any
securities exchange on which the Debentures may be listed, and upon such notice
as may be required by such exchange, all as more fully provided in the Indenture
hereinafter referred to. The principal of and the interest on this Debenture
shall be payable at the office or agency of the Company maintained for that
purpose in the City of Chicago, State of Illinois in any coin or currency of the
United States of America which at the time of payment is legal tender for
payment of public and private debts; provided, however, that payment of interest
may be made at the option of the Company by check mailed to the registered
holder at such address as shall appear in the Security Register.
This Debenture shall not be entitled to any benefit under the Indenture
hereinafter referred to, or be valid or become obligatory for any purpose, until
the Certificate of Authentication hereon shall have been signed by or on behalf
of the Trustee.
The provisions of this Debenture are continued on the reverse side hereof and
such continued provisions shall for all purposes have the same effect as though
fully set forth at this place.
IN WITNESS WHEREOF, the Company has caused this instrument to be
executed.
Dated: _________ GTE NORTH INCORPORATED
By __________________________
President
Attest:
By __________________________
Secretary
ILLINOIS COMMERCE COMMISSION
IDENTIFICATION NO. 5992
(FORM OF CERTIFICATE OF AUTHENTICATION)
CERTIFICATE OF AUTHENTICATION
This is one of the Securities of the series designated herein referred to in the
within-mentioned Indenture.
The First National Bank of Chicago
as Trustee, Authenticating Agent and
Security Registrar
By __________________________
Authorized Signatory
<PAGE>
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(FORM OF REVERSE OF DEBENTURE)
This Debenture is one of a duly authorized series of Securities of the Company
(herein sometimes referred to as the "Securities"), all issued or to be issued
in one or more series under and pursuant to an Indenture dated as of January 1,
1994, duly executed and delivered between the Company and Bank of America
National Trust and Savings Association, a national banking organization
organized and existing under the laws of the United States of America and a
First Supplemental Indenture dated as of May 1, 1996 duly executed and delivered
between the Company and The First National Bank of Chicago, a national banking
association organized and existing under the laws of the United States of
America, (hereinafter referred to as the "Trustee") (said Indenture, as amended
and supplemented by the First Supplemental Indenture dated as of May 1, 1996, is
hereinafter referred to as the "Indenture"), to which Indenture reference is
hereby made for a description of the rights, limitation of rights, obligations,
duties and immunities thereunder of the Trustee, the Company and the holders of
the Securities. By the terms of the Indenture, the Securities are issuable in
series which may vary as to amount, date of maturity, rate of interest and in
other respects as in the Indenture provided. This Debenture is one of the series
designated on the face hereof (herein called the "Debentures") limited in
aggregate principal amount to $___,000,000.
[INSERT IF GLOBAL DEBENTURE - This Global Debenture shall be exchangeable for
Debentures in definitive form registered in the names of persons other than the
Depository or its nominee only if (i) the Depository notifies the Company that
it is unwilling or unable to continue as the Depository or if at any time such
Depository is no longer registered or in good standing under the Securities
Exchange Act of 1934 or other applicable statute and a successor depository is
not appointed by the Company within 90 days or (ii) the Company executes and
delivers to the Trustee an Officer's Certificate that the Global Debenture shall
be so exchangeable. To the extent that the Global Debenture is exchangeable
pursuant to the preceding sentence, it shall be exchangeable for Debentures
registered in such names as the Depository shall direct.
Notwithstanding any other provision herein, this Global Debenture may not be
transferred except as a whole by the Depository to a nominee of such Depository
or by a nominee of such Depository to such Depository or another nominee of such
Depository.]
In case an Event of Default, as defined in the Indenture, with respect to the
Debentures shall have occurred and be continuing, the principal of all of the
Debentures may be declared, and upon such declaration shall become, due and
payable, in the manner, with the effect and subject to the conditions provided
in the Indenture.
