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EXHIBIT 4.1
AMERICAN GENERAL CORPORATION: Terms Committee
DATE: November 30, 2000
SUBJECT: 8.05% Trust Preferred Securities of American General Capital III
PURPOSE: The purpose of these resolutions is to authorize certain matters
relating to the issuance and sale of 8.05% Trust Preferred
Securities of American General Capital III
RESOLUTIONS AUTHORIZING CERTAIN MATTERS RELATING TO
TRUST PREFERRED SECURITIES
WHEREAS, at a meeting on October 23, 1997, the Board of Directors of
American General Corporation (the "Company") authorized the creation, issuance
and sale of up to $1,500,000,000 aggregate offering price of securities;
WHEREAS, American General Capital III, a Delaware statutory business
trust (the "Trust"), proposes to issue its 8.05% Trust Preferred Securities (the
"Preferred Securities") and its 8.05% Common Securities (the "Common Securities"
and, together with the Preferred Securities, the "Trust Securities") and use the
proceeds from the sale of the Trust Securities to purchase junior subordinated
debentures of the Company; and
WHEREAS, this Committee desires to establish the terms of such junior
subordinated debentures pursuant to Section 3.1 of the Junior Subordinated
Indenture, dated as of November 15, 1997 (the "Indenture"), between the Company
and Bankers Trust Company, as trustee (the "Trustee"); and
WHEREAS, in connection with the issuance of the Preferred Securities,
the Company and the Trust propose to file with the Commission a final prospectus
supplement to the Registration Statement on Form S-3 (Registration Nos.
333-40583, et. seq.), as amended, previously filed by the Company, the Trust and
certain other trusts with the Securities and Exchange Commission (the
"Commission"), which prospectus supplement sets forth, among other things,
information with respect to the terms of such Trust Securities and junior
subordinated debentures;
Now, therefore, be it:
8.05% JUNIOR SUBORDINATED DEBENTURES DUE 2049
RESOLVED, that, upon receipt of the purchase price therefor, the
Company shall issue, sell and deliver a series of its junior subordinated
debentures to the Trust pursuant to the Indenture having an aggregate principal
amount of $103,092,800 and, upon such issuance, such junior subordinated
debentures shall be valid and binding obligations of the Company; and be it
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FURTHER RESOLVED, that the title, principal amount, interest rate,
redemption provisions, and other terms of such junior subordinated debentures to
be fixed pursuant to Section 3.1 of the Indenture shall be as follows
(capitalized terms appearing below that are defined in the Indenture, but not
defined herein, having the meanings ascribed to them in the Indenture):
1. TITLE. The junior subordinated debentures shall be designated as the
8.05% Junior Subordinated Debentures due 2049 (the "Debentures").
2. PRINCIPAL AMOUNT. The aggregate principal amount of the Debentures
which may be authenticated and delivered pursuant to these resolutions shall be
limited to $103,092,800 (except for Debentures authenticated and delivered upon
registration of transfer of, or in exchange for, or in lieu of, other Debentures
of the same series pursuant to Sections 3.4, 3.5, 3.6, 9.6 or 11.6 of the
Indenture).
3. MATURITY DATE. The principal of the Debentures shall be payable
(together with any accrued and unpaid interest thereon) on December 31, 2049
(the "Maturity Date"), subject to earlier redemption as set forth below in
paragraphs 7 and 8. The Debentures will not be entitled to the benefit of any
sinking fund prior to maturity.
4. INTEREST RATE; INTEREST PAYMENT DATES.
(a) The Debentures will bear interest on the principal amount thereof
at the fixed rate of 8.05% per annum (the "Coupon Rate") from and including
December 7, 2000 or from and including the most recent Interest Payment Date to
which interest has been paid or duly provided for to but excluding the related
Interest Payment Date (as defined below) until the principal thereof becomes 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 Coupon Rate, compounded quarterly, payable (subject to the
provisions of paragraph 5 below) quarterly in arrears on March 31, June 30,
September 30 and December 31 of each year (each, an "Interest Payment Date"),
commencing on December 31, 2000. The amount of interest payable on any Interest
Payment Date shall be computed on the basis of a 360-day year of twelve 30-day
months, and for any period shorter than a full quarter on the basis of the
actual number of days elapsed in such 90-day quarter.
