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Securities and Exchange Commission
Washington, D.C. 20549
Form 8-K
Current Report
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) October 23, 1997
CalEnergy Company, Inc.
(Exact name of registrant as specified in its charter)
Delaware 1-9874 94-2213782
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification No.)
incorporation)
302 South 36th Street, Suite 400, Omaha, NE 68131
(Address of principal executive offices) (Zip Code)
Registrant's Telephone Number, including area code: (402) 341-4500
N/A
(Former name or former address, if changed since last report)
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Item 5. Other Events.
On October 20, 1997 the Registrant announced the consummation of its public
offering of 17.1 million shares of its common stock, par value $.0675 (the
"Common Stock"), and the concurrent sale of 2 million shares of Common Stock to
a trust affiliated with Walter C. Scott, Jr., Chairman of Peter Kiewit Sons',
Inc. A press release with respect to the consummation of such offering and
direct sale is attached hereto as Exhibit 99.1.
On October 23, 1997 the Registrant announced the pricing of its offering of
$350,000,000 aggregate principal amount of its 7.63% Senior Notes due 2007. A
press release with respect to the pricing of such offering is attached hereto as
Exhibit 99.2. Pursuant to such offering, on October 23, 1997, the Registrant
entered into an Underwriting Agreement and an Indenture (each as referred to
below), copies of which are attached hereto as Exhibit 1.5 and Exhibit 4.1,
respectively. On October 28, 1997, the Registrant expects to enter into a First
Supplemental Indenture (as referred to below), the form of which is attached
hereto as Exhibit 4.2.
Item 7. Financial Statements and Exhibits.
(c) Exhibits:
The following exhibits are filed as part of this report
1.5 Underwriting Agreement, dated October 23, 1997, among the
Company and Lehman Brothers Inc., Credit Suisse First Boston
Corporation and Merrill Lynch, Pierce, Fenner & Smith
Incorporated, as underwriters.
4.1 Indenture, dated as of October 15, 1997, among the Company and
IBJ Schroder Bank & Trust Company, as Trustee.
4.2 Form of First Supplemental Indenture, dated as of October 28,
1997, among the Company and IBJ Schroder Bank & Trust Company,
as Trustee.
99.1 Press Release of the Company, dated October 20, 1997.
99.2 Press Release of the Company, dated October 23, 1997.
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SIGNATURE
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.
CalEnergy Company, Inc.
By: /s/ Douglas L. Anderson
Douglas L. Anderson
Assistant Secretary and
Assistant General Counsel
Dated: October 27, 1997
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Exhibit Index
Exhibit No. Description
- ----------- -----------
1.5 Underwriting Agreement, dated October 23, 1997, among the
Company and Lehman Brothers Inc., Credit Suisse First Boston
Corporation and Merrill Lynch, Pierce, Fenner & Smith
Incorporated, as underwriters.
4.1 Indenture, dated as of October 15, 1997, among the Company
and IBJ Schroder Bank & Trust Company, as Trustee.
4.2 Form of First Supplemental Indenture, dated as of October 28,
1997, among the Company and IBJ Schroder Bank & Trust
Company, as Trustee.
99.1 Press Release of the Company, dated October 20, 1997.
99.2 Press Release of the Company, dated October 23, 1997.
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$350,000,000
CALENERGY COMPANY, INC.
7.63% Senior Notes Due 2007
UNDERWRITING AGREEMENT
October 23, 1997
LEHMAN BROTHERS INC.
CREDIT SUISSE FIRST BOSTON CORPORATION
MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED
As Representatives of the several
Underwriters named in Schedule A,
c/o Lehman Brothers Inc. ("Lehman")
Three World Financial Center
New York, New York 10285
Dear Sirs:
CalEnergy Company, Inc., a Delaware corporation (the
"Company"), proposes to sell $350,000,000 aggregate principal amount of the
Company's 7.63% Senior Notes due October 15, 2007 (the "Notes"). The Notes are
to be issued pursuant to the Indenture dated as of October 15, 1997 (the "Base
Indenture"), as amended by the First Supplemental Indenture to be dated as of
October 28, 1997 (the "Supplemental Indenture" and, together with the Base
Indenture, the "Indenture"), between the Company and IBJ Schroder Bank & Trust
Company, as trustee (the "Trustee"). This is to confirm the agreement concerning
the purchase of the Notes from the Company by the Underwriters named in Schedule
A hereto (the "Underwriters").
1. Representations, Warranties and Agreements of the Company.
The Company represents, warrants and agrees that:
(a) A registration statement on Form S-3 (No.
333-32821), including a form of prospectus relating to certain debt and
equity securities ("Registered Securities") to be issued from time to
time by the Company, has been filed with the Securities and Exchange
Commission ("Commission") and has been declared effective under the
Securities Act of 1933, as amended ("Act"), and the Indenture has been
qualified under the Trust Indenture Act of 1939 (the "Trust Indenture
Act"). The Company proposes to file with the Commission pursuant to
Rule 424 under the Act a form of prospectus supplement specifically
relating to the Notes. The registration statement, as amended at the
time of this Agreement, including all material incorporated by
reference therein, is hereinafter referred to as the "Registration
Statement," and the form of
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prospectus included in such Registration Statement, as supplemented by
the prospectus supplement specifically relating to the Notes, as first
filed with the Commission pursuant to and in accordance with Rule
424(b) ("Rule 424(b)") under the Act, including all material
incorporated by reference therein, is hereinafter referred to as the
"Prospectus". No document has been or will be prepared or distributed
in reliance on Rule 434 under the Act.
(b) On the effective date of the registration
statement relating to the Registered Securities, such registration
statement conformed in all material respects to the requirements of the
Act and the rules and regulations of the Commission ("Rules and
Regulations") thereunder and did not include any untrue statement of a
material fact or omit to state any material fact required to be stated
therein or necessary to make the statements therein not misleading, and
on the date of this Agreement, the Registration Statement conforms, and
at the time of filing of the Prospectus pursuant to Rule 424(b), the
Registration Statement and the Prospectus will conform, in all material
respects to the requirements of the Act and the Rules and Regulations,
and none of such documents includes, or will include, any untrue
statement of a material fact or omits, or will omit, to state any
material fact required to be stated therein or necessary to make the
statements therein (with respect to the Prospectus, in the light of the
circumstances under which they were made) not misleading, except that
the foregoing does not apply to statements in or omissions from the
Registration Statement or the Prospectus based upon written information
furnished to the Company by or on behalf of any Underwriter through the
Representatives specifically for use therein, it being understood and
agreed that the only such information is that described as such in
Section 8(e); and the Indenture conforms in all material respects to
the requirements of the Trust Indenture Act and the Rules and
Regulations of the Commission thereunder.
(c) The documents incorporated by reference in the
Registration Statement and the Prospectus, when they became effective
or were last amended or filed with the Commission, as the case may be,
conformed in all material respects to the requirements of the Act or
the Securities Exchange Act of 1934, as amended ("Exchange Act"), as
applicable, and the Rules and Regulations, and none of such documents
contained an untrue statement of a material fact or omitted to state a
material fact required to be stated therein or necessary to make the
statements therein not misleading in light of the circumstances under
which they were made, and any further documents so filed and
incorporated by reference in the Registration Statement and the
Prospectus, when such documents become effective or are filed with the
Commission, as the case may be, shall conform in all material respects
to the requirements of the Act and the Exchange Act as applicable, and
the Rules and Regulations and shall not contain an untrue statement of
a material fact or omit to state a material fact required to be stated
therein or necessary to make the statements therein not misleading in
light of the circumstances under which they were made.
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(d) The Company, each Subsidiary (as defined below)
and each Joint Venture (as defined below) have been duly organized and
are validly existing and, if applicable, in good standing under the
laws of their respective jurisdictions of organization as a
corporation, limited liability company or partnership, as the case may
be, and have the power and authority to own, lease and operate their
property and conduct their businesses as described in the Prospectus;
the Company, the Subsidiaries and the Joint Ventures are duly qualified
to do business and are in good standing as foreign corporations or
foreign partnerships, as the case may be, in each jurisdiction,
domestic or foreign, in which such registration or qualification or
good standing is required (whether by reason of the ownership or
leasing of property, the conduct of business or otherwise), except
where the failure to so register or qualify or be in good standing is
not reasonably likely to have a material adverse effect on the
financial condition, business or results of operations of the Company,
the Subsidiaries and the Joint Ventures taken as a whole. For purposes
of this Agreement, (A) the term "Subsidiary" shall mean the entities
listed in Schedule B hereto ("Schedule B") and (B) the term "Joint
Venture" shall mean the entities listed in Schedule C hereto ("Schedule
C"), it being understood that such term means the general or limited
partnership or other joint venture entity and not the individual
general or limited partners or other joint venturers thereof. The
Subsidiaries listed in Schedule B are all the material direct and
indirect "subsidiaries" of the Company, as such term is defined in Rule
405 of the Rules and Regulations, and are all of the "Significant
Subsidiaries" of the Company, as such term is defined in Rule 1-02 of
Regulation S-X.
(e) All the outstanding shares of capital stock of
each Subsidiary have been duly and validly authorized and issued and
are fully-paid and nonassessable; and except as otherwise set forth in
Schedule B or disclosed in or contemplated by the Prospectus, all
outstanding shares of capital stock of each Subsidiary are owned
beneficially by the Company free and clear of any material claims,
liens, encumbrances and security interests. All of the partnership
interests in the Joint Ventures beneficially owned by the Company (as
reflected in Schedule C) have been duly and validly authorized and
issued and, except as otherwise set forth in Schedule C or disclosed in
or contemplated by the Prospectus, are owned beneficially by the
Company free and clear of any material claims, liens, encumbrances and
security interests.
(f) All the outstanding shares of capital stock of
the Company have been duly and validly authorized and issued and are
fully paid and nonassessable.
(g) The Notes have been duly authorized by the
Company, and, when duly executed, authenticated, issued and delivered
against payment therefor as contemplated hereby and by the Indenture,
shall be validly issued and outstanding, and shall constitute valid and
binding obligations on the part of the Company, entitled to the
benefits of the Indenture, and enforceable against the Company in
accordance with their terms, except as enforcement may be limited by
applicable bankruptcy, fraudulent conveyance, insolvency,
reorganization, moratorium or other similar laws affecting
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creditors' rights generally and by equitable principles generally; and
the Notes, when issued and delivered, shall conform in all material
respects to the descriptions thereof contained in the Prospectus.
(h) Each of the Base Indenture and the Supplemental
Indenture has been duly authorized, and when duly executed and
delivered by the Company, shall constitute a valid and binding
agreement on the part of the Company, enforceable against the Company
in accordance with its terms, except as enforcement may be limited by
applicable bankruptcy, fraudulent conveyance, insolvency,
reorganization, moratorium or other similar laws affecting creditors'
rights generally and by equitable principles generally; and the Base
Indenture and the Supplemental Indenture, when executed and delivered,
shall conform in all material respects to the descriptions thereof
contained in the Prospectus.
(i) The use of the proceeds of the offering of the
Notes as described in the Prospectus has been duly authorized by all
necessary action on the part of the Company.
(j) Except as disclosed in the Prospectus, there are
no contracts, agreements or understandings between the Company and any
person that would give rise to a valid claim against the Company or any
Underwriter for a brokerage commission, finder's fee or other like
payment in connection with the offering of the Notes.
(k) Except as disclosed in the Prospectus, there are
no contracts, agreements or understandings which have not been
satisfied or waived between the Company and any person requiring the
Company to include securities of the Company owned or to be owned by
such person in the securities registered pursuant to the Registration
Statement.
(l) The execution, delivery and performance of this
Agreement, the Base Indenture and the Supplemental Indenture, and the
issuance and sale of the Notes and the use of the proceeds of the
offering of the Notes as described in the Prospectus will not (A)
conflict with the corporate charter or by-laws or partnership agreement
of the Company, any Subsidiary or any Joint Venture, (B) conflict with,
result in the creation or imposition of any lien, charge or other
encumbrance (other than as contemplated by the Indenture) upon any
asset of the Company, any Subsidiary or any Joint Venture pursuant to
the terms of, or constitute a breach of, or default under, any
agreement, indenture or other instrument to which the Company, any
Subsidiary or any Joint Venture is a party or by which the Company, any
Subsidiary or any Joint Venture is bound or to which any of the
properties of the Company, any Subsidiary or any Joint Venture is
subject, or (C) result in a violation of any statute, rule, regulation,
order, judgment or decree of any court or governmental agency, body or
authority having jurisdiction over the Company, any Subsidiary or any
Joint Venture or any of their properties where any such conflicts,
encumbrances, breaches, defaults or violations under
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clauses (B) or (C), individually or in the aggregate, is reasonably
likely to (i) have a material adverse effect on the financial
condition, business or results of operations of the Company, the
Subsidiaries and the Joint Ventures taken as a whole or (ii) impair the
validity or enforceability of the Notes under the Act.
(m) Except (A) as to state or foreign securities laws
and (B) consents of third parties which have been obtained, no consent,
approval, authorization or order of, or filing or registration by the
Company, any Subsidiary or, to the best of the Company's knowledge, any
Joint Venture with, any court, governmental agency or third party is
required for the consummation of the transactions contemplated by this
Agreement and the Indenture in connection with the issuance and sale of
the Notes by the Company and the use of the proceeds of the offering of
the Notes as described in the Prospectus.
(n) The Company has full power and authority to
authorize, issue and sell the Notes as contemplated by this Agreement
and to execute, deliver and perform this Agreement, the Base Indenture,
the Supplemental Indenture and the Notes.
(o) This Agreement has been duly authorized, executed
and delivered by the Company.
(p) Except as disclosed in or contemplated by the
Prospectus, the Company, each Subsidiary and each Joint Venture holds,
as applicable, good and valid title to, or valid and enforceable
leasehold or contractual interests in, all real properties and all
other properties and assets owned or leased by or held under contract
by each of them that are material to the business of the Company, the
Subsidiaries and the Joint Ventures taken as a whole, and free from
liens, encumbrances and defects that would materially interfere with
the use made or to be made thereof by them.
(q) Except as disclosed in or contemplated by the
Prospectus, the Company, the Subsidiaries and the Joint Ventures carry,
or are covered by, insurance in such amounts and covering such risks as
is customary for similarly situated companies in the Company's, such
Subsidiaries' and such Joint Ventures' industries, respectively. Each
of the foregoing insurance policies is valid and in full force and
effect, and no event has occurred and is continuing that permits, or
after notice or lapse of time or both would permit, modifications or
terminations of the foregoing that, individually or in the aggregate,
is reasonably likely to have a material adverse effect on the financial
condition, business or results of operations of the Company, the
Subsidiaries and the Joint Ventures taken as a whole.
(r) Except as disclosed in or contemplated by the
Prospectus, the Company, each Subsidiary and each Joint Venture (i) has
obtained each license, permit, certificate, franchise or other
governmental authorization which is material to the ownership of their
properties or to the conduct of their businesses as described in or
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contemplated by the Prospectus and (ii) is in compliance with all terms
and conditions of such license, permit, certificate, franchise or other
governmental authorization, except (A) in either case where the failure
to do so is not reasonably likely to have, individually or in the
aggregate, a material adverse effect on the financial condition,
business or results of operations of the Company, the Subsidiaries and
the Joint Ventures taken as a whole, (B) permits, consents and
approvals that may be required for future drilling or operating
activities which are ordinarily deemed to be ministerial in nature and
which are anticipated to be obtained in the ordinary course and (C)
permits, consents and approvals for developmental or construction
activities which have not yet been obtained but which have been or will
be applied for in the course of development or construction and which
are anticipated to be obtained in the ordinary course.
(s) Except as disclosed in the Prospectus, there are
no legal or governmental actions, suits or proceedings before any
court, governmental agency, body or authority, domestic or foreign, now
pending or, to the knowledge of the Company, threatened against, or, to
the knowledge of the Company, involving, the Company, any Subsidiary or
any Joint Venture (i) of a character required to be disclosed in the
Registration Statement which is not adequately disclosed in the
Registration Statement or (ii) that, if determined adversely to the
Company, any Subsidiary or any Joint Venture, would be reasonably
likely to have, individually or in the aggregate, a material adverse
effect on the financial condition, business or results of operations of
the Company, the Subsidiaries and the Joint Ventures taken as a whole,
or on the ability of the Company to perform its obligations under this
Agreement or the Indenture, or which are otherwise material in the
context of the sale of the Notes.
(t) The conditions for use of Form S-3, as set forth
in the General Instructions thereto, have been satisfied.
(u) The Company, the Subsidiaries and the Joint
Ventures are currently conducting their respective businesses as
described in the Prospectus.
(v) There are no contracts or documents of a
character required to be described in the Registration Statement or
Prospectus or to be filed as exhibits to the Registration Statement
which are not described or filed as required under the Act.
(w) There is no relationship, direct or indirect,
that exists between or among the Company on the one hand, and the
directors, officers, stockholders, customers or suppliers of the
Company on the other hand, of a character required to be described in
the Registration Statement or Prospectus which is not described as
required under the Act.
(x) There is no labor problem or disturbance with the
persons employed by the Company, any Subsidiary or any Joint Venture
that exists or, to the
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knowledge of the Company, that is threatened and that might reasonably
be expected to have a material adverse effect on the financial
condition, business or results of operations of the Company, the
Subsidiaries and the Joint Ventures taken as a whole.
(y) Neither the Company nor any person who is a
member of a group which is under common control with the Company and
the Subsidiaries and the Joint Ventures, who together with the Company,
the Subsidiaries and the Joint Ventures is treated as a single employer
("ERISA Affiliate") within the meaning of Section 414(b), (c), (m) or
(o) of the Internal Revenue Code of 1986, as amended from time to time
(the "Code"), or Section 4001(b) of the Employee Retirement Income
Security Act of 1974, as amended from time to time ("ERISA"), has
established, sponsored, maintained or had any obligation to contribute
to any employee benefit plans within the meaning of Section 3(3) of
ERISA which are subject to Title IV of ERISA or Section 412 of the
Code. Except where it could not reasonably be expected to result in a
material adverse effect on the financial condition, business or results
of operations of the Company, the Subsidiaries and the Joint Ventures
taken as a whole, (i) all employee benefit plans within the meaning of
Section 3(3) of ERISA established, sponsored or maintained for or on
behalf of the employees, officers or directors of the Company, the
Subsidiaries, the Joint Ventures or any ERISA Affiliate ("Employee
Benefit Plans") are in compliance with all applicable provisions of
ERISA and the Code and the regulations and published interpretations
thereunder and each such Employee Benefit Plan that is intended to be
qualified under Code Section 401(a) has been determined by the Internal
Revenue Service to be so qualified and (ii) no material liability or
obligation has been incurred or is reasonably expected to be incurred
by the Company, the Subsidiaries or the Joint Ventures or any ERISA
Affiliate with respect to any Employee Benefit Plan.
(z) None of the Company, any Subsidiary or any Joint
Venture (i) is in violation of its respective charter, by-laws or
partnership agreement, (ii) is in default, and no event exists and is
continuing that, with notice or lapse of time or both, would constitute
such a default, in the due performance and observance of any material
term contained in any lease, license, indenture, mortgage, deed of
trust, note, bank loan or other evidence of indebtedness or any other
agreement, understanding or instrument to which the Company, any
Subsidiary or any Joint Venture is a party or by which the Company, any
Subsidiary or any Joint Venture or any property of the Company, any
Subsidiary or any Joint Venture may be bound or affected, which
default, individually or in the aggregate, is reasonably likely to have
a material adverse effect on the financial condition, business or
results of operations of the Company, the Subsidiaries and the Joint
Ventures taken as a whole, or (iii) is in violation of any law,
ordinance, governmental rule or regulation or court decree to which it
may be subject, which violation, individually or in the aggregate, is
reasonably likely to have a material adverse effect on the financial
condition, business or results of operations of the Company, the
Subsidiaries and the Joint Ventures taken as a whole or would
materially interfere with the execution, delivery and performance of
this Agreement, the Indenture, the consummation of the transactions
contemplated herein or therein, the issuance and sale
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of the Notes or the use of the proceeds of the offering of the Notes
as described in the Prospectus.
(aa) There has been no storage, disposal, generation,
manufacture, refinement, transportation, handling or treatment of toxic
wastes, hazardous wastes or hazardous substances, pollutants or
contaminants by the Company, any Subsidiary or any Joint Venture (or,
to the knowledge of the Company, any of their predecessors in interest)
at, upon or from any of the property now or previously owned or leased
by the Company, any Subsidiary or any Joint Venture in violation of any
applicable law, ordinance, rule, regulation, order, judgment, decree or
permit or which would require remedial action under any applicable law,
ordinance, rule, regulation, order, judgment, decree or permit, except
for any violation or remedial action which does not have, or would not
be reasonably likely to have, individually or in the aggregate with all
such violations and remedial actions, a material adverse effect on the
financial condition, business or results of operations of the Company,
the Subsidiaries and the Joint Ventures taken as a whole; there has
been no material spill, discharge, leak, emission, injection, escape,
dumping or release of any kind onto such property or into the
environment surrounding such property of any toxic wastes, solid
wastes, hazardous wastes or hazardous substances, pollutants or
contaminants due to or caused by the Company, any Subsidiary or any
Joint Venture or with respect to which the Company, any Subsidiary or
any Joint Venture has knowledge, except for any such spill, discharge,
leak, emission, injection, escape, dumping or release which does not
have, or would not be reasonably likely to have, individually or in the
aggregate with all such spills, discharges, leaks, emissions,
injections, escapes, dumpings and releases, a material adverse effect
on the financial condition, business or results of operations of the
Company, the Subsidiaries and the Joint Ventures taken as a whole; and
the terms "hazardous wastes", "toxic wastes" and "hazardous substances"
shall have the meanings specified in any applicable local, state,
federal and foreign laws or regulations with respect to environmental
protection.
(ab) None of the Company or any Subsidiary or any
Joint Venture is an open-end investment company, unit investment trust
or face-amount certificate company that is or is required to be
registered under Section 8 of the United States Investment Company Act
of 1940, as amended (the "1940 Act"), nor is it a closed-end investment
company required to be registered, but not registered, thereunder; and
each of the Company, each Subsidiary and each Joint Venture is not and,
after giving effect to the offering and sale of the Notes and the
application of the proceeds thereof as described in the Prospectus,
will not be an "investment company", or, to the best knowledge of the
Company after due inquiry, a company controlled by an "investment
company" within the meaning of the 1940 Act.
(ac) The Company, each Subsidiary and each Joint
Venture has filed all federal, state and local income and franchise tax
returns required to be filed through the date hereof, or has filed
extensions in accordance with applicable law, and has paid all taxes
required to be paid through the date hereof thereon, except for such
failures to file
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or pay that would not, individually or in the aggregate, be reasonably
likely to have a material adverse effect on the financial condition,
business or results of operations of the Company, the Subsidiaries and
the Joint Ventures taken as a whole, and no tax deficiency has been
determined adversely to the Company, any Subsidiary or any Joint
Venture that has had (nor does the Company have any knowledge of any
tax deficiency which, if determined adversely to the Company, any
Subsidiary or any Joint Venture would be reasonably likely to have) a
material adverse effect on the financial condition, business or results
of operations of the Company, the Subsidiaries and the Joint Ventures
taken as a whole.
(ad) The financial statements and the related notes
and schedules included or incorporated by reference in the Registration
Statement and Prospectus fairly present the financial position, the
results of operations and the cash flows of the Company and its
consolidated subsidiaries at the respective dates and for the
respective periods to which they apply; and such financial statements
and the related notes and schedules have been prepared in conformity
with United States generally accepted accounting principles applied on
a consistent basis throughout the periods therein specified. The
historical information under the caption "Capitalization" in the
Prospectus is accurately described as of the date presented therein.
(ae) Since the date of the latest financial
statements included or incorporated by reference in the Prospectus (i)
there has been no material adverse change, nor any development or event
involving a prospective material adverse change, in the financial
condition, business or results of operations of the Company, the
Subsidiaries and the Joint Ventures taken as a whole, and (ii) except
as disclosed in or contemplated by the Prospectus, there have not been
any transactions entered into by the Company, the Subsidiaries or any
Joint Venture, other than those in the ordinary course of business,
which are material to the Company, the Subsidiaries and the Joint
Ventures taken as a whole; and, except as disclosed in the Prospectus,
there has been no dividend or distribution of any kind declared, paid
or made by the Company on any class of its capital stock.
(af) The pro forma financial information included in
the Registration Statement and the Prospectus presents fairly the
information shown therein, has been prepared in accordance with the
Commission's rules and guidelines with respect to pro forma financial
information, has been properly compiled on the pro forma bases
described therein, and, in the opinion of the Company, the assumptions
used in the preparation thereof are reasonable and the adjustments used
therein are appropriate to give effect to the transactions or
circumstances referred to therein.
(ag) The accountants who have certified certain
financial statements of the Company or of businesses acquired by the
Company, as applicable, and whose reports appear in the Registration
Statement and the Prospectus or are incorporated by reference therein,
are and were independent public accountants as required by the Act
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and the Rules and Regulations during the periods covered by the
financial statements on which they reported which are contained or
incorporated by reference in the Registration Statement or the
Prospectus.
(ah) (i) Each of the operational electric generation
facilities ("Plants") owned in whole or in part, directly or indirectly
by (A) the Company, (B) the Subsidiaries or (C) the Joint Ventures
which is located in the United States is a "qualifying cogeneration
facility" or a "qualifying small power production facility" (either or
both of which are hereinafter referred to as a "QF"), as such terms are
defined under the Federal Power Act, as amended ("FPA"), and the
regulations thereunder, and has continuously been in compliance with
the requirements for being a QF since it commenced sales of
electricity; (ii) with respect to each Plant under development and
located in the United States, either (x) to the extent that the
Company, the Subsidiaries or the Joint Ventures plan to act as the
owner and/or operator of any one of the Plants under development by the
Company, the Subsidiaries or the Joint Ventures and located in the
United States (as currently configured or as currently anticipated to
be configured), that owner and/or operator satisfies or is currently
expected to satisfy current regulatory requirements for being an
"exempt wholesale generator" ("EWG"), as such term is defined under the
FPA, the Public Utility Holding Company Act of 1935, as amended
("PUHCA") and the regulations thereunder or (y) each of the Plants
under development by the Company, the Subsidiaries or the Joint
Ventures and located in the United States (as currently configured or
as currently anticipated to be configured) will be a QF and will be in
continuous compliance with the requirements for being a QF; (iii) the
owner or operator of each of the Plants under development by the
Company, the Subsidiaries or the Joint Ventures and located outside the
United States (as currently configured or as currently anticipated to
be configured) satisfies or is currently expected to satisfy current
regulatory requirements for being either (A) an EWG or (B) a "foreign
utility company," as such term is defined under PUHCA and the
regulations thereunder; (iv) none of the entities identified in clause
(A) or (B) of subparagraph (i) above owns or operates or will own or
operate any electric distribution facilities or any electric
transmission facilities in or outside of the United States other than
electric transmission facilities that have been or will be approved by
the Federal Energy Regulatory Commission as being part of a QF, or the
owner and/or operator of which will have qualified as EWG's or as
"foreign utility companies" as such terms are defined under the FPA,
PUHCA and the regulations thereunder; and (v) none of the entities
identified in clause (A), (B) or (C) of subparagraph (i) above is, or
is subject to regulation as, a "public utility holding company" or a
"subsidiary company" of a "public utility holding company," as those
terms are defined under PUHCA, or is subject to regulation under the
FPA, other than as contemplated by 18 C.F.R Section 292.601(c), or,
except as described in or contemplated by the Prospectus, subject to
regulation by any state law or foreign governmental law with respect to
rates or the financial or organizational regulation of electric
utilities.
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2. Purchase of the Notes by the Underwriters.
On the basis of the representations and warranties contained
in, and subject to the terms and conditions of, this Agreement, the Company
agrees to sell $350,000,000 million aggregate principal amount of the Notes to
the several Underwriters and each of the Underwriters, severally and not
jointly, agrees to purchase the principal amount of Notes set forth opposite
that Underwriter's name in Schedule 1 hereto. The price to be paid to the
Company for the Notes shall be 98.25% of the aggregate principal amount thereof.
The Company shall not be obligated to deliver any of the Notes to be delivered
on the Delivery Date, except upon payment for all the Notes to be purchased on
the Delivery Date (as hereinafter defined) as provided herein.
3. Offering of the Notes by the Underwriters.
Upon authorization by the Representatives of the release of
the Notes, the several Underwriters propose to offer the Notes for sale upon the
terms and conditions set forth in the Prospectus.
4. Delivery of and Payment for the Notes. Delivery of and
payment for the Notes shall be made at the office of Skadden, Arps, Slate,
Meagher & Flom LLP, 919 Third Avenue, New York, New York 10022, at 10:00 A.M.,
New York City time, on the third full business day following the date of this
Agreement or at such other date or place as shall be determined by agreement
between the Lehman and the Company. This date and time are sometimes referred to
as the "Delivery Date." On the Delivery Date, the Company shall deliver or cause
to be delivered to the Representatives for the account of each Underwriter the
Notes, in the form of one or more permanent global notes in definitive form (the
"Global Notes") deposited with the Trustee as custodian for the Depository Trust
Company ("DTC") and registered in the name of Cede & Co., as nominee for DTC,
against payment to or upon the order of the Company of the purchase price by
certified or official bank check or checks payable in or wire transfer of
Federal (same-day) funds. Time shall be of the essence, and delivery at the time
and place specified pursuant to this Agreement is a further condition of the
obligation of each Underwriter hereunder. Upon delivery, the Notes shall be
registered in such names and in such denominations as the Representatives shall
request in writing not less than two full business days prior to the Delivery
Date. For the purpose of expediting the checking and packaging of the Global
Notes, the Company shall make the Global Notes available for inspection by the
Representatives in New York, New York, not later than 2:00 P.M., New York City
time, on the business day prior to the Delivery Date.
5. Further Agreements of the Company. The Company agrees:
(a) The Company will file the Prospectus with the Commission
pursuant to and in accordance with subparagraph (2) (or, if applicable
and if consented to by Lehman, subparagraph (5)) of Rule 424(b) not
later than the second business day
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following the execution and delivery of this Agreement. The Company
will advise Lehman promptly of any such filing pursuant to Rule 424(b).
(b) The Company will advise the Representatives promptly of
any proposal to amend or supplement the Registration Statement or the
Prospectus and will not effect such amendment or supplementation
without the Representatives' prior consent, which consent shall not be
unreasonably withheld; and the Company will also advise the
Representatives promptly of the effectiveness of any amendment or
supplementation of the Registration Statement or the Prospectus and of
the institution by the Commission of any stop order proceedings in
respect of the Registration Statement and will use its reasonable best
efforts to prevent the issuance of any such stop order and to obtain as
soon as possible its lifting, if issued.
(c) If, at any time when a prospectus relating to the Notes is
required, in the opinion of counsel for the Underwriters, to be
delivered under the Act in connection with sales by any Underwriter or
dealer, any event occurs as a result of which the Prospectus as then
amended or supplemented would include an untrue statement of a material
fact or omit to state any material fact necessary to make the
statements therein, in the light of the circumstances under which they
were made, not misleading, or if it is necessary at any such time to
amend the Prospectus to comply with the Act, the Company will promptly
notify the Representatives of such event and will promptly prepare and
file with the Commission, at its own expense, an amendment or
supplement which will correct such statement or omission or an
amendment which will effect such compliance. Neither the
Representatives' consent to, nor the Underwriters' delivery of, any
such amendment or supplement shall constitute a waiver of any of the
conditions set forth in Section 7.
(d) As soon as practicable, but not later than 16 months after
the date of this Agreement, the Company will make generally available
to its securityholders an earnings statement (which need not be
audited) covering a period of at least 12 months beginning after the
later of (i) the effective date of the most recent post-effective
amendment to the Registration Statement to become effective prior to
the date of this Agreement and (ii) the date of the Company's most
recent Annual Report on Form 10-K filed with the Commission prior to
the date of this Agreement, which will satisfy the provisions of
Section 11(a) of the Act.
(e) The Company will furnish to the Representatives copies of
the Registration Statement (four of which will be signed and will
include all exhibits), each preliminary prospectus and preliminary
prospectus supplement relating to the Notes, and, so long as delivery
of a prospectus relating to the Notes is required to be delivered under
the Act in connection with sales by any Underwriter or dealer, the
Prospectus and all amendments and supplements to such documents, in
each case as soon as available and in such quantities as the
Representatives request. The Company will pay the expenses of printing
and distributing to the Underwriters all such documents.
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(f) The Company will arrange for the qualifications of the
Notes for sale under the laws of such jurisdictions in the United
States as the Representatives designate and will continue such
qualifications in effect so long as required for the distribution,
provided that, in connection therewith the Company shall not, with
respect to any such jurisdiction, be required to qualify as a foreign
corporation, to file a general consent to service of process or to take
any other action that would subject it to service of process in suits
other than those arising out of the offering of the Notes or to
taxation in respect of doing business in any jurisdiction in which it
is not otherwise subject.
(g) During the period of three years hereafter, the Company
will furnish to the Representatives and, upon request, to each of the
Underwriters, as soon as practicable, after the end of each fiscal
year, a copy of its annual report to stockholders for such year; and
the Company will furnish to the Representatives as soon as available, a
copy of each report and any definitive proxy statement of the Company
filed with the Commission under the Exchange Act or mailed to
stockholders.
(h) The Company will indemnify and hold harmless the
Underwriters against any documentary, stamp or similar issuance tax,
including any interest and penalties, on the issuance and sale of the
Notes and on the execution and delivery of this Agreement. All payments
to be made by the Company hereunder shall be made without withholding
or deduction for or on account of any present or future taxes, duties
or governmental charges whatsoever unless the Company is compelled by
law to deduct or withhold such taxes, duties or charges. In that event,
the Company shall pay such additional amounts as may be necessary in
order that the net amounts received after such withholding or deduction
shall equal the amounts that would have been received if no withholding
or deduction had been made.
(i) The Company shall apply the net proceeds from the sale of
the Notes as set forth in the Prospectus.
(j) No action has been or, prior to the completion of the
distribution of the Notes, will be taken by the Company in any
jurisdiction outside the United States that would permit a public
offering of the Notes, or possession or distribution of the Prospectus,
or any amendment or supplement thereto, or any related preliminary
prospectus or preliminary prospectus supplement issued in connection
with the offering of the Notes, or any other offering material, in any
country or jurisdiction where action for that purpose is required.
6. Expenses. The Company agrees to pay (a) the costs incident
to the authorization, issuance, sale and delivery of the Notes and will
reimburse the Underwriters (if and to the extent necessary) for any travel
expenses of the Company's officers and employees and other expenses of the
Company in connection with attending or hosting meetings with prospective
purchasers of the Notes ; (b) the costs incident to the preparation, printing
and filing under the Securities Act of the Registration Statement and any
amendments and exhibits thereto;
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<PAGE>
(c) the costs of distributing any preliminary prospectus, preliminary prospectus
supplement, the Prospectus and any amendment or supplement thereto or any
document incorporated by reference therein, all as provided in this Agreement;
(d) the costs of producing and distributing this Agreement, the Base Indenture,
the Supplemental Indenture and any other related documents in connection with
the offering, purchase, sale and delivery of the Notes; (e) any rating agency
fees; and (f) all other costs and expenses incident to the performance of the
obligations of the Company under this Agreement; provided that, except as
provided in this Section 6 and in Section 11, the Underwriters shall pay their
own costs and expenses, including the costs and expenses of their counsel, any
transfer taxes on the Notes which they may sell and the expenses of advertising
any offering of the Notes made by the Underwriters.
7. Conditions of Underwriters' Obligations. The respective
obligations of the Underwriters hereunder are subject to the accuracy, when made
and on the Delivery Date, of the representations and warranties of the Company
contained herein, to the performance by the Company of its obligations
hereunder, and to each of the following additional terms and conditions:
(a) On or prior to the date of this Agreement, the
Representatives shall have received a letter, dated the date of
delivery thereof, of Deloitte & Touche LLP (and the independent
accountants of any subsidiary of the Company or of any business
acquired by the Company for which financial statements and financial
data are included or incorporated by reference in the Prospectuses) in
agreed form.
All financial statements and schedules included in material
incorporated by reference into the Registration Statement and the
Prospectus shall be deemed included in the Registration Statement and
the Prospectuses for purposes of this subsection.
(b) The Prospectus shall have been filed with the Commission
in accordance with the Rules and Regulations and Section 5(a) of this
Agreement. Prior to the Delivery Date, no stop order suspending the
effectiveness of the Registration Statement shall have been issued and
no proceedings for that purpose shall have been instituted or, to the
knowledge of the Company or the Representatives, shall be contemplated
by the Commission.
(c) Subsequent to the execution and delivery of this
Agreement, there shall not have occurred (i) any change, or any
development or event involving a prospective change in the financial
condition, business or results of operations of the Company, the
Subsidiaries and the Joint Ventures, taken as a whole, which, in the
judgment of a majority in interest of the Underwriters including the
Representatives, is material and adverse and makes it impractical or
inadvisable to proceed with completion of the public offering or the
sale of and payment for the Notes; (ii) any downgrading in the rating
of any debt securities or preferred stock of the Company by any
"nationally recognized statistical rating organization" (as defined for
purposes of Rule 436(g) under the Act), or any public announcement that
any such organization has under surveillance or review
14
<PAGE>
its rating of any debt securities or preferred stock of the Company
(other than an announcement with positive implications of a possible
upgrading, and no implication of a possible downgrading, of such
rating); (iii) any suspension or limitation of trading in securities
generally on the New York Stock Exchange or any setting of minimum
prices for trading on such exchange, or any suspension of trading of
any securities of the Company on any exchange or in the
over-the-counter market; (iv) any banking moratorium declared by
Federal or New York authorities; or (v) any outbreak or escalation of
major hostilities in which the United States is involved, any
declaration of war by the United States Congress or any other
substantial national or international calamity or emergency if, in the
judgment of a majority in interest of the Underwriters including the
Representatives, the effect of any such outbreak, escalation,
declaration, calamity or emergency on the financial markets makes it
impracticable or inadvisable to proceed with completion of the public
offering or the sale of and payment for the Notes.
(d) The Representatives shall have received an opinion, dated
the Delivery Date, of Steven A. McArthur, Senior Vice President and
General Counsel of the Company, to the effect that:
(i) Each of the Company, the Subsidiaries and the
Joint Ventures has been duly organized and is validly existing
and, if applicable, in good standing under the laws of its
respective jurisdiction of organization and each of the
Company, the Subsidiaries and the Joint Ventures has the power
and authority to own, lease and operate its respective
properties and to conduct its businesses as described in the
Prospectus;
(ii) Each of the Company, the Subsidiaries and the
Joint Ventures is duly registered or qualified to do business
and (to the extent applicable) is in good standing as a
foreign corporation, a foreign partnership or a foreign
limited liability company, as the case may be, in each
jurisdiction, domestic or foreign, in which such registration,
qualification or good standing is required (whether by reason
of the ownership or leasing of property, the conduct of its
business or otherwise), except where the failure to so
register or qualify or be in good standing is not reasonably
likely to have a material adverse effect on the financial
condition, business or results of operation of the Company,
the Subsidiaries and the Joint Ventures taken as a whole;
(iii) The Company has the authorized and outstanding
capitalization as set forth under the caption "Capitalization"
in the Prospectus; to the best knowledge of such counsel, all
the outstanding shares of capital stock of each Subsidiary
have been duly and validly authorized and issued and are fully
paid and nonassessable; and to the best knowledge of such
counsel, except as otherwise set forth in Schedule B attached
hereto or disclosed in or contemplated by the Prospectus, all
outstanding shares of capital stock of each Subsidiary are
owned beneficially by the Company free and clear of any
material claims, liens, encum-
15
<PAGE>
brances and security interests; and to the best knowledge of
such counsel, all of the partnership interests in the Joint
Ventures owned by the Company (as reflected in Schedule C
attached hereto) have been duly and validly authorized and
issued, and, except as otherwise disclosed in or contemplated
by the Prospectus, are owned beneficially by the Company free
and clear of any material claims, liens, encumbrances and
security interests;
(iv) Each of the Base Indenture and the Supplemental
Indenture has been duly and validly authorized, executed and
delivered by the Company and constitutes the legal, valid and
binding obligation of the Company, enforceable against the
Company in accordance with its terms, except as enforcement
may be limited by bankruptcy, insolvency (involving, without
limitation, all laws relating to fraudulent transfers),
reorganization or other laws relating to or affecting
creditors' rights generally and except as enforcement thereof
is subject to general principles of equity (regardless of
whether enforcement is considered in a proceeding in equity or
at law);
(v) The Notes have been validly authorized by the
Company, and, assuming due authorization by the Trustee, when
issued and delivered as contemplated by the Indenture upon
payment therefor as provided in this Agreement, will be
validly issued and outstanding, and will constitute valid and
binding obligations of the Company, entitled to the benefits
of the Indenture and enforceable against the Company in
accordance with their terms, except as enforcement may be
limited by bankruptcy, insolvency (involving, without
limitation, all laws relating to fraudulent transfers),
reorganization, moratorium or other laws relating to or
affecting creditors' rights generally and except as
enforcement thereof is subject to general principles of equity
(regardless of whether enforcement is considered in a
proceeding in equity or at law);
(vi) The statements in the Prospectus under the
captions "Description of the Notes" and "Description of Debt
Securities," insofar as they purport to summarize the
provisions of the Indenture and the Notes, fairly summarized
such provisions in all material respects.