The Indenture contains provisions permitting the Company and the Trustee, with
the consent of the holders of not less than a majority in aggregate principal
amount of the Securities of each series affected at the time outstanding, as
defined in the Indenture, to execute supplemental indentures for the purpose of
adding any provisions to or changing in any manner or eliminating any of the
provisions of the Indenture or of any supplemental indenture or of modifying in
any manner the rights of the holders of the Securities; provided, however, that
<PAGE>
-4-
no such supplemental indenture shall (i) extend the fixed maturity
of any Securities of any series, or reduce the principal amount thereof, or
reduce the rate or extend the time of payment of interest thereon, or reduce any
premium payable upon the redemption thereof, without the consent of the holder
of each Security so affected or (ii) reduce the aforesaid percentage of
Securities, the holders of which are required to consent to any such
supplemental indenture, without the consent of the holders of each Security then
outstanding and affected thereby. The Indenture also contains provisions
permitting the holders of a majority in aggregate principal amount of the
Securities of any series at the time outstanding, on behalf of the holders of
Securities of such series, to waive any past default in the performance of any
of the covenants contained in the Indenture, or established pursuant to the
Indenture with respect to such series, and its consequences, except a default in
the payment of the principal of, or premium, if any, or interest on any of the
Securities of such series. Any such consent or waiver by the registered holder
of this Debenture (unless revoked as provided in the Indenture) shall be
conclusive and binding upon such holder and upon all future holders and owners
of this Debenture and of any Debenture issued in exchange herefor or in place
hereof (whether by registration of transfer or otherwise), irrespective of
whether or not any notation of such consent or waiver is made upon this
Debenture.
No reference herein to the Indenture and no provision of this Debenture or of
the Indenture shall alter or impair the obligation of the Company, which is
absolute and unconditional, to pay the principal of and interest on this
Debenture at the times and place and at the rate and in the money herein
prescribed.
The Debentures are issuable as registered Debentures without coupons in
denominations of $1,000 or any integral multiple thereof. Debentures may be
exchanged, upon presentation thereof for that purpose, at the office or agency
of the Company in the City of Chicago, State of Illinois, for other Debentures
of authorized denominations, and for a like aggregate principal amount and
series, and upon payment of a sum sufficient to cover any tax or other
governmental charge in relation thereto.
[The Debentures will not be redeemable prior to maturity.]
OR
[The Debentures may not be redeemed prior to ________________. The Debentures
may be redeemed on not less than 30 nor more than 60 days prior notice given as
provided in the Indenture, as a whole or from time to time in part, at the
option of the Company, on any date or dates on or after ______________, and
prior to maturity, at the applicable percentage of the principal amount thereof
to be redeemed as set forth below under the heading "Redemption Price" during
the respective twelve month periods beginning ____ of the years shown below:
Year Redemption Price
____ ________________
%
<PAGE>
-5-
together, in each case, with accrued interest to the date fixed for redemption
(but if the date fixed for redemption is an interest payment date, the interest
installment payable on such date shall be payable to the registered holder at
the close of business on the applicable record date).]
As provided in the Indenture and subject to certain limitations therein set
forth, this Debenture is transferable by the registered holder hereof on the
Security Register of the Company, upon surrender of this Debenture for
registration of transfer at the office or agency of the Company in the City of
Chicago, State of Illinois accompanied by a written instrument or instruments of
transfer in form satisfactory to the Company or the Security Registrar duly
executed by the registered holder hereof or his attorney duly authorized in
writing, and thereupon one or more new Debentures of authorized denominations
and for the same aggregate principal amount and series will be issued to the
designated transferee or transferees. No service charge will be made for any
such transfer, but the Company may require payment of a sum sufficient to cover
any tax or other governmental charge payable in relation thereto.
Prior to due presentment for registration of transfer of this Debenture the
Company, the Trustee, any paying agent and any Security Registrar may deem and
treat the registered holder hereof as the absolute owner hereof (whether or not
this Debenture shall be overdue and notwithstanding any notice of ownership or
writing hereon made by anyone other than the Security Registrar) for the purpose
of receiving payment of or on account of the principal hereof and (subject to
Section 2.03 of the Indenture) interest due hereon and for all other purposes,
and neither the Company nor the Trustee nor any paying agent nor any Security
Registrar shall be affected by any notice to the contrary.
