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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
March 24, 1998
-------------------------------------
Date of Report (Date of earliest event reported)
Lincoln National Corporation
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(Exact name of registrant as specified in its charter)
Indiana 1-6028 35-1140070
- ---------------------------- -------------- ------------------
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
200 East Berry Street, Fort Wayne, Indiana 46802-2706
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(Address of principal executive offices) (Zip Code)
(219) 455-2000
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(Registrant's telephone number)
Page 1 of 4 Pages
Exhibit Index on Page 4
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ITEM 5. OTHER EVENTS.
On March 24, 1998, Lincoln National Corporation (the "Company") closed
the sale of $100,000,000 principal amount of its 6 1/2% Notes due March 15,
2008 (the "2008 Notes") and $200,000,000 principal amount of its 7% Notes due
March 15, 2018 (the "2018 Notes" and, together with the 2008 Notes, the
"Notes"), all pursuant to an Underwriting Agreement dated March 19, 1998 and a
Pricing Agreement relating to the Notes dated March 19, 1998, among the Company
and Merrill Lynch, Pierce, Fenner & Smith Incorporated, Goldman, Sachs & Co.
and Morgan Stanley & Co. Incorporated. The Notes were issued pursuant to that
certain Indenture dated as of September 15, 1994 between the Company and The
Bank of New York, as trustee. The Notes have been registered under the
Securities Act of 1933, as amended, by Registration Statement on Form S-3 (File
No. 33-59785).
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(c) Exhibits.
Exhibit
Number Description
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1.1 Underwriting Agreement dated March 19, 1998
1.2 Pricing Agreement dated March 19, 1998 among the
Company and Merrill Lynch, Pierce, Fenner & Smith
Incorporated, Goldman, Sachs & Co. and Morgan Stanley
& Co. Incorporated.
4.1 Form of 2008 Note
4.2 Form of 2018 Note
Page 2 of 4 Pages
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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.
LINCOLN NATIONAL CORPORATION
By /s/ John L. Steinkamp
----------------------------
Name: John L. Steinkamp
Title: Vice President and
Associate General Counsel
Date: March 24, 1998
Page 3 of 4 Pages
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EXHIBIT INDEX
<TABLE>
<CAPTION>
Exhibit
Number Description
- ------ -----------
<S> <C>
1.1 Underwriting Agreement dated March 19, 1998
1.2 Pricing Agreement dated March 19, 1998 among the Company and Merrill
Lynch, Pierce, Fenner & Smith Incorporated, Goldman, Sachs & Co. and
Morgan Stanley & Co. Incorporated.
4.1 Form of 2008 Note
4.2 Form of 2018 Note
</TABLE>
Page 4 of 4 Pages
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EXHIBIT 1.1
LINCOLN NATIONAL CORPORATION
Underwriting Agreement
Debt Securities, Preferred Stock
and Common Stock
March 19, 1998
Ladies and Gentlemen:
From time to time, Lincoln National Corporation, an Indiana corporation
(the "Company"), proposes to enter into one or more Pricing Agreements (each a
"Pricing Agreement") in the form of Annex I hereto, with such additions and
deletions as the parties thereto may determine, and, subject to the terms and
conditions stated herein and therein, to issue and sell to the firms named in
Schedule I to the applicable Pricing Agreement (the "Underwriters" with respect
to such Pricing Agreement and the securities specified therein) the principal
amount of its securities or aggregate number of shares identified in Schedule I
to the applicable Pricing Agreement (the "Securities").
The terms and rights of any particular issuance of Securities shall be as
specified in the Pricing Agreement relating thereto and in or pursuant to the
Indenture or Articles of Incorporation of the Company (including the Articles
of Amendment), as applicable (the "Securities Agreement") and identified in
such Pricing Agreement.
Particular sales of Securities may be made from time to time to the
Underwriters of such Securities, for whom the firms designated as
representatives of the Underwriters of such Securities in the Pricing Agreement
relating thereto will act as representatives (the "Representatives"). The term
"Representatives" also refers to a single firm acting as sole representative of
the Underwriters and to Underwriters who act without any firm being designated
as their representative. This Underwriting Agreement shall not be construed as
an obligation of the Company to sell any of the Securities or as an obligation
of any of the Underwriters to purchase the Securities. The obligation of the
Company to issue and sell any of the Securities and the obligation of any of
the Underwriters to purchase any
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of the Securities shall be evidenced by the Pricing Agreement with respect to
the Securities specified therein.
Each Pricing Agreement shall specify the aggregate principal amount of
such Securities or the total number of shares, as the case may be, the initial
public offering price of such Securities, the purchase price to the
Underwriters of such Securities, the names of the Underwriters of such
Securities, the names of the Representatives of such Underwriter and the
principal amount or number of shares of such Securities to be purchased by each
Underwriter and shall set forth the date, time and manner of delivery of such
Securities and payment therefor. The Pricing Agreement shall also specify (to
the extent not set forth in the Securities Agreement and the registration
statement and prospectus with respect thereto) the terms of such Securities. A
Pricing Agreement shall be in the form of an executed writing (which may be in
counterparts), and may be evidenced by an exchange of telegraphic
communications or any other rapid transmission device designed to produce a
written record of communications transmitted. The obligations of the
Underwriters under this Agreement and each Pricing Agreement shall be several
and not joint.
1. Representations and Warranties. The Company represents and warrants
to, and agrees with, each Underwriter that:
(a) The Company meets the requirements for use of Form S-3 under the
Securities Act of 1933, as amended (the "Act"), and has filed with the
Securities and Exchange Commission (the "Commission") a registration statement
on such Form (the file number of which is set forth in Schedule II to the
applicable Pricing Agreement), which has become effective, for the registration
under the Act of the Securities. Such registration statement, as amended at
the date of this Agreement, meets the requirements set forth in Rule
415(a)(1)(x) under the Act and complies in all other material respects with
said Rule. The Company proposes to file with the Commission pursuant to Rule
424 under the Act a supplement or supplements to the form of prospectus
included in such registration statement relating to the Securities and the plan
of distribution thereof and has previously advised you of all further
information (financial and other) with respect to the Company to be set forth
therein. Such registration statement, including the exhibits thereto, as
amended at the date of this Agreement, is hereinafter called the "Registration
Statement"; such prospectus in the form in which it appears in the Registration
Statement is hereinafter called the "Basic Prospectus"; and such supplemented
form of prospectus, in the form in which it shall be filed with the Commission
pursuant to Rule 424 (including the Basic Prospectus as so supplemented) is
hereinafter called the "Final Prospectus." Any preliminary form of the Final
Prospectus which has heretofore been filed pursuant to Rule 424 is hereinafter
called the "Preliminary Final Prospectus." Any reference herein to the
Registration Statement, the Basic Prospectus, any Preliminary Final Prospectus
or the Final Prospectus shall be deemed to refer to and include the documents
incorporated by reference therein pursuant to Item 12 of Form S-3 which were
filed under the Securities Exchange Act of 1934, as amended (the "Exchange
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Act") on or before the date of this Agreement, or the issue date of the Basic
Prospectus, any Preliminary Final Prospectus or the Final Prospectus, as the
case may be; and any reference herein to the terms "amend," " amendment" or
"supplement" with respect to the Registration Statement, the Basic Prospectus,
any Preliminary Final Prospectus or the Final Prospectus shall be deemed to
refer to and include the filing of any document under the Exchange Act after
the date of this Agreement, or the issue date of the Basic Prospectus, any
Preliminary Final Prospectus or the Final Prospectus, as the case may be,
deemed to be incorporated therein by reference.
(b) As of the date hereof, when the Final Prospectus is first filed or
transmitted for filing pursuant to Rule 424 under the Act, when, prior to the
Closing Date (as hereinafter defined), any amendment to the Registration
Statement becomes effective (including the filing of any document incorporated
by reference in the Registration Statement), when any supplement to the Final
Prospectus is filed with the Commission and at the Closing Date, (i) the
Registration Statement, as amended as of any such time, and the Final
Prospectus, as amended or supplemented as of any such time, and, in the case of
Securities issued pursuant to an Indenture, the Indenture will comply in all
material respects with the applicable requirements of the Act, the Trust
Indenture Act of 1939, as amended (the "Trust Indenture Act"), and the Exchange
Act and the respective rules thereunder and (ii) neither the Registration
Statement, as amended as of any such time, nor the Final Prospectus, as amended
or supplemented as of such time, will contain any untrue statement of a
material fact or omit to state any material fact required to be stated therein
or necessary in order to make the statements therein not misleading; provided,
however, that the Company makes no representations or warranties as to (i) that
part of the Registration Statement which shall constitute the Statement of
Eligibility and Qualification (Form T-1) under the Trust Indenture Act of the
Trustee (the "Form T-1") or (ii) the information contained in or omitted from
the Registration Statement or the Final Prospectus or any amendment thereof or
supplement thereto in reliance upon and in conformity with information relating
to such Underwriter or the underwriting arrangements furnished in writing to
the Company by any Underwriter specifically for use in the Registration
Statement and the Final Prospectus. As of the date hereof, there is no order
preventing or suspending the use of any Preliminary Final Prospectus.
(c) Each document incorporated by reference in the Registration
Statement and the Final Prospectus will comply in all material respects, as
amended at the time the Registration Statement becomes effective, with the
Exchange Act.
(d) The financial statements of the Company and its consolidated
subsidiaries included in the Registration Statement fairly present the
financial condition and results of operations of the Company and its
consolidated subsidiaries as of the dates indicated and the results of
operations and changes in financial position for the periods therein specified;
neither the Company nor any of its consolidated subsidiaries has sustained
since the
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date of the latest audited financial statements included or incorporated by
reference in the Preliminary Final Prospectus or Final Prospectus any material
loss or interference with its business from fire, explosion, flood or other
calamity, whether or not covered by insurance, or from any labor dispute or
court or governmental action, order or decree, otherwise than as set forth or
contemplated in the Preliminary Final Prospectus or Final Prospectus; and,
since the respective dates as of which information is given in the Registration
Statement and the Basic Prospectus, there has not been any material change in
the capital stock (other than issuances of common stock upon the exercise of
outstanding employee stock options or pursuant to existing employee
compensation plans) or long-term debt of the Company or any of its subsidiaries
or any material adverse change, or any development involving a prospective
material adverse change, in the condition (financial or other), earnings,
business or properties of the Company and its consolidated subsidiaries,
whether or not arising from transactions in the ordinary course of business,
except as set forth or contemplated in the Preliminary Final Prospectus or
Final Prospectus.
(e) The Company has been duly incorporated and is validly existing as a
corporation under the laws of the jurisdiction of its incorporation, with power
and authority (corporate and other) to own, lease and operate its properties
and to conduct its business as described in the Basic Prospectus and has been
duly qualified as a foreign corporation for the transaction of business and is
in good standing under the laws of each other jurisdiction in which it owns or
leases properties, or conducts any business, so as to require such
qualification, or is subject to no material liability or disability by reason
of the failure to be qualified in any such jurisdiction; and each subsidiary of
the Company organized under the laws of the United States representing 5% or
more of the consolidated earnings before income taxes and extraordinary items
or consolidated total assets of the Company (a "Significant Subsidiary") has
been duly incorporated and is validly existing as a corporation under the laws
of its jurisdiction of incorporation except where the failure to be so
qualified would not have a material adverse effect on the Company and the
subsidiaries taken as a whole.
(f) The Company has an authorized capitalization as set forth in the
Final Prospectus, and all of the issued shares of capital stock of the Company
have been duly and validly authorized and issued and are fully paid and
non-assessable.
(g) The Securities have been duly authorized, and, when the Securities
are issued and delivered pursuant to this Agreement and the Pricing Agreement
with respect to such Securities, such Securities will have been duly executed,
authenticated, issued and delivered (and, in the case of Securities
representing capital stock of the Company, will be fully paid and
nonassessable) and will constitute valid and legally binding obligations of the
Company entitled to the benefits provided by the applicable Securities
Agreement, which will be substantially in the form filed as an exhibit to the
Registration Statement; such Securities Agreement has been duly authorized and,
in the case of Securities issued pursuant to an Indenture, such Indenture has
been duly qualified under the Trust Indenture Act and, at the
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Closing Date (as hereinafter defined) for any Securities, the applicable
Securities Agreement will constitute a valid and legally binding agreement of
the Company, enforceable in accordance with its terms, subject, as to
enforcement, to bankruptcy, insolvency, fraudulent transfer, moratorium and
other similar laws relating to or affecting creditors' rights generally and to
general principles of equity; and the applicable Securities Agreement and, upon
issuance, the Securities will conform to the descriptions thereof contained in
the Final Prospectus with respect to such Securities.
(h) The issue and sale of the Securities and the compliance by the
Company with all of the provisions of the Securities, the applicable Securities
Agreement, this Agreement and any Pricing Agreement, and the consummation of
the transactions herein and therein contemplated will not conflict with or
result in a breach or violation of any of the terms or provisions of, or
constitute a default under, any material indenture, mortgage, deed of trust,
loan agreement or other material agreement or instrument to which the Company
or any subsidiary is a party or by which the Company or any subsidiary is bound
or to which any of the property or assets of the Company or any subsidiary is
subject, except for such conflicts, breaches, violations or defaults as would
not, individually or in the aggregate, have a material adverse effect on the
consolidated financial position of the Company and its subsidiaries or the
consummation by the Company of the transactions contemplated by this Agreement,
the applicable Securities Agreement and any Delayed Delivery Contracts nor will
such action result in any violation of the provisions of the articles of
incorporation or bylaws of the Company or any Significant Subsidiary or any
statute or any order, rule or regulation of any court or governmental agency or
body having jurisdiction over the Company, any subsidiary or any of its
respective properties; and no consent, approval, authorization, order,
registration or qualification of or with any such court or governmental agency
or body is required for the issue and sale of the Securities or the
consummation by the Company of the transactions contemplated by this Agreement,
the applicable Pricing Agreement or the applicable Securities Agreement, except
such as have been, or will have been prior to the time of delivery, obtained
under the Act and in the case of Securities to be issued under an Indenture,
the Trust Indenture Act and such consents, approvals, authorizations,
registrations or qualifications as may be required under state securities or
Blue Sky laws in connection with the purchase and distribution of the
Securities by the Underwriters.
(i) Other than as set forth in the Final Prospectus, there are no legal
or governmental proceedings pending to which the Company or any of its
subsidiaries is a party or of which any property of the Company or any of its
subsidiaries is the subject which would individually or in the aggregate be
reasonably likely to have a material adverse effect on the consolidated
financial position, stockholders' equity or results of operations of the
Company and its subsidiaries; and, to the best of the Company's knowledge, no
such proceedings are threatened or contemplated by governmental authorities or
threatened by others.
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(j) The Company and its subsidiaries own or possess, or can acquire on
reasonable terms, all material trademarks, service marks and trade names
necessary to conduct the business now operated by them, and neither the Company
nor any of its subsidiaries has received any notice of infringement of or
conflict with asserted rights of others with respect to any trademarks, service
marks or trade names that singly or in the aggregate, would be reasonably
likely to materially adversely affect the conduct of the business, operations,
financial condition or income of the Company and its subsidiaries considered as
a whole.
(k) To the best of the Company's knowledge and belief, the Company has
complied in all material respects with, and the conduct of its business and the
conduct of business by its subsidiaries does not violate in any material
respect, any statute, law, regulation, rule, order or directive of any federal,
state or local governmental authority applicable to the Company and its
subsidiaries.
2. Purchase and Sale. Subject to the terms and conditions and in
reliance upon the representations and warranties herein set forth, the Company
agrees to sell to each Underwriter, and each Underwriter agrees, severally and
not jointly, to purchase from the Company, at the purchase price set forth in
Schedule II to the applicable Pricing Agreement the principal amount or number
of shares of the Securities set forth opposite such Underwriter's name in
Schedule I to the applicable Pricing Agreement, except that, if Schedule II to
the applicable Pricing Agreement provides for the sale of Securities pursuant
to delayed delivery the respective principal amounts of Securities to be
purchased by the Underwriters shall be as set forth in Schedule I to the
applicable Pricing Agreement less the respective amounts of Contract Securities
determined as provided below. Securities to be purchased by the Underwriters
are herein sometimes called the "Underwriters' Securities" and Securities to be
purchased pursuant to Delayed Delivery Contracts as hereinafter provided are
herein called "Contract Securities."
If so provided in Schedule II to the applicable Pricing Agreement the
Underwriters are authorized to solicit offers to purchase Securities from the
Company pursuant to delayed delivery contracts ("Delayed Delivery Contracts"),
substantially in the form of Annex II hereto but with such changes therein as
the Company may authorize or approve. The Underwriters will endeavor to make
such arrangements and, as compensation therefor, the Company will pay to the
Underwriters, for the account of the Underwriters, on the Closing Date, the
percentage set forth in Schedule II to the applicable Pricing Agreement of the
principal amount of the Securities for which Delayed Delivery Contracts are
made. Delayed Delivery Contracts are to be with institutional investors,
including commercial and savings banks, insurance companies, pension funds,
investment companies and educational and charitable institutions that are not
prohibited from purchasing the Securities. The Company will enter into Delayed
Delivery Contracts in all cases where sales of Contract Securities arranged by
the Underwriters have been approved by the Company but, except as
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the Company may otherwise agree, each such Delayed Delivery Contract must be
for not less than the minimum principal amount set forth in Schedule II to the
applicable Pricing Agreement and the aggregate principal amount of Contract
Securities may not exceed the maximum aggregate principal amount set forth in
Schedule II to the applicable Pricing Agreement. The Underwriters will not
have any responsibility in respect of the validity or performance of Delayed
Delivery Contracts. The principal amount of Securities to be purchased by each
Underwriter as set forth in Schedule I to the applicable Pricing Agreement
shall be reduced by an amount which shall bear the same proportion to the total
principal amount of Contract Securities as the principal amount of Securities
set forth opposite the name of such Underwriter bears to the aggregate
principal amount set forth in Schedule I to the applicable Pricing Agreement,
except to the extent that you determine that such reduction shall be otherwise
than in such proportion and so advise the Company in writing; provided,
however, that the total principal amount of Securities to be purchased by all
Underwriters shall be the aggregate principal amount set forth in Schedule I to
the applicable Pricing Agreement less the aggregate principal amount of
Contract Securities.
3. Delivery and Payment. Securities to be purchased by each Underwriter
pursuant to the Pricing Agreement relating thereto, in definitive form to the
extent practicable, and in such authorized denominations and registered in such
names as the Representatives may request upon at least forty-eight hours' prior
notice to the Company, shall be delivered by or on behalf of the Company to the
Representatives for the account of such Underwriter at the office, on the date
and at the time specified in the applicable Pricing Agreement (or such later
date not later than five business days after such specified date as the
Representatives shall designate), which date and time may be postponed by
agreement between the Representatives and the Company or as provided in Section
8 hereof (such date and time of delivery and payment for the Underwriters'
Securities being herein called the "Closing Date"). Delivery of the
Underwriters' Securities shall be made to the Underwriters for the respective
accounts of the several Underwriters against payment by the several
Representatives of the purchase price thereof by certified or official bank
check or checks payable in New York Clearing House (next day) funds or as
otherwise set forth in the applicable Pricing Agreement.
The Company agrees to have the Underwriters' Securities available for
inspection, checking and packaging by the Underwriters in New York, New York,
not later than 1:00 P.M. on the business day prior to the Closing Date.
4. Agreements. The Company agrees with the several Underwriters that:
(a) Prior to the termination of the offering of the Securities, the
Company will not file any amendment to the Registration Statement or supplement
(including the Final Prospectus) to the Basic Prospectus and will not provide
additional information to the Commission unless the Company has furnished you a
copy for your review and provided you
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with a reasonable opportunity to comment on such proposed amendment,
supplement or information prior to filing or submitting the same and will not
file any such proposed amendment or supplement and will not submit such
additional information to which you reasonably object. The Company will
promptly advise the Underwriters and will promptly confirm such advice in
writing (i) when the Final Prospectus shall have been filed (or transmitted for
filing) with the Commission pursuant to Rule 424, (ii) when any amendment to
the Registration Statement relating to the Securities shall have been filed or
become effective, (iii) of any request by the Commission for any amendment of
the Registration Statement or amendment of or supplement to the Final
Prospectus or for any additional information, (iv) of the issuance by the
Commission of any stop order suspending the effectiveness of the Registration
Statement or the institution or threatening of any proceeding for such purpose
and (v) of the receipt by the Company of any notification with respect to the
suspension of the qualification of Securities for sale in any jurisdiction or
the initiation or threatening of any proceeding for such purpose. The Company
will use its best efforts to prevent the issuance of any such stop order and,
if issued, to obtain as soon as possible the withdrawal thereof.
(b) If, at any time when a prospectus relating to Securities is
required to be delivered under the Act, any event occurs as a result of which
the Final Prospectus as then amended or supplemented would include any untrue
statement of a material fact or omit to state any material fact necessary to
make the statements therein in the light of the circumstances under which they
were made not misleading, or if for any other reason it shall be necessary
during the same period to amend or supplement the Final Prospectus or to file
under the Exchange Act any document incorporated by reference in the Final
Prospectus in order to comply with the Act or the Exchange Act or the
respective rules thereunder, the Company promptly will prepare and file with
the Commission, subject to the first sentence of paragraph (a) of this Section
4, an amendment or supplement which will correct such statement or omission or
an amendment which will effect such compliance.
(c) As soon as practicable but in any event not later than eighteen
months after the effective date of the Registration Statement (as defined in
Rule 158(c) under the Act), the Company will make generally available to its
securityholders and to the Underwriters a consolidated earnings statement or
statements of the Company and its subsidiaries (which need not be audited)
which will satisfy the provisions of Section II (a) of the Act and the rules
and regulations thereunder (including at the option of the Company Rule 158
under the Act).
(d) The Company will furnish to the Underwriters and counsel for the
Underwriters, without charge, one signed copy of the Registration Statement
(including exhibits thereto) and such number of conformed copies of the
Registration Statement and of each amendment thereto which shall become
effective on or prior to the Closing Date and, so long as delivery of a
prospectus by an Underwriter or dealer may be required by the Act,
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<PAGE> 9
as many copies of any Preliminary Final Prospectus and the Final Prospectus and
any amendments thereof and supplements thereto as the Underwriters may
reasonably request.
(e) The Company will promptly from time to time arrange for the
qualification of the Securities for sale under the laws of such jurisdictions
as the Representatives may reasonably designate, will maintain such
qualifications in effect so long as required for the distribution of the
Securities, and will arrange for the determination of the legality of the
Securities for purchase by institutional investors; provided that in connection
therewith the Company shall not be required to qualify as a foreign corporation
or to execute a general consent to service of process in any jurisdiction or to
subject itself to taxation in respect of doing business in any jurisdiction in
which it is not otherwise subject.
(f) Until the business day following the Closing Date, the Company will
not, without the consent of the Underwriters, offer, sell or contract to sell,
or announce the offering of, any debt securities covered by the Registration
Statement or any other registration statement filed under the Act.
(g) The Company covenants and agrees with the several Underwriters that
the Company will pay or cause to be paid the following: (i) the fees,
disbursements and expenses of the Company's counsel and accountants in
connection with the registration of the Securities under the Act in connection
with the preparation, printing and filing of the Registration Statement, Basic
Prospectus, Preliminary Final Prospectus and the Final Prospectus and
amendments and supplements thereto and the mailing and delivering of copies
thereof to the Underwriters and dealers; (ii) the cost of printing or producing
any Agreement among Underwriters, this Agreement, any Pricing Agreement, any
Securities Agreement, any Blue Sky Survey, any Legal Investment Memoranda and
any other documents in connection with the offering, purchase, sale and
delivery of the Securities; (iii) all expenses in connection with the
qualification of the Securities for offering and sale under state securities
and Blue Sky laws as provided in Section 4(e) hereof, including any reasonable
fees and disbursements of counsel for the Underwriters in connection with such
qualification and in connection with the Blue Sky and legal investment surveys;
(iv) any fees charged by securities rating services for rating the Securities;
(v) the cost of preparing the Securities; (vi) the fees and expenses of any
Trustee, Paying Agent, or Transfer Agent and counsel for any such Trustee,
Paying Agent or Transfer Agent in connection with a Securities Agreement and
the Securities issued pursuant to any Securities Agreement; and (vii) all other
costs and expenses incident to the performance of its obligations hereunder
which are not otherwise specifically provided for in this Section. It is
understood, however, that, except as provided in this Section, Section 6 and
Section 7 hereof, the Underwriters will pay all of their own costs and
expenses, including the fees of their counsel, transfer taxes on resale of any
of the Securities by them, and any advertising expenses connected with any
offers they may make.
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<PAGE> 10
(h) The Company will prepare the Final Prospectus as amended and
supplemented in relation to the applicable Securities in a form approved by the
Representatives and will file such Prospectus pursuant to Rule 424(b) under the
Act not later than the Commission's close of business on the second business
day following the execution and delivery of the Pricing Agreement relating to
the applicable Securities or, if applicable, such other time as may be required
by Rule 424(b) and file promptly and simultaneously provide each Underwriter
with a copy of all reports and any definitive proxy or information statements
required to be filed by the Company with the Commission pursuant to Section
13(a), 13(c), 14 or I 5(d) of the Exchange Act for so long as the delivery of a
prospectus is required in connection with the offering or sale of such
Securities.
(i) During a period of five years from the effective date of the
Registration Statement, to furnish to the Representatives copies of all reports
or other communications (financial or other) furnished to stockholders, and
deliver to each Underwriter (i) as soon as they are available, copies of any
reports and financial statements furnished to or filed with the Commission or
any national securities exchange on which the Securities or any class of
securities of the Company is listed; and (ii) such additional information
concerning the business and financial condition of the Company as the
Representatives may from time to time reasonably request (provided such
financial statements and reports are otherwise furnished to its stockholders
generally or to the Commission).
5. Conditions to the Obligations of the Underwriters. The obligations of
the Underwriters to purchase the Underwriters' Securities under the Pricing
Agreement relating to such Securities shall be subject to the accuracy of the
representations and warranties on the part of the Company contained herein as
of the date hereof, as of the date of the effectiveness of any amendment to the
Registration Statement filed prior to the Closing Date with respect to such
Securities (including the filing of any document incorporated by reference
therein) and as of the Closing Date with respect to such Securities, to the
accuracy of the statements of the Company made in any certificates pursuant to
the provisions hereof, to the performance by the Company of its obligations
hereunder and to the following additional conditions:
(a) No stop order suspending the effectiveness of the Registration
Statement, as amended from time to time, shall have been issued and no
proceedings for that purpose shall have been instituted or threatened; all
requests by the Commission for additional information shall have been responded
to the satisfaction of the Representatives; and the Final Prospectus with
respect to such Securities shall have been filed or transmitted for filing with
the Commission pursuant to Rule 424(b) not later than the Commission's close of
business on the second day following the execution and delivery of the Pricing
Agreement relating to the applicable Securities or, if applicable, such other
time as may be required by Rule 424(b).
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(b) Subsequent to the execution and delivery of this Agreement or a
related Pricing Agreement and prior to the Closing Date, there shall not have
occurred any downgrading, nor shall notice have been given of any intended or
potential downgrading or other review in the rating accorded any securities of,
or guaranteed by, the Company by any "nationally recognized statistical rating
organization," as such term is defined for purposes of Rule 436(g)(2) under the
Act.
(c) The Company shall have furnished to the Underwriters the
opinion of Jack D. Hunter, Esq. or the then General Counsel of the Company,
dated the Closing Date, to the effect that:
(i) The Company and each Significant Subsidiary of the Company has
been duly incorporated and is a duly existing corporation under the laws
of its respective state of incorporation, with corporate power and
authority to own its properties and conduct its business as described in
the Final Prospectus; and neither the Company nor any such subsidiary is
required to be qualified to do business as a foreign corporation in any
other jurisdiction in which failure to so qualify would have a material
adverse effect on the business of the Company;
(ii) The applicable Securities Agreement has been duly authorized,
executed and delivered, and, in the case of the Articles of Amendment, if
applicable, has been filed with the Secretary of State of the State of
Indiana and constitutes a legal, valid and binding instrument enforceable
against the Company in accordance with its terms (subject, as to
enforcement of remedies, to applicable bankruptcy, reorganization,
insolvency, moratorium or other laws affecting creditors' rights
generally from time to time in effect);
(iii) The Securities have been duly authorized; the Underwriters'
Securities have been duly executed, authenticated, issued and delivered;
the Underwriters' Securities constitute, and any Contract Securities,
when executed, authenticated, issued and delivered in the manner provided
in the applicable Securities Agreement and sold pursuant to any Delayed
Delivery Contracts, will constitute, valid and legally binding
obligations of the Company entitled to the benefits and security provided
by the applicable Securities Agreement; and the Underwriters' Securities
conform, and the Contract Securities, when so issued and delivered and
sold, will conform, to the description thereof contained in the Final
Prospectus;
(iv) No consent, approval, authorization or order of, or filing
with, any governmental agency or body or any court is required for the
consummation of the transactions contemplated by this Agreement or any
Delayed Delivery Contract in connection with the issuance or sale of the
Securities by the Company, except such
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<PAGE> 12
as have been obtained and made under the Act and the Trust Indenture Act
and such as may be required under state securities laws;
(v) The issue and sale of the Securities and the compliance by the
Company with all of the provisions of the Securities, the applicable
Securities Agreement, this Agreement, the applicable Pricing Agreement
and any Delayed Delivery Contracts, and the consummation of the
transactions herein and therein contemplated will not conflict with or
result in a breach or violation of any of the terms and provisions of, or
constitute a default under, any material indenture, mortgage, deed of
trust, loan agreement or other material agreement or instrument to which,
to the knowledge of such counsel, the Company or any such subsidiary is a
party or by which the Company or any such subsidiary is bound or to which
any of the property or assets of the Company or any such subsidiary is
subject, except for such conflicts, breaches, violations or defaults as
would not, individually or in the aggregate, have a material adverse
effect on the consolidated financial position of the Company and its
subsidiaries or the consummation by the Company of the transactions
contemplated by this Agreement, the applicable Securities Agreement and
any Delayed Delivery Contracts, nor will such action result in any
violation of the provisions of the articles of incorporation or by-laws
of the Company or any Significant Subsidiary or any statute, order, rule
or regulation of any court or governmental agency or body having
jurisdiction over the Company, any such subsidiary or any of its
respective properties;
(vi) The descriptions in the Registration Statement and Final
Prospectus of statutes, legal and governmental proceedings and contracts
and other documents are accurate in all material respects and fairly
present the information required to be shown; no legal or governmental
proceedings are required to be described in the Final Prospectus which
are not described as required or of any contracts or documents of a
character required to be described in the Registration Statement or Final
Prospectus or to be filed as exhibits to the Registration Statement which
are not described and filed as required; it being understood that such
counsel need express no opinion as to the financial statements or other
financial data contained in the Registration Statement or the Final
Prospectus;
(vii) This Agreement, the Pricing Agreement and any Delayed
Delivery Contracts have been duly authorized, executed and delivered by
the Company; and
(viii) Such counsel has no reason to believe that any of the
Registration Statement, the Final Prospectus and any amendment or
supplement, as of the respective effective date or issue dates contained
any untrue statement of a material fact or omitted to state any material
fact required to be stated therein or necessary to make the statements
therein not misleading, and that the Final Prospectus, as amended or
supplemented as of the Closing Date, contained any untrue statement of a
material
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<PAGE> 13
fact or omitted to state any material fact necessary to make the
statements therein in light of the circumstances under which they were
made not misleading; provided, that such counsel need render no opinion
as to that portion of the Registration Statement which shall constitute
the Form T-1.
Solely for purposes of rendering the opinion referred to in (ii)
above, Jack D. Hunter, Esq. or the then General Counsel of the Company may
rely, as to matters of New York law, on the opinion of Sullivan & Cromwell
referred to below.
(d) The Underwriters shall have received an opinion, dated such Closing
Date, of Sonnenschein Nath & Rosenthal, counsel for the Company, to the effect
that:
(i) The Company has been duly incorporated and is a duly existing
corporation under the laws of the State of Indiana, with corporate power
and authority to own its properties and conduct its business as described
in the Final Prospectus; and the Company is not required to be qualified
to do business as a foreign corporation in any other jurisdiction in
which the failure to so qualify would have a material adverse effect on
the condition (financial or otherwise) of the Company;
(ii) The applicable Securities Agreement has been duly authorized,
executed and delivered, and, in the case of an Articles of Amendment, if
applicable, has been filed with the Secretary of State for the State of
Indiana and constitutes a legal, valid and binding installment
enforceable against the Company in accordance with its terms (subject, as
to enforcement of remedies, to applicable bankruptcy, reorganization,
insolvency, moratorium or other laws affecting creditors' rights
generally from time to time in effect) and the Indenture has been duly
qualified under the Trust Indenture Act;
(iii) The Securities have been duly authorized; the Underwriters'
Securities have been duly executed, authenticated, issued and delivered;
the Underwriters' Securities constitute, and any Contract Securities,
when executed, authenticated, issued and delivered in the manner provided
in the applicable Securities Agreement and sold pursuant to any Delayed
Delivery Contracts, will constitute, valid and legally binding
obligations of the Company entitled to the benefits and security provided
by the applicable Securities Agreement; and the Underwriters' Securities
conform, and the Contract Securities, when so issued and delivered and
sold, will conform, to the description thereof contained in the Final
Prospectus;
(iv) No consent, approval, authorization or order of, or filing
with, any governmental agency or body or any court is required for the
consummation of the transactions contemplated by this Agreement, the
Pricing Agreement, the Securities
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<PAGE> 14
Agreement or any Delayed Delivery Contract in connection with the
issuance or sale of the Securities by the Company, except such as have
been obtained and made under the Act and the Trust Indenture Act and such
as may be required under state securities laws;
(v) The issue and sale of the Securities and the compliance by the
Company with all of the provisions of the Securities, the applicable
Securities Agreement, this Agreement, the applicable Pricing Agreement
and any Delayed Delivery Contracts, and the consummation of the
transactions herein and therein contemplated will not conflict with or
result in a breach or violation of any of the terms and provisions of, or
constitute a default under, any material indenture, mortgage, deed of
trust, loan agreement or other material agreement or instrument to which,
to the knowledge of such counsel, the Company or any Significant
Subsidiary is a party or by which the Company or any such subsidiary is
bound or to which any of the property or assets of the Company or any
such subsidiary is subject, except for such conflicts, breaches,
violations or defaults as would not, individually or in the aggregate,
have a material adverse effect on the consolidated financial position of
the Company and its subsidiaries or the consummation by the Company of
the transactions contemplated by this Agreement, the applicable
Securities Agreement and any Delayed Delivery Contracts, nor will such
action result in any violation of the provisions of the articles of
incorporation or by-laws of the Company or any Significant Subsidairy or
any order, rule or regulation of any court or governmental agency or body
having jurisdiction over the Company, any such subsidiary or any of its
respective properties;
(vi) (a) The Registration Statement has become effective under the
Act, and, to the best of the knowledge of such counsel after due inquiry,
no stop order suspending the effectiveness of the Registration Statement
has been issued and no proceedings for that purpose have been instituted
or are pending or contemplated under the Act, and the Registration
Statement and the Final Prospectus, and each amendment or supplement
thereto, as of their respective effective or issue dates, complied as to
form in all material respects with the requirements of the Act and the
respective rules thereunder and each document incorporated by reference
in the Registration Statement and the Final Prospectus as amended as of
the effective date of the Registration Statement and the date of any
amendment or supplement thereto, complied as to form in all material
respects with the Exchange Act; (b) such counsel have no reason to
believe that either the Registration Statement or the Final Prospectus,
or any such amendment or supplement, as of such respective dates,
contained any untrue statement of a material fact or omitted to state any
material fact required to be stated therein or necessary to make the
statements therein not misleading, or that the Final Prospectus as
amended or supplemented as of the Closing Date, contained any untrue
statement of a material fact or omitted to state any material fact
necessary to make the statements therein, in light of the
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<PAGE> 15
circumstances under which they were made, not misleading; provided, that
such counsel need render no opinion under this clause (b) as to that
portion of the Registration Statement which shall constitute the Form
T-1; and (c) after due inquiry, such counsel do not know of any legal or
governmental proceedings required to be described in the Final Prospectus
which are not described as required in the Registration Statement or
Final Prospectus or to be filed as exhibits to the Registration Statement
which are not described and filed as required; it being understood that
such counsel need express no opinion as to the financial statements or
other financial data contained in the Registration Statement or the Final
Prospectus;
(vii) This Agreement, the Pricing Agreement and any Delayed
Delivery Contracts have been duly authorized, executed and delivered by
the Company;
(viii) The securities issuable on conversion or exchange of the
Securities, if any, have been duly authorized and reserved for issuance
upon conversion or exchange of the Securities and, when issued upon such
conversion or exchange in accordance with the terms of the applicable
Securities Agreement, will have been validly issued and will be fully
paid and nonassessable, and the issuance of such securities is not
subject to any preemptive or similar rights;
(ix) The statements in the Final Prospectus under "Description of
Debt Securities" and "Description of Preferred Stock and Common Stock",
insofar as such statements constitute a summary of documents referred to
therein, fairly present the information called for with respect to such
documents;
(x) If such Securities are intended to be listed, the Securities
and the Securities issuable on conversion or exchange of Securities, if
any, shall have been approved for listing on the intended exchange or
market, subject to official notice of issuance.
(xi) The Company is not an "investment company" or an entity
controlled by an "investment company" required to be registered under the
Investment Company Act of 1940, as amended.
In rendering such opinion, Sonnenschein Nath & Rosenthal may rely, as to
the incorporation of the Company and all other matters of Indiana law, on the
opinion of Jack D. Hunter, Esq. referred to above. Solely for purposes of
rendering the opinion referred to in (ii) above, Sonnenschein Nath & Rosenthal
may rely, as to matters of New York law, on the opinion of Sullivan & Cromwell
referred to below.
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<PAGE> 16
(e) The Underwriters shall have received from Sullivan & Cromwell,
counsel for the Underwriters, such opinion or opinions, dated the Closing Date,
with respect to the issuance and sale of the Securities, the Securities
Agreement, any Delayed Delivery Contracts, the Registration Statement, the
Final Prospectus and other related matters as the Underwriters may reasonably
require, and the Company shall have furnished to such counsel such documents as
they request for the purpose of enabling them to pass upon such matters.
(f) The Company shall have furnished to the Underwriters a
certificate of the Company, signed by the Chairman of the Board, the President
or an Executive Vice President and the principal financial or accounting
officer of the Company, dated the Closing Date, to the effect that the signers
of such certificate have carefully examined the Registration Statement, the
Final Prospectus and this Agreement and that to the best of their knowledge
after reasonable investigation:
(i) The representations and warranties of the Company in this
Agreement are true and correct on and as of the Closing Date with the
same effect as if made on the Closing Date and the Company has complied
with all the agreements and satisfied all the conditions on its part to
be performed or satisfied at or prior to the Closing Date;
(ii) No stop order suspending the effectiveness of the Registration
Statement, as amended, has been issued and no proceedings for that
purpose have been instituted or, to the Company's knowledge, threatened;
and
(iii) Since the date of the latest audited financial statements
included or incorporated by reference in the Preliminary Final Prospectus
or Final Prospectus, neither the Company nor any of its consolidated
subsidiaries has sustained any material loss or interference with its
business from fire, explosion, flood or other calamity, whether or not
covered by insurance, or from any labor dispute or court or governmental
action, order or decree, and there has been no material adverse change in
the condition (financial or other), earnings, business or properties of
the Company and its consolidated subsidiaries, whether or not arising
from transactions in the ordinary course of business, except as set forth
in or contemplated in the Final Prospectus.
(g) At the Closing Date, Ernst & Young LLP shall have furnished to the
Underwriters a letter or letters (which may refer to letters previously
delivered to one or more of the Underwriters), dated as of the Closing Date, in
form and substance satisfactory to the Underwriters, confirming that they are
independent public accountants with respect to the Company and the Company's
subsidiaries within the meaning of the Act and the Exchange Act and the
respective applicable published rules and regulations thereunder and stating in
effect that:
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<PAGE> 17
(i) In their opinion the audited financial statements and financial
schedules included or incorporated in the Registration Statement and the
Final Prospectus and reported on by them comply in form in all material
respects with the applicable accounting requirements of the Act and the
Exchange Act and the related published rules and regulations;
(ii) They have made a review of the unaudited interim financial
statements included in the Registration Statement in accordance with
standards established by the American Institute of Certified Public
Accountants;
(iii) On the basis of the review referred to in clause (ii) above,
a reading of the latest available interim financial statements of the
Company, inquiries of officials of the Company who have responsibility
for financial and accounting matters and other specified procedures,
nothing came to their attention that caused them to believe that:
(A) Any unaudited financial statements of the Company
included or incorporated in the Registration Statement and the
Final Prospectus do not comply in form in all material respects
with the applicable accounting requirements of the Act and the
Exchange Act and the related published rules and regulations or
are not in conformity with generally accepted accounting
principles applied on a basis substantially consistent with that
of the audited financial statements of the Company in the
Registration Statement and the Final Prospectus;
(B) The amounts included in any unaudited 'capsule'
information included or incorporated in the Registration Statement
and the Final Prospectus do not agree with the amounts set forth
in the unaudited financial statements of the Company for the same
periods or were not determined on a basis substantially consistent
with that of the corresponding amounts in the audited financial
statements of the Company included or incorporated in the
Registration Statement and the Final Prospectus;
(C) At the date of the latest available balance sheet read by
such accountants, and at a subsequent specified date not more than
five days prior to the date of this Agreement, there was any
decrease in the total capital and surplus of the Company and its
subsidiaries consolidated, any change in the Common Stock or
Preferred Stock or any increase in total short-term or long-term
debt of the Company and its subsidiaries consolidated or, at the
date of the latest available balance sheet read by such
accountants, there was any decrease in consolidated total assets,
as compared with amounts shown on the latest balance sheet
included in the Final Prospectus; or
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<PAGE> 18
(D) For the period from the closing date of the latest income
statement included in the Final Prospectus to the closing date of
the latest available income statement read by such accountants
there were any decreases, as compared with the corresponding
period of the previous year and with the period of corresponding
length ended the date of the latest income statement included in
the Final Prospectus, in consolidated revenues, earnings before
cumulative effect of accounting changes, the total or per share
amounts of consolidated net income or in such other items as the
Representatives may reasonably request;
except in all cases set forth in clauses (C) and (D) above for
changes or decreases which the Final Prospectus discloses have
occurred or may occur or which are described in such letter, in
which case the letter shall be accompanied by an explanation by
the Company as to the significance thereof unless said explanation
is not deemed necessary by the Underwriters; and
(iv) They have compared specified dollar amounts (or percentages
derived from such dollar amounts) and other financial information
contained in the Registration Statement and the Final Prospectus (in each
case to the extent that such dollar amounts, percentages and other
financial information are derived from the general accounting records of
the Company and its subsidiaries subject to the internal controls of the
Company's accounting system or are derived directly from such records by
analysis or computation) with the results obtained from inquiries, a
reading of such general accounting records and other procedures specified
in such letter and have found such dollar amounts, percentages and other
financial information to be in agreement with such results, excluding any
questions of legal interpretation.
References to the Registration Statement and the Final Prospectus
in this paragraph (g) are to such documents as amended and supplemented at the
date of the letter.
In addition, at the time a Pricing Agreement is executed, Ernst &
Young LLP shall have furnished to the Underwriters a letter or letters, dated
the date of such Pricing Agreement, in form and substance satisfactory to the
Underwriters, to the effect set forth above.
Subsequent to the respective dates as of which information is
given in the Registration Statement and the Final Prospectus, there shall not
have been (i) any material change or decrease in those items specified in the
letter or letters referred to in paragraph (g) of this Section 5 or (ii) any
change, or any development involving a prospective material adverse change, in
or affecting the condition (financial or other), earnings, business or
properties of the Company and its subsidiaries the effect of which, in any case
referred to in clause (i) or (ii) above, is, in the judgment of the
Underwriters, to make it impractical or
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<PAGE> 19
inadvisable to proceed with the offering or the delivery of the Securities as
contemplated by the Registration Statement and the Final Prospectus.
(h) Prior to the Closing Date, the Company shall have furnished to the
Underwriters such further information, certificates and documents as the
Underwriters may reasonably request.
(i) The Company shall have accepted Delayed Delivery Contracts in any
case where sales of Contract Securities arranged by the Underwriters have been
approved by the Company.
If any of the conditions specified in this Section 5 shall not have
been fulfilled in all material respects when and as provided in this Agreement,
or if any of the opinions and certificates mentioned above or elsewhere in this
Agreement shall not be in all material respects reasonably satisfactory in form
and substance to the Underwriters and its counsel, this Agreement and all
obligations of the Underwriters hereunder may be canceled at, or at any time
prior to, the Closing Date by the Underwriters. Notice of such cancellation
shall be given to the Company in writing or by telephone or telegraph confirmed
in writing.
6. Reimbursement of Underwriters Expenses. If the sale of the Securities
provided for herein is not consummated because any condition to the obligations
of the Underwriters set forth in Section 5 hereof is not satisfied, because of
any termination pursuant to Section 9 hereof or because of any refusal,
inability or failure on the part of the Company to perform any agreement herein
or comply with any provision hereof other than by reason of a default by any of
the Underwriters, the Company will reimburse the Underwriters severally upon
demand for all out-of-pocket expenses (including reasonable fees and
disbursements of counsel) that shall have been incurred by them in connection
with the proposed purchase and sale of the Securities.
7. Indemnification and Contribution.
(a) The Company agrees to indemnify and hold harmless each Underwriter
and each person who controls any Underwriter within the meaning of either the
Act or the Exchange Act against any and all losses, claims, damages or
liabilities, joint or several, to which they or any of them may become subject
under the Act, the Exchange Act or other Federal or state statutory law or
regulation, at common law or otherwise, insofar as such losses, claims, damages
or liabilities (or actions in respect thereof) arise out of or are based upon
any untrue statement or alleged untrue statement of a material fact contained
in the registration statement for the registration of the Securities as
originally filed or in any amendment thereof, or in the Basic Prospectus, any
Preliminary Final Prospectus or the Final Prospectus, or in any amendment
thereof or supplement thereto, or arise out of or are based upon the omission
or alleged omission to state therein a material fact required to be stated
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<PAGE> 20
therein or necessary to make the statements therein not misleading, and agrees
to reimburse each such indemnified party, as incurred, for any legal or other
expenses incurred by them in connection with investigating or defending any
such loss, claim, damage, liability or action; provided, however, that (i) the
Company will not be liable in any such case to the extent that any such loss,
claim, damage or liability arises out of or is based upon any such untrue
statement or alleged untrue statement or omission or alleged omission made
therein in reliance upon and in conformity with written information relating to
such Underwriter or the underwriting arrangements furnished to the Company by
such Underwriter specifically for use in the Basic Prospectus, any Preliminary
Prospectus and the Final Prospectus, and (ii) such indemnity with respect to
the Basic Prospectus or any Preliminary Final Prospectus shall not inure to the
benefit of any Underwriter (or any person controlling such Underwriter) from
whom the person asserting any such loss, claim, damage or liability purchased
the Securities which are the subject thereof if such person did not receive a
copy of the Final Prospectus excluding documents incorporated therein by
reference at or prior to the confirmation of the sale of such Securities to
such person in any case where such delivery is required by the Act, if such
Underwriter failed to make efforts generally consistent with the then
prevailing industry practice to effect such delivery and the Company had
previously furnished copies thereof to such Underwriter and the loss, claim,
damage or liability of such Underwriter results from the untrue statement or
alleged untrue statement or omission or alleged omission of a material fact
contained in the Basic Prospectus or any Preliminary Final Prospectus which was
corrected in the Final Prospectus. This indemnity agreement will be in
addition to any liability which the Company may otherwise have.
(b) Each Underwriter severally agrees to indemnify and hold harmless
the Company, each of its directors, each of its officers who signs the
Registration Statement, and each person who controls the Company within the
meaning of either the Act or the Exchange Act, to the same extent as the
foregoing indemnity from the Company to each Underwriter, but only with
reference to written information relating to such Underwriter or the
underwriting arrangements furnished to the Company by such Underwriter
specifically for use in the documents referred to in the foregoing indemnity.
This indemnity agreement will be in addition to any liability which any
Underwriter may otherwise have.
(c) Promptly after receipt by an indemnified party under Section 7(a)
or Section 7(b) of notice of the commencement of any action, such indemnified
party will, if a claim in respect thereof is to be made against the
indemnifying party under Section 7(a) or Section 7(b), notify the indemnifying
party in writing of the commencement thereof, but the omission so to notify the
indemnifying party will not relieve it from any liability which it may have to
any indemnified party otherwise than under Section 7(a) or Section 7(b). In
case any such action is brought against any indemnified party, and it notifies
the indemnifying party of the commencement thereof, the indemnifying party will
be entitled to participate therein, and to the extent that it may elect by
written notice delivered to the indemnified party promptly after receiving the
aforesaid notice from such indemnified party, to assume the defense
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<PAGE> 21
thereof, with counsel satisfactory to such indemnified party; provided,
however, that if the defendants in any such action include both the indemnified
party and the indemnifying party and the indemnified party shall have
reasonably concluded that there may be legal defenses available to it and/or
other indemnified parties which are different from or additional to those
available to the indemnifying party, the indemnified party or parties shall
have the right to select separate counsel to assert such legal defenses and to
otherwise participate in the defense of such action on behalf of such
indemnified party or parties. Upon receipt of notice from the indemnifying
party to such indemnified party of its election so as to assume the defense of
such action and approval by the indemnified party of counsel, the indemnifying
party will not be liable to such indemnified party under this Section 7 for any
legal or other expenses subsequently incurred by such indemnified party in
connection with the defense thereof unless (i) the indemnified party shall have
employed separate counsel in connection with the assertion of legal defenses in
accordance with the proviso to the next preceding sentence (it being
understood, however, that the indemnifying party shall not be liable for the
expenses of more than one separate counsel, approved by the Underwriters in the
case of paragraph (a) of this Section 7, representing the indemnified parties
under such paragraph (a) who are parties to such action), (ii) the indemnifying
party shall not have employed counsel satisfactory to the indemnified party to
represent the indemnified party within a reasonable time after notice of
commencement of the action or (iii) the indemnifying party has authorized the
employment of counsel for the indemnified party at the expense of the
indemnifying party; and except that, if clause (i) or (iii) is applicable, such
liability shall be only in respect of the counsel referred to in such clause
(i) or (iii).
(d) If the indemnification provided for in this Section 7 is
unavailable to or insufficient to hold harmless an indemnified party under
subsection (a) or (b) above in respect of any losses, claims, damages or
liabilities (or actions in respect thereof) referred to therein, then each
indemnifying party shall contribute to the amount paid or payable by such
indemnified party as a result of such losses, claims, damages or liabilities
(or actions in respect thereof) in such proportion as is appropriate to reflect
the relative benefits received by the Company on the one hand and the
Underwriters of the Securities on the other from the offering of the Securities
to which such loss, claim, damage or liability (or action in respect thereof)
relates. If, however, the allocation provided by the immediately preceding
sentence is not permitted by applicable law or if the indemnified party failed
to give the notice required under subsection (c) above, then each indemnifying
party shall contribute to such amount paid or payable by such indemnified party
in such proportion as is appropriate to reflect not only such relative benefits
but also the relative fault of the Company on the one hand and the Underwriters
of the Securities on the other in connection with the statements or omissions
which resulted in such losses, claims, damages or liabilities (or action in
respect thereof), as well as any other relevant equitable considerations. The
relative benefits received by the Company on the one hand and such Underwriters
on the other shall be deemed to be in the same proportion as the total net
proceeds from such offering (before deducting expenses) received by the Company
bear to the total underwriting discounts and commissions received
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<PAGE> 22
by such Underwriters. The relative fault shall be determined by reference to,
among other things, whether the untrue or alleged untrue statement of a
material fact or the omission or alleged omission to state a material fact
relates to information supplied by the Company on the one hand or such
Underwriters on the other and the parties' relative intent, knowledge, access
to information and opportunity to correct or prevent such statement or
omission. The Company and the Underwriters agree that it would not be just and
equitable if contribution pursuant to this subsection (d) were determined by
pro rata allocation or by any other method of allocation which does not take
account of the equitable considerations referred to above in this subsection
(d). The amount paid or payable by an indemnified party as a result of the
losses, claims, damages or liabilities (or actions in respect thereof) referred
to above in this subsection (d) shall be deemed to include any legal or other
expenses reasonably incurred by such indemnified party in connection with
investigating or defending any such action or claim. Notwithstanding the
provisions of this subsection (d), no Underwriter shall be required to
contribute any amount in excess of the amount by which the total price at which
the applicable Securities underwritten by it and distributed to the public were
offered to the public exceeds the amount of any damages which such Underwriter
has otherwise been required to pay by reason of such untrue or alleged untrue
statement or omission or alleged omission. No person guilty of fraudulent
misrepresentation (within the meaning of Section 11 (f) of the Act) shall be
entitled to contribution from any person who was not guilty of such fraudulent
misrepresentation. The obligations of the Underwriters for Securities in this
subsection (d) to contribute are several in proportion to their respective
obligations with respect to such Securities and not joint.
8. Default by an Underwriter. (a) If any Underwriter shall default in its
obligation to purchase the Securities which it has agreed to purchase under the
Pricing Agreement relating to such Securities, the Representatives may in their
discretion arrange for themselves or another party or other parties to purchase
such Securities on the terms contained herein. If within thirty-six hours
after such default by any Underwriter the Representatives do not arrange for
the purchase of such Securities, then the Company shall be entitled to a
further period of thirty-six hours within which to procure another party or
other parties satisfactory to the Representatives to purchase such Securities
on such terms. In the event that, within the respective prescribed period, the
Representatives notify the Company that they have so arranged for the purchase
of such Securities, or the Company notifies the Representatives that it has so
arranged for the purchase of such Securities, the Representatives or the
Company shall have the right to postpone the Closing Date for such Securities
for a period of not more than seven days, in order to effect whatever changes
may thereby be made necessary in the Registration Statement or the Prospectus
as amended or supplemented or in any other documents or arrangements, and the
Company agrees to file promptly any amendments or supplements to the
Registration Statement or the Prospectus which in the opinion of the
Representatives may thereby be made necessary. The term "Underwriter" as used
in this Agreement shall include any person substituted under this Section 8
with like effect as if such person had originally been a party to the Pricing
Agreement with respect to such Securities.
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<PAGE> 23
(b) If, after giving effect to any arrangements for the purchase of the
Securities of a defaulting Underwriter or Underwriters by the Representatives
and the Company as provided in subsection (a) above, the aggregate principal
amount of such Securities which remains unpurchased does not exceed
one-eleventh of the aggregate principal amount of the Securities, then the
Company shall have the right to require each non-defaulting Underwriter to
purchase the principal amount of Securities which such Underwriter agreed to
purchase under the Pricing Agreement relating to such Securities and, in
addition, to require each non-defaulting Underwriter to purchase its pro rata
share (based on the principal amount of Securities which such Underwriter
agreed to purchase under such Pricing Agreement) of the Securities of such
defaulting Underwriter or Underwriters for which such arrangements have not
been made; but nothing herein shall relieve a defaulting Underwriter from
liability for its default.
(c) If, after giving effect to any arrangements for the purchase of the
Securities of a defaulting Underwriter or Underwriters by the Representatives
and the Company as provided in subsection (a) above, the aggregate principal
amount of Securities which remains unpurchased exceeds one-eleventh of the
aggregate principal amount of the Securities, as referred to in subsection (b)
above, or if the Company shall not exercise the right described in subsection
(b) above to require non-defaulting Underwriters to purchase Securities of a
defaulting Underwriter or Underwriters, then the Pricing Agreement relating to
such Securities shall thereupon terminate, without liability on the part of any
non-defaulting Underwriter or the Company; but nothing herein shall relieve a
defaulting Underwriter from liability for its default.
9. Termination. This Agreement shall be subject to termination in the
absolute discretion of the Underwriters, by notice given to the Company prior
to delivery of and payment for the Securities, if prior to such time (i)
trading in the Company's Common Stock or any preferred stock or preferred
securities shall have been suspended or materially limited by the Commission or
the New York Stock Exchange or trading in securities generally on the New York
Stock Exchange shall have been suspended or limited or minimum prices shall
have been established on such Exchange, (ii) a banking moratorium shall have
been declared either by Federal or New York State authorities, or (iii) there
shall have occurred any outbreak or escalation of hostilities or any change in
markets in the United States or any calamity or crisis that, in the judgment of
the Underwriters, makes it impracticable or inadvisable to market the
Securities in the manner contemplated.
10. Representations and Indemnities to survive. The respective agreement,
representations, warranties, indemnities and other statements of the Company or
its officers and of the Underwriters set forth in or made pursuant to this
Agreement will remain in full force and effect, regardless of any investigation
made by or on behalf of any Underwriter or the Company or any of the officers,
directors or controlling persons referred to in Section 7
-23-
<PAGE> 24
hereof, and will survive delivery of and payment for the Securities. The
provisions of Sections 6 and 7 hereof shall survive the termination or
cancellation of this Agreement.
11. Notices. All communications hereunder will be in writing and
effective only on receipt, and, if sent to the Underwriters, will be mailed,
delivered, telecopied or telegraphed and confirmed to them, at the address
specified in Schedule I hereto; or, if sent to the Company, will be mailed,
delivered, telecopied or telegraphed to and confirmed with it at Lincoln
National Corporation, 200 East Berry Street, Fort Wayne, Indiana 46802,
telecopy number (219) 455-1785, attention of the Legal Department.
12. Successors. This Agreement will inure to the benefit of and be
binding upon the parties hereto and their respective successors and the
officers and directors and controlling persons referred to in Section 7 hereof,
and no other person will have any right or obligation hereunder.
13. THIS AGREEMENT WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF NEW YORK.
Very truly yours,
Lincoln National Corporation
/s/ Janet C. Whitney
By:______________________________
Name: Janet C. Whitney
Title: Vice President and Treasurer
-24-
<PAGE> 25
ANNEX I
Pricing Agreement
____________, 1998
Ladies and Gentlemen:
Lincoln National Corporation, an Indiana corporation (the "Company"),
proposes, subject to the terms and conditions stated herein (this "Agreement")
and in the Underwriting Agreement, dated March 19, 1998 (the "Underwriting
Agreement") executed by the Company, to issue and sell to the Underwriters
named in Schedule I hereto (the "Underwriters") the Securities specified in
Schedule II hereto (the "Designated Securities"). Each of the provisions of
the Underwriting Agreement is incorporated herein by reference in its entirety,
and shall be deemed to be a part of this Agreement to the same extent as if
such provisions had been set forth in full herein; and each of the
representations and warranties set forth therein shall be deemed to have been
made at and as of the date of this Agreement, except that each representation
and warranty which refers to the Final Prospectus in Section 2 of the
Underwriting Agreement shall be deemed to be a representation or warranty as of
the date of the Underwriting Agreement in relation to the Final Prospectus (as
therein defined), and also a representation and warranty as of the date of this
Agreement in relation to the Final Prospectus as amended or supplemented
relating to the Designated Securities which are the subject of this Agreement.
Each reference to the Representatives herein and in the provisions of the
Underwriting Agreement so incorporated by reference shall be deemed to refer to
you. Unless otherwise defined herein, terms defined in the Underwriting
Agreement are used herein as therein defined. The Representatives designated
to act on behalf of the Representatives and on behalf of each of the
Underwriters of the Designated Securities pursuant to the Underwriting
Agreement and the address of the Representatives are set forth at the end of
Schedule II hereto.
An amendment to the Registration Statement, or a supplement to the Basic
Prospectus, as the case may be, relating to the Designated Securities, in the
form heretofore delivered to you is now proposed to be filed with the
Commission.
Subject to the terms and conditions set forth herein and in the
Underwriting Agreement incorporated herein by reference, the Company agrees to
issue and sell to each
-25-
<PAGE> 26
of the Underwriters, and each of the Underwriters agrees, severally and not
jointly, to purchase from the Company, at the time and place and at the
purchase price to the Underwriters set forth in Schedule II hereto, the
principal amount or the number of shares, as the case may be, of Designated
Securities set forth opposite the name of such Underwriter in Schedule I
hereto.
If the foregoing is in accordance with your understanding, please sign and
return to us six counterparts hereof, and upon acceptance hereof by you, on
behalf of each of the Underwriters, this letter and such acceptance hereof,
including the provisions of the Underwriting Agreement incorporated herein by
reference, constitute a binding agreement between each of the Underwriters and
the Company. It is understood that your acceptance of this letter on behalf of
each of the Underwriters is or will be pursuant to the authority set forth in a
form of Agreement among Underwriters, the form of which shall be submitted to
the Company for examination upon request, but without warranty on the part of
the Representatives as to the authority of the signers hereof.
Very truly yours,
LINCOLN NATIONAL CORPORATION
By:____________________________
Accepted as of the date hereof:
By:_____________________________
-26-
<PAGE> 27
SCHEDULE I
<TABLE>
<CAPTION>
Principal Amount or Number of
Underwriters Shares of Securities to Be Purchased
- ------------ ------------------------------------
<S> <C>
$
Total $
</TABLE>
-27-
<PAGE> 28
SCHEDULE II
Underwriting Agreement dated March 19, 1998
Registration Statement No. ____________
Underwriters:
Title, Purchase Price and Description of Securities:
Title:
Aggregate principal amount:
Number of Shares:
Price to the public:
Purchase price (include accrued interest or amortization, if any):
Sinking fund provisions:
Redemption provisions:
Other provisions:
Maturity:
Interest Rate:
Interest Payment Dates:
Closing Date, Time and Location:
-28-
<PAGE> 29
Delayed Delivery Arrangements:
Modification of items to be covered by the letter from Ernst & Young LLP
delivered pursuant to Section 5(g) at the time this Agreement is executed:
Addresses of Underwriters for purposes of this Agreement:
-29-
<PAGE> 30
ANNEX II
Delayed Delivery Contract
Ladies and Gentlemen:
The undersigned hereby agrees to purchase from Lincoln National
Corporation (the "Company"), and the Company agrees to sell to the undersigned,
on ___________, 19__ (the "Delivery Date"), $_________ principal amount
[_________ shares] of the Company's __________ (the "Securities") offered by
the Company's Prospectus dated __________ __, 19__, related Prospectus
Supplement dated ________ __, 19__, receipt of a copy of which is __% of the
principal amount thereof, plus [accrued interest] [amortization of original
issue discount], if any, thereon from ________ __, 19__, to the date of payment
and delivery, $____ per share and on the further terms and conditions set
forth in this contract.
Payment for the Securities to be purchased by the undersigned shall be
made on or before 11:00 AM, New York City time, on the Delivery Date to or upon
the order of the Company in New York Clearing House (next day) funds, at your
office or at such other place as shall be agreed between the Company and the
undersigned, upon delivery to the undersigned of the Securities in definitive
fully registered form and in such authorized denominations and registered in
such names as the undersigned may request by written or telegraphic
communication addressed to the Company not less than five full business days
prior to the Delivery Date. If no request is received, the Securities will be
registered in the name of the undersigned and issued in a denomination equal to
the aggregate principal amount of Securities to be purchased by the undersigned
on the Delivery Date.
The obligation of the undersigned to take delivery of and make payment for
Securities on the Delivery Date, and the obligation of the Company to sell and
deliver Securities on the Delivery Date, shall be subject to the conditions
(and neither party shall incur any liability by reason of the failure thereof)
that (1) the purchase of Securities to be made by the undersigned, which
purchase the undersigned represents is not prohibited on the date hereof, shall
not on the Delivery Date be prohibited under the laws of the jurisdiction to
which the undersigned is subject, and (2) the Company, on or before the
Delivery Date, shall have sold to certain underwriters (the "Underwriters")
such principal amount of the Securities as is to be sold to them pursuant to
the Underwriting Agreement referred to in the Prospectus and Prospectus
Supplement mentioned above. Promptly after completion of such sale to the
Underwriters, the Company will mail or deliver to the undersigned at its
address set forth below notice to such effect, accompanied by a copy of the
opinion of counsel for the
-30-
<PAGE> 31
Company delivered to the Underwriters in connection therewith. The obligation
of the undersigned to take delivery of and make payment for the Securities, and
the obligation of the Company to cause the Securities to be sold and delivered,
shall not be affected by the failure of any purchaser to take delivery of and
make payment for the Securities pursuant to other contracts similar to this
contract.
The undersigned represents and warrants that, as of the date of this
contract, the undersigned is not prohibited from purchasing the Securities
hereby agreed to be purchased by it under the laws of the jurisdiction or
jurisdictions to which the undersigned is subject.
This contract will inure to the benefit of and be binding upon the parties
hereto and their respective successors, but will not be assignable by either
party hereto without the written consent of the other.
It is understood that acceptance of this contract and other similar
contracts is in the Company's sole discretion and, without limiting the
foregoing, need not be on a first come, first served basis. If this contract
is acceptable to the Company, it is required that the Company sign the form of
acceptance below and mail or deliver one of the counterparts hereof to the
undersigned at its address set forth below. This will become a binding
contract between the Company and the undersigned, as of the date first above
written, when such counterpart is so mailed or delivered.
This agreement shall be governed by and construed in accordance with the
laws of the State of New York.
_______________________________
(Name of Purchaser)
(Signature and Title of Officer)
_______________________________
Address
Accepted:
LINCOLN NATIONAL CORPORATION
By:________________________________
(Authorized Signature)
-31-
<PAGE> 1
EXHIBIT 1.2
Pricing Agreement
March 19, 1998
Ladies and Gentlemen:
Lincoln National Corporation, an Indiana corporation (the "Company"),
proposes, subject to the terms and conditions stated herein (this "Agreement")
and in the Underwriting Agreement, dated March 19, 1998 (the "Underwriting
Agreement") executed by the Company, to issue and sell to the Underwriters
named in Schedule I hereto (the "'Underwriters") the Securities specified in
Schedule II hereto (the "Designated Securities"). Each of the provisions of
the Underwriting Agreement is incorporated herein by reference in its entirety,
and shall be deemed to be a part of this Agreement to the same extent as if
such provisions had been set forth in full herein; and each of the
representations and warranties set forth therein shall be deemed to have been
made at and as of the date of this Agreement, except that each representation,
and warranty which refers to the Final Prospectus in Section 1 of the
Underwriting Agreement shall be deemed to be a representation or warranty as of
the date of the Underwriting Agreement in relation to the Final Prospectus (as
therein defined), and also a representation and warranty as of the date of this
Agreement in relation to the Final Prospectus as amended or supplemented
relating to the Designated Securities which are the subject of this Agreement.
Each reference to the Representatives herein and in the provisions of the
Underwriting Agreement so incorporated by reference shall be deemed to refer to
you. Unless otherwise defined herein, terms defined in the Underwriting
Agreement are used herein as therein defined. The Representatives designated
to act on behalf of the Representatives and on behalf of each of the
Underwriters of the Designated Securities pursuant to the Underwriting
Agreement and the address of the Representatives are set forth at the end of
Schedule II hereto.
An amendment to the Registration Statement, or a supplement to the Basic
Prospectus, as the case may be, relating to the Designated Securities, in the
form heretofore delivered to you is now proposed to be filed with the
Commission.
Subject to the terms and conditions set forth herein and in the
Underwriting Agreement incorporated herein by reference, the Company agrees to
issue and sell to each of the Underwriters, and each of the Underwriters
agrees, severally and not jointly, to purchase from the Company, at the time
and place and at the purchase price to the Underwriters set forth in Schedule
II hereto, the principal amount or the number of shares, as the case may be, of
Designated Securities set forth opposite the name of such Underwriter in
Schedule I hereto.
If the foregoing is in accordance with your understanding, please sign and
return to us six counterparts hereof, and upon acceptance hereof by you, on
behalf of each of the Underwriters, this
<PAGE> 2
letter and such acceptance hereof, including the provisions of the Underwriting
Agreement incorporated herein by reference, constitute a binding agreement
between each of the Underwriters and the Company. It is understood that your
acceptance of this letter on behalf of each of the Underwriters is or will be
pursuant to the authority set forth in a form of Agreement among Underwriters,
the form of which shall be submitted to the Company for examination upon
request, but without warranty on the part of the Representatives as to the
authority of the signers hereof.
Very truly yours,
LINCOLN NATIONAL CORPORATION
By: /s/ Janet C. Whitney
-------------------------------
Title: Vice President and Treasurer
----------------------------
Accepted as of the date hereof:
Merrill Lynch & Co.
Merrill Lynch, Pierce, Fenner & Smith Incorporated
Goldman, Sachs & Co.
Morgan Stanley & Co. Incorporated
By: Merrill Lynch, Pierce, Fenner &
Smith Incorporated
On behalf of each of the Underwriters
By: /s/ John P. Tullsen, Jr.
-----------------------------------------
Title: Vice President
--------------------------------------
-2-
<PAGE> 3
SCHEDULE I
<TABLE>
<CAPTION>
Underwriters Principal Amount Principal Amount
- ------------ of 2008 Notes of 2018 Notes
to be Purchased to be Purchased
---------------- ----------------
<S> <C> <C>
Merrill Lynch, Pierce, Fenner &
Smith Incorporated................... $ 34,000,000 $ 67,000,000
Goldman, Sachs & Co....................... 33,000,000 66,500,000
Morgan Stanley & Co. Incorporated......... 33,000,000 66,500,000
------------ ------------
Total............................. $100,000,000 $200,000,000
============ ============
</TABLE>
<PAGE> 4
SCHEDULE II
Underwriting Agreement dated March 19, 1998
Registration Statement No. 33-59785
Underwriters:
Merrill Lynch, Pierce, Fenner & Smith
Incorporated
Goldman, Sachs & Co.
Morgan Stanley & Co. Incorporated
Title, Purchase Price and Description of Securities:
Title: 6 1/2% Notes due 2008 (the "2008 Notes")
7% Notes due 2018 (the "2018 Notes")
Aggregate principal amount: 2008 Notes: $100,000,000
2018 Notes: $200,000,000
Number of Shares: Not applicable
Price to the public: 2008 Notes: 99.662%
2018 Notes: 99.768%
Purchase price (include accrued interest or amortization, if any):
2008 Notes: 99.012%
2018 Notes: 98.893%
Underwriting Discount: 2008 Notes: .650%
2018 Notes: .875%
Sinking fund provisions: None
Redemption provisions: The 2008 Notes and the 2018 Notes are not
redeemable prior to maturity.
Other provisions: None
Maturity: 2008 Notes: March 15, 2008
2018 Notes: March 15, 2018
<PAGE> 1
EXHIBIT 4.1
LINCOLN NATIONAL CORPORATION
6 1/2% Note due March 15, 2008
[Registered] CUSIP 534187 AK 5
No. R-1 U.S. $100,000,000
THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE
INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE
NAME OF A DEPOSITORY OR A NOMINEE THEREOF. THIS SECURITY MAY
NOT BE EXCHANGED IN WHOLE OR IN PART FOR A SECURITY
REGISTERED, AND NO TRANSFER OF THIS SECURITY IN WHOLE OR IN
PART MAY BE REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN
SUCH DEPOSITORY OR A NOMINEE THEREOF, EXCEPT IN THE LIMITED
CIRCUMSTANCES DESCRIBED IN THE INDENTURE.
UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE
OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION
("DTC"), TO THE COMPANY (AS DEFINED BELOW) OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY NOTE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH NAME
AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND
ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS
IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY
OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.
Lincoln National Corporation, a corporation organized and existing under
the laws of the State of Indiana (hereinafter called the "Company", which term
includes any successor corporation under the Indenture hereinafter referred
to), for value received, hereby promises to pay to Cede & Co., or registered
assigns, the principal sum of ONE HUNDRED MILLION DOLLARS ($100,000,000) on
March 15, 2008 and to pay interest thereon from March 24, 1998 or from the most
recent interest payment date to which interest has been paid or duly provided
for, semi-annually on March 15 and September 15, in each year, commencing on
September 15, 1998, at the rate of 6 1/2% per annum until the principal hereof
is paid or such payment is duly
<PAGE> 2
provided for. The interest 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 Note (or one or more predecessor Notes) is registered
at the close of business on the next preceding March 1 and September 1,
respectively (each respectively a "Record Date"), subject to certain exceptions
as provided in the Indenture. Payment of the principal of, and interest on,
this Note will be made at the designated office or agency of the Company
maintained for such purpose in The City of New York, New York in such coin or
currency of the United States of America as at the time of payment is legal
tender for payment of public and private debt or, at the option of the Company,
interest so payable may be paid by check to the order of said Holder mailed to
his address appearing on the Security Register. Any interest not so punctually
paid or duly provided for shall be payable as provided in the Note. Interest
on this Note will be computed on the basis of a 360-day year of twelve 30-day
months.
Reference is hereby made to the further provisions of this Note set
forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.
Unless the certificate of authentication hereon has been executed by
the Trustee by manual signature, this Note shall not be entitled to any benefit
under the Indenture or be valid or obligatory for any purpose.
IN WITNESS WHEREOF, Lincoln National Corporation has caused this
instrument to be duly executed under its corporate seal.
LINCOLN NATIONAL CORPORATION
By
Title:
Attest:
Secretary
Dated: March ___, 1998
<PAGE> 3
Trustee's Certificate of Authentication
This is one of the Securities of the series designated herein and
referred to in the within-mentioned Indenture.
THE BANK OF NEW YORK, as Trustee
By
Authorized Signatory
<PAGE> 4
[Reverse of Note]
LINCOLN NATIONAL CORPORATION
6 1/2% Note due March 15, 2008
This Note is one of a duly authorized issue of Securities of the
Company of a series hereinafter specified, all issued and to be issued under an
Indenture dated as of September 15, 1994 (herein called the "Indenture"),
between the Company and The Bank of New York, as Trustee (herein called the
"Trustee", which term includes any successor Trustee under the Indenture), to
which Indenture and all indentures supplemental thereto reference is hereby
made for a statement of the respective rights, limitations of rights, duties
and immunities thereunder of the Company, the Trustee and the Holder of the
Securities and the terms upon which the Securities are, and are to be,
authenticated and delivered. The Securities may be issued in one or more
series, the terms of which different series may vary as provided in the
Indenture. This Note is one of a series of the Securities of the Company
designated as its 6 1/2% Notes due March 15, 2008 (herein called the "Notes"),
limited in aggregate principal amount to $100,000,000, except as otherwise
provided in the Indenture.
The Notes are not redeemable prior to maturity and are not entitled to
any sinking fund. If an Event of Default shall occur with respect to the
Notes, the principal of the Notes may be declared due and payable in the manner
and with the effect provided in the Indenture.
The Indenture contains provisions for defeasance at any time of the
Notes, upon which the Company, at its option, shall be deemed to have been
Discharged from its obligations with respect to the Notes or shall cease to be
under any obligation to comply with certain restrictive covenants of the
Indenture.
Subject to certain exceptions, the Indenture or the Notes may be
amended or supplemented with the consent of the Holders of at least a majority
in principal amount of the Outstanding Securities affected by such amendment or
supplement voting as one class. Without the consent of any Holder, the Company
and the Trustee may amend or supplement the Indenture or the Notes to, among
other things, cure any ambiguity, defect or inconsistency. Subject to certain
exceptions, any past default or Event of Default may be waived by the Holders
of at least a majority in principal amount of the Outstanding Securities of any
series affected on behalf of the Holders of the Securities of that series or
the Holders of at least a majority in principal amount of all the Outstanding
Securities voting as one class. Any such consent or waiver by the Holder of
this Note shall be conclusive and binding upon such Holder and upon all future
Holders of this Note and of any Note issued upon the transfer hereof or in
exchange herefor or in lieu hereof whether or not notation of such consent or
waiver is made upon this Note or upon any Note issued upon the transfer hereof
or in exchange herefor or in lieu hereof.
No reference herein to the Indenture and no provision of this Note 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 Note
at the times, place, and rate, and in the coin or currency, herein prescribed.
<PAGE> 5
As provided in the Indenture and subject to certain limitations
therein set forth, this Note is transferable on the Security Register of the
Company, upon surrender of this Note for transfer at the office or agency of
the Company in The City of New York, New York, duly endorsed by, or accompanied
by a written instrument of transfer in form satisfactory to the Company and the
Registrar, duly executed by the Holder hereof or his attorney duly authorized
in writing, and thereupon one or more new Notes, of authorized denominations
and for the same aggregate principal amount, will be issued to the designated
transferee or transferees.
The Notes are issuable in registered form without coupons in
denominations of $1,000 and integral multiples thereof. As provided in the
Indenture and subject to certain limitations therein set forth, this Note is
exchangeable for a like aggregate principal amount of Notes of different
authorized denominations as requested by the Holder surrendering the same.
No service charge will be made for any such transfer or exchange, but
the Company may require payment of a sum sufficient to cover any tax or other
governmental charge payable in connection therewith.
The Company, the Trustee and any agent of the Company or the Trustee
may treat the person in whose name this Note is registered as the owner hereof
for the purpose of receiving payment as herein provided and for all other
purposes whether or not this Note be overdue, and neither the Company, the
Trustee nor any such agent shall be affected by notice to the contrary.
No recourse shall be had for the payment of the principal of, or the
interest on, this Note or for any claim based hereon or otherwise in any manner
in respect hereof, or in respect of the Indenture, against any incorporator,
shareholder, officer or director, as such, past, present or future, of the
Company or of any predecessor or successor corporation, whether by virtue of
any constitutional provision or statute or rule of law, or by the enforcement
of any assessment or penalty or in any other manner, all such liability being
expressly waived and released by the acceptance hereof and as part of the
consideration for the issue hereof.
All capitalized terms used in this Note which are defined in the
Indenture shall have the meanings assigned to them in the Indenture.
<PAGE> 1
EXHIBIT 4.2
LINCOLN NATIONAL CORPORATION
7% Note due March 15, 2018
[Registered] CUSIP 534187 AL 3
No. R- 1 U.S. $200,000,000
THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE
INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE
NAME OF A DEPOSITORY OR A NOMINEE THEREOF. THIS SECURITY MAY
NOT BE EXCHANGED IN WHOLE OR IN PART FOR A SECURITY
REGISTERED, AND NO TRANSFER OF THIS SECURITY IN WHOLE OR IN
PART MAY BE REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN
SUCH DEPOSITORY OR A NOMINEE THEREOF, EXCEPT IN THE LIMITED
CIRCUMSTANCES DESCRIBED IN THE INDENTURE.
UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE
OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION
("DTC"), TO THE COMPANY (AS DEFINED BELOW) OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY NOTE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH NAME
AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND
ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS
IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY
OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.
Lincoln National Corporation, a corporation organized and existing under
the laws of the State of Indiana (hereinafter called the "Company", which term
includes any successor corporation under the Indenture hereinafter referred
to), for value received, hereby promises to pay to Cede & Co., or registered
assigns, the principal sum of TWO HUNDRED MILLION DOLLARS ($200,000,000) on
March 15, 2018 and to pay interest thereon from March 24, 1998 or from the most
recent interest payment date to which interest has been paid or duly provided
for, semi-annually on March 15 and September 15, in each year, commencing on
September 15, 1998, at the rate of 7% per annum until the principal hereof is
paid or such payment is duly
<PAGE> 2
provided for. The interest 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 Note (or one or more predecessor Notes) is registered
at the close of business on the next preceding March 1 and September 1,
respectively (each respectively a "Record Date"), subject to certain exceptions
as provided in the Indenture. Payment of the principal of, and interest on,
this Note will be made at the designated office or agency of the Company
maintained for such purpose in The City of New York, New York in such coin or
currency of the United States of America as at the time of payment is legal
tender for payment of public and private debt or, at the option of the Company,
interest so payable may be paid by check to the order of said Holder mailed to
his address appearing on the Security Register. Any interest not so punctually
paid or duly provided for shall be payable as provided in the Note. Interest
on this Note will be computed on the basis of a 360-day year of twelve 30-day
months.
Reference is hereby made to the further provisions of this Note set
forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.
Unless the certificate of authentication hereon has been executed by
the Trustee by manual signature, this Note shall not be entitled to any benefit
under the Indenture or be valid or obligatory for any purpose.
IN WITNESS WHEREOF, Lincoln National Corporation has caused this
instrument to be duly executed under its corporate seal.
LINCOLN NATIONAL CORPORATION
By
Title:
Attest:
Secretary
Dated: March ___, 1998
<PAGE> 3
Trustee's Certificate of Authentication
This is one of the Securities of the series designated herein and
referred to in the within-mentioned Indenture.
THE BANK OF NEW YORK, as
Trustee
By
Authorized Signatory
<PAGE> 4
[Reverse of Note]
LINCOLN NATIONAL CORPORATION
7% Note due March 15, 2018
This Note is one of a duly authorized issue of Securities of the
Company of a series hereinafter specified, all issued and to be issued under an
Indenture dated as of September 15, 1994 (herein called the "Indenture"),
between the Company and The Bank of New York, as Trustee (herein called the
"Trustee", which term includes any successor Trustee under the Indenture), to
which Indenture and all indentures supplemental thereto reference is hereby
made for a statement of the respective rights, limitations of rights, duties
and immunities thereunder of the Company, the Trustee and the Holder of the
Securities and the terms upon which the Securities are, and are to be,
authenticated and delivered. The Securities may be issued in one or more
series, the terms of which different series may vary as provided in the
Indenture. This Note is one of a series of the Securities of the Company
designated as its 7% Notes due March 15, 2018 (herein called the "Notes"),
limited in aggregate principal amount to $200,000,000, except as otherwise
provided in the Indenture.
The Notes are not redeemable prior to maturity and are not entitled to
any sinking fund. If an Event of Default shall occur with respect to the
Notes, the principal of the Notes may be declared due and payable in the manner
and with the effect provided in the Indenture.
The Indenture contains provisions for defeasance at any time of the
Notes, upon which the Company, at its option, shall be deemed to have been
Discharged from its obligations with respect to the Notes or shall cease to be
under any obligation to comply with certain restrictive covenants of the
Indenture.
Subject to certain exceptions, the Indenture or the Notes may be
amended or supplemented with the consent of the Holders of at least a majority
in principal amount of the Outstanding Securities affected by such amendment or
supplement voting as one class. Without the consent of any Holder, the Company
and the Trustee may amend or supplement the Indenture or the Notes to, among
other things, cure any ambiguity, defect or inconsistency. Subject to certain
exceptions, any past default or Event of Default may be waived by the Holders
of at least a majority in principal amount of the Outstanding Securities of any
series affected on behalf of the Holders of the Securities of that series or
the Holders of at least a majority in principal amount of all the Outstanding
Securities voting as one class. Any such consent or waiver by the Holder of
this Note shall be conclusive and binding upon such Holder and upon all future
Holders of this Note and of any Note issued upon the transfer hereof or in
exchange herefor or in lieu hereof whether or not notation of such consent or
waiver is made upon this Note or upon any Note issued upon the transfer hereof
or in exchange herefor or in lieu hereof.
No reference herein to the Indenture and no provision of this Note 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 Note
at the times, place, and rate, and in the coin or currency, herein prescribed.
<PAGE> 5
As provided in the Indenture and subject to certain limitations
therein set forth, this Note is transferable on the Security Register of the
Company, upon surrender of this Note for transfer at the office or agency of
the Company in The City of New York, New York, duly endorsed by, or accompanied
by a written instrument of transfer in form satisfactory to the Company and the
Registrar, duly executed by the Holder hereof or his attorney duly authorized
in writing, and thereupon one or more new Notes, of authorized denominations
and for the same aggregate principal amount, will be issued to the designated
transferee or transferees.
The Notes are issuable in registered form without coupons in
denominations of $1,000 and integral multiples thereof. As provided in the
Indenture and subject to certain limitations therein set forth, this Note is
exchangeable for a like aggregate principal amount of Notes of different
authorized denominations as requested by the Holder surrendering the same.
No service charge will be made for any such transfer or exchange, but
the Company may require payment of a sum sufficient to cover any tax or other
governmental charge payable in connection therewith.
The Company, the Trustee and any agent of the Company or the Trustee
may treat the person in whose name this Note is registered as the owner hereof
for the purpose of receiving payment as herein provided and for all other
purposes whether or not this Note be overdue, and neither the Company, the
Trustee nor any such agent shall be affected by notice to the contrary.
No recourse shall be had for the payment of the principal of, or the
interest on, this Note or for any claim based hereon or otherwise in any manner
in respect hereof, or in respect of the Indenture, against any incorporator,
shareholder, officer or director, as such, past, present or future, of the
Company or of any predecessor or successor corporation, whether by virtue of
any constitutional provision or statute or rule of law, or by the enforcement
of any assessment or penalty or in any other manner, all such liability being
expressly waived and released by the acceptance hereof and as part of the
consideration for the issue hereof.
All capitalized terms used in this Note which are defined in the
Indenture shall have the meanings assigned to them in the Indenture.