(vii) To such counsel's knowledge, except as
otherwise disclosed in the Prospectus, there are no contracts,
agreements or understandings between the Company and any
person that would give rise to a valid claim against the
Company or any Underwriter for a brokerage commission,
finder's fee or other like payment;
(viii) To such counsel's knowledge, there are no
contracts, agreements or understandings which have not been
satisfied or waived between the Company and any person
granting such person the right to require the Company to file
a registration statement under the Act with respect to any
securities of the Company
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<PAGE>
owned or to be owned by such person or to require the Company
to include any such securities in the securities registered
pursuant to the Registration Statement or in any securities
being registered pursuant to any other registration statement
filed by the Company under the Act;
(ix) Except as disclosed in or contemplated by the
Prospectus, each of the Company, the Subsidiaries and the
Joint Ventures has good and valid title to, or valid and
enforceable leasehold or contractual interests in, all real
properties and all other properties and assets owned or leased
by each of them that are material to the business of each such
entity, in each case free from all liens, encumbrances, and
defects that would materially interfere with the use made or
to be made thereof by them;
(x) To such counsel's knowledge, there is no legal or
governmental action, suit or proceeding before any court,
governmental agency, body or authority, domestic or foreign,
now pending, threatened against, or involving, the Company,
any Subsidiary or any Joint Venture (i) of a character
required to be disclosed in the Registration Statement which
is not adequately disclosed in the Registration Statement or
(ii) that, if determined adversely to the Company, any
Subsidiary or any Joint Venture, is reasonably likely to have,
individually or in the aggregate, a material adverse effect on
the financial condition, business or results of operations of
the Company, the Subsidiaries and the Joint Ventures taken as
a whole or on the ability of the Company to perform its
obligations under this Agreement, the Indenture or the Notes;
(xi) To such counsel's knowledge, the Company, each
Subsidiary and each Joint Venture (i) has obtained each
license, permit, certificate, franchise or other governmental
authorization which is material to the ownership of their
properties or to the conduct of their businesses as described
in the Prospectuses and (ii) is in compliance with all terms
and conditions of such license, permit, certificate, franchise
or other governmental authorization, except (x) in either case
where the failure to do so is not reasonably likely to have,
individually or in the aggregate, a material adverse effect on
the financial condition, business or results of operations of
the Company, the Subsidiaries and the Joint Ventures taken as
a whole, (y) permits, consents and approvals that may be
required for future drilling or operating activities which are
ordinarily deemed to be ministerial in nature and which are
anticipated to be obtained in the ordinary course and (z)
permits, consents and approvals for developmental or
construction activities which have not yet been obtained but
which have been or will be applied for in the course of
development or construction and which are anticipated to be
obtained in the ordinary course;
(xii) The Company has all requisite corporate power
and authority to enter into this Agreement, the Base Indenture
and the Supplemental Indenture, to
17
<PAGE>
issue the Notes and to consummate the transactions
contemplated by this Agreement, the Indenture and the Notes;
(xiii) There are no contracts or other documents
which are required to be described in the Prospectus or filed
as exhibits to the Registration Statement by the Act or by the
Rules and Regulations which have not been described or filed
as exhibits to the Registration Statement or incorporated by
reference therein as permitted by the Rules and Regulations;
(xiv) This Agreement has been duly authorized,
executed and delivered by the Company;
(xv) (A) The execution, delivery and performance of
this Agreement, the Indenture, the issuance and sale of the
Notes and the use of proceeds of the Notes as designated in
the Prospectus do not and will not (i) conflict with the
corporate charter or by-laws or partnership agreement of the
Company, any Subsidiary or any Joint Venture, (ii) to the best
knowledge of such counsel (except as contemplated by the
Indenture), conflict with, result in the creation or
imposition of any lien, charge or other encumbrance upon any
asset of the Company, any Subsidiary or any Joint Venture
pursuant to the terms of, or constitute a breach of, or
default under, any agreement, indenture or other instrument to
which the Company, any Subsidiary or any Joint Venture is a
party or by which the Company, any Subsidiary or any Joint
Venture is bound or to which any of the properties of the
Company, any Subsidiary or any Joint Venture is subject, or
(iii) to the best knowledge of such counsel, result in a
violation of any statute, rule, regulation, order, judgment or
decree of any court or governmental agency, body or authority
having jurisdiction over the Company, any Subsidiary or any
Joint Venture or any of their properties where any such
conflict, encumbrance, breach, default or violation under
clauses (ii) or (iii), individually or in the aggregate, is
reasonably likely to have a material adverse effect on the
financial condition, business or results of operations of the
Company, its Subsidiaries and the Joint Ventures taken as a
whole; (B) to the knowledge of such counsel, except for (i)
the registration of the Notes under the Act and the
qualification of the Indenture under the Trust Indenture Act
and (ii) such consents, approvals, authorizations,
registrations or qualifications as may be required under the
Exchange Act and applicable state securities laws in
connection with the purchase and distribution of the Notes, no
consent, authorization or order of, or filing or registration
by the Company, any Subsidiary or any Joint Venture with, any
court, governmental agency or third party is required in
connection with the execution, delivery and performance by the
Company of this Agreement, the Indenture, the consummation of
the transactions contemplated herein and therein, and the
issuance, distribution and sale of the Notes as contemplated
herein and therein, the failure to obtain which, individually
or in the aggregate, is reasonably likely to have a material
adverse effect on the financial condition, business or results
of operations of the
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<PAGE>
Company, the Subsidiaries and the Joint Ventures taken as a
whole, or on the Notes or the ability of the Company to
perform its obligations under this Agreement, the Indenture
and the Notes and (C) the Company has full corporate power and
authority to authorize, issue and sell the Notes as
contemplated by this Agreement and the Indenture;
(xvi) The Company is not required to be registered
under the Investment Company Act of 1940, as amended;
(xvii) The documents incorporated by reference in the
Prospectus and any further amendments or supplements to any
such incorporated document made by the Company prior to the
Delivery Date (other than the financial statements, related
schedules and other financial and statistical information
contained therein or omitted therefrom as to which such
counsel need express no opinion), when they became effective
or were filed with the Commission, as the case may be, appear
on their face to have been appropriately responsive in all
material respects to the applicable requirements of the Act or
the Exchange Act, as the case may be, and the Rules and
Regulations of the Commission thereunder; and
(e) The Company shall have furnished to the Representatives
the opinion of Willkie Farr & Gallagher, special counsel to the
Company, addressed to the Underwriters and dated the Delivery Date, in
form and substance satisfactory to the Representatives, to the effect
that:
(i) The Company has been duly organized and is
validly existing and in good standing under the laws of its
jurisdiction of organization and the Company has the corporate
power and authority to own, lease and operate its properties
and to conduct its businesses as described in the Prospectus;
(ii) Such counsel has been advised by the Commission
that the Registration Statement has been declared effective
under the Act; the Prospectus has been filed with the
Commission pursuant to the appropriate subparagraph of Rule
424(b) of the Rules and Regulations; to the best knowledge of
such counsel, no stop order suspending the effectiveness of
the Registration Statement has been issued and no proceeding
for that purpose is pending or threatened by the Commission;
(iii) The Registration Statement, as of its effective
date, the Registration Statement and the Prospectus, as of the
date of this Agreement, and any further amendments or
supplements thereto made by the Company prior to the Delivery
Date (in each case, other than the financial statements,
related schedules, other financial and statistical information
contained therein or omitted therefrom as to which such
counsel need express no opinion) as of their effective dates,
appear on their face to have been appropriately responsive in
all material respects to the
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applicable requirements of the Act, the Exchange Act and the
Rules and Regulations;
(iv) Each of the Base Indenture and the Supplemental
Indenture has been duly and validly authorized, executed and
delivered by the Company and constitutes the valid and binding
obligation of the Company, enforceable against the Company in
accordance with its terms, except as enforcement may be
limited by bankruptcy, insolvency (including, without
limitation, all laws relating to fraudulent transfers),
reorganization or other similar laws affecting creditors'
rights generally and except as enforcement thereof is subject
to general principles of equity (regardless of whether
enforcement is considered in a proceeding in equity or at
law); and the Indenture conforms as to legal matters in all
material respects to the description thereof contained in the
Prospectus;
(v) The Notes have been validly authorized by the
Company, and, upon payment therefor as provided in this
Agreement, will be validly issued and outstanding, and will
constitute valid and binding obligations of the Company
entitled to the benefits of the Indenture and enforceable
against the Company in accordance with their terms, except as
enforcement may be limited by bankruptcy, insolvency
(including, without limitation, all laws relating to
fraudulent transfers), reorganization or other similar laws
relating to or affecting creditors' rights generally and
except as enforcement thereof is subject to general principles
of equity (regardless of whether enforcement is considered in
a proceeding in equity or at law); and the Notes conform as to
legal matters in all material respects to the description
thereof contained in the Prospectus;
(vi) To such counsel's knowledge, there are no
contracts or other documents which are required to be
described in the Prospectus or filed as exhibits to the
Registration Statement by the Act or by the Rules and
Regulations which have not been described or filed as exhibits
to the Registration Statement or incorporated by reference
therein as permitted by the Rules and Regulations;
(vii) This Agreement has been duly authorized,
executed and delivered by the Company; and
(viii) No consent, authorization, order of, or filing
or registration by the Company with, any United States
governmental authority or body having jurisdiction over the
Company is necessary or required for the performance by the
Company of its obligations under this Agreement, the Indenture
or the Notes or in connection with the issuance and sale of
the Notes hereunder or thereunder, except as may be required
under applicable state or foreign securities laws or blue sky
laws in connection with the purchase and distribution of the
Notes.
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<PAGE>
(f) In the rendering of the opinions described in Section 7(d)
and Section 7(e) above, such counsel may (i) state that their opinion
is limited to matters governed by the Federal laws of the United States
of America, the laws of the State of New York and the General
Corporation Law of the State of Delaware and (ii) rely, to the extent
they deem proper, in respect of matters of fact, upon certificates and
representations of officers of the Company, the Subsidiaries or the
Joint Ventures and public officials. Such counsel shall also have
furnished to the Representatives a written statement, addressed to the
Underwriters and dated the Delivery Date, in form and substance
reasonably satisfactory to the Representatives, to the effect that (i)
such counsel (in the case of Willkie Farr & Gallagher, such counsel may
state that they have acted as special counsel to the Company for
purposes of the offering of the Notes) have participated in conferences
with representatives of the Company, some of which have been attended
by the Underwriters and their counsel, at which conferences the
contents of the Registration Statement, the Prospectus, each amendment
thereof and supplement thereto and related matters were discussed,
although such counsel has not independently checked or verified and is
not passing upon and assumes no responsibility for the factual
accuracy, completeness or fairness of the statements (except to the
extent set forth in the opinion of such counsel) contained in the
Registration Statement, the Prospectus, any amendment thereof or
supplement thereto, and (ii) based on the foregoing, no facts have come
to the attention of such counsel which cause them to believe that
(except for the financial statements, related schedules and other
financial and statistical information contained therein or omitted
therefrom as to all of which such counsel need not express any belief)
(I) the Registration Statement (other than the documents incorporated
by reference therein), as of its effective date and as of the date of
this Agreement, contained any untrue statement of a material fact or
omitted to state a material fact required to be stated therein or
necessary in order to make the statements therein not misleading, or
that the Prospectus, as amended and supplemented as of the date of this
Agreement or the Delivery Date, contain any untrue statement of a
material fact or omit to state a material fact required to be stated
therein or necessary in order to make the statements therein, in light
of the circumstances under which they were made, not misleading or
(II), in the case of the General Counsel of the Company, any document
incorporated by reference in the Prospectus or any further amendment or
supplement to such incorporated document made by the Company prior to
the Delivery Date when they became effective or were filed with the
Commission, as the case may be, contained, in the case of a
registration statement that became effective under the Act, any untrue
statement of a material fact or omitted to state a material fact
required to be stated therein, in the light of the circumstances under
which they were made, or necessary in order to make the statements
therein not misleading, or, in the case of other documents which were
filed under the Exchange Act with the Commission, an untrue statement
of a material fact or omitted to state a material fact necessary in
order to make the statements therein, in light of the circumstances
under which they were made, not misleading.
(g) The Representatives shall have received from Skadden,
Arps, Slate Meagher & Flom LLP, counsel for the Underwriters, such
opinion or opinions, dated the Delivery
21
<PAGE>
Date, with respect to the issuance and sale of the Notes, the
Registration Statement, the Prospectus and other related matters as the
Representatives may require, and the Company shall have furnished to
such counsel such documents as they request for the purpose of enabling
them to pass upon such matters.
(h) The Representatives shall have received a certificate,
dated the Delivery Date, of the President or any Vice-President and a
principal financial or accounting officer of the Company in which such
officers shall state that, to the best of their knowledge after
reasonable investigation, the representations and warranties of the
Company in this Agreement are true and correct in all material
respects, that the Company has complied with all agreements and
satisfied all conditions on its part to be performed or satisfied
hereunder at or prior to the Delivery Date, that no stop order
suspending the effectiveness of the Registration Statement has been
issued and no proceedings for that purpose have been instituted or are
contemplated by the Commission and that, subsequent to the date of the
most recent financial statements included or incorporated by reference
in the Prospectus, there has been no material adverse change, nor any
development or event involving a prospective material adverse change,
in the financial condition, business or results of operations of the
Company, the Subsidiaries and the Joint Ventures taken as a whole
except as set forth in or contemplated by the Prospectuses or as
described in such certificate.
(i) The Representatives shall have received letters, dated the
Delivery Date, of Deloitte & Touche LLP and such other independent
accountants for subsidiaries and acquired businesses which meet the
requirements of subsection (a) of this Section, except that the
specified date referred to in such subsection will be a date not more
than three days prior to the Delivery Date for the purposes of this
subsection.
(j) Since the date of the latest audited financial statements
included or incorporated by reference in the Prospectus (i) except as
disclosed in the Prospectus, there shall have been no material adverse
change, or a development which is reasonably likely to lead to a
material adverse change, in the financial condition, business or
results of operations of the Company, the Subsidiaries and the Joint
Ventures taken as a whole and (ii) except as disclosed in the
Prospectus, there shall not have been any transactions entered into by
the Company, the Subsidiaries or any Joint Venture, other than those in
the ordinary course of business, which are material and adverse to the
Company, the Subsidiaries and the Joint Ventures taken as a whole, and
which, in the judgment of the Representatives, make it impracticable or
inadvisable to proceed with the public offering or the delivery of the
Notes on the terms and in the manner contemplated in the Prospectus.
All opinions, letters, evidence and certificates mentioned
above or elsewhere in this Agreement shall be deemed in compliance with
the provisions hereof only if they are in the form and substance
reasonably satisfactorily to counsel for the Underwriters.
22
<PAGE>
8. Indemnification and Contribution.
(a) The Company shall indemnify and hold harmless each
Underwriter, its officers and employees and each person, if any, who controls
any Underwriter within the meaning of the Act, from and against any loss, claim,
damage or liability, joint or several, or any action in respect thereof
(including, but not limited to, any loss, claim, damage, liability or action
relating to purchases and sales of the Notes), to which that Underwriter,
officer, employee or controlling person may become subject, under the Act or
otherwise, insofar as such loss, claim, damage, liability or action arises out
of, or is based upon, (i) any untrue statement or alleged untrue statement of a
material fact contained in the Registration Statement, the Prospectus, or in any
amendment or supplement thereto, or in any related preliminary prospectus or
preliminary prospectus supplement, (ii) the omission or alleged omission to
state in the Registration Statement or the Prospectus, or in any amendment or
supplement thereto, or any related preliminary prospectus or preliminary
prospectus supplement, any material fact required to be stated therein or
necessary to make the statements therein (with respect to any prospectus or
prospectus supplement, in light of the circumstances under which they were made)
not misleading, and shall reimburse each Underwriter and each officer, employee
or controlling person promptly upon demand for any legal or other expenses
reasonably incurred by that Underwriter in connection with investigating or
defending or preparing to defend against any such loss, claim, damage, liability
or action as such expenses are incurred; provided, however, that the Company
shall not be liable in any such case to the extent that any such loss, claim,
damage, liability or action arises out of, or is based upon, an untrue statement
or alleged untrue statement or omission or alleged omission made in any
preliminary prospectus or preliminary prospectus supplement, the Registration
Statement or the Prospectus, or in any such amendment or supplement, in reliance
upon and in conformity with written information furnished to the Company through
the Representatives by or on behalf of any Underwriter specifically for
inclusion therein; provided, that, with respect to any untrue statement or
omission in the Preliminary Prospectus dated September 22, 1997, as supplemented
by the Preliminary Prospectus Supplement dated October 8, 1997 (as supplemented,
the "Preliminary Prospectus"), this indemnity agreement shall not inure to the
benefit of any Underwriter, or its officers, employees or controlling persons,
on account of any loss, claim, damage, liability or action arising from the sale
of any Notes to any person by that Underwriter if that Underwriter failed to
send or give a copy of the Prospectus, as the same may be amended or
supplemented, to that person within the time required by the Act, and the untrue
statement or alleged untrue statement of a material fact or omission or alleged
omission to state a material fact in such Preliminary Prospectus was corrected
in the Prospectus and the Prospectus was made available to the Underwriters
prior to the sale of the Notes. For purposes of the last proviso to the
immediately preceding sentence, the term "Prospectus" shall not be deemed to
include the documents incorporated by reference therein, and no Underwriter
shall be obligated to send or give any supplement or amendment to any document
incorporated by reference in the Preliminary Prospectus or Prospectus to any
person other than a person to whom such Underwriter had delivered such
incorporated document or documents in response to a written request therefor.
23
<PAGE>
(b) Each Underwriter, severally and not jointly, shall
indemnify and hold harmless the Company, its officers and employees, each of its
directors, and each person, if any, who controls the Company within the meaning
of the Act, from and against any loss claim, damage or liability, joint or
several, or any action in respect thereof, to which the Company may become
subject, under the Act or otherwise, insofar as such loss, claim, damage,
liability or action arises out of, or is based upon, (i) any untrue statement or
alleged untrue statement of a material fact contained (A) in the Registration
Statement or the Prospectus or in any amendment or supplement thereto, or any
related preliminary prospectus or preliminary prospectus supplement or (ii) the
omission or alleged omission to state in the Registration Statement or the
Prospectus, or in any amendment or supplement thereto, or in any related
preliminary prospectus or preliminary prospectus supplement, any material fact
required to be stated therein or necessary to make the statements therein (with
respect to any prospectus or prospectus supplement, in the light of the
circumstances under which they were made) not misleading, but in each case only
to the extent that the untrue statement or alleged untrue statement or omission
or alleged omission was made in reliance upon and in conformity with written
information furnished to the Company through the Representatives by or on behalf
of such Underwriter specifically for inclusion therein, and shall reimburse the
Company and any such director, officer or controlling person for any legal or
other expenses reasonably incurred by the Company in connection with
investigating or defending or preparing to defend against any such loss, claim,
damage, liability or action as such expenses are incurred. The foregoing
indemnity agreement is in addition to any liability which any Underwriter may
otherwise have to the Company or any such director, officer, employee or
controlling person.
(c) Promptly after receipt by an indemnified party under this
Section 8 of notice of any claim or the commencement of any action, the
indemnified party shall, if a claim in respect thereof is to be made against the
indemnifying party under this Section 8, notify the indemnifying party in
writing of the claim or the commencement of that action; provided, however, that
the failure to notify the indemnifying party shall not relieve it from any
liability which it may have under this Section 8 except to the extent it has
been materially prejudiced by such failure and, provided further, that the
failure to notify the indemnifying party shall not relieve it from any liability
which it may have to an indemnified party otherwise than under this Section 8.
If any such claim or action shall be brought against an indemnified party, and
it shall notify the indemnifying party thereof, the indemnifying party shall be
entitled to participate therein and, to the extent that it wishes, jointly with
any other similarly notified indemnifying party, to assume the defense thereof
with counsel reasonably satisfactory to the indemnified party. After notice from
the indemnifying party to the indemnified party of its election to assume the
defense of such claim or action, the indemnifying party shall not be liable to
the indemnified party under this Section 8 for any legal or other expenses
subsequently incurred by the indemnified party in connection with the defense
thereof other than reasonable costs of investigation; provided, however, that
the Representatives shall have the right to employ counsel to represent jointly
the Representatives and those other Underwriters and their respective officers,
employees and controlling persons who may be subject to liability arising out of
any claim in respect of which indemnity may be sought by the Underwriters
against the Company under this Section 8 if the employment of such counsel shall
have been authorized in writing by
24
<PAGE>
the Company in connection with the defense of such action or, if in the written
opinion of counsel to either the Company or the Representatives, representation
of both parties by the same counsel would be inappropriate due to actual or
likely conflicts of interest between the Representatives and those Underwriters,
officers, employees, directors and controlling persons and in that event the
fees and expenses of such separate counsel shall be paid by the Company. No
indemnifying party shall (i) without the prior written consent of the
indemnified parties (which consent shall not be unreasonably withheld), settle
or compromise or consent to the entry of any judgment with respect to any
pending or threatened claim, action, suit or proceeding in respect of which
indemnification or contribution may be sought hereunder (whether or not the
indemnified parties are actual or potential parties to such claim or action)
unless such settlement, compromise or consent includes an unconditional release
of each indemnified party from all liability arising out of such claim, action,
suit or proceeding, or (ii) be liable for any settlement of any such action
effected without its written consent (which consent shall not be unreasonably
withheld), but if settled with the consent of the indemnifying party or if there
be a final judgment of the plaintiff in any such action, the indemnifying party
agrees to indemnify and hold harmless any indemnified party from and against any
loss or liability by reason of such settlement or judgment.
(d) If the indemnification provided for in this Section 8
shall for any reason be unavailable to or insufficient to hold harmless an
indemnified party under Section 8(a) or 8(b) in respect of any loss, claim,
damage or liability, or any action in respect thereof, referred to therein, then
each indemnifying party shall, in lieu of indemnifying such indemnified party,
contribute to the amount paid or payable by such indemnified party as a result
of such loss, claim, damage or liability, or action in respect thereof, (i) in
such proportion as shall be appropriate to reflect the relative benefits
received by the Company on the one hand and the Underwriters on the other from
the offering of the Notes or (ii) if the allocation provided by clause (i) above
is not permitted by applicable law, in such proportion as is appropriate to
reflect not only the relative benefits referred to in clause (i) above but also
the relative fault of the Company on the one hand and the Underwriters on the
other with respect to the statements or omissions which resulted in such loss,
claim, damage or liability, or action in respect thereof, as well as any other
relevant equitable considerations. The relative benefits received by the Company
on the one hand and the Underwriters on the other with respect to such offering
shall be deemed to be in the same proportion as the total net proceeds from the
offering of the Notes purchased under this Agreement (before deducting expenses)
received by the Company, bear to the total underwriting discounts and
commissions received by the Underwriters with respect to the Notes purchased
under this Agreement. The relative fault shall be determined by reference to
whether the untrue or alleged untrue statement of a material fact or omission or
alleged omission to state a material fact relates to information supplied by the
Company or the Underwriters, the intent of the parties and their relative
knowledge, access to information and opportunity to correct or prevent such
statement or omission. The Company and the Underwriters agree that it would not
be just and equitable if contribution pursuant to this Section were to be
determined by pro rata allocation (even if the Underwriters were treated as one
entity for such purpose) or by any other method of allocation which does not
take into account the equitable considerations referred to herein. The amount
paid or payable by an indemnified party
25
<PAGE>
as a result of the loss, claim, damage or liability, or action in respect
thereof, referred to above in this Section shall be deemed to include, for
purposes of this Section 8(d), any legal or other expenses reasonably incurred
by such indemnified party in connection with investigating or defending any such
action or claim. Notwithstanding the provisions of this Section 8(d), no
Underwriter shall be required to contribute any amount in excess of the amount
by which the total price at which the amount of Notes underwritten by it and
distributed to the public was offered to the public exceeds the amount of any
damages which such Underwriter has otherwise paid or become liable to pay by
reason of any untrue or alleged untrue statement or omission or alleged
omission. No person guilty of fraudulent misrepresentation (within the meaning
of Section 11(f) of the Act) shall be entitled to contribution from any person
who was not guilty of such fraudulent misrepresentation. The Underwriters'
obligations to contribute as provided in this Section 11(d) are several in
proportion to their respective underwriting obligations and not joint.
(e) The Underwriters severally confirm and the Company
acknowledges that the statements with respect to the public offering of the
Notes by the Underwriters set forth on the cover page concerning the terms of
the offering by the Underwriters and the information relating to over-allotments
and stabilizing in paragraphs 7, 8, 9 and 10 in the section "Underwriting" in
the Prospectus constitute the only information concerning such Underwriters
furnished in writing to the Company by or on behalf of the Underwriters
specifically for inclusion in the Registration Statement and the Prospectus.
9. Defaulting Underwriters.
If, on the Delivery Date, any Underwriter defaults in the
performance of its obligations under this Agreement, the remaining
non-defaulting Underwriters shall be obligated to purchase the Notes which the
defaulting Underwriter agreed but failed to purchase on the Delivery Date in the
respective proportions which the principal amount of the Notes set opposite the
name of each remaining non-defaulting Underwriter in Schedule 1 hereto bears to
the aggregate principal amount of the Notes set opposite the names of all the
remaining non-defaulting Underwriters in Schedule 1 hereto; provided, however,
that the remaining non-defaulting Underwriters shall not be obligated to
purchase any of the Notes on the Delivery Date if the aggregate principal amount
of the Notes which the defaulting Underwriter or Underwriters agreed but failed
to purchase on such date exceeds 10% of the aggregate principal amount of the
Notes to be purchased on the Delivery Date, and any remaining non-defaulting
Underwriter shall not be obligated to purchase more than 110% of the aggregate
principal amount of the Notes which it agreed to purchase on the Delivery Date
pursuant to the terms of Section 3. If the foregoing maximums are exceeded, the
remaining non-defaulting Underwriters, or those other underwriters satisfactory
to the Representatives who so agree, shall have the right, but shall not be
obligated, to purchase, in such proportion as may be agreed upon among them, the
aggregate principal amount of the Notes to be purchased on the Delivery Date. If
the remaining Underwriters or other underwriters satisfactory to the
Representatives do not elect to purchase the principal amount of Notes which the
defaulting Underwriter or Underwriters agreed but
26
<PAGE>
failed to purchase within 36 hours after such default, this Agreement shall
terminate without liability on the part of any non-defaulting Underwriter or the
Company, except that the Company will continue to be liable for the payment of
expenses to the extent set forth in Sections 6 and 11. As used in this
Agreement, the term "Underwriter" includes, for all purposes of this Agreement
unless the context requires otherwise, any party not listed in Schedule 1 hereto
who, pursuant to this Section 9, purchases Notes which a defaulting Underwriter
agreed but failed to purchase.
Nothing contained herein shall relieve a defaulting
Underwriter of any liability it may have to the Company for damages caused by
its default. If other underwriters are obligated or agree to purchase the Notes
of a defaulting or withdrawing Underwriter, either the Representative or the
Company may postpone the Delivery Date for up to seven full business days in
order to effect any changes that in the opinion of counsel for the Company or
counsel for the Underwriters may be necessary in the Registration Statement, the
Prospectus or in any other document or arrangement.
10. Termination. The obligations of the Underwriters hereunder
may be terminated by the Representatives by notice given to and received by the
Company prior to delivery of and payment for the Notes if, prior to that time,
any of the events described in Sections 7(c) or 7(j), shall have occurred or if
the Underwriters shall decline to purchase the Notes for any reason permitted
under this Agreement.
11. Reimbursement of Underwriters' Expenses. If the Company
shall fail to tender the Notes for delivery to the Underwriters by reason of any
failure, refusal or inability on the part of the Company to perform any material
agreement on its part to be performed, or because any other material condition
of the Underwriters' obligations hereunder required to be fulfilled by the
Company is not fulfilled, the Company will reimburse the Underwriters for all
reasonable out-of-pocket expenses (including fees and disbursements of counsel)
reasonably incurred by the Underwriters in connection with this Agreement and
the proposed purchase of the Notes in excess of $250,000, and upon demand the
Company shall pay the full amount thereof to the Representatives; provided,
however, that in no event shall such amount exceed $100,000. If this Agreement
is terminated pursuant to Section 9 by reason of the default of one or more
Underwriters, the Company shall not be obligated to reimburse any defaulting
Underwriter on account of those expenses.
12. Notices, etc. All statements, requests, notices and
agreements hereunder shall be in writing, and:
(a) if to the Underwriters, shall be delivered or
sent by mail, telex or facsimile transmission to Lehman
Brothers Inc., Three World Financial Center, New York, New
York 10285, Attention: Syndicate Department (Fax: 212-526-
6588), with a copy, in the case of any notice pursuant to
Section 8(c), to the Director of Litigation, Office of the
General Counsel, Lehman Brothers Inc., 3 World Financial
Center, 10th Floor, New York, NY 10285;
27
<PAGE>
(b) if to the Company, shall be delivered or sent by
mail, telex or facsimile transmission to the address of the
Company set forth in the Registration Statement, Attention:
General Counsel (Fax: (402) 231-1658);
provided, however, that any notice to an Underwriter pursuant to
Section 8(c) shall be delivered or sent by mail, telex or facsimile transmission
to such Underwriter at its address set forth in its acceptance telex to the
Representatives, which address will be supplied to any other party hereto by the
Representatives upon request. Any such statements, requests, notices or
agreements shall take effect at the time of receipt thereof. The Company shall
be entitled to act and rely upon any request, consent, notice or agreement given
or made on behalf of the Underwriters by Lehman on behalf of the
Representatives.
13. Persons Entitled to Benefit of Agreement. This Agreement
shall inure to the benefit of and be binding upon the Underwriters, the Company
and their respective successors. This Agreement and the terms and provisions
hereof are for the sole benefit of only those persons, except that (A) the
representations, warranties, indemnities and agreements of the Company contained
in this Agreement shall also be deemed to be for the benefit of the person or
persons, if any, who control any Underwriter within the meaning of Section 15 of
the Act and (B) the indemnity agreement of the Underwriters contained in Section
8(b) of this Agreement shall be deemed to be for the benefit of directors of the
Company, officers of the Company who have signed the Registration Statement and
any person controlling the Company within the meaning of Section 15 of the Act.
Nothing in this Agreement is intended or shall be construed to give any person,
other than the persons referred to in this Section 13, any legal or equitable
right, remedy or claim under or in respect of this Agreement or any provision
contained herein.
14. Survival. The respective indemnities, representations,
warranties and agreements of the Company and the Underwriters contained in this
Agreement or made by or on behalf on them, respectively, pursuant to this
Agreement, shall survive the delivery of and payment for the Notes and shall
remain in full force and effect, regardless of any investigation made by or on
behalf of any of them or any person controlling any of them.
15. Definition of the Term "Business Day". For purposes of
this Agreement, "business day" means any day on which the New York Stock
Exchange, Inc. is open for trading.
16. Governing Law. This Agreement shall be governed by and
construed in accordance with the laws of New York.
Each party irrevocably agrees that any legal suit, action or
proceeding arising out of or based upon this Agreement or the transactions
contemplated hereby ("Related Proceedings") may be instituted in the federal
courts of the United States of America located in the City of New York or the
courts of the State of New York in each case located in the Borough of Manhattan
in the City of New York (collectively, the "Specified Courts"), and irrevocably
submits to the exclusive jurisdiction (except for proceedings instituted in
regard to the enforcement of a judgment of any such court (a "Related
Judgment"), as to which such
28
<PAGE>
jurisdiction is non-exclusive) of such courts in any such suit, action or
proceeding. The parties further agree that service of any process, summons,
notice or document by mail to such party's address set forth above shall be
effective service of process for any lawsuit, action or other proceeding brought
in any such court. The parties hereby irrevocably and unconditionally waive any
objection to the laying of venue of any lawsuit, action or other proceeding in
the Specified Courts, and hereby further irrevocably and unconditionally waive
and agree not to plead or claim in any such court that any such lawsuit, action
or other proceeding brought in any such court has been brought in an
inconvenient forum.
17. Counterparts. This Agreement may be executed in one or
more counterparts and, if executed in more than one counterpart, the executed
counterparts shall each be deemed to be an original but all such counterparts
shall together constitute one and the same instrument.
18. Headings. The headings herein are inserted for convenience
of reference only and are not intended to be part of, or to affect the meaning
or interpretation of, this Agreement.
29
<PAGE>
If the foregoing correctly sets forth the agreement between
the Company and the Underwriters, please indicate your acceptance in the space
provided for that purpose below.
Very truly yours,
CALENERGY COMPANY, INC.
By /s/ Steven A. McArthur
_________________________
Name: Steven A. McArthur
Title: Senior Vice President
Accepted:
LEHMAN BROTHERS INC.
CREDIT SUISSE FIRST BOSTON CORPORATION
MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED
For themselves and as Representatives
of the several Underwriters named
in Schedule A hereto
By LEHMAN BROTHERS INC.
By /s/ Ross MacIntyre
_______________________
Authorized Representative
30
<PAGE>
SCHEDULE A
Principal
Amount of
Underwriters Notes
- ------------ ---------
Lehman Brothers Inc........................................... $119,000,000
Credit Suisse First Boston Corporation $178,500,000
Merrill Lynch, Pierce, Fenner
& Smith Incorporated..................................... $ 52,500,000
-----------
Total......................................................... $350,000,000
<PAGE>
SCHEDULE B
Subsidiaries
Coso Funding Corp.+
Incorporated in Delaware
Coso Hotsprings Intermountain Power, Inc. +
Incorporated in Delaware
China Lake Operating Company +
Incorporated in Delaware
Coso Technology Corporation +
Incorporated in Delaware
China Lake Geothermal Management Company +
Incorporated in Delaware
China Lake Plant Services, Inc. +
Incorporated in California
Coso Hotsprings Overland Power, Inc.+
Incorporated in Delaware
CE Geothermal, Inc.
Incorporated in Delaware
Western States Geothermal Company
Incorporated in Delaware
Intermountain Geothermal Company
Incorporated in Delaware
CalEnergy Development Corporation
Incorporated in Delaware
California Energy Yuma Corporation
Incorporated in Utah
California Energy General Corporation
Incorporated in Delaware
- --------------------------
+ Indicates stock or partnership interests that are and at the Closing Date will
continue to be pledged, subject to a purchase agreement, or otherwise encumbered
and subject to foreclosure or other exercise of remedies.
<PAGE>
Rose Valley Properties, Inc.
Incorporated in Delaware
CalEnergy Minerals, Inc.
Incorporated in Delaware
CBE Engineering Co.
Incorporated in California
CE Exploration Company
Incorporated in Delaware
CE Newberry, Inc.
Incorporated in Delaware
CE International Investments Inc.
Incorporated in Delaware
CE Philippines Ltd.
Incorporated in Bermuda
CE Mahanagdong Ltd.
Incorporated in Bermuda
Ormoc Cebu Ltd.
Incorporated in Bermuda
CE Cebu Geothermal Power Company, Inc.+
Incorporated in the Philippines
CE Indonesia Ltd.+
Incorporated in Bermuda
CE Casecnan Ltd.
Incorporated in Bermuda
- --------------------------
+ Indicates stock or partnership interests that are and at the Closing Date will
continue to be pledged, subject to a purchase agreement, or otherwise encumbered
and subject to foreclosure or other exercise of remedies.
<PAGE>
CE Singapore Ltd.
Incorporated in Bermuda
CalEnergy International Ltd.
Incorporated in Bermuda
CE Bali, Ltd.
Incorporated in Bermuda
CE Casecnan Water and Energy Company, Inc.+
Incorporated in the Philippines
Capital Stock: Owned 35% by CE Casecnan Ltd.,
35% by Kiewit Energy International (Bermuda) Ltd.,
15% by La Prairie Group Contractors (International) Ltd and 15% by San
Lorenzo Ruiz Builders & Developers Group, Inc.
Magma Power Company+
Incorporated in Nevada
CalEnergy Operating Company+
Incorporated in Delaware
Salton Sea Power Company+
Incorporated in Nevada
Vulcan Power Company+
Incorporated in Nevada
Imperial Magma+
Incorporated in Nevada
Magma Land Company I+
Incorporated in Nevada
Desert Valley Company+
Incorporated in California
Fish Lake Power Company+
- --------------------------
+ Indicates stock or partnership interests that are and at the Closing Date will
continue to be pledged, subject to a purchase agreement, or otherwise encumbered
and subject to foreclosure or other exercise of remedies.
<PAGE>
Incorporated in Delaware
Magma Netherlands B.V.+
Formed in the Netherlands
Tongonan Power Investment, Inc.+
Incorporated in the Philippines
Salton Sea Funding Corporation +
Incorporated in Delaware
Salton Sea Royalty Company+
Incorporated in Delaware
CE Asia Ltd.+
Incorporated In Bermuda
American Pacific Finance Company
Incorporated in Delaware
CalEnergy International Services, Inc.
Incorporated in Delaware
CalEnergy Imperial Valley Company, Inc.
Incorporated in Delaware
California Energy Retail Company, Inc.
Incorporated in Delaware
CE Humboldt, Inc.
Incorporated in Delaware
CE Ijen Ltd.
Incorporated in Bermuda
Magma Generating Company I
Incorporated in Nevada
- --------------------------
+ Indicates stock or partnership interests that are and at the Closing Date will
continue to be pledged, subject to a purchase agreement, or otherwise encumbered
and subject to foreclosure or other exercise of remedies.
<PAGE>
Magma Generating Company II
Incorporated in Nevada
Peak Power Corporation
Incorporated in California
CE Luzon Geothermal Power Company, Inc.+ Incorporated in the Philippines
Capital Stock: Owned 50% by CE Mahanagdong Ltd.; 50% by Kiewit Energy
International (Bermuda) Ltd.; an industrial company has the right to
acquire 10% of the equity - 5% from CE Mahanagdong Ltd. and 5% from Kiewit
Energy International (Bermuda) Ltd.
Himpurna California Energy Ltd.+
Incorporated in Bermuda
Capital Stock: Owned 47% by CE Indonesia Ltd.; 47% by Kiewit Energy
International (Bermuda) Ltd., and 6% by P.T. Himpurna Enersindo Abadi;
("Himpurna"). Himpurna has assigned the right to certain preferred
dividends representing a 4% interest in Himpurna California Energy Ltd.,
under the Joint Operating Contract, Pertamina has certain rights to acquire
up to a 25% interest in the Joint Operating Contract, but not under the
Energy Sales Contract
Patuha Power, Ltd.+
Incorporated in Bermuda
Capital Stock: Owned 44% by CE Singapore Ltd., and 44% by Kiewit Energy
International (Bermuda) Ltd.; and 12% by Mahaka Energy; under the Joint
Operating Contract, Pertamina has certain rights to acquire up to a 25%
interest in the Joint Operating Contract, but not under the Energy Sales
Agreement
Bali Energy Ltd.+
Incorporated in Bermuda
Capital Stock: Owned 50% by CE Bali Ltd. and
- --------------------------
+ Indicates stock or partnership interests that are and at the Closing Date will
continue to be pledged, subject to a purchase agreement, or otherwise encumbered
and subject to foreclosure or other exercise of remedies.
<PAGE>
50% by Kiewit Energy International (Bermuda) Ltd.
P.T. Pandanwangi Sekartji has the right to acquire
up to 40% of the equity in Bali Energy Ltd.
Norming Investments BV+
Incorporated in the Netherlands
BN Geothermal Inc.+
Incorporated in Delaware
Conejo Energy Company+
Incorporated in California
Niguel Energy Company+
Incorporated in California
San Felipe Energy Company+
Incorporated in California
CE/FS Holding Company, Inc.
Incorporated in Delaware
Falcon Seaboard Power Corporation
Incorporated in Texas
Falcon Seaboard Resources, Inc.
Incorporated in Texas
Falcon Seaboard Energy Corporation
Incorporated in Texas
Falcon Seaboard Gas Company
Incorporated in Texas
Falcon Seaboard Oil Company
Incorporated in Texas
Falcon Seaboard Pipeline Corporation
- --------------------------
+ Indicates stock or partnership interests that are and at the Closing Date will
continue to be pledged, subject to a purchase agreement, or otherwise encumbered
and subject to foreclosure or other exercise of remedies.
<PAGE>
Incorporated in Texas
Big Spring Pipeline Company
Incorporated in Texas
Falcon Power Operating Company
Incorporated in Texas
Power Resources, Inc.+
Incorporated in Texas
North Country Gas Pipeline Corporation + Incorporated in New York Owned by
Saranac Power Partners, L.P.
Saranac Energy Company, Inc.+
Incorporated in Delaware
SECI Holdings, Inc.+
Incorporated in Delaware
Northern Consolidated Power, Inc. +
Incorporated in Delaware
NorCon Holdings, Inc.
Incorporated in Delaware
CE Electric, Inc.
Incorporated in Delaware
CE Power, Inc.
Incorporated in Delaware
CE Electric UK plc +
Incorporated in England
Capital Stock: Owned by CE Electric UK Holdings
American Pacific Finance Company II +
- --------------------------
+ Indicates stock or partnership interests that are and at the Closing Date will
continue to be pledged, subject to a purchase agreement, or otherwise encumbered
and subject to foreclosure or other exercise of remedies.
<PAGE>
Incorporated in Delaware
Capital Stock: Owned 50% by CalEnergy Company, Inc. and
50% by Kiewit Energy Company
CE Indonesia Geothermal, Inc.
Incorporated in Delaware
Slupo I B.V.+
Incorporated in Netherlands
Owned 50% by CE Asia Ltd. and 50% by Kiewit
Energy International (Bermuda) Limited
CE Indonesia Funding Corp. +
Incorporated in Delaware
Owned 50% by Himpurna California Energy Ltd.
and 50% by Patuha Power, Ltd.
Gilbert/CBE Indonesia L.L.C.
Organized in Nebraska
Owned 60% Gilbert Industrial Corporation and 40% CBE Engineering Co.
Northern Electric plc+ Incorporated in England and Wales Owned by CE
Electric UK plc.
Northern Electric Generation (NPL) Limited + Incorporated in England and
Wales Owned by Northern Electric plc.
Northern Electric Supply Limited + Incorporated in England and Wales Owned
by Northern Electric plc.
Northern Electric Share Scheme Trustee Limited +
Incorporated in England and Wales
Owned by Northern Electric plc.
Northern Transport Finance Limited +
- --------------------------
+ Indicates stock or partnership interests that are and at the Closing Date will
continue to be pledged, subject to a purchase agreement, or otherwise encumbered
and subject to foreclosure or other exercise of remedies.
<PAGE>
Incorporated in England and Wales
Owned by Northern Electric plc.
Northern Electric Retail Limited + Incorporated in England and Wales Owned
by Northern Electric plc.
Northern Electric Properties Limited + Incorporated in England and Wales
Owned by Northern Electric plc.
Northern Electric Distribution Limited
Incorporated in England and Wales
Owned by Northern Electric plc.
Gas UK Limited+ Incorporated in England and Wales Owned by Northern
Electric plc.
Northern Electric (Overseas Holdings) Limited +
Incorporated in England and Wales
Owned by Northern Electric plc.
Northern Electric Generation (CPS) Limited + Incorporated in England and
Wales Owned indirectly by Northern Electric plc.
Kings Road Developments Limited+
Incorporated in England and Wales
Owned 48% by Northern Electric plc., 26% by Cussins Homes and 26% by
Bellway Homes.
Ryhope Road Developments Ltd. +
Incorporated in England and Wales
Owned 49% by Northern Electric Properties Ltd. and
51% by Bowey Group Limited
Stamfordham Road Developments Ltd.+
- --------------------------
+ Indicates stock or partnership interests that are and at the Closing Date will
continue to be pledged, subject to a purchase agreement, or otherwise encumbered
and subject to foreclosure or other exercise of remedies.
<PAGE>
Incorporated in England and Wales
Owned 49% by Northern Electric Properties Ltd. and
51% by Cussins Commercial Development Ltd.
Northern Electric Generation (TPL) Limited + Incorporated in England and
Wales Owned indirectly by Northern Electric plc.
Northern Electric Generation Limited + Incorporated in England and Wales
Owned by Northern Electric plc.
Northern Electric Insurance Services Limited + Incorporated in England and
Wales Owned indirectly by Northern Electric plc.
Northern Metering Services Limited + Incorporated in Isle of Man Owned
indirectly by Northern Electric plc.
CalEnergy Gas (UK) Limited + Incorporated in England and Wales Owned
indirectly by Northern Electric plc.
Northern Electric Generation (Peaking) Limited + Incorporated in England
and Wales Owned indirectly by Northern Electric plc.
Northern Electric Training Limited + Incorporated in England and Wales
Owned by Northern Electric plc.
Northern Electric Transport Limited + Incorporated in England and Wales
Owned by Northern Electric plc.
Northern Information Systems Limited +
Incorporated in England and Wales
- --------------------------
+ Indicates stock or partnership interests that are and at the Closing Date will
continue to be pledged, subject to a purchase agreement, or otherwise encumbered
and subject to foreclosure or other exercise of remedies.
<PAGE>
Owned by Northern Electric plc.
Northern Utility Services Limited + Incorporated in England and Wales Owned
by Northern Electric plc.
Viking Power Ltd.+
Incorporated in England and Wales
Capital Stock: Owned 50% by Northern Electric Generation Limited
and 50% by Rolls-Royce Power Ventures Limted
Northern Electric Finance plc. +
Incorporated in England and Wales
Owned indirectly by Northern Electric plc.
Northgas Limited + Incorporated in England and Wales Owned by Northern
Electric plc.
Northern Tracing & Collection Services Limited +
Incorporated in England and Wales
Owned by Northern Electric plc.
Northern Electric Telecom Limited + Incorporated in England and Wales Owned
by Northern Electric plc.
CE Electric UK Holdings +
Incorporated in England
Capital Stock: Owned 35% by CE Power, Inc., 35% by CE Electric Inc. and
30% by Kiewit Energy UK, Inc.
CalEnergy Gas (Polska) *Polish limited liability company Owned indirectly
by Northern Electric plc.
CalEnergy Capital Trust I
Formed under the laws of Delaware
- --------------------------
+ Indicates stock or partnership interests that are and at the Closing Date will
continue to be pledged, subject to a purchase agreement, or otherwise encumbered
and subject to foreclosure or other exercise of remedies.
<PAGE>
CalEnergy Capital Trust II
Formed under the laws of Delaware
CalEnergy Capital Trust III
Formed under the laws of Delaware
CalEnergy Capital Trust IV
Formed under the laws of Delaware
- --------------------------
+ Indicates stock or partnership interests that are and at the Closing Date will
continue to be pledged, subject to a purchase agreement, or otherwise encumbered
and subject to foreclosure or other exercise of remedies.
<PAGE>
SCHEDULE C
Joint Ventures
Coso Energy Developers (CED)+
Formed in California
General Partnership: 48% CHIP; 52% Caithness Coso
Holdings, L.P.
Coso Finance Partners+
Formed in California
General Partnership: 46.3% owned by CLOC; 53.7%
owned by ESCA I, L.P.
Coso Power Developers (CPD)+
Formed in California
General Partnership: 50% owned by CTC; 50% by
Caithness Navy II
Coso Transmission Line Partners+
Formed in California
General Partnership: Owned 50% by CED; 50% by CPD
Vulcan/BN Geothermal Power Company+
Formed in Nevada
Partnership Interests: Vulcan Power Company 50%
General Partner; BN Geothermal, Inc. 50% General
Partner
Del Ranch, L.P.+
Formed in California
Partnership Interests: Magma Power Company 10%
Limited Partner; CalEnergy Operating Company 40% General Partner; Conejo
Energy Company 10% Limited Partner and 40% General Partner
- --------------------------
+ Indicates stock or partnership interests that are and at the Closing Date will
continue to be pledged, subject to a purchase agreement, or otherwise encumbered
and subject to foreclosure or other exercise of remedies.
<PAGE>
Elmore, L.P.+
Formed in California
Partnership Interests: Magma Power Company 10%
Limited Partner; CalEnergy Operating Company 40% General Partner; Niguel
Energy Company 10% Limited Partner
and 40% General Partner
Leathers, L.P.+
Formed in California
Partnership Interests: Magma Power Company 10%
Limited Partner; CalEnergy Operating Company 40% General Partner;
San Felipe Energy Company 10% Limited Partner and 40% General Partner
Salton Sea Brine Processing L.P.+
Limited Partnership Formed in California
Salton Sea Power Generation L.P.+
Limited Partnership Formed in California
Visayas Geothermal Power Company+
Partnership Formed in the Philippines
Yuma Cogeneration Associates+
Formed in Utah
Alto Peak Power Company
Formed in the Philippines
China Lake Joint Venture
Formed in California
Owned 50% by CalEnergy Company and 50% by Caithness Geothermal 1980 Ltd.
Coso Finance Partners II
Formed in California
Owned 50% by China Lake Geothermal Management Co., an affiliate of
Calenergy Company, Inc. and 50% by ESCA II, L.P.
- --------------------------
+ Indicates stock or partnership interests that are and at the Closing Date will
continue to be pledged, subject to a purchase agreement, or otherwise encumbered
and subject to foreclosure or other exercise of remedies.
<PAGE>
Coso Land Company
Formed in California
Owned 50% by CalEnergy Company and 50% by Caithness Geothermal 1980 Ltd.
Gilbert/CBE L.P.
Limited partnership formed in Nebraska
Partnership Interests: 20% CBE Engineering Co. and 80% Gilbert Industrial
Corporation
Saranac Power Partners, L.P.+
Limited partnership formed in Delaware
Partnership Interests: 80% Saranac Energy Company, Inc. and 20%
affiliates of Tomen Power Corporation
NorCon Power Partners, L.P.+
Limited partnership formed in Delaware
Partnership Interests: 80% Northern Consolidated Power, Inc. and 20%
affiliates of Tomen Power Corporation
- --------------------------
+ Indicates stock or partnership interests that are and at the Closing Date will
continue to be pledged, subject to a purchase agreement, or otherwise encumbered
and subject to foreclosure or other exercise of remedies.
EXECUTION COPY
===========================================
CALENERGY COMPANY, INC.
------------------------
Indenture
Dated as of October 15, 1997
--------------------------
Senior Debt Securities
IBJ Schroder Bank & Trust Company
Trustee
===========================================
<PAGE>
TABLE OF CONTENTS
Page
----
PARTIES.....................................................................1
RECITALS....................................................................1
ARTICLE ONE DEFINITIONS AND OTHER PROVISIONS OF GENERAL
APPLICATION............................................................1
SECTION 101. Definitions...............................................1
Acquired Debt......................................................2
Acquisition Debt...................................................2
Adjusted Consolidated Net Income...................................3
Affiliate..........................................................3
Asset Acquisition..................................................4
Asset Disposition..................................................4
Asset Sale.........................................................6
Attributable Value.................................................6
Authenticating Agent...............................................6
Average Life.......................................................6
Board of Directors.................................................6
Board Resolution...................................................6
Business Day.......................................................6
Capital Stock......................................................6
Capitalized Lease..................................................7
Cash Equivalent....................................................7
Certificated Security..............................................8
Change of Control..................................................8
Common Stock.......................................................9
Company............................................................9
Company Refinancing Debt...........................................9
Company Request....................................................9
Company Order......................................................9
Consolidated EBITDA...............................................10
Consolidated Fixed Charges........................................11
Consolidated Interest Expense.....................................11
Construction Financing............................................11
Corporate Trust Office............................................12
Currency Protection Agreement.....................................12
Debt..............................................................12
Default...........................................................13
Default Amount....................................................13
Depositary........................................................13
Disinterested Director............................................13
Eligible Joint Venture............................................13
Exchange Act......................................................14
Fixed Charge Ratio................................................14
Foreign Asset Disposition.........................................15
i
<PAGE>
GAAP..............................................................15
Global Security...................................................15
Guarantee.........................................................16
Holder............................................................16
holder of Securities..............................................16
Incur.............................................................16
Indenture.........................................................16
Interest Payment Date.............................................16
Interest Rate Protection Agreement................................16
Internal Revenue Code.............................................17
Investment........................................................17
Investment Grade..................................................17
Issue Date........................................................17
Joint Venture.....................................................17
Kiewit............................................................17
Lien..............................................................17
Moody's...........................................................17
Net Cash Proceeds.................................................17
Net Income........................................................18
Net Worth.........................................................18
Non-Recourse......................................................18
Offer to Purchase.................................................19
Officers' Certificate.............................................19
Opinion of Counsel................................................19
Outstanding.......................................................19
Paying Agent......................................................20
Permitted Facility................................................20
Permitted Facilities Debt.........................................21
Permitted Funding Company Loans...................................21
Permitted Investment..............................................21
Permitted Joint Venture...........................................23
Permitted Payments................................................23
Permitted Working Capital Facilities..............................25
Person............................................................25
Predecessor Security..............................................25
Preferred Stock...................................................25
Property..........................................................25
Purchase Date.....................................................25
Purchase Money Debt...............................................25
Rating Agencies...................................................25
Rating Category...................................................26
Rating Decline....................................................26
Redeemable Stock..................................................26
Redemption Date...................................................27
Redemption Price..................................................27
Reference Period..................................................27
Regular Record Date...............................................27
Responsible Officer...............................................27
Restricted Payment................................................27
Restricted Subsidiary.............................................28
ii
<PAGE>
S&P...............................................................28
Securities........................................................28
Securities Act....................................................28
Senior Debt.......................................................28
Significant Subsidiary............................................28
Special Record Date...............................................28
Stated Maturity...................................................28
Subsidiary........................................................29
Subsidiary Refinancing Debt.......................................29
Trade Payables....................................................29
Trustee...........................................................30
Trust Indenture Act...............................................30
Unrestricted Subsidiary...........................................30
U.S. Government Obligations.......................................30
Vice President....................................................31
Voting Stock......................................................31
SECTION 102. Compliance Certificates and Opinions.....................31
SECTION 103. Form of Documents Delivered to Trustee...................32
SECTION 104. Acts of Holders; Record Dates............................33
SECTION 105. Notices, Etc., to Trustee and Company....................35
SECTION 106. Notice to Holders; Waiver................................36
SECTION 107. Conflict with Trust Indenture Act........................36
SECTION 108. Effect of Headings and Table of Contents.................36
SECTION 109. Successors and Assigns...................................36
SECTION 110. Separability Clause......................................36
SECTION 111. Benefits of Indenture....................................37
SECTION 112. Governing Law............................................37
SECTION 113. Legal Holidays...........................................37
SECTION 114. No Recourse Against Others...............................38
SECTION 115. Duplicate Originals......................................38
ARTICLE TWO SECURITY FORM..................................................38
SECTION 201. Global and Certificated Securities.......................38
SECTION 202. Form of Trustee's Certificate of Authentication..........40
ARTICLE THREE THE SECURITIES...............................................41
SECTION 301. Amount Unlimited; Issuable in Series.....................41
SECTION 302. Denominations............................................44
SECTION 303. Execution and Authentication.............................44
SECTION 304. Registrar and Paying Agent...............................46
SECTION 305. Paying Agent To Hold Money in Trust......................46
SECTION 306. Holder Lists.............................................47
SECTION 307. Transfer and Exchange of Global Securities...............47
iii
<PAGE>
SECTION 308. Mutilated, Destroyed, Lost and Stolen Securities.........50
SECTION 309. Temporary Securities and Certificated Securities.........51
SECTION 310. Payment of Interest; Interest Rights Preserved...........52
SECTION 311. Persons Deemed Owners....................................53
SECTION 312. Cancellation.............................................53
SECTION 313. Computation of Interest..................................54
ARTICLE FOUR SATISFACTION AND DISCHARGE....................................54
SECTION 401. Satisfaction and Discharge of Indenture..................54
ARTICLE FIVE REMEDIES......................................................54
SECTION 501. Events of Default........................................54
SECTION 502. Acceleration of Maturity; Rescission and Annulment.......57
SECTION 503. Collection of Indebtedness and Suits for
Enforcement by Trustee.................................58
SECTION 504. Trustee May File Proofs of Claim.........................59
SECTION 505. Trustee May Enforce Claims Without Possession
of Securities..........................................60
SECTION 506. Application of Money Collected...........................60
SECTION 507. Limitation on Suits......................................61
SECTION 508. Unconditional Right of Holders to Receive Principal,
Premium and Interest...................................61
SECTION 509. Restoration of Rights and Remedies.......................61
SECTION 510. Rights and Remedies Cumulative...........................62
SECTION 511. Delay or Omission Not Waiver.............................62
SECTION 512. Control by Holders.......................................62
SECTION 513. Waiver of Past Defaults..................................62
SECTION 514. Undertaking for Costs....................................63
SECTION 515. Waiver of Stay or Extension Laws.........................63
ARTICLE SIX THE TRUSTEE...................................................63
SECTION 601. Certain Duties and Responsibilities......................63
SECTION 602. Notice of Defaults; Notice of Acceleration...............65
SECTION 603. Certain Rights of Trustee................................65
SECTION 604. Not Responsible for Recitals or Issuance of Securities...66
SECTION 605. May Hold Securities......................................66
SECTION 606. Money Held in Trust......................................67
SECTION 607. Compensation and Reimbursement...........................67
SECTION 608. Conflicting Interests....................................68
iv
<PAGE>
SECTION 609. Corporate Trustee Required; Eligibility..................68
SECTION 610. Resignation and Removal; Appointment of Successor........68
SECTION 611. Acceptance of Appointment by Successor...................70
SECTION 612. Merger, Conversion, Consolidation or Succession to
Business...............................................71
SECTION 613. Preferential Collection of Claims Against Company........71
SECTION 614. Appointment of Authenticating Agent......................72
ARTICLE SEVEN HOLDERS' LISTS AND REPORTS BY TRUSTEE AND COMPANY...........74
SECTION 701. Company to Furnish Trustee Names and Addresses of
Holders.................................................74
SECTION 702. Preservation of Information; Communications to Holders...74
SECTION 703. Reports by Trustee.......................................74
SECTION 704. Reports by Company.......................................75
ARTICLE EIGHT CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE........75
SECTION 801. Company May Consolidate, Etc. Only on Certain Terms......75
SECTION 802. Successor Substituted....................................77
ARTICLE NINE SUPPLEMENTAL INDENTURES......................................77
SECTION 901. Supplemental Indentures Without Consent of Holders.......77
SECTION 902. Supplemental Indentures with Consent of Holders..........78
SECTION 903. Execution of Supplemental Indentures.....................80
SECTION 904. Effect of Supplemental Indentures........................80
SECTION 905. Conformity with Trust Indenture Act......................80
SECTION 906. Reference in Securities to Supplemental Indentures.......80
ARTICLE TEN COVENANTS.....................................................81
SECTION 1001. Payment of Principal, Premium and Interest..............81
SECTION 1002. Maintenance of Office or Agency.........................81
SECTION 1003. Money for Security Payments to be Held in Trust.........82
SECTION 1004. Existence...............................................83
SECTION 1005. Maintenance of Properties...............................83
v
<PAGE>
SECTION 1006. Payment of Taxes and Other Claims.......................83
SECTION 1007. Maintenance of Insurance................................84
SECTION 1008. Limitation on Debt......................................84
SECTION 1009. Limitation on Subsidiary Debt...........................85
SECTION 1010. Limitation on Restricted Payments.......................86
SECTION 1011. Limitation on Transactions with Affiliates..............88
SECTION 1012. Limitation on Liens.....................................88
SECTION 1013. Purchase of Securities Upon a Change of Control.........90
SECTION 1014. Limitation on Dividends and Other Payment
Restrictions Affecting Subsidiaries...................91
SECTION 1015. Limitation on Dispositions..............................93
SECTION 1016. Limitation on Certain Sale-Leasebacks...................97
SECTION 1017. Provision of Financial Information......................97
SECTION 1018. Limitation on Sale of Subsidiary Preferred Stock........97
SECTION 1019. Statement by Officers as to Default; Compliance
Certificates..........................................98
SECTION 1020. Waiver of Certain Covenants.............................99
SECTION 1021. Limitation on Business..................................99
ARTICLE ELEVEN REDEMPTION OF SECURITIES..................................100
SECTION 1101. Right of Redemption....................................100
SECTION 1102. Applicability of Article...............................100
SECTION 1103. Election to Redeem; Notice to Trustee..................100
SECTION 1104. Selection by Trustee of Securities to Be Redeemed......100
SECTION 1105. Notice of Redemption...................................101
SECTION 1106. Deposit of Redemption Price............................101
SECTION 1107. Securities Payable on Redemption Date..................102
SECTION 1108. Securities Redeemed in Part............................102
ARTICLE TWELVE DEFEASANCE AND COVENANT DEFEASANCE........................102
SECTION 1201. Company's Option to Effect Defeasance or Covenant
Defeasance...........................................102
SECTION 1202. Defeasance and Discharge...............................103
SECTION 1203. Covenant Defeasance....................................103
SECTION 1204. Conditions to Defeasance or Covenant Defeasance........104
SECTION 1205. Deposited Money and U.S. Government Obligations
to Be Held in Trust; Miscellaneous Provisions........106
SECTION 1206. Reinstatement..........................................107
vi
<PAGE>
EXHIBIT A Form of Senior Debt Security...................................A-1
EXHIBIT B Promissory Note................................................B-1
vii
<PAGE>
CROSS-REFERENCE TABLE
Trust Indenture Indenture
Act Section Section
- --------------- ---------
ss. 310 (a)(1).........................................................609
(a)(2).........................................................609
(a)(3)..............................................Not Applicable
(a)(4)..............................................Not Applicable
(b).......................................................608, 610
ss. 311 (a)............................................................613
(b)............................................................613
(c).................................................Not Applicable
ss. 312 (a).......................................................701, 702
(b)............................................................702
(c)............................................................702
ss. 313 (a)............................................................703
(b)............................................................703
(c)............................................................703
(d)............................................................703
ss. 314 (a)............................................................704
(a)(4)....................................................101, 704
(b).................................................Not Applicable
(c)(1).........................................................102
(c)(2).........................................................102
(c)(3)..............................................Not Applicable
(d).................................................Not Applicable
(e)............................................................102
(f).................................................Not Applicable
ss. 315 (a)............................................................601
(b)............................................................602
(c)............................................................601
(d)............................................................601
(e)............................................................514
ss. 316 (a)............................................l01 ("Outstanding")
(a)(1)(A).................................................502, 512
(a)(1)(B)......................................................513
(a)(2)..............................................Not Applicable
(b)............................................................508
(c)............................................................104
ss. 317 (a)(1).........................................................503
(a)(2).........................................................504
(b)...........................................................1003
ss. 318 (a)............................................................107
(b).................................................Not Applicable
(c)............................................................107
- -------------------
Note: This Cross-Reference Table shall not, for any purpose, be deemed to be
a part of the Indenture.
i
<PAGE>
INDENTURE, dated as of October 15, 1997, between CalEnergy Company,
Inc., a corporation duly organized and existing under the laws of the State of
Delaware (herein called the "Company"), having its principal office at 302 South
Thirty-Sixth Street, Suite 400, Omaha, Nebraska 68131, and IBJ Schroder Bank &
Trust Company, a New York banking corporation, as Trustee (herein called the
"Trustee").
RECITALS OF THE COMPANY
The Company deems it necessary to issue from time to time for its
lawful purposes senior debt securities (hereinafter called the "Securities")
evidencing its unsecured and unsubordinated indebtedness, and has duly
authorized the execution and delivery of this Indenture to provide for the
issuance from time to time of the Securities, unlimited as to principal amount,
to bear interest at the rate or pursuant to the formula, to mature at such times
and to have such other provisions as shall be fixed as hereinafter provided.
This Indenture is subject to the provisions of the Trust Indenture Act
of 1939, as amended, that are deemed to be incorporated into this Indenture and
shall, to the extent applicable, be governed by such provisions.
All things necessary to make this Indenture a valid agreement of the
Company, in accordance with its terms, 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 covenanted and 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 have the meanings assigned to
them in this Article and include the plural as well as the singular;
<PAGE>
(2) all other terms used herein that are defined in the Trust Indenture
Act, either directly or by reference therein, have the meanings assigned to
them therein;
(3) all accounting terms not otherwise defined herein have the meanings
assigned to them in accordance with GAAP (whether or not such is indicated
herein);
(4) unless the context otherwise requires, any reference to an
"Article" or a "Section" refers to an Article or Section, as the case may
be, of this Indenture;
(5) 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;
(6) "or" is not exclusive;
(7) provisions apply to successive events and transactions; and
(8) each reference herein to a rule or form of the Commission shall
mean such rule or form and any rule or form successor thereto, in each case
as amended from time to time.
Whenever this Indenture requires that a particular ratio or amount be
calculated with respect to a specified period after giving effect to certain
transactions or events on a pro forma basis, such calculation shall be made as
if the transactions or events occurred on the first day of such period, unless
otherwise specified.
"Acquired Debt" means Debt Incurred by a Person prior to the time (i)
such Person becomes a Restricted Subsidiary of the Company or an Eligible Joint
Venture, (ii) such Person merges with or into a Restricted Subsidiary of the
Company or an Eligible Joint Venture, or (iii) a Restricted Subsidiary of the
Company or an Eligible Joint Venture merges with or into such Person (in a
transaction in which such Person becomes a Restricted Subsidiary of the Company
or an Eligible Joint Venture), provided that, after giving effect to such
transaction, any Non-Recourse Debt of such Person could have been Incurred
pursuant to clause (iii) of Section 1009(b), any Permitted Facilities Debt of
such Person could have been Incurred pursuant to clause (viii) of Section
1009(b) and would not otherwise violate any other provision of this Indenture,
and all the other Debt of such Person could have been Incurred by the Company at
the time of such merger or acquisition pursuant to the provision
2
<PAGE>
described in Section 1008(a), and provided further that such Debt was not
Incurred in connection with, or in contemplation of, such merger or such Person
becoming a Restricted Subsidiary of the Company or an Eligible Joint Venture.
"Acquisition Debt" means Debt of any Person existing at the time such
Person is merged into the Company or assumed in connection with the acquisition
of Property from any such Person (other than Property acquired in the ordinary
course of business), including Debt Incurred in connection with, or in
contemplation of, such Person being merged into the Company (but excluding Debt
of such Person that is extinguished, retired or repaid in connection with such
merger or acquisition).
"Adjusted Consolidated Net Income" means for any period, for any Person
(the "Referenced Person") the aggregate Net Income (or loss) of the Referenced
Person and its consolidated Subsidiaries for such period determined in
conformity with GAAP, provided that the following items shall be excluded in
computing Adjusted Consolidated Net Income (without duplication): (i) the Net
Income (or loss) of any other Person (other than a Subsidiary of the Referenced
Person) in which any third Person has an interest, except to the extent of the
amount of dividends or other distributions actually paid in cash to the
Referenced Person during such period, or after such period and on or before the
date of determination, by such Person in which the interest is held, which
dividends and distributions shall be included in such computation, (ii) solely
for the purposes of calculating the amount of Restricted Payments that may be
made pursuant to the provision described in clause (c) of Section 1010(a) (and
in such case, except to the extent includable pursuant to clause (i) above), the
Net Income (if positive) of any other Person accrued prior to the date it
becomes a Subsidiary of the Referenced Person or is merged into or consolidated
with the Referenced Person or any of its Subsidiaries or all or substantially
all the Property of such other Person is acquired by the Referenced Person or
any of its Subsidiaries, (iii) the Net Income (if positive) of any Subsidiary of
the Referenced Person, to the extent that the declaration or payment of
dividends or similar distributions by the Subsidiary to such Person or to any
other Subsidiary of such Net Income is not at the time permitted by operation of
the terms of its charter or any agreement, instrument, judgment, decree, order,
statute, rule or governmental regulation applicable to such Subsidiary, (iv) any
gains or losses (on an after-tax basis) attributable to Asset Sales (except,
solely for the purposes of calculating the amount of Restricted Payments that
may be made pursuant to the provision described in clause (c) of Section
1010(a), any gains or losses of the Company and any of its Restricted
Subsidiaries from Asset Sales of Capital Stock of
3
<PAGE>
Unrestricted Subsidiaries), (v) the cumulative effect of a change in accounting
principles and (vi) any amounts paid or accrued as dividends on Preferred Stock
of any Subsidiary of the Referenced Person that is not held by the Referenced
Person or another Subsidiary thereof. When the "Referenced Person" is the
Company, the foregoing references to "Subsidiaries" shall be deemed to refer to
"Restricted Subsidiaries."
"Affiliate" of any Person means any other Person directly or indirectly
controlling or controlled by or under direct or indirect common control with
such Person. For the purposes of this definition, "control" (including, with
correlative meanings, the terms "controlling", "controlled by" and "under common
control with") when used with respect to any Person means the possession,
directly or indirectly, of the power to direct or cause the direction of the
management and policies of such Person, whether through the ownership of voting
securities, by contract or otherwise. For the purpose of Section 1011, the term
"Affiliate" includes only Kiewit, any entity beneficially owning 10% or more of
the Voting Stock of the Company and their respective Affiliates other than the
Restricted Subsidiaries and the Eligible Joint Ventures and the other equity
investors in the Restricted Subsidiaries and the Eligible Joint Ventures (solely
on account of their investments in the Restricted Subsidiaries and the Eligible
Joint Ventures), and for such purpose such term also includes the Unrestricted
Subsidiaries.
"Asset Acquisition" means (i) an investment by the Company, any of its
Subsidiaries or any Joint Venture in any other Person pursuant to which such
Person shall become a direct or indirect Subsidiary of the Company or a Joint
Venture or shall be merged into or consolidated with the Company, any of its
Subsidiaries or any Joint Venture or (ii) an acquisition by the Company, any of
its Subsidiaries or any Joint Venture of the Property of any Person other than
the Company, any of its Subsidiaries or any Joint Venture that constitutes
substantially all of an operating unit or business of such Person.
"Asset Disposition" means any sale, transfer, conveyance, lease or
other disposition (including by way of merger, consolidation or sale-leaseback)
by the Company, any of its Restricted Subsidiaries or any Eligible Joint Venture
to any Person (other than to the Company, a Restricted Subsidiary of the Company
or an Eligible Joint Venture and other than in the ordinary course of business)
of any Property of the Company, any of its Restricted Subsidiaries or any
Eligible Joint Venture other than any shares of Capital Stock of the
Unrestricted Subsidiaries. Notwithstanding the foregoing to the contrary, the
term "Asset Disposition" shall include the sale, transfer,
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conveyance or other disposition of any shares of Capital Stock of any
Unrestricted Subsidiary to the extent that the Company or any of its Restricted
Subsidiaries or Eligible Joint Ventures made an Investment in such Unrestricted
Subsidiary pursuant to clause (vii) of the definition of "Permitted Payment,"
and the Company shall, and shall cause each of its Restricted Subsidiaries and
Eligible Joint Ventures to, apply pursuant to Section 1015 that portion of the
Net Cash Proceeds from the sale, transfer, conveyance or other disposition of
such Unrestricted Subsidiary that is equal to the portion of the total
Investment in such Unrestricted Subsidiary that is represented by the Investment
that was made pursuant to clause (vii) of the definition of "Permitted Payment."
For purposes of this definition, any disposition in connection with directors'
qualifying shares or investments by foreign nationals mandated by applicable law
shall not constitute an Asset Disposition. In addition, the term "Asset
Disposition" shall not include (i) any sale, transfer, conveyance, lease or
other disposition of the Capital Stock or Property of Restricted Subsidiaries or
Eligible Joint Ventures pursuant to the terms of any power sales agreements or
steam sales agreements to which such Restricted Subsidiaries or such Eligible
Joint Ventures are parties on the Issue Date of the Securities or pursuant to
the terms of any power sales agreements or steam sales agreements, or other
agreements or contracts that are related to the output or product of, or
services rendered by, a Permitted Facility as to which such Restricted
Subsidiary or such Eligible Joint Venture is the supplying party, to which such
Restricted Subsidiaries or such Eligible Joint Ventures become a party after
such date if the President or Chief Financial Officer of the Company determines
in good faith (evidenced by an Officers' Certificate) that such provisions are
customary (or, in the absence of any industry custom, reasonably necessary) in
order to effect such agreements and are reasonable in light of comparable
transactions in the applicable jurisdiction, (ii) any sale, transfer,
conveyance, lease or other disposition of Property governed by Section 801,
(iii) any sale, transfer, conveyance, lease or other disposition of any Cash
Equivalents, (iv) any transaction or series of related transactions consisting
of the sale, transfer, conveyance, lease or other disposition of Capital Stock
or Property with a fair market value aggregating less than $5 million and (v)
any Permitted Payment or any Restricted Payment that is permitted to be made
pursuant to Section 1010. The term "Asset Disposition" also shall not include
(i) the grant of or realization upon a Lien permitted under Section 1012 or the
exercise of remedies thereunder, (ii) a sale-leaseback transaction involving
substantially all the Property constituting a Permitted Facility pursuant to
which a Restricted Subsidiary of the Company or an Eligible Joint Venture sells
the Permitted Facility to a Person in exchange for the assumption by that Person
of the Debt financing the Permitted
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Facility and the Restricted Subsidiary or the Eligible Joint Venture leases the
Permitted Facility from such Person, (iii) dispositions of Capital Stock,
contract rights, development rights and resource data made in connection with
the initial development of Permitted Facilities, or the formation or
capitalization of Restricted Subsidiaries or Eligible Joint Ventures in respect
of the initial development of Permitted Facilities, in respect of which only an
insubstantial portion of the prospective Construction Financing that would be
required to commence commercial operation has been funded or (iv) transactions
determined in good faith by the Chief Financial Officer, as evidenced by an
Officers' Certificate, made in order to enhance the repatriation of the Net Cash
Proceeds for a Foreign Asset Disposition or in order to increase the after-tax
proceeds thereof available for immediate distribution to the Company. Any Asset
Disposition that results from the bona fide exercise by any governmental
authority of its claimed or actual power of eminent domain need not comply with
the provisions of clauses (i) and (ii) of Section 1015(a). Any Asset Disposition
that results from a casualty loss need not comply with the provisions of clause
(i) of Section 1015(a).
"Asset Sale" means the sale or other disposition by the Company, any of
its Subsidiaries or any Joint Venture (other than to the Company, another
Subsidiary of the Company or another Joint Venture) of (i) all or substantially
all of the Capital Stock of any Subsidiary of the Company or any Joint Venture
or (ii) all or substantially all of the Property that constitutes an operating
unit or business of the Company, any of its Subsidiaries or any Joint Venture.
"Attributable Value" means, as to a Capitalized Lease Obligation under
which any Person is at the time liable and at any date as of which the amount
thereof is to be determined, the capitalized amount thereof that would appear on
the face of a balance sheet of such Person in accordance with GAAP.
"Authenticating Agent" means any Person authorized by the Trustee
pursuant to Section 614 hereof to act on behalf of the Trustee to authenticate
Securities.
"Average Life" means, at any date of determination with respect to any
Debt security or Preferred Stock, the quotient obtained by dividing (i) the sum
of the product of (A) the number of years from such date of determination to the
dates of each successive scheduled principal or involuntary liquidation value
payment of such Debt security or Preferred Stock, respectively, multiplied by
(B) the amount of such principal or involuntary liquidation value payment by
(ii) the sum of all such principal or involuntary liquidation value payments.
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"Board of Directors" means either the Board of Directors of
the Company or any duly authorized committee of such Board.
"Board Resolution" means a copy of a resolution certified by the
Secretary or an Assistant Secretary of the Company to have been duly adopted by
the Board of Directors (unless the context specifically requires that such
resolution be adopted by a majority of the Disinterested Directors, in which
case by a majority of such directors) and to be in full force and effect on the
date of such certification, and delivered to the Trustee.
"Business Day" means a day that, in the city (or in any of the cities,
if more than one) where amounts are payable in respect of the Securities, is
neither a legal holiday nor a day on which banking institutions are authorized
or required by law, regulation or executive order to close.
"Capital Stock" means, with respect to any Person, any and all shares,
interests, participations or other equivalents (however designated, whether
voting or non-voting) in, or interests (however designated) in, the equity of
such Person that is outstanding or issued on or after the date of Indenture,
including, without limitation, all Common Stock and Preferred Stock and
partnership and joint venture interests in such Person.
"Capitalized Lease" means, as applied to any Person, any lease of any
Property of which the discounted present value of the rental obligations of such
Person as lessee, in conformity with GAAP, is required to be capitalized on the
balance sheet of such Person, and "Capitalized Lease Obligation" means the
rental obligations, as aforesaid, under such lease.
"Cash Equivalent" means any of the following: (i) securities issued or
directly and fully guaranteed or insured by the United States of America or any
agency or instrumentality thereof (provided that the full faith and credit of
the United States of America is pledged in support thereof), (ii) time deposits
and certificates of deposit of any commercial bank organized in the United
States having capital and surplus in excess of $500,000,000 or any commercial
bank organized under the laws of any other country having total assets in excess
of $500,000,000 with a maturity date not more than two years from the date of
acquisition, (iii) repurchase obligations with a term of not more than 30 days
for underlying securities of the types described in clauses (i) or (v) that were
entered into with any bank meeting the qualifications set forth in clause (ii)
or another financial institution of national reputation, (iv) direct obligations
issued by any state or other jurisdiction of the
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United States of America or any other country or any political subdivision or
public instrumentality thereof maturing, or subject to tender at the option of
the holder thereof, within 90 days after the date of acquisition thereof and, at
the time of acquisition, having a rating of A from S&P or A-2 from Moody's (or,
if at any time neither S&P nor Moody's may be rating such obligations, then from
another nationally recognized rating service acceptable to the Trustee), (v)
commercial paper issued by (a) the parent corporation of any commercial bank
organized in the United States having capital and surplus in excess of
$500,000,000 or any commercial bank organized under the laws of any other
country having total assets in excess of $500,000,000, and (b) others having one
of the two highest ratings obtainable from either S&P or Moody's (or, if at any
time neither S&P nor Moody's may be rating such obligations, then from another
nationally recognized rating service acceptable to the Trustee) and in each case
maturing within one year after the date of acquisition, (vi) overnight bank
deposits and bankers' acceptances at any commercial bank organized in the United
States having capital and surplus in excess of $500,000,000 or any commercial
bank organized under the laws of any other country having total assets in excess
of $500,000,000, (vii) deposits available for withdrawal on demand with any
commercial bank organized in the United States having capital and surplus in
excess of $500,000,000 or any commercial bank organized under the laws of any
other country having total assets in excess of $500,000,000, (viii) investments
in money market funds substantially all of whose assets comprise securities of
the types described in clauses (i) through (vi) and (ix), and (ix) auction rate
securities or money market preferred stock having one of the two highest ratings
obtainable from either S&P or Moody's (or, if at any time neither S&P nor
Moody's may be rating such obligations, then from another nationally recognized
rating service acceptable to the Trustee).
"Certificated Security" means any Security which is not a Global
Security.
"Change of Control" means the occurrence of one or more of the
following events:
(i) any "person" (as such term is used in Sections 13(d) and 14(d) of
the Exchange Act), other than Kiewit, is or becomes the beneficial owner (as
the term "beneficial owner" is defined under Rule 13d-3 or any successor
rule or regulation promulgated under the Exchange Act), directly or
indirectly, of more than 35% of the total voting power of the Voting Stock
of the Company (for the purposes of this clause (i), any person shall be
deemed to beneficially own any Voting Stock of any corporation (the
"specified
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corporation") held by any other corporation (the "parent corporation"), if
such person "beneficially owns" (as so defined), directly or indirectly,
more than 35% of the voting power of the Voting Stock of such parent
corporation) and Kiewit "beneficially owns" (as so defined), directly or
indirectly, in the aggregate a lesser percentage of the voting power of the
Voting Stock of the Company and does not have the right or ability by voting
power, contract or otherwise to elect or designate for election a majority
of the board of directors of the Company;
(ii) during any one-year period, individuals who at the beginning of
such period constituted the Board of Directors of the Company (together with
any new directors elected by such Board of Directors or nominated for
election by the shareholders of the Company by a vote of at least a majority
of the directors of the Company then still in office who were either
directors at the beginning of such period or whose election or nomination
for election was previously so approved) cease for any reason to constitute
a majority of the Board of Directors then in office, unless a majority of
such new directors were elected or appointed by Kiewit; or
(iii) the Company or its Restricted Subsidiaries sell, convey, assign,
transfer, lease or otherwise dispose of all or substantially all the
Property of the Company and the Restricted Subsidiaries taken as a whole;
provided that with respect to the foregoing subparagraphs (i), (ii) and (iii), a
Change of Control shall not be deemed to have occurred unless and until a Rating
Decline has occurred as well.
"Commission" means the United States Securities and Exchange
Commission.
"Common Stock" means with respect to any Person, Capital Stock of such
Person that does not rank prior, as to the payment of dividends or as to the
distribution of assets upon any voluntary or involuntary liquidation,
dissolution or winding up of such Person, to shares of Capital Stock of any
other class of such Person.
"Company" means the Person named as the "Company" in the first
paragraph of this Indenture 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 Refinancing Debt" means Debt issued in exchange for, or the
proceeds of which are used to refinance
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(including to purchase), outstanding Securities or other Debt of the Company
Incurred pursuant to clauses (i), (iv), and (vii) of Section 1008(b) and Debt
Incurred pursuant to Section 1008(a) in an amount (or, if such new Debt provides
for an amount less than the principal amount thereof to be due and payable upon
a declaration of acceleration thereof, with an original issue price) not to
exceed the amount so exchanged or refinanced (plus accrued interest and all
fees, premiums (in excess of the accreted value) and expenses related to such
exchange or refinancing), for which purpose the amount so exchanged or
refinanced shall be deemed to equal the lesser of (x) the principal amount of
the Debt so exchanged or refinanced and (y) if the Debt being exchanged or
refinanced was issued with an original issue discount, the accreted value
thereof (as determined in accordance with GAAP) at the time of such exchange or
refinancing, provided that (A) such Debt shall be subordinated in right of
payment to the Securities at least to the same extent, if any, as the Debt so
exchanged or refinanced is subordinated to the Securities, (B) such Debt shall
be Non-Recourse if the Debt so exchanged or refinanced is Non-Recourse, (C) the
Average Life of the new Debt shall be equal to or greater than the Average Life
of the Debt to be exchanged or refinanced and (D) the final Stated Maturity of
the new Debt shall not be sooner than the earlier of the final Stated Maturity
of the Debt to be exchanged or refinanced or six months after the final Stated
Maturity of the Securities, provided that if such new Debt refinances the
Securities in part only, the final Stated Maturity of such new Debt must be at
least six months after the final Stated Maturity of the Securities.
"Company Request" or "Company Order" means a written request or order
signed in the name of the Company by its 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.
"Consolidated EBITDA" of any Person for any period means the Adjusted
Consolidated Net Income of such Person, plus, only to the extent deducted in
computing Adjusted Consolidated Net Income and without duplication, (i) income
taxes, excluding income taxes (either positive or negative) attributable to
extraordinary and non-recurring gains or losses or Asset Sales, all determined
on a consolidated basis for such Person and its consolidated Subsidiaries in
accordance with GAAP, (ii) Consolidated Fixed Charges, (iii) depreciation and
amortization expense, all determined on a consolidated basis for such Person and
its consolidated Subsidiaries in accordance
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with GAAP and (iv) all other non-cash items reducing Adjusted Consolidated Net
Income for such period, all determined on a consolidated basis for such Person
and its consolidated Subsidiaries in accordance with GAAP, and less all non-cash
items increasing Adjusted Consolidated Net Income during such period, provided
that depreciation and amortization expense of any Subsidiary of such Person and
any other non-cash item of any Subsidiary of such Person that reduces Adjusted
Consolidated Net Income shall be excluded (without duplication) in computing
Consolidated EBITDA, except to the extent that the positive cash flow associated
with such depreciation and amortization expense and other non-cash items is
actually distributed in cash to such Person during such period, provided further
that as applied to the Company, cash in respect of depreciation and amortization
and other non-cash items of Restricted Subsidiaries and Eligible Joint Ventures
may be deemed to have been distributed or paid to the Company to the extent that
such cash (I) is or was under the exclusive dominion and control of such
Restricted Subsidiary or such Eligible Joint Venture and is free and clear of
the Lien of any other Person, (II) is or was immediately available for
distribution and (III) could be or could have been repatriated to the United
States by means that are both lawful and commercially reasonable, provided that
the amount of the cash deemed by this sentence to have been distributed or paid
shall be reduced by the amount of tax that would have been payable with respect
to the repatriation thereof, provided further that any cash that enables the
recognition of depreciation and amortization and other non-cash items pursuant
to this sentence may not be used to enable the recognition of depreciation and
amortization and other non-cash items with respect to any prior or subsequent
period, regardless of whether such cash is distributed to the Company, and
provided further that the recognition of any depreciation and amortization and
other non-cash items as a result of this sentence shall be determined in good
faith by the Chief Financial Officer, as evidenced by an Officers' Certificate
that shall set forth in reasonable detail the relevant facts and assumptions
supporting such recognition. When the "Person" referred to above is the Company,
the foregoing references to "Subsidiaries" shall be deemed to refer to
"Restricted Subsidiaries."
"Consolidated Fixed Charges" of any Person means, for any period, the
aggregate of (i) Consolidated Interest Expense, (ii) the interest component of
Capitalized Leases, determined on a consolidated basis for such Person and its
consolidated Subsidiaries in accordance with GAAP, excluding any interest
component of Capitalized Leases in respect of that portion of a Capitalized
Lease Obligation of a Subsidiary that is Non-Recourse to such Person, and (iii)
cash and non-cash dividends due (whether or not declared) on the Preferred Stock
of any Subsidiary of such Person held by any Person other than such Person and
any Redeemable Stock of such Person or any Subsidiary of such Person. When the
"Person" referred to above is the
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Company, the foregoing references to "Subsidiaries" shall be deemed to refer to
"Restricted Subsidiaries."
"Consolidated Interest Expense" of any Person means, for any period,
the aggregate interest expense in respect of Debt (including amortization of
original issue discount and non-cash interest payments or accruals) of such
Person and its consolidated Subsidiaries, determined on a consolidated basis in
accordance with GAAP, including all commissions, discounts, other fees and
charges owed with respect to letters of credit and bankers' acceptance financing
and net costs associated with Interest Rate Protection Agreements and Currency
Protection Agreements and any amounts paid during such period in respect of such
interest expense, commissions, discounts, other fees and charges that have been
capitalized, provided that Consolidated Interest Expense of the Company shall
not include any interest expense (including all commissions, discounts, other
fees and charges owed with respect to letters of credit and bankers' acceptance
financing and net costs associated with Interest Rate Protection Agreements or
Currency Protection Agreements) in respect of that portion of any Debt that is
Non-Recourse, and provided further that Consolidated Interest Expense of the
Company in respect of a Guarantee by the Company of Debt of another Person shall
be equal to the commissions, discounts, other fees and charges that would be due
with respect to a hypothetical letter of credit issued under a bank credit
agreement that can be drawn by the beneficiary thereof in the amount of the Debt
so guaranteed if (i) the Company is not actually making directly or indirectly
interest payments on such Debt and (ii) GAAP does not require the Company on an
unconsolidated basis to record such Debt as a liability of the Company. When the
"Person" referred to above is the Company, the foregoing references to
"Subsidiaries" shall be deemed to refer to "Restricted Subsidiaries."
"Construction Financing" means the debt and/or equity financing
provided (over and above the owners' equity investment) to permit the
acquisition, development, design, engineering, procurement, construction and
equipping of a Permitted Facility and to enable it to commence commercial
operations, provided that Construction Financing may remain outstanding after
the commencement of commercial operations of a Permitted Facility, without any
increase in the amount of such financing, and such Construction Financing shall
not cease to be Construction Financing.
"Corporate Trust Office" means the principal office of the Trustee at
which at any particular time its corporate trust business shall be administered,
which address as of the date of
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this Indenture is located at One State Street, 11th Floor, New York, New York
10004.
"Currency Protection Agreement" means, with respect to any Person, any
foreign exchange contract, currency swap agreement or other similar agreement or
arrangement intended to protect such Person against fluctuations in currency
values to or under which such Person is a party or a beneficiary on the date of
this Indenture or becomes a party or a beneficiary thereafter.
"Debt" means, with respect to any Person, at any date of determination
(without duplication), (i) all indebtedness of such Person for borrowed money,
(ii) all obligations of such Person evidenced by bonds, debentures, notes or
other similar instruments, (iii) all obligations of such Person in respect of
letters of credit, bankers' acceptances, surety, bid, operating and performance
bonds, performance guarantees or other similar instruments or obligations (or
reimbursement obligations with respect thereto) (except, in each case, to the
extent incurred in the ordinary course of business), (iv) all obligations of
such Person to pay the deferred purchase price of property or services, except
Trade Payables, (v) the Attributable Value of all obligations of such Person as
lessee under Capitalized Leases, (vi) all Debt of others secured by a Lien on
any Property of such Person, whether or not such Debt is assumed by such Person,
provided that, for purposes of determining the amount of any Debt of the type
described in this clause, if recourse with respect to such Debt is limited to
such Property, the amount of such Debt shall be limited to the lesser of the
fair market value of such Property or the amount of such Debt, (vii) all Debt of
others Guaranteed by such Person to the extent such Debt is Guaranteed by such
Person, (viii) all Redeemable Stock valued at the greater of its voluntary or
involuntary liquidation preference plus accrued and unpaid dividends and (ix) to
the extent not otherwise included in this definition, all net obligations of
such Person under Currency Protection Agreements and Interest Rate Protection
Agreements.
For purposes of determining any particular amount of Debt that is or
would be outstanding, Guarantees of, or obligations with respect to letters of
credit or similar instruments supporting (to the extent the foregoing
constitutes Debt), Debt otherwise included in the determination of such
particular amount shall not be included. For purposes of determining compliance
with this Indenture, in the event that an item of Debt meets the criteria of
more than one of the types of Debt described in the above clauses, the Company,
in its sole discretion, shall classify such item of Debt and only be required to
include the amount and type of such Debt in one of such clauses.
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"Default" means any event that is, or after notice or passage of time,
or both, would be, an Event of Default.
"Default Amount" means the principal amount plus accrued interest.
"Depositary" means the Person designated as Depositary by the Company
pursuant to Section 201(a) until a successor depositary shall have become such
pursuant to the applicable provisions of this Indenture, and thereafter
"Depositary" shall mean or include each Person who is then a Depositary
hereunder. For purposes of this Indenture, unless otherwise specified pursuant
to Section 201(a), any such Depositary shall, at the time of its designation and
at all times during which it serves as Depositary, be a clearing agency
registered under the Exchange Act and any other applicable statute or
regulation.
"Disinterested Director" means, with respect to any proposed
transaction between the Company, a Restricted Subsidiary of the Company or an
Eligible Joint Venture, as applicable, and an Affiliate thereof, a member of the
Board of Directors who would not be a party to, or have a financial interest in,
such transaction and is not an officer, director or employee of, and does not
have a financial interest in, such Affiliate. For purposes of this definition,
no person would be deemed not to be a Disinterested Director solely because such
person holds Capital Stock of the Company.
"Eligible Joint Venture" means a Joint Venture (other than a
Subsidiary) (i) that is or shall be formed with respect to the construction,
development, acquisition, servicing, ownership, operation or management of one
or more Permitted Facilities and (ii) in which the Company and Kiewit together,
directly or indirectly, own at least 50% of the Capital Stock therein (of which
the Company must own at least half (in any event not less than 25% of the total
outstanding Capital Stock)) and (iii) in respect of which the Company alone or
in combination with Kiewit, directly or indirectly, (a) controls, by voting
power, board or management committee membership, or through the provisions of
any applicable partnership, shareholder or other similar agreement or under an
operating, maintenance or management agreement or otherwise, the management and
operation of the Joint Venture or any Permitted Facilities of the Joint Venture
or (b) otherwise has significant influence over the management or operation of
the Joint Venture or any Permitted Facility of the Joint Venture in all material
respects (significant influence includes, without limitation, the right to
control or veto any material act or decision) in connection with such management
or operation. Any Joint Venture that is an Eligible Joint Venture pursuant to
this definition because of the ownership of Capital Stock therein by
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Kiewit shall cease to be an Eligible Joint Venture if (x) Kiewit disposes of any
securities issued by the Company and, as a result of such disposition, Kiewit
becomes the beneficial owner (as such term is defined under Rule 13d-3 or any
successor rule or regulation promulgated under the Exchange Act) of less than
25% of the outstanding shares of Voting Stock of the Company or (y) (I) as a
result of any action other than a disposition of securities by Kiewit, Kiewit
becomes the beneficial owner of less than 25% of the outstanding shares of
Voting Stock of the Company and (II) thereafter Kiewit disposes of any
securities issued by the Company as a result of which the beneficial ownership
by Kiewit of the outstanding Voting Stock of the Company is further reduced,
provided that thereafter such Joint Venture may become an Eligible Joint Venture
if Kiewit becomes the beneficial owner of at least 25% of the outstanding shares
of Voting Stock of the Company and the other conditions set forth in this
definition are fulfilled.
"Exchange Act" refers to the Securities Exchange Act of 1934 and any
statute successor thereto, in each case as amended from time to time.
"Fixed Charge Ratio" means the ratio, on a pro forma basis, of (i) the
aggregate amount of Consolidated EBITDA of any Person for the Reference Period
immediately prior to the date of the transaction giving rise to the need to
calculate the Fixed Charge Ratio (the "Transaction Date") to (ii) the aggregate
Consolidated Fixed Charges of such Person during such Reference Period, provided
that for purposes of such computation, in calculating Consolidated EBITDA and
Consolidated Fixed Charges, (1) the Incurrence of the Debt giving rise to the
need to calculate the Fixed Charge Ratio and the application of the proceeds
therefrom (including the retirement or defeasance of Debt) shall be assumed to
have occurred on the first day of the Reference Period, (2) Asset Sales and
Asset Acquisitions that occur during the Reference Period or subsequent to the
Reference Period and prior to the Transaction Date (but including any Asset
Acquisition to be made with the Debt Incurred pursuant to (1) above) and any
related retirement of Debt pursuant to an Offer to Purchase (in the amount of
the Excess Proceeds with respect to which such Offer to Purchase has been made
or would be made on the Transaction Date if the purchase of Securities pursuant
to such Offer to Purchase has not occurred on or before the Transaction Date)
shall be assumed to have occurred on the first day of the Reference Period, (3)
the Incurrence of any Debt during the Reference Period or subsequent to the
Reference Period and prior to the Transaction Date and the application of the
proceeds therefrom (including the retirement or defeasance of other Debt) shall
be assumed to have occurred on the first day of such Reference Period, (4)
Consolidated Interest Expense
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attributable to any Debt (whether existing or being Incurred) computed on a pro
forma basis and bearing a floating interest rate shall be computed as if the
rate in effect on the date of computation had been the applicable rate for the
entire period unless the obligor on such Debt is a party to an Interest Rate
Protection Agreement (that shall remain in effect for the twelve month period
after the Transaction Date) that has the effect of fixing the interest rate on
the date of computation, in which case such rate (whether higher or lower) shall
be used and (5) there shall be excluded from Consolidated Fixed Charges any
Consolidated Fixed Charges related to any amount of Debt that was outstanding
during or subsequent to the Reference Period but is not outstanding on the
Transaction Date, except for Consolidated Fixed Charges actually incurred with
respect to Debt borrowed (as adjusted pursuant to clause (4)) (x) under a
revolving credit or similar arrangement to the extent the commitment thereunder
remains in effect on the Transaction Date or (y) pursuant to the provision
described in clause (iii) of Section 1008(b). For the purpose of making this
computation, Asset Sales and Asset Acquisitions that have been made by any
Person that has become a Restricted Subsidiary of the Company or an Eligible
Joint Venture or been merged with or into the Company or any Restricted
Subsidiary of the Company or an Eligible Joint Venture during the Reference
Period, or subsequent to the Reference Period and prior to the Transaction Date,
shall be calculated on a pro forma basis, as shall be all the transactions
contemplated by the calculations referred to in clauses (1) through (5) above
with respect to the Persons or businesses that were the subject of such Asset
Sales and Asset Acquisitions, assuming such Asset Sales or Asset Acquisitions
occurred on the first day of the Reference Period.
"Foreign Asset Disposition" means an Asset Disposition in respect of
the Capital Stock or Property of a Restricted Subsidiary of the Company or an
Eligible Joint Venture to the extent that the proceeds of such Asset Disposition
are received by a Person subject in respect of such proceeds to the tax laws of
a jurisdiction other than the United States of America or any State thereof or
the District of Columbia.
"GAAP" means generally accepted accounting principles in the
U.S. as in effect as of the date of this Indenture, applied on a basis
consistent with the principles, methods, procedures and practices employed in
the preparation of the Company's audited financial statements, including,
without limitation, those set forth in the opinions and pronouncements of the
Accounting Principles Board of the American Institute of Certified Public
Accountants and statements and pronouncements of the Financial Accounting
Standards Board or in such other
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statements by such other entity as approved by a significant segment of the
accounting profession.
"Global Security" means a Security evidencing all or a part of
the Securities, issued in the name of the nominee of the Depositary, or pursuant
to the Depositary's instruction, in accordance with Section 201(a).
"Guarantee" means any obligation, contingent or otherwise, of any
Person directly or indirectly guaranteeing any Debt of any other Person and,
without limiting the generality of the foregoing, any Debt obligation, direct or
indirect, contingent or otherwise, of such Person (i) to purchase or pay (or
advance or supply funds for the purchase or payment of) such Debt of such other
Person (whether arising by virtue of partnership arrangements (other than solely
by reason of being a general partner of a partnership), or by agreement to
keep-well, to purchase assets, goods, securities or services, or to take-or-pay,
or to maintain financial statement conditions or otherwise) or (ii) entered into
for purposes of assuring in any other manner the obligee of such Debt of the
payment thereof or to protect such obligee against loss in respect thereof (in
whole or in part), provided that the term "Guarantee" shall not include
endorsements for collection or deposit in the ordinary course of business or the
grant of a Lien in connection with any Non-Recourse Debt. The term "Guarantee"
used as a verb has a corresponding meaning.
"Holder," "holder of Securities," "Securityholder" and other similar
terms are defined to mean the registered holder of any Security.
"Incur" means with respect to any Debt, to incur, create,
issue, assume, Guarantee or otherwise become liable for or with respect to, or
become responsible for, the payment of, contingently or otherwise, such Debt,
provided that neither the accrual of interest (whether such interest is payable
in cash or kind) nor the accretion of original issue discount shall be
considered an Incurrence of Debt. The term "Incurrence" has a corresponding
meaning.
"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.
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"Interest Payment Date" means the Stated Maturity of an installment of
interest on the Securities.
"Interest Rate Protection Agreement" means, with respect to any Person,
any interest rate protection agreement, interest rate future agreement, interest
rate option agreement, interest rate swap agreement, interest rate cap
agreement, interest rate collar agreement, interest rate hedge agreement or
other similar agreement or arrangement intended to protect such Person against
fluctuations in interest rates to or under which such Person or any of its
Subsidiaries is a party or a beneficiary on the date of this Indenture or
becomes a party or a beneficiary thereafter.
"Internal Revenue Code" means the Internal Revenue Code of 1986, as
amended.
"Investment" in a Person means any investment in, loan or advance to,
Guarantee on behalf of, directly or indirectly, or other transfer of assets to
such Person (other than sales of products and services in the ordinary course of
business).
"Investment Grade" means with respect to the Securities, (i) in the
case of S&P, a rating of at least BBB-, (ii) in the case of Moody's, a rating of
at least Baa3, and (iii) in the case of a Rating Agency other than S&P or
Moody's, the equivalent rating, or in each case, any successor, replacement or
equivalent definition as promulgated by S&P, Moody's or other Rating Agency as
the case may be.
"Issue Date" means the date on which the first series of Securities are
first authenticated and delivered under this Indenture.
"Joint Venture" means a joint venture, partnership or other similar
arrangement, whether in corporate, partnership or other legal form.
"Kiewit" means and includes Kiewit Energy Company and any other
Subsidiary of Peter Kiewit Sons', Inc., Kiewit Construction Group Inc. or Kiewit
Diversified Group, Inc.
"Lien" means, with respect to any Property, any mortgage, lien, pledge,
charge, security interest or encumbrance of any kind in respect of such
Property, but shall not include any partnership, joint venture, shareholder,
voting trust or other similar governance agreement with respect to Capital Stock
in a Subsidiary or Joint Venture. For purposes of this Indenture, the Company
shall be deemed to own subject to a Lien any Property that it has acquired or
holds subject to the
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interest of a vendor or lessor under any conditional sale agreement, capital
lease or other title retention agreement relating to such Property.
"Moody's" means Moody's Investors Service, Inc.
"Net Cash Proceeds" from an Asset Disposition means cash payments
received (including any cash payments received by way of a payment of principal
pursuant to a note or installment receivable or otherwise, but only as and when
received (including any cash received upon sale or disposition of any such note
or receivable), excluding any other consideration received in the form of
assumption by the acquiring Person of Debt or other obligations relating to the
Property disposed of in such Asset Disposition or received in any form other
than cash) therefrom, in each case, net of (i) all legal, title and recording
tax expenses, commissions and other fees and expenses of any kind (including
consent and waiver fees and any applicable premiums, earn-out or working
interest payments or payments in lieu or in termination thereof) incurred, (ii)
all federal, state, provincial, foreign and local taxes and other governmental
charges required to be accrued as a liability under GAAP (a) as a consequence of
such Asset Disposition, (b) as a result of the repayment of any Debt in any
jurisdiction other than the jurisdiction where the Property disposed of was
located or (c) as a result of any repatriation of any proceeds of such Asset
Disposition, (iii) a reasonable reserve for the after-tax cost of any
indemnification payments (fixed and contingent) attributable to seller's
indemnities to the purchaser undertaken by the Company, any of its Restricted
Subsidiaries or any Eligible Joint Venture in connection with such Asset
Disposition (but excluding any payments that by the terms of the indemnities
shall not, under any circumstances, be made during the term of the Securities),
(iv) all payments made on any Debt that is secured by such Property, in
accordance with the terms of any Lien upon or with respect to such Property, or
that must by its terms or by applicable law or in order to obtain a required
consent or waiver be repaid out of the proceeds from or in connection with such
Asset Disposition, and (v) all distributions and other payments made to holders
of Capital Stock of Restricted Subsidiaries or Eligible Joint Ventures (other
than the Company or its Restricted Subsidiaries) as a result of such Asset
Disposition.
"Net Income" of any Person for any period means the net income (loss)
of such Person for such period, determined in accordance with GAAP, except that
extraordinary and non-recurring gains and losses as determined in accordance
with GAAP shall be excluded.
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"Net Worth" of any Person is defined to mean, as of any date, the
aggregate of capital, surplus and retained earnings (including any cumulative
currency translation adjustment) of such Person and its consolidated
Subsidiaries as would be shown on a consolidated balance sheet of such Person
and its consolidated Subsidiaries prepared as of such date in accordance with
GAAP. When the "Person" referred to above is the Company, the foregoing
references to "Subsidiaries" shall be deemed to refer to "Restricted
Subsidiaries."
"Non-Recourse", as applied to any Debt or any sale-leaseback, means any
project financing that is or was Incurred with respect to the development,
acquisition, design, engineering, procurement, construction, operation,
ownership, servicing or management of one or more Permitted Facilities in
respect of which the Company or one or more Restricted Subsidiaries or Eligible
Joint Ventures has a direct or indirect interest, provided that such financing
is without recourse to the Company, any Restricted Subsidiary or any Eligible
Joint Venture other than any Restricted Subsidiary or any Eligible Joint Venture
that does not own any Property other than one or more of such Permitted
Facilities or a direct or indirect interest therein, provided further that such
financing may be secured by a Lien on only (i) the Property that constitutes
such Permitted Facilities, (ii) the income from and proceeds of such Permitted
Facility, (iii) the Capital Stock of, and other Investments in, any Restricted
Subsidiary or Eligible Joint Venture that owns the Property that constitutes any
such Permitted Facility and (iv) the Capital Stock of, and other Investments in,
any Restricted Subsidiary or Eligible Joint Venture obligated with respect to
such financing and of any Subsidiary or Joint Venture (that is a Restricted
Subsidiary or an Eligible Joint Venture) of such Person that owns a direct or
indirect interest in any such Permitted Facility, and provided further that an
increase in the amount of Debt with respect to one or more Permitted Facilities
pursuant to the financing provided pursuant to the terms of this definition
(except for the first refinancing of Construction Financing) may not be Incurred
to fund or enable the funding of any dividend or other distribution in respect
of Capital Stock. The fact that a portion of financing with respect to a
Permitted Facility is not Non-Recourse shall not prevent other portions of the
financing with respect to such Permitted Facility from constituting Non-Recourse
Debt if the foregoing requirements of this definition are fulfilled with respect
to such other portions.
"Offer to Purchase" means, as appropriate, a Change of Control Offer
pursuant to Section 1013 or an Excess Proceeds Offer pursuant to Section 1015.
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"Officers' Certificate" means a certificate signed by the Chairman of
the Board of Directors, the President or any Vice President and by the Chief
Financial Officer, the Treasurer, an Assistant Treasurer, the Controller, the
Assistant Controller, the Secretary or any Assistant Secretary of the Company
and delivered to the Trustee. Each such certificate will comply with Section 314
of the Trust Indenture Act and include the statements provided for in this
Indenture if and to the extent required thereby.
"Opinion of Counsel" means an opinion in writing signed by legal
counsel who may be an employee of or counsel to the Company or who may be other
counsel satisfactory to the Trustee. Each such opinion shall comply with Section
314 of the Trust Indenture Act and include the statements provided for in this
Indenture, if and to the extent required thereby.
"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 theretofore cancelled by the Trustee or delivered to the
Trustee for cancellation;
(ii) Securities that have come due or that are to be called for
redemption, for whose payment or redemption money in the necessary amount
has been theretofore deposited with the Trustee or any Paying Agent (other
than the Company or a Restricted Subsidiary) in trust 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 giving such notice within 10 days of such date of
determination, satisfactory to the Trustee, has been made;
(iii) Securities that have been paid pursuant to Section 308 or in
exchange for or 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 as to which Defeasance has been effected
pursuant to Section 1202;
provided that in determining whether the Holders of the requisite principal
amount of the Outstanding Securities have given, made
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or taken any request, demand, authorization, direction, notice, consent, waiver
or other action hereunder as of any date, Securities owned by the Company or any
other obligor upon the Securities or any Affiliate or Restricted Subsidiary 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 request, demand, authorization, direction, notice,
consent, waiver or other action, 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 so to act with respect to such
Securities and that the pledgee is not the Company or any other obligor upon the
Securities or any Restricted Subsidiary of the Company 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.
"Permitted Facility" means (i) an electric power or thermal energy
generation or cogeneration facility or related facilities (including residual
waste management and facilities that use thermal energy from a cogeneration
facility), and its or their related electric power transmission, fuel supply and
fuel transportation facilities, together with its or their related power supply,
thermal energy and fuel contracts and other facilities, services or goods that
are ancillary, incidental, necessary or reasonably related to the marketing,
development, construction, management, servicing, ownership or operation of the
foregoing, owned by a utility or otherwise, as well as other contractual
arrangements with customers, suppliers and contractors or (ii) any
infrastructure facilities related to (A) the treatment of water for municipal
and other uses, (B) the treatment and/or management of waste water, (C) the
treatment, management and/or remediation of waste, pollution and/or potential
pollutants and (D) any other process or environmental purpose.
"Permitted Facilities Debt" means any Debt that is or was Incurred with
respect to the direct or indirect development, acquisition, design, engineering,
procurement, construction, operation, ownership, servicing or management of one
or more Permitted Facilities (x) currently in development by the Company
(directly or indirectly) or which are hereafter acquired or developed by the
Company (directly or indirectly) and (y) in which the Company or one or more
Restricted Subsidiaries or Eligible Joint Ventures has a direct or indirect
interest.
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"Permitted Funding Company Loans" means (a) Debt of a Restricted
Subsidiary, all the Capital Stock of which is owned, directly or indirectly by
the Company and that (x) does not own any direct or indirect interest in a
Permitted Facility and (y) is not directly or indirectly obligated on any Debt
owed to any Person other than the Company, a Restricted Subsidiary or an
Eligible Joint Venture (a "Funding Company"), owed to a Restricted Subsidiary or
an Eligible Joint Venture that is not directly or indirectly obligated on any
Debt owed to any Person other than the Company, a Restricted Subsidiary or an
Eligible Joint Venture (a "Holding Company"), provided that such Debt (i) does
not require that interest be paid in cash at any time sooner than six months
after the final Stated Maturity of the Securities, (ii) does not require any
payment of principal at any time sooner than six months after the final Stated
Maturity of the Securities, (iii) is subordinated in right of payment to all
other Debt of such Restricted Subsidiary other than Debt Incurred pursuant to
clause (vii) of Section 1009(b), all of which shall be pari passu and (iv) is
evidenced by a subordinated note in the form attached to the Indenture as
Exhibit B and that shall not contain or be governed by any contractual
provisions other than those set forth in Exhibit B, and (b) Debt of a Holding
Company to a Funding Company.
"Permitted Investment" means any Investment that is made directly or
indirectly by the Company and its Restricted Subsidiaries in (i) a Restricted
Subsidiary or Eligible Joint Venture (excluding for the purpose of this clause
(i) any Construction Financing) that, directly or indirectly, is or shall be
engaged in the construction, development, acquisition, operation, servicing,
ownership or management of a Permitted Facility or in any other Person as a
result of which such other Person becomes such a Restricted Subsidiary or an
Eligible Joint Venture, provided that at the time that any of the foregoing
Investments is proposed to be made, no Event of Default or Default shall have
occurred and be continuing, (ii) Construction Financing provided by the Company
(A) to any of its Restricted Subsidiaries (other than an Eligible Joint Venture)
up to 100% of the Construction Financing required by such Restricted Subsidiary
and (B) to any Eligible Joint Venture a portion of the Construction Financing
required by such Eligible Joint Venture that does not exceed the ratio of the
Capital Stock in such Eligible Joint Venture that is owned directly or
indirectly by the Company to the total amount of the Capital Stock in such
Eligible Joint Venture that is owned directly and indirectly by the Company and
Kiewit together (provided that the Company may provide such Construction
Financing to such Eligible Joint Venture only if Kiewit provides the balance of
such Construction Financing or otherwise causes it to be provided), if, in
either case, (x) the aggregate proceeds of all the Construction
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Financing provided is not more than 85% of the sum of the aggregate proceeds of
such Construction Financing and the aggregate owners' equity investment in such
Restricted Subsidiary or such Eligible Joint Venture, as the case may be, (y)
the Company receives a pledge or assignment of all the Capital Stock of such
Restricted Subsidiary or such Eligible Joint Venture, as the case may be, that
is owned by non-governmental Person (other than the Company, its Subsidiaries or
the Eligible Joint Ventures) that is permitted to be pledged for such purpose
under applicable law and (z) neither the Company nor Kiewit reduces its
beneficial ownership in such Restricted Subsidiary or such Eligible Joint
Venture, as the case may be, prior to the repayment in full of the Company's
portion of the Construction Financing, (iii) any Cash Equivalents, (iv) prepaid
expenses, negotiable instruments held for collection and lease, utility and
workers' compensation, performance and other similar deposits in the ordinary
course of business consistent with past practice, (v) loans and advances to
employees made in the ordinary course of business and consistent with past
practice, (vi) Debt incurred pursuant to Currency Protection Agreements and
Interest Rate Protection Agreements as otherwise permitted by this Indenture,
(vii) bonds, notes, debentures or other debt securities and instruments received
as a result of Asset Dispositions to the extent permitted by Sections 1015 and
1021, (viii) any Lien permitted under Section 1012 and (ix) bank deposits and
other Investments (to the extent they do not constitute Cash Equivalents)
required by lenders in connection with any Non-Recourse Debt, provided that the
President or the Chief Financial Officer of the Company determines in good
faith, as evidenced by an Officers' Certificate, that such bank deposits or
Investments are required to effect such financings and are not materially more
restrictive, taken as a whole, than comparable requirements, if any, in
comparable financings in the applicable jurisdiction or (x) any Person to the
extent made with Capital Stock (other than Redeemable Stock) of the Company
(whether by way of purchase, merger, consolidation or otherwise) to the extent
permitted under Section 1021.
"Permitted Joint Venture" means a Joint Venture (i) that is or shall be
formed with respect to the construction, development, acquisition, servicing,
ownership, operation or management of one or more Permitted Facilities and (ii)
in which (A) the Company or (B) the Company and Kiewit together, directly or
indirectly, own at least 70% of the Capital Stock therein (of which the Company
must own at least half (in any event not less than 35% of the total outstanding
Capital Stock)), provided that if applicable non-U.S. law restricts the amount
of Capital Stock that the Company may own, the Company must own at least 70% of
the amount of Capital Stock that it may own pursuant to such law, which in any
event must be not less than 35% of the total
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outstanding Capital Stock therein and (iii) in respect of which the Company
alone or in combination with Kiewit, directly or indirectly, (a) controls, by
voting power, board or management committee membership, or through the
provisions of any applicable partnership, shareholder or other similar agreement
or under an operating, maintenance or management agreement or otherwise, the
management and operation of the Joint Venture or any Permitted Facilities of the
Joint Venture or (b) otherwise has significant influence over the management or
operation of the Joint Venture or any Permitted Facility of the Joint Venture in
all material respects (significant influence includes, without limitation, the
right to control or veto any material act or decision) in connection with such
management or operation. Any Joint Venture that is a Permitted Joint Venture
pursuant to this definition because of the ownership of Capital Stock therein by
Kiewit shall cease to be a Permitted Joint Venture if (x) Kiewit disposes of any
securities issued by the Company and, as a result of such disposition, Kiewit
becomes the beneficial owner (as such term is defined under Rule 13d-3 or any
successor rule or regulation promulgated under the Exchange Act) of less than
25% of the outstanding shares of Voting Stock of the Company or (y) (I) as a
result of any action other than a disposition of securities by Kiewit, Kiewit
becomes the beneficial owner of less than 25% of the outstanding shares of
Voting Stock of the Company and (II) thereafter Kiewit disposes of any
securities issued by the Company as a result of which the beneficial ownership
by Kiewit of the outstanding Voting Stock of the Company is further reduced,
provided that thereafter such Joint Venture may become a Permitted Joint Venture
if Kiewit becomes the beneficial owner of at least 25% of the outstanding shares
of the Voting Stock of the Company and the other conditions set forth in this
definition are fulfilled.
"Permitted Payments" means, with respect to the Company, any of its
Restricted Subsidiaries or any Eligible Joint Venture, (i) any dividend on
shares of Capital Stock of the Company payable (or to the extent paid) solely in
Capital Stock (other than Redeemable Stock) or in options, warrants or other
rights to purchase Capital Stock (other than Redeemable Stock) of the Company
and any distribution of Capital Stock (other than Redeemable Capital Stock) of
the Company in respect of the exercise of any right to convert or exchange any
instrument (whether Debt or equity and including Redeemable Capital Stock) into
Capital Stock (other than Redeemable Capital Stock) of the Company, (ii) the
purchase or other acquisition or retirement for value of any shares of the
Company's Capital Stock, or any option, warrant or other right to purchase
shares of the Company's Capital Stock with additional shares of, or out of the
proceeds of a substantially contemporaneous issuance of, Capital Stock other
than Redeemable Stock, (iii) any defeasance,
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redemption, purchase or other acquisition for value of any Debt that by its
terms ranks subordinate in right of payment to the Securities with the proceeds
from the issuance of (x) Debt that is subordinate to the Securities at least to
the extent and in the manner as the Debt to be defeased, redeemed, purchased or
otherwise acquired is subordinate in right of payment to the Securities,
provided that such subordinated Debt provides for no mandatory payments of
principal by way of sinking fund, mandatory redemption or otherwise (including
defeasance) by the Company (including, without limitation, at the option of the
holder thereof other than an option given to a holder pursuant to a "change of
control" or an "asset disposition" covenant that is no more favorable to the
holders of such Debt than comparable covenants for the Debt being defeased,
redeemed, purchased or acquired or, if none, Sections 1013 and 1015 and such
Debt is not in an amount (net of any original issue discount) greater than, any
Stated Maturity of the Debt being replaced and the proceeds of such subordinated
Debt are utilized for such purpose within 45 days of issuance or (y) Capital
Stock (other than Redeemable Stock), (iv) Restricted Payments in an amount not
to exceed $75 million in the aggregate provided that no payment may be made
pursuant to this clause (iv) if an Event of Default or Default has occurred and
is continuing, (v) any payment or Investment required by applicable law in order
to conduct business operations in the ordinary course, (vi) a Permitted
Investment and (vii) Investments in Unrestricted Subsidiaries and other Persons
that are not Restricted Subsidiaries or Eligible Joint Ventures in an amount not
to exceed $100 million in the aggregate, provided that no payment or Investment
may be made pursuant to this clause (vii) if an Event of Default or Default has
occurred and is continuing. Notwithstanding the foregoing, the amount of
Investments that may be made pursuant to clauses (iv) and (vii), as the case may
be, may be increased by the net reduction in Investments of the type made
previously pursuant to clauses (iv) and (vii), as the case may be, that result
from payments of interest on Debt, dividends, or repayment of loans or advances,
the proceeds of the sale or disposition of the Investment or other return of the
amount of the original Investment to the Company, the Restricted Subsidiary or
the Eligible Joint Venture that made the original Investment from the Person in
which such Investment was made or any distribution or payment of such Investment
to the extent that such distribution or payment constituted either a Restricted
Payment or a Permitted Payment, provided that (x) the aggregate amount of such
payments shall not exceed the amount of the original Investment by the Company,
such Restricted Subsidiary or Eligible Joint Venture that reduced the amount
available pursuant to clause (iv) or clause (vii), as the case may be, for
making Restricted Payments and (y) such payments may be added pursuant to this
proviso only
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to the extent such payments are not included in the calculation of Adjusted
Consolidated Net Income.
"Permitted Working Capital Facilities" means one or more loan or credit
agreements providing for the extension of credit to the Company for the
Company's working capital purposes, which credit agreements shall be ranked pari
passu with or subordinate to the Securities in right of payment and may be
secured or unsecured.
"Person" means an individual, a corporation, a partnership, an
association, a trust or any other entity or organization, including a government
or political subdivision or an agency or instrumentality 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 308 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.
"Preferred Stock" means, with respect to any Person, any and all
shares, interests, participations or other equivalents (however designated,
whether voting or non-voting) or preferred or preference stock of such Person
that is outstanding or issued on or after the Issue Date of the Securities.
"Property" of any Person means all types of real, personal, tangible or
mixed property owned by such Person whether or not included in the most recent
consolidated balance sheet of such Person under GAAP.
"Purchase Date" means, as appropriate, the Change of Control
Purchase Date under Section 1013 or the Excess Proceeds Purchase Date under
Section 1015.
"Purchase Money Debt" means Debt representing, or Incurred to finance,
the cost of acquiring any Property, provided that (i) any Lien securing such
Debt does not extend to or cover any other Property other than the Property
being acquired and (ii) such Debt is incurred, and any Lien with respect thereto
is granted, within 18 months of the acquisition of such Property.
"Rating Agencies" means (i) S&P and (ii) Moody's or (iii) if S&P or
Moody's or both do not make a rating of the Securities publicly available, a
nationally recognized securities rating agency or agencies, as the case may be,
selected by the
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Company, which shall be substituted for S&P, Moody's or both, as the case may
be.
"Rating Category" means (i) with respect to S&P, any of the
following categories: BB, B, CCC, CC, C and D (or equivalent successor
categories), (ii) with respect to Moody's, any of the following categories: Ba,
B, Caa, Ca, C and D (or equivalent successor categories) and (iii) the
equivalent of any such category of S&P or Moody's used by another Rating Agency.
In determining whether the rating of the Securities has decreased by one or more
gradations, gradations within Rating Categories (+ and - for S&P, 1, 2 and 3 for
Moody's or the equivalent gradations for another Rating Agency) shall be taken
into account (e.g., with respect to S&P, a decline in a rating from BB+ to BB,
as well as from BB- to B+, shall constitute a decrease of one gradation).
"Rating Decline" means the occurrence of the following on, or within 90
days after, the earlier of (i) the occurrence of a Change of Control and (ii)
the date of public notice of the occurrence of a Change of Control or of the
public notice of the intention of the Company to effect a Change of Control (the
"Rating Date") which period shall be extended so long as the rating of the
Securities is under publicly announced consideration for possible downgrading by
any of the Rating Agencies): (a) in the event that the Securities are rated by
either Rating Agency on the Rating Date as Investment Grade, the rating of the
Securities by both such Rating Agencies shall be reduced below Investment Grade,
or (b) in the event the Securities are rated below Investment Grade by both such
Rating Agencies on the Rating Date, the rating of the Securities by either
Rating Agency shall be decreased by one or more gradations (including gradations
within Rating Categories as well as between Rating Categories).
"Redeemable Stock" means any class or series of Capital Stock of any
Person that by its terms or otherwise is (i) required to be redeemed prior to
the Stated Maturity of the Securities, (ii) redeemable at the option of the
holder of such class or series of Capital Stock at any time prior to the Stated
Maturity of the Securities or (iii) convertible into or exchangeable for Capital
Stock referred to in clause (i) or (ii) above or Debt having a scheduled
maturity prior to the Stated Maturity of the Securities, provided that any
Capital Stock that would not constitute Redeemable Stock but for provisions
thereof giving holders thereof the right to require the Company to purchase or
redeem such Capital Stock upon the occurrence of an "asset sale" or a "change of
control" occurring prior to the Stated Maturity of the Securities shall not
constitute Redeemable Stock if the "asset sale" or "change of control" provision
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applicable to such Capital Stock is no more favorable to the holders of such
Capital Stock than the provisions contained in Section 1013 and 1015 and such
Capital Stock specifically provides that the Company shall not purchase or
redeem any such Capital Stock pursuant to such covenants prior to the Company's
purchase of Securities required to be repurchased by the Company under Sections
1013 and 1015.
"Redemption Date" when used with respect to any Security to be
redeemed, means the date fixed for 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 Period" means the four most recently completed fiscal
quarters for which financial information is available preceding the date of a
transaction giving rise to the need to make a financial calculation.
"Regular Record Date", for the interest payable on any Interest Payment
Date means the fifteenth day (whether or not a Business Day), as the case may
be, next preceding such Interest Payment Date.
"Responsible Officer", when used with respect to the Trustee, means the
chairman or any vice chairman of the board of directors, the chairman or any
vice-chairman of the executive committee of the board of directors, the chairman
of the trust committee corporate, the president, any vice president, the
secretary, any assistant secretary, any other officer 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 trust matter,
any other officer to whom such matter is referred because of his knowledge of
and familiarity with the particular subject.
"Restricted Payment" means (i) any dividend or other distribution on
any shares of the Company's Capital Stock, provided that a dividend or other
distribution consisting of the Capital Stock of an Unrestricted Subsidiary shall
not constitute a Restricted Payment except to the extent of the portion thereof
that is equal to the portion of the total Investment in such Unrestricted
Subsidiary that is represented by the Investment that was made pursuant to
clause (vii) of the definition of "Permitted Payment," (ii) any payment on
account of the purchase, redemption, retirement or acquisition for value of the
Company's Capital Stock, (iii) any defeasance, redemption, purchase or other
acquisition or retirement for value prior to the scheduled
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maturity of any Debt ranked subordinate in right of payment to the Securities
other than repayment of Debt of the Company to a Restricted Subsidiary or an
Eligible Joint Venture, (iv) any Investment made in a Person (other than the
Company or any Restricted Subsidiary or any Eligible Joint Venture) and (v)
designating a Restricted Subsidiary as an Unrestricted Subsidiary (the
Restricted Payment made upon such a designation to be determined as the fair
market value of the Capital Stock of such Restricted Subsidiary owned directly
or indirectly by the Company at the time of the designation). Notwithstanding
the foregoing, "Restricted Payment" shall not include any Permitted Payment,
except that any payment made pursuant to clauses (iv) and (v) of the definition
of "Permitted Payment" shall be counted in the calculation set forth in clause
(c) of Section 1010(a).
"Restricted Subsidiary" means any Subsidiary of the Company that is not
an Unrestricted Subsidiary.
"S&P" means Standard & Poor's Corporation.
"Securities" has the meaning stated in the first recital of this
Indenture and, more particularly, means any Security or Securities authenticated
and delivered under this Indenture; provided, however, that, if at any time
there is more than one Person acting as Trustee under this Indenture,
"Securities" with respect to the Indenture as to which such Person is Trustee
shall have the meaning stated in the first recital of this Indenture and shall
more particularly mean Securities authenticated and delivered under this
Indenture, exclusive, however, of Securities of any series as to which such
Person is not Trustee.
"Securities Act" means the Securities Act of 1933 and any statute
successor thereto, in each case as amended from time to time.
"Senior Debt" means the principal of and interest on all Debt of the
Company whether created, Incurred or assumed before, on or after the Issue Date
of the Securities (other than the Securities), provided that Senior Debt shall
not include (i) Debt that, when Incurred and without respect to any election
under Section 1111(b) of Title 11, United States Code, was without recourse to
the Company, (ii) Debt of the Company to any Affiliate and (iii) any Debt of the
Company that, by the terms of the instrument creating or evidencing the same, is
specifically designated as being junior in right of payment to the Securities or
any other Debt of the Company.
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"Significant Subsidiary" means a Restricted Subsidiary that is a
"significant subsidiary" as defined in Rule 1-02(v) of Regulation S-X under the
Securities Act and the Exchange Act.
"Special Record Date" for the payment of any Defaulted Interest means a
date fixed by the Trustee pursuant to Section 310.
"Stated Maturity" means, with respect to any debt security or any
installment of interest thereon, the date specified in such debt security as the
fixed date on which any principal of such debt security or any such installment
of interest is due and payable.
"Subsidiary" means, with respect to any Person including, without
limitation, the Company and its Subsidiaries, (i) any corporation or other
entity of which such Person owns, directly or indirectly, a majority of the
Capital Stock or other ownership interests and has ordinary voting power to
elect a majority of the board of directors or other persons performing similar
functions, and (ii) with respect to the Company and, as appropriate, its
Subsidiaries, any Permitted Joint Venture, including, without limitation, Coso
Land Company Joint Venture, Coso Finance Partners, Coso Energy Developers and
Coso Power Developers, provided that in respect of any Subsidiary that is not a
Permitted Joint Venture, the Company must exercise control over such Subsidiary
and its Property to the same extent as a Permitted Joint Venture.
"Subsidiary Refinancing Debt" means Debt issued in exchange for, or the
proceeds of which are used to refinance (including to purchase), outstanding
Debt of a Restricted Subsidiary or an Eligible Joint Venture, including, without
limitation, Construction Financing, in an amount (or, if such new Debt provides
for an amount less than the principal amount thereof to be due and payable upon
a declaration of acceleration thereof, with an original issue price) not to
exceed the amount so exchanged or refinanced (plus accrued interest or dividends
and all fees, premiums (in excess of accreted value) and expenses related to
such exchange or refinancing), for which purpose the amount so exchanged or
refinanced shall not exceed, in the case of Debt, the lesser of (x) the
principal amount of the Debt so exchanged or refinanced and (y) if the Debt
being exchanged or refinanced was issued with an original issue discount, the
accreted value thereof (as determined in accordance with GAAP) at the time of
such exchange or refinancing, and, in the case of an equity investment made in
lieu or as part of Construction Financing Debt, in an amount not to exceed the
capital and surplus shown on the balance sheet of such Restricted Subsidiary or
Eligible Joint Venture, provided that (A) such Debt shall be
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Non-Recourse, if the Debt so exchanged or refinanced is Non-Recourse and (B) the
Average Life of the new Debt shall be equal to or greater than the Average Life
of the Debt to be exchanged or refinanced, provided further that upon the first
refinancing of any Construction Financing of a Restricted Subsidiary or an
Eligible Joint Venture, (i) the amount of the Subsidiary Refinancing Debt issued
in exchange for or to refinance such Construction Financing shall not be limited
by this provision and (ii) the Subsidiary Refinancing Debt issued in exchange
for or to refinance such Construction Financing shall not be subject to the
provisions of the foregoing clause (B) of this provision.
"Trade Payables" means, with respect to any Person, any accounts
payable or any other indebtedness or monetary obligation to trade creditors
Incurred, created, assumed or Guaranteed by such Person or any of its
Subsidiaries or Joint Ventures arising in the ordinary course of business.
"Trustee" means the Person named as the "Trustee" in the first
paragraph of this Indenture 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 Indenture was executed; provided that in the event
the Trust Indenture Act of 1939 is amended after such date, "Trust Indenture
Act" shall mean, to the extent required by any such amendment, the Trust
Indenture Act of 1939 as so amended.
"Unrestricted Subsidiary" means any Subsidiary of the Company that
becomes an Unrestricted Subsidiary in accordance with the requirements set forth
in the next sentence. The Company may designate any Restricted Subsidiary as an
Unrestricted Subsidiary if (a) such designation is in compliance with Section
1010(a) and (b) after giving effect to such designation, such Subsidiary does
not own, directly or indirectly, a majority of the Capital Stock or the Voting
Stock of any other Restricted Subsidiary unless such other Restricted Subsidiary
is designated as an Unrestricted Subsidiary at the same time. Any such
designation shall be effected by filing with the Trustee an Officers'
Certificate certifying that such designation complies with the requirements of
the immediately preceding sentence. No Debt or other obligation of an
Unrestricted Subsidiary may be with recourse to the Company, any of its
Restricted Subsidiaries, any Eligible Joint Venture or any of their respective
Property except to the extent otherwise permitted by the provisions of this
Indenture. An Unrestricted Subsidiary may be designated as a Restricted
Subsidiary if (i)
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all the Debt of such Unrestricted Subsidiary could be Incurred under Section
1009, or (ii) any portion of such Debt could not be incurred thereunder, if the
Company could borrow all such remaining Debt pursuant to Section 1008(a).
"U.S. Government Obligations" means securities that are (i) direct
obligations of the U.S. for the payment of which its full faith and credit is
pledged or (ii) obligations of a Person controlled or supervised by and acting
as an agency or instrumentality of the U.S., the payment of which is
unconditionally guaranteed as a full faith and credit obligation by the U.S.,
that, in either case are not callable or redeemable at the option of the issuer
thereof, and shall also include a depositary receipt issued by a bank or trust
company as custodian with respect to any such U.S. Government Obligations or a
specific payment of interest on or principal of any such U.S. Government
Obligation held by such custodian for the account of the holder of a depositary
receipt, provided that (except as required by law) such custodian is not
authorized to make any deduction from the amount payable to the holder of such
depositary receipt from any amount received by the custodian in respect of the
U.S. Government Obligation or the specific payment of interest on or principal
of the U.S. Government Obligation evidenced by such depositary receipt.
"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".
"Voting Stock" means, with respect to any Person, Capital Stock of any
class or kind ordinarily having the power to vote for the election of directors
(or persons fulfilling similar responsibilities) of such Person.
Other definitions:
Defined Term Defined in Section
- ------------ ------------------
Act 104
Agent Members 201(b)
Change of Control Offer 1013(b)
Change of Control Purchase Date 1013(b)
Covenant Defeasance 1203
CUSIP Numbers 307(f)
Defaulted Interest 310
Defeasance 1202
Excess Proceeds 1015(a)
Excess Proceeds Offer 1015(a)
Excess Proceeds Purchase Date 1015(e)
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Event of Default 501
Ineligible Investments 1021
Notice of Default 501(4)
Paying Agent 304
Percentage Limit 1021
Record Expiration Date 104
Security Register 304
Security Registrar 304
Surviving Entity 801
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 such certificates and opinions as may be required under the Trust
Indenture Act. Each such certificate or opinion shall be given in the form of an
Officers' Certificate, if to be given by officers of the Company, or an Opinion
of Counsel, if to be given by counsel, and shall comply with the requirements of
the Trust Indenture Act and any other requirement set forth in this Indenture.
Every certificate or opinion with respect to compliance with a
condition or covenant provided for in this Indenture shall include:
(1) a statement that each individual signing such certificate or
opinion has read such covenant or condition and the definitions herein
relating thereto;
(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, he has
made such examination or investigation as is necessary to enable him 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.
--------------------------------------
If several matters are required to be certified by, or covered by an
opinion of, any specified Person, it is not
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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 opinion or representations
with respect to the matters upon which his 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.
If 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.
-----------------------------
Any request, demand, authorization, direction, notice, consent, waiver
or other action provided or permitted by this Indenture to be given or taken by
Holders of the Outstanding Securities of all series or one or more series, as
the case may be, 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. Except as herein otherwise expressly provided, such action
shall become effective when such instrument or instruments are delivered to the
Trustee and, if it is hereby expressly required, to the Company. Such instrument
or instruments (and the action embodied therein and evidenced thereby) are
herein 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 104.
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The fact and date of the execution by 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. If 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 that the
Trustee deems sufficient.
The ownership of Securities shall be proved by the Security register
kept by the Security Registrar.
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.
The Company may set any day as a record date for the purpose of
determining the Holders of Outstanding Securities entitled to give or take any
request, demand, authorization, direction, notice, consent, waiver or other
action provided or permitted by this Indenture to be given or taken by Holders
of Securities, provided that the Company may not set a record date for, and the
provisions of this paragraph shall not apply with respect to, the giving or
making of any notice, declaration, request or direction referred to in the next
paragraph. If any record date is set pursuant to this paragraph, the Holders of
Outstanding Securities on such record date, and no other Holders, shall be
entitled to take the relevant actions 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 Record Expiration Date by
Holders of the requisite principal amount of Outstanding Securities on such
record date; and provided further that for the purpose of determining whether
Holders of the requisite principal amount of such Securities have taken such
action, no Security shall be deemed to have been Outstanding on such record date
unless it is also Outstanding on the date such action is to become effective.
Nothing in this paragraph shall 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
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by any Person be cancelled and of no effect), nor shall anything in this
paragraph be construed to render ineffective any action taken by Holders of the
requisite principal amount of Outstanding Securities on the date such action is
taken. Promptly after any record date is set pursuant to this paragraph, the
Company, at its own expense, shall cause notice of such record date, the
proposed action by Holders and the applicable Record Expiration Date to be given
to the Trustee in writing and to each Holder of Securities in the manner set
forth in Section 106.
The Trustee may set any day as a record date for the purpose of
determining the Holders of Outstanding Securities 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 paragraph, the Holders of Outstanding
Securities on such record date, and no other Holders, 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 shall be
effective hereunder unless taken on or prior to the applicable Record Expiration
Date by Holders of the requisite principal amount of Outstanding Securities on
such record date; and provided further that for the purpose of determining
whether Holders of the requisite principal amount of such Securities have taken
such action, no Security shall be deemed to have been Outstanding on such record
date unless it is also Outstanding on the date such action is to become
effective. Nothing in this paragraph shall be construed to prevent the Trustee
from setting a new record date for any action (whereupon the record date
previously set shall automatically and without any action by any Person be
cancelled and of no effect), nor shall anything in this paragraph be construed
to render ineffective any action taken by Holders of the requisite principal
amount of Outstanding Securities on the date such action is taken. Promptly
after any record date is set pursuant to this paragraph, the Trustee, at the
Company's expense, shall cause notice of such record date, the matter(s) to be
submitted for potential action by Holders and the applicable Record Expiration
Date to be given to the Company in writing and to each Holder of Securities in
the manner set forth in Section 106.
With respect to any record date set pursuant to this Section 104, the
party hereto that sets such record date may designate any day as the "Record
Expiration Date" and from time to time may change the Record Expiration Date to
any earlier or later day, provided that no such change shall be effective unless
notice of the proposed new Record Expiration Date is given to the other party
hereto in writing, and to each Holder of Securities
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in the manner set forth in Section 106, on or before the existing Record
Expiration Date. If a Record Expiration Date is not designated with respect to
any record date set pursuant to this Section 104, the party hereto that set such
record date shall be deemed to have initially designated the 180th day after
such record date as the Record Expiration Date with respect thereto, subject to
its right to change the Record Expiration Date as provided in this paragraph.
Notwithstanding the foregoing, no Record Expiration Date shall be later than the
180th day after the applicable record date.
Without limiting the foregoing, a Holder entitled hereunder 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.
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 hereunder if made, given, furnished or filed in writing and
mailed, first-class postage prepaid, to or with the Trustee at its Corporate
Trust Office, Attention: Corporate Trust Administration, or
(2) the Company by the Trustee or by any Holder shall be sufficient for
every purpose hereunder (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 Indenture, Attention: General Counsel, or at any other address
previously furnished in writing to the Trustee by the Company.
SECTION 106. Notice to Holders; Waiver.
-------------------------
When this Indenture provides for notice to Holders of any event, such
notice shall be sufficiently given (unless otherwise herein expressly provided)
if in writing and mailed, first-class postage prepaid, to each Holder affected
by such event, at such Holder's 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
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giving of such notice. Neither the failure to mail or give such notice as
otherwise provided herein, nor any defect in any notice so mailed or given to
any particular Holder shall affect the sufficiency of such notice with respect
to other Holders. When 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 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 hereof limits, qualifies or conflicts with a provision
of the Trust Indenture Act that is required under such Act to be 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 herein, the Cross-Reference Table and
the Table of Contents 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 any Security shall be
invalid, illegal or unenforceable, the validity, legality and enforceability of
the remaining provisions shall not in any way be affected or impaired thereby,
it being intended that all of the provisions hereof shall be enforceable to the
full extent permitted by law.
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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 hereto and their successors
hereunder and the Holders of Securities, any benefit or any legal or equitable
right, remedy or claim under this Indenture. This Indenture may not be used to
interpret another indenture, loan agreement or debt agreement of the Company or
any of its Subsidiaries. No such other indenture or loan or debt agreement may
be utilized to interpret this Indenture.
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, INCLUDING SECTION 5-1401 OF
THE NEW YORK GENERAL OBLIGATIONS LAW, BUT OTHERWISE WITHOUT REGARD TO PRINCIPLES
OF CONFLICT OF LAWS. THE COMPANY HEREBY IRREVOCABLY SUBMITS TO THE JURISDICTION
OF ANY NEW YORK STATE COURT SITTING IN THE BOROUGH OF MANHATTAN IN THE CITY OF
NEW YORK OR ANY FEDERAL COURT SITTING IN THE BOROUGH OF MANHATTAN IN THE CITY OF
NEW YORK IN RESPECT OF ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING
TO THIS INDENTURE AND THE SECURITIES, AND IRREVOCABLY ACCEPTS FOR ITSELF AND IN
RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, JURISDICTION OF THE
AFORESAID COURTS. THE COMPANY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT THAT IT
MAY EFFECTIVELY DO SO UNDER APPLICABLE LAW, TRIAL BY JURY AND ANY OBJECTION THAT
IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF THE VENUE OF ANY SUCH SUIT, ACTION
OR PROCEEDING BROUGHT IN ANY SUCH COURT AND ANY CLAIM THAT ANY SUCH SUIT, ACTION
OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT
FORUM. NOTHING HEREIN SHALL AFFECT THE RIGHT OF THE TRUSTEE OR ANY HOLDER OF THE
SECURITIES TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO COMMENCE
LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST THE COMPANY IN ANY OTHER
JURISDICTION.
SECTION 113. Legal Holidays.
--------------
If any Interest Payment Date, Redemption Date, Purchase Date or Stated
Maturity of any Security shall not be a Business Day, then (notwithstanding any
other provision of this Indenture or of any Security other than a provision in
the Securities of any series which specifically states that such provision shall
apply in lieu of this Section) payment of interest or principal (and premium, if
any) need not be made on such date but may be made on the next succeeding
Business Day with the same force and effect (including with respect to the
accrual of interest) as if
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made on the Interest Payment Date, Redemption Date, Purchase Date or at the
Stated Maturity.
SECTION 114. No Recourse Against Others.
--------------------------
A director, officer, employee, stockholder or incorporator, as such, of
the Company shall not have any liability for any obligations of the Company
under the Securities or this Indenture or for any claim based on, in respect of
or by reason of such obligations or their creation. Each Holder by accepting a
Security waives and releases all such liability. Such waiver and release are
part of the consideration for the issuance of the Securities.
SECTION 115. Duplicate Originals.
-------------------
All parties may sign any number of copies or counterparts of this
Indenture. Each signed copy or counterpart shall be an original, but all of them
together shall represent the same agreement.
ARTICLE TWO
SECURITY FORM
SECTION 201. Global and Certificated Securities.
----------------------------------
The Securities of each series shall be substantially in the form as set
forth in Exhibit A hereto or as shall be established in one or more indentures
supplemental hereto or approved from time to time by or pursuant to a Board
Resolution in accordance with Section 301. The Securities may have such
appropriate insertions, omissions, substitutions and other variations as are
required or permitted by this Indenture or any indenture supplemental hereto,
and may have notations, legends or endorsements required by law, stock exchange
rule, agreements to which the Company is subject, if any, or usage (provided
that any such notation, legend or endorsement is in a form acceptable to the
Company). Each Security shall be dated the date of its authentication.
(a) Global Securities. Securities of or within a series may be issued
in the form of one or more permanent global securities in definitive, fully
registered form with the global security legend set forth in Section 307 (each,
a "Global Security"), which shall be deposited on behalf of the purchasers of
such Securities represented thereby with the Trustee, at its New York office, as
custodian for the Depositary (or with such other custodian as the Depositary may
direct), and registered in the name of the Depositary or a nominee of the
Depositary, duly
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executed by the Company and authenticated by the Trustee as hereinafter
provided. The aggregate principal amount of the Global Security may from time to
time be increased or decreased by adjustments made on the records of the Trustee
and the Depositary or its nominee as hereinafter provided.
The Depositary Trust Company shall act as initial Depositary. If at any
time the Depositary for the Securities of a series represented by one or more
Global Securities notifies the Company that it is unwilling or unable to
continue as Depositary of such Securities or if at any time the Depositary shall
no longer be eligible as provided in the second sentence of the definition of
"Depositary" and a successor Depositary is not appointed by the Company within
90 days after the Company receives such notice or becomes aware of such
condition, the Company shall promptly execute, and the Trustee shall promptly
authenticate and deliver, Securities in Certificated form, in authorized
denominations, and in an aggregate principal amount equal to the principal
amount of the Global Security or Securities then outstanding in exchange for
such Global Security or Securities, and this Section 201(a) and Section 201(b)
shall no longer be applicable to the Securities. In addition, the Company may at
any time and in its sole discretion determine that the Securities of any series
shall no longer be represented by Global Securities. In such event the Company
shall promptly execute, and the Trustee, upon receipt of a Company Order
evidencing such determination by the Company, shall promptly authenticate and
deliver, Securities of such series in Certificated form without coupons, in
authorized denominations and in an aggregate principal amount equal to the
principal amount of the Global Security or Securities then outstanding in
exchange for such Global Security or Securities and this Section 201(a) and
Section 201(b) shall no longer be applicable to the Securities. Upon the
exchange of the Global Securities for such Securities in Certificated form, in
authorized denominations, such Global Securities shall be cancelled by the
Trustee. Such Securities in Certificated form issued in exchange for the Global
Securities pursuant to this Section 201(a) and Section 201(b) shall be
registered in such names and in such authorized denominations as the Depositary,
pursuant to instructions from its direct or indirect participants or otherwise,
shall instruct the Trustee. The Trustee shall deliver such Securities to the
Persons in whose names such Securities are so registered.
Notwithstanding any other provision hereof to the contrary, so long as
the outstanding Securities of any series are represented by one or more Global
Securities, the Company shall pay or cause to be paid the principal of, and
interest on, such Global Securities to the Depositary or its nominee by wire
transfer of immediately available funds on the date such payments
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are due in accordance with the operational arrangements of the Depositary, as
such arrangements are amended from time to time.
(b) Book-Entry Provisions. This Section 201(b) shall apply only to the
Global Security or Securities deposited with or on behalf of the Depositary.
The Company shall execute and the Trustee shall, in accordance with
this Section 201(b), authenticate and deliver initially one or more Global
Securities that (a) shall be registered in the name of the Depositary for such
Global Security or Securities or the nominee of such Depositary and (b) shall be
delivered by the Trustee to such Depositary or pursuant to such Depositary's
instructions or held by the Trustee as custodian for the Depositary.
Members of, or participants in, the Depositary ("Agent Members") shall
have no rights under this Indenture with respect to the Global Security or
Securities held on their behalf by the Depositary or by the Trustee as the
custodian of the Depositary or under such Global Security, and the Depositary
may be treated by the Company, the Trustee and any agent of the Company or the
Trustee as the absolute owner of such Global Security or Securities for all
purposes whatsoever. Notwithstanding the foregoing, nothing herein shall prevent
the Company, the Trustee or any agent of the Company or the Trustee from giving
effect to any written certification, proxy or other authorization furnished by
the Depositary or impair, as between the Depositary and its Agent Members, the
operation of customary practices of such Depositary governing the exercise of
the rights of a holder of a beneficial interest in the Global Security or
Securities.
(c) Certificated Securities. Except as provided in this Section or
Section 307 or Section 309, owners of beneficial interests in the Global
Security or Securities will not be entitled to receive physical delivery of
Certificated Securities.
SECTION 202. Form of Trustee's Certificate of Authentication.
-----------------------------------------------
The Trustee's certificate of authentication shall be in substantially
the following form:
This is one of the Securities of the series designated therein referred
to in the within-mentioned Indenture.
Dated:________________________
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IBJ SCHRODER BANK & TRUST COMPANY,
as Trustee
By:________________________________
Authorized Signatory
ARTICLE THREE
THE SECURITIES
SECTION 301. Amount Unlimited; Issuable in Series.
------------------------------------
The aggregate principal amount of Securities which may be authenticated
and delivered under this Indenture is unlimited.
The Securities may be issued in one or more series. Any or all of the
following shall either be established in one or more Board Resolutions or
pursuant to authority granted by one or more Board Resolutions and, subject to
Section 303, set forth, or determined in the manner provided, in an Officers'
Certificate, or set forth in the form of Securities attached hereto in Exhibit A
or shall be established in one or more indentures supplemental hereto, prior to
the issuance of Securities of any series, as applicable (each of which (except
for the matters set forth in clauses (1), (2) and (15) below), if so provided,
may be determined from time to time by the Company with respect to unissued
Securities of the series when issued from time to time):
(1) the title of the Securities of the series (which shall distinguish
the Securities of such series from all other series of Securities);
(2) any limit upon the aggregate principal amount of the Securities of
the series that may be authenticated and delivered under this Indenture
(except for Securities authenticated and delivered upon registration of
transfer of, or in exchange for, or in lieu of, other Securities of the
series pursuant to Section 307, 308, 309, 906, 1013 or 1108);
(3) the date or dates, or the method by which such date or dates will
be determined or extended, on which the principal of the Securities of the
series shall be payable;
(4) the rate or rates at which the Securities of the series shall bear
interest, if any, or the method by which such rate or rates shall be
determined, the date or dates from which such interest shall accrue or the
method by which such date or dates shall be determined, the Interest Payment
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Dates on which such interest will be payable and the Regular Record Date, if
any, for the interest payable on any Security on any Interest Payment Date,
or the method by which such date shall be determined, and the basis upon
which interest shall be calculated if other than that of a 360-day year of
twelve 30-day months;
(5) the place or places, if any, other than or in addition to the
Borough of Manhattan, The City of New York, where the principal of (and
premium, if any), interest, if any, on Securities of the series shall be
payable, any Securities of the series may be surrendered for registration of
transfer, Securities of the series may be surrendered for exchange or
conversion and notices or demands to or upon the Company in respect of the
Securities of the series and this Indenture may be served;
(6) the period or periods within which, the price or prices at which,
and other terms and conditions upon which Securities of the series may be
redeemed, in whole or in part, at the option of the Company, if the Company
is to have the option;
(7) if other than denominations of $1,000 and any integral multiple
thereof, the denominations in which any Securities of the series shall be
issuable;
(8) if other than the Trustee, the identity of each Security Registrar
and/or Paying Agent;
(9) if other than the principal amount thereof, the portion of the
principal amount of Securities of the series that shall be payable upon
declaration of acceleration thereof pursuant to Section 502 or, if
applicable, the portion of the principal amount of Securities of the series
that is convertible in accordance with the provisions of this Indenture or
the method by which such portion shall be determined;
(10) whether the amount of payments of principal of (and premium, if
any) or interest, if any, on the Securities of the series may be determined
with reference to an index, formula or other method (which index, formula or
method may be based, without limitation, on one or more currencies, currency
units, composite currencies, commodities, equity indices or other indices),
and the manner in which such amounts shall be determined;
(11) provisions, if any, granting special rights to the Holders of
Securities of the series upon the occurrence of
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such events as may be specified (which rights shall not adversely affect the
rights of any holders of Securities of any other series or the rights of the
Trustee);
(12) any deletions from, modifications of or additions to the Events of
Default or covenants of the Company with respect to Securities of the
series, whether or not such Events of Default or covenants are consistent
with the Events of Default or covenants set forth herein;
(13) whether any Securities of the series are to be issuable initially
in temporary global form and whether any Securities of the series are to be
issuable in permanent global form and, if so, whether beneficial owners of
interests in any such permanent global Security may exchange such interests
for Securities of such series and of like tenor of any authorized form and
denomination and the circumstances under which any such exchanges may occur,
if other than in the manner provided in Section 307, and, if Securities of
the series are to be issuable as a global Security, the identity of the
depositary for such series;
(14) the date as of which any temporary global Security representing
Outstanding Securities of the series shall be dated if other than the date
of original issuance of the first Security of the series to be issued;
(15) the Person to whom any interest on any Security of the series
shall be payable, if other than 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, and the extent to which, or
the manner in which, any interest payable on a temporary global Security on
an Interest Payment Date will be paid if other than in the manner provided
in Section 307;
(16) the applicability, if any, of Sections 1202 and/or 1203 to the
Securities of the series and any provisions in modification of, in addition
to or in lieu of any of the provisions of Article Twelve;
(17) if the Securities of such series are to be issuable in definitive
form (whether upon original issue or upon exchange of a temporary Security
of such series) only upon receipt by the Trustee or the Company of certain
certificates or other documents or satisfaction of other conditions, then
the form and/or terms of such certificates, documents or conditions;
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(18) if the Securities of the series are to be issued upon the exercise
of warrants, the time, manner and place for such Securities to be
authenticated and delivered;
(19) the obligation, if any, of the Company to permit the conversion of
the Securities of such series into the Company's Common Stock or Preferred
Stock, and the terms and conditions upon which such conversion shall be
effected (including, without limitation, the initial conversion price or
rate, the conversion period, any adjustment of the applicable conversion
price, any requirements relative to reservation of shares for purposes of
conversion and any other provision in addition to or in lieu of those set
forth in this Indenture or any indenture supplemental hereto relative to
such obligation); and
(20) any other terms of the series (which terms shall not be
inconsistent with the provisions of this Indenture).
All Securities of any one series shall be substantially identical
except as to denomination and except as may otherwise be provided in or pursuant
to any such Board Resolution (subject to Section 303) and set forth in such
Officers' Certificate or in any such indenture supplemental hereto. All
Securities of any one series need not be issued at the same time and, unless
otherwise provided, a series may be reopened, without the consent of the
Holders, for issuances of additional Securities of such series.
If any of the terms of the Securities of any series are established by
action taken pursuant to one or more Board Resolutions, a copy of an appropriate
record of such action(s) shall be certified by the Secretary or an Assistant
Secretary of the Company and delivered to the Trustee at or prior to the
delivery of the Officers' Certificate setting forth the terms of the Securities
of such series.
SECTION 302. Denominations. The Securities of each series shall be
issuable in such denominations as shall be specified as contemplated by Section
301. In the absence of any such provisions with respect to the Securities of any
series, the Securities of such series, other than Securities issued in global
form (which may be of any denomination), shall be issuable in denominations of
$1,000 and any integral multiple thereof.
SECTION 303. Execution and Authentication.
----------------------------
The Securities shall be executed on behalf of the Company by its
Chairman of the Board, its President or one of its Vice Presidents, attested by
its Secretary or one of its
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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 of any series 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.
If all the Securities of any series are not to be issued at one time
and if the Board Resolution or supplemental indenture establishing such series
shall so permit, such Company Order may set forth procedures acceptable to the
Trustee for the issuance of such Securities and determining the terms of
particular Securities of such series, such as interest rate or formula, maturity
date, date of issuance and date from which interest shall accrue. In
authenticating such Securities, and accepting the additional responsibilities
under this Indenture in relation to such Securities, the Trustee shall be
entitled to receive, and (subject to Trust Indenture Act Section 315(a) through
315(d)) shall be fully protected in relying upon,
(i) an Opinion of Counsel stating that
(a) the form or forms of such Securities have been established in
conformity with the provisions of this Indenture;
(b) the terms of such Securities have been established in conformity
with the provisions of this Indenture; and
(c) such Securities, when completed by appropriate insertions and
executed and delivered by the Company to the Trustee for authentication in
accordance with this Indenture, authenticated and delivered by the Trustee
in accordance with this Indenture and issued by the Company in the manner
and subject to any conditions specified in such Opinion of Counsel, will
constitute legal, valid and binding obligations of the Company, enforceable
in accordance with their terms, subject to applicable bankruptcy,
insolvency,
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reorganization and other similar laws of general applicability relating to
or affecting the enforcement of creditors' rights, to general equitable
principles and to such other qualifications as such counsel shall conclude
do not materially affect the rights of Holders of such Securities; and
(ii) an Officers' Certificate stating that all conditions precedent provided
for in this Indenture relating to the issuance of the Securities have been
complied with and that, to the best of the knowledge of the signers of such
certificate, that no Event of Default with respect to any of the Securities
shall have occurred and be continuing.
If such form or terms have been so established, the Trustee shall not
be required to authenticate such Securities if the issue of such Securities
pursuant to this Indenture will affect the Trustee's own rights, duties,
obligations or immunities under the Securities and this Indenture or otherwise
in a manner which is not reasonably acceptable to the Trustee.
Notwithstanding the provisions of Section 301 and of the preceding
paragraph, if all the Securities of any series are not to be issued at one time,
it shall not be necessary to deliver an Officers' Certificate otherwise required
pursuant to Section 301 or a Company Order, or an Opinion of Counsel or an
Officers' Certificate otherwise required pursuant to the preceding paragraph at
the time of issuance of each Security of such series, but such order, opinion
and certificates, with appropriate modifications to cover such future issuances,
shall be delivered at or before the time of issuance of the first Security of
such series.
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.
SECTION 304. Registrar and Paying Agent.
--------------------------
The Company shall maintain an office or agency where each series of
Securities may be presented for registration of transfer or for exchange (the
"Security Registrar") and an office
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or agency where each series of Securities may be presented for payment (the
"Paying Agent"). The Security Registrar shall keep a register (the "Security
Register") for each series of Securities and of their transfer and exchange. The
Company may have one or more co-registrars and one or more additional paying
agents. The term "Paying Agent" includes any additional paying agent.
The Company shall enter into an appropriate agency agreement with any
Security Registrar, Paying Agent or co-registrar not a party to this Indenture,
which shall incorporate the terms of the Trust Indenture Act. The agreement
shall implement the provisions of this Indenture that relate to such agent. The
Company shall notify the Trustee of the name and address of any such agent. If
the Company fails to maintain a Security Registrar or Paying Agent, the Trustee
shall act as such and shall be entitled to appropriate compensation therefor
pursuant to Section 607. The Company or any of its U.S. wholly owned
Subsidiaries may act as Paying Agent, Security Registrar, co-registrar or
transfer agent.
The Company initially appoints the Trustee as Security Registrar and
Paying Agent in connection with each series of Securities.
SECTION 305. Paying Agent To Hold Money in Trust.
At least one Business Day prior to each due date of the principal and
interest on any Security, the Company shall deposit with the Paying Agent a sum
sufficient to pay such principal and interest when so becoming due. The Company
shall require each Paying Agent (other than the Trustee) to agree in writing
that the Paying Agent shall hold in trust for the benefit of Holders or the
Trustee all money held by the Paying Agent for the payment of principal of or
interest on the Securities and shall notify the Trustee of any default by the
Company in making any such payment. If the Company or one of its U.S. wholly
owned Subsidiaries acts as Paying Agent, it shall segregate the money held by it
as Paying Agent and hold it as a separate trust fund. The Company at any time
may require a Paying Agent (other than the Trustee) to pay all money held by it
to the Trustee and to account for any funds disbursed by the Paying Agent. Upon
complying with this Section, the Paying Agent shall have no further liability
for the money delivered to the Trustee.
SECTION 306. Holder Lists.
------------
The Trustee shall preserve in as current a form as is reasonably
practicable the most recent list available to it of the names and addresses of
Holders. If the Trustee is not the
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Security Registrar, the Company shall furnish to the Trustee, in writing at
least five Business Days before each interest payment date and at such other
times as the Trustee may request in writing, a list in such form and as of such
date as the Trustee may reasonably require of the names and addresses of
Holders.
SECTION 307. Transfer and Exchange of Global Securities.
------------------------------------------
(a) Transfer and Exchange of Global Securities. (i) The transfer and
exchange of the Global Security or Securities of any series or beneficial
interests therein shall be effected through the Depositary, in accordance with
this Indenture (including applicable restrictions on transfer set forth herein,
if any) and the procedures of the Depositary therefor, if applicable.
(ii) Notwithstanding any other provisions of this Indenture (other
than the provisions set forth in Section 307), the Global Security of any
series may not be transferred as a whole except 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.
(b) Cancellation or Adjustment of Global Securities. At such time as
all beneficial interests in the Global Securities of any series have either been
exchanged for Certificated Securities of the same series, redeemed, repurchased
or cancelled, such Global Securities of such series shall be returned to the
Trustee for cancellation or retained and cancelled by the Trustee. At any time
prior to such cancellation, if any beneficial interests in the Global Securities
of any series are exchanged for Certificated Securities of the same series,
redeemed, repurchased or cancelled, the principal amount of Securities
represented by such Global Securities of such series shall be reduced and an
adjustment shall be made by the Trustee or the custodian to reflect such
reduction on the books and records of the custodian for such Global Securities
of such series with respect to such Global Securities of such series.
(c) Obligations with Respect to Transfers and Exchanges of Securities.
-----------------------------------------------------------------
(i) To permit registrations of transfers and exchanges, the
Company shall execute and the Trustee shall authenticate within a reasonable
time Certificated Securities, and Global Securities at the Security
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Registrar's or co-registrar's written request accompanied by an equal
principal amount of Securities to be cancelled and, if the Security
Registrar is not the Trustee, the Security Registrar shall provide to the
Trustee an opinion of counsel acceptable to the Trustee and the Company to
the effect that the Security Registrar has received all of the instruments
and documents required by this Section 307 for such transfer or exchange.
(ii) No service charge shall be made for any 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.
(iii) Prior to the due presentation for registration of transfer
of any Security, the Company, the Trustee, the Paying Agent, the Security
Registrar or any co-registrar may deem and treat the person in whose name a
Security is registered as the absolute owner of such Security for the
purpose of receiving payment of principal of and interest on such Security
and for all other purposes whatsoever, whether or not such Security is
overdue, and none of the Company, the Trustee, the Paying Agent, the
Security Registrar or any co-registrar shall be affected by notice to the
contrary.
(iv) All Securities issued upon any transfer or exchange pursuant
to the terms of this Indenture shall evidence the same debt and shall be
entitled to the same benefits under this Indenture as the Securities
surrendered upon such transfer or exchange.
(d) No Obligation of the Trustee.
----------------------------
(i) The Trustee (whether in its capacity as trustee, Security
Registrar or Paying Agent) shall have no responsibility or obligation to any
beneficial owner of any Global Security, a member of, or a participant in
the Depositary or other Person with respect to the accuracy of the records
of the Depositary or its nominee or of any participant or member thereof,
with respect to any ownership interest in the Securities of any series or
with respect to the delivery to any participant, member, beneficial owner or
other Person (other than the Depositary) of any notice (including any notice
of redemption) or the payment of any amount, under or with respect to such
Securities. All notices and communications to be given to the Holders and
all payments to be made to Holders under the Securities shall be given or
made only to or upon the order of the registered Holders (which shall be the
Depositary or its
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nominee in the case of a Global Security). The rights of beneficial owners
in the Global Securities shall be exercised only through the Depositary
subject to the applicable rules and procedures of the Depositary. The
Trustee (whether in its capacity as trustee, Security Registrar or Paying
Agent) may rely and shall be fully protected in relying upon information
furnished by the Depositary with respect to its members, participants and
any beneficial owners.
(ii) The Trustee (whether in its capacity as trustee, Security
Registrar or Paying Agent) shall have no obligation or duty to monitor,
determine or inquire as to compliance with any restrictions on transfer
imposed under this Indenture or under applicable law, regulations or
exchange rules with respect to any transfer of any interest in any Security
(including any transfers between or among Depositary participants, members
or beneficial owners in the Global Securities), other than to require
delivery of such certificates and other documentation or evidence as are
expressly required by, and to do so if and when expressly required by, the
terms of this Indenture, and to examine the same to determine substantial
compliance as to form with the express requirements hereof.
(e) Each Global Security will also bear the following legend:
"This Security is issued in global form and registered in the name
of the Depositary or a nominee thereof. Unless and until it is exchanged in
whole or in part for Securities in definitive form in accordance with the
terms hereof and of the Indenture referred to on the reverse hereof, this
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. Unless this certificate is presented by an authorized
representative of the Depositary to the Company or its agent for
registration of transfer, exchange or payment, and any certificate issued is
registered in the name of the Depositary or its nominee and any payment is
made to the Depositary or its nominee, ANY TRANSFER, PLEDGE OR OTHER USE
HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL since the
registered owner hereof has an interest herein."
(f) CUSIP Numbers. The Company in issuing Securities may use "CUSIP"
numbers (if then generally in use), and, if so,
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the Trustee shall use CUSIP numbers in notices of redemption or repurchase as a
convenience to Holders; provided that any such notice may state that no
representation is made as to the correctness of such numbers either as printed
on the Securities or as contained in any notice of a redemption or repurchase
and that reliance may be placed only on the other identification numbers printed
on the Securities, and any such redemption or repurchase shall not be affected
by any defect in or omission of such numbers.
SECTION 308. 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 upon its request the Trustee shall
authenticate and deliver, in lieu of any such destroyed, lost or stolen
Security, a new Security of the same series and 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 of any series issued pursuant to this Section 308 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 308 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 309. Temporary Securities and Certificated Securities.
------------------------------------------------
(a) Until Certificated Securities for any series are ready for
delivery, the Company may prepare and the Trustee shall authenticate temporary
Securities. Temporary Securities shall be substantially in the form of
Certificated Securities but may have variations that the Company considers
appropriate for temporary Securities. Without unreasonable delay, the Company
shall prepare and the Trustee shall authenticate Certificated Securities of such
series and deliver them in exchange for temporary Securities of such series.
(b) The Global Security or Securities of any series deposited with the
Depositary or with the Trustee as custodian for the Depositary pursuant to
Section 201 shall be transferred to the beneficial owners thereof in the form of
Certificated Securities of the same series in an aggregate principal amount
equal to the principal amount of such Global Security, in exchange for such
Global Securities, only if such transfer complies with Section 307 and (i) the
Depositary notifies the Company that it is unwilling or unable to continue as
Depositary for such Global Security or if at any time such Depositary ceases to
be a "clearing agency" registered under the Exchange Act and a successor
depositary is not appointed by the Company within 90 days of such notice, (ii) a
Default has occurred and is continuing or (iii) the Company, in its sole
discretion, notifies the Trustee in writing that it elects to cause the issuance
of Certificated Securities under this Indenture.
(c) Any Global Security that is transferable to the beneficial owners
thereof pursuant to this Section shall be surrendered by the Depositary to the
Trustee located in the Borough of Manhattan, The City of New York, to be so
transferred, in whole or from time to time in part, without charge, and the
Trustee shall authenticate and deliver, upon such transfer of each portion of
such Global Securities, an equal aggregate principal amount of Securities of the
same series of authorized denominations. Any portion of the Global Securities
transferred pursuant to this Section shall be executed, authenticated and
delivered only in denominations of $1,000 and any integral multiple thereof and
registered in such names as the Depositary shall direct.
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(d) Subject to the provisions of Section 309(c), the registered Holder
of the Global Security may grant proxies and otherwise authorize any Person,
including agent members, participants and Persons that may hold interests
through agent members, to take any action which a Holder is entitled to take
under this Indenture or the Securities.
(e) In the event of the occurrence of any of the events specified in
Section 309(b), the Company will promptly make available to the Trustee a
reasonable supply of Certificated Securities in fully registered form.
SECTION 310. Payment of Interest; Interest Rights Preserved.
----------------------------------------------
Interest on any Security that 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 of any series that 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 of such series (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 of such series 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 provided in this clause. Thereupon the Trustee shall
fix a Special Record Date for the payment of such Defaulted Interest that
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
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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 given to each Holder of Securities of
such series in the manner specified in Section 106 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
given, such Defaulted Interest shall be paid to the Persons in whose names
the Securities of such series (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).
(2) The Company may make payment of any Defaulted Interest on
Securities of any series in any other lawful manner not inconsistent with
the requirements of any securities exchange on which the Securities may be
listed, 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.
SECTION 311. Persons Deemed Owners.
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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 310) 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 312. Cancellation.
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All Securities surrendered for payment, redemption, registration of
transfer or exchange or for credit against any Offer to Purchase pursuant to
Section 1013 or 1015 shall, if surrendered to any Person other than the Trustee,
be delivered to the Trustee and shall be promptly cancelled by it. The Company
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may at any time deliver to the Trustee for cancellation any Securities
previously authenticated and delivered hereunder that 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 312,
except as expressly permitted by this Indenture. All cancelled Securities held
by the Trustee shall be disposed of as directed by a Company Order; provided
that the Trustee shall not be required to destroy cancelled Securities.
SECTION 313. Computation of Interest.
-----------------------
Interest on the Securities of any series shall be computed on the basis
of a 360-day year of twelve 30-day months.
ARTICLE FOUR
SATISFACTION AND DISCHARGE
SECTION 401. Satisfaction and Discharge of Indenture.
---------------------------------------
This Indenture shall cease to be of further effect with respect to any
series of Securities specified by the Company and the Trustee, on demand of and
at the expense of the Company, shall execute proper instruments acknowledging
satisfaction and discharge of this Indenture as to such series, when
(1) no Securities of such series remain Outstanding;
(2) the Company has paid or caused to be paid all other sums payable
hereunder by the Company as to such series; and
(3) 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 as to
such series have been complied with.
Notwithstanding the satisfaction and discharge of this Indenture
pursuant to this Article Four, (i) the obligations of the Company to the Trustee
under Section 607, the obligations of the Company to any Authenticating Agent
under Section 614 and (ii) if the Company shall have effected a Defeasance
pursuant to Article Twelve, the provisions hereof specified in Section 1202
shall also survive.
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ARTICLE FIVE
REMEDIES
SECTION 501. Events of Default.
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"Event of Default", means, wherever used herein with respect to any
particular series of Securities, any one of the following events (whatever the
reason for such Event of Default and whether it shall 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 of (or premium, if any, on)
any Security of that series at its maturity (whether at final Stated
Maturity or upon repurchase, acceleration, optional redemption or
otherwise); or
(2) default in the payment of any interest upon any Security of that
series when it becomes due and payable, and continuance of such default for
a period of 30 days; or
(3) default in the purchase of Securities of that series, on the
applicable Purchase Date, required to be purchased by the Company pursuant
to an Offer to Purchase under Section 1013 or Section 1015 as to which an
offer has been mailed to Holders or the failure to make such offer as
required hereunder; or
(4) default in the performance, or breach, of any covenant, agreement
or warranty of the Company in this Indenture and the Securities of that
series (other than a covenant, agreement or warranty a default in whose
performance or whose breach is elsewhere in this Section 501 specifically
dealt with), and continuance of such default or breach for a period of 30
days after there has been given to the Company by the Trustee or to the
Company and the Trustee by the Holders of at least 25 percent in principal
amount at final Stated Maturity of the Outstanding Securities of that series
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) a default or defaults under any bond, debenture, note or other
evidence of Debt by the Company or any Significant Subsidiary (or under any
mortgage, indenture or instrument under which there may be issued or by
which there may be secured or evidenced any Debt by the Company or any
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Significant Subsidiary) (other than Non-Recourse Debt of Significant
Subsidiaries) if either (x) such default results from failure to pay
principal of such Debt in excess of $25 million when due after any
applicable grace period or (y) as a result of such default, the maturity of
such Debt has been accelerated prior to its scheduled maturity and such
default has not been cured within the applicable grace period, and such
acceleration has not been rescinded, and the principal amount of such Debt,
together with the principal amount of any other Debt of the Company and its
Significant Subsidiaries (not including Non-Recourse Debt of the Significant
Subsidiaries) that is in default as to principal, or the maturity of which
has been accelerated, aggregates $25 million or more; or
(6) the entry by a court of one or more judgments or orders against the
Company or any Significant Subsidiary for the payment of money that in
aggregate exceeds $25 million (excluding the amount thereof covered by
insurance or by a bond written by a Person other than an Affiliate of the
Company), which judgments or orders have not been vacated, discharged or
satisfied or stayed pending appeal within 60 days from the entry thereof,
provided that such a judgment or order shall not be an Event of Default if
such judgment or order does not require any payment by the Company or any
Significant Subsidiary, except to the extent that such judgment is only
against Property that secures Non-Recourse Debt that is otherwise permitted
under this Indenture, and the Company could, at the expiration of the
applicable 60 day period, after giving effect to such judgment or order and
the consequences thereof, Incur at least $1 of Debt under the provisions
described in Section 1008(a); or
(7) the entry by a court having jurisdiction in the premises of (A) a
decree or order for relief in respect of the Company or any Significant
Subsidiary in an involuntary case or proceeding under the Federal bankruptcy
laws, as now or hereafter constituted, or any other applicable Federal,
state, or foreign bankruptcy, insolvency, or other similar law or (B) a
decree or order adjudging the Company or any Significant Subsidiary a
bankrupt or insolvent, or approving as properly filed a petition seeking
reorganization, arrangement, adjustment or composition of or in respect of
the Company or any Significant Subsidiary under the Federal bankruptcy laws,
as now or hereafter constituted, or any other applicable Federal, State or
foreign bankruptcy, insolvency, or similar law, or appointing a custodian,
receiver, liquidator, assignee, trustee, sequestrator or other similar
official of the Company or any Significant Subsidiary or of any substantial
part of the Property or
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assets of the Company or any Significant Subsidiary, or ordering the winding
up or liquidation of the affairs of the Company or any Significant
Subsidiary, 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
(8) (A) the commencement by the Company or any Significant Subsidiary
of a voluntary case or proceeding under the Federal bankruptcy laws, as now
or hereafter constituted, or any other applicable Federal, state, or foreign
bankruptcy, insolvency or other similar law or of any other case or
proceeding to be adjudicated a bankrupt or insolvent, or (B) the consent by
the Company or any Significant Subsidiary to the entry of a decree or order
for relief in respect of the Company or any Significant Subsidiary in an
involuntary case or proceeding under the Federal bankruptcy laws, as now or
hereafter constituted, or any other applicable Federal, state, or foreign
bankruptcy, insolvency, or other similar law or to the commencement of any
bankruptcy or insolvency case or proceeding against the Company or any
Significant Subsidiary, or (C) the filing by the Company or any Significant
Subsidiary of a petition or answer or consent seeking reorganization or
relief under the Federal bankruptcy laws, as now or hereafter constituted,
or any other applicable Federal, state or foreign bankruptcy, insolvency or
other similar law, or (D) the consent by the Company or any Significant
Subsidiary to the filing of such petition or to the appointment of or taking
possession by a custodian, receiver, liquidator, assignee, trustee,
sequestrator or similar official of the Company or any Significant
Subsidiary or of any substantial part of the Property or assets of the
Company or any Significant Subsidiary, or the making by the Company or any
Significant Subsidiary of an assignment for the benefit of creditors, or (E)
the admission by the Company or any Significant Subsidiary in writing of its
inability to pay its debts generally as they become due, or (F) the taking
of corporate action by the Company or any Significant Subsidiary in
furtherance of any such action.
SECTION 502. Acceleration of Maturity; Rescission and Annulment.
If an Event of Default with respect to Securities of any series at the
time outstanding (other than an Event of Default specified in Section 501(7) or
(8)) occurs and is continuing, then and in every such case the Trustee or the
Holders of not less than 25 percent in principal amount at Stated Maturity of
the Outstanding Securities of that series may declare
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the Default Amount of all the Outstanding Securities of that series 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 Default Amount
shall become immediately due and payable. If an Event of Default specified in
Section 501(7) or (8) occurs, the Default Amount of the Securities of that
series then Outstanding shall ipso facto 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 with respect to
Securities of any series has been made and before a judgment or decree for
payment of the money due has been obtained by the Trustee as hereinafter in this
Article Five provided, the Holders of a majority in principal amount of the
Outstanding Securities of that series, 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 of that series (without
duplication of any amount thereof paid or deposited pursuant to clause
(B) or (C) below),
(B) the Default Amount of (and premium, if any, on) any Securities
of that series that have become due otherwise than by such declaration
of acceleration (including any securities of such series required to
have been purchased on any Purchase Date pursuant to an Offer to
Purchase made by the Company) and, to the extent that payment of such
interest is lawful, interest thereon at the rate provided by the
Securities of such series (without duplication of any amount thereof
paid or deposited pursuant to clause (A) above or clause (C) below),
(C) to the extent that payment of such interest is lawful,
interest upon overdue interest at the rate provided by the Securities
of such series (without duplication of any amount thereof paid or
deposited pursuant to clause (A) or (B) above), and
(D) all sums paid or advanced by the Trustee hereunder and the
reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel; and
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(2) all Events of Default with respect to Securities of that series
have been cured or waived as provided in Section 513.
No such rescission shall affect any subsequent 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 on any Security of
any series 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 of any series at the final Stated Maturity thereof or,
with respect to any Security required to have been purchased pursuant to an
Offer to Purchase made by the Company, at the Purchase Date thereof,
the Company shall, upon demand of the Trustee, pay to it, for the benefit of the
Holders of such Securities of such series, the whole amount then due and payable
on such Securities' principal, premium, if any, and interest, and, to the extent
that payment of such interest shall be legally enforceable, interest on any
overdue principal, premium, if any, and overdue interest, at the rate provided
by the Securities, 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 forthwith 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 of such series 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
of such series, wherever situated.
If an Event of Default with respect to Securities of any series occurs
and is continuing, the Trustee may in its discretion proceed to protect and
enforce its rights and the rights of the Holders of Securities of such series by
such appropriate judicial proceedings as the Trustee shall deem most
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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.
SECTION 504. Trustee May File Proofs of Claim. In case of any judicial
proceeding relative to the Company (or any other obligor upon the Securities),
its Property or assets or its creditors, the Trustee (irrespective of whether
the principal of, (premium, if any) or interest on the Securities of any series
then shall be due and payable as therein expressed or by declaration or
otherwise and irrespective of whether the Trustee has made any demand on the
Company for the payment of overdue principal, (premium, if any) or interest
shall be entitled and empowered, by intervention in such proceeding or
otherwise, to file such proofs of claim and other papers or documents and to
take any and all actions authorized under the Trust Indenture Act in order to
have claims of the Holders of the Securities of such series and the Trustee
(including any claim for reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents or counsel) allowed in any such proceeding.
In particular, the Trustee shall be authorized to collect and receive any moneys
or other property payable or deliverable on any such claims 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 of the Securities of such series 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 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. To the extent that payment of any such compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, and any
amounts due the Trustee under Section 607 hereof out of the estate in any such
proceeding shall be denied for any reason, payment of the same shall be secured
by a Lien and shall be paid out of any and all distributions, dividends, money,
securities and other properties that the Holders of the Securities of such
series may be entitled to receive in such proceedings, whether in liquidation or
under any plan of reorganization or arrangement or otherwise.
No provision of this Indenture shall be deemed to authorize the Trustee
to authorize or consent to or accept or adopt on behalf of any Holder any plan
of reorganization, arrangement, adjustment or composition affecting the
Securities of any series or the rights of any Holder thereof or to authorize the
Trustee to vote in respect of the claim of any Holder in any such proceeding;
provided that the Trustee may, on behalf of the
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Holders, vote for the election of a trustee in bankruptcy or similar official
and be a member of a creditors or other similar 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 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. 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;
and
SECOND: To the payment of the amounts then due and unpaid 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 in respect of
principal (and premium, if any) and interest; and
THIRD: To whosoever may be lawfully entitled thereto, the remainder, if
any.
SECTION 507. Limitation on Suits. No Holder of any Security of any
series 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 with respect to the Securities of that series;
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(2) the Holders of not less than 25 percent in principal amount of the
Outstanding Securities of that series 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
(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 of that series;
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. Notwithstanding any other provision in this Indenture, the
Holder of any Security shall have the right, which is absolute and
unconditional, to receive full payment of the principal, of (and premium, if
any) and (subject to Section 310) interest on such Security on the respective
Stated Maturities expressed in such Security (or, in the case of redemption, on
the Redemption Date or in the case of an Offer to Purchase made by the Company
and accepted as to such Security, on the Purchase Date) in accordance with the
terms of this Indenture and the Securities and to institute suit for the
enforcement of any such payment, 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
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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 308, no right or
remedy herein 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.
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
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 of any series shall have the right to
direct the time, method and place of conducting any proceeding for any remedy
available to the Trustee or exercising any trust or power conferred on the
Trustee with respect to the Securities of such series, 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
that 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 of any series may on
behalf of the Holders of all the Securities of such series waive any past
default hereunder with respect to such series and its consequences, except a
default
(1) in the payment of the principal of (or premium, if any) or interest
on any Security of such series (including any Security that is required to
have been purchased
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pursuant to an Offer to Purchase that has been made by the Company), or
(2) in respect of a covenant or provision hereof that under Article
Nine cannot be modified or amended without the consent of the Holder of each
Outstanding Security of such series 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.
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.
SECTION 515. Waiver of Stay or Extension Laws. The Company covenants
(to the extent that it may lawfully do so) that it shall not at any time insist
upon, or plead, or in any manner whatsoever claim or take the benefit or
advantage of, any usury, stay 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)
hereby expressly waives all benefit or advantage of any such law and covenants
that it shall not hinder, delay or impede the execution of any power herein
granted to the Trustee, but shall 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) The duties and
responsibilities of the Trustee shall be as provided by the Trust Indenture Act.
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 601.
(b) Except during the continuance of an Event of Default,
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(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 that 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 need not confirm the accuracy of any
calculations contained therein.
(c) In case 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 man would exercise or use under the circumstances in the conduct of his
own affairs.
(d) 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 subsection (d) shall not be construed to limit the effect of
subsections (b) or (c) of this Section 601;
(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
of any series 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
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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.
SECTION 602. Notice of Defaults; Notice of Acceleration. Within 90 days
after the occurrence of any Event of Default with respect to the Securities of
any series, the Trustee shall transmit by mail to all Holders, as their names
and addresses appear in the Security Register, notice of such Event of Default
known to the Trustee, unless such Event of Default shall have been cured or
waived; provided that, except in the case of a default in any payment of the
principal of (or premium, if any) or interest on any Security of such series and
any payment required in connection with a Change of Control or an Asset
Disposition, the Trustee shall be protected in withholding such notice if and so
long as the board of directors, the executive committee or the trust committee
corporate or Responsible Officers of the Trustee in good faith determine that
the withholding of such notice is in the interest of the Holders of the
Securities of such series; and provided further that in the case of any Event of
Default of the character specified in Section 501(5) with respect to the
Securities of such series, no such notice to Holders shall be given until at
least 30 days after the occurrence thereof.
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, 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, order, demand or direction of the Company mentioned
herein 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
be herein specifically prescribed) may, in the absence of bad faith on its part,
rely upon an Officers' Certificate;
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(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 of Securities of any series pursuant to this Indenture,
unless such Holders shall have offered to the Trustee reasonable security or
indemnity against the costs, expenses and liabilities that 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 the Trustee shall determine to
make such further inquiry or investigation, it shall be entitled (subject to
reasonable confidentiality arrangements as may be proposed by the Company) to
examine the books, records and premises of the Company, personally or by agent
or attorneys;
(g) the Trustee may execute any of the trusts or powers hereunder or
perform any duties hereunder either directly or by or through agents or
attorneys and the Trustee shall not be responsible for any misconduct or
negligence on the part of any agent or attorney appointed with due care by it
hereunder;
(h) the Trustee shall not be charged with knowledge of any Default or
any Event of Default with respect to Securities of any series for which it is
acting as Trustee unless either (i) a Responsible Officer of the Trustee shall
have actual knowledge of the Default or Event of Default or (ii) written notice
of such Default or Event of Default shall have been given to the Trustee by the
Company, any other obligor on such Securities or by any holder of such
Securities; and
(i) the Trustee shall not be liable for any action taken, suffered or
omitted by it and believed by it to be authorized or within the discretion or
rights or powers conferred upon it by this Indenture.
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,
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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 or
pledgee of Securities and, subject to Sections 608 and 613, may otherwise deal
with the Company with the same rights it would have if it 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 such reasonable
compensation as the Company and the Trustee shall from time to time agree in
writing 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 counsel) except any such expense,
disbursement or advance as may be attributable to its negligence or bad
faith; and
(3) to indemnify the Trustee in its individual capacity and each of its
officers, directors, agents and counsel for, and to hold it harmless
against, any loss, damage, claim, liability or expense incurred without
negligence or bad faith on such Person's part, arising out of or in
connection with the acceptance or administration of this Indenture or the
performance of any of its powers and duties hereunder, including the costs
and expenses of defending itself against any claim or liability in
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connection with the exercise or performance of any of its powers or duties
hereunder and complying with any process served upon the Trustee or any such
other Person hereunder.
The Trustee shall have a Lien prior to the Securities with respect to
all Property and funds held or collected by the Trustee hereunder for any amount
owing to it pursuant to this Section 607, except with respect to funds held in
trust for the benefit of the Holders of particular Securities.
When the Trustee incurs expenses or renders services in connection with
an Event of Default specified in Section 501(7) or Section 501(8), 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.
The Company's obligations under this Section 607 and any Lien arising
hereunder shall survive the resignation or removal of the Trustee, the discharge
of the Company's obligations pursuant to Article Twelve, any rejection or
termination of the Indenture under any Federal or state bankruptcy, insolvency
or other similar law or any other termination of this Indenture.
SECTION 608. 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. There shall be excluded from the operation of this Section
608 (i) the Indenture dated as of March 24, 1994, between the Company and IBJ
Schroder Bank & Trust Company, as trustee, governing the Company's 10 1/4%
Senior Discount Notes due 2004, (ii) the Indenture dated as of September 20,
1996, between the Company and IBJ Schroder Bank & Trust Company, as trustee,
governing the Company's 9 1/2% Senior Notes due 2006 and (iii) any other series
of Securities governed by this Indenture.
SECTION 609. Corporate Trustee Required; Eligibility. There shall at
all times be a Trustee hereunder that shall be a Person that is eligible
pursuant to the Trust Indenture Act to act as such and has a combined capital
and surplus of at least $50,000,000 and its Corporate Trust Office in the
Borough of Manhattan, The City of New York and shall be subject to supervision
or examination by Federal or State authority. 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 609
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and to the extent permitted by the Trust Indenture Act, 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 Six.
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 Six shall become effective until the acceptance of
appointment by the successor Trustee in accordance with the applicable
requirements of Section 611.
(b) The Trustee may resign at any time with respect to Securities of
one or more series by giving written notice thereof to the Company. If an
instrument of acceptance by a successor Trustee in accordance with the
applicable requirements of Section 611 shall not have been delivered 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 with respect to the Securities of such
series.
(c) The Trustee may be removed at any time with respect to the
Securities of one or more series by Act of the Holders of a majority in
principal amount of the Outstanding Securities of such series, 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 therefor 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 Trustee shall cease to be eligible under Section 609 and shall
fail to resign after written request therefor 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,
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then, in any such case, (i) the Company by a Board Resolution may remove the
Trustee with respect to all Securities, 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 with respect to all
Securities and the appointment of a successor Trustee or Trustees.
(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 with
respect to the Securities of one or more series, the Company, by a Board
Resolution, shall promptly appoint a successor Trustee with respect to the
Securities of that or those series. If, within one year after such resignation,
removal or incapability, or the occurrence of such vacancy, a successor Trustee
with respect to the Securities of any series shall be appointed by Act of the
Holders of a majority in principal amount of the Outstanding Securities of such
series delivered to the Company and the retiring Trustee, the successor Trustee
so appointed shall, forthwith upon its acceptance of such appointment in
accordance with the applicable requirements of Section 611, become the successor
Trustee and supersede the successor Trustee with respect to the Securities of
such series appointed by the Company. If no successor Trustee with respect to
the Securities of any series shall have been so appointed by the Company or the
Holders and accepted appointment in accordance with the applicable requirements
of Section 611, any Holder who has been a bona fide Holder of a Security of such
series for at least six months may, on behalf of himself and all others
similarly situated, petition any court of competent jurisdiction for the
appointment of a successor Trustee with respect to the Securities of such
series.
(f) The Company shall give written notice of each resignation and each
removal of the Trustee with respect to the Securities of any series and each
appointment of a successor Trustee with respect to the Securities of any series
to all Holders in the manner provided in Section 106. Each notice shall include
the name of the successor Trustee with respect to the Securities of such series
and the address of its Corporate Trust Office.
SECTION 611. Acceptance of Appointment by Successor. (a) In case of the
appointment hereunder of a successor Trustee with respect to all Securities,
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
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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 any amounts then due under Section 607, 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, subject, nevertheless, to its Lien, if any, provided for in Section
607.
(b) In case of the appointment hereunder of a successor Trustee with
respect to the Securities of one or more (but not all) series, the Company, the
retiring Trustee and each successor Trustee with respect to the Securities of
one or more series shall execute and deliver an indenture supplemental hereto,
pursuant to Article Nine hereof, wherein each successor Trustee shall accept
such appointment and which (1) shall contain such provisions as shall be
necessary or desirable to transfer and confirm to, and to vest in, each
successor Trustee all the rights, powers, trusts and duties of the retiring
Trustee with respect to the Securities of that or those series to which the
appointment of such successor Trustee relates, (2) if the retiring Trustee is
not retiring with respect to all Securities, shall contain such provisions as
shall be deemed necessary or desirable to confirm that all the rights, powers,
trusts and duties of the retiring Trustee with respect to the Securities of that
or those series as to which the retiring Trustee is not retiring shall continue
to be vested in the retiring Trustee, and (3) shall add to or change any of the
provisions of this Indenture as shall be necessary to provide for or facilitate
the administration of the trusts hereunder by more than one Trustee, it being
understood that nothing herein or in such supplemental indenture shall
constitute such Trustees co-trustees of the same trust and that each such
Trustee shall be trustee of a trust or trusts hereunder separate and apart from
any trust or trusts hereunder administered by any other such Trustee; and upon
the execution and delivery of such supplemental indenture the resignation or
removal of the retiring Trustee shall become effective to the extent provided
therein and each 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 with respect to the Securities of that or those series
to which the appointment of such successor Trustee relates; but, on request of
the Company or any successor Trustee, such retiring Trustee shall duly assign,
transfer and deliver to such successor Trustee all property and money held by
such retiring Trustee upon payment of any amounts then due under Section 607
hereunder with respect to the Securities of that or those series to which the
appointment of such successor Trustee
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relates, subject, nevertheless, to its Lien, if any, provided for in Section
607.
(c) 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.
(d) 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, shall be the successor of the Trustee hereunder, provided that
such corporation shall be otherwise qualified and eligible under this Article
Six, without the execution or filing of any paper or any further act on the part
of any 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).
SECTION 614. Appointment of Authenticating Agent. The Trustee may from
time to time appoint an Authenticating Agent or Agents with respect to one or
more series of Securities that shall be authorized to act on behalf of the
Trustee to authenticate Securities of such series issued upon original issue and
upon exchange, registration of transfer or partial redemption or partial
purchase or pursuant to Section 308, 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
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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 614, 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 614, such Authenticating Agent shall resign
immediately in the manner and with the effect specified in this Section 614.
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. In case any
Securities shall have been authenticated, but not delivered, by the
Authenticating Agent then in office, any successor by merger, conversion or
consolidation to such Authenticating Agent may adopt such authentication and
deliver the Securities so authenticated with the same effect as if such
successor Authenticating Agent had itself authenticated such Securities.
An Authenticating Agent for any series of Securities may resign at any
time by giving written notice thereof to the Trustee for such series and to the
Company. The Trustee for any series of Securities 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 614, the Trustee for such series may appoint a
successor Authenticating Agent that shall be acceptable to the Company and shall
give notice of such appointment in the manner provided in Section 106, to all
Holders
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of Securities of the series 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 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 614.
The Company agrees to pay to each Authenticating Agent from time to
time reasonable compensation for its services under this Section.
The provisions of Sections 311, 604 and 605 shall be applicable to each
Authenticating Agent.
If an appointment with respect to one or more series is made pursuant
to this Section 614, the Securities of such series may have endorsed thereon, in
addition to or in lieu of the Trustee's certificate of authentication, an
alternative certificate of authentication in the following form:
This is one of the Securities of the series designated therein referred
to in the within-mentioned Indenture.
Dated:
----------------------------
IBJ SCHRODER BANK & TRUST COMPANY,
as Trustee
By
-------------------------------
As Authenticating Agent
By
-------------------------------
Authorizing Signatory
ARTICLE SEVEN
HOLDERS' LISTS AND REPORTS BY TRUSTEE AND COMPANY
SECTION 701. Company to Furnish Trustee Names and Addresses of Holders.
The Company shall furnish or cause to be furnished to the Trustee
(a) semi-annually, not more than 15 days after each Regular Record Date
for interest for each series of Securities, in such form as the Trustee may
reasonably require, of the names
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and addresses of the Holders of Securities of such series as of such Regular
Record Date, and
(b) 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;
excluding from any such list names and addresses received by the Trustee in its
capacity 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 of Securities, by receiving and holding the same,
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 the names and addresses of Holders made pursuant
to the Trust Indenture Act.
SECTION 703. Reports by Trustee. (a) Within 60 days after May 15 of
each year commencing with the May 15 following the Issue Date, 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 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
shall notify the Trustee in writing 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
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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 Exchange Act shall be filed with the
Trustee within 15 days after the same is so required to be filed with the
Commission.
ARTICLE EIGHT
CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE
SECTION 801. Company May Consolidate, Etc. Only on Certain Terms. The
Company shall not, in any transaction or series of transactions, consolidate
with or merge into any other Person, or sell, convey, assign, transfer, lease or
otherwise dispose of all or substantially all of the Property and assets of the
Company to any other Person, unless:
(i) either (a) the Company shall be the continuing corporation or
(b) the corporation (if other than the Company) formed by such
consolidation or into which the Company is merged, or the Person that
acquires, by sale, assignment, conveyance, transfer, lease or
disposition, all or substantially all of the Property and assets of the
Company (such corporation or Person, the "Surviving Entity"), shall be
a corporation organized and validly existing under the laws of the
United States of America, any political subdivision thereof or any
state thereof or the District of Columbia, and shall expressly assume,
by a supplemental indenture, the due and punctual payment of the
principal of (and premium, if any) and interest on all the Securities
and the performance of the Company's covenants and obligations under
this Indenture;
(ii) immediately before and immediately after giving effect to
such transaction or series of transactions on a pro forma basis
(including, without limitation, any Debt Incurred or anticipated to be
Incurred in connection with or in respect of such transaction or series
of transactions), no Default or Event of Default shall have occurred
and be continuing or would result therefrom;
(iii) immediately after giving effect to any such transaction or
series of transactions on a pro forma basis (including, without
limitation, any Debt Incurred or anticipated to be Incurred in
connection with or in
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respect of such transaction or series of transactions) as if such
transaction or series of transactions had occurred on the first day of
the determination period, the Company (or the Surviving Entity if the
Company is not continuing) would be permitted to Incur $1.00 of
additional Debt pursuant to Section 1008(a); and
(iv) immediately after giving effect to such transaction or series
of transactions on a pro forma basis (including, without limitation,
any Debt Incurred or anticipated to be Incurred in connection with or
in respect of such transaction or series of transactions) (without
giving effect to the fees and expenses incurred in respect of such
transaction), the Company (or the Surviving Entity if the Company is
not continuing) shall have a Net Worth equal to or greater than the Net
Worth of the Company immediately prior to such transaction.
In connection with any consolidation, merger, sale, assignment,
conveyance, transfer, lease or other disposition contemplated by the foregoing
provisions of this Section 801, the Company shall deliver, or cause to be
delivered, to the Trustee, in form and substance reasonably satisfactory to the
Trustee, an Officers' Certificate and an Opinion of Counsel, each stating that
such consolidation, merger, sale, conveyance, assignment, transfer, lease or
other disposition and the indenture supplemental hereto in respect thereof (to
the extent required under clause (i) of this Section 801) comply with the
requirements of this Indenture. Each such Officers' Certificate shall set forth
the ability to Incur Debt in accordance with clause (iii) of Section 801.
None of the Company, any of its Restricted Subsidiaries or any Eligible
Joint Ventures may merge with or into, or be consolidated with, an Unrestricted
Subsidiary of the Company, except to the extent that such Unrestricted
Subsidiary has been designated a Restricted Subsidiary as provided in this
Indenture in advance of or in connection with such merger.
For all purposes of this Indenture and the Securities (including this
Section 801 and Sections 1008, 1009 and 1012), Subsidiaries of any Surviving
Entity shall, upon such transaction or series of transactions, become Restricted
Subsidiaries or Unrestricted Subsidiaries as provided pursuant to this Indenture
and all Debt, and all Liens on Property or assets, of the Surviving Entity and
its Subsidiaries that was not Debt, or were not Liens on Property or assets, of
the Company and its Subsidiaries immediately prior to such transaction or series
of
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transactions shall be deemed to have been Incurred upon such transaction or
series of transactions.
SECTION 802. Successor Substituted. Upon any transaction or series of
transactions that are of the type described in, and are effected in accordance
with, Section 801, the Surviving Entity 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 Surviving Entity had been named as the Company
herein; and when a Surviving Person duly assumes all of the obligations and
covenants of the Company pursuant to this Indenture and the Securities, except
in the case of a lease, the predecessor Person shall be relieved of all such
obligations.
ARTICLE NINE
SUPPLEMENTAL INDENTURES
SECTION 901. Supplemental Indentures Without Consent of Holders.
Without the consent of any Holders, the Company, when authorized by or pursuant
to a Board Resolution, may, and subject to Section 903, the Trustee, at any time
and from time to time, shall, enter into one or more indentures supplemental
hereto, in form satisfactory to the Trustee, for any of the following purposes:
(1) to evidence the succession of another Person to the Company and the
assumption by any such successor of the covenants of the Company herein and
in the Securities; or
(2) to add to the covenants of the Company for the benefit of the
Holders of all or any series of Securities (and if such covenants are to be
for the benefit of less than all series of Securities, stating that such
covenants are expressly being included solely for the benefit of such
series), or to surrender any right or power herein conferred upon the
Company; or
(3) to add any additional Events of Default for the benefit of the
Holders of all or any series of Securities (and if such Events of Default
are to be for the benefit of less than all series of Securities, stating
that such Events of Default are expressly being included solely for the
benefit of such series); provided, however, that in respect of any such
additional Events of Default such supplemental indenture may provide for a
particular period of grace after default (which period may be shorter or
longer than that allowed in the case of other defaults) or may provide for
an
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immediate enforcement upon such default or may limit the remedies available to
the Trustee upon such default or may limit the right of the Holders of a
majority in aggregate principal amount of that or those series of Securities to
which such additional Events of Default apply to waive such default; or
(4) to provide for uncertificated Securities in addition to or in place
of the Certificated Securities; or
(5) to change or eliminate any of the provisions of this Indenture,
provided that any such change or elimination shall become effective only
when there is not Outstanding any Security of any series created prior to
the execution of such supplemental indenture that is entitled to the benefit
of such provision; or
(6) to evidence and provide for the acceptance of appointment under
this Indenture by a successor Trustee with respect to the Securities of one
or more series and to add to or change any of the provisions of this
Indenture as shall be necessary to provide for or facilitate the
administration of the trusts hereunder by more than one Trustee; or
(7) to secure the Securities pursuant to the requirements of Section
1012 or otherwise; or
(8) to establish the form or terms of Securities of any series
permitted by Sections 201 and 301, including the provisions and procedures,
if applicable, for the conversion of such Securities into the Company's
Common Stock or Preferred Stock; or
(9) to cure any ambiguity, to correct or supplement any provision
herein that may be defective or inconsistent with any other provision
herein, or to make any other provisions with respect to matters or questions
arising under this Indenture, provided that such actions pursuant to this
clause shall not adversely affect the interests of the Holders of Securities
of any series; or
(10) to comply with any requirements of the Commission in order to
effect and maintain the qualification of this Indenture under the Trust
Indenture Act.
SECTION 902. Supplemental Indentures with Consent of Holders. With the
consent of the Holders of a majority in principal amount of the Outstanding
Securities, by Act of said Holders delivered to the Company and the Trustee, the
Company,
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when authorized by or pursuant to a Board Resolution, may, and (subject to
Section 903) the Trustee shall, enter into an indenture or indentures
supplemental hereto, in form satisfactory to the Trustee, 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 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 at or
the rate of interest thereon or any premium payable thereon, reduce any
amount payable on redemption or purchase thereof, or reduce the Default
Amount that would be due and payable on acceleration of the Stated Maturity
thereof pursuant to Section 502, or change the place of payment where, or
the coin or currency in which, any Security or any premium or interest
thereon is payable, or impair the right to institute suit for the
enforcement of any such payment on or after the Stated Maturity thereof, or
(2) reduce the percentage in principal amount of the Outstanding
Securities of any series, the consent of whose Holders is required for any
such supplemental indenture, or the consent of whose Holders is required for
any waiver with respect to such series (of compliance with certain
provisions of this Indenture or certain defaults hereunder and their
consequences) provided for in this Indenture, or
(3) modify the obligations of the Company to make Offers to Purchase
from the Excess Proceeds of Asset Dispositions or upon a Change of Control
or to modify the definitions related thereto, or
(4) subordinate a right of payment, or otherwise subordinate, the
Securities to any other indebtedness, or
(5) modify any of the provisions of this Section 902, Section 513 or
Section 1020, except to increase any such percentage or to provide that
certain other provisions of this Indenture cannot be modified or waived
without the consent of the Holder of each Outstanding Security affected
thereby.
It shall not be necessary for any Act of Holders under this Section 902
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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A supplemental indenture which changes or eliminates any covenant or
other provision of this Indenture which has expressly been included solely for
the benefit of one or more particular series of Securities, or which modifies
the rights of the Holders of Securities of such series with respect to such
covenant or other provision, shall be deemed not to affect the rights under this
Indenture of the Holders of Securities of any other series.
After a supplemental indenture under this Section becomes effective,
the Company shall mail to the Holders of any series of Securities affected
thereby a notice briefly describing the supplemental indenture. Any failure of
the Company to mail such notice, or any default therein, shall not, however, in
any way impair or affect the validity of any such supplemental indenture.
In connection with any supplemental indenture or waiver under this
Article Nine, the Company may, but shall not be obligated to, offer to any
Holder who consents to such supplemental indenture, or to all Holders,
consideration for such Holder's consent to such supplemental indenture.
SECTION 903. Execution of Supplemental Indentures. In executing, or
accepting the additional trusts created by, any supplemental indenture permitted
by this Article or the modifications thereby 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 that 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
theretofore or thereafter authenticated and delivered hereunder shall be bound
thereby, unless it makes a change described in any of clauses (1) through (5) of
Section 902, in which case, the supplemental indenture shall bind only each
Holder of a Security who has consented to it and every subsequent Holder of a
Security or portion of a Security that evidences the same Debt as the consenting
Holder's Security; provided that any such waiver shall not impair or affect the
right of any Holder to receive payment of principal and premium of and interest
on a Security, on or after the respective dates set for such amounts to become
due and
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payable, or to bring suit for the enforcement of any such payment on or after
such respective dates.
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.
SECTION 906. Reference in Securities to Supplemental Indentures.
Securities of any series 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 of any series 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 of such series. Any failure to make the
appropriate notation on a new Security shall not affect the validity of such
Security.
ARTICLE TEN
COVENANTS
SECTION 1001. Payment of Principal, Premium and Interest. The Company
shall duly and punctually pay the principal of (and premium, if any) and
interest on the Securities of each series in accordance with the terms of such
series of Securities and this Indenture.
SECTION 1002. Maintenance of Office or Agency. The Company shall
maintain in the Borough of Manhattan, The City of New York, an office or agency
where Securities of any series may be presented or surrendered for payment,
where Securities of any series may be surrendered for registration of transfer
or exchange and where notices and demands to or upon the Company in respect of
the Securities of any series and this Indenture may be served. The Company shall
give prompt written notice to the Trustee of the location, and any change in the
location, of 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, such presentations, surrenders, notices and demands
may be made or served at the Corporate Trust Office of the Trustee, and the
Company hereby appoints the Trustee as its agent to receive all such
presentations, surrenders, notices and demands. In the event any
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such notice or demands are so made or served on the Trustee, the Trustee shall
promptly forward copies thereof to the Company.
The Company may also from time to time designate one or more other
offices or agencies (in or outside the Borough of Manhattan, The City of New
York) where the Securities of one or more series may be presented or surrendered
for any or all such purposes and may from time to time rescind such
designations; provided that no such designation or rescission shall in any
manner relieve the Company of its obligation to maintain an office or agency in
the Borough of Manhattan, The City of New York, in accordance with the
requirements for Securities of any series, or set forth herein, for such
purposes. The Company shall give prompt written notice to the Trustee of any
such designation or rescission and of any change in the location of any such
other office or agency. The Company hereby initially designates for each series
of Securities, the Corporate Trust Office of the Trustee as such office of the
Company.
SECTION 1003. Money for Security Payments to be Held in Trust. If the
Company shall at any time act as its own Paying Agent with respect to any series
of any Securities, it shall, on or before each due date of the principal of (and
premium, if any) or interest on any of the Securities of that series, segregate
and hold in trust for the benefit of the Persons entitled thereto a sum
sufficient to pay the principal (and 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 shall promptly notify the Trustee of its action or failure
so to act.
Whenever the Company shall have one or more Paying Agents for any
series, it shall, prior to each due date of the principal of (and premium, if
any) or interest on any Securities of that series, deposit with a Paying Agent a
sum sufficient to pay the principal (and premium, if any) or interest so
becoming due, such sum to be held as provided by the Trust Indenture Act, and
(unless such Paying Agent is the Trustee) the Company shall promptly notify the
Trustee of its action or failure so to act.
The Company shall 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 1003,
that such Paying Agent shall (i) comply with the provisions of the Trust
Indenture Act applicable to it as Paying Agent, (ii) give the Trustee notice of
any default by the Company (or other obligor upon the Securities) in the making
of any payment of principal of (and premium, if any) or interest in respect of
the Securities and (iii) during the continuance of any default by the Company
(or any other obligor upon the Securities) in the making of any payment in
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respect of the Securities, upon the written request of the Trustee, forthwith
pay to the Trustee all sums held in trust by such Paying Agent as such.
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.
Except as otherwise provided in the Securities of any series, 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 (and premium, if any) or interest on
any Security of any series and remaining unclaimed for two years after such
principal (and 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 shall thereupon cease; provided that 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 published in the English
language, customarily published on each Business Day and of general circulation
in The City of New York, or mail to such Holder, or both, 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 shall be repaid to the Company.
SECTION 1004. Existence. Subject to Article Eight, the Company shall do
or cause to be done all things necessary to preserve and keep in full force and
effect its corporate existence, rights (charter and statutory) and material
franchises; provided that the Company shall not be required to preserve any such
right or franchise if the Board of Directors in good faith shall determine that
the preservation thereof is no longer desirable in the conduct of the business
of the Company and that the loss thereof does not materially adversely affect
the Holders.
SECTION 1005. Maintenance of Properties. The Company shall cause all
material properties used or useful in the conduct of its business or the
business of any Restricted Subsidiary and
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any Eligible Joint Venture to be maintained and kept in good condition, repair
and working order and supplied with all necessary equipment and shall 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
1005 shall prevent the Company from discontinuing the operation or maintenance
of any of such material or properties or, subject to the provisions of Section
1015, disposing of any of them if such discontinuance or disposal is, as
determined by the Company in good faith, desirable in the conduct of its
business or the business of any Restricted Subsidiary and does not materially
adversely affect the Holders, provided that the Restricted Subsidiaries and the
Eligible Joint Ventures of the Company shall not be required to comply with the
foregoing provisions of this Section 1005 if they are prevented or restricted in
doing so by the terms of any loan or financing agreement, any charter document,
partnership or joint venture agreement or any other agreement or instrument, all
of which are expressly acknowledged to take precedence over the terms hereof.
SECTION 1006. Payment of Taxes and Other Claims. The Company shall 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 of its Restricted Subsidiaries or upon the
income, profits or property of the Company or any of its Restricted
Subsidiaries, and (2) all lawful claims for labor, materials and supplies that,
if unpaid, might by law become a Lien upon the property of the Company or any of
its Restricted Subsidiaries; 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 have been accrued to the extent required by GAAP.
SECTION 1007. Maintenance of Insurance. The Company shall, and shall
cause its Restricted Subsidiaries and the Eligible Joint Ventures to, keep at
all times all of their Properties that are of an insurable nature insured
against loss or damage with insurers believed by the Company to be responsible
to the extent that Property of similar character is usually so insured by
Persons similarly situated and owning like Properties in accordance with good
business practice. The Company shall, and shall cause its Restricted
Subsidiaries and the Eligible Joint Ventures to, use the proceeds from any such
insurance policy to repair, replace or otherwise restore all material Properties
to which such proceeds relate, provided that the
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Company shall not be required to repair, replace or otherwise restore any such
material Property if the Company in good faith determines that such inaction is
desirable in the conduct of the business of the Company or any Restricted
Subsidiary and does not materially adversely affect the Holders, and provided
further that the Company (only in respect of agreements governing its
Non-Recourse Debt), the Restricted Subsidiaries and the Eligible Joint Ventures
of the Company shall not be required to apply insurance proceeds to repair,
replace or restore any material Property if they are prevented or restricted in
doing so by the terms of any loan or financing agreement, any charter document,
partnership or joint venture agreement or any other agreement or instrument, all
of which are expressly acknowledged to take precedence over the terms hereof.
The Company may, and may permit its Restricted Subsidiaries and
Eligible Joint Ventures to, adopt such other plan or method of protection, in
lieu of or supplemental to insurance with insurers, whether by the establishment
of an insurance fund or reserve to be held and applied to make good losses from
casualties, or otherwise, conforming to the system of self-insurance maintained
by Persons similarly situated and owning like Properties and which does not
materially adversely affect the Holders, as may be determined by the Company in
good faith.
SECTION 1008. Limitation on Debt. (a) The Company shall not Incur any
Debt, including Acquisition Debt, unless, after giving effect to the Incurrence
of such Debt and the receipt and application of the proceeds therefrom, the
Fixed Charge Ratio of the Company would be equal to or greater than 2.0 to 1.
(b) Notwithstanding the provisions of Section 1008(a), the Company may
Incur each and all of the following: (i) Company Refinancing Debt, (ii) Debt of
the Company to any of its Restricted Subsidiaries or any Eligible Joint Venture
that is expressly subordinated in right of payment to the Securities of all
series, provided that any transfer of such Debt by a Restricted Subsidiary or an
Eligible Joint Venture (other than to another Restricted Subsidiary or another
Eligible Joint Venture), or any transfer of the Company's ownership interest, or
a portion thereof, in such Restricted Subsidiary or such Eligible Joint Venture
or the interest, or a portion thereof, of Kiewit in a Permitted Joint Venture or
an Eligible Joint Venture (which transfer has the effect of causing such
Restricted Subsidiary or such Eligible Joint Venture to cease to be a Restricted
Subsidiary or an Eligible Joint Venture, as the case may be), shall be deemed to
be an Incurrence of Debt that is subject to the provisions of this Section 1008
other than this clause (ii),
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(iii) Debt in an aggregate principal amount not to exceed $100 million
outstanding at any one time may be issued under or in respect of Permitted
Working Capital Facilities, (iv) Non-Recourse Debt Incurred in respect of one or
more Permitted Facilities in which the Company has a direct or indirect
interest, (v) Debt in respect of Currency Protection Agreements or Interest Rate
Protection Agreements, (vi) Purchase Money Debt, provided that the amount of
such Debt (net of any original issue discount) does not exceed 90% of the fair
market value of the Property acquired, (vii) the Securities and other Debt
outstanding as of the Issue Date of the Securities (other than Debt to the
extent that it is extinguished, retired, defeased or repaid in connection with
the original issuance of the Securities), including Debt that is Incurred in
respect of interest or discount on such Debt (or Redeemable Stock issued as
dividends in respect of Redeemable Stock) pursuant to the terms of the agreement
or instrument that governs such Debt (or such Redeemable Stock) as in effect on
the Issue Date of the Securities and (viii) Debt in an aggregate principal
amount not to exceed $75 million outstanding at any one time.
SECTION 1009. Limitation on Subsidiary Debt. (a) The Company shall not
permit any of its Restricted Subsidiaries or any Eligible Joint Venture, to
Incur any Debt.
(b) Notwithstanding the provisions of Section 1009(a), each and all of
the following Debt may be Incurred by a Restricted Subsidiary or an Eligible
Joint Venture: (i) Debt outstanding as of the Issue Date of the Securities, (ii)
Debt owed by a Restricted Subsidiary or an Eligible Joint Venture to the Company
or another Restricted Subsidiary of the Company or another Eligible Joint
Venture that either directly or indirectly owns all or a portion of the
Company's interest in, or directly or indirectly is owned by, such Restricted
Subsidiary or such Eligible Joint Venture, as the case may be, (iii)
Non-Recourse Debt Incurred in respect of one or more Permitted Facilities,
provided that such Restricted Subsidiary or such Eligible Joint Venture has a
direct or indirect interest (which may include Construction Financing provided
by the Company to the extent permitted under Section 1010 as a "Permitted
Investment") in one or more of such Permitted Facilities in respect of which one
or more Restricted Subsidiaries or Eligible Joint Ventures shall have a direct
or indirect interest, (iv) Subsidiary Refinancing Debt, (v) Acquired Debt, (vi)
Debt in respect of Currency Protection Agreements or Interest Rate Protection
Agreements, (vii) Permitted Funding Company Loans and (viii) Permitted
Facilities Debt, provided that at the time of Incurrence thereof and after
giving effect to the application of the proceeds thereof, the aggregate
principal amount of Permitted Facilities
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Debt shall not exceed 15% of total consolidated Debt of the Company computed in
accordance with GAAP.
SECTION 1010. Limitation on Restricted Payments. (a) The Company shall
not, and shall not permit any of its Restricted Subsidiaries or any Eligible
Joint Venture to, directly or indirectly, make any Restricted Payment unless at
the time of such Restricted Payment and after giving effect thereto (a) no Event
of Default and no event that, after the giving of notice or lapse of time or
both, would become an Event of Default, has occurred and is continuing, (b) the
Company could Incur at least $1 of Debt under Section 1008 and (c) the aggregate
amount of all Restricted Payments made by the Company, its Restricted
Subsidiaries and the Eligible Joint Ventures (the amount so made, if other than
in cash, to be determined in good faith by the Chief Financial Officer, as
evidenced by an Officers' Certificate, or, if more than $30 million, by the
Board of Directors, as evidenced by a Board resolution) after March 24, 1994, is
less than the sum (without duplication) of (i) 50% of the Adjusted Consolidated
Net Income of the Company for the period (taken as one accounting period)
beginning on the first day of the first fiscal quarter that begins after March
24, 1994 and ending on the last day of the fiscal quarter immediately prior to
the date of such calculation, provided that if throughout any fiscal quarter
within such period the Ratings Categories applicable to the Securities are rated
Investment Grade by S&P and Moody's (or if both do not make a rating of the
Securities publicly available, an equivalent Rating Category is made publicly
available by another Rating Agency), then 100% (instead of 50%) of the Adjusted
Consolidated Net Income (if more than zero) with respect to such fiscal quarter
shall be included pursuant to this clause (i), and provided further that if
Adjusted Consolidated Net Income for such period is less than zero, then minus
100% of the amount of such net loss, plus (ii) 100% of the aggregate net cash
proceeds received by the Company from and after March 24, 1994 from (A) the
issuance and sale (other than to a Restricted Subsidiary or an Eligible Joint
Venture) of its Capital Stock (excluding Redeemable Stock, but including Capital
Stock other than Redeemable Stock issued upon conversion of, or in exchange for
Redeemable Stock or securities other than its Capital Stock), (B) the issuance
and sale or the exercise of warrants, options and rights to purchase its Capital
Stock (other than Redeemable Stock) and (C) the issuance and sale of convertible
Debt upon the conversion of such convertible Debt into Capital Stock (other than
Redeemable Stock), but excluding the net proceeds from the issuance, sale,
exchange, conversion or other disposition of its Capital Stock (I) that is
convertible (whether at the option of the Company or the holder thereof or upon
the happening of any event) into (x) any security other than its Capital Stock
or (y) its Redeemable Stock or (II) that is
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Capital Stock referred to in clauses (ii) and (iii) of the definition
of "Permitted Payment", plus (iii) the net reduction in Investments of the types
specified in clauses (iv) and (v) of the definition of "Restricted Payment" that
result from payments of interest on Debt, dividends, or repayment of loans or
advances, the proceeds of the sale or disposition of the Investment or other
return of the amount of the original Investment to the Company, the Restricted
Subsidiary or the Eligible Joint Venture that made the original Investment from
the Person in which such Investment was made, provided that (x) the aggregate
amount of such payments shall not exceed the amount of the original Investment
by the Company or such Restricted Subsidiary that reduced the amount available
pursuant to this clause (c) for making Restricted Payments and (y) such payments
may be added pursuant to this clause (iii) only to the extent such payments are
not included in the calculation of Adjusted Consolidated Net Income, provided
further that if Investments of the types specified in clauses (iv) and (v) of
the Definition of "Restricted Payment" have been made in any Person and such
Person thereafter becomes a Restricted Subsidiary or an Eligible Joint Venture,
then the aggregate amount of such Investment (to the extent that they have
reduced the amount available pursuant to this clause (c) for making Restricted
Payments), net of the amounts previously added pursuant to this clause (iii),
may be added to the amount available for making Restricted Payments, plus (iv)
an amount equal to the principal amount of Debt of the Company extinguished in
connection with the conversion into Common Stock of the Company of the Company's
5% Convertible Subordinated Debentures due 2000 and its 9.5% Convertible
Subordinated Debenture due 2003. The foregoing clause (c) shall not prevent the
payment of any dividend within 60 days after the date of its declaration if such
dividend could have been made on the date of its declaration without violation
of the provisions of this Section 1010(a).
(b) None of the Company, any of its Restricted Subsidiaries or any
Eligible Joint Venture shall be deemed to have made an Investment at the time
that a Person that is a Restricted Subsidiary of the Company or an Eligible
Joint Venture ceases to be a Restricted Subsidiary or an Eligible Joint Venture
(other than as a result of a Restricted Subsidiary being designated as an
Unrestricted Subsidiary), although any subsequent Investment made by the
Company, its Restricted Subsidiaries and Eligible Joint Ventures in such Person
shall be Investments that shall be subject to the foregoing paragraph unless and
until such time as such Person becomes a Restricted Subsidiary or an Eligible
Joint Venture. Notwithstanding the foregoing, (i) the designation of a
Restricted Subsidiary as an Unrestricted Subsidiary, in the manner provided in
the definition of "Unrestricted Subsidiary," shall be an Investment that shall
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be subject to the foregoing paragraph and (ii) the transfer of the Company's
interest (or portion thereof) in an entity that has been deemed to be an
Eligible Joint Venture directly or indirectly to an Unrestricted Subsidiary
shall be an Investment (to the extent of the interest transferred) that shall be
subject to the foregoing paragraph.
SECTION 1011. Limitation on Transactions with Affiliates. The Company
shall not, and shall not permit any of its Restricted Subsidiaries or any
Eligible Joint Venture to, directly or indirectly, conduct any business or enter
into or permit to exist any transaction or series of related transactions
(including, but not limited to, the purchase, sale or exchange of Property, the
making of any Investment, the giving of any Guarantee or the rendering of any
service) with any Affiliate of the Company, such Restricted Subsidiary or such
Eligible Joint Venture, as the case may be, unless (i) such business,
transaction or series of related transactions is in the best interest of the
Company, such Restricted Subsidiary or such Eligible Joint Venture, (ii) such
business, transaction or series of related transactions is on terms no less
favorable to the Company, such Restricted Subsidiary or such Eligible Joint
Venture than those that could be obtained in a comparable arm's length
transaction with a Person that is not such an Affiliate and (iii) with respect
to such business, transaction or series of related transactions that has a fair
market value or involves aggregate payments equal to, or in excess of, $10
million, such business, transaction or series of transactions is approved by a
majority of the Board of Directors (including a majority of the Disinterested
Directors), which approval is set forth in a Board Resolution delivered to the
Trustee certifying that, in good faith, the Board of Directors believes that
such business, transaction or series of transactions complies with clauses (i)
and (ii) above.
SECTION 1012. Limitation on Liens. The Company may not Incur any Debt
that is secured, directly or indirectly, with, and the Company shall not, and
shall not permit any of its Restricted Subsidiaries or any Eligible Joint
Venture to, grant a Lien on the Property of the Company, its Restricted
Subsidiaries or any Eligible Joint Venture now owned or hereafter acquired
unless contemporaneous therewith or prior thereto the Securities are equally and
ratably secured except for (i) any such Debt secured by Liens existing on the
Property of any entity at the time such Property is acquired by the Company, any
of its Restricted Subsidiaries or any Eligible Joint Venture, whether by merger,
consolidation, purchase of such Property or otherwise, provided that such Liens
(x) are not created, incurred or assumed in contemplation of such Property being
acquired by the Company, any of its Restricted Subsidiaries or any Eligible
Joint Venture
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and (y) do not extend to any other Property of the Company, any of its
Restricted Subsidiaries or any Eligible Joint Venture, (ii) any other Debt that
is required by the terms thereof to be equally and ratably secured as a result
of the Incurrence of Debt that is permitted to be secured pursuant to another
clause of this Section 1012, (iii) Liens that are granted in good faith to
secure Debt (A) contemplated by clause (iv) of Section 1008(b) or (B)
contemplated by clauses (ii), (iii), (vi) and (viii) of Section 1009(b),
provided that, in the case of Debt owed to a Person other than the Company or a
Restricted Subsidiary, the President or Chief Financial Officer of the Company
determines in good faith, as evidenced by an Officers' Certificate, that such
Liens are required in order to effect such financing and are not materially more
restrictive, taken as a whole, than Liens, taken as a whole, customarily
accepted (or in the absence of industry custom, reasonably acceptable) in
comparable financings or comparable transactions in the applicable jurisdiction,
(iv) Liens existing on the Issue Date of the Securities, (v) Liens incurred to
secure Debt incurred by the Company as permitted by clause (vi) of Section
1008(b), provided that such Liens may not cover any Property other than that
being purchased and improvements and additions thereto, (vi) Liens on any
Property of the Company securing Permitted Working Capital Facilities,
Guarantees thereof and any Interest Rate Protection Agreements or Currency
Protection Agreements, provided that such Liens may not extend to the Capital
Stock owned by the Company in any Restricted Subsidiary of the Company or any
Eligible Joint Venture, (vii) Liens in respect of extensions, renewals,
refundings or refinancings of any Debt secured by the Liens referred to in the
foregoing clauses, provided that the Liens in connection with such renewal,
extension, refunding or refinancing shall be limited to all or part of the
specific property that was subject to the original Lien, (viii) Liens incurred
to secure obligations in respect of letters of credit, bankers' acceptances,
surety, bid, operating and performance bonds, performance guarantees or other
similar instruments or obligations (or reimbursement obligations with respect
thereto) (in each case, to the extent incurred in the ordinary course of
business), (ix) any Lien arising by reason of (A) any judgment, decree or order
of any court, so long as such Lien is being contested in good faith and is
appropriately bonded, and any appropriate legal proceedings that may have been
duly initiated for the review of such judgment, decree or order have not been
finally terminated or the period within which such proceedings may be initiated
has not expired, (B) taxes, duties, assessments, imposts or other governmental
charges that are not yet delinquent or are being contested in good faith, (C)
security for payment of worker's compensation or other insurance, (D) security
for the performance of tenders, contracts (other than contracts for the payment
of money) or leases, (E) deposits to
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secure public or statutory obligations, or to secure permitted contracts for the
purchase or sale of any currency entered into in the ordinary course of
business, (F) the operation of law in favor of carriers, warehousemen,
landlords, mechanics, materialmen, laborers, employees or suppliers, incurred in
the ordinary course of business for sums that are not yet delinquent or are
being contested in good faith by negotiations or by appropriate proceedings that
suspend the collection thereof, (G) easements, rights-of-way, zoning and similar
covenants and restrictions and other similar encumbrances or title defects that
do not in the aggregate materially interfere with the ordinary conduct of the
business of the Company, any of its Restricted Subsidiaries or any Eligible
Joint Venture or (H) leases and subleases of real property that do not interfere
with the ordinary conduct of the business of the Company, any of its Restricted
Subsidiaries or any Eligible Joint Venture and that are made on customary and
usual terms applicable to similar properties, or (x) Liens, in addition to the
foregoing, that secure obligations not in excess of $5 million in the aggregate.
SECTION 1013. Purchase of Securities Upon a Change of Control. (a) Upon
the occurrence of a Change of Control, each Holder of the Securities of each
series shall have the right to require that the Company repurchase such Holder's
Securities of such series at a purchase price in cash equal to 101% of the
principal thereof on the date of purchase plus accrued interest, if any, to the
date of purchase.
(b) Within 30 days following a Change of Control, the Company shall
mail a notice to each Holder of the Securities of each series, with a copy to
the Trustee, stating (1) that a Change of Control has occurred and that such
Holder has the right to require the Company to purchase such Holder's Securities
at the purchase price described in Section 1013(a) (the "Change of Control
Offer"), (2) the circumstances and relevant facts regarding such Change of
Control (including information with respect to pro forma historical income, cash
flow and capitalization after giving effect to such Change of Control), (3) the
purchase date (which shall be not earlier than 30 days nor later than 60 days
from the date such notice is mailed) (the "Change of Control Purchase Date"),
(4) that interest on any such Security shall continue to accrue, (5) any
Security properly tendered pursuant to the Change of Control Offer shall cease
to accrue interest after the Change of Control Purchase Date (assuming
sufficient moneys for the purchase thereof are deposited with the Trustee), (6)
that Holders electing to have a Security of any series purchased pursuant to a
Change of Control Offer shall be required to surrender the Security of such
series, with the form entitled "Option of Holder To Elect Purchase" on the
reverse of the Security completed, to the paying agent at the
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address specified in the notice prior to the close of business on the fifth
Business Day prior to the Change of Control Purchase Date, (7) that a Holder
shall be entitled to withdraw such Holder's election if the Paying Agent
receives, not later than the close of business on the third Business Day (or
such shorter periods as may be required by applicable law) preceding the Change
of Control Purchase Date, a telegram, telex, facsimile transmission or letter
setting forth the name of the Holder, the principal amount of Securities of such
series the Holder delivered for purchase, and a statement that such Holder is
withdrawing his election to have such Securities of such series purchased and
(8) that Holders that elect to have their Securities of any series purchased
only in part shall be issued new Securities having a principal amount equal to
the portion of the Securities of the series that were surrendered but not
tendered and purchased.
On the Change of Control Purchase Date, the Company shall (i) accept
for payment all Securities of any series or portions thereof tendered pursuant
to the Change of Control Offer, (ii) deposit with the Trustee money sufficient
to pay the purchase price of all Securities of such series or portions thereof
so tendered for purchase and (iii) deliver or cause to be delivered to the
Trustee the Securities of such series properly tendered together with an
Officers' Certificate identifying the Securities of such series or portions
thereof tendered to the Company for purchase. The Trustee shall promptly mail,
to the Holders of the Securities of such series properly tendered and purchased,
payment in an amount equal to the purchase price, and promptly authenticate and
mail to each Holder a new Security of the same series having a principal amount
equal to any portion of such Holder's Securities of such series that were
surrendered but not tendered and purchased. The Company shall publicly announce
the results of the Change of Control Offer on or as soon as practicable after
the Change of Control Purchase Date.
If the Company is prohibited by applicable law from making the Change
of Control Offer or purchasing Securities of any series thereunder, the Company
need not make a Change of Control Offer pursuant to this Section 1013 for so
long as such prohibition is in effect.
The Company shall comply with all applicable tender offer rules,
including, without limitation, Rule 14e-1 under the Exchange Act, in connection
with a Change of Control Offer.
SECTION 1014. Limitation on Dividends and Other Payment Restrictions
Affecting Subsidiaries. The Company shall not, and shall not permit any of its
Restricted Subsidiaries or any Eligible Joint Venture to, create or cause to
become, or as a
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result of the acquisition of any Person or Property, or upon any Person becoming
a Restricted Subsidiary or an Eligible Joint Venture, remain subject to, any
consensual encumbrance or consensual restriction of any kind on the ability of
any Restricted Subsidiary or any Eligible Joint Venture to (a) pay dividends or
make any other distributions permitted by applicable law on any Capital Stock of
such Restricted Subsidiary or such Eligible Joint Venture owned by the Company,
any other Restricted Subsidiary or any other Eligible Joint Venture, (b) make
payments in respect of any Debt owed to the Company, any other Restricted
Subsidiary of the Company or any Eligible Joint Venture, (c) make loans or
advances to the Company or to any other Restricted Subsidiary of the Company or
any other Eligible Joint Venture that is directly or indirectly owned by such
Restricted Subsidiary or such Eligible Joint Venture or (d) transfer any of its
Property to the Company or to any other Restricted Subsidiary or any other
Eligible Joint Venture that directly or indirectly owns or is owned by such
Restricted Subsidiary or such Eligible Joint Venture, other than those
encumbrances and restrictions created or existing (i) on the Issue Date of the
Securities, (ii) pursuant to this Indenture, (iii) in connection with the
Incurrence of any Debt permitted under the provisions described in clause (iii)
of Section 1009(b), provided that, in the case of Debt owed to Persons other
than the Company, its Restricted Subsidiaries and any Eligible Joint Venture,
the President or the Chief Financial Officer of the Company determines in good
faith, as evidenced by an Officers' Certificate, that such encumbrances or
restrictions are required to effect such financing and are not materially more
restrictive, taken as a whole, on the ability of the applicable Restricted
Subsidiary or the applicable Eligible Joint Venture to make the payments,
distributions, loans, advances or transfers referred to in clauses (a) through
(d) of this Section 1014 than encumbrances and restrictions, taken as a whole,
customarily accepted (or, in the absence of any industry custom, reasonably
acceptable) in comparable financings or comparable transactions in the
applicable jurisdiction, (iv) in connection with the execution and delivery of
an electric power or thermal energy purchase contract, or other contract related
to the output or product of, or services rendered by one or more Permitted
Facilities to which such Restricted Subsidiary or such Eligible Joint Venture is
a supplying party or other contracts with customers, suppliers and contractors
to which such Restricted Subsidiary or such Eligible Joint Venture is a party
and where such Restricted Subsidiary or such Eligible Joint Venture is engaged,
directly or indirectly, in the development, design, engineering, procurement,
construction, acquisition, ownership, management or operation of one or more of
such Permitted Facilities, provided that the President or the Chief Financial
Officer of the Company determines in good faith, as evidenced by an Officers'
Certificate, that such encumbrances or
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restrictions are required to effect such contracts and are not materially more
restrictive, taken as a whole, on the ability of the applicable Restricted
Subsidiary or the applicable Eligible Joint Venture to make the payments,
distributions, loans, advances or transfers referred to in clauses (a) through
(d) of this Section 1014 than encumbrances and restrictions, taken as a whole,
customarily accepted (or, in the absence of any industry custom, reasonably
acceptable) in comparable financings or comparable transactions in the
applicable jurisdiction, (v) in connection with any Acquired Debt, provided that
such encumbrance or restriction was not incurred in contemplation of such Person
becoming a Restricted Subsidiary or an Eligible Joint Venture and provided
further that such encumbrance or restriction does not extend to any other
Property of such Person at the time it became a Restricted Subsidiary or an
Eligible Joint Venture, (vi) in connection with the Incurrence of any Debt
permitted under clause (iv) of Section 1009(b), provided that, in the case of
Debt owed to Persons other than the Company and its Restricted Subsidiaries, the
President or the Chief Financial Officer of the Company determines in good
faith, as evidenced by an Officers' Certificate, that such encumbrances or
restrictions taken as a whole are not materially more restrictive than the
encumbrances and restrictions applicable to the Debt and/or equity being
exchanged or refinanced, (vii) customary non-assignment provisions in leases or
other contracts entered into in the ordinary course of business of the Company,
any Restricted Subsidiary or any Eligible Joint Venture, (viii) any restrictions
imposed pursuant to an agreement entered into for the sale or disposition of all
or substantially all of the Capital Stock or Property of any Restricted
Subsidiary or Joint Venture that apply pending the closing of such sale or
disposition, (ix) in connection with Liens on the Property of such Restricted
Subsidiary or such Eligible Joint Venture that are permitted by Section 1012 but
only with respect to transfers referred to in clause (d) of this Section 1014,
(x) in connection with the Incurrence of any Debt permitted under clause (ii) of
Section 1009(b) or (xi) in connection with the Incurrence of any Permitted
Facilities Debt permitted under clause (viii) of Section 1009(b), provided that
any such encumbrance or restriction relates only to those Restricted
Subsidiaries or Eligible Joint Ventures having a direct or indirect interest in
the Permitted Facilities in respect of which such Permitted Facilities Debt was
Incurred.
SECTION 1015. Limitation on Dispositions. (a) Subject to the provisions
of Article Eight, the Company shall not make and shall not permit any of its
Restricted Subsidiaries or any Eligible Joint Venture to make, any Asset
Disposition unless (i) the Company, the Restricted Subsidiary or the Eligible
Joint Venture, as the case may be, receives consideration at the time
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of each such Asset Disposition at least equal to the fair market value of the
Property or securities sold or otherwise disposed of (to be determined in good
faith by the Chief Financial Officer, as evidenced by an Officers' Certificate,
or, if more than $30 million, by the Board of Directors, as evidenced by a Board
resolution), (ii) at least 85% of such consideration is received in cash or Cash
Equivalents or, if less than 85%, the remainder of such consideration consists
of Property related to the business of the Company as described in the first
sentence of Section 1021, and (iii) unless otherwise required under the terms of
Senior Debt, at the Company's election, the Net Cash Proceeds are either (A)
invested in the business of the Company, any of its Restricted Subsidiaries or
any Eligible Joint Venture or (B) applied to the payment of any Debt of the
Company or of any of its Restricted Subsidiaries or any Eligible Joint Venture
(or as otherwise required under the terms of such Debt), provided that, no such
payment of Debt (x) under Permitted Working Capital Facilities or any other
revolving credit agreement shall count for this purpose unless the related loan
commitment, standby facility or the like shall be permanently reduced by an
amount equal to the principal amount so repaid and (y) owed to the Company, a
Restricted Subsidiary thereof or an Eligible Joint Venture shall count for this
purpose, provided further that such investment or such payment, as the case may
be, must be made within 365 days from the later of the date of such Asset
Disposition or the receipt by the Company, such Restricted Subsidiary or such
Eligible Joint Venture of the Net Cash Proceeds related thereto. Any Net Cash
Proceeds from Asset Dispositions that are not applied as provided in clause (A)
or (B) of the preceding sentence shall constitute "Excess Proceeds." Excess
Proceeds shall be applied, as described below, to make an offer (an "Excess
Proceeds Offer") to purchase Securities of any series at a purchase price equal
to 100% of the principal thereof, plus accrued interest, if any, to the date of
purchase.
(b) Notwithstanding the provisions of Section 1015(a), the Company, its
Restricted Subsidiaries and the Eligible Joint Ventures may exchange with other
Persons (i) Property that constitutes a Restricted Subsidiary or an Eligible
Joint Venture for Property that constitutes a Restricted Subsidiary or an
Eligible Joint Venture, (ii) Property that constitutes a Restricted Subsidiary
or an Eligible Joint Venture for Property that does not constitute a Restricted
Subsidiary or an Eligible Joint Venture, (iii) Property that does not constitute
a Restricted Subsidiary or an Eligible Joint Venture for Property that does not
constitute a Restricted Subsidiary or an Eligible Joint Venture and (iv)
Property that does not constitute a Restricted Subsidiary or an Eligible Joint
Venture for Property that constitutes a Restricted Subsidiary or an Eligible
Joint Venture, provided that in each case the fair market value of the
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Property received is at least equal to the fair market value of the Property
exchanged as determined in good faith by the Chief Financial Officer, as
evidenced by an Officers' Certificate, or, if more than $25 million, by the
Board of Directors, as evidenced by a Board resolution, provided that the
Investment in the Property received in the exchanges described in clauses (ii)
and (iii) of the prior sentence shall be subject to Section 1010.
Notwithstanding anything in the foregoing to the contrary, the Company may not,
and shall not permit any of its Restricted Subsidiaries or any Eligible Joint
Venture to, make an Asset Disposition of any of their interest in, or Property
of, any of the three geothermal facilities located together at the Naval Weapons
Center at China Lake, California, sometimes referred to as the "Coso Project,"
other than for consideration consisting solely of cash.
(c) To the extent that any or all of the Net Cash Proceeds of any
Foreign Asset Disposition are prohibited from (or delayed in) being repatriated
to the United States by applicable local law, the portion of such Net Cash
Proceeds so affected shall not be required to be applied at the time provided
above but may be retained by any Restricted Subsidiary or any Eligible Joint
Venture so long, but only so long, as the applicable local law does not permit
(or delays) repatriation to the United States. If such Net Cash Proceeds are
transferred by the Restricted Subsidiary or Eligible Joint Venture that
conducted the Foreign Asset Disposition to another Restricted Subsidiary or
Eligible Joint Venture, the Restricted Subsidiary or Eligible Joint Venture
receiving such Net Cash Proceeds must not be directly or indirectly obligated on
any Debt owed to any Person other than the Company. The Company shall take or
cause such Restricted Subsidiary or such Eligible Joint Venture to take all
actions required by the applicable local law to permit such repatriation
promptly. Once repatriation of any of such Net Cash Proceeds is permitted under
the applicable local law, repatriation shall be effected immediately and the
repatriated Net Cash Proceeds shall be applied in the manner set forth in this
Section 1015(c) as if such Asset Disposition had occurred on the date of such
repatriation. In addition, if the Chief Financial Officer determines, in good
faith, as evidenced by an Officers' Certificate, that repatriation of any or all
of the Net Cash Proceeds of any Foreign Asset Disposition would have a material
adverse tax consequence to the Company, the Net Cash Proceeds so affected may be
retained outside of the United States by the applicable Restricted Subsidiary or
the applicable Eligible Joint Venture for so long as such material adverse tax
consequence would continue. Notwithstanding the foregoing provisions of this
paragraph to the contrary, if applicable local law prohibits (or delays) the
repatriation of Net Cash Proceeds of a Foreign Asset Disposition but such local
law does not
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prohibit the application of such Net Cash Proceeds pursuant to the first
sentence of this Section 1015(a), the Company may apply such Net Cash Proceeds
pursuant to such provision.
(d) If the Securities tendered pursuant to an Excess Proceeds Offer
have an aggregate purchase price that is less than the Excess Proceeds available
for the purchase of the Securities, the Company may use the remaining Excess
Proceeds for general corporate purposes without regard to the provisions of this
Section 1015(d). The Company shall not be required to make an Excess Proceeds
Offer pursuant to this Section 1015 if the Excess Proceeds available therefor
are less than $10 million, provided that the lesser amounts of such Excess
Proceeds shall be carried forward and cumulated for each 36 consecutive month
period for purposes of determining whether an Excess Proceeds Offer is required
with respect to any Excess Proceeds of any subsequent Asset Dispositions. Any
such lesser amounts so carried forward and cumulated need not be segregated or
reserved and may be used for general corporate purposes, provided that such use
shall not reduce the amount of cumulated Excess Proceeds or relieve the Company
of its obligation hereunder to make an Excess Proceeds Offer with respect
thereto.
(e) The Company shall make an Excess Proceeds Offer by mailing to each
Holder, with a copy to the Trustee, within 30 days after the receipt of Excess
Proceeds that cause the cumulated Excess Proceeds to exceed $10 million, a
written notice that shall specify the purchase date, which shall not be less
than 30 days nor more than 60 days after the date of such notice (the "Excess
Proceeds Purchase Date"), that shall contain certain information concerning the
business of the Company that the Company believes in good faith shall enable the
Holders to make an informed decision and that shall contain information
concerning the procedures applicable to the Excess Proceeds Offer (including,
without limitation, the right of withdrawal) and the effect of such offer on the
Securities tendered. Holders that elect to have their Securities purchased shall
be required to surrender such Securities at least one Business Day prior to the
Excess Proceeds Purchase Date. If at the expiration of the Excess Proceeds Offer
period the aggregate purchase price of the Securities of the series properly
tendered by Holders pursuant to the Excess Proceeds Offer exceeds the amount of
such Excess Proceeds, the Securities of such series or portions of Securities to
be accepted for purchase shall be selected by the Trustee in such manner as the
Trustee deems to be fair and appropriate in the circumstances.
On the Excess Proceeds Purchase Date, the Company shall (i) accept for
payment on a pro rata basis Securities of any series or portions thereof
tendered pursuant to the Excess
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Proceeds Offer, (ii) deposit with the Paying Agent money in immediately
available funds sufficient to pay the aggregate purchase price of all the
Securities of such series or portions thereof so accepted and (iii) deliver to
the Trustee Securities so accepted together with an Officers' Certificate
stating the Securities of such series or portions thereof tendered to the
Company. The Paying Agent shall promptly mail to the Holders of each Security so
accepted payment in an amount equal to the aggregate purchase price, and the
Trustee shall promptly authenticate and mail to the Holders of each Security so
accepted payment in an amount equal to the purchase price thereof, and the
Trustee shall promptly authenticate and mail to such Holders new Securities of
the same series equal in principal amount to any portion of the Security
surrendered that was not purchased. The Company shall make a public announcement
of the results of the Excess Proceeds Offer as soon as practicable after the
Excess Proceeds Purchase Date. For the purposes of this Section 1015, the
Trustee shall act as the Paying Agent.
If the Company is prohibited by applicable law from making the Excess
Proceeds Offer or purchasing Securities of any series thereunder, the Company
need not make an Excess Proceeds Offer pursuant to this Section 1015 for so long
as such prohibition is in effect.
The Company shall comply with all applicable tender offer rules,
including, without limitation, Rule 14e-1 under the Exchange Act, in connection
with an Excess Proceeds Offer.
SECTION 1016. Limitation on Certain Sale-Leasebacks. The Company shall
not, and shall not permit any of its Restricted Subsidiaries or any Eligible
Joint Venture to, Incur or otherwise become obligated with respect to any
sale-leaseback (other than a sale-leaseback with respect to a Permitted Facility
that is Non-Recourse) unless, (i) (a) if effected by the Company, the Company
would be permitted to Incur such obligation under Section 1008 or, (b) if
effected by a Restricted Subsidiary or an Eligible Joint Venture, such
Restricted Subsidiary or such Eligible Joint Venture would be permitted to Incur
such obligation under Section 1009(b), assuming for the purpose of this Section
1016 and Section 1008 and 1009 that (x) the obligation created by such
sale-leaseback is a Capitalized Lease and (y) the Capitalized Lease Obligation
with respect thereto is the Attributable Value thereof, (ii) the Company, such
Restricted Subsidiary or such Eligible Joint Venture is permitted to grant a
Lien with respect to the property that is the subject of such sale-leaseback
under Section 1012 of this Indenture, (iii) the proceeds of such sale-leaseback
are at least equal to the fair market value of the property sold (determined in
good faith as evidenced by an Officers' Certificate delivered to the Trustee in
respect of a
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transaction involving less than $25 million, or, if equal to or in excess of $25
million, by the Board of Directors, as evidenced by a Board Resolution) and (iv)
the Net Cash Proceeds of the sale-leaseback are applied pursuant to Section
1015.
SECTION 1017. Provision of Financial Information. Whether or not the
Company is subject to Section 13(a) or 15(d) of the Exchange Act, or any
successor provision thereto, the Company shall file with the Commission the
annual reports, quarterly reports and other documents that the Company would
have been required to file with the Commission pursuant to such Section 13(a) or
15(d) or any successor provision thereto if the Company were subject thereto,
such documents to be filed with the Commission on or prior to the respective
dates by which the Company would have been required to file them. The Company
shall also in any event (a) within 15 days of each such date (i) transmit by
mail to all Holders, as their names and addresses appear in the Security
Register, without cost to such Holders, and (ii) file with the Trustee copies of
the annual reports, quarterly reports and other documents (without exhibits)
which the Company would have been required to file with the Commission pursuant
to Section 13(a) or 15(d) of the Exchange Act or any successor provisions
thereto if the Company were subject thereto and (b) if filing such documents by
the Company with the Commission is not permitted under the Exchange Act,
promptly upon written request, supply copies of such documents (without
exhibits) to any prospective Holder.
SECTION 1018. Limitation on Sale of Subsidiary Preferred Stock. The
Company shall not permit any of its Restricted Subsidiaries or any Eligible
Joint Venture to create, assume or otherwise cause or suffer to exist any
Preferred Stock except: (i) Preferred Stock outstanding on the date of this
Indenture, including Preferred Stock issued as dividends in respect of such
Preferred Stock pursuant to the terms of the agreement or instrument that
governs such Preferred Stock as in effect on the Issue Date of the Securities,
(ii) Preferred Stock held by the Company, a Restricted Subsidiary of the Company
or an Eligible Joint Venture, (iii) Preferred Stock issued by a Person prior to
the time (a) such Person becomes a Restricted Subsidiary or an Eligible Joint
Venture, (b) such Person merges with or into another Restricted Subsidiary or
another Eligible Joint Venture or (c) a Restricted Subsidiary or an Eligible
Joint Venture merges with or into such Person (in a transaction in which such
Person becomes a Restricted Subsidiary or an Eligible Joint Venture), provided
that such Preferred Stock was not issued in anticipation of such Person becoming
a Restricted Subsidiary or an Eligible Joint Venture or of such merger and (iv)
Preferred Stock issued or agreed to be issued by a Restricted Subsidiary or an
Eligible Joint Venture in connection with the financing of the
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construction, design, engineering, procurement, equipping, developing,
operation, ownership, management, servicing or acquisition of one or more
Permitted Facilities in which the Company or one or more Restricted Subsidiaries
or Eligible Joint Ventures has a direct or indirect interest or the retirement
of Debt or Preferred Stock secured by any such Permitted Facility or in order to
enhance the repatriation of equity, advances or income or the increase of
after-tax funds available for distribution to the owners of such Permitted
Facility, (v) Preferred Stock issued or agreed to be issued by a Restricted
Subsidiary or an Eligible Joint Venture in satisfaction of legal requirements
applicable to a Permitted Facility or to maintain the ordinary course of conduct
of such Restricted Subsidiary's or such Eligible Joint Venture's business in the
applicable jurisdiction and (vi) Preferred Stock that is exchanged for, or the
proceeds of which are used to refinance, any Preferred Stock permitted to be
outstanding pursuant to clauses (i) through (v) hereof (or any extension,
renewal or refinancing thereof), having a liquidation preference not to exceed
the liquidation preference of the Preferred Stock so exchanged or refinanced and
having a redemption period no shorter than the redemption period of the
Preferred Stock so exchanged or refinanced.
SECTION 1019. Statement by Officers as to Default; Compliance
Certificates. (a) The Company shall deliver to the Trustee, within 120 days
after the end of each fiscal year, an Officers' Certificate stating that a
review of the activities of the Company, its Restricted Subsidiaries and the
Eligible Joint Ventures (signed by a signatory prescribed under the Trust
Indenture Act) during the preceding fiscal year has been made under the
supervision of the signing officers with a view to determining whether the
Company has kept, observed, performed and fulfilled its obligations under this
Indenture and whether the Restricted Subsidiaries and the Eligible Joint
Ventures are in compliance with all covenants of this Indenture applicable to
them and further stating, as to each such officer signing such certificate, that
to the best of his knowledge each has kept, observed, performed and fulfilled
each and every covenant contained in this Indenture and is not in default in the
performance or observance of any of the terms, provisions, and conditions hereof
(or, if a Default or Event of Default shall have occurred, describing all such
Defaults or Events of Default of which he may have knowledge and what action
each is taking or proposes to take with respect thereto).
(b) The Company shall, so long as any of the Securities of any series
are outstanding, deliver to the Trustee, forthwith upon any officer becoming
aware of (i) any Default or Event of Default or (ii) any event of default under
any other mortgage, indenture or instrument referred to in Section 501(5),
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an Officers' Certificate specifying such Default, Event of Default or other
event of default and what action the Company is taking or proposes to take with
respect thereto.
SECTION 1020. Waiver of Certain Covenants. The Company may omit in any
particular instance to comply with any covenant or condition set forth in
Section 801, provided pursuant to Section 901(2) and set forth in Sections 1004
to 1012, inclusive, Section 1014 and Sections 1016 through 1018, inclusive, and
Section 1021 if before the time for such compliance the Holders of a majority in
principal amount at Stated Maturity of the Outstanding Securities of such series
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.
SECTION 1021. Limitation on Business. The Company shall, and shall
cause its Restricted Subsidiaries and the Eligible Joint Ventures to, engage
only in (i) the ownership, design, engineering, procurement, construction,
development, acquisition, operation, servicing, management or disposition of
Permitted Facilities, (ii) the ownership, creation, development, acquisition,
servicing, management or disposition of Restricted Subsidiaries and Joint
Ventures that own, construct, develop, design, engineer, procure, acquire,
operate, service, manage or dispose of Permitted Facilities, (iii) obtaining,
arranging or providing financing incident to any of the foregoing and (iv) other
related activities incident to any of the foregoing. The Company shall not, and
shall not permit any of its Restricted Subsidiaries or any Eligible Joint
Venture to, make any Investment or otherwise acquire any Property that is not
directly related to the business of the Company as described in the preceding
sentence (collectively, the "Ineligible Investments") other than as a part of an
Investment or an acquisition of Property that is predominantly and directly
related to the business of the Company as described above, and if the aggregate
fair market value of such Ineligible Investments in the aggregate exceeds 20%
(the "Percentage Limit") of the total assets of the Company and its consolidated
Restricted Subsidiaries (as determined in accordance with GAAP) as determined in
good faith by the Chief Financial Officer, as evidenced by an Officers'
Certificate, the Company, its Restricted Subsidiaries and the Eligible Joint
Ventures must cease acquiring any additional Ineligible Investments and, within
18 months of the acquisition that caused the Ineligible Assets to exceed the
Percentage Limit, must return to compliance with the Percentage Limit by
disposing
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of Ineligible Assets or otherwise, provided that such 18-month period may be
extended up to an additional six months if, despite the Company's active efforts
during such 18-month period to dispose of such Ineligible Investments or to
otherwise come into compliance with such Percentage Limit, the Company is unable
to do so because of regulatory restrictions or delays or adverse market
conditions.
ARTICLE ELEVEN
REDEMPTION OF SECURITIES
SECTION 1101. Right of Redemption. The Securities of any series may be
redeemed at the election of the Company, in the amounts, at such time and at the
Redemption Prices specified in the form of Security of such series hereinbefore
set forth (together with any applicable accrued and unpaid interest to the
Redemption Date) and subject to the conditions specified in the form of Security
of such series hereinafter set forth.
SECTION 1102. Applicability of Article. Redemption of Securities of any
series at the election of the Company, as permitted by this Indenture and the
provisions of the Securities of such series, shall be made in accordance with
such provisions 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 or pursuant to a Board Resolution. In case of any redemption at the election
of the Company pursuant to Section 1101 of less than all the Securities of any
series, the Company shall, at least 60 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 of such series to be redeemed.
SECTION 1104. Selection by Trustee of Securities to Be Redeemed. If
less than all the Outstanding Securities of any series are to be redeemed, the
Securities or portions of Securities to be redeemed or accepted shall be
selected by the Trustee pro rata or otherwise in such manner as the Trustee
deems to be fair and appropriate in the circumstances, provided that the Trustee
shall redeem Securities of that series to be redeemed only in the minimum
authorized denominations of Securities of such series.
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The Trustee shall promptly notify the Company and each Security
Registrar in writing of the Securities selected for redemption and, in the case
of any Securities selected for partial redemption, the principal amount thereof
to be redeemed.
For all purposes of this Indenture and or the Securities, 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
that has been or is to be redeemed.
SECTION 1105. Notice of Redemption. Notice of redemption shall be given
as provided in Section 106 not less than 30 nor more than 60 days prior to the
Redemption Date, to each Holder of Securities to be redeemed.
All notices of redemption shall state:
(1) the Redemption Date,
(2) the Redemption Price,
(3) if less than all the Outstanding Securities of any series are to be
redeemed, the identification (and, in the case of partial redemption, the
principal amounts) of the particular Securities to be redeemed, including
CUSIP Numbers,
(4) that on the Redemption Date the Redemption Price shall become due
and payable upon each such Security to be redeemed and that, unless the
Company shall default in the payment of the Redemption Price and any
applicable accrued interest, interest thereon will cease to accrue on and
after said date, and
(5) the name of the Paying Agent or Agents and the place or places
where such Securities are to be surrendered for payment of the Redemption
Price.
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 shall be irrevocable.
SECTION 1106. Deposit of Redemption Price. 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 sufficient to pay the Redemption
Price of, and (except if the Redemption Date shall be an Interest
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Payment Date) any applicable accrued and unpaid interest on, all the Securities
of the series that are to be redeemed on that date.
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 and any applicable accrued and
unpaid interest) such Securities shall not 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 any applicable
accrued and unpaid 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 310.
If any Security called for redemption in accordance with the election
of the Company made pursuant to Section 1101 shall not be so paid upon surrender
thereof for redemption, the unpaid Redemption Price thereof shall, until paid,
bear interest from the Redemption Date at the rate or manner provided by the
Security.
SECTION 1108. Securities Redeemed in Part. Any Security that 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 the same
series, 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 amount of the Security so surrendered.
ARTICLE TWELVE
DEFEASANCE AND COVENANT DEFEASANCE
SECTION 1201. Company's Option to Effect Defeasance or Covenant
Defeasance. The Company may elect, at its option at any
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time, to have Section 1202 or Section 1203 applied to the Outstanding Securities
of or within any series (as a whole and not in part) upon compliance with the
conditions set forth below in this Article Twelve. Any such election shall be
evidenced by a Board Resolution.
SECTION 1202. Defeasance and Discharge. Upon the Company's exercise of
its option to have this Section 1202 applied to the Outstanding Securities of or
within a series (as a whole and not in part), the Company shall be deemed to
have been discharged from its obligations with respect to such Securities as
provided in this Section 1202 on and after the 123rd day after the conditions
set forth in Section 1204 are satisfied (hereinafter called "Defeasance") (or
immediately if an Opinion of Counsel is delivered to the effect described in
clause (C) (y) of paragraph (2) of Section 1204). For this purpose, such
Defeasance means that the Company shall be deemed to have paid and discharged
the entire indebtedness represented by such Securities and to have satisfied all
its other obligations under such Securities and this Indenture insofar as such
Securities are concerned (and the Trustee, at the expense of the Company, shall
execute proper instruments acknowledging the same), subject to the following
which shall survive until otherwise terminated or discharged hereunder: (1) the
rights of Holders of such Securities to receive, solely from the trust fund
described in Section 1204 and as more fully set forth in such Section, payments
in respect of the principal of and any premium and interest on such Securities
when payments are due, (2) the Company's obligations with respect to such
Securities under Sections 307, 308, 309, 1002, 1003 and 1004 (only with respect
to the corporate existence and rights of the Company), (3) the rights, powers,
trusts, duties and immunities of the Trustee under this Indenture, (4) Article
Eleven and (5) this Article Twelve. Subject to compliance with this Article
Twelve, the Company may exercise its option to have this Section 1202 applied to
the Outstanding Securities (as a whole and not in part) notwithstanding the
prior exercise of its option to have Section 1203 applied to such Securities.
SECTION 1203. Covenant Defeasance. Upon the Company's exercise of its
option to have this Section applied to the Outstanding Securities of or within a
series (as a whole and not in part), (i) the Company, its Restricted
Subsidiaries and its Eligible Joint Ventures shall be released from its
obligations under Section 801(iii), Sections 1005 through 1018, inclusive,
Section 1021, and any covenant provided pursuant to Section 901(2) and (ii) the
occurrence of any event specified in Section 501(1) (solely with respect to
Offers to Purchase), Section 501(3), Section 501(4) (with respect to any of
Section 801(iii) and Sections 1005 through 1018, inclusive, Section 1021, and
any
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such covenants provided pursuant to Section 901(2)), Section 501(5) or Section
501(6) shall be deemed not to be or result in an Event of Default, in each case
with respect to such Securities as provided in this Section on and after the
date the conditions set forth in Section 1204 are satisfied (hereinafter called
"Covenant Defeasance"). For this purpose, such Covenant Defeasance means that,
with respect to such Securities, the Company may omit to comply with and shall
have no liability in respect of any term, condition or limitation set forth in
any such specified Section (to the extent so specified in the case of Sections
501(1) and 501(4)), whether directly or indirectly by reason of any reference
elsewhere herein to any such Section or by reason of any reference in any such
Section to any other provision herein or in any other document; but the
remainder of this Indenture and such Securities shall be unaffected thereby.
SECTION 1204. Conditions to Defeasance or Covenant Defeasance. The
following shall be the conditions to the application of Section 1202 or Section
1203 to the Outstanding Securities of or within a series:
(1) The Company shall irrevocably have deposited or caused to be
deposited with the Trustee (or another trustee that satisfies the
requirements contemplated by Section 609 and agrees to comply with the
provisions of this Article applicable to it) as trust funds in trust for the
purpose of making the following payments, specifically pledged as security
for, and dedicated solely to the benefits of the Holders of such Securities,
(A) money in an amount, or (B) U.S. Government Obligations that through the
scheduled payment of principal and interest in respect thereof in accordance
with their terms shall provide, not later than one day before the due date
of any payment, money in an amount, or (C) a combination thereof, in each
case sufficient, in the opinion of a nationally recognized firm of
independent public accountants expressed in a written certification thereof
delivered to the Trustee, to pay and discharge, and which shall be applied
by the Trustee (or any such other qualifying trustee) to pay and discharge,
the principal of, premium if any and any installment of accrued interest on
such Securities on the respective Stated Maturities thereof or, if the
Company makes arrangements satisfactory to the Trustee for the redemption of
the Securities prior to their Stated Maturity, on any earlier Redemption
Date, in accordance with the terms of this Indenture and such Securities.
(2) In the event of an election to have Section 1202 apply to the
Outstanding Securities, the Company shall have delivered to the Trustee (A)
either (X) an Opinion of
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Counsel to the effect that Holders shall not recognize income, gain or loss for
federal income tax purposes as a result of such deposit, defeasance and
discharge and shall be subject to federal income tax on the same amount and in
the same manner and at the same times as would have been the case if such
deposit, defeasance and discharge had not occurred and the Company had paid or
redeemed such Securities on the applicable dates, which Opinion of Counsel must
be based upon a ruling of the Internal Revenue Service to the same effect or a
change in applicable federal income tax law or related Treasury regulations
after the date of the Indenture or (y) a ruling directed to the Trustee or the
Company received from the Internal Revenue Service to the same effect as the
aforementioned Opinion of Counsel, (B) an Opinion of Counsel to the effect that
the creation of the defeasance trust does not violate the Investment Company Act
of 1940 and (C) an Opinion of Counsel to the effect that either (x) after the
passage of 123 days following the deposit, the trust fund shall not be subject
to the effect of Section 547 or 548 of the U.S. Bankruptcy Code or Section 15 of
the New York Debtor and Creditor Law or (y) based upon existing precedents, if
the manner were properly briefed, a court should hold that the deposit of moneys
and/or U.S. Government Obligations as provided in Section 1204(1) would not
constitute a preference voidable under Section 547 or 548 of the U.S. Bankruptcy
Code or Section 15 of the New York Debtor and Creditor Law.
(3) In the event of an election to have Section 1203 apply to the
Outstanding Securities, the Company shall have delivered to the Trustee (i)
an Opinion of Counsel to the effect that the Holders of such Outstanding
Securities shall not recognize income, gain or loss for Federal income tax
purposes as a result of the deposit and Covenant Defeasance to be effected
with respect to such Securities and shall be subject to Federal income tax
on the same amount, in the same manner and at the same times as would be the
case if such deposit and Covenant Defeasance were not to occur and the
Company had paid or redeemed such Securities on the applicable dates, (ii)
an Opinion of Counsel to the effect that the creation of the defeasance
trust does not violate the Investment Company Act of 1940 and (iii) an
Opinion of Counsel to the effect that either (x) after the passage of 123
days following the deposit, the trust fund shall not be subject to the
effect of Section 547 or 548 of the U.S. Bankruptcy Code or Section 15 of
the New York Debtor and Creditor Law or (y) based upon existing precedents,
if the manner were properly briefed, a court should hold that the deposit of
moneys and/or U.S. Government Obligations as provided in Section 1204(1)
would not constitute a
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preference voidable under Section 547 or 548 of the U.S. Bankruptcy Code or
Section 15 of the New York Debtor and Creditor Law.
(4) Immediately after giving effect to such deposit on a pro forma
basis, no Default or Event of Default with respect to the Outstanding
Securities shall have occurred and be continuing at the time of such deposit
or (unless an Opinion of Counsel is delivered to the effect described in
Section 1204(2)(C)(y) or 1204(3)(iii)(y)) during the period ending on the
123rd day after the date of such deposit.
(5) Such Defeasance or Covenant Defeasance shall not cause the Trustee
to have a conflicting interest within the meaning of the Trust Indenture Act
(assuming all Securities are in default within the meaning of such Act).
(6) Such Defeasance or Covenant Defeasance shall not result in a breach
or violation of, or constitute a default under, any other agreement or
instrument to which the Company is a party or by which it is bound.
(7) Such Defeasance or Covenant Defeasance shall not result in the
trust arising from such deposit constituting an investment company within
the meaning of the Investment Company Act of 1940, as amended, unless such
trust shall be registered under such Act or exempt from registration
thereunder.
(8) The Company shall have delivered to the Trustee an Officers'
Certificate and an Opinion of Counsel, each stating that all conditions
precedent with respect to such Defeasance or Covenant Defeasance have been
complied with.
(9) If the Securities are listed on a national securities exchange, the
Company shall have delivered to the Trustee an Opinion of Counsel to the
effect that the Securities shall not be delisted as a result of such
deposit, defeasance and discharge.
SECTION 1205. Deposited Money and U.S. Government Obligations to Be
Held in Trust; Miscellaneous Provisions. Subject to the provisions of the last
paragraph of Section 1003, all money and U.S. Government Obligations (including
the proceeds thereof) deposited with the Trustee or other qualifying trustee
(solely for purposes of this Section 1205 and Section 1206, the Trustee and any
such other trustee are referred to collectively as the "Trustee") pursuant to
Section 1204 or otherwise in respect of the Outstanding Securities of any series
shall be held in trust and applied by the Trustee, in accordance with the
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provisions of such Securities and this Indenture, to the payment, either
directly or through any such Paying Agent (other than the Company acting as its
own Paying Agent) as the Trustee may determine, to the Holders of such
Securities, of all sums due and to become due thereon in respect of principal
and any premium and interest, but money so held in trust need not be segregated
from other funds except to the extent required by law.
The Company shall pay and indemnify the Trustee against any tax, fee or
other charge imposed on or assessed against the U.S. Government Obligations
deposited pursuant to Section 1204 or the principal and interest received in
respect thereof other than any such tax, fee or other charge that by law is for
the account of the Holders of Outstanding Securities.
Anything in this Article Twelve to the contrary notwithstanding, the
Trustee shall deliver or pay to the Company from time to time upon Company
Request any money or U.S. Government Obligations held by it as provided in
Section 1204 that, in the opinion of a nationally recognized firm of independent
public accountants expressed in a written certification thereof delivered to the
Trustee, are in excess of the amount thereof that would then be required to be
deposited to effect the Defeasance or Covenant Defeasance, as the case may be,
with respect to the Outstanding Securities.
SECTION 1206. Reinstatement. If the Trustee or the Paying Agent is
unable to apply any money in accordance with this Article Twelve with respect to
any Securities of any series by reason of any order or judgment of any court or
governmental authority enjoining, restraining or otherwise prohibiting such
application, then the obligations under this Indenture and such Securities of
such series from which the Company has been discharged or released pursuant to
Section 1202 or 1203 shall be revived and reinstated as though no deposit had
occurred pursuant to this Article Twelve with respect to such Securities of such
series, until such time as the Trustee or Paying Agent is permitted to apply all
money held in trust pursuant to Section 1205 with respect to such Securities in
accordance with this Article Twelve; provided that if the Company makes any
payment of principal of or any premium or interest on any such Security of such
series following such reinstatement of its obligations, the Company shall be
subrogated to the rights (if any) of the Holders of such Securities of such
series to receive such payment from the money so held in trust.
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 as of the day and year first above written.
CALENERGY COMPANY, INC.
By: /s/ Steven A. McArthur
-------------------------------
Name: Steven A. McArthur
Title: Senior Vice President,
General Counsel and
Secretary
IBJ SCHRODER BANK & TRUST COMPANY
By: /s/ Terence Rawlins
--------------------------------
Name: Terence Rawlins
Title: Assistant Vice President
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EXHIBIT A
---------
Form of Senior Debt Security
(A) FACE OF SENIOR DEBT SECURITY
CALENERGY COMPANY, INC.
___% Senior Notes due _____
No. ________________ $______
CUSIP No.__________
CalEnergy Company, Inc., a corporation duly organized and existing
under the laws of the State of Delaware (herein called the "Company", which term
includes any successor Person under the Indenture hereinafter referred to), for
value received, hereby promises to pay to _________________, or registered
assigns, the principal sum of __________________ Dollars on _______ __, ____,
and to pay interest thereon from their date of issue and thereafter from the
most recent Interest Payment Date to which interest has been paid or duly
provided for, semi-annually on ____ and _____ in each year, commencing _______
__, ___ at the rate of ___% per annum, until the principal hereof is paid or
duly provided for, provided that any principal and premium, if any, and any such
installment of interest, that is overdue shall bear interest at the rate of ___%
per annum (to the extent that the payment of such interest shall be legally
enforceable), from the dates such amounts are due until they are paid or duly
provided for, and such interest shall be payable on demand. The interest so
payable, and punctually paid or duly provided for, on any Interest Payment Date
shall, as provided in such 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 Regular Record Date for such interest, which shall be the _____
or ______ (whether or not a Business Day), as the case may be, next preceding
such Interest Payment Date. Any such interest not so punctually paid or duly
provided for shall forthwith 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 Trustee, notice whereof 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 on which the Securities may be listed, and upon such notice as may be
required by such exchange, all as more fully provided in said Indenture.
A-1
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Payment of the principal of (and premium, if any) and any interest on
this Security shall be made at the office or agency of the Company maintained
for that purpose in the Borough of Manhattan, The City of New York, or at such
additional offices or agencies as the Company from time to time may designate
for such purpose, in such coin or currency of the United States of America as at
the time of payment is legal tender for payment of public and private debts,
provided that payment of the principal of (and premium, if any, on) this
Security shall be made only upon presentation and surrender hereof at any such
office or agency and, 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.
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.
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.
CALENERGY COMPANY, INC.
By: --------------------
Title:
Attest:
- ---------------------
Title:
Form of Trustee's Certificate of Authentication.
-----------------------------------------------
This is one of the Securities of the series designated therein referred to in
the within-mentioned Indenture.
Dated:
------------------------
A-2
<PAGE>
IBJ SCHRODER BANK & TRUST COMPANY,
as Trustee
By:
-------------------------------
Authorized Signatory
A-3
<PAGE>
(B) FORM OF REVERSE OF SENIOR DEBT SECURITY
This Security is one of a duly authorized issue of Securities of the
Company designated as its ___% Senior Notes due ____ (herein called the
"Securities"), limited in aggregate principal amount of $_____ issued and to be
issued under an Indenture, dated as of October 15, 1997 (herein called the
"Indenture", which term shall have the meaning assigned to it in such
instrument), between the Company and IBJ Schroder Bank & Trust Company, as
Trustee (herein called the "Trustee" which term includes any successor trustee
under the Indenture), and reference is hereby made to the Indenture for a
statement of the respective rights, limitations of rights, duties and immunities
thereunder of the Company, the Trustee 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 subject to redemption upon not less than 30 nor more
than 60 days' notice by mail, at any time on or after _________ __, ____ and
prior to maturity, 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 commencing on or after __________ __ of
the years indicated,
Year Redemption Price
---- ----------------
together in the case of any such redemption with accrued interest, if any, to
the Redemption Date, but interest installments whose Stated Maturity is on or
prior to such Redemption Date shall 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.
The Securities do not have the benefit of any sinking fund obligations.
A-4
<PAGE>
Upon the occurrence of a Change of Control, the Company shall be
required to make an Offer to Purchase all or a specified portion of the
Securities at a Purchase Price in cash equal to 101 percent of the principal
amount thereof on any Purchase Date plus accrued and unpaid interest, if any, to
such Purchase Date. If the Company, any Restricted Subsidiary or any Eligible
Joint Venture consummates an Asset Disposition, under certain circumstances, the
Company shall be required to make an Offer to Purchase up to all or a specified
portion of the Securities at a Purchase Price in cash equal to 100 percent of
the principal amount thereof on any Purchase Date, plus accrued and unpaid
interest, if any, to such Purchase Date, in an amount equal to any Net Cash
Proceeds from such an Asset Disposition that are not used to reinvest in the
business of the Company and/or repay in a permanent reduction of Debt of the
Company or Debt of its Restricted Subsidiaries or Eligible Joint Ventures.
Holders of Securities shall receive notice of any such Offer to Purchase from
the Company prior to the related Purchase Date and may elect to have such
Securities purchased by completing the form entitled "Option of Holder to Elect
Purchase" appearing on the reverse side of the Security.
In the event of redemption, or purchase pursuant to an Offer to
Purchase, of this Security in part only, a new Security or Securities for the
portion hereof not redeemed or purchased shall be issued in the name of the
Holder hereof upon surrender of this Security to the Trustee for cancellation
thereof.
The Indenture contains provisions for defeasance at any time of the
entire Debt of this Security or certain restrictive covenants and Events of
Default with respect to this Security, including, without limitation, covenants
relating to Offers to Purchase, in each case upon compliance with certain
conditions set forth in the Indenture.
If an Event of Default shall occur and be continuing, there may be
declared due and payable the Default Amount of the Securities, in the manner and
with the effect provided in the Indenture. The Default Amount in respect of this
Security as of any particular date shall equal 100% of the principal amount of
this Security plus accrued and unpaid interest, if any, to such date.
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 a
majority in aggregate principal amount of the Securities at the time
Outstanding. The Indenture also contains provisions
A-5
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permitting the Holders of specified percentages in aggregate principal amount of
the Securities of any series at the time Outstanding, on behalf of the Holders
of all Securities of such series, to waive compliance by the Company with
certain provisions of the Indenture and certain past defaults under the
Indenture and their consequences in each case with respect to the Securities of
such series. In addition, without the consent of any Holder of a Security, the
Indenture and the Securities may be amended and supplemented to cure any
ambiguity or inconsistency, make other changes that shall not adversely affect
the rights of the Holders or certain other matters specified in the Indenture.
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.
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 with respect
to the Securities, the Holders of not less than 25 percent in principal amount
of the Securities of this series at the time Outstanding 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
Securities of this series at the time 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 certain suits described in the Indenture, including any suit
instituted by the Holder of this Security for the enforcement of any payment of
principal hereof or any premium or interest hereon on or after the respective
due dates expressed herein (or, in the case of redemption, on or after the
Redemption Date or, in the case of any purchase of this Security required to be
made pursuant to an Offer to Purchase, on or after the Purchase Date).
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 at the times, place, manner and rate, and in the coin
or currency, herein prescribed.
A-6
<PAGE>
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 in the Borough of Manhattan, The City of New
York (which initially shall be the corporate trust office of the Trustee), 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, shall be issued to the designated transferee or transferees.
The Securities are issuable only in registered form without coupons in
denominations of $1,000 and any integral multiple thereof. As provided in the
Indenture and subject to certain limitations therein set forth, Securities are
exchangeable for a like aggregate principal amount of Securities of like tenor
of a different authorized denomination, as requested by the Holder surrendering
the same.
No service charge shall be made 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.
A director, officer, employee, stockholder or incorporator of the
Company shall not have any liability for any obligations of the Company under
this Security or the Indenture or for any claim based on, in respect of or by
reason of such obligations or their creation. Each Holder by accepting this
Security waives and releases all such liability. Such waiver and release are
part of the consideration for the issuance of this Security.
Prior to due presentment of this 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 this Security is registered as the owner hereof for all
purposes, whether or not this Security is overdue, and neither the Company, the
Trustee nor any such agent shall be affected by notice to the contrary.
Interest on this Security shall be computed on the basis of a 360-day
year of twelve 30-day months.
All terms used in this Security that are defined in the Indenture shall
have the meanings assigned to them in the Indenture.
A-7
<PAGE>
THE INDENTURE AND THIS SECURITY SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, INCLUDING SECTION 5-1401 OF
THE NEW YORK GENERAL OBLIGATIONS LAW, BUT OTHERWISE, WITHOUT REGARD TO
PRINCIPLES OF CONFLICT OF LAWS.
A-8
<PAGE>
ASSIGNMENT FORM
To assign this Security, fill in the form below: (I) or (we) assign and
transfer this Security to
- --------------------------------------------------------------------------------
(Insert assignee's soc. sec. or tax I.D. no.)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
(Print or type assignee's name, address and zip code)
and irrevocably appoint
---------------------------------------------------------
agent to transfer this Security on the books of the Company. The agent may
substitute another to act for him.
Dated: Your Signature:
-----------------------------------------------
(sign exactly as name appears on the other
side of this Security)
Signature Guarantee:
-----------------------------------------------------------
(Signature must be guaranteed by a financial institution that is a member of the
Securities Transfer Agent Medallion Program ("STAMP"), the Stock Exchange
Medallion Program ("SEMP"), the New York Stock Exchange, Inc. Medallion
Signature Program ("MSP") or such other signature guarantee program as may be
determined by the Security Registrar in addition to, or in substitution for,
STAMP, SEMP or MSP, all in accordance with the Securities Exchange Act of 1934,
as amended.)
A-9
<PAGE>
OPTION OF HOLDER TO ELECT PURCHASE
If you wish to elect to have all or any portion of the Securities purchased by
the Company pursuant to Section 1013 ("Change of Control Offer") or Section 1015
("Excess Proceeds Offer") of the Indenture, check the applicable boxes:
_ _
|_| Change of Control Offer: |_| Excess Proceeds Offer:
_ _
in whole |_| in whole |_|
_ _
in part |_| in part |_|
Amount to be Amount to be
purchased: $ purchased: $
----------- ------------
Dated: Signature:
------- ----------------------------
(Sign exactly as your
name appears on the
other side of this
Security)
Signature
Guarantee:
-----------------------
(Signature must be guaranteed by a financial institution that is a
member of the Securities Transfer Agent Medallion Program ("STAMP"),
the Stock Exchange Medallion Program ("SEMP"), the New York Stock
Exchange, Inc. Medallion Signature Program ("MSP") or such other
signature guarantee program as may be determined by the Security
Registrar in addition to, or in substitution for, STAMP, SEMP or MSP,
all in accordance with the Securities Exchange Act of 1934, as
amended.)
Social Security Number or
Taxpayer Identification Number:
----------------------
A-10
<PAGE>
EXHIBIT B
PROMISSORY NOTE
Date of Issue: as of
-------------------------
FOR VALUE RECEIVED, the undersigned, [Borrower], a _____________
corporation ("Borrower"), hereby promises to pay to the order of [Lender], a
___________ corporation ("Lender"), $__________ (the "Principal") and any
interest accrued thereon, upon demand by the Lender at any time six months
subsequent to the date on which the _____% Senior Notes due ____ (the "Senior
Notes") of CalEnergy Company, Inc. that were issued pursuant to an Indenture
dated as of _________, ___ between CalEnergy Company, Inc. and IBJ Schroder
Bank & Trust Company shall have been repaid in full or such earlier date as may
be permitted under the terms of such Indenture.
Section 1 Accrual and Payment of Interest
under this Promissory Note
-------------------------------
The Principal shall accrue interest from the date hereof at an annual
rate (computed on the basis of a 360 day year) of __% which, to the extent
permitted by applicable law, shall be compounded semi-annually on each _______
and _____________ and added to the Principal hereof.
Section 2 Subordination
-------------
Payment of Principal of an interest on this Promissory Note shall be
subordinated to the fullest extent permitted by applicable law to the prior
payment in full of the principal of, premium, if any, and interest on any other
indebtedness for money borrowed of the Borrower, to the extent that the same is
thus due and owing whether at its stated maturity, upon acceleration or
otherwise.
Section 3 Notices
-------
All notices required or permitted hereunder shall be given by facsimile
where appropriate and confirmed in writing or by prepaid registered mail to the
addresses of the parties set forth in this Section 3 or to such other addresses
as either party shall duly specify by written notice to the other.
If to Borrower to:
-----------------------
-----------------------
-----------------------
-----------------------
B-1
<PAGE>
If to Lender to:
-----------------------
-----------------------
-----------------------
-----------------------
Section 4 No Waiver
---------
No failure or delay of either party hereto to exercise any power under
this Promissory Note or to insist upon strict compliance by either party hereto
of any obligations hereunder shall constitute a waiver of either party's rights
to demand exact compliance with the terms hereof.
Section 5 Governing Law
-------------
This Promissory Note is made under and in accordance with the laws of
___________, and the rights of the parties in the construction and effect of
each and every provision hereof shall be subject to the exclusive jurisdiction
of and shall be construed and regulated according to the laws of
_________________.
[Borrower]
By
-------------------------
Name:
Title:
B-2
<PAGE>
FORM OF SUPPLEMENTAL INDENTURE
CALENERGY COMPANY, INC.,
as Issuer
to
IBJ SCHRODER BANK & TRUST COMPANY,
as Trustee
-------------------------
First Supplemental Indenture
Dated as of October 28, 1997
-------------------------
$350,000,000
of
7.63% Senior Notes due 2007
<PAGE>
FORM OF SUPPLEMENTAL INDENTURE
FIRST SUPPLEMENTAL INDENTURE, dated as of October 28, 1997
(the "Supplemental Indenture"), between CalEnergy Company, Inc., a corporation
duly organized and existing under the laws of the State of Delaware (herein
called the "Company"), having its principal office at 302 South Thirty- sixth
Street, Suite 400, Omaha, Nebraska 68131, and IBJ Schroder Bank & Trust Company,
a New York banking corporation, as trustee (herein called the "Trustee").
RECITALS OF THE COMPANY
The Company entered into an Indenture dated as of October 15,
1997 with the Trustee (the "Indenture") to provide for the issuance from time to
time of its unsecured senior debt securities (hereinafter called the
"Securities"), to be issued in one or more series as provided in the Indenture.
The Company proposes to issue a series of Securities
designated its 7.63% Senior Notes due 2007 (the "Notes").
Sections 201 and 301 of the Indenture provide for the form of
and various other matters with respect to any series of Securities issued under
the Indenture to be established in an indenture supplemental to the Indenture.
Section 901(8) of the Indenture provides that, without the
consent of any Holders, the Company, when authorized by or pursuant to a Board
Resolution, may, and subject to Section 903 of the Indenture, the Trustee, at
any time and from time to time, shall, enter into one or more indentures
supplemental to the Indenture, in form satisfactory to the Trustee, to establish
the form or terms of Securities of any series as permitted by Sections 201 and
301 thereof.
All the conditions and requirements necessary to make this
Supplemental Indenture, when duly executed and delivered, a valid and binding
agreement of the Company in accordance with its terms and for the purposes
herein expressed, have been performed and fulfilled.
NOW, THEREFORE, THIS SUPPLEMENTAL INDENTURE WITNESSETH:
For and in consideration of the premises and the purchase of
the Notes provided for herein by the Holders thereof, it is mutually covenanted
and agreed, for the equal and proportionate benefit of all Holders of the Notes,
as follows:
<PAGE>
FORM OF SUPPLEMENTAL INDENTURE
ARTICLE ONE
RELATION TO INDENTURE; DEFINITIONS
1
SECTION 1.1. Relation to Indenture.
This Supplemental Indenture constitutes an integral part of
the Indenture.
SECTION 1.2. Definitions.
For all purposes of this Supplemental Indenture, except as
otherwise expressly provided for or unless the context otherwise requires:
(1) Capitalized terms used but not defined herein shall have
the respective meanings assigned to them in the Indenture; and
(2) All references herein to Articles and Sections, unless
otherwise specified, refer to the corresponding Articles and Sections
of this Supplemental Indenture.
"Consolidated Net Tangible Assets" means, as of the date of
any determination thereof, the total amount of all assets of the Company
determined on a consolidated basis in accordance with GAAP as of such date less
the sum of (a) the consolidated current liabilities of the Company determined in
accordance with GAAP and (b) assets properly classified as Intangible Assets.
"Indebtedness" means any indebtedness for money borrowed which
is incurred, issued, assumed or guaranteed by the Company.
"Intangible Assets" means, as of the date of determination
thereof, all assets of the Company properly classified as intangible assets
determined on a consolidated basis in accordance with GAAP.
"Rating Event Date" means the first date upon which the Notes
are rated Baa3 or better by Moody's Investors Service, Inc., BBB- or better by
Standard & Poor's Corporation and BBB- or better by Duff & Phelps Credit Rating
Co. (or, in any case, if such person ceases to rate the Notes for reasons
outside the control of the Company, the equivalent investment grade credit
rating from any other "nationally recognized statistical rating organization"
(within the meaning of Rule 15c3-1(c)(2)(vi)(F) under the Exchange Act) selected
by the Company as a replacement rating agency).
2
<PAGE>
FORM OF SUPPLEMENTAL INDENTURE
ARTICLE TWO
THE SERIES OF NOTES
SECTION 2.1. Title of the Securities.
There shall be a series of Securities designated the "_%
Senior Notes due 2007".
SECTION 2.2. Limitation on Aggregate Principal Amount.
(a) The aggregate principal amount of the Notes shall be
limited to $350,000,000, and, except as provided in this Section 2.2, the
Company shall not execute and the Trustee shall not authenticate or deliver
Notes in excess of such aggregate principal amount.
(b) Nothing contained in this Section 2.2 or elsewhere in this
Supplemental Indenture, or in the Notes, is intended to or shall limit execution
by the Company or authentication or delivery by the Trustee of Notes under the
circumstances contemplated by Sections 307, 308, 309, 906, 1013 or 1108 of the
Indenture.
SECTION 2.3. Interest and Interest Rate; Interest on Overdue
Amounts.
(a) The Notes will bear interest at a rate of 7.63% per annum,
from October 28, 1997 or from the most recent Interest Payment Date to which
interest has been paid or duly provided for, payable semi-annually in arrears on
April 15 and October 15 in each year, commencing April 15, 1998 (each, an
"Interest Payment Date"), to the Persons in whose name the Notes are registered
at the close of business on the Regular Record Date for such interest, which
shall be the April 1 or October 1 (whether or not a Business Day), as the case
may be, next preceding such Interest Payment Date, until the principal thereof
is paid or duly provided for. Interest on the Notes will be computed on the
basis of a 360- day year of twelve 30-day months. The interest so payable on any
Note which is not punctually paid or duly provided for on any Interest Payment
Date shall forthwith cease to be payable to the Holder on the relevant Regular
Record Date and such Defaulted Interest may either be paid to the Person in
whose name such Note is registered at the close of business on a Special Record
Date for the payment of such Defaulted Interest to be fixed by the Trustee,
notice whereof shall be given to Holders of Notes not less than 10 days prior to
such Special Record Date, or be paid on such other specified date determined in
accordance with the Indenture.
3
<PAGE>
FORM OF SUPPLEMENTAL INDENTURE
SECTION 2.4 Maturity Date of Notes.
The Notes will mature on October 15, 2007.
SECTION 2.5. Elimination of Certain Covenants Upon Rating
Event Date.
Following the Rating Event Date (and provided no Event of
Default or Default shall exist on the Rating Event Date), Section 801 and
Sections 1008, 1009, 1010, 1011, 1012, 1014, 1015, 1016, 1018 and 1021 of the
Indenture (collectively, the "Eliminated Covenants") shall be of no further
force and effect and shall cease to apply to the Notes and, in place thereof,
the provisions of Sections 2.6 and 2.7 hereof shall apply to the Notes. In the
event that, subsequent to the Rating Event Date an Event of Default or a Default
shall exist with respect to the Notes or the Notes shall thereafter be rated
less than Baa3 by Moody's Investors Service, Inc., less than BBB- by Standard &
Poor's Corporation and less than BBB- by Duff & Philips Credit Rating Co. (or
such other "nationally recognized statistical rating organization" (within the
meaning of Rule 15c3-1(c)(2)(vi)(F) under the Exchange Act) selected by the
Company as a replacement rating agency), in each case the Eliminated Covenants
shall not be reinstated.
SECTION 2.6. Restrictions on Liens
Following the Rating Event Date:
(a) So long as any of the Notes are outstanding, the Company
shall not pledge, mortgage, hypothecate or permit to exist any mortgage, pledge
or other lien upon any property or assets at any time directly owned by the
Company to secure any Indebtedness, without making effective provisions whereby
the Notes shall be equally and ratably secured with any and all such
Indebtedness and with any other Indebtedness similarly entitled to be equally
and ratably secured; provided however, that this Section 2.6(a) shall not apply
to or prevent the creation or existence of: (i) liens existing on the Rating
Event Date; (ii) purchase money liens which do not exceed the cost or value of
the purchased property or assets; (iii) liens not to exceed 10% of Consolidated
Net Tangible Assets; and (iv) liens on property or assets granted in connection
with extending, renewing, replacing or refinancing in whole or in part the
Indebtedness (including, without limitation, increasing the principal amount of
such Indebtedness) secured by liens described in the foregoing clauses (i)
through (iii), provided that the liens in connection with any such extension,
renewal, replacement or refinancing will be limited to the specific property or
assets that was subject to the original lien.
4
<PAGE>
FORM OF SUPPLEMENTAL INDENTURE
(b) In the event that the Company shall propose to pledge,
mortgage or hypothecate or permit to exist any pledge, mortgage or other lien
upon any property or assets at any time directly owned by it to secure any
Indebtedness, other than as permitted by clauses (i) through (iv) of subsection
(a) above, the Company shall give prior written notice thereof to the Trustee
and the Company will, prior to or simultaneously with such pledge, mortgage or
hypothecation, effectively secure all the Notes equally and ratably with such
Indebtedness.
(c) The provisions of this Section 2.6 shall not restrict the
ability of the Company's Subsidiaries and Affiliates to pledge, mortgage,
hypothecate or permit to exist any mortgage, pledge or lien upon their property
or assets, in connection with project financings or otherwise.
SECTION 2.7. Consolidation, Merger, Sale of Assets
Following the Rating Event Date:
(a) So long as any of the Notes are outstanding, the Company
shall not consolidate with or merge with or into any other Person, or convey,
transfer or lease its consolidated properties and assets substantially as an
entirety to any Person, or permit any Person to merge into or consolidate with
the Company, unless: (i) the Company is the surviving or continuing corporation
or the surviving or continuing corporation or purchaser or lessee is a
corporation incorporated under the laws of the United States of America, one of
the States thereof or the District of Columbia or Canada and assumes the
Company's obligations under the Notes and under the Indenture and (ii)
immediately before and after such transaction, no Event of Default shall have
occurred and be continuing.
(b) Except for a sale of the consolidated properties and
assets of the Company substantially as an entirety pursuant to subsection (a)
above, and other than properties or assets required to be sold to conform with
laws or governmental regulations, the Company shall not, directly or indirectly,
sell or otherwise dispose of any of its consolidated properties or assets (other
than short-term, readily marketable investments purchased for cash management
purposes with funds not representing the proceeds of other asset sales) if on a
pro forma basis, the aggregate net book value of all such sales during the most
recent 12- month period would exceed 10% of Consolidated Net Tangible Assets
computed as of the end of the most recent quarter preceding such sale; provided,
however, that any such sales shall be disregarded for purposes of this 10%
limitation if the net proceeds are invested in properties or assets in similar
or related lines of business of the Company and its Subsidiaries and, provided
further, that the Company may sell or otherwise dispose of consolidated
properties and assets in excess of such 10% limitation if the net proceeds from
such sales or dispositions,
5
<PAGE>
FORM OF SUPPLEMENTAL INDENTURE
which are not reinvested as provided above, are retained by the Company as cash
or Cash Equivalents or used to retire Indebtedness of the Company (other than
Indebtedness which is subordinated to the Notes) and its Subsidiaries.
SECTION 2.8. Redemption.
The Notes are not redeemable at the option of the Company
prior to maturity and are not subject to any mandatory sinking fund.
SECTION 2.9. Global Form.
The Notes shall initially be issued in the form of one or more
Global Securities as provided in Section 201(a) of the Indenture. The Depositary
for the Notes shall be The Depository Trust Company. Except as otherwise
provided in Sections 201, 307 or 309 of the Indenture, owners of beneficial
interests in the Global Security or Securities will not be entitled to receive
physical delivery of Certificated Securities.
SECTION 2.10. Form of Notes.
The Notes shall be substantially in the form attached as
Exhibit A hereto.
SECTION 2.11. Security Registrar and Paying Agent.
The Trustee shall initially serve as Security Registrar and
Paying Agent for the Notes.
SECTION 2.12. Place and Method of Payment.
Payment of the principal of (and premium, if any) and any
interest on the Notes shall be made at the office or agency of the Company
maintained for that purpose in the Borough of Manhattan, The City of New York
(which initially shall be the Corporate Trust Office of the Trustee), or at such
additional offices or agencies as the Company from time to time may designate
for such purpose, in such coin or currency of the United States of America as at
the time of payment is legal tender for payment of public and private debts,
provided that payment of the principal of (and premium, if any, on) the Notes
shall be made only upon presentation and surrender thereof at any such office or
agency and, 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.
6
<PAGE>
FORM OF SUPPLEMENTAL INDENTURE
SECTION 2.13. Defeasance.
The provisions of Sections 1202 and 1203 of the Indenture
relating to defeasance and covenant defeasance shall be applicable to the Notes.
The provisions of Section 1203 of the Indenture shall apply to the covenants set
forth in Sections 2.6 and 2.7 of this Supplemental Indenture and to those
covenants specified in Section 1203 of the Indenture.
ARTICLE THREE
MISCELLANEOUS PROVISIONS
SECTION 3.1. Ratification of Indenture.
Except as expressly modified or amended hereby, the Indenture
continues in full force and effect and is in all respects confirmed and
preserved.
SECTION 3.2. Governing Law.
THIS SUPPLEMENTAL INDENTURE AND EACH NOTE SHALL BE GOVERNED BY
AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, INCLUDING
SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW, BUT OTHERWISE, WITHOUT
REGARD TO PRINCIPLES OF CONFLICT OF LAWS. THE COMPANY HEREBY IRREVOCABLY SUBMITS
TO THE JURISDICTION OF ANY NEW YORK STATE COURT SITTING IN THE BOROUGH OF
MANHATTAN IN THE CITY OF NEW YORK OR ANY FEDERAL COURT SITTING IN THE BOROUGH OF
MANHATTAN IN THE CITY OF NEW YORK IN RESPECT OF ANY SUIT, ACTION OR PROCEEDING
ARISING OUT OF OR RELATING TO THIS SUPPLEMENTAL INDENTURE AND THE NOTES, AND
IRREVOCABLY ACCEPTS FOR ITSELF AND IN RESPECT OF ITS PROPERTY, GENERALLY AND
UNCONDITIONALLY, JURISDICTION OF THE AFORESAID COURTS. THE COMPANY IRREVOCABLY
WAIVES, TO THE FULLEST EXTENT THAT IT MAY EFFECTIVELY DO SO UNDER APPLICABLE
LAW, TRIAL BY JURY AND ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE
LAYING OF THE VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN ANY SUCH
COURT AND ANY CLAIM THAT ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN ANY SUCH
COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. NOTHING HEREIN SHALL AFFECT THE
RIGHT OF THE TRUSTEE OR ANY HOLDER OF THE SECURITIES TO SERVE PROCESS IN ANY
OTHER MANNER
7
<PAGE>
FORM OF SUPPLEMENTAL INDENTURE
PERMITTED BY LAW OR TO COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST
THE COMPANY IN ANY OTHER JURISDICTION.
SECTION 3.3. Trust Indenture Act.
This Supplemental Indenture is subject to the provisions of
the Trust Indenture Act of 1939, as amended, and shall, to the extent
applicable, be governed by such provisions.
SECTION 3.4. Counterparts.
This Supplemental Indenture 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.
8
<PAGE>
FORM OF SUPPLEMENTAL INDENTURE
IN WITNESS WHEREOF, the parties hereto have caused this
Supplemental Indenture to be duly executed, all as of the day and year first
written above.
CALENERGY COMPANY, INC.
By:________________________________
Name: Steven A. McArthur
Title: Senior Vice President
IBJ SCHRODER BANK & TRUST COMPANY,
as Trustee
By:________________________________
Name:
Title:
<PAGE>
FORM OF SUPPLEMENTAL INDENTURE
EXHIBIT A
Form of Note
This Security is issued in global form and registered in the
name of the Depository or a nominee thereof. Unless and until it is exchanged in
whole or in part for Securities in definitive form in accordance with the terms
hereof and of the Indenture referred to on the reverse hereof, this 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. Unless this
certificate is presented by an authorized representative of the Depositary to
the Company or its agent for registration of transfer, exchange or payment, and
any certificate issued is registered in the name of the Depositary or its
nominee and any payment is made to the Depositary or its nominee, ANY TRANSFER,
PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL since the registered owner hereof has an interest herein.
(FACE OF NOTE)
CALENERGY COMPANY, INC.
7.63% Senior Notes due 2007
No. ___________________ $______
CUSIP No. ________
CalEnergy Company, Inc., a corporation duly organized and
existing under the laws of the State of Delaware (herein called the "Company",
which term includes any successor Person under the Indenture hereinafter
referred to), for value received, hereby promises to pay to Cede & Co., or
registered assigns, the principal sum of ____________ Dollars on October 15,
2007, and to pay interest thereon from their date of issue and thereafter from
the most recent Interest Payment Date to which interest has been paid or duly
provided for, semi-annually on April 15 and October 15 in each year, commencing
April 15, 1998, at the rate of 7.63% per annum, until the principal hereof is
paid or duly provided for, provided that any principal and premium, if any, and
any such installment of interest, that is overdue shall bear interest at the
rate of 7.63% per annum (to the extent that the payment of such interest shall
be legally enforceable), from the dates such amounts are due until they are paid
or duly provided for, and such interest shall be payable on demand. The interest
so payable, and punctually paid or duly provided for, on
A-1
<PAGE>
FORM OF SUPPLEMENTAL INDENTURE
any Interest Payment Date shall, as provided in such 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 Regular Record Date for such
interest, which shall be the April 1 or October 1 (whether or not a Business
Day), as the case may be, next preceding such Interest Payment Date. Any such
interest not so punctually paid or duly provided for shall forthwith 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 Trustee, notice whereof 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 on which the Securities may be
listed, and upon such notice as may be required by such exchange, all as more
fully provided in said Indenture.
Payment of the principal of (and premium, if any) and any
interest on this Security shall be made at the office or agency of the Company
maintained for that purpose in the Borough of Manhattan, The City of New York,
or at such additional offices or agencies as the Company from time to time may
designate for such purpose, in such coin or currency of the United States of
America as at the time of payment is legal tender for payment of public and
private debts, provided that payment of the principal of (and premium, if any,
on) this Security shall be made only upon presentation and surrender hereof at
any such office or agency and, 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.
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.
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.
CALENERGY COMPANY, INC.
By:_______________________
Title:
Attest:
- -------------------------
Title:
A-2
<PAGE>
FORM OF SUPPLEMENTAL INDENTURE
Form of Trustee's Certificate of Authentication
This is one of the Securities of the series designated therein referred to in
the within-mentioned Indenture.
IBJ SCHRODER BANK & TRUST COMPANY,
Dated: as Trustee
By:_________________________________________
Authorized Signatory
A-3
<PAGE>
FORM OF SUPPLEMENTAL INDENTURE
(REVERSE OF NOTE)
This Security is one of a duly authorized issue of Securities
of the Company designated as its 7.63% Senior Notes due 2007 (herein called the
"Securities"), limited in aggregate principal amount of $350,000,000 issued and
to be issued under an Indenture, dated as of October 15, 1997, as supplemented
by the First Supplemental Indenture dated as of October 28, 1997 (as so
supplemented, herein called the "Indenture", which term shall have the meaning
assigned to it in such instrument), between the Company and IBJ Schroder Bank &
Trust Company, as Trustee (herein called the "Trustee" which term includes any
successor trustee under the Indenture), and reference is hereby made to the
Indenture for a statement of the respective rights, limitations of rights,
duties and immunities thereunder of the Company, the Trustee 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 not redeemable at the option of the Company
prior to maturity and do not have the benefit of any sinking fund obligations.
Upon the occurrence of a Change of Control, the Company shall
be required to make an Offer to Purchase all or a specified portion of the
Securities at a purchase price in cash equal to 101 percent of the principal
amount thereof on any Purchase Date plus accrued and unpaid interest, if any, to
such Purchase Date. If the Company, any Restricted Subsidiary or any Eligible
Joint Venture consummates an Asset Disposition, under certain circumstances, the
Company shall be required to make an Offer to Purchase up to all or a specified
portion of the Securities at a purchase price in cash equal to 100 percent of
the principal amount thereof on any Purchase Date, plus accrued and unpaid
interest, if any, to such Purchase Date, in an amount equal to any Net Cash
Proceeds from such an Asset Disposition that are not used to reinvest in the
business of the Company and/or repay in a permanent reduction of Debt of the
Company or Debt of its Restricted Subsidiaries or Eligible Joint Ventures.
Holders of Securities shall receive notice of any such Offer to Purchase from
the Company prior to the related Purchase Date and may elect to have such
Securities purchased by completing the form entitled "Option of Holder to Elect
Purchase" appearing on the reverse side of this Security.
In the event of purchase, pursuant to an Offer to Purchase, of
this Security in part only, a new Security or Securities for the portion hereof
not purchased shall be issued in the name of the Holder hereof upon surrender of
this Security to the Trustee for cancellation thereof.
The Indenture provides that following the Rating Event Date
(and provided no Event of Default or Default shall exist on the Rating Event
Date), substantially all the covenants contained in the Indenture (excluding the
covenant relating to the Company's obligation to make an Offer to Purchase
Securities upon the occurrence of a Change of Control) will cease to apply to
the Securities. In their place, certain other
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<PAGE>
FORM OF SUPPLEMENTAL INDENTURE
covenants regarding restrictions or liens and the ability of the Company to
merge or consolidate with or into any other Person or to transferor lease assets
will apply to the Securities.
The Indenture contains provisions for defeasance at any time
of the entire Debt of this Security or certain restrictive covenants and Events
of Default with respect to this Security, including, without limitation,
covenants relating to Offers to Purchase, in each case upon compliance with
certain conditions set forth in the Indenture.
If an Event of Default shall occur and be continuing, there
may be declared due and payable the Default Amount of the Securities, in the
manner and with the effect provided in the Indenture. The Default Amount in
respect of this Security as of any particular date shall equal 100% of the
principal amount of this Security plus accrued and unpaid interest, if any, to
such date.
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 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 of any
series at the time Outstanding, on behalf of the Holders of all Securities of
such series, to waive compliance by the Company with certain provisions of the
Indenture and certain past defaults under the Indenture and their consequences
in each case with respect to the Securities of such series. In addition, without
the consent of any Holder of a Security, the Indenture and the Securities may be
amended and supplemented to cure any ambiguity or inconsistency, make other
changes that shall not adversely affect the rights of the Holders or certain
other matters specified in the Indenture. 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.
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 with respect
to the Securities, the Holders of not less than 25 percent in principal amount
of the Securities of this series at the time Outstanding 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
Securities of this series at the time 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
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<PAGE>
FORM OF SUPPLEMENTAL INDENTURE
offer of indemnity. The foregoing shall not apply to certain suits described in
the Indenture, including any suit instituted by the Holder of this Security for
the enforcement of any payment of principal hereof or any premium or interest
hereon on or after the respective due dates expressed herein (or, in the case of
any purchase of this Security required to be made pursuant to an Offer to
Purchase, on or after the Purchase Date).
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 at the times, place, manner and
rate, and in the coin or currency, herein prescribed.
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 in the Borough of Manhattan, The
City of New York (which initially shall be the Corporate Trust Office of the
Trustee), 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, shall be issued to the designated transferee or transferees.
The Securities are issuable only in registered form without
coupons in denominations of $1,000 and any integral multiple thereof. As
provided in the Indenture and subject to certain limitations therein set forth,
Securities are exchangeable for a like aggregate principal amount of Securities
of like tenor of a different authorized denomination, as requested by the Holder
surrendering the same.
No service charge shall be made 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.
A director, officer, employee, stockholder or incorporator of
the Company shall not have any liability for any obligations of the Company
under this Security or the Indenture or for any claim based on, in respect of or
by reason of such obligations or their creation. Each Holder by accepting this
Security waives and releases all such liability. Such waiver and release are
part of the consideration for the issuance of this Security.
Prior to due presentment of this 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 this Security is registered as the owner
hereof for all purposes, whether or not this Security is overdue, and neither
the Company, the Trustee nor any such agent shall be affected by notice to the
contrary.
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<PAGE>
FORM OF SUPPLEMENTAL INDENTURE
Interest on this Security shall be computed on the basis of a
360- day year of twelve 30-day months.
All terms used in this Security that are defined in the
Indenture shall have the meanings assigned to them in the Indenture.
THE INDENTURE AND THIS SECURITY SHALL BE GOV- ERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, INCLUDING
SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW.
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<PAGE>
FORM OF SUPPLEMENTAL INDENTURE
ASSIGNMENT FORM
To assign this Security, fill in the form below: (I) or (we)
assign and transfer this Security to
- ---------------------------------------------------------
(Insert assignee's soc. sec. or tax I.D. no.)
- ---------------------------------------------------------
- ---------------------------------------------------------
- ---------------------------------------------------------
- ---------------------------------------------------------
(Print or type assignee's name, address and zip code)
and irrevocably appoint__________________________________ agent to transfer this
Security on the books of the Company. The agent may substitute another to act
for him.
Dated: Your Signature: _________________________
(sign exactly as name appears on the
other side of this Security)
Signature Guarantee:
(Signature must be guaranteed by a financial institution that is a member of the
Securities Transfer Agent Medallion Program ("STAMP"), the Stock Exchange
Medallion Program ("SEMP"), the New York Stock Exchange, Inc. Medallion
Signature Program ("MSP") or such other signature guarantee program as may be
determined by the Security Registrar in addition to, or in substitution for,
STAMP, SEMP or MSP, all in accordance with the Securities Exchange Act of 1934,
as amended.)
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<PAGE>
FORM OF SUPPLEMENTAL INDENTURE
OPTION OF HOLDER TO ELECT PURCHASE
If you wish to elect to have all or any portion of the Securities purchased by
the Company pursuant to Section 1013 ("Change of Control Offer") or Section 1015
("Excess Proceeds Offer") of the Indenture, check the applicable boxes:
|_| Change of Control Offer: |_| Excess Proceeds Offer:
in whole |_| in whole |_|
in part |_| in part |_|
Amount to be Amount to be
purchased: $________ purchased: $________
Dated:_______________ Signature:________________________
(Sign exactly as your name appears on
the other side of this Security)
Signature
Guarantee:________________________
(Signature must be guaranteed by a financial institution that is a
member of the Securities Transfer Agent Medallion Program ("STAMP"),
the Stock Exchange Medallion Program ("SEMP"), the New York Stock
Exchange, Inc. Medallion Signature Program ("MSP") or such other
signature guarantee program as may be determined by the Security
Registrar in addition to, or in substitution for, STAMP, SEMP or MSP,
all in accordance with the Securities Exchange Act of 1934, as
amended.)
Social Security Number or
Taxpayer Identification Number:________________________
A-9
<PAGE>
FOR IMMEDIATE RELEASE
Craig M. Hammett - Vice President, Chief Financial Officer (402) 341-4500
Jeffrey S. Laudin - Manager, Investor Relations (402) 341-4500
CalEnergy Closes Public Offering of Common Stock
OMAHA, NE, October 20, 1997: CalEnergy Company, Inc.
("CalEnergy" or the "Company") (NYSE, PCX and LSE Symbol: CE) announced today
that on Friday, October 17, 1997 it consummated the public offering of 17.1
million shares of its common stock ("Common Stock") at $37 7/8 per share in
simultaneous United States and international offerings. In addition, 2 million
shares of Common Stock were purchased from CalEnergy in a direct sale by a trust
affiliated with Walter Scott, Jr., the Chairman and Chief Executive Officer of
Peter Kiewit Sons', Inc., contemporaneously with the closing of the public
offering.
The Company will use the net proceeds from the public offering
and the direct sale, together with the expected proceeds of a subsequent
offering of Senior Notes due 2007 and general corporate funds of the Company, to
complete the acquisition of all of the interest of Kiewit Diversified Group Inc.
("KDG") in the various international power generation projects ("Joint Venture
Energy Projects") which are jointly owned with the Company and managed by the
Company, as well as the repurchase of all of KDG's outstanding ownership
interests in the Company's Common Stock. The KDG acquisition agreement provides
that the Company will pay $1,155,000,000 for KDG's ownership interest in the
Joint Venture Energy Projects and the Company's Common Stock. The closing under
the KDG acquisition agreement is expected to occur in January, 1998.
The Company, which manages and owns interest in over 5,000 net
MW of power generation facilities in operation, construction and development
worldwide, currently operates 20 generating facilities and also supplies and
distributes electricity to 1.5 million customers. www.calenergy.com
<PAGE>
FOR IMMEDIATE RELEASE
Craig M. Hammett - Vice President, Chief Financial Officer (402) 341-4500
Jeffrey S. Laudin - Manager, Investor Relations (402) 341-4500
CalEnergy Announces $350 Million Senior Note Offering
OMAHA, NE, October 23, 1997: CalEnergy Company, Inc.
("CalEnergy" or the "Company") (NYSE, PCX and LSE Symbol: CE) announced today
that it has arranged for the sale of $350 million aggregate principal amount of
its 7.63% Senior Notes due 2007 ("Notes"). The notes have been rated BB+, Bal
and BBB- by Standard & Poor's, Moody's and Duff & Phelps, respectively.
The Company will use the net proceeds from $350 million Senior
Note Offering, together with approximately $700 million in net proceeds from the
public offering of 19.1 million shares of common stock which closed on October
17 and general corporate funds of the Company, to complete the acquisition of
all of the interests of Kiewit Diversified Group Inc. ("KDG") in the various
international power general projects ("Joint Venture Energy Projects") which are
jointly owned with the Company and managed by the Company, as well as the
repurchase of all of KDG's outstanding ownership interests in the Company's
Common Stock. The KDG acquisition agreement provides that the Company will pay
$1,155,000,000 for KDG's ownership interest in the Joint Venture Energy Projects
and the Company's Common Stock. The closing under the KDG acquisition agreement
is expected to occur in January, 1998.
Lehman Brothers Inc., Credit Suisse First Boston Corporation
and Merrill Lynch, Pierce, Fenner & Smith Incorporated are the managers of the
Senior Note offering.
A prospectus relating to the securities may be obtained from
Lehman Brothers Inc., Three World Financial Center, New York, New York 10285,
(212) 526-5055.
This release shall not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale of these securities
in any state in which such offer, solicitation or sale would be unlawful prior
to registration or qualification under the securities law of any such state.
The Company, which manages and owns interests in over 5,000
net MW of power generation facilities in operation, construction and development
worldwide, currently operates 20 generating facilities and also supplies and
distributes electricity to 1.5 million customers. www.calenergy.com
