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AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON APRIL 15, 1997
REGISTRATION NO. 333-
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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM S-3
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
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NABORS INDUSTRIES, INC.
(Exact Name of Registrant as Specified in Its Charter)
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515 WEST GREENS ROAD, SUITE 1200
HOUSTON, TEXAS 77067
DELAWARE (281) 874-0035 93-0711613
(State or Other (Address, Including Zip Code, and Telephone Number, (I.R.S. Employer
Jurisdiction of Including Area Code, of Registrant's Principal Identification No.)
Incorporation or Executive Offices)
Organization)
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ANTHONY G. PETRELLO With a copy to:
PRESIDENT AND CHIEF OPERATING OFFICER
NABORS INDUSTRIES, INC. HOWARD M. BERKOWER, ESQ.
515 WEST GREENS ROAD, SUITE 1200 BAKER & MCKENZIE
HOUSTON, TEXAS 77067 805 THIRD AVENUE
(281) 874-0035 NEW YORK, NEW YORK 10122
(Name, Address, Including Zip Code, and Telephone (212) 751-5700
Number,
Including Area Code, of Agent for Service)
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APPROXIMATE DATE OF COMMENCEMENT OF PROPOSED SALE TO THE PUBLIC: From time
to time after the effective date of this Registration Statement, as determined
in light of market conditions and other factors.
If the only securities being registered on this form are being offered
pursuant to dividend or interest reinvestment plans, check the following box. [
]
If any of the securities being registered on this form are to be offered on
a delayed or continuous basis pursuant to Rule 415 under the Securities Act of
1933, other than securities offered only in connection with dividend or interest
reinvestment plans, please check the following box. [X]
If this Form is filed to register additional securities for an offering
pursuant to Rule 462(b) under the Securities Act, please check the following box
and list the Securities Act registration statement number of the earlier
effective registration statement for the same offering. [ ]
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If this Form is a post-effective amendment filed pursuant to Rule 462(c)
under the Securities Act, check the following box and list the Securities Act
registration statement number of the earlier effective registration statement
for the same offering. [ ]
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If delivery of the prospectus is expected to be made pursuant to Rule 434,
please check the following box. [ ]
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CALCULATION OF REGISTRATION FEE
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PROPOSED MAXIMUM PROPOSED MAXIMUM
TITLE OF SHARES AMOUNT TO BE AGGREGATE PRICE AGGREGATE OFFERING AMOUNT OF
TO BE REGISTERED REGISTERED(1) PER UNIT(2) PRICE(3) REGISTRATION FEE
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Debt Securities............................
Preferred Stock, par value $.10 per
share....................................
Common Stock, par value $.10 per share.....
Depositary Shares(4).......................
Warrants(5)................................
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Total............................. $350,000,000(6) $350,000,000 $106,060.61(7)
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(1) The amount to be registered consists of $350,000,000 of an indeterminate
number or amount of Debt Securities, Preferred Stock, Common Stock,
Depositary Shares or Warrants as may from time to time be issued at
indeterminate prices. Pursuant to Rule 429 under the Securities Act of 1933,
as amended, this amount includes $77,500,000 of securities being carried
forward from an earlier registration statement on Form S-3 (No. 333-02477)
which have not been sold.
(2) Such amount in U.S. dollars or the equivalent thereof in one or more foreign
currencies, currency units or composite currencies as shall result in an
initial public offering price for all securities of $350,000,000. The
Prospectus herein covers $350,000,000 of securities. In addition, this
Registration Statement includes such presently indeterminate amount or
number of Debt Securities, Preferred Stock, Common Stock and Depositary
Shares as may be issuable from time to time upon conversion or exchange of
the securities being registered hereunder.
(3) Estimated solely for purposes of calculating the registration fee pursuant
to Rule 457(o) under the Securities Act of 1933, as amended. No separate
consideration will be received for any Debt Securities, Preferred Stock,
Common Stock or Depositary Shares issuable upon conversion of or in exchange
for Debt Securities or Preferred Stock.
(4) Such indeterminate number of Depositary Shares to be evidenced by Depositary
Receipts issued pursuant to a Deposit Agreement. If the Registrant elects to
offer to the public fractional interests in shares of Preferred Stock
registered hereunder, Depositary Receipts will be distributed to persons
purchasing those fractional interests, and shares of Preferred Stock will be
issued to the Depositary under the Deposit Agreement.
(5) Warrants to purchase Debt Securities, Preferred Stock or Common Stock may be
sold separately or with Debt Securities, Preferred Stock or Common Stock.
(6) Includes $50,000,000 of Common Stock that may be sold by or for the account
of selling stockholders.
(7) Pursuant to Rule 429 under the Securities Act of 1933, as amended, the
amount of $77,500,000 of securities covered by an earlier Registration
Statement on Form S-3 (No. 333-02477) is being carried forward and the
corresponding registration fee of $23,484.85 was previously paid at that
time. Accordingly, $82,575.76 is paid herewith.
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The Prospectus contained in this Registration Statement relates to the
Registration Statement on Form S-3 (No. 333-02477) of the Registrant, and it is
intended to be the combined prospectus referred to in Rule 429 under the
Securities Act of 1933, as amended.
THE REGISTRANT HEREBY AMENDS THIS REGISTRATION STATEMENT ON SUCH DATE OR
DATES AS MAY BE NECESSARY TO DELAY ITS EFFECTIVE DATE UNTIL THE REGISTRANT SHALL
FILE A FURTHER AMENDMENT WHICH SPECIFICALLY STATES THAT THIS REGISTRATION
STATEMENT SHALL THEREAFTER BECOME EFFECTIVE IN ACCORDANCE WITH SECTION 8(A) OF
THE SECURITIES ACT OF 1933, AS AMENDED, OR UNTIL THIS REGISTRATION STATEMENT
SHALL BECOME EFFECTIVE ON SUCH DATE AS THE COMMISSION, ACTING PURSUANT TO SAID
SECTION 8(A), MAY DETERMINE.
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INFORMATION CONTAINED HEREIN IS SUBJECT TO COMPLETION OR AMENDMENT. A
REGISTRATION STATEMENT RELATING TO THESE SECURITIES HAS BEEN FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION. THESE SECURITIES
MAY NOT BE SOLD NOR MAY OFFERS TO BUY BE ACCEPTED PRIOR TO THE TIME THE
REGISTRATION STATEMENT BECOMES EFFECTIVE. THIS PROSPECTUS SHALL NOT
CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO
BUY NOR SHALL THERE BE ANY SALE OF THESE SECURITIES IN ANY STATE IN WHICH
SUCH OFFER, SOLICITATION OR SALE WOULD BE UNLAWFUL PRIOR TO REGISTRATION OR
QUALIFICATION UNDER THE SECURITIES LAWS OF ANY SUCH STATE.
SUBJECT TO COMPLETION, DATED APRIL 15, 1997
PROSPECTUS
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[NABORS $350,000,000
INDUSTRIES, NABORS INDUSTRIES, INC.
INC. LOGO] DEBT SECURITIES, PREFERRED STOCK, COMMON STOCK,
DEPOSITARY SHARES AND WARRANTS
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Nabors Industries, Inc. (collectively with its subsidiaries (unless the
context otherwise requires), the "Company") may from time to time offer,
together or separately, in amounts, at prices and on terms to be determined at
the time of the offering, its (i) debt securities (the "Debt Securities"), which
may be either senior debt securities (the "Senior Debt Securities") or
subordinated debt securities (the "Subordinated Debt Securities"), (ii) shares
of its preferred stock, $.10 par value per share (the "Preferred Stock"), which
may be issued in the form of Depositary Shares (as defined herein) evidenced by
Depositary Receipts (as defined herein), (iii) shares of its common stock, $.10
par value per share (the "Common Stock"), and (iv) warrants to purchase Debt
Securities, Preferred Stock or Common Stock of the Company, as the Company shall
designate at the time of the offering (the "Warrants"). (The Debt Securities,
Preferred Stock, Depositary Shares, Common Stock and Warrants are collectively
called the "Securities.") Securities may be sold for U.S. dollars or one or more
foreign currencies, currency units or composite currencies -- in each case, as
the Company specifically designates.
In addition, shares of Common Stock may be offered from time to time by
stockholders of the Company who acquire their shares in connection with future
acquisitions by the Company ("Selling Stockholders"). Any Selling Stockholders
will be identified, and the number of shares to be offered by them will be
specified, in a Prospectus Supplement to this Prospectus. The Company will not
receive proceeds of any sale of shares by the Selling Stockholders.
The Securities offered pursuant to this Prospectus may be issued in one or
more series or issuances and will be limited to $350,000,000 in aggregate
initial public offering price or the equivalent in one or more foreign
currencies, currency units or composite currencies. Certain specific terms of
the particular Securities in respect of which this Prospectus is being delivered
will be set forth in an accompanying Prospectus Supplement, including, where
applicable, (i) in the case of Debt Securities, the specific title, aggregate
principal amount, the denomination, whether such Debt Securities are secured or
unsecured obligations, maturity, premium, if any, the interest, if any (which
may be fixed, floating or adjustable rate), the time and method of calculating
payment of interest, if any, the place or places where principal of (and
premium, if any) and interest, if any, on such Debt Securities will be payable,
the currency, currency unit or composite currency in which principal of (and
premium, if any) and interest, if any, on such Debt Securities will be payable,
any terms of redemption at the option of the Company or the holder, any sinking
fund provisions, terms for any conversion or exchange into Securities or other
securities of the Company (however, any such other securities issuable upon
conversion or exchange of Debt Securities will be subject to registration under
the Securities Act (as defined herein) or an applicable exemption therefrom),
the initial public offering price, listing (if any) on a securities exchange and
other terms, (ii) in the case of Preferred Stock, the specific title, the
aggregate number of shares offered, any dividend (including the method of
calculating payment of dividends), liquidation, redemption, voting and other
rights, any terms for any conversion or exchange into Securities or other
securities of the Company (however, any such other securities issuable upon
conversion or exchange of Preferred Stock will be subject to registration under
the Securities Act or an applicable exemption therefrom), the initial public
offering price, listing (if any) on a securities exchange and other terms, (iii)
in the case of Warrants, the duration, purchase price, exercise price and
detachability of such Warrants, any listing of the Warrants or underlying
Securities on a securities exchange, a description of the securities for which
each Warrant is exercisable and other terms, and (iv) in the case of Depositary
Shares, the fractional share of Preferred Stock represented by each such
Depositary Share. If so specified in the applicable Prospectus Supplement, Debt
Securities of a series may be issued in whole or in part in the form of one or
more temporary or permanent global securities ("Global Securities").
The Common Stock is listed on the American Stock Exchange under the trading
symbol "NBR." Any Common Stock sold pursuant to a Prospectus Supplement will be
listed on that exchange, subject to official notice of issuance. On April ,
1997, the closing price of a share of Common Stock on that exchange was
$ per share.
Unless otherwise specified in a Prospectus Supplement, the Senior Debt
Securities, when issued, will be unsecured and will rank equally with all other
unsecured and unsubordinated indebtedness of the Company. The Subordinated Debt
Securities, when issued, will be subordinated in right of payment to all Senior
Debt (as defined herein) of the Company.
The Prospectus Supplement may contain information concerning certain United
States federal income tax considerations applicable to the Securities offered.
This Prospectus may not be used to consummate sales of Securities, unless
accompanied by a Prospectus Supplement. Any statement contained in this
Prospectus will be deemed to be modified or superseded by any inconsistent
statement contained in an accompanying Prospectus Supplement.
SEE "RISK FACTORS" ON PAGE 3 HEREOF FOR A DESCRIPTION OF CERTAIN FACTORS
THAT SHOULD BE CONSIDERED IN CONNECTION WITH AN INVESTMENT IN THE SECURITIES.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION, NOR HAS THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE
ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE.
The Securities will be sold directly, through agents, underwriters or
dealers as designated from time to time, or through a combination of such
methods. If agents of the Company or any dealers or underwriters are involved in
the sale of the Securities in respect of which this Prospectus is being
delivered, the names of the agents, dealers or underwriters and any applicable
commissions or discounts will be set forth in or may be calculated from the
Prospectus Supplement with respect to such Securities. See "Plan of
Distribution" for possible indemnification arrangements with agents, dealers and
underwriters.
THE DATE OF THIS PROSPECTUS IS , 1997.
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AVAILABLE INFORMATION
The Company has filed with the Securities and Exchange Commission (the
"Commission") a Registration Statement on Form S-3 under the Securities Act of
1933, as amended (the "Securities Act"), with respect to the Securities being
offered by this Prospectus. This Prospectus, which constitutes a part of the
Registration Statement, does not contain all of the information set forth in the
Registration Statement, certain items of which are contained in exhibits and
schedules to the Registration Statement as permitted by the rules and
regulations of the Commission. For further information with respect to the
Company and the securities offered hereby, reference is made to the Registration
Statement, including the exhibits thereto, and the financial statements and
notes filed as a part thereof. Statements made in this Prospectus concerning the
contents of any contract, agreement or other document filed with the Commission
as an exhibit are not necessarily complete. With respect to each such contract,
agreement or other document filed with the Commission as an exhibit, reference
is made to the exhibit for a more complete description of the matter involved,
and each such statement shall be deemed qualified in its entirety by such
reference.
The Company is subject to the informational requirements of the Securities
Exchange Act of 1934, as amended (the "Exchange Act"), and, in accordance
therewith, files reports, proxy statements and other information with the
Commission. The reports, proxy statements and other information filed by the
Company with the Commission pursuant to the informational requirements of the
Exchange Act may be inspected and copied at the public reference facilities
maintained by the Commission at Judiciary Plaza, 450 Fifth Street, N.W.,
Washington D.C. 20549, and at the Commission's Regional Offices at 7 World Trade
Center, 13th Floor, New York, New York 10048 and the Northwestern Atrium Center,
500 West Madison Street, Suite 1400, Chicago, Illinois 60661. Copies of such
documents can also be obtained at prescribed rates from the Public Reference
Section of the Commission at Judiciary Plaza, 450 Fifth Street, N.W., Washington
D.C. 20549. The Company is an electronic filer under the EDGAR (Electronic Data
Gathering, Analysis and Retrieval) system maintained by the Commission. The
Commission maintains a Web site (http://www.sec.gov) on the Internet that
contains reports, proxy and information statements and other information
regarding companies that file electronically with the Commission. In addition,
documents filed by the Company can be inspected at the offices of the American
Stock Exchange, Inc., 86 Trinity Place, New York, New York 10006.
INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE
The following documents, which the Company has filed with the Commission,
are incorporated herein by reference:
(1) The Company's Annual Report on Form 10-K for the fiscal year ended
September 30, 1996 (the "1996 Form 10-K");
(2) The Company's Quarterly Report on Form 10-Q for the fiscal quarter
ended December 31, 1996;
(3) The Company's Current Report on Form 8-K filed with the Commission on
March 3, 1997; and
(4) The description of the Common Stock and the Preferred Stock contained
in Amendment No. 1 to the Registration Statement on Form 8-A (File No.
1-9245) filed with the Commission on May 20, 1992, and any subsequent
amendment thereto filed for the purposes of updating such description.
All documents and reports filed by the Company pursuant to Sections 13(a),
13(c), 14 or 15(d) of the Exchange Act after the date of this Prospectus and
prior to the termination of the offering of Securities shall be deemed to be
incorporated by reference into this Prospectus and to be a part hereof from the
date of filing of such documents or reports. Any statement contained in a
document which is, or is deemed to be, incorporated by reference herein shall be
deemed to be modified or superseded for purposes of this Prospectus to the
extent that a statement contained herein (or in any other subsequently filed
document which also is, or is deemed to be, incorporated by reference herein)
modifies or supersedes the previous statement. Any statement so modified or
superseded shall not be deemed, except as so modified or superseded, to
constitute a part of this Prospectus.
The Company will provide without charge to each person, including any
beneficial owner, to whom this Prospectus is delivered, upon written or oral
request, a copy of any document incorporated by reference in this Prospectus,
other than exhibits to any such document not specifically described above.
Requests for such documents should be directed to Daniel McLachlin, Corporate
Secretary, Nabors Industries, Inc., 515 West Greens Road, Suite 1200, Houston,
Texas 77067; telephone number: (281) 874-0035.
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RISK FACTORS
In addition to the other information contained or incorporated by reference
in this Prospectus or any Prospectus Supplement, the following factors should be
considered carefully by prospective investors in evaluating the Company before
purchasing any of the securities offered hereby. The information contained or
incorporated by reference in this Prospectus or any Prospectus Supplement
includes forward-looking statements that involve risks and uncertainties, a
number of which are identified in this "Risk Factors" section. These risks and
uncertainties include, without limitation, industry conditions and the
variability of demand for contract drilling and related oilfield services,
intense competition, operating risks inherent in a hazardous industry, the
adequacy and availability of insurance, risks associated with international
operations, regulations pertaining to environmental matters and the other
matters detailed or referred to below and from time to time in the Company's
other reports filed with the Commission. The Company's actual results may differ
materially from the results set forth in or implied by any forward-looking
statements, due to such risks and uncertainties.
Business-Related Risks. The information set forth under the captions
"Industry Conditions, Competition and Seasonality," "Operating Risks and
Insurance," "International Operations" and "Governmental Matters" in Part I of
the Company's 1996 Form 10-K, in addition to the other information included in
the 1996 Form 10-K, is specifically incorporated by reference herein.
International Operations. A significant portion of the Company's business
is derived from international markets, including major operations in the Middle
East and South and Central America, as well as other operations in the
Commonwealth of Independent States, the Far East and Africa. Such operations may
be subject to various risks, including the risk of war and civil disturbances
and government activities, that may limit or disrupt markets, restrict the
movement of funds or result in the deprivation of contract rights or the taking
of property without fair compensation. In certain countries, such operations may
be subject to the additional risk of fluctuating currency values and exchange
controls. In the international markets in which the Company operates, it is
subject to various laws and regulations with respect to the operation and
taxation of its business and the import and export of its equipment from country
to country, the imposition, application and interpretation of which can prove to
be uncertain.
Dividend Policies; Restrictions on Payment of Dividends. The Company does
not anticipate that it will pay any dividends on the Common Stock in the
foreseeable future. Certain of the Company's debt instruments include covenants
restricting the Company's ability to pay dividends or to make certain other
distributions to stockholders. In connection with the offering of any
dividend-paying Preferred Stock hereby, the applicable Prospectus Supplement
will set forth the amount available for distribution as of the end of the most
recent fiscal period under the Company's debt instruments.
Holding Company Structure. The Company is a holding company, and it
conducts substantially all of its operations through subsidiaries. Consequently,
the Company will rely principally on dividends or advances from its subsidiaries
for the funds necessary to, among other things, pay principal of and any
interest or premium on the Debt Securities and the other indebtedness of the
Company. The ability of the Company's subsidiaries to pay dividends is subject
to applicable state law and certain other restrictions. Any right of the holders
of the Debt Securities to participate in the assets of any subsidiary upon the
subsidiary's liquidation or recapitalization will be effectively subordinated to
the claims of the subsidiary's creditors and preferred stockholders (if any),
except to the extent that the Company is itself recognized as a creditor of the
subsidiary.
Absence of Public Market for Certain of the Securities. All Debt
Securities, Preferred Stock, Depositary Shares and Warrants will be new issues
of securities with no established trading market. Any underwriters to whom Debt
Securities, Preferred Stock, Depositary Shares or Warrants are sold by the
Company for public offering and sale may make a market in such Securities, but
the underwriters will not be obligated to do so and may discontinue any
market-making at any time without notice. No assurance can be given as to the
liquidity of any secondary market for Debt Securities, Preferred Stock,
Depositary Shares or Warrants.
Market Risk with Respect to Common Stock; Certain Investment
Limitations. The Common Stock is listed for trading on the American Stock
Exchange. However, the prices at which shares of Common Stock trade may depend
on many factors, including prevailing interest rates, markets for similar
securities, industry
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conditions and the performance of, and investor expectations for, the Company.
No assurance can be given that a holder of shares of Common Stock will be able
to sell those shares at any particular price. Certain institutional investors
may invest only in dividend-paying equity securities or may operate under other
restrictions that may prohibit or limit their ability to invest in the Common
Stock.
Shares Available for Future Sale. As of March 31, 1997, there were
93,310,006 shares of Common Stock outstanding. As of such date, 19,729,808
shares of Common Stock were reserved for issuance pursuant to option and
employee benefit plans and 9,517,242 shares of Common Stock were reserved for
issuance upon the conversion of the 5% Notes (as defined herein). The exercise
price of many of these options is substantially lower than the trading prices of
Common Stock on that date. In addition, the exercise of certain of these options
may cause the Company to issue to the exercising holders additional options to
purchase shares of Common Stock at an exercise price equal to the fair market
value of Common Stock on the date of issuance, and the Company may issue
additional options in the future under stock option plans or otherwise. Certain
of the shares to be issued pursuant to the exercise of options may be
"restricted securities," as that term is defined in Rule 144 promulgated under
the Securities Act. The sale, or availability for sale, of substantial amounts
of Common Stock in the public market due to the exercise of options (and, where
applicable, sales pursuant to Rule 144) could adversely affect the prevailing
market price of the Common Stock and could impair the Company's ability to raise
additional capital through the sale of equity securities.
Reliance on Key Personnel. The Company's business is dependent to a
significant extent upon the performance of certain key individuals, including
Eugene M. Isenberg, Anthony G. Petrello and Richard A. Stratton. Each of these
individuals has entered into an employment agreement with the Company. The loss
of the services of Messrs. Isenberg, Petrello or Stratton could have a material
adverse effect on the Company.
Possible Deterrents to Changes of Control. The board of directors of the
Company is divided into three classes of directors, with each class serving a
staggered three-year term. See "Description of Capital Stock and Depositary
Shares -- Certain Certificate of Incorporation and By-Law Provisions." In
addition, the board of directors has the authority to issue up to 10,000,000
shares of Preferred Stock and to determine the price, rights (including voting
rights), conversion ratios, preferences and privileges of that stock without
further vote or action by the holders of the Common Stock. Although the Company
has no present plans to issue shares of Preferred Stock, the classified board
and the Board's ability to issue additional shares of Preferred Stock may
discourage, delay or prevent changes in control of the Company that are not
approved by the board of directors, thereby preventing certain stockholders of
the Company from realizing a possible premium on their shares.
THE COMPANY
The Company is the largest land drilling contractor in the world. The
Company was incorporated in Delaware in 1978 and has principally engaged in oil,
gas and geothermal land drilling operations in Alaska, the lower 48 states of
the United States and Canada, and internationally in the Middle East, the Far
East, the Commonwealth of Independent States, North and West Africa and South
and Central America. The Company, through its subsidiaries, also provides
offshore drilling, well servicing and workover services in the Gulf of Mexico,
Alaska's Cook Inlet and several international markets. A subsidiary of the
Company provides well servicing and workover services, primarily in the Rocky
Mountains and mid-continent region of the United States. The Company also
provides oilfield management, engineering, transportation, construction,
maintenance and other support services in selected domestic and international
markets. Another subsidiary of the Company, Canrig Drilling Technology Ltd.,
manufactures top drives for a broad range of drilling rig applications.
Since the current management group began directing the Company in 1987, the
Company's business philosophy has been to establish and maintain a conservative
and flexible financial posture, to build a diverse portfolio of market positions
to mitigate risk and provide potential for growth, to forge long-term
relationships with customers, to build a cadre of talented and experienced
employees, to grow and remain profitable in any market environment and to
position the business for the future by maintaining flexibility. This philosophy
has been implemented primarily through strategic acquisitions and internal
growth in existing and new markets.
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The Company also has advanced this philosophy by entering into strategic
alliances with customers and by providing integrated drilling, engineering and
other oilfield services responsive to customers' needs.
Acquisitions and Internal Growth. The Company's business philosophy has
been implemented through strategic acquisitions and internal growth in existing
and new markets. Since 1988, through acquisition of other drilling companies,
asset purchases and internal expansion, the Company has grown from a business
centered principally in Canada and Alaska to an international company operating
on land and offshore in many of the major oil, gas and geothermal markets in the
world. In 1988, the Company's rig fleet consisted of 44 land drilling rigs. As
of December 31, 1996, the active Company-owned rig fleet consisted of 362 land
drilling rigs, 34 offshore rigs and 78 land workover and well servicing rigs.
Strategic Alliances. The Company's business philosophy has also been
advanced by entering into strategic alliances with customers. An increasing
number of customers have been seeking to benefit from exploration and
development drilling programs by establishing continuing relationships, or
alliances, with a smaller number of preferred drilling contractors. These
alliances can result in long-term work and increased profitability for drilling
contractors that are selected as partners in the alliance. The Company has been
selected by operators as alliance partners in Alaska, the lower 48 states of the
United States and Canada.
Drilling and Engineering Services. The Company's business philosophy has
also been advanced by providing drilling-related services and management of
drill site activities to its customers. Many major oil and gas companies are
reducing the number of services they provide and the number of service
contractors at a drill site, and are requiring the contractors remaining provide
such drilling-related services and management. The Company also seeks to provide
innovative, quality engineering and technical support from its drilling and
oilfield support operations. The Company provides engineering services to all of
its subsidiaries and to its worldwide customers from its Houston-based
engineering groups.
USE OF PROCEEDS
The Company will receive no proceeds from the sale of shares of Common
Stock by the Selling Shareholders. With respect to offerings of Securities by
the Company, except as otherwise set forth in a Prospectus Supplement, the net
proceeds from the sale of the Securities will be used for future business
acquisitions and other general corporate purposes, including working capital,
investment in subsidiaries, the repayment of existing debt and/or the repurchase
of shares of Common Stock or other securities. The precise amounts and timing of
the application of the net proceeds for corporate purposes will depend upon a
variety of factors, including the Company's funding requirements and the
availability of alternative sources of funding. The Company routinely reviews
acquisition opportunities. Any proposal to use proceeds from any offering of
Securities in connection with an acquisition will be disclosed in the Prospectus
Supplement relating to such offering.
RATIO OF EARNINGS TO FIXED CHARGES
The ratio of earnings to fixed charges for each of the periods set forth
below has been computed on a consolidated basis and should be read in
conjunction with the Company's consolidated financial statements (including the
notes thereto) set forth or incorporated by reference in the Company's 1996 Form
10-K for the fiscal year ended September 30, 1996 and the Company's quarterly
report on Form 10-Q for the fiscal quarter ended December 31, 1996.
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FISCAL YEARS ENDED SEPTEMBER 30,
THREE MONTHS ENDED ------------------------------------
DECEMBER 31, 1996 1996 1995 1994 1993 1992
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Ratio of Earnings to Fixed Charges..... 9.12 7.09 7.67 1.65 5.35 6.50
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For purposes of computing the ratio of earnings to fixed charges,
"earnings" consist of pretax income from continuing operations plus fixed
charges (excluding capitalized interest). "Fixed charges" represent interest
incurred (whether expensed or capitalized), amortization of debt expense, and
that portion of rental
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<PAGE> 7
expense on operating leases deemed to be the equivalent of interest. No
Preferred Stock was outstanding during any of the periods presented and, as a
result, the ratio of earnings to combined fixed charges and Preferred Stock
dividends was the same as the ratio of earnings to fixed charges.
DESCRIPTION OF DEBT SECURITIES
The following description sets forth certain general terms and provisions
of the Debt Securities to which any Prospectus Supplement may relate. The
particular terms of the Debt Securities offered by any Prospectus Supplement and
the extent, if any, to which such general provisions may not apply to the Debt
Securities so offered will be described in the Prospectus Supplement relating to
such Debt Securities.
The Senior Debt Securities are to be issued under an indenture (the "Senior
Indenture"), to be entered into between the Company and a trustee named in the
applicable Prospectus Supplement. The Subordinated Debt Securities are to be
issued under a separate indenture (the "Subordinated Indenture"), to be entered
into between the Company and a trustee named in the applicable Prospectus
Supplement. (The Senior Indenture and the Subordinated Indenture are referred to
collectively herein as the "Indentures." The trustee under the Senior Indenture
and the trustee under the Subordinated Indenture are each referred to herein as
the "Trustee.") The following summaries of certain provisions of the Senior Debt
Securities, the Subordinated Debt Securities and the Indentures do not purport
to be complete and are subject to, and are qualified in their entirety by
reference to, all the provisions of the Indentures applicable to a particular
series of Debt Securities, including the definitions therein of certain terms.
Copies of the forms of the Indentures are filed as exhibits to the Registration
Statement of which this Prospectus is a part, and the following summary is
qualified in its entirety by reference to such exhibits. See "Available
Information." Article and Section references used herein are references to the
applicable Indenture. Capitalized terms not otherwise defined in this
Description of Debt Securities will have the meaning given in the Indentures.
Wherever particular Sections, Articles or defined terms of the Indentures are
referred to, it is intended that those Sections, Articles or defined terms shall
be incorporated herein by reference.
GENERAL
The Indentures do not limit the aggregate principal amount of Debt
Securities which may be issued thereunder and each Indenture provides that Debt
Securities may be issued thereunder from time to time in one or more series.
Unless otherwise specified in the applicable Prospectus Supplement, the Senior
Debt Securities, when issued, will be unsecured and unsubordinated obligations
of the Company and will rank equally and ratably with all other unsecured and
unsubordinated indebtedness of the Company. The Subordinated Debt Securities,
when issued, will be subordinated in right of payment to the prior payment in
full of all Senior Debt (as defined below) of the Company, as described under
"-- Subordination of Subordinated Debt Securities" and in the Prospectus
Supplement applicable to an offering of Subordinated Debt Securities. The Debt
Securities will be payable in currency of the United States or in such other
foreign currency, currency unit or composite currency as may be specified in the
applicable Prospectus Supplement.
The Prospectus Supplement relating to the offering of particular Debt
Securities (the "Offered Debt Securities") will set forth whether the Offered
Debt Securities will be Senior Debt Securities or Subordinated Debt Securities,
and will further set forth (to the extent applicable) the following terms of the
Offered Debt Securities: (1) the title of the Offered Debt Securities; (2) any
limit on the aggregate principal amount of the Offered Debt Securities; (3) the
Person to whom any interest on the Offered Debt Securities will be payable, if
other than the Person in whose name such Offered Debt Securities are registered
on any Regular Record Date; (4) the date or dates, or the method or methods (and
related procedures) by which such date or dates will be determined or extended,
on which the principal of the Offered Debt Securities will be payable; (5) the
rate or rates per annum (which may be fixed, floating or adjustable) at which
the Offered Debt Securities will bear interest, if any, or the formula pursuant
to which such rate or rates shall be determined, the date or dates from which
such interest will accrue and the dates on which such interest, if any, will be
payable and the Regular Record Dates for such interest payment dates; (6)
whether the Offered Debt Securities will be secured; (7) the place or places
where principal of (and premium, if any) and interest, if any, on the Offered
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Debt Securities will be payable; (8) if applicable, the price at which, the
periods within which and the terms and conditions upon which the Offered Debt
Securities may be redeemed in whole or in part at the option of the Company; (9)
if applicable, any obligation of the Company to redeem or purchase Offered Debt
Securities pursuant to any sinking fund or analogous provision or at the option
of a Holder thereof, and the period or periods within which, the price or prices
at which and the terms and conditions upon which the Offered Debt Securities
will be redeemed or purchased, in whole or in part; (10) if applicable, the
terms of any right to convert or exchange the Offered Debt Securities into
Securities or other securities of the Company (provided, however, that any such
other securities issuable upon conversion or exchange of Offered Debt Securities
will be subject to registration under the Securities Act or an applicable
exemption therefrom); (11) if other than denominations of $1,000 and any
integral multiple thereof (or the equivalent thereof in one or more foreign
currencies, currency units or composite currencies), the denominations in which
the Offered Debt Securities will be issuable; (12) if the amount of payments of
principal of (or premium, if any) or interest, if any, on the Offered Debt
Securities may be determined with reference to one or more indices, the manner
in which such amounts will be determined; (13) if other than currency of the
United States, one or more foreign currencies, currency units or composite
currencies in which the Offered Debt Securities are to be denominated; (14) if
other than the coin or currency in which the Offered Debt Securities are to be
denominated, the coin or currency in which payment of the principal of or
interest on the Offered Debt Securities shall be payable; (15) the price or
prices (expressed as a percentage of the principal amount thereof) at which such
Debt Securities will be issued and the portion of the principal amount of the
Offered Debt Securities, if other than the principal amount thereof, payable
upon acceleration of maturity thereof; (16) whether all or any part of the
Offered Debt Securities will be issued in the form of a Global Security or
Securities and, if so, the depositary for, and other terms relating to, such
Global Security or Securities; (17) whether any of the Offered Debt Securities
are Original Issue Discount Securities (as defined herein); (18) whether the
interest, if any, on the Offered Debt Securities is to be payable in securities
of the Company, and the terms and conditions applicable to any such payment;
(19) any event or events of default applicable with respect to the Offered Debt
Securities in addition to those provided in the Indentures; (20) any other
covenant or warranty included for the benefit of the Offered Debt Securities in
addition to (and not inconsistent with) those included in the Indentures for the
benefit of Debt Securities of all series, or any other covenant or warranty
included for the benefit of the Offered Debt Securities in lieu of any covenant
or warranty included in the Indentures for the benefit of Debt Securities of all
series, or any provision that any covenant or warranty included in the
Indentures for the benefit of Debt Securities of all series shall not be for the
benefit of the Offered Debt Securities, or any combination of such covenants,
warranties or provisions; (21) any restriction or condition on the
transferability of the Offered Debt Securities; (22) any authenticating or
paying agents, registrars, conversion agents or other agents with respect to the
Offered Debt Securities; and (23) any other terms of the Offered Debt
Securities. (Indentures, Section 301.) Debt Securities may also be issued under
the Indentures upon the exercise of Warrants. See "Description of Warrants."
Debt Securities may be issued at a discount from their stated principal
amount. Certain United States federal income tax considerations applicable to
any Debt Security issued with original issue discount (an "Original Issue
Discount Security") and any Debt Security on which the interest is to be payable
in securities of the Company may be described in an applicable Prospectus
Supplement.
If the purchase price of any of the Debt Securities is denominated in a
foreign currency, currency unit or composite currency or if the principal of
(and premium, if any) and interest on any series of Debt Securities is payable
in one or more foreign currencies, currency units or composite currencies, the
restrictions, elections, general tax considerations, specific terms and other
information with respect to such Debt Securities and such foreign currencies,
currency units or composite currencies will be set forth in an applicable
Prospectus Supplement.
Unless otherwise indicated in the Prospectus Supplement relating thereto,
the Offered Debt Securities will be issued as registered securities without
coupons in denominations of $1,000 or any integral multiple of $1,000 (or the
equivalent thereof in one or more foreign currencies, currency units or
composite currencies). (Indentures, Section 302.) No service charge will be made
for any transfer or exchange of such Offered Debt
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Securities, but the Company or the Trustee may require payment of a sum
sufficient to cover any tax or other governmental charge payable in connection
therewith. (Indentures, Section 305.)
Since the Company is a holding company, the rights of the Company, and
hence the rights of creditors of the Company (including the Holders of the Debt
Securities), to participate in any distribution of the assets of any subsidiary
upon its liquidation or reorganization or otherwise are necessarily subject to
the prior claims of creditors of the subsidiary, except to the extent that the
Company may be recognized as a creditor of the subsidiary. Generally, the Debt
Securities will be effectively subordinated to all existing and future
indebtedness of the Company's operating subsidiaries.
Unless otherwise specified in an applicable Prospectus Supplement, the
Indentures will not contain any provisions that limit the ability of the Company
or any subsidiary to incur indebtedness or that afford Holders of the Debt
Securities protection in the event of a highly leveraged or similar transaction
involving the Company or any subsidiary.
Other Indebtedness. Certain of the Company's existing debt instruments
impose, and future debt instruments may impose, certain restrictions on the
Company, including restrictions on the payment of dividends and certain business
combinations, and require the Company to maintain certain financial ratios. On
May 28, 1996, the Company issued $172.5 million of 5% Convertible Subordinated
Notes with a scheduled maturity on May 15, 2006 (the "5% Notes"). Interest on
the 5% Notes is payable semi-annually on May 15 and November 15 of each year
commencing November 15, 1996. The 5% Notes are convertible into common shares of
the Company at any time, at a conversion price of $18.125 per share, subject to
an adjustment in certain events. The 5% Notes are redeemable at the option of
the Company, in whole or in part, at any time on or after May 15, 1999,
initially at 103.5% and at decreasing prices thereafter to 100% at maturity, in
each case together with accrued and unpaid interest. The 5% Notes also may be
repaid at the option of the holder at 101%, together with accrued and unpaid
interest, any time prior to May 15, 2006 if there is a change in control, as
defined in the subordinated indenture. The proceeds from the 5% Notes were used
to repay several term loans and reduce outstanding borrowings on the Company's
credit facilities. The remaining proceeds are to be used for general corporate
purposes, including working capital.
The Company issued 9.18% Senior Secured Notes due July 31, 2006 in the
principal amount of $40.0 million (the "9.18% Notes") to the John Hancock Mutual
Life Insurance Company, pursuant to an Amended and Restated Note Purchase
Agreement dated October 1, 1992. The 9.18% Notes impose certain restrictions on
the Company, including restrictions on additional borrowings, liens,
transactions with affiliates, dividends and other payments in respect of capital
stock and certain business combinations. The Company may pay dividends to the
extent that the Company's cumulative dividends, plus certain other payments
since March 31, 1989, do not exceed 50% of the Company's cumulative net income
since March 31, 1989, plus the proceeds of any offering of equity securities of
the Company that are not redeemable at the option of the holder of the
securities. As of September 30, 1996, retained earnings available for dividends
totaled approximately $178 million. Also, proceeds from the sale of certain
assets must be used to prepay the 9.18% Notes to the extent that an amount equal
to those proceeds is not invested by the Company during a two-year period. The
9.18% Notes also require that certain financial tests be met by the Company on a
consolidated basis, the most restrictive of which requires working capital to be
in excess of $5.0 million. The 9.18% Notes are collateralized by the pledge of
all of the shares of one of the Company's subsidiaries operating in the Gulf of
Mexico and certain other subsidiary assets. Interest on the 9.18% Notes is
payable semi-annually on July 31 and January 31 of each year.
During 1995, a subsidiary of the Company entered into a revolving loan
agreement with a financial institution whereby it can borrow up to $20.0 million
for the construction of certain drilling equipment. Borrowings under the
agreement are guaranteed by the Company and bear interest at 90-day LIBOR plus
.50%. As of December 31, 1996, the amount of outstanding borrowings under this
agreement was approximately $13.0 million.
The Company has available lines of credit with a number of banks that
permit borrowings of up to $64.5 million at interest rates generally not to
exceed, at the option of the Company, each bank's prime rate or
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LIBOR plus .75%. Under these lines of credit, the Company had short-term
borrowings and letters of credit outstanding of approximately $20.2 million as
of December 31, 1996.
The information included in item 8 (entitled "Financial Statements and
Supplementary Data") in Part II of the Company's 1996 Form 10-K is specifically
incorporated by reference herein.
EVENTS OF DEFAULT AND NOTICE THEREOF
Unless otherwise specified in the applicable Prospectus Supplement, the
following events are defined in the Indentures as "Events of Default" with
respect to Debt Securities of any series: (1) failure to pay principal
(including any sinking fund payment) of, or premium (if any) on, any Debt
Security of that series when due (in the case of the Subordinated Indenture,
whether or not payment is prohibited by the subordination provisions) and such
failure continues for a period of 10 days; (2) failure to pay interest, if any,
on any Debt Security of that series when due and such failure continues for a
period of 30 days; (3) failure by the Company to perform any other covenant in
the Indentures (other than a covenant included in the Indentures solely for the
benefit of a series of Debt Securities other than that series) which continues
for a period of 90 days after written notice to the Company; (4) due
acceleration of any indebtedness for borrowed money in a principal amount in
excess of $25.0 million for which the Company or any Principal Subsidiary is
liable, including Debt Securities of another series, or a default by the Company
or any Principal Subsidiary in the payment at final maturity of outstanding
indebtedness for borrowed money in a principal amount in excess of $25.0
million, and such acceleration or default at maturity shall not be waived,
rescinded or annulled within 30 days after written notice to the Company
thereof, unless such acceleration or default at maturity shall be remedied or
cured by the Company or such Principal Subsidiary or rescinded, annulled or
waived by the holders of such indebtedness, in which case such acceleration or
default at maturity shall not constitute an Event of Default under this
provision; and (5) certain events of insolvency, reorganization, receivership or
liquidation of the Company. (Indentures, Section 501.)
No Event of Default with respect to Debt Securities of a particular series
will necessarily constitute an Event of Default with respect to Debt Securities
of any other series. If an Event of Default with respect to any outstanding
series of Debt Securities occurs and continues, then either the Trustee or the
Holders of at least 25% in principal amount of the outstanding Debt Securities
of that series may declare the principal amount (or, if the Debt Securities of
that series are Original Issue Debt Securities, such portion of the principal
amount as may be specified in the terms of that series) of all Debt Securities
of that series to be due and payable immediately; however, under certain
circumstances, the Holders of a majority in aggregate principal amount of
outstanding Debt Securities of that series may rescind or annul such declaration
and its consequences. (Indentures, Section 502.)
Reference is made to the Prospectus Supplement relating to any series of
Offered Debt Securities which are Original Issue Discount Securities for the
particular provisions relating to the principal amount of such Original Issue
Discount Securities due on acceleration upon the occurrence of an Event of
Default and the continuation thereof.
The Trustee is not charged with knowledge of any Event of Default unless
written notice thereof has been given to the Trustee by the Company, the Paying
Agent or Holders of at least 25% in principal amount of the outstanding Debt
Securities of that series. (Indentures, Section 501.) Each Indenture provides
that the Trustee may withhold notice to the Holders of the Debt Securities of
any default (except in payment of principal (or premium, if any) or interest, if
any) if it considers it in the interest of the Holders of the Debt Securities to
do so. (Indentures, Section 602.) The Company must furnish annually to the
Trustee a statement by one of certain specified officers of the Company as to
the compliance with all conditions and covenants of the Indentures. (Indentures,
Section 1004.)
The Holders of a majority in principal amount of the outstanding Debt
Securities of any series will have the right, subject to certain limitations, to
direct the time, method and place of conducting any proceeding for any remedy
available to the Trustee or exercising any trust or power conferred on the
Trustee with respect to the Debt Securities of that series, and to waive certain
defaults. (Indentures, Sections 512 and 513.)
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The Indentures provide that, if an Event of Default occurs and continues,
then the Trustee must exercise such of its rights and powers under the
Indentures, and use the same degree of care and skill in its exercise, as a
prudent person would exercise or use under the circumstances in the conduct of
his or her own affairs. (Indentures, Section 601.) Subject to these provisions,
the Trustee will be under no obligation to exercise any of its rights or powers
under the Indentures at the request of any of the Holders of Debt Securities
unless they have offered to the Trustee security or indemnity in form and
substance reasonably satisfactory to the Trustee against the costs, expenses and
liabilities that it might incur in compliance with the Holders' request.
(Indentures, Section 603.)
No Holder of a Debt Security of any series will have any right to institute
any proceeding with respect to the Indentures or for any remedy thereunder,
unless (1) that Holder has previously given to the Trustee written notice of a
continuing Event of Default, (2) the Holders of at least 25% in principal amount
of the outstanding Debt Securities of the same series have made a written
request, and offered indemnity to the Trustee in form and substance reasonably
satisfactory to the Trustee, to institute the proceeding as Trustee, (3) the
Trustee has not received from the Holders of a majority in principal amount of
the outstanding Debt Securities of the same series a direction inconsistent with
the request, and (4) the Trustee has failed to institute such proceeding within
60 days of the written request therefor. (Indentures, Section 507.) However,
these limitations do not apply to a suit instituted by a Holder of a Debt
Security for enforcement of payment of the principal of (or premium, if any) or
interest, if any, on that Holder's Debt Security on or after the respective due
dates expressed in that Debt Security, or of the right to convert that Holder's
Debt Security in accordance with the Indentures (if applicable). (Indentures,
Section 508.)
MODIFICATION AND WAIVER
Each Indenture allows the Company and the Trustee, from time to time,
without the consent of the Holders of any series of Debt Securities, to amend
the Indenture or the applicable series of Debt Securities for certain specified
purposes, including curing ambiguities or inconsistencies and making any change
that does not adversely affect the rights of any Holder of that series of Debt
Securities. (Indentures, Section 901.) Modifications and amendments of the
Indentures may also be made by the Company and the Trustee, with the consent of
the Holders of not less than a majority of principal amount of each series of
the outstanding Debt Securities issued under the Indentures which is affected by
the modification or amendment; however, no such modification or amendment may,
without the consent of each Holder of a Debt Security affected thereby: (1)
change the Stated Maturity of the principal of or any installment of principal
or interest, if any, on any such Debt Security, except that, with the consent of
the Holders of not less than 75% of the outstanding Debt Securities of any
series, the Company may postpone any interest payment in respect of that series
for a period not to exceed three years; (2) reduce the principal amount of (or
premium, if any) or the interest rate, if any, on any such Debt Security or the
principal amount due upon acceleration of any Original Issue Discount Security;
(3) change the place or currency of payment of principal of (or premium, if any)
or the interest, if any, on any such Debt Security; (4) impair the right to
institute suit for the enforcement of any such payment on or with respect to any
such Debt Security; (5) reduce the percentage of the principal amount of Debt
Securities necessary to modify or amend the Indentures; (6) in the case of the
Subordinated Indenture, modify the subordination provisions in a manner adverse
to the holders of the Subordinated Debt Securities; or (7) modify the foregoing
requirements or reduce the percentage of outstanding Debt Securities necessary
to waive compliance with certain provisions of the Indentures or to waive
certain defaults. (Indentures, Section 902.)
The holders of at least a majority of the aggregate principal amount of the
outstanding Debt Securities of any series may, on behalf of all Holders of that
series, waive compliance by the Company with any of the provisions of the
Indentures and waive any past default under the applicable Indenture, except a
default in the payment of principal (and premium, if any), or interest (if any)
or in the performance of certain covenants. (Indentures, Sections 908 and 513.)
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DEFEASANCE AND COVENANT DEFEASANCE
The Indentures allow the Company to elect either (1) to defease and be
discharged from all of its obligations with respect to any series of Debt
Securities (including, in the case of Subordinated Debt Securities, the
provisions described under "-- Subordination of Subordinated Debt Securities"
and except for the obligations to exchange or register the transfer of such Debt
Securities, to replace temporary, mutilated, destroyed, lost or stolen Debt
Securities, to maintain an office or agency in respect of such Debt Securities,
and to hold monies for payments in trust) ("defeasance"), or (2) to be released
from its obligations with respect to any series of Debt Securities concerning
the restrictions described under "-- Consolidation, Merger or Sale of Assets"
and any other covenants applicable to such Debt Securities (including, in the
case of Subordinated Debt Securities, the provisions described under
"--Subordination of Subordinated Debt Securities") which are subject to covenant
defeasance ("covenant defeasance"), and the occurrence of an event described and
notice thereof in clauses (3) and (4) under "-- Events of Default and Notice
Thereof" (with respect to covenants subject to covenant defeasance) shall no
longer be an Event of Default, in each case, upon the irrevocable deposit with
the Trustee (or other qualifying trustee), in trust for such purpose, of money
and U.S. Government Obligations that, through the payment of principal and
interest in accordance with their terms, will provide money in an amount
sufficient to pay the principal of (and premium, if any) and interest, if any,
on such Debt Securities on the scheduled due dates therefor. Such a trust may
only be established if, among other things, (a) the Company has delivered to the
Trustee (i) in the case of defeasance, an Opinion of Counsel stating that (A)
the Company has received from, or there has been published by, the Internal
Revenue Service a ruling, or (B) since the date of the Indenture, there has been
a change in the applicable United States federal income tax law, in the case of
either (A) or (B) to the effect that the holders of such Securities will not
recognize gain or loss for United States federal income tax purposes as a result
of the deposit, defeasance and discharge to be effected with respect to such
Securities and will be subject to United States federal income tax on the same
amount, in the same manner and at the same times as would be the case if such
deposit, defeasance and discharge were not to occur or (ii) in the case of
covenant defeasance, an Opinion of Counsel to the effect that the Holders of
such Debt Securities will not recognize gain or loss for United States federal
income tax purposes as a result of such deposit and covenant defeasance and will
be subject to United States federal income tax on the same amounts, in the same
manner and at the same times as would have been the case if such deposit and
covenant defeasance had not occurred, (b) no Event of Default or event which
with the giving of notice or lapse of time, or both, would become an Event of
Default under the applicable Indenture shall have occurred and be continuing on
the date of such deposit and (c) in the case of Subordinated Debt Securities,
(i) no default in the payment of principal of (or premium, if any) or interest,
if any, on any Senior Debt beyond any applicable grace period shall have
occurred and be continuing, or (ii) no other default with respect to any Senior
Debt shall have occurred and be continuing and shall have resulted in the
acceleration of such Senior Debt. The Company may exercise its defeasance option
with respect to such Debt Securities notwithstanding its prior exercise of its
covenant defeasance option. If the Company exercises its defeasance option,
payment of such Debt Securities may not be accelerated because of an Event of
Default. If the Company exercises its covenant defeasance option, payment of
such Debt Securities may not be accelerated by reference to the covenants noted
under clause (2) above. If the Company omits to comply with its remaining
obligations with respect to such Debt Securities under the applicable Indenture
after exercising its covenant defeasance option, and if such Debt Securities are
declared due and payable because of the occurrence of any Event of Default, then
the amount of money and U.S. Government Obligations on deposit with the Trustee
may, in certain circumstances, be insufficient to pay amounts due on such Debt
Securities at the time of the acceleration resulting from the Event of Default;
however, the Company will remain liable for making such payments. (Indentures,
Article Thirteen.)
CERTAIN COVENANTS
Maintenance of Office or Agency. The Company must maintain an office or
agency in each Place of Payment for each series of Debt Securities, both for
notice and demand purposes and for the purposes of presenting or surrendering
Debt Securities for payment or registration of transfer or exchange.
(Indentures, Section 1002.)
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Paying Agents, Etc. If the Company acts as its own Paying Agent with
respect to any series of Debt Securities, then, on or before each due date of
the principal of or interest on any Debt Securities of that series, it must
segregate and hold in trust for the benefit of the persons entitled thereto a
sum that is sufficient to pay the amount due and must notify the Trustee
promptly of its action or failure so to act. If the Company has one or more
Paying Agents for any series of Debt Securities, then, prior to each due date of
the principal of or interest on any Debt Securities of that series, it must
deposit with a Paying Agent a sum sufficient to pay such amount, and must
promptly notify the Trustee of its action or failure to so act (unless the
Paying Agent is the Trustee). All amounts that are paid by the Company to a
Paying Agent for the payment of principal of and interest on any Debt Securities
and that remain unclaimed for two years after such principal and interest has
become due and payable may be repaid to the Company, and thereafter the holder
of those Debt Securities may look only to the Company for payment thereof.
(Indentures, Section 1003.)
Restrictive Covenants. Any restrictive covenants applicable to any series
of Debt Securities will be described in an applicable Prospectus Supplement.
CONSOLIDATION, MERGER OR SALE OF ASSETS
The Company may not consolidate with or merge into any other Person or sell
its property and assets as, or substantially as, an entirety to any Person and
may not permit any Person to merge into or consolidate with the Company unless
(i) either the Company will be the resulting or surviving entity or any
successor or purchaser is a corporation, partnership or trust organized under
the law of the United States of America, any State or the District of Columbia,
and any such successor or purchaser expressly assumes the Company's obligations
under the Debt Securities in a supplemental indenture, (ii) immediately after
giving effect to the transaction, no Event of Default shall have occurred and be
continuing, and (iii) certain other conditions are met. (Indentures, Section
801.)
CONVERSION RIGHTS
The terms on which Debt Securities of any series may be convertible or
exchangeable into Securities or other securities of the Company will be set
forth in the Prospectus Supplement relating to that series of Debt Securities
(however, any such other securities issuable upon conversion or exchange of Debt
Securities will be subject to registration under the Securities Act or an
applicable exemption therefrom). The terms will include provisions as to whether
conversion or exchange is mandatory, at the option of the holder or at the
option of the Company, and may include provisions requiring the number of
securities to be received by the holders of Debt Securities to be calculated
according to the market price of the securities to be received, as of a time
stated in the Prospectus Supplement. (Indentures, Section 301 and Article
Twelve.)
SUBORDINATION OF SUBORDINATED DEBT SECURITIES
Unless otherwise indicated in the applicable Prospectus Supplement, the
following provisions will apply to the Subordinated Debt Securities.
To the extent set forth in the Subordinated Indenture, the Subordinated
Debt Securities will be subordinated in right of payment to the prior payment in
full of all Senior Debt, including any Senior Debt Securities. (Subordinated
Indenture, Section 1501.) Upon any liquidation, dissolution, winding up,
reorganization, assignment for the benefit of creditors or marshaling of assets
or any bankruptcy, insolvency, debt restructuring or similar proceedings in
connection with any insolvency or bankruptcy proceeding of the Company, the
holders of Senior Debt will first be entitled to receive payment in full of
principal of (and premium, if any) and interest, if any, on the Senior Debt
before the holders of Subordinated Debt Securities will be entitled to receive
or retain any payment in respect of the principal of (and premium, if any) or
interest, if any, on the Subordinated Debt Securities. (Subordinated Indenture,
Section 1502.)
Because of the subordination of the Subordinated Debt Securities, if the
Company is liquidated or insolvent, then Holders of Subordinated Debt Securities
may recover less, ratably, than holders of Senior Debt or other creditors of the
Company who are not subordinated to holders of Senior Debt.
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If the maturity of any Subordinated Debt Securities is accelerated, then
the holders of all Senior Debt outstanding at that time will first be entitled
to receive payment in full of all amounts due with respect to their Senior Debt
(including any amounts due upon acceleration) before the Holders of the
Subordinated Debt Securities will be entitled to receive any payment upon the
principal of (or premium, if any) or interest, if any, on the Subordinated Debt
Securities. (Subordinated Indenture, Section 1503.)
The Company is prohibited from making payments of principal (or premium, if
any) or interest, if any, in respect of the Subordinated Debt Securities if a
default in any payment with respect to Senior Debt, or an event of default with
respect to any Senior Debt resulting in the acceleration of the maturity
thereof, has occurred and continues, or if any judicial proceeding is then
pending with respect to any such default. (Subordinated Indenture, Section
1504.) For purposes of the subordination provisions, the payment, issuance and
delivery of cash, property or securities (other than stock and certain
subordinated securities of the Company) upon conversion of a Subordinated Debt
Security will be deemed to constitute payment on account of the principal of
such Subordinated Debt Security. (Subordinated Indenture, Section 1516.)
Therefore, these conversion payments, issuances or deliveries will be
subordinated to the same extent as payments of principal of the Subordinated
Debt Securities.
"Debt" means (without duplication and without regard to any portion of
principal amount that has not accrued and to any interest component thereof
(whether accrued or imputed) that is not due and payable), with respect to any
Person, whether recourse is to all or a portion of the assets of such Person and
whether or not contingent, (1) every obligation of such Person for money
borrowed; (2) every obligation of such Person evidenced by bonds, debentures,
notes or other similar instruments, including obligations incurred in connection
with the acquisition of property, assets or businesses; (3) every reimbursement
obligation of such Person with respect to letters of credit, bankers'
acceptances or similar facilities issued for the account of such Person; (4)
every obligation of such Person issued or assumed as the deferred purchase price
of property or services (but excluding trade accounts payable or accrued
liabilities arising in the ordinary course of business); (5) every capital lease
obligation of such Person; (6) the maximum fixed redemption or repurchase price
of redeemable stock of such Person at the time of determination; and (7) every
obligation of the type referred to in clauses (1) through (6) of another Person
and all dividends of another Person the payment of which, in either case, such
Person has guaranteed or is responsible or liable, directly or indirectly, as
obligor or otherwise.
"Senior Debt" means the principal of (and premium, if any) and interest, if
any (including interest accruing on or after the filing of any petition in
bankruptcy or for reorganization relating to the Company to the extent that such
claim for post-petition interest is allowed in such proceeding), on Debt,
whether incurred on or prior to the date of the Subordinated Indenture or
thereafter incurred, unless, in the instrument creating or evidencing the same
or pursuant to which the same is outstanding, it is provided that such
obligations are not superior in right of payment to the Subordinated Debt
Securities or to other Debt which is pari passu with, or subordinated to, the
Subordinated Debt Securities; however, Senior Debt will not be deemed to include
(1) the Subordinated Debt Securities, (2) the Debt referred to in clause (6) of
the definition of Debt or (3) the 5% Notes.
The Subordinated Indenture does not limit or prohibit the incurrence of
additional Senior Debt, which may include indebtedness that is senior to the
Subordinated Debt Securities, but subordinate to other obligations of the
Company. The Senior Debt Securities, when issued, will constitute Senior Debt.
The indebtedness represented by the Notes, and all borrowings under revolving
credit and other credit facilities maintained by the Company or its
subsidiaries, will also constitute Senior Debt. At December 31, 1996, Senior
Debt outstanding aggregated approximately $86.0 million. See
"-- General -- Other Indebtedness."
The Prospectus Supplement may further describe the provisions, if any,
applicable to the subordination of Subordinated Debt Securities of a particular
series.
GLOBAL SECURITIES
Debt Securities of a series may be issued in the form of one or more Global
Securities that will be deposited with a depositary or its nominee. In such a
case, one or more Global Securities will be issued in a
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denomination or aggregate denominations equal to the portion of the aggregate
principal amount of Outstanding Debt Securities of the series to be represented
by such Global Security or Securities. Unless and until it is exchanged in whole
or in part for Debt Securities in definitive registered form, a Global Security
may not be registered for transfer or exchange except as a whole by the
depositary for such Global Security to the depositary's nominee and except in
the circumstances described in the applicable Prospectus Supplement.
(Indentures, Sections 204 and 305.)
The specific terms of the depositary arrangement with respect to any
portion of a series of Debt Securities to be represented by a Global Security
will be described in an applicable Prospectus Supplement. The Company expects
that the following provisions will apply to depositary arrangements.
Unless otherwise specified in an applicable Prospectus Supplement, if Debt
Securities are to be represented by a Global Security deposited with or on
behalf of a depositary, then the Global Security will be registered in the name
of the depositary or its nominee. Upon the issuance of the Global Security, and
the deposit of the Global Security with or on behalf of the depositary, the
depositary will credit, on its book-entry registration and transfer system, the
respective principal amounts of the Debt Securities represented by the Global
Security to the accounts of institutions that have accounts with the depositary
or its nominee ("Participants"). The accounts to be credited will be designated
by the underwriters or agents of the applicable Debt Securities or by the
Company, if the Debt Securities are offered and sold directly by the Company.
Ownership of beneficial interests in the Global Securities will be limited to
Participants or Persons who hold interests through Participants. Ownership of
beneficial interests by Participants in the Global Security will be shown on,
and the transfer of that ownership interest will be effected only through,
records maintained by the depositary or its nominee for the Global Security.
Ownership of beneficial interests in the Global Security by Persons who hold
through Participants will be shown on, and the transfer of that ownership
interest will be effected only through, records maintained by such Participants.
The laws of some jurisdictions require that certain purchasers of securities
take physical delivery of such securities in definitive form. Such laws may
impair the ability to transfer beneficial interests in a Global Security.
So long as the depositary for a Global Security, or its nominee, is the
registered owner of the Global Security, the depositary or the nominee, as the
case may be, will be considered the sole owner or Holder of the Debt Securities
represented by the Global Security for all purposes under the applicable
Indenture. Unless otherwise specified in an applicable Prospectus Supplement,
owners of beneficial interests in Global Securities will not be entitled to have
Debt Securities of the series represented by that Global Security registered in
their names, will not receive or be entitled to receive physical delivery of
Debt Securities of that series in certificated form, and will not be considered
the owners or Holders of those Debt Securities for any purpose under the
applicable Indenture. Accordingly, each Person owning a beneficial interest in a
Global Security must rely on the procedures of the depositary and, if that
Person is not a Participant, on the procedures of the Participant through which
the Person owns its interest, to exercise any rights of a Holder under the
applicable Indenture. The Company understands that, under existing industry
practices, if the Company requests any action of Holders or an owner of a
beneficial interest in a Global Security desires to give any notice or take any
action that a Holder is entitled to give or take under the applicable Indenture,
then the depositary would authorize the Participants to give the notice or take
the action, and Participants would authorize beneficial owners owning through
the Participants to give the notice or take the action or would otherwise act
upon the instructions of beneficial owners owning through them.
Principal of, and any premium and interest on, a Global Security will be
payable in the manner described in an applicable Prospectus Supplement. Payment
of principal of, and any premium or interest on, Debt Securities registered in
the name of or held by a depositary or its nominee will be made to the
depositary or its nominee, as the case may be, as the registered owner or the
holder of the Global Security representing those Debt Securities. None of the
Company, the Trustee, any Paying Agent, or the Registrar for those Debt
Securities will be responsible or liable for any aspect of the records relating
to, or payments made on account of, beneficial ownership interests in a Global
Security for Debt Securities or for maintaining, supervising, or reviewing any
records relating to those beneficial ownership interests.
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THE TRUSTEE
Each Indenture contains certain limitations on the Trustee's right, if it
becomes a creditor of the Company within three months of, or subsequent to, a
default by the Company, to make payment in full of principal of, or interest on,
any series of Debt Securities when and as the principal and interest become due
and payable, to obtain payment of claims, or to realize for the Trustee's own
account on property received in respect of any claim as security or otherwise,
unless and until the default is cured. (Indentures, Section 613.)
The Trustee or its affiliates may act as depositary for funds of, make
loans to, perform other services for, or be a customer of, the Company in the
ordinary course of business.
GOVERNING LAW
The Indentures are governed by and will be construed in accordance with the
laws (except for principles of conflicts of laws) of the State of New York.
(Indentures, Section 112.)
DESCRIPTION OF CAPITAL STOCK AND DEPOSITARY SHARES
AUTHORIZED CAPITAL STOCK
Pursuant to the Company's Restated Certificate of Incorporation (the
"Certificate of Incorporation"), the authorized capital stock of the Company
consists of 200,000,000 shares of Common Stock, par value $.10 per share (the
"Common Stock"), 8,000,000 shares of Class B Stock, par value $.10 per share
(the "Class B Stock"), none of which are outstanding, and 10,000,000 shares of
Preferred Stock, par value $.10 per share (the "Preferred Stock"), none of which
are outstanding.
As of March 31, 1997, there were 96,310,006 shares of Common Stock
outstanding, 19,729,808 shares of Common Stock reserved for issuance pursuant to
option and employee benefit plans and 9,517,242 shares of Common Stock reserved
for issuance upon the conversion of the 5% Notes.
PREFERRED STOCK
The following description sets forth certain general terms and provisions
of the Preferred Stock to which any Prospectus Supplement may relate. Certain
other terms, and the particular terms of a specific series of Preferred Stock,
will be described in the Prospectus Supplement relating to that series. If so
indicated in the applicable Prospectus Supplement, the terms of any specific
series may differ from the terms set forth below. The summary of certain
provisions of the Preferred Stock set forth below and in any Prospectus
Supplement does not purport to be complete and is subject to and qualified in
their entirety by reference to the Certificate of Incorporation (as it may be
amended from time to time) and the certificate of designations relating to that
series of Preferred Stock (the "Certificate of Designations"), which will be
filed as an exhibit to or incorporated by reference in the Registration
Statement of which this Prospectus forms a part at or prior to the time of
issuance of that series of the Preferred Stock.
General. Under the Certificate of Incorporation, the Board of Directors of
the Company is authorized, without further stockholder action, to issue from
time to time up to 10,000,000 shares of Preferred Stock and to fix and determine
the voting powers, designations, preferences and relative, participating,
optional or other special rights and qualifications, limitations or restrictions
of any series of Preferred Stock, including, without limitation, any voting
rights, any dividends payable and any right of the shares of that series to
convert into or be exchanged for other securities of the Company (provided,
however, that any securities issuable upon conversion or exchange of Preferred
Stock will be subject to registration under the Securities Act or an applicable
exemption therefrom). Thus, the Board of Directors of the Company, without
stockholder approval, could authorize the issuance of Preferred Stock with
voting, conversion and other rights that could adversely affect the voting power
(if any) and other rights of other series of the Preferred Stock or of the
Common Stock. As of the date of this Prospectus, the Company has no Preferred
Stock outstanding.
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The Preferred Stock will have the dividend, liquidation, redemption and
voting rights set forth below, unless otherwise provided in the Prospectus
Supplement relating to a particular series of Preferred Stock. The applicable
Prospectus Supplement will describe: (1) the designation and the number of
shares offered; (2) the amount of liquidation preference per share; (3) the
price at which that Preferred Stock will be issued; (4) the dividend rate (or
method of calculation), if any, the dates on which dividends will be payable,
whether dividends will be cumulative or noncumulative and, if cumulative, the
dates from which dividends will begin to cumulate; (5) any redemption or sinking
fund provisions; (6) the terms of any rights to convert or exchange the
Preferred Stock into other securities of the Company; (7) whether the Company
has elected to offer Depositary Shares (as defined below); and (8) any
additional voting, dividend, liquidation, redemption, sinking fund and other
rights, preferences, privileges, limitations and restrictions.
As indicated elsewhere herein (see "Description of Debt
Securities -- General"), because the Company is a holding company, its rights
and the rights of holders of its securities, including the holders of Preferred
Stock, to participate in the distribution of assets of any subsidiary of the
Company upon the subsidiary's liquidation or recapitalization will be subject to
the prior claims of the subsidiary's creditors and preferred stockholders,
except to the extent that the Company may itself be a creditor with recognized
claims against the subsidiary or a holder of preferred stock of the subsidiary.
The Preferred Stock will rank prior to the Common Stock and the Class B Stock
with respect to dividend rights and rights upon winding up and dissolution of
the Company.
The Preferred Stock will be issued in one or more series. The holders of
Preferred Stock will have no preemptive rights. Preferred Stock will be fully
paid and nonassessable when issued upon full payment of the purchase price
therefor. Unless otherwise specified in the Prospectus Supplement relating to a
particular series of Preferred Stock, each series of Preferred Stock offered
hereby will rank on a parity as to dividends and liquidation rights in all
respects with each other series of Preferred Stock. The Prospectus Supplement
will contain, if applicable, a description of material United States federal
income tax consequences relating to the purchase and ownership of shares of the
series of Preferred Stock offered by the Prospectus Supplement.
Dividend Rights. Unless otherwise set forth in the applicable Prospectus
Supplement, holders of shares of each series of the Preferred Stock will be
entitled to receive, when, as and if declared by the Board of Directors of the
Company out of funds legally available therefor, cash dividends at such rates
and on such dates as are set forth in the Prospectus Supplement relating to such
series of Preferred Stock. Different series of Preferred Stock may be entitled
to dividends at different rates or based upon different methods of
determination. The dividend rate may be fixed or variable or both. Each dividend
will be payable to the holders of record as they appear on the stock books of
the Company, on the record dates fixed by the Board of Directors of the Company
or a duly authorized committee thereof. Dividends on any series of the Preferred
Stock may be cumulative or noncumulative, as provided in the Prospectus
Supplement relating thereto.
Rights Upon Liquidation. In the event of any voluntary or involuntary
liquidation, dissolution or winding up of the Company, the holders of shares of
each series of Preferred Stock will be entitled to receive liquidating
distributions in the amount set forth in the Prospectus Supplement relating to
that series of Preferred Stock, out of assets of the Company available for
distribution to stockholders, before any distribution of assets is made to
holders of Common Stock or the Class B Stock or any other class of stock ranking
junior to that series of Preferred Stock upon liquidation.
Redemption. One or more series of the Preferred Stock may be redeemable, in
whole or in part, at the option of the Company, and may be subject to mandatory
redemption pursuant to a sinking fund or otherwise, in each case upon terms, at
the times and at the redemption prices set forth in the applicable Prospectus
Supplement.
Conversion and Exchange. The terms, if any, on which shares of any series
of Preferred Stock will be convertible into or exchangeable for other securities
of the Company will be set forth in the applicable Prospectus Supplement
(however, any securities issuable upon conversion or exchange of Preferred Stock
will be subject to registration under the Securities Act or an applicable
exemption therefrom). The conversion or exchange terms may include provisions
for conversion or exchange, either mandatory, at the option of the holder, or at
the option of the Company, in which case the number of other securities of the
Company to be
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received by the holders of that series of Preferred Stock would be calculated as
of a time and in the manner stated in the Prospectus Supplement.
Transfer Agent and Registrar. The transfer agent, registrar and dividend
disbursement agent for the Preferred Stock will be designated in the applicable
Prospectus Supplement. The registrar for shares of Preferred Stock will send to
stockholders notices of any meetings at which holders of the applicable series
of Preferred Stock will have the right to elect directors of the Company or to
vote on any other matter.
Voting Rights. The holders of Preferred Stock of a series offered hereby
will not have any voting rights, except as indicated in the applicable
Prospectus Supplement or as required by applicable law.
DEPOSITARY SHARES
General. The Company may, at its option, offer receipts for fractional
interests ("Depositary Shares") in Preferred Stock, rather than full shares of
Preferred Stock. In that event, receipts ("Depositary Receipts") for Depositary
Shares, each of which will represent a fraction (which will be set forth in the
Prospectus Supplement relating to the applicable series of Preferred Stock) of a
share of a particular series of Preferred Stock, will be issued as described
below.
The shares of any series of Preferred Stock represented by Depositary
Shares will be deposited under a Deposit Agreement (the "Deposit Agreement")
between the Company and a depositary to be named by the Company in the
applicable Prospectus Supplement (the "Depositary"). Subject to the terms of the
Deposit Agreement, each owner of a Depositary Share will be entitled, in
proportion to the applicable fraction of a share of Preferred Stock represented
by that Depositary Share, to all of the rights and preferences of the Preferred
Stock represented thereby (including dividend, voting, redemption, subscription
and liquidation rights). The following summary of certain provisions of the
Deposit Agreement does not purport to be complete and is subject to, and is
qualified in its entirety by reference to, all of the provisions of the Deposit
Agreement, including the definitions therein of certain terms. Copies of the
forms of Deposit Agreement and Depositary Receipt are filed as exhibits to the
Registration Statement of which this Prospectus is a part, and the following
summary is qualified in its entirety by reference to those exhibits.
Dividends and Other Distributions. The Depositary will distribute all cash
dividends or other cash distributions received in respect of the applicable
series of Preferred Stock to the record holders of Depositary Shares relating to
that series in proportion to the amount of those Depositary Shares owned by the
holders.
In the event of a distribution other than in cash, then the Depositary will
distribute property received by it to the record holders of Depositary Shares in
an equitable manner, unless the Company, after consulting with the Depositary,
determines that it is not feasible to make the distribution, in which case the
Depositary may sell the distributed property and distribute the net proceeds
from the sale to the holders.
Redemption of Depositary Shares. If a series of Preferred Stock represented
by Depositary Shares is subject to redemption, the Depositary Shares will be
redeemed from the proceeds received by the Depositary resulting from any
redemption of any shares of that series of Preferred Stock held by the
Depositary. The redemption price per Depositary Share will equal the applicable
fraction of the redemption price per share payable with respect to that series
of Preferred Stock. Whenever the Company redeems shares of Preferred Stock held
by the Depositary, the Depositary will redeem, as of the same redemption date,
the number of Depositary Shares representing shares of Preferred Stock so
redeemed. If fewer than all of the Depositary Shares are to be redeemed, then
the Depositary Shares to be redeemed will be selected by lot, pro rata or by
another equitable method.
Withdrawal of Preferred Stock. Any holder of Depositary Shares may receive,
upon surrender of the corresponding Depositary Receipts to the Depositary, the
number of whole shares of the related series of Preferred Stock and any money or
other property represented by the surrendered Depositary Receipts. Holders of
Depositary Shares that surrender their Depositary Receipts will be entitled to
receive whole shares of Preferred Stock on the basis set forth in the related
Prospectus Supplement for the applicable series of Preferred Stock, but holders
of whole shares of that series of Preferred Stock will not be entitled to
subsequently deposit those shares of Preferred Stock under the Deposit Agreement
or to receive Depositary
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Receipts therefor. If the Depositary Shares surrendered by a holder in
connection with a withdrawal exceed the number of Depositary Shares that
represent the number of whole shares of Preferred Stock to be withdrawn, then
the Depositary will deliver to that holder at the same time a new Depositary
Receipt evidencing the excess number of Depositary Shares.
Voting the Preferred Stock. Upon receipt of a notice of any meeting at
which the holders of a series of Preferred Stock are entitled to vote, the
Depositary will mail the information contained in the notice to the record
holders of the Depositary Shares relating to that series of Preferred Stock.
Each record holder of the Depositary Shares on the record date (which will be
the same date as the record date for the Preferred Stock) will be entitled to
instruct the Depositary to exercise the voting rights pertaining to the shares
of Preferred Stock represented by that holder's Depositary Shares. The
Depositary will endeavor, insofar as practicable, to vote the amount of the
Preferred Stock represented by those Depositary Shares in accordance with the
holder's instructions, and the Company will take all reasonable action that the
Depositary may deem necessary in order to enable the Depositary to do so. The
Depositary will abstain from voting shares of the Preferred Stock to the extent
that it does not receive specific instructions from the holder of Depositary
Shares representing those shares of Preferred Stock.
Amendment and Termination of Deposit Agreement. The form of Depositary
Receipt evidencing the Depositary Shares and any provision of the Deposit
Agreement may at any time be amended by agreement between the Company and the
Depositary. However, any amendment that imposes any fees, taxes or other charges
payable by holders of Depositary Receipts (other than taxes and other
governmental charges, fees and other expenses payable by such holders as stated
under "-- Depositary Shares -- Charges of Depositary"), or that otherwise
prejudices any substantial existing right of holders of Depositary Receipts,
will not affect outstanding Depositary Receipts until 90 days after notice of
the amendment has been mailed to the record holders of outstanding Depositary
Receipts. Every holder of Depositary Receipts at the time the amendment becomes
effective will be deemed to consent and agree to the amendment and to be bound
by the Deposit Agreement, as so amended. No amendment may impair the right of
any owner of Depositary Shares to receive shares of the Preferred Stock and any
money or other property represented thereby, subject to the conditions specified
in the Deposit Agreement, upon surrender of the Depositary Receipts evidencing
such Depositary Shares, except in order to comply with mandatory provisions of
applicable law.
Whenever so directed by the Company, the Depositary will terminate the
Deposit Agreement by mailing notice of termination to the record holders of all
Depositary Receipts then outstanding at least 30 days before the termination
date stated in the notice. The Depositary may also terminate the Deposit
Agreement if 45 days have expired after the Depositary delivered to the Company
a written notice of its election to resign and a successor depositary has not
been appointed and accepted its appointment. If any Depositary Receipts remain
outstanding after the date of termination, the Depositary will discontinue the
transfer of Depositary Receipts, will suspend the distribution of dividends to
the holders of Depositary Receipts, and will not give any further notices (other
than notice of termination) or perform any further acts under the Deposit
Agreement, except that the Depositary will continue (1) to collect dividends and
any other distributions on the Preferred Stock and (2) to deliver the Preferred
Stock, together with the corresponding dividends and distributions and the net
proceeds of any sales of rights, preferences, privileges or other property,
without liability for interest thereon, in exchange for Depositary Receipts
surrendered. At any time after two years from the date of termination, the
Depositary may sell the Preferred Stock then held by it at public or private
sales, at such place or places and upon such terms as it deems proper, and may
hold the net proceeds of any sale, together with any money and other property
then held by it, without liability for interest thereon, for the pro rata
benefit of the holders of Depositary Receipts which have not been surrendered.
Resignation and Removal of Depositary. The Depositary may resign at any
time by delivering notice of its election to do so to the Company, and the
Company may at any time remove the Depositary. Any resignation or removal will
take effect upon the appointment of a successor Depositary and its acceptance of
such appointment. The successor Depositary must be appointed within 45 days
after delivery of the notice of resignation or removal and must be a bank or
trust company, or an affiliate of a bank or trust company, having its principal
office in the United States and having a combined capital and surplus of at
least $50,000,000.
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Charges of Depositary. The Company will pay charges of the Depositary in
connection with the initial deposit of the Preferred Stock and issuance of
Depositary Receipts, all withdrawals of shares of Preferred Stock by owners of
Depositary Shares, any redemption of the deposited Preferred Stock and the
distribution of information to holders of the Depositary Receipts. Holders of
Depositary Receipts will pay other transfer and other taxes and governmental
charges and any other charges that are expressly provided in the Deposit
Agreement to be at their expense.
Miscellaneous. The Depositary will forward to the holders of Depositary
Receipts all reports and communications from the Company that are delivered to
the Depositary and that the Company is required or otherwise determines to
furnish to the holders of the corresponding series of Preferred Stock.
Neither the Depositary nor the Company will be liable if it is prevented or
delayed by law or any circumstance beyond its control in performing its
obligations under the Deposit Agreement. The obligations of the Depositary under
the Deposit Agreement are limited to performing its duties thereunder without
negligence or bad faith. The obligations of the Company under the Deposit
Agreement are limited to performing its duties thereunder in good faith. Neither
the Company nor the Depositary will be required to prosecute or defend any legal
proceeding regarding any Depositary Shares or Preferred Stock unless
satisfactory indemnity is furnished. The Company and the Depositary may rely
upon the advice of counsel or accountants, or upon information provided by
persons presenting Preferred Stock for deposit, holders of Depositary Receipts
or other persons believed to be competent and on documents believed to be
genuine.
COMMON STOCK; CLASS B STOCK
General. Holders of shares of Common Stock are entitled to one vote per
share, and holders of shares of Class B Stock have no voting rights except as
required by applicable law. Holders of shares of Common Stock do not have the
right to cumulate votes in the election of directors. A special meeting of
stockholders may be called by the Board of Directors of the Company and must be
called upon the written request of the holders of not less than 50% of the
Company's stock then outstanding and entitled to vote. Any action required or
permitted to be taken at any annual or special meeting of stockholders may be
taken without prior notice by written consent only if the consent is signed by
each stockholder entitled to vote on the matter.
Holders of Class B Stock may convert their shares into shares of Common
Stock at any time, unless the conversion would cause a holder, together with the
holder's affiliates, to own, control or vote more shares of the Company's stock
than permitted by applicable law. Stockholders of the Company do not have
preemptive rights to subscribe for shares of any class of the Company's capital
stock.
Dividends. Holders of shares of Common Stock and Class B Stock are entitled
to participate equally on a per-share basis in any dividends that the Board of
Directors of the Company may declare from time to time out of funds of the
Company legally available for the payment of dividends. However, the Company has
neither declared nor paid any cash dividends on its Common Stock or Class B
Stock since 1982. Certain of the Company's debt instruments (see "Description of
Debt Securities -- General -- Other Indebtedness") restrict, and the terms of
any series of Debt Securities or Preferred Stock issued pursuant to this
Prospectus may restrict, the Company's ability to pay dividends. Under the terms
of existing instruments, the Company may pay dividends to the extent that
cumulative dividends plus certain other payments since March 31, 1989, do not
exceed 50% of the Company's cumulative net income since March 31, 1989, plus the
proceeds of any offering of equity securities of the Company that are not
redeemable at the option of the holder of the securities. As of September 30,
1996, retained earnings available for dividends totaled approximately $178.0
million. The Company does not intend to pay any cash dividends on its Common
Stock or Class B Stock for the foreseeable future.
Transfer Agent and Registrar. The transfer agent and registrar for the
Common Stock is First Chicago Trust Company of New York.
The foregoing descriptions of the Preferred Stock and Common Stock are
summaries, and reference is herein made to the detailed provisions of the
Certificate of Incorporation (including, without limitation, the Certificate of
Designations relating to any series of Preferred Stock, filed hereafter and
incorporated by
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reference herein) and the Company's Amended and Restated By-Laws (the
"By-Laws"), copies of which are filed as exhibits to the Registration Statement.
CERTAIN CERTIFICATE OF INCORPORATION AND BY-LAW PROVISIONS
Under Delaware law, a corporation may include provisions in its certificate
of incorporation which relieve its directors of monetary liability for breach of
their fiduciary duty, except under certain circumstances which include a breach
of a director's duty of loyalty, acts or omissions not in good faith or
involving intentional misconduct and a knowing violation of law, or any
transaction from which the director derived an improper personal benefit. The
Certificate of Incorporation provides that the Company's directors are not
liable to the Company or its stockholders for monetary damages for breach of
their fiduciary duties, subject to the exceptions specified by Delaware law.
Delaware law also provides that, when an officer, director, employee or
agent of a corporation is a party to, or its threatened to be made a party to,
any action, the corporation may indemnify such persons against expenses
(including attorneys' fees) and judgments, fines and amounts paid in settlement,
if that person acted in good faith and reasonably believed his or her actions
were in, or not opposed to, the best interests of the corporation, and were not
unlawful. Delaware law also provides that a person to be indemnified has the
right to be advanced any expenses incurred in his defense against any action
prior to the final disposition thereof and upon such terms as the board of
directors may determine. The Certificate of Incorporation provides these rights
to the Company's officers, directors, employees and agents. Certain directors
and officers of the Company are also parties to employment agreements which
provide for these and other indemnification rights in accordance with Delaware
law.
Under Delaware law, the power to adopt, amend and repeal by-laws is
conferred solely on the stockholders unless the corporation's certificate of
incorporation also confers this power upon its board of directors. Under the
Certificate of Incorporation the Board of Directors of the Company has been
granted this power. The Certificate of Incorporation and By-laws also provide
that the number of directors shall be fixed by resolution of the Board of
Directors of the Company from time to time, but shall not be less than five nor
more than eleven. As of the date of this Prospectus, the number of directors is
fixed at eight. These provisions, in addition to the staggered Board of
Directors discussed below and the existence of authorized but unissued capital
stock, may have the effect, either alone or in combination with each other, of
discouraging or making more difficult an acquisition of the Company deemed
undesirable by the Board of Directors of the Company.
The Certificate of Incorporation provides that the board of directors of
the Company is divided into three classes of directors. Each class of directors
serves a staggered three-year term. The classified board may make it more
difficult for any stockholder who is attempting to acquire the Company,
including a stockholder holding a majority of shares, to succeed. Such a
stockholder will be unable to force immediate changes in the composition of a
majority of the Board of Directors of the Company, since the terms of
approximately one-third of the incumbent directors would expire each year, and
at least two annual meetings would be required for stockholders to change a
majority of the Board of Directors.
DESCRIPTION OF WARRANTS
The Company may issue Warrants to purchase Debt Securities, Common Stock or
Preferred Stock (which may be represented by Depositary Shares). Warrants may be
issued independently or together with any other Securities and may be attached
to or separate from other Securities. Warrants will be issued under warrant
agreements (each, a "Warrant Agreement") to be entered into between the Company
and a warrant agent (the "Warrant Agent") specified in the applicable Prospectus
Supplement.
The following sets forth certain general terms and provisions of the
Warrants offered hereby. Copies of the forms of Warrant Agreements are filed as
exhibits to the Registration Statement of which this Prospectus is a part, and
the following summary is qualified in its entirety by reference to those
exhibits. Further terms of the Warrants and the applicable Warrant Agreement
will be set forth in the applicable Prospectus Supplement. If so indicated in
the applicable Prospectus Supplement, the terms of any Warrants may differ
-20-
<PAGE> 22
from the terms set forth below. The Warrants will be denominated in U.S. dollars
or in such foreign currency, currency unit or composite currency as may be
specified in the applicable Prospectus Supplement.
The applicable Prospectus Supplement will describe the terms of any series
of Warrants in respect of which this Prospectus is being delivered, including,
where applicable, the following: (1) the title of the Warrants; (2) the
aggregate number of the Warrants; (3) the price or prices for which the Warrants
will be issued; (4) the currency, currency unit or composite currency in which
the price for the Warrants will be payable; (5) the designation, number and
terms of the Debt Securities, Common Stock or Preferred Stock purchasable upon
exercise of the Warrants, and procedures pursuant to which such numbers may be
adjusted; (6) the designation and terms of the Debt Securities, Common Stock or
Preferred Stock, if any, with which the Warrants are issued and the number of
Warrants issued with each such Security; (7) the date, if any, on and after
which the Warrants and the related underlying Security will be separately
transferable; (8) the exercise price or prices at which the Debt Securities,
Common Stock or Preferred Stock purchasable upon exercise of the Warrants may be
purchased, or provisions for determining the exercise price or prices,
procedures pursuant to which the exercise price or prices may be adjusted, and
(if not U.S. dollars) the foreign currency, currency unit or composite currency
in which the exercise price or prices are denominated; (9) the date on which the
right to exercise the Warrants will commence and the date on which that right
will expire; (10) whether the Warrants will be issued in bearer form; (11) the
minimum or maximum amount of Warrants that may be exercised at any one time;
(12) information with respect to book-entry procedures, if any; (13) a
discussion of certain United States federal income tax considerations; and (14)
any other terms of the Warrants, including terms, procedures and limitations
relating to the transferability, exchange and exercise of the Warrants.
Prior to the exercise of their Warrants, holders of Warrants will not have
any of the rights of holders of the Securities purchasable upon exercise, and
will not be entitled to (1) receive payments of principal of (or premium, if
any) or interest, if any, on any Debt Securities purchasable upon exercise, (2)
receive dividend payments, if any, with respect to any underlying Securities or
(3) exercise the voting rights of any Common Stock or Preferred Stock
purchasable upon exercise.
EXERCISE OF WARRANTS
Unless otherwise indicated in the applicable Prospectus Supplement relating
thereto, the Warrants will be issued in registered form. Each Warrant will
entitle its holder to purchase for cash the principal amount or number of
securities of the Company at the exercise price set forth in, or determinable
from, the applicable Prospectus Supplement relating to the Warrants offered
thereby. Warrants may be exercised as set forth in the applicable Prospectus
Supplement relating to the Warrants offered thereby at any time up to the close
of business on the expiration date set forth in the Prospectus Supplement. After
the close of business on the expiration date (or any later expiration date, as
extended by the Company), unexercised Warrants will become void.
Upon receipt of payment and of the certificate evidencing a Warrant (the
"Warrant Certificate"), properly completed and duly executed, at the corporate
trust office of the Warrant Agent or any other office indicated in the
applicable Prospectus Supplement, the Company will, as soon as practicable,
forward the Securities purchasable upon such exercise. If less than all of the
Warrants represented by a surrendered Warrant Certificate are exercised, a new
Warrant Certificate will be issued for the remaining Warrants.
MODIFICATIONS
The Warrant Agreements and the terms of the Warrants may be amended by the
Company and the Warrant Agent, without the consent of the holders of Warrants,
for the purpose of curing any ambiguity, or of curing, correcting or
supplementing any defective or inconsistent provision contained therein, or in
any other manner which the Company may deem necessary or desirable and which
will not materially and adversely affect the interests of holders of outstanding
Warrants.
The Company and the Warrant Agent also may modify or amend certain other
terms of the Warrant Agreements and the Warrants with the consent of the holders
of not less than a majority in number of the
-21-
<PAGE> 23
then-outstanding unexercised Warrants affected. However, no such modification or
amendment may be made without the consent of the affected holders if the
amendment would (1) shorten the period of time during which the Warrants may be
exercised; (2) otherwise materially and adversely affect the exercise rights of
the holders of the Warrants; or (3) reduce the number of outstanding Warrants.
MERGER, CONSOLIDATION OR SALE OF ASSETS
If at any time there occurs a merger of, consolidation of, or sale of
substantially all of the assets of, the Company, as a result of which securities
underlying Warrants are converted into the right to receive stock, securities or
other property, then each outstanding Warrant will thereafter only be
exercisable for the kind and amount of stock, securities or other property
receivable upon the consummation of that transaction by a holder of the number
of securities underlying the Warrant.
ENFORCEABILITY OF RIGHTS BY HOLDERS
The Warrant Agent will act solely as an agent of the Company in connection
with the issuance and exercise of any Warrants. The Warrant Agent will have no
duty or responsibility in case of any default by the Company in the performance
of its obligations under the Warrant Agreements or the Warrant Certificates.
Each holder of Warrants may, without the consent of the Warrant Agent, enforce
by appropriate legal action, on its own behalf, its right to exercise its
Warrants.
SELLING STOCKHOLDERS
In addition to covering the offering of Securities by the Company, this
Prospectus covers the offering for resale of an unspecified number of shares of
Common Stock, not to exceed $350,000,000 in aggregate maximum offering price, by
Selling Stockholders who acquire their shares in connection with future
acquisitions by the Company. The applicable Prospectus Supplement will set
forth, with respect to each Selling Stockholder, (1) the name of the Selling
Stockholder, (2) the nature of any position, office or other materials
relationship which the Selling Stockholder will have had within the prior three
years with the Company or any of its predecessors or affiliates, (3) the number
of shares of Common Stock owned by the Selling Stockholder prior to the
offering, (4) the amount of Common Stock to be offered for the Selling
Stockholder's account and (5) the amount and (if one percent or more) the
percentage of the Common Stock to be owned by the Selling Stockholder after
completion of the offering.
PLAN OF DISTRIBUTION
DISTRIBUTION BY THE COMPANY
The Company may sell Securities to one or more underwriters for public
offering and sale by them, and also may sell Securities directly to investors or
to other purchasers or through dealers or agents. Any such underwriter, dealer
or agent involved in the offer and sale of the Securities will be named in the
applicable Prospectus Supplement.
The distribution of the Securities may be effected from time to time in one
or more transactions at a fixed price or prices, which may be changed, or at
market prices prevailing at the time of sale, at prices related to such
prevailing market prices or at negotiated prices. Sales of Common Stock offered
hereby may be effected from time to time in one or more transactions on the
American Stock Exchange or in negotiated transactions or a combination of such
methods of sale.
In connection with distributions of Common Stock or otherwise, the Company
may enter into hedging transactions with broker-dealers in connection with which
such broker-dealers may sell Common Stock registered hereunder in the course of
hedging through short sales the positions they assume with the Company.
In connection with the sale of Securities, underwriters, dealers or agents
may receive compensation from the Company or from purchasers of Securities for
whom they may act as agents in the form of discounts,
-22-
<PAGE> 24
concessions or commissions. Underwriters may sell Securities to or through
dealers, and the dealers may receive compensation in the form of discounts,
concessions or commissions from the underwriters and/or commissions from the
purchasers for whom they may act as agents. Underwriters, dealers and agents
that participate in the distribution of Securities may be deemed to be
underwriters, and any discounts or commissions received by them from the Company
(along with any profit on the resale of Securities by them) may be deemed to be
underwriting discounts and commissions under the Securities Act. Any such
underwriter, dealer or agent will be identified, and any such compensation
received from the Company will be described, in the applicable Prospectus
Supplement. Unless otherwise indicated in the applicable Prospectus Supplement,
any agent will be acting on a best efforts basis and any dealer will purchase
Securities as a principal, and may then resell such Securities at varying prices
to be determined by the dealer.
Under agreements which may be entered into by the Company, underwriters,
dealers and agents who participate in the distribution of Securities may be
entitled to indemnification by the Company against (and contribution toward)
certain civil liabilities, including liabilities under the Securities Act, and
to reimbursement by the Company for certain expenses.
If so indicated in the applicable Prospectus Supplement, the Company will
authorize agents and underwriters or dealers to solicit offers by certain
purchasers to purchase offered Securities from the Company, at the public
offering price set forth in the Prospectus Supplement, pursuant to delayed
delivery contracts providing for payment and delivery on a specified date in the
future. These contracts will be subject only to those conditions set forth in
the Prospectus Supplement, and the Prospectus Supplement will set forth the
commission payable for solicitation of the offers.
Certain underwriters, dealers or agents and their associates may engage in
transactions with and perform services for the Company in the ordinary course of
business.
The Securities may or may not be listed on a national securities exchange
or a foreign securities exchange (other than the Common Stock, which is listed
on the American Stock Exchange). Any Common Stock sold pursuant to a Prospectus
Supplement will be listed on the American Stock Exchange, subject to official
notice of issuance. Any underwriters to whom Securities are sold by the Company
for public offering and sale may make a market in those Securities, but the
underwriters will not be obligated to do so and may discontinue any market
making activities at any time without notice. No assurances can be given that
there will be an active trading market for the Securities.
DISTRIBUTION BY SELLING STOCKHOLDERS
Distribution of any shares to be offered by one or more of the Selling
Stockholders may be effected from time to time in one or more transactions
(which may involve block transactions) (1) on the American Stock Exchange, (2)
in the over-the-counter market, (3) in transactions otherwise than on the
American Stock Exchange or in the over-the-counter market or (4) in a
combination of any of these transactions. The transactions may be effected by
the Selling Stockholders at market prices prevailing at the time of sale, at
prices related to the prevailing market prices, at negotiated prices or at fixed
prices. The Selling Stockholders may from time to time offer their shares
through underwriters, brokers, dealers or agents, who may receive compensation
in the form of underwriting discounts, commissions or concessions from the
Selling Stockholders and/or the purchasers of the shares for whom they act as
agent. From time to time the Selling Stockholders may engage in short sales,
short sales against the box, puts and calls and other transactions in securities
of the Company, or derivatives thereof, and may sell and deliver their shares in
connection therewith. In addition, the Selling Stockholders may from time to
time sell their shares in transactions permitted by Rule 144 under the
Securities Act.
As of the date of this Prospectus, no underwriter, broker, dealer or agent
has been engaged by the Company in connection with the distribution of shares
pursuant to this Prospectus by the Selling Stockholders. To the extent required,
the number of shares to be sold, the purchase price, the name of any applicable
agent, broker, dealer or underwriter and any applicable commissions with respect
to a particular offer will be set forth in the applicable Prospectus Supplement.
The aggregate net proceeds to the Selling Stockholders
-23-
<PAGE> 25
from the sale of their shares offered hereby will be the sale price of those
shares, less any commissions, if any, and other expenses of issuance and
distribution not borne by the Company.
The Selling Stockholders and any brokers, dealers, agents or underwriters
that participate with the Selling Stockholders in the distribution of shares may
be deemed to be "underwriters" within the meaning of the Securities Act, in
which event any discounts, concessions and commissions received by such brokers,
dealers, agents or underwriters and any profit on the resale of the shares
purchased by them may be deemed to be underwriting discounts and commissions
under the Securities Act.
The applicable Prospectus Supplement will set forth the extent to which the
Company will have agreed to bear fees and expenses of the Selling Stockholders
in connection with the registration of the shares being offered hereby by them.
The Company may, if so indicated in the applicable Prospectus Supplement, agree
to indemnify Selling Stockholders against certain civil liabilities, including
liabilities under the Securities Act.
VALIDITY OF SECURITIES
The legal validity of the Securities offered pursuant to this Prospectus
will be passed upon for the Company by Baker & McKenzie, New York, New York, and
for any underwriters or agents by counsel to be named in the appropriate
Prospectus Supplement. Anthony G. Petrello, the President, Chief Operating
Officer and a director of the Company, was a partner of and is currently of
counsel to Baker & McKenzie.
EXPERTS
The consolidated financial statements incorporated in this Prospectus by
reference to the 1996 Form 10-K have been audited by Coopers & Lybrand L.L.P.,
independent accountants, as stated in their report, which is incorporated herein
by reference, and have been so incorporated in reliance upon the report of such
firm given upon their authority as experts in accounting and auditing.
-24-
<PAGE> 26
PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
ITEM 14. EXPENSES OF ISSUANCE AND DISTRIBUTION.
The following sets forth the best estimate of the Company as to its
anticipated expenses and costs (other than underwriting discounts and
commissions) expected to be incurred in connection with the issuance and
distribution of the securities registered hereby (except for the Commission
registration fee, all amounts are estimates):
<TABLE>
<CAPTION>
<S> <C>
Commission registration fee................................. $ 82,575.76
American Stock Exchange listing fee......................... 17,500
Printing and engraving expenses............................. 90,000
Legal fees and expenses..................................... 175,00
Accounting fees and expenses................................ 70,000
Blue sky fees and expenses.................................. 10,000
Trustee's fees and expenses................................. 30,000
Miscellaneous............................................... 24,924.24
-----------
Total............................................. $500,000.00
</TABLE>
ITEM 15. INDEMNIFICATION OF DIRECTORS AND OFFICERS.
Section 145 of the Delaware General Corporation Law permits the
indemnification of directors, employees and agents of Delaware corporations.
Consistent therewith, Article Seventh of the Certificate of Incorporation
states as follows:
(a) Each person who was or is made a party or is threatened to be made
a party to or is involved in any action, suit or proceeding, whether civil,
criminal, administrative or investigative (hereinafter collectively
referred to as a "proceeding"), by reason of the fact that he or she, or a
person of whom he or she is the legal representative, is or was a director
or officer of the Corporation or is or was serving at the request of the
Corporation as a director, officer, employee or agent of another
corporation or of a partnership, joint venture, trust or other enterprise,
including service with respect to employee benefit plans, whether the basis
of such proceeding is alleged action in an official capacity as a director,
officer, employee or agent or in any other capacity while serving as a
director, officer, employee or agent, shall be indemnified and held
harmless by the Corporation to the fullest extent authorized by the
Delaware General Corporation Law, as the same exists or may hereafter be
amended (but, in the case of any such amendment, only to the extent that
such amendment permits the Corporation to provide broader indemnification
rights than said law permitted the Corporation to provide prior to such
amendment), against all expense, liability and loss (including attorneys'
fees, judgments, fines, ERISA excise taxes or penalties and amounts paid or
to be paid in settlement) reasonably incurred or suffered by such person in
connection therewith and such indemnification shall continue as to a person
who has ceased to be a director, officer, employee or agent and shall inure
to the benefit of his or her heirs, executors and administrators.
(b) The right to indemnification conferred in this Section shall
include the right to be paid by the Corporation the expenses incurred in
defending any such proceeding in advance of its final disposition;
provided, however, that if the Delaware General Corporation Law requires,
the payment of such expenses incurred by a director or officer in advance
of the final disposition of a proceeding, shall be made only upon delivery
to the Corporation of an undertaking, by or on behalf of such director or
officer, to repay all amounts so advanced if it shall ultimately be
determined that such director or officer is not entitled to be indemnified
under this Section or otherwise. The Corporation may, by action of its
Board of Directors, provide information to employees and agents of the
Corporation with the same scope and effect as the foregoing indemnification
of directors and officers.
II-1
<PAGE> 27
(c) The right to indemnification and the payment of expenses incurred
in defending a proceeding in advance of its final disposition conferred in
this Section shall not be exclusive of any other right which any person may
have or hereafter acquire under any statute, provision of the Certificate
of Incorporation, By-laws, agreement, vote of stockholders or disinterested
directors or otherwise.
(d) The Corporation may maintain insurance, at its expense, to protect
itself and any director, officer, employee or agent of the Corporation or
another corporation, partnership, joint venture, trust or other enterprise
against any such expense, liability or loss, whether or not the Corporation
would have the power to indemnify such person against such expense,
liability or loss under the Delaware General Corporation Law.
(e) Any repeal or modification of this Section directly or indirectly,
such as by adoption of an inconsistent provision of this Certificate of
Incorporation, shall not apply to or have any effect on the rights of any
officer and director to indemnification and advancement of expenses with
respect to any acts or omissions occurring prior to such repeal or
modification.
(f) If this Section or any portion hereof shall be invalidated on any
ground by any court of competent jurisdiction, then the Corporation shall
nevertheless indemnify each director and officer of the Corporation as to
expense, liability and loss (including attorneys' fees, judgments, fines,
ERISA excise taxes or penalties and amounts paid or to be paid in
settlement) with respect to any proceeding to the full extent permitted by
any applicable portion of this Section that shall not have been invalidated
and to the full extent permitted by applicable law.
The Company has entered into agreements with each of its directors and
officers indemnifying each of them against expenses, settlements, judgments and
fines in connection with any threatened, pending or completed action, suit,
arbitration or proceeding where the individual's involvement is by reason of the
fact that he is or was a director or officer or served at the Company's request
as a director or officer of another organization, except that indemnification is
not provided against judgments or fines in a derivative suit unless permitted by
Delaware law.
The form(s) of proposed Underwriting Agreement(s) to be filed as (an)
exhibit(s) hereto or incorporated by reference herein may include provisions
relating to indemnification and contribution for the benefit of the underwriters
for any offering made hereby and may also contain provisions relating to the
indemnification of directors and officers of the Company against certain
liabilities, including liabilities under the Securities Act.
ITEM 16. EXHIBITS.
<TABLE>
<CAPTION>
EXHIBIT
NUMBER DESCRIPTION
------- -----------
<C> <S>
*1.1 -- Form of Underwriting Agreement.
*4.1 -- Form of Certificate of Designations of Preferred Stock.
4.2 -- Form of Senior Debt Securities Indenture.
4.3 -- Form of Subordinated Debt Securities Indenture.
4.4 -- Form of Stock Warrant Agreement, together with form of
Warrant.
4.5 -- Form of Debt Warrant Agreement, together with form of
Warrant.
4.6 -- Form of Warrant Agreement for warrants not attached to
debt or equity securities.
*4.7 -- Form of Senior Debt Securities.
*4.8 -- Form of Subordinated Debt Securities.
4.9 -- Form of Deposit Agreement, together with form of
Depositary Receipt.
*5.1 -- Opinion of Baker & McKenzie.
12.1 -- Statement regarding computation of ratios.
</TABLE>
II-2
<PAGE> 28
<TABLE>
<CAPTION>
EXHIBIT
NUMBER DESCRIPTION
------- -----------
<C> <S>
23.1 -- Consent of Baker & McKenzie (included in Exhibit 5.1).
23.2 -- Consent of Coopers & Lybrand L.L.P.
24.1 -- Powers of Attorney (included on signature page).
*25.1 -- Statement of eligibility of trustee under the Senior Debt
Securities on Form T-1.
*25.2 -- Statement of eligibility of trustee under the
Subordinated Debt Securities on Form T-1.
</TABLE>
- ---------------
* To be filed by amendment or to be incorporated by reference in connection with
the offering of Securities.
ITEM 17. UNDERTAKINGS.
(a) Insofar as indemnification for liabilities arising under the Securities
Act may be permitted to directors, officers and controlling persons of
the registrant pursuant to the foregoing provisions, or otherwise, the
registrant has been advised that in the opinion of the Commission such
indemnification is against public policy as expressed in the Securities
Act and is, therefore, unenforceable. In the event that a claim for
indemnification against such liabilities (other than the payment by the
registrant of expenses incurred or paid by a director, officer or
controlling person of the registrant in the successful defense of any
action, suit or proceedings) is asserted by such director, officer or
controlling person in connection with the securities being registered,
the registrant will, unless in the opinion of its counsel the matter
has been settled by controlling precedent, submit to a court of
appropriate jurisdiction the question whether indemnification by it is
against public policy as expressed in the Securities Act and will be
governed by the final adjudication of such issue.
(b) The undersigned registrant hereby undertakes that, for purposes of
determining any liability under the Securities Act, each filing of the
registrant's annual report pursuant to Section 13(a) or 15(d) of the
Exchange Act (and, where applicable, each filing of an employee benefit
plan's annual report pursuant to Section 15(d) of the Exchange Act)
that is incorporated by reference in the registration statement shall
be deemed to be a new registration statement relating to the securities
offered therein, and the offering of such securities at that time shall
be deemed to be the initial bona fide offering thereof.
(c) The undersigned registrant hereby undertakes that:
(1) For purposes of determining any liability under the Securities Act,
the information omitted from the form of prospectus filed as part of
this Registration Statement in reliance upon Rule 430A and contained
in a form of prospectus filed by the registrant pursuant to Rule
424(b)(1) or (4), or 497(h) under the Securities Act shall be deemed
to be part of this Registration Statement as of the time it was
declared effective.
(2) For the purposes of determining any liability under the Securities
Act, each post-effective amendment that contains a form of
prospectus shall be determined to be a new registration statement
relating to the securities offered therein, and the offering of such
securities at that time shall be deemed to be the initial bona fide
offering thereof.
(d) The undersigned hereby undertakes:
(1) To file, during any period in which offers or sales are being made,
a post-effective amendment to this Registration Statement:
(i) to include any prospectus required by section 10(a)(3) of the
Securities Act;
(ii) to reflect in the Prospectus any facts of events arising after
the effective date of the Registration Statement (or the most
recent post-effective amendment thereof) which, individually or
in the aggregate, represent a fundamental change in the
information set
II-3
<PAGE> 29
forth in the Registration Statement. Notwithstanding the
foregoing, any increase or decrease in volume of securities
offered (if the total dollar value of securities offered would
not exceed that which was registered) and any deviation from
the low or high end of the estimated maximum offering range may
be reflected in the form of prospectus filed with the
Commission pursuant to Rule 424(b) if, in the aggregate, the
charges in volume and price represent no more than a 20% change
in the maximum aggregate offering price set forth in the
"Calculation of Registration Fee" table in the effective
Registration Statement; and
(iii) to include any material information with respect to the plan of
distribution not previously disclosed in the Registration
Statement or any material change to such information in the
Registration Statement.
Provided, however, that paragraphs (1) (i) and (1) (ii) do not apply
if the information required to be included in a post-effective
amendment by those paragraphs is contained in periodic reports filed
by the Registrant pursuant to section 13 or section 15(d) of the
Exchange Act that are incorporated by reference in the Registration
Statement.
(2) That, for the purpose of determining any liability under the
Securities Act of 1933, each such post-effective amendment shall be
deemed to be a new registration statement relating to the securities
offered therein, and the offering of such securities at that time
shall be deemed to be the initial bona fide offering thereof.
(3) To remove from registration by means of a post-effective amendment
any of the securities being registered which remain unsold at the
termination of the offering.
(e) The undersigned registrant hereby undertakes to file an application for
the purpose of determining the eligibility of the trustee to act under
subsection (a) of Section 310 of the Trust Indenture Act in accordance
with the rules and regulations prescribed by the Commission under
Section 305(b)(2) of the Trust Indenture Act.
II-4
<PAGE> 30
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the Registrant
has duly caused this Registration Statement to be signed on its behalf by the
undersigned, thereunto duly authorized, in the City of New York, State of New
York, on the 14th day of April, 1997.
NABORS INDUSTRIES, INC.
By: /s/ ANTHONY G. PETRELLO
----------------------------------
Anthony G. Petrello,
President and Chief Operating
Officer
In accordance with the requirements of the Securities Act of 1933, this
Registration Statement has been signed by the following persons in the
capacities and on the dates stated. Each person whose signature to this
Registration Statement appears below hereby appoints Anthony G. Petrello or
Bruce P. Koch as his attorney-in-fact to sign on his behalf, individually and in
the capacities stated below, and to file (i) any and all amendments and
post-effective amendments to this Registration Statement and (ii) any
registration statement relating to the same offering pursuant to Rule 462(b)
under the Securities Act of 1933, which amendment or amendments or registration
statement may make such changes and additions as such attorney-in-fact may deem
necessary or appropriate.
<TABLE>
<CAPTION>
SIGNATURE TITLE DATE
--------- ----- ----
<C> <S> <C>
/s/ EUGENE M. ISENBERG Chairman, Chief Executive April 14, 1997
- ----------------------------------------------------- Officer and Director
Eugene M. Isenberg (principal executive officer)
/s/ ANTHONY G. PETRELLO President, Chief Operating April 14, 1997
- ----------------------------------------------------- Officer and Director
Anthony G. Petrello
/s/ RICHARD A. STRATTON Vice Chairman and Director April 14, 1997
- -----------------------------------------------------
Richard A. Stratton
/s/ BRUCE P. KOCH Vice President of Finance April 14, 1997
- ----------------------------------------------------- (principal financial and
Bruce P. Koch accounting officer)
/s/ GARY T. HURFORD Director April 14, 1997
- -----------------------------------------------------
Gary T. Hurford
/s/ HANS W. SCHMIDT Director April 14, 1997
- -----------------------------------------------------
Hans W. Schmidt
/s/ MYRON M. SHEINFELD Director April 14, 1997
- -----------------------------------------------------
Myron M. Sheinfeld
/s/ JACK WEXLER Director April 14, 1997
- -----------------------------------------------------
Jack Wexler
/s/ MARTIN J. WHITMAN Director April 14, 1997
- -----------------------------------------------------
Martin J. Whitman
</TABLE>
<PAGE> 31
EXHIBIT INDEX
<TABLE>
<CAPTION>
EXHIBIT
NUMBER DESCRIPTION
------- -----------
<S> <C>
*1.1 -- Form of Underwriting Agreement.
*4.1 -- Form of Certificate of Designations of Preferred Stock.
4.2 -- Form of Senior Debt Securities Indenture.
4.3 -- Form of Subordinated Debt Securities Indenture.
4.4 -- Form of Stock Warrant Agreement, together with form of
Warrant.
4.5 -- Form of Debt Warrant Agreement, together with form of
Warrant.
4.6 -- Form of Warrant Agreement for warrants not attached to
debt or equity securities.
*4.7 -- Form of Senior Debt Securities.
*4.8 -- Form of Subordinated Debt Securities.
4.9 -- Form of Deposit Agreement, together with form of
Depositary Receipt.
*5.1 -- Opinion of Baker & McKenzie.
12.1 -- Statement regarding computation of ratios.
23.1 -- Consent of Baker & McKenzie (included in Exhibit 5.1).
23.2 -- Consent of Coopers & Lybrand L.L.P.
24.1 -- Powers of Attorney (included on signature page).
*25.1 -- Statement of eligibility of trustee under the Senior Debt
Securities on Form T-1.
*25.2 -- Statement of eligibility of trustee under the
Subordinated Debt Securities on Form T-1.
</TABLE>
- ---------------
* To be filed by amendment or to be incorporated by reference in connection with
the offering of Securities.
<PAGE> 1
Exhibit 4.2
- --------------------------------------------------------------------------------
NABORS INDUSTRIES, INC.
TO
---------------------------,
TRUSTEE
-------------------
INDENTURE
Dated as of
-----------
-------------------
Senior Debt Securities
- --------------------------------------------------------------------------------
<PAGE> 2
NABORS INDUSTRIES, INC.
Reconciliation and tie between certain Sections
of this Indenture, dated as of ______________ and
Sections 310 through 318, inclusive, of
the Trust Indenture Act of 1939:
<TABLE>
<CAPTION>
Trust Indenture
Act Section Indenture Section
- ----------- -----------------
<C> <C> <C>
310 (a)(1) ..............................................................................................609
(a)(2) ..............................................................................................609
(a)(3) ...................................................................................Not Applicable
(a)(4) ...................................................................................Not Applicable
(b) ..............................................................................................608
............................................................................................. 610
311 (a) ............................................................................................. 613
(b) ............................................................................................. 613
312 (a) ............................................................................................. 701
...........................................................................................702(a)
(b) ...........................................................................................702(b)
(c) .......................................................................................... 702(c)
313 (a) ...........................................................................................703(a)
(b) ...........................................................................................703(a)
(c) .......................................................................................... 703(a)
(d) ...........................................................................................703(b)
314 (a) ............................................................................................. 704
(a)(4) ............................................................................................. 101
............................................................................................ 1004
(b) .................................................................................. Not Applicable
(c)(1) ............................................................................................. 102
(c)(2) ............................................................................................. 102
(c)(3) .................................................................................. Not Applicable
(d) .................................................................................. Not Applicable
(e) ............................................................................................. 102
315 (a) ............................................................................................. 601
(b) ............................................................................................. 602
(C) ............................................................................................. 601
(d) ............................................................................................. 601
(e) ............................................................................................. 514
316 (a) ............................................................................................. 101
(a)(1)(A)............................................................................................ 502
............................................................................................. 512
(a)(1)(B) ............................................................................................513
(a)(2) .................................................................................. Not Applicable
(b) ..............................................................................................508
(c) .......................................................................................... 104(c)
</TABLE>
<PAGE> 3
<TABLE>
<C> <C> <C>
317 (a)(1) ............................................................................................. 503
(a)(2) ............................................................................................. 504
(b) ............................................................................................ 1003
318 (a) ............................................................................................. 107
</TABLE>
- ------------------
NOTE: This reconciliation and tie shall not, for any purpose, be deemed to be a
part of the Indenture.
- ii -
<PAGE> 4
TABLE OF CONTENTS
<TABLE>
<CAPTION>
Page
----
<S> <C> <C>
PARTIES ..........................................................................................................1
RECITALS OF THE COMPANY...........................................................................................1
ARTICLE ONE
Definitions and Other Provisions
of General Application
Section 101 Definitions.....................................................................................1
Act .......................................................................................2
Authenticating Agent............................................................................2
Board of Directors..............................................................................2
Board Resolution................................................................................2
Business Day....................................................................................2
Commission......................................................................................2
Common Stock....................................................................................2
Company .......................................................................................3
Company Request.................................................................................3
Corporate Trust Office..........................................................................3
corporation.....................................................................................3
Covenant Defeasance.............................................................................3
days .......................................................................................3
Defaulted Interest..............................................................................3
Defeasance......................................................................................3
Defeasible Series...............................................................................3
Depositary......................................................................................3
Event of Default................................................................................3
Exchange Act....................................................................................3
Floating or Adjustable Rate Provision...........................................................3
Floating or Adjustable Rate Security............................................................4
Global Security.................................................................................4
Holder .......................................................................................4
Indenture.......................................................................................4
interest .......................................................................................4
Interest Payment Date...........................................................................4
Maturity .......................................................................................4
Notice of Default...............................................................................4
Officers' Certificate...........................................................................4
Opinion of Counsel..............................................................................4
Original Issue Discount Security................................................................5
</TABLE>
- iii -
<PAGE> 5
<TABLE>
<S> <C> <C>
Outstanding.....................................................................................5
Paying Agent....................................................................................5
Person .......................................................................................6
PIK Securities..................................................................................6
Place of Payment................................................................................6
Predecessor Security............................................................................6
Principal Subsidiary............................................................................6
Redemption Date.................................................................................6
Redemption Price................................................................................6
Regular Record Date.............................................................................6
Responsible Officer.............................................................................6
Securities......................................................................................6
Security Register...............................................................................7
Special Record Date.............................................................................7
Stated Maturity.................................................................................7
Subordinated Indenture..........................................................................7
Subsidiary......................................................................................7
Trustee .......................................................................................7
Trust Indenture Act.............................................................................7
U.S. Government Obligations.....................................................................7
Vice President..................................................................................7
Section 102. Compliance Certificates and Opinions............................................................7
Section 103. Form of Documents Delivered to Trustee..........................................................8
Section 104. Acts of Holders; Record Dates...................................................................9
Section 105. Notices, Etc. to Trustee and Company...........................................................10
Section 106. Notice to Holders; Waiver......................................................................10
Section 107. Conflict with Trust Indenture Act..............................................................10
Section 108. Effect of Headings and Table of Contents.......................................................11
Section 109. Successors and Assigns.........................................................................11
Section 110. Separability Clause............................................................................11
Section 111. Benefits of Indenture..........................................................................11
Section 112. Governing Law..................................................................................11
Section 113. Legal Holidays.................................................................................11
Section 114. Personal Immunity from Liability for Incorporators, Stockholders, Etc..........................11
ARTICLE TWO
Security Forms
Section 201. Forms Generally................................................................................12
Section 202. Form of Face of Security.......................................................................12
Section 203. Form of Reverse of Security....................................................................14
Section 204. Form of Legend for Global Securities...........................................................19
Section 205. Form of Trustee's Certificate of Authentication................................................19
Section 206. Form of Conversion Notice......................................................................19
Section 207. Securities Issuable in Global Form.............................................................20
</TABLE>
- iv -
<PAGE> 6
<TABLE>
ARTICLE THREE
The Securities
<S> <C> <C>
Section 301. Amount Unlimited; Issuable in Series...........................................................21
Section 302. Denominations..................................................................................24
Section 303. Execution, Authentication, Delivery and Dating.................................................24
Section 304. Temporary Securities...........................................................................25
Section 305. Registration, Registration of Transfer and Exchange............................................26
Section 306. Mutilated, Destroyed, Lost and Stolen Securities...............................................27
Section 307. Payment of Interest; Interest Rights Preserved.................................................28
Section 308. Persons Deemed Owners..........................................................................29
Section 309. Cancellation...................................................................................30
Section 310. Computation of Interest........................................................................30
Section 311. Designation as Senior Debt.....................................................................30
ARTICLE FOUR
Satisfaction and Discharge
Section 401. Satisfaction and Discharge of Indenture........................................................31
Section 402. Application of Trust Fund......................................................................32
ARTICLE FIVE
Remedies
Section 501. Events of Default..............................................................................32
Section 502. Acceleration of Maturity; Rescission and Annulment.............................................34
Section 503. Collection of Indebtedness and Suits for Enforcement by Trustee................................35
Section 504. Trustee May File Proofs of Claim...............................................................36
Section 505. Trustee May Enforce Claims Without Possession of Securities....................................36
Section 506. Application of Money Collected.................................................................36
Section 507. Limitation on Suits............................................................................37
Section 508. Unconditional Right of Holders to Receive Principal, Premium and
Interest and to Convert........................................................................37
Section 509. Restoration of Rights and Remedies.............................................................38
Section 510. Rights and Remedies Cumulative.................................................................38
Section 511. Delay or Omission Not Waiver...................................................................38
Section 512. Control by Holders.............................................................................38
Section 513. Waiver of Past Defaults........................................................................38
Section 514. Undertaking for Costs..........................................................................39
ARTICLE SIX
The Trustee
Section 601. Certain Duties and Responsibilities............................................................39
</TABLE>
- v -
<PAGE> 7
<TABLE>
<S> <C> <C>
Section 602. Notice of Defaults.............................................................................40
Section 603. Certain Rights of Trustee......................................................................40
Section 604. Not Responsible for Recitals or Issuance of Securities.........................................41
Section 605. May Hold Securities............................................................................42
Section 606. Money Held in Trust............................................................................42
Section 607. Compensation and Reimbursement.................................................................42
Section 608. Disqualification; Conflicting Interests........................................................43
Section 609. Corporate Trustee Required; Eligibility........................................................43
Section 610. Resignation and Removal; Appointment of Successor..............................................43
Section 611. Acceptance of Appointment by Successor.........................................................44
Section 612. Merger, Conversion, Consolidation or Succession to Business....................................45
Section 613. Preferential Collection of Claims Against Company..............................................46
Section 614. Appointment of Authenticating Agent............................................................46
ARTICLE SEVEN
Holders' Lists and Reports by Trustee and Company
Section 701. Company to Furnish Trustee Names and Addresses of Holders......................................47
Section 702. Preservation of Information; Communications to Holders.........................................48
Section 703. Reports by Trustee.............................................................................48
Section 704. Reports by Company.............................................................................48
ARTICLE EIGHT
Consolidation, Merger, or Sale of Assets
Section 801. Company May Consolidate, Etc. Only on Certain Terms............................................48
Section 802. Successor Substituted..........................................................................49
ARTICLE NINE
Supplemental Indentures
Section 901. Supplemental Indentures Without Consent of Holders.............................................49
Section 902. Supplemental Indentures With Consent of Holders................................................51
Section 903. Execution of Supplemental Indentures...........................................................52
Section 904. Effect of Supplemental Indentures..............................................................52
Section 905. Revocation and Effect of Consents..............................................................52
Section 906. Conformity with Trust Indenture Act............................................................52
Section 907. Reference in Securities to Supplemental Indentures.............................................53
Section 908. Waiver of Compliance by Holders................................................................53
Section 909. Notice of Supplemental Indenture...............................................................53
ARTICLE TEN
Covenants
Section 1001. Payment of Principal, Premium and Interest.....................................................53
</TABLE>
- vi -
<PAGE> 8
<TABLE>
<S> <C> <C>
Section 1002. Maintenance of Office or Agency................................................................53
Section 1003. Money for Securities Payments to Be Held in Trust..............................................54
Section 1004. Statement by Officers as to Compliance.........................................................55
ARTICLE ELEVEN
Redemption of Securities
Section 1101. Applicability of Article.......................................................................55
Section 1102. Election to Redeem; Notice to Trustee..........................................................55
Section 1103. Selection by Trustee of Securities to Be Redeemed..............................................55
Section 1104. Notice of Redemption...........................................................................56
Section 1105. Deposit of Redemption Price....................................................................57
Section 1106. Securities Payable on Redemption Date..........................................................57
Section 1107. Securities Redeemed in Part....................................................................57
ARTICLE TWELVE
Conversion of Securities
Section 1201. Applicability of Article.......................................................................58
Section 1202. Exercise of Conversion Privilege...............................................................58
Section 1203. No Fractional Shares...........................................................................59
Section 1204. Adjustment of Conversion Price.................................................................59
Section 1205. Notice of Certain Corporate Actions............................................................60
Section 1206. Reservation of Shares of Common Stock..........................................................61
Section 1207. Payment of Certain Taxes Upon Conversion.......................................................61
Section 1208. Nonassessability...............................................................................61
Section 1209. Effect of Consolidation or Merger on Conversion Privilege......................................61
Section 1210. Duties of Trustee Regarding Conversion.........................................................62
Section 1211. Repayment of Certain Funds Upon Conversion.....................................................62
ARTICLE THIRTEEN
Defeasance and Covenant Defeasance
Section 1301. Company's Option to Effect Defeasance or Covenant Defeasance...................................63
Section 1302. Defeasance and Discharge.......................................................................63
Section 1303. Covenant Defeasance............................................................................63
Section 1304. Conditions to Defeasance or Covenant Defeasance................................................64
Section 1305. Deposited Money and U.S. Government Obligations to be Held
In Trust; Other Miscellaneous Provisions.......................................................65
Section 1306. Reinstatement..................................................................................66
ARTICLE FOURTEEN
Sinking Funds
Section 1401. Applicability of Article.......................................................................66
</TABLE>
- vii -
<PAGE> 9
<TABLE>
<S> <C> <C>
Section 1402. Satisfaction of Sinking Fund Payments with Securities..........................................66
Section 1403. Redemption of Securities for Sinking Fund......................................................67
ARTICLE FIFTEEN
REPAYMENT AT OPTION OF HOLDERS
Section 1501. Applicability of Article.......................................................................67
Section 1502. Repayment of Securities........................................................................67
Section 1503. Exercise of Option.............................................................................68
Section 1504. When Securities Presented for Repayment Become Due and Payable.................................68
Section 1505. Securities Repaid in Part......................................................................69
</TABLE>
NOTE: This table of contents shall not, for any purpose, be deemed
to be a part of the Indenture.
- viii -
<PAGE> 10
INDENTURE, dated as of _______________ between NABORS
INDUSTRIES, INC., a Delaware corporation (herein called the "Company"), having
its principal office at 515 West Greens Road, Suite 1200, Houston Texas 77067,
and _____________________, a_________________ duly organized and existing under
the laws of __________________, as Trustee (herein called the "Trustee").
RECITALS OF THE COMPANY
The Company has duly authorized the execution and delivery of
this Indenture to provide for the issuance from time to time of its debentures,
notes or other evidences of indebtedness (herein called the "Securities"), to
be issued in one or more series as provided in this Indenture.
This Indenture is subject to the provisions of the Trust
Indenture Act of 1939, as amended, that are required to be a part of 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 agreed, for the equal and
proportionate benefit of all Holders of the Securities or of series thereof, 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;
(2) all other terms used herein which are defined in the Trust
Indenture Act or the Securities Act of 1933, as amended, 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 generally accepted
accounting principles, and, except as otherwise herein expressly
provided, the term "generally accepted accounting principles" with
respect to any computation required or permitted hereunder shall mean
such accounting principles as are generally accepted at the date of
such computation;
- 1 -
<PAGE> 11
(4) the words "Article" and "Section" refer to an Article and
Section, respectively, of this Indenture; and
(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 unless context
otherwise requires.
"Act", when used with respect to any Holder, has the meaning
specified in Section 104.
"Authenticating Agent" means any Person authorized by the
Trustee pursuant to Section 614 to act on behalf of the Trustee to authenticate
Securities of one or more series.
"Board of Directors" means either (i) the board of directors
of the Company, the executive committee of such board of directors or any other
duly authorized committee of directors and/or officers appointed by such board
of directors or executive committee, or (ii) one or more duly authorized
officers of the Company to whom the board of directors of the Company or a
committee thereof has delegated the authority to act with respect to the
matters contemplated by this Indenture.
"Board Resolution" means (i) a copy of a resolution certified
by the Corporate Secretary or an Assistant Corporate Secretary of the Company
to have been duly adopted by the board of directors of the Company or a
committee thereof and to be in full force and effect on the date of such
certification or (ii) a certificate signed by the duly authorized officer or
officers of the Company to whom the board of directors of the Company or a duly
authorized committee thereof has delegated its authority (as described in the
definition of Board of Directors), and in each case, delivered to the Trustee.
"Business Day", when used with respect to any Place of
Payment, means each Monday, Tuesday, Wednesday, Thursday and Friday which is
not a day on which banking institutions in that Place of Payment are authorized
or obligated by law or executive order to close.
"Commission" means the Securities and Exchange Commission, as
from time to time constituted, created under the Exchange Act, or, if at any
time after the execution of this instrument such Commission is not existing and
performing the duties now assigned to it under the Trust Indenture Act, then
the body performing such duties at such time.
"Common Stock" means, with respect to the Company, its common
stock, par value $.10 per share, and with respect to any Principal Subsidiary,
stock of any class, however designated, except stock which is non-participating
beyond fixed dividend and liquidation preferences and the holders of which have
either no voting rights or limited voting rights entitling them, only in the
case of certain contingencies, to elect less than a majority of the directors
(or persons performing similar functions) of such Principal Subsidiary, and
shall include securities of any class, however designated, which are
convertible into such Common Stock.
- 2 -
<PAGE> 12
"Company" means the Person named as the "Company" in the
first paragraph of this instrument until a successor Person shall have become
such pursuant to the applicable provisions of this Indenture, and thereafter
"Company" shall mean such successor Person.
"Company Request" or "Company Order" means a written request
or order signed in the name of the Company by (i) any two of the following
individuals: the Chairman, a Vice Chairman, the President or a Vice President,
or (ii) by one of the foregoing individuals and by any other Vice President,
the Treasurer, an Assistant Treasurer, the Controller, an Assistant Controller,
the Corporate Secretary or an Assistant Corporate Secretary or any other
individual authorized by the Board of Directors for such purpose (as set forth
in a Board Resolution), and delivered to the Trustee.
"Corporate Trust Office" means the principal office of the
Trustee at which at any particular time its corporate trust business shall be
administered, which office at the date hereof is located at
______________________.
"corporation" means a corporation, association, company,
joint-stock company or business trust.
"Covenant Defeasance" has the meaning specified in Section
1303.
"days" mean calendar days.
"Defaulted Interest" has the meaning specified in Section 307.
"Defeasance" has the meaning specified in Section 1302.
"Defeasible Series" has the meaning specified in Section 1304.
"Depositary" means, with respect to Securities of any series
issuable in whole or in part in the form of one or more Global Securities, a
clearing agency registered under the Exchange Act that is designated to act as
depositary for such Securities as contemplated by Section 301.
"Event of Default" has the meaning specified in Section 501.
"Exchange Act" means the Securities Exchange Act of 1934, as
amended from time to time, and any successor statute thereto.
"Floating or Adjustable Rate Provision" means a formula or
provision, specified in or pursuant to a Board Resolution or an indenture
supplemental hereto, providing for the determination, whether pursuant to
objective factors or pursuant to the sole discretion of any Person (including
the Company), and periodic adjustment of the interest rate borne by a Floating
or Adjustable Rate Security.
- 3 -
<PAGE> 13
"Floating or Adjustable Rate Security" means any Security
which provides for interest thereon at a periodic rate that may vary from time
to time over the term thereof in accordance with a Floating or Adjustable Rate
Provision.
"Global Security" means a Security that evidences all or part
of the Securities of any series and is authenticated and delivered to, and
registered in the name of, the Depositary for such Securities or a nominee
thereof.
"Holder" means a Person in whose name a Security is registered
in the Security Register.
"Indenture" means this instrument as originally executed or
as it may from time to time be supplemented or amended by one or more
indentures supplemental hereto entered into pursuant to the applicable
provisions hereof, including, for all purposes of this instrument, and any such
supplemental indenture, the provisions of the Trust Indenture Act that are
deemed to be a part of and govern this instrument and any such supplemental
indenture, respectively. The term "Indenture" shall also include the terms of
particular series of Securities established as contemplated by Section 301.
"interest", when used with respect to an Original Issue
Discount Security which by its terms bears interest only after Maturity, means
interest payable after Maturity.
"Interest Payment Date", when used with respect to any
Security, means the Stated Maturity of an installment of interest on such
Security.
"Maturity", when used with respect to any Security, means the
date on which the principal of such Security or an installment of principal
becomes due and payable as therein or herein provided, whether at the Stated
Maturity or by declaration of acceleration, call for redemption or otherwise.
"Notice of Default" means a written notice of the kind
specified in Section 501(4)and Section 501(5).
"Officers' Certificate" means a certificate signed by (i) any
two of the following individuals: the Chairman, a Vice Chairman, the President
or a Vice President, or (ii) by one of the foregoing individuals and by any
other Vice President, the Treasurer, an Assistant Treasurer, the Controller, an
Assistant Controller, the Corporate Secretary or an Assistant Corporate
Secretary, of the Company, or any other individual authorized by the Board of
Directors for such purpose (as specified in a Board Resolution), and delivered
to the Trustee. One of the officers signing an Officers' Certificate given
pursuant to Section 1004 shall be the principal executive, financial or
accounting officer of the Company.
"Opinion of Counsel" means a written opinion of counsel, who
may be an employee of or counsel to the Company, or who may be other counsel
reasonably satisfactory to the Trustee.
- 4 -
<PAGE> 14
"Original Issue Discount Security" means any Security which
provides for an amount less than the principal amount thereof to be due and
payable upon a declaration of acceleration of the maturity thereof pursuant to
Section 502.
"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 canceled by the Trustee or
delivered to the Trustee for cancellation;
(ii) Securities 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) in trust or set aside and
segregated in trust by the Company (if the Company shall act as its
own Paying Agent) for the Holders of such Securities; provided that,
if such Securities are to be redeemed, notice of such redemption has
been duly given pursuant to this Indenture or provision therefor
satisfactory to the Trustee has been made;
(iii) Securities as to which Defeasance has been effected
pursuant to Section 1302; and
(iv) Securities which have been paid pursuant to Section 306
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;
provided, however, that in determining whether the Holders of the requisite
principal amount of the Outstanding Securities have given any request, demand,
authorization, direction, notice, consent or waiver hereunder, (A) the
principal amount of an Original Issue Discount Security that shall be deemed to
be Outstanding shall be the amount of the principal thereof that would be due
and payable as of the date of such determination upon acceleration of the
Maturity thereof pursuant to Section 502, and (B) Securities owned by (i) the
Company or any other obligor upon the Securities or (ii) any Subsidiary or of
such other obligor upon the Securities 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 or waiver, only Securities which a Responsible Officer of 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 Subsidiary or of such other obligor.
"Paying Agent" means any Person authorized by the Company to
pay the principal of or any premium or interest on any Securities on behalf of
the Company.
- 5 -
<PAGE> 15
"Person" means any individual, corporation, limited liability
company, partnership, joint venture, trust, unincorporated organization or
government or any agency or political subdivision thereof.
"PIK Securities" means any series of Securities where
interest is payable, at the election of the Company or a holder of such
Security, in additional Securities.
"Place of Payment", when used with respect to the Securities
of any series, means the place or places where the principal of and any premium
and interest on the Securities of that series are payable as specified as
contemplated by Section 301.
"Predecessor Security" of any particular Security means every
previous Security evidencing all or a portion of the same debt as that
evidenced by such particular Security; and, for the purposes of this
definition, any Security authenticated and delivered under Section 306 in
exchange for or in lieu of a mutilated, destroyed, lost or stolen Security
shall be deemed to evidence the same debt as the mutilated, destroyed, lost or
stolen Security.
"Principal Subsidiary" means any Subsidiary which at the time
of determination has, (A) assets which, as of the date of the Company's most
recently prepared quarterly consolidated balance sheet, constituted at least
15% of the Company's total assets on a consolidated basis as of such date, or
(B) revenues for the 12-month period ending on the date of the Company's most
recently prepared quarterly consolidated statement of income which constituted
at least 15% of the Company's total revenues on a consolidated basis for such
period or (C) net earnings for the 12- month period ending on the date of the
Company's most recently prepared quarterly consolidated statement of income
which constituted at least 15% of the Company's total net earnings on a
consolidated basis for such period.
"Redