<PAGE>
================================================================================
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
_____________
FORM 8-K
_____________
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): OCTOBER 29, 1996
----------------
NATIONAL DATA CORPORATION
(Exact name of registrant as specified in its charter)
DELAWARE 001-12392 58-977458
(State or other jurisdiction (Commission File Number) (IRS Employer
of incorporation) Identification No.)
NATIONAL DATA PLAZA
ATLANTA, GEORGIA 30329-2010
(Address of Principal Executive Offices)
404-728-2000
(Registrant's telephone number, including area code)
===============================================================================
<PAGE>
ITEM 5. OTHER EVENTS.
National Data Corporation (the "Company") is filing this Current Report on
Form 8-K so as to file with the Securities and Exchange Commission certain items
that are to be incorporated by reference into its Registration Statement
No. 333-13653, as well as to file amendments to the Company's Certificate of
Incorporation and certain material contracts.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.
Exhibits:
3.1 Certificate of Amendment to Certificate of Incorporation of the
Registrant, dated October 28, 1996.
3.2 Amended Certificate of Designations of the Registrant, dated
October 28, 1996.
4.1 Form of Indenture between the Company and The First National Bank
of Chicago, as Trustee, relating to the Company's ___% Convertible
Subordinated Notes due 2003.
4.2 Form of the Company's ___% Convertible Subordinated Note due 2003
(included in the Form of Indenture filed as Exhibit 4.1 hereto).
5 Opinion of Alston & Bird relating to the Company's ___% Convertible
Subordinated Notes due 2003.
10.1 Amendment No. 2 dated as of October 23, 1996, to the Credit
Agreement dated as of May 31, 1996, between the Company and
Wachovia Bank of Georgia, N.A., as Agent.
10.2 Amendment No. 1 dated as of October 23, 1996, to the Credit
Agreement dated as of July 16, 1996, between Global Payment Systems
LLC and The First National Bank of Chicago, as Agent.
<PAGE>
SIGNATURES
----------
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
National Data Corporation
-------------------------
(Registrant)
Date: October 28, 1996 By: /s/ E. Michael Ingram
---------------------
E. Michael Ingram
General Counsel
<PAGE>
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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
___________
EXHIBITS
TO
CURRENT REPORT
ON
FORM 8-K
DATED: October 29, 1996
NATIONAL DATA CORPORATION
===============================================================================
<PAGE>
INDEX TO EXHIBITS
-----------------
3.1 Certificate of Amendment to Certificate of Incorporation of the
Registrant, dated October 28, 1996.
3.2 Amended Certificate of Designations of the Registrant, dated
October 28, 1996.
4.1 Form of Indenture between the Company and The First National Bank
of Chicago, as Trustee, relating to the Company's ___% Convertible
Subordinated Notes due 2003.
4.2 Form of the Company's ___% Convertible Subordinated Note due 2003
(included in the Form of Indenture filed as Exhibit 4.1 hereto).
5 Opinion of Alston & Bird relating to the Company's ___% Convertible
Subordinated Notes due 2003.
10.1 Amendment No. 2 dated as of October 23, 1996, to the Credit
Agreement dated as of May 31, 1996, between the Company and
Wachovia Bank of Georgia, N.A., as Agent.
10.2 Amendment No. 1 dated as of October 23, 1996, to the Credit
Agreement dated as of July 16, 1996, between Global Payment Systems
LLC and The First National Bank of Chicago, as Agent.
<PAGE>
EXHIBIT 3.1
CERTIFICATE OF AMENDMENT
------------------------
OF
--
NATIONAL DATA CORPORATION
-------------------------
NATIONAL DATA CORPORATION (the "Corporation"), a corporation organized and
existing under and by virtue of the General Corporation Law of the State of
Delaware, DOES HEREBY CERTIFY:
1.
The Board of Directors of the Corporation, at a meeting duly called and
held on July 11, 1996, unanimously adopted resolutions approving a proposed
amendment to the Certificate of Incorporation, declaring such amendment to be
advisable and directing that such amendment be considered at the Annual Meeting
of Stockholders of the Corporation to be held on October 24, 1996. Such
resolutions approved the deletion of Section 1.1 of Article Fourth of the
Certificate of Incorporation in its entirety and the substitution in lieu
thereof of a new Section 1.1 of Article Fourth as follows:
"1.1 The Corporation shall have the authority to be exercised by its
Board of Directors to issue 100,000,000 shares of Common Stock of the par
value of $.125 per share (the "Common Stock") and 1,000,000 shares of
Preferred Stock of the par value of $1.00 per share (the "Preferred
Stock")."
2.
The foregoing amendment to the Certificate of Incorporation of the
Corporation was submitted to the stockholders of the Corporation for approval at
the Annual Meeting of Stockholders of the Corporation duly called and held on
October 24, 1996. Notice of the Annual Meeting of Stockholders was duly given
in accordance with Sections 222 and 242 of the General Corporation Law of the
State of Delaware. The foregoing amendment was duly adopted at the Annual
Meeting of Stockholders held on October 24, 1996 by the holders of a majority of
the issued and outstanding shares of Common Stock of the Corporation in
<PAGE>
accordance with Section 242 of the General Corporation Law of the State of
Delaware.
IN WITNESS WHEREOF, National Data Corporation has caused this Certificate
of Amendment to be executed by its duly authorized officer, this 28th day of
October, 1996.
NATIONAL DATA CORPORATION
By: /s/ E. Michael Ingram
---------------------
E. Michael Ingram
General Counsel and Secretary
-2-
<PAGE>
EXHIBIT 3.2
AMENDED
CERTIFICATE OF DESIGNATIONS
OF
NATIONAL DATA CORPORATION
-------------------------
NATIONAL DATA CORPORATION (the "Corporation"), a corporation organized and
existing under and by virtue of the General Corporation Law of the State of
Delaware, DOES HEREBY CERTIFY:
1.
The Board of Directors of the Corporation, at meetings duly called and
held on May 15, 1995, July 19, 1995, and July 11, 1996, unanimously adopted
resolutions approving a proposed amendment to the Certificate of Designations of
Series A Junior Participating Preferred Stock of the Corporation. Such
resolutions approved the deletion of Section 1 of the Certificate of
Designations in its entirety and the substitution in lieu thereof of a new
Section 1 as follows:
"Section 1. Designation and Amount. The shares of such series shall
----------------------
be designated as 'Series A Junior Participating Preferred Stock' (the
'Series A Preferred Stock') and the number of shares constituting the
Series A Preferred Stock shall be 1,000,000. Such number of shares may be
increased or decreased by resolution of the Board of Directors; provided,
--------
that no decrease shall reduce the number of shares of Series A Preferred
Stock to a number less than the number of shares then outstanding plus the
number of shares reserved for issuance upon the exercise of outstanding
options, rights or warrants or upon the conversion of any outstanding
securities issued by the Corporation convertible into Series A Preferred
Stock."
IN WITNESS WHEREOF, National Data Corporation has caused this Certificate
of Amendment of Certificate of Designations to be executed by its duly
authorized officer, this 28th day of October, 1996.
NATIONAL DATA CORPORATION
By: /s/ E. Michael Ingram
---------------------
E. Michael Ingram
General Counsel and Secretary
<PAGE>
Exhibit 4.1
- --------------------------------------------------------------------------------
NATIONAL DATA CORPORATION
AND
The First National Bank of Chicago
TRUSTEE
____________
INDENTURE
Dated as of November __, 1996
____________
$125,000,000
___% CONVERTIBLE SUBORDINATED NOTES
DUE NOVEMBER __, 2003
- --------------------------------------------------------------------------------
<PAGE>
Certain Sections of this Indenture relating to
Sections 310 through 318 of the
Trust Indenture Act of 1939:
<TABLE>
<CAPTION>
Trust Indenture Indenture
Act Section Section
- --------------- -----------
<S> <C>
Section 310(a)(1) 609
(a)(2) 609
(a)(3) Not Applicable
(a)(4) Not Applicable
(b) 608
610
Section 311(a) 613
(b) 613
Section 312(a) 701 702(a)
(b) 702(b)
(c) 702(c)
Section 313(a) 703(a)
(b) 703(a)
(c) 703(a)
(d) 703(b)
Section 314(a) 704
(b) Not Applicable
(c)(1) 102
(c)(2) 102
(c)(3) Not Applicable
(d) Not Applicable
(e) 102
Section 315(a) 601
603(a)
(b) 602
(c) 601
(d) 601
(e) 514
Section 316(a)(1)(A) 512
(a)(1)(B) 513
(a)(2) Not Applicable
(b) 508
(c) 104
Section 317(a)(1) 503
(a)(2) 504
(b) 1003
Section 318(a) 107
</TABLE>
__________
Note: This reconciliation and tie shall not, for any purpose, be deemed to
be a part of the indenture.
<PAGE>
TABLE OF CONTENTS
<TABLE>
<CAPTION>
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ARTICLE ONE
DEFINITIONS AND OTHER PROVISIONS
OF GENERAL APPLICATION
<S> <C>
SECTION 101. Definitions 1
Act 2
Affiliate 2
Agent Member 2
Applicable Procedures 2
Authenticating Agent 2
Board of Directors 2
Board Resolution 2
Business Day 3
Change of Control 3
Closing Price Per Share 3
Code 3
Commission 3
Common Stock 3
common stock 3
Company 3
Company Notice 4
Company Order 4
Company Request 4
Constituent Person 4
Conversion Agent 4
Conversion Price 4
Conversion Rate 4
Corporate Trust Office 4
corporation 4
Custodian 4
Defaulted Interest 4
Depositary 4
Designated Senior Indebtedness 4
</TABLE>
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Note: This table of contents shall not, for any purpose, be deemed to be a
part of the indenture.
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<TABLE>
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<S> <C>
Distribution Date 4
DTC 5
Event of Default 5
Exchange Act 5
Expiration Date 5
Expiration Time 5
Global Security 5
Holder 5
Indenture 5
Interest Payment Date 5
Maturity 5
Non-electing Share 5
Notice of Default 5
Officers' Certificate 5
Opinion of Counsel 6
Outstanding 6
Paying Agent 7
Payment Blockage Notice 7
Person 7
Predecessor Security 7
Record Date Period 7
Record Date 7
Redemption Date 7
Redemption Price 7
Reference Date 7
Regular Record Date 7
Rights 7
Rights Agreement 7
Repurchase Date 7
Repurchase Price 7
Responsible Officer 7
Securities 8
Securities Act 8
Security Register 8
Security Registrar 8
Senior Indebtedness 8
Special Record Date 9
</TABLE>
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Note: This table of contents shall not, for any purpose, be deemed to be a
part of the indenture.
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<PAGE>
<TABLE>
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<S> <C>
Stated Maturity 9
Subsidiary 9
Trading Days 9
Trustee 9
Trust Indenture Act 9
Vice President 9
SECTION 102. Compliance Certificates and Opinions 10
SECTION 103. Form of Documents Delivered to Trustee 10
SECTION 104. Acts of Holders; Record Dates 11
SECTION 105. Notices, Etc., to Trustee and Company 13
SECTION 106. Notice to Holders; Waiver 13
SECTION 107. Conflict with Trust Indenture Act 14
SECTION 108. Effect of Headings and Table of Contents 14
SECTION 109. Successors and Assigns 14
SECTION 110. Separability Clause 14
SECTION 111. Benefits of Indenture 14
SECTION 112. Governing Law 15
SECTION 113. Legal Holidays 15
ARTICLE TWO
SECURITY FORMS
SECTION 201. Forms Generally 15
SECTION 202. Form of Face of Security 15
SECTION 203. Form of Reverse of Security 18
SECTION 204. Form of Trustee's Certificate of Authentication 25
SECTION 205. Form of Conversion Notice 25
SECTION 206. Form of Assignment 26
ARTICLE THREE
THE SECURITIES
SECTION 301. Title and Terms 27
SECTION 302. Denominations 28
SECTION 303. Execution, Authentication, Delivery and Dating 28
</TABLE>
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Note: This table of contents shall not, for any purpose, be deemed to be a
part of the indenture.
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<PAGE>
<TABLE>
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<S> <C>
SECTION 304. Temporary Securities 28
SECTION 305. Registration, Registration of Transfer and Exchange 29
SECTION 306. Mutilated, Destroyed, Lost and Stolen Securities 31
SECTION 307. Payment of Interest; Interest Rights Preserved 32
SECTION 308. Persons Deemed Owners 33
SECTION 309. Cancellation 33
SECTION 310. Computation of Interest 33
ARTICLE FOUR
SATISFACTION AND DISCHARGE
SECTION 401. Satisfaction and Discharge of Indenture 34
SECTION 402. Application of Trust Money 35
ARTICLE FIVE
REMEDIES
SECTION 501. Events of Default 35
SECTION 502. Acceleration of Maturity; Rescission and Annulment 37
SECTION 503. Collection of Indebtedness and Suits for Enforcement by Trustee 38
SECTION 504. Trustee May File Proofs of Claim 39
SECTION 505. Trustee May Enforce Claims Without Possession of Securities 40
SECTION 506. Application of Money Collected 40
SECTION 507. Limitation or Suits 40
SECTION 508. Unconditional Right of Holders to Receive Principal, Premium and Interest
and to Convert 41
SECTION 509. Restoration of Rights and Remedies 41
SECTION 510. Rights and Remedies Cumulative 41
SECTION 511. Delay or Omission Not Waiver 42
SECTION 512. Control by Holders 42
SECTION 513. Waiver of Past Defaults 42
SECTION 514. Undertaking for Costs 43
SECTION 515. Waiver of Stay or Extension Laws 43
</TABLE>
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Note: This table of contents shall not, for any purpose, be deemed to be a
part of the indenture.
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<PAGE>
<TABLE>
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<S> <C>
ARTICLE SIX
THE TRUSTEE
SECTION 601. Certain Duties and Responsibilities 43
SECTION 602. Notice of Defaults 45
SECTION 603. Certain Rights of Trustee 45
SECTION 604. Not Responsible for Recitals or Issuance of Securities 46
SECTION 605. May Hold Securities 46
SECTION 606. Money Held in Trust 46
SECTION 607. Compensation and Reimbursement 46
SECTION 608. Disqualification; Conflicting Interests 47
SECTION 609. Corporate Trustee Required; Eligibility 47
SECTION 610. Resignation and Removal; Appointment of Successor 48
SECTION 611. Acceptance of Appointment by Successor 49
SECTION 612. Merger, Conversion, Consolidation or Succession to Business 49
SECTION 613. Preferential Collection of Claims Against Company 50
SECTION 614. Appointment of Authenticating Agent 50
ARTICLE SEVEN
HOLDERS' LISTS AND REPORTS BY TRUSTEE AND COMPANY
SECTION 701. Company to Furnish Trustee Names and Addresses of Holders 51
SECTION 702. Preservation of Information; Communications to Holders 52
SECTION 703. Reports by Trustee 52
SECTION 704. Reports by Company 52
ARTICLE EIGHT
CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE
SECTION 801. Company May Consolidate, Etc., Only on Certain Terms 53
SECTION 802. Successor Substituted 54
</TABLE>
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Note: This table of contents shall not, for any purpose, be deemed to be a
part of the indenture.
-v-
<PAGE>
<TABLE>
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<S> <C>
ARTICLE NINE
SUPPLEMENTAL INDENTURES
SECTION 901. Supplemental Indentures Without Consent of Holders 54
SECTION 902. Supplemental Indentures with Consent of Holders 55
SECTION 903. Execution of Supplemental Indentures 56
SECTION 904. Effect of Supplemental Indentures 56
SECTION 905. Conformity with Trust Indenture Act 56
SECTION 906. Reference in Securities to Supplemental Indentures 56
SECTION 907. Notice of Supplemental Indentures 56
ARTICLE TEN
COVENANTS
SECTION 1001. Payment of Principal, Premium and Interest 57
SECTION 1002. Maintenance of Office or Agency 57
SECTION 1003. Money for Security Payments to Be Held in Trust 58
SECTION 1004. Statement by Officers as to Default 59
SECTION 1005. Existence 59
SECTION 1006. Maintenance of Properties 60
SECTION 1007. Payment of Taxes and Other Claims 60
SECTION 1008. Book-Entry System 60
SECTION 1009. Waiver of Certain Covenants 60
SECTION 1010. Further Instruments and Acts 61
ARTICLE ELEVEN
REDEMPTION OF SECURITIES
SECTION 1101. Right of Redemption 61
SECTION 1102. Applicability of Article 61
SECTION 1103. Election to Redeem; Notice to Trustee 61
SECTION 1104. Selection by Trustee of Securities to Be Redeemed 61
SECTION 1105. Notice of Redemption 62
SECTION 1106. Deposit of Redemption Price 63
</TABLE>
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Note: This table of contents shall not, for any purpose, be deemed to be a
part of the indenture.
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<S> <C>
SECTION 1107. Securities Payable on Redemption Date 63
SECTION 1108. Securities Redeemed in Part 64
SECTION 1109. Conversion Arrangement on Call for Redemption 64
ARTICLE TWELVE
SUBORDINATION OF SECURITIES
SECTION 1201. Securities Subordinate to Senior Indebtedness 65
SECTION 1202. No Payments in Certain Circumstances; Payment Over
of Proceeds Upon Dissolution, Etc. 65
SECTION 1203. Prior Payment to Senior Indebtedness Upon
Acceleration of Securities 67
SECTION 1204. Reserved 67
SECTION 1205. Payment Permitted if No Default 67
SECTION 1206. Subrogation to Rights of Holders of Senior
Indebtedness 68
SECTION 1207. Provisions Solely to Define Relative Rights 68
SECTION 1208. Trustee to Effectuate Subordination 68
SECTION 1209. No Waiver of Subordination Provisions 69
SECTION 1210. Notice to Trustee 69
SECTION 1211. Reliance on Judicial Order or Certificate of
Liquidating Agent 70
SECTION 1212. Trustee Not Fiduciary for Holders of Senior
Indebtedness 70
SECTION 1213. Rights of Trustee as Holder of Senior Indebtedness;
Preservation of Trustee's Rights 71
SECTION 1214. Article Applicable to Paying Agents 71
SECTION 1215. Certain Conversions Deemed Payment 71
</TABLE>
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Note: This table of contents shall not, for any purpose, be deemed to be a
part of the indenture.
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<PAGE>
<TABLE>
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<S> <C>
ARTICLE THIRTEEN
CONVERSION OF SECURITIES
SECTION 1301. Conversion Privilege and Conversion Rate 72
SECTION 1302. Exercise of Conversion Privilege 72
SECTION 1303. Fractions of Shares 74
SECTION 1304. Adjustment of Conversion Rate 74
SECTION 1305. Notice of Adjustments of Conversion Rate 79
SECTION 1306. Notice of Certain Corporate Action 79
SECTION 1307. Company to Reserve Common Stock 80
SECTION 1308. Taxes on Conversions 81
SECTION 1309. Covenant as to Common Stock 81
SECTION 1310. Cancellation of Converted Securities 81
SECTION 1311. Provision in Case of Consolidation, Merger or Sale of Assets 81
SECTION 1312. Responsibility of Trustee for Conversion Provisions 82
ARTICLE FOURTEEN
REPURCHASE OF SECURITIES AT THE OPTION OF THE
HOLDER UPON A CHANGE OF CONTROL
SECTION 1401. Right to Require Repurchase 83
SECTION 1402. Conditions to the Company's Election to Pay the Repurchase
Price in Common Stock 84
SECTION 1403. Notices, Method of Exercising Repurchase Right, Etc. 84
SECTION 1404. Certain Definitions 87
SECTION 1405. Consolidation, Merger, Etc. 89
</TABLE>
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Note: This table of contents shall not, for any purpose, be deemed to be a
part of the indenture.
-viii-
<PAGE>
<TABLE>
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<S> <C>
ARTICLE FIFTEEN
IMMUNITY OF INCORPORATORS, STOCKHOLDERS,
OFFICERS AND DIRECTORS
SECTION 1501. Indenture and Securities Solely Corporate Obligations 89
</TABLE>
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Note: This table of contents shall not, for any purpose, be deemed to be a
part of the indenture.
-ix-
<PAGE>
INDENTURE, dated as of November __, 1996, between National Data
Corporation, a corporation duly organized and existing under the laws of the
State of Delaware (herein called the "Company"), having its principal office at
National Data Plaza, Atlanta, Georgia 30329, and The First National Bank of
Chicago, a national banking association duly organized and existing under the
laws of United States, as Trustee (herein called the "Trustee").
RECITALS OF THE COMPANY
The Company has duly authorized the creation of an issue of its ___%
Convertible Subordinated Notes Due November __, 2003 (herein called the
"Securities") of substantially the tenor and amount hereinafter set forth, and
to provide therefor the Company has duly authorized the execution and delivery
of this Indenture.
All things necessary to make the Securities, when executed by the Company
and authenticated and delivered hereunder and duly issued by the Company, the
valid obligations of the Company, and to make this Indenture a valid agreement
of the Company, in accordance with their and its terms, have been done.
Further, all things necessary to duly authorize the issuance of the Common Stock
of the Company issuable upon the conversion of the Securities, and to duly
reserve for issuance the number of shares of Common Stock issuable upon such
conversion, have been done.
NOW, THEREFORE, THIS INDENTURE WITNESSETH:
For and in consideration of the premises and the purchase of the Securities
by the Holders thereof, it is mutually agreed, for the equal and proportionate
benefit of all Holders of the Securities, as follows:
ARTICLE ONE
DEFINITIONS AND OTHER PROVISIONS
OF GENERAL APPLICATION
SECTION 101. Definitions.
For all purposes of this Indenture, except as otherwise expressly provided
or unless the context otherwise requires:
(1) the terms defined in this Article One have the meanings assigned to
them in this Article and include the plural as well as the singular;
(2) all other terms used herein which are defined in the Trust Indenture
Act, either directly or by reference therein, have the meanings assigned to them
therein;
<PAGE>
(3) all accounting terms not otherwise defined herein have the meanings
assigned to them in accordance with generally accepted accounting principles,
and, except as otherwise herein expressly provided, the term "generally accepted
accounting principles" with respect to any computation required or permitted
hereunder shall mean such accounting principles as are generally accepted at the
date of such computation; and
(4) 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.
"Act" when used with respect to any Holder, has the meaning specified in
Section 104.
"Affiliate" of any specified Person means any other Person directly or
indirectly controlling or controlled by or under direct or indirect common
control with such specified Person. For the purposes of this definition,
"control", when used with respect to any specified Person, means the power to
direct the management and policies of such Person, directly or indirectly,
whether through the ownership of voting securities, by contract or otherwise;
and the terms "controlling" and "controlled" have meanings correlative to the
foregoing.
"Agent Member" means any member of, or participant in, the Depositary.
"Applicable Procedures" means, with respect to any transfer or transaction
involving a Global Security or beneficial interest therein, the rules and
procedures of the Depositary for such Global Security to the extent applicable
to such transaction and as in effect from time to time.
"Authenticating Agent" means any Person authorized by the Trustee pursuant
to Section 614 to act on behalf of the Trustee to authenticate Securities.
"Board of Directors" means either the board of directors of the Company or
any duly authorized committee of that board.
"Board Resolution" means a resolution duly adopted by the Board of
Directors, a copy of which, certified by the Secretary or an Assistant Secretary
of the Company to have been duly adopted by the Board of Directors and to be in
full force and effect on the date of such certification, shall have been
delivered to the Trustee.
"Business Day" means each Monday, Tuesday, Wednesday, Thursday and Friday
which is not a day on which banking institutions in The City of New York or
Atlanta, Georgia, are authorized or obligated by law or executive order to
close.
-2-
<PAGE>
"Change of Control" has the meaning specified in Section 1404(b).
"Closing Price Per Share" means, with respect to the Common Stock of the
Company, or any day, the reported last sales price regular way per share or, in
case no such reported sale takes place on such day, the average of the reported
closing bid and asked prices regular way, in either case (i) on the principal
national securities exchange on which the Common Stock is listed or admitted to
trading, or, if the Common Stock is not listed or admitted for trading on a
national securities exchange on the Nasdaq National Market, or (ii) if not
listed or admitted to trading on any national securities exchange or quoted on
the Nasdaq National Market, the average of the closing bid and asked prices in
the over-the-counter market as furnished by any New York Stock Exchange member
firm selected from time to time by the Company for that purpose.
"Code" has the meaning specified in Section 201.
"Commission" means the Securities and Exchange Commission, as from time to
time constituted, created under the Exchange Act, or, if at any time after the
execution of this instrument such Commission is not existing and performing the
duties now assigned to it under the Trust Indenture Act, then the body
performing such duties at such time.
"Common Stock" means the Common Stock, par value $0.125 per share, of the
Company authorized at the date of this instrument as originally executed.
Subject to the provisions of Section 1311, shares issuable on conversion or
repurchase of Securities shall include only shares of Common Stock or shares of
any class or classes of common stock resulting from any reclassification or
reclassifications thereof; provided, however, that if at any time there shall be
more than one such resulting class, the shares so issuable on conversion of
Securities shall include shares of all such classes, and the shares of each such
class then so issuable shall be substantially in the proportion which the total
number of shares of such class resulting from all such reclassifications bears
to the total number of shares of all such classes resulting from all such
reclassifications.
"common stock" includes any stock of any class of capital stock which has no
preference in respect of dividends or of amount payable in the event of any
voluntary or involuntary liquidation, dissolution or winding up of the issuer
thereof and which is not subject to redemption by the issuer thereof.
"Company" means the Person named as the "Company" in the first paragraph of
this instrument until a successor Person shall have become such pursuant to the
applicable provisions of this Indenture, and thereafter "Company" shall mean
such successor Person.
"Company Notice" has the meaning specified in Section 1403.
-3-
<PAGE>
"Company Order" or " Company Request" means a written order or request
signed in the name of the Company by its Chairman of the Board, its Vice
Chairman of the Board, its President or a Vice President, and by its Treasurer,
an Assistant Treasurer, its Secretary or an Assistant Secretary, and delivered
to the Trustee.
"Constituent Person" has the meaning specified in Section 1311.
"Conversion Agent" means any Person authorized by the Company to convert
Securities in accordance with Article Thirteen. The Company has initially
appointed the Trustee as its Conversion Agent.
"Conversion Price" has the meaning specified in Section 1404.
"Conversion Rate" has the meaning specified in Section 1301.
"Corporate Trust Office" means the principal corporate trust office of the
Trustee at which, at any particular time, its corporate trust business shall be
administered, which office at the date hereof is located at One First National
Plaza, Suite 0126, Chicago, Illinois 60670-0126, Attention: Corporate Trust
Services Division, except that for purposes of Section 1002, such term shall
mean the office or agency of the Trustee in the Borough of Manhattan, the City
of New York, which office at the date hereof is located at First Chicago Trust
Company of New York, 14 Wall Street, Eighth Floor, New York, New York 10005.
"corporation" means a corporation, association, company, joint-stock company
or business trust.
"Custodian" means The First National Bank of Chicago, as custodian with
respect to any Global Security, or any successor entity thereto.
"Defaulted Interest" has the meaning specified in Section 307.
"Depositary" means, with respect to any Global Securities, a clearing agency
that is registered as such under the Exchange Act and is designated by the
Company to act as Depositary for such Global Securities (or any successor
securities clearing agency so registered).
"Designated Senior Indebtedness" means any particular Senior Indebtedness in
which the instrument creating or evidencing the same or the assumption or
guarantee thereof (or related agreements or documents to which the Company is a
party) expressly provides that such indebtedness shall be "Designated Senior
Indebtedness" for purposes of the Indenture (provided that such instrument,
agreement or other document may place limitations and conditions on the right of
such Senior Indebtedness to exercise the rights of Designated Senior
Indebtedness).
-4-
<PAGE>
"Distribution Date" has the meaning specified in Section 1304(4).
"DTC" means The Depositary Trust Company, a New York corporation.
"Event of Default" has the meaning specified in Section 501.
"Exchange Act" means the United States Securities Exchange Act of 1934 (or
any successor statute), as amended from time to time.
"Expiration Date" has the meaning specified in Section 104.
"Expiration Time" has the meaning specified in Section 1304.
"Global Security" means a Security that is registered in the Security
Registrar in the name of a Depositary or a nominee thereof.
"Holder" means a Person in whose name a Security is registered in the
Security Register.
"Indenture" means this instrument as originally executed or as it may from
time to time be supplemented or amended by one or more indentures supplemental
hereto entered into pursuant to the applicable provisions hereof, including, for
all purposes of this instrument and any such supplemental indenture, the
provisions of the Trust Indenture Act that are deemed to be a part of and govern
this instrument and any such supplemental indenture, respectively.
"Interest Payment Date" means the Stated Maturity of an installment of
interest on the Securities.
"Maturity", when used with respect to any Security, means the date on which
the principal of such Security becomes due and payable as therein or herein
provided, whether at the Stated Maturity or on the Redemption Date or Repurchase
Date or by declaration of acceleration, or otherwise.
"Non-electing Share" has the meaning specified in Section 1311.
"Notice of Default" means a written notice of the kind specified in Section
501(4) or 501(5).
"Officers' Certificate" means a certificate signed by the Chairman of the
Board, a Vice Chairman of the Board, the President or a Vice President, and by
the Treasurer, an Assistant Treasurer, the Secretary or an Assistant Secretary,
of the Company, and delivered to the Trustee. One of the officers signing an
Officers' Certificate given pursuant to Section 1004 shall be the principal
executive, financial or accounting officer of the Company.
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"Opinion of Counsel" means a written opinion of counsel, who may be an
employee or other counsel for the Company, and who shall be reasonably
acceptable to the Trustee.
"Outstanding", when used with respect to Securities, means, as of the date
of determination, all Securities theretofore authenticated and delivered under
this Indenture, except:
(i) Securities cancelled by the Trustee or delivered to the Trustee for
cancellation;
(ii) Securities for payment or redemption of which money in the necessary
amount has been deposited with the Trustee or any Paying Agent (other than the
Company) in trust or set aside and segregated in trust by the Company (if the
Company shall act as its own Paying Agent) for the Holders of such Securities;
provided that, if such Securities are to be redeemed, notice of such redemption
has been duly given pursuant to this Indenture or provision for notice of
redemption satisfactory to the Trustee has been made;
(iii) Securities which have been paid pursuant to Section 306 or in exchange
for in lieu of which other Securities have been authenticated and delivered
pursuant to this Indenture, other than any such Securities in respect of which
there shall have been presented to the Trustee proof satisfactory to it that
such Securities are held by a bona fide purchaser in whose hands such Securities
are valid obligations of the Company; and
(iv) Securities converted into Common Stock pursuant to Article Thirteen;
provided, however, that in determining whether the Holders of the requisite
principal amount of Outstanding Securities are present at a meeting of Holders
for quorum purposes or have given any request, demand, authorization, direction,
notice, consent or waiver hereunder, Securities owned by the Company or any
other obligor upon the Securities or any Affiliate of the Company or of such
other obligor shall be disregarded and deemed not to be Outstanding, except
that, in determining whether the Trustee shall be protected in relying upon any
such determination as to the presence of a quorum or upon any such request,
demand, authorization, direction, notice, consent or waiver, only Securities
which the Trustee knows to be so owned shall be so disregarded. Securities so
owned which have been pledged in good faith may be regarded as Outstanding if
the pledgee establishes to the satisfaction of the Trustee the pledgee's right
to act with respect to such Securities and that the pledgee is not the Company
or any other obligor upon the Securities or any Affiliate of the Company or of
such other obligor.
"Paying Agent" means any Person authorized by the Company to pay the
principal of (and premium, if any) or interest on any Securities on behalf of
the Company.
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"Payment Blockage Notice" has the meaning specified in Section 1202.
"Person" means any individual, corporation, limited liability company,
partnership, joint venture, a joint stock company, trust, unincorporated
organization or government or any agency or political subdivision thereof.
"Predecessor Security" of any particular Security means every previous
Security evidencing all or a portion of the same debt as that evidenced by such
particular Security; and, for the purposes of this definition, any Security
authenticated and delivered under Section 306 in exchange for or in lieu of a
mutilated, destroyed, lost or stolen Security shall be deemed to evidence the
same debt as the mutilated, destroyed, lost or stolen Security.
"Record Date Period" means the period from the close of business on any
Regular Record Date next preceding any Interest Payment Date to the opening of
business on such Interest Payment Date.
"Record Date" means any Regular Record Date or Special Record Date.
"Redemption Date", when used with respect to any Security to be redeemed,
means the date fixed for such redemption by or pursuant to this Indenture.
"Redemption Price", when used with respect to any Security to be redeemed,
means the price at which it is to be redeemed pursuant to this Indenture.
"Reference Date" has the meaning specified in Section 1304.
"Regular Record Date" for the interest payable on any Interest Payment Date
means the __________or _____________ (whether or not a Business Day), as the
case may be, next preceding such Interest Payment Date.
"Rights" has the meaning specified in Section 1304(4).
"Rights Agreement" has the meaning specified in Section 1304(4).
"Repurchase Date" has the meaning specified in Section 1401.
"Repurchase Price" has the meaning specified in Section 1401.
"Responsible Officer", when used with respect to the Trustee, means any
officer within the Corporate Trust Office of the Trustee (including without
limitation any vice president, assistant treasurer, assistant secretary,
corporate trust officer, assistant corporate trust officer or other employee of
the Trustee customarily performing functions similar to those performed by any
of the above designated officers) and also means, with respect to a particular
corporate
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trust matter, any other officer to whom such matter is referred because of his
knowledge and familiarity with the particular subject.