No recourse shall be had for the payment of the principal of or the interest on
this Debenture, or for any claim based hereon, or otherwise in respect hereof,
or based on or in respect of the Indenture, against any incorporator,
stockholder, officer or director, past, present or future, as such, of the
Company or of any predecessor or successor corporation, whether by virtue of any
constitution, statute or rule of law, or by the enforcement of any assessment or
penalty or otherwise, all such liability being, by the acceptance hereof and as
part of the consideration for the issuance hereof, expressly waived and
released.
[INSERT IF GLOBAL DEBENTURE - The Depository by acceptance of this Global
Debenture agrees that it will not sell, assign, transfer or otherwise convey any
beneficial interest in this Global Debenture unless such beneficial interest is
in an amount equal to an authorized denomination for Debentures of this series.]
Capitalized terms used herein and not otherwise defined herein shall have the
respective meanings set forth in the Indenture.
<PAGE>
Exhibit 26.1
GTE NORTH INCORPORATED
Invitation For Bids For the Purchase of
$____,000,000 ____% Debentures, Series _, Due____
GTE NORTH INCORPORATED (the "Company") is inviting bids from certain
investment banks ("Invited Bidders"), each of whom may bid either individually
(a "Sole Bidder") or as part of a group of bidders for which the Invited Bidder
serves as the representative of such group (the "Representative"), subject to
the terms and conditions stated herein, for the purchase from it of
$____,000,000 aggregate principal amount of its ____% Debentures, Series _, Due
____ (the "Debentures").
1. Information Respecting the Company and the Debentures.
Invited Bidders may examine, at the office of the Secretary of the
Company, 600 Hidden Ridge, Irving, Texas 75038, or at the office of GTE Service
Corporation, 10th Floor, One Stamford Forum, Stamford, Connecticut 06904
(Telephone (203) 965-2986), on any business day between 10:00 A.M. and 4:00
P.M., the following:
(a) the Registration Statement on Form S-3 (including the Prospectus,
documents incorporated by reference and exhibits), with respect to the
Debentures;
(b) the Restated Articles of Incorporation of the Company, as
amended;
(c) a copy of the Indenture dated as of January 1, 1994 and the First
Supplemental Indenture dated as of May 1, 1996 (the Indenture as so
supplemented is herein called the "Indenture") under which the Debentures
are to be issued, together with the Form of New Debenture;
(d) the form of Purchase Agreement (including the Standard Purchase
Agreement Provisions (December 1997 Edition)) to be used in submitting bids
for the purchase of the Debentures;
(e) the form of questionnaire to be provided by each of the bidders;
and
(f) memoranda prepared by counsel to the Company with respect to the
status of the Debentures under securities or blue sky laws of certain
jurisdictions.
Copies of said documents in reasonable quantities (except the Restated
Articles of Incorporation of the Company, the Indenture, and other exhibits to
the Registration Statement) will be supplied upon request, so long as available,
to Invited Bidders.
The Company reserves the right to amend the Registration Statement
(including exhibits thereto) and Prospectus and to supplement the Prospectus in
such manner as shall not be unsatisfactory to Messrs. Milbank, Tweed, Hadley &
McCloy. The Company will make copies of any such amendments or supplements
available for examination at the above offices in Irving and Stamford.
<PAGE>
-2-
2. Information Regarding the Bidders to be Furnished to the Company.
In the case of a bid by a group of bidders, the Representative shall be
designated and authorized as the representative of the several bidders in such
group in the questionnaires filed by the members of the group.
In the case of a bid by a group of bidders, the Representative shall
provide to the Company in writing a list of the names of any potential bidder in
its group no later than 10:00 A.M. on the business day immediately preceding the
date scheduled for the submission of bids. No bid by a group of bidders will be
accepted by the Company if such group contains a member to which the Company has
objected prior to 5:00 P.M. on the business day immediately preceding the date
scheduled for the submission of bids. Additional members may be added to a group
of bidders after 10:00 A.M. on the business day immediately preceding the date
scheduled for the submission of bids only with the consent of the Company.
No bid will be considered unless the Sole Bidder, or in the case of a group
of bidders, each member of the group through the Representative, shall have
furnished to the Company, and the Company shall have received, two signed copies
of the form of questionnaire referred to above, properly filled out by the Sole
Bidder or by each member of the group of bidders (the Company reserving,
however, the right to waive the form of the questionnaire or any irregularity
which it deems to be immaterial in any such questionnaire and to extend either
generally or in specific instances the time for furnishing questionnaires, and
specifically reserving the right to obtain all required bidder information by
telegraph or other means of communication). Such copies shall be furnished to
the Company at the office of GTE Service Corporation, 10th Floor, One Stamford
Forum, Stamford, CT 06904, Attention: David S. Kauffman, Esq., before 5:00 P.M.,
New York City time on the business day immediately preceding the date scheduled
for the submission of bids (or on such later date as may be determined pursuant
to Section 5 hereof). Notwithstanding the furnishing of such questionnaires to
the Company, any Sole Bidder, or the Representative on behalf of a group of
bidders, thereafter may determine, without liability to the Company, not to bid,
or any of the several members of a group (other than the Representative) may
withdraw therefrom at or before the time of submission of the bid of such group.
3. Obligations of a Representative to a Group of Bidders
In the case of a group of bidders, the Representative shall (i) make
available to the members of the group any due diligence materials received by it
from the Company and (ii) upon the request of any member of such group, request
from the Company and deliver to such member of the group copies of the documents
listed in Section 1 hereof.
4. Form and Contents of Bids.
Each bid shall be for the purchase of all of the Debentures.
In case the bid of a group of bidders is accepted, the obligations of the
members of the group to purchase the respective principal amounts of Debentures
indicated in the bid shall be several and not joint. Such bidders shall act
through the Representative, who shall be empowered to bind the bidders in the
group. No bidder may submit or participate in more than one bid.
<PAGE>
-3-
5. Submission of Bids and Delivery of Confirmation of Bids.
All bids must be submitted by telephone and confirmed in writing in the
manner set forth in Exhibit A, Confirmation of Bid, attached, signed by the Sole
Bidder or the Representative on behalf of the members of a group of bidders.
Each bid must specify: (a) the interest rate, which shall be a multiple of 1/8
of 1% or 1/100 of 1%; and (b) the price to be paid to the Company for the
Debentures, which shall be expressed as a percentage of the principal amount of
the Debentures and shall not be less than 98% thereof nor more than 100%
thereof. The Confirmation of Bid shall specify the same interest rate and price
specified in the telephonic bid.
The Company reserves the right in its discretion from time to time to
postpone the time and the date for submission of bids for an aggregate period of
not exceeding thirty days, and will give notice of any such postponement to each
Invited Bidder, specifying in such notice the changes in the times and dates set
forth in the Purchase Agreement occasioned by such postponement. In the event
that any such postponement should be for a period of more than three full
business days after the date of sending or delivering such notice, the time for
filing of questionnaires by prospective bidders under Section 2 hereof shall by
such notice be postponed to 5:00 P.M., New York City time, at the place of
delivery specified in Section 2 hereof, on the business day immediately
preceding the newly scheduled date for the submission of bids.
6. Acceptance or Rejection of Bids.
The Company may reject all bids, but if any bid for the Debentures is
accepted the Company will accept that bid which shall result in the lowest
"annual cost of money" to the Company for the Debentures, and any bid not so
accepted by the Company shall, unless such bid shall be involved in rebidding as
hereinafter provided, be deemed to have been rejected. The lowest annual cost
of money to the Company for the Debentures shall be determined by the Company
and such determination shall be final. In case the lowest annual cost of money
to the Company is provided by two or more such bids, the Company (unless it
shall reject all bids) will give the makers of such identical bids an
opportunity (the duration of which the Company may in its sole discretion
determine) to improve their bids. The Company will accept, unless it shall
reject all bids, the improved bid providing the Company with the lowest annual
cost of money for the Debentures. If upon such rebidding the lowest annual cost
of money to the Company is again provided by two or more improved bids, the
Company may without liability to the maker of any other bid accept any one of
such improved bids in its sole discretion, or may reject all bids. If no
improved bid is made within the time fixed by the Company, the Company may
without liability to the maker of any other bid accept any one of the initially
submitted bids providing the lowest annual cost of money to the Company, or may
reject all bids.
The Company further reserves the right to reject the bid of any Sole Bidder
or group of bidders if the Company, in the opinion of its counsel, may not
lawfully sell the Debentures to such bidder or to any member of such group,
unless, in the case of a group of bidders, prior to 1:00 P.M., New York City
time, on the date on which the bids are submitted, the member or members to
which, in the opinion of the Company's counsel, the Debentures may not be
lawfully sold have withdrawn from the group and the remaining members have
agreed to purchase the Debentures which such withdrawing member or members had
offered to purchase.
<PAGE>
-4-
7. Purchase Agreement and Completion of Registration Statement.
The Company will signify its acceptance of a bid by signing the Purchase
Agreement. The Company shall, upon request, execute the acceptance on
additional number of copies of the Purchase Agreement as shall be reasonably
requested by the Representative of the successful bidders. Upon the acceptance
of a bid, the successful Sole Bidder, or, in the case of a bid by a group of
bidders, the Representative on behalf of the successful bidders, shall furnish
to the Company, in writing, all information regarding the bidder or bidders and
the public offering, if any, of the Debentures required in connection with the
prospectus supplement to the Registration Statement, any further information
regarding the bidders and the public offering, if any, to be made by them, which
may be required to complete the applications filed by the Company with public
authorities having jurisdiction over the Company, and other information required
by law in respect of the purchase or sale of the Debentures as herein
contemplated.
8. Delivery of the Debentures.
The Debentures will be delivered in temporary or definitive form, at the
election of the Company, to the purchasers of the Debentures at the place, at
the time and in the manner indicated in the Purchase Agreement, against payment
of the purchase price therefor as provided in the Purchase Agreement.
9. Opinion of Counsel for the Purchasers.
Messrs. Milbank, Tweed, Hadley & McCloy, 1 Chase Manhattan Plaza, New York,
N.Y. 10005, have been requested by the Company to act as counsel for the
successful bidder or bidders of the Debentures and to give to the purchasers an
opinion as outlined in the Purchase Agreement. Such counsel has reviewed or
will review, from the standpoint of possible purchasers of the Debentures, the
form of the Registration Statement and the Prospectus and competitive bidding
papers, including the Purchase Agreement, and has reviewed or will review the
corporate proceedings with respect to the issue and sale of the Debentures.
Invited Bidders may confer with Messrs. Milbank, Tweed, Hadley & McCloy with
respect to any of the foregoing matters at the offices of said firm, 1 Chase
Manhattan Plaza, New York, N.Y. 10005, Attn.: Robert W. Mullen, Jr., Esq. The
successful bidders are to pay the compensation and disbursements of such
counsel, except as otherwise provided in the Purchase Agreement. Such counsel
will, on request, advise any Sole Bidder who has, or the Representative of any
group of bidders who have, furnished questionnaires as provided in Section 2
hereof, of the amount of such compensation and of the estimated amount of such
disbursements.
GTE NORTH INCORPORATED
_________, 199_
<PAGE>
Exhibit A
GTE NORTH INCORPORATED
(the "Company")
CONFIRMATION OF BID FOR
$___,000,000 ____% Debentures, Series _, Due ____
(the "Debentures")
TERMS
Maturity: _______, ____.
Interest Payable: Semi-annually on _______ and _______, commencing
_______.
Redemption Provisions:
[The Debentures will not be redeemable prior to maturity.]
OR
[The New Debentures will not be redeemable prior to ________. Thereafter, the
New Debentures will be redeemable on not less than 30 nor more than 60 days
notice given as provided in the Indenture, as a whole or in part, at the option
of the Company at the redemption price set forth below. The "initial regular
redemption price" will be the initial public offering price as defined below
plus the rate of interest on the New Debentures. The redemption price during the
twelve month period beginning ___ and during the twelve month periods beginning
on each ______ thereafter through the twelve month periods beginning on each
______ thereafter through the twelve month period ended ______ will be
determined by reducing the initial regular redemption price by an amount
determined by multiplying (a) 1/- of the amount by which such initial regular
redemption price exceeds 100% by (b) the number of such full twelve month
periods which shall have elapsed between ______ and the date fixed for
redemption; and thereafter the redemption prices during the twelve month periods
beginning ______ shall be 100%; provided, however, that all such prices will be
specified to the nearest 0.01% or if there is no nearest 0.01%, then to the next
higher 0.01%.
For the purpose of determining the redemption prices of the New Debentures, the
initial public offering price of the New Debentures shall be the price,
expressed in percentage of principal amount (exclusive of accrued interest), at
which the New Debentures are to be initially offered for sale to the public; if
there is not a public offering of the New Debentures, the initial public
offering price of the New Debentures shall be deemed to be the price, expressed
in percentage of principal amount (exclusive of accrued interest), to be paid to
the Company by the purchasers.]
NAME OF BIDDER: _________________________________________________________
TELEPHONE NUMBER TO BE USED TO CALL IN BID: _____________________________
TIME AND DATE BID RECEIVED: _____________________________________________
(to be completed by GTE Service Corporation on behalf of the Company)
<PAGE>
-2-
By submitting this bid, the bidder named above agrees to the following terms and
conditions:
o Each bid shall be for the purchase of all of the Debentures.
o Each bid may be made by a single bidder or by a group of bidders.
o The bidder acknowledges that it (and all members of the bidding group it
represents) has received a copy of the Prospectus dated ________________.
o If the bid is made by a group of bidders, the undersigned represents and
warrants that it is fully authorized by all bidders in the group to act on
their behalf and to bind them to the terms of the Purchase Agreement relating
to the Debentures.
o Each bid shall specify:
- the annual interest rate on the Debentures, which rate shall be a
multiple of 1/8% or 0.01%;
- the price (exclusive of accrued interest) to be paid to the Company
for the Debentures, which price shall not be less than 98% and not more
than 100% of the principal amount of the Debentures, and that accrued
interest on the Debentures from _______, to the date of payment of the
Debentures and the delivery thereof will be paid to the Company by the
purchaser or purchasers; and
- in the case of a bid by a group of bidders, the name of, and amount to
be purchased by each bidder;
o Bids must be received by 10:15 A.M., New York City time, on _______, or such
later time and/or date as the Company may specify (the "Bid Time").
o Bids shall be irrevocable for one (1) hour after the Bid Time.
o The winning bid shall be selected on the basis of the lowest "annual cost of
money" to the Company.
o Whether or not this bid is accepted by the Company, an executed copy of this
Confirmation of Bid must be sent promptly by facsimile to GTE Service
Corporation on behalf of the Company at 203-965-2937 or 203-965-4237.
o If this bid is accepted, upon acceptance the undersigned agrees to promptly
furnish to the Company a signed copy of the Purchase Agreement relating to the
Debentures and a copy of all information required to be included in the
Prospectus relating to the Debentures.
o Closing Date: _______ at 10:00 A.M., New York City time.
<PAGE>
-3-
BID:
Interest Rate ________________ %
Price to be paid to the Company ________________ %
___________________________________
(Name of Bidder)
__________________________________
(Authorized Signature)