(b) Interest on the Debentures (except defaulted interest) shall be
paid to the Persons in whose name the Debentures are registered at the close of
business on the Regular Record Date for such interest installment (including
Debentures that are canceled after the Regular Record Date and before the
Interest Payment Date), which, with respect to any Debentures of which the
Property Trustee of the Trust (the "Property Trustee") is the Holder or with
respect to a Debenture in Global Security form, shall be the close of business
on the Business Day next preceding that Interest Payment Date. If the Debentures
are no longer held by the Property Trustee and the Debentures are not
represented by a Debenture in Global Security form, the Regular Record Date for
such interest installment shall be the 15th day of the last month of the
quarterly interest period (even if not a Business Day). Notwithstanding the
foregoing, any interest that is payable at maturity shall be payable to the
Person to whom principal payable at maturity shall be payable.
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(c) If the Holder of a Debenture is the Property Trustee, the payment
of the principal of and interest on such Debenture will be made by wire transfer
in immediately available funds at such place and to such account as may be
designated by the Property Trustee.
(d) If, at any time while the Property Trustee is the Holder of any
Debentures, the Trust is required to pay any taxes, duties, assessment or
governmental charges of whatever nature (other than withholding taxes) imposed
by the United States, or any other taxing authority, then, in any case, the
Company will pay as additional interest on the Debentures held by the Property
Trustee, such additional amounts as shall be required so that the net amounts
received and retained by the Trust after paying such taxes, duties, assessments
or other governmental charges will be equal to the amounts the Trust would have
received had no such taxes, duties, assessments or other government charges been
imposed.
5. EXTENSION OF AN INTEREST PAYMENT PERIOD. So long as no Event of
Default under the Indenture has occurred and is continuing, the Company may
defer the payment of interest on the Debentures at any time and from time to
time for a period not exceeding 20 consecutive quarterly periods, including the
first such quarterly period during such period (each, an "Extension Period"),
provided that no Extension Period shall extend beyond the Maturity Date or the
earlier date of redemption. No interest shall be due and payable on the
Debentures until the end of the Extension Period unless the Debentures are
redeemed prior to that date, in which event interest on the Debentures so
redeemed shall be due and payable on the redemption date. At the end of the
Extension Period, the Company shall pay all interest accrued and unpaid on the
Debentures, which shall be payable to the Holders of the Debentures in whose
names the Debentures are registered in the Securities Register as of the Regular
Record Date relating to the Interest Payment Date that corresponds to the end of
such Extension Period. Notwithstanding such deferral, interest shall accrue on
the interest deferred (to the extent permitted by applicable law) at the Coupon
Rate, compounded quarterly, from the relevant Interest Payment Dates during any
Extension Period. Prior to the expiration of any Extension Period, the Company
may further defer payments of interest by further extending such Extension
Period; provided that such Extension Period, together with all previous and
further extensions, if any, within such Extension Period, may not exceed 20
consecutive quarterly periods, including the first quarterly period during such
Extension Period, or extend beyond the Maturity Date of the Debentures or the
date of earlier redemption. Before the termination of any Extension Period, the
Company may pay all or any portion of the interest accrued on the Debentures to
the date of payment. Upon the expiration of any Extension Period and the payment
of all amounts then due, the Company may commence a new Extension Period,
subject to the above requirements. There is no limitation on the number of times
that the Company may elect to begin an Extension Period. The Company will give
notice of its commencement of an Extension Period as set forth in Section 3.11
of the Indenture.