"Securities" has the meaning specified to it in the first paragraph under the
caption "Recitals of the Company".
"Securities Act" means the United States Securities Act of 1933 (or any
successor statute), as amended from time to time.
"Security Register" and " Security Registrar" have the respective meanings
specified in Section 305.
"Senior Indebtedness" means the principal of (and premium, if any) and
interest (including all interest accruing subsequent to the commencement of any
bankruptcy or similar proceeding, whether or not a claim for post-petition
interest is allowable as a claim in any such proceeding) on, and all fees and
other amounts payable in connection with, the following, whether absolute or
contingent, secured or unsecured, due or to become due, outstanding on the date
of the Indenture or thereafter created, incurred or assumed: (a) indebtedness
of the Company to banks, insurance companies and other financial institutions
evidenced by credit or loan agreements, notes or other written obligations, (b)
all other indebtedness of the Company (including obligations of the Company
arising from its guarantee of the indebtedness of others) other than the
Securities, whether outstanding on the date of this Indenture or thereafter
created, incurred or assumed, which is (i) for money borrowed or (ii) evidenced
by a note, security, debenture, bond or similar instrument, (c) obligations of
the Company as lessee under leases required to be capitalized on the balance
sheet of the lessee under generally accepted accounting principles or in respect
of any lease or related document (including a purchase agreement) which provides
that the Company is contractually obligated to purchase or cause a third party
to purchase the leased property and thereby effectively guarantees a minimum
residual value of the leased property to the landlord and the obligations of the
Company under such lease or related document to purchase or cause a third party
to purchase such leased property, (d) obligations of the Company under interest
rate and currency swaps, caps, floors, collars or similar agreements or
arrangements, (e) all obligations of the Company issued or assumed as the
deferred purchase price of property (but excluding any portion thereof
constituting trade accounts payable arising in the ordinary course), (f) all
obligations of the Company for the reimbursement of any letters of credit (i) to
the extent the obligations underlying such letters of credit are Senior
Indebtedness under clauses (a) through (d) above or (ii) that secure the
Company's obligations to clearing institutions arising out of its merchant
processing business to the extent such obligations are incurred in the ordinary
course of business in amounts consistent with the Company's past practices, and
(g) renewals, extensions, modifications, restatements and refundings of, and any
amendments, modifications or supplements to, or any indebtedness or obligation
issued in exchange for, any such indebtedness or obligation described in clauses
(a) through (d) of this paragraph; provided that Senior Indebtedness shall not
include (i) indebtedness to a Subsidiary or other Affiliate of the
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Company, (ii) any such indebtedness or obligation if the terms of such
indebtedness or obligation (or the terms of the instrument under which, or
pursuant to which, it is issued) expressly provided that such indebtedness or
obligation shall not be senior in right of payment to the Securities, or
expressly provide that such indebtedness or obligation is pari passu with or
junior to the Securities and (iii) accounts payable of the Company to trade
creditors.
"Special Record Date" for the payment of any Defaulted Interest means a date
fixed by the Trustee pursuant to Section 307.
"Stated Maturity", when used with respect to any Security or any installment
of interest thereon, means the date specified in such Security as the fixed date
on which the principal of such Security or such installment of interest is due
and payable.
"Subsidiary" means a corporation or limited liability company more than 50%
of the outstanding voting stock, membership interests or units of which is
owned, directly or indirectly, by the Company or by one or more other
Subsidiaries, or by the Company and one or more other Subsidiaries. For the
purposes of this definition, "voting stock" means stock, membership interests or
units which ordinarily has voting power for the election of directors or
managers (in the case of a limited liability company), whether at all times or
only so long as no senior class of stock has such voting power by reason of any
contingency.
"Trading Days" means (i) if the Common Stock is listed or admitted for
trading on any national securities exchange, days on which such national
securities exchange is open for business; (ii) if the Common Stock is quoted on
the Nasdaq National Market or any other system of automated dissemination of
quotations of securities prices, days on which trades may be effected through
such system; or (iii) if the Common Stock is not listed or admitted for trading
on any national securities exchange or quoted on the Nasdaq National Market or
any other system of automated dissemination of quotation of securities prices,
days on which the Common Stock is traded regular way in the over-the-counter
market and for which a closing bid and a closing asked price for the Common
Stock are available.
"Trustee" means the Person named as the "Trustee" in the first paragraph of
this instrument until a successor Trustee shall have become such pursuant to the
applicable provisions of this Indenture, and thereafter "Trustee" shall mean
such successor Trustee.
"Trust Indenture Act" means the Trust Indenture Act of 1939 as in force at
the date as of which this instrument was executed; provided, however, that in
the event the Trust Indenture Act of 1939 is amended after such date, "Trust
Indenture Act" means, to the extent required by any such amendment, the Trust
Indenture Act of 1939 as so amended.
"Vice President", when used with respect to the Company or the Trustee, means
any vice president, whether or not designated by a number or a word or words
added before or after the title "vice president".
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SECTION 102. Compliance Certificates and Opinions.
Upon any application or request by the Company to the Trustee to take any
action under any provision of this Indenture, the Company shall furnish to the
Trustee an Officers' Certificate stating that all conditions precedent, if any,
provided for in this Indenture relating to the proposed action have been
complied with and an Opinion of Counsel stating that in the opinion of such
counsel all such conditions precedent, if any, have been complied with, except
that in the case of any such application or request as to which the furnishing
of documents is specifically required by any provision of this Indenture
relating to such particular application or request, no additional certificate or
opinion need be furnished.
Every certificate (other than certificates provided pursuant to Section 1004)
or opinion with respect to compliance with a condition or covenant provided for
in this Indenture shall include, without limitation:
(1) a statement that each individual signing such certificate or opinion has
read such covenant or condition and the definitions in this Indenture relating
to such covenant or condition;
(2) a brief statement as to the nature and scope of the examination or
investigation upon which the statements or opinions contained in such
certificate or opinion are based;
(3) a statement that, in the opinion of each such individual, each such
individual has made such examination or investigation as is necessary to enable
each such individual to express an informed opinion as to whether or not such
covenant or condition has been complied with; and
(4) a statement as to whether, in the opinion of each such individual, such
condition or covenant has been complied with.
SECTION 103. Form of Documents Delivered to Trustee.
In any case where several matters are required to be certified by, or covered
by an opinion of, any specified Person, it is not necessary that all such
matters be certified by, or covered by the opinion of, only one such Person, or
that they be so certified or covered by only one document, but one such Person
may certify or give an opinion with respect to some matters and one or more
other such Persons as to other matters, and any such Person may certify or give
an opinion as to such matters in one or several documents.
Any certificate or opinion of an officer of the Company may be based, insofar
as it relates to legal matters, upon a certificate or opinion of, or
representations by, counsel, unless such officer knows, or in the exercise of
reasonable care should know, that the certificate or
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opinion or representations with respect to the matters upon which such
certificate or opinion is based are erroneous. Any such certificate or opinion
of counsel may be based, insofar as it relates to factual matters, upon a
certificate or opinion of, or representations by, an officer or officers of the
Company stating that the information with respect to such factual matters is in
the possession of the Company, unless such counsel knows, or in the exercise of
reasonable care should know, that the certificate or opinion or representations
with respect to such matters are erroneous.
Where any Person is required to make, give or execute two or more
applications, requests, consents, certificates, statements, opinions or other
instruments under this Indenture, they may, but need not, be consolidated and
form one instrument.
SECTION 104. Acts of Holders; Record Dates.
(a) Any request, demand, authorization, direction, notice, consent, waiver or
other action provided by this Indenture to be given or taken by Holders may be
embodied in and evidenced by one or more instruments of substantially similar
tenor signed by such Holders in person or by an agent duly appointed in writing;
and, except as otherwise expressly provided in this Indenture, such action shall
become effective when such instrument or instruments are delivered to the
Trustee and, where it is expressly required in this Indenture, to the Company.
Such instrument or instruments (and the action embodied therein and evidenced
thereby) are sometimes referred to as the "Act" of the Holders signing such
instrument or instruments. Proof of execution of any such instrument or of a
writing appointing any such agent shall be sufficient for any purpose of this
Indenture and (subject to Section 601) conclusive in favor of the Trustee and
the Company, if made in the manner provided in this Section.
(b) The fact and date of the execution of any Person of any such instrument or
writing may be proved by the affidavit of a witness of such execution or by a
certificate of a notary public or other officer authorized by law to take
acknowledgments of deeds, certifying that the individual signing such instrument
or writing acknowledged to him the execution thereof. Where such execution is by
a signer acting in a capacity other than his individual capacity, such
certificate or affidavit shall also constitute sufficient proof of his
authority. The fact and date of the execution of any such instrument or
writing, or the authority of the Person executing the same, may also be proved
in any other manner which the Trustee deems sufficient.
(c) The ownership of Securities shall be proved by the Security Register.
(d) The Company may set any day as a record date for the purpose of
determining the Holders entitled to give, make or take any request, demand,
authorization, direction, notice, consent, waiver or other action provided or
permitted by this Indenture to be given, made or taken by Holders; provided that
the Company may not set a record date for, and the provisions of this Section
104(d) shall not apply with respect to, the giving or making of any notice,
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declaration, request or direction referred to in Section 104(e). If any record
date is set pursuant to this Section 104(d), the Holders on such record date,
and only such Persons, shall be entitled to take the relevant action, whether or
not such Holders remain Holders after such record date; provided that no such
action shall be effective hereunder unless taken on or prior to the applicable
Expiration Date by Holders of the requisite principal amount of Securities on
such record date. Nothing in this Section 104(d) shall be construed to prevent
the Company from setting a new record date for any action for which a record
date has previously been set pursuant to this paragraph (whereupon the record
date previously set shall automatically and with no action by any Person be
cancelled and of no effect), and nothing in this Section 104(d) shall be
construed to render ineffective any action taken by Holders of the requisite
principal amount of Securities on the date such action is taken. Promptly after
any record date is set pursuant to this Section 104(d), the Company, at its own
expense, shall cause notice of such record date, the proposed action by Holders
and the applicable Expiration Date to be given to the Trustee in writing and to
each Holder in the manner set forth in Section 106.
(e) The Trustee may set any day as a record date for the purpose of
determining the Holders entitled to join in the giving or making of (i) any
Notice of Default, (ii) any declaration of acceleration referred to in Section
502, (iii) any request to institute proceedings referred to in Section 507(2),
or (iv) any direction referred to in Section 512. If any record date is set
pursuant to this Section 104(e), the Holders on such record date, and only such
Persons, shall be entitled to join in such notice, declaration, request or
direction, whether or not such Holders remain Holders after such record date;
provided that no such action be effective hereunder unless taken on or prior to
the applicable Expiration Date by Holders of the requisite principal amount of
Securities on such record date. Nothing in this Section 104(e) shall be
construed to prevent the Trustee from setting a new record date for any action
for which a record date has previously been set pursuant to this Section 104(e)
(whereupon the record date previously set shall automatically and with no action
by any Person be cancelled and of no effect), and nothing in this Section 104(e)
shall be construed to render ineffective any action taken by Holders of the
requisite principal amount of Securities on the date such action is taken.
Promptly after any record date is set pursuant to this Section 104(e), the
Trustee, at the Company's expense, shall cause notice of such record date, the
proposed action by Holders and the applicable Expiration Date to be given to the
Company in writing and to each Holder of Securities in the manner set forth in
Section 106.
(f) With respect to any record date set pursuant to Sections 104(d) or 104(e),
the party which sets such record date may designate any day as the "Expiration
Date" and from time to time may change the Expiration Date to any earlier or
later day; provided that no such change shall be effective unless notice of the
proposed new Expiration Date is given to the other party in writing, and to each
Holder in the manner set forth in Section 106, on or prior to the existing
Expiration Date. If an Expiration Date is not designated with respect to any
record date set pursuant to Sections 104(d) or 104(e), the party which set such
record date shall be deemed to have initially designated the 180th day after
such record date as the Expiration Date with respect thereto, subject to its
right to change the Expiration Date as provided in this
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paragraph. Notwithstanding the foregoing, no Expiration Date shall be later
than the 180th day after the applicable record date.
(g) Without limiting the foregoing, a Holder entitled to take any action
hereunder with regard to any particular Security may do so with regard to all or
any part of the principal amount of such Security or by one or more duly
appointed agents each of which may do so pursuant to such appointment with
regard to all or any part of such principal amount.
(h) Any request, demand, authorization, direction, notice, consent, waiver or
other Act of the Holder of any Security shall bind every future Holder of the
same Security and the Holder of every Security issued upon the registration of
transfer thereof or in exchange therefor or in lieu thereof in respect of
anything done, omitted or suffered to be done by the Trustee or the Company in
reliance thereon, whether or not notation of such action is made upon such
Security.
SECTION 105. Notices, Etc., to Trustee and Company.
Any request, demand, authorization, direction, notice, consent, waiver or Act
of Holders or other document provided or permitted by this Indenture to be made
upon, given or furnished to, or filed with:
(1) the Trustee by any Holder or by the Company shall be sufficient for every
purpose if made, given, furnished or filed in writing to or with the Trustee at
its Corporate Trust Office, Attention: Corporate Trust Department (National Data
Corporation ___% Convertible Subordinated Notes Due 2003), or
(2) the Company by the Trustee or by any Holder shall be sufficient for every
purpose (unless otherwise herein expressly provided) if in writing and mailed,
first-class postage prepaid, to the Company addressed to it at the address of
its principal office specified in the first paragraph of this instrument or at
any other address previously furnished in writing to the Trustee by the Company.
SECTION 106. Notice to Holders; Waiver.
Where this Indenture provides for notice to Holders of any event, such notice
shall be sufficiently given (unless otherwise expressly provided) if in writing
and mailed, first-class postage prepaid, to each Holder affected by such event,
at its address as it appears in the Security Register, not later than the latest
date (if any), and not earlier than the earliest date (if any), prescribed for
the giving of such notice. In any case where notice to Holders is given by
mail, neither the failure to mail such notice, nor any defect in any notice so
mailed, to any particular Holder shall affect the sufficiency of such notice
with respect to other Holders. Where this Indenture provides for notice in any
manner, such notice may be waived in writing by the Person entitled to receive
such notice, either before or after the event, and such waiver
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shall be the equivalent of such notice. Waivers of notice by Holders shall be
filed with the Trustee, but such filing shall not be a condition precedent to
the validity of any action taken in reliance upon such waiver.
In case by reason of the suspension of regular mail service or by reason of
any other cause it shall be impracticable to give such notice by mail, then such
notification as shall be made with the approval of the Trustee shall constitute
a sufficient notification for every purpose hereunder.
SECTION 107. Conflict with Trust Indenture Act.
If any provision of this Indenture limits, qualifies or conflicts with a
provision of the Trust Indenture Act that is required under such Act to be a
part of and govern this Indenture, the latter provision shall control. If any
provision of this Indenture modifies or excludes any provision of the Trust
Indenture Act that may be so modified or excluded, the latter provision shall be
deemed to apply to this Indenture as so modified or to be excluded, as the case
may be.
SECTION 108. Effect of Headings and Table of Contents.
The Article and Section headings and the Table of Contents contained in this
Indenture are for convenience only and shall not affect the construction hereof.
SECTION 109. Successors and Assigns.
All covenants and agreements in this Indenture by the Company shall bind its
successors and assigns, whether so expressed or not.
SECTION 110. Separability Clause.
In case any provision in this Indenture or in the Securities shall be invalid,
illegal or unenforceable, the validity, legality and enforceability of the
remaining provisions shall not in any way be affected or impaired.
SECTION 111. Benefits of Indenture.
Nothing in this Indenture or in the Securities, express or implied, shall give
to any Person, other than the parties and their successors hereunder, the
holders of Senior Indebtedness and the Holders of Securities, any benefit or any
legal or equitable right, remedy or claim under this Indenture.
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SECTION 112. Governing Law.
THIS INDENTURE AND THE SECURITIES SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICTS
OF LAWS PRINCIPLES AS APPLIED IN SUCH STATE.
SECTION 113. Legal Holidays.
In any case where any Interest Payment Date, Redemption Date, Repurchase Date
or Stated Maturity of any Security or the last date on which a Holder has the
right to convert such Holder's Securities shall not be a Business Day, then
(notwithstanding any other provision of this Indenture or of the Securities)
payment of interest or principal (and premium, if any) or conversion of the
Securities need not be made on such date, but may be made on the next succeeding
Business Day with the same force and effect as if made on the Interest Payment
Date, Redemption Date or Repurchase Date, or at the Stated Maturity, or on such
last day for conversion; provided that no interest shall accrue for the period
from and after such Interest Payment Date, Redemption Date, Stated Maturity or
last day for conversion, as the case may be.
ARTICLE TWO
SECURITY FORMS
SECTION 201. Forms Generally.
The Securities and the Trustee's certificates of authentication shall be in
substantially the forms set forth in this Article, with such appropriate
insertions, omissions, substitutions and other variations as are required or
permitted by this Indenture, and may have such letters, numbers or other marks
of identification and such legends or endorsements placed thereon as may be
required to comply with the rules of any securities exchange, the Internal
Revenue Code of 1986, as amended, and the regulations thereunder (the "Code"),
or as may, consistent herewith, be determined by the officers executing such
Securities, as evidenced by their execution of the Securities.
Any definitive Securities shall be printed, lithographed or engraved or
produced by any combination of these methods or may be produced in any other
manner permitted by the rules of securities exchange or any automated quotation
system on which the Securities may be listed or quoted, as the case may be, all
as determined by the officers executing such Securities, as evidenced by their
execution of such Securities.
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SECTION 202. Form of Face of Security.
[The following legend shall also appear on the face of each Global Security:
THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE
REFERRED TO BELOW AND IS REGISTERED IN THE NAME OF THE DEPOSITARY OF A NOMINEE
OF THE DEPOSITARY, WHICH MAY BE TREATED BY THE COMPANY, THE TRUSTEE AND ANY
AGENT THEREOF AS OWNER AND HOLDER OF THIS SECURITY FOR ALL PURPOSES.]
[The following legend shall also appear on the face of each Global Security for
which The Depository Trust Company is to be the Depositary:
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC") TO THE COMPANY OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.
UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR REGISTERED SECURITIES
IN DEFINITIVE REGISTERED FORM IN THE LIMITED CIRCUMSTANCES REFERENCED IN THE
INDENTURE, THIS GLOBAL SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE
DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO
THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY
SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR
DEPOSITARY.]
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NATIONAL DATA CORPORATION
___% CONVERTIBLE SUBORDINATED NOTE
DUE NOVEMBER ___, 2003
No. ______ $______
National Data Corporation, a corporation duly organized and existing under the
laws of Delaware herein called the "Company", which term includes any successor
Person under the Indenture referred to below), for value received, hereby
promises to pay to _______________, or registered assigns, the principal sum of
_________ Dollars ($_____) on November __, 2003, and to pay interest thereof
from November __, 1996 or from the most recent Interest Payment Date to which
interest has been paid or duly provided for, semi-annually in arrears on _______
and _______ in each year (each, an "Interest Payment Date"), commencing
________, 1997 at the rate of ___% per annum, until the principal hereof is due,
and at the rate of ____% per annum on any overdue principal and premium, if any,
and, to the extent permitted by law, on any overdue interest. The interest so
payable, and punctually paid or duly provided for, on any Interest Payment Date
will, as provided in the Indenture, be paid to the Person in whose name this
Security (or one or more Predecessor Securities) is registered at the close of
business on the ___________ or ____________ (whether or not a Business Day), as
the case may be, next preceding such Interest Payment Date. Except as otherwise
provided in the Indenture, any such interest not so punctually paid or duly
provided for will cease to be payable to the Holder on such Regular Record Date
and may either be paid to the Person in whose name this Security (or one or more
Predecessor Securities) is registered at the close of business on a Special
Record Date for the payment of such Defaulted Interest to be fixed by the
Company, notice of which shall be given to Holders of Securities not less than
10 days prior to such Special Record Date, or be paid at any time in any other
lawful manner not inconsistent with the requirements of any securities exchange
or automated quotation system on which the Securities may be listed or quoted,
and upon such notice as may be required by such exchange or quotation system, as
the case may be, all as more fully provided in the Indenture. Payments of
principal shall be made upon the surrender of this Security at the option of the
Holder at the Corporate Trust Office of the Trustee, or at such other office or
agency of the Company as may be designated by it for such purpose in the Borough
of Manhattan, The City of New York, in such coin or currency of the United
States of America as at the time of payment shall be legal tender for the
payment of public and private debts; provided, however, that at the option of
the Company payment of interest may be made by check, mailed to the address of
the Person entitled thereto as such address shall appear in the Security
Register, or, upon written application by the Holder to the Security Registrar.
Reference is hereby made to the further provisions of this Security set forth
on the reverse hereof, which further provisions shall for all purposes have the
same effect as if set forth at this place.
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<PAGE>
Unless the certificate of authentication hereon has been executed by the
Trustee referred to on the reverse hereof by manual signature, this Security
shall not be entitled to any benefit under the Indenture or be valid or
obligatory for any purpose.
IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed
under its corporate seal.
Dated:
NATIONAL DATA CORPORATION
[Corporate Seal]
By ______________________
Name:
Title:
Attest:
___________________________
Title:
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<PAGE>
SECTION 203. Form of Reverse of Security.
This Security is one of a duly authorized issue of Securities of the Company
designated as its ___% Convertible Subordinated Notes Due November __, 2003
(herein called the "Securities"), limited in aggregate principal amount to
$________ (subject to increase as provided in the Indenture up to $________
aggregate principal amount), issued and to be issued under an Indenture, dated
as of November __, 1996 (the "Indenture"), between the Company and The First
National Bank of Chicago, as Trustee (the "Trustee", which term includes any
successor trustee under the Indenture), to which Indenture and all indentures
supplemental thereto reference is made for a statement of the respective rights,
limitations of rights, duties and immunities of the Company, the Trustee, the
holders of Senior Indebtedness and the Holders of the Securities and of the
terms upon which the Securities are, and are to be, authenticated and delivered.
The Securities are issuable in registered form only without coupons in
denominations of $1,000 and any integral multiple thereof.
Subject to and upon compliance with the provisions of the Indenture, the
Holder of this Security is entitled, at his option, at any time before the close
of business on November __, 2003 (except that (a) if this Security or a portion
hereof is called for redemption, the right of conversion in respect of this
Security shall terminate at the close of business on the Business Day
immediately preceding the Redemption Date and (b) if the Holder hereof has
exercised his right to require the Company to repurchase this Security or a
portion hereof, the right of conversion in respect of this Security shall
terminate at the close of business on the Repurchase Date, unless in each case
the Company defaults in making the payment due upon redemption or repurchase, as
the case may be) to convert this Security (or any portion of the principal
amount hereof that is an integral multiple of $1,000 provided that the
unconverted portion of such principal amount is $1,000 or an integral multiple
of $1,000 in excess thereof) into fully paid and nonassessable shares of Common
Stock of the Company at an initial Conversion Rate of _______ for each share of
Common Stock (or at the then current adjusted Conversion Rate if an adjustment
has been made as provided in the Indenture) by surrender of this Security, duly
endorsed or assigned to the Company or in blank and, in case such surrender
shall be made during the period from the close of business on any Regular Record
Date next preceding any Interest Payment Date to the opening of business on such
Interest Payment Date (except if this Security has been called for redemption on
a Redemption Date or is repurchasable on a Repurchase Date occurring, in either
case, during such period and is surrendered for such conversion during such
period (including any Securities or portions thereof called for redemption on a
Redemption Date that is a Regular Record Date or an Interest Payment Date, as
the case may be)), also accompanied by payment in New York Clearing House or
other funds acceptable to the Company of an amount equal to the interest payable
on such Interest Payment Date on the principal amount of this Security then
being converted, and also the conversion notice hereon duly executed, to the
Company at the Corporate Trust Office of the Trustee, or at such other office or
agency of the Company, subject to any laws or regulations applicable thereto and
subject to the right of the Company to terminate the appointment of any
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<PAGE>
Conversion Agent (as defined below) as may be designated by it for such purpose
in the Borough of Manhattan, The City of New York, or at such other offices or
agencies as the Company may designate (each a "Conversion Agent"), provided,
further, that if this Security or portion hereof has been called for redemption
on a Redemption Date or is repurchasable on a Repurchase Date occurring, in
either case, during the period from the close of business on any Regular Record
Date next preceding any Interest Payment Date to the opening of business on such
succeeding Interest Payment Date and is surrendered for conversion during such
period, then the Holder of this Security who converts this Security or a portion
hereof during such period (or on the last Business Day prior to the Regular
Record Date or Interest Payment Date in case of any Security (or portion
thereof) called for redemption on a Regular Record Date or Interest Payment
Date, as the case may be) will be entitled to receive the interest accruing
hereon from the Interest Payment Date next preceding the date of such conversion
to such succeeding Interest Payment Date and shall not be required to pay such
interest upon surrender of this Security for conversion. Subject to the
provisions of the preceding sentence and, in the case of a conversion after the
close of business on the Regular Record Date next preceding any Interest Payment
Date and or before the close of business on such Interest Payment Date, to the
right of the Holder of this Security (or any Predecessor Security of record as
of such Regular Record Date) to receive the related installment of interest to
the extent and under the circumstances provided in the Indenture, no cash
payment or adjustment is to be made or conversion for interest accrued herein
from the Interest Payment Date next preceding the day of conversion, or for
dividends on the Common Stock issued on conversion hereof. The Company shall
thereafter deliver to the Holder the fixed number of shares of Common Stock
(together with any cash adjustment, as provided in the Indenture) into which
this Security is convertible and such delivery will be deemed to satisfy the
Company's obligation to pay the principal amount of this Security. No fractions
of shares or scrip representing fractions of shares will be issued on
conversion, but instead of any fractional interest (calculated to the nearest
1/100th of a share) the Company shall pay a cash adjustment as provided in the
Indenture. The Conversion Rate is subject to adjustment as provided in the
Indenture. In addition, the Indenture provides that in case of certain
consolidations or mergers to which the Company is a party or the conveyance,
transfer, sale or lease of all or substantially all of the property and assets
of the Company, the Indenture shall be amended, without the consent of any
Holders of Securities, so that this Security, if then Outstanding, will be
convertible thereafter, during the period this Security shall be convertible as
specified above, only into the kind and amount of securities, cash and other
property receivable upon such consolidation, merger, conveyance, transfer, sale
or lease by a holder of the number of shares of Common Stock of the Company into
which this Security could have been converted immediately prior to such
consolidation, merger, conveyance, transfer, sale or lease (assuming such holder
of Common Stock is not a Constituent Person, failed to exercise any rights of
election and received per share the kind and amount received per share by a
plurality of Non-electing Shares). No adjustment in the Conversion Rate will be
made until such adjustment would require an increase or decrease of at least one
percent of such Conversion Rate, provided that any adjustment that would
otherwise be made will be carried forward and taken into account in the
computation of any subsequent adjustment.
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<PAGE>
The Securities are subject to redemption upon not less than 30 nor more than
60 days' notice by mail, at any time on or after November __, 1999, as a whole
or in part, at the election of the Company, at the following Redemption Prices
(expressed as percentages of the principal amount): If redeemed during the 12-
month period beginning November __ of the years indicated,
Redemption
Year Price
---- ---------------
1999....................... %
2000.......................
2001.......................
2002.......................
and thereafter at a Redemption Price equal to 100% of the principal amount, in
each case together with accrued interest to the Redemption Date; provided that
interest installments whose Stated Maturity is on or prior to such Redemption
Date will be payable to the Holders of such Securities, or one or more
Predecessor Securities, of record at the close of business on the relevant
Record Dates referred to on the face hereof, all as provided in the Indenture.
In the event of redemption, repurchase or conversion of this Security in
part only, a new Security or Securities for the unredeemed, unrepurchased or
unconverted portion hereof will be issued in the name of the Holder hereof upon
the cancellation hereof.
In any case where the due date for the payment of the principal of,
premium, if any, or interest on any Security or the last day on which a Holder
of a Security has a right to convert such Holder's Security shall be a day on
which banking institutions are authorized or obligated by law or executive order
to close, then payment of principal, premium, if any, or interest, or delivery
for conversion of such Security need not be made on or by such date at such
place but may be made on or by the next succeeding day at such place which is
not a day on which banking institutions are authorized or obligated by law or
executive order to close, with the same force and effect as made on the date for
such payment or the date fixed for redemption or repurchase, or by such last day
for conversion, and no interest shall accrue on the amount so payable for the
period after such date so long as payment is made on the next succeeding day at
such place which is not a day on which banking institutions are authorized or
obligated by law or executive order to close.
If a Change of Control occurs, the Holder of this Security, at the Holder's
option, shall have the right, in accordance with the provisions of the
Indenture, to require the Company to repurchase this Security or any portion of
the principal amount hereof that is equal to $1,000 or any integral multiple of
$1,000 in excess thereof plus interest accrued to the Repurchase Date. At the
option of the Company, the Repurchase Price may be paid in cash or, subject to
the conditions provided in the Indenture, by delivery of shares of Common Stock
having a fair
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<PAGE>
market value equal to the Repurchase Price. For purposes of this paragraph, the
fair market value of shares of Common Stock shall be determined by the Company
and shall be equal to 95% of the average of the Closing Prices Per Share for the
five consecutive Trading Days ending on and including the third Trading Day
immediately preceding the Repurchase Date. Whenever in this Security there is a
reference, in any context, to the principal of any Security as of the time, such
reference shall be deemed to include reference to the Repurchase Price payable
in respect of such security to the extent that such Repurchase Price is, was or
would be so payable at such time, and express mention of the Repurchase Price in
any provision of this Security shall not be construed as excluding the
Repurchase Price so payable in those provisions of this Security when such
express mention is not made; provided, however, that, for the purposes of the
next paragraph, such reference shall be deemed to include reference to the
Repurchase Price only to the extent the Repurchase Price is payable in cash.
The indebtedness evidenced by this Security is, to the extent provided in
the Indenture, subordinate and subject in right of payment to the prior payment
in full of all Senior Indebtedness, and this Security is issued subject to the
provisions of the Indenture with respect thereto. Each Holder of this Security,
by accepting the same, (a) agrees to and shall be bound by such provisions, (b)
authorizes and directs the Trustee on his behalf to take such action as may be
necessary or appropriate to effectuate the subordination so provided and (c)
appoints the Trustee his attorney-in-fact for any and all such purposes.
If an Event of Default shall occur and be continuing, the principal of all
the Securities may be declared due and payable in the manner and with the effect
provided in the Indenture.
The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Securities under the Indenture at
any time by the Company and the Trustee with the consent of the Holders of not
less than a majority in aggregate principal amount of the securities at the time
Outstanding. The Indenture also contains provisions permitting the Holders of
specified percentages in aggregate principal amount of the Securities at the
time Outstanding, on behalf of the Holders of all the Securities, to waive
compliance by the Company with certain provisions of the Indenture and certain
past defaults under the Indenture and their consequences. Any such consent or
waiver by the Holder of this Security shall be conclusive and binding upon such
Holder and upon all future Holders of this Security and of any Security issued
upon the registration of transfer hereof or in exchange herefor or in lieu
hereof, whether or not notation of such consent or waiver is made upon this
Security.
No reference herein to the Indenture and no provision of this Security or
of the Indenture shall alter or impair the obligation of the Company, which is
absolute and unconditional, to pay the principal of (and premium, if any) and
interest on this Security on the respective Stated Maturities expressed herein
(or in the case of redemption or repurchase, on the Redemption Date or
Repurchase Date, as the case may be,) or to convert this Security as provided in
the Indenture.
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<PAGE>
As provided in and subject to the provisions of the Indenture, the Holder
of this Security shall not have the right to institute any proceeding with
respect to the Indenture or for the appointment of a receiver or trustee or for
any other remedy thereunder, unless such Holder shall have previously given the
Trustee written notice of a continuing Event of Default, the Holders of not less
than 25% in principal amount of the Outstanding Securities shall have made
written request to the Trustee to institute proceedings in respect of such Event
of Default as Trustee and offered the Trustee reasonable indemnity and the
Trustee shall not have received from the Holders of a majority in principal
amount of the Securities Outstanding a direction inconsistent with such request,
and shall have failed to institute any such proceeding, for 60 days after
receipt of such notice, request and offer of indemnity. The foregoing shall not
apply to any suit instituted by the Holder of this Security for the enforcement
of any payment of principal hereof, premium, if any, or interest hereon on or
after the respective due dates expressed herein or for the enforcement of the
right to convert this Security as provided in the Indenture.
As provided in the Indenture and subject to certain limitations therein set
forth, the transfer of this Security is registrable in the Security Register,
upon surrender of this Security for registration of transfer at the office or
agency of the Company maintained for that purpose pursuant to Section 1002, duly
endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Company and the Security Registrar duly executed by, the
Holder hereof or his attorney duly authorized in writing, and thereupon one or
more new Securities, of authorized denominations and for the same aggregate
principal amount, will be issued to the designated transfer or transferees.
No service charge shall be made to a Holder for any such registration of
transfer or exchange, but the Company may require payment of a sum sufficient to
cover any tax or other governmental charge payable in connection therewith.
Prior to due presentment of this Security for registration of transfer, the
Company, the trustee, any Authenticating Agent, any Conversion Agent, any Paying
Agent or any other agent of the Company or the Trustee may treat the Person in
whose name this Security is registered as the owner hereof for all purposes,
whether or not this Security be overdue, and neither the Company, the Trustee
nor any Authenticating Agent, Conversion Agent, Paying Agent or other agent of
the Company or the Trustee shall be affected by notice to the contrary.
No recourse for the payment of the principal of (premium, if any) or
interest on this Security, or for any claim based hereon or otherwise in respect
hereof, and no recourse under or upon any obligation, covenant or agreement of
the Company in the Indenture or any indenture supplemental thereto or in any
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 Person, either
directly or through the Company, whether by virtue of any constitution, statute
or rule of law
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<PAGE>
or by the enforcement of any assessment or penalty or otherwise, all such
liability being, by the issue hereof, expressly waived and released.
The Indenture and the Securities shall be governed by and construed in
accordance with the laws of the State of New York, without regard to conflicts
of laws principles as applied in such state.
All terms used in this Security that are defined in the Indenture shall
have the meanings assigned to them in the Indenture.
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<PAGE>
ABBREVIATIONS
The following abbreviations, when used in the description of the fact of
this Security, shall be construed as through they were written out in full
according to applicable laws or regulations:
<TABLE>
<CAPTION>
<S> <C> <C>
TEN COM - as tenants in common UNIF GIFT MIN ACT-______ Custodian_______
TEN ENT - as tenants by the entireties (Cust) (Minor)
JT TEN - as joint tenants with right under Uniform Gifts to Minors Act
of survivorship and not as ___________________________________
tenants in common (State)
</TABLE>
Additional abbreviations may also be used
though not in the above list
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<PAGE>
ELECTION OF HOLDER TO REQUIRE REPURCHASE
1. Pursuant to Section 1401 of the Indenture, the undersigned hereby
elects to have this security repurchased by the Company.
2. The undersigned hereby directs the Trustee or the Company to pay it or
___________ an amount in cash or, at the Company's election, Common Stock valued
as set forth in the Indenture, equal to 100% of the principal amount to be
repurchased (as set forth below), plus interest accrued to the Repurchase Date,
as provided in the Indenture.
Dated:
__________________________________
__________________________________
Signature(s)
Signature(s) must be guaranteed by an
Eligible Guarantor Institution with
membership in an approved signature
guarantee program pursuant to Rule 17Ad-
15 under the Securities Exchange Act of
1934.
___________________________________
Signature Guaranteed
Principal amount to be repurchased
(equal to an integral multiple of $1,000): _________________________________
Remaining principal amount following such repurchase: ________________________
NOTICE: The signature to the foregoing election must correspond to the Name as
written upon the fact of this Security in every particular, without alteration
or any change whatsoever.
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<PAGE>
SECTION 204. Form of Trustee's Certificate of Authentication.
This is one of the Securities referred to in the within-mentioned Indenture.
____________________________,
as Trustee
By___________________________
Authorized Signatory
SECTION 205. Form of Conversion Notice.
The undersigned Holder of this Security hereby irrevocably exercises the
option to convert this Security, or any portion of the principal amount hereof
(which is an integral multiple of $1,000, provided that the unconverted portion
of such principal amount is $1,000 or an integral multiple of $1,000 in excess
thereof) below designated, into shares of Common Stock in accordance with the
terms of the Indenture referred to in this Security, and directs that such
shares, together with a check in payment for any fractional share and any
Securities representing any unconverted principal amount hereof, be delivered to
and be registered in the name of the undersigned unless a different name has
been indicated below. If shares of Common Stock or Securities are to be
registered in the name of a Person other than the undersigned, the undersigned
will pay all transfer taxes payable with respect thereto. Any amount required
to be paid by the undersigned on account of interest accompanies this Security.
Dated: _________________________ __________________________________
Fill in for registration of shares of
Common Stock if to be issued, and
Securities if to be delivered, other
than to and in the name of the __________________________________
registered holder. Signature(s)
_________________________________ Signature(s) must be guaranteed by an
(Name) Eligible Guarantor Institution with
membership in an approved signature
guarantee program pursuant to Rule
17Ad-15 under the Securities Exchange
Act of 1934.
__________________________________
Signature Guaranteed
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<PAGE>
SECTION 206. Form of Assignment.
For value received ________________________ hereby sells(s), assign(s) and
transfer(s) unto ______________________ (Please insert social security or other
identifying number of assignee) the within Security, and hereby irrevocably
constitutes and appoints __________________________ as attorney to transfer the
said Security on the books of the Company, with full power of substitution in
the premises.
Dated: __________________________________
Signature(s)
Signature(s) must be guaranteed by an Eligible Guarantor Institution with
membership in an approved signature guarantee program pursuant to Rule 17Ad-15
under the Securities Exchange Act of 1934.
__________________________________
Signature Guaranteed
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<PAGE>
ARTICLE THREE
THE SECURITIES
SECTION 301. Title and Terms.
The aggregate principal amount of Securities which may be authenticated and
delivered under this Indenture is limited to (a) $125,000,000, plus (b) such
aggregate principal amount (which may not exceed $18,750,000 principal amount)
of Securities as shall be purchased by the Underwriters pursuant to the
Underwriting Agreement, dated November __, 1996, among the Company, Goldman,
Sachs & Co., Salomon Brothers Inc and ________, as underwriters, except for
Securities authenticated and delivered upon registration of transfer of, or in
exchange for, or in lieu of, other Securities pursuant to Section 304, 305, 306,
906, 1108, 1302 or 1403(e).
The Securities shall be known and designated as the "___% Convertible
Subordinated Notes Due November ___, 2003" of the Company. Their Stated
Maturity shall be November __, 2003, and they shall bear interest at the rate of
___% per annum, from November __, 1996 or from the most recent Interest Payment
Date to which interest has been paid or duly provided for, as the case may be,
payable semi-annually in arrears on _______ and _______ in each year, commencing
_________, 1997, until the principal thereof is paid or made available for
payment, and, to the fullest extent permitted by law, at the rate of ___% per
annum on any overdue principal and on any overdue installment of interest.
The principal of (premium, if any) and interest on the Securities shall be
payable at the office or agency of the Company maintained for such purpose
pursuant to Section 1002; provided that at the option of the Company payment of
interest may be made by check mailed to the address of the Person entitled
thereto as such address shall appear in the Security Register.
The Securities shall be redeemable as provided in Article Eleven.
The Securities are not entitled to the benefit of any sinking fund.
The Securities shall be subordinated in right of payment to Senior
Indebtedness as provided in Article Twelve.
The Securities shall be convertible as provided in Article Thirteen.
The Securities shall be subject to repurchase at the option of the Holders
upon a Change of Control as provided in Article Fourteen.
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SECTION 302. Denominations.
The Securities shall be issuable only in registered form without coupons and
only in denominations of $1,000 and any integral multiple thereof.
SECTION 303. Execution, Authentication, Delivery and Dating.
The Securities shall be executed on behalf of the Company by its Chairman of
the Board, its Vice Chairman of the Board, its President, its Executive or
Senior Vice President or one of its Vice Presidents, under its corporate seal
reproduced thereon attested by its Chief Financial Officer, Treasurer,
Controller, secretary or one of its Assistant Secretaries. The signature of any
of these officers on the Securities may be manual or facsimile.
Securities bearing the manual or facsimile signatures of individuals who were
at any time the proper officers of the Company shall bind the Company,
notwithstanding that such individuals or any of them have ceased to hold such
offices prior to the authentication and delivery of such Securities or did not
hold such offices at the date of such Securities.
At any time and from time to time after the execution and delivery of this
Indenture, the Company may deliver Securities executed by the Company to the
Trustee for authentication, together with a Company Order for the authentication
and delivery of such Securities; and the Trustee in accordance with such Company
Order shall authenticate and deliver such Securities as in this Indenture
provided and not otherwise.
Each Security shall be dated the date of its authentication.
No Security shall be entitled to any benefit under this Indenture or be valid
or obligatory for any purpose unless there appears on such Security a
certificate of authentication substantially in the form provided for herein
executed by the Trustee by manual signature, and such certificate upon any
Security shall be conclusive evidence, and the only evidence, that such Security
has been duly authenticated and delivered hereunder and is entitled to the
benefits of this Indenture.
SECTION 304. Temporary Securities.
Pending the preparation of definitive Securities, the Company may execute, and
upon Company Order the Trustee shall authenticate and deliver, temporary
Securities, which are printed, lithographed, typewritten, mimeographed or
otherwise produced, in any authorized denomination, substantially of the tenor
of the definitive Securities in lieu of which they are issued and with such
appropriate insertions, omissions, substitutions and other variations as the
officers executing such Securities may determine, as evidenced by their
execution of such Securities.
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<PAGE>
If temporary Securities are issued, the Company will cause definitive
Securities to be prepared without unreasonable delay. After the preparation of
definitive Securities, the temporary Securities shall be exchangeable for
definitive Securities upon surrender of the temporary Securities at any office
or agency of the Company designated pursuant to Section 1002, without charge to
the Holder. Upon surrender for cancellation of any one or more temporary
Securities, the Company shall execute and the Trustee shall authenticate and
deliver in exchange therefor a like principal amount of definitive Securities of
authorized denominations. Until so exchanged the temporary Securities shall in
all respects be entitled to the same benefits under this Indenture as definitive
securities.
For purposes of this Section 304, each Global Security shall be considered a
definitive Security.
SECTION 305. Registration, Registration of Transfer and Exchange.
The Company shall cause to be kept at the Corporate Trust Office of the
Trustee a register (the register maintained in such office and in any other
office or agency designated pursuant to Section 1002 being herein sometimes
collectively referred to as the "Security Register") in which, subject to such
reasonable regulations as it may prescribe, the Company shall provide for the
registration of Securities and of transfers of Securities. The Trustee is
hereby appointed "Security Registrar" for the purpose of registering Securities
and transfers of Securities as herein provided.
Upon surrender for registration of transfer of any Security at an office or
agency of the Company designated pursuant to Section 1002 for such purpose, the
Company shall execute, and the Trustee shall authenticate and deliver, in the
name of the designated transferee or transferees, one or more new Securities of
any authorized denominations and of a like aggregate principal amount.
At the option of the Holder, Securities may be exchanged for other Securities
of any authorized denominations and of a like aggregate principal amount, upon
surrender of the Securities to be exchanged at such office or agency. Whenever
any Securities are so surrendered for exchange, the Company shall execute, and
the Trustee shall authenticate and deliver, the Securities which the Holder
making the exchange is entitled to receive.
All Securities issued upon any registration of transfer or exchange of
Securities shall be the valid obligations of the Company, evidencing the same
debt, and entitled to the same benefits under this Indenture, as the Securities
surrendered upon such registration of transfer or exchange.
Every Security presented or surrendered for registration of transfer or for
exchange shall (if so required by the Company or the Trustee) be duly endorsed,
or be accompanied by a
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<PAGE>
written instrument of transfer in form satisfactory to the Company and the
Security Registrar duly executed, by the Holder thereof or his attorney duly
authorized in writing.
No service charge shall be made to a Holder for any registration of transfer
or exchange of Securities, but the Company may require payment of a sum
sufficient to cover any tax or other governmental charge that may be imposed in
connection with any registration of transfer or exchange of Securities, other
than exchanges pursuant to Section 304, 906, 1108, 1302, 1402 or 1403(e) not
involving any transfer.
The Company shall not be required (i) to issue, register the transfer of, or
exchange any Security during a period beginning at the opening of business 15
days before the day of the mailing of a notice of redemption of Securities
selected for redemption under Section 1104 and ending at the close of business
on the day of such mailing, or (ii) to register the transfer of or exchange any
Security so selected for redemption in whole or in part, except the unredeemed
portion of any Security being redeemed in part.
The provisions of Clauses (1), (2), (3), (4) and (5) below shall apply only to
Global Securities:
(1) Each Global Security authenticated under this Indenture shall be
registered in the name of the Depositary designated for such Global Security or
a nominee thereof and delivered to such Depositary or a nominee thereof or
Custodian therefor, and each such Global Security shall constitute a single
Security for all purposes of this Indenture.
(2) Notwithstanding any other provision in this Indenture, no Global Security
may be exchanged in whole or in part for Securities registered, and no transfer
of a Global Security in whole or in part may be registered, in the name of any
Person other than the Depositary for such Global Security or a nominee thereof
unless (A) such Depositary (i) has notified the Company that it is unwilling or
unable to continue as Depositary for such Global Security or (ii) has ceased to
be a clearing agency registered under the Exchange Act, or (B) there shall have
occurred and be continuing an Event of Default with respect to such Global
Security.
(3) Subject to Clause (2) above, any exchange of a Global Security for other
Securities may be made in whole or in part, and all Securities issued in
exchange for a Global Security or any portion thereof shall be registered in
such names as the Depositary for such Global Security shall direct.
(4) Every Security authenticated and delivered upon registration of transfer
of, or in exchange for or in lieu of, a Global Security or any portion thereof,
whether pursuant to this Article Three or otherwise, shall be authenticated and
delivered in the form of, and shall be, a global Security, unless such Security
is registered in the name of a Person other than the Depositary for such Global
Security or a nominee thereof.
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<PAGE>
(5) The Depositary or its nominee, as registered owner of a Global Security,
shall be the Holder of such Global Security for all purposes under the Indenture
and the Securities, and owners of beneficial interests in a Global Security
shall hold such interests pursuant to the Applicable Procedures. Accordingly,
any such owner's beneficial interest in a Global Security will be shown only on,
and the transfer of such interest shall be effected only through, records
maintained by the Depositary or its nominee or its Agent Members and such owners
of beneficial interests in a Global Security will not be considered the owners
or holders thereof. Neither the Company nor the Trustee will have any
responsibility or obligation to the Depositary or any of its Agent Members with
respect to (i) the accuracy of any records maintained by the Depositary, (ii)
the payment by the Depositary or any Agent Members of any amount due to any
owner of beneficial interests in a Global Security in respect of any Securities,
(iii) the delivery of any notice by the Depositary or any Agent Member, or (v)
any other action taken by the Depositary or any Agent Members.
SECTION 306. Mutilated, Destroyed, Lost and Stolen Securities.
If any mutilated Security is surrendered to the Trustee, the Company shall
execute and the Trustee shall authenticate and deliver in exchange therefor a
new Security of like tenor and principal amount and bearing a number not
contemporaneously outstanding.
If there shall be delivered to the Company and the Trustee (i) evidence to
their satisfaction of the destruction, loss or theft of any Security and (ii)
such security or indemnity as may be required by them to save each of them and
any agent of either of them harmless, then, in the absence of notice to the
Company or the Trustee that such Security has been acquired by a bona fide
purchaser, the Company shall execute and the Trustee shall authenticate and
deliver, in lieu of any such destroyed, lost or stolen Security, a new Security
of like tenor and principal amount and bearing a number not contemporaneously
outstanding.
In case any such mutilated, destroyed, lost or stolen Security has become or
is about to become due and payable, the Company in its discretion may, instead
of issuing a new Security, pay such Security.
Upon the issuance of any new Security under this Section, the Company may
require the payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in relation thereto and any other expenses (including
the fees and expenses of the Trustee) connected therewith.
Every new Security issued pursuant to this Section in lieu of any destroyed,
lost or stolen Security shall constitute an original additional contractual
obligation of the Company, whether or not the destroyed, lost or stolen Security
shall be at any time enforceable by anyone, and shall be entitled to all the
benefits of this Indenture equally and proportionately with any and all other
Securities duly issued hereunder.
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The provisions of this Section are exclusive and shall preclude (to the extent
lawful) all other rights and remedies with respect to the replacement or payment
of mutilated, destroyed, lost or stolen Securities.
SECTION 307. Payment of Interest; Interest Rights Preserved.
Interest on any Security which is payable, and is punctually paid or duly
provided for, on any Interest Payment Date shall be paid to the Person in whose
name that Security (or one or more Predecessor Securities) is registered at the
close of business on the Regular Record Date for such interest.
Any interest on any Security which is payable, but is not punctually paid or
duly provided for, on any Interest Payment Date (herein called "Defaulted
Interest") shall forthwith cease to be payable to the Holder on the relevant
Regular Record Date by virtue of having been such Holder, and such Defaulted
Interest may be paid by the Company, at its election in each case, as provided
in Clause (1) or (2) below:
(1) The Company may elect to make payment of any Defaulted Interest to the
Persons in whose names the Securities (or their respective Predecessor
Securities) are registered at the close of business on a Special Record Date for
the payment of such Defaulted Interest, which shall be fixed in the following
manner. The Company shall notify the Trustee in writing of the amount of
Defaulted Interest proposed to be paid on each Security and the date of the
proposed payment, and at the same time the Company shall deposit with the
Trustee an amount of money equal to the aggregate amount proposed to be paid in
respect of such Defaulted Interest or shall make arrangements satisfactory to
the Trustee for such deposit prior to the date of the proposed payment, such
money when deposited to be held in trust for the benefit of the Persons entitled
to such Defaulted Interest as this clause provides. Thereupon, the Trustee
shall fix a Special Record Date for the payment of such Defaulted Interest which
shall be not more than 15 days and not less than 10 days prior to the date of
the proposed payment and not less than 10 days after the receipt by the Trustee
of the notice of the proposed payment. The Trustee shall promptly notify the
Company of such Special Record Date and, in the name and at the expense of the
Company, shall cause notice of the proposed payment of such Defaulted Interest
and the Special Record Date therefor to be mailed, first-class postage prepaid,
to each Holder at his address as it appears in the Security Register, not less
than 10 days prior to such Special Record Date. Notice of the proposed payment
of such Defaulted Interest and the Special Record Date therefor having been so
mailed, such Defaulted Interest shall be paid to the Persons in whose names the
Securities (or their respective Predecessor Securities) are registered at the
close of business on such Special Record Date and shall no longer be payable
pursuant to the following clause (2).
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(2) The Company may make payment of any Defaulted Interest in any
other lawful manner not inconsistent with the requirements of any securities
exchange or automated quotation system on which the Securities may be listed or
quoted, and upon such notice, as may be required by such exchange, if, after
notice given by the Company to the Trustee of the proposed payment pursuant to
this Clause, such manner of payment shall be deemed practicable by the Trustee.
Subject to the foregoing provisions of this Section, each Security delivered
under this Indenture upon registration of transfer of or in exchange for or in
lieu of any other Security shall carry the rights to interest accrued and
unpaid, and to accrue, which were carried by such other Security.
Interest on any Security which is converted in accordance with Section 1302
during a Record Date Period shall be payable in accordance with the provisions
of Section 1302.
SECTION 308. Persons Deemed Owners.
Prior to due presentment of a Security for registration of transfer, the
Company, the Trustee and any agent of the Company or the Trustee may treat the
Person in whose name such Security is registered as the owner of such Security
for the purpose of receiving payment of principal of (and premium, if any) and
(subject to Section 307) interest on such Security and for all other purposes
whatsoever, whether or not such Security be overdue, and neither the Company,
the Trustee nor any agent of the Company or the Trustee shall be affected by
notice to the contrary.
SECTION 309. Cancellation.
All Securities surrendered for payment, redemption, repurchase, registration
of transfer or exchange or conversion shall, if surrendered to any Person other
than the Trustee, be delivered to the Trustee and shall be promptly cancelled by
it. The Company may at any time deliver to the Trustee for cancellation any
Securities previously authenticated and delivered hereunder which the Company
may have acquired in any manner whatsoever, and all Securities so delivered
shall be promptly cancelled by the Trustee. No Securities shall be
authenticated in lieu of or in exchange for any Securities cancelled as provided
in this Section, except as expressly permitted by this Indenture. All cancelled
Securities held by the Trustee shall be disposed of pursuant to the Trustee's
standard procedures or as otherwise directed by a Company Order and a
certificate of destruction delivered to the Company.
SECTION 310. Computation of Interest.
Interest on the Securities shall be computed on the basis of a 360-day year of
twelve 30-day months.
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ARTICLE FOUR
SATISFACTION AND DISCHARGE
SECTION 401. Satisfaction and Discharge of Indenture.
This Indenture shall cease to be of further effect (except as to any surviving
rights of conversion, registration of transfer or exchange of Securities herein
expressly provided for), and the Trustee, on demand of and at the expense of the
Company, shall execute proper instruments acknowledging satisfaction and
discharge of this Indenture, when
(1) either
(A) all Securities previously authenticated and delivered (other than (i)
Securities which have been destroyed, lost or stolen and which have been
replaced or paid as provided in Section 306 and (ii) Securities for whose
payment money has been deposited in trust or segregated and held in trust by the
Company and thereafter repaid to the Company or discharged from such trust, as
provided in Section 1003) have been delivered to the Trustee for cancellation;
or
(B) all such Securities not thereto delivered to the Trustee for cancellation
(i) have become due and payable, or
(ii) will become due and payable at their Stated Maturity within one year, or
(iii) are to be called for redemption within one year under arrangements
satisfactory to the Trustee for the giving of notice of redemption by the
Trustee in the name, and at the expense, of the Company,
and the Company, in the case of (i), (ii) or (iii) above, has deposited or
caused to be deposited with the Trustee funds in trust for the purpose and in an
amount sufficient to pay and discharge the entire indebtedness on such
Securities not theretofore delivered to the Trustee for cancellation, for
principal (and premium, if any) and interest to the date of such deposit (in the
case of Securities which have become due and payable) or to the Stated Maturity
or Redemption Date, as the case may be;
(2) the Company has paid or caused to be paid all other sums payable
hereunder by the Company;
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(3) the Trustee has not received any notice pursuant to the terms of Section
1210; and
(4) the Company has delivered to the trustee 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.
Notwithstanding the satisfaction and discharge of this Indenture, the
obligations of the Company in Sections 305, 306, 1001, 1002 and 1003, the
obligations of the Company to the Trustee under Section 607, the obligations of
the Trustee to any Authenticating Agent under Section 614 and, if money shall
have been deposited with the Trustee pursuant to subclause (B) of Clause (1) of
this Section, the obligations of the Trustee under Section 402 and the last
paragraph of Section 1003 shall survive.
SECTION 402. Application of Trust Money.
Subject to the provisions of the last paragraph of Section 1003, all money
deposited with the Trustee pursuant to Section 401 shall be held in trust and
applied by it, in accordance with the provisions of the Securities and this
Indenture, to the payment, either directly or through any Paying Agent
(including the Company acting as its own Paying Agent) as the Trustee may
determine, to the Persons entitled thereto, of the principal (and premium, if
any) and interest for whose payment such money has been deposited with the
Trustee. All moneys deposited with the Trustee pursuant to Section 401 (and
held by it or any Paying Agent) for the payment of securities subsequently
converted shall be returned to the Company upon Company Request.
ARTICLE FIVE
REMEDIES
SECTION 501. Events of Default.
"Event of Default", wherever used herein, means any one of the following
events (whatever the reason for such Event of Default and whether it shall be
occasioned by the provisions of Article Twelve or be voluntary or involuntary or
be effected by operation of law or pursuant to any judgment, decree or order of
any court or any order, rule or regulation of any administrative or governmental
body):
(1) default in the payment of the principal or Redemption Price of any
Security at its Maturity, whether or not such payment is prohibited by the
subordination provisions contained in Article Twelve; or
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(2) default in the payment of any interest upon any Security when it becomes
due and payable, and continuance of such default for a period of 30 days,
whether or not such payment is prohibited by the subordination provisions
contained in Article Twelve; or
(3) failure by the Company to give the Company Notice in accordance with
Section 1403; or
(4) default in the performance, or breach, of any covenant or warranty of the
Company in this Indenture (other than a covenant or warranty a default in whose
performance or whose breach is elsewhere in this Section specifically dealt
with), and continuance of such default or breach for a period of 60 days after
there has been given, by registered or certified mail, to the Company by the
Trustee or to the Company and the Trustee by the Holders of at lease 25% in
aggregate principal amount of the Outstanding Securities a written notice
specifying such default or breach and requiring it to be remedied and stating
that such notice is a "Notice of Default" hereunder; or
(5) any indebtedness of the Company for money borrowed in an aggregate
outstanding principal amount in excess of $10,000,000, whether such indebtedness
now exists or shall hereafter be created, is not paid at final maturity (either
upon its stated maturity or acceleration thereof) and such default in payment or
acceleration has not been cured or rescinded, within a period of 30 days after
there shall have been given, by registered or certified mail, to the Company by
the Trustee or to the Company and the Trustee by the Holders of at least 25% in
aggregate principal amount of the Outstanding Securities a written notice
specifying such default and requiring the Company to cause such indebtedness to
be discharged or cause such default to be cured or waived or such acceleration
to be rescinded or annulled and stating that such notice is a "Notice of
Default" hereunder; or
(6) the entry by a court having jurisdiction in the premises of (A) a decree
or order for relief in respect of the Company in an involuntary case or
proceeding under any applicable Federal or State bankruptcy, insolvency,
reorganization or other similar law or (B) a decree or order adjudging the
Company a bankrupt or insolvent, or approving as properly filed a petition
seeking reorganization, arrangement, adjustment or composition of or in respect
of the Company under any applicable Federal or State law, or appointing a
custodian, receiver, liquidator, assignee, trustee, sequestrator or other
similar official of the Company or of any substantial part of its property, or
ordering the winding up or liquidation of its affairs, and the continuance of
any such decree or order for relief or any such other decree or order unstayed
and in effect for a period of 60 consecutive days; or
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(7) the commencement by the Company of a voluntary case or proceeding
under any applicable Federal or State bankruptcy, insolvency, reorganization or
other similar law or of any other case or proceeding to be adjudicated a
bankrupt or insolvent, or the consent by it to the entry of a decree or order
for relief in respect of the Company in an involuntary case or proceeding under
any applicable Federal or State bankruptcy, insolvency, reorganization or other
similar law or to the commencement of any bankruptcy or insolvency case or
proceeding against it, or the filing by it of a petition or answer or consent
seeking reorganization or relief under any applicable Federal or State law, or
the consent by it to the filing of such petition or to the appointment of or
taking possession by a custodian, receiver, liquidator, assignee, trustee,
sequestrator or other similar official of the Company or of any substantial part
of its property, or the making by it of an assignment for the benefit of
creditors, or the admission by it in writing of its inability to pay its debts
generally as they become due, or the taking of corporate action by the Company
in furtherance of any such action.
SECTION 502. Acceleration of Maturity; Rescission and Annulment.
If an Event of Default (other than an Event of Default specified in Section
501(6) or 501(7)) occurs and is continuing, then and in every such case the
Trustee or the Holders of not less than 25% in principal amount of the
Outstanding Securities may declare the principal of all the Securities to be due
and payable immediately, by a notice in writing to the Company (and to the
Trustee if given by Holders), and upon any such declaration such principal and
all accrued interest thereon shall become immediately due and payable. If an
Event of Default specified in Section 501(6) or 501(7) occurs and is continuing,
the principal and any accrued interest thereon, all Outstanding Securities shall
become immediately due and payable without any declaration or other Act on the
part of the Trustee or any Holder.
At any time after such a declaration of acceleration has been made and before
a judgment or decree for payment of the money due has been obtained by the
Trustee as in this Article Five, the Holders of a majority in principal amount
of the Outstanding Securities, by written notice to the Company and the Trustee,
may rescind and annul such declaration and its consequences if:
(1) the Company has paid or deposited with the Trustee a sum sufficient to
pay:
(A) all overdue interest on all Securities,
(B) the principal of (and premium, if any, on) any Securities which have
become due otherwise than by such declaration of acceleration and interest
thereon at the rate borne by the Securities.
(C) to the extent that payment of such interest is lawful, interest upon the
overdue interest at a rate of ______% per annum, and
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(D) all sums paid or advanced by the Trustee hereunder and the reasonable
compensation, expense, disbursements and advances of the Trustee, its agents and
counsel;
and
(2) all Events of Default, other than the nonpayment of the principal of
Securities which have become due solely by such declaration of acceleration,
have been cured or waived as provided in Section 513.
No such rescission or annulment referred to above shall affect any subsequent
default or Event of Default or impair any right consequent thereon.
SECTION 503. Collection of Indebtedness and Suits for Enforcement by Trustee.
The Company covenants that if:
(1) default is made in the payment of any interest o any Security when such
interest becomes due and payable and such default continues for a period of 30
days, or
(2) default is made in the payment of the principal of (or premium, if any,
on) any Security at the Maturity thereof,
the Company will, upon demand of the Trustee, pay to it, for the benefit of the
Holders of such Securities, the whole amount then due and payable on such
Securities for principal (and premium, if any) and interest, and, to the extent
that payment of such interest shall be legally enforceable, interest on any
overdue principal (and premium, if any) and on any overdue interest, at a rate
of ______% per annum, and, in addition thereto, such further amount as shall be
sufficient to cover the costs and expenses of collection, including the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel.
If the Company fails to pay such amounts upon such demand, the Trustee, in its
own name and as Trustee of an express trust, may institute a judicial proceeding
for the collection of the sums so due and unpaid, may prosecute such proceeding
to judgment or final decree and may enforce the same against the Company or any
other obligor upon the Securities and collect the moneys adjudged or decreed to
be payable in the manner provided by law out of the property of the Company or
any other obligor upon the Securities, wherever situated.
If an Event of Default occurs and is continuing, the Trustee may in its
discretion proceed to protect and enforce its rights and the rights of the
Holders by such appropriate judicial proceedings as the Trustee shall deem most
effectual to protect and enforce any such rights, whether for the specific
enforcement of any covenant or agreement in this Indenture or in aid of the
exercise of any power granted herein, or to enforce any other proper remedy.
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SECTION 504. Trustee May File Proofs of Claim.
In case of the pendency of any receivership, insolvency, liquidation,
bankruptcy, reorganization, arrangement, adjustment, composition or other
judicial proceeding relative to the Company or any other obligor upon the
Securities or the property of the Company or of such other obligor or the
creditors of either, the Trustee (irrespective of whether the principal of, and
any interest on, the Securities shall then be due and payable as therein
expressed or by declaration or otherwise and irrespective of whether the Trustee
shall have made any demand on the Company for the payment of overdue principal
or interest) shall be entitled and empowered, by intervention in such proceeding
or otherwise:
(1) to file and prove a claim for the whole amount of principal, premium, if
any, and interest owing and unpaid in respect of the Securities and take such
other actions, including participating as a member, voting or otherwise, of any
official committee of creditors appointed in such matter, and to file such other
papers or documents, in each of the foregoing cases, as may be necessary or
advisable in order to have the claims of the Trustee (including any claim for
the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel) and of the Holders of Securities allowed in
such judicial proceeding, and
(2) to collect and receive any moneys or other property payable or deliverable
on any such claim and to distribute the same;
and any custodian, receiver, assignee, trustee, liquidator, sequestrator or
other similar official in any such judicial proceeding is hereby authorized by
each Holder to make such payments to the Trustee and, in the event that the
Trustee shall consent to the making of such payments directly to the Holders, to
pay to the Trustee any amount due to it for the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel and
any other amounts due the Trustee under Section 607.
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 a Security any plan
of reorganization, arrangement, adjustment or composition affecting the
Securities or the rights of any Holder thereof or to authorize the Trustee to
vote in respect of the claim of any Holder of a Security in any such proceeding;
provided, however, that the Trustee may, on behalf of such Holders, vote for the
election of a trustee in bankruptcy or similar official and may serve on a
creditors' committee.
SECTION 505. Trustee May Enforce Claims Without Possession of Securities.
All rights of action and claims under this Indenture or the Securities may be
prosecuted and enforced by the Trustee without the possession of any of the
Securities or the production thereof in any proceeding relating thereto, and any
such proceeding instituted by the Trustee
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shall be brought in its own name as Trustee of an express trust, and any
recovery of judgment shall, after provision for the payment of the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents
and counsel, be for the ratable benefit of the Holders of the Securities in
respect of which such judgment has been recovered.
SECTION 506. Application of Money Collected.
Subject to Article Twelve, any money collected by the Trustee pursuant to this
Article Five shall be applied in the following order, at the date or dates fixed
by the Trustee and, in case of the distribution of such money on account of
principal (or premium, if any) or interest, upon presentation of the Securities
and the notation thereon of the payment if only partially paid and upon
surrender thereof if fully paid:
FIRST: To the payment of all amounts due the Trustee under Section 607;
SECOND: To the payment of the amounts then due and unpaid for principal of (and
premium, if any) and interest on the Securities in respect of which or for the
benefit of which such money has been collected, ratably, without preference or
priority of any kind, according to the amounts due and payable on such
Securities for principal (and premium, if any) and interest, respectively; and
THIRD: Any remaining amounts shall be repaid to the Company.
SECTION 507. Limitation or Suits.
No Holder of any Security shall have any right to institute any proceeding,
judicial or otherwise, with respect to this Indenture, or for the appointment of
a receiver or trustee, or for any other remedy hereunder, unless:
(1) such Holder has previously given written notice to the Trustee of a
continuing Event of Default;
(2) the Holders of not less than 25% in principal amount of the Outstanding
Securities shall have made written request to the Trustee to institute
proceedings in respect of such Event of Default in its own name as Trustee
hereunder;
(3) such Holder or Holders have offered to the Trustee reasonable indemnity
against the costs, expenses and liabilities to be incurred in compliance with
such request;
(4) the Trustee for 60 days after its receipt of such notice, request and
offer of indemnity has failed to institute any such proceeding; and
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(5) no direction inconsistent with such written request has been given to the
Trustee during such 60-day period by the Holders of a majority in principal
amount of the Outstanding Securities;
it being understood and intended that no one or more Holders shall have any
right in any manner whatever by virtue of, or by availing of, any provision of
this Indenture to affect, disturb or prejudice the rights of any other Holders,
or to obtain or to seek to obtain priority or preference over any other Holders
or to enforce any right under this Indenture, except in the manner herein
provided and for the equal and ratable benefit of all the Holders.
SECTION 508. Unconditional Right of Holders to Receive Principal, Premium and
Interest and to Convert.
Notwithstanding any other provision in this Indenture, the Holder of any
Security shall have the right, which is absolute and unconditional, to receive
payment of the principal of (and premium, if any) and (subject to Section 307)
interest on such Security on the respective Stated Maturities expressed in such
Security (or, in the case of redemption or repurchase, on the Redemption Date or
Repurchase Date, as the case may be) and to convert such Security in accordance
with Article Thirteen and to institute suit for the enforcement of any such
payment and right to convert, and such rights shall not be impaired without the
consent of such Holder.
SECTION 509. Restoration of Rights and Remedies.
If the Trustee or any Holder has instituted any proceeding to enforce any
right or remedy under this Indenture and such proceeding has been discontinued
or abandoned for any reason, or has been determined adversely to the Trustee or
to such Holder, then and in every such case, subject to any determination in
such proceeding, the Company, the Trustee and the Holders shall be restored
severally and respectively to their former positions hereunder and thereafter
all rights and remedies of the Trustee and the Holders shall continue as though
no such proceeding had been instituted.
SECTION 510. Rights and Remedies Cumulative.
Except as otherwise provided with respect to the replacement or payment of
mutilated, destroyed, lost or stolen Securities in the last paragraph of Section
306, no right or remedy conferred upon or reserved to the Trustee or to the
Holders is intended to be exclusive of any other right or remedy, and every
right and remedy shall, to the extent permitted by law, be cumulative and in
addition to every other right and remedy given hereunder or now or hereafter
existing at law or in equity or otherwise. The assertion or employment of any
right or remedy hereunder, or otherwise, shall not prevent the concurrent
assertion or employment of any other appropriate right or remedy.
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SECTION 511. Delay or Omission Not Waiver.
No delay or omission of the Trustee or of any Holder of any Security to
exercise any right or remedy 105 accruing upon any Event of Default shall impair
any such right or remedy or constitute a waiver of any such Event of Default or
an acquiescence therein. Every right and remedy given by this Article Five or
by law to the Trustee or to the Holders may be exercised from time to time, and
as often as may be deemed expedient, by the Trustee or by the Holders, as the
case may be.
SECTION 512. Control by Holders.
The Holders of a majority in principal amount of the Outstanding Securities
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, provided that:
(1) such direction shall not be in conflict with any rule of law or with this
Indenture, and
(2) the Trustee may take any other action deemed proper by the Trustee which
is not inconsistent with such direction.
SECTION 513. Waiver of Past Defaults.
The Holders of not less than a majority in principal amount of the Outstanding
Securities may on behalf of the Holders of all the Securities waive any past
default hereunder and its consequences, except a default:
(1) in the payment of the principal of (or premium, if any) or interest on any
Security, or
(2) in respect of a covenant or provision hereof which under Article Nine
cannot be modified or amended without the consent of the Holder of each
Outstanding Security affected.
Upon any such waiver, such default shall cease to exist, and any Event of
Default arising therefrom shall be deemed to have been cured, for every purpose
of this Indenture; but no such waiver shall extend to any subsequent or other
default or impair any right consequent thereon.
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SECTION 514. Undertaking for Costs.
In any suit for the enforcement of any right or remedy under this Indenture,
or in any suit against the Trustee for any action taken, suffered or omitted by
it as Trustee, a court may require any party litigant in such suit to file an
undertaking to pay the costs of such suit, and may assess costs against any such
party litigant, in the manner and to the extent provided in the Trust Indenture
Act; provided that the provisions of this Section 514 (to the extent permitted
by law) shall not apply to any suit instituted by the Trustee, to any suit
instituted by any Holder, or group of Holders, holding in the aggregate more
than ten (10) percent in principal amount of Outstanding Securities, or to any
suit instituted by any Holder for the enforcement of the payment of the
principal of, premium, if any, or interest on any Security or to any suit or the
enforcement of the right to convert any Security in accordance with the
provisions of Article Thirteen or to require the Company to repurchase any
Security in accordance with the provisions of Article Fourteen.
SECTION 515. Waiver of Stay or Extension Laws.
The Company covenants (to the extent that it may lawfully do so) that it will
not at any time insist upon, or plead, or in any manner whatsoever claim or take
the benefit or advantage of, any stay, usury or extension law wherever enacted,
now or at any time hereafter in force, which may affect the covenants or the
performance of this Indenture; and the Company (to the extent that it may
lawfully do so) expressly waives all benefit or advantage of any such law and
covenants that it will not hinder, delay or impede the execution of any power
granted to the Trustee, but will suffer and permit the execution of every such
power as though no such law had been enacted.
ARTICLE SIX
THE TRUSTEE
SECTION 601. Certain Duties and Responsibilities.
(a) Except during the continuance of an Event of Default:
(1) the Trustee undertakes to perform such duties and only such duties as are
specifically set forth in this Indenture, and no implied covenants or
obligations shall be read into this Indenture against the Trustee; and
(2) in the absence of bad faith on its part, the Trustee may conclusively
rely, as to the truth of the statements and the correctness of the opinions
expressed therein, upon certificates or opinions furnished to the Trustee and
conforming to the requirements of this Indenture; but in the case of any such
certificates or opinions
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which by any provision hereof are specifically required to be furnished to the
Trustee, the Trustee shall be under a duty to examine the same to determine
whether or not they conform to the requirements of this Indenture, but not to
verify the contents thereof.
(b) If an Event of Default has occurred and is continuing, the Trustee shall
exercise such of the rights and powers vested in it by this Indenture, and use
the same degree of care and skill in their exercise, as a prudent person would
exercise or use under the circumstances in the conduct of such person's own
affairs.
(c) No provision of this Indenture shall be construed to relieve the Trustee
from liability for its own negligent action, its own negligent failure to act,
or its own willful misconduct, except that:
(1) this paragraph (c) shall not be construed to limit the effect of paragraph
(a) of this Section;
(2) the Trustee shall not be liable for any error of judgment made in good
faith by a Responsible Officer, unless it shall be proved that the Trustee was
negligent in ascertaining the pertinent facts;
(3) the Trustee shall not be liable with respect to any action taken or
omitted to be taken by it in good faith in accordance with the direction of the
Holders of a majority in principal amount of the Outstanding Securities relating
to the time, method and place of conducting any proceeding for any remedy
available to the Trustee, or exercising any trust or power conferred upon the
Trustee, under this Indenture; and
(4) no provision of this Indenture shall require the Trustee to expend or risk
its own funds or otherwise incur any financial liability in the performance of
any of its duties hereunder, or in the exercise of any of its rights or powers,
if it shall have reasonable grounds for believing that repayment of such funds
or adequate indemnity against such risk or liability is not reasonably assured
to it.
(d) Whether or not therein expressly so provided, every provision of this
Indenture relating to the conduct or affecting the liability of or affording
protection to the Trustee shall be subject to the provisions of this Section.
SECTION 602. Notice of Defaults.
Within 90 days after the occurrence of any default hereunder, the Trustee
shall give to all Holders of Securities, in the manner provided in Section 106,
notice of such default, unless such default shall have been cured or waived;
provided that, except in the case of a default in the payment of the principal
of, premium, if any, or interest on any Security, the Trustee shall be protected
in withholding such notice if and so long as the board of directors, the
executive
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committee or a trust committee of directors or any Responsible Officer of the
Trustee in good faith determines that the withholding of such notice is in the
interest of the Holders; and provided, further, that in the case of any default
of the type specified in Section 501(4), no such notice to Holders of Securities
shall be given until at least 30 days after the occurrence of such default. For
the purpose of this Section, the term "default" means any event which is, or
after notice or lapse of time or both would become, an Event of Default.
SECTION 603. Certain Rights of Trustee.
Subject to the provisions of Section 601:
(a) the Trustee may rely and shall be protected in acting or refraining from
acting upon any resolution, Officers' Certificate, other certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order, bond,
debenture, note, other evidence of indebtedness or other paper or document
believed by it to be genuine and to have been signed or presented by the proper
party or parties;
(b) any request or direction of the Company shall be sufficiently evidenced by
a Company Request or Company Order and any resolution of the Board of Directors
may be sufficiently evidenced by a Board Resolution;
(c) whenever in the administration of this Indenture the Trustee shall deem it
desirable that a matter be proved or established prior to taking, suffering or
omitting any action hereunder, the Trustee (unless other evidence is
specifically required by this Indenture) may, in the absence of bad faith on its
part, rely upon an Officers' Certificate;
(d) the Trustee may consult with counsel and the written advice of such
counsel or any Opinion of Counsel shall be full and complete authorization and
protection in respect of any action taken, suffered or omitted by it hereunder
in good faith and in reliance thereon;
(e) the Trustee shall be under no obligation to exercise any of the rights or
powers vested in it by this Indenture at the request or direction of any of the
Holders pursuant to this Indenture, unless such Holders shall have offered to
the Trustee reasonable security or indemnity against the costs, expenses and
liabilities which might be incurred by it in compliance with such request or
direction;
(f) the Trustee shall not be bound to make any investigation into the facts or
matters stated in any resolution, certificate, statement, instrument, opinion,
report, notice, request, direction, consent, order, bond, debenture, note, other
evidence of indebtedness or other paper or document, but the Trustee, in its
discretion, may make such further inquiry or investigation into such facts or
matters as it may see fit, and, if
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the Trustee shall determine to make such further inquiry or investigation, it
shall be entitled to examine the books, records and premises of the Company,
personally or by agent or attorney; and
(g) the Trustee may execute any of the trusts or powers or perform any duties
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.
SECTION 604. Not Responsible for Recitals or Issuance of Securities.
The recitals contained herein and in the Securities, except the Trustee's
certificates of authentication, shall be taken as the statements of the Company,
and the Trustee assumes no responsibility for their correctness. The Trustee
makes no representations as to the validity or sufficiency of this Indenture or
of the Securities. The Trustee shall not be accountable for the use or
application by the Company of Securities or the proceeds thereof.
SECTION 605. May Hold Securities.
The Trustee, any Authenticating Agent, any Paying Agent, any Security
Registrar or any other agent of the Company, in its individual or any other
capacity, may become the owner of pledgee of Securities and, subject to Sections
608 and 613, may otherwise deal with the Company with the same rights it would
have it if were not Trustee, Authenticating Agent, Paying Agent, Security
Registrar or such other agent.
SECTION 606. Money Held in Trust.
Money held by the Trustee in trust hereunder need not be segregated from other
funds except to the extent required by law. The Trustee shall be under no
liability for interest on any money received by it hereunder except as otherwise
agreed with the Company.
SECTION 607. Compensation and Reimbursement.
The Company agrees:
(1) to pay to the Trustee from time to time reasonable compensation for all
services rendered by it hereunder (which compensation shall not be limited by
any provision of law in regard to the compensation of a trustee of an express
trust);
(2) except as otherwise expressly provided herein, to reimburse the Trustee
upon its request for all reasonable expenses, disbursements and advances
incurred or made by the Trustee in accordance with any provision of this
Indenture (including the reasonable compensation and the expenses and
disbursements of its agents and
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counsel), except any such expense, disbursement or advance as may be
attributable to its negligence or bad faith; and
(3) to indemnify the Trustee for, and to hold it harmless against, any loss,
liability or expense incurred without negligence or bad faith on its part,
arising out of or in connection with the acceptance or administration of this
trust, including the costs and expenses of defending itself against any claim or
liability in connection with the exercise or performance of any of its powers or
duties hereunder.
When the Trustee incurs expenses or renders services in connection with an
Event of Default specified in clauses (6) and (7) of Section 501, the expenses
(including the reasonable charges and expenses of its counsel) and the
compensation for the services are intended to constitute expenses of
administration under any applicable federal or state bankruptcy, insolvency or
other similar law.
SECTION 608. Disqualification; Conflicting Interests.
If the Trustee has or shall acquire a conflicting interest within the meaning
of the Trust Indenture Act, the Trustee shall either eliminate such interest or
resign, to the extent and in the manner provided by, and subject to the
provisions of, the Trust Indenture Act and this Indenture.
SECTION 609. Corporate Trustee Required; Eligibility.
There shall at all times be a Trustee hereunder which shall be a Person that
is eligible pursuant to the Trust Indenture Act to act as such, having a
combined capital and surplus of at least $50,000,000 subject to supervision by
Federal or State Authority and in good standing. If such Person publishes
reports of condition at least annually, pursuant to law or to the requirements
of said supervising or examining authority, then for the purposes of this
Section, the combined capital and surplus of such Person shall be deemed to be
its combined capital and surplus as set forth in its most recent report of
condition so published. If at any time the Trustee shall cease to be eligible
in accordance with the provisions of this Section 609, it shall resign
immediately in the manner and with the effect hereinafter specified in this
Article and a successor shall be appointed pursuant to Section 610.
SECTION 610. Resignation and Removal; Appointment of Successor.
(a) No resignation or removal of the Trustee and no appointment of a successor
Trustee pursuant to this Article shall become effective until the acceptance of
appointment by the successor Trustee under Section 611.
(b) The Trustee may resign at any time by giving written notice thereof to the
Company. If an instrument of acceptance by a successor Trustee shall not have
been delivered
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to the Trustee within 30 days after the giving of such notice of resignation,
the resigning Trustee may petition any court of competent jurisdiction for the
appointment of a successor Trustee.
(c) The Trustee may be removed at any time by Act of the Holders of a majority
in principal amount of the Outstanding Securities, delivered to the Trustee and
to the Company.
(d) If at any time:
(1) the Trustee shall fail to comply with Section 608 after written request by
the Company or by any Holder who has been a bona fide Holder of a Security for
at least six months, or
(2) the Trustees shall cease to be eligible under Section 609 and shall fail
to resign after written request by the Company or by any such Holder, or
(3) the Trustee shall become incapable of acting or shall be adjudged a
bankrupt or insolvent or a receiver of the Trustee or of its property shall be
appointed or any public officer shall take charge or control of the Trustee or
of its property or affairs for the purpose of rehabilitation, conservation or
liquidation.
then, in any such case, (i) the Company by a Board Resolution may remove the
Trustee, or (ii) subject to Section 514, any Holder who has been a bona fide
Holder of a Security for at least six months may, on behalf of himself and all
others similarly situated, petition any court of competent jurisdiction for the
removal of the Trustee and the appointment of a successor Trustee.
(e) If the Trustee shall resign, be removed or become incapable of acting, or
if a vacancy shall occur in the office of Trustee for any cause, the Company, by
a Board Resolution, shall promptly appoint a successor Trustee. If, within one
year after such resignation, removal or incapability, or the occurrence of such
vacancy, a successor Trustee shall be appointed by Act of the Holders of a
majority in principal amount of the Outstanding Securities delivered to the
Company and the retiring Trustee, the successor Trustee so appointed shall,
forthwith upon its acceptance of such appointment, become the successor Trustee
and replace the successor Trustee appointed by the Company. If no successor
Trustee shall have been so appointed by the Company or the Holders and accepted
appointment in the manner hereinafter provided, any Holder who has been a bona
fide Holder of a Security for at least six months may, on behalf of himself and
all others similarly situated, petition any court of competent jurisdiction for
the appointment of a successor Trustee.
(f) The Company shall give notice of each resignation and each removal of the
Trustee and each appointment of a successor Trustee to all Holders in the manner
provided in
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Section 106. Each notice shall include the name of the successor Trustee and
the address of its Corporate Trust Office.
SECTION 611. Acceptance of Appointment by Successor.
Every successor Trustee appointed hereunder shall execute, acknowledge and
deliver to the Company and to the retiring Trustee an instrument accepting such
appointment, and thereupon the resignation or removal of the retiring Trustee
shall become effective and such successor Trustee, without any further act, deed
or conveyance, shall become vested with all the rights, powers, trusts and
duties of the retiring Trustee; but, on request of the Company or the successor
Trustee, such retiring Trustee shall, upon payment of its charges, execute and
deliver an instrument transferring to such successor Trustee all the rights,
powers and trusts of the retiring Trustee and shall duly assign, transfer and
deliver to such successor Trustee all property and money held by such retiring
Trustee hereunder. Upon request of any such successor Trustee, the Company
shall execute any and all instruments for more fully and certainly vesting in
and confirming to such successor Trustee all such rights, powers and trusts.
No successor Trustee shall accept its appointment unless at the time of such
acceptance such successor Trustee shall be qualified and eligible under this
Article.
SECTION 612. Merger, Conversion, Consolidation or Succession to Business.
Any corporation into which the Trustee may be merged or converted or with
which it may be consolidated, or any corporation resulting from any merger,
conversion or consolidation to which the Trustee shall be a party, or any
corporation succeeding to all or substantially all the corporate trust business
of the Trustee (including the trust created by this Indenture), shall be the
successor of the Trustee hereunder, provided such corporation shall be otherwise
qualified and eligible under this Article, without the execution or filing of
any paper or any further act on the part of nay of the parties hereto. In case
any Securities shall have been authenticated, but not delivered, by the Trustee
then in office, any successor by merger, conversion or consolidation to such
authenticating Trustee may adopt such authentication and deliver the Securities
so authenticated with the same effect as if such successor Trustee had itself
authenticated such Securities.
SECTION 613. Preferential Collection of Claims Against Company.
If and when the Trustee shall be or become a creditor of the Company (or any
other obligor upon the Securities), the Trustee shall be subject to the
provisions of the Trust Indenture Act regarding the collection of claims against
the Company (or any such other obligor).
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SECTION 614. Appointment of Authenticating Agent.
The Trustee may appoint an Authenticating Agent or Agents which shall be
authorized to act on behalf of the Trustee to authenticate Securities issued
upon original issue and upon exchange, registration of transfer, partial
conversion or partial redemption or pursuant to Section 306, and Securities so
authenticated shall be entitled to the benefits of this Indenture and shall be
valid and obligatory for all purposes as if authenticated by the Trustee
hereunder. Wherever reference is made in this Indenture to the authentication
and delivery of Securities by the Trustee or the Trustee's certificate of
authentication, such reference shall be deemed to include authentication and
delivery on behalf of the Trustee by an Authenticating Agent and a certificate
of authentication executed on behalf of the Trustee by an Authenticating Agent.
Each Authenticating Agent shall be acceptable to the Company and shall at all
times be a corporation organized and doing business under the laws of the United
States of America, any State thereof or the District of Columbia, authorized
under such laws to act as Authenticating Agent, having a combined capital and
surplus of not less than $50,000,000 and subject to supervision or examination
by Federal or State authority. If such Authenticating Agent publishes reports
of condition at least annually, pursuant to law or to the requirements of said
supervising or examining authority, then for the purposes of this Section, the
combined capital and surplus of such Authenticating Agent shall be deemed to be
its combined capital and surplus as set forth in its most recent report of
condition so published. If at any time an Authenticating Agent shall cease to
be eligible in accordance with the provisions of this Section, such
Authenticating Agent shall resign immediately in the manner and with the effect
specified in this Section.
Any corporation into which an Authenticating Agent may be merged or converted
or with which it may be consolidated, or any corporation resulting from any
merger, conversion or consolidation to which such Authenticating Agent shall be
a party, or any corporation succeeding to the corporate agency or corporate
trust business of an Authenticating Agent, shall continue to be an
Authenticating Agent, provided such corporation shall be otherwise eligible
under this Section, without the execution or filing of any paper or any further
act on the part of the Trustee or the Authenticating Agent.
An Authenticating Agent may resign at any time by giving written notice
thereof to the Trustee and to the Company. The Trustee may at any time
terminate the agency of an Authenticating Agent by giving written notice thereof
to such Authenticating Agent and to the Company. Upon receiving such a notice
of resignation or upon such a termination, or in case at any time such
Authenticating Agent shall cease to be eligible in accordance with the
provisions of this Section, the Trustee may appoint a successor Authenticating
Agent which shall be acceptable to the Company and shall mail written notice of
such appointment by first-class mail, postage prepaid, to all Holders as their
names and addresses appear in the Security Register. Any successor
Authenticating Agent upon acceptance of its appointment hereunder shall become
vested with all the rights, powers and duties of its predecessor hereunder, with
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like effect as if originally named as an Authenticating Agent. No successor
Authenticating Agent shall be appointed unless eligible under the provisions of
this Section.
The Trustee agrees to pay to each Authenticating Agent from time to time
reasonable compensation for its services under this Section, and the Trustee
shall be entitled to be reimbursed for such payments, subject to the provisions
of Section 607.
If an appointment is made pursuant to this Section, the Securities may have
endorsed thereon, in addition to the Trustee's certificate of authentication, an
alternative certificate of authentication in the following form:
This is one of the Securities described in the within-mentioned Indenture.
_____________________________,
As Trustee
By________________________
As Authenticating Agent
By________________________
Authorized Signatory
ARTICLE SEVEN
HOLDERS' LISTS AND REPORTS BY TRUSTEE AND COMPANY
SECTION 701. Company to Furnish Trustee Names and Addresses of Holders.
The Company will furnish or cause to be furnished to the Trustee:
(1) semi-annually, not more than 15 days after each Regular Record Date, a
list, in such form as the Trustee may reasonably require, of the names and
addresses of the Holders as of such Regular Record Date, and
(2) at such other times as the Trustee may request in writing, within 30 days
after the receipt by the Company of any such request, a list of similar form and
content as of a date not more than 15 days prior to the time such list is
furnished;
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provided that such list need not be furnished by the Company so long as the
Trustee is acting as Security Registrar.
SECTION 702. Preservation of Information; Communications to Holders.
(a) The Trustee shall preserve, in as current a form as is reasonably
practicable, the names and addresses of Holders contained in the most recent
list furnished to the Trustee as provided in Section 701 and the names and
addresses of Holders received by the Trustee in its capacity as Security
Registrar. The Trustee may destroy any list furnished to it as provided in
Section 701 upon receipt of a new list so furnished.
(b) The rights of Holders to communicate with other Holders with respect to
their rights under this Indenture or under the Securities, and the corresponding
rights and duties of the Trustee, shall be as provided by the Trust Indenture
Act.
(c) Every Holder, by receiving and holding the Securities, agrees with the
Company and the Trustee that neither the Company nor the Trustee nor any agent
of either of them shall be held accountable by reason of any disclosure of
information as to names and addresses of Holders made pursuant to the Trust
Indenture Act.
SECTION 703. Reports by Trustee.
(a) The Trustee shall transmit to Holders such reports concerning the Trustee
and its actions under this Indenture as may be required pursuant to the Trust
Indenture Act at the times and in the manner provided pursuant thereto.
(b) A copy of each such report shall, at the time of such transmission to
Holders, be filed by the Trustee with each stock exchange upon which the
Securities are listed, with the Commission and with the Company. The Company
will notify the Trustee when the Securities are listed on any stock exchange.
SECTION 704. Reports by Company.
The Company shall file with the Trustee and the Commission, and transmit to
Holders, such information, documents and other reports, and such summaries
thereof, as may be required pursuant to the Trust Indenture Act at the times and
in the manner provided pursuant to such Act; provided that any such information,
documents or reports required to be filed with the Commission pursuant to
Section 13 or 15(d) of the Securities Exchange Act of 1934 shall be filed with
the Trustee within 15 days after the same is so required to be filed with the
Commission.
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ARTICLE EIGHT
CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE
SECTION 801. Company May Consolidate, Etc., Only on Certain Terms.
The Company (a) shall not consolidate with or merge into any other Person or
convey, sell, transfer or lease its properties and assets substantially as an
entirety to any Person in one transaction or a series of related transactions
(other than a conveyance, sale, transfer or lease to a wholly owned Subsidiary),
and (b) shall not permit any Person (other than a wholly owned Subsidiary) to
merge into the Company or convey, transfer or lease its properties and assets
substantially as an entirety to the Company in one transaction or a series of
related transactions, unless:
(1) in case the Company shall consolidate with or merge into another Person or
convey, sell, transfer or lease its properties and assets substantially as an
entirety to any Person in one transaction or a series of related transactions,
the Person formed by such consolidation or into which the Company is merged or
the Person which acquires by conveyance, sale or transfer, or which leases, the
properties and assets of the Company substantially as an entirety shall be a
corporation, limited liability company, partnership or trust, shall be organized
and validly existing under the laws of the United States of America, any State
thereof or the District of Columbia and shall expressly assume, by an indenture
supplemental hereto, executed and delivered to the Trustee, in form satisfactory
to the Trustee, the due and punctual payment of the principal of (and premium,
if any) and interest on all the Securities and the performance or observance of
every covenant of this Indenture on the part of the Company to be performed or
observed and shall have provided for conversion rights in accordance with
Article Thirteen;
(2) immediately after giving effect to such transaction, no Event of Default,
and no event which, after notice or lapse of time or both, would become an Event
of Default, shall have happened and be continuing; and
(3) the Company has delivered to the Trustee an Officers' Certificate and an
Opinion of Counsel, each stating that such consolidation, merger, conveyance,
transfer, sale or lease and, if a supplemental indenture is required in
connection with such transaction, such supplemental indenture is required in
connection with such transaction, such supplemental indenture comply with this
Article and that all conditions precedent herein provided for relating to such
transaction have been complied with.
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SECTION 802. Successor Substituted.
Upon any consolidation of the Company with, or merger of the Company into, any
other Person or any conveyance, transfer or lease of the properties and assets
of the Company substantially as an entirety in accordance with Section 801, the
successor Person formed by such consolidation or into which the Company is
merged or to which such conveyance, transfer, sale or lease is made shall
succeed to, and be substituted for, and may exercise every right and power of,
the Company under this Indenture with the same effect as if such successor
Person had been named as the Company herein, and thereafter, except in the case
of a lease, the predecessor Person shall be relieved of all obligations and
covenants under this Indenture and the Securities.
ARTICLE NINE
SUPPLEMENTAL INDENTURES
SECTION 901. Supplemental Indentures Without Consent of Holders.
Without the consent of any Holders, the Company, when authorized by a Board
Resolution, and the Trustee, at any time and from time to time, may enter into
one or more indentures supplemental hereto, in form satisfactory to the Trustee,
for any of the following purposes:
(1) to evidence, pursuant to Article Eight, the succession of another Person
to the Company and the assumption by any such successor of the covenants and
obligations of the Company herein and in the Securities; or
(2) to add to the covenants of the Company for the benefit of the Holders, or
to surrender any right or power herein conferred upon the Company; or
(3) to secure the Securities; or
(4) to make provision with respect to the conversion rights of Holders
pursuant to the requirements of Section 1311 or the repurchase obligations of
the Company pursuant to the requirements of Section 1405; or
(5) to cure any ambiguity, to correct or supplement any provision herein which
may be inconsistent with any other provision herein, or to make any other
provisions with respect to matters or questions arising under this Indenture
which shall not be inconsistent with the provisions of this Indenture; provided
that such action pursuant to this Clause (5) shall not materially adversely
affect the interests of the Holders.
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SECTION 902. Supplemental Indentures with Consent of Holders.
With the written consent of the Holders of not less than a majority in
principal amount of the Outstanding Securities, by the Act of said Holders
delivered to the Company and the Trustee, the Company, when authorized by a
Board Resolution, and the Trustee may enter into an indenture or indentures
supplemental hereto for the purpose of adding any provisions to or changing in
any manner or eliminating any of the provisions of this Indenture or of
modifying in any manner the rights of the Holders under this Indenture; provided
that no such supplemental indenture shall, without the consent or affirmative
vote of the Holder of each Outstanding Security affected thereby:
(1) change the Stated Maturity of the principal of, or any installment of
interest on, any Security, or reduce the principal amount thereof or the rate of
interest thereon or the amounts payable upon the redemption or repurchase
thereof, or change the place of payment where, or the place or currency in
which, any Security or any premium or interest thereon or any other amount in
respect thereof is payable, or impair the right to institute suit for the
enforcement of any payment in respect of any Security on or after the Stated
Maturity thereof (or, in the case of redemption or any repurchase, on or after
the Redemption Date or Repurchase Date, as the case may be), or, except as
provided by Section 1311, adversely affect the right to convert any Security as
provided in Article Thirteen, or modify the provisions of this Indenture with
respect to the subordination of the Securities in a manner adverse to the
Holders, or
(2) reduce the percentage in principal amount of the Outstanding Securities
the consent of whose Holders is required for any such supplemental indenture or
the consent of whose Holders is required for any waiver (of compliance with
certain provisions of this Indenture or certain defaults hereunder and their
consequences) provided for in this Indenture, or
(3) modify the obligation of the Company to maintain an office or agency in
the Borough of Manhattan, The City of New York pursuant to Section 1002, or
(4) modify any of the provisions of this Section, Section 513 or Section 1009,
except to increase any percentage contained herein or therein or to provide that
certain other provisions of this Indenture cannot be modified or waived without
the consent of the Holder or each Outstanding Security affected thereby, or
(5) modify the provisions of Article Twelve, Article Thirteen or Article
Fourteen in a manner adverse to the Holders.
It shall not be necessary for any Act of Holders under this Section to approve
the particular form of any proposed supplemental indenture, but it shall be
sufficient if such Act shall approve the substance thereof.
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SECTION 903. Execution of Supplemental Indentures.
In executing, or accepting the additional trusts created by, any supplemental
indenture permitted by this Article Nine or the modifications of the trusts
created by this Indenture, the Trustee shall be entitled to receive, and
(subject to Section 601) shall be fully protected in relying upon, an Opinion of
Counsel stating that the execution of such supplemental indenture is authorized
or permitted by this Indenture. The Trustee may, but shall not be obligated to,
enter into any such supplemental indenture which affects the Trustee's own
rights, duties or immunities under this Indenture or otherwise.
SECTION 904. Effect of Supplemental Indentures.
Upon the execution of any supplemental indenture under this Article Nine, this
Indenture shall be modified in accordance therewith, and such supplemental
indenture shall form a part of this Indenture for all purposes; and every Holder
of Securities previously or thereafter authenticated and delivered hereunder
shall be bound thereby.
SECTION 905. Conformity with Trust Indenture Act.
Every supplemental indenture executed pursuant to this Article Nine shall
conform to the requirements of the Trust Indenture Act, as then in effect.
SECTION 906. Reference in Securities to Supplemental Indentures.
Securities authenticated and delivered after the execution of any supplemental
indenture pursuant to this Article Nine may, and shall if required by the
Trustee, bear a notation in form approved by the Trustee as to any matter
provided for in such supplemental indenture. If the Company shall so determine,
new Securities so modified as to conform, in the opinion of the Trustee and the
Company, to any such supplemental indenture may be prepared and executed by the
Company and authenticated and delivered by the Trustee in exchange for
Outstanding Securities.
SECTION 907. Notice of Supplemental Indentures.
Promptly after the execution by the Company and the Trustee of any
supplemental indenture pursuant to the provisions of Section 902, the Company
shall give notice to all Holders of Securities of such fact, setting forth in
general terms the substance of such supplemental indenture, in the manner
provided in Section 106. Any failure of the Company to give such notice, or any
defect therein, shall not in any way impair or affect the validity of any such
supplemental indenture.
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ARTICLE TEN
COVENANTS
SECTION 1001. Payment of Principal, Premium and Interest.
The Company will duly and punctually pay the principal of (and premium, if
any) and interest on the Securities in accordance with the terms of the
Securities and this Indenture.
SECTION 1002. Maintenance of Office or Agency.
The Company hereby appoints the corporate trust office of the Trustee, as its
agent in The City of New York where Securities may be presented or surrendered
for payment, where Securities may be surrendered for registration of transfer or
exchange, where conversion notices, certificates and other items required to be
delivered to effect conversion may be delivered and where notices and demands to
or upon the Company in respect of the Securities and this Indenture may be
served.
The Company hereby also appoints the Corporate Trust Office of the Trustee as
Paying Agent for the payment of principal of and interest on the Securities and
as Conversion Agent for the Conversion of any of the Securities in accordance
with Article Thirteen, and appoints the Corporate Trust Office of the Trustee as
transfer agent where Securities may be surrendered for registration of transfer
or exchange.
The Company may at any time and from time to time vary or terminate the
appointment of any such agent or appoint any additional agents with or without
cause for any or all of such purposes; provided, however, that until all of the
Securities have been delivered to the Trustee for cancellation, or moneys
sufficient to pay the principal of and interest on the Securities have been made
available for payment and either paid or returned to the Company pursuant to the
provisions of Section 1003, the Company will maintain in the Borough of
Manhattan, The City of New York, an office or agency where Securities may be
presented or surrendered for payment, where Securities may be surrendered for
registration of transfer or exchange, where Securities may be surrendered for
conversion and where notices and demand to or upon the Company, in respect of
the Securities and this Indenture may be served. The Company will give prompt
written notice to the Trustee, and will give notice to Holders of Securities in
the manner specified in Section 105, of the appointment or termination of any
such agents and of the location and any change in the location of any such
office or agency.
If at any time the Company shall fail to maintain any such required office or
agency, or shall fail to furnish the Trustee with the address thereof,
presentations and surrenders may be made and notices and demands may be served
on and Securities may be surrendered for conversion to the Corporate Trust
Office of the Trustee, and the Company hereby appoints the same as its agent to
receive such respective presentations, surrenders, notices and demands.
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SECTION 1003. Money for Security Payments to Be Held in Trust.
If the Company shall act as its own Paying Agent, it will, on or before each
due date of the principal of, premium, if any, or interest on any of the
Securities, segregate and hold in trust for the benefit of the Persons entitled
thereto a sum sufficient to pay the principal, premium, if any, or interest so
becoming due until such sums shall be paid to such Persons or otherwise disposed
of as herein provided and the Company will promptly notify the Trustee of its
action or failure so to act.
Whenever the Company shall have one or more Paying Agents, it will, on or
before each due date of the principal of, premium, if any, or interest on any
Securities, deposit with such Paying Agent(s) a sum sufficient to pay the
principal, premium, if any, or interest so becoming due, such sum to be held for
the benefit of the Persons entitled to such principal, premium, if any, or
interest, and (unless such Paying Agent is the Trustee) the Company will
promptly notify the Trustee of any failure so to act; provided that if such
deposit is made on such due date, such deposit shall be received by the Paying
Agent(s) by 10:00 a.m. New York City time on such date.
The Company will cause each Paying Agent other than the Trustee to execute and
deliver to the Trustee an instrument in which such Paying Agent shall agree with
the Trustee, subject to the provisions of this Section, that such Paying Agent
will:
(1) hold all sums held by it for the payment of the principal of, premium, if
any, or interest on Securities for the benefit of the Persons entitled thereto
until such sums shall be paid to such Persons or otherwise disposed of as herein
provided;
(2) give the Trustee notice of any default by the Company (or any other
obligor upon the Securities) in the making of any payment of principal, premium,
if any, or interest; and
(3) at any time during the continuance of any such default, upon the written
request of the Trustee, forthwith pay to the Trustee all sums so held by such
Paying Agent.
The Company may at any time, for the purpose of obtaining the satisfaction and
discharge of this Indenture or for any other purpose, pay, or by Company Order
direct any Paying Agent to pay, to the Trustee all sums held in trust by the
Company or such Paying Agent, such sums to be held by the Trustee upon the same
trusts as those upon which such sums were held by the Company or such Paying
Agent; and, upon such payment by any Paying Agent to the Trustee, such Paying
Agent shall be released from all further liability with respect to such money.
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Any money deposited with the Trustee or any Paying Agent, or then held by the
Company, in trust for the payment of the principal of, premium, if any, or
interest on any Security and remaining unclaimed for two years after such
principal, premium, if any, or interest has become due and payable shall be paid
to the Company on Company Request, or (if then held by the Company) shall be
discharged from such trust; and the Holder of such Security shall thereafter, as
an unsecured general creditor, look only to the Company for payment thereof, and
all liability of the Trustee or such Paying Agent with respect to such trust
money, and all liability of the Company as trustee thereof, shall thereupon
cease; provided that in the event that the Securities are no longer Global
Securities, the Trustee or such Paying Agent, before being required to make any
such repayment, may at the expense of the Company cause to be published once, in
a newspaper in the English language, customarily published on each Business Day
and of general circulation in the Borough of Manhattan, The City of New York,
notice that such money remains unclaimed and that, after a date specified
therein, which shall not be less than 30 days from the date of such publication,
any unclaimed balance of such money then remaining will be repaid to the
Company.
SECTION 1004. Statement by Officers as to Default.
The Company shall deliver to the Trustee, within 120 days after the end of
each fiscal year of the Company, an Officer's Certificate stating whether or not
to the knowledge of the signers thereof the Company is in compliance with all
conditions and covenants under the Indenture (without regard to any period of
grace or requirement of notice provided hereunder).
The Company will deliver to the Trustee, within three Business Days after
becoming aware of any default or Event of Default under this Indenture, an
Officers' Certificate specifying with particularity such default or Event of
Default and further stating what action the Company has taken, is taking or
proposes to take with respect thereto. For the purpose of this Section, the
term "default" means any event which is, or after notice or lapse of time or
both would become, an Event of Default.
Any notice required to be given under this Section 1004 shall be delivered to
the Trustee at its Corporate Trust Office.
SECTION 1005. Existence.
Subject to Article Eight, the Company will do or cause to be done all things
necessary to preserve and keep in full force and effect it existence, rights
(charter and statutory) and franchises; provided that the Company shall not be
required to preserve any such right or franchise if the Company shall determine
that its preservation is no longer desirable in the conduct of the business of
the Company and that its loss is not disadvantageous in any material respect to
the Holders.
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SECTION 1006. Maintenance of Properties.
The Company will cause all properties used or useful in the conduct of its
business to be maintained and kept in good condition, repair and working order
and supplied with all necessary equipment and will cause to be made all
necessary repairs, renewals, replacements, betterments and improvements thereof,
all as in the judgment of the Company may be necessary so that the business
carried on in connection therewith may be properly and advantageously conducted
at all times; provided that nothing in this Section shall prevent the Company
from discontinuing the operation or maintenance of any of such properties if
such discontinuance is, in the judgment of the Company, desirable in the conduct
of its business.
SECTION 1007. Payment of Taxes and Other Claims.
The Company will pay or discharge or cause to be paid or discharged, before
the same shall become delinquent, (1) all taxes, assessments and governmental
charges levied or imposed upon the Company or any Subsidiary upon the income,
profits or property of the Company or any Subsidiary, (2) all lawful claims for
labor, materials and supplies which, if unpaid, might by law become a lien upon
the property of the Company or any Subsidiary; provided that the Company shall
not be required to pay or discharge or cause to be paid or discharged any such
tax, assessment, charge or claim whose amount, applicability or validity is
being contested in good faith by appropriate proceedings and for which disputed
amounts adequate reserves in accordance with generally accepted accounting
principles have been made.
SECTION 1008. Book-Entry System.
If the Securities cease to trade in DTC's book-entry settlement system, the
Company covenants and agrees that it shall use reasonable efforts to make such
other book-entry arrangements that it determines are reasonable for the
Securities.
SECTION 1009. Waiver of Certain Covenants.
The Company may omit in any particular instance to comply with any covenant or
condition set forth in Sections 1006 and 1007, inclusive, if before the time for
such compliance the Holders of not less than a majority in principal amount of
the Outstanding Securities shall, by Act of such Holders, either waive such
compliance in such instance or generally waive compliance with such covenant or
condition, but no such waiver shall extend to or affect such covenant or
condition except to the extent so expressly waived, and, until such waiver shall
become effective, the obligations of the Company and the duties of the Trustee
in respect of any such covenant or condition shall remain in full force and
effect.
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SECTION 1010. Further Instruments and Acts.
Upon reasonable request of the Trustee, the Company will execute and deliver
such further instruments and perform such further acts as may be reasonably
necessary, or proper to carry out more effectively the purposes of this
Indenture.
ARTICLE ELEVEN
REDEMPTION OF SECURITIES
SECTION 1101. Right of Redemption.
The Securities may be redeemed at the election of the Company, as a whole or
from time to time in part, at any time on or after November __, 1999, at the
Redemption Prices specified in the form of Security set forth herein, together
with accrued interest to the Redemption Date.
SECTION 1102. Applicability of Article.
Redemption of Securities at the election of the Company, as permitted or
required by any provision of this Indenture, shall be made in accordance with
such provision and this Article Eleven.
SECTION 1103. Election to Redeem; Notice to Trustee.
The election of the Company to redeem any Securities pursuant to Section 1101
shall be evidenced by a Board Resolution. In case of any redemption at the
election of the Company of less than all the Securities, the Company shall, at
least 30 days prior to the Redemption Date fixed by the Company (unless a
shorter notice shall be satisfactory to the Trustee), notify the Trustee of such
Redemption Date and of the principal amount of Securities to be redeemed.
SECTION 1104. Selection by Trustee of Securities to Be Redeemed.
If less than all the Securities are to be redeemed, the particular Securities
to be redeemed shall be selected not more than 30 days prior to the Redemption
Date by the Trustee, from the Outstanding Securities not previously called for
redemption, by such method as the Trustee shall deem fair and appropriate and
which may provide for the selection for redemption of portions (equal to $1,000
or an integral multiple thereof) of the principal amount of Securities of a
denomination larger than $1,000.
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If any Security selected for partial redemption is converted in part before
termination of the conversion right with respect to the portion of the Security
so selected, the converted portion of such Security shall be deemed (so far as
may be) to be the portion selected for redemption. Securities which have been
converted during a selection of Securities to be redeemed shall be treated by
the Trustee as Outstanding for the purpose of such selection.
The Trustee shall promptly notify the Company and each Security Registrar in
writing of the Securities selected for redemption and, in the case of the
Securities selected for partial redemption, the principal amount thereof to be
redeemed.
For all purposes of this Indenture, unless the context otherwise requires, all
provisions relating to the redemption of Securities shall relate, in the case of
any Securities redeemed or to be redeemed only in part, to the portion of the
principal amount of such Securities which has been or is to be redeemed.
SECTION 1105. Notice of Redemption.
Notice of redemption shall be given by first-class mail, postage prepaid,
mailed not less than 20 nor more than 60 days prior to the Redemption Date, to
each Holder of Securities to be redeemed, at such Holder's address appearing in
the Security Register.
All notices of redemption shall state:
(1) the Redemption Date,
(2) the Redemption Price and accrued interest, if any,
(3) if less than all the Outstanding Securities are to be redeemed, the
identification (and, in the case of partial redemption of any Securities, the
principal amounts) of the particular Securities to be redeemed,
(4) that on the Redemption Date the Redemption Price and accrued interest, if
any, will become due and payable upon each such Security to be redeemed and that
interest thereon will cease to accrue on and after said date,
(5) the Conversion Rate, the date on which the right to convert the Securities
to be redeemed will terminate and the place or places where such Securities may
be surrendered for conversion, and
(6) the place or places where such Securities are to be surrendered for
payment of the Redemption Price and accrued interest, if any.
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Notice of redemption of Securities to be redeemed at the election of the
Company shall be given by the Company or, at the Company's request, by the
Trustee in the name and at the expense of the Company, and such notice, when
given to the Holders, shall be irrevocable.
SECTION 1106. Deposit of Redemption Price.
On or prior to any Redemption Date, the Company shall deposit with the Trustee
or with a Paying Agent (or, if the Company is acting as its own Paying Agent,
segregate and hold in trust as provided in Section 1003) an amount of money
(which shall be in immediately available funds on such Redemption Date)
sufficient to pay the Redemption Price of, and (except if the Redemption Date
shall be an Interest Payment Date) accrued interest on, all the Securities which
are to be redeemed on that date other than any Securities called for redemption
on that date which have been converted prior to the date of such deposit;
provided that if such deposit is made on the Redemption Date, such deposit shall
be received by the Trustee or Paying Agent, as the case may be, by 10:00 a.m.
New York City time on such date.
If any Security called for redemption is converted, any money deposited with
the Trustee or with any Paying Agent or so segregated and held in trust for the
redemption of such Security shall (subject to any right of the Holder of such
Security or any Predecessor Security to receive interest as provided in the last
paragraph of Section 307) be paid to the Company upon Company Request or, if
then held by the Company, shall be discharged from such trust.
SECTION 1107. Securities Payable on Redemption Date.
Notice of redemption having been given as aforesaid, the Securities so to be
redeemed shall, on the Redemption Date, become due and payable at the Redemption
Price therein specified, and from and after such date (unless the Company shall
default in the payment of the Redemption Price, including accrued interest) such
Securities shall cease to bear interest. Upon surrender of any such Security for
redemption in accordance with said notice, such Security shall be paid by the
Company at the Redemption Price, together with accrued interest to the
Redemption Date; provided that installments of interest whose Stated Maturity is
on or prior to the Redemption Date shall be payable to the Holders of such
Securities, or one or more Predecessor Securities, registered as such at the
close of business on the relevant Record Dates according to their terms and the
provisions of Section 307.
If any Security called for redemption shall not be so paid upon surrender
thereof for redemption, the principal (premium, if any) shall, until paid, bear
interest from the Redemption Date at a rate of _____% per annum.
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SECTION 1108. Securities Redeemed in Part.
Any Security which is to be redeemed only in part shall be surrendered at an
office or agency of the Company designated for that purpose pursuant to Section
1002 (with, if the Company or the Trustee so requires, due endorsement by, or a
written instrument of transfer in form satisfactory to the Company and the
Trustee duly executed by, the Holder thereof or his attorney duly authorized in
writing), and the Company shall execute, and the Trustee shall authenticate and
deliver to the Holder of such Security without service charge, a new Security or
Securities, of any authorized denomination as requested by such Holder, in
aggregate principal amount equal to and in exchange for the unredeemed portion
of the principal of the Security so surrendered.
SECTION 1109. Conversion Arrangement on Call for Redemption.
In connection with any redemption of Securities, the Company may arrange for
the purchase and conversion of any Securities by an agreement with one or more
investment bankers or other purchasers to purchase such Securities by paying to
the Trustee in trust for the Holders, on or before the Redemption Date, an
amount not less than the applicable Redemption Price, together with interest
accrued to the Redemption Date, of such Securities. Notwithstanding anything to
the contrary contained in this Article Eleven, the obligation of the Company to
pay the Redemption Price, together with interest accrued to the Redemption Date,
shall be deemed to be satisfied and discharged to the extent such amount is so
paid by such purchasers. If such an agreement is entered into (a copy of which
shall be filed with the Trustee prior to the Redemption Date), any Securities
not duly surrendered for conversion by the Holders thereof may, at the option of
the Company, be deemed, to the fullest extent permitted by law, and consistent
with any agreement or agreements with such purchasers, acquired by such
purchasers from such Holders and (notwithstanding anything to the contrary
contained in Article Thirteen) surrendered by such purchasers for conversion,
all as of immediately prior to the close of business on the Redemption Date (and
the right to convert any such Securities shall be extended through such time),
subject to payment of the above amount as aforesaid. At the direction of the
Company, the Trustee shall hold and dispose of any such amount paid to it in the
same manner as it would monies deposited with it by the Company for the
redemption of Securities. Without the Trustee's prior written consent, no
arrangement between the Company and such purchasers for the purchase and
conversion of any Securities shall increase or otherwise materially affect any
of the powers, duties, responsibilities or obligations of the Trustee as set
forth in this Indenture, and the Company agrees to indemnify the Trustee from,
and hold it harmless against, any loss, liability or expense arising out of or
in connection with any such arrangement for the purchase and conversion of any
Securities between the Company and such purchasers to which the Trustee has not
consented in writing, including the costs and expenses, including reasonable
legal fees, incurred by the Trustee in the defense of any claim or liability
arising out of or in connection with the exercise or performance of any of its
powers, duties, responsibilities or obligations under this Indenture.
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ARTICLE TWELVE
SUBORDINATION OF SECURITIES
SECTION 1201. Securities Subordinate to Senior Indebtedness.
The Company covenants and agrees, and each Holder of a Security, by his
acceptance thereof, likewise covenants and agrees, that, to the extent and in
the manner hereinafter set forth in this Article Twelve (subject to the
provisions of Article Four), the indebtedness represented by the Securities and
the payment of the principal of (premium, if any) and interest on each and all
of the Securities are hereby expressly made subordinate and subject in right of
payment to the prior payment in full of all Senior Indebtedness. Whenever in
this Article Twelve there is a reference, in any context, to the principal of
any Security as of any time, such reference shall be deemed to include reference
to the Repurchase Price or Redemption Price payable in cash in respect of such
Security to the extent that such Repurchase Price or Redemption Price payable in
cash is, was or would be so payable at such time, and express mention of the
Repurchase Price and the Redemption Price in any provision of this Article
Twelve shall not be construed as excluding the Repurchase Price or Redemption
Price payable in cash in those provisions of this Article Twelve when such
express mention is not made. This Article Twelve is made for the benefit of
existing and future holders of Senior Indebtedness, and such holders are made
obligees hereunder and they or each of them may enforce such provisions.
SECTION 1202. No Payments in Certain Circumstances; Payment Over of
Proceeds Upon Dissolution, Etc.
No payment on account of principal of, premium, if any, or interest on, or
redemption or repurchase of, the Securities shall be made if, at the time of
such payment or immediately after giving effect thereto: (i) a default in the
payment of principal, premium, if any, or interest or other amounts due on any
Senior Indebtedness occurs and is continuing (or, in the case of Senior
Indebtedness for which there is a period of grace, in the event of such a
default that continues beyond the period of grace specified in the instrument or
lease evidencing such Senior Indebtedness), unless and until such default shall
have been cured or waived in accordance with the agreements evidencing such
Senior Indebtedness or shall have ceased to exist; or (ii) a default, other than
a payment default, on any Designated Senior Indebtedness occurs and is
continuing that then permits holders of such Designated Senior Indebtedness to
accelerate the maturity thereof and the Trustee receives a notice of the default
(a "Payment Blockage Notice") from a Person who may give it pursuant to Section
1210 hereof. Notwithstanding the foregoing, the Company may make, and the
Trustee may receive and shall apply, any payment in respect of the Securities
(for principal, premium, if any, or interest or repurchase) if such payment was
made prior to the occurrence of any of the contingencies specified in clauses
(i) and (ii) above.
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If the Trustee receives any Payment Blockage Notice pursuant to clause (ii)
above, no subsequent Payment Blockage Notice shall be effective for purposes of
this Section unless and until (A) at least 365 days shall have elapsed since the
effectiveness of the immediately prior Payment Blockage Notice, and (B) all
scheduled payments of principal, premium, if any, and interest on the Securities
that have come due have been paid in full in cash. No nonpayment default that
existed or was continuing on the date of delivery of any Payment Blockage Notice
to the Trustee shall be, or be made, the basis for a subsequent Payment Blockage
Notice.
The Company may and shall resume payments on and distributions in respect of
the Securities upon the earlier of: (i) in the case of a payment default, the
date upon which the default is cured or waived in accordance with the agreements
evidencing the Senior Indebtedness with respect to which such payment default
occurred, or (ii) in the case of a nonpayment default, the earlier of the date
on which such default is cured or waived in accordance with the agreements
evidencing the Senior Indebtedness with respect to which such default occurred
or 179 days after the applicable Payment Blockage Notice is received.
In the event of (a) any insolvency or bankruptcy case or proceeding, or any
receivership, liquidation, reorganization or other similar case or proceeding in
connection therewith, relative to the Company or to its creditors, as such, or
to its assets, or (b) any liquidation, dissolution or other winding up of the
Company, whether voluntary or involuntary and whether or not involving
insolvency or bankruptcy, or (c) any assignment for the benefit of creditors or
any other marshaling of assets and liabilities of the Company, then and in any
such event the holders of Senior Indebtedness shall be entitled to receive
payment in full of all amounts due or to become due on or in respect of all
Senior Indebtedness in cash or other immediately available funds, or provision
shall be made for such payment in cash or other immediately available funds or
otherwise in a manner satisfactory to each holder of Senior Indebtedness with
respect to its indebtedness, before the Holders of the Securities are entitled
to receive any payment on account of principal of (or premium, if any) or
interest on the Securities, and to that end the holders of Senior Indebtedness
shall be entitled to receive, for any application to the payment thereof, any
payment or distribution of any kind or character, whether in cash, property or
securities, which may be payable or deliverable in respect of the Securities in
any such case, proceeding, dissolution, liquidation or other winding up or
similar event.
In the event that, notwithstanding the foregoing provisions of this Section,
the Trustee or the Holder of any Security shall have received any payment or
distribution of assets of the Company of any kind or character, whether in cash,
securities or other property, before all Senior Indebtedness is paid in full or
payment thereof provided for, and if such fact shall, at or prior to the time of
such payment or distribution, have been made known to the Trustee or, as the
case may be, such Holder, then and in such event such payment or distribution
shall be paid over or delivered forthwith to the trustee in bankruptcy,
receiver, liquidating trustee, custodian, assignee, agent or other Person making
payment or distribution of assets of the Company for application to the payment
of all Senior Indebtedness remaining unpaid, to the
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extent necessary to pay all Senior Indebtedness in full, after giving effect to
any concurrent payment or distribution to or for the holders of Senior
Indebtedness.
For purposes of this Article only, the words, "cash, securities or other
property" shall not be deemed to include shares of stock of the Company as
reorganized or readjusted, or securities of the Company or any other corporation
provided for by a plan of reorganization or readjustment which shares of stock
are subordinated in right of payment to all then outstanding Senior Indebtedness
to substantially the same extent as, or to a greater extent than, the Securities
are so subordinated as provided in this Article Twelve. The consolidation of
the Company with, or the merger of the Company into, another Person or the
liquidation or dissolution of the Company following the conveyance or transfer
of its properties and assets substantially as an entirety to another Person upon
the terms and conditions set forth in Article Eight shall not be deemed a
dissolution, winding up, liquidation, reorganization, assignment for the benefit
of creditors or marshaling of assets and liabilities of the Company for the
purposes of this Section if the Person formed by such consolidation or into
which the Company is merged or which acquires by conveyance or transfer such
properties and assets substantially as an entirety, as the case may be, shall,
as a part of such consolidation, merger, conveyance or transfer, comply with the
conditions set forth in Article Eight.
SECTION 1203. Prior Payment to Senior Indebtedness Upon Acceleration of
Securities.
In the event that any Securities are declared due and payable before their
Stated Maturity, then and in such event the holders of the Senior Indebtedness
outstanding at the time such Securities so become due and payable shall be
entitled to receive payment in full of all amounts due or to become due on or in
respect of such Senior Indebtedness, or provisions shall be made for such
payment in money or money's worth, before the Holders of the Securities are
entitled to receive any payment by the Company on account of the principal of
(or premium, if any) or interest on the Securities or on account of the purchase
or other acquisition of Securities.
In the event that, notwithstanding the foregoing, the Company shall make any
payment to the Trustee or the Holder of any Security prohibited by the foregoing
provisions of this Section, and if such fact shall, at or prior to the time of
such payment, have been made known to the Trustee or, as the case may be, such
Holder then and in such event such payment shall be paid over and delivered
forthwith to the holders of Senior Indebtedness, or as a court of competent
jurisdiction shall direct, for application to the payment of any due and unpaid
Senior Indebtedness, to the extent necessary to pay all such due and unpaid
Senior Indebtedness in cash or other immediately available funds, after giving
effect to any concurrent payment to or for the holders of Senior Indebtedness.
The provisions of this Section shall not apply to any payment with respect to
which Section 1202 would be applicable.
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SECTION 1204. Reserved.
[Reserved]
SECTION 1205. Payment Permitted if No Default.
Nothing contained in this Article or elsewhere in this Indenture or in any of
the Securities shall prevent (a) the Company, at any time except during the
pendency of any case, proceeding, dissolution, liquidation or other winding up,
assignment for the benefit of creditors or other marshaling of assets and
liabilities of the Company referred to in Section 1202 or under the conditions
described in Section 1203, from making payments at any time of principal of
(premium, if any) or interest on the Securities, or (b) the application by the
Trustee of any money deposited with it hereunder to the payment of or on account
of the principal of (and premium, if any) or interest on the Securities or the
retention of such payment by the Holders, if, at the time of such application by
the Trustee, it did not have knowledge that such payment would have been
prohibited by the provisions of this Article.
SECTION 1206. Subrogation to Rights of Holders of Senior Indebtedness.
Subject to the payment in full of all Senior Indebtedness, the Holders of the
Securities shall be subrogated to the extent of the payments or distributions
made to the holders of such Senior Indebtedness pursuant to the provisions of
this Article to the rights of the holders of such Senior Indebtedness to receive
payments and distributions of cash, property and securities applicable to the
Senior Indebtedness until the principal of (and premium, if any) and interest on
the Securities shall be paid in full. For purposes of such subrogation, no
payments or distributions to the holders of the Senior Indebtedness of any cash,
property or securities to which the Holders of the Securities or the Trustee
would be entitled except for the provisions of this Article, and no payments
over pursuant to the provisions of this Article to the holders of Senior
Indebtedness by Holders of the Securities or the Trustee, shall, as among the
Company, its creditors other than holders of Senior Indebtedness and the Holders
of the Securities, be deemed to be a payment or distribution by the Company to
or on account of the Senior Indebtedness.
SECTION 1207. Provisions Solely to Define Relative Rights.
The provisions of this Article are and are intended solely for the purpose of
defining the relative rights of the Holders of the Securities on the one hand
and the holders of Senior Indebtedness on the other hand. Nothing contained in
this Article or elsewhere in this Indenture or in the Securities is intended to
or shall (a) impair, as among the Company, its creditors other than holders of
Senior Indebtedness and the Holders of the Securities, the obligation of the
Company, which is absolute and unconditional, to pay to the Holders of the
Securities the principal of (premium, if any) and interest on the Securities as
and when the same shall become due and payable in accordance with their terms;
or (b) affect the relative
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rights against the Company of the Holders of the Securities and creditors of the
Company other than the holders of Senior Indebtedness; or (c) prevent the
Trustee or the Holder of any Security from exercising all remedies otherwise
permitted by applicable law upon default under this Indenture, subject to the
rights, if any, under this Article of the holders of Senior Indebtedness to
receive cash, property and securities otherwise payable or deliverable to the
Trustee or such Holder.
SECTION 1208. Trustee to Effectuate Subordination.
Each holder of a Security by his acceptance thereof authorizes and directs the
Trustee on his behalf to take such action as may be necessary or appropriate to
effectuate the subordination provided in this Article and appoints the Trustee
his attorney-in-fact for any and all such purposes.
SECTION 1209. No Waiver of Subordination Provisions.
No right of any present or future holder of any Senior Indebtedness to enforce
subordination as herein provided shall at any time in any way be prejudiced or
impaired by any act or failure to act on the part of the Company or by any act
or failure to act, in good faith, by any such holder of any Senior Indebtedness,
or by any non-compliance by the Company with the terms, provisions and covenants
of this Indenture, regardless of any knowledge thereof any such holder may have
or be otherwise charged with.
Without in any way limiting the generality of the foregoing paragraph, the
holders of Senior Indebtedness may, at any time and from time to time, without
the consent of or notice to the Trustee or the Holders of the Securities,
without incurring responsibility to the Holders of the Securities or the
obligations hereunder of the Holders of the Securities to the holders of Senior
Indebtedness, do any one or more of the following: (i) change the manner, place
or terms of payment, or the amount of interest, fees or other amounts payable in
respect of, or extend the time of payment of, or renew, increase, or otherwise
alter, Senior Indebtedness, or otherwise amend or supplement in any manner
Senior Indebtedness or any instrument evidencing the same or any agreement under
which Senior Indebtedness is outstanding; (ii) sell, exchange, release or
otherwise deal with any property pledged, mortgaged or otherwise securing Senior
Indebtedness; (iii) release any Person liable in any manner for the payment or
collection of Senior Indebtedness; (iv) exercise or refrain from exercising any
rights or remedies against the Company or any other Person; (v) give or fail to
give any notice, or take or fail to take any other action, required by law, by
agreement or otherwise to preserve the rights of any holder of Senior
Indebtedness against the Comapny or any other Person liable in respect of Senior
Indebtedness or with respect to any property pledged, mortgated, or otherwise
subject to a security interest or lien securing Senior Indebtedness; (vi)
perform or fail to perform any obligation of such holders of Senior Indebtedness
under any instrument or agreement evidencing, guaranteeing, securing or
otherwise affecting or relating to Senior Indebtedness; or (vii) take or fail to
take any action that might otherwise constitute a defense
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available to, or a discharge of, the Company or any other Person liable in
respect of Senior Indebtedness.
SECTION 1210. Notice to Trustee.
The Company shall give prompt written notice to the Trustee of any fact known
to the Company which would prohibit the making of any payment to or by the
Trustee in respect of the Securities. Notwithstanding the provisions of this
Article or any other provision of this Indenture, the Trustee shall not be
charged with knowledge of the existence of any facts which would prohibit the
making of any payment to or by the Trustee in respect of the Securities, unless
and until the Trustee shall have received written notice thereof from the
Company or a holder of Senior Indebtedness or from any trustee therefor; and,
prior to the receipt of any such written notice, the Trustee, subject to the
provisions of Section 801, shall be entitled in all respects to assume that no
such facts exist; provided that if the Trustee shall not have received the
notice provided for in this Section at least two Business Days prior to the date
upon which by the terms hereof any money may become payable for any purpose
(including, without limitation, the payment of the principal of (premium, if
any) or interest on any Security), then, anything herein contained to the
contrary notwithstanding, the Trustee shall have full power and authority to
receive such money and to apply the same to the purpose for which such money was
received and shall not be affected by any notice to the contrary which may be
received by it within two Business Days prior to such date.
Notwithstanding anything in this Article Twelve to the contrary, nothing shall
prevent any payment by the Trustee to the Holders of monies deposited with it
pursuant to Section 401, and any such payment shall not be subject to the
provisions of Section 1202 or 1203.
Subject to the provisions of Section 601, the Trustee shall 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 an agent bank or a trustee therefor)
to establish that such notice has been given by a holder of Senior Indebtedness
(or an agent bank or a trustee therefor). 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 this Article, the Trustee may request such
Person to furnish evidence to the reasonable satisfaction of the Trustee as to
the amount of Senior Indebtedness held 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 under this Article, 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.
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SECTION 1211. Reliance on Judicial Order or Certificate of Liquidating Agent.
Upon any payment or distribution of assets of the Company referred to in this
Article, the Trustee, subject to the provisions of Section 601, and the Holders
of the Securities shall be entitled to rely upon any order or decree entered by
any court of competent jurisdiction in which such insolvency, bankruptcy,
receivership, liquidation, reorganization, dissolution, winding up or similar
case or proceeding is pending, or a certificate of the trustee in bankruptcy,
receiver, liquidating trustee, custodian, assignee for the benefit of creditors,
agent or other Person making such payment or distribution, delivered to the
Trustee or to the Holders of Securities, for the purpose of ascertaining the
Persons entitled to participate in such payment or 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.
SECTION 1212. Trustee Not Fiduciary for Holders of Senior Indebtedness.
The Trustee shall not be deemed to owe any fiduciary duty to the holders of
Senior Indebtedness and shall not be liable to any such holders if it shall in
good faith mistakenly pay over or distribute to Holders of Securities or to the
Company or to any other Person cash, property or securities to which any holders
of Senior Indebtedness shall be entitled by virtue of this Article or otherwise.
SECTION 1213. Rights of Trustee as Holder of Senior Indebtedness;
Preservation of Trustee's Rights.
The Trustee in its individual capacity shall be entitled to all the rights set
forth in this Article with respect to any Senior Indebtedness which may at any
time be held by it, to the same extent as any other holder of Senior
Indebtedness, and nothing in this Indenture shall deprive the Trustee of any of
its rights as such holder.
Nothing in this Article shall apply to claims of, or payments to, the Trustee
under or pursuant to Section 607.
SECTION 1214. Article Applicable to Paying Agents.
In case at any time any Paying Agent other than the Trustee shall have been
appointed by the Company and be then acting hereunder, the term "Trustee" as
used in this Article shall in such case (unless the context otherwise requires)
be construed as extending to and including such Paying Agent within its meaning
as fully for all intents and purposes as if such Paying Agent were named in this
Article in addition to or in place of the Trustee; provided that Section 1213
shall not apply to the Company or any Affiliate of this Company if it or such
Affiliate acts as Paying Agent.
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SECTION 1215. Certain Conversions Deemed Payment.
For the purposes of this Article only: (1) the issuance and delivery of
junior securities upon conversion of Securities in accordance with Article
Thirteen or upon the repurchase of Securities in accordance with Article
Fourteen shall not be deemed to constitute a payment or distribution on account
of the principal of or premium or interest on Securities or on account of the
purchase or other acquisition of Securities, and (2) the payment, issuance or
delivery of cash, property or securities (other than junior securities) upon
conversion of a Security shall be deemed to constitute payment on account of the
principal of such Security. For the purposes of this Section, the term "junior
securities" means (a) shares of any stock of any class of the Company and any
cash, securities or other property into which the Securities are convertible
pursuant to Article Thirteen and (b) securities of the Company which are
subordinated in right of payment to all Senior Indebtedness which may be
outstanding at the time of issuance or delivery of such securities to
substantially the same extent as, or to a greater extent than, the Securities
are so subordinated as provided in this Article. Nothing contained in this
Article or elsewhere in this Indenture or in the Securities is intended to or
shall impair, as among the Company, its creditors other than holders of Senior
Indebtedness and the Holders of the Securities, the right, which is absolute and
unconditional, of the Holder of any Security to convert such Security in
accordance with Article Thirteen or to exchange such Security for Common Stock
in accordance with Article Fourteen if the Company elects to satisfy its
obligation under Article Fourteen by the delivery of Common Stock.
ARTICLE THIRTEEN
CONVERSION OF SECURITIES
SECTION 1301. Conversion Privilege and Conversion Rate.
Subject to and upon compliance with the provisions of this Article Thirteen,
at the option of the Holder thereof, any Security may be converted at any time
into fully paid and nonassessable shares (calculated as to each conversion to
the nearest 1/100th of a share) of Common Stock of the Company at the Conversion
Rate, determined as hereinafter provided, in effect at the time of conversion.
Such conversion right shall expire at the close of business on November __,
2003, subject, in the case of conversion of any Global Security, to any
Applicable Procedures. In case a Security or portion thereof is called for
redemption at the election of the Company or the Holder thereof exercises his
right to require the Company to repurchase a Security or portion thereof, such
conversion right in respect of such Security, shall expire (a) at the close of
business on the Business Day immediately preceding the Redemption Date, in the
case of a Security called for redemption, and (b) at the close of business on
the Repurchase Date, in the case of a Security tendered for repurchase, in each
case unless the Company defaults in making the payment due upon redemption or
repurchase, as the case may be, and in each case subject as aforesaid to any
Applicable Procedures with respect to any Global Security.
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The rate at which shares of Common Stock shall be delivered upon conversion
(herein called the "Conversion Rate") shall be initially ____ shares of Common
Stock for each $1,000 principal amount of Securities (equivalent to a conversion
price of approximately $____ per share of Common Stock). The Conversion Rate
shall be adjusted in certain instances as provided in this Article Thirteen.
SECTION 1302. Exercise of Conversion Privilege.
In order to exercise the conversion privilege, the Holder of any Security to
be converted shall surrender such Security, duly endorsed or assigned to the
Company or in blank, at any office or agency of the Company maintained for that
purpose pursuant to Section 1002, accompanied by a duly signed conversion notice
substantially in the form set forth in Section 205 stating that the Holder
elects to convert such Security or, if less than the entire principal amount
thereof is to be converted the portion thereof to be converted. Each Security
surrendered for conversion (in whole or in part) during the Record Date Period
shall (except in the case of any Security or portion thereof which has been
called for redemption on a Redemption Date, or which is repurchasable on a
Repurchase Date, occurring, in either case, within such Record Date Period
(including any Securities or portions thereof called for redemption on a
Redemption Date that is a Regular Record Date or an Interest Payment Date, as
the case may be)) be accompanied by payment in New York Clearing House funds or
other funds acceptable to the Company of an amount equal to the interest payable
on such Interest Payment Date on the principal amount of such Security (or part
thereof, as the case may be) being surrendered for conversion. The interest so
payable on such Interest Payment Date with respect to any Security (or portion
thereof, if applicable) which has been called for redemption on a Redemption
Date, or is repurchasable on a Repurchase Date, occurring, in either case,
during the Record Date Period, which Security (or portion thereof, if
applicable) is surrendered for conversion during such Record Date Period (or on
the last Business Day prior to the Regular Record Date or Interest Payment Date
in the case of any Security (or portion thereof, as the case may be) called for
redemption on such Regular Record Date or Interest Payment Date, as the case may
be), shall be paid to the Holder of such Security being converted in an amount
equal to the interest that would have been payable on such Security if such
Security had been converted as of the close of business on such Interest Payment
Date. The interest so payable on such Interest Payment Date in respect of any
Security (or portion thereof, as the case may be) which has not been called for
redemption on a Redemption Date, or is not eligible for repurchase on a
Repurchase Date, occurring, in either case, during the Record Date Period, which
Security (or portion thereof, as the case may be) is surrendered for conversion
during such Record Date Period, shall be paid to the Holder of such Security as
of such Regular Record Date. Interest payable in respect of any Security
surrendered for conversion on or after a Regular Record Date and prior to an
Interest Payment Date shall be paid to the Holder of such Security as of such
Regular Record Date. Interest payable in respect of any Security surrendered
for conversion on or after a Regular Record Date and prior to an Interest
Payment Date shall be paid to the Holder of such Security as of the next
preceding Regular Record Date, notwithstanding the exercise of the right of
conversion.
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Except as provided in this paragraph and subject to the last paragraph of
Section 307, no cash payment or adjustment shall be made upon any conversion.
Except as provided in this paragraph and subject to the last paragraph of
Section 307, no cash payment of adjustment shall be made upon any conversion on
account of any interest accrued from the Interest Payment Date next preceding
the conversion date, in respect of any Security (or part thereof, as the case
may be) surrendered for conversion, or on account of any dividends on the Common
Stock issued upon conversion. The Company's delivery to the Holder of the
number of shares of Common Stock (and cash in lieu of fractions thereof, as
provided in this Indenture) into which a Security is convertible will be deemed
to satisfy the Company's obligation to pay the principal amount of the Security.
Securities shall be deemed to have been converted immediately prior to the
close of business on the day of surrender of such Securities for conversion in
accordance with the foregoing provisions, and at such time the rights of the
Holders of such Securities as Holders shall cease, and the Person or Persons
entitled to receive the Common Stock issuable upon conversion shall be treated
for all purposes as the record holder or holders of such Common Stock at such
time. As promptly as practicable on or after the conversion date, the Company
shall issue and deliver to the Trustee, for delivery to the Holder, a
certificate or certificates for the number of full shares of Common Stock
issuable upon conversion, together with payment in lieu of any fraction of a
share, as provided in Section 1303.
In the case of any Security which is converted in part only, upon such
conversion the Company shall execute and the Trustee shall authenticate and
deliver to the Holder thereof, at the expense of the Company, a new Security or
Securities of authorized denominations in the aggregate principal amount equal
to the unconverted portion of the principal amount of such Security. A Security
may be converted in part, but only if the principal amount of such Security to
be converted is any integral multiple of $1,000 and the principal amount of such
security to remain Outstanding after such conversion is equal to $1,000 or any
integral multiple of $1,00 in excess thereof.
SECTION 1303. Fractions of Shares.
No fractional shares of Common Stock shall be issued upon conversion of any
Security or Securities. If more than one Security shall be surrendered for
conversion at one time by the same Holder, the number of full shares that shall
be issuable upon conversion thereof shall be computed on the basis of the
aggregate principal amount of the Securities (or specified portions thereof) so
surrendered. Instead of any fractional share of Common Stock which would
otherwise be issuable upon conversion of any Security or Securities (or
specified portions thereof), the Company shall calculate and pay a cash
adjustment in respect of such fraction (calculated to the nearest 1/100th of a
share) in an amount equal to the same fraction of the Closing Price Per Share at
the close of business on the day of conversion.
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SECTION 1304. Adjustment of Conversion Rate.
The Conversion Rate shall be subject to adjustments from time to time as
follows:
(1) In case the Company shall pay or make a dividend or other distribution on
any class of capital stock of the Company payable in shares of Common Stock, the
Conversion Rate in effect at the opening of business on the day following the
date fixed for the determination of stockholders entitled to receive such
dividend or other distribution shall be increased by dividing such Conversion
Rate by a fraction of which the numerator shall be the number of shares of
Common Stock outstanding at the close of business on the date fixed for such
determination and the denominator shall be the sum of such number of shares and
the total number of shares constituting such dividend or other distribution,
such increase to become effective immediately after the opening of business on
the day following the date fixed for such determination. For the purposes of
this paragraph (1), the number of shares of Common Stock at any time outstanding
shall not include shares held in the treasury of the Company but shall include
shares issuable in respect of scrip certificates issued in lieu of fractions of
shares of Common Stock. The Company will not pay any dividend or make any
distribution on shares of Common Stock held in the treasury of the Company.
(2) In case the Company shall issue rights, options or warrants to all holders
of its Common Stock entitling them to subscribe for or purchase shares of Common
Stock at a price per share less than the current market price per share
(determined as provided in paragraph (8) of this Section 1304) of the Common
Stock on the date fixed for the determination of stockholders entitled to
receive such rights, options or warrants, the Conversion Rate in effect at the
opening of business on the day following the date fixed for such determination
shall be increased by dividing such Conversion Rate by a fraction of which the
numerator shall be the number of shares of Common Stock outstanding at the close
of business on the date fixed for such determination plus the number of shares
of Common Stock which the aggregate of the offering price of the total number of
shares of Common Stock so offered for subscription or purchase would purchase at
such current market price and the denominator shall be the number of shares of
Common Stock outstanding at the close of business on the date fixed for such
determination plus the number of shares of Common Stock so offered for
subscription or business on the day following the date fixed for such
determination. For the purposes of this paragraph (2), the number of shares of
Common Stock at any time outstanding shall not include shares held in the
treasury of the Company but shall include shares issuable in respect of scrip
certificates issued in lieu of fractions of shares of Common Stock. The Company
will not issue any rights, options or warrants in respect of shares of Common
Stock held in the treasury of the Company.
(3) In case outstanding shares of Common Stock shall be subdivided into a
greater number of shares of Common Stock, the Conversion Rate in effect at the
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opening of business on the day following the day upon which such subdivision
becomes effective shall be proportionately increased, and, conversely, in case
outstanding shares of Common Stock shall each be combined into a smaller number
of shares of Common Stock, the Conversion Rate in effect at the opening of
business on the day following the day upon which such combination becomes
effective shall be proportionately reduced, such increase or reduction, as the
case may be, to become effective immediately after the opening of business on
the day following the day upon which such subdivision or combination becomes
effective.
(4) In case the Company shall, by dividend or otherwise, distribute to all
holders of its Common Stock evidences of its indebtedness, shares of any class
of capital stock, or other property (including securities, but excluding (i) any
rights, options or warrants referred to in paragraph (2) of this Section, (ii)
any dividend or distribution paid exclusively in cash, (iii) any dividend or
distribution referred to in paragraph (1) of this Section and (iv) any merger or
consolidation to which Section 1311 applies), the Conversion Rate shall be
adjusted so that the same shall equal the rate determined by dividing the
Conversion Rate in effect immediately prior to the close of business on the date
fixed for the determination of stockholders entitled to receive such
distribution by a fraction of which the numerator shall be the current market
price per share (determined as provided in paragraph (8) of this Section 1304)
of the Common Stock on the date fixed for such determination (the "Reference
Date") less the then fair market value (as determined by the Board of Directors,
whose determination shall be conclusive and described in a Board Resolution
filed with the Trustee) on the Reference Date of the portion of the assets,
shares or evidences of indebtedness so distributed applicable to one share of
Common Stock and the denominator shall be the current market price per share of
the Common Stock on the Reference Date, such adjustment to become effective
immediately prior to the opening of business on the day following the Reference
Date. In any case in which this paragraph (4) is applicable, paragraph (2) of
this Section shall not be applicable.
(5) In case the Company shall, by dividend or otherwise, distribute to all
holders of its Common Stock cash (excluding any cash that is distributed as a
part of a distribution referred to in paragraph (4) of this Section) in an
aggregate amount that, combined together with (I) the aggregate amount of any
other cash distributions to all holders of its Common Stock made exclusively in
cash within the 12 months preceding the date of payment of such distribution and
in respect of which no adjustment pursuant to this paragraph (5) has been made
and (II) the aggregate of any cash plus the fair market value (as determined by
the Board of Directors, whose determination shall be conclusive and described in
a Board Resolution) of consideration payable in respect of any tender offer by
the Company or any of its subsidiaries for all or any portion of the Common
Stock concluded within the 12 months preceding the date of payment of such
distribution and in respect of which no adjustment pursuant to paragraph (6) of
this Section 1304 has been made (the "combined cash and tender amount") exceeds
10% of
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the product of the current market price per share (determined as provided in
paragraph (8) of this Section 1304) of the Common Stock on the date for the
determination of holders of shares of Common Stock entitled to receive such
distribution times the number of shares of Common Stock outstanding on such date
(the "aggregate current market price"), then, and in each such case, immediately
after the close of business on such date for determination, the Conversion Rate
shall be adjusted so that the same shall equal the rate determined by dividing
the Conversion Rate in effect immediately prior to the close of business on the
date fixed for determination of the shareholders entitled to receive such
distribution by a fraction (i) the numerator of which shall be qual to the
current market price per share (determined as provided in paragraph (8) of this
Section) of the Common Stock on the date fixed for such determination less an
amount equal to the quotient of (x) the excess of such combined cash and tender
amount over such aggregate current market price divided by (y) the number of
shares of Common Stock outstanding on such date for determination and (ii) the
denominator of which shall be equal to the current market price per share
(determined as provided in paragraph (3) of this Section 1304) of the Common
Stock on such date for determination.
(6) In case a tender offer made by the Company or any Subsidiary for all or
any portion of the Common Stock shall expire and such tender offer or exchange
(as amended upon the expiration thereof) shall require the payment to
stockholders (based on the acceptance (up to any maximum specified in the terms
of the tender offer) of Purchased Shares (as defined below)) of an aggregate
consideration having a fair market value (as determined by the Board of
Directors, whose determination shall be conclusive and described in a Board
Resolution) that combined together with (I) the aggregate of the cash plus the
fair market value (as determined by the Board of Directors, whose determination
shall be conclusive and described in a Board Resolution), as of the expiration
of such tender or exchange offer, of consideration payable in respect of any
other tender or exchange offer by the Company or any Subsidiary for all or any
portion of the Common Stock expiring within the 12 months preceding the
expiration of such tender or exchange offer and in respect of which no
adjustment pursuant to this paragraph (6) has been made and (II) the aggregate
amount of any cash distributions to all holders of the Company's Common Stock
within 12 months preceding the expiration of such tender or exchange offer and
in respect of which no adjustment pursuant to paragraph (3) of this Section has
been made (the "combined tender and cash amount") exceeds 10% of the product of
the current market price per share of the Common Stock (determined as provided
in paragraph (8) of this Section 1304) as of the last time (the "Expiration
Time") tenders or exchanges could have been made pursuant to such tender or
exchange offer (as it may be amended) times the number of shares of Common Stock
outstanding (including any tendered or exchanged shares) as of the Expiration
Time, then, and in each such case, immediately prior to the opening of business
on the day after the date of the Expiration Time, the Conversion Rate shall be
adjusted so that the same shall equal the rate determined by
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dividing the Conversion Rate immediately prior to close of business on the date
of the Expiration Time by a fraction (i) the numerator of which shall be equal
to (A) the product of (I) the current market price per share of the Common Stock
(determined as provided in paragraph (8) of this Section 1304) on the date of
the Expiration Time multiplied by (II) the number of shares of Common Stock
outstanding (including any tendered or exchanged shares) on the Expiration Time
less (B) the combined tender and cash amount, and (ii) the denominator of which
shall be equal to the product of (A) the current market price per share of the
Common Stock (determined as provided in paragraph (8) of this Section 1304) as
of the Expiration Time multiplied (B) the number of shares of Common Stock
outstanding (including any tendered or exchanged shares) as of the Expiration
Time less the number of all shares validly tendered or exchanged and not
withdrawn as of the Expiration Time (the shares deemed so accepted up to any
such maximum, being referred to as the "Purchased Shares").
(7) The reclassification of Common Stock into securities other than Common
Stock (other than any reclassification upon a consolidation or merger to which
Section 1311 applies) shall be deemed to involve (a) a distribution of such
securities other than Common Stock to all holders of Common Stock (and the
effective date of such reclassification shall be deemed to be "the date fixed
for the determination of stockholders entitled to receive such distribution" and
"the date fixed for such determination" within the meaning of paragraph (4) of
this Section), and (b) a subdivision or combination, as the case may be, of the
number of shares of Common Stock outstanding immediately prior to such
reclassification into the number of shares of Common Stock outstanding
immediately thereafter (and the effective date of such reclassification shall be
deemed to be "the day upon which such subdivision becomes effective" or "the day
upon which such combination becomes effective", as the case may be, and "the day
upon which such subdivision or combination becomes effective" within the meaning
of paragraph (3) of this Section 1304).
(8) For the purpose of any computation under paragraphs (2), (4), (5) or (6)
of this Section 1304, the current market price per share of Common Stock on any
date shall be calculated by the Company and be deemed to be the average of the
daily Closing Prices Per Share for the five consecutive Trading Days selected by
the Company commencing not more than 10 Trading Days before, and ending not
later than, the earlier of the day in question and the day before the "ex date"
with respect to the issuance or distribution requiring such computation. For
purposes of this paragraph, the term "'ex date", when used with respect to any
issuance or distribution, means the first date on which the Common Stock trades
regular way in the applicable securities market or on the applicable securities
exchange without the right to receive such issuance or distribution.
(9) No adjustment in the Conversion Rate shall be required unless such
adjustment (plus any adjustments not previously made by reason of this paragraph
(9))
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would require an increase or decrease of at least one percent in such rate;
provided, however, that any adjustments which by reason of this paragraph (9)
are not required to be made shall be carried forward and taken into account in
any subsequent adjustment. All calculations under this Article shall be made to
the nearest cent or to the nearest one-hundredth of a share, as the case may be.
(10) The Company may make such increases in the Conversion Rate, for the
remaining term of the Securities or any shorter term, in addition to those
required by paragraphs (1), (2), (3), (4), (5) and (6) of this Section 1304, as
it considers to be advisable in order to avoid or diminish any income tax to any
holders of shares of Common Stock resulting from any dividend or distribution of
stock or issuance of rights or warrants to purchase or subscribe for stock or
from any event treated as such for income tax purposes. The Company shall have
the power to resolve any ambiguity or correct any error in this paragraph (1)
and its actions in so doing shall, absent manifest error, be final and
conclusive.
(11) To the extent permitted by applicable law, the Company from time to time
may increase the Conversion Rate by any amount for any period of time if the
period is at least twenty (20) days, the reduction is irrevocable during such
period, and the Board of Directors shall have made a determination that such
reduction would be in the best interests of the Company, which determination
shall be conclusive; provided, however, that no such reduction shall be taken
into account for purposes of determining whether the Closing Price Per Share of
the Common Stock exceeds the Conversion Price by 105% in connection with an
event which would otherwise be a Change of Control pursuant to Section 1404.
Whenever the Conversion Price is reduced pursuant to the preceding sentence, the
Company shall give notice of the reduction to the Holders in the manner provided
in Section 106 at least fifteen (15) days prior to the date the increased
Conversion Rate takes effect, and such notice shall state the increased
Conversion Rate and the period during which it will be in effect.
SECTION 1305. Notice of Adjustments of Conversion Rate.
Whenever the Conversion Rate is adjusted as herein provided:
(1) the Company shall compute the adjusted Conversion Rate in accordance with
Section 1304 and shall prepare a certificate signed by the principal accounting
or financial officer of the Company setting forth the adjusted Conversion Rate
and showing in reasonable detail the facts upon which such adjustment is based,
and such certificate shall promptly be filed with the Trustee and with each
Conversion Agent; and
(2) a notice stating that the Conversion Rate has been adjusted and setting
forth the adjusted Conversion Rate shall forthwith be prepared, and as soon as
practicable
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after it is prepared, such notice shall be provided by the Company to all
Holders in accordance with Section 106.
Neither the Trustee nor any Conversion Agent shall be under any duty or
responsibility with respect to any such certificate or the information and
calculations contained therein, except to exhibit the same to any Holder of
Securities desiring inspection thereof at its office during normal business
hours.
SECTION 1306. Notice of Certain Corporate Action.
In case:
(a) the Company shall declare a dividend (or any other distribution) on its
Common Stock payable (i) otherwise than exclusively in cash or (ii) exclusively
in cash in an amount that would require any adjustment pursuant to Section 1304;
or
(b) the Company shall authorize the granting to the holders of its Common
Stock of rights, options or warrants to subscribe for or purchase any shares of
capital stock of any class or of any other rights; or
(c) of any reclassification of the Common Stock of the Company, or of any
consolidation, merger, or share exchange to which the Company is a party and for
which approval of any stockholders of the Company is required, or of the
conveyance, sale, transfer or lease of all or substantially all of the assets of
the Company; or
(d) of the voluntary or involuntary dissolution, liquidation or winding up of
the Company; or
(e) the Company or any Subsidiary shall commence a tender offer for all or a
portion of the Company's outstanding shares of Common Stock (or shall amend any
such tender offer);
then the Company shall cause to be filed at each office or agency maintained for
the purpose of conversion of Securities pursuant to Section 1002, and shall
cause to be provided to all Holders in accordance with Section 106, at least 20
days (or 10 days in any case specified in clause (a) or (b) above) prior to the
applicable record, expiration or effective date hereinafter specified, a notice
stating (x) the date on which a record is to be taken for the purpose of such
dividend, distribution, rights, options or warrants, or, if a record is not to
be taken, the date as of which the holders of Common Stock of record to be
entitled to such dividend, distribution, rights, options or warrants are to be
determined, (y) the date on which the right to make tenders under such tender
offer expires or (z) the date on which such reclassification, consolidation,
merger, conveyance, transfer, sale, lease, dissolution, liquidation or winding
up is expected to become effective, and the date as of which it is expected that
holders of
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Common Stock of record shall be entitled to exchange their shares of Common
Stock for securities, cash or other property deliverable upon such
reclassification, consolidation, merger, conveyance, transfer, sale, lease,
dissolution, liquidation or winding up. Neither the failure to give such notice
or the notice referred to in the following paragraph nor any defect in such
notice shall affect the legality or validity of the proceedings clauses (a)
through (e) of this Section 1306. If at the time the Trustee shall not be a
Conversion Agent, a copy of such notice shall also be filed by the Company with
the Trustee.
The preceding paragraph to the contrary notwithstanding, the Company shall
cause to be filed at each office or agency maintained for the purpose of
conversion of Securities pursuant to Section 1002, and shall cause to be
provided to all Holders in accordance with Section 106 notice of any tender
offer by the Company or any Subsidiary for all or any portion of the Common
Stock at or about the time that such notice of tender offer is provided to the
public generally.
SECTION 1307. Company to Reserve Common Stock.
The Company shall at all times reserve and keep available, free from
preemptive rights, out of its authorized but unissued Common Stock, for the
purpose of effecting the conversion of Securities, the full number of shares of
Common Stock then issuable upon the conversion of all Outstanding Securities.
SECTION 1308. Taxes on Conversions.
Except as provided in the next sentence, the Company will pay any and all
taxes and duties that may be payable in respect of the issue or delivery of
shares of Common Stock on conversion of Securities pursuant hereto. The Company
shall not, however, be required to pay any tax or duty which may be payable in
respect of any transfer involved in the issue and delivery of shares of Common
Stock in a name other than that of the Holder of the Security or Securities to
be converted, and no such issue or delivery shall be made unless and until the
Person requesting such issue has paid to the Company the amount of any such tax
or duty, or has established to the satisfaction of the Company that such tax or
duty has been paid or that no such tax or duty need be paid.
SECTION 1309. Covenant as to Common Stock.
The Company agrees that all shares of Common Stock which may be delivered upon
conversion of Securities, upon such delivery, will have been duly authorized and
validly issued and will be fully paid and nonassessable and, except as provided
in Section 1308, the Company will pay all taxes, liens and charges with respect
to the issue thereof.
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SECTION 1310. Cancellation of Converted Securities.
All Securities delivered for conversion shall be delivered to the Trustee to
be cancelled by or at the direction of the Trustee, which shall dispose of the
same as provided in Section 309.
SECTION 1311. Provision in Case of Consolidation, Merger or Sale of Assets.
In case of any consolidation or merger of the Company with or into any other
Person, any merger of another Person with or into the Company (other than a
merger which does not result in any reclassification, conversion, exchange or
cancellation of outstanding shares of Common Stock of the Company) or any
conveyance, sale, transfer or lease of all or substantially all of the assets of
the Company in one transaction or a series of related transactions, the Person
formed by such consolidation or resulting from such merger or which acquires
such assets, as the case may be, shall execute and deliver to the Trustee a
supplemental indenture providing that the Holder of each Security then
Outstanding shall have the right thereafter, during the period such Security
shall be convertible as specified in Section 1301, to convert such Security only
into the kind and amount of securities, cash and other property receivable upon
such consolidation, merger, conveyance, sale, transfer or lease by a holder of
the number of shares of Common Stock of the Company into which such Security
might have been converted immediately prior to such consolidation, merger,
conveyance, sale, transfer or lease, assuming such holder of Common Stock of the
Company (i) is not a Person with which the Company consolidated or merged with
or into or which merged into or with the Company or to which such conveyance,
sale, transfer or lease was made, as the case may be ("Constituent Person"), or
an Affiliate of a Constituent Person and (ii) failed to exercise his rights of
election, if any, as to the kind or amount of securities, cash and other
property receivable upon such consolidation, merger, conveyance, sale, transfer,
or lease (provided that if the kind or amount of securities, cash and other
property receivable upon such consolidation, merger, conveyance, sale, transfer
or lease (provided that if the kind or amount of securities, cash and other
property receivable upon such consolidation, merger, conveyance, sale, transfer,
or lease is not the same for each share of Common Stock of the Company held
immediately prior to such consolidation, merger, conveyance, sale, transfer or
lease by others than a Constituent Persons or an Affiliate thereof and in
respect of which such rights of election shall not have been exercised ("Non-
electing Share"), then for the purpose of this Section 1311 the kind and amount
of securities, cash and other property receivable upon such consolidation,
merger, conveyance, sale, transfer or lease by the holders of each Non-electing
Share shall be deemed to be the kind and amount so receivable per share by a
plurality of the Non-electing Shares). Such supplemental indenture shall
provide for adjustments which, for events subsequent to the effective date of
such supplemental indenture, shall be as nearly equivalent as may be practicable
to the adjustments provided for in this Article. The above provisions of this
Section 1311 shall similarly apply to successive consolidations, mergers,
conveyances, sales, transfers or leases. Notice of the execution of such a
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supplemental indenture shall be given by the Company to the Holder of each
Security as provided in Section 106 promptly upon such execution.
Neither the Trustee, any Paying Agent, nor any Conversion Agent shall be under
any responsibility to determine the correctness of any provisions contained in
any such supplemental indenture relating either to the kind or amount of shares
of stock or other securities or property or cash receivable by Holders of
Securities upon the conversion of their Securities after any such consolidation,
merger, conveyance, transfer, sale or lease or to any such adjustment, but may
accept as conclusive evidence of the correctness of any such provisions, and
shall be protected in relying upon, an Opinion of Counsel with respect thereto,
which the Company shall cause to be furnished to the Trustee upon request.
For purposes of preventing duplicative adjustments, if and to the extent
Section 1311 applies to any event or occurrence, Section 1304 shall not apply.
SECTION 1312. Responsibility of Trustee for Conversion Provisions.
The Trustee, subject to the provisions of Section 601, and any Conversion
Agent shall not at any time be under any duty or responsibility to any Holder of
Securities to determine whether any facts exist which may require any adjustment
of the Conversion Rate, or with respect to the nature or extent of any such
adjustment when made, or with respect to the method employed, or herein or in
any supplemental indenture provided to be employed, in making the same, or
whether a supplemental indenture need to be entered into. Neither the Trustee,
subject to the provisions of Section 601, nor any Conversion Agent shall be
accountable with respect to the validity or value (or the kind or amount) of any
Common Stock, or of any other securities or property or cash, which may at any
time be issued or delivered upon the conversion of any Security; and it or they
do not make any representation with respect thereto. Neither the Trustee,
subject to the provisions of Section 601, nor any Conversion Agent shall be
responsible for any failure of the Company to make or calculate any cash payment
or to issue, transfer, or deliver any shares of Common Stock or share
certificates or other securities or property or cash upon the surrender of any
Security for the purpose of conversion; and the Trustee, subject to the
provisions of Section 601, and any Conversion Agent shall not be responsible for
any failure of the Company to comply with any of the covenants of the Company
contained in this Article.
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ARTICLE FOURTEEN
REPURCHASE OF SECURITIES AT THE OPTION OF THE
HOLDER UPON A CHANGE OF CONTROL
SECTION 1401. Right to Require Repurchase.
In the event that a Change of Control (as hereinafter defined) shall occur,
then each Holder shall have the right, at the Holder's option, but subject to
the provisions of Section 1402, to require the Company to repurchase, and upon
the exercise of such right the Company shall repurchase, all of such Holder's
Securities, or any portion of the principal amount thereof that is equal to
$1,000 or an integral multiple of $1,000 in excess thereof, on the date (the
"Repurchase Date") that is 45 days after the date of the Company Notice (as
defined in Section 1403) at a price equal to 100% of the principal amount of the
Securities to be repurchased plus interest accrued to the Repurchase Date (the
"Repurchase Price"); provided, however, that installments of interest on
Securities whose Stated Maturity is on or prior to the Repurchase Date shall be
payable in cash to the Holders of such Securities, or one or more Predecessor
Securities, registered as such at the close of business on the relevant Regular
Record Date according to their terms and the provisions of Section 307. Such
right to require the repurchase of the Securities shall not continue after a
discharge of the Company from its obligations with respect to the Securities in
accordance with Article Four, unless a Change of Control shall have occurred
prior to such discharge. At the option of the Company, the Repurchase Price may
be paid in cash or, subject to the fulfillment by the Company of the conditions
set forth Section 1402, by delivery of shares of Common Stock having a fair
market value equal to the Repurchase Price provided; however, that failure of
the Company to pay the Repurchase Price on the Repurchase Date either in cash or
by delivery of shares of Common Stock shall constitute an Event of Default for
purposes of Section 501(1) hereof notwithstanding the Company's inability to
comply with provisions or satisfy any conditions set forth in Section 1402.
Whenever in this Indenture (including Sections 202, 301, 501(2) and 508) there
is a reference, in an context, to the principal of any Security as of any time,
such reference shall be deemed to include reference to the Repurchase Price
payable in respect of such Security to the extent that such Repurchase Price is,
was or would be so payable at such time, and express mention of the Repurchase
Price in any provision of this Indenture shall not be construed as excluding the
Repurchase Price in those provisions of this Indenture when such express mention
is not made; provided that for the purposes of Article Twelve such reference
shall be deemed to include reference to the Repurchase Price only to the extent
the Repurchase Price is payable in cash.
SECTION 1402. Conditions to the Company's Election to Pay the Repurchase
Price in Common Stock.
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The Company may elect to pay the Repurchase Price by delivery of shares of
Common Stock pursuant to Section 1401 if and only if the following conditions
shall have been satisfied:
(a) The shares of Common Stock deliverable in payment of the Repurchase Price
shall have a fair market value as of the Repurchase Date of not less than the
Repurchase Price. For purposes of this Section 1402, the fair market value of
shares of Common Stock shall be determined by the Company and shall be equal to
95% of the average of the Closing Prices Per Share for the five consecutive
Trading Days ending on and including the third Trading Day immediately preceding
the Repurchase Date;
(b) The shares of Common Stock deliverable in payment of the Repurchase Price
are, or shall have been listed on the New York Stock Exchange or other national
securities exchange or are, or shall have been, approved for quotation on the
Nasdaq National Market, in either case, prior to the Repurchase Date; and
(c) All shares of Common Stock deliverable in payment of the Repurchase Price
shall be issued out of the Company's authorized but unissued Common Stock and,
will upon issue, be duly and validly issued and fully paid and nonassessable and
free of any preemptive rights.
If all of the conditions set forth in this Section 1402 are not satisfied in
accordance with the terms thereof, the Repurchase Price shall be paid by the
Company only in cash.
SECTION 1403. Notices, Method of Exercising Repurchase Right, Etc.
(a) Unless the Company shall have previously called for redemption all of the
Outstanding Securities or unless all of the Outstanding Securities shall have
theretofore been converted in accordance with Article Thirteen, on or before the
30th day after the occurrence of a Change of Control, the Company or, at the
request and expense of the Company on or before the 15th day after such
occurrence, the Trustee, shall give to all Holders, in the manner provided in
Section 106, notice (the "Company Notice") of the occurrence of the Change of
Control and of the repurchase right set forth herein arising as a result
thereof. The Company shall also deliver a copy of such notice of a repurchase
right to the Trustee.
Each notice of a repurchase right shall state:
(1) the Repurchase Date,
(2) the date by which the repurchase right must be exercised,
(3) the Repurchase Price, and whether the Repurchase Price shall be paid by
the Company in cash or by delivery of shares of Common Stock,
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(4) a description of the procedure which a Holder must follow to exercise a
repurchase right, and the place or places where such Securities are to be
surrendered for payment of the Repurchase Price and accrued interest, if any,
(5) that on the Repurchase Date the Repurchase Price, and accrued interest, if
any, will become due and payable upon each such Security designated by the
Holder to be repurchased, and that interest thereon shall cease to accrue on and
after said date, and
(6) the Conversion Rate then in effect, the date on which the right to convert
the principal amount of the Securities to be repurchased will terminate and the
place or places where such Securities may be surrendered for conversion.
No failure of the Company to give the foregoing notices or defect therein
shall limit any Holder's right to exercise a repurchase right or affect the
validity of the proceedings for the repurchase of Securities.
If any of the foregoing provisions or other provisions of this Article
Fourteen are inconsistent with applicable law, such law shall govern.
(b) To exercise a repurchase right, a Holder shall deliver to the Trustee or
any Paying Agent on or before the 30th day after the date of the Company Notice
(i) written notice of the Holder's exercise of such right, which notice shall
set forth the name of the Holder, the principal amount of the Securities to be
repurchased (and, if any Security is to repurchased in part, the portion of the
principal amount thereof to be repurchased and the name of the Person in which
the portion thereof to remain Outstanding after such repurchase is to be
registered), and a statement that an election to exercise the repurchase right
is being made thereby, and, in the event that the Repurchase Price shall be paid
in shares of Common Stock, the name or names (with addresses) in which the
certificate or certificates for shares of Common Stock shall be issued, and (ii)
the Securities with respect to which the repurchase right is being exercised.
Such written notice shall be irrevocable, except that the right of the Holder to
convert the Securities with respect to which the repurchase right is being
exercised shall continue until the close of business on the Repurchase Date.
(c) In the event a repurchase right shall be exercised in accordance with the
terms hereof, the Company shall pay or cause to be paid to the Trustee or the
Paying Agent the Repurchase Price in cash or shares of Common Stock, as provided
above, for paying to the Holder on the Repurchase Date or, if shares of Common
Stock are to be paid, as promptly after the Repurchase Date as practicable,
together with accrued and unpaid interest to the Repurchase Date payable with
respect to the Securities as to which the purchase right has been exercised;
provided, however, that installments of interest on Securities whose Stated
Maturity is on or prior to the Repurchase Date shall be payable in cash to the
Holders of such
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Securities, or one or more Predecessor Securities, registered as such at the
close of business on the relevant Regular Date according to the terms and
provisions of Section 307.
(d) If any Security (or portion thereof) surrendered for repurchase shall not
be so paid on the Repurchase Date, the principal amount of such Security (or
portion thereof, as the case may be) shall, until paid, bear interest to the
extent permitted by applicable law from the Repurchase Date at the rate of ____%
per annum, and each Security shall remain convertible into Common Stock until
the principal of such Security (or portion thereof, as the case may be) shall
have been paid or duly provided for.
(e) Any Security which is to be repurchased only in part shall be surrendered
to the Trustee (with, if the Company or the Trustee so requires, due endorsement
by, or a written instrument of transfer in form satisfactory to the Company and
the Trustee duly executed by, the Holder thereof or his attorney duly authorized
in writing), and the Company shall execute, and the Trustee shall authenticate
and make available for delivery to the Holder of such Security without service
charge, a new Security or Securities, containing identical terms and conditions,
each in an authorized denomination in aggregate principal amount equal to and in
exchange for the unrepurchased portion of the principal of the Security so
surrendered.
(f) Any issuance of shares of Common Stock in respect of the Repurchase Price
shall be deemed to have been effected immediately prior to the close of business
on the Repurchase Date and the Person or Persons in whose name or names any
certificate or certificates for shares of Common Stock shall be issuable upon
such repurchase shall be deemed to have become on the Repurchase Date the holder
or holders of record of the shares represented thereby; provided that any
surrender for repurchase on a date when the stock transfer books of the Company
shall be closed shall constitute the Person or Persons in whose name or names
the certificate or certificates for such shares are to be issued as the record
holder or holders thereof for all purposes at the opening of business on the
next succeeding day on which such stock transfer books are open. No payment or
adjustment shall be made for dividends or distributions on any Common Stock
issued upon repurchase of any Security declared prior to the Repurchase Date.
(g) No fractional shares shall be issued upon repurchase of Securities. If
more than one Security shall be repurchased from the same Holder and the
Repurchase Price shall be payable in shares of Common Stock, the number of full
shares which shall be issuable upon such repurchase shall be computed on the
basis of the aggregate principal amount of the Securities so repurchased.
Instead of any fractional share of Common Stock which would otherwise be
issuable on the repurchase of any Security or Securities, the Company will
deliver to the applicable Holder its check for the current market value of such
fractional share. The current market value of a fraction of a share is
determined by multiplying the current market price of a full share by the
fraction, and rounding the result to the nearest cent. For purposes of this
Section, the current market price of a share of Common Stock is the Closing
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Price Per Share of the Common Stock on the Trading Day immediately preceding the
Repurchase Date.
(h) Any issuance and delivery of certificates for shares of Common Stock on
repurchase of Securities shall be made without charge to the Holder of
Securities being repurchased for such certificates or for any tax or duty in
respect of the issuance or delivery of such certificates or the securities
represented thereby; provided, however, that the Company shall not be required
to pay any tax or duty which may be payable in respect of (i) income of the
Holder or (ii) any transfer involved in the issuance or delivery of certificates
for shares of Common Stock in a name other than that of the Holder of the
Securities being repurchased, and no such issuance or delivery shall be made
unless and until the Person requesting such issuance or delivery has paid to the
Company the amount of any such tax or duty or has established to the
satisfaction of the Company, that such tax or duty has been paid.
(i) All Securities delivered for repurchase shall be delivered to the Trustee,
the Paying Agent or any other agents (as shall be set forth in the Company
Notice) to be cancelled by or at the direction of the Trustee, which shall
dispose of the same as provided in Section 309.
SECTION 1404. Certain Definitions.
For purposes of this Article Fourteen,
(a) the term "beneficial owner" shall be determined in accordance with Rule
13d-3, as in effect on the date of the original execution of this Indenture,
promulgated by the Commission pursuant to the Exchange Act;
(b) a "Change of Control" shall be deemed to have occurred at the time, after
the original issuance of the Securities, of:
(i) the acquisition by any Person of (a) beneficial ownership,
directly or indirectly, through a purchase, merger or other
acquisition transaction or series of transactions, of shares of
capital stock of the Company entitling such Person to exercise 50%
or more of the total voting power of all shares of capital stock
of the Company entitled to vote generally in elections of
directors (any shares of voting stock of which such person or
group is the beneficial owner that are not then outstanding being
deemed outstanding for purposes of calculating such percentage),
other than any such acquisition by the Company, any Subsidiary of
the Company or any employee benefit plan of the Company existing
on the date of this Indenture or (b) the right or ability by
voting power, contract or otherwise to elect or designate for
election a majority of the entire Board of Directors; or
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(ii) any consolidation of the Company with, or merger of the Company into, any
other Person, any merger of another Person into the Company, or any
conveyance, sale, transfer or lease, in one transaction or a series of
related transactions, of all or substantially all of the assets (other than
to a wholly owned Subsidiary of the Company) of the Company to any other
Person (other than (a) any such transaction pursuant to which the holders
of 50% or more of the total voting power of all shares of capital stock of
the Company entitled to vote generally in elections of directors
immediately prior to such transaction have, directly or indirectly, at
least 50% or more of the total voting power of all shares of capital stock
of the continuing or surviving corporation entitled to vote generally in
elections of directors of the continuing or surviving corporation
immediately after such transaction and (b) a merger (x) which does not
result in any reclassification, conversion, exchange or cancellation of
outstanding shares of capital stock of the Company or (y) which is effected
solely to change the jurisdiction of incorporation of the Company and
results in a reclassification, conversion or exchange of outstanding shares
of Common Stock into solely shares of common stock);
provided, however, that a Change of Control shall not be deemed to have occurred
if either (a) the Closing Price Per Share on any five Trading Days within the
period of 10 consecutive Trading Days ending immediately after the later of the
date of the Change of Control or the date of the public announcement of the
Change of Control (in the case of a Change of Control under clause (i) above) or
the period of 10 consecutive Trading Days ending immediately prior to the date
of the Change of Control (in the case of a Change of Control under clause (ii)
above) shall equal or exceed 105% of the Conversion Price in effect on each such
Trading Day or (b) all of the consideration (excluding cash payments for
fractional shares and cash payments made pursuant to the exercise of dissenters'
appraisal rights) in a merger or consolidation otherwise constituting a Change
of Control under clause (i) and/or clause (ii) above consists of shares of
common stock traded on the New York Stock Exchange or other national securities
exchange or quoted on the Nasdaq National Market and as a result of such
transaction or transactions the Securities become convertible solely into shares
of such common stock;
(c) the term "Conversion Price" shall equal $1,000 divided by the Conversion
Rate; and
(d) for the purposes of Section 1404(b)(i), the term "Person" shall include
any syndicate or group which would be deemed to be a "person" under Section
12(d)(3) of the Exchange Act, as in effect on the date of the original execution
of this Indenture.
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SECTION 1405. Consolidation, Merger, Etc.
In the case of any reclassification, change, consolidation, merger,
combination, sale or conveyance to which Section 1311 applies, in which the
Common Stock of the Company is changed or exchanged as a result into the right
to receive shares of stock and other securities or property or assets (including
cash) which includes shares of Common Stock of the Company or common stock of
another person that are, or upon issuance will be, traded on a United States
national securities exchange or approved for trading on an established automated
over-the-counter trading market in the United States and such shares constitute
at the time such change or exchange becomes effective in excess of 50% of the
aggregate fair market value of such shares of stock and other securities,
property and assets (including cash) (as determined by the Company, which
determination shall be conclusive and binding), then the person formed by such
consolidation or resulting from such merger or combination or which acquires the
properties or assets (including cash) of the Company, as the case may be, shall
execute and deliver to the Trustee a supplemental indenture (which shall comply
with the Trust Indenture Act as in force at the date of execution of such
supplemental indenture) modifying the provisions of this Indenture relating to
the right of Holders to cause the Company to repurchase the Securities following
a Change of Control, including without limitation the applicable provisions of
this Article Fourteen and the definitions of the Common Stock and Change of
Control, as appropriate, and such other related definitions set forth herein as
determined in good faith by the Company (which determination shall be conclusive
and binding), to make such provisions apply to the common stock and the issue
thereof if different from the Company and Common Stock of the Company (in lieu
of the Company and the Common Stock of the Company).
ARTICLE FIFTEEN
IMMUNITY OF INCORPORATORS, STOCKHOLDERS,
OFFICERS AND DIRECTORS
SECTION 1501. Indenture and Securities Solely Corporate Obligations.
No recourse for the payment of the principal of or premium, if any, or
interest on any 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
Security, or because of the creation of any Indebtedness represented thereby,
shall be had against any incorporator, stockholder, employee, agent, officer, or
director or subsidiary, 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 waived and released as a
condition of, and as a consideration for, the execution of this Indenture and
the issue of the Securities.
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__________________________
This instrument may be executed in any number of counterparts, each of which
so executed shall be deemed to be an original, but all such counterparts shall
together constitute but one and the same instrument.
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IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly
executed all as of the day and year first above written.
NATIONAL DATA CORPORATION
By:______________________
Attest:
______________________
THE FIRST NATIONAL BANK OF CHICAGO
as Trustee
By:______________________
Name:
Title:
Attest:
______________________
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STATE OF GEORGIA ) ss.:
COUNTY OF FULTON )
On the ____ day of __________, 1996, before me personally came
________________________, to me known, who, being by me duly sworn, did depose
and say that he/she is ____________________________ of NATIONAL DATA
CORPORATION, one of the corporations described in and which 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/she signed his/her name thereto by like authority.
______________________________
STATE OF ) ss.:
COUNTY OF )
On the ____ day of __________, 1996, before me personally came
________________________, to me known, who, being by me duly sworn, did depose
and say that he/she is ____________________________ of
__________________________, one of the corporations described in and which
executed the foregoing instrument; that he/she knows the 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/she signed his/her name thereto by like authority.
______________________________
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[LETTERHEAD OF ALSTON & BIRD APPEARS HERE]
October 29, 1996
National Data Corporation
National Data Plaza
Atlanta, Georgia 30329-2010
Re: National Data Corporation
Registration Statement on Form S-3
----------------------------------
Ladies and Gentlemen:
This opinion is given in connection with the filing by National Data
Corporation (the "Company") with the Securities and Exchange Commission under
the Securities Act of 1933, as amended, of a Registration Statement on Form S-3
(the "Registration Statement") with respect to up to $143,750,000 principal
amount of the Company's __% Convertible Subordinated Notes due 2003 (including
up to $18,750,000 in aggregate principal amount subject to an over-allotment
option to be granted to the several underwriters of the transaction (the
"Underwriters")) (the "Notes") and the Company's Common Stock $.125 par value,
into which the Notes may be converted (the "Common Stock") pursuant to the terms
of the Notes and the Indenture in substantially the form filed as an exhibit to
the Registration Statement (or incorporated by reference therein (the
"Indenture"), to be entered into by the Company and The First National Bank of
Chicago, as Trustee thereunder (the "Trustee"). The Notes are proposed to be
issued by the Company and sold pursuant to the Underwriting Agreement among the
Company and the Underwriters in substantially the form filed as an exhibit to
the Registration Statement (the "Underwriting Agreement").
As counsel to the Company, we have examined the relevant corporate and
other documents incident to the giving of this opinion and we are also generally
familiar with the corporate affairs of the Company. In our examination, we have
assumed the genuineness of all signatures and the authenticity of all documents
submitted to us as original documents, and conformity to original documents of
all documents submitted to us as certified or photostatic copies.
Based upon the foregoing, we are of the following opinion:
1. The Indenture and the issuance of the Notes have been duly authorized
by appropriate corporate action of the Company, and when the Notes, in the form
filed as an exhibit to the Registration Statement, have been appropriately
completed and duly executed, authenticated and delivered in accordance with the
Indenture and sold pursuant to the Underwriting Agreement and as described in
the Registration Statement, and the Indenture has been appropriately completed
<PAGE>
and duly authorized, executed and delivered by the Company and the Trustee, the
Notes will be valid and binding obligations of the Company.
2. The issuance of the Common Stock has been duly authorized by
appropriate corporate action of the Company, and when duly issued and delivered
in accordance with the Indenture and as described in the Registration Statement,
the Common Stock will be validly issued, fully paid and nonassessable by the
Company under the General Corporation Law of the State of Delaware as in effect
on the date hereof.
Our opinion that the Notes will be valid and binding is qualified as to:
(a) limitations imposed by bankruptcy, insolvency, reorganization,
arrangement, fraudulent conveyance, moratorium or other laws relating to or
affecting the rights of creditors generally;
(b) rights to indemnification and contribution, which may be limited
by applicable law or equitable principles; and
(c) general principles of equity, including, without limitation,
concepts of materiality, reasonableness, good faith and fair dealing, and the
possible unavailability of specific performance or injunctive relief, regardless
of whether such validity and binding effect are considered in a proceeding in
equity or at law.
We hereby consent to the use of this opinion as an exhibit to the
Registration Statement. We further consent to the reference to our firm under
the heading "Legal Matters" in the Prospectus which is part of the Registration
Statement.
Very truly yours,
ALSTON & BIRD
By: /s/ Joel J. Hughey
-------------------------------------
Joel J. Hughey
[AD962770.142]
<PAGE>
SECOND AMENDMENT TO CREDIT AGREEMENT
THIS SECOND AMENDMENT TO CREDIT AGREEMENT (this "Amendment") is dated as of
the 23rd day of October, 1996, among NATIONAL DATA CORPORATION, a Delaware
corporation (the "Borrower"), the banks (the "Banks") party to the Credit
Agreement referred to below, and WACHOVIA BANK OF GEORGIA, N.A., a national
banking association, acting in its capacity as agent for itself and for the
other Banks (in such capacity, the "Agent").
W I T N E S S E T H:
- - - - - - - - - -
WHEREAS, the Borrower, the Banks, and the Agent executed and delivered that
certain $50,000,000 Credit Agreement, dated as of May 31, 1996 (as amended by
that certain First Amendment to Credit Agreement of even date therewith, the
"Credit Agreement")
WHEREAS, the Borrower has requested and the Banks and the Agent have agreed
to certain amendments to the Credit Agreement;, subject to the terms and
conditions hereof;
NOW, THEREFORE, for and in consideration of the above premises and other
good and valuable consideration, the receipt and sufficiency of which hereby is
acknowledged by the parties hereto, the Borrower, the Banks and the Agent hereby
covenant and agree as follows:
1. Conditions Precedent. The following shall constitute express
--------------------
conditions precedent to the effectiveness of this Agreement, and this Agreement
shall not be effective for any purpose until (A) each such condition has been
satisfied and (B) the "Subordinated Notes" (as defined in clause (v) below) have
been issued by the Borrower: (i) receipt by the Agent from each of the parties
hereto of a duly executed counterpart of this Amendment and the Acknowledgement
and Consent of Guarantors attached hereto, (ii) the simultaneous effectiveness
of the executed amendment to the GPS Credit Agreement dated as of even date
herewith, (iii) an opinion of (a) E. Michael Ingram, general counsel to the
Borrower and its Subsidiaries, and (b) Alston & Bird, special counsel for the
Borrower and the Subsidiary Guarantors, in each case dated as of even date
herewith, substantially in the form delivered to the Agent and the Banks
pursuant to Section 3.01 of the Credit Agreement, (iv) corporate certificates
and documents confirming the information set forth in the corporate certificates
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and documents delivered to the Agent and the Banks pursuant to Section 3.01 of
the Credit Agreement and (v) the final form and substance of the [__]%/1/
Convertible Subordinated Notes Due 2003 of the Borrower (the "Subordinated
Notes") described in the Borrower's S-3, filed with the Securities and Exchange
Commission on or about the date of this Amendment is reasonably satisfactory to
the Agent and the Banks; provided, however, in the event that the Borrower fails
-----------------
to issue the Subordinated Notes on or before December 31, 1996, then in such
----
event, this Amendment shall be null and void, and of no force or effect.
2. Definitions. Unless otherwise specifically defined herein, each
-----------
capitalized term used herein which is defined in the Credit Agreement shall have
the meaning assigned to such term in the Credit Agreement, as amended hereby.
Each reference to "hereof", "hereunder", "herein", and "hereby" and each other
similar reference and each reference to "this Agreement" and each other similar
reference contained in the Credit Agreement shall from and after the date hereof
refer to the Credit Agreement as amended hereby.
3. Amendment to Section 1.01. (a) The following new definition is hereby
-------------------------
added to Section 1.01 in proper alphabetical order as follows:
"GPS Credit Agreement" means that certain Credit Agreement dated as of
July 16, 1996, as amended by an amendment dated October 7, 1996, by and
among GPS, as borrower, The First National Bank of Chicago, as agent, and
the Lenders parties thereto, as amended, supplemented or refinanced from
time to time (including any increase of the amount of commitments and loans
thereunder agreed to by all of the GPS Banks).
"GPS Banks" means the "Lenders" from time to time parties to the GPS
Credit Agreement.
"Indenture" means the indenture described in the Borrower's Form S-3
filed with the Securities and Exchange Commission on October 7, 1996,
pursuant to which the Borrower's [__]% Convertible Subordinated Notes Due
2003 are issued.
- ----------
/1/ The interest rate has not been set as of the date of execution of this
Second Amendment.
2
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"Majority in Interest" has the meaning set forth in the Operating
Agreement (whether or not there has been a "Conversion", as defined in the
Operating Agreement).
"Operating Agreement" means the Operating Agreement of GPS, formerly
known as POS Acquisition Company LLC, dated as of March 31, 1996.
(b) Each of the following definitions set forth in Section 1.01 are deleted
in their entirety and substituted in lieu thereof are the following definitions:
"Consolidated Cash Flow" means, as at any date of determination for
any period, with respect to the Borrower and its Consolidated Subsidiaries
on a consolidated basis for such period and in accordance with GAAP, the
sum of (i) Consolidated Net Income, plus (ii) depreciation and
amortization, plus (iii) all other non-cash charges (less non-cash gains).
Consolidated Cash Flow shall be calculated with respect to (a) the Fiscal
Quarter ending May 31, 1996, for the Fiscal Quarter just ended and the
immediately preceding three Fiscal Quarters, (b) the Fiscal Quarter ending
August 31, 1996, the Consolidated Cash Flow for such Fiscal Quarter
multiplied by 4, (c) the Fiscal Quarter ending November 30, 1996, the
cumulative Consolidated Cash Flow for such Fiscal Year multiplied by 2, (d)
the Fiscal Quarter ending February 28, 1997, the cumulative Consolidated
Cash Flow for such Fiscal Year divided by 0.75, and (e) for all other
Fiscal Quarters thereafter, for the Fiscal Quarter just ended and the
immediately preceding three Fiscal Quarters.
"Consolidated Fixed Charges" means, without duplication, as at any
date of determination, the sum of (i) Consolidated Interest Expense, and
(ii) all payment obligations of the Borrower and its Consolidated
Subsidiaries under all operating leases and rental agreements. Consolidated
Fixed Charges shall be calculated with respect to (a) the Fiscal Quarter
ending May 31, 1996, for the Fiscal Quarter just ended and the immediately
preceding three Fiscal Quarters, (b) the Fiscal Quarter ending August 31,
1996, the Consolidated Fixed Charges for such Fiscal Quarter multiplied by
4, (c) the Fiscal Quarter ending November 30, 1996, the cumulative
Consolidated Fixed Charges for such Fiscal Year multiplied by 2, (d) the
Fiscal Quarter ending February 28, 1997, the cumulative Consolidated Fixed
Charges for such Fiscal Year divided by 0.75, and (e) for all other Fiscal
3
<PAGE>
Quarters thereafter, for the Fiscal Quarter just ended and the immediately
preceding three Fiscal Quarters.
"Consolidated Net Income" means, for any period, the Net Income of the
Borrower and its Consolidated Subsidiaries determined on a consolidated
basis, but excluding (i) extraordinary items, (ii) any equity interests of
the Borrower or any Subsidiary in the unremitted earnings of any Person
that is not a Subsidiary, and (iii) the effect of the Asset Impairment
Charges.
"Consolidated Subsidiary" means at any date any Subsidiary or other
entity the accounts of which, in accordance with GAAP, would be
consolidated with those of the Borrower in its consolidated financial
statements as of such date; provided, however, that GPS and Comerica shall
-------- -------
be treated as Consolidated Subsidiaries only for purposes of Sections 2.05,
2.06, 5.03, 5.04 and 5.06 and the related definitions used therein.
"Income Available for Fixed Charges" for any period means the sum of
(i) Consolidated Net Income, (ii) Consolidated Interest Expense, (iii) all
payment obligations of the Borrower and its Consolidated Subsidiaries for
such period under all operating leases and rental agreements, and (iv)
taxes on income, all determined with respect to the Borrower and its
Consolidated Subsidiaries on a consolidated basis for such period and in
accordance with GAAP. Income Available for Fixed Charges shall be
calculated with respect to (a) the Fiscal Quarter ending May 31, 1996, for
the Fiscal Quarter just ended and the immediately preceding three Fiscal
Quarters, (b) the Fiscal Quarter ending August 31, 1996, the Income
Available for Fixed Charges for such Fiscal Quarter multiplied by 4, (c)
the Fiscal Quarter ending November 30, 1996, the cumulative Income
Available for Fixed Charges for such Fiscal Year multiplied by 2, (d) the
Fiscal Quarter ending February 28, 1997, the cumulative Income Available
for Fixed Charges for such Fiscal Year divided by 0.75, and (e) for all
other Fiscal Quarters thereafter, for the Fiscal Quarter just ended and the
immediately preceding three Fiscal Quarters.
4. Amendment Adding a New Section 2.13. A new Section 2.13 of the
-----------------------------------
Credit Agreement hereby is added as follows:
SECTION 2.13 Designated Senior Indebtedness. All obligations of the
------------------------------
Borrower to the Agent and the Banks under this Agreement shall be and shall
4
<PAGE>
constitute "Designated Senior Indebtedness" as defined in and for all
purposes under the Indenture.
5. Amendment to Sections 5.01(a), (b), and (e). Sections 5.01(a), (b)
-------------------------------------------
and (e) of the Credit Agreement hereby are amended by deleting the same in their
entirety and substituting the following in lieu thereof:
(a) as soon as available and in any event within 95 days after the end
of each Fiscal Year, Financial Statements (Annual) of the Borrower and its
Consolidated Subsidiaries on a consolidated basis, all certified by Arthur
Andersen LLP or other independent public accountants of nationally
recognized standing, with such certification to be free of exceptions and
qualifications not acceptable to the Required Banks (provided, that
delivery pursuant to paragraph (i) below of copies of the Annual Report on
Form 10-K of the Borrower for such Fiscal Year filed with the Securities
and Exchange Commission shall be deemed to satisfy the requirements of this
Section 5.01(a));
(b) as soon as available and in any event within 50 days after the end
of each of the first three quarters of each Fiscal Year, Financial
Statements (Quarterly) of the Borrower and its Consolidated Subsidiaries on
a consolidated basis, all certified as to fairness of presentation in all
material respects, generally accepted accounting principles and consistency
by the chief financial officer or the chief accounting officer of the
Borrower, (provided, that delivery pursuant to clause (g) below of copies
of the Quarterly Report on Form 10-Q of the Borrower for such Fiscal
Quarter filed with the Securities and Exchange Commission shall be deemed
to satisfy the requirements of this Section 5.01(b));
(e) within 5 Domestic Business Days after the chief executive officer,
chief financial officer, chief accounting officer, controller or chief
legal officer of the Borrower (or any other individual having similar
duties and responsibilities as any of the foregoing although not having the
same title) becomes aware of the occurrence of any Default (including,
without limitation, the occurrence of a "Change in Control" or "Event of
Default" as defined in and under the Indenture), a certificate of the chief
financial officer or the chief accounting officer or such other Person of
the Borrower setting forth the details thereof and the action which the
Borrower is taking or proposes to take with respect thereto;
5
<PAGE>
6. Amendment to Section 5.07. Section 5.07 of the Credit Agreement
-------------------------
hereby is amended by deleting the same in its entirety and substituting the
following in lieu thereof:
SECTION 5.07. Loans or Advances. Neither the Borrower nor any of its
-----------------
Subsidiaries shall make loans or advances to any Person except: (i) loans
or advances to employees not exceeding $1,000,000 in the aggregate
principal amount outstanding at any time for the Borrower and its
Subsidiaries, in each case made in the ordinary course of business and
consistent with practices existing on the Closing Date, (ii) deposits
required by government agencies or public utilities, (iii) loans or
advances to Subsidiary Guarantors or to the Borrower, (iv) travel advances
to employees not exceeding $500,000 in the aggregate principal amount
outstanding at any time for the Borrower and its Subsidiaries, in each case
made in the ordinary course of business and consistent with practices
existing on the Closing Date, (v) loans or advances by the Borrower to GPS,
and/or (vi) loans or advances by the Borrower to Comerica not exceeding the
aggregate outstanding sum of (x) $18,000,000 minus (y) Investments made
under Section 5.08(vi); provided that after giving effect to the making of
any loans, advances or deposits permitted by clause (i), (ii), (iii), (iv),
(v) and (vi) of this Section, no Default shall be in existence (which has
not been specifically waived in writing pursuant to Section 9.06).
7. Amendment to Section 5.08(a). Section 5.08(a) of the Credit Agreement
----------------------------
hereby is amended by deleting the same in its entirety and substituting the
following in lieu thereof:
SECTION 5.08. Investments; Acquisitions. (a) Neither the Borrower nor
-------------------------
any of its Subsidiaries shall make Investments in any Person except as
permitted by Section 5.07 and except the following Investments (provided
such Investments do not violate Section 5.08(b)):
(i) absent the existence of a Default, made in accordance with
Borrower's or Subsidiary's investment policy formally approved by its
respective Board of Directors from time to time and otherwise in accordance
with the terms set forth herein;
(ii) in Subsidiary Guarantors;
(iii) in Subsidiaries which are formed for the sole purpose of (1)
merging into Persons that will become Subsidiary Guarantors in accordance
6
<PAGE>
with Section 5.10, or (2) acquiring the assets or stock of Persons and
thereafter becoming Subsidiary Guarantors in accordance with Section 5.10
or (3) existing as non-Operating Subsidiaries, provided all such
Investments in non-Operating Subsidiaries shall not exceed $50,000 in the
aggregate;
(iv) absent the existence of a Default, Investments (other than (1)
equity contributed before the date of such Default, and (2) Guarantees) by
the Borrower or any Subsidiary Guarantor in GPS;
(v) Guarantees by the Borrower (A) for the benefit of GPS or Comerica
in existence as of September 30, 1996, of obligations in amounts not
greater than the amounts guaranteed thereunder as of September 30, 1996,
(B) for certain obligations of Technology Sales and Leasing Co., Inc., or
any other Subsidiary Guarantor in connection with the Equipment Lease
Agreements, but solely to the extent that such Guarantees and the Debt
Guaranteed pursuant thereto are not prohibited by any other terms of this
Agreement, and (C) and by the Operating Subsidiaries in favor of the GPS
Banks pursuant to the GPS Credit Agreement of the obligations of GPS under
the GPS Credit Agreement, provided that (1), with respect to clause (B), no
--------
Default or Event of Default is in existence before or upon or after giving
effect thereto and (2) the Borrower and such Operating Subsidiaries shall
be obligated to obtain a release of such Guarantees without any further
liability of the Borrower or such Operating Subsidiaries thereunder upon
the Borrower and/or its Subsidiaries ceasing to be the Majority in Interest
members of GPS;
(vi) an Investment by the Borrower or any Subsidiary Guarantor in
Comerica not exceeding the aggregate sum of (A) $18,000,000 minus (B) loans
or advances made under Section 5.07(vi), and/or
(vii) capital contributions of assets as permitted by Section 5.13.
8. Amendment to Section 5.09(c). Section 5.09(c) of the Credit Agreement
----------------------------
hereby is amended by deleting the same in its entirety and substituting the
following in lieu thereof:
(c) any Lien on any asset securing Debt (including, without
limitation, a capital lease) incurred or assumed for the purpose of
financing all or any part of the cost of acquiring or constructing such
7
<PAGE>
asset, provided that such Lien (A) attaches to such asset (and no other
--------
asset) concurrently with or within 18 months after the acquisition or
completion of construction thereof, and (B) secures solely such Debt
incurred or assumed for the purpose of financing all or any part of the
cost of acquiring or constructing such asset;
9. Amendment to Section 5.13. Section 5.13 of the Credit Agreement
-------------------------
hereby is amended by deleting the same in its entirety and substituting the
following in lieu thereof:
SECTION 5.13. Consolidations, Mergers and Sales of Assets. The
-------------------------------------------
Borrower will not, nor will it permit any Subsidiary to, consolidate or
merge with or into, or sell, lease or otherwise transfer all or any
substantial part of its assets (except, with respect to sale of membership
interests or voting common stock of GPS, to the extent it would not create
an Event of Default under Section 6.01(p)) to, any other Person, or
discontinue or eliminate any Operating Subsidiary or business segment,
provided that (a) the Borrower may merge with another Person if (i) such
--------
Person was organized under the laws of the United States of America or one
of its states, (ii) the Borrower is the corporation surviving such merger
and (iii) immediately after giving effect to such merger, no Default shall
have occurred and be continuing, (b) Subsidiary Guarantors may merge with
and sell assets to, one another and the Borrower, (c) the Borrower and the
Subsidiaries may eliminate or discontinue business lines and segments from
time to time if such action (i) has been approved by the Board of Directors
of the Borrower, and (ii) the Borrower or any such Subsidiary provides all
of the Banks with evidence satisfactory to the Required Banks, in their
reasonable judgment, that such elimination or discontinuance will not
jeopardize the Borrower's or any Subsidiary Guarantor's ability to perform
under any of the Loan Documents, (d) so long as no Default shall be in
existence either immediately prior to or following any asset disposition,
the Borrower may sell or otherwise dispose of (x) assets of the Borrower
and other Subsidiaries to GPS not exceeding a cumulative aggregate book
value equal to $17,300,000, (y) any of its Equipment Lease Agreements and
(z) any of its other assets in an amount of up to $10,000,000 in fair
market value during each consecutive 12 month period, (e) during the
existence of a Default which does not constitute an Event of Default, the
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Borrower may continue to enter into Equipment Leases Agreements on the same
terms on which such sales customarily were consummated prior to such
Default, and (f) Subsidiaries which are formed for the sole purpose of (1)
merging into Persons that will become Subsidiary Guarantors in accordance
with Section 5.10, or (2) acquiring the assets or stock of Persons and
thereafter becoming Subsidiary Guarantors in accordance with Section 5.10,
may merge with such Persons or consolidate those Persons' assets with the
assets of those Subsidiaries.
10. Amendment to Section 5.22. Section 5.22 of the Credit Agreement
-------------------------
hereby is amended by deleting the same in its entirety and substituting the
following in lieu thereof:
SECTION 5.22. Transactions with Affiliates. Neither the Borrower nor
----------------------------
any of its Subsidiaries shall enter into, or be a party to, any transaction
with any Affiliate of the Borrower or such Subsidiary (which Affiliate is
not the Borrower or a Wholly Owned Subsidiary), except as permitted by law
and in the ordinary course of business and pursuant to reasonable terms
which are no less favorable to Borrower or such Subsidiary than would be
obtained in a comparable arm's length transaction with a Person which is
not an Affiliate.
11. Amendment Adding a New Section 5.23. A new Section 5.23 of the
-----------------------------------
Credit Agreement hereby is added as follows:
SECTION 5.23. GPS Debt. The Borrower will not permit GPS or any of
--------
the Subsidiaries of GPS to, create, incur, assume or suffer to exist any
Debt, except: (i) loans and advances from the Borrower; (ii) Debt incurred
on or after October 4, 1996, secured by Liens of the types described in
clauses (d) and (e) of Section 5.09; (iii) Debt incurred on or after
October 4, 1996 which is secured by Liens of the types described in clause
(c) of Section 5.09 not exceeding (a) $5,000,000 of such Debt incurred in
any Fiscal Year, and (b) $25,000,000 in the aggregate of all such Debt;
(iv) Debt under the GPS Credit Agreement; and (v) other Debt existing on
October 4, 1996 not exceeding an amount equal to $6,500,000, and any
extensions and renewals (but not increases) thereof.
12. Amendment Adding a New Section 5.24. A new Section 5.24 of the
-----------------------------------
Credit Agreement hereby is added as follows:
SECTION 5.24. GPS Membership Interest Voting; GPS Restrictive
-----------------------------------------------
Agreements. (a) The Borrower shall cause its Subsidiaries to vote their
----------
respective equity shares to cause GPS to make distributions and then
9
<PAGE>
distribute the same to the Borrower to the maximum extent permitted under
the Operating Agreement in order for the Borrower to meet its obligations
with respect to fees, interest and principal payments on the Loans
hereunder.
(b) The Borrower shall not permit, without the prior written consent
of the Agent and all of the Banks, (i) any amendment of the definition of
"Majority in Interest" contained in the Operating Agreement, (ii) any
amendment or other modification to the Operating Agreement which (1) limits
distributions or other payments payable by GPS to the Borrower through its
Subsidiaries, or (2) reduces the percentage of voting control held by the
Borrower through its Subsidiaries in GPS, or (iii) otherwise restricts
distributions from GPS through its Subsidiaries to the Borrower (except,
pursuant to the GPS Credit Agreement, during the existence of a "Default"
or an "Event of Default" thereunder).
13. Amendment Adding a New Section 5.25. A new Section 5.25 of the
-----------------------------------
Credit Agreement hereby is added as follows:
SECTION 5.25 Amendments to Indenture. Without the prior written
-----------------------
consent of the Agent and all of the Banks, the Borrower will not permit any
amendment of or other modification to the subordination provisions of the
Indenture in favor of "Senior Indebtedness" as defined in the Indenture.
14. Amendment to Section 6.01. Section 6.01 of the Credit Agreement
-------------------------
hereby is amended by (i) deleting the period at the end of clause (n) and
substituting in lieu thereof ";", and (ii) adding new clauses (o) and (p)
thereto as follows:
(o) a "Change of Control" or an "Event of Default" shall have occurred
under the Indenture and, except in the event that either the Commitments
have been terminated or the Loans have been accelerated, such occurrence
shall be continuing without cure by the Borrower or waiver by the holders
of the Convertible Subordinated Notes issued under the Indenture, as such
terms are defined therein; or
(p) the Borrower and/or its Subsidiaries cease to be the Majority in
Interest members of GPS.
15. Amendment to Section 9.08. Section 9.08 of the Credit Agreement
-------------------------
hereby is amended in its entirety as follows:
10
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SECTION 9.08. Successors and Assigns. (a) The provisions of this
----------------------
Agreement shall be binding upon and inure to the benefit of the parties
hereto and their respective successors and assigns; provided that the
Borrower may not assign or otherwise transfer any of its rights under this
Agreement without the prior written consent of the Agent and the Banks.
(b) Any Bank may at any time sell to one or more Persons (each a
"Participant") participating interests in any Loan owing to such Bank, any
Note held by such Bank, any Commitment hereunder or any other interest of
such Bank hereunder, provided that simultaneously therewith such Bank sells
--------
identical participating interests to the same Persons in equal percentages
in such corresponding "Loan," "Note," "Commitment" (as such terms are
defined in the GPS Credit Agreement) and any other such interest of such
Bank under the GPS Credit Agreement. In the event of any such sale by a
Bank of a participating interest to a Participant, such Bank's obligations
under this Agreement shall remain unchanged, such Bank shall remain solely
responsible for the performance thereof, such Bank shall remain the holder
of any such Note for all purposes under this Agreement, and the Borrower
and the Agent shall continue to deal solely and directly with such Bank in
connection with such Bank's rights and obligations under this Agreement.
In no event shall a Bank that sells a participation be obligated to the
Participant to take or refrain from taking any action hereunder except that
such Bank may agree that it will not (except as provided below), without
the consent of the Participant, agree to (i) the change of any date fixed
for the payment of principal of or interest on the related loan or loans,
(ii) the change of the amount of any principal, interest or fees due on any
date fixed for the payment thereof with respect to the related loan or
loans, (iii) the change of the principal of the related loan or loans, (iv)
any change in the rate at which either interest is payable thereon or (if
the Participant is entitled to any part thereof) facility fee is payable
hereunder from the rate at which the Participant is entitled to receive
interest or facility fee (as the case may be) in respect of such
participation or (v) reduction of any obligation owing under or the release
of any Guarantee (except as permitted under Section 5.11 or 5.12 in
connection with the permitted dissolution, sale or other disposition of a
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Subsidiary Guarantor) given to support payment of the Loans. Each Bank
selling a participating interest in any Loan, Note, Commitment or other
interest under this Agreement, other than a Money Market Loan or Money
Market Loan Note, shall, within 10 Business Days of such sale, provide the
Borrower and the Agent with written notification stating that such sale has
occurred and identifying the Participant and the interest purchased by such
Participant. Notwithstanding any provision contained herein to the
contrary, no Participant shall be entitled to the benefits of Article VIII
with respect to its participation in Loans outstanding from time to time.
(c) Any Bank may at any time assign to one or more banks or financial
institutions (each an "Assignee") all, or a proportionate part of all, of
its rights and obligations under this Agreement, the Notes, and any other
Loan Documents, and such Assignee shall assume all such rights and
obligations, pursuant to an Assignment and Acceptance in the form attached
hereto as Exhibit D, executed by such Assignee, such transferor Bank and
---------
the Agent (and, in the case of an Assignee that is not then a Bank, by the
Borrower); provided that (i) simultaneously with such assignment, such Bank
assigns to such Assignee identical rights and obligations in equal
percentages under the GPS Credit Agreement in such corresponding "Notes,"
and any other "Loan Documents" (as those terms are defined in the GPS
Credit Agreement), and such Assignee shall assume all such rights and
obligations, pursuant to an Assignment Agreement in the form attached to
the GPS Credit Agreement as Exhibit D, (ii) no interest may be sold by a
---------
Bank pursuant to this paragraph (c) unless the Assignee shall agree to
assume ratably equivalent portions of the transferor Bank's Commitment
hereunder and such transferor Bank's "Commitment" under the GPS Credit
Agreement, (iii) the amount of the Commitment hereunder and the
"Commitment" under the GPS Credit Agreement of the assigning Bank subject
to such assignment (determined as of the effective date of the assignment)
shall be equal to $5,000,000 (or any larger multiple of $1,000,000), and
(iv) no interest may be sold by a Bank pursuant to this paragraph (c) to
any Assignee that is not then a Bank, or an Affiliate of a Bank, without
the prior written consent of the Borrower and the Agent, which consent of
the Borrower and the Agent shall not be unreasonably withheld or delayed.
Upon (A) execution of the Assignment and Acceptance by such transferor
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Bank, such Assignee, the Agent and (if applicable) the Borrower, (B)
delivery of an executed copy of such Assignment and Acceptance to the
Borrower and the Agent, (C) payment by such Assignee to such transferor
Bank of an amount equal to the purchase price agreed between such
transferor Bank and such Assignee, and (D) payment of a processing and
recordation fee of $2,500 to the Agent, such Assignee shall for all
purposes be a Bank party to this Agreement and shall have all the rights
and obligations of a Bank under this Agreement to the same extent as if it
were an original party hereto with a Commitment as set forth in such
instrument of assumption, and the transferor Bank shall be released from
its obligations hereunder to a corresponding extent, and no further consent
or action by the Borrower, the Banks or the Agent shall be required. Upon
the consummation of any transfer to an Assignee pursuant to this paragraph
(c), the transferor Bank, the Agent and the Borrower shall make appropriate
arrangements so that, if required, a new Note is issued to such Assignee
and, if necessary, a new Note shall be issued to the transferor Bank.
(d) Subject to the provisions of Section 9.09, the Borrower authorizes
each Bank to disclose to any Participant, Assignee or other transferee
(each a "Transferee") and any prospective Transferee any and all financial
information in such Bank's possession concerning the Borrower which has
been delivered to such Bank by the Borrower pursuant to this Agreement or
which has been delivered to such Bank by the Borrower in connection with
such Bank's credit evaluation prior to entering into this Agreement.
(e) Transferees shall be entitled to receive a greater payment under
Section 8.03 than the transferor Bank would have been entitled to receive
with respect to the rights transferred, only if such transfer is made with
the Borrower's prior written consent or by reason of the provisions of
Section 8.02 or 8.03 requiring such Bank to designate a different Lending
Office under certain circumstances or at a time when the circumstances
giving rise to such greater payment did not exist.
(f) Anything in this Section 9.08 to the contrary notwithstanding, any
Bank may assign and pledge all or any portion of the Loans and/or
obligations owing to it to any Federal Reserve Bank or the United States
Treasury as collateral security pursuant to Regulation A of the Board of
Governors of the Federal Reserve System and any Operating Circular issued
by such Federal Reserve Bank, provided that any payment in respect of such
--------
assigned Loans and/or obligations made by the Borrower to the assigning
13
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and/or pledging Bank in accordance with the terms of this Agreement shall
satisfy the Borrower's obligations hereunder in respect of such assigned
Loans and/or obligations to the extent of such payment. No such assignment
shall release the assigning and/or pledging Bank from its obligations
hereunder.
16. Amendments to Exhibit F. (a) The text of paragraph 5 of Exhibit F to
-----------------------
the Credit Agreement is amended in its entirety as set forth in the amendment to
Section 5.07 in paragraph (a) of paragraph 6 of this Amendment. The calculations
set forth in paragraph 5 of Exhibit F are amended and restated in their entirety
as set forth below:
(a) To Employees $_________
Limitation $1,000,000
(b) Travel advances to Employees $_________
Limitation $ 500,000
(b) The text of paragraph 6 of Exhibit F to the Credit Agreement is amended
in its entirety as set forth in the amendment to Section 5.08 in paragraph (a)
of paragraph 7 of this Amendment. The calculations set forth in paragraph 6 of
Exhibit F are amended and restated in their entirety as set forth below:
(a) Investments in non-Operating
Subsidiaries $
(b) Limitation $ 50,000
(c) Investments in Comerica $
(d) Limitation $
(c) As a result of the amendments set forth herein including GPS and
Comerica as Consolidated Subsidiaries for certain purposes, references to the
exclusion or inclusion of GPS and/or Comerica in Schedules 1, 2 and 3 of Exhibit
F shall be disregarded.
14
<PAGE>
17. Restatement of Representations and Warranties. The Borrower hereby
---------------------------------------------
restates and renews each and every representation and warranty heretofore made
by it in the Credit Agreement and the other Loan Documents as fully as if made
on the date hereof and with specific reference to this Amendment and all other
loan documents executed and/or delivered in connection herewith.
18. Effect of Amendment. Except as set forth expressly hereinabove, all
-------------------
terms of the Credit Agreement and the other Loan Documents shall be and remain
in full force and effect, and shall constitute the legal, valid, binding and
enforceable obligations of the Borrower. The amendments contained herein shall
be deemed to have prospective application only, unless otherwise specifically
stated herein.
19. Ratification. The Borrower hereby restates, ratifies and reaffirms
------------
each and every term, covenant and condition set forth in the Credit Agreement
and the other Loan Documents effective as of the date hereof.
20. Counterparts. This Amendment may be executed in any number of
------------
counterparts and by different parties hereto in separate counterparts, each of
which when so executed and delivered shall be deemed to be an original and all
of which counterparts, taken together, shall constitute but one and the same
instrument.
21. Section References. Section titles and references used in this
------------------
Amendment shall be without substantive meaning or content of any kind whatsoever
and are not a part of the agreements among the parties hereto evidenced hereby.
22. No Default. To induce the Banks and the Agent to enter into this
----------
Amendment and to continue to make advances pursuant to the Credit Agreement, the
Borrower hereby acknowledges and agrees that, as of the date hereof, and after
giving effect to the terms hereof, there exists (i) no Default or Event of
Default and (ii) no right of offset, defense, counterclaim, claim or objection
in favor of the Borrower arising out of or with respect to any of the
obligations arising under the Credit Agreement or the other Loan Documents.
23. Further Assurances. The Borrower agrees to take such further actions
------------------
as the Agent shall reasonably request in connection herewith to evidence the
amendments herein contained to the Credit Agreement.
15
<PAGE>
24. Governing Law. This Amendment shall be governed by and construed and
-------------
interpreted in accordance with, the laws of the State of Georgia.
IN WITNESS WHEREOF, the Borrower, the Banks and the Agent have caused
this Amendment to be duly executed, under seal, by their respective duly
authorized officers as of the day and year first above written.
NATIONAL DATA CORPORATION (SEAL)
By: /s/ E. Michael Ingram
------------------------------------------
Title: Senior Vice President and
Secretary
WACHOVIA BANK OF GEORGIA, N.A., (SEAL)
in its capacity as a Bank and as the
Agent
By: /s/
------------------------------------------
Title: Vice President
THE FIRST NATIONAL BANK OF CHICAGO,
in its capacity as a Bank
(SEAL)
By: /s/
------------------------------------------
Title: Corporate Banking Officer
SUNTRUST BANK, ATLANTA (SEAL)
By: /s/
------------------------------------------
Title: Assistant Vice President
By: /s/
------------------------------------------
Title: Vice President
16
<PAGE>
ACKNOWLEDGMENT AND CONSENT OF GUARANTORS
Each of the undersigned hereby (i) acknowledges receipt of the foregoing
Amendment, (ii) consents thereto, (iii) agrees to be bound thereby, (iv)
restates and affirms its respective obligations under its respective Subsidiary
Guaranty executed and delivered in favor of the Agent (for the ratable benefit
of the Banks) without defense, counterclaim or set-off, and (v) agrees that
Section 13 of such Subsidiary Guaranty is amended by deleting the period at the
end of such Section 13 and substituting in lieu thereof "or with the consent of
all of the Banks as may be required by Section 9.06 of the Credit Agreement."
<TABLE>
<CAPTION>
<S> <C>
NDC FEDERAL SYSTEMS, INC., a NATIONAL DATA CORPORATION OF
Delaware corporation CANADA,A LTD., a limited
liability company organized
By: /s/ E. Michael Ingram pursuant to the laws of
---------------------------- Ontario
Title: Secretary
By: /s/ E. Michael Ingram
----------------------------
NDC INTERNATIONAL, LTD., a Title: Secretary
Georgia corporation
NDC YES CHECK, INC., a Georgia
By: /s/ E. Michael Ingram corporation
----------------------------
Title: Secretary By: /s/ E. Michael Ingram
----------------------------
Title: Secretary
NATIONAL DATA PAYMENT SYSTEMS,
INC., a New York corporation
NDC CHECK SERVICES, INC., an
By: /s/ E. Michael Ingram Illinois corporation
----------------------------
Title: Secretary By: /s/ E. Michael Ingram
----------------------------
Title: Secretary
NATIONAL DATA REALTY, INC., a
Georgia corporation
By: /s/ E. Michael Ingram
----------------------------
Title: Secretary
</TABLE>
17
<PAGE>
<TABLE>
<CAPTION>
<S> <C>
ZADALL SYSTEMS GROUP, INC., a C.I.S. TECHNOLOGIES, INC.
Texas corporation
By: /s/ E. Michael Ingram
By: /s/ E. Michael Ingram ----------------------------
---------------------------- Title: Senior Vice President
Title: Secretary and Secretary
C.I.S., INC.
LEARNED-MAHN, INC., an Idaho
corporation By: /s/ T. G. Noulles
----------------------------
By: /s/ E. Michael Ingram Title: Vice President
----------------------------
Title: Secretary
AMSC, INC.
GLOBAL PAYMENT HOLDING By: /s/ T. G. Noulles
COMPANY, a Georgia corporation ----------------------------
Title: Vice President
By: /s/ E. Michael Ingram
----------------------------
Title: Secretary AMSC MIDWEST, INC.
By: /s/ T. G. Noulles
GPS HOLDING LIMITED ----------------------------
PARTNERSHIP, a Georgia limited Title: Vice President
partnership
By: National Data Corporation, CLINLAB, INC.
its general partner
By: /s/ T. G. Noulles
By: /s/ E. Michael Ingram ----------------------------
---------------------------- Title: Vice President
Title: Senior Vice President
and Secretary
</TABLE>
18
<PAGE>
FIRST AMENDMENT TO CREDIT AGREEMENT
-----------------------------------
THIS FIRST AMENDMENT TO CREDIT AGREEMENT (this "First Amendment") made
and entered into as of October 23, 1996, among GLOBAL PAYMENT SYSTEMS LLC, a
limited liability company organized under the laws of Georgia (the "Borrower"),
the LENDERS listed on the signature pages hereof (the "Lenders"), and THE FIRST
NATIONAL BANK OF CHICAGO, as agent for the Lenders (the "Agent").
WITNESSETH:
----------
WHEREAS, the Borrower, the Lenders, and the Agent are parties to a
certain Credit Agreement dated as of July 16, 1996 (the "Credit Agreement");
WHEREAS, the Borrower has requested that the Lenders and the Agent agree
to amend certain covenants set forth in the Credit Agreement so as to facilitate
the issuance of certain convertible debt securities by its Affiliate, National
Data Corporation ("NDC");
WHEREAS, the Lenders and the Agent have agreed, subject to certain terms,
conditions, and requirements more particularly set forth in this First
Amendment, to amend such covenants;
NOW, THEREFORE, in consideration of the premises and for Ten Dollars and
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto, intending to be legally bound, agree as
follows:
1. DEFINED TERMS. Except as otherwise expressly defined herein, capitalized
-------------
terms used in this First Amendment that are defined the Credit Agreement are
used herein with the respective meanings assigned to such terms in the Credit
Agreement.
2. AMENDMENTS TO SECTION 1.01 ("Definitions"). Section 1.01 of the Credit
------------------------------------------
Agreement is hereby amended as follows:
(A) Each of the defined terms "Contribution Agreement" and "Loan
Documents" and the accompanying definitions as now set forth in Section 1.01 of
the Credit Agreement are deleted in its entirety and the following defined terms
and accompanying definitions are substituted in lieu thereof:
"Contribution Agreement" means the Amended and Restated Contribution
----------------------
Agreement substantially in the form of Exhibit "J" executed and delivered
-----------
by the Borrower, the GPS Subsidiary Guarantors, NDC, and the NDC Subsidiary
Guarantors in favor of the Agent for the ratable benefit of the Lenders, as
the same may be amended, supplemented and restated from time to time.
"Loan Documents" means this Agreement, the Notes, the Subsidiary
--------------
Guarantee, the NDC Guarantee, the NDC Subsidiary Guarantee, and the other
<PAGE>
documents and agreements contemplated hereby and executed by any of the
Borrower, the GPS Subsidiary Guarantors, NDC, or the NDC Subsidiary
Guarantors, in favor of the Agent or any Lender.
(B) The following additional defined terms and accompanying definitions
shall be included, in proper alphabetical order, in Section 1.01:
"First Amendment to Credit Agreement" shall mean the First Amendment
-----------------------------------
to Credit Agreement dated as of October 23, 1996, among the Borrower, the
Lenders, and the Agent.
"GPS Subsidiary Guarantors" means, collectively, Modular Data, Inc.,
-------------------------
Global Payment Systems of Canada, Ltd., and each other Subsidiary of the
Borrower that is required to Guarantee payment of the Obligations pursuant
to the terms of this Agreement.
"Indenture" means the trust indenture described in NDC's Form S-3
---------
filed with the Securities and Exchange Commission on or about the date of
the First Amendment to Credit Agreement, pursuant to which NDC's
Convertible Subordinated Notes Due 2003 are to be issued in an aggregate
principal amount not to exceed $143,750,000.
"NDC" means National Data Corporation, a Delaware corporation, its
---
successors and assigns.
"NDC Banks" means, collectively, the "Banks" from time to time parties
---------
to the NDC Credit Agreement.
"NDC Credit Agreement" means the Credit Agreement among NDC, the NDC
--------------------
Banks, and Wachovia Bank of Georgia, N.A., as Agent, as amended by a
certain First Amendment to Credit Agreement dated as of May 31, 1996, by a
certain Second Amendment to Credit Agreement dated as of October 23, 1996,
and as the same may hereafter be further amended, supplemented or restated
from time to time (including any increase of the amount of commitments and
loans thereunder agreed to by all of the NDC Banks).
"NDC Guarantee" means the NDC Guarantee, substantially in the form of
-------------
Exhibit "L" attached to the First Amendment to Credit Agreement, made by
-----------
NDC in favor of the Agent for the ratable benefit of the Lenders, as the
same may be amended, supplemented, or restated from time to time.
"NDC Subsidiary Guarantors" means, collectively, all Subsidiaries of
-------------------------
NDC that, as of the date of the effectiveness of the First Amendment to
Credit Agreement pursuant to paragraph 12 thereof, are "Subsidiary
Guarantors" under the terms of the NDC Credit Agreement, and each
additional Subsidiary of NDC required to become an additional party to the
-2-
<PAGE>
NDC Subsidiary Guarantee pursuant to the terms of the NDC Guarantee, and
their respective successors and assigns.
"NDC Subsidiary Guarantee" means the NDC Subsidiary Guarantee,
------------------------
substantially in the form of Exhibit "M" attached to the First Amendment to
-----------
Credit Agreement, made by the NDC Subsidiary Guarantors, as the same may be
amended, supplemented or restated from time to time.
3. AMENDMENTS TO SECTION 3.02 ("Conditions to All Borrowings"). Section 3.02
-----------------------------------------------------------
of the Credit Agreement is hereby amended by deleting clause (c) thereof in its
entirety and substituting in lieu thereof the following clause (c):
(c) the fact that the representations and warranties of the Borrower
contained in Article IV of this Agreement, and the representations and
warranties of NDC contained or incorporated in Section 2.01 of the NDC
Guarantee, shall be true on and as of the date of such Borrowing, except
for changes expressly permitted herein or in the NDC Credit Agreement, and
except to the extent that such representations and warranties relate solely
to an earlier date; and
4. AMENDMENT TO SECTION 6.04 ("Restricted Payments"). Section 6.04 of the
-------------------------------------------------
Credit Agreement is hereby amended by deleting said Section 6.04 in its entirety
and substituting in lieu thereof the following Section 6.04:
SECTION 6.04. Restricted Payments. The Borrower will not declare or
-------------------
make any Restricted Payment if either immediately preceding or following
the making or declaration of any such Restricted Payment there shall exist,
or would exist after giving effect thereto, any Default or Event of Default
hereunder (which has not been specifically waived in writing pursuant to
Section 9.06).
5. AMENDMENTS TO SECTION 7.01 ("Events of Default"). Section 7.01 of the
------------------------------------------------
Credit Agreement is hereby amended as follows:
(A) Section 7.01(d) is deleted in its entirety and the following Section
7.01(d) substituted in lieu thereof:
(D) any representation, warranty, certification or statement made or
incorporated by reference in Article IV hereof, or in the First
Amendment to Credit Agreement, the NDC Guarantee, the NDC Subsidiary
Guarantee, or any other Loan Document, certificate, financial
statement or other document delivered pursuant to this Agreement or
the NDC Guarantee shall prove to have been incorrect or misleading in
any material respect when made (or deemed made); or
(B) Section 7.01(q) is deleted in its entirety and the following Section
7.01(q) substituted in lieu thereof:
-3-
<PAGE>
(q) (i) any of the Subsidiary Guarantees, the NDC Guarantee, or the
NDC Subsidiary Guarantee shall cease to be enforceable, or (ii) the
Borrower, NDC, or any GPS Subsidiary Guarantor or NDC Subsidiary
Guarantor shall assert that any Loan Document is not enforceable; or
(C) Section 7.01 is amended by adding a new Section 7.01(r) and a new
Section 7.01(s), as follows:
(r) any "Event of Default" under the terms of the NDC Credit
Agreement, or any "Event of Default" or any "Change of Control" under
the terms of the Indenture shall have occurred under such agreements
and, except in the event that either the Commitments hereunder have
been terminated or the maturity of the Loans have been accelerated,
such occurrence shall be continuing without cure by NDC, or waiver by
the NDC Banks or the holders of the Convertible Subordinated Notes
issued under the Indentures, as the case may be; or
(s) NDC shall fail to observe or perform any covenant or agreement
contained or incorporated by reference in Section 2.02 of the NDC
Guarantee, and such failure (i) in the case of any covenant or
agreement incorporated by reference in Section 2.02(d) thereof, shall
not have been cured within any applicable grace period provided with
respect thereto in the NDC Credit Agreement; or (ii) in the case of
any other covenant or agreement contained or incorporated by reference
in Section 2.02, shall not have been cured within 30 days after the
earlier to occur of (x) written notice thereof having been given to
the Borrower by the Agent at the request of any Lender, or (y) the
Borrower otherwise becoming aware of any such failure;
6. AMENDMENTS TO SECTION 9.08 ("Successors and Assigns"). Section 9.08 of the
-----------------------------------------------------
Credit Agreement is hereby amended as follows:
(A) the first sentence of Section 9.08(b) is deleted in its entirety and
the following sentence substituted in lieu thereof:
Any Lender may at any time sell to one or more Persons (each a
"Participant") participating interests in any Loan owing to such Lender,
any Note held by such Lender, and Commitment hereunder, or any other
interest of such Lender hereunder, provided that simultaneously therewith
--------
such Lender sells identical participating interests to the same Person(s)
in equal percentages in such corresponding "Loan," "Note," "Commitment" (as
such terms are defined in the NDC Credit Agreement) and any other such
interest of such Lender under the NDC Credit Agreement.
(B) the first sentence of Section 9.08(c) is hereby deleted in its entirety
and the following sentence substituted in lieu thereof:
-4-
<PAGE>
Any Lender may at any time assign to one or more banks or financial
institutions (each an "Assignee") all or a proportionate part of all, of
its rights and obligations under this Agreement, the Notes and any other
Loan Documents and such Assignee shall assume all such rights and
obligations, pursuant to an Assignment Agreement in the form attached
hereto as Exhibit F, executed by such Assignee, such transferror Lender and
---------
the Agent (and in the case of an Assignee that is not then a Lender, by the
Borrower); provided that (i) simultaneously with such assignment, such
--------
Lender assigns to such Assignee identical rights and obligations in equal
percentages under the NDC Credit Agreement and such corresponding "Notes,"
and any other "Loan Documents" (as those terms are defined in the NDC
Credit Agreement) and such Assignee shall assume all such rights and
obligations, pursuant to an Assignment Agreement in the form attached to
the NDC Credit Agreement as Exhibit D, (ii) no interest may sold by a
---------
Lender pursuant to this paragraph (c) unless the Assignee shall agree to
assume ratably equivalent portions of the transferror Lender's Commitment
hereunder and such transferror Lender's "Commitment" under the NDC Credit
Agreement, (iii) the amount of the Commitment hereunder and the
"Commitment" under the NDC Credit Agreement of the assigning Lender subject
to such assignment (determined as of the effective date of the assignment)
shall be equal to $5,000,000 (or any larger multiple of $1,000,000), and
(iv) no interest may be sold by a Lender pursuant to this paragraph (c) to
any Assignee that is not then a Lender, or an Affiliate of a Lender,
without the prior written consent of the Borrower and the Agent, which
consent of the Borrower and the Agent shall not be unreasonably withheld or
delayed.
7. REPLACEMENT OF EXHIBIT "J" ("Contribution Agreement"). Exhibit "J"
----------------------------------------------------- -----------
attached to the Credit Agreement is hereby amended by deleting said Exhibit "J"
-----------
in its entirety and substituting in lieu thereof the form of Exhibit "J"
-----------
attached to this First Amendment.
8. REPRESENTATIONS AND WARRANTIES. The Borrower represents and warrants to
------------------------------
the Agent and the Lenders as follows:
(A) all representations and warranties set forth in the Credit Agreement
and the other Loan Documents are true and correct on and as of the date of this
First Amendment, except for changes expressly permitted therein, and except to
the extent that such representations and warranties relate solely to an earlier
date;
(B) no Default or Event of Default has occurred and is continuing on the
date hereof;
(C) Borrower has the organizational power and authority to make, deliver
and perform this First Amendment and has taken all necessary organizational
action to authorize the execution, delivery and performance of this First
Amendment. No consent or authorization of, or filing with, any Person
(including, without limitation, any governmental authority), is required in
connection with the execution, delivery or performance by the Borrower, or the
validity or enforceability against the Borrower, of this First Amendment; and
-5-
<PAGE>
(D) this First Amendment has been duly executed and delivered by the
Borrower and constitutes the legal, valid and binding obligation of the
Borrower, enforceable against it in accordance with its terms, except as may be
limited by applicable bankruptcy, insolvency, reorganization, moratorium, or
similar laws effecting the enforcement of creditors' rights generally and by
general principles of equity.
9. EFFECT OF FIRST AMENDMENT. On and after the date this First Amendment
-------------------------
becomes effective as provided in Paragraph 12 below, (i) each and every
reference in the Credit Agreement to "hereof," "hereunder," "herein," "hereby"
and each other similar reference, and each and every reference to "this
Agreement" and each other similar reference, shall refer to the Credit Agreement
as amended hereby, and as the same may be further amended, restated or
supplemented from time to time, and (ii) each and every reference in the other
Loan Documents to the Credit Agreement shall be deemed to refer to and mean the
Credit Agreement as amended by this First Amendment, and as the same may be
further amended, supplemented or restated from time to time. The Borrower
confirms and agrees that (i) except as expressly amended herein, the Credit
Agreement remains in full force and effect in accordance with its terms, and
(ii) all other Loan Documents remain in full force and effect in accordance with
their respective terms.
10. RATIFICATION. The Borrower hereby restates, ratifies and reaffirms each
------------
and every term, covenant and condition set forth in the Credit Agreement and the
other Loan Documents effective as of the date hereof. To induce the Agent and
the Lenders to enter into this First Amendment and to continue to make advances
pursuant to the Credit Agreement, the Borrower acknowledges and agrees that, as
of the date hereof and after giving effect to the terms hereof, there exists no
right of offset, defense, counterclaim, claim or objection in favor of the
Borrower arising out of or with respect to any of the obligations arising under
the Credit Agreement or the other Loan Documents.
11. COUNTERPARTS. This First Amendment may be executed in any number of
------------
counterparts and by the different parties hereto in separate counterparts, each
of which when so executed and delivered shall be deemed to be an original and
all of which counterparts, taken together, shall constitute but one and the same
instrument.
12. CONDITIONS TO EFFECTIVENESS OF FIRST AMENDMENT. This First Amendment shall
----------------------------------------------
not become effective or have any force or effect until each of the following
conditions precedent has been satisfied:
(A) the Second Amendment to Credit Agreement dated as of October 23, 1996,
among NDC, the NDC Banks, and Wachovia Bank of Georgia, N.A., as Agent, executed
with respect to the NDC Credit Agreement, shall have become effective in
accordance with the terms thereof;
(B) each of the NDC Guarantee, the NDC Subsidiary Guarantee, and the
Contribution Agreement shall have been duly executed and delivered to the Agent
for the benefit of the Lenders;
-6-
<PAGE>
(C) there shall have been delivered to the Agent the favorable opinions of
(i) Michael Ingram, general counsel of the Borrower, NDC, and the NDC Subsidiary
Guarantors (NDC and the NDC Subsidiary Guarantors being herein collectively
referred to as the "NDC Credit Parties"), and (ii) Alston & Bird, special
counsel for the Borrower and the NDC Credit Parties, in each case dated as of
the date of effectiveness of the First Amendment, in respect of the Borrower and
the NDC Credit Parties and the documents described in the preceding clause (b),
covering substantially the same matters covered in the form of Exhibit "H-1" and
"H-2" attached to the Credit Agreement and such additional matters relating to
the transactions contemplated hereby as the Agent or any Lender may reasonably
request;
(D) there shall have been delivered to the Agent a certificate, dated as of
the date of the effectiveness of the First Amendment, signed on behalf of the
Borrower by a principal financial officer of the Borrower, to the effect that
(i) no Default or Event of Default has occurred and is continuing on such date,
(ii) the representations and warranties of the Borrower contained in Article IV
of the Credit Agreement and Paragraph 8 of this First Amendment are true and
correct on and as of such date, and (iii) the condition set forth in clause (a)
above is being satisfied simultaneously therewith;
(E) there shall have been delivered to the Agent all documents which the
Agent or any Lender may reasonably request relating to the existence of the
Borrower and the NDC Credit Parties, the authority for and the validity of this
First Amendment, the NDC Guarantee, and the NDC Subsidiary Guarantee, and any
other matters relevant thereto, all in form and substance satisfactory to the
Agent, including, without limitation, certificates of the Borrower and the NDC
Credit Parties signed in each case by a Secretary or Assistant Secretary
thereof, certifying as to the names, true signatures and incumbency of the
officer or officers of the Borrower and the NDC Credit Parties authorized to
execute and deliver such documents, and certified copies of the following items
with respect to the Borrower and each NDC Credit Party: (i) the articles or
certificate of incorporation, partnership agreement or operating agreement of
such Person, (ii) a certificate of the Secretary of State of the jurisdiction of
organization of such Person as to the good standing of such Person in such
jurisdiction, and (iii) the action taken by the Board of Directors or comparable
governing body of such Person authorizing the execution, delivery and
performance of this First Amendment, the NDC Guarantee, the NDC Subsidiary
Guarantee, and the Contribution Agreement, as applicable;
(F) the final form and substance of the Indenture and NDC's Convertible
Subordinated Notes Due 2003 as described in the Indenture shall be reasonably
satisfactory to the Agent and the Lenders, and such Convertible Subordinated
Notes shall have been issued in such form;
provided; however, in the event that NDC fails to issue such Convertible
- -------- -------
Subordinated Notes on or before December 31, 1996, then in such event, this
First Amendment shall be null and void, and of no force or effect.
13. MISCELLANEOUS. This First Amendment and the rights and obligations of the
-------------
parties hereunder shall be construed in accordance with, and shall be governed
-7-
<PAGE>
in all respects by, the law of the State of Georgia, without giving effect to
the conflict of law principles thereof. This First Amendment shall be binding
on, and shall enure to the benefit of and be enforceable by, the respective
successors and permitted assigns of the parties hereto. The Borrower agrees to
take such further actions as the Agent shall reasonably request in connection
herewith to evidence the amendments to the Credit Agreement herein contained.
IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to be
executed by their duly authorized officers or representatives as of the date
first above written.
GLOBAL PAYMENT SYSTEMS LLC,
as Borrower
By: /s/ M. P. Stevenson
----------------------------------
Name: M. P. Stevenson
Title: Treasurer
Attest: /s/ E. Michael Ingram
-----------------------------
Name: E. Michael Ingram
Title: Secretary
THE FIRST NATIONAL BANK OF CHICAGO,
as Agent and as Lender
By: /s/ Edwin Adams, Jr.
----------------------------------
Name: Edwin Adams, Jr.
----------------
Title: Corporate Banking Officer
-------------------------
SUNTRUST BANK, ATLANTA,
as Lender
By: /s/ Dennis H. James, Jr.
----------------------------------
Name: Dennis H. James, Jr.
--------------------
Title: Assistant Vice President
------------------------
By: /s/ John G. Taylor
----------------------------------
Name: John G. Taylor
--------------
Title: Vice President
--------------
-8-
<PAGE>
WACHOVIA BANK OF GEORGIA, N.A.,
as Lender
By: /s/ William B. Nixon
----------------------------------
Name: William B. Nixon
----------------
Title: Vice President
--------------
-9-
