<PAGE>
AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON OCTOBER 15, 1996
REGISTRATION STATEMENT NO. 333-
POST-EFFECTIVE AMENDMENT NO. 1 TO REGISTRATION STATEMENT NO. 33-50025
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- -------------------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
---------------
FORM S-3
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
---------------
MCDONALD'S CORPORATION
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
36-2361282
DELAWARE (I.R.S. EMPLOYER IDENTIFICATION
NUMBER)
(STATE OR OTHER JURISDICTION OF
INCORPORATION OR ORGANIZATION)
ONE MCDONALD'S PLAZA OAK BROOK, ILLINOIS 60521 (630) 575-3000
(ADDRESS, INCLUDING ZIP CODE, AND TELEPHONE NUMBER, INCLUDING AREA CODE, OF
REGISTRANT'S PRINCIPAL EXECUTIVE OFFICES)
---------------
GLORIA SANTONA
VICE PRESIDENT,
ASSOCIATE GENERAL COUNSEL
AND SECRETARY
MCDONALD'S CORPORATION
ONE MCDONALD'S PLAZA
OAK BROOK, ILLINOIS 60521
(630) 575-3000
(NAME, ADDRESS, INCLUDING ZIP CODE, AND TELEPHONE NUMBER, INCLUDING AREA CODE,
OF AGENT FOR SERVICE)
COPIES TO:
GEORGE C. MCKANN GARDNER, CARTON & DOUGLAS 321 NORTH CLARK STREETQUAKER TOWER
CHICAGO, ILLINOIS 60610 (312) 245-8417
APPROXIMATE DATE OF COMMENCEMENT OF PROPOSED SALE TO THE PUBLIC: From time
to time after the effective date of this Registration Statement as determined
by market conditions.
If the only securities being registered on this Form are being offered
pursuant to dividend or interest reinvestment plans, check the following
box. [_]
If any of the securities being registered on this Form are to be offered on
a delayed or continuous basis pursuant to Rule 415 under the Securities Act of
1933 (the "Securities Act"), other than securities offered only in connection
with dividend or interest reinvestment plans, check the following box. [X]
If this Form is filed to register additional securities for an offering
pursuant to Rule 462(b) under the Securities Act, check the following box and
list the Securities Act registration statement number of the earlier effective
registration statement for the same offering. [_]
If this Form is a post-effective amendment filed pursuant to Rule 462(c)
under the Securities Act, check the following box and list the Securities Act
registration statement number of the earlier effective registration statement
for the same offering. [_]
If delivery of the prospectus is expected to be made pursuant to Rule 434
under the Securities Act, please check the following box. [_]
---------------
CALCULATION OF REGISTRATION FEE
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- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PROPOSED
PROPOSED MAXIMUM
TITLE OF EACH CLASS OF AMOUNT MAXIMUM AGGREGATE
SECURITIES TO BE TO BE OFFERING PRICE OFFERING AMOUNT OF
REGISTERED REGISTERED PER UNIT(1)(2) PRICE(1)(2) REGISTRATION FEE
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<S> <C> <C> <C> <C>
Debt Securities........ $1,000,000,000(3) 100% $1,000,000,000 $344,830
</TABLE>
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(1) Estimated solely for the purpose of calculating the registration fee
pursuant to Rule 457(o).
(2) Exclusive of accrued interest, if any.
(3) Or, if any Debt Securities are issued at a discount, such greater amount
as shall result in an aggregate offering price to the public which shall
not exceed $1,000,000,000.
---------------
THE REGISTRANT HEREBY AMENDS THIS REGISTRATION STATEMENT ON SUCH DATE OR
DATES AS MAY BE NECESSARY TO DELAY ITS EFFECTIVE DATE UNTIL THE REGISTRANT
SHALL FILE A FURTHER AMENDMENT WHICH SPECIFICALLY STATES THAT THIS
REGISTRATION STATEMENT SHALL THEREAFTER BECOME EFFECTIVE IN ACCORDANCE WITH
SECTION 8(A) OF THE SECURITIES ACT OR UNTIL THE REGISTRATION STATEMENT SHALL
BECOME EFFECTIVE ON SUCH DATE AS THE COMMISSION, ACTING PURSUANT TO SAID
SECTION 8(A), MAY DETERMINE.
PURSUANT TO THE PROVISIONS OF RULE 429 OF THE GENERAL RULES AND REGULATIONS
UNDER THE SECURITIES ACT, THE PROSPECTUS CONTAINED IN THIS REGISTRATION
STATEMENT ALSO RELATES TO THE SECURITIES REGISTERED PURSUANT TO THE
REGISTRANT'S REGISTRATION STATEMENT NO. 33-50025 ON FORM S-3 DECLARED
EFFECTIVE ON AUGUST 23, 1993. THIS REGISTRATION STATEMENT, WHICH IS A NEW
REGISTRATION STATEMENT, ALSO CONSTITUTES POST-EFFECTIVE AMENDMENT NO. 1 TO
REGISTRATION STATEMENT NO. 33-50025, AND SUCH POST-EFFECTIVE AMENDMENT NO. 1
SHALL HEREAFTER BECOME EFFECTIVE CONCURRENTLY WITH THE EFFECTIVENESS OF THIS
REGISTRATION STATEMENT AND IN ACCORDANCE WITH SECTION 8(C) OF THE SECURITIES
ACT.
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
<PAGE>
++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
+INFORMATION CONTAINED HEREIN IS SUBJECT TO COMPLETION OR AMENDMENT. A +
+REGISTRATION STATEMENT RELATING TO THESE SECURITIES HAS BEEN FILED WITH THE +
+SECURITIES AND EXCHANGE COMMISSION. THESE SECURITIES MAY NOT BE SOLD NOR MAY +
+OFFERS TO BUY BE ACCEPTED PRIOR TO THE TIME THE REGISTRATION STATEMENT +
+BECOMES EFFECTIVE. THIS PROSPECTUS SHALL NOT CONSTITUTE AN OFFER TO SELL OR +
+THE SOLICITATION OF AN OFFER TO BUY NOR SHALL THERE BE ANY SALE OF THESE +
+SECURITIES IN ANY STATE IN WHICH SUCH OFFER, SOLICITATION OR SALE WOULD BE +
+UNLAWFUL PRIOR TO REGISTRATION OR QUALIFICATION UNDER THE SECURITIES LAWS OF +
+ANY SUCH STATE. +
++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
SUBJECT TO COMPLETION, DATED OCTOBER 15, 1996
PROSPECTUS
MCDONALD'S CORPORATION
DEBT SECURITIES
McDonald's Corporation (the "Company") intends to issue from time to time in
one or more series its debt securities ("Debt Securities") which may be either
senior debt securities (the "Senior Debt Securities") or subordinated debt
securities (the "Subordinated Debt Securities") with an aggregate initial
public offering price or purchase price of up to $1,200,000,000, or the
equivalent thereof in one or more foreign or composite currencies, including
the European Currency Unit ("ECU"). Debt Securities of each series will be
offered on terms to be determined at the time of sale. Debt Securities may be
sold for U.S. dollars or for one or more foreign or composite currencies, and
the principal of, premium, if any, and any interest on Debt Securities may be
payable in U.S. dollars or in one or more foreign or composite currencies. Debt
Securities of a series may be issuable as individual securities in registered
form without coupons, or as one or more global securities in registered form.
The specific designation and classification as Senior Debt Securities or
Subordinated Debt Securities of the Company, aggregate principal (or, if
principal payable is determined by reference to an index, face) amount, the
currency in which the principal, premium, if any, and any interest are payable,
the rate (or method of calculation) and the time and place of payment of any
interest, authorized denominations, maturity, offering price, any redemption
terms and any other specific terms of the Debt Securities in respect of which
this Prospectus is being delivered will be set forth in an accompanying
Prospectus Supplement (a "Prospectus Supplement").
The Debt Securities will be unsecured. Unless otherwise specified in a
Prospectus Supplement, the Senior Debt Securities will rank equally with all
other unsecured and unsubordinated indebtedness of the Company. The
Subordinated Debt Securities will be subordinated to all Senior Indebtedness of
the Company (as hereinafter defined).
The Debt Securities may be sold by the Company directly, through agents
designated from time to time, through dealers or one or more underwriters, or
through a syndicate of underwriters managed by one or more underwriters. If
underwriters or agents are involved in any offering of Debt Securities, the
names of the underwriters or agents will be set forth in the applicable
Prospectus Supplement. If an underwriter, agent or dealer is involved in any
offering of Debt Securities, the underwriter's discount, agent's commission or
dealer's purchase price will be set forth in, or may be calculated from the
information set forth in, the applicable Prospectus Supplement, and the net
proceeds to the Company from such offering will be the public offering price of
such Debt Securities less such discount, in the case of an offering through an
underwriter, or the purchase price of such Debt Securities less such
commission, in the case of an offering through an agent, and less, in each
case, the other expenses of the Company associated with the issuance and
distribution of such Debt Securities. See "Plan of Distribution" for specific
details.
------------
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED
BY THE SECURITIES AND EXCHANGE COMMISSION OR ANY
STATE SECURITIES COMMISSION NOR HAS THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COM-
MISSION PASSED UPON THE ACCURACY OR ADEQUACY OF THIS
PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE.
------------
The date of this Prospectus is , 1996.
<PAGE>
AVAILABLE INFORMATION
The Company is subject to the informational requirements of the Securities
Exchange Act of 1934, as amended (the "Exchange Act"), and in accordance
therewith files reports and other information with the Securities and Exchange
Commission (the "Commission"). Reports, proxy statements and other information
filed by the Company with the Commission can be inspected and copied at the
public reference facilities maintained by the Commission at Room 1024, 450
Fifth Street, N.W., Washington, D.C. 20549 and at the following Regional
Offices of the Commission: New York Regional Office, Seven World Trade Center,
13th Floor, New York, New York 10048 and Chicago Regional Office, 500 W.
Madison Street, Suite 1400, Chicago, Illinois 60661; and copies of such
material can be obtained from the Public Reference Section of the Commission,
450 Fifth Street, N.W., Washington, D.C. 20549 at prescribed rates. Such
reports, proxy statements and other information can also be inspected at the
offices of the New York Stock Exchange and Chicago Stock Exchange. The Company
is not required to, and will not, provide an annual report or any other
periodic report to any holder of its debt securities unless specifically
requested by such holder.
The Company has filed with the Commission a Registration Statement on Form S-
3 (herein, together with all amendments and exhibits, referred to as the
"Registration Statement") under the Securities Act of 1933, as amended (the
"Securities Act"), relating to the Debt Securities. This Prospectus does not
contain all of the information set forth in the Registration Statement, certain
parts of which are omitted from this Prospectus in accordance with the rules
and regulations of the Commission. For further information, reference is hereby
made to the Registration Statement.
A Company franchisee provides food services exclusively to United States
government personnel stationed at the United States naval station in Guantanamo
Bay, Cuba. This statement is made pursuant to the disclosure requirements of
Florida law and is accurate as of the date of this Prospectus. Investors may
obtain current information by contacting the Florida Department of Banking and
Finance, The Capitol, Tallahassee, Florida 32399-0350, telephone number (904)
488-9805.
INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE
The following documents have been filed with the Commission (File No. 1-5231)
pursuant to the Exchange Act and are incorporated herein by reference and made
a part of this Prospectus:
(a) The Company's Annual Report on Form 10-K for the fiscal year ended
December 31, 1995, as amended by the Company's Form 10-K/A Amendment
No. 1 dated June 27, 1996;
(b) The Company's Quarterly Reports on Form 10-Q for the quarters ended
March 31, and June 30, 1996; and
(c) The Company's Current Reports on Form 8-K dated January 25, April 22,
July 18, 1996 and October 7, 1996.
All documents filed by the Company with the Commission pursuant to Sections
13(a), 13(c), 14 or 15(d) of the Exchange Act after the date of this Prospectus
and prior to the termination of the offering of the Debt Securities shall be
deemed to be incorporated herein by reference and made a part of this
Prospectus from the respective dates of filing of such documents. Any statement
contained in a document incorporated or deemed to be incorporated by reference
herein shall be deemed to be modified or superseded for purposes of this
Prospectus to the extent that a statement contained herein, in the accompanying
Prospectus Supplement or in any other subsequently filed document which also is
or is deemed to be incorporated by reference herein modifies or supersedes such
statement. Any statement so modified or superseded shall not be deemed, except
as so modified or superseded, to constitute part of this Prospectus.
The Company will furnish without charge to each person to whom this
Prospectus is delivered, upon request, a copy of any or all of the documents
described above, other than certain exhibits to such documents. Written or
telephone requests should be directed to: McDonald's Shareholder Services,
McDonald's Corporation, Kroc Drive, Oak Brook, Illinois 60521, (630) 575-7428.
----------------
References herein to "U.S. dollars", "dollars" or "$" are to the lawful
currency of the United States of America.
2
<PAGE>
MCDONALD'S CORPORATION
McDonald's Corporation and its subsidiaries develop, operate, franchise and
service a worldwide system of restaurants which prepare, assemble, package and
sell a limited menu of value-priced foods. These restaurants are operated by
the Company and its subsidiaries or, under the terms of franchise arrangements,
by franchisees who are independent third parties, or by affiliates operating
under joint-venture agreements between the Company or its subsidiaries and
local businesspeople.
McDonald's restaurants offer a substantially uniform menu consisting of
hamburgers and cheeseburgers, including the Big Mac, Quarter Pounder with
Cheese and Arch Deluxe sandwiches, the Filet Deluxe, Grilled Chicken Deluxe and
Crispy Chicken Deluxe sandwiches, french fries, Chicken McNuggets, salads, milk
shakes, sundaes and cones, pies, cookies and a limited number of soft drinks
and other beverages. In addition, the restaurants sell a variety of products
during limited promotional time periods. McDonald's restaurants operating in
the United States are open during breakfast hours and offer a full breakfast
menu including the Egg McMuffin and the Sausage McMuffin with Egg sandwiches,
hotcakes and sausage; three varieties of biscuit sandwiches; Apple Bran
muffins; and cereals. McDonald's restaurants in several countries around the
world offer many of these same products as well as other products and limited
breakfast menus. The Company tests new products on an ongoing basis.
McDonald's restaurants are located in all fifty of the United States and the
District of Columbia, and in many foreign locations, principally Japan, Canada,
Germany, England, Australia and France. At June 30, 1996, there were 17,420
traditional restaurants worldwide, of which 10,524 were located in the United
States and 6,896 in 93 other countries. An additional 542 traditional
restaurants were under construction at June 30, 1996, including 389 outside the
United States.
At June 30, 1996, 66% of McDonald's traditional restaurants were operated by
independent franchisees, 21% were operated by the Company and its subsidiaries
and 13% were operated by affiliates (entities in which the Company and/or its
subsidiaries have an equity interest of 50% or less and in which the remaining
equity interest generally is owned by a local resident).
The Company's principal executive offices are located at One McDonald's
Plaza, Oak Brook, Illinois 60521, telephone: (630) 575-3000.
USE OF PROCEEDS
Unless otherwise set forth in the applicable Prospectus Supplement, the
Company intends to use the net proceeds from the sale of the Debt Securities
for general corporate purposes, which may include refinancing of debt, capital
expenditures such as the acquisition and development of McDonald's restaurants
and the purchase of common stock of the Company under the Company's ongoing
share repurchase program. Specific allocations of the proceeds for such
purposes have not been made at this time.
3
<PAGE>
RATIO OF EARNINGS TO FIXED CHARGES
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
JUNE 30, YEAR ENDED DECEMBER 31,
----------- ------------------------
1996 1995 1995 1994 1993 1992 1991
----- ----- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C>
Ratio of Earnings to Fixed Charges......... 5.12 5.03 5.20 5.26 4.86 3.96 3.53
</TABLE>
The ratios of earnings to fixed charges shown above have been computed on a
total enterprise basis. Earnings represent income before provision for income
taxes and fixed charges. Fixed charges consist of interest on all indebtedness,
amortization of debt issuance costs and discount or premium relating to any
indebtedness, fixed charges related to redeemable preferred stock and such
portion of rental charges (after reduction for related sublease income)
considered to be representative of the interest component in the particular
case.
DESCRIPTION OF DEBT SECURITIES
The following description sets forth certain general terms and provisions of
the Debt Securities to which any Prospectus Supplement may relate. The
particular terms of the Debt Securities offered by any Prospectus Supplement
and the extent, if any, to which such general provisions may not apply to the
Debt Securities so offered will be described in the Prospectus Supplement
relating to such Debt Securities.
The Senior Debt Securities are to be issued under an Indenture (the "Senior
Indenture"), to be entered into between the Company and First Union National
Bank, as Trustee (the "Trustee"). The Subordinated Debt Securities are to be
issued under a separate Indenture (the "Subordinated Indenture") to be entered
into between the Company and the Trustee. The Senior Indenture and the
Subordinated Indenture are sometimes collectively referred to as the
"Indentures." Copies of the Senior Indenture and the Subordinated Indenture are
filed as exhibits to the Registration Statement of which this Prospectus is a
part. The following summaries of certain provisions of the Senior Debt
Securities, Subordinated Debt Securities and Indentures do not purport to be
complete and are subject to, and are qualified in their entirety by reference
to, all the provisions of the Indentures applicable to a particular series of
Debt Securities, including the definitions therein of certain terms. Wherever
particular Sections, Articles or defined terms of the Indentures are referred
to, such Sections, Articles or defined terms are incorporated herein by
reference, and the statements made herein are qualified in their entirety by
such reference. Article and Section references used herein are references to
the applicable Indenture. Except as otherwise indicated, the terms of the
Senior Indenture and the Subordinated Indenture are identical. Capitalized
terms not otherwise defined herein shall have the meaning given to them in the
Indentures to which they relate. As used under this caption, the term "Debt
Securities" includes the debt securities being offered by this Prospectus and
all other debt securities issued from time to time by the Company under the
Indentures.
GENERAL
The Indentures do not limit the aggregate principal amount of Debt Securities
which may be issued thereunder and each Indenture provides that Debt Securities
may be issued thereunder from time to time in one or more series. The Debt
Securities will be unsecured. Unless otherwise specified in the Prospectus
Supplement, the Senior Debt Securities when issued will be unsubordinated
obligations of the Company and will rank equally and ratably with all other
unsecured and unsubordinated indebtedness for borrowed money of the Company.
Certain unsecured obligations of the Company may, however, under certain
circumstances, become secured by mortgages pursuant to negative pledge
covenants applicable to such obligations while the Senior Debt Securities
remain unsecured. The Subordinated Debt Securities when issued will be
subordinated in right of payment to the prior payment in full of all Senior
Indebtedness (as defined below) of the Company, as described under
"Subordination of Subordinated Debt Securities" and in the Prospectus
Supplement applicable to an offering of Subordinated Debt Securities.
4
<PAGE>
Reference is made to the Prospectus Supplement related to the series of Debt
Securities being offered thereby (the "Offered Debt Securities"), which sets
forth whether the Offered Debt Securities shall be Senior Debt Securities or
Subordinated Debt Securities, and further sets forth the following terms, where
applicable: (i) the title of the Offered Debt Securities; (ii) the limit, if
any, upon the aggregate principal amount of the Offered Debt Securities; (iii)
the date or dates on which the principal and premium, if any, of the Offered
Debt Securities is payable; (iv) the rate or rates or the method of
determination thereof, at which the Offered Debt Securities will bear interest,
if any; the date or dates from which such interest will accrue; the interest
payment dates on which such interest will be payable; and, the record dates for
the interest payable on such interest payment dates; (v) whether the Offered
Debt Securities are to be issued as Original Issue Discount Securities (as
defined below) and the amount of discount with which the Offered Debt
Securities will be issued; (vi) the place or places where the principal of, and
premium, if any, and any interest on the Offered Debt Securities will be
payable; (vii) the price or prices at which, the period or periods within which
and the terms and conditions upon which the Offered Debt Securities may be
redeemed in whole or in part, at the option of the Company, pursuant to any
sinking fund or otherwise; (viii) the obligation, if any, of the Company to
redeem, purchase or repay the Offered Debt Securities pursuant to any sinking
fund or analogous provisions or at the option of a Holder and the price or
prices at which and the period or periods within which and the terms and
conditions upon which the Offered Debt Securities will be redeemed, purchased
or repaid, in whole or in part, pursuant to such obligation; (ix) if other than
denominations of $1,000 and any integral multiple thereof, the denominations in
which the Offered Debt Securities will be issuable; (x) if other than the
principal amount, the portion of the principal amount of the Offered Debt
Securities which will be payable upon declaration of acceleration of the
maturity thereof pursuant to the Indenture; (xi) any non-application of,
addition to, or change in any of the Events of Default provided for with
respect to the Offered Debt Securities and remedies with respect thereto; (xii)
if the Offered Debt Securities are non-interest bearing, the "stated
intervals"; (xiii) the currency or currencies in which payments on the Offered
Debt Securities are payable; and (xiv) any other terms of the Offered Debt
Securities not inconsistent with the provisions of the applicable Indenture.
(Section 2.02)
If the principal of (and premium, if any) or any interest on the Offered Debt
Securities is payable in a foreign or composite currency, the restrictions,
elections, federal income tax consequences, specific terms and other
information with respect to the Offered Debt Securities and such currency will
be described in the Prospectus Supplement relating thereto.
One or more series of Offered Debt Securities may be sold at a discount below
their stated principal amount, bearing no interest or interest at a rate that
at the time of issuance is below market rates ("Original Issue Discount
Securities"). One or more series of Offered Debt Securities may be variable
rate debt securities that may be exchangeable for fixed rate debt securities.
Federal income tax consequences and other special considerations applicable to
any such series will be described in the Prospectus Supplement relating
thereto.
Unless otherwise provided in the applicable Prospectus Supplement, the
principal of (and premium, if any) and any interest on the Offered Debt
Securities will be payable at the offices of the Trustee in New York, New York
and Charlotte, North Carolina; provided, however, that payment of interest on
Offered Debt Securities may be made at the option of the Company by check
mailed to the Holders thereof. (Sections 2.02, 4.01 and 4.02) Unless otherwise
provided in the applicable Prospectus Supplement, Offered Debt Securities may
be transferred or exchanged at the office or agency maintained by the Company
for such purpose, subject to the limitations provided in the applicable
Indenture, without the payment of any service charge, other than any tax or
governmental charge payable in connection therewith. (Section 2.06)
All moneys paid by the Company to the Trustee or a paying agent for the
payment of principal of (and premium, if any) or any interest on any Offered
Debt Security that remains unclaimed at the end of two years after such
principal, premium or interest shall have become due and payable will be repaid
to the Company on demand, and the Holder of such Offered Debt Security will
thereafter look only to the Company for payment thereof. (Section 12.05)
5
<PAGE>
GLOBAL SECURITIES
If any Offered Debt Securities are issuable in temporary or permanent global
form, the applicable Prospectus Supplement will describe the circumstances, if
any, under which beneficial owners of interests in any such permanent global
Debt Security may exchange such interests for definitive Offered Debt
Securities of such series and of like tenor and principal amount in any
authorized form and denomination. Principal of and premium and interest on a
permanent global Debt Security will be payable in the manner described in the
applicable Prospectus Supplement. (Section 2.01)
LIMITATION ON LIENS COVENANT IN THE SENIOR INDENTURE
The Senior Indenture contains the covenant described below which is
applicable to the Company with respect to any and all series of Senior Debt
Securities issued thereunder unless otherwise specified in the applicable
Prospectus Supplement. Specific covenants, if any, peculiar to a particular
series of Senior Debt Securities to be offered hereby will be described in the
Prospectus Supplement relating thereto.
Section 4.06 of the Senior Indenture requires that the Company will not, nor
will it permit any Restricted Subsidiary (as hereinafter defined) to issue or
assume any debt for money borrowed (hereinafter in this and the following three
paragraphs referred to as "Debt") if such Debt is secured by a mortgage,
security interest, pledge, lien or other encumbrance (mortgages, security
interests, pledges, liens and other encumbrances being hereinafter called
"mortgage" or "mortgages") upon any Principal Property (as hereinafter defined)
or upon any shares of stock or indebtedness of any Restricted Subsidiary
(whether such Principal Property, shares of stock or indebtedness are now owned
or hereafter acquired) without in any such case effectively providing that the
Senior Debt Securities, and at the Company's option any other indebtedness of
the Company or any Restricted Subsidiary ranking equally with the Senior Debt
Securities, shall be secured equally and ratably with such Debt. The foregoing
restrictions shall not apply to Debt secured by (i) mortgages on property,
shares of stock or indebtedness of any corporation existing at the time such
corporation becomes a Restricted Subsidiary, (ii) mortgages on property
existing at the time of acquisition thereof and certain purchase money
mortgages, (iii) mortgages securing Debt of a Restricted Subsidiary owing to
the Company or another Restricted Subsidiary, (iv) mortgages on property of a
corporation existing at the time such corporation is merged into or
consolidated with the Company or a Restricted Subsidiary or at the time of a
sale, lease or other disposition of the properties of a corporation as an
entirety or substantially as an entirety to the Company or a Restricted
Subsidiary, (v) mortgages in favor of any country or any political subdivision
of any country, or any instrumentality thereof, to secure certain payments
pursuant to any contract or statute or to secure any indebtedness incurred for
the purpose of financing all or any part of the purchase price or the cost of
construction of the property subject to such mortgages, or (vi) any extension,
renewal or replacement (or successive extensions, renewals or replacements), in
whole or in part, of any mortgage referred to in the foregoing clauses (i) to
(v), inclusively. Notwithstanding the above, the Company and one or more
Restricted Subsidiaries may, without securing the Senior Debt Securities, issue
or assume secured Debt which would otherwise be subject to the foregoing
restrictions, provided that after giving effect thereto the aggregate of such
secured Debt then outstanding (not including secured Debt permitted under the
foregoing exceptions) at such time does not exceed 20% of the shareholders'
equity of the Company and its consolidated subsidiaries as of the end of the
preceding fiscal year. The transfer of a Principal Property to a subsidiary or
any third party shall not be restricted. (Section 4.06)
The term "Principal Property" means all real property owned by the Company or
any Restricted Subsidiary which is located within the continental United States
of America and, in the opinion of the Board of Directors of the Company, is of
material importance to the total business conducted by the Company and its
consolidated affiliates as an entity. (Section 1.01)
The term "Subsidiary" means any corporation or other Person of which the
Company, or the Company and one or more Subsidiaries, or any one or more
Subsidiaries, directly or indirectly owns voting securities or other similar
equity interests entitling the owners thereof to elect a majority of the
directors or individuals holding similar positions in other Persons, either at
all times or so long as there is no default or contingency
6
<PAGE>
which permits the owners of any other class or classes of securities or other
interests to vote for the election of one or more directors or individuals
holding similar positions in other Persons, but shall not include any
corporation or other Person with respect to which the Company or any other
Subsidiary has become entitled to elect a majority of the directors or
individuals holding similar positions in other Persons solely due to a default
or other contingency which is temporary in character and has had a continuous
existence of less than one year. (Section 1.01)
The term "Person" means any individual, corporation, partnership, joint
venture, association, joint-stock company, trust, unincorporated organization
or government or any agency or political subdivision thereof. (Section 1.01)
The term "Restricted Subsidiary" means any Subsidiary (i) substantially all
the property of which is located within the continental United States of
America, (ii) which owns Principal Property and (iii) in which the Company's
investment, direct or indirect and whether in the form of equity, debt,
advances or otherwise, is in excess of U.S. $1,000,000,000 as shown on the
books of the Company as of the end of the fiscal year immediately preceding the
date of determination; provided, however, that "Restricted Subsidiary" shall
not include any Subsidiary primarily engaged in financing activities, primarily
engaged in the leasing of real property to persons other than the Company and
its Subsidiaries, or which is characterized by the Company as a temporary
investment. (Section 1.01)
SUBORDINATION OF SUBORDINATED DEBT SECURITIES
Unless otherwise indicated in the Prospectus Supplement, the following
provisions will apply to the Subordinated Debt Securities.
The Subordinated Debt Securities will, to the extent and in the manner set
forth in the Subordinated Indenture, be subordinate in right of payment to all
indebtedness for borrowed money of the Company, whether now outstanding or
hereafter incurred, which is not by its terms subordinate to other indebtedness
of the Company (the "Senior Indebtedness"). As of June 30, 1996, the aggregate
amount of the outstanding Senior Indebtedness of the Company was approximately
$4.1 billion.
In the event of any insolvency or bankruptcy proceedings, and any
receivership, liquidation, reorganization or other similar proceedings in
connection therewith, relative to the Company or its property, and, except as
otherwise provided in the Subordinated Indenture, in the event of any
proceedings for voluntary liquidation, dissolution or other winding up of the
Company, whether or not involving insolvency or bankruptcy proceedings, all
principal, premium, if any, and interest on the Senior Indebtedness will be
paid in full before any payment is made by the Company on the Subordinated Debt
Securities. In the event that pursuant to the terms of the Subordinated
Indenture any Subordinated Debt Security of any series is declared due and
payable because of the occurrence of an Event of Default, as provided in the
Subordinated Indenture, and the previous sentence is not applicable, the
Holders of the Subordinated Debt Securities of such series shall be entitled to
payment from the Company only after the Senior Indebtedness outstanding at the
time such Subordinated Debt Security so becomes due and payable because of such
Event of Default shall first have been paid in full or such payment shall have
been provided for. (Section 15.01.)
The Subordinated Indenture does not limit or prohibit the incurrence of
additional Senior Indebtedness, which may include indebtedness that is senior
to the Subordinated Debt Securities, but subordinate to other obligations of
the Company. The Senior Debt Securities constitute Senior Indebtedness under
the Subordinated Indenture.
The Prospectus Supplement may further describe the provisions, if any,
applicable to the subordination of the Subordinated Debt Securities of a
particular series.
EVENTS OF DEFAULT
The Indentures define an Event of Default with respect to any series of Debt
Securities as being any one of the following events: (a) default for 30 days in
any payment of interest on such series; (b) default in any payment of principal
of or premium, if any, on such series when due (and continuance of such default
for a period of 10 days in the case of Subordinated Debt Securities); (c)
default in the payment of any sinking fund
7
<PAGE>
payment when due (and continuance of such default for a period of 10 days in
the case of Subordinated Debt Securities); (d) default for 60 days, after
appropriate notice, in performance of any other covenants in the Indentures
(other than the Section 4.06 covenant in the Senior Indenture and any other
covenant included in the Indentures solely for the benefit of a series of Debt
Securities other than that series), provided that such default shall not be an
Event of Default if it cannot with due diligence be cured within such 60-day
period due to causes beyond the control of the Company, unless the Company
shall fail to proceed promptly to cure such default and thereafter prosecute
the curing of such default with diligence and continuity; (e) certain events of
bankruptcy, insolvency or reorganization; or (f) default in the performance of
a particular covenant applicable to that series after appropriate notice and
opportunity to cure such default, if any. The Senior Indenture defines a
default for 120 days after appropriate notice in the performance of the Section
4.06 covenant as an additional Event of Default with respect to the Senior Debt
Securities. An Event of Default with respect to a particular series of Debt
Securities issued under either of the Indentures does not necessarily
constitute an Event of Default with respect to any other series of Debt
Securities issued thereunder. In case an Event of Default under clauses (a),
(b), (c) or (f) set forth above with respect to the Indentures shall occur and
be continuing with respect to any series of Debt Securities, the Trustee or the
Holders of not less than 25% in aggregate principal amount of Debt Securities
then Outstanding of such series may declare the entire principal (or, if the
Debt Securities of such series are Original Issue Discount Securities, the
portion of the principal amount specified in the terms of such series) of such
series to be due and payable. In case an Event of Default under clauses (d) or
(e) set forth above with respect to the Indentures or with respect to Section
4.06 of the Senior Indenture shall occur and be continuing, the Trustee or
Holders of not less than 25% in aggregate principal amount of all the
Outstanding Debt Securities may declare the entire principal (or, if any Debt
Securities are Original Issue Discount Securities, the portion of the principal
amount specified in the terms thereof) of Outstanding Debt Securities of all
series to be due and payable. Any Event of Default with respect to a particular
series of Debt Securities may be waived by the Holders of a majority in
aggregate principal amount of the Outstanding Debt Securities of such series
(or of all the Outstanding Debt Securities, as the case may be), except in each
case a failure to pay principal of, or premium, if any, or interest on such
Debt Securities. (Section 6.01; Section 6.07)
Each Indenture requires the Company to file with the Trustee an officers'
certificate annually as to compliance with all conditions and covenants under
the Indenture. (Section 4.05) Subject to the provisions of the Indentures
relating to the duties of the Trustee, each Indenture provides that the Trustee
shall be under no obligation to exercise any of its rights or powers under the
applicable Indenture at the request, order or direction of the Holders of the
Debt Securities unless such Holders shall have offered to the Trustee
reasonable indemnity. (Sections 6.04 and 7.01) Subject to such provisions for
indemnification and certain other rights of the Trustee, each Indenture
provides that the Holders of a majority (voting as one class) in principal
amount of the Outstanding Debt Securities of each series affected will have the
right to direct the time, method, and place of conducting any proceeding for
any remedy available to the Trustee or exercising any trust or power conferred
on the Trustee. (Section 6.07)
MODIFICATION OF THE INDENTURES
Each Indenture provides that the Company and the Trustee may enter into
supplemental indentures without the consent of the Holders of the Debt
Securities to (a) evidence the assumption by a successor corporation of the
obligations of the Company, (b) add covenants for the protection of the Holders
of the Debt Securities, (c) add or change any of the provisions of the
Indenture to permit or facilitate the issuance of Debt Securities of any series
in bearer or coupon form, (d) cure any ambiguity or correct any inconsistency
in such Indenture, (e) establish the form or terms of Debt Securities of any
series as permitted by the terms of the Indenture and (f) evidence the
acceptance of appointment by a successor trustee. (Section 10.01)
Each Indenture contains provisions permitting the Company and the Trustee
thereunder, with the consent of the Holders of not less than 66 2/3% in
aggregate principal amount of the Debt Securities of each series affected by
such supplemental indenture, to execute supplemental indentures adding any
provisions to or changing in any manner or eliminating any of the provisions of
the applicable Indenture or any
8
<PAGE>
supplemental indenture or modifying in any manner the rights of the Holders of
Debt Securities of each such series, provided that no such supplemental
indenture shall, among other things (i) extend the fixed maturity of any Debt
Security, or reduce the principal amount thereof (including in the case of a
discounted Debt Security the amount payable upon acceleration of the maturity
thereof), reduce the rate or extend the time of payment of interest thereon, or
make the principal of, premium, if any, or interest, if any, thereon payable in
any coin or currency other than that provided in the Debt Security, without the
consent of the Holder of each Debt Security so affected or (ii) reduce the
aforesaid percentage of such Debt Securities of any series, the consent of the
Holders of which is required for any supplemental indenture, without the
consent of the Holder of each such Debt Security so affected. (Section 10.02)
DISCHARGE OF INDENTURES
The Company, at its option, (a) will be discharged from any and all
obligations in respect of such Debt Securities (except in each case for certain
obligations to register the transfer or exchange of such Debt Securities,
replace stolen, lost or mutilated Debt Securities, maintain paying agencies and
hold monies for payment in trust) or (b) need not comply with certain
restrictive covenants of the Indentures (including that described under
"Limitation on Liens Covenant in the Senior Indenture") and will not be limited
by any restrictions with respect to merger, consolidation or sales of assets,
in each case if the Company deposits with the Trustee, in trust, (x) money or
(y) U.S. Government Obligations or a combination of (x) and (y) which, through
the payment of interest thereon and principal thereof in accordance with their
terms, will provide money in an amount sufficient to pay all the principal
(including any mandatory sinking fund payments) of, and interest, if any, and
premium, if any, on, such Debt Securities on the dates such payments are due in
accordance with the terms of such series. (Section 12.02) In order to avail
itself of either of the foregoing options, the Company must provide to the
Trustee an opinion of counsel or a ruling from, or published by, the Internal
Revenue Service, to the effect that Holders of the Debt Securities of such
series will not recognize income, gain or loss for Federal income tax purposes
as a result of the Company's exercise of its option and will be subject to
Federal income tax on the same amount and in the same manner and at the same
times as would have been the case if such option had not been exercised.
(Section 12.02) "U.S. Government Obligations" means generally (i) direct
obligations of the United States of America for the payment of which its full
faith and credit is pledged or (ii) obligations of a person controlled or
supervised by and acting as an agency or instrumentality of the United States
of America, the timely payment of which is unconditionally guaranteed as a full
faith and credit obligation by the United States of America, which, in either
case, are not callable or redeemable at the option of the issuer thereof.
(Section 1.01) In addition, the Company can also obtain a discharge under the
Indentures with respect to all the Debt Securities of a series by depositing
with the Trustee, in trust, funds sufficient to pay at maturity or upon
redemption all of the Debt Securities of such series provided that all of the
Debt Securities of such series are by their terms to become due and payable
within one year or are to be called for redemption within one year. No such
opinion of counsel or ruling from the Internal Revenue Service is required with
respect to a discharge pursuant to the immediately
preceding sentence. In the event of any discharge of Debt Securities pursuant
to the terms of the Indentures described above, the Holders of such Debt
Securities will thereafter be able to look solely to such trust fund, and not
to the Company, for payments of principal, premium, if any, and interest, if
any. (Sections 12.01 and 12.02)
CONCERNING THE TRUSTEE
The Company, its subsidiaries and affiliates maintain banking relationships
(including the extension of credit) in the ordinary course of business with the
Trustee. The Trustee is also trustee under other indentures of the Company
under which certain of the Company's senior and subordinated Debt Securities
have been issued.
PLAN OF DISTRIBUTION
The Company may sell Debt Securities in any of three ways: (i) through
underwriters or dealers; (ii) directly to one or more purchasers; or (iii)
through agents. The applicable Prospectus Supplement will set forth the terms
of the offering of any Debt Securities, including the names of any
underwriters, the purchase
9
<PAGE>
price of such Debt Securities and the net proceeds to the Company from such
sale, any underwriting discounts and other items constituting underwriters'
compensation or agents' commission, any initial public offering price, any
discounts or concessions allowed or reallowed or paid to dealers, any
securities exchanges on which such Debt Securities may be listed and any
restrictions on the sale and delivery of Debt Securities in bearer form.
If underwriters or dealers are used in the sale, Debt Securities will be
acquired by such underwriters or dealers for their own account and may be
resold from time to time in one or more transactions, including negotiated
transactions, at a fixed public offering price or at varying prices determined
at the time of sale. Such Debt Securities may be offered to the public either
through underwriting syndicates represented by managing underwriters or by
underwriters without a syndicate. Unless otherwise set forth in the applicable
Prospectus Supplement, the obligations of the underwriters to purchase such
Debt Securities will be subject to certain conditions precedent, and the
underwriters will be obligated to purchase all of such Debt Securities if any
of such Debt Securities are purchased. Any initial public offering price and
any discounts or concessions allowed or reallowed or paid to dealers may be
changed from time to time.
Debt Securities may also be sold directly by the Company or through agents
designated by the Company from time to time. Any agent involved in the offer or
sale of Debt Securities will be named, and any commissions payable by the
Company to such agent will be set forth, in the applicable Prospectus
Supplement. Unless otherwise indicated in the applicable Prospectus Supplement,
any such agent will act on a best efforts basis for the period of its
appointment.
Any underwriters, dealers or agents participating in the distribution of Debt
Securities may be deemed to be underwriters and any discounts or commissions
received by them on the sale or resale of Debt Securities may be deemed to be
underwriting discounts and commissions under the Securities Act. Agents and
underwriters may be entitled under agreements entered into with the Company to
indemnification by the Company against certain civil liabilities, including
liabilities under the Securities Act, or to contribution with respect to
payments that the agents or underwriters may be required to make in respect of
such liabilities. Agents and underwriters may be customers of, engage in
transactions with, or perform services for, the Company or its subsidiaries or
affiliates in the ordinary course of business.
If so indicated in the Prospectus Supplement, the Company will authorize
agents and underwriters to solicit offers by certain institutions to purchase
the Debt Securities being offered hereby from the Company at the public
offering price set forth in the Prospectus Supplement pursuant to Delayed
Delivery Contracts ("Contracts") providing for payment and delivery on the date
or dates stated in the Prospectus Supplement. Each Contract will be for an
amount not less than, and unless the Company otherwise agrees the aggregate
principal (or face) amount of Debt Securities sold pursuant to Contracts shall
be not less nor more than, the respective amounts stated in the Prospectus
Supplement. Institutions with which Contracts, when authorized, may be made
include commercial and savings banks, insurance companies, pension funds,
investment companies, educational and charitable institutions and other
institutions, but shall in all cases be subject to the approval of the Company.
Contracts will not be subject to any conditions except that (i) the purchase by
an institution of the Debt Securities covered by its Contract shall not at the
time of delivery be prohibited under the laws of any jurisdiction in the United
States to which such institution is subject, and (ii) if the Debt Securities
being offered hereby are being sold to underwriters, the Company shall have
sold to such underwriters the total principal (or face) amount of such Debt
Securities less the principal amount thereof covered by the Contracts.
LEGAL MATTERS
The legality of the Debt Securities offered hereby will be passed upon for
the Company by Gloria Santona, Vice President, Associate General Counsel and
Secretary of the Company. Ms. Santona is a full-time employee of the Company
and owns shares of the Company's Common Stock directly and as a participant in
various employee benefit plans. Ms. Santona also holds options to purchase
shares of the Company's Common Stock.
10
<PAGE>
PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
ITEM 14. OTHER EXPENSES OF ISSUANCE AND DISTRIBUTION.
The following table sets forth all expenses in connection with the issuance
and distribution of the Debt Securities being registered. All the amounts are
estimated, except the Securities and Exchange Commission Registration fee.
<TABLE>
<S> <C>
Securities and Exchange Commission Registration fee............. $344,830
Fees and expenses of accountants................................ 55,000
Fees and expenses of counsel.................................... 5,000
Blue Sky fees and expenses...................................... 10,000
Fees and expenses of Trustee and agents......................... 50,000
Printing and Engraving expenses................................. 100,000
Rating Agency fees.............................................. 220,000
Miscellaneous................................................... 15,170
--------
Total......................................................... $800,000
========
</TABLE>
ITEM 15. INDEMNIFICATION OF DIRECTORS AND OFFICERS.
Section 145 of the Delaware General Corporation Law (the "GCL") provides for
indemnification of directors and officers against any legal liability (other
than liability arising from derivative suits) if the director or officer acted
in good faith and in a manner that he or she reasonably believed to be in or
not opposed to the best interests of the corporation. In criminal actions, the
director or officer must also have had no reasonable cause to believe that his
or her conduct was unlawful. A corporation may indemnify a director or officer
in a derivative suit if the director or officer acted in good faith and in a
manner that he or she reasonably believed to be in or not opposed to the best
interests of the corporation unless the director or officer is found liable to
the corporation (in which case a court may permit indemnity for such director
or officer to the extent it deems proper).
Article V of the Company's By-Laws provides that the Company shall indemnify
and hold harmless each director and officer to the fullest extent permitted
under the GCL, provided that the person seeking indemnification has met the
applicable standard of conduct set forth in the By-Laws. Such indemnification
could cover all expenses as well as liabilities and losses incurred by
directors and officers. The Board of Directors has the authority by resolution
to provide for other indemnification of directors and officers as it deems
appropriate.
The By-Laws further provide that the Company may maintain insurance at its
expense to protect any director or officer against any expenses, liabilities or
losses, whether or not the Company would have the power to indemnify such
director or officer against such expenses, liabilities or losses under the GCL.
Pursuant to this provision, the Company maintains insurance against any
liability incurred by its directors and officers in defense of any action in
which they are made parties by reason of their positions as directors and
officers.
II-1
<PAGE>
ITEM 16. LIST OF EXHIBITS.
<TABLE>
<CAPTION>
<C> <S>
1 Form of Underwriting Agreement.
4(a) Form of Senior Debt Securities Indenture between McDonald's Corporation
and First Union National Bank, as Trustee (including form of Senior
Debt Security).
4(b) Form of Subordinated Debt Securities Indenture between McDonald's
Corporation and First Union National Bank, as Trustee (including form
of Subordinated Debt Security).
5 Opinion and consent of Gloria Santona, Vice President, Associate General
Counsel and Secretary of the Company.
12 Statement re computation of ratios of earnings to fixed charges.*
23(a) Consent of Ernst & Young LLP, independent auditors.
23(b) Consent of Gloria Santona, Vice President, Associate General Counsel and
Secretary of the Company is included in Exhibit 5.
24 Powers of Attorney (set forth on page II-4 of this Registration
Statement).
25 Statement of Eligibility and Qualification on Form T-1 of First Union
National Bank, as Trustee.
</TABLE>
- --------
* Exhibit 12 above was previously filed as Exhibit 12 of the Company's
Quarterly Report on Form 10-Q, dated June 30, 1996, and is incorporated
herein by reference.
II-2
<PAGE>
ITEM 17. UNDERTAKINGS.
The undersigned Registrant hereby undertakes:
(a) To file, during any period in which offers or sales are being made, a
post-effective amendment to this Registration Statement:
(i) to include any prospectus required by Section 10(a)(3) of the
Securities Act of 1933;
(ii) to reflect in the prospectus any facts or events arising after
the effective date of this Registration Statement (or the most recent
post-effective amendment thereof) which, individually or in the
aggregate, represent a fundamental change in the information set forth
in this Registration Statement. Notwithstanding the foregoing, any
increase or decrease in volume of securities offered (if the total
dollar value of securities offered would not exceed that which was
registered) and any deviation from the low or high end of the estimated
maximum offering range may be reflected in the form of prospectus filed
with the Securities and Exchange Commission pursuant to Rule 424(b) of
the Securities Act of 1933 if, in the aggregate, the changes in volume
and price represent no more than a 20% change in the maximum aggregate
offering price set forth in the "Calculation of Registration Fee" table
in the effective Registration Statement; and
(iii) to include any material information with respect to the plan of
distribution not previously disclosed in this Registration Statement or
any material change to such information in this Registration Statement;
provided, however, that the undertakings set forth in paragraphs (i) and
(ii) above do not apply if the information required to be included in a
post-effective amendment by those paragraphs is contained in periodic
reports filed with or furnished to the Securities and Exchange Commission
by the Registrant pursuant to Section 13 or Section 15(d) of the Securities
Exchange Act of 1934 that are incorporated by reference in this
Registration Statement.
(b) That, for the purpose of determining any liability under the
Securities Act of 1933, each such post-effective amendment shall be deemed
to be a new Registration Statement relating to the securities offered
therein, and the offering of such securities at that time shall be deemed
to be the initial bona fide offering thereof.
(c) To remove from registration by means of a post-effective amendment
any of the securities being registered which remain unsold at the
termination of the offering.
(d) That, for purposes of determining any liability under the Securities
Act of 1933, each filing of the Registrant's annual report pursuant to
Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934 that
is incorporated by reference in this Registration Statement shall be deemed
to be a new Registration Statement relating to the securities offered
therein, and the offering of such securities at that time shall be deemed
to be the initial bona fide offering thereof.
(e) That, insofar as indemnification for liabilities arising under the
Securities Act of 1933 may be permitted to directors, officers and
controlling persons of the Registrant pursuant to the provisions referred
to in Item 15 of this Registration Statement, or otherwise, the Registrant
has been advised that in the opinion of the Securities and Exchange
Commission such indemnification is against public policy as expressed in
the Securities Act of 1933 and is, therefore, unenforceable. In the event
that a claim for indemnification against such liabilities (other than the
payment by the Registrant of expenses incurred or paid by a director,
officer or controlling person of the Registrant in the successful defense
of any action, suit or proceeding) is asserted by such director, officer or
controlling person in connection with the securities being registered, the
Registrant will, unless in the opinion of its counsel the matter has been
settled by controlling precedent, submit to a court of appropriate
jurisdiction the question whether such indemnification by it is against
public policy as expressed in the Securities Act of 1933 and will be
governed by the final adjudication of such issue.
II-3
<PAGE>
SIGNATURES
PURSUANT TO THE REQUIREMENTS OF THE SECURITIES ACT OF 1933, THE REGISTRANT
CERTIFIES THAT IT HAS REASONABLE GROUNDS TO BELIEVE THAT IT MEETS ALL OF THE
REQUIREMENTS FOR FILING ON FORM S-3, AND HAS DULY CAUSED THIS REGISTRATION
STATEMENT AND POST-EFFECTIVE AMENDMENT TO BE SIGNED ON ITS BEHALF BY THE
UNDERSIGNED, THEREUNTO DULY AUTHORIZED, IN THE VILLAGE OF OAK BROOK, AND STATE
OF ILLINOIS, ON THE 15TH DAY OF OCTOBER, 1996.
McDONALD'S CORPORATION
/s/ Jack M. Greenberg
By___________________________________
Jack M. Greenberg Vice Chairman,
Chairman--McDonald's U.S.A. and
Director
Each person whose signature appears below constitutes and appoints Jack M.
Greenberg, Michael L. Conley, Gloria Santona and Carleton D. Pearl, and each of
them, his or her true and lawful attorneys-in-fact and agents, with full power
of substitution and resubstitution, for him or her and in his or her name,
place and stead, in any and all capacities, to sign any and all amendments
(including post-effective amendments) to this Registration Statement, and to
file the same, with all exhibits thereto and all other documents in connection
therewith, with the Securities and Exchange Commission, granting unto said
attorneys-in-fact and agents, and each of them, full power and authority to do
and perform each and every act and thing requisite and necessary to be done in
and about the premises, as fully to all intents and purposes as he or she might
or could do in person, hereby ratifying and confirming all that said attorneys-
in-fact and agents or any of them, or his or her substitute or substitutes, may
lawfully do or cause to be done by virtue thereof.
Pursuant to the requirements of the Securities Act of 1933, this Registration
Statement and Post-Effective Amendment has been signed below by the following
persons in the capacities indicated and on the 15th day of October, 1996.
<TABLE>
<CAPTION>
SIGNATURE TITLE
--------- -----
<S> <C>
- ------------------------------------
Hall Adams, Jr. Director
- ------------------------------------
Robert M. Beavers, Jr. Senior Vice President, Zone Manager and
Director
/s/ James R. Cantalupo
- ------------------------------------
James R. Cantalupo President and Chief Executive Officer--
McDonald's International and Director
- ------------------------------------
Gordon C. Gray Director
/s/ Jack M. Greenberg
- ------------------------------------
Jack M. Greenberg Vice Chairman, Chairman--McDonald's
U.S.A. and Director
- ------------------------------------
Enrique Hernandez, Jr. Director
/s/ Donald R. Keough
- ------------------------------------
Donald R. Keough Director
/s/ Donald G. Lubin
- ------------------------------------
Donald G. Lubin Director
</TABLE>
II-4
<PAGE>
<TABLE>
<CAPTION>
SIGNATURE TITLE
--------- -----
<S> <C>
/s/ Andrew J. McKenna
- ------------------------------------
Andrew J. McKenna Director
/s/ Michael R. Quinlan
- ------------------------------------
Michael R. Quinlan Chairman, Chief Executive Officer and
Director
/s/ Edward H. Rensi
- ------------------------------------
Edward H. Rensi President and Chief Executive Officer--
McDonald's U.S.A. and Director
/s/ Terry L. Savage
- ------------------------------------
Terry L. Savage Director
/s/ Paul D. Schrage
- ------------------------------------
Paul D. Schrage Senior Executive Vice President, Chief
Marketing Officer and Director
/s/ Ballard F. Smith
- ------------------------------------
Ballard F. Smith Director
/s/ Roger W. Stone
- ------------------------------------
Roger W. Stone Director
/s/ Robert N. Thurston
- ------------------------------------
Robert N. Thurston Director
/s/ Fred L. Turner
- ------------------------------------
Fred L. Turner Senior Chairman and Director
/s/ B. Blair Vedder, Jr.
- ------------------------------------
B. Blair Vedder, Jr. Director
/s/ Michael L. Conley
- ------------------------------------
Michael L. Conley Executive Vice President and Chief
Financial Officer
/s/ Christopher Pieszko
- ------------------------------------
Christopher Pieszko Vice President and Corporate Controller
</TABLE>
II-5
<PAGE>
EXHIBIT INDEX
<TABLE>
<CAPTION>
EXHIBIT NO. PAGE NO.
----------- --------
<C> <S> <C>
1 Form of Underwriting Agreement. ....................... 19
4(a) Form of Senior Debt Securities Indenture between
McDonald's Corporation and First Union National Bank,
as Trustee (includng form of Senior Debt Security). . 35
4(b) Form of Subordinated Debt Securities Indenture between
McDonald's Corporation and First Union National Bank,
as Trustee (including form of Subordinated Debt Secu-
rity). .............................................. 81
5 Opinion and consent of Gloria Santona, Vice President,
Associate General Counsel and Secretary of the Compa-
ny. .................................................. 129
12 Statement re computation of ratios of earnings to fixed
charges.* ............................................ 130
23(a) Consent of Ernst & Young LLP, independent auditors.....
23(b) Consent of Gloria Santona, Vice President, Associate
General Counsel and Secretary of the Company is in-
cluded in Exhibit 5. .................................
24 Powers of Attorney (set forth on page II-4 of this Reg-
istration Statement). ................................
25 Statement of Eligibility and Qualification on Form T-1
of First Union National Bank, as Trustee. ............ 131
</TABLE>
- --------
* Exhibit 12 above was previously filed as Exhibit 12 of the Company's
Quarterly Report on Form 10-Q, dated June 30, 1996, and is incorporated
herein by reference.
<PAGE>
EXHIBIT 1
MCDONALD'S CORPORATION
UNDERWRITING AGREEMENT
To the Representatives named in Schedule I hereto of
the Underwriters named in Schedule II hereto
Dear Sirs:
1. INTRODUCTORY. McDonald's Corporation (the "Company"), a Delaware
corporation, proposes to sell to the underwriters named in Schedule II hereto
(the "Underwriters"), for whom you are acting as representatives (the
"Representatives", which term may refer to a single Representative if so
indicated on Schedule I hereto), the principal amount of its securities
identified in Schedule I hereto (the "Securities"), to be issued under an
Indenture, [dated as of , 1996] [dated as of , 1996], as
supplemented by Supplemental Indenture No. , to be dated as of , 199
(collectively, the "Indenture"), between the Company and First Union National
Bank, as trustee (the "Trustee"). (If the firm or firms listed in Schedule II
hereto include only the firm or firms listed in Schedule I hereto, then the
terms "Underwriters" and "Representatives", as used herein, shall each be
deemed to refer to such firm or firms.)
2. REPRESENTATIONS AND WARRANTIES OF THE COMPANY. The Company represents and
warrants to each of the Underwriters that:
(a) The Company has filed with the Securities and Exchange Commission
(the "Commission") [two] a registration statement[s] on Form S-3 under the
Securities Act of 1933, as amended (the "Securities Act") (File No. 333-
[and File No. 33- ]), which has [have] become effective, for the
registration under the Securities Act of the Securities. Such registration
statement[s] meets [meet] the requirements set forth in Rule 415(a)(1)(i)
under the Securities Act and complies [comply] in all other material
respects with said Rule. The Company proposes to file with the Commission
pursuant to Rule 424(b)(2) or (b)(5) under the Securities Act a supplement
to the form of prospectus included in registration statement File No. 333-
relating to the Securities and the plan of distribution thereof or
(b), if the Company elects to rely on Rule 434 under the Securities Act, a
Term Sheet (as such term is hereinafter defined) relating to the Securities
that shall contain such information as is required or permitted by Rules
434 and 424(b) under the Securities Act. The registration statement[s] File
No. 333- [and File No. 33- ], including the exhibits thereto, is
[are] hereinafter [collectively] called the "Registration Statement"; the
prospectus in the form in which it appears in registration statement File
No. 333- [, which, pursuant to Rule 429 under the Securities Act, will
also be used in connection with the Securities registered pursuant to
registration statement File No. 33- ,] 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(b)(2) or (b)(5)
(including the Basic Prospectus as so supplemented) or (ii), if the Company
elects to rely on Rule 434 under the Securities Act, in the form of the
Term Sheet as first filed with the Commission pursuant to Rule 424(b)(7)
(together with the Basic Prospectus), is hereinafter called the "Final
Prospectus". Any preliminary form of the Final Prospectus which has
heretofore been filed pursuant to Rule 424(b) is hereinafter called the
"Preliminary Final Prospectus". Any abbreviated term sheet that satisfies
the requirements of Rule 434 under the Securities Act is hereinafter called
the "Term Sheet." 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 Act") on or
before the date of this Agreement, or the issue date of the Basic
Prospectus, any Preliminary Final
<PAGE>
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, and deemed to be
incorporated therein by reference.
(b) As of the date hereof, when the Final Prospectus is first filed
pursuant to Rule 424(b) under the Securities 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 (as hereinafter defined), (i) the Registration Statement, as
amended as of any such time, the Final Prospectus, as amended or
supplemented as of any such time, and the Indenture will comply in all
material respects with the applicable requirements of the Securities Act,
the Trust Indenture Act of 1939, as amended (the "Trust Indenture Act") and
the Exchange Act and the respective rules and regulations thereunder and
(ii) neither the Registration Statement, as amended as of any such time,
nor the Final Prospectus, as amended or supplemented as of any 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
(Form T-1) under the Trust Indenture Act of the Trustee, (ii) information,
if any, contained in the Registration Statement or Final Prospectus
relating to the Depository Trust Company ("DTC") and its book-entry system,
or (iii) 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 furnished in
writing to the Company by or on behalf of any Underwriter through the
Representatives specifically for use in connection with the preparation of
the Registration Statement and the Final Prospectus.
(c) The financial statements of the Company and its consolidated
subsidiaries included in the Registration Statement fairly present the
financial condition of the Company and its consolidated subsidiaries as of
the dates indicated and the results of operations and cash flow for the
periods therein specified; and said financial statements have been prepared
in accordance with generally accepted accounting principles applied on a
consistent basis throughout the periods involved, except as otherwise
stated therein. As used herein, "consolidated subsidiaries" means each
subsidiary of the Company which is included in the consolidated financial
statements of the Company contained in its annual report to shareholders
for 1995 in accordance with the consolidation policies set forth therein or
which would have been so included if it had been a subsidiary of the
Company as of the date of such consolidated financial statements, and each
other subsidiary of the Company which is included in consolidated financial
statements of the Company prepared from time to time thereafter.
(d) Subsequent to the respective dates as of which information is given
in the Registration Statement and the Final Prospectus and prior to the
Closing Date hereinafter mentioned, except as set forth or contemplated in
the Final Prospectus, (1) neither the Company nor any of its consolidated
subsidiaries has entered into any transaction not in the ordinary course of
business which is material to the Company and its consolidated
subsidiaries, considered as a whole, (2) there has been no material adverse
change in the properties, business, financial condition or results of
operations of the Company and its consolidated subsidiaries, considered as
a whole, and (3) no legal or governmental proceeding, which has or will
have materially affected the Company or any of its consolidated
subsidiaries, considered as a whole, or the transactions contemplated by
this Agreement, has been or will have been instituted or threatened.
(e) The Company and each of its Significant Subsidiaries (herein defined
to mean the list of the Company's domestic and foreign subsidiaries
appearing in Exhibit 21 to the Company's Annual Report on Form 10-K for the
year ended December 31, 1995) have been duly incorporated and are validly
2
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existing as corporations in good standing under the laws of their
respective states or jurisdictions of incorporation, with corporate power
and authority to own their properties and to conduct their business as
described in the Basic Prospectus and Final Prospectus. The Company and
each of its Significant Subsidiaries are duly qualified to do business as
foreign corporations and are in good standing in all states or
jurisdictions in which the ownership or lease of real property or the
conduct of business requires such qualifications, except where failure to
be so qualified cannot be reasonably expected to have a material adverse
effect on the financial condition of the Company and its consolidated
subsidiaries, considered as a whole. The Company owns all of the issued and
outstanding shares of capital stock of each of the Significant
Subsidiaries, directly or indirectly through one or more Significant
Subsidiaries (except McDonald's Australia Limited and McDonald's Property
Company Limited, of which the Company directly or indirectly owns a
majority of the capital stock), and all of such shares of the Significant
Subsidiaries are owned free and clear of any liens, charges and
encumbrances.
(f) The consummation of the transactions herein contemplated and the
fulfillment of the terms hereof will not (i) conflict with or result in a
breach of any of the terms and provisions of, or constitute a default
under, the Restated Certificate of Incorporation or By-Laws of the Company
as presently in effect or (ii) conflict with or result in a breach of any
of the terms and provisions of, or constitute a default under, any
indenture, mortgage, deed of trust or other agreement or instrument to
which the Company is a party, or any order, rule or regulation applicable
to the Company of any court or of any federal or state regulatory body or
administrative agency or other governmental body having jurisdiction over
the Company or any of its properties, except such conflicts, breaches or
defaults referred to in this subclause (ii) which would not materially and
adversely affect the Company and its consolidated subsidiaries considered
as a whole.
(g) The Securities have been duly and validly authorized and, when
issued, authenticated and delivered against payment therefor in accordance
with the terms of the Indenture and this Agreement, will constitute valid
and legally binding obligations of the Company entitled to the benefits of
the Indenture, except as enforcement thereof may be limited by applicable
bankruptcy, insolvency, moratorium and other laws affecting the
enforceability of creditors' rights and general principles of equity, and
will conform to the description thereof contained in the Final Prospectus.
The Indenture has been duly authorized by the Company and will be a valid
and legal instrument enforceable in accordance with its terms, except as
enforcement thereof may be limited by applicable bankruptcy, insolvency,
moratorium and other laws affecting the enforceability of creditors' rights
and general principles of equity. The Indenture is duly qualified under the
Trust Indenture Act.
3. SALE, PURCHASE AND DELIVERY OF SECURITIES. On the basis of the
representations and warranties herein contained, but subject to the terms and
conditions herein set forth, the Company hereby agrees to sell to the
Underwriters, severally and not jointly, and each Underwriter, severally and
not jointly (unless otherwise indicated on Schedule I hereto), agrees to
purchase from the Company, at the purchase price set forth in Schedule I
hereto, the principal amount of the Securities set forth opposite such
Underwriter's name in Schedule II hereto, except that, if Schedule I hereto
provides for the sale of Securities pursuant to delayed delivery arrangements,
the respective principal amounts of Securities to be purchased by the
Underwriters shall be as set forth in Schedule II hereto, 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 I hereto, 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
Schedule III 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 Representatives, for the
account of the Underwriters, on the Closing Date, the percentage set forth in
Schedule I hereto of the principal amount of the Securities for which Delayed
Delivery
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<PAGE>
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. The
Company will make Delayed Delivery Contracts in all cases where sales of
Contract Securities arranged by the Underwriters have been approved by the
Company but, except as the Company may otherwise agree, each such Delayed
Delivery Contract must be for not less than the minimum principal amount set
forth in Schedule I hereto and the aggregate principal amount of Contract
Securities may not exceed the maximum aggregate principal amount set forth in
Schedule I hereto. 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 II hereto 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 II hereto, 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 II hereto, less
the aggregate principal amount of Contract Securities.
Delivery of and payment for the Underwriters' Securities shall be made at the
office, on the date and at the time specified in Schedule I hereto, which date
and time may be postponed by agreement between the Representatives and the
Company or as provided in Section 9 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
Representatives for the respective accounts of the several Underwriters against
payment by the several Underwriters through the Representatives of the purchase
price thereof to or upon the order of the Company in Federal (same day) funds,
or, if so indicated on Schedule I hereto, in New York Clearinghouse (next day)
funds. Certificates for the Underwriters' Securities shall be registered in
such names and in such denominations as the Representatives may request not
less than three full business days in advance of the Closing Date.
The Company agrees to have the Underwriters' Securities available for
inspection, checking and packaging by the Representatives in New York, New
York, not later than 1:00 PM on the business day prior to the Closing Date.
If so provided in Schedule I hereto, Underwriters' Securities will be
represented by one or more definitive global Securities in book-entry form
which will be deposited by or on behalf of the Company with DTC or DTC's
designated custodian. In such case, (a) delivery of the Underwriters'
Securities shall be made to the Representatives for the respective accounts of
the several Underwriters by causing DTC to credit the Underwriters' Securities
to the account of the Representatives at DTC, and (b) the Company will cause
the certificates representing the Underwriters' Securities to be made available
to the Representatives for inspection not later than 1:00 p.m., New York City
time, on the business day prior to the Closing Date at the office of DTC or its
designated custodian.
4. COVENANTS OF THE COMPANY. The Company covenants and agrees with the
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 unless
the Company has furnished you a copy for your review prior to filing, and
the Company will not file any such proposed amendment or supplement to
which you reasonably object. Subject to the foregoing sentence, the Company
will cause the Final Prospectus to be filed with the Commission pursuant to
Rule 424 and/or Rule 434 under the Securities Act. The Company will
promptly advise the Representatives (i) when the Final Prospectus shall
have been filed with the Commission pursuant to Rule 424 and/or Rule 434
under the Securities Act, (ii) when any amendment to the Registration
Statement relating to the Securities shall have 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
4
<PAGE>
stop order suspending the effectiveness of the Registration Statement or
the institution or threatening of any proceeding for that purpose and (v)
of the receipt by the Company of any notification with respect to the
suspension of the qualification of the 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) The Company will prepare and file with the Commission, promptly upon
the request of the Representatives, any amendments or supplements to the
Registration Statement or Final Prospectus which, in the opinion of counsel
for the Underwriters, may be necessary to enable the several Underwriters
to continue the sale of the Securities, and the Company will use its best
efforts to cause any such amendments to become effective and any such
supplements to be filed with the Commission and approved for use by the
Underwriters as promptly as possible. If at any time when a prospectus
relating to the Securities is required to be delivered under the Securities
Act, any event relating to or affecting the Company occurs as a result of
which the Final Prospectus as then amended or supplemented would include an
untrue statement of a material fact, or omit to state any material fact
necessary to make the statement therein not misleading, or if it is
necessary at any time to amend or supplement the Final Prospectus to comply
with the Securities 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
which will effect such compliance. For the purposes of this paragraph (b),
the Company will furnish such information with respect to itself as the
Representatives may from time to time reasonably request.
(c) As soon as practicable, but not later than 90 days after the end of
the 12-month period beginning at the end of the current fiscal quarter of
the Company, the Company will make generally available to its security
holders and you an earnings statement covering a period of at least twelve
months beginning not earlier than said effective date which shall satisfy
the provisions of Section 11(a) of the Securities Act.
(d) The Company will furnish to the Representatives and counsel for the
Underwriters, without charge, copies of the Registration Statement
(including exhibits thereto and documents incorporated by reference
therein) and 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 Securities Act, as many copies
of any Preliminary Final Prospectus and the Final Prospectus and any
amendments thereof and supplements thereto as the Representatives may
reasonably request. The Company will pay the expenses of printing all
documents relating to the offering.
(e) The Company will furnish such information and execute such
instruments as may be required to qualify the Securities for sale under the
securities or blue sky laws of such jurisdictions within the United States
as you designate, will continue such qualifications in effect so long as
required for distribution and will arrange for the determination of the
legality of the Securities for purchase by institutional investors. The
Company shall not be required to register or qualify as a foreign
corporation nor, except as to matters and transactions relating to the
offer and sale of the Securities, consent to service of process in any
jurisdiction.
(f) So long as the Securities shall be outstanding, the Company will
deliver to you (i) as soon as practicable after the end of each fiscal
year, consolidated balance sheets, statements of income, retained earnings
and cash flows of the Company and its consolidated subsidiaries, as at the
end of and for such year and the last preceding year, all in reasonable
detail and audited by independent public accountants, (ii) as soon as
practicable after the end of each of the first three quarterly periods in
each fiscal year, unaudited consolidated balance sheets, statements of
income, retained earnings and cash flows of the Company and its
consolidated subsidiaries, as at the end of and for such period and for the
comparable period of the preceding year, all in reasonable detail, (iii) as
soon as available, all such proxy statements,
5
<PAGE>
financial statements and reports as the Company shall send or make
available to its stockholders generally, and (iv) copies of all such
annual, periodic and current reports as the Company or any subsidiary shall
file with the Commission or any securities exchange.
(g) The Company will apply for the listing of the Securities on the New
York Stock Exchange, Inc. if requested to do so by you.
(h) The Company will pay all costs and expenses in connection with the
transactions herein contemplated, including, but not limited to, the fees
and disbursements of its counsel; the fees, costs and expenses of
preparing, printing and delivering the Indenture and the Securities; the
fees, costs and expenses of the Trustee; accounting fees and disbursements;
the costs and expenses in connection with the qualification or exemption of
the Securities under state securities or blue sky laws, including filing
fees and reasonable fees and disbursements of counsel for the Underwriters
in connection therewith and in connection with any Blue Sky Memorandum; the
costs and expenses in connection with the preparation, printing and filing
of the Registration Statement (including exhibits thereto) and the Basic,
Preliminary Final, and Final Prospectus, the preparation and printing of
this Agreement and the furnishing to the Underwriters of such copies of
each prospectus as the Underwriters may reasonably require; and the fees of
rating agencies. It is understood, however, that, except as provided in
this Section and in Sections 7 and 8 hereof, the Underwriters will pay all
of their own costs and expenses, including the fees of their counsel and
any advertising expenses connected with any offers they may make.
(i) Until the business day following the Closing Date, the Company will
not, without the consent of the Representatives, offer or sell, or announce
the offering of, any debt securities (other than up to $150,000,000
principal amount of the Company's medium term notes to be issued pursuant
to the Company's Registration Statements on Form S-3 (File Nos. 33-42642
and 33-60939)) covered by the Registration Statement or any other
registration statement filed under the Securities Act.
5. CONDITIONS OF THE OBLIGATIONS OF THE UNDERWRITERS. The obligations of the
several Underwriters to purchase and pay for the 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
(including the filing of any document incorporated by reference therein) and as
of the Closing Date, to the accuracy of the written statements of Company
officers made pursuant to the provisions hereof, to the performance by the
Company of its obligations hereunder and to the following additional
conditions:
(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 shall be
pending, or, to the knowledge of the Company, shall be contemplated by the
Commission.
(b) No event, nor any material adverse change in the condition of the
Company, financial or otherwise, shall have occurred, nor shall any event
exist which makes untrue or incorrect any
material statement or information contained in the Registration Statement
or the Final Prospectus or which is not reflected in the Registration
Statement or the Final Prospectus, but should be reflected therein in order
to make the statements or information contained therein not misleading.
(c) You shall not have advised the Company that the Registration
Statement or any prospectus, or any amendment or supplement thereto,
contains an untrue statement of fact which, in the opinion of counsel for
the Underwriters, is material, or omits to state a fact which, in the
opinion of such counsel, is material and is required to be stated therein
or is necessary to make the statements therein not misleading.
(d) You shall have received at the Closing Date (or prior thereto as
indicated) the following:
(i) An opinion from Gloria Santona, Vice President, Associate General
Counsel and Secretary, or a Vice President and Assistant General
Counsel of the Company, dated the Closing Date, to the effect that:
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(A) The Company has been duly incorporated and is validly existing
as a corporation in good standing under the laws of the State of
Delaware with corporate power and authority to own its properties
and conduct its business as described in the Final Prospectus.
(B) The Indenture has been duly authorized, executed and delivered
by the Company and the Trustee, is duly qualified under the Trust
Indenture Act, and is a valid and legally binding obligation of the
Company enforceable in accordance with its terms, except as
enforcement thereof may be limited by applicable bankruptcy,
insolvency, moratorium and other laws affecting the enforceability
of creditors' rights and general principles of equity.
(C) The Securities have been duly and validly authorized by all
necessary corporate action and, when duly executed on behalf of the
Company, duly authenticated by the Trustee or the Trustee's
authenticating agent, and duly delivered to the several Underwriters
against payment therefor in accordance with the provisions of this
Agreement, in the case of the Underwriters' Securities, or to the
purchasers thereof pursuant to Delayed Delivery Contracts, in the
case of Contract Securities, will constitute legal, valid and
binding obligations of the Company enforceable in accordance with
their terms and entitled to all the benefits of the Indenture,
except as enforcement thereof may be limited by applicable
bankruptcy, insolvency, moratorium and other laws affecting the
enforceability of creditors' rights and general principles of
equity.
(D) The Indenture and the Securities conform as to legal matters
with the statements concerning them made in the Final Prospectus,
and such statements accurately set forth the provisions thereof
required to be set forth in the Final Prospectus.
(E) This Agreement and any Delayed Delivery Contracts have been
validly authorized, executed and delivered on behalf of the Company.
(F) The Registration Statement and any amendments thereto have
become effective under the Securities Act, and, to the best of the
knowledge of such counsel, 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
are pending or contemplated under the Securities Act, and the
Registration Statement, the Final Prospectus, and each amendment
thereof or supplement thereto (except for the financial statements
and other financial data included therein, as to which such counsel
need express no opinion) comply as to form in all material respects
with the requirements of the Securities Act and the Exchange Act and
the respective rules thereunder; such counsel has no reason to
believe that either the Registration Statement or the Final
Prospectus, or any such amendment or supplement, contains any untrue
statement of a material fact or omits to state a material fact
required to be stated therein or necessary to make the statements
therein not misleading; the descriptions in the Registration
Statement and Final Prospectus of statutes, legal and governmental
proceedings and contracts and other documents are accurate and
fairly present the information required to be shown; and such
counsel does not know of any legal or governmental proceedings
required to be described in the Final Prospectus which are not
described as required, nor 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.
(G) The consummation of the transactions herein contemplated and
the fulfillment of the terms hereof or of any Delayed Delivery
Contracts will not result in a breach of any of the terms and
provisions of, or constitute a default under, any indenture,
mortgage, deed of trust or other agreement or instrument to which,
to the knowledge of such counsel, the Company is a party, or the
Restated Certificate of Incorporation or By-Laws of the Company as
presently in effect or, to the knowledge of such counsel, any order,
rule or regulation applicable to the Company of any court or of any
federal or state regulatory body or administrative agency or other
governmental body having jurisdiction over the Company or its
properties.
7
<PAGE>
(H) No authorization, approval, consent or other action of any
governmental authority or agency is required in connection with the
sale of the Securities as contemplated by this Agreement or in any
Delayed Delivery Contracts except such as may be required under the
Securities Act or under state securities or blue sky laws.
(ii) Such opinion or opinions of counsel for the Underwriters, dated
the Closing Date, with respect to the sufficiency of all corporate
proceedings and other legal matters relating to this Agreement, any
Delayed Delivery Contracts, the validity of the Securities, the
Registration Statement, the Final Prospectus and other related matters
as you may reasonably request. The Company shall have furnished to such
counsel such documents as they may reasonably request for the purpose
of enabling them to render their opinions. In connection with such
opinions, such counsel may rely on representations or certificates of
officers of the Company.
(iii) A certificate of the President or a Vice President, and the
Chief Financial Officer of the Company or its Treasurer, dated the
Closing Date, to the effect that:
(A) The representations and warranties of the Company in Section 2
of this Agreement are true and correct as of 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.
(B) 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, to the knowledge of the
respective signers of the certificate, are contemplated under the
Securities Act.
(C) The signers of the certificate have carefully examined the
Registration Statement and the Final Prospectus; neither the
Registration Statement, the Final Prospectus nor any amendment or
supplement thereto includes, as of the Closing Date, any untrue
statement of a material fact or omits, as of the Closing Date, to
state any material fact required to be stated therein or necessary
to make the statements therein not misleading; since the latest
respective dates as of which information is given in the
Registration Statement, there has been no material adverse change in
the financial position, business or results of operations of the
Company and its consolidated subsidiaries, considered as a whole,
except as set forth in or contemplated by the Final Prospectus; and
since the effective date of the Registration Statement, as amended,
no event has occurred which is required to be set forth in the Final
Prospectus which has not been so set forth.
(iv) You shall have received a letter from Ernst & Young LLP, dated
the Closing Date, addressed to you substantially in the form heretofore
approved by you.
(e) Prior to the Closing Date, the Company shall have furnished to you
such further certificates and documents as you may reasonably request.
(f) 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 condition of the Underwriters' obligations hereunder required to be
satisfied prior to the Closing Date is not so satisfied, this Agreement may be
terminated by you by notice in writing or by facsimile transmission to the
Company.
In rendering the opinions described in Sections 5(d)(i) and (ii) above, Ms.
Gloria Santona, other counsel for the Company, and counsel for the Underwriters
may, as to matters involving the laws of any state other than Illinois, rely
upon the opinion or opinions of local counsel satisfactory to you, but in such
case a signed copy of each such opinion shall be furnished to you.
8
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All such opinions (including opinions, if any, of local counsel),
certificates, letters and documents will be in compliance with the provisions
hereof only if they are in all material respects satisfactory to you and to
counsel for the Underwriters, as to which both you and such counsel shall act
reasonably. The Company will furnish you with such conformed copies of such
opinions, certificates, letters and documents as you request.
You, on behalf of the Underwriters, may waive in writing the compliance by
the Company of any one or more of the foregoing conditions or extend the time
for their performance.
6. REPRESENTATION OF THE UNDERWRITERS. Each of the Underwriters severally
represents and warrants to the Company that the information furnished to the
Company in writing by such Underwriter or by you expressly for use in the
preparation of the Registration Statement or the Final Prospectus does not, and
any amendments thereof or supplements thereto thus furnished will not, contain
an untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary to make the statements therein not
misleading.
7. TERMINATION OF AGREEMENT. This Agreement may be terminated by you on
behalf of the Underwriters by notice in writing delivered to the Company prior
to the Closing Date if prior to such time (i) trading in the Company's common
stock shall have been suspended by the Commission on the New York Stock
Exchange for a period of twenty-four hours or more or trading in securities
generally on the New York Stock Exchange shall have been suspended or
materially limited, in either case to such a degree as would in your judgment
materially adversely affect the market for the Securities; (ii) a general
moratorium on commercial banking activities in the State of New York or the
United States shall have been declared by Federal authorities; or (iii) there
has occurred any material outbreak, or material escalation, of hostilities
involving the United States or other national or international calamity or
crisis, of such magnitude and severity in its effect on the financial markets
of the United States, in your reasonable judgment, as to prevent or materially
impair the marketing, or enforcement of contracts for sale, of the Securities.
If this Agreement shall be terminated by you because of any failure on the
part of the Company to comply with any of the terms or to fulfill any of the
conditions of this Agreement, or if for any reason the Company shall be unable
to perform its obligations under this Agreement, the Company shall pay, in
addition to the costs and expenses referred to in Section 4(h), all reasonable
out-of-pocket expenses incurred by the Underwriters in contemplation of the
performance by them of their obligations hereunder, including but not limited
to the reasonable fees and disbursements of counsel for the Underwriters, the
Underwriters' reasonable printing and traveling expenses, and postage and
telephone charges relating directly to the offering contemplated by the Final
Prospectus, and also including advertising expenses incurred after the
effective date of the Registration Statement, it being understood that such
out-of-pocket expenses shall not include any compensation, salaries or wages of
the officers, partners or employees of any of the Underwriters.
The Company shall not in any event be liable to the several Underwriters for
damages on account of loss of anticipated profits arising out of the
transactions contemplated by this Agreement.
8. INDEMNIFICATION AND CONTRIBUTION. (a) The Company will indemnify and hold
harmless each Underwriter and each person, if any, who controls any Underwriter
within the meaning of the Securities Act or the Exchange Act against any
losses, claims, damages or liabilities, joint or several, to which such
Underwriter or such controlling person may become subject, under the Securities
Act, the Exchange Act or otherwise, insofar as such losses, claims, damages or
liabilities (or actions in respect thereof) arise out of or are based upon any
untrue statement or alleged untrue statement of any material fact contained in
the Registration Statement or any amendment thereof, the Basic Prospectus, any
Preliminary Final Prospectus or the Final Prospectus, or any amendment 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 therein or
necessary to make the statements therein not misleading, and will reimburse
each Underwriter and each such controlling person for any legal or other
expenses reasonably incurred by such Underwriter or such controlling person in
connection with investigating or defending any such loss, claim, damage,
liability or action; provided, however,
9
<PAGE>
that the Company will not be liable in any such case to the extent that any
such loss, claim, damage or liability arises out of or is based upon an untrue
statement or alleged untrue statement or omission or alleged omission made
therein in reliance upon and in conformity with written information furnished
to the Company by or on behalf of any Underwriter through the Representatives
specifically for use in the preparation thereof; and provided, further, that
the foregoing indemnification with respect to the Basic Prospectus, any
Preliminary Final Prospectus or the 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, if such Underwriter failed to send or give copies of the Final
Prospectus, as amended or supplemented, excluding documents incorporated
therein by reference, to such person at or prior to the written confirmation of
the sale of such Securities to such person in any case where such delivery is
required by the Securities Act and the untrue statement or omission of a
material fact contained in the Basic Prospectus or any Preliminary Final
Prospectus was corrected in the Final Prospectus (or the Final Prospectus as
amended or supplemented). 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 person, if any, who controls the Company either within the
meaning of the Securities Act or the Exchange Act, each of its directors and
each of its officers who has signed the Registration Statement, against any
losses, claims, damages or liabilities to which the Company, any such
controlling person or any such director or officer may become subject, under
the Securities Act, the Exchange Act, or otherwise, 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 furnished to the
Company by or on behalf of such Underwriter through you specifically for use in
the preparation of the documents referred to in the foregoing indemnity. This
indemnity agreement will be in addition to any liability which any Underwriter
may otherwise have. The Company acknowledges that the statements set forth in
the last paragraph of the cover page of the Final Prospectus and under the
heading "Underwriting" or "Plan of Distribution" and, if Schedule I hereto
provides for sale of Securities pursuant to delayed delivery arrangements, in
the last sentence under the heading "Delayed Delivery Arrangements" in the
Final Prospectus constitute the only information furnished in writing by or on
behalf of the several Underwriters for inclusion in the Final Prospectus, and
you confirm that such statements are correct. This indemnity agreement will be
in addition to any liability which each such Underwriter may otherwise have.
(c) Promptly after receipt by an indemnified party under this Section of
notice of the commencement of any action, such indemnified party will, if a
claim in respect thereof is to be made against the indemnifying party under
this Section, 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 this Section. 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 in 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 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 in addition to those
available to the indemnifying party, the indemnified party or parties shall
have the right to select separate counsel to assume such legal defenses and to
otherwise participate in the defense of such action on behalf of such
indemnified party or parties. Upon receipt by such indemnified party of notice
from the indemnifying party of its election so 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 8 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
such counsel in connection with the assumption 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
10
<PAGE>
expenses of more than one separate counsel, approved by the Representatives of
the Underwriters in the case of subparagraph (a), representing the indemnified
parties under subparagraph (a) or (b), as the case may be, 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; provided, further, that, with
respect to legal and other expenses incurred by an indemnified party for which
an indemnifying party shall be liable hereunder, all such legal fees and
expenses shall be reimbursed by the indemnifying party as they are incurred.
(d) In order to provide for just and equitable contribution in circumstances
in which the indemnification provided for in paragraph (a) of this Section 8 is
due in accordance with its terms but is for any reason held by a court to be
unavailable from the Company on grounds of policy or otherwise, the Company and
the Underwriters shall contribute to the aggregate losses, claims, damages and
liabilities (including legal or other expenses reasonably incurred in
connection with investigating or defending same) to which the Company and one
or more of the Underwriters may be subject in such proportion so that the
Underwriters are responsible for that portion represented by the percentage
that the underwriting discount bears to the sum of such discount and the
purchase price of the Securities set forth in Schedule I hereto and the Company
is responsible for the balance; provided, however, that (i) in no case shall
any Underwriter (except as may be provided in any agreement among underwriters
relating to the offering of the Securities) be responsible for any amount in
excess of the underwriting discount applicable to the Securities purchased by
such Underwriter hereunder and (ii) no person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act)
shall be entitled to contribution from any person who was not guilty of such
fraudulent misrepresentation. For purposes of this Section 8, each person who
controls an Underwriter within the meaning of the Securities Act shall have the
same rights to contribution as such Underwriter, and each person who controls
the Company within the meaning of either the Securities Act or the Exchange
Act, each officer of the Company who shall have signed the Registration
Statement and each director of the Company shall have the same rights to
contribution as the Company, subject in each case to clause (i) of this
paragraph (d). Any party entitled to contribution will, promptly after receipt
of notice of commencement of any action, suit or proceeding against such party
in respect of which a claim for contribution may be made against another party
or parties under this paragraph (d), notify such party or parties from whom
contribution may be sought, but the omission to so notify such party or parties
shall not relieve the party or parties from whom contribution may be sought
from any other obligation it or they may have hereunder or otherwise than under
this paragraph (d).
9. DEFAULT BY AN UNDERWRITER. If the Underwriters' obligations to purchase
Securities pursuant to Section 3 hereof are several and not joint and if any
one or more Underwriters shall fail to purchase and pay for any of the
Securities agreed to be purchased by such Underwriter or Underwriters hereunder
and such failure to purchase shall constitute a default in the performance of
its or their obligations under this Agreement and unless otherwise provided in
Schedule I hereto, the remaining Underwriters shall be obligated severally to
take up and pay for (in the respective proportions which the amount of
Securities set forth opposite their names in Schedule II hereto bear to the
aggregate amount of Securities set opposite the names of all the remaining
Underwriters) the Securities which the defaulting Underwriter or Underwriters
agreed but failed to purchase; provided, however, that in the event that the
aggregate amount of Securities which the defaulting Underwriter or Underwriters
agreed but failed to purchase shall exceed 10% of the aggregate amount of
Securities set forth in Schedule II hereto, the remaining Underwriters shall
have the right to purchase all, but shall not be under any obligation to
purchase any, of the Securities, and if such nondefaulting Underwriters do not
purchase all the Securities, this Agreement will terminate without liability to
any nondefaulting Underwriter or the Company. In the event of a default by any
Underwriter as set forth in this Section 9, the Closing Date shall be postponed
for such period, not exceeding seven days,
as the Representatives shall determine in order that the required changes in
the Registration Statement and the Final Prospectus or in any other documents
or arrangements may be effected. Nothing contained in this Agreement shall
relieve any defaulting Underwriter of its liability, if any, to the Company and
any nondefaulting Underwriter for damages occasioned by its default hereunder.
11
<PAGE>
10. REPRESENTATIONS AND INDEMNITIES TO SURVIVE DELIVERY. The respective
indemnities, agreements, representations and warranties of the Company and the
several 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, the Company or any of its officers or directors or
any controlling person, and will survive delivery of and payment for the
Securities. The provisions of Sections 7 and 8 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 Representatives, will be mailed, delivered
or sent by facsimile transmission and confirmed to them, at the address
specified in Schedule I hereto; or, if sent to the Company, will be mailed,
delivered or sent by facsimile transmission and confirmed to the Company at One
McDonald's Plaza, Oak Brook, Illinois 60521, Attention of the Treasurer, with a
copy to the Controller.
12. SUCCESSORS; GOVERNING LAW. This Agreement will inure to the benefit of
and be binding upon the parties hereto and the officers and directors and
controlling persons referred to in Section 8 hereof and their respective
successors, assigns, heirs, executors and administrators, and no other persons
will have any right or obligation hereunder. The terms "successors" and
"assigns" as used herein shall not include a purchaser as such from any
Underwriter. This Agreement shall be governed by and construed and enforced in
accordance with, the internal laws of the State of Illinois.
13. BUSINESS DAY. For purposes of this Agreement, "business day" means any
day on which the New York Stock Exchange is open for trading.
If the foregoing is in accordance with your understanding of our agreement,
sign and return to us the enclosed duplicate hereof, whereupon it will become a
binding agreement between the Company and the several Underwriters in
accordance with its terms.
Very truly yours,
MCDONALD'S CORPORATION
By: _________________________________
The foregoing Underwriting Agreement
is hereby confirmed and accepted by
us in Chicago, Illinois, acting on
behalf of ourselves, the other Rep-
resentatives (if any), and the sev-
eral Underwriters (if any) named in
Schedule II annexed hereto, as of
the date first above written.
[NAME OF REPRESENTATIVE]
By: _________________________________
Date:
12
<PAGE>
SCHEDULE I
UNDERWRITING AGREEMENT DATED
REGISTRATION STATEMENT NO.
REPRESENTATIVES:
TITLE, PURCHASE PRICE AND DESCRIPTION OF SECURITIES:
Title:
Aggregate Principal Amount:
Price to Public:
Purchase Price by Underwriter (include accrued
interest or amortization if applicable):
Maturity:
Interest Rate:
Interest Payment Dates:
Regular Record Dates:
Redemption Provisions:
Sinking Fund Provisions:
Other Provisions:
SALE AND DELIVERY PROVISIONS UNDER SECTION 3:
Obligation to Purchase is:
several and not joint [_]
several and not joint; provided, however that,
notwithstanding the provisions of Section 9 of the
Underwriting Agreement, the Representative(s)
listed above will, subject to the terms and
conditions hereof, purchase or cause to be
purchased any Securities which any defaulting
Underwriter or Underwriters have agreed but failed
or refused to purchase pursuant to Section 3
hereof [_]
joint and several [_]
Payment to Be Made in: New York Clearinghouse (next day) funds [_]
or Federal (same day) funds [_]
Delivery of Securities: Physical delivery to Underwriters through
Representatives [_]
or delivery to Underwriters through facilities of
DTC by delivery to DTC of one or more definitive
global securities in book-entry form [_]
CLOSING DATE, TIME AND LOCATION:
[Delayed Delivery Arrangements:
Payment to Be Made in: New York Clearinghouse (next day) funds [_]
or Federal (same day) funds [_]
Fee:
Minimum principal amount of each contract:
Maximum aggregate principal amount of all contracts:]
ADDRESS FOR NOTICE TO REPRESENTATIVES:
<PAGE>
SCHEDULE II
<TABLE>
<CAPTION>
UNDERWRITERS PRINCIPAL AMOUNT
------------ ----------------
<S> <C>
------------
Total.......................................... $
============
</TABLE>
<PAGE>
SCHEDULE III
DELAYED DELIVERY CONTRACT
, 19
[Insert name and address of lead Representative]
Dear Sirs:
The undersigned hereby agrees to purchase from McDonald's Corporation (the
"Company"), and the Company agrees to sell to the undersigned, on ,
19 , (the "Delivery Date"), $
principal amount of the Company's
(the "Securities") offered by the Company's Final Prospectus
dated , 19 , receipt of a copy of which is hereby acknowledged, at a
purchase price of % of the principal amount thereof, plus accrued interest,
if any, thereon from , 19 , to the date of payment and delivery, 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 on the Delivery Date to or upon the order of the Company
in New York Clearinghouse (next day) funds or Federal (same day) funds, as
specified in Schedule I to the Underwriting Agreement referred to in the Final
Prospectus mentioned above, at your office or at such other places 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 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)
and (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 Final Prospectus 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 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.
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.
<PAGE>
This agreement shall be governed by and construed and enforced in accordance
with, the internal laws of the State of Illinois.
Very truly yours,
-------------------------------------
(Name of Purchaser)
By __________________________________
(Signature and Title of Officer)
-------------------------------------
(Address)
Accepted:
McDONALD'S CORPORATION
By __________________________________
(Authorized Signature)
<PAGE>
EXHIBIT 4(A)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
MCDONALD'S CORPORATION
AND
FIRST UNION NATIONAL BANK
TRUSTEE
----------------
INDENTURE
----------------
DATED AS OF ________ ___ , 1996
SENIOR DEBT SECURITIES
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<PAGE>
REFERENCE SHEET*
Reference is made to the following provisions of the Trust Indenture Act of
1939, as amended, which establish certain duties and responsibilities of the
Company and the Trustee which may not be set forth in this Indenture:
<TABLE>
<CAPTION>
SECTION SUBJECT
------- -------------------------------
<C> <S>
310(b) Disqualification of the Trustee
for conflicting interest
311 Preferential collection of
claims of the Trustee as
creditor of the Company
312(a) Periodic filing of information
by the Company with the
Trustee
312(b) Access of Holders to
information
313(a) Annual report of the Trustee to
Holders
313(b) Additional reports of the
Trustee to Holders
313(d) Filing of reports with stock
exchanges and Commission
314(a) Reports by the Company,
including annual compliance
certificate
314(c) Evidence of compliance with
conditions precedent
315(a) Duties of the Trustee prior to
default
</TABLE>
<TABLE>
<CAPTION>
SECTION SUBJECT
------- ------------------------------------------------------------------------
<C> <S>
315(b) Notice of default from the Trustee to Holders
315(c) Duties of the Trustee in case of default
315(d) Provisions relating to responsibility of the Trustee
315(e) Assessment of costs against litigating Holders in certain circumstances
316(a) Directions and waivers by Holders in certain circumstances
316(b) Prohibition of impairment of right of Holders to payment
316(c) Right of the Company to set record date for certain purposes
317(a) Special powers of the Trustee
317(b) Duties of paying agents
318(a) Provisions of Trust Indenture Act of 1939 to control in case of conflict
</TABLE>
- --------
* This reference sheet is not part of the Indenture.
<PAGE>
TABLE OF CONTENTS*
ARTICLE ONE
DEFINITIONS
<TABLE>
<CAPTION>
SECTION PAGE
------- ----
<C> <S> <C>
Section 1.01. Definitions............. 1
Authenticating Agent.... 1
Board of Directors...... 1
Company................. 1
Company Request......... 1
Debt Security........... 2
Designated Officers..... 2
Dollars................. 2
Event of Default........ 2
Holder.................. 2
Indenture............... 2
Interest................ 2
Officers' Certificate... 2
Opinion of Counsel...... 2
Original Issue Discount
Security................ 2
Outstanding............. 2
Person.................. 3
Place of Payment........ 3
Principal Office of the
Trustee................. 3
Principal Property...... 3
Responsible Officer..... 3
Restricted Subsidiary... 3
Subsidiary.............. 3
Trustee................. 3
Trust Indenture Act of
1939.................... 4
U.S. Government
Obligations............. 4
Yield to Maturity....... 4
ARTICLE TWO
DESCRIPTION, EXECUTION,
REGISTRATION AND EXCHANGE OF DEBT SECURITIES
Section 2.01. Forms................... 4
Section 2.02. Amount Unlimited;
Issuable in Series...... 5
Section 2.03. Authentication.......... 6
Section 2.04. Date and Denomination of
Debt Securities......... 7
Section 2.05. Execution of Debt
Securities.............. 7
Section 2.06. Exchange and
Registration of Transfer
of Debt Securities...... 8
Section 2.07. Mutilated, Destroyed,
Lost or Stolen Debt
Securities.............. 9
Section 2.08. Temporary Debt
Securities.............. 9
Section 2.09. Cancellation of Debt
Securities Paid ........ 10
Section 2.10. Computation of Interest. 10
</TABLE>
- --------
*This table of contents shall not, for any purpose, be deemed to be a part of
the Indenture.
<PAGE>
ARTICLE THREE
REDEMPTION OF DEBT SECURITIES; SINKING FUNDS
<TABLE>
<CAPTION>
SECTION PAGE
------- ----
<C> <S> <C>
Section 3.01. Applicability of Article................................. 10
Section 3.02. Notice of Redemption; Selection of Debt Securities....... 10
Section 3.03. Payment of Debt Securities Called for Redemption......... 11
Section 3.04. Satisfaction of Mandatory Sinking Fund Payments with Debt
Securities............................................... 11
Section 3.05. Redemption of Debt Securities for Sinking Fund........... 12
ARTICLE FOUR
PARTICULAR COVENANTS OF THE COMPANY
Section 4.01. Payment of Principal, Premium and Interest............... 13
Section 4.02. Offices for Notices and Payments ........................ 13
Section 4.03. Appointments to Fill Vacancies in Trustee's Office....... 13
Section 4.04. Provisions as to Paying Agent............................ 14
Section 4.05. Statement as to Compliance............................... 14
Section 4.06. Limitation on Liens...................................... 14
ARTICLE FIVE
HOLDER LISTS
AND REPORTS BY THE TRUSTEE
Section 5.01. Holder Lists............................................. 16
Section 5.02. Delivery of Reports by the Trustee....................... 16
ARTICLE SIX
REMEDIES OF THE TRUSTEE AND
HOLDERS ON EVENT OF DEFAULT
Section 6.01. Events of Default........................................ 16
Section 6.02. Payment of Debt Securities on Default; Suit Therefor..... 18
Section 6.03. Application of Moneys Collected by Trustee............... 19
Section 6.04. Proceedings by Holders of Debt Securities................ 20
Section 6.05. Proceedings by Trustee................................... 20
Section 6.06. Remedies Cumulative and Continuing....................... 20
Section 6.07. Direction of Proceedings and Waiver of Defaults by
Holders of Debt Securities............................... 21
</TABLE>
<PAGE>
ARTICLE SEVEN
CONCERNING THE TRUSTEE
<TABLE>
<CAPTION>
SECTION PAGE
------- ----
<C> <S> <C>
Section 7.01. Reliance on Documents and Opinions........................ 21
Section 7.02. Responsibility for Recitals............................... 22
Section 7.03. Ownership of Debt Securities.............................. 22
Section 7.04. Moneys to be Held in Trust................................ 22
Section 7.05. Compensation and Expenses of Trustee...................... 22
Section 7.06. Officers' Certificate as Evidence......................... 22
Section 7.07. Eligibility of Trustee.................................... 23
Section 7.08. Resignation or Removal of Trustee......................... 23
Section 7.09. Acceptance by Successor Trustee........................... 24
Section 7.10. Succession by Merger...................................... 25
Section 7.11. Authenticating Agents..................................... 25
ARTICLE EIGHT
CONCERNING THE HOLDERS
Section 8.01. Action by Holders......................................... 26
Section 8.02. Proof of Execution by Holders............................. 26
Section 8.03. Who Are Deemed Absolute Owners............................ 26
Section 8.04. Company-Owned Debt Securities Disregarded................. 26
Section 8.05. Revocation of Consents; Future Holders Bound.............. 26
ARTICLE NINE
HOLDERS' MEETINGS
Section 9.01. Purposes of Meetings...................................... 27
Section 9.02. Call of Meetings by Trustee............................... 27
Section 9.03. Call of Meetings by the Company or Holders................ 27
Section 9.04. Qualifications for Voting................................. 27
Section 9.05. Regulations............................................... 28
Section 9.06. Voting.................................................... 28
Section 9.07. No Delay of Rights by Meeting............................. 28
</TABLE>
<PAGE>
ARTICLE TEN
SUPPLEMENTAL INDENTURES
<TABLE>
<CAPTION>
SECTION PAGE
------- ----
<C> <S> <C>
Section 10.01. Supplemental Indentures without Consent of Holders....... 29
Section 10.02. Supplemental Indentures with Consent of Holders.......... 29
Section 10.03. Compliance with Trust Indenture Act; Effect of
Supplemental Indentures.................................. 30
Section 10.04. Notation on Debt Securities.............................. 30
Section 10.05. Evidence of Compliance of Supplemental Indenture to be
Furnished Trustee........................................ 30
ARTICLE ELEVEN
CONSOLIDATION, MERGER, SALE OR CONVEYANCE
Section 11.01. Company May Not Consolidate Except Under Certain
Conditions.............................................. 31
Section 11.02. Successor Corporation to be Substituted.................. 31
Section 11.03. Documents to be Given Trustee............................ 31
ARTICLE TWELVE
SATISFACTION AND DISCHARGE OF INDENTURE OR CERTAIN OBLIGATIONS
Section 12.01. Discharge of Indenture................................... 31
Section 12.02. Discharge of Obligations................................. 32
Section 12.03. Deposited Moneys to be Held in Trust by Trustee.......... 33
Section 12.04. Paying Agent to Repay Moneys Held........................ 33
Section 12.05. Return of Unclaimed Moneys............................... 33
ARTICLE THIRTEEN
IMMUNITY OF INCORPORATORS,
STOCKHOLDERS, OFFICERS AND DIRECTORS
Section 13.01. Indenture and Debt Securities Solely Corporate
Obligations............................................. 33
ARTICLE FOURTEEN
MISCELLANEOUS PROVISIONS
Section 14.01. Provisions Binding on Company's Successors............... 34
Section 14.02. Official Acts by Successor Corporation................... 34
Section 14.03. Addresses for Notices.................................... 34
Section 14.04. Governing Law............................................ 34
Section 14.05. Legal Holidays........................................... 34
Section 14.06. Table of Contents and Headings........................... 34
Section 14.07. Execution in Counterparts................................ 34
Section 14.08. Separability............................................. 34
Section 14.09. Benefits................................................. 34
EXHIBIT A Form of Note
</TABLE>
<PAGE>
This Indenture, dated as of , 1996 between McDonald's
Corporation, a corporation duly organized and existing under the laws of the
State of Delaware (the "Company"), and First Union National Bank, a national
banking association (the "Trustee").
WITNESSETH:
Whereas, the Company has duly authorized the execution and delivery of this
Indenture to provide for the issuance from time to time of its unsecured bonds,
debentures, notes and other evidences of indebtedness to be issued in one or
more series as in this Indenture provided;
Whereas, all acts and things necessary to make this Indenture, when duly
executed and delivered by the parties hereto, a valid agreement of the Company
according to its terms, have been done and performed, and the execution and
delivery by the Company of this Indenture have in all respects been duly
authorized;
Now, therefore:
In order to declare the terms and conditions upon which the Debt Securities
are authenticated, issued and received, and in consideration of the premises
and the purchase of the Debt Securities by the Holders thereof, it is mutually
covenanted and agreed, for the equal and proportionate benefit of all Holders
of the Debt Securities or of series thereof, as follows:
ARTICLE ONE
DEFINITIONS
SECTION 1.01. DEFINITIONS. The terms defined in this Section 1.01 (except as
herein otherwise expressly provided or unless the context otherwise requires)
for all purposes of this Indenture shall have the respective meanings specified
in this Section 1.01. All other terms used in this Indenture which are defined
in the Trust Indenture Act of 1939, as amended, or which are by reference
therein defined in the Securities Act of 1933, as amended (except as herein
otherwise expressly provided or unless the context otherwise requires), shall
have the meanings assigned to such terms in said Trust Indenture Act and in
said Securities Act as in force at the date of this Indenture as originally
executed. The words "herein", "hereof", and "hereunder" and other words of
similar import refer to this Indenture as a whole and not to any particular
Article, Section or other subdivision.
"Authenticating Agent" means any agent or agents of the Trustee which at the
time shall be appointed and acting pursuant to Section 7.11.
"Board of Directors" means the Board of Directors of the Company, or any duly
authorized committee of that Board including, without limitation, the Executive
Committee of the Board of Directors.
"Company" means McDonald's Corporation, a Delaware corporation, until any
successor corporation shall have become such pursuant to the provisions of
Article Eleven, and thereafter "Company" shall mean such successor, except as
otherwise provided in Article Eleven.
"Company Request" and "Company Order" mean, respectively, a written request
or order signed in the name of the Company by the Chairman of the Board, Vice
Chairman of the Board, President or any Vice President, and by its Chief
Financial Officer, Treasurer, an Assistant Treasurer, Controller, an Assistant
Controller, Secretary, or an Assistant Secretary, and delivered to the Trustee.
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"Debt Security" or "Debt Securities" means any debt security or debt
securities of the Company, as the case may be, issued, authenticated and
delivered under this Indenture.
"Designated Officers" means such officers of the Company as are authorized
pursuant to a resolution of the Board of Directors to issue Debt Securities, to
the extent authorized by such resolution and applicable law.
"Dollars" and "$" mean the lawful currency of the United States of America.
"Event of Default" has the meaning specified in Section 6.01.
"Holder", or other similar terms, means any person in whose name at the time
a particular Debt Security is registered on the books of the Company kept for
that purpose in accordance with the terms hereof.
"Indenture" means this instrument as originally executed or as it may be
amended or supplemented from time to time as herein provided, and shall include
the form and terms of particular series of Debt Securities established as
contemplated hereunder.
"interest" when used with respect to a non-interest bearing Debt Security,
means interest payable after the principal thereof has become due and payable
whether at maturity, by declaration of acceleration, by call for redemption,
pursuant to a sinking fund, or otherwise.
"Officers' Certificate" means a certificate signed by the Chairman of the
Board, the Vice Chairman of the Board, the President or any Vice President and
by the Chief Financial Officer, Controller, an Assistant Controller, Treasurer,
an Assistant Treasurer, the Secretary or an Assistant Secretary of the Company.
Each such certificate shall comply with Section 314(c) of the Trust Indenture
Act of 1939, to the extent applicable.
"Opinion of Counsel" means an opinion in writing signed by legal counsel, who
may be an employee of or of counsel to the Company or the Trustee, or may be
other counsel satisfactory to the Trustee. Each such opinion shall comply with
Section 314(c) of the Trust Indenture Act of 1939, to the extent applicable.
"Original Issue Discount Security" means any Debt Security which provides for
an amount less than the principal amount thereof to be due and payable upon a
declaration of acceleration of the maturity thereof pursuant to Section 6.01.
"Outstanding", when used with reference to Debt Securities, shall, except as
otherwise required by the Trust Indenture Act of 1939 and subject to the
provisions of Section 8.04, mean, as of any particular time, all Debt
Securities authenticated and delivered by the Trustee or any duly appointed
Authenticating Agent under this Indenture, except
(a) Debt Securities theretofore cancelled by the Trustee, Authenticating
Agent or paying agent or delivered to the Trustee for cancellation;
(b) Debt Securities, or portions thereof, for the payment or redemption
of which moneys in the necessary amount shall have been deposited in trust
with the Trustee or with any paying agent (other than the Company) or shall
have been set aside and segregated in trust by the Company for the Holders
of such Debt Securities (if the Company shall act as its own paying agent),
provided that if such Debt Securities are to be redeemed prior to the
maturity thereof, notice of such redemption shall have been mailed as in
Article Three provided, or provision satisfactory to the Trustee shall have
been made for mailing such notice; and
(c) Debt Securities in lieu of or in substitution for which other Debt
Securities shall have been authenticated and delivered, or which shall have
been paid, pursuant to the terms of Section 2.07, unless proof satisfactory
to the Company is presented that any such Debt Securities are held by
persons in whose hands any of such Debt Securities is a valid, binding and
legal obligation of the Company.
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In determining whether the Holders of the requisite principal amount of
Outstanding Debt Securities have given any request, demand, authorization,
direction, notice, consent or waiver hereunder, the principal amount of an
Original Issue Discount Security that shall be deemed to be Outstanding for
such purposes shall be the amount of the principal thereof that would be due
and payable as of the date of such determination upon a declaration of
acceleration of the maturity thereof pursuant to Section 6.01.
In determining whether the Holders of the requisite principal amount of all
series of Outstanding Debt Securities denominated in a currency other than U.S.
Dollars have given any request, demand, authorization, direction, notice,
consent or waiver hereunder, and for the purpose of Sections 4.06 and 9.05
herein, the principal amount of such Outstanding Debt Securities shall be
deemed to be that amount of U.S. Dollars that could be obtained for such
principal amount on the basis of the spot rate of exchange for purchasing U.S.
Dollars with such currency as of the date of determination.
"Person" means any individual, corporation, partnership, joint venture,
association, joint-stock company, trust, unincorporated organization or
government or any agency or political subdivision thereof.
"Place of Payment" means a city or any political subdivision thereof
designated as such pursuant to Sections 2.02 and 4.02.
"Principal Office of the Trustee", or other similar term, means the office of
the Trustee at which at any particular time its corporate trust business shall
be principally administered, which office at the date hereof is located at 123
South Broad Street, Philadelphia, Pennslyvania 19109, Attention: Corporate
Trust Administration.
"Principal Property" means all real property owned by the Company or any
Restricted Subsidiary which is located within the continental United States of
America and, in the opinion of the Board of Directors, is of material
importance to the total business conducted by the Company and its consolidated
affiliates as an entity.
"Responsible Officer" when used with respect to the Trustee means the
chairman or any vice chairman of the board of directors, the chairman or any
vice chairman of the executive committee of the board of directors, the
president, any executive vice president, any senior vice president, any vice
president, any assistant vice president, the cashier, any assistant cashier,
the secretary, any assistant secretary, the treasurer, any assistant treasurer,
any senior trust officer, any trust officer, any assistant trust officer, or
any other officer or assistant officer of the Trustee customarily performing
functions similar to those performed by the persons who at the time shall be
such officers, respectively, or to whom any corporate trust matter is referred
because of his knowledge of and familiarity with the particular subject.
"Restricted Subsidiary" means any Subsidiary (i) substantially all the
property of which is located within the continental United States of America,
(ii) which owns Principal Property and (iii) in which the Company's investment,
direct or indirect and whether in the form of equity, debt, advances or
otherwise, is in excess of U.S. $1,000,000,000 as shown on the books of the
Company as of the end of the fiscal year immediately preceding the date of
determination; provided, however, that "Restricted Subsidiary" shall not
include any Subsidiary primarily engaged in financing activities, primarily
engaged in the leasing of real property to persons other than the Company and
its Subsidiaries, or which is characterized by the Company as a temporary
investment.
"Subsidiary" means any corporation or other Person of which the Company, or
the Company and one or more Subsidiaries, or any one or more Subsidiaries,
directly or indirectly owns voting securities or other similar equity interests
entitling the owners thereof to elect a majority of the directors or
individuals holding similar positions in other Persons, either at all times or
so long as there is no default or contingency which
permits the owners of any other class or classes of securities or other
interests to vote for the election of one or more directors or individuals
holding similar positions in other Persons, but shall not include any
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corporation or other Person with respect to which the Company or any other
Subsidiary has become entitled to elect a majority of the directors or
individuals holding similar positions in other Persons solely due to a default
or other contingency which is temporary in character and has had a continuous
existence of less than one year.
"Trustee" means First Union National Bank and, subject to the provisions of
Article Seven hereof, shall also include its successors and assigns as Trustee
hereunder. If pursuant to the provisions of this Indenture there shall be at
any time more than one Trustee hereunder, the term "Trustee" as used with
respect to Debt Securities of any series shall mean the Trustee with respect to
Debt Securities of that series.
"Trust Indenture Act of 1939" means the Trust Indenture Act of 1939, as
amended, as it was in force at the date of execution of this Indenture, except
as provided in Section 10.03.
"U.S. Government Obligations" shall mean securities that are (i) direct
obligations of the United States of America for the payment of which its full
faith and credit is pledged or (ii) obligations of a Person controlled or
supervised by and acting as an agency or instrumentality of the United States
of America the timely payment of which is unconditionally guaranteed as a full
faith and credit obligation by the United States of America, which, in either
case under clause (i) or (ii) are not callable or redeemable at the option of
the issuer thereof, and shall also include a depository receipt issued by a
bank or trust company as custodian with respect to any such U.S. Government
Obligation or a specific payment of interest on or principal of any such U.S.
Government Obligation held by such custodian for the account of the holder of a
depository receipt, provided that (except as required by law) such custodian is
not authorized to make any deduction from the amount payable to the holder of
such depository receipt from any amount received by the custodian in respect of
the U.S. Government Obligation or the specific payment of interest on or
principal of the U.S. Government Obligation evidenced by such depository
receipt.
"Yield to Maturity" means the yield to maturity, calculated at the time of
issuance of Debt Securities or, if applicable, at the most recent
redetermination of interest on such series and calculated in accordance with
accepted financial practice.
ARTICLE TWO
DESCRIPTION, EXECUTION,
REGISTRATION AND EXCHANGE OF DEBT SECURITIES
SECTION 2.01. FORMS. (a) The Debt Securities of each series shall be in
substantially the form of Exhibit A to this Indenture or in substantially such
other form as shall be established by or pursuant to a resolution of the Board
of Directors of the Company or in one or more indentures supplemental hereto,
in each case with such appropriate insertions, omissions, substitutions and
other variations as are required or permitted by this Indenture, and may have
such legends or endorsements placed thereon as the officers executing the same
may approve (execution thereof to be conclusive evidence of such approval) and
as are not inconsistent with the provisions of this Indenture, or as may be
required to comply with any law or with any rule or regulation made pursuant
thereto or with any rule or regulation of any stock exchange on which the Debt
Securities of such series may be listed, or to conform to usage.
The Trustee's Certificate of Authentication on all Debt Securities shall be
in substantially the following form:
TRUSTEE'S CERTIFICATE OF AUTHENTICATION
This is one of the Debt Securities of the series designated therein provided
for in the within-mentioned Indenture.
First Union National Bank,
as Trustee
By __________________________________
Authorized Representative
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An Authenticating Agent's certificate of authentication on all Debt
Securities which may be authenticated by an Authenticating Agent shall be in
substantially the following form:
AUTHENTICATING AGENT'S CERTIFICATE OF AUTHENTICATION
This is one of the Debt Securities of the series designated therein provided
for in the within-mentioned Indenture.
[Name of Authenticating Agent],
as Authenticating Agent for the
Trustee
By __________________________________
Authorized Representative
(b) The resolutions adopted by the Board of Directors, or the indenture
supplemental hereto, establishing the form and terms of the Debt Securities of
any series pursuant to Sections 2.01 and 2.02, respectively, of this Indenture,
may provide for issuance of the Debt Securities in global form. If Debt
Securities of a series are so authorized to be issued in global form, any such
global Debt Security may provide that it shall represent the aggregate amount
of Debt Securities from time to time endorsed thereon and may also provide that
the aggregate amount of outstanding Debt Securities represented thereby may
from time to time be reduced. Any endorsement of a Debt Security in global form
to reflect any decrease in the amount or changes in the rights of Holders of
Debt Securities represented thereby shall be made in such manner and by such
person or persons as shall be specified therein.
SECTION 2.02. AMOUNT UNLIMITED; ISSUABLE IN SERIES. The aggregate principal
amount of Debt Securities which may be authenticated and delivered under this
Indenture is unlimited.
The Debt Securities may be issued in one or more series. There shall be
established in or pursuant to a resolution or established in one or more
indentures supplemental hereto, prior to the issuance of Debt Securities of any
series,
(1) the title of the Debt Securities of the series (which shall
distinguish the Debt Securities of the series from all other Debt
Securities);
(2) any limit upon the aggregate principal amount of the Debt Securities
of the series which may be authenticated and delivered under this Indenture
(except for Debt Securities authenticated and delivered upon registration
of transfer of, or in exchange for, or in lieu of, other Debt Securities of
the series pursuant to Section 2.06, 2.07, 2.08, 3.03 or 10.04);
(3) the date or dates on which the principal and premium, if any, of the
Debt Securities of the series is payable;
(4) the rate or rates, or the method of determination thereof, at which
the Debt Securities of the series shall bear interest, if any, the date or
dates from which such interest shall accrue, the interest payment dates on
which such interest shall be payable and, if other than as set forth in
Section 2.04, the record dates for the determination of Holders to whom
interest is payable;
(5) if an Original Issue Discount Security, the Yield to Maturity;
(6) the place or places (the "Place of Payment") where the principal of,
and premium, if any, and any interest on Debt Securities of the series
shall be payable;
(7) the price or prices at which, the period or periods within which and
the terms and conditions upon which Debt Securities of the series may be
redeemed, in whole or in part, at the option of the Company, pursuant to
any sinking fund or otherwise;
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<PAGE>
(8) the obligation, if any, of the Company to redeem, purchase or repay
Debt Securities of the series pursuant to any sinking fund or analogous
provisions or at the option of a Holder thereof and the price or prices at
which and the period or periods within which and the terms and conditions
upon which Debt Securities of the series shall be redeemed, purchased or
repaid, in whole or in part, pursuant to such obligation;
(9) if other than denominations of $1,000 and any integral multiple
thereof, the denominations in which Debt Securities of the series shall be
issuable;
(10) if other than the principal amount thereof, the portion of the
principal amount of Debt Securities of the series which shall be payable
upon declaration of acceleration of the maturity thereof pursuant to
Section 6.01;
(11) the non-application of, addition to, or change in, any of the Events
of Default with respect to the Debt Securities of the series, and the
remedies with respect thereto;
(12) in the case of any series of non-interest bearing Debt Securities,
the "stated intervals" for purposes of Section 312(a) of the Trust
Indenture Act of 1939;
(13) the currency or currencies in which payments on the Debt Securities
are payable, which may include United States or any foreign currency and
any unit of two or more currencies; and
(14) any other terms of the series (which terms shall not be inconsistent
with the provisions of this Indenture).
All Debt Securities of any one series shall be substantially identical except
as to denomination and except as may otherwise be provided in or pursuant to
such resolution of the Board of Directors or in any such indenture supplemental
hereto.
SECTION 2.03. AUTHENTICATION. The Debt Securities of each series shall be
issuable in such form and in such denominations as shall be specified as
contemplated by Section 2.02. In the absence of any such specification with
respect to the Debt Securities of any series, the Debt Securities of such
series shall be issuable in denominations of $1,000 and any integral multiple
thereof.
At any time and from time to time after the execution and delivery of this
Indenture, the Company may deliver Debt Securities of any series executed by
the Company to the Trustee for authentication. Except as otherwise provided in
this Article Two, the Trustee shall thereupon authenticate, or cause the
Authenticating Agent to authenticate, and deliver said Debt Securities to or
upon Company Order. In authenticating, or causing to be authenticated, such
Debt Securities, and accepting the additional responsibilities under this
Indenture in relation to such Debt Securities, the Trustee and the
Authenticating Agent shall be entitled to receive and (subject to the
requirements of Section 315 of the Trust Indenture Act of 1939) shall be fully
protected in relying upon:
(1) a copy of any resolution or resolutions of the Board of Directors,
certified by the Secretary or an Assistant Secretary of the Company;
(2) an executed supplemental indenture, if any, relating thereto;
(3) an Officers' Certificate prepared in accordance with the requirements
of Section 314(c) of the Trust Indenture Act of 1939 and setting forth the
terms of the Debt Securities as required pursuant to Sections 2.01 and
2.02, respectively;
(4) an Opinion of Counsel for the Company prepared in accordance with the
requirements of Section 314(c) of the Trust Indenture Act of 1939 which
shall also state:
(a) that the form of such Debt Securities has been established by or
pursuant to a resolution of the Board of Directors or by a supplemental
indenture as permitted by Section 2.01 in conformity with the
provisions of this Indenture;
(b) that the terms of such Debt Securities have been established by
or pursuant to a resolution of the Board of Directors or by a
supplemental indenture as permitted by Section 2.02 in conformity with
the provisions of this Indenture;
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(c) that such Debt Securities, when authenticated and delivered by
the Trustee or the Authenticating Agent and issued by the Company in
the manner and subject to any conditions specified in such Opinion of
Counsel, will constitute valid and binding obligations of the Company,
enforceable in accordance with their terms, subject to bankruptcy,
insolvency, reorganization and other laws of general applicability
relating to or affecting the enforcement of creditors' rights and to
general equity principles;
(d) that all applicable laws and requirements in respect of the
execution and delivery by the Company of the Debt Securities have been
complied with and that authentication and delivery of the Debt
Securities by the Trustee or the Authenticating Agent will not violate
the terms of the Indenture; and
(e) such other matters as the Trustee may reasonably request.
The Trustee shall have the right to decline to authenticate and deliver, or
to cause the Authenticating Agent to decline to authenticate and deliver, any
Debt Securities under this Section if the Trustee, being advised by counsel,
determines that such action may not lawfully be taken.
SECTION 2.04. DATE AND DENOMINATION OF DEBT SECURITIES. The Debt Securities
of each series shall be issuable in registered form without coupons in such
denominations as shall be specified as contemplated by Section 2.02. In the
absence of any such specification with respect to the Debt Securities of any
series, the Debt Securities of such series shall be issuable in denominations
of $1,000 and any multiple of $1,000. Debt Securities of each series shall be
numbered, lettered or otherwise distinguished in such manner or in accordance
with such plan as the officers of the Company executing the same may determine
with the approval of the Trustee.
The person in whose name any Debt Security of a particular series is
registered at the close of business on any record date (as hereinafter defined)
with respect to any interest payment date for such series shall be entitled to
receive the interest payable on such interest payment date notwithstanding the
cancellation of such Debt Security upon any registration of transfer or
exchange subsequent to the record date and prior to such interest payment date;
provided, however, that if and to the extent that the Company shall default in
the payment of the interest due on such interest payment date, such defaulted
interest shall be paid to the persons in whose names Outstanding Debt
Securities of such series are registered on a subsequent record date
established by notice given by mail by or on behalf of the Company to the
Holders of such Debt Securities not less than 15 days preceding such subsequent
record date, such record date to be not less than five days preceding the date
of payment of such defaulted interest. Except as otherwise specified as
contemplated by Section 2.02 for Debt Securities of a particular series, the
term "record date" as used in this Section with respect to any regular interest
payment date, shall mean the last day of the calendar month preceding such
interest payment date if such interest payment date is the fifteenth day of the
calendar month, and shall mean the fifteenth day of the calendar month
preceding such interest payment date if such interest payment date is the first
day of a calendar month, whether or not such day shall be a day on which
banking institutions in The City of New York are authorized or required by law
or executive order to close or remain closed.
Interest on the Debt Securities may at the option of the Company be paid by
check mailed to the persons entitled thereto at their respective addresses as
such appear on the registry books of the Company or by wire transfer payable to
an account specified by such persons.
SECTION 2.05. EXECUTION OF DEBT SECURITIES. The Debt Securities shall be
signed in the name and on behalf of the Company by the manual or facsimile
signature of its Chairman of the Board, its Vice Chairman of the Board, or
President or a Vice President and by its Treasurer or its Secretary or an
Assistant Treasurer or Assistant Secretary, under its corporate seal (which may
be printed, engraved or otherwise reproduced thereon, by facsimile or
otherwise). Only such Debt Securities as shall bear thereon a certificate of
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authentication substantially in the form herein recited, executed by the
Trustee or the Authenticating Agent, shall be entitled to the benefits of this
Indenture or be valid or obligatory for any purpose. Such certificate by the
Trustee or the Authenticating Agent upon any Debt Security executed by the
Company shall be conclusive evidence that the Debt Security so authenticated
has been duly authenticated and delivered hereunder and that the Holder is
entitled to the benefits of this Indenture.
In case any officer of the Company who shall have signed any of the Debt
Securities shall cease to be such officer before the Debt Securities so signed
shall have been authenticated and delivered by the Trustee or the
Authenticating Agent, or disposed of by the Company, such Debt Securities
nevertheless may be authenticated and delivered or disposed of as though the
person who signed such Debt Securities had not ceased to be such officer of the
Company; and any Debt Security may be signed on behalf of the Company by such
persons as, at the actual date of the execution of such Debt Security, shall be
the proper officers of the Company, although at the date of the execution of
this Indenture any such person was not such an officer.
SECTION 2.06. EXCHANGE AND REGISTRATION OF TRANSFER OF DEBT SECURITIES. Debt
Securities of any series may be exchanged for a like aggregate principal amount
and maturity of Debt Securities of the same series in other authorized
denominations. Debt Securities to be exchanged shall be surrendered, at the
option of the Holders thereof, at any of the offices or agencies as may be
designated and maintained by the Company for such purpose in accordance with
the provisions of Section 4.02, and the Company shall execute and register and
the Trustee shall authenticate and deliver in exchange therefor the Debt
Security or Debt Securities which the Holder making the exchange shall be
entitled to receive. Each person designated by the Company pursuant to the
provisions of Section 4.02 as a person authorized to register and register
transfer of the securities is sometimes herein referred to as a "Debt Security
registrar".
The Company shall keep, at each such office or agency, a register for each
series of Debt Securities issued hereunder (the registers of all Debt Security
registrars being herein sometimes collectively referred to as the "Debt
Security register" or the "registry books of the Company") in which, subject to
such reasonable regulations as it may prescribe, the Company shall register
securities and shall register the transfer of Debt Securities as in this
Article Two provided. The Debt Security register shall be in written form or in
any other form capable of being converted into written form within a reasonable
time. At all reasonable times the Debt Security register shall be open for
inspection by the Trustee and any security registrar other than the Trustee.
Upon due presentment for registration of transfer of any Debt Security of any
series at any designated office or agency, the Company shall execute and
register and the Trustee shall authenticate and deliver in the name of the
transferee or transferees a new Debt Security or Debt Securities of the same
series for an equal aggregate principal amount. Registration or registration of
transfer of any Debt Security by any Debt Security registrar in the registry
books of the Company maintained by such Debt Security registrar, and delivery
of such Debt Security, duly authenticated, shall be deemed to complete the
registration or registration of transfer of such Debt Security.
The Company will at all times designate one person (who may be the Company
and who need not be a Debt Security registrar) to act as repository of a master
list of names and addresses of the Holders of the Debt Securities. The Company
shall act as such repository unless and until some other person is, by written
notice from the Company to the Trustee and each Debt Security registrar,
designated by the Company to act as such. The Company shall cause each Debt
Security registrar to furnish to such repository, on a current basis, such
information as to all registrations of transfer and exchanges effected by such
registrar, as may be necessary to enable such repository to maintain such
master list on as current a basis as is practicable.
No person shall at any time be designated as or act as a Debt Security
registrar unless such person is at such time empowered under applicable law to
act as such and duly registered to act as such under and to the extent required
by applicable law and regulations.
All Debt Securities presented for registration of transfer or for exchange,
redemption or payment shall (if so required by the Company or the Trustee) be
duly endorsed by, or be accompanied by a written
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instrument or instruments of transfer or exchange in form satisfactory to the
Company and the Trustee duly executed by, the Holder or his attorney duly
authorized in writing.
No service charge shall be made for any exchange or registration of transfer
of Debt Securities, but the Company may require payment of a sum sufficient to
cover any tax or other governmental charge that may be imposed in connection
therewith.
The Company shall not be required to exchange or register a transfer of (a)
any Debt Securities of any series for the period of 15 days next preceding the
selection of Debt Securities of that series to be redeemed and thereafter until
the day of the mailing of a notice of redemption of Debt Securities of that
series selected for redemption, or (b) any Debt Securities selected, called or
being called for redemption in whole or in part except, in the case of any Debt
Security to be redeemed in part, the portion thereof not so to be redeemed.
SECTION 2.07. MUTILATED, DESTROYED, LOST OR STOLEN DEBT SECURITIES. In case
any temporary or definitive Debt Security shall become mutilated or be
destroyed, lost or stolen, the Company in the case of a mutilated Debt Security
shall, and in the case of a lost, stolen or destroyed Debt Security may in its
discretion, execute and, upon the written request or authorization of any
officer of the Company, the Trustee or the Authenticating Agent shall
authenticate and deliver, a new Debt Security of the same series, bearing a
number not contemporaneously outstanding in exchange and substitution for the
mutilated Debt Security, or in lieu of and in substitution for the Debt
Security so destroyed, lost or stolen. In every case the applicant for a
substituted Debt Security shall furnish to the Company and the Trustee such
security or indemnity as may be required by them to save each of them harmless,
and, in every case of destruction, loss or theft, the applicant shall also
furnish to the Company and the Trustee evidence to their satisfaction of the
destruction, loss or theft of such Debt Security and of the ownership thereof.
Upon the issuance of any substitute Debt Security, the Company may require
the payment of a sum sufficient to cover any tax or other governmental charge
that may be imposed in relation thereto and any other expenses connected
therewith. In case any Debt Security which has matured or is about to mature
shall become mutilated or be destroyed, lost or stolen, the Company may,
instead of issuing a substitute Debt Security, pay or authorize the payment of
such Debt Security (without surrender thereof except in the case of a mutilated
Debt Security) if the applicant for such payment shall furnish to the Company
and the Trustee such security or indemnity as may be required by them to save
each of them harmless and, in case of destruction, loss or theft, evidence
satisfactory to the Company and the Trustee of the destruction, loss or theft
of such Debt Security and the ownership thereof.
Every substitute Debt Security issued pursuant to the provisions of this
Section 2.07 by virtue of the fact that any Debt Security is destroyed, lost or
stolen shall constitute an additional contractual obligation of the Company as
herein provided, whether or not the destroyed, lost or stolen Debt Security
shall be found at any time, and shall be entitled to all the benefits of this
Indenture equally and proportionately with any and all other Debt Securities of
the same series duly issued hereunder. All Debt Securities shall be held and
owned upon the express condition that the foregoing provisions are exclusive
with respect to the replacement or payment of mutilated, destroyed, lost or
stolen Debt Securities and shall preclude (to the extent lawful) any and all
other rights or remedies with respect to the replacement or payment of
negotiable instruments or other securities without their surrender.
SECTION 2.08. TEMPORARY DEBT SECURITIES. Pending the preparation of
definitive Debt Securities of any series the Company may execute and the
Trustee or Authenticating Agent shall authenticate and deliver temporary Debt
Securities (printed, lithographed or typewritten). Temporary Debt Securities
shall be issuable in any authorized denomination and substantially in the form
of the definitive Debt Securities in lieu of which they are issued, but with
such omissions, insertions and variations as may be appropriate for temporary
Debt Securities, all as may be determined by the Company. Every such temporary
Debt Security shall be authenticated by the Trustee or the Authenticating Agent
upon the same conditions and in substantially the same manner, and with the
same effect, as the definitive Debt Securities in lieu of which they are
issued.
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Without unreasonable delay the Company will execute and deliver to the Trustee
definitive Debt Securities of such series and thereupon any or all temporary
Debt Securities of such series may be surrendered in exchange therefor, at the
option of the Holders thereof, at any offices or agencies as may be designated
and maintained by the Company for such purpose in accordance with the
provisions of Section 4.02, and the Trustee or the Authenticating Agent shall
authenticate and deliver in exchange for such temporary Debt Securities an
equal aggregate principal amount and maturity of definitive Debt Securities of
the same series. Such exchange shall be made by the Company at its own expense
and without any charge therefor. Until so exchanged, the temporary Debt
Securities of any series shall in all respects be entitled to the same benefits
under this Indenture as definitive Debt Securities of the same series.
SECTION 2.09. CANCELLATION OF DEBT SECURITIES PAID. All Debt Securities
surrendered for the purpose of payment, redemption, repayment, exchange or
registration of transfer or for credit against any sinking fund shall, if
surrendered to the Company, any Debt Security registrar, any Authenticating
Agent, any paying agent or any other agent of the Company or of the Trustee, be
delivered to the Trustee and promptly cancelled by it, or, if surrendered to
the Trustee, shall be promptly cancelled by it, and no Debt Securities shall be
issued in lieu thereof except as expressly permitted by any of the provisions
of this Indenture. The Trustee may dispose of cancelled Debt Securities in
accordance with its standard procedures and deliver a certificate of such
disposition to the Company or, at the written request of the Company, shall
deliver cancelled Debt Securities to the Company. If the Company shall acquire
any of the Debt Securities, however, such acquisition shall not operate as a
redemption or satisfaction of the indebtedness represented by such Debt
Securities unless and until the same are delivered to the Trustee for
cancellation.
SECTION 2.10. COMPUTATION OF INTEREST. Except as otherwise specified as
contemplated by Section 2.02 for Debt Securities of any series, interest on the
Debt Securities of each series shall be computed on the basis of a 360-day year
of twelve 30-day months.
ARTICLE THREE
REDEMPTION OF DEBT SECURITIES; SINKING FUNDS
SECTION 3.01. APPLICABILITY OF ARTICLE. The provisions of this Article Three
shall be applicable, as the case may be, (i) to the Debt Securities of any
series which are redeemable before their maturity and (ii) to any sinking fund
for the retirement of Debt Securities of any series, in either case except as
otherwise specified as contemplated by Section 2.02 for Debt Securities of such
series.
The minimum amount of any sinking fund payment provided for by the terms of
Debt Securities of any series is herein referred to as a "mandatory sinking
fund payment", and any payment in excess of such minimum amount provided for by
the terms of Debt Securities of any series is herein referred to as an
"optional sinking fund payment".
SECTION 3.02. NOTICE OF REDEMPTION; SELECTION OF DEBT SECURITIES. In case the
Company shall desire to exercise any right to redeem all, or, as the case may
be, any part of, the Debt Securities of any series in accordance with their
terms, it shall fix a date for redemption and shall mail or cause to be mailed
a notice of such redemption at least 30 and not more than 60 days prior to the
date fixed for redemption to the Holders of Debt Securities of such series so
to be redeemed as a whole or in part at their last addresses as the same appear
on the registry books of the Company and to the Trustee, except as the
resolution adopted by the Board of Directors or the provisions of an indenture
supplemental hereto to establish the terms of any series of Debt Securities may
otherwise provide. Such mailing shall be by first class mail. The notice if
mailed in the manner herein provided shall be conclusively presumed to have
been duly given, whether or not the Holder receives such notice. In any case,
failure to give such notice by mail or any defect in the notice to the Holder
of any Debt Security of a series designated for redemption as a whole or in
part shall not affect the validity of the proceedings for the redemption of any
other Debt Security of such series.
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Each such notice of redemption shall specify the date fixed for redemption,
the redemption price at which the Debt Securities of such series are to be
redeemed, the place or places of payment, that payment will be made upon
presentation and surrender of such Debt Securities, that any interest accrued
to the date fixed for redemption will be paid as specified in said notice, and
that on and after said date any interest thereon or on the portions thereof to
be redeemed will cease to accrue. If less than all the Debt Securities of a
series are to be redeemed the notice of redemption shall specify the number or
numbers of the Debt Securities of that series to be redeemed. In case any Debt
Security of a series is to be redeemed in part only, the notice of redemption
shall state the portion of the principal amount thereof to be redeemed and
shall state that on and after the date fixed for redemption, upon surrender of
such Debt Security, a new Debt Security or Debt Securities of that series in
principal amount equal to the unredeemed portion thereof will be issued.
On or before the redemption date specified in the notice of redemption given
as provided in this Section 3.02, the Company will deposit with the Trustee or
with one or more paying agents (or if the Company is acting as its own paying
agent will segregate and hold in trust as provided in Section 4.04) an amount
of money sufficient to redeem on the redemption date all the Debt Securities or
portions thereof so called for redemption, together with accrued interest
thereon to the date fixed for redemption. If less than all the Debt Securities
of a series are to be redeemed the Company will give the Trustee notice not
less than 50 days prior to the redemption date as to the aggregate principal
amount and maturity of Debt Securities of such series to be redeemed. The
Trustee shall select in such manner as it shall deem appropriate and fair or
cause to be selected by lot, the Debt Securities of that series or portions
thereof to be redeemed and shall promptly notify the Company in writing of the
Debt Securities to be redeemed. Debt Securities of a series may be redeemed in
part only in multiples of the smallest authorized denomination of that series.
SECTION 3.03. PAYMENT OF DEBT SECURITIES CALLED FOR REDEMPTION. If notice of
redemption has been given as provided in Section 3.02 or Section 3.05, the Debt
Securities or portions of Debt Securities of the series with respect to which
such notice has been given shall become due and payable on the date and at the
place or places stated in such notice at the applicable redemption price,
together with any interest accrued to the date fixed for redemption, and on and
after said date (unless the Company shall default in the payment of such Debt
Securities or portions of such Debt Securities, together with any interest
accrued to said date) any interest on the Debt Securities of such series or
portions of Debt Securities of such series so called for redemption shall cease
to accrue. On presentation and surrender of such Debt Securities at a place of
payment in said notice specified, such Debt Securities or the specified
portions thereof shall be paid and redeemed by the Company at the applicable
redemption price, together with any interest accrued thereon to the date fixed
for redemption; provided, however, that any installment of interest becoming
due on or prior to the date fixed for redemption shall be payable to Holders of
such Debt Securities registered as such on the relevant record date according
to their terms.
Upon presentation of any Debt Security redeemed in part only, the Company
shall execute a new Debt Security or Debt Securities and the Trustee or the
Authenticating Agent shall authenticate and deliver to the Holder thereof, at
the expense of the Company, such new Debt Security or Debt Securities of the
same series, of authorized denominations, in an aggregate principal amount
equal to the unredeemed portion of the Debt Security so presented.
SECTION 3.04. SATISFACTION OF MANDATORY SINKING FUND PAYMENTS WITH DEBT
SECURITIES. In lieu of making all or any part of any mandatory sinking fund
payment with respect to any Debt Securities of a series in cash, the Company
may at its option (a) deliver to the Trustee Debt Securities of that series
theretofore purchased or otherwise acquired by the Company, or (b) receive
credit for the principal amount of Debt Securities of that series which have
been redeemed either at the election of the Company pursuant to the terms of
such Debt Securities or through the application of permitted optional sinking
fund payments pursuant to the terms of such Debt Securities; provided that such
Debt Securities have not been previously so credited. Such Debt Securities
shall be received and credited for such purpose by the Trustee at the
redemption price specified in such Debt Securities for redemption through
operation of the sinking fund and the amount of such mandatory sinking fund
payment shall be reduced accordingly.
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SECTION 3.05. REDEMPTION OF DEBT SECURITIES FOR SINKING FUND. Not less than
50 days prior to each sinking fund payment date for any series of Debt
Securities, the Company will deliver to the Trustee a certificate signed by a
Vice President or the Treasurer or any Assistant Treasurer of the Company
specifying the amount of the next ensuing sinking fund payment for that series
pursuant to the terms of that series, the portion thereof, if any, which is to
be satisfied by payment of cash (which cash may be deposited with the Trustee
or with one or more paying agents, or if the Company is acting as its own
paying agent segregated and held in trust as provided in Section 4.04) and the
portion thereof, if any, which is to be satisfied by delivering and crediting
Debt Securities of that series pursuant to Section 3.04 (which Debt Securities,
if not theretofore delivered, will accompany such certificate, such certificate
to set forth the basis for such credit and to state that such Debt Securities
have not been previously so credited) and whether the Company intends to
exercise its right to make a permitted optional sinking fund payment with
respect to such series. Such certificate shall also state that no Event of
Default has occurred and is continuing with respect to such series. Such
certificate shall be irrevocable and upon its delivery the Company shall be
obligated to make the cash payment or payments therein referred to, if any, on
or before the next succeeding sinking fund payment date. In the case of the
failure of the Company to deliver such certificate (or to deliver the Debt
Securities specified in this paragraph), the sinking fund payment due on the
next succeeding sinking fund payment date for that series shall be paid
entirely in cash and shall be sufficient to redeem the principal amount of such
Debt Securities subject to a mandatory sinking fund payment without the option
to deliver or credit Debt Securities as provided in Section 3.04 and without
the right to make any optional sinking fund payment, if any, with respect to
such series.
Any sinking fund payment or payments (mandatory or optional) made in cash
plus any unused balance of any preceding sinking fund payments made in cash
which shall equal or exceed $100,000 (or a lesser sum if the Company shall so
request or determine) with respect to the Debt Securities of any particular
series shall be applied by the Trustee (or by the Company if the Company is
acting as its own paying agent) on the sinking fund payment date on which such
payment is made (or, if such payment is made before a sinking fund payment
date, on the next sinking fund payment date following the date of such payment)
to the redemption of such Debt Securities at the redemption price specified in
such Debt Securities for operation of the sinking fund together with accrued
interest, if any, to the date fixed for redemption. Any sinking fund moneys not
so applied or allocated by the Trustee (or by the Company if the Company is
acting as its own paying agent) to the redemption of Debt Securities shall be
added to the next cash sinking fund payment received by the Trustee (or if the
Company is acting as its own paying agent, segregated and held in trust as
provided in Section 4.04) for such series and, together with such payment (or
such amount so segregated), shall be applied in accordance with the provisions
of this Section 3.05. Any and all sinking fund moneys with respect to the Debt
Securities of any particular series held by the Trustee (or if the Company is
acting as its own paying agent, segregated and held in trust as provided in
Section 4.04) on the last sinking fund payment date with respect to Debt
Securities of such series and not held for the payment or redemption of
particular Debt Securities of such series shall be applied by the Trustee (or
by the Company if the Company is acting as its own paying agent), together with
other moneys, if necessary, to be deposited (or segregated) sufficient for the
purpose, to the payment of the principal of the Debt Securities of that series
at maturity.
The Trustee shall select or cause to be selected the Debt Securities to be
redeemed upon such sinking fund payment date in the manner specified in the
last paragraph of Section 3.02 and the Company shall cause notice of the
redemption thereof to be given in the manner provided in Section 3.02 except
that the notice of redemption shall also state that the Debt Securities are
being redeemed by operation of the sinking fund. Such notice having been duly
given, the redemption of such Debt Securities shall be made upon the terms and
in the manner stated in Section 3.03.
On or before each sinking fund payment date, the Company shall pay to the
Trustee in cash (or if the Company is acting as its own paying agent will
segregate and hold in trust as provided in Section 4.04) a sum equal to any
interest accrued to the date fixed for redemption of Debt Securities or
portions thereof to be redeemed on such sinking fund payment date pursuant to
this Section.
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Neither the Trustee nor the Company shall redeem any Debt Securities of a
series with sinking fund moneys or mail any notice of redemption of such Debt
Securities by operation of the sinking fund for such series during the
continuance of a default in payment of interest, if any, on such Debt
Securities or of any Event of Default (other than an Event of Default occurring
as a consequence of this paragraph) with respect to such Debt Securities,
except that if the notice of redemption of any such Debt Securities shall
theretofore have been mailed in accordance with the provisions hereof, the
Trustee (or the Company if the Company is acting as its own paying agent) shall
redeem such Debt Securities if cash sufficient for that purpose shall be
deposited with the Trustee (or segregated by the Company) for that purpose in
accordance with the terms of this Article. Except as aforesaid, any moneys in
the sinking fund for such series at the time when any such default or Event of
Default shall occur and any moneys thereafter paid into such sinking fund
shall, during the continuance of such default or Event of Default, be held as
security for the payment of such Debt Securities; provided, however, that in
case such default or Event of Default shall have been cured or waived as
provided herein, such moneys shall thereafter be applied on the next sinking
fund payment date for such Debt Securities on which such moneys may be applied
pursuant to the provisions of this Section.
ARTICLE FOUR
PARTICULAR COVENANTS OF THE COMPANY
SECTION 4.01. PAYMENT OF PRINCIPAL, PREMIUM AND INTEREST. The Company
covenants and agrees for the benefit of each series of Debt Securities that it
will duly and punctually pay or cause to be paid the principal of, premium, if
any, and interest, if any, on each of the Debt Securities of that series at the
places, at the respective times and in the manner provided in such Debt
Securities.
SECTION 4.02. OFFICES FOR NOTICES AND PAYMENTS. As long as any of the Debt
Securities of a series remain outstanding, the Company will designate and
maintain, an office or agency in such Place of Payment where the Debt
Securities of that series may be presented for payment, an office or agency
where the Debt Securities of that series may be presented for registration of
transfer and for exchange as in this Indenture provided and an office or agency
where notices and demands to or upon the Company in respect of the Debt
Securities of that series or this Indenture may be served. In addition to such
office or offices or agency or agencies, the Company may from time to time
designate and maintain one or more additional offices or agencies, where the
Debt Securities of that series may be presented for registration of transfer or
for exchange, and the Company may from time to time rescind such designation,
as it may deem desirable or expedient. The Company will give to the Trustee
written notice of the location of each such office or agency and of any change
of location thereof. In case the Company shall fail to maintain such office or
agency, or shall fail to give such notice of the location or of any change in
the location thereof, presentations and demands may be made and notices may be
served at the Principal Office of the Trustee.
The Company hereby initially designates the offices of the Trustee located at
Corporate Trust Operations NC 1153, Main Building 11th Floor, 230 South Tryon
Street, Charlotte, North Carolina 28288 and 40 Broad Street, 5th Floor - Suite
550, New York, New York 10004, as the offices or agencies of the Company, where
the Debt Securities of each series may be presented for payment, for
registration of transfer and for exchange as in this Indenture provided and
where notices and demands to or upon the Company in respect of the Debt
Securities of each series or this Indenture may be served. The Trustee is also
designated as repository pursuant to Section 2.06 for the master list of the
names and addresses of the Holders of the Debt Securities of each series.
SECTION 4.03. APPOINTMENTS TO FILL VACANCIES IN TRUSTEE'S OFFICE. The
Company, whenever necessary to avoid or fill a vacancy in the office of
Trustee, will appoint, in the manner provided in Section 7.08, a successor
trustee, so that there shall at all times be a Trustee with respect to each
series of Debt Securities hereunder.
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SECTION 4.04. PROVISIONS AS TO PAYING AGENT. (a) If the Company shall appoint
a paying agent other than the Trustee with respect to the Debt Securities of
any series, it will cause such paying agent to execute and deliver to the
Trustee an instrument in which such agent shall agree with the Trustee, subject
to the provisions of this Section 4.04,
(1) that it will hold all sums held by it as such agent for the payment
of the principal of, premium, if any, or interest, if any, on the Debt
Securities of such series (whether such sums have been paid to it by the
Company or by any other obligor on the Debt Securities of such series) in
trust for the benefit of the Holders of the Debt Securities of such series
or of the Trustee, as the case may be, until such sums shall be paid to the
Holders or to the Trustee, and will notify the Trustee of the receipt of
sums to be so held;
(2) that it will give the Trustee notice of any failure by the Company
(or by any other obligor on the Debt Securities of such series) to make any
payment of the principal of, premium, if any, or interest, if any, on the
Debt Securities of such series when the same shall be due and payable; and
(3) that at any time during the continuance of any failure by the Company
(or by any other obligor on the Debt Securities of such series) specified
in the preceding paragraph (2), such paying agent will, upon the written
request of the Trustee, forthwith pay to the Trustee all sums so held in
trust by it.
(b) If the Company shall act as its own paying agent with respect to the Debt
Securities of any series, it will, on or before each due date of the principal
of, premium, if any, or interest, if any, on the Debt Securities of such
series, set aside, segregate and hold in trust for the benefit of the Holders
of such Debt Securities a sum sufficient to pay such principal, premium, if
any, or interest, if any, so becoming due and will promptly notify the Trustee
of any failure to take such action and of any failure by the Company (or by any
other obligor on the Debt Securities of such series) to make any payment of the
principal of, premium, if any, or interest, if any, on the Debt Securities of
such series when the same shall become due and payable.
(c) Anything in this Section 4.04 to the contrary notwithstanding the Company
may, at any time, for the purpose of obtaining the satisfaction and discharge
of this Indenture, or for any other reason, pay or cause to be paid to the
Trustee all sums held in trust by it, or any paying agent hereunder, as
required by this Section, such sums to be held by the Trustee upon the trusts
herein contained.
(d) Anything in this Section 4.04 to the contrary notwithstanding, the
agreement to hold sums in trust as provided in this Section 4.04 is subject to
Sections 12.03 and 12.04.
(e) Whenever the Company shall have one or more paying agents with respect to
the Debt Securities of any series, it will, prior to each due date of the
principal of, premium, if any, or interest, if any, on the Debt Securities of
such series, deposit with a designated paying agent a sum sufficient to pay the
principal, premium, if any, and interest, if any, so becoming due, such sum to
be held in trust for the benefit of the persons entitled to such principal,
premium, if any, or interest, if any, and (unless such paying agent is the
Trustee) the Company will promptly notify the Trustee of any failure so to act.
SECTION 4.05. STATEMENT AS TO COMPLIANCE. The Company will deliver to the
Trustee on or before January 1 in each year (beginning with the first January 1
which is not less than 60 days following the first date of issuance of any
series of Debt Securities under this Indenture) a certificate complying with
Section 314(a)(4) of the Trust Indenture Act of 1939.
SECTION 4.06. LIMITATION ON LIENS. (a) For the benefit of each series of Debt
Securities issued hereunder (other than as otherwise specified pursuant to
Section 2.02 for any particular series ("Excluded Series")), the Company will
not, nor will it permit any Restricted Subsidiary to, issue or assume any debt
for money borrowed (hereinafter in this Article Four referred to as "Debt"),
secured by a mortgage, security interest,
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pledge, lien or other encumbrance (mortgages, security interests, pledges,
liens and other encumbrances being hereinafter called "mortgage" or
"mortgages") upon any Principal Property of the Company or any Restricted
Subsidiary or upon any shares of stock or indebtedness of any Restricted
Subsidiary (whether such Principal Property, shares of stock or indebtedness
are now owned or hereafter acquired) without in any such case effectively
providing concurrently with the issuance or assumption of any such Debt that
all Outstanding series of Debt Securities issued hereunder (other than any
Excluded Series) (together with, if the Company shall so determine, any other
indebtedness of the Company or such Restricted Subsidiary ranking equally with
such series of Debt Securities and then existing or thereafter created) shall
be secured equally and ratably with such Debt; provided, however, that the
foregoing restrictions shall not apply to Debt secured by:
(i) mortgages on property, shares of stock or indebtedness of any
corporation existing at the time such corporation becomes a Restricted
Subsidiary;
(ii) mortgages on property existing at the time of acquisition of such
property by the Company or a Restricted Subsidiary, or mortgages to secure
the payment of all or any part of the purchase price of such property upon
the acquisition of such property by the Company or a Restricted Subsidiary
or to secure any Debt incurred prior to, at the time of, or within 180 days
after, the acquisition of such property for the purpose of financing all or
any part of the purchase price thereof, or mortgages to secure any Debt
incurred for the purpose of financing the cost to the Company or a
Restricted Subsidiary of improvements to such acquired property;
(iii) mortgages securing Debt of a Restricted Subsidiary owing to the
Company or to another Subsidiary;
(iv) mortgages on property of a corporation existing at the time such
corporation is merged into or consolidated with the Company or a Restricted
Subsidiary or at the time of sale, lease or other disposition of the
properties of a corporation as an entirety or substantially as an entirety
to the Company or a Restricted Subsidiary;
(v) mortgages on property of the Company or a Restricted Subsidiary in
favor of the United States of America or any State thereof, or any
department, agency or instrumentality or political subdivision of the
United States of America or any State thereof, or in favor of any other
country, or any political subdivision thereof, to secure partial progress,
advance or other payments pursuant to any contract or statute or to secure
any indebtedness incurred for the purpose of financing all or any part of
the purchase price or the cost of construction of the property subject to
such mortgages; or
(vi) any extension, renewal or replacement (or successive extensions,
renewals or replacements) in whole or in part of any mortgage referred to
in the foregoing clauses (i) to (v), inclusively, provided, however, that
the principal amount of Debt secured thereby shall not exceed by more than
15% the principal amount of Debt so secured at the time of such extension,
renewal or replacement and that such extension, renewal or replacement
shall be limited to all or a part of the property which secured the
mortgage so extended, renewed or replaced (plus improvements on such
property).
(b) Notwithstanding the foregoing provisions of this Section 4.06, the
Company and any one or more Restricted Subsidiaries may, without securing any
Debt Securities, issue or assume Debt secured by mortgage which would otherwise
be subject to the foregoing restrictions in an aggregate amount which, together
with all other outstanding Debt of the Company and its Restricted Subsidiaries
which (if originally issued or assumed at such time) would otherwise be subject
to the foregoing restrictions, but not including Debt permitted to be secured
under clauses (i) through (vi) above, does not at the time exceed 20% of the
shareholders' equity of the Company and its consolidated subsidiaries, as
determined in accordance with generally accepted accounting principles and
shown on the audited consolidated balance sheet contained in the latest
published annual report to the shareholders of the Company.
(c) The transfer of a Principal Property to a Subsidiary or to any third
party shall not be restricted.
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ARTICLE FIVE
HOLDER LISTS AND REPORTS BY THE TRUSTEE
SECTION 5.01. HOLDER LISTS. The Company covenants and agrees that it will
furnish or cause to be furnished to the Trustee with respect to the Debt
Securities of each series, (i) semiannually, not more than 15 days after each
July 1 and January 1 and (ii) at such other times as the Trustee may request in
writing, within 30 days after receipt by the Company of any such request, a
list in such form as the Trustee may reasonably require of the names and
addresses of the Holders of Debt Securities of such series as of a date not
more than 15 days prior to the time such information is furnished; provided,
however, that if and so long as the Trustee shall be designated by the Company
to act as repository in accordance with the provisions of Section 2.06, such
list shall not be required to be furnished.
SECTION 5.02. DELIVERY OF REPORTS BY THE TRUSTEE. The reports to be
transmitted by the Trustee pursuant to the requirements of Section 313 of the
Trust Indenture Act of 1939 shall be required to be transmitted on or before
the first July 15 which is not less than sixty days following the first date of
issuance of any series of Debt Securities under this Indenture, and on or
before July 15 in every year thereafter, so long as any Debt Securities are
outstanding hereunder, each such report to be dated as of the preceding May 15.
ARTICLE SIX
REMEDIES OF THE TRUSTEE AND HOLDERS ON EVENT OF DEFAULT
SECTION 6.01. EVENTS OF DEFAULT. "Event of Default" whenever used herein with
respect to Debt Securities of any series means any one of the following events
and such other events as may be established with respect to the Debt Securities
of such series as contemplated by Section 2.02 hereof, continued for the period
of time, if any, and after the giving of notice, if any, designated in this
Indenture or as may be established with respect to such Debt Securities as
contemplated by Section 2.02 hereof, as the case may be, unless it is either
inapplicable or is specifically deleted or modified in the applicable
resolution of the Board of Directors or in the supplemental indenture under
which such series of Debt Securities is issued, as the case may be, as
contemplated by Section 2.02:
(a) default in the payment of any installment of interest upon any Debt
Security of such series as and when the same shall become due and payable,
and continuance of such default for a period of 30 days; or
(b) default in the payment of the principal of, or premium, if any, on
any Debt Security of such series as and when the same shall become due and
payable whether at maturity, upon redemption, by declaration, repayment or
otherwise; or
(c) default in the making or satisfaction of any sinking fund payment as
and when the same shall become due and payable by the terms of the Debt
Securities of such series; or
(d) failure on the part of the Company, duly to observe or perform any
other of the covenants or agreements on the part of the Company in respect
of the Debt Securities of such series contained in this Indenture (other
than a covenant or agreement in respect of the Debt Securities of such
series in default in whose observance or performance is elsewhere in this
Section specifically dealt with) continued for a period of 60 days after
the date on which written notice of such failure, requiring the Company to
remedy the same, shall have been given by registered mail to the Company by
the Trustee, or to the Company and the Trustee by the Holders of at least
twenty-five percent in aggregate principal amount of the Debt Securities of
all series at the time Outstanding; provided that such a default or breach
shall not be an Event of Default if it cannot with due diligence be cured
within such 60-day period due to causes beyond the control of the Company,
unless the Company shall fail to proceed promptly to cure the same and
thereafter prosecute the curing of such default or breach with diligence
and continuity. (In the event that such default or breach cannot be cured
within such 60-day period, before the expiration of such 60-
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day period the Company shall furnish an Officers' Certificate, upon which
the Trustee may conclusively rely notwithstanding such default or breach,
to the effect that such default or breach cannot with due diligence be
cured within such 60-day period due to causes beyond the control of the
Company and that the Company has not failed to proceed promptly to cure the
same. Thereafter, from time to time at the request of the Trustee, the
Company shall furnish an Officers' Certificate to the effect that the
Company is prosecuting the curing of such default or breach with diligence
and continuity.); or
(e) failure in the performance or observance of Section 4.06 hereof and
continuance of such failure for a period of 120 days after receipt by the
Company of a written notice given by the Trustee or receipt by the Company
and the Trustee of a written notice given by the Holders of at least 25% in
aggregate principal amount of the Debt Securities of all series at the time
Outstanding, which written notice shall specify such failure and require it
to be remedied; or
(f) a decree or order by a court having jurisdiction in the premises
shall have been entered adjudging the Company a bankrupt or insolvent, or
approving as properly filed a petition seeking reorganization of the
Company, under the Federal Bankruptcy Code or any other similar applicable
Federal or State law, and such decree or order shall have continued
undischarged and unstayed for a period of 60 days; or a decree or order of
a court having jurisdiction in the premises for the appointment of a
receiver or liquidator or trustee or assignee (or other similar official)
in bankruptcy or insolvency of the Company, or of all or substantially all
of the property of the Company, or for winding up or liquidation of the
affairs of the Company shall have been entered, and such decree or order
shall have continued undischarged and unstayed for a period of 60 days; or
(g) the Company shall institute proceedings to be adjudicated a voluntary
bankrupt, or shall consent to the filing of a bankruptcy proceeding against
it, or shall file a petition or answer or consent seeking reorganization
under the Federal Bankruptcy Code or any other similar applicable Federal
or State law, or shall consent to the filing of any such petition, or shall
consent to the appointment of a receiver or liquidator or trustee or
assignee (or other similar official), in bankruptcy or insolvency of it or
of its property, or shall make an assignment for the benefit of creditors,
or shall admit in writing its inability to pay its debts generally as they
become due; or
(h) any other Event of Default provided in the applicable resolution of
the Board of Directors or in the supplemental indenture under which such
series of Debt Securities is issued, as the case may be, as contemplated by
Section 2.02.
If an Event of Default with respect to Debt Securities of any series at the
time Outstanding occurs and is continuing, then and in each and every such
case, unless the principal of all of the Debt Securities of such series shall
have already become due and payable, either the Trustee or the Holders of not
less than twenty-five percent in aggregate principal amount of the Outstanding
Debt Securities of such series or, in the case of an Event of Default specified
in clauses (d), (e), (f), or (g) of this Section 6.01, of all series (voting as
a class) with respect to which such Event of Default has occurred and is
continuing, by notice in writing to the Company (and to the Trustee if given by
Holders), may declare the principal amount (or, if the Debt Securities of such
series are Original Issue Discount Securities, such portion of the principal
amount as may be specified in the terms of such series) of all the Debt
Securities of that series (or, in the case of an Event of Default specified in
clauses (d), (e), (f), or (g) of this Section 6.01, of all of the Debt
Securities of all series with respect to which such Event of Default has
occurred and is continuing) and the interest accrued thereon, if any, to be due
and payable immediately, and upon any such declaration the same shall become
and shall be immediately due and payable, anything in this Indenture or in the
Debt Securities of such series contained to the contrary notwithstanding. This
provision, however, is subject to the condition that if, at any time after the
principal amount (or, if the Debt Securities of such series are Original Issue
Discount Securities, such portion of the principal amount as may be specified
in the terms of such series) of the Debt Securities of any series shall have
been so declared due and payable, and before any judgment or decree for the
payment of the moneys due shall have been obtained or entered as hereinafter
provided, the Company shall pay or shall deposit with the Trustee a sum
sufficient to pay all matured installments of interest, if any, upon all of the
Debt Securities of such series and the principal of, and premium, if any, on
any and all Debt Securities of
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such series which shall have become due otherwise than by acceleration (with
interest on overdue installments of interest (to the extent that payment of
such interest is enforceable under applicable law) and on such principal at the
same rate as the rate of interest specified in the Debt Securities of such
series, to the date of such payment or deposit) and all amounts payable to the
Trustee pursuant to the provisions of Section 7.05 and any and all defaults
under this Indenture with respect to such series of Debt Securities, other than
the nonpayment of principal of and accrued interest on Debt Securities of such
series which shall have become due solely by acceleration, shall have been
remedied or cured or waived or provision shall have been made therefor to the
satisfaction of the Trustee, then and in every such case the Holders of a
majority in aggregate principal amount of the Debt Securities of such series
then Outstanding, by written notice to the Company and to the Trustee, may
waive all defaults with respect to such series and rescind and annul such
declaration and its consequences; but no such waiver or recission or annulment
shall extend to or shall affect any subsequent default or shall impair any
right consequent thereon.
In case the Trustee shall have proceeded to enforce any right under this
Indenture and such proceedings shall have been discontinued or abandoned
because of such waiver or rescission or annulment or for any other reason or
shall have been determined adversely to the Trustee, then and in every such
case the Company and the Trustee shall be restored respectively to their former
positions and rights hereunder, and all rights, remedies and powers of the
Company and the Trustee and the Holders shall continue as though no such
proceedings had been taken.
SECTION 6.02. PAYMENT OF DEBT SECURITIES ON DEFAULT; SUIT THEREFOR. The
Company covenants that (a) in case default shall be made in the payment of any
installment of interest upon any Debt Security of any series as and when the
same shall become due and payable, and such default shall have continued for a
period of 30 days, or (b) in case default shall be made in payment of the
principal of, or premium, if any, on any Debt Security of any series as and
when the same shall become due and payable, whether at maturity of the Debt
Securities of that series or upon redemption or by declaration, repayment or
otherwise or (c) in case of default in the making or satisfaction of any
sinking fund payment when the same becomes due by the terms of the Debt
Securities of any series--then, upon demand of the Trustee, the Company will
pay to the Trustee, for the benefit of the Holder of any such Debt Security (or
Holders of any series of Debt Securities in the case of clause (c) above) the
whole amount that then shall have become due and payable on any such Debt
Security (or securities of any such series in the case of clause (c) above) for
principal, premium, if any, and interest, if any, with interest upon the
overdue principal and premium, if any, and (to the extent that payment of such
interest is enforceable under applicable law) upon the overdue installments of
interest, if any, at the same rate as the rate of interest or Yield to Maturity
(in the case of Original Issue Discount Securities) specified in the Debt
Security of that series (or Debt Securities of any such series in the case of
clause (c) above); and, in addition thereto, such further amount as shall be
sufficient to cover costs and expenses of collection, and any further amounts
payable to the Trustee pursuant to the provisions of Section 7.05.
In case the Company shall fail forthwith to pay such amounts upon such
demand, the Trustee, in its own name and as trustee of an express trust, shall
be entitled and empowered to institute any actions or proceedings at law or in
equity for the collection of the sums so due and unpaid, and may prosecute any
such action or proceedings to judgment or final decree, and may enforce any
such judgment or final decree against the Company, or any other obligor upon
such Debt Securities, and collect in the manner provided by law out of the
property of the Company or any other obligor on such Debt Securities, wherever
situated the moneys adjudged or decreed to be payable.
In case there shall be pending proceedings for the bankruptcy or for the
reorganization of the Company or any other obligor on the Debt Securities of
any series, under the Federal Bankruptcy Code or any other similar applicable
Federal or State law, or in case a receiver or trustee (or other similar
official) shall have been appointed for the property of the Company, or such
other obligor upon such Debt Securities, or in the case of any other similar
judicial proceedings relative to the Company, or other obligor on the Debt
Securities of any series, or to the creditors or property of the Company or
such other obligor upon such Debt Securities, the Trustee, irrespective of
whether the principal of the Debt Securities of any series shall then be due
and payable as therein expressed or by declaration or otherwise and
irrespective of whether the Trustee shall have
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made any demand pursuant to the provisions of this Section 6.02, shall be
entitled and empowered, by intervention in such proceedings or otherwise, to
file and prove a claim or claims for the whole amount of principal (or, if the
Debt Securities of any series are Original Issue Discount Securities, such
portion of the principal amount as may be due and payable with respect to such
series pursuant to a declaration in accordance with Section 6.01), premium, if
any, and interest, if any, owing and unpaid in respect of the Debt Securities
of any series and, in case of any judicial proceedings, to file such proofs of
claim and other papers or documents as may be necessary or advisable in order
to have the claims of the Trustee and of the Holders of Debt Securities of any
series allowed in such judicial proceedings relative to the Company, or any
other obligor on the Debt Securities of any series, its or their creditors, or
its or their property, and to collect and receive any moneys or other property
payable or deliverable on any such claims, and to distribute the same after the
deduction of costs and expenses of collection, and any further amounts payable
to the Trustee pursuant to the provisions of Section 7.05 and incurred by it up
to the date of such distribution; and any receiver, assignee or trustee (or
other similar official) in bankruptcy or reorganization is hereby authorized by
each of the Holders to make such payments to the Trustee, and, in the event
that the Trustee shall consent to the making of such payments directly to the
Holders, to pay to the Trustee costs and expenses of collection and any further
amounts payable to the Trustee pursuant to the provisions of Section 7.05 and
incurred by it up to the date of such distribution.
Nothing herein contained shall be deemed to authorize the Trustee to
authorize or consent to or accept or adopt on behalf of any Holder of Debt
Securities any plan of reorganization, arrangement, adjustment or composition
affecting any of the Debt Securities of any series or the rights of any Holder
thereof, or to authorize the Trustee to vote in respect to the claim of any
Holder of Debt Securities in any such proceeding.
All rights of action and of asserting claims under this Indenture, or under
the Debt Securities of any series, may be enforced by the Trustee without the
possession of any of the Debt Securities of such series or the production
thereof in any trial or other proceeding relative thereto, and any such suit or
proceeding instituted by the Trustee shall be brought in its own name as
trustee of an express trust, and any recovery of judgment shall be for the
ratable benefit of the Holders of the Debt Securities in respect of which such
action was taken. In any proceedings brought by the Trustee (and also any
proceedings in which a declaratory judgment of a court may be sought as to the
interpretation or construction of any provision of this Indenture, to which the
Trustee shall be a party) the Trustee shall be held to represent all the
Holders of the Debt Securities to which such proceedings relate, and it shall
not be necessary to make any Holders of such Debt Securities parties to any
such proceedings.
SECTION 6.03. APPLICATION OF MONEYS COLLECTED BY TRUSTEE. Any moneys
collected by the Trustee pursuant to this Article shall be applied in the order
following, at the date or dates fixed by the Trustee for the distribution of
such moneys, upon presentation of the several Debt Securities in respect of
which moneys have been collected, and the notation thereon of the payment, if
only partially paid, and upon surrender thereof if fully paid:
First: To the payment of all amounts due the Trustee pursuant to the
provisions of Section 7.05;
Second: In case the principal of the Outstanding Debt Securities in
respect of which such moneys have been collected shall not have become due
(at maturity, upon redemption, by declaration, repayment or otherwise) and
be unpaid, to the payment of interest, if any, on such Debt Securities, in
the order of the maturity of the installments of such interest, with
interest (to the extent that such interest has been collected by the
Trustee) upon the overdue installments of interest at the same rate as the
rate of interest or Yield to Maturity (in the case of Original Issue
Discount Securities) specified in such Debt Securities, such payments to be
made ratably to the persons entitled thereto;
Third: In case the principal of the Outstanding Debt Securities in
respect of which such moneys have been collected shall have become due (at
maturity, upon redemption, by declaration, repayment or otherwise), to the
payment of the whole amount then owing and unpaid upon such Debt Securities
for principal, premium, if any, and interest, if any, with interest on the
overdue principal, and premium, if any, and (to the extent that such
interest has been collected by the Trustee) upon overdue installments
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of interest, if any, at the same rate as the rate of interest or Yield to
Maturity (in the case of Original Issue Discount Securities) specified in
such Debt Securities; and in case such moneys shall be insufficient to pay
in full the whole amount so due and unpaid upon such Debt Securities, then
to the payment of such principal, premium, if any, and interest, if any,
without preference or priority of principal, and premium, if any, over
interest, if any, or of interest, if any, over principal, and premium, if
any, or of any installment of interest, if any, over any other installment
of interest, if any, or of any such Debt Security over any other such Debt
Security, ratably to the aggregate of such principal, premium, if any, and
accrued and unpaid interest, if any; and
Fourth: To the payment of the remainder, if any, to the Company, to the
extent such moneys were provided thereby, their respective successors or
assigns, or to whosoever may be lawfully entitled to receive the same, or
as a court of competent jurisdiction may direct.
SECTION 6.04. PROCEEDINGS BY HOLDERS OF DEBT SECURITIES. No Holder of any
Debt Security of any series shall have any right by virtue of or by availing
itself of any provision of this Indenture to institute any suit, action or
proceeding in equity or at law upon or under or with respect to this Indenture
or for the appointment of a receiver or trustee (or other similar official), or
for any other remedy hereunder, unless such Holder previously shall have given
to the Trustee written notice of default with respect to Debt Securities of
such series and of the continuance thereof, as hereinbefore provided, and
unless also the Holders of not less than twenty-five percent in aggregate
principal amount of the Debt Securities of such series then Outstanding or, in
the case of an Event of Default specified in clause (d), (e), (f) or (g) of
Section 6.01, of all series (voting as a class) with respect to which such
Event of Default has occurred and is continuing, shall have made written
request upon the Trustee to institute such action, suit or proceeding in its
own name as Trustee hereunder and shall have offered to the Trustee such
reasonable security and indemnity as it may require against the costs, expenses
and liabilities to be incurred therein or thereby, and the Trustee for 60 days
after its receipt of such notice, request and offer of indemnity, shall have
neglected or refused to institute any such action, suit or proceeding, it being
understood and intended, and being expressly covenanted by the taker and Holder
of every Debt Security with every other taker and Holder and the Trustee, that
no one or more Holders of Debt Securities of such series shall have any right
in any manner whatever by virtue of or by availing of any provision of this
Indenture to affect, disturb or prejudice the rights of any other Holder of
Debt Securities of such series, or to obtain or seek to obtain priority over or
preference to any other such Holder, or to enforce any right under this
Indenture, except in the manner herein provided and for the equal, ratable and
common benefit of all Holders of Debt Securities of such series.
SECTION 6.05. PROCEEDINGS BY TRUSTEE. In case of an Event of Default
hereunder the Trustee may in its discretion proceed to protect and enforce the
rights vested in it by this Indenture by such appropriate judicial proceedings
as the Trustee shall deem most effectual to protect and enforce any of such
rights, either by suit in equity or by action at law or by proceeding in
bankruptcy or otherwise, whether for the specific enforcement of any covenant
or agreement contained in this Indenture or in aid of the exercise of any power
granted in this Indenture, or to enforce any other legal or equitable right
vested in the Trustee by this Indenture or by law.
SECTION 6.06. REMEDIES CUMULATIVE AND CONTINUING. All powers and remedies
given by this Article Six to the Trustee or to the Holders of Debt Securities
of any series shall, to the extent permitted by law, be deemed cumulative and
not exclusive of any thereof or of any other powers and remedies available to
the Trustee or the Holders of such Debt Securities, by judicial proceedings or
otherwise, to enforce the performance or observance of the covenants and
agreements contained in this Indenture, and no delay or omission of the Trustee
or of any Holder of any such Debt Securities to exercise any right or power
accruing upon any default occurring and continuing as aforesaid shall impair
any such right or power, or shall be construed to be a waiver of any such
default or an acquiescence therein; and, subject to the provisions of Section
6.04, every power and remedy given by this Article Six or by law to the Trustee
or to the Holders of Debt Securities of any series may be exercised from time
to time, and as often as shall be deemed expedient, by the Trustee or by the
Holders of Debt Securities of such series.
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SECTION 6.07. DIRECTION OF PROCEEDINGS AND WAIVER OF DEFAULTS BY HOLDERS OF
DEBT SECURITIES. The Holders of a majority (voting as one class) in aggregate
principal amount of the Debt Securities of each series affected at the time
Outstanding shall have the right to direct the time, method and place of
conducting any proceeding for any remedy available to the Trustee, or
exercising any trust or power conferred on the Trustee, with respect to the
Debt Securities of such series; provided, however, that (subject to the
requirements of Section 315 of the Trust Indenture Act of 1939) the Trustee
shall have the right to decline to follow any such direction if the Trustee,
being advised by counsel, determines that the action or proceeding so directed
may not lawfully be taken or if the Trustee in good faith by a Responsible
Officer shall determine that the action or proceeding so directed could involve
the Trustee in personal liability or expense materially in excess of any
indemnity offered pursuant to Section 7.05 hereof. The Holders of a majority in
aggregate principal amount of the Debt Securities of such series at the time
Outstanding may on behalf of the Holders of all of the Debt Securities of such
series waive any past default or Event of Default with respect to such series
and its consequences except a default in the payment of interest, if any, on,
or the principal of or premium, if any, on any Debt Security of such series, or
in the payment of any sinking fund installment with respect to Debt Securities
of such series. Upon any such waiver the Company, the Trustee and the Holders
of the Debt Securities of that series shall be restored to their former
positions and rights hereunder, respectively; but no such waiver shall extend
to any subsequent or other default or Event of Default or impair any right
consequent thereon. Whenever any default or Event of Default hereunder shall
have been waived as permitted by this Section 6.07, said default or Event of
Default shall for all purposes of the Debt Securities of such series and this
Indenture be deemed to have been cured and to be not continuing.
ARTICLE SEVEN
CONCERNING THE TRUSTEE
SECTION 7.01. RELIANCE ON DOCUMENTS AND OPINIONS. Subject to the requirements
of Section 315 of the Trust Indenture Act of 1939:
(a) the Trustee may rely and shall be protected in acting or refraining
from acting upon any resolution, certificate, statement, instrument,
opinion, report, notice, request, direction, consent, order, or other paper
or document believed by it to be genuine and to have been signed or
presented by the proper party or parties;
(b) any request, direction, order or demand of the Company mentioned
herein shall be sufficiently evidenced by an Officers' Certificate (unless
other evidence in respect thereof be herein specifically prescribed); and
any resolution of the Board of Directors may be evidenced to the Trustee by
a copy thereof certified by the Secretary or an Assistant Secretary of the
Company;
(c) the Trustee may consult with counsel and any Opinion of Counsel shall
be full and complete authorization and protection in respect of any action
taken, omitted or suffered to be taken by it hereunder in good faith and in
accordance with such Opinion of Counsel;
(d) the Trustee shall be under no obligation to exercise any of the
rights or powers vested in it by this Indenture at the request, order or
direction of any of the Holders, pursuant to the provisions of this
Indenture, unless such Holders shall have offered to the Trustee reasonable
security or indemnity against the costs, expenses and liabilities which
might be incurred therein or thereby;
(e) the Trustee shall not be liable for any action taken, omitted or
suffered by it in good faith and believed by it to be authorized or within
the discretion or rights or powers conferred upon it by this Indenture;
(f) the Trustee shall not be bound to make any inquiry or investigation
into the facts or matters stated in any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order,
bond, note, or other paper or document unless requested in writing to do so
by the Holders of a majority in aggregate principal amount of the Debt
Securities of any series affected then outstanding; provided, however, that
if the payment within a reasonable time to the Trustee of the costs and
expenses or liabilities likely to be incurred by it in the making of such
investigation is, in the opinion
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of the Trustee, not reasonably assured to the Trustee by the security
conferred upon it by the terms of this Indenture, the Trustee may require
reasonable indemnity against such costs, expenses or liabilities as a
condition to so proceeding; and the reasonable expense of such
investigation shall be paid by the Company or, if paid by the Trustee,
shall be repaid by the Company upon demand; and
(g) the Trustee may execute any of the trusts or powers hereunder or
perform any duties hereunder either directly or by or through agents or
attorneys, and the Trustee shall not be responsible for any misconduct or
negligence on the part of any agent or attorney appointed with due care by
it hereunder.
SECTION 7.02. RESPONSIBILITY FOR RECITALS. The recitals contained herein and
in the Debt Securities (except in the certificates of authentication of the
Trustee and the Authenticating Agent) shall be taken as the statements of the
Company, and the Trustee and the Authenticating Agent assume no responsibility
for the correctness of the same. The Trustee and the Authenticating Agent make
no representations as to the validity or sufficiency of this Indenture or the
Debt Securities, provided that neither the Trustee nor the Authenticating Agent
shall be relieved of its duty to authenticate Debt Securities only as
authorized by this Indenture. The Trustee and the Authenticating Agent shall
not be accountable for the use or application by the Company of any of the Debt
Securities or of the proceeds thereof.
SECTION 7.03. OWNERSHIP OF DEBT SECURITIES. The Trustee or any Authenticating
Agent and any agent of the Company or of the Trustee, in its individual or any
other capacity, may become the owner or pledgee of Debt Securities with the
same rights it would have if it were not Trustee, Authenticating Agent or such
agent.
SECTION 7.04. MONEYS TO BE HELD IN TRUST. Subject to the provisions of
Sections 12.03 and 12.04 hereof, all moneys received by the Trustee or any
paying agent shall, until used or applied as herein provided, be held in trust
for the purposes for which they were received, but need not be segregated from
other funds except to the extent required by law. Neither the Trustee nor any
paying agent shall be under any liability for interest on any moneys received
by it hereunder except such as it may agree with the Company to pay thereon. So
long as no Event of Default shall have occurred and be continuing, all interest
allowed on any such moneys shall be paid from time to time upon Company Order.
SECTION 7.05. COMPENSATION AND EXPENSES OF TRUSTEE. The Company covenants and
agrees to pay the Trustee from time to time, and the Trustee shall be entitled
to, reasonable compensation (which shall not be limited by any provision of law
in regard to the compensation of a trustee of an express trust) and, except as
otherwise expressly provided, the Company will pay or reimburse the Trustee
upon its request for all reasonable expenses, disbursements and advances
incurred or made by the Trustee in accordance with any of the provisions of
this Indenture (including the reasonable compensation and the expenses and
disbursements of its agents or counsel and of all persons not regularly in its
employ) except any such expense, disbursement or advance as may be attributable
to its negligence or bad faith. If any property other than cash shall at any
time be subject to the lien of this Indenture, the Trustee, if and to the
extent authorized by a receivership or bankruptcy court of competent
jurisdiction or by the supplemental instrument subjecting such property to such
lien, shall be entitled to make advances for the purpose of preserving such
property or of discharging tax liens or other prior liens or encumbrances
thereon. The Company also covenants to indemnify the Trustee for, and to hold
it harmless against, any loss, liability or expense incurred without negligence
or bad faith on the part of the Trustee, arising out of or in connection with
the acceptance or administration of this trust and its duties hereunder,
including the costs and expenses of defending itself against any claim of
liability in the premises. The obligations of the Company under this Section
7.05 to compensate the Trustee, to pay or reimburse the Trustee for expenses,
disbursements and advances and to indemnify the Trustee shall constitute
additional indebtedness hereunder. Such additional indebtedness shall be
secured by a lien prior to that of the Debt Securities upon all property and
funds held or collected by the Trustee as such, except funds held in trust for
the benefit of the Holders of particular Debt Securities.
SECTION 7.06. OFFICERS' CERTIFICATE AS EVIDENCE. Subject to the requirements
of Section 315 of the Trust Indenture Act of 1939, whenever in the
administration of the provisions of this Indenture the Trustee shall
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deem it necessary or desirable that a matter be proved or established prior to
taking, omitting or suffering any action to be taken hereunder, such matter
(unless other evidence in respect thereof be herein specifically prescribed)
may, in the absence of negligence or bad faith on the part of the Trustee, be
deemed to be conclusively proved by an Officers' Certificate delivered to the
Trustee, and such certificate, in the absence of negligence or bad faith on the
part of the Trustee, shall be full warrant to the Trustee for any action taken,
omitted or suffered by it under the provisions of this Indenture upon the faith
thereof.
SECTION 7.07. ELIGIBILITY OF TRUSTEE. The Trustee hereunder shall at all
times be a corporation organized and doing business under the laws of the
United States or any State, which (a) is authorized under such laws to exercise
corporate trust powers, (b) is subject to supervision or examination by Federal
or State authority, (c) shall have at all times a combined capital and surplus
of not less than ten million dollars and (d) is eligible under the provisions
of the Trust Indenture Act of 1939. If such corporation publishes reports of
condition at least annually, pursuant to law, or to the requirements of the
aforesaid supervising or examining authority, then for the purposes of this
Section 7.07, the combined capital and surplus of such corporation at any time
shall be deemed to be its combined capital and surplus as set forth in its most
recent report of condition so published. In case at any time the Trustee shall
cease to be eligible in accordance with the provisions of this Section 7.07,
the Trustee shall resign immediately in the manner and with the effect
specified in Section 7.08.
SECTION 7.08. RESIGNATION OR REMOVAL OF TRUSTEE. (a) The Trustee, or any
trustee or trustees hereafter appointed, may at any time resign with respect to
any one or more or all series of Debt Securities by giving written notice of
resignation to the Company and by mailing notice thereof to the Holders of the
applicable series of Debt Securities at their addresses as they shall appear on
the registry books of the Company. Upon receiving such notice of resignation,
the Company shall promptly appoint a successor trustee or trustees with respect
to the applicable series by written instrument, in duplicate, executed under
authority of the Board of Directors of the Company, one copy of which
instrument shall be delivered to the resigning Trustee and one copy to the
successor trustee. If no successor trustee shall have been so appointed with
respect to any series and have accepted appointment within 60 days after the
giving of such notice of resignation, the resigning Trustee may petition any
court of competent jurisdiction for the appointment of a successor trustee, or
any Holder who has been a bona fide Holder of a Debt Security or Debt
Securities of the applicable series for at least six months may, subject to the
requirements of Section 315(e) of the Trust Indenture Act of 1939, on behalf of
himself and all others similarly situated, petition any such court for the
appointment of a successor trustee. Such court may thereupon, after such
notice, if any, as it may deem proper and prescribe, appoint a successor
trustee.
(b) In case at any time any of the following shall occur:
(1) the Trustee shall cease to be eligible in accordance with the
provisions of Section 7.07 with respect to any series of Debt Securities
and shall fail to resign after written request therefor by the Company or
by any such Holder, or
(2) the Trustee shall become incapable of acting with respect to any
series of Debt Securities, or shall be adjudged a bankrupt or insolvent, or
a receiver of the Trustee or of its property shall be appointed, or any
public officer shall take charge or control of the Trustee or of its
property or affairs for the purpose of rehabilitation, conservation or
liquidation, then, in any such case, the Company may remove the Trustee
with respect to such series and appoint a successor trustee with respect to
such series by written instrument, in duplicate, executed under authority
of the Board of Directors of the Company, one copy of which instrument
shall be delivered to the Trustee so removed and one copy to the successor
trustee, or, subject to the requirements of Section 315(e) of the Trust
Indenture Act of 1939, any Holder who has been a bona fide Holder of a Debt
Security of such series for at least six months may, on behalf of himself
and all others similarly situated, petition any court of competent
jurisdiction for the removal of the Trustee and the appointment of a
successor trustee with respect to such series. Such court may thereupon,
after such notice, if any, as it may deem proper and prescribe, remove the
Trustee and appoint a successor trustee with respect to such series.
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(c) The Holders of 66 2/3% in aggregate principal amount of the Debt
Securities of one or more series (each series voting as a class) or all series
at the time Outstanding may at any time remove the Trustee with respect to the
applicable series or all series, as the case may be, and appoint with respect
to the applicable series or all series, as the case may be, a successor trustee
by written notice of such action to the Company, the Trustee and the successor
trustee which shall be deemed appointed as successor trustee with respect to
the applicable series of Debt Securities or all series, as the case may be,
unless within ten days after such nomination the Company objects thereto, in
which case the Trustee so removed or any Holder of a Debt Security of the
applicable series (in the case of any such objection to a nomination of a
successor trustee with respect to such series) or any Holder (in the case of
any such objection to a nomination of a successor trustee with respect to all
series), upon the terms, and conditions and otherwise as in subsection (a) of
this Section 7.08 provided, may petition any court of competent jurisdiction
for the appointment of a successor trustee with respect to such series of Debt
Securities or all series, as the case may be.
(d) Any resignation or removal of the Trustee with respect to any series and
any appointment of a successor trustee with respect to such series pursuant to
any of the provisions of this Section 7.08 shall become effective upon
acceptance of appointment by the successor trustee as provided in Section 7.09.
SECTION 7.09. ACCEPTANCE BY SUCCESSOR TRUSTEE. Any successor trustee
appointed as provided in Section 7.08 shall execute, acknowledge and deliver to
the Company and to its predecessor trustee an instrument accepting such
appointment hereunder, and thereupon the resignation or removal of the
predecessor trustee with respect to any or all applicable series shall become
effective and such successor trustee, without any further act, deed or
conveyance, shall become vested with all the rights, powers, duties and
obligations with respect to such series of its predecessor hereunder, with like
effect as if originally named as trustee herein; but, nevertheless, on the
written request of the Company, or of the successor trustee, the trustee
ceasing to act shall, upon payment (or due provision therefor) of any amounts
then due it pursuant to the provisions of Section 7.05, execute and deliver an
instrument transferring to such successor trustee all the rights and powers
with respect to such series of the trustee so ceasing to act. Upon request of
any such successor trustee, the Company shall execute any and all instruments
in writing in order more fully and certainly to vest in and confirm to such
successor trustee all such rights and powers. Any trustee ceasing to act shall,
nevertheless, retain a lien upon all property or funds held or collected by
such trustee to secure any amounts then due it pursuant to the provisions of
Section 7.05.
In case of the appointment hereunder of a successor trustee with respect to
the Debt Securities of one or more (but not all) series, the Company, the
predecessor trustee and each successor trustee with respect to the Debt
Securities of any applicable series shall execute and deliver an indenture
supplemental hereto which shall contain such provisions as shall be deemed
necessary or desirable to confirm that all the rights, powers, trusts and
duties of the predecessor trustee with respect to the Debt Securities of any
series as to which the predecessor trustee is not retiring shall continue to be
vested in the predecessor trustee, and shall add to or change any of the
provisions of this Indenture as shall be necessary to provide for or facilitate
the administration of the trusts hereunder by more than one trustee, it being
understood that nothing herein or in such supplemental indenture shall
constitute such trustees co-trustees of the same trust and that each such
trustee shall be trustee of a trust or trusts hereunder separate and apart from
any trust or trusts hereunder administered by any other such trustee.
No successor trustee with respect to a series of Debt Securities shall accept
appointment as provided in this Section 7.09 unless at the time of such
acceptance such successor trustee shall, with respect to such series, be
qualified under the requirements of the Trust Indenture Act of 1939 and
eligible under the provisions of Section 7.07.
Upon acceptance of appointment by a successor trustee with respect to any
series as provided in Section 7.09, the Company shall mail notice of the
succession of such trustee hereunder to the Holders of Debt Securities of such
series at their addresses as they shall appear on the registry books of the
Company. If the Company fails to mail such notice within ten days after the
acceptance of appointment by the successor trustee, the successor trustee shall
cause such notice to be mailed at the expense of the Company.
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SECTION 7.10. SUCCESSION BY MERGER. Any corporation into which the Trustee
may be merged or converted or with which it may be consolidated, or any
corporation resulting from any merger, conversion or consolidation to which the
Trustee shall be a party, or any corporation succeeding to the corporate trust
business of the Trustee, shall be the successor to the Trustee hereunder,
provided such corporation shall be qualified under the requirements of the
Trust Indenture Act of 1939 and eligible under the provisions of Section 7.07,
without the execution or filing of any paper or any further act on the part of
any of the parties hereto, anything herein to the contrary notwithstanding.
In case at the time such successor to the Trustee shall succeed to the trust
created by this Indenture with respect to one or more series of Debt
Securities, any of such Debt Securities shall have been authenticated but not
delivered, any such successor to the Trustee by merger, conversion or
consolidation may adopt the certificate of authentication of any predecessor
trustee, and deliver such Debt Security so authenticated; and in case at that
time any of such Debt Securities shall not have been authenticated, any
successor to the Trustee may authenticate such Debt Securities either in the
name of such successor to the Trustee or, if such successor to the Trustee is a
successor by merger, conversion or consolidation, the name of any predecessor
hereunder; and in all such cases such certificate shall have the full force
which it is anywhere in such Debt Securities or in this Indenture provided that
the certificate of the Trustee shall have.
SECTION 7.11. AUTHENTICATING AGENTS. There may be one or more Authenticating
Agents appointed by the Trustee, with the consent of the Company, having power
to act on behalf of the Trustee and subject to its direction in the
authentication and delivery of Debt Securities of one or more series issued
upon exchange or transfer thereof as fully to all intents and purposes as
though any such Authenticating Agent had been expressly authorized to
authenticate and deliver such Debt Securities. Any such Authenticating Agent
shall at all times be a corporation organized and doing business under the laws
of the United States of America or of any State thereof authorized under such
laws to act as Authenticating Agent, having a combined capital and surplus of
at least $5,000,000 and being subject to supervision or examination by Federal
or State authority. If such corporation publishes reports of condition at least
annually pursuant to law or the requirements of such authority, then for the
purposes of this Section 7.11 the combined capital and surplus of such
corporation shall be deemed to be its combined capital and surplus as set forth
in its most recent report of condition so published. If at any time an
Authenticating Agent shall cease to be eligible in accordance with the
provisions of this Section, it shall resign immediately in the manner and with
the effect herein specified in this Section.
Any corporation into which any Authenticating Agent may be merged or
converted or with which it may be consolidated, or any corporation resulting
from any merger, consolidation or conversion to which any Authenticating Agent
shall be a party, or any corporation succeeding to the corporate trust business
of any Authenticating Agent, shall be the successor of such Authenticating
Agent hereunder, if such successor corporation is otherwise eligible under this
Section 7.11, without the execution or filing of any paper or any further act
on the part of the parties hereto or such Authenticating Agent.
Any Authenticating Agent may at any time resign by giving written notice of
resignation to the Trustee and to the Company. The Trustee may at any time
terminate the agency of any Authenticating Agent by giving written notice of
termination to such Authenticating Agent and to the Company. Upon receiving
such a notice of resignation or upon such a termination, or in case at any time
any Authenticating Agent shall cease to be eligible under this Section 7.11,
the Trustee may, and upon the request of the Company shall, promptly appoint a
successor Authenticating Agent eligible under this Section 7.11, and shall give
written notice of such appointment to the Company and to the Holders of Debt
Securities at their addresses as they shall appear on the registry books of the
Company. Any successor Authenticating Agent, upon acceptance of its appointment
hereunder, shall become vested with all rights, powers, duties and
responsibilities of its predecessor hereunder, with like effect as if
originally named as Authenticating Agent herein.
The Trustee agrees to pay to any Authenticating Agent from time to time
reasonable compensation for its services, and the Trustee shall be entitled to
be reimbursed for such payments, subject to Section 7.05.
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Any Authenticating Agent shall have no responsibility or liability for any
action taken by it as such in accordance with the directions of the Trustee.
ARTICLE EIGHT
CONCERNING THE HOLDERS
SECTION 8.01. ACTION BY HOLDERS. Whenever in this Indenture it is provided
that the Holders of a specified percentage in aggregate principal amount of the
Debt Securities of any or all series may take any action (including the making
of any demand or request, the giving of any notice, consent or waiver or the
taking of any other action) the fact that at the time of taking any such action
the Holders of such specified percentage have joined therein may be evidenced
(a) by any instrument or any number of instruments of similar tenor executed by
such Holders in person or by agent or proxy appointed in writing, or (b) by the
record of such Holders of Debt Securities voting in favor thereof at any
meeting of such Holders duly called and held in accordance with the provisions
of Article Nine, or (c) by a combination of such instrument or instruments and
any such record of such a meeting of such Holders.
SECTION 8.02. PROOF OF EXECUTION BY HOLDERS. Subject to the requirements of
Section 315 of the Trust Indenture Act of 1939 and Sections 7.01 and 9.05,
proof of the execution of any instrument by a Holder or his agent or proxy
shall be sufficient if made in accordance with such reasonable rules and
regulations as may be prescribed by the Trustee or in such manner as shall be
satisfactory to the Trustee. The ownership of Debt Securities shall be proved
by the registry books of the Company or by a certificate of the person
designated by the Company to act as repository in accordance with the
provisions of Section 2.06.
The record of any Holders' meeting shall be proved in the manner provided in
Section 9.06.
SECTION 8.03. WHO ARE DEEMED ABSOLUTE OWNERS. The Company, the Trustee and
any agent of the Company or of the Trustee may deem the person in whose name a
Debt Security shall be registered upon the books of the Company to be, and may
treat him as, the absolute owner of such Debt Security (whether or not such
Debt Security shall be overdue and notwithstanding any notation of ownership or
other writing thereon) for the purpose of receiving payment of or on account of
the principal of, premium, if any, and interest, if any, on such Debt Security
and for all other purposes; and neither the Company nor the Trustee nor any
agent of the Company or the Trustee shall be affected by any notice to the
contrary. All such payments so made to any Holder for the time being, or upon
his order, shall be valid, and, to the extent of the sum or sums so paid,
effectual to satisfy and discharge the liability for moneys payable upon any
such Debt Security.
SECTION 8.04. COMPANY-OWNED DEBT SECURITIES DISREGARDED. In determining
whether the Holders of the requisite aggregate principal amount of Debt
Securities have concurred in any demand, request, notice, direction, consent or
waiver under this Indenture, Debt Securities which are owned by the Company or
any other obligor on the Debt Securities with respect to which such
determination is being made, or by any person directly or indirectly
controlling or controlled by or under direct or indirect common control with
the Company or any other obligor on the Debt Securities, with respect to which
such determination is being made, shall be disregarded and deemed not to be
Outstanding for the purposes of any such determination; provided, that for the
purposes of determining whether the Trustee shall be protected in relying on
any such demand, request, notice, direction, consent or waiver only Debt
Securities which the Trustee knows are so owned shall be so disregarded.
SECTION 8.05. REVOCATION OF CONSENTS; FUTURE HOLDERS BOUND. At any time prior
to (but not after) the evidencing to the Trustee, as provided in Section 8.01,
of the taking of any action by the Holders of the percentage in aggregate
principal amount of the Debt Securities of any or all series, as the case may
be, specified in this Indenture in connection with such action, any Holder of a
Debt Security which is shown by
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the evidence to be included in the Debt Securities the Holders of which have
consented to such action may, by filing written notice with the Trustee at its
principal office and upon proof of holding as provided in Section 8.02, revoke
such action so far as concerns such Debt Security. Except as aforesaid any such
action taken by the Holder of any Debt Security shall be conclusive and binding
upon such Holder and upon all future Holders of such Debt Security, and any
Debt Security issued upon the registration of transfer thereof, irrespective of
whether or not any notation in regard thereto is made upon such Debt Security
or any Debt Security issued in exchange or substitution therefor.
ARTICLE NINE
HOLDERS' MEETINGS
SECTION 9.01. PURPOSES OF MEETINGS. A meeting of Holders of Debt Securities
of any or all series may be called at any time and from time to time pursuant
to the provisions of this Article Nine for any of the following purposes:
(1) to give any notice to the Company or to the Trustee, or to give any
directions to the Trustee, or to consent to the waiving of any default
hereunder and its consequences, or to take any other action authorized to
be taken by Holders pursuant to any of the provisions of Article Six;
(2) to remove the Trustee and nominate a successor trustee pursuant to
the provisions of Article Seven;
(3) to consent to the execution of an indenture or indentures
supplemental hereto pursuant to the provisions of Section 10.02; or
(4) to take any other action authorized to be taken by or on behalf of
the Holders of any specified aggregate principal amount of the Debt
Securities of any or all series, as the case may be, under any other
provision of this Indenture or under applicable law.
SECTION 9.02. CALL OF MEETINGS BY TRUSTEE. The Trustee may at any time call a
meeting of Holders of Debt Securities of any or all series to take any action
specified in Section 9.01, to be held at such time and at such place as the
Trustee shall determine. Notice of every meeting of the Holders of Debt
Securities of any or all series, setting forth the time and the place of such
meeting and in general terms the action proposed to be taken at such meeting,
shall be mailed to Holders of Debt Securities of each series affected at their
addresses as they shall appear on the registry books of the Company. Such
notice shall be mailed not less than 20 nor more than 90 days prior to the date
fixed for the meeting.
SECTION 9.03. CALL OF MEETINGS BY THE COMPANY OR HOLDERS. In case at any time
the Company, pursuant to a resolution of its Board of Directors, or the Holders
of at least twenty-five percent in aggregate principal amount of the Debt
Securities then Outstanding of any series that may be affected by the action
proposed to be taken at the meeting, shall have requested the Trustee to call a
meeting of the Holders of Debt Securities of all series that may be so
affected, by written request setting forth in reasonable detail the action
proposed to be taken at the meeting, and the Trustee shall not have mailed the
notice of such meeting within 20 days after receipt of such request, then the
Company or such Holders, in the amount specified above, may determine the time
and the place for such meeting and may call such meeting to take any action
authorized in Section 9.01, by mailing notice thereof as provided in Section
9.02.
SECTION 9.04. QUALIFICATIONS FOR VOTING. To be entitled to vote at any
meeting of Holders a person shall (a) be a Holder of one or more Debt
Securities with respect to which such meeting is being held or (b) be a person
appointed by an instrument in writing as proxy by a Holder of one or more such
Debt Securities. The only persons who shall be entitled to be present or to
speak at any meeting of Holders shall be the persons entitled to vote at such
meeting and their counsel, any representatives of the Trustee and its counsel
and any representatives of the Company and its counsel.
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SECTION 9.05. REGULATIONS. Notwithstanding any other provisions of this
Indenture, the Trustee may make such reasonable regulations as it may deem
advisable for any meeting of Holders, in regard to proof of the holding of Debt
Securities and of the appointment of proxies, and in regard to the appointment
and duties of inspectors of votes, the submission and examination of proxies,
certificates and other evidence of the right to vote, and such other matters
concerning the conduct of the meeting as it shall think fit.
The Trustee shall, by an instrument in writing, appoint a temporary chairman
of the meeting, unless the meeting shall have been called by the Company or by
Holders as provided in Section 9.03, in which case the Company or the Holders
calling the meeting, as the case may be, shall in like manner appoint a
temporary chairman. A permanent chairman and a permanent secretary of the
meeting shall be elected by majority vote of the meeting.
Subject to the provisions of Section 8.04, at any meeting each Holder of Debt
Securities with respect to which such meeting is being held or proxy shall be
entitled to one vote for each $1,000 principal amount (or in the case of
Original Issue Discount Securities or Debt Securities of such series
denominated in a currency other than Dollars or are denominated in units or
composites of two or more currencies, such principal amount to be determined as
of the record date as provided in the definition of "Outstanding.") of such
Debt Securities held or represented by each Holder; provided, however, that no
vote shall be cast or counted at any meeting in respect of any such Debt
Security challenged as not Outstanding and ruled by the chairman of the meeting
to be not Outstanding. The chairman of the meeting shall have no right to vote
other than by virtue of such Debt Securities held by him or instruments in
writing as aforesaid duly designating him as the person to vote on behalf of
other such Holders. At any meeting of Holders, the presence of persons holding
or representing Debt Securities in an aggregate principal amount sufficient to
take action on any business for the transaction of which such meeting was
called shall constitute a quorum.
Any meeting of Holders of Debt Securities with respect to which a meeting was
duly called pursuant to the provisions of Section 9.02 or 9.03 may be adjourned
from time to time by a majority of those present, whether or not constituting a
quorum, and the meeting may be held as so adjourned without further notice.
SECTION 9.06. VOTING. The vote upon any resolution submitted to any meeting
of Holders of Debt Securities with respect to which such meeting is being held
shall be by written ballots on which shall be subscribed the signatures of such
Holders of Debt Securities or of their representatives by proxy and the
principal amount and number or numbers of such Debt Securities held or
represented by them. The permanent chairman of the meeting shall appoint two
inspectors of votes who shall count all votes cast at the meeting for or
against any resolution and who shall make and file with the secretary of the
meeting their verified written reports in duplicate of all votes cast at the
meeting. A record in duplicate of the proceedings of each meeting of Holders
shall be prepared by the secretary of the meeting and there shall be attached
to said record the original reports of the inspectors of votes on any vote by
ballot taken thereat and affidavits by one or more persons having knowledge of
the facts setting forth a copy of the notice of the meeting and showing that
said notice was mailed as provided in Section 9.02. The record shall show the
principal amount of the Debt Securities voting in favor of or against any
resolution. The record shall be signed and verified by the affidavits of the
permanent chairman and secretary of the meeting and one of the duplicates shall
be delivered to the Company and the other to the Trustee to be preserved by the
Trustee, the latter to have attached thereto the ballots voted at the meeting.
Any records so signed and verified shall be conclusive evidence of the
matters therein stated.
SECTION 9.07. NO DELAY OF RIGHTS BY MEETING. Nothing in this Article Nine
shall be deemed or construed to authorize or permit, by reason of any call of a
meeting of Holders of any or all series or any rights expressly or impliedly
conferred hereunder to make such call, any hindrance or delay in the exercise
of any right or rights conferred upon or reserved to the Trustee or to the
Holders of any or all such series under any of the provisions of this Indenture
or of the Debt Securities.
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ARTICLE TEN
SUPPLEMENTAL INDENTURES
SECTION 10.01. SUPPLEMENTAL INDENTURES WITHOUT CONSENT OF HOLDERS. The
Company when authorized by resolution of the Board of Directors and the Trustee
may from time to time and at any time enter into an indenture or indentures
supplemental hereto for one or more of the following purposes:
(a) to evidence the succession of another corporation to the Company, or
successive successions, and the assumption by the successor corporation of
the covenants, agreements and obligations of the Company, as the case may
be pursuant to Article Eleven hereof;
(b) to add to the covenants of the Company such further covenants,
restrictions or conditions for the protection of the Holders of all or any
series of Debt Securities (and if such covenants are to be for the benefit
of less than all series of Debt Securities, stating that such covenants are
expressly being included for the benefit of such series) as the Board of
Directors of the Company shall consider to be for the protection of the
Holders of such Debt Securities or as may be required by Section 4.03 or
Section 11.02, and to make the occurrence, or the occurrence and
continuance, of a default in any of such additional covenants, restrictions
or conditions a default or an Event of Default permitting the enforcement
of all or any of the several remedies provided in this Indenture as herein
set forth; provided, however, that in respect of any such additional
covenant, restriction or condition such supplemental indenture may provide
for a particular period of grace after default (which period may be shorter
or longer than that allowed in the case of other defaults) or may provide
for an immediate enforcement upon such default or may limit the remedies
available to the Trustee upon such default;
(c) to provide for the issuance under this Indenture of Debt Securities
in bearer or coupon form (including securities registrable as to principal
only) and to provide for exchangeability of such Debt Securities with the
Debt Securities of the same series issued hereunder in fully registered
form and to make all appropriate changes for such purpose;
(d) to establish the form or terms of Debt Securities of any series as
permitted by Sections 2.01 and 2.02;
(e) to cure any ambiguity or to correct or supplement any provision
contained herein or in any supplemental indenture which may be defective or
inconsistent with any other provision contained herein or in any
supplemental indenture, or to make such other provisions in regard to
matters or questions arising under this Indenture which shall not adversely
affect the interests of the Holders of any Debt Securities;
(f) to evidence and provide for the acceptance of appointment hereunder
by a successor trustee with respect to the Debt Securities of one or more
series or to add to or change any of the provisions of this Indenture as
shall be necessary to provide for or facilitate the administration of the
trusts hereunder by more than one trustee, pursuant to the requirements of
Section 7.09; and
(g) to add appropriate provisions (including the appointment of a co-
trustee) to evidence the securing of any series of Debt Securities pursuant
to Section 4.06.
The Trustee is hereby authorized to join with the Company in the execution of
any such supplemental indenture, to make any further appropriate agreements and
stipulations which may be therein contained and to accept the conveyance,
transfer, assignment, mortgage or pledge of any property thereunder, but the
Trustee shall not be obligated to, but may in its discretion, enter into any
such supplemental indenture which affects the Trustee's own rights, duties or
immunities under this Indenture or otherwise.
Any supplemental indenture authorized by the provisions of this Section 10.01
may be executed by the Company and the Trustee without the consent of the
Holders of any of the Debt Securities at the time Outstanding, notwithstanding
any of the provisions of Section 10.02.
SECTION 10.02. SUPPLEMENTAL INDENTURES WITH CONSENT OF HOLDERS. With the
consent (evidenced as provided in Sections 8.01 and 8.02) of the Holders of not
less than 66 2/3% in aggregate principal amount of
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the Debt Securities of each series issued under the Indenture (each series
voting as a class) affected by such supplemental indenture at the time
Outstanding, the Company, when authorized by a resolution of the Board of
Directors and the Trustee may from time to time and at any time enter into an
indenture or indentures supplemental hereto for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions of
this Indenture or of any supplemental indenture or of modifying in any manner
the rights of the Holders of the Debt Securities of each such series; provided,
however, that, without the consent of the Holders of all Debt Securities
affected then Outstanding, no such supplemental indenture shall (i) extend the
fixed maturity of any Debt Security, or reduce the rate or extend the time of
payment of interest, if any, thereon, or reduce the principal amount or
premium, if any, thereon, or make the principal thereof or premium, if any, or
interest, if any, thereon payable in any coin or currency other than that
provided in any Debt Security, or reduce the amount of the principal of an
Original Issue Discount Security that would be due and payable upon an
acceleration of the maturity thereof pursuant to Section 6.01 or adversely
affect the right of repayment, if any, at the option of the Holder or (ii)
reduce the aforesaid percentage of Debt Securities of any series, the Holders
of which are required to consent to any such supplemental indenture. A
supplemental indenture which changes or eliminates any covenant or other
provision of this Indenture which has expressly been included solely for the
benefit of one or more particular series of Debt Securities, or which modifies
the rights of the Holders of Debt Securities of such series with respect to
such covenant or other provision shall be deemed not to affect the rights under
this Indenture of the Holders of Debt Securities of any other series.
Upon the request of the Company, accompanied by a copy of the resolutions of
the Board of Directors authorizing the execution and delivery of any such
supplemental indenture, and upon the filing with the Trustee of evidence of the
consent of Holders as aforesaid, the Trustee shall join with the Company in the
execution of such supplemental indenture unless such supplemental indenture
affects the Trustee's own rights, duties or immunities under this Indenture or
otherwise, in which case the Trustee may in its discretion, but shall not be
obligated to, enter into such supplemental indenture.
It shall not be necessary for the consent of the Holders under this Section
10.02 to approve the particular form of any proposed supplemental indenture,
but it shall be sufficient if such consent shall approve the substance thereof.
SECTION 10.03. COMPLIANCE WITH TRUST INDENTURE ACT; EFFECT OF SUPPLEMENTAL
INDENTURES. Any supplemental indenture executed pursuant to the provisions of
this Article Ten shall comply with the Trust Indenture Act of 1939, as then in
effect. Upon the execution of any supplemental indenture pursuant to the
provisions of this Article Ten, this Indenture shall be deemed to be modified
and amended in accordance therewith and the respective rights, limitations of
rights, obligations, duties and immunities under this Indenture of the Trustee,
the Company and the Holders of Debt Securities shall thereafter be determined,
exercised and enforced hereunder subject in all respects to such modifications
and amendments, and all the terms and conditions of any such supplemental
indenture shall be and be deemed to be part of the terms and conditions of this
Indenture for any and all purposes.
SECTION 10.04. NOTATION ON DEBT SECURITIES. Debt Securities authenticated and
delivered after the execution of any supplemental indenture pursuant to the
provisions of this Article Ten may bear a notation in form approved by the
Trustee as to any matter provided for in such supplemental indenture. If the
Company or the Trustee shall so determine, new Debt Securities of any series so
modified as to conform, in the opinion of the Trustee and the Board of
Directors of the Company, to any modification of this Indenture contained in
any such supplemental indenture may be prepared and executed by the Company,
and such Debt Securities may be authenticated by the Trustee and delivered in
exchange for the Debt Securities of such series then outstanding.
SECTION 10.05. EVIDENCE OF COMPLIANCE OF SUPPLEMENTAL INDENTURE TO BE
FURNISHED TRUSTEE. The Trustee, subject to the requirements of Section 315 of
the Trust Indenture Act of 1939 and Section 7.01, may receive an Officers'
Certificate and an Opinion of Counsel as conclusive evidence that any
supplemental indenture executed pursuant hereto complies with the requirements
of this Article Ten.
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ARTICLE ELEVEN
CONSOLIDATION, MERGER, SALE OR CONVEYANCE
SECTION 11.01. COMPANY MAY NOT CONSOLIDATE EXCEPT UNDER CERTAIN CONDITIONS.
The Company covenants that it will not merge or consolidate with any other
Person or sell, convey, transfer or otherwise dispose of all or substantially
all of its assets to any Person, unless (i) the Company shall be the continuing
corporation, or the successor corporation or Person (if other than the Company)
shall, by supplemental indenture satisfactory to the Trustee, executed and
delivered to the Trustee by such corporation or Person, expressly assume the
due and punctual payment of the principal of and, premium, if any, and
interest, if any, on all the Debt Securities, according to their tenor, and the
due and punctual performance and observance of all of the covenants and
conditions of this Indenture to be performed by the Company, and (ii) the
Company or such successor corporation or Person, as the case may be, shall not,
immediately after such merger or consolidation, or such sale, conveyance,
transfer or other disposition, be in default in the performance of any such
covenant or condition. In the event of any such sale, conveyance (other than by
way of lease), transfer or other disposition, the predecessor company may be
dissolved, wound up and liquidated at any time thereafter.
SECTION 11.02. SUCCESSOR CORPORATION TO BE SUBSTITUTED. In case of any such
consolidation, merger, sale, conveyance (other than by way of lease), transfer
or other disposition, and upon any such assumption by the successor corporation
or Person, such successor corporation or Person shall succeed to and be
substituted for the Company with the same effect as if it had been named herein
as the Company and the Company shall be relieved of any further obligation
under this Indenture and under the Debt Securities. Such successor corporation
or Person thereupon may cause to be signed, and may issue either in its own
name or in the name of the Company, any or all of the Debt Securities which
theretofore shall not have been signed by the Company and delivered to the
Trustee; and, upon the order of such successor corporation or Person, instead
of the Company and subject to all the terms, conditions and limitations in this
Indenture prescribed, the Trustee or the Authenticating Agent shall
authenticate and shall deliver any Debt Securities which previously shall have
been signed and delivered by the officers of the Company to the Trustee for
authentication, and any Debt Securities, which such successor corporation or
Person thereafter shall cause to be signed and delivered to the Trustee for
that purpose. All the Debt Securities so issued shall in all respects have the
same legal rank and benefit under this Indenture as the Debt Securities
theretofore or thereafter issued in accordance with the terms of this Indenture
as though all of such Debt Securities had been issued at the date of the
execution hereof.
SECTION 11.03. DOCUMENTS TO BE GIVEN TRUSTEE. The Trustee, subject to the
requirements of Section 315 of the Trust Indenture Act of 1939 and Section
7.01, may receive an Officers' Certificate and an Opinion of Counsel as
conclusive evidence that any such consolidation, merger, sale, conveyance,
transfer or other disposition, and any such assumption, comply with the
provisions of this Article Eleven.
ARTICLE TWELVE
SATISFACTION AND DISCHARGE OF INDENTURE OR CERTAIN OBLIGATIONS
SECTION 12.01. DISCHARGE OF INDENTURE. When (a) the Company shall deliver to
the Trustee for cancellation all Debt Securities of a series theretofore
authenticated (other than any Debt Securities of such series which shall have
been destroyed, lost or stolen and which shall have been replaced or paid as
provided in Section 2.07) and not theretofore cancelled; or (b) all Debt
Securities of such series not theretofore cancelled or delivered to the Trustee
for cancellation shall have become due and payable, or are by their terms to
become due and payable within one year or are to be called for redemption
within one year under arrangements satisfactory to the Trustee for the giving
of notice of redemption, and the Company shall deposit with the Trustee, in
trust, funds sufficient to pay at maturity or upon redemption all of the Debt
Securities of such series (other than any Debt Securities of such series which
shall have been mutilated, destroyed, lost or stolen and which shall have been
replaced or paid as provided in Section 2.07) not
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theretofore cancelled or delivered to the Trustee for cancellation, including
principal and premium, if any, and interest, if any, due or to become due to
such date of maturity or redemption date, as the case may be, but excluding,
however, the amount of any money for the payment of the principal of and
premium, if any, or interest, if any, on the Debt Securities of such series (1)
theretofore deposited with the Trustee with respect to Debt Securities of such
series and repaid by the Trustee to the Company in accordance with the
provisions of Section 12.04 or (2) paid with respect to Debt Securities of such
series to any State or to the District of Columbia pursuant to its unclaimed
property or similar laws, and if in either case the Company shall also pay or
cause to be paid all other sums payable hereunder by the Company, then this
Indenture shall cease to be of further effect with respect to the Debt
Securities of such series except as to (A) the rights of Holders of Debt
Securities of such series to receive solely from funds deposited by the Company
with the Trustee, in trust as described above in this Section 12.01, payment of
the principal of, premium, if any, and the interest, if any, on such Debt
Securities when such payments are due; (B) the Company's obligations with
respect to such Debt Securities under Sections 2.06, 2.07, 4.02 and 12.03; and
(C) the rights, powers, duties and immunities of the Trustee hereunder, and the
Trustee, on demand of the Company accompanied by an Officers' Certificate and
an Opinion of Counsel each stating that all conditions precedent herein
provided for relating to the satisfaction and discharge of this Indenture have
been complied with and at the cost and expense of the Company, shall execute
such instruments as may be requested by the Company acknowledging satisfaction
of and discharging this Indenture with respect to such series of Debt
Securities.
SECTION 12.02. DISCHARGE OF OBLIGATIONS. At the Company's option, either (a)
the Company shall be deemed to have been Discharged (as defined below) from its
obligations with respect to any series of Debt Securities on the ninety-first
day after the applicable conditions set forth below have been satisfied or (b)
the Company shall cease to be under any obligation to comply with any term,
provision or condition set forth in Sections 4.06, 11.01 and 11.02 with respect
to any series of Debt Securities and any other covenants provided in a
resolution delivered to the Trustee pursuant to Section 2.02 hereof or an
indenture supplemental hereto with respect to such series of Debt Securities at
any time after the applicable conditions set forth below have been satisfied:
(1) the Company shall have deposited or caused to be deposited
irrevocably with the Trustee as trust funds in trust, specifically pledged
as security for, and dedicated solely to, the benefit of the Holders of the
Debt Securities of such series (A) money in an amount, or (B) U.S.
Government Obligations which through the payment of interest and principal
in respect thereof in accordance with their terms will provide, not later
than one business day before the due date of any payment, money in an
amount, or (C) a combination of (A) and (B), sufficient, in the opinion
(with respect to (A) and (B)) of a nationally recognized firm of
independent public accountants selected by the Company expressed in a
written certification thereof delivered to the Trustee, to pay and
discharge each installment of principal (including mandatory sinking fund
payments) of, premium, if any, and interest, if any, on, the Outstanding
Debt Securities of such series on the dates such installments of principal,
premium, if any, and interest, if any, are due (taking into account any
redemption pursuant to optional sinking fund payments notice of which
redemption is provided to the Trustee at the time of the deposit referred
to in this paragraph (1));
(2) if the Debt Securities of such series are then listed on the New York
Stock Exchange, the Company shall have delivered to the Trustee an Opinion
of Counsel to the effect that the Company's exercise of its option under
this paragraph would not cause such Debt Securities to be delisted;
(3) no Event of Default with respect to the Debt Securities of such
series under Sections 6.01(a), 6.01(b), 6.01(c), 6.01(e) or 6.01(g) of this
Indenture shall have occurred and be continuing on the date of such deposit
and the Company shall have furnished an Officer's Certificate to such
effect;
(4) the Company shall have delivered to the Trustee (a) an Opinion of
Counsel or (b) a ruling from, or published by, the Internal Revenue
Service, whichever of (a) or (b) the Company shall determine, to the effect
that Holders of the Debt Securities of such series will not recognize
income, gain or loss for Federal income tax purposes as a result of the
Company's exercise of its option under this Section 12.02
32
<PAGE>
and will be subject to Federal income tax on the same amount and in the
same manner and at the same time as would have been the case if such option
had not been exercised.
"Discharged" means, for purposes of this Section 12.02, that the Company
shall be deemed to have paid and discharged the entire indebtedness represented
by, and obligations under, the Debt Securities of such series and to have
satisfied all the obligations under this Indenture relating to the Debt
Securities of such series (and the Trustee, at the expense of the Company,
shall execute such instruments as may be requested by the Company acknowledging
the same), except (A) the rights of Holders of Debt Securities of such series
to receive, solely from the trust fund described above, payment of the
principal of, premium, if any, and the interest, if any, on such Debt
Securities when such payments are due; (B) the Company's obligations with
respect to such Debt Securities under Sections 2.06, 2.07, 4.02 and 12.03; and
(C) the rights, powers, duties and immunities of the Trustee hereunder.
SECTION 12.03. DEPOSITED MONEYS TO BE HELD IN TRUST BY TRUSTEE. All moneys
and U.S. Government Obligations deposited with the Trustee pursuant to the
provisions of Section 12.01 or 12.02 and the principal and interest in respect
of U.S. Government Obligations shall be held in trust and applied by it to the
payment, either directly or through any paying agent (including the Company if
acting as its own paying agent), to the Holders of the particular Debt
Securities for payment or redemption of which such moneys have been deposited
with the Trustee, of all sums due and to become due thereon for principal,
premium, if any, and interest, if any.
SECTION 12.04. PAYING AGENT TO REPAY MONEYS HELD. Upon the satisfaction and
discharge of this Indenture all moneys then held by any paying agent of the
Debt Securities (other than the Trustee) shall, upon demand of the Company, be
repaid to the Company (to the extent such money shall have been deposited by
the Company) or paid to the Trustee, and thereupon such paying agent shall be
released from all further liability with respect to such moneys.
SECTION 12.05. RETURN OF UNCLAIMED MONEYS. Any moneys deposited with or paid
to the Trustee or a paying agent by the Company for payment of the principal
of, premium, if any, or interest, if any, on Debt Securities of any series and
not applied but remaining unclaimed by the Holders of Debt Securities of that
series for two years after the date upon which the principal of, premium, if
any, or interest, if any, on such Debt Securities, as the case may be, shall
have become due and payable, shall be repaid to the Company by the Trustee or
such paying agent on written demand and thereupon all liability of the Trustee
or such paying agent with respect to such money shall cease; and the Holder of
any such Debt Securities shall thereafter look only to the Company for any
payment which such Holder may be entitled to collect.
ARTICLE THIRTEEN
IMMUNITY OF INCORPORATORS, STOCKHOLDERS,
OFFICERS AND DIRECTORS
SECTION 13.01. INDENTURE AND DEBT SECURITIES SOLELY CORPORATE OBLIGATIONS. No
recourse for the payment of the principal of, premium, if any, or interest, if
any, on any Debt Security, or for any claim based thereon or otherwise in
respect thereof, and no recourse under or upon any obligation, covenant or
agreement of the Company in this Indenture or in any supplemental indenture, or
in any Debt Security, or because of the creation of any indebtedness
represented thereby, shall be had against any incorporator, stockholder,
officer or director, as such, past, present or future, of the Company or of any
successor corporation, either directly or through the Company or any successor
corporation, whether by virtue of any constitution, statute or rule of law, or
by the enforcement of any assessment or penalty or otherwise; it being
expressly understood that all such liability is hereby expressly waived and
released as a condition of, and as a consideration for, the execution of this
Indenture and the issue of the Debt Securities.
33
<PAGE>
ARTICLE FOURTEEN
MISCELLANEOUS PROVISIONS
SECTION 14.01. PROVISIONS BINDING ON COMPANY'S SUCCESSORS. All the covenants,
stipulations, promises and agreements by the Company in this Indenture
contained shall bind their respective successors and assigns whether so
expressed or not.
SECTION 14.02. OFFICIAL ACTS BY SUCCESSOR CORPORATION. Any act or proceeding
by any provision of this Indenture authorized or required to be done or
performed by any board, committee or officer of the Company shall and may be
done and performed with like force and effect by the like board, committee or
officer of any corporation that shall at the time be the lawful sole successor
of the Company.
SECTION 14.03. ADDRESSES FOR NOTICES. Any notice or demand which by any
provision of this Indenture is required or permitted to be given or served by
the Trustee or by the Holders of Debt Securities on the Company may be given or
served by being deposited postage prepaid by first class mail in a post office
letter box addressed (until another address is filed by the Company with the
Trustee) to, McDonald's Corporation, Attention: Treasurer, One McDonald's
Plaza, Oak Brook, IL 60521, with a copy to the Controller. Any notice,
direction, request or demand by any Holder of Debt Securities to or upon the
Trustee shall be deemed to have been sufficiently given or made, for all
purposes, if given or made in writing at the Principal Office of the Trustee.
SECTION 14.04. GOVERNING LAW. THIS INDENTURE AND EACH DEBT SECURITY SHALL BE
GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE INTERNAL LAWS OF
THE STATE OF ILLINOIS.
SECTION 14.05. LEGAL HOLIDAYS. In any case where the date of maturity of
interest, if any, on or principal of, or premium, if any, on the Debt
Securities or the date fixed for redemption or repayment of any Debt Security
will be in the City of New York, New York, a Saturday, a Sunday, a legal
holiday or a day on which banking institutions are authorized or required by
law or executive order to close or remain closed, then payment of such
interest, if any, on or principal of or premium, if any, on the Debt Securities
need not be made on such date but may be made on the next succeeding day not in
such city, a Saturday, a Sunday, a legal holiday or a day on which banking
institutions are authorized or required by law or executive order to close or
remain closed, with the same force and effect as if made on the date of
maturity or a date fixed for redemption or repayment, and no interest shall
accrue for the period from and after such date.
SECTION 14.06. TABLE OF CONTENTS AND HEADINGS. The table of contents and the
titles and headings of the articles and sections of this Indenture have been
inserted for convenience of reference only, are not to be considered a part
hereof, and shall in no way modify or restrict any of the terms or provisions
hereof.
SECTION 14.07. EXECUTION IN COUNTERPARTS. This Indenture may be executed in
any number of counterparts, each of which shall be an original, but such
counterparts shall together constitute but one and the same instrument.
SECTION 14.08. SEPARABILITY. In case any provision in this Indenture or in
the Debt Securities shall be invalid, illegal or unenforceable, the validity,
legality and enforceability of the remaining provisions shall not in any way be
affected or impaired thereby.
SECTION 14.09. BENEFITS. Nothing in this Indenture or in the Debt Securities,
expressed or implied, shall give to any person, other than the parties hereto
and their successors hereunder, and the Holders of the Debt Securities, any
benefit or any legal or equitable right, remedy or claim under this Indenture.
34
<PAGE>
In Witness Whereof, the parties hereto have caused this Indenture to be duly
executed and their respective corporate seals to be hereunto affixed and
attested, all as of , 1996.
MCDONALD'S CORPORATION
By __________________________________
Title:
[Corporate Seal]
Attest:
By __________________________________
Title:
FIRST UNION NATIONAL BANK
By __________________________________
Title:
[Corporate Seal]
Attest:
By __________________________________
Title:
35
<PAGE>
State of Illinois ^^ss:
County of DuPage ^^
On this day of , 1996, before me personally came , to
me personally known, who, being by me duly sworn, did depose and say that he is
of McDonald's Corporation, one of the corporations described in and
which executed the above instrument; that he knows the corporate seal of said
corporation; that the seal affixed to said instrument is such corporate seal;
that it was so affixed by authority of the Board of Directors of said
corporation, and that he signed his name thereto by like authority.
-------------------------------------
Notary Public
[NOTARIAL SEAL]
<PAGE>
Commonwealth of Pennsylvania ^^ ss:
County of ^^
On this day of , 1996, before me personally came , to me
personally known, who, being by me duly sworn, did depose and say that he is
of First Union National Bank, one of the entities described in and
which executed the above instrument; that he knows the corporate seal of said
national banking association; that the seal affixed to said instrument is such
corporate seal; that it was so affixed by authority of the Board of Directors
of said national banking association, and that he signed his name thereto by
like authority.
-------------------------------------
Notary Public
[NOTARIAL SEAL]
<PAGE>
EXHIBIT A
[FORM OF NOTE]
MCDONALD'S CORPORATION
[ADD APPLICABLE LEGENDS]
NOTE DUE
NO.............. [SPECIFY AMOUNT AND CURRENCY]
McDONALD'S CORPORATION, a corporation organized and existing under the laws
of the State of Delaware (hereinafter called the "Company", which term includes
any successor corporation under the Indenture hereinafter referred to), for
value received, hereby promises to pay to the Person in whose name this Note is
registered or registered assigns, the principal sum of [SPECIFY AMOUNT AND
CURRENCY] on and to pay interest thereon from or from the
most recent interest payment date to which interest has been paid or duly
provided for, [semi-annually] on [and ], in each year, [at
the rate of % per annum] or [a rate determined by (specify method)] until
the principal hereof is paid or such payment is duly provided for. The interest
so payable and punctually paid or duly provided for, on any interest payment
date will, as provided in said Indenture, be paid to the Person in whose name
this Note is registered at the close of business on the record date for such
interest, which shall be the day, whether or not a business day, of
the calendar month next preceding an interest payment date. Payment of the
principal of (and premium, if any, on) and interest on this Note will be made
at the designated office or agency of the Company maintained for such purpose
in , in [SPECIFY CURRENCY] 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 Debt Security register. Any interest not so punctually paid or
duly provided for shall be payable as provided in the Indenture.
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 in this place.
Unless the certificate of authentication hereon has been executed by the
Trustee referred to on the reverse hereof (or by an Authenticating Agent, as
provided in the Indenture) 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, McDonald's Corporation has caused this Instrument to be
signed in its corporate name by its Chairman of the Board or its President or
one of its Vice Presidents manually or in facsimile and a facsimile of its
corporate seal to be imprinted hereon and attested by the manual or facsimile
signature of its Secretary or one of its Assistant Secretaries.
Dated: McDonald's Corporation
By __________________________________
Attest:
- -------------------------------------
<PAGE>
CERTIFICATE OF AUTHENTICATION
This is one of the Debt Securities of the series designated therein provided
for in the within-mentioned Indenture.
By __________________________________
Authorized Representative
[FORM OF REVERSE OF NOTE]
This Note is one of a duly authorized issue of debentures, notes or other
evidences of indebtedness of the Company (herein called "Debt Securities") of a
series hereinafter specified, all issued and to be issued under an Indenture
dated as of , 1996 (herein called the "Indenture"), between the Company
and First Union National Bank, as Trustee (herein called the "Trustee", which
term includes any successor Trustee under the Indenture), to which Indenture
and all indentures supplemental thereto reference is hereby made for a
statement of the respective rights thereunder of the Company, the Trustee and
the Holders of the Debt Securities and the terms upon which the Debt Securities
are, and are to be, authenticated and delivered. The Debt Securities may be
issued in one or more series, which different series may be issued in various
currencies, various aggregate principal amounts, may mature at different times,
may bear interest (if any) at different rates, may be subject to different
sinking, purchase or analogous funds (if any), may be subject to different
covenants and Events of Default and may otherwise vary as in the Indenture
provided. This Note is one of a series of the Company designated as its
Notes due (herein called the "Notes"), limited in aggregate principal
amount to [SPECIFY AMOUNT AND CURRENCY.]
[The Notes may be redeemed, at the option of the Company, as a whole or from
time to time in part, on any date on or after and prior to maturity,
upon mailing a notice of such redemption not less than 30 nor more than 60 days
prior to the date fixed for redemption to the Holders of Notes to be redeemed,
as provided in the Indenture, at % of the principal amount together with
accrued interest to the date fixed for redemption.]
[In the event of redemption of this Note in part only, a new Note or Notes
for the unredeemed portion hereof will be issued in the name of the Holder
hereof upon the cancellation hereof.]
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 permitting the Company and the Trustee,
with the consent of the Holders of not less than 66 2/3% in aggregate principal
amount of each series of the Debt Securities at the time outstanding (as
defined in the Indenture) to be affected (each series voting as a class),
evidenced as in the Indenture provided, to execute supplemental indentures
adding any provisions to or changing in any manner or eliminating any of the
provisions of the Indenture or of any supplemental indenture or modifying in
any manner the rights of the Holders of the Debt Securities of all such series;
provided, however, that no such supplemental indenture shall, among other
things, (i) extend the fixed maturity of any Debt Security, or reduce the rate
or extend the time of payment of interest thereon, or reduce the principal
amount or premium if any, thereon, or make the principal thereof, or premium,
if any, or interest, if any, thereon payable in any coin or currency other than
that hereinabove provided, without the consent of the Holder of each Debt
Security so affected or reduce the amount of principal of an Original Issue
Discount Security that would be due and payable upon acceleration of maturity
thereof, or (ii) reduce the aforesaid percentage of Debt Securities the Holders
of which are required to consent to any such supplemental indenture, without
the consent of the Holders of each Debt Security so affected. The Indenture
also contains provisions permitting the Holders of a majority in aggregate
principal amount of the Notes at the time Outstanding, as defined in the
Indenture, on behalf of the Holders of all the Notes, to waive compliance by
the Company with certain
2
<PAGE>
provisions of the Indenture and certain past defaults under the Indenture and
their consequences. 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 therefor 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
therefor 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 time, place, and rate, and in the coin or currency, herein prescribed.
As provided in the Indenture and subject to certain limitations therein set
forth, this Note is transferable on the Debt Security register of the Company,
upon surrender of this Note for transfer at the office or agency as may be
designated or maintained by the Company for such purpose in , duly
endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Company and the Trustee, 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 denominations of [SPECIFY AMOUNT AND CURRENCY] and
any integral multiple 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
or premium, if any, 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, stockholder, officer or director, as such, past, present or
future, of the Company or of any successor corporation, whether by virtue of
any constitution, statute or rule of law, or by the enforcement of any
assessment or penalty or otherwise, all such liability being expressly waived
and released by the acceptance hereof and as part of the consideration for the
issue hereof.
All terms used in this Note which are defined in the Indenture shall have the
meanings assigned to them in the Indenture.
3
<PAGE>
EXHIBIT 4(B)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
MCDONALD'S CORPORATION
AND
FIRST UNION NATIONAL BANK
TRUSTEE
----------------
INDENTURE
----------------
DATED AS OF ________ ___ , 1996
SUBORDINATED DEBT SECURITIES
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<PAGE>
REFERENCE SHEET*
Reference is made to the following provisions of the Trust Indenture Act of
1939, as amended, which establish certain duties and responsibilities of the
Company and the Trustee which may not be set forth in this Indenture:
<TABLE>
<CAPTION>
SECTION SUBJECT
------- -------------------------------
<C> <S>
310(b) Disqualification of the Trustee
for conflicting interest
311 Preferential collection of
claims of the Trustee as
creditor of the Company
312(a) Periodic filing of information
by the Company with the
Trustee
312(b) Access of Holders to
information
313(a) Annual report of the Trustee to
Holders
313(b) Additional reports of the
Trustee to Holders
313(d) Filing of reports with stock
exchanges and Commission
314(a) Reports by the Company,
including annual compliance
certificate
314(c) Evidence of compliance with
conditions precedent
315(a) Duties of the Trustee prior to
default
</TABLE>
<TABLE>
<CAPTION>
SECTION SUBJECT
------- ------------------------------------------------------------------------
<C> <S>
315(b) Notice of default from the Trustee to Holders
315(c) Duties of the Trustee in case of default
315(d) Provisions relating to responsibility of the Trustee
315(e) Assessment of costs against litigating Holders in certain circumstances
316(a) Directions and waivers by Holders in certain circumstances
316(b) Prohibition of impairment of right of Holders to payment
316(c) Right of the Company to set record date for certain purposes
317(a) Special powers of the Trustee
317(b) Duties of paying agents
318(a) Provisions of Trust Indenture Act of 1939 to control in case of conflict
</TABLE>
- --------
* This reference sheet is not part of the Indenture.
<PAGE>
TABLE OF CONTENTS*
<TABLE>
<CAPTION>
SECTION PAGE
------- ----
ARTICLE ONE
DEFINITIONS
<C> <S> <C>
Section 1.01. Definitions............. 1
Authenticating Agent.... 1
Board of Directors...... 1
Company................. 1
Company Request......... 1
Debt Security........... 1
Designated Officers..... 2
Dollars................. 2
Event of Default........ 2
Holder.................. 2
Indenture............... 2
Interest................ 2
Officers' Certificate... 2
Opinion of Counsel...... 2
Original Issue Discount
Security................ 2
Outstanding............. 2
Person.................. 3
Place of Payment........ 3
Principal Office of the
Trustee................. 3
Responsible Officer..... 3
Senior Indebtedness..... 3
Subsidiary.............. 3
Trustee................. 3
Trust Indenture Act of
1939.................... 3
U.S. Government
Obligations............. 3
Yield to Maturity....... 4
ARTICLE TWO
DESCRIPTION, EXECUTION,
REGISTRATION AND EXCHANGE OF DEBT SECURITIES
Section 2.01. Forms................... 4
Section 2.02. Amount Unlimited;
Issuable in Series...... 5
Section 2.03. Authentication.......... 6
Section 2.04. Date and Denomination of
Debt Securities......... 7
Section 2.05. Execution of Debt
Securities.............. 7
Section 2.06. Exchange and
Registration of Transfer
of Debt Securities...... 7
Section 2.07. Mutilated, Destroyed,
Lost or Stolen Debt
Securities.............. 8
Section 2.08. Temporary Debt
Securities.............. 9
Section 2.09. Cancellation of Debt
Securities Paid ........ 9
Section 2.10. Computation of Interest. 9
</TABLE>
- --------
*This table of contents shall not, for any purpose, be deemed to be a part of
the Indenture.
<PAGE>
<TABLE>
<CAPTION>
SECTION PAGE
------- ----
ARTICLE THREE
REDEMPTION OF DEBT SECURITIES; SINKING FUNDS
<C> <S> <C>
Section 3.01. Applicability of Article................................. 10
Section 3.02. Notice of Redemption; Selection of Debt Securities....... 10
Section 3.03. Payment of Debt Securities Called for Redemption......... 10
Section 3.04. Satisfaction of Mandatory Sinking Fund Payments with Debt
Securities............................................... 11
Section 3.05. Redemption of Debt Securities for Sinking Fund........... 11
ARTICLE FOUR
PARTICULAR COVENANTS OF THE COMPANY
Section 4.01. Payment of Principal, Premium and Interest............... 13
Section 4.02. Offices for Notices and Payments ........................ 13
Section 4.03. Appointments to Fill Vacancies in Trustee's Office....... 13
Section 4.04. Provisions as to Paying Agent............................ 13
Section 4.05. Statement as to Compliance............................... 14
ARTICLE FIVE
HOLDER LISTS
AND REPORTS BY THE TRUSTEE
Section 5.01. Holder Lists............................................. 14
Section 5.02. Delivery of Reports by the Trustee....................... 14
ARTICLE SIX
REMEDIES OF THE TRUSTEE AND
HOLDERS ON EVENT OF DEFAULT
Section 6.01. Events of Default........................................ 15
Section 6.02. Payment of Debt Securities on Default; Suit Therefor..... 16
Section 6.03. Application of Moneys Collected by Trustee............... 18
Section 6.04. Proceedings by Holders of Debt Securities................ 18
Section 6.05. Proceedings by Trustee................................... 19
Section 6.06. Remedies Cumulative and Continuing....................... 19
Section 6.07. Direction of Proceedings and Waiver of Defaults by
Holders of Debt Securities............................... 19
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
SECTION PAGE
------- ----
ARTICLE SEVEN
CONCERNING THE TRUSTEE
<C> <S> <C>
Section 7.01. Reliance on Documents and Opinions........................ 20
Section 7.02. Responsibility for Recitals............................... 20
Section 7.03. Ownership of Debt Securities.............................. 20
Section 7.04. Moneys to be Held in Trust................................ 21
Section 7.05. Compensation and Expenses of Trustee...................... 21
Section 7.06. Officers' Certificate as Evidence......................... 21
Section 7.07. Eligibility of Trustee.................................... 21
Section 7.08. Resignation or Removal of Trustee......................... 21
Section 7.09. Acceptance by Successor Trustee........................... 22
Section 7.10. Succession by Merger...................................... 23
Section 7.11. Authenticating Agents..................................... 23
ARTICLE EIGHT
CONCERNING THE HOLDERS
Section 8.01. Action by Holders......................................... 24
Section 8.02. Proof of Execution by Holders............................. 24
Section 8.03. Who Are Deemed Absolute Owners............................ 25
Section 8.04. Company-Owned Debt Securities Disregarded................. 25
Section 8.05. Revocation of Consents; Future Holders Bound.............. 25
ARTICLE NINE
HOLDERS' MEETINGS
Section 9.01. Purposes of Meetings...................................... 25
Section 9.02. Call of Meetings by Trustee............................... 26
Section 9.03. Call of Meetings by the Company or Holders................ 26
Section 9.04. Qualifications for Voting................................. 26
Section 9.05. Regulations............................................... 26
Section 9.06. Voting.................................................... 27
Section 9.07. No Delay of Rights by Meeting............................. 27
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
SECTION PAGE
------- ----
ARTICLE TEN
SUPPLEMENTAL INDENTURES
<C> <S> <C>
Section 10.01. Supplemental Indentures without Consent of Holders....... 27
Section 10.02. Supplemental Indentures with Consent of Holders.......... 28
Section 10.03. Compliance with Trust Indenture Act; Effect of
Supplemental Indentures.................................. 29
Section 10.04. Notation on Debt Securities.............................. 29
Section 10.05. Evidence of Compliance of Supplemental Indenture to be
Furnished Trustee........................................ 29
ARTICLE ELEVEN
CONSOLIDATION, MERGER, SALE OR CONVEYANCE
Section 11.01. Company May Not Consolidate Except Under Certain
Conditions.............................................. 29
Section 11.02. Successor Corporation to be Substituted.................. 29
Section 11.03. Documents to be Given Trustee............................ 30
ARTICLE TWELVE
SATISFACTION AND DISCHARGE OF INDENTURE OR CERTAIN OBLIGATIONS
Section 12.01. Discharge of Indenture................................... 30
Section 12.02. Discharge of Obligations................................. 30
Section 12.03. Deposited Moneys to be Held in Trust by Trustee.......... 31
Section 12.04. Paying Agent to Repay Moneys Held........................ 31
Section 12.05. Return of Unclaimed Moneys............................... 31
ARTICLE THIRTEEN
IMMUNITY OF INCORPORATORS,
STOCKHOLDERS, OFFICERS AND DIRECTORS
Section 13.01. Indenture and Debt Securities Solely Corporate
Obligations............................................. 32
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
SECTION PAGE
------- ----
ARTICLE FOURTEEN
MISCELLANEOUS PROVISIONS
<C> <S> <C>
Section 14.01. Provisions Binding on Company's Successors............... 32
Section 14.02. Official Acts by Successor Corporation................... 32
Section 14.03. Addresses for Notices.................................... 32
Section 14.04. Governing Law............................................ 32
Section 14.05. Legal Holidays........................................... 32
Section 14.06. Table of Contents and Headings........................... 33
Section 14.07. Execution in Counterparts................................ 33
Section 14.08. Separability............................................. 33
Section 14.09. Benefits................................................. 33
ARTICLE FIFTEEN
SUBORDINATION
Section 15.01. Subordination in Right of Payment to All Senior
Indebtedness............................................ 33
Section 15.02. Trustee May Rely on Certificate of Liquidating Agent..... 34
Section 15.03. Company Obligation to Pay Unconditional.................. 34
Section 15.04. Notice to Trustee of Effectuation of Subordination....... 34
Section 15.05. Senior Indebtedness Held by Trustee...................... 35
EXHIBIT A Form of Subordinated Note
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This Indenture, dated as of , 1996 between McDonald's
Corporation, a corporation duly organized and existing under the laws of the
State of Delaware (the "Company"), and First Union National Bank, a national
banking association (the "Trustee").
WITNESSETH:
Whereas, the Company has duly authorized the execution and delivery of this
Indenture to provide for the issuance from time to time of its unsecured
subordinated bonds, debentures, notes and other evidences of indebtedness to be
issued in one or more series as in this Indenture provided;
Whereas, all acts and things necessary to make this Indenture, when duly
executed and delivered by the parties hereto, a valid agreement of the Company
according to its terms, have been done and performed, and the execution and
delivery by the Company of this Indenture have in all respects been duly
authorized;
Now, therefore:
In order to declare the terms and conditions upon which the Debt Securities
are authenticated, issued and received, and in consideration of the premises
and the purchase of the Debt Securities by the Holders thereof, it is mutually
covenanted and agreed, for the equal and proportionate benefit of all Holders
of the Debt Securities or of series thereof, as follows:
ARTICLE ONE
DEFINITIONS
SECTION 1.01. DEFINITIONS. The terms defined in this Section 1.01 (except as
herein otherwise expressly provided or unless the context otherwise requires)
for all purposes of this Indenture shall have the respective meanings specified
in this Section 1.01. All other terms used in this Indenture which are defined
in the Trust Indenture Act of 1939, as amended, or which are by reference
therein defined in the Securities Act of 1933, as amended (except as herein
otherwise expressly provided or unless the context otherwise requires), shall
have the meanings assigned to such terms in said Trust Indenture Act and in
said Securities Act as in force at the date of this Indenture as originally
executed. The words "herein", "hereof", and "hereunder" and other words of
similar import refer to this Indenture as a whole and not to any particular
Article, Section or other subdivision.
"Authenticating Agent" means any agent or agents of the Trustee which at the
time shall be appointed and acting pursuant to Section 7.11.
"Board of Directors" means the Board of Directors of the Company, or any duly
authorized committee of that Board including, without limitation, the Executive
Committee of the Board of Directors.
"Company" means McDonald's Corporation, a Delaware corporation, until any
successor corporation shall have become such pursuant to the provisions of
Article Eleven, and thereafter "Company" shall mean such successor, except as
otherwise provided in Article Eleven.
"Company Request" and "Company Order" mean, respectively, a written request
or order signed in the name of the Company by the Chairman of the Board, Vice
Chairman of the Board, President or any Vice President, and by its Chief
Financial Officer, Treasurer, an Assistant Treasurer, Controller, an Assistant
Controller, Secretary, or an Assistant Secretary, and delivered to the Trustee.
"Debt Security" or "Debt Securities" means any debt security or debt
securities of the Company, as the case may be, issued, authenticated and
delivered under this Indenture.
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"Designated Officers" means such officers of the Company as are authorized
pursuant to a resolution of the Board of Directors to issue Debt Securities, to
the extent authorized by such resolution and applicable law.
"Dollars" and "$" mean the lawful currency of the United States of America.
"Event of Default" has the meaning specified in Section 6.01.
"Holder", or other similar terms, means any person in whose name at the time
a particular Debt Security is registered on the books of the Company kept for
that purpose in accordance with the terms hereof.
"Indenture" means this instrument as originally executed or as it may be
amended or supplemented from time to time as herein provided, and shall include
the form and terms of particular series of Debt Securities established as
contemplated hereunder.
"interest" when used with respect to a non-interest bearing Debt Security,
means interest payable after the principal thereof has become due and payable
whether at maturity, by declaration of acceleration, by call for redemption,
pursuant to a sinking fund, or otherwise.
"Officers' Certificate" means a certificate signed by the Chairman of the
Board, the Vice Chairman of the Board, the President or any Vice President and
by the Chief Financial Officer, Controller, an Assistant Controller, Treasurer,
an Assistant Treasurer, the Secretary or an Assistant Secretary of the Company.
Each such certificate shall comply with Section 314(c) of the Trust Indenture
Act of 1939, to the extent applicable.
"Opinion of Counsel" means an opinion in writing signed by legal counsel, who
may be an employee of or of counsel to the Company or the Trustee, or may be
other counsel satisfactory to the Trustee. Each such opinion shall comply with
Section 314(c) of the Trust Indenture Act of 1939, to the extent applicable.
"Original Issue Discount Security" means any Debt Security which provides for
an amount less than the principal amount thereof to be due and payable upon a
declaration of acceleration of the maturity thereof pursuant to Section 6.01.
"Outstanding", when used with reference to Debt Securities, shall, except as
otherwise required by the Trust Indenture Act of 1939 and subject to the
provisions of Section 8.04, mean, as of any particular time, all Debt
Securities authenticated and delivered by the Trustee or any duly appointed
Authenticating Agent under this Indenture, except
(a) Debt Securities theretofore cancelled by the Trustee, Authenticating
Agent or paying agent or delivered to the Trustee for cancellation;
(b) Debt Securities, or portions thereof, for the payment or redemption
of which moneys in the necessary amount shall have been deposited in trust
with the Trustee or with any paying agent (other than the Company) or shall
have been set aside and segregated in trust by the Company for the Holders
of such Debt Securities (if the Company shall act as its own paying agent),
provided that if such Debt Securities are to be redeemed prior to the
maturity thereof, notice of such redemption shall have been mailed as in
Article Three provided, or provision satisfactory to the Trustee shall have
been made for mailing such notice; and
(c) Debt Securities in lieu of or in substitution for which other Debt
Securities shall have been authenticated and delivered, or which shall have
been paid, pursuant to the terms of Section 2.07, unless proof satisfactory
to the Company is presented that any such Debt Securities are held by
persons in whose hands any of such Debt Securities is a valid, binding and
legal obligation of the Company.
In determining whether the Holders of the requisite principal amount of
Outstanding Debt Securities have given any request, demand, authorization,
direction, notice, consent or waiver hereunder, the principal amount of an
Original Issue Discount Security that shall be deemed to be Outstanding for
such purposes shall be the amount of the principal thereof that would be due
and payable as of the date of such determination upon a declaration of
acceleration of the maturity thereof pursuant to Section 6.01.
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In determining whether the Holders of the requisite principal amount of all
series of Outstanding Debt Securities denominated in a currency other than U.S.
Dollars have given any request, demand, authorization, direction, notice,
consent or waiver hereunder, and for the purpose of Section 9.05 herein, the
principal amount of such Outstanding Debt Securities shall be deemed to be that
amount of U.S. Dollars that could be obtained for such principal amount on the
basis of the spot rate of exchange for purchasing U.S. Dollars with such
currency as of the date of determination.
"Person" means any individual, corporation, partnership, joint venture,
association, joint-stock company, trust, unincorporated organization or
government or any agency or political subdivision thereof.
"Place of Payment" means a city or any political subdivision thereof
designated as such pursuant to Sections 2.02 and 4.02.
"Principal Office of the Trustee", or other similar term, means the office of
the Trustee at which at any particular time its corporate trust business shall
be principally administered, which office at the date hereof is located at 123
South Broad Street, Philadelphia, Pennslyvania 19109, Attention: Corporate
Trust Administration.
"Responsible Officer" when used with respect to the Trustee means the
chairman or any vice chairman of the board of directors, the chairman or any
vice chairman of the executive committee of the board of directors, the
president, any executive vice president, any senior vice president, any vice
president, any assistant vice president, the cashier, any assistant cashier,
the secretary, any assistant secretary, the treasurer, any assistant treasurer,
any senior trust officer, any trust officer, any assistant trust officer, or
any other officer or assistant officer of the Trustee customarily performing
functions similar to those performed by the persons who at the time shall be
such officers, respectively, or to whom any corporate trust matter is referred
because of his knowledge of and familiarity with the particular subject.
"Senior Indebtedness" means all indebtedness for borrowed money of the
Company, whether outstanding on the date of this Indenture or incurred after
the date of this Indenture, which is not by its terms subordinate to other
indebtedness of the Company.
"Subsidiary" means any corporation or other Person of which the Company, or
the Company and one or more Subsidiaries, or any one or more Subsidiaries,
directly or indirectly owns voting securities or other similar equity interests
entitling the owners thereof to elect a majority of the directors or
individuals holding similar positions in other Persons, either at all times or
so long as there is no default or contingency which permits the owners of any
other class or classes of securities or other interests to vote for the
election of one or more directors or individuals holding similar positions in
other Persons, but shall not include any corporation or other Person with
respect to which the Company or any other Subsidiary has become entitled to
elect a majority of the directors or individuals holding similar positions in
other Persons solely due to a default or other contingency which is temporary
in character and has had a continuous existence of less than one year.
"Trustee" means First Union National Bank and, subject to the provisions of
Article Seven hereof, shall also include its successors and assigns as Trustee
hereunder. If pursuant to the provisions of this Indenture there shall be at
any time more than one Trustee hereunder, the term "Trustee" as used with
respect to Debt Securities of any series shall mean the Trustee with respect to
Debt Securities of that series.
"Trust Indenture Act of 1939" means the Trust Indenture Act of 1939, as
amended, as it was in force at the date of execution of this Indenture, except
as provided in Section 10.03.
"U.S. Government Obligations" shall mean securities that are (i) direct
obligations of the United States of America for the payment of which its full
faith and credit is pledged or (ii) obligations of a Person controlled or
supervised by and acting as an agency or instrumentality of the United States
of America the timely payment of which is unconditionally guaranteed as a full
faith and credit obligation by the United States of America, which, in either
case under clause (i) or (ii) are not callable or redeemable at the option of
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the issuer thereof, and shall also include a depository receipt issued by a
bank or trust company as custodian with respect to any such U.S. Government
Obligation or a specific payment of interest on or principal of any such U.S.
Government Obligation held by such custodian for the account of the holder of a
depository receipt, provided that (except as required by law) such custodian is
not authorized to make any deduction from the amount payable to the holder of
such depository receipt from any amount received by the custodian in respect of
the U.S. Government Obligation or the specific payment of interest on or
principal of the U.S. Government Obligation evidenced by such depository
receipt.
"Yield to Maturity" means the yield to maturity, calculated at the time of
issuance of Debt Securities or, if applicable, at the most recent
redetermination of interest on such series and calculated in accordance with
accepted financial practice.
ARTICLE TWO
DESCRIPTION, EXECUTION
REGISTRATION AND EXCHANGE OF DEBT SECURITIES
SECTION 2.01. FORMS. (a) The Debt Securities of each series shall be in
substantially the form of Exhibit A to this Indenture or in substantially such
other form as shall be established by or pursuant to a resolution of the Board
of Directors of the Company or in one or more indentures supplemental hereto,
in each case with such appropriate insertions, omissions, substitutions and
other variations as are required or permitted by this Indenture, and may have
such legends or endorsements placed thereon as the officers executing the same
may approve (execution thereof to be conclusive evidence of such approval) and
as are not inconsistent with the provisions of this Indenture, or as may be
required to comply with any law or with any rule or regulation made pursuant
thereto or with any rule or regulation of any stock exchange on which the Debt
Securities of such series may be listed, or to conform to usage.
The Trustee's Certificate of Authentication on all Debt Securities shall be
in substantially the following form:
TRUSTEE'S CERTIFICATE OF AUTHENTICATION
This is one of the Debt Securities of the series designated therein provided
for in the within-mentioned Indenture.
First Union National Bank,
as Trustee
By __________________________________
Authorized Representative
An Authenticating Agent's certificate of authentication on all Debt
Securities which may be authenticated by an Authenticating Agent shall be in
substantially the following form:
AUTHENTICATING AGENT'S CERTIFICATE OF AUTHENTICATION
This is one of the Debt Securities of the series designated therein provided
for in the within-mentioned Indenture.
[Name of Authenticating Agent],
as Authenticating Agent for the
Trustee
By __________________________________
Authorized Representative
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(b) The resolutions adopted by the Board of Directors, or the indenture
supplemental hereto, establishing the form and terms of the Debt Securities of
any series pursuant to Sections 2.01 and 2.02, respectively, of this Indenture,
may provide for issuance of the Debt Securities in global form. If Debt
Securities of a series are so authorized to be issued in global form, any such
global Debt Security may provide that it shall represent the aggregate amount
of Debt Securities from time to time endorsed thereon and may also provide that
the aggregate amount of outstanding Debt Securities represented thereby may
from time to time be reduced. Any endorsement of a Debt Security in global form
to reflect any decrease in the amount or changes in the rights of Holders of
Debt Securities represented thereby shall be made in such manner and by such
person or persons as shall be specified therein.
SECTION 2.02. AMOUNT UNLIMITED; ISSUABLE IN SERIES. The aggregate principal
amount of Debt Securities which may be authenticated and delivered under this
Indenture is unlimited.
The Debt Securities may be issued in one or more series. There shall be
established in or pursuant to a resolution or established in one or more
indentures supplemental hereto, prior to the issuance of Debt Securities of any
series,
(1) the title of the Debt Securities of the series (which shall
distinguish the Debt Securities of the series from all other Debt
Securities);
(2) any limit upon the aggregate principal amount of the Debt Securities
of the series which may be authenticated and delivered under this Indenture
(except for Debt Securities authenticated and delivered upon registration
of transfer of, or in exchange for, or in lieu of, other Debt Securities of
the series pursuant to Section 2.06, 2.07, 2.08, 3.03 or 10.04);
(3) the date or dates on which the principal and premium, if any, of the
Debt Securities of the series is payable;
(4) the rate or rates, or the method of determination thereof, at which
the Debt Securities of the series shall bear interest, if any, the date or
dates from which such interest shall accrue, the interest payment dates on
which such interest shall be payable and, if other than as set forth in
Section 2.04, the record dates for the determination of Holders to whom
interest is payable;
(5) if an Original Issue Discount Security, the Yield to Maturity;
(6) the place or places (the "Place of Payment") where the principal of,
and premium, if any, and any interest on Debt Securities of the series
shall be payable;
(7) the price or prices at which, the period or periods within which and
the terms and conditions upon which Debt Securities of the series may be
redeemed, in whole or in part, at the option of the Company, pursuant to
any sinking fund or otherwise;
(8) the obligation, if any, of the Company to redeem, purchase or repay
Debt Securities of the series pursuant to any sinking fund or analogous
provisions or at the option of a Holder thereof and the price or prices at
which and the period or periods within which and the terms and conditions
upon which Debt Securities of the series shall be redeemed, purchased or
repaid, in whole or in part, pursuant to such obligation;
(9) if other than denominations of $1,000 and any integral multiple
thereof, the denominations in which Debt Securities of the series shall be
issuable;
(10) if other than the principal amount thereof, the portion of the
principal amount of Debt Securities of the series which shall be payable
upon declaration of acceleration of the maturity thereof pursuant to
Section 6.01;
(11) the non-application of, addition to, or change in, any of the Events
of Default with respect to the Debt Securities, and the remedies with
respect thereto;
(12) in the case of any series of non-interest bearing Debt Securities,
the "stated intervals" for purposes of Section 312(a) of the Trust
Indenture Act of 1939;
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(13) the currency or currencies in which payments on the Debt Securities
are payable, which may include United States or any foreign currency and
any unit of two or more currencies; and
(14) any other terms of the series (which terms shall not be inconsistent
with the provisions of this Indenture).
All Debt Securities of any one series shall be substantially identical except
as to denomination and except as may otherwise be provided in or pursuant to
such resolution of the Board of Directors or in any such indenture supplemental
hereto.
SECTION 2.03. AUTHENTICATION. The Debt Securities of each series shall be
issuable in such form and in such denominations as shall be specified as
contemplated by Section 2.02. In the absence of any such specification with
respect to the Debt Securities of any series, the Debt Securities of such
series shall be issuable in denominations of $1,000 and any integral multiple
thereof.
At any time and from time to time after the execution and delivery of this
Indenture, the Company may deliver Debt Securities of any series executed by
the Company to the Trustee for authentication. Except as otherwise provided in
this Article Two, the Trustee shall thereupon authenticate, or cause the
Authenticating Agent to authenticate, and deliver said Debt Securities to or
upon Company Order. In authenticating, or causing to be authenticated, such
Debt Securities, and accepting the additional responsibilities under this
Indenture in relation to such Debt Securities, the Trustee and the
Authenticating Agent shall be entitled to receive and (subject to the
requirements of Section 315 of the Trust Indenture Act of 1939) shall be fully
protected in relying upon:
(1) a copy of any resolution or resolutions of the Board of Directors,
certified by the Secretary or an Assistant Secretary of the Company;
(2) an executed supplemental indenture, if any, relating thereto;
(3) an Officers' Certificate prepared in accordance with the requirements
of Section 314(c) of the Trust Indenture Act of 1939 and setting forth the
terms of the Debt Securities as required pursuant to Sections 2.01 and
2.02, respectively;
(4) an Opinion of Counsel for the Company prepared in accordance with the
requirements of Section 314(c) of the Trust Indenture Act of 1939 which
shall also state:
(a) that the form of such Debt Securities has been established by or
pursuant to a resolution of the Board of Directors or by a supplemental
indenture as permitted by Section 2.01 in conformity with the
provisions of this Indenture;
(b) that the terms of such Debt Securities have been established by
or pursuant to a resolution of the Board of Directors or by a
supplemental indenture as permitted by Section 2.02 in conformity with
the provisions of this Indenture;
(c) that such Debt Securities, when authenticated and delivered by
the Trustee or the Authenticating Agent and issued by the Company in
the manner and subject to any conditions specified in such Opinion of
Counsel, will constitute valid and binding obligations of the Company,
enforceable in accordance with their terms, subject to bankruptcy,
insolvency, reorganization and other laws of general applicability
relating to or affecting the enforcement of creditors' rights and to
general equity principles;
(d) that all applicable laws and requirements in respect of the
execution and delivery by the Company of the Debt Securities have been
complied with and that authentication and delivery of the Debt
Securities by the Trustee or the Authenticating Agent will not violate
the terms of the Indenture; and
(e) such other matters as the Trustee may reasonably request.
The Trustee shall have the right to decline to authenticate and deliver, or
to cause the Authenticating Agent to decline to authenticate and deliver, any
Debt Securities under this Section if the Trustee, being advised by counsel,
determines that such action may not lawfully be taken.
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SECTION 2.04. DATE AND DENOMINATION OF DEBT SECURITIES. The Debt Securities
of each series shall be issuable in registered form without coupons in such
denominations as shall be specified as contemplated by Section 2.02. In the
absence of any such specification with respect to the Debt Securities of any
series, the Debt Securities of such series shall be issuable in denominations
of $1,000 and any multiple of $1,000. Debt Securities of each series shall be
numbered, lettered or otherwise distinguished in such manner or in accordance
with such plan as the officers of the Company executing the same may determine
with the approval of the Trustee.
The person in whose name any Debt Security of a particular series is
registered at the close of business on any record date (as hereinafter defined)
with respect to any interest payment date for such series shall be entitled to
receive the interest payable on such interest payment date notwithstanding the
cancellation of such Debt Security upon any registration of transfer or
exchange subsequent to the record date and prior to such interest payment date;
provided, however, that if and to the extent that the Company shall default in
the payment of the interest due on such interest payment date, such defaulted
interest shall be paid to the persons in whose names Outstanding Debt
Securities of such series are registered on a subsequent record date
established by notice given by mail by or on behalf of the Company to the
Holders of such Debt Securities not less than 15 days preceding such subsequent
record date, such record date to be not less than five days preceding the date
of payment of such defaulted interest. Except as otherwise specified as
contemplated by Section 2.02 for Debt Securities of a particular series, the
term "record date" as used in this Section with respect to any regular interest
payment date, shall mean the last day of the calendar month preceding such
interest payment date if such interest payment date is the fifteenth day of the
calendar month, and shall mean the fifteenth day of the calendar month
preceding such interest payment date if such interest payment date is the first
day of a calendar month, whether or not such day shall be a day on which
banking institutions in The City of New York are authorized or required by law
or executive order to close or remain closed.
Interest on the Debt Securities may at the option of the Company be paid by
check mailed to the persons entitled thereto at their respective addresses as
such appear on the registry books of the Company or by wire transfer payable to
an account specified by such persons.
SECTION 2.05. EXECUTION OF DEBT SECURITIES. The Debt Securities shall be
signed in the name and on behalf of the Company by the manual or facsimile
signature of its Chairman of the Board, its Vice Chairman of the Board, or
President or a Vice President and by its Treasurer or its Secretary or an
Assistant Treasurer or Assistant Secretary, under its corporate seal (which may
be printed, engraved or otherwise reproduced thereon, by facsimile or
otherwise). Only such Debt Securities as shall bear thereon a certificate of
authentication substantially in the form herein recited, executed by the
Trustee or the Authenticating Agent, shall be entitled to the benefits of this
Indenture or be valid or obligatory for any purpose. Such certificate by the
Trustee or the Authenticating Agent upon any Debt Security executed by the
Company shall be conclusive evidence that the Debt Security so authenticated
has been duly authenticated and delivered hereunder and that the Holder is
entitled to the benefits of this Indenture.
In case any officer of the Company who shall have signed any of the Debt
Securities shall cease to be such officer before the Debt Securities so signed
shall have been authenticated and delivered by the Trustee or the
Authenticating Agent, or disposed of by the Company, such Debt Securities
nevertheless may be authenticated and delivered or disposed of as though the
person who signed such Debt Securities had not ceased to be such officer of the
Company; and any Debt Security may be signed on behalf of the Company by such
persons as, at the actual date of the execution of such Debt Security, shall be
the proper officers of the Company, although at the date of the execution of
this Indenture any such person was not such an officer.
SECTION 2.06. EXCHANGE AND REGISTRATION OF TRANSFER OF DEBT SECURITIES. Debt
Securities of any series may be exchanged for a like aggregate principal amount
and maturity of Debt Securities of the same series in other authorized
denominations. Debt Securities to be exchanged shall be surrendered, at the
option of the Holders thereof, at any of the offices or agencies as may be
designated and maintained by the Company for such purpose in accordance with
the provisions of Section 4.02, and the Company shall execute and register and
the Trustee shall authenticate and deliver in exchange therefor the Debt
Security or Debt Securities which
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the Holder making the exchange shall be entitled to receive. Each person
designated by the Company pursuant to the provisions of Section 4.02 as a
person authorized to register and register transfer of the securities is
sometimes herein referred to as a "Debt Security registrar".
The Company shall keep, at each such office or agency, a register for each
series of Debt Securities issued hereunder (the registers of all Debt Security
registrars being herein sometimes collectively referred to as the "Debt
Security register" or the "registry books of the Company") in which, subject to
such reasonable regulations as it may prescribe, the Company shall register
securities and shall register the transfer of Debt Securities as in this
Article Two provided. The Debt Security register shall be in written form or in
any other form capable of being converted into written form within a reasonable
time. At all reasonable times the Debt Security register shall be open for
inspection by the Trustee and any security registrar other than the Trustee.
Upon due presentment for registration of transfer of any Debt Security of any
series at any designated office or agency, the Company shall execute and
register and the Trustee shall authenticate and deliver in the name of the
transferee or transferees a new Debt Security or Debt Securities of the same
series for an equal aggregate principal amount. Registration or registration of
transfer of any Debt Security by any Debt Security registrar in the registry
books of the Company maintained by such Debt Security registrar, and delivery
of such Debt Security, duly authenticated, shall be deemed to complete the
registration or registration of transfer of such Debt Security.
The Company will at all times designate one person (who may be the Company
and who need not be a Debt Security registrar) to act as repository of a master
list of names and addresses of the Holders of the Debt Securities. The Company
shall act as such repository unless and until some other person is, by written
notice from the Company to the Trustee and each Debt Security registrar,
designated by the Company to act as such. The Company shall cause each Debt
Security registrar to furnish to such repository, on a current basis, such
information as to all registrations of transfer and exchanges effected by such
registrar, as may be necessary to enable such repository to maintain such
master list on as current a basis as is practicable.
No person shall at any time be designated as or act as a Debt Security
registrar unless such person is at such time empowered under applicable law to
act as such and duly registered to act as such under and to the extent required
by applicable law and regulations.
All Debt Securities presented for registration of transfer or for exchange,
redemption or payment shall (if so required by the Company or the Trustee) be
duly endorsed by, or be accompanied by a written instrument or instruments of
transfer or exchange in form satisfactory to the Company and the Trustee duly
executed by, the Holder or his attorney duly authorized in writing.
No service charge shall be made for any exchange or registration of transfer
of Debt Securities, but the Company may require payment of a sum sufficient to
cover any tax or other governmental charge that may be imposed in connection
therewith.
The Company shall not be required to exchange or register a transfer of (a)
any Debt Securities of any series for the period of 15 days next preceding the
selection of Debt Securities of that series to be redeemed and thereafter until
the day of the mailing of a notice of redemption of Debt Securities of that
series selected for redemption, or (b) any Debt Securities selected, called or
being called for redemption in whole or in part except, in the case of any Debt
Security to be redeemed in part, the portion thereof not so to be redeemed.
SECTION 2.07. MUTILATED, DESTROYED, LOST OR STOLEN DEBT SECURITIES. In case
any temporary or definitive Debt Security shall become mutilated or be
destroyed, lost or stolen, the Company in the case of a mutilated Debt Security
shall, and in the case of a lost, stolen or destroyed Debt Security may in its
discretion, execute and, upon the written request or authorization of any
officer of the Company, the Trustee or the Authenticating Agent shall
authenticate and deliver, a new Debt Security of the same series, bearing a
number not contemporaneously outstanding in exchange and substitution for the
mutilated Debt Security, or in lieu of and in substitution for the Debt
Security so destroyed, lost or stolen. In every case the applicant for a
substituted Debt Security shall furnish to the Company and the Trustee such
security or indemnity as may be required by them to save each of them harmless,
and, in every case of destruction, loss or theft, the applicant shall also
furnish to the Company and the Trustee evidence to their satisfaction of the
destruction, loss or theft of such Debt Security and of the ownership thereof.
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Upon the issuance of any substitute Debt Security, the Company may require
the payment of a sum sufficient to cover any tax or other governmental charge
that may be imposed in relation thereto and any other expenses connected
therewith. In case any Debt Security which has matured or is about to mature
shall become mutilated or be destroyed, lost or stolen, the Company may,
instead of issuing a substitute Debt Security, pay or authorize the payment of
such Debt Security (without surrender thereof except in the case of a mutilated
Debt Security) if the applicant for such payment shall furnish to the Company
and the Trustee such security or indemnity as may be required by them to save
each of them harmless and, in case of destruction, loss or theft, evidence
satisfactory to the Company and the Trustee of the destruction, loss or theft
of such Debt Security and the ownership thereof.
Every substitute Debt Security issued pursuant to the provisions of this
Section 2.07 by virtue of the fact that any Debt Security is destroyed, lost or
stolen shall constitute an additional contractual obligation of the Company as
herein provided, whether or not the destroyed, lost or stolen Debt Security
shall be found at any time, and shall be entitled to all the benefits of this
Indenture equally and proportionately with any and all other Debt Securities of
the same series duly issued hereunder. All Debt Securities shall be held and
owned upon the express condition that the foregoing provisions are exclusive
with respect to the replacement or payment of mutilated, destroyed, lost or
stolen Debt Securities and shall preclude (to the extent lawful) any and all
other rights or remedies with respect to the replacement or payment of
negotiable instruments or other securities without their surrender.
SECTION 2.08. TEMPORARY DEBT SECURITIES. Pending the preparation of
definitive Debt Securities of any series the Company may execute and the
Trustee or Authenticating Agent shall authenticate and deliver temporary Debt
Securities (printed, lithographed or typewritten). Temporary Debt Securities
shall be issuable in any authorized denomination and substantially in the form
of the definitive Debt Securities in lieu of which they are issued, but with
such omissions, insertions and variations as may be appropriate for temporary
Debt Securities, all as may be determined by the Company. Every such temporary
Debt Security shall be authenticated by the Trustee or the Authenticating Agent
upon the same conditions and in substantially the same manner, and with the
same effect, as the definitive Debt Securities in lieu of which they are
issued. Without unreasonable delay the Company will execute and deliver to the
Trustee definitive Debt Securities of such series and thereupon any or all
temporary Debt Securities of such series may be surrendered in exchange
therefor, at the option of the Holders thereof, at any offices or agencies as
may be designated and maintained by the Company for such purpose in accordance
with the provisions of Section 4.02, and the Trustee or the Authenticating
Agent shall authenticate and deliver in exchange for such temporary Debt
Securities an equal aggregate principal amount and maturity of definitive Debt
Securities of the same series. Such exchange shall be made by the Company at
its own expense and without any charge therefor. Until so exchanged, the
temporary Debt Securities of any series shall in all respects be entitled to
the same benefits under this Indenture as definitive Debt Securities of the
same series.
SECTION 2.09. CANCELLATION OF DEBT SECURITIES PAID. All Debt Securities
surrendered for the purpose of payment, redemption, repayment, exchange or
registration of transfer or for credit against any sinking fund shall, if
surrendered to the Company, any Debt Security registrar, any Authenticating
Agent, any paying agent or any other agent of the Company or of the Trustee, be
delivered to the Trustee and promptly cancelled by it, or, if surrendered to
the Trustee, shall be promptly cancelled by it, and no Debt Securities shall be
issued in lieu thereof except as expressly permitted by any of the provisions
of this Indenture. The Trustee may dispose of cancelled Debt Securities in
accordance with its standard procedures and deliver a certificate of such
disposition to the Company or, at the written request of the Company, shall
deliver cancelled Debt Securities to the Company. If the Company shall acquire
any of the Debt Securities, however, such acquisition shall not operate as a
redemption or satisfaction of the indebtedness represented by such Debt
Securities unless and until the same are delivered to the Trustee for
cancellation.
SECTION 2.10. COMPUTATION OF INTEREST. Except as otherwise specified as
contemplated by Section 2.02 for Debt Securities of any series, interest on the
Debt Securities of each series shall be computed on the basis of a 360-day year
of twelve 30-day months.
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ARTICLE THREE
REDEMPTION OF DEBT SECURITIES; SINKING FUNDS
SECTION 3.01. APPLICABILITY OF ARTICLE. The provisions of this Article Three
shall be applicable, as the case may be, (i) to the Debt Securities of any
series which are redeemable before their maturity and (ii) to any sinking fund
for the retirement of Debt Securities of any series, in either case except as
otherwise specified as contemplated by Section 2.02 for Debt Securities of such
series.
The minimum amount of any sinking fund payment provided for by the terms of
Debt Securities of any series is herein referred to as a "mandatory sinking
fund payment", and any payment in excess of such minimum amount provided for by
the terms of Debt Securities of any series is herein referred to as an
"optional sinking fund payment".
SECTION 3.02. NOTICE OF REDEMPTION; SELECTION OF DEBT SECURITIES. In case the
Company shall desire to exercise any right to redeem all, or, as the case may
be, any part of, the Debt Securities of any series in accordance with their
terms, it shall fix a date for redemption and shall mail or cause to be mailed
a notice of such redemption at least 30 and not more than 60 days prior to the
date fixed for redemption to the Holders of Debt Securities of such series so
to be redeemed as a whole or in part at their last addresses as the same appear
on the registry books of the Company and to the Trustee, except as the
resolution adopted by the Board of Directors or the provisions of an indenture
supplemental hereto to establish the terms of any series of Debt Securities may
otherwise provide. Such mailing shall be by first class mail. The notice if
mailed in the manner herein provided shall be conclusively presumed to have
been duly given, whether or not the Holder receives such notice. In any case,
failure to give such notice by mail or any defect in the notice to the Holder
of any Debt Security of a series designated for redemption as a whole or in
part shall not affect the validity of the proceedings for the redemption of any
other Debt Security of such series.
Each such notice of redemption shall specify the date fixed for redemption,
the redemption price at which the Debt Securities of such series are to be
redeemed, the place or places of payment, that payment will be made upon
presentation and surrender of such Debt Securities, that any interest accrued
to the date fixed for redemption will be paid as specified in said notice, and
that on and after said date any interest thereon or on the portions thereof to
be redeemed will cease to accrue. If less than all the Debt Securities of a
series are to be redeemed the notice of redemption shall specify the number or
numbers of the Debt Securities of that series to be redeemed. In case any Debt
Security of a series is to be redeemed in part only, the notice of redemption
shall state the portion of the principal amount thereof to be redeemed and
shall state that on and after the date fixed for redemption, upon surrender of
such Debt Security, a new Debt Security or Debt Securities of that series in
principal amount equal to the unredeemed portion thereof will be issued.
On or before the redemption date specified in the notice of redemption given
as provided in this Section 3.02, the Company will deposit with the Trustee or
with one or more paying agents (or if the Company is acting as its own paying
agent will segregate and hold in trust as provided in Section 4.04) an amount
of money sufficient to redeem on the redemption date all the Debt Securities or
portions thereof so called for redemption, together with accrued interest
thereon to the date fixed for redemption. If less than all the Debt Securities
of a series are to be redeemed the Company will give the Trustee notice not
less than 50 days prior to the redemption date as to the aggregate principal
amount and maturity of Debt Securities of such series to be redeemed. The
Trustee shall select in such manner as it shall deem appropriate and fair or
cause to be selected by lot, the Debt Securities of that series or portions
thereof to be redeemed and shall promptly notify the Company in writing of the
Debt Securities to be redeemed. Debt Securities of a series may be redeemed in
part only in multiples of the smallest authorized denomination of that series.
SECTION 3.03. PAYMENT OF DEBT SECURITIES CALLED FOR REDEMPTION. If notice of
redemption has been given as provided in Section 3.02 or Section 3.05, the Debt
Securities or portions of Debt Securities of the series with respect to which
such notice has been given shall become due and payable on the date and at the
place or places stated in such notice at the applicable redemption price,
together with any interest accrued to
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the date fixed for redemption, and on and after said date (unless the Company
shall default in the payment of such Debt Securities or portions of such Debt
Securities, together with any interest accrued to said date) any interest on
the Debt Securities of such series or portions of Debt Securities of such
series so called for redemption shall cease to accrue. On presentation and
surrender of such Debt Securities at a place of payment in said notice
specified, such Debt Securities or the specified portions thereof shall be paid
and redeemed by the Company at the applicable redemption price, together with
any interest accrued thereon to the date fixed for redemption; provided,
however, that any installment of interest becoming due on or prior to the date
fixed for redemption shall be payable to Holders of such Debt Securities
registered as such on the relevant record date according to their terms.
Upon presentation of any Debt Security redeemed in part only, the Company
shall execute a new Debt Security or Debt Securities and the Trustee or the
Authenticating Agent shall authenticate and deliver to the Holder thereof, at
the expense of the Company, such new Debt Security or Debt Securities of the
same series, of authorized denominations, in an aggregate principal amount
equal to the unredeemed portion of the Debt Security so presented.
SECTION 3.04. SATISFACTION OF MANDATORY SINKING FUND PAYMENTS WITH DEBT
SECURITIES. In lieu of making all or any part of any mandatory sinking fund
payment with respect to any Debt Securities of a series in cash, the Company
may at its option (a) deliver to the Trustee Debt Securities of that series
theretofore purchased or otherwise acquired by the Company, or (b) receive
credit for the principal amount of Debt Securities of that series which have
been redeemed either at the election of the Company pursuant to the terms of
such Debt Securities or through the application of permitted optional sinking
fund payments pursuant to the terms of such Debt Securities; provided that such
Debt Securities have not been previously so credited. Such Debt Securities
shall be received and credited for such purpose by the Trustee at the
redemption price specified in such Debt Securities for redemption through
operation of the sinking fund and the amount of such mandatory sinking fund
payment shall be reduced accordingly.
SECTION 3.05. REDEMPTION OF DEBT SECURITIES FOR SINKING FUND. Not less than
50 days prior to each sinking fund payment date for any series of Debt
Securities, the Company will deliver to the Trustee a certificate signed by a
Vice President or the Treasurer or any Assistant Treasurer of the Company
specifying the amount of the next ensuing sinking fund payment for that series
pursuant to the terms of that series, the portion thereof, if any, which is to
be satisfied by payment of cash (which cash may be deposited with the Trustee
or with one or more paying agents, or if the Company is acting as its own
paying agent segregated and held in trust as provided in Section 4.04) and the
portion thereof, if any, which is to be satisfied by delivering and crediting
Debt Securities of that series pursuant to Section 3.04 (which Debt Securities,
if not theretofore delivered, will accompany such certificate, such certificate
to set forth the basis for such credit and to state that such Debt Securities
have not been previously so credited) and whether the Company intends to
exercise its right to make a permitted optional sinking fund payment with
respect to such series. Such certificate shall also state that no Event of
Default has occurred and is continuing with respect to such series. Such
certificate shall be irrevocable and upon its delivery the Company shall be
obligated to make the cash payment or payments therein referred to, if any, on
or before the next succeeding sinking fund payment date. In the case of the
failure of the Company to deliver such certificate (or to deliver the Debt
Securities specified in this paragraph), the sinking fund payment due on the
next succeeding sinking fund payment date for that series shall be paid
entirely in cash and shall be sufficient to redeem the principal amount of such
Debt Securities subject to a mandatory sinking fund payment without the option
to deliver or credit Debt Securities as provided in Section 3.04 and without
the right to make any optional sinking fund payment, if any, with respect to
such series.
Any sinking fund payment or payments (mandatory or optional) made in cash
plus any unused balance of any preceding sinking fund payments made in cash
which shall equal or exceed $100,000 (or a lesser sum if the Company shall so
request or determine) with respect to the Debt Securities of any particular
series shall be applied by the Trustee (or by the Company if the Company is
acting as its own paying agent) on the sinking fund payment date on which such
payment is made (or, if such payment is made before a sinking
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fund payment date, on the next sinking fund payment date following the date of
such payment) to the redemption of such Debt Securities at the redemption price
specified in such Debt Securities for operation of the sinking fund together
with accrued interest, if any, to the date fixed for redemption. Any sinking
fund moneys not so applied or allocated by the Trustee (or by the Company if
the Company is acting as its own paying agent) to the redemption of Debt
Securities shall be added to the next cash sinking fund payment received by the
Trustee (or if the Company is acting as its own paying agent, segregated and
held in trust as provided in Section 4.04) for such series and, together with
such payment (or such amount so segregated), shall be applied in accordance
with the provisions of this Section 3.05. Any and all sinking fund moneys with
respect to the Debt Securities of any particular series held by the Trustee (or
if the Company is acting as its own paying agent, segregated and held in trust
as provided in Section 4.04) on the last sinking fund payment date with respect
to Debt Securities of such series and not held for the payment or redemption of
particular Debt Securities of such series shall be applied by the Trustee (or
by the Company if the Company is acting as its own paying agent), together with
other moneys, if necessary, to be deposited (or segregated) sufficient for the
purpose, to the payment of the principal of the Debt Securities of that series
at maturity.
The Trustee shall select or cause to be selected the Debt Securities to be
redeemed upon such sinking fund payment date in the manner specified in the
last paragraph of Section 3.02 and the Company shall cause notice of the
redemption thereof to be given in the manner provided in Section 3.02 except
that the notice of redemption shall also state that the Debt Securities are
being redeemed by operation of the sinking fund. Such notice having been duly
given, the redemption of such Debt Securities shall be made upon the terms and
in the manner stated in Section 3.03.
On or before each sinking fund payment date, the Company shall pay to the
Trustee in cash (or if the Company is acting as its own paying agent will
segregate and hold in trust as provided in Section 4.04) a sum equal to any
interest accrued to the date fixed for redemption of Debt Securities or
portions thereof to be redeemed on such sinking fund payment date pursuant to
this Section.
Neither the Trustee nor the Company shall redeem any Debt Securities of a
series with sinking fund moneys or mail any notice of redemption of such Debt
Securities by operation of the sinking fund for such series during the
continuance of a default in payment of interest, if any, on such Debt
Securities or of any Event of Default (other than an Event of Default occurring
as a consequence of this paragraph) with respect to such Debt Securities,
except that if the notice of redemption of any such Debt Securities shall
theretofore have been mailed in accordance with the provisions hereof, the
Trustee (or the Company if the Company is acting as its own paying agent) shall
redeem such Debt Securities if cash sufficient for that purpose shall be
deposited with the Trustee (or segregated by the Company) for that purpose in
accordance with the terms of this Article. Except as aforesaid, any moneys in
the sinking fund for such series at the time when any such default or Event of
Default shall occur and any moneys thereafter paid into such sinking fund
shall, during the continuance of such default or Event of Default, be held as
security for the payment of such Debt Securities; provided, however, that in
case such default or Event of Default shall have been cured or waived as
provided herein, such moneys shall thereafter be applied on the next sinking
fund payment date for such Debt Securities on which such moneys may be applied
pursuant to the provisions of this Section.
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ARTICLE FOUR
PARTICULAR COVENANTS OF THE COMPANY
SECTION 4.01. PAYMENT OF PRINCIPAL, PREMIUM AND INTEREST. The Company
covenants and agrees for the benefit of each series of Debt Securities that it
will duly and punctually pay or cause to be paid the principal of, premium, if
any, and interest, if any, on each of the Debt Securities of that series at the
places, at the respective times and in the manner provided in such Debt
Securities.
SECTION 4.02. OFFICES FOR NOTICES AND PAYMENTS. As long as any of the Debt
Securities of a series remain outstanding, the Company will designate and
maintain, an office or agency in such Place of Payment where the Debt
Securities of that series may be presented for payment, an office or agency
where the Debt Securities of that series may be presented for registration of
transfer and for exchange as in this Indenture provided and an office or agency
where notices and demands to or upon the Company in respect of the Debt
Securities of that series or this Indenture may be served. In addition to such
office or offices or agency or agencies, the Company may from time to time
designate and maintain one or more additional offices or agencies, where the
Debt Securities of that series may be presented for registration of transfer or
for exchange, and the Company may from time to time rescind such designation,
as it may deem desirable or expedient. The Company will give to the Trustee
written notice of the location of each such office or agency and of any change
of location thereof. In case the Company shall fail to maintain such office or
agency, or shall fail to give such notice of the location or of any change in
the location thereof, presentations and demands may be made and notices may be
served at the Principal Office of the Trustee.
The Company hereby initially designates the offices of the Trustee located at
Corporate Trust Operations NC 1153, Main Building 11th Floor, 230 South Tryon
Street, Charlotte, North Carolina 28288 and 40 Broad Street, 5th Floor - Suite
550, New York, New York 10004, as the offices or agencies of the Company, where
the Debt Securities of each series may be presented for payment, for
registration of transfer and for exchange as in this Indenture provided and
where notices and demands to or upon the Company in respect of the Debt
Securities of each series or this Indenture may be served. The Trustee is also
designated as repository pursuant to Section 2.06 for the master list of the
names and addresses of the Holders of the Debt Securities of each series.
SECTION 4.03. APPOINTMENTS TO FILL VACANCIES IN TRUSTEE'S OFFICE. The
Company, whenever necessary to avoid or fill a vacancy in the office of
Trustee, will appoint, in the manner provided in Section 7.08, a successor
trustee, so that there shall at all times be a Trustee with respect to each
series of Debt Securities hereunder.
SECTION 4.04. PROVISIONS AS TO PAYING AGENT. (a) If the Company shall appoint
a paying agent other than the Trustee with respect to the Debt Securities of
any series, it will cause such paying agent to execute and deliver to the
Trustee an instrument in which such agent shall agree with the Trustee, subject
to the provisions of this Section 4.04,
(1) that it will hold all sums held by it as such agent for the payment
of the principal of, premium, if any, or interest, if any, on the Debt
Securities of such series (whether such sums have been paid to it by the
Company or by any other obligor on the Debt Securities of such series) in
trust for the benefit of the Holders of the Debt Securities of such series
or of the Trustee, as the case may be, until such sums shall be paid to the
Holders or to the Trustee, and will notify the Trustee of the receipt of
sums to be so held;
(2) that it will give the Trustee notice of any failure by the Company
(or by any other obligor on the Debt Securities of such series) to make any
payment of the principal of, premium, if any, or interest, if any, on the
Debt Securities of such series when the same shall be due and payable; and
(3) that at any time during the continuance of any failure by the Company
(or by any other obligor on the Debt Securities of such series) specified
in the preceding paragraph (2), such paying agent will, upon the written
request of the Trustee, forthwith pay to the Trustee all sums so held in
trust by it.
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(b) If the Company shall act as its own paying agent with respect to the Debt
Securities of any series, it will, on or before each due date of the principal
of, premium, if any, or interest, if any, on the Debt Securities of such
series, set aside, segregate and hold in trust for the benefit of the Holders
of such Debt Securities a sum sufficient to pay such principal, premium, if
any, or interest, if any, so becoming due and will promptly notify the Trustee
of any failure to take such action and of any failure by the Company (or by any
other obligor on the Debt Securities of such series) to make any payment of the
principal of, premium, if any, or interest, if any, on the Debt Securities of
such series when the same shall become due and payable.
(c) Anything in this Section 4.04 to the contrary notwithstanding the Company
may, at any time, for the purpose of obtaining the satisfaction and discharge
of this Indenture, or for any other reason, pay or cause to be paid to the
Trustee all sums held in trust by it, or any paying agent hereunder, as
required by this Section, such sums to be held by the Trustee upon the trusts
herein contained.
(d) Anything in this Section 4.04 to the contrary notwithstanding, the
agreement to hold sums in trust as provided in this Section 4.04 is subject to
Sections 12.03 and 12.04.
(e) Whenever the Company shall have one or more paying agents with respect to
the Debt Securities of any series, it will, prior to each due date of the
principal of, premium, if any, or interest, if any, on the Debt Securities of
such series, deposit with a designated paying agent a sum sufficient to pay the
principal, premium, if any, and interest, if any, so becoming due, such sum to
be held in trust for the benefit of the persons entitled to such principal,
premium, if any, or interest, if any, and (unless such paying agent is the
Trustee) the Company will promptly notify the Trustee of any failure so to act.
SECTION 4.05. STATEMENT AS TO COMPLIANCE. The Company will deliver to the
Trustee on or before January 1 in each year (beginning with the first January 1
which is not less than 60 days following the first date of issuance of any
series of Debt Securities under this Indenture) a certificate complying with
Section 314(a)(4) of the Trust Indenture Act of 1939.
ARTICLE FIVE
HOLDER LISTS AND REPORTS BY THE TRUSTEE
SECTION 5.01. HOLDER LISTS. The Company covenants and agrees that it will
furnish or cause to be furnished to the Trustee with respect to the Debt
Securities of each series, (i) semiannually, not more than 15 days after each
July 1 and January 1 and (ii) at such other times as the Trustee may request in
writing, within 30 days after receipt by the Company of any such request, a
list in such form as the Trustee may reasonably require of the names and
addresses of the Holders of Debt Securities of such series as of a date not
more than 15 days prior to the time such information is furnished; provided,
however, that if and so long as the Trustee shall be designated by the Company
to act as repository in accordance with the provisions of Section 2.06, such
list shall not be required to be furnished.
SECTION 5.02. DELIVERY OF REPORTS BY THE TRUSTEE. The reports to be
transmitted by the Trustee pursuant to the requirements of Section 313 of the
Trust Indenture Act of 1939 shall be required to be transmitted on or before
the first July 15 which is not less than sixty days following the first date of
issuance of any series of Debt Securities under this Indenture, and on or
before July 15 in every year thereafter, so long as any Debt Securities are
outstanding hereunder, each such report to be dated as of the preceding May 15.
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ARTICLE SIX
REMEDIES OF THE TRUSTEE AND HOLDERS ON EVENT OF DEFAULT
SECTION 6.01. EVENTS OF DEFAULT. "Event of Default" whenever used herein with
respect to Debt Securities of any series means any one of the following events
and such other events as may be established with respect to the Debt Securities
of such series as contemplated by Section 2.02 hereof, continued for the period
of time, if any, and after the giving of notice, if any, designated in this
Indenture or as may be established with respect to such Debt Securities as
contemplated by Section 2.02 hereof, as the case may be, unless it is either
inapplicable or is specifically deleted or modified in the applicable
resolution of the Board of Directors or in the supplemental indenture under
which such series of Debt Securities is issued, as the case may be, as
contemplated by Section 2.02:
(a) default in the payment of any installment of interest upon any Debt
Security of such series as and when the same shall become due and payable,
and continuance of such default for a period of 30 days; or
(b) default in the payment of the principal of, or premium, if any, on
any Debt Security of such series as and when the same shall become due and
payable whether at maturity, upon redemption, by declaration, repayment or
otherwise, and continuance of such default for a period of 10 days; or
(c) default in the making or satisfaction of any sinking fund payment as
and when the same shall become due and payable by the terms of the Debt
Securities of such series, and continuance of such default for a period of
10 days; or
(d) failure on the part of the Company, duly to observe or perform any
other of the covenants or agreements on the part of the Company in respect
of the Debt Securities of such series contained in this Indenture (other
than a covenant or agreement in respect of the Debt Securities of such
series in default in whose observance or performance is elsewhere in this
Section specifically dealt with) continued for a period of 60 days after
the date on which written notice of such failure, requiring the Company to
remedy the same, shall have been given by registered mail to the Company by
the Trustee, or to the Company and the Trustee by the Holders of at least
twenty-five percent in aggregate principal amount of the Debt Securities of
all series at the time Outstanding; provided that such a default or breach
shall not be an Event of Default if it cannot with due diligence be cured
within such 60-day period due to causes beyond the control of the Company,
unless the Company shall fail to proceed promptly to cure the same and
thereafter prosecute the curing of such default or breach with diligence
and continuity. (In the event that such default or breach cannot be cured
within such 60-day period, before the expiration of such 60-day period the
Company shall furnish an Officers' Certificate, upon which the Trustee may
conclusively rely notwithstanding such default or breach, to the effect
that such default or breach cannot with due diligence be cured within such
60-day period due to causes beyond the control of the Company and that the
Company has not failed to proceed promptly to cure the same. Thereafter,
from time to time at the request of the Trustee, the Company shall furnish
an Officers' Certificate to the effect that the Company is prosecuting the
curing of such default or breach with diligence and continuity.); or
(e) a decree or order by a court having jurisdiction in the premises
shall have been entered adjudging the Company a bankrupt or insolvent, or
approving as properly filed a petition seeking reorganization of the
Company, under the Federal Bankruptcy Code or any other similar applicable
Federal or State law, and such decree or order shall have continued
undischarged and unstayed for a period of 60 days; or a decree or order of
a court having jurisdiction in the premises for the appointment of a
receiver or liquidator or trustee or assignee (or other similar official)
in bankruptcy or insolvency of the Company, or of all or substantially all
of the property of the Company, or for winding up or liquidation of the
affairs of the Company shall have been entered, and such decree or order
shall have continued undischarged and unstayed for a period of 60 days; or
(f) the Company shall institute proceedings to be adjudicated a voluntary
bankrupt, or shall consent to the filing of a bankruptcy proceeding against
it, or shall file a petition or answer or consent seeking reorganization
under the Federal Bankruptcy Code or any other similar applicable Federal
or State law,
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or shall consent to the filing of any such petition, or shall consent to
the appointment of a receiver or liquidator or trustee or assignee (or
other similar official), in bankruptcy or insolvency of it or of its
property, or shall make an assignment for the benefit of creditors, or
shall admit in writing its inability to pay its debts generally as they
become due; or
(g) any other Event of Default provided in the applicable resolution of
the Board of Directors or in the supplemental indenture under which such
series of Debt Securities is issued, as the case may be, as contemplated by
Section 2.02.
If an Event of Default with respect to Debt Securities of any series at the
time Outstanding occurs and is continuing, then and in each and every such
case, unless the principal of all of the Debt Securities of such series shall
have already become due and payable, either the Trustee or the Holders of not
less than twenty-five percent in aggregate principal amount of the Outstanding
Debt Securities of such series or, in the case of an Event of Default specified
in clause (d), (e) or (f) of this Section 6.01, of all series (voting as a
class) with respect to which such Event of Default has occurred and is
continuing, by notice in writing to the Company (and to the Trustee if given by
Holders), may declare the principal amount (or, if the Debt Securities of such
series are Original Issue Discount Securities, such portion of the principal
amount as may be specified in the terms of such series) of all the Debt
Securities of that series (or, in the case of an Event of Default specified in
clauses (d), (e) or (f) of this Section 6.01, of all of the Debt Securities of
all series with respect to which such Event of Default has occurred and is
continuing) and the interest accrued thereon, if any, to be due and payable
immediately, and upon any such declaration the same shall become and shall be
immediately due and payable, anything in this Indenture or in the Debt
Securities of such series contained to the contrary notwithstanding. This
provision, however, is subject to the condition that if, at any time after the
principal amount (or, if the Debt Securities of such series are Original Issue
Discount Securities, such portion of the principal amount as may be specified
in the terms of such series) of the Debt Securities of any series shall have
been so declared due and payable, and before any judgment or decree for the
payment of the moneys due shall have been obtained or entered as hereinafter
provided, the Company shall pay or shall deposit with the Trustee a sum
sufficient to pay all matured installments of interest, if any, upon all of the
Debt Securities of such series and the principal of, and premium, if any, on
any and all Debt Securities of such series which shall have become due
otherwise than by acceleration (with interest on overdue installments of
interest (to the extent that payment of such interest is enforceable under
applicable law) and on such principal at the same rate as the rate of interest
specified in the Debt Securities of such series, to the date of such payment or
deposit) and all amounts payable to the Trustee pursuant to the provisions of
Section 7.05 and any and all defaults under this Indenture with respect to such
series of Debt Securities, other than the nonpayment of principal of and
accrued interest on Debt Securities of such series which shall have become due
solely by acceleration, shall have been remedied or cured or waived or
provision shall have been made therefor to the satisfaction of the Trustee,
then and in every such case the Holders of a majority in aggregate principal
amount of the Debt Securities of such series then Outstanding, by written
notice to the Company and to the Trustee, may waive all defaults with respect
to such series and rescind and annul such declaration and its consequences; but
no such waiver or recission or annulment shall extend to or shall affect any
subsequent default or shall impair any right consequent thereon.
In case the Trustee shall have proceeded to enforce any right under this
Indenture and such proceedings shall have been discontinued or abandoned
because of such waiver or rescission or annulment or for any other reason or
shall have been determined adversely to the Trustee, then and in every such
case the Company and the Trustee shall be restored respectively to their former
positions and rights hereunder, and all rights, remedies and powers of the
Company and the Trustee and the Holders shall continue as though no such
proceedings had been taken.
SECTION 6.02. PAYMENT OF DEBT SECURITIES ON DEFAULT; SUIT THEREFOR. The
Company covenants that (a) in case default shall be made in the payment of any
installment of interest upon any Debt Security of any series as and when the
same shall become due and payable, and such default shall have continued for a
period of 30 days, or (b) in case default shall be made in payment of the
principal of, or premium, if any, on any Debt Security of any series as and
when the same shall become due and payable, whether at maturity of the Debt
Securities of that series or upon redemption or by declaration, repayment or
otherwise, and such default
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shall have continued for a period of ten days or (c) in case of default in the
making or satisfaction of any sinking fund payment when the same becomes due by
the terms of the Debt Securities of any series, and such default shall have
continued for a period of ten days--then, upon demand of the Trustee, the
Company will pay to the Trustee, for the benefit of the Holder of any such Debt
Security (or Holders of any series of Debt Securities in the case of clause (c)
above) the whole amount that then shall have become due and payable on any such
Debt Security (or securities of any such series in the case of clause (c)
above) for principal, premium, if any, and interest, if any, with interest upon
the overdue principal and premium, if any, and (to the extent that payment of
such interest is enforceable under applicable law) upon the overdue
installments of interest, if any, at the same rate as the rate of interest or
Yield to Maturity (in the case of Original Issue Discount Securities) specified
in the Debt Security of that series (or Debt Securities of any such series in
the case of clause (c) above); and, in addition thereto, such further amount as
shall be sufficient to cover costs and expenses of collection, and any further
amounts payable to the Trustee pursuant to the provisions of Section 7.05.
In case the Company shall fail forthwith to pay such amounts upon such
demand, the Trustee, in its own name and as trustee of an express trust, shall
be entitled and empowered to institute any actions or proceedings at law or in
equity for the collection of the sums so due and unpaid, and may prosecute any
such action or proceedings to judgment or final decree, and may enforce any
such judgment or final decree against the Company, or any other obligor upon
such Debt Securities, and collect in the manner provided by law out of the
property of the Company or any other obligor on such Debt Securities, wherever
situated the moneys adjudged or decreed to be payable.
In case there shall be pending proceedings for the bankruptcy or for the
reorganization of the Company or any other obligor on the Debt Securities of
any series, under the Federal Bankruptcy Code or any other similar applicable
Federal or State law, or in case a receiver or trustee (or other similar
official) shall have been appointed for the property of the Company, or such
other obligor upon such Debt Securities, or in the case of any other similar
judicial proceedings relative to the Company, or other obligor on the Debt
Securities of any series, or to the creditors or property of the Company or
such other obligor upon such Debt Securities, the Trustee, irrespective of
whether the principal of the Debt Securities of any series shall then be due
and payable as therein expressed or by declaration or otherwise and
irrespective of whether the Trustee shall have made any demand pursuant to the
provisions of this Section 6.02, shall be entitled and empowered, by
intervention in such proceedings or otherwise, to file and prove a claim or
claims for the whole amount of principal (or, if the Debt Securities of any
series are Original Issue Discount Securities, such portion of the principal
amount as may be due and payable with respect to such series pursuant to a
declaration in accordance with Section 6.01), premium, if any, and interest, if
any, owing and unpaid in respect of the Debt Securities of any series and, in
case of any judicial proceedings, to file such proofs of claim and other papers
or documents as may be necessary or advisable in order to have the claims of
the Trustee and of the Holders of Debt Securities of any series allowed in such
judicial proceedings relative to the Company, or any other obligor on the Debt
Securities of any series, its or their creditors, or its or their property, and
to collect and receive any moneys or other property payable or deliverable on
any such claims, and to distribute the same after the deduction of costs and
expenses of collection, and any further amounts payable to the Trustee pursuant
to the provisions of Section 7.05 and incurred by it up to the date of such
distribution; and any receiver, assignee or trustee (or other similar official)
in bankruptcy or reorganization is hereby authorized by each of the Holders to
make such payments to the Trustee, and, in the event that the Trustee shall
consent to the making of such payments directly to the Holders, to pay to the
Trustee costs and expenses of collection and any further amounts payable to the
Trustee pursuant to the provisions of Section 7.05 and incurred by it up to the
date of such distribution.
Nothing herein contained shall be deemed to authorize the Trustee to
authorize or consent to or accept or adopt on behalf of any Holder of Debt
Securities any plan of reorganization, arrangement, adjustment or composition
affecting any of the Debt Securities of any series or the rights of any Holder
thereof, or to authorize the Trustee to vote in respect to the claim of any
Holder of Debt Securities in any such proceeding.
All rights of action and of asserting claims under this Indenture, or under
the Debt Securities of any series, may be enforced by the Trustee without the
possession of any of the Debt Securities of such series or
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the production thereof in any trial or other proceeding relative thereto, and
any such suit or proceeding instituted by the Trustee shall be brought in its
own name as trustee of an express trust, and any recovery of judgment shall be
for the ratable benefit of the Holders of the Debt Securities in respect of
which such action was taken. In any proceedings brought by the Trustee (and
also any proceedings in which a declaratory judgment of a court may be sought
as to the interpretation or construction of any provision of this Indenture, to
which the Trustee shall be a party) the Trustee shall be held to represent all
the Holders of the Debt Securities to which such proceedings relate, and it
shall not be necessary to make any Holders of such Debt Securities parties to
any such proceedings.
SECTION 6.03. APPLICATION OF MONEYS COLLECTED BY TRUSTEE. Any moneys
collected by the Trustee pursuant to this Article shall be applied in the order
following, at the date or dates fixed by the Trustee for the distribution of
such moneys, upon presentation of the several Debt Securities in respect of
which moneys have been collected, and the notation thereon of the payment, if
only partially paid, and upon surrender thereof if fully paid:
First: To the payment of all amounts due the Trustee pursuant to the
provisions of Section 7.05;
Second: In case the principal of the Outstanding Debt Securities in
respect of which such moneys have been collected shall not have become due
(at maturity, upon redemption, by declaration, repayment or otherwise) and
be unpaid, to the payment of interest, if any, on such Debt Securities, in
the order of the maturity of the installments of such interest, with
interest (to the extent that such interest has been collected by the
Trustee) upon the overdue installments of interest at the same rate as the
rate of interest or Yield to Maturity (in the case of Original Issue
Discount Securities) specified in such Debt Securities, such payments to be
made ratably to the persons entitled thereto;
Third: In case the principal of the Outstanding Debt Securities in
respect of which such moneys have been collected shall have become due (at
maturity, upon redemption, by declaration, repayment or otherwise), to the
payment of the whole amount then owing and unpaid upon such Debt Securities
for principal, premium, if any, and interest, if any, with interest on the
overdue principal, and premium, if any, and (to the extent that such
interest has been collected by the Trustee) upon overdue installments of
interest, if any, at the same rate as the rate of interest or Yield to
Maturity (in the case of Original Issue Discount Securities) specified in
such Debt Securities; and in case such moneys shall be insufficient to pay
in full the whole amount so due and unpaid upon such Debt Securities, then
to the payment of such principal, premium, if any, and interest, if any,
without preference or priority of principal, and premium, if any, over
interest, if any, or of interest, if any, over principal, and premium, if
any, or of any installment of interest, if any, over any other installment
of interest, if any, or of any such Debt Security over any other such Debt
Security, ratably to the aggregate of such principal, premium, if any, and
accrued and unpaid interest, if any; and
Fourth: To the payment of the remainder, if any, to the Company, to the
extent such moneys were provided thereby, their respective successors or
assigns, or to whosoever may be lawfully entitled to receive the same, or
as a court of competent jurisdiction may direct.
SECTION 6.04. PROCEEDINGS BY HOLDERS OF DEBT SECURITIES. No Holder of any
Debt Security of any series shall have any right by virtue of or by availing
itself of any provision of this Indenture to institute any suit, action or
proceeding in equity or at law upon or under or with respect to this Indenture
or for the appointment of a receiver or trustee (or other similar official), or
for any other remedy hereunder, unless such Holder previously shall have given
to the Trustee written notice of default with respect to Debt Securities of
such series and of the continuance thereof, as hereinbefore provided, and
unless also the Holders of not less than twenty-five percent in aggregate
principal amount of the Debt Securities of such series then Outstanding or, in
the case of an Event of Default specified in clause (d), (e) or (f) of Section
6.01, of all series (voting as a class) with respect to which such Event of
Default has occurred and is continuing, shall have made written request upon
the Trustee to institute such action, suit or proceeding in its own name as
Trustee hereunder and shall have offered to the Trustee such reasonable
security and indemnity as it may require against the costs, expenses and
liabilities to be incurred therein or thereby, and the Trustee for 60
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days after its receipt of such notice, request and offer of indemnity, shall
have neglected or refused to institute any such action, suit or proceeding, it
being understood and intended, and being expressly covenanted by the taker and
Holder of every Debt Security with every other taker and Holder and the
Trustee, that no one or more Holders of Debt Securities of such series shall
have any right in any manner whatever by virtue of or by availing of any
provision of this Indenture to affect, disturb or prejudice the rights of any
other Holder of Debt Securities of such series, or to obtain or seek to obtain
priority over or preference to any other such Holder, or to enforce any right
under this Indenture, except in the manner herein provided and for the equal,
ratable and common benefit of all Holders of Debt Securities of such series.
SECTION 6.05. PROCEEDINGS BY TRUSTEE. In case of an Event of Default
hereunder the Trustee may in its discretion proceed to protect and enforce the
rights vested in it by this Indenture by such appropriate judicial proceedings
as the Trustee shall deem most effectual to protect and enforce any of such
rights, either by suit in equity or by action at law or by proceeding in
bankruptcy or otherwise, whether for the specific enforcement of any covenant
or agreement contained in this Indenture or in aid of the exercise of any power
granted in this Indenture, or to enforce any other legal or equitable right
vested in the Trustee by this Indenture or by law.
SECTION 6.06. REMEDIES CUMULATIVE AND CONTINUING. All powers and remedies
given by this Article Six to the Trustee or to the Holders of Debt Securities
of any series shall, to the extent permitted by law, be deemed cumulative and
not exclusive of any thereof or of any other powers and remedies available to
the Trustee or the Holders of such Debt Securities, by judicial proceedings or
otherwise, to enforce the performance or observance of the covenants and
agreements contained in this Indenture, and no delay or omission of the Trustee
or of any Holder of any such Debt Securities to exercise any right or power
accruing upon any default occurring and continuing as aforesaid shall impair
any such right or power, or shall be construed to be a waiver of any such
default or an acquiescence therein; and, subject to the provisions of Section
6.04, every power and remedy given by this Article Six or by law to the Trustee
or to the Holders of Debt Securities of any series may be exercised from time
to time, and as often as shall be deemed expedient, by the Trustee or by the
Holders of Debt Securities of such series.
SECTION 6.07. DIRECTION OF PROCEEDINGS AND WAIVER OF DEFAULTS BY HOLDERS OF
DEBT SECURITIES. The Holders of a majority (voting as one class) in aggregate
principal amount of the Debt Securities of each series affected at the time
Outstanding shall have the right to direct the time, method and place of
conducting any proceeding for any remedy available to the Trustee, or
exercising any trust or power conferred on the Trustee, with respect to the
Debt Securities of such series; provided, however, that (subject to the
requirements of Section 315 of the Trust Indenture Act of 1939) the Trustee
shall have the right to decline to follow any such direction if the Trustee,
being advised by counsel, determines that the action or proceeding so directed
may not lawfully be taken or if the Trustee in good faith by a Responsible
Officer shall determine that the action or proceeding so directed could involve
the Trustee in personal liability or expense materially in excess of any
indemnity offered pursuant to Section 7.05 hereof. The Holders of a majority in
aggregate principal amount of the Debt Securities of such series at the time
Outstanding may on behalf of the Holders of all of the Debt Securities of such
series waive any past default or Event of Default with respect to such series
and its consequences except a default in the payment of interest, if any, on,
or the principal of or premium, if any, on any Debt Security of such series, or
in the payment of any sinking fund installment with respect to Debt Securities
of such series. Upon any such waiver the Company, the Trustee and the Holders
of the Debt Securities of that series shall be restored to their former
positions and rights hereunder, respectively; but no such waiver shall extend
to any subsequent or other default or Event of Default or impair any right
consequent thereon. Whenever any default or Event of Default hereunder shall
have been waived as permitted by this Section 6.07, said default or Event of
Default shall for all purposes of the Debt Securities of such series and this
Indenture be deemed to have been cured and to be not continuing.
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ARTICLE SEVEN
CONCERNING THE TRUSTEE
SECTION 7.01. RELIANCE ON DOCUMENTS AND OPINIONS. Subject to the requirements
of Section 315 of the Trust Indenture Act of 1939:
(a) the Trustee may rely and shall be protected in acting or refraining
from acting upon any resolution, certificate, statement, instrument,
opinion, report, notice, request, direction, consent, order, or other paper
or document believed by it to be genuine and to have been signed or
presented by the proper party or parties;
(b) any request, direction, order or demand of the Company mentioned
herein shall be sufficiently evidenced by an Officers' Certificate (unless
other evidence in respect thereof be herein specifically prescribed); and
any resolution of the Board of Directors may be evidenced to the Trustee by
a copy thereof certified by the Secretary or an Assistant Secretary of the
Company;
(c) the Trustee may consult with counsel and any Opinion of Counsel shall
be full and complete authorization and protection in respect of any action
taken, omitted or suffered to be taken by it hereunder in good faith and in
accordance with such Opinion of Counsel;
(d) the Trustee shall be under no obligation to exercise any of the
rights or powers vested in it by this Indenture at the request, order or
direction of any of the Holders, pursuant to the provisions of this
Indenture, unless such Holders shall have offered to the Trustee reasonable
security or indemnity against the costs, expenses and liabilities which
might be incurred therein or thereby;
(e) the Trustee shall not be liable for any action taken, omitted or
suffered by it in good faith and believed by it to be authorized or within
the discretion or rights or powers conferred upon it by this Indenture;
(f) the Trustee shall not be bound to make any inquiry or investigation
into the facts or matters stated in any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order,
bond, note, or other paper or document unless requested in writing to do so
by the Holders of a majority in aggregate principal amount of the Debt
Securities of any series affected then outstanding; provided, however, that
if the payment within a reasonable time to the Trustee of the costs and
expenses or liabilities likely to be incurred by it in the making of such
investigation is, in the opinion of the Trustee, not reasonably assured to
the Trustee by the security conferred upon it by the terms of this
Indenture, the Trustee may require reasonable indemnity against such costs,
expenses or liabilities as a condition to so proceeding; and the reasonable
expense of such investigation shall be paid by the Company or, if paid by
the Trustee, shall be repaid by the Company upon demand; and
(g) the Trustee may execute any of the trusts or powers hereunder or
perform any duties hereunder either directly or by or through agents or
attorneys, and the Trustee shall not be responsible for any misconduct or
negligence on the part of any agent or attorney appointed with due care by
it hereunder.
SECTION 7.02. RESPONSIBILITY FOR RECITALS. The recitals contained herein and
in the Debt Securities (except in the certificates of authentication of the
Trustee and the Authenticating Agent) shall be taken as the statements of the
Company, and the Trustee and the Authenticating Agent assume no responsibility
for the correctness of the same. The Trustee and the Authenticating Agent make
no representations as to the validity or sufficiency of this Indenture or the
Debt Securities, provided that neither the Trustee nor the Authenticating Agent
shall be relieved of its duty to authenticate Debt Securities only as
authorized by this Indenture. The Trustee and the Authenticating Agent shall
not be accountable for the use or application by the Company of any of the Debt
Securities or of the proceeds thereof.
SECTION 7.03. OWNERSHIP OF DEBT SECURITIES. The Trustee or any Authenticating
Agent and any agent of the Company or of the Trustee, in its individual or any
other capacity, may become the owner or pledgee of Debt Securities with the
same rights it would have if it were not Trustee, Authenticating Agent or such
agent.
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SECTION 7.04. MONEYS TO BE HELD IN TRUST. Subject to the provisions of
Sections 12.03 and 12.04 hereof, all moneys received by the Trustee or any
paying agent shall, until used or applied as herein provided, be held in trust
for the purposes for which they were received, but need not be segregated from
other funds except to the extent required by law. Neither the Trustee nor any
paying agent shall be under any liability for interest on any moneys received
by it hereunder except such as it may agree with the Company to pay thereon. So
long as no Event of Default shall have occurred and be continuing, all interest
allowed on any such moneys shall be paid from time to time upon Company Order.
SECTION 7.05. COMPENSATION AND EXPENSES OF TRUSTEE. The Company covenants and
agrees to pay the Trustee from time to time, and the Trustee shall be entitled
to, reasonable compensation (which shall not be limited by any provision of law
in regard to the compensation of a trustee of an express trust) and, except as
otherwise expressly provided, the Company will pay or reimburse the Trustee
upon its request for all reasonable expenses, disbursements and advances
incurred or made by the Trustee in accordance with any of the provisions of
this Indenture (including the reasonable compensation and the expenses and
disbursements of its agents or counsel and of all persons not regularly in its
employ) except any such expense, disbursement or advance as may be attributable
to its negligence or bad faith. If any property other than cash shall at any
time be subject to the lien of this Indenture, the Trustee, if and to the
extent authorized by a receivership or bankruptcy court of competent
jurisdiction or by the supplemental instrument subjecting such property to such
lien, shall be entitled to make advances for the purpose of preserving such
property or of discharging tax liens or other prior liens or encumbrances
thereon. The Company also covenants to indemnify the Trustee for, and to hold
it harmless against, any loss, liability or expense incurred without negligence
or bad faith on the part of the Trustee, arising out of or in connection with
the acceptance or administration of this trust and its duties hereunder,
including the costs and expenses of defending itself against any claim of
liability in the premises. The obligations of the Company under this Section
7.05 to compensate the Trustee, to pay or reimburse the Trustee for expenses,
disbursements and advances and to indemnify the Trustee shall constitute
additional indebtedness hereunder. Such additional indebtedness shall be
secured by a lien prior to that of the Debt Securities upon all property and
funds held or collected by the Trustee as such, except funds held in trust for
the benefit of the Holders of particular Debt Securities.
SECTION 7.06. OFFICERS' CERTIFICATE AS EVIDENCE. Subject to the requirements
of Section 315 of the Trust Indenture Act of 1939, whenever in the
administration of the provisions of this Indenture the Trustee shall deem it
necessary or desirable that a matter be proved or established prior to taking,
omitting or suffering any action to be taken hereunder, such matter (unless
other evidence in respect thereof be herein specifically prescribed) may, in
the absence of negligence or bad faith on the part of the Trustee, be deemed to
be conclusively proved by an Officers' Certificate delivered to the Trustee,
and such certificate, in the absence of negligence or bad faith on the part of
the Trustee, shall be full warrant to the Trustee for any action taken, omitted
or suffered by it under the provisions of this Indenture upon the faith
thereof.
SECTION 7.07. ELIGIBILITY OF TRUSTEE. The Trustee hereunder shall at all
times be a corporation organized and doing business under the laws of the
United States or any State, which (a) is authorized under such laws to exercise
corporate trust powers, (b) is subject to supervision or examination by Federal
or State authority, (c) shall have at all times a combined capital and surplus
of not less than ten million dollars and (d) is eligible under the provisions
of the Trust Indenture Act of 1939. If such corporation publishes reports of
condition at least annually, pursuant to law, or to the requirements of the
aforesaid supervising or examining authority, then for the purposes of this
Section 7.07, the combined capital and surplus of such corporation at any time
shall be deemed to be its combined capital and surplus as set forth in its most
recent report of condition so published. In case at any time the Trustee shall
cease to be eligible in accordance with the provisions of this Section 7.07,
the Trustee shall resign immediately in the manner and with the effect
specified in Section 7.08.
SECTION 7.08. RESIGNATION OR REMOVAL OF TRUSTEE. (a) The Trustee, or any
trustee or trustees hereafter appointed, may at any time resign with respect to
any one or more or all series of Debt Securities by giving written notice of
resignation to the Company and by mailing notice thereof to the Holders of the
applicable series of Debt Securities at their addresses as they shall appear on
the registry books of the Company. Upon receiving such notice of resignation,
the Company shall promptly appoint a successor trustee or trustees with
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respect to the applicable series by written instrument, in duplicate, executed
under authority of the Board of Directors of the Company, one copy of which
instrument shall be delivered to the resigning Trustee and one copy to the
successor trustee. If no successor trustee shall have been so appointed with
respect to any series and have accepted appointment within 60 days after the
giving of such notice of resignation, the resigning Trustee may petition any
court of competent jurisdiction for the appointment of a successor trustee, or
any Holder who has been a bona fide Holder of a Debt Security or Debt
Securities of the applicable series for at least six months may, subject to the
requirements of Section 315(e) of the Trust Indenture Act of 1939, on behalf of
himself and all others similarly situated, petition any such court for the
appointment of a successor trustee. Such court may thereupon, after such
notice, if any, as it may deem proper and prescribe, appoint a successor
trustee.
(b) In case at any time any of the following shall occur:
(1) the Trustee shall cease to be eligible in accordance with the
provisions of Section 7.07 with respect to any series of Debt Securities
and shall fail to resign after written request therefor by the Company or
by any such Holder, or
(2) the Trustee shall become incapable of acting with respect to any
series of Debt Securities, or shall be adjudged a bankrupt or insolvent, or
a receiver of the Trustee or of its property shall be appointed, or any
public officer shall take charge or control of the Trustee or of its
property or affairs for the purpose of rehabilitation, conservation or
liquidation, then, in any such case, the Company may remove the Trustee
with respect to such series and appoint a successor trustee with respect to
such series by written instrument, in duplicate, executed under authority
of the Board of Directors of the Company, one copy of which instrument
shall be delivered to the Trustee so removed and one copy to the successor
trustee, or, subject to the requirements of Section 315(e) of the Trust
Indenture Act of 1939, any Holder who has been a bona fide Holder of a Debt
Security of such series for at least six months may, on behalf of himself
and all others similarly situated, petition any court of competent
jurisdiction for the removal of the Trustee and the appointment of a
successor trustee with respect to such series. Such court may thereupon,
after such notice, if any, as it may deem proper and prescribe, remove the
Trustee and appoint a successor trustee with respect to such series.
(c) The Holders of 66 2/3% in aggregate principal amount of the Debt
Securities of one or more series (each series voting as a class) or all series
at the time Outstanding may at any time remove the Trustee with respect to the
applicable series or all series, as the case may be, and appoint with respect
to the applicable series or all series, as the case may be, a successor trustee
by written notice of such action to the Company, the Trustee and the successor
trustee which shall be deemed appointed as successor trustee with respect to
the applicable series of Debt Securities or all series, as the case may be,
unless within ten days after such nomination the Company objects thereto, in
which case the Trustee so removed or any Holder of a Debt Security of the
applicable series (in the case of any such objection to a nomination of a
successor trustee with respect to such series) or any Holder (in the case of
any such objection to a nomination of a successor trustee with respect to all
series), upon the terms, and conditions and otherwise as in subsection (a) of
this Section 7.08 provided, may petition any court of competent jurisdiction
for the appointment of a successor trustee with respect to such series of Debt
Securities or all series, as the case may be.
(d) Any resignation or removal of the Trustee with respect to any series and
any appointment of a successor trustee with respect to such series pursuant to
any of the provisions of this Section 7.08 shall become effective upon
acceptance of appointment by the successor trustee as provided in Section 7.09.
SECTION 7.09. ACCEPTANCE BY SUCCESSOR TRUSTEE. Any successor trustee
appointed as provided in Section 7.08 shall execute, acknowledge and deliver to
the Company and to its predecessor trustee an instrument accepting such
appointment hereunder, and thereupon the resignation or removal of the
predecessor trustee with respect to any or all applicable series shall become
effective and such successor trustee, without any further act, deed or
conveyance, shall become vested with all the rights, powers, duties and
obligations with respect to such series of its predecessor hereunder, with like
effect as if originally named as trustee herein; but, nevertheless, on the
written request of the Company, or of the successor trustee, the trustee
ceasing to
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act shall, upon payment (or due provision therefor) of any amounts then due it
pursuant to the provisions of Section 7.05, execute and deliver an instrument
transferring to such successor trustee all the rights and powers with respect
to such series of the trustee so ceasing to act. Upon request of any such
successor trustee, the Company shall execute any and all instruments in writing
in order more fully and certainly to vest in and confirm to such successor
trustee all such rights and powers. Any trustee ceasing to act shall,
nevertheless, retain a lien upon all property or funds held or collected by
such trustee to secure any amounts then due it pursuant to the provisions of
Section 7.05.
In case of the appointment hereunder of a successor trustee with respect to
the Debt Securities of one or more (but not all) series, the Company, the
predecessor trustee and each successor trustee with respect to the Debt
Securities of any applicable series shall execute and deliver an indenture
supplemental hereto which shall contain such provisions as shall be deemed
necessary or desirable to confirm that all the rights, powers, trusts and
duties of the predecessor trustee with respect to the Debt Securities of any
series as to which the predecessor trustee is not retiring shall continue to be
vested in the predecessor trustee, and shall add to or change any of the
provisions of this Indenture as shall be necessary to provide for or facilitate
the administration of the trusts hereunder by more than one trustee, it being
understood that nothing herein or in such supplemental indenture shall
constitute such trustees co-trustees of the same trust and that each such
trustee shall be trustee of a trust or trusts hereunder separate and apart from
any trust or trusts hereunder administered by any other such trustee.
No successor trustee with respect to a series of Debt Securities shall accept
appointment as provided in this Section 7.09 unless at the time of such
acceptance such successor trustee shall, with respect to such series, be
qualified under the requirements of the Trust Indenture Act of 1939 and
eligible under the provisions of Section 7.07.
Upon acceptance of appointment by a successor trustee with respect to any
series as provided in Section 7.09, the Company shall mail notice of the
succession of such trustee hereunder to the Holders of Debt Securities of such
series at their addresses as they shall appear on the registry books of the
Company. If the Company fails to mail such notice within ten days after the
acceptance of appointment by the successor trustee, the successor trustee shall
cause such notice to be mailed at the expense of the Company.
SECTION 7.10. SUCCESSION BY MERGER. Any corporation into which the Trustee
may be merged or converted or with which it may be consolidated, or any
corporation resulting from any merger, conversion or consolidation to which the
Trustee shall be a party, or any corporation succeeding to the corporate trust
business of the Trustee, shall be the successor to the Trustee hereunder,
provided such corporation shall be qualified under the requirements of the
Trust Indenture Act of 1939 and eligible under the provisions of Section 7.07,
without the execution or filing of any paper or any further act on the part of
any of the parties hereto, anything herein to the contrary notwithstanding.
In case at the time such successor to the Trustee shall succeed to the trust
created by this Indenture with respect to one or more series of Debt
Securities, any of such Debt Securities shall have been authenticated but not
delivered, any such successor to the Trustee by merger, conversion or
consolidation may adopt the certificate of authentication of any predecessor
trustee, and deliver such Debt Security so authenticated; and in case at that
time any of such Debt Securities shall not have been authenticated, any
successor to the Trustee may authenticate such Debt Securities either in the
name of such successor to the Trustee or, if such successor to the Trustee is a
successor by merger, conversion or consolidation, the name of any predecessor
hereunder; and in all such cases such certificate shall have the full force
which it is anywhere in such Debt Securities or in this Indenture provided that
the certificate of the Trustee shall have.
SECTION 7.11. AUTHENTICATING AGENTS. There may be one or more Authenticating
Agents appointed by the Trustee, with the consent of the Company, having power
to act on behalf of the Trustee and subject to its direction in the
authentication and delivery of Debt Securities of one or more series issued
upon exchange or transfer thereof as fully to all intents and purposes as
though any such Authenticating Agent had been expressly authorized to
authenticate and deliver such Debt Securities. Any such Authenticating Agent
shall
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at all times be a corporation organized and doing business under the laws of
the United States of America or of any State thereof authorized under such laws
to act as Authenticating Agent, having a combined capital and surplus of at
least $5,000,000 and being subject to supervision or examination by Federal or
State authority. If such corporation publishes reports of condition at least
annually pursuant to law or the requirements of such authority, then for the
purposes of this Section 7.11 the combined capital and surplus of such
corporation shall be deemed to be its combined capital and surplus as set forth
in its most recent report of condition so published. If at any time an
Authenticating Agent shall cease to be eligible in accordance with the
provisions of this Section, it shall resign immediately in the manner and with
the effect herein specified in this Section.
Any corporation into which any Authenticating Agent may be merged or
converted or with which it may be consolidated, or any corporation resulting
from any merger, consolidation or conversion to which any Authenticating Agent
shall be a party, or any corporation succeeding to the corporate trust business
of any Authenticating Agent, shall be the successor of such Authenticating
Agent hereunder, if such successor corporation is otherwise eligible under this
Section 7.11, without the execution or filing of any paper or any further act
on the part of the parties hereto or such Authenticating Agent.
Any Authenticating Agent may at any time resign by giving written notice of
resignation to the Trustee and to the Company. The Trustee may at any time
terminate the agency of any Authenticating Agent by giving written notice of
termination to such Authenticating Agent and to the Company. Upon receiving
such a notice of resignation or upon such a termination, or in case at any time
any Authenticating Agent shall cease to be eligible under this Section 7.11,
the Trustee may, and upon the request of the Company shall, promptly appoint a
successor Authenticating Agent eligible under this Section 7.11, and shall give
written notice of such appointment to the Company and to the Holders of Debt
Securities at their addresses as they shall appear on the registry books of the
Company. Any successor Authenticating Agent, upon acceptance of its appointment
hereunder, shall become vested with all rights, powers, duties and
responsibilities of its predecessor hereunder, with like effect as if
originally named as Authenticating Agent herein.
The Trustee agrees to pay to any Authenticating Agent from time to time
reasonable compensation for its services, and the Trustee shall be entitled to
be reimbursed for such payments, subject to Section 7.05. Any Authenticating
Agent shall have no responsibility or liability for any action taken by it as
such in accordance with the directions of the Trustee.
ARTICLE EIGHT
CONCERNING THE HOLDERS
SECTION 8.01. ACTION BY HOLDERS. Whenever in this Indenture it is provided
that the Holders of a specified percentage in aggregate principal amount of the
Debt Securities of any or all series may take any action (including the making
of any demand or request, the giving of any notice, consent or waiver or the
taking of any other action) the fact that at the time of taking any such action
the Holders of such specified percentage have joined therein may be evidenced
(a) by any instrument or any number of instruments of similar tenor executed by
such Holders in person or by agent or proxy appointed in writing, or (b) by the
record of such Holders of Debt Securities voting in favor thereof at any
meeting of such Holders duly called and held in accordance with the provisions
of Article Nine, or (c) by a combination of such instrument or instruments and
any such record of such a meeting of such Holders.
SECTION 8.02. PROOF OF EXECUTION BY HOLDERS. Subject to the requirements of
Section 315 of the Trust Indenture Act of 1939 and Sections 7.01 and 9.05,
proof of the execution of any instrument by a Holder or his agent or proxy
shall be sufficient if made in accordance with such reasonable rules and
regulations as may be prescribed by the Trustee or in such manner as shall be
satisfactory to the Trustee. The ownership of Debt Securities shall be proved
by the registry books of the Company or by a certificate of the person
designated by the Company to act as repository in accordance with the
provisions of Section 2.06.
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The record of any Holders' meeting shall be proved in the manner provided in
Section 9.06.
SECTION 8.03. WHO ARE DEEMED ABSOLUTE OWNERS. The Company, the Trustee and
any agent of the Company or of the Trustee may deem the person in whose name a
Debt Security shall be registered upon the books of the Company to be, and may
treat him as, the absolute owner of such Debt Security (whether or not such
Debt Security shall be overdue and notwithstanding any notation of ownership or
other writing thereon) for the purpose of receiving payment of or on account of
the principal of, premium, if any, and interest, if any, on such Debt Security
and for all other purposes; and neither the Company nor the Trustee nor any
agent of the Company or the Trustee shall be affected by any notice to the
contrary. All such payments so made to any Holder for the time being, or upon
his order, shall be valid, and, to the extent of the sum or sums so paid,
effectual to satisfy and discharge the liability for moneys payable upon any
such Debt Security.
SECTION 8.04. COMPANY-OWNED DEBT SECURITIES DISREGARDED. In determining
whether the Holders of the requisite aggregate principal amount of Debt
Securities have concurred in any demand, request, notice, direction, consent or
waiver under this Indenture, Debt Securities which are owned by the Company or
any other obligor on the Debt Securities with respect to which such
determination is being made, or by any person directly or indirectly
controlling or controlled by or under direct or indirect common control with
the Company or any other obligor on the Debt Securities, with respect to which
such determination is being made, shall be disregarded and deemed not to be
Outstanding for the purposes of any such determination; provided, that for the
purposes of determining whether the Trustee shall be protected in relying on
any such demand, request, notice, direction, consent or waiver only Debt
Securities which the Trustee knows are so owned shall be so disregarded.
SECTION 8.05. REVOCATION OF CONSENTS; FUTURE HOLDERS BOUND. At any time prior
to (but not after) the evidencing to the Trustee, as provided in Section 8.01,
of the taking of any action by the Holders of the percentage in aggregate
principal amount of the Debt Securities of any or all series, as the case may
be, specified in this Indenture in connection with such action, any Holder of a
Debt Security which is shown by the evidence to be included in the Debt
Securities the Holders of which have consented to such action may, by filing
written notice with the Trustee at its principal office and upon proof of
holding as provided in Section 8.02, revoke such action so far as concerns such
Debt Security. Except as aforesaid any such action taken by the Holder of any
Debt Security shall be conclusive and binding upon such Holder and upon all
future Holders of such Debt Security, and any Debt Security issued upon the
registration of transfer thereof, irrespective of whether or not any notation
in regard thereto is made upon such Debt Security or any Debt Security issued
in exchange or substitution therefor.
ARTICLE NINE
HOLDERS' MEETINGS
SECTION 9.01. PURPOSES OF MEETINGS. A meeting of Holders of Debt Securities
of any or all series may be called at any time and from time to time pursuant
to the provisions of this Article Nine for any of the following purposes:
(1) to give any notice to the Company or to the Trustee, or to give any
directions to the Trustee, or to consent to the waiving of any default
hereunder and its consequences, or to take any other action authorized to
be taken by Holders pursuant to any of the provisions of Article Six;
(2) to remove the Trustee and nominate a successor trustee pursuant to
the provisions of Article Seven;
(3) to consent to the execution of an indenture or indentures
supplemental hereto pursuant to the provisions of Section 10.02; or
(4) to take any other action authorized to be taken by or on behalf of
the Holders of any specified aggregate principal amount of the Debt
Securities of any or all series, as the case may be, under any other
provision of this Indenture or under applicable law.
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SECTION 9.02. CALL OF MEETINGS BY TRUSTEE. The Trustee may at any time call a
meeting of Holders of Debt Securities of any or all series to take any action
specified in Section 9.01, to be held at such time and at such place as the
Trustee shall determine. Notice of every meeting of the Holders of Debt
Securities of any or all series, setting forth the time and the place of such
meeting and in general terms the action proposed to be taken at such meeting,
shall be mailed to Holders of Debt Securities of each series affected at their
addresses as they shall appear on the registry books of the Company. Such
notice shall be mailed not less than 20 nor more than 90 days prior to the date
fixed for the meeting.
SECTION 9.03. CALL OF MEETINGS BY THE COMPANY OR HOLDERS. In case at any time
the Company, pursuant to a resolution of its Board of Directors, or the Holders
of at least twenty-five percent in aggregate principal amount of the Debt
Securities then Outstanding of any series that may be affected by the action
proposed to be taken at the meeting, shall have requested the Trustee to call a
meeting of the Holders of Debt Securities of all series that may be so
affected, by written request setting forth in reasonable detail the action
proposed to be taken at the meeting, and the Trustee shall not have mailed the
notice of such meeting within 20 days after receipt of such request, then the
Company or such Holders, in the amount specified above, may determine the time
and the place for such meeting and may call such meeting to take any action
authorized in Section 9.01, by mailing notice thereof as provided in Section
9.02.
SECTION 9.04. QUALIFICATIONS FOR VOTING. To be entitled to vote at any
meeting of Holders a person shall (a) be a Holder of one or more Debt
Securities with respect to which such meeting is being held or (b) be a person
appointed by an instrument in writing as proxy by a Holder of one or more such
Debt Securities. The only persons who shall be entitled to be present or to
speak at any meeting of Holders shall be the persons entitled to vote at such
meeting and their counsel, any representatives of the Trustee and its counsel
and any representatives of the Company and its counsel.
SECTION 9.05. REGULATIONS. Notwithstanding any other provisions of this
Indenture, the Trustee may make such reasonable regulations as it may deem
advisable for any meeting of Holders, in regard to proof of the holding of Debt
Securities and of the appointment of proxies, and in regard to the appointment
and duties of inspectors of votes, the submission and examination of proxies,
certificates and other evidence of the right to vote, and such other matters
concerning the conduct of the meeting as it shall think fit.
The Trustee shall, by an instrument in writing, appoint a temporary chairman
of the meeting, unless the meeting shall have been called by the Company or by
Holders as provided in Section 9.03, in which case the Company or the Holders
calling the meeting, as the case may be, shall in like manner appoint a
temporary chairman. A permanent chairman and a permanent secretary of the
meeting shall be elected by majority vote of the meeting.
Subject to the provisions of Section 8.04, at any meeting each Holder of Debt
Securities with respect to which such meeting is being held or proxy shall be
entitled to one vote for each $1,000 principal amount (or in the case of
Original Issue Discount Securities or Debt Securities of such series
denominated in a currency other than Dollars or are denominated in units or
composites of two or more currencies, such principal amount to be determined as
of the record date as provided in the definition of "Outstanding.") of such
Debt Securities held or represented by each Holder; provided, however, that no
vote shall be cast or counted at any meeting in respect of any such Debt
Security challenged as not Outstanding and ruled by the chairman of the meeting
to be not Outstanding. The chairman of the meeting shall have no right to vote
other than by virtue of such Debt Securities held by him or instruments in
writing as aforesaid duly designating him as the person to vote on behalf of
other such Holders. At any meeting of Holders, the presence of persons holding
or representing Debt Securities in an aggregate principal amount sufficient to
take action on any business for the transaction of which such meeting was
called shall constitute a quorum.
Any meeting of Holders of Debt Securities with respect to which a meeting was
duly called pursuant to the provisions of Section 9.02 or 9.03 may be adjourned
from time to time by a majority of those present, whether or not constituting a
quorum, and the meeting may be held as so adjourned without further notice.
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SECTION 9.06. VOTING. The vote upon any resolution submitted to any meeting
of Holders of Debt Securities with respect to which such meeting is being held
shall be by written ballots on which shall be subscribed the signatures of such
Holders of Debt Securities or of their representatives by proxy and the
principal amount and number or numbers of such Debt Securities held or
represented by them. The permanent chairman of the meeting shall appoint two
inspectors of votes who shall count all votes cast at the meeting for or
against any resolution and who shall make and file with the secretary of the
meeting their verified written reports in duplicate of all votes cast at the
meeting. A record in duplicate of the proceedings of each meeting of Holders
shall be prepared by the secretary of the meeting and there shall be attached
to said record the original reports of the inspectors of votes on any vote by
ballot taken thereat and affidavits by one or more persons having knowledge of
the facts setting forth a copy of the notice of the meeting and showing that
said notice was mailed as provided in Section 9.02. The record shall show the
principal amount of the Debt Securities voting in favor of or against any
resolution. The record shall be signed and verified by the affidavits of the
permanent chairman and secretary of the meeting and one of the duplicates shall
be delivered to the Company and the other to the Trustee to be preserved by the
Trustee, the latter to have attached thereto the ballots voted at the meeting.
Any records so signed and verified shall be conclusive evidence of the
matters therein stated.
SECTION 9.07. NO DELAY OF RIGHTS BY MEETING. Nothing in this Article Nine
shall be deemed or construed to authorize or permit, by reason of any call of a
meeting of Holders of any or all series or any rights expressly or impliedly
conferred hereunder to make such call, any hindrance or delay in the exercise
of any right or rights conferred upon or reserved to the Trustee or to the
Holders of any or all such series under any of the provisions of this Indenture
or of the Debt Securities.
ARTICLE TEN
SUPPLEMENTAL INDENTURES
SECTION 10.01. SUPPLEMENTAL INDENTURES WITHOUT CONSENT OF HOLDERS. The
Company when authorized by resolution of the Board of Directors and the Trustee
may from time to time and at any time enter into an indenture or indentures
supplemental hereto for one or more of the following purposes:
(a) to evidence the succession of another corporation to the Company, or
successive successions, and the assumption by the successor corporation of
the covenants, agreements and obligations of the Company, as the case may
be pursuant to Article Eleven hereof;
(b) to add to the covenants of the Company such further covenants,
restrictions or conditions for the protection of the Holders of all or any
series of Debt Securities (and if such covenants are to be for the benefit
of less than all series of Debt Securities, stating that such covenants are
expressly being included for the benefit of such series) as the Board of
Directors of the Company shall consider to be for the protection of the
Holders of such Debt Securities or as may be required by Section 4.03 or
Section 11.02, and to make the occurrence, or the occurrence and
continuance, of a default in any of such additional covenants, restrictions
or conditions a default or an Event of Default permitting the enforcement
of all or any of the several remedies provided in this Indenture as herein
set forth; provided, however, that in respect of any such additional
covenant, restriction or condition such supplemental indenture may provide
for a particular period of grace after default (which period may be shorter
or longer than that allowed in the case of other defaults) or may provide
for an immediate enforcement upon such default or may limit the remedies
available to the Trustee upon such default;
(c) to provide for the issuance under this Indenture of Debt Securities
in bearer or coupon form (including securities registrable as to principal
only) and to provide for exchangeability of such Debt Securities with the
Debt Securities of the same series issued hereunder in fully registered
form and to make all appropriate changes for such purpose;
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(d) to establish the form or terms of Debt Securities of any series as
permitted by Sections 2.01 and 2.02;
(e) to cure any ambiguity or to correct or supplement any provision
contained herein or in any supplemental indenture which may be defective or
inconsistent with any other provision contained herein or in any
supplemental indenture, or to make such other provisions in regard to
matters or questions arising under this Indenture which shall not adversely
affect the interests of the Holders of any Debt Securities; and
(f) to evidence and provide for the acceptance of appointment hereunder
by a successor trustee with respect to the Debt Securities of one or more
series or to add to or change any of the provisions of this Indenture as
shall be necessary to provide for or facilitate the administration of the
trusts hereunder by more than one trustee, pursuant to the requirements of
Section 7.09.
The Trustee is hereby authorized to join with the Company in the execution of
any such supplemental indenture, to make any further appropriate agreements and
stipulations which may be therein contained and to accept the conveyance,
transfer, assignment, mortgage or pledge of any property thereunder, but the
Trustee shall not be obligated to, but may in its discretion, enter into any
such supplemental indenture which affects the Trustee's own rights, duties or
immunities under this Indenture or otherwise.
Any supplemental indenture authorized by the provisions of this Section 10.01
may be executed by the Company and the Trustee without the consent of the
Holders of any of the Debt Securities at the time Outstanding, notwithstanding
any of the provisions of Section 10.02.
SECTION 10.02. SUPPLEMENTAL INDENTURES WITH CONSENT OF HOLDERS. With the
consent (evidenced as provided in Sections 8.01 and 8.02) of the Holders of not
less than 66 2/3% in aggregate principal amount of the Debt Securities of each
series issued under the Indenture (each series voting as a class) affected by
such supplemental indenture at the time Outstanding, the Company, when
authorized by a resolution of the Board of Directors and the Trustee may from
time to time and at any time enter into an indenture or indentures supplemental
hereto for the purpose of adding any provisions to or changing in any manner or
eliminating any of the provisions of this Indenture or of any supplemental
indenture or of modifying in any manner the rights of the Holders of the Debt
Securities of each such series; provided, however, that, without the consent of
the Holders of all Debt Securities affected then Outstanding, no such
supplemental indenture shall (i) extend the fixed maturity of any Debt
Security, or reduce the rate or extend the time of payment of interest, if any,
thereon, or reduce the principal amount or premium, if any, thereon, or make
the principal thereof or premium, if any, or interest, if any, thereon payable
in any coin or currency other than that provided in any Debt Security, or
reduce the amount of the principal of an Original Issue Discount Security that
would be due and payable upon an acceleration of the maturity thereof pursuant
to Section 6.01 or adversely affect the right of repayment, if any, at the
option of the Holder or (ii) reduce the aforesaid percentage of Debt Securities
of any series, the Holders of which are required to consent to any such
supplemental indenture. A supplemental indenture which changes or eliminates
any covenant or other provision of this Indenture which has expressly been
included solely for the benefit of one or more particular series of Debt
Securities, or which modifies the rights of the Holders of Debt Securities of
such series with respect to such covenant or other provision shall be deemed
not to affect the rights under this Indenture of the Holders of Debt Securities
of any other series.
Upon the request of the Company, accompanied by a copy of the resolutions of
the Board of Directors authorizing the execution and delivery of any such
supplemental indenture, and upon the filing with the Trustee of evidence of the
consent of Holders as aforesaid, the Trustee shall join with the Company in the
execution of such supplemental indenture unless such supplemental indenture
affects the Trustee's own rights, duties or immunities under this Indenture or
otherwise, in which case the Trustee may in its discretion, but shall not be
obligated to, enter into such supplemental indenture.
It shall not be necessary for the consent of the Holders under this Section
10.02 to approve the particular form of any proposed supplemental indenture,
but it shall be sufficient if such consent shall approve the substance thereof.
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SECTION 10.03. COMPLIANCE WITH TRUST INDENTURE ACT; EFFECT OF SUPPLEMENTAL
INDENTURES. Any supplemental indenture executed pursuant to the provisions of
this Article Ten shall comply with the Trust Indenture Act of 1939, as then in
effect. Upon the execution of any supplemental indenture pursuant to the
provisions of this Article Ten, this Indenture shall be deemed to be modified
and amended in accordance therewith and the respective rights, limitations of
rights, obligations, duties and immunities under this Indenture of the Trustee,
the Company and the Holders of Debt Securities shall thereafter be determined,
exercised and enforced hereunder subject in all respects to such modifications
and amendments, and all the terms and conditions of any such supplemental
indenture shall be and be deemed to be part of the terms and conditions of this
Indenture for any and all purposes.
SECTION 10.04. NOTATION ON DEBT SECURITIES. Debt Securities authenticated and
delivered after the execution of any supplemental indenture pursuant to the
provisions of this Article Ten may bear a notation in form approved by the
Trustee as to any matter provided for in such supplemental indenture. If the
Company or the Trustee shall so determine, new Debt Securities of any series so
modified as to conform, in the opinion of the Trustee and the Board of
Directors of the Company, to any modification of this Indenture contained in
any such supplemental indenture may be prepared and executed by the Company,
and such Debt Securities may be authenticated by the Trustee and delivered in
exchange for the Debt Securities of such series then outstanding.
SECTION 10.05. EVIDENCE OF COMPLIANCE OF SUPPLEMENTAL INDENTURE TO BE
FURNISHED TRUSTEE. The Trustee, subject to the requirements of Section 315 of
the Trust Indenture Act of 1939 and Section 7.01, may receive an Officers'
Certificate and an Opinion of Counsel as conclusive evidence that any
supplemental indenture executed pursuant hereto complies with the requirements
of this Article Ten.
ARTICLE ELEVEN
CONSOLIDATION, MERGER, SALE OR CONVEYANCE
SECTION 11.01. COMPANY MAY NOT CONSOLIDATE EXCEPT UNDER CERTAIN CONDITIONS.
The Company covenants that it will not merge or consolidate with any other
Person or sell, convey, transfer or otherwise dispose of all or substantially
all of its assets to any Person, unless (i) the Company shall be the continuing
corporation, or the successor corporation or Person (if other than the Company)
shall, by supplemental indenture satisfactory to the Trustee, executed and
delivered to the Trustee by such corporation or Person, expressly assume the
due and punctual payment of the principal of and, premium, if any, and
interest, if any, on all the Debt Securities, according to their tenor, and the
due and punctual performance and observance of all of the covenants and
conditions of this Indenture to be performed by the Company, and (ii) the
Company or such successor corporation or Person, as the case may be, shall not,
immediately after such merger or consolidation, or such sale, conveyance,
transfer or other disposition, be in default in the performance of any such
covenant or condition. In the event of any such sale, conveyance (other than by
way of lease), transfer or other disposition, the predecessor company may be
dissolved, wound up and liquidated at any time thereafter.
SECTION 11.02. SUCCESSOR CORPORATION TO BE SUBSTITUTED. In case of any such
consolidation, merger, sale, conveyance (other than by way of lease), transfer
or other disposition, and upon any such assumption by the successor corporation
or Person, such successor corporation or Person shall succeed to and be
substituted for the Company with the same effect as if it had been named herein
as the Company and the Company shall be relieved of any further obligation
under this Indenture and under the Debt Securities. Such successor corporation
or Person thereupon may cause to be signed, and may issue either in its own
name or in the name of the Company, any or all of the Debt Securities which
theretofore shall not have been signed by the Company and delivered to the
Trustee; and, upon the order of such successor corporation or Person, instead
of the Company and subject to all the terms, conditions and limitations in this
Indenture prescribed, the Trustee or the Authenticating Agent shall
authenticate and shall deliver any Debt Securities which previously shall have
been signed and delivered by the officers of the Company to the Trustee for
authentication, and any Debt Securities, which such successor corporation or
Person thereafter shall cause to
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be signed and delivered to the Trustee for that purpose. All the Debt
Securities so issued shall in all respects have the same legal rank and benefit
under this Indenture as the Debt Securities theretofore or thereafter issued in
accordance with the terms of this Indenture as though all of such Debt
Securities had been issued at the date of the execution hereof.
SECTION 11.03. DOCUMENTS TO BE GIVEN TRUSTEE. The Trustee, subject to the
requirements of Section 315 of the Trust Indenture Act of 1939 and Section
7.01, may receive an Officers' Certificate and an Opinion of Counsel as
conclusive evidence that any such consolidation, merger, sale, conveyance,
transfer or other disposition, and any such assumption, comply with the
provisions of this Article Eleven.
ARTICLE TWELVE
SATISFACTION AND DISCHARGE OF INDENTURE OR CERTAIN OBLIGATIONS
SECTION 12.01. DISCHARGE OF INDENTURE. When (a) the Company shall deliver to
the Trustee for cancellation all Debt Securities of a series theretofore
authenticated (other than any Debt Securities of such series which shall have
been destroyed, lost or stolen and which shall have been replaced or paid as
provided in Section 2.07) and not theretofore cancelled; or (b) all Debt
Securities of such series not theretofore cancelled or delivered to the Trustee
for cancellation shall have become due and payable, or are by their terms to
become due and payable within one year or are to be called for redemption
within one year under arrangements satisfactory to the Trustee for the giving
of notice of redemption, and the Company shall deposit with the Trustee, in
trust, funds sufficient to pay at maturity or upon redemption all of the Debt
Securities of such series (other than any Debt Securities of such series which
shall have been mutilated, destroyed, lost or stolen and which shall have been
replaced or paid as provided in Section 2.07) not theretofore cancelled or
delivered to the Trustee for cancellation, including principal and premium, if
any, and interest, if any, due or to become due to such date of maturity or
redemption date, as the case may be, but excluding, however, the amount of any
money for the payment of the principal of and premium, if any, or interest, if
any, on the Debt Securities of such series (1) theretofore deposited with the
Trustee with respect to Debt Securities of such series and repaid by the
Trustee to the Company in accordance with the provisions of Section 12.04 or
(2) paid with respect to Debt Securities of such series to any State or to the
District of Columbia pursuant to its unclaimed property or similar laws, and if
in either case the Company shall also pay or cause to be paid all other sums
payable hereunder by the Company, then this Indenture shall cease to be of
further effect with respect to the Debt Securities of such series except as to
(A) the rights of Holders of Debt Securities of such series to receive solely
from funds deposited by the Company with the Trustee, in trust as described
above in this Section 12.01, payment of the principal of, premium, if any, and
the interest, if any, on such Debt Securities when such payments are due; (B)
the Company's obligations with respect to such Debt Securities under Sections
2.06, 2.07, 4.02 and 12.03; and (C) the rights, powers, duties and immunities
of the Trustee hereunder, and the Trustee, on demand of the Company accompanied
by an Officers' Certificate and an Opinion of Counsel each stating that all
conditions precedent herein provided for relating to the satisfaction and
discharge of this Indenture have been complied with and at the cost and expense
of the Company, shall execute such instruments as may be requested by the
Company acknowledging satisfaction of and discharging this Indenture with
respect to such series of Debt Securities.
SECTION 12.02. DISCHARGE OF OBLIGATIONS. At the Company's option, either (a)
the Company shall be deemed to have been Discharged (as defined below) from its
obligations with respect to any series of Debt Securities on the ninety-first
day after the applicable conditions set forth below have been satisfied or (b)
the Company shall cease to be under any obligation to comply with any term,
provision or condition set forth in Sections 11.01 and 11.02 with respect to
any series of Debt Securities and any other covenants provided in a resolution
delivered to the Trustee pursuant to Section 2.02 hereof or an indenture
supplemental hereto with respect to such series of Debt Securities at any time
after the applicable conditions set forth below have been satisfied:
(1) the Company shall have deposited or caused to be deposited
irrevocably with the Trustee as trust funds in trust, specifically pledged
as security for, and dedicated solely to, the benefit of the Holders
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of the Debt Securities of such series (A) money in an amount, or (B) U.S.
Government Obligations which through the payment of interest and principal
in respect thereof in accordance with their terms will provide, not later
than one business day before the due date of any payment, money in an
amount, or (C) a combination of (A) and (B), sufficient, in the opinion
(with respect to (A) and (B)) of a nationally recognized firm of
independent public accountants selected by the Company expressed in a
written certification thereof delivered to the Trustee, to pay and
discharge each installment of principal (including mandatory sinking fund
payments) of, premium, if any, and interest, if any, on, the Outstanding
Debt Securities of such series on the dates such installments of principal,
premium, if any, and interest, if any, are due (taking into account any
redemption pursuant to optional sinking fund payments notice of which
redemption is provided to the Trustee at the time of the deposit referred
to in this paragraph (1));
(2) if the Debt Securities of such series are then listed on the New York
Stock Exchange, the Company shall have delivered to the Trustee an Opinion
of Counsel to the effect that the Company's exercise of its option under
this paragraph would not cause such Debt Securities to be delisted;
(3) no Event of Default with respect to the Debt Securities of such
series under Sections 6.01(a), 6.01(b), 6.01(c), or 6.01(f) of this
Indenture shall have occurred and be continuing on the date of such deposit
and the Company shall have furnished an Officer's Certificate to such
effect;
(4) the Company shall have delivered to the Trustee (a) an Opinion of
Counsel or (b) a ruling from, or published by, the Internal Revenue
Service, whichever of (a) or (b) the Company shall determine, to the effect
that Holders of the Debt Securities of such series will not recognize
income, gain or loss for Federal income tax purposes as a result of the
Company's exercise of its option under this Section 12.02 and will be
subject to Federal income tax on the same amount and in the same manner and
at the same times as would have been the case if such option had not been
exercised.
"Discharged" means, for purposes of this Section 12.02, that the Company
shall be deemed to have paid and discharged the entire indebtedness represented
by, and obligations under, the Debt Securities of such series and to have
satisfied all the obligations under this Indenture relating to the Debt
Securities of such series (and the Trustee, at the expense of the Company,
shall execute such instruments as may be requested by the Company acknowledging
the same), except (A) the rights of Holders of Debt Securities of such series
to receive, solely from the trust fund described above, payment of the
principal of, premium, if any, and the interest, if any, on such Debt
Securities when such payments are due; (B) the Company's obligations with
respect to such Debt Securities under Sections 2.06, 2.07, 4.02 and 12.03; and
(C) the rights, powers, duties and immunities of the Trustee hereunder.
SECTION 12.03. DEPOSITED MONEYS TO BE HELD IN TRUST BY TRUSTEE. All moneys
and U.S. Government Obligations deposited with the Trustee pursuant to the
provisions of Section 12.01 or 12.02 and the principal and interest in respect
of U.S. Government Obligations shall be held in trust and applied by it to the
payment, either directly or through any paying agent (including the Company if
acting as its own paying agent), to the Holders of the particular Debt
Securities for payment or redemption of which such moneys have been deposited
with the Trustee, of all sums due and to become due thereon for principal,
premium, if any, and interest, if any.
SECTION 12.04. PAYING AGENT TO REPAY MONEYS HELD. Upon the satisfaction and
discharge of this Indenture all moneys then held by any paying agent of the
Debt Securities (other than the Trustee) shall, upon demand of the Company, be
repaid to the Company (to the extent such money shall have been deposited by
the Company) or paid to the Trustee, and thereupon such paying agent shall be
released from all further liability with respect to such moneys.
SECTION 12.05. RETURN OF UNCLAIMED MONEYS. Any moneys deposited with or paid
to the Trustee or a paying agent by the Company for payment of the principal
of, premium, if any, or interest, if any, on Debt Securities of any series and
not applied but remaining unclaimed by the Holders of Debt Securities of that
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series for two years after the date upon which the principal of, premium, if
any, or interest, if any, on such Debt Securities, as the case may be, shall
have become due and payable, shall be repaid to the Company by the Trustee or
such paying agent on written demand and thereupon all liability of the Trustee
or such paying agent with respect to such money shall cease; and the Holder of
any such Debt Securities shall thereafter look only to the Company for any
payment which such Holder may be entitled to collect.
ARTICLE THIRTEEN
IMMUNITY OF INCORPORATORS, STOCKHOLDERS,
OFFICERS AND DIRECTORS
SECTION 13.01. INDENTURE AND DEBT SECURITIES SOLELY CORPORATE OBLIGATIONS. No
recourse for the payment of the principal of, premium, if any, or interest, if
any, on any Debt Security, or for any claim based thereon or otherwise in
respect thereof, and no recourse under or upon any obligation, covenant or
agreement of the Company in this Indenture or in any supplemental indenture, or
in any Debt Security, or because of the creation of any indebtedness
represented thereby, shall be had against any incorporator, stockholder,
officer or director, as such, past, present or future, of the Company or of any
successor corporation, either directly or through the Company or any successor
corporation, whether by virtue of any constitution, statute or rule of law, or
by the enforcement of any assessment or penalty or otherwise; it being
expressly understood that all such liability is hereby expressly waived and
released as a condition of, and as a consideration for, the execution of this
Indenture and the issue of the Debt Securities.
ARTICLE FOURTEEN
MISCELLANEOUS PROVISIONS
SECTION 14.01. PROVISIONS BINDING ON COMPANY'S SUCCESSORS. All the covenants,
stipulations, promises and agreements by the Company in this Indenture
contained shall bind their respective successors and assigns whether so
expressed or not.
SECTION 14.02. OFFICIAL ACTS BY SUCCESSOR CORPORATION. Any act or proceeding
by any provision of this Indenture authorized or required to be done or
performed by any board, committee or officer of the Company shall and may be
done and performed with like force and effect by the like board, committee or
officer of any corporation that shall at the time be the lawful sole successor
of the Company.
SECTION 14.03. ADDRESSES FOR NOTICES. Any notice or demand which by any
provision of this Indenture is required or permitted to be given or served by
the Trustee or by the Holders of Debt Securities on the Company may be given or
served by being deposited postage prepaid by first class mail in a post office
letter box addressed (until another address is filed by the Company with the
Trustee) to, McDonald's Corporation, Attention: Treasurer, One McDonald's
Plaza, Oak Brook, IL 60521, with a copy to the Controller. Any notice,
direction, request or demand by any Holder of Debt Securities to or upon the
Trustee shall be deemed to have been sufficiently given or made, for all
purposes, if given or made in writing at the Principal Office of the Trustee.
SECTION 14.04. GOVERNING LAW. THIS INDENTURE AND EACH DEBT SECURITY SHALL BE
GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE INTERNAL LAWS OF
THE STATE OF ILLINOIS.
SECTION 14.05. LEGAL HOLIDAYS. In any case where the date of maturity of
interest, if any, on or principal of, or premium, if any, on the Debt
Securities or the date fixed for redemption or repayment of any Debt Security
will be in the City of New York, New York, a Saturday, a Sunday, a legal
holiday or a day on which banking institutions are authorized or required by
law or executive order to close or remain closed, then payment of such
interest, if any, on or principal of or premium, if any, on the Debt Securities
need not be made on such date but may be made on the next succeeding day not in
such city, a Saturday, a Sunday, a legal holiday or a day on which banking
institutions are authorized or required by law or executive order to close or
remain closed, with the same force and effect as if made on the date of
maturity or a date fixed for redemption or repayment, and no interest shall
accrue for the period from and after such date.
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SECTION 14.06. TABLE OF CONTENTS AND HEADINGS. The table of contents and the
titles and headings of the articles and sections of this Indenture have been
inserted for convenience of reference only, are not to be considered a part
hereof, and shall in no way modify or restrict any of the terms or provisions
hereof.
SECTION 14.07. EXECUTION IN COUNTERPARTS. This Indenture may be executed in
any number of counterparts, each of which shall be an original, but such
counterparts shall together constitute but one and the same instrument.
SECTION 14.08. SEPARABILITY. In case any provision in this Indenture or in
the Debt Securities shall be invalid, illegal or unenforceable, the validity,
legality and enforceability of the remaining provisions shall not in any way be
affected or impaired thereby.
SECTION 14.09. BENEFITS. Nothing in this Indenture or in the Debt Securities,
expressed or implied, shall give to any person, other than the parties hereto
and their successors hereunder, and the Holders of the Debt Securities, any
benefit or any legal or equitable right, remedy or claim under this Indenture.
ARTICLE FIFTEEN
SUBORDINATION
SECTION 15.01. SUBORDINATION IN RIGHT OF PAYMENT TO ALL SENIOR INDEBTEDNESS.
Anything in the Debt Securities or the Indenture to the contrary
notwithstanding, the indebtedness evidenced by the Debt Securities shall be
subordinate in right of payment, to the extent and in the manner hereinafter
set forth, to all Senior Indebtedness. As used herein, "subordinate" shall mean
the following: that (i) in the event of any insolvency or bankruptcy
proceedings, and any receivership, liquidation, reorganization or other similar
proceedings in connection therewith, relative to the Company or its creditors
or its property, and in the event of any proceedings for voluntary liquidation,
dissolution or other winding up of the Company, whether or not involving
insolvency or bankruptcy proceedings, then all principal, premium, if any, and
interest on all Senior Indebtedness shall first be paid in full, or such
payment be provided for, before any payment on account of principal, premium,
if any, or interest, if any, is made by the Company upon the indebtedness
evidenced by the Debt Securities, and in any such proceedings any payment or
distribution of assets of the Company of any kind or character, whether in cash
or property or securities, which may be payable or deliverable in respect of
the Debt Securities (except for the provisions of this Article Fifteen) shall
be paid or delivered directly to the holders of such Senior Indebtedness, or
their representative or representatives or to the trustee or trustees under any
indenture pursuant to which any instruments evidencing any such Senior
Indebtedness may have been issued, pro rata, as their respective interests may
appear, for application in payment thereof, unless and until such Senior
Indebtedness shall have been paid and satisfied in full (after giving effect to
any concurrent payment or distributions, or provisions therefor, to the holders
of such Senior Indebtedness) or such payment and satisfaction shall have been
provided for; provided, however, that in the event that payment or delivery of
such cash, property or securities to the Holders of the Debt Securities is
authorized by an order or decree made by a court of competent jurisdiction in a
reorganization proceeding under any applicable law and giving effect to the
provisions hereinbefore set forth for the subordination of the Debt Securities
to the Senior Indebtedness, no payment or delivery of such cash, property or
securities shall be made to the holders of Senior Indebtedness; provided,
further, that no such delivery shall be made to the holders of Senior
Indebtedness of securities which are issued by the Company, as reorganized, or
by the corporation succeeding to the Company or acquiring its property and
assets, pursuant to a plan of reorganization or upon the dissolution or
liquidation of the Company, and which are subordinate to the payment of all
Senior Indebtedness (or securities substituted therefor) then outstanding; and
provided, further, that the provisions of this clause (i) shall not apply to a
liquidation, dissolution, or other winding up made in connection with a merger,
consolidation, sale, lease, transfer or other disposal not prohibited by
Section 11.01 of this Indenture and (ii) in the event that pursuant to Article
Six of this Indenture any Debt Security of any series is declared due and
payable because of the occurrence of an Event of Default (under circumstances
when the provisions
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of the foregoing clause (i) shall not be applicable), the Holders of the Debt
Securities of such series shall be entitled to payment from the Company only
after there shall have been payment in full on the Senior Indebtedness
outstanding at the time such Debt Security so becomes due and payable because
of such Event of Default, or such payment shall have been provided for.
In the event that, notwithstanding the provisions of this Article Fifteen,
the Trustee or any Holders of Debt Securities shall receive any payment or
distribution on the Debt Securities that because of this Article Fifteen should
not have been made to them, then such payment shall be held in trust for the
benefit of, and shall be paid over and delivered to, the holders of the Senior
Indebtedness or their representative or representatives or to the trustee or
trustees under any indenture pursuant to which any instruments evidencing any
such Senior Indebtedness may have been issued, pro rata as their respective
interests may appear, for application to the pro rata payment of all Senior
Indebtedness remaining unpaid until all such Senior Indebtedness shall have
been paid in full, after giving effect to any concurrent payment or
distribution to the holders of such Senior Indebtedness.
No present or future holder of Senior Indebtedness shall be prejudiced in his
right to enforce the subordination of the Debt Securities by any act or failure
to act on the part of the Company. Each Holder of Debt Securities by his
acceptance thereof authorizes the Trustee in his behalf to take such action as
may be necessary or appropriate to effectuate the subordination as provided in
this Article Fifteen and appoints the Trustee his attorney-in-fact for any and
all such purposes.
Nothing in this Section 15.01 shall apply to claims of, or payments to, the
Trustee under or pursuant to the provisions of Section 7.05.
SECTION 15.02. TRUSTEE MAY RELY ON CERTIFICATE OF LIQUIDATING AGENT. The
Company shall give prompt written notice to the Trustee of any dissolution,
winding up, liquidation or reorganization of the Company within the meaning of
this Article Fifteen, and shall also give prompt written notice to the Trustee
of any event which pursuant to Section 15.01 would prevent payment by the
Company on account of the principal of or premium, if any, or interest on the
Debt Securities. Upon any payment or distribution of assets of the Company
referred to in this Article Fifteen, the Trustee, subject to the requirements
of Section 315 of the Trust Indenture Act of 1939, shall be entitled to rely
upon a certificate of the receiver, trustee in bankruptcy, liquidating trustee,
agent or other person making such payment or distribution, delivered to the
Trustee or to the Holders of Debt Securities, for the purpose of ascertaining
the persons entitled to participate in such distribution, the holders of the
Senior Indebtedness and other indebtedness of the Company, the amount thereof
or payable thereon, the amount or amounts paid or distributed thereon and all
other facts pertinent thereto or to this Article Fifteen.
SECTION 15.03. COMPANY OBLIGATION TO PAY UNCONDITIONAL. The provisions of
this Article Fifteen are solely for the purpose of defining the relative rights
of the holders of Senior Indebtedness on the one hand, and the Holders of the
Debt Securities on the other hand, and nothing contained in this Article
Fifteen or elsewhere in this Indenture, or in the Debt Securities, shall
impair, as between the Company and the Holder of any Debt Security, the
obligation of the Company, which is unconditional and absolute, to pay to the
Holder thereof the principal of, premium, if any, and interest on the Debt
Securities in accordance with their terms and the terms of this Indenture, nor
shall anything herein or therein prevent the Trustee or the Holder of any Debt
Security from exercising all remedies otherwise permitted by applicable law or
hereunder or thereunder upon the occurrence of an Event of Default, subject to
the rights, if any, under this Article Fifteen of holders of Senior
Indebtedness to receive cash, property or securities of the Company otherwise
payable or deliverable to the Holders of the Debt Securities.
SECTION 15.04. NOTICE TO TRUSTEE OF EFFECTUATION OF SUBORDINATION.
Notwithstanding any of the provisions of this Article Fifteen or any other
provision of this Indenture, neither the Trustee nor any paying agent (if the
Company is not acting as its own paying agent) shall at any time be charged
with knowledge of the existence of any facts which would prohibit the making of
any payment of moneys to or by the Trustee or any such paying agent, unless and
until the Trustee or such paying agent, as the case may be, shall have
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<PAGE>
received written notice thereof from the Company or from one or more holders of
Senior Indebtedness or from any trustee therefor or representative thereof;
and, prior to the receipt of any such written notice, any paying agent and the
Trustee, subject to the requirements of Section 315 of the Trust Indenture Act
of 1939, shall be entitled in all respects to assume that no such facts exist;
provided, however, that, if three business
days prior to the date upon which by the terms hereof any such moneys may
become payable for any purpose including, without limitation, the payment of
the principal of or premium, if any, or interest on any Debt Security, the
Trustee or any paying agent, as the case may be, shall not have received with
respect to such moneys the notice provided for in this Section 15.04, then,
anything herein contained to the contrary notwithstanding, the Trustee or such
paying agent shall have full power and authority to receive such moneys and to
apply the same to the purpose for which they are received, and shall not be
affected by any notice to the contrary, which may be received by it on or after
such date.
The Trustee shall not have any fiduciary duty to any holder of Senior
Indebtedness, and shall not be liable to any such holder if it shall pay over
or distribute to the Holders of Debt Securities or the Company or any other
person, money or assets to which any holder of Senior Indebtedness shall be
entitled pursuant to this Article Fifteen or otherwise.
The Trustee shall, subject to the provisions of Section 7.01 and Section 315
of the Trust Indenture Act of 1939, be entitled to rely on the delivery to it
of a written notice by a person representing himself to be a holder of Senior
Indebtedness (or a trustee or representative on behalf of such holder) to
establish that such notice has been given by a holder of Senior Indebtedness or
a trustee or representative on behalf of such holder. In the event that the
Trustee determines in good faith that further evidence is required with respect
to the right of any person as a holder of Senior Indebtedness to participate in
any payment or distribution pursuant to the provisions of this Article Fifteen,
the Trustee may request such person to furnish evidence to the reasonable
satisfaction of the Trustee as to the amount of Senior Indebtedness held or
represented by such person, the extent to which such person is entitled to
participate in such payment or distribution and any other facts pertinent to
the rights of such person pursuant to the provisions of this Article Fifteen,
and if such evidence is not furnished the Trustee may defer any payment to such
person pending judicial determination as to the right of such person to receive
such payment.
SECTION 15.05. SENIOR INDEBTEDNESS HELD BY TRUSTEE. The Trustee shall be
entitled to all the rights set forth in this Article Fifteen in respect of any
Senior Indebtedness which may be at any time held by it to the same extent as
any other holder of Senior Indebtedness and, subject to the requirements of
Section 311 of the Trust Indenture Act of 1939, nothing in this Indenture shall
be construed to deprive the Trustee of any of its rights as such holder.
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In Witness Whereof, the parties hereto have caused this Indenture to be duly
executed and their respective corporate seals to be hereunto affixed and
attested, all as of , 1996.
MCDONALD'S CORPORATION
By __________________________________
Title:
[Corporate Seal]
Attest:
By __________________________________
Title:
FIRST UNION NATIONAL BANK
By __________________________________
Title:
[Corporate Seal]
Attest:
By __________________________________
Title:
36
<PAGE>
State of Illinois ^^ss:
County of DuPage ^^
On this day of , 1996, before me personally came , to me
personally known, who, being by me duly sworn, did depose and say that he is
of McDonald's Corporation, one of the corporations described in and
which executed the above instrument; that he knows the corporate seal of said
corporation; that the seal affixed to said instrument is such corporate seal;
that it was so affixed by authority of the Board of Directors of said
corporation, and that he signed his name thereto by like authority.
-------------------------------------
Notary Public
[NOTARIAL SEAL]
<PAGE>
Commonwealth of Pennsylvania ^^ ss:
County of ^^
On this day of , 1996, before me personally came , to me
personally known, who, being by me duly sworn, did depose and say that he is
of First Union National Bank, one of the entities described in and
which executed the above instrument; that he knows the corporate seal of said
national banking association; that the seal affixed to said instrument is such
corporate seal; that it was so affixed by authority of the Board of Directors
of said national banking association, and that he signed his name thereto by
like authority.
-------------------------------------
Notary Public
[NOTARIAL SEAL]
<PAGE>
EXHIBIT A
[FORM OF SUBORDINATED NOTE]
MCDONALD'S CORPORATION
[ADD APPLICABLE LEGENDS]
SUBORDINATED NOTE DUE
NO.............. [SPECIFY AMOUNT AND CURRENCY]
McDONALD'S CORPORATION, a corporation organized and existing under the laws
of the State of Delaware (hereinafter called the "Company", which term includes
any successor corporation under the Indenture hereinafter referred to), for
value received, hereby promises to pay to the Person in whose name this Note is
registered or registered assigns, the principal sum of [SPECIFY AMOUNT AND
CURRENCY] on and to pay interest thereon from or from the
most recent interest payment date to which interest has been paid or duly
provided for, [semi-annually] on [and ], in each year, [at
the rate of % per annum] or [a rate determined by (specify method) until the
principal hereof is paid or such payment is duly provided for. The interest so
payable and punctually paid or duly provided for, on any interest payment date
will, as provided in said Indenture, be paid to the Person in whose name this
Note is registered at the close of business on the record date for such
interest, which shall be the day, whether or not a business day, of
the calendar month next preceding an interest payment date. Payment of the
principal of (and premium, if any, on) and interest on this Note will be made
at the designated office or agency of the Company maintained for such purpose
in , in [SPECIFY CURRENCY] 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 Debt Security register. Any interest not so punctually paid or
duly provided for shall be payable as provided in the Indenture.
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 in this place.
Unless the certificate of authentication hereon has been executed by the
Trustee referred to on the reverse hereof (or by an Authenticating Agent, as
provided in the Indenture) 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, McDonald's Corporation has caused this Instrument to be
signed in its corporate name by its Chairman of the Board or its President or
one of its Vice Presidents manually or in facsimile and a facsimile of its
corporate seal to be imprinted hereon and attested by the manual or facsimile
signature of its Secretary or one of its Assistant Secretaries.
Dated: McDonald's Corporation
By __________________________________
Attest:
- -------------------------------------
<PAGE>
CERTIFICATE OF AUTHENTICATION
This is one of the Debt Securities of the series designated therein provided
for in the within-mentioned Indenture.
By __________________________________
Authorized Representative
[FORM OF REVERSE OF SUBORDINATED NOTE]
This Note is one of a duly authorized issue of debentures, notes or other
evidences of indebtedness of the Company (herein called "Debt Securities") of a
series hereinafter specified, all issued and to be issued under an Indenture
dated as of , 1996 (herein called the "Indenture"), between the Company
and First Union National Bank, as Trustee (herein called the "Trustee", which
term includes any successor Trustee under the Indenture), to which Indenture
and all indentures supplemental thereto reference is hereby made for a
statement of the respective rights thereunder of the Company, the Trustee and
the Holders of the Debt Securities and the terms upon which the Debt Securities
are, and are to be, authenticated and delivered. The Debt Securities may be
issued in one or more series, which different series may be issued in various
currencies, various aggregate principal amounts, may mature at different times,
may bear interest (if any) at different rates, may be subject to different
sinking, purchase or analogous funds (if any), may be subject to different
covenants and Events of Default and may otherwise vary as in the Indenture
provided. This Note is one of a series of the Company designated as its
Subordinated Notes due (herein called the "Notes"), limited in aggregate
principal amount to [SPECIFY AMOUNT AND CURRENCY].
[The Notes may be redeemed, at the option of the Company, as a whole or from
time to time in part, on any date on or after and prior to maturity,
upon mailing a notice of such redemption not less than 30 nor more than 60 days
prior to the date fixed for redemption to the Holders of Notes to be redeemed,
as provided in the Indenture, at % of the principal amount together with
accrued interest to the date fixed for redemption.]
[In the event of redemption of this Note in part only, a new Note or Notes
for the unredeemed portion hereof will be issued in the name of the Holder
hereof upon the cancellation hereof.]
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 indebtedness evidenced by this Note is, to the extent and the manner
provided in the Indenture, subordinate in right of payment to the prior payment
in full of all Senior Indebtedness of the Company. Each Holder of this Note, by
accepting the same, agrees to and shall be bound by such provisions of the
Indenture.
The Indenture contains provisions permitting the Company and the Trustee,
with the consent of the Holders of not less than 66 2/3% in aggregate principal
amount of each series of the Debt Securities at the time outstanding (as
defined in the Indenture) to be affected (each series voting as a class),
evidenced as in the Indenture provided, to execute supplemental indentures
adding any provisions to or changing in any manner or eliminating any of the
provisions of the Indenture or of any supplemental indenture or modifying in
any manner the rights of the Holders of the Debt Securities of all such series;
provided, however, that no such supplemental indenture shall, among other
things, (i) extend the fixed maturity of any Debt Security, or reduce the rate
or extend the time of payment of interest thereon, or reduce the principal
amount or premium if any, thereon or make the principal thereof, or premium, if
any, or interest, if any, thereon payable in any coin or currency other than
that hereinabove provided, without the consent of the Holder of each Debt
Security so affected or reduce the amount of principal of an Original Issue
Discount Security that would be due and payable upon acceleration of maturity
thereof, or (ii) reduce the aforesaid percentage of Debt Securities the Holders
of which are required to consent to any such supplemental indenture, without
the
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<PAGE>
consent of the Holders of each Debt Security so affected. The Indenture also
contains provisions permitting the Holders of a majority in aggregate principal
amount of the Notes at the time Outstanding, as defined in the Indenture, on
behalf of the Holders of all the Notes, to waive compliance by the Company with
certain provisions of the Indenture and certain past defaults under the
Indenture and their consequences. Any such consent or waiver by the Holder of
this 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 therefor 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 therefor 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 time, place, and rate, and in the coin or currency, herein prescribed.
As provided in the Indenture and subject to certain limitations therein set
forth, this Note is transferable on the Debt Security register of the Company,
upon surrender of this Note for transfer at the office or agency as may be
designated or maintained by the Company for such purpose in , duly
endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Company and the Trustee, 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 denominations of [SPECIFY AMOUNT AND CURRENCY] and
any integral multiple 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
or premium, if any, 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, stockholder, officer or director, as such, past, present or
future, of the Company or of any successor corporation, whether by virtue of
any constitution, statute or rule of law, or by the enforcement of any
assessment or penalty or otherwise, all such liability being expressly waived
and released by the acceptance hereof and as part of the consideration for the
issue hereof.
All terms used in this Note which are defined in the Indenture shall have the
meanings assigned to them in the Indenture.
3
<PAGE>
EXHIBIT 5
OCTOBER 15, 1996
Securities and Exchange Commission
Judiciary Plaza
450 Fifth Street, N.W.
Washington, DC 20549
Re:
McDonald's Corporation
Registration Statement on Form S-3
Dear Ladies and Gentlemen:
In my capacity as Vice President, Associate General Counsel and Secretary of
McDonald's Corporation (the "Company"), a Delaware corporation, I have
supervised and participated in the legal proceedings and matters relating to
the registration under the Securities Act of 1933, as amended (the "Securities
Act") of $1,000,000,000 in proposed maximum aggregate offering price of Debt
Securities to be issued under a Senior Debt Securities Indenture or a
Subordinated Debt Securities Indenture (the "Indentures"), as supplemented,
between the Company and First Union National Bank, as trustee (the "Trustee"),
all as more fully described in the registration statement on Form S-3 to which
this opinion is an exhibit (the "Registration Statement").
I am an attorney licensed to practice law in the State of Illinois and my
opinion is expressly limited to the laws of the State of Illinois, the General
Corporation Law of the State of Delaware and the federal laws of the United
States of America.
I advise you that in my opinion:
1. The Company is a corporation duly organized and existing under and by
virtue of the laws of the State of Delaware and has adequate corporate
powers to own and operate its property and to transact the business in
which it is engaged.
2. When (a) the Registration Statement has become effective under the
Securities Act, and provided no stop order shall have been issued by the
Securities and Exchange Commission relating thereto, and (b) the Debt
Securities are qualified for sale (or exempt) under the securities laws of
the states in which offered for sale, then upon the execution of the
Indentures, any indenture or indentures supplemental thereto, and the
Underwriting Agreement and the issuance and sale of the Debt Securities in
conformance with the provisions of the applicable Indenture, as
supplemented, and the Underwriting Agreement, the Debt Securities will be,
when sold, duly authorized, legally issued, fully paid and non-assessable
obligations of the Company, entitled to all of the benefits of the
applicable Indenture, as supplemented, subject to applicable bankruptcy,
insolvency, reorganization, moratorium or other similar laws affecting the
enforceability of creditor's rights generally and by the effect of general
principles of equity, regardless of whether enforceability is considered in
a proceeding at law or in equity.
I am aware that I am named in the Registration Statement as counsel for the
Company and hereby consent to such use of my name.
Very truly yours,
/s/ Gloria Santona
-------------------------------------
Gloria Santona
<PAGE>
EXHIBIT 23(A)
CONSENT OF INDEPENDENT AUDITORS
We consent to the reference to our firm under the caption "Experts" in the
Registration Statement (Form S-3) and related Prospectus of McDonald's
Corporation for the registration of $1,000,000,000 Debt Securities and to the
incorporation by reference therein of our report dated January 25, 1996, with
respect to the consolidated financial statements of McDonald's Corporation
included in the Company's Annual Report on Form 10-K for the year ended
December 31, 1995, filed with the Securities and Exchange Commission.
/s/ ERNST & YOUNG
Chicago, Illinois
October 15, 1996
<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM T-1
STATEMENT OF ELIGIBILITY UNDER THE TRUST INDENTURE ACT OF 1939 OF A
CORPORATION DESIGNATED TO ACT AS TRUSTEE
CHECK IF AN APPLICATION TO DETERMINE ELIGIBILITY OF A TRUSTEE
PURSUANT TO SECTION 305(b)(2) ___
FIRST UNION NATIONAL BANK
(Exact Name of Trustee as Specified in its Charter)
22-1147033
(I.R.S. Employer Identification No.)
101 NORTHSIDE PLAZA, ELKTON, MARYLAND
(Address of Principal Executive Offices)
21921
(Zip Code)
FIRST UNION NATIONAL BANK
123 SOUTH BROAD STREET
PHILADELPHIA, PA 19109
ATTENTION: CORPORATE TRUST ADMINISTRATION
(215) 985-6000
(Name, address and telephone number of Agent for Service)
McDONALD'S CORPORATION
(Exact Name of Obligor as Specified in its Charter)
DELAWARE
(State or other jurisdiction of Incorporation or Organization)
36-2361282
(I.R.S. Employer Identification No.)
ONE McDONALD'S PLAZA, OAK BROOK, ILLINOIS
(Address of Principal Executive Offices)
60521
(Zip Code)
DEBT SECURITIES
Application relates to all securiuties registered pursuant
to the delayed offering registration statement
(Title of Indenture Securities)
<PAGE>
1. General Information.
Furnish the following information as to the trustee:
a) Name and address of each examining or supervisory authority to which it is
subject:
Comptroller of the Currency
United States Department of the Treasury
Washington, D.C. 20219
Federal Reserve Bank (3rd District)
Philadelphia, Pennsylvania 19106
Federal Deposit Insurance Corporation
Washington, D.C. 20429
b) Whether it is authorized to exercise corporate trust powers.
Yes.
2. Affiliations with Obligor.
If the Obligor is an affiliate of the trustee, describe each such
affiliation.
None.
3. Voting Securities of the trustee.
Furnish the following information as to each class of voting securities of
the trustee:
Not applicable - see answer to Item 13.
4. Trusteeships under other indentures.
If the trustee is a trustee under another indenture under which any other
securities, or certificates of interest or participation in any other
securities, of the Obligor are outstanding, furnish the following information:
Not applicable - see answer to Item 13.
5. Interlocking directorates and similar relationships with the obligor or
underwriters.
If the trustee or any of the directors or executive officers of the trustee
is a director, officer, partner, employee, appointee, or representative of the
obligor or of any underwriter for the obligor, identify each such person having
any such connection and state the nature of each such connection.
Not applicable - see answer to Item 13.
6. Voting securities of the trustee owned by the obligor or its officials.
<PAGE>
Furnish the following information as to the voting securities of the
trustee owned beneficially by the obligor and each director, partner, and
executive officer of the obligor:
Not applicable - see answer to Item 13.
7. Voting securities of the trustee owned by underwriters or their officials.
Furnish the following information as to the voting securities of the
trustee owned beneficially by each underwriter for the obligor and each
director, partner, and executive officer of each such underwriter:
Not applicable - see answer to Item 13.
8. Securities of the obligor owned or held by the trustee.
Furnish the following information as to securities of the obligor owned
beneficially or held as collateral security for obligations in default by the
trustee:
Not applicable - see answer to Item 13.
9. Securities of underwriters owned or held by the trustee.
If the trustee owns beneficially or holds as collateral security for
obligations in default any securities of an underwriter for the obligor, furnish
the following information as to each class of securities of such underwriter any
of which are so owned or held by the trustee:
Not applicable - see answer to Item 13.
10. Ownership or holdings by the trustee of voting securities of certain
affiliates or security holders of the obligor.
If the trustee owns beneficially or holds as collateral security for
obligations in default voting securities of a person who, to the knowledge of
the trustee (1) owns 10 percent or more of the voting stock of the obligor or
(2) is an affiliate, other than a subsidiary, of the obligor, furnish the
following information as to the voting securities of such person:
Not applicable - see answer to Item 13.
11. Ownership or holdings by the trustee of any securities of a person owning
50 percent or more of the voting securities of the obligor.
If the trustee owns beneficially or holds as collateral security for
obligations in default any securities of a person who, to the knowledge of the
trustee, owns 50 percent or more of the voting securities of the obligor,
furnish the following information as to each class of securities of such person
any of which are so owned or held by the trustee:
Not applicable - see answer to Item 13.
12. Indebtedness of the obligor to the trustee.
Except as noted in the instructions, if the obligor is indebted
to
<PAGE>
the trustee, furnish the following information:
Not applicable - see answer to Item 13.
13. Defaults by the obligor.
(a) State whether there is or has been a default with respect to the
securities under this indenture. explain the nature of any such default.
None.
(b) If the trustee is a trustee under another indenture under which any
other securities, or certificates of interest or participation in any other
securities, of the obligor are outstanding, or is trustee for more than one
outstanding series of securities under the indenture, state whether there has
been a default under any such indenture or series, identify the indenture or
series affected, and explain the nature of any such default.
None.
14. Affiliations with the underwriters.
If any underwriter is an affiliate of the trustee, describe each such
affiliation.
Not applicable - see answer to Item 13.
15. Foreign trustee.
Identify the order or rule pursuant to which the trustee is authorized to
act as sole trustee under indentures qualified or to be qualified under the act.
Not applicable - trustee is a national banking association organized under
the laws of the United States.
16. List of Exhibits.
List below all exhibits filed as part of this statement of eligibility.
1. Copy of Articles of Association of the trustee as now in effect.**
- --
2. Copy of the Certificate of the Comptroller of the Currency date dated
- -- January 11, 1994, evidencing the authority of the trustee to transact
business.*
3. Copy of the Certification of Fiduciary Powers of the trustee by the
- -- Office of the Comptroller of the Currency dated July 24, 1992.*
4. Copy of existing by-laws of the trustee.**
- --
5. Copy of each indenture referred to in Item 4, if the obligor is in
- -- default.
-- Not Applicable.
X 6. Consent of the trustee required by Section 321(b) of the Act.
- --
X 7. Copy of report of condition of the trustee at the close of business
- -- on June 30, 1996, published pursuant to the requirements of its
supervising authority.
<PAGE>
__ 8. Copy of any order pursuant to which the foreign trustee is authorized to
act as sole trustee under indentures qualified or to be qualified under
the Act.
- Not Applicable
__ 9. Consent to service of process required of foreign trustees pursuant to
Rule 10a-4 under the Act.
- Not Applicable
_____________________
*Previously filed with the Securities Exchange Commission on February
11, 1994 as an Exhibit to Form T-1 in connection with Registration Statement
Number 22-73340 and ** previously filed with the Securities Exchange Commission
on March 6,1996 with Registration Statement Number 333-1102 and incorporated
herein by reference
NOTE
The trustee disclaims responsibility for the accuracy or completeness of
information contained in this Statement of Eligibility and Qualification not
known to the trustee and not obtainable by it through reasonable investigation
and as to which information it has obtained from the obligor and has had to rely
or will obtain from the principal underwriters and will have to rely.
SIGNATURE
Pursuant to the requirements of the Trust Indenture Act of 1939, the
trustee, First Union National Bank, a national banking association organized and
existing under the laws of the United States of America, has duly caused this
Statement of Eligibility and Qualification to be signed on its behalf by the
undersigned, thereunto duly authorized, all in the City of Philadelphia and
Commonwealth of Pennsylvania, on the 2nd day of October, 1996.
FIRST UNION NATIONAL BANK
By: /s/ John H. Clapham
John H. Clapham
Vice President
<PAGE>
EXHIBIT 6
CONSENT OF TRUSTEE
Pursuant to the requirements of Section 321(b) of the Trust Indenture Act
of 1939, and in connection with the proposed issue of McDonald`s Corporation,
Debt Securities, First Union National Bank, hereby consents that reports of
examinations by Federal, State, Territorial or District authorities may be
furnished by such authorities to the Securities and Exchange Commission upon
request therefor.
FIRST UNION NATIONAL BANK
By: /s/John H. Clapham
John H. Clapham
Vice President
Philadelphia, Pennsylvania
October 2, 1996
<PAGE>
REPORT OF CONDITION EXHIBIT 7
Consolidating domestic and foreign subsidiaries of the First Union National Bank
of Elkton in the state of Maryland, at the close of business on June 30, 1996
published in response to call made by Comptroller of the Currency, under title
12, United States Code, Section 161. Charter Number 33869 Comptroller of the
Currency Northeastern District.
STATEMENT OF RESOURCES AND LIABILITIES
<TABLE>
<CAPTION>
ASSETS
Thousand of Dollars
-------------------
<S> <C>
Cash and balance due from depository institutions:
Noninterest-bearing balances and currency and coin............. 1,772,664
Interest-bearing balances...................................... 124,929
Securities....................................................... /////////
Hold-to-maturity securities.................................... 531,451
Available-for-sale securities.................................. 5,080,485
Federal funds sold and securities purchased under agreements //////////
to resell in domestic offices of the bank and of it //////////
Edge and Agreement subsidiaries, and in IBFs: //////////
Federal funds sold............................................. 26,481
Securities purchased under agreements to resell................ 223,204
Loans and lease financing receivables:
Loan and leases, net of unearned income......20,255,779
LESS: Allowance for loan and lease losses.......412,158
LESS: Allocated transfer risk reserve.................0
Loans and leases, net of unearned income, allowance, and
reserve........................................................ 19,843,621
Assets held in trading accounts.................................. 0
Premises and fixed assets (including capitalized leases)......... 390,936
Other real estate owned.......................................... 58,628
Investment in unconsolidated subsidiaries and associated //////////
companies...................................................... 26,343
Customer's liability to this bank on acceptances outstanding..... 51,547
Intangible assets................................................ 747,578
Other assets..................................................... 798,531
Total assets..................................................... 29,676,398
LIABILITIES
Deposits:
In domestic offices......................................... 24,056,990
Noninterest-bearing......................4,453,778
Interest-bearing........................19,603,212
In foreign offices, Edge and Agreement subsidiaries,
and IBFs.................................................. 308,954
Noninterest-bearing..............................0
Interest-bearing...........................308,954
Federal funds purchased and securities sold under agreements
to repurchase in domestic offices of the bank and of its
Edge and Agreement subsidiaries, and IBFs
Federal fund purchased...................................... 389,394
Securities sold under agreements to repurchase.............. 820,273
Demand notes issued to the U.S. Treasury......................... 113,120
Trading liabilities.............................................. 0
Other borrowed money:............................................ /////////
With original maturity of one year or less.................. 6,829
With original maturity of more than one year................ 10,338
Mortgage indebtedness and obligations under capitalized leases 16,467
Bank's liability on acceptances executed and outstanding......... 51,827
Subordinated notes and debentures................................ 175,000
Other liabilities................................................ 708,654
Total liabilities................................................ 26,657,846
Limited-life preferred stock and related surplus................. 0
EQUITY CAPITAL
Perpetual preferred stock and related surplus.................... 160,540
Common Stock..................................................... 452,156
Surplus.......................................................... 1,300,080
Undivided profits and capital reserves........................... 1,150,698
Net unrealized holding gains (losses) on available-for-sale /////////
securities..................................................... (44,922)
Cumulative foreign currency translation adjustments.............. 0
Total equity capital............................................. 3,018,552
Total liabilities, limited-life preferred stock and equity....... /////////
capital........................................................ 29,676,398
</TABLE>