6. PLACE OF PAYMENT. The Trustee is hereby appointed as the initial
sole Paying Agent for the Debentures. The principal of and interest on the
Debentures shall be payable at the Corporate Trust Office of the Trustee in the
Borough of Manhattan, The City of New York; provided, however, that, at the
option of the Company, payment of interest may be made (a) except in the case of
Debentures in Global Security form, by check mailed to the address of the Person
entitled thereto as such address shall appear in the Securities Register or (b)
if proper transfer instructions have been
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received by the Securities Registrar by the applicable Regular Record Date, by
wire transfer to such account as may be designated by the Person entitled
thereto as specified in the Securities Register. Notwithstanding the foregoing,
so long as the Holder of any Debentures is the Property Trustee, the payment of
the principal of and interest on such Debentures held by the Property Trustee
will be made by wire transfer of immediately available funds at such place and
to such account as may be designated by the Property Trustee. Payment of
principal of the Debentures will only be made upon surrender of the Debentures
to the Trustee.
7. SPECIAL EVENT REDEMPTION.
(a) If a Tax Event or Investment Company Event (each as defined below,
and each a "Special Event") has occurred and is continuing, then the Company
shall have the right, upon no less than 30 days' nor more than 60 days' notice
to the Holders of the Debentures, to redeem the Debentures, in whole but not in
part, before December 7, 2005, for cash within 90 days following the occurrence
of such Special Event at a redemption price equal to 100% of the principal
amount to be redeemed plus any accrued and unpaid interest thereon to the date
of such redemption. The Redemption Price shall be paid prior to 12:00 noon, New
York time, on the date of such redemption or at such earlier time as the Company
determines and specifies in the notice of redemption.
(b) "Tax Event" means that the Administrative Trustees of the Trust
(the "Administrative Trustees") shall have received an opinion of an independent
tax counsel experienced in such matters to the effect that, as a result of (i)
any amendment to, or change (including any announced proposed change) in, the
laws (or any regulations thereunder) of the United States or any political
subdivision or taxing authority affecting taxation, or (ii) any official or
administrative pronouncement or action or judicial decision, interpreting or
applying such laws or regulations, which amendment or change becomes effective
or such pronouncement, action or decision is announced or occurs on or after
November 30, 2000, there is more than an insubstantial risk that (A) the Trust
is or, within 90 days of the date of such opinion, would be subject to United
States federal income tax with respect to interest accrued or received on the
Debentures, (B) interest payable by the Company on the Debentures is not or,
within 90 days of the date of such opinion, would not be deductible, in whole or
in part, by the Company for United States federal income tax purposes, or (C)
the Trust is or, within 90 days of the date of such opinion, would be, subject
to more than a de minimis amount of other taxes, duties, assessments or other
governmental charges.
(c) "Investment Company Event" means that the Administrative Trustees
shall have received an opinion of an independent counsel experienced in practice
under the Investment Company Act to the effect that, as a result of the
occurrence of a change in law or regulation or a change in interpretation or
application of law or regulation by any legislative body, court, governmental
agency or regulatory authority (a "Change in 1940 Act Law"), there is more than
an insubstantial risk that the Trust is or will be considered an "Investment
Company" that is required to be registered under the Investment Company Act,
which Change in 1940 Act Law becomes effective on or after November 30, 2000.
For the purpose of the preceding sentence, "Investment Company Act" means the
Investment Company Act of 1940, as amended from time to time, or any successor
legislation.
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8. OPTIONAL REDEMPTION. The Company shall have the right to redeem the
Debentures, in whole or in part, at any time or from time to time, on or after
December 7, 2005, at a redemption price equal to 100% of the principal amount to
be redeemed plus any accrued and unpaid interest thereon to the date of such
redemption. Any redemption pursuant to this paragraph 8 shall be made upon no
less than 30 days nor more than 60 days notice to the Holders of the Debentures.
The Redemption Price shall be paid prior to 12:00 noon, New York time, on the
date of such redemption or at such earlier time as the Company determines and
specifies in the notice of redemption.
9. LISTING. If the Preferred Securities are listed on the New York
Stock Exchange or another securities exchange at the time, if any, of the
distribution of the Debentures to the holders of Preferred Securities in
accordance with the Amended and Restated Declaration of Trust of the Trust among
the Company, as sponsor, the Delaware Trustee, the Property Trustee and the
Administrative Trustees referred to therein (the "Declaration"), then, prior to
such distribution, the Company shall use its best efforts to cause the
Debentures to be listed on the New York Stock Exchange or such other exchange on
which the Preferred Securities were listed immediately prior to such
distribution.
10. REGISTRAR. The Debentures may be surrendered for registration of
transfer or exchange at the Corporate Trust Office of the Trustee and any
notices or demands at or upon the Company in respect of the Debentures and the
Indenture may be presented at that office.
11. FORM.
(a) The certificate or certificates evidencing the Debentures shall be
substantially in the form attached hereto as Annex A, with such changes as the
officer executing the same shall approve, such approval to be evidenced by such
officer's manual or facsimile signature. The terms of the Debentures are
specified therein as well as in these resolutions.
(b) Except as provided in (c) below, the Debentures shall be issued in
fully registered certificated form, without interest coupons.
(c) In connection with a distribution of the Debentures to the holders
of the Preferred Securities pursuant to the Declaration:
(i) the Debentures in certificated form to be distributed to
the holders of Preferred Securities may be presented to the Trustee by
the Property Trustee in exchange for a Debenture or Debentures in
Global Security form in an aggregate principal amount equal to the
aggregate principal amount of all Outstanding Debentures, to be
registered in the name of The Depository Trust Company as initial
Depository (the "Depository"), or its nominee, and delivered by the
Trustee to the Depository for crediting to the accounts of its
participants pursuant to the instructions of the Property Trustee. The
Company upon any such presentation shall execute one or more Debentures
in Global Security form in such aggregate principal amount and deliver
the same to the Trustee for authentication and delivery in accordance
with the Indenture and this resolution. Payments on the Debentures
issued as a Global Security will be made to the Depository; and
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(ii) if any Preferred Securities are held in non book-entry
certificated form, the Debentures in certificated form may be presented
to the Trustee by the Property Trustee and any certificate which
represents Preferred Securities ("Preferred Securities Certificate")
other than Preferred Securities held by the Depository or its nominee
("Non Book-Entry Preferred Securities) will be deemed to represent a
beneficial interest in Debentures presented to the Trustee by the
Property Trustee having an aggregate principal amount equal to the
aggregate liquidation amount of the Non Book-Entry Preferred Securities
until such Preferred Security Certificates are presented to the
Securities Registrar for transfer or reissuance, at which time such
Preferred Security Certificates will be canceled and a Debenture,
registered in the name of the holder of the Preferred Security
Certificate or the transferee of the holder of such Preferred Security
Certificate, as the case may be, with an aggregate principal amount
equal to the aggregate liquidation amount of the Preferred Security
Certificate canceled, will be executed by the Company and delivered to
the Trustee for authentication and delivery in accordance with the
Indenture and this resolution. On issuance of such Debentures,
Debentures with an equivalent aggregate principal amount that were
presented by the Property Trustee to the Trustee will be deemed to have
been canceled.
12. TRANSFERABILITY. Prior to a distribution of the Debentures to the
holders of Trust Securities pursuant to the Declaration, the Debentures may not
be transferred by the Trust without the Company's prior consent.
13. DENOMINATION. The Debentures shall be issuable in denominations of
$25 and any integral multiple thereof.
14. RANKING; SUBORDINATION. The Debentures will be unsecured and will
be issued subject to the provisions of Article XIII of the Indenture. The
Debentures will rank pari passu with all other series of Securities issued
pursuant to the Indenture.
15. FORM OF AMENDED AND RESTATED DECLARATION OF TRUST AND GUARANTEE
AGREEMENT. Pursuant to Section 3.1(18) of the Indenture, the form of Declaration
and Preferred Securities Guarantee Agreement relating to the Debentures and the
Trust Securities shall be in the forms attached hereto as Annexes B and C,
respectively; and be it
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ANNEX A
[FORM OF FACE OF DEBENTURE]
AMERICAN GENERAL CORPORATION
8.05% JUNIOR SUBORDINATED DEBENTURE
DUE 2049
NO. 1- REGISTERED $___________________
American General Corporation, a Texas corporation (the "Company", which
term includes any successor corporation under the Indenture hereinafter referred
to), for value received, hereby promises to pay to ____________________________,
or registered assigns, the principal sum of ___________________________ Dollars
($_____________) on December 31, 2049 unless redeemed prior thereto in
accordance with the provisions hereof, and to pay interest on such principal sum
from and including December 7, 2000, or from and including the most recent
interest payment date (each such date, an "Interest Payment Date") to which
interest has been paid or duly provided for, quarterly (subject to deferral as
set forth herein) in arrears on March 31, June 30, September 30 and December 31
of each year commencing December 31, 2000, at the rate of 8.05% per annum until
the principal hereof shall have become due and payable, and on any overdue
principal and (without duplication 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 amount of interest payable on any
Interest Payment Date shall be computed on the basis of a 360-day year of twelve
30-day months, and for any period shorter than a full quarter on the basis of
the actual number of days elapsed in such 90-day quarter. In the event that any
date on which interest is payable on this Debenture is not a Business Day, then
payment of interest payable on such date will be made on the next succeeding day
that is a Business Day (and without any interest or other payment in respect of
any such delay), except that, if such Business Day is in the next succeeding
calendar year, such payment shall be made on the immediately preceding Business
Day, in each case with the same force and effect as if made on such date. The
interest installment so payable, and punctually paid or duly provided for, on
any Interest Payment Date will, as provided in the Indenture, be paid to the
person in whose name this Debenture is registered at the close of business on
the regular record date for such interest installment, which shall be the close
of business on the Business Day next preceding such Interest Payment Date.
Notwithstanding the foregoing, any interest that is payable on the Maturity
shall be payable to the Person to whom principal payable at the Maturity shall
be payable. Any such interest installment not punctually paid or duly provided
for shall forthwith cease to be payable to the registered Holders on such
regular record date and may be paid to the Person in whose name this Debenture
(or one or more Predecessor Security) is registered at the close of business on
a special record date to be fixed in accordance with the provisions of Section
3.7 of the Indenture or may be paid in any other manner lawfully permitted by
the Indenture. The principal of and the interest on this Debenture shall be
payable at the office or agency of the Trustee maintained for that purpose in
any coin or currency of the United States of America that 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 Securities Register
or, subject to the provisions of the Indenture, by a transfer of funds to an
account designated in the Securities Register. Notwithstanding the foregoing, so
long as the
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Holder of this Debenture is the Property Trustee, the payment of the principal
of and interest on this Debenture will be made by wire transfer in immediately
available funds at such place and to such account as may be designated by the
Property Trustee. Payment of principal of the Debentures will only be made upon
surrender of the Debentures to the Trustee or Paying Agent.
The indebtedness evidenced by this Debenture is, to the extent provided
in the Indenture, subordinate and junior in right of payment to the prior
payment in full of all Senior Indebtedness, and this Debenture is issued subject
to the provisions of the Indenture with respect thereto. Each Holder of this
Debenture, by accepting the same, (a) agrees to and shall be bound by such
provisions, (b) authorizes and directs the Trustee on his or her behalf to take
such action as may be necessary or appropriate to acknowledge or effectuate the
subordination so provided and (c) appoints the Trustee his or her
attorney-in-fact for any and all such purposes. Each Holder hereof, by his or
her acceptance hereof, hereby waives all notice of the acceptance of the
subordination provisions contained herein and in the Indenture by each holder of
Senior Indebtedness, whether now outstanding or hereafter incurred, and waives
reliance by each such holder upon said provisions.
This Debenture shall not be entitled to any benefit under the Indenture
hereinafter referred to, be valid or become obligatory for any purpose until the
Certificate of Authentication hereon shall have been manually 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.
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IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed.
Dated: AMERICAN GENERAL CORPORATION
-------------------
By:
-------------------------------
Attest:
By:
---------------------------------
CERTIFICATE OF AUTHENTICATION
This is one of the Debentures referred to in the within-mentioned
Indenture.
BANKERS TRUST COMPANY
By:
-------------------------------
Authorized Signatory
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[Form of Reverse of Debenture]
REVERSE SIDE
This Debenture is one of a duly authorized series of Debentures of the
Company (herein sometimes referred to as the "Debentures"), specified in and all
issued or to be issued in one or more series under and pursuant to an Indenture,
dated as of November 15, 1997, executed and delivered between the Company and
Bankers Trust Company (as supplemented or amended from time to time, the
"Indenture" which, for the purposes hereof, shall be deemed to include the Board
Resolution dated November 30, 2000 establishing the terms of the Debentures in
accordance with the Indenture), to which Indenture reference is hereby made for
a description of the rights, limitations or rights, obligations, duties and
immunities thereunder of the Trustee, the Company and the Holders of the
Debentures, and to all of which provisions the Holder of this Debenture by
acceptance hereof, assents and agrees. By the terms of the Indenture, the
Debentures are issuable in series that may vary as to amount, date of maturity,
rate of interest and in other respects as provided in the Indenture. This series
of Debentures is limited in aggregate principal amount to $103,092,800 except as
specified in the Indenture.
Except as provided in the next paragraph with respect to the occurrence
of a Special Event, the Debentures may not be redeemed by the Company prior to
December 7, 2005. The Company shall have the right to redeem the Debentures in
whole or in part at any time and from time to time on or after December 7, 2005
(an "Optional Redemption"), at a redemption price equal to 100% of the principal
amount plus any accrued and unpaid interest, if any, to the date of such
redemption (the "Redemption Price"). Any redemption pursuant to this paragraph
will be made upon not less than 30 nor more than 60 days' notice.
If, at any time, a Tax Event or an Investment Company Event (each, as
defined below, a "Special Event") shall occur and be continuing, the Company
shall have the right, upon not less than 30 nor more than 60 days' notice, to
redeem the Debentures in whole (but not in part) before December 7, 2005 for
cash at the Redemption Price, within 90 days following the occurrence of such
Special Event.
"Tax Event" means that the Administrative Trustees of American General
Capital III, a Delaware business trust (the "Trust"), shall have received an
opinion of an independent tax counsel experienced in such matters to the effect
that, as a result of (i) any amendment to, or change (including any announced
proposed change) in, the laws (or any regulations thereunder) of the United
States or any political subdivision or taxing authority affecting taxation, or
(ii) any official or administrative pronouncement or action or judicial
decision, interpreting or applying such laws or regulations, which amendment or
change becomes effective or such pronouncement, action or decision is announced
or occurs on or after November 30, 2000, there is more than an insubstantial
risk that (A) the Trust is or, within 90 days of the date of such opinion, would
be subject to United States federal income tax with respect to interest accrued
or received on the Debentures, (B) interest payable by the Company on the
Debentures is not or, within 90 days of the date of such opinion,
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would not be deductible, in whole or in part, by the Company for United States
federal income tax purposes, or (C) the Trust is or, within 90 days of the date
of such opinion, would be, subject to more than a de minimis amount of other
taxes, duties, assessments or other governmental charges.
"Investment Company Event" means that such Administrative Trustees of
the Trust shall have receive an opinion of an independent counsel experienced in
practice under the Investment Company Act of 1940, as amended, to the effect
that, as a result of the occurrence of a change in law or regulation or a change
in interpretation or application of law or regulation by any legislative body,
court, governmental agency or regulatory authority (a "Change in 1940 Act Law"),
there is more than an insubstantial risk that the Trust is or will be considered
an "Investment Company" that is required to be registered under the Investment
Company Act of 1940, as amended, which Change in 1940 Act Law becomes effective
on or after November 30, 2000.
Unless the Company defaults in the payment of the Redemption Price, on
and after the date of redemption, interest shall cease to accrue on the
Debentures or portions thereof called for redemption. If the Debentures are only
partially redeemed by the Company pursuant to an Optional Redemption, the
Debentures will be redeemed by such method as the Trustee shall deem fair and
appropriate. In the event of redemption of this Debenture in part only, a new
Debenture or Debentures of this series (for the unredeemed portion hereof) will
be issued in the name of the Holder hereof upon the cancellation hereof.
The Indenture contains provisions that, if no Event of Default with
respect to the Debentures shall have occurred and be continuing, permit the
Company at any time, and from time to time, during the term of the Debentures,
to extend the interest payment period of the Debentures for up to 20 consecutive
quarters not to extend beyond the Maturity of the Debentures (an "Extension
Period"), at the end of which period the Company shall pay all interest then
accrued and unpaid (together with interest thereon at the rate specified for the
Debentures to the extent that payment of such interest is enforceable under
applicable law). At the termination of any such Extension Period and upon the
payment of all accrued and unpaid interest and any additional amounts then due,
and if no Event of Default with respect to the Debentures shall have occurred
and be continuing, the Company may commence a new Extension Period.
In case an Event of Default, as defined in the Indenture, 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 and limitations 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 Debentures of each series affected at the time
outstanding, as defined in the Indenture, and subject to certain limitations, 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 Debentures. The Indenture also contains
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provisions permitting the Holders of a majority in aggregate principal amount of
the Debentures of any series at any time outstanding, on behalf of all of the
Holders of the Debentures of such series, to waive any past default with respect
to such series, and its consequences, except a default in the payment of the
principal of or interest on the Debentures or a default in respect of a covenant
or provision of the Indenture or the Debentures of such series which cannot be
modified or amended without the consent of each Holder of Debentures of such
series affected. Any such consent or waiver by the Holder of this Debenture
shall be conclusive and binding upon such Holder and upon all future Holders and
owners of this Debenture and of any Debentures 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 time, place and rate and in the coin or currency herein
prescribed.
As provided in the Indenture and subject to certain limitations therein
set forth, this Debenture is transferable by the registered Holder hereof on the
Securities Register of the Company, upon surrender of this Debenture for
registration of transfer at the Corporate Trust Office of the Trustee duly
endorsed by or accompanied by a written instrument of transfer in form
satisfactory to the Company duly executed by the Holder hereof or its 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 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 Registrar) for the purpose of
receiving payment of or on account of the principal hereof and interest due
hereon and for all other purposes, and neither the Company nor the Trustee nor
any paying agent nor any 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 any obligation of the Company under this Debenture
or the Indenture or for any claim based hereon or thereon, against any
incorporator, stockholder, officer, director or employee, past, present or
future, as such, of the Company or of any predecessor or successor corporation,
all such liability being, by the acceptance hereof and as part of the
consideration for the issuance hereof, expressly waived and released.
As provided in the Indenture and subject to certain limitations herein
and therein set forth, Debentures of this series so issued are exchangeable for
a like aggregate principal amount of
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<PAGE> 13
Debentures of this series of a different authorized denomination, as requested
by the Holder surrendering the same.
All terms used in this Debenture that are defined in the Indenture
shall have the meanings assigned to them in the Indenture.
The Company and the Holder agree (i) that for United Stated federal,
state and local tax purposes it is intended that the Debenture constitute
indebtedness and (ii) to file all United States federal, state and local tax
returns and reports on such basis (unless the Company or the Holder, as the case
may be, shall have received an opinion of independent nationally recognized tax
counsel to the effect that as a result of a change in law after the date of the
issuance of the Debenture the Company or the Holder, as the case may be, is
prohibited from filing on such basis).
The Indenture and this Debenture shall be governed by and construed in
accordance with the laws of the State of New York without regard to the
conflicts of laws principles thereof.
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<PAGE> 14
ABBREVIATIONS
The following abbreviations, when used in the inscription on the first
page of this instrument, shall be construed as though they were written out in
full according to applicable laws or regulations.
UNIF GIFT MIN ACT --
-------------------------------------
(Cust)
Custodian
-------------------------------------
(Minor)
Under Uniform Gifts to Minors Act
-------------------------------------
(State)
TEN COM -- as tenants in common
TEN ENT -- as tenants by the entireties
JT TEN -- as joint tenants with right of survivorship and not as tenants in
common
Additional abbreviations may be used though not in the above list.
----------
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<PAGE> 15
ASSIGNMENT FORM
FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto:
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(Insert assignee's social security or tax identification number)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
(Insert address and zip code of assignee)
the within Debenture and all rights thereunder, and hereby and irrevocably
constitutes and appoints________________________, attorney to transfer this
debenture on the books of the Company, with full power of substitution.
Date:
-------------------------------------------------
Signature:
--------------------------------------------
(Sign exactly as your name appears on the
face of the within Debenture)
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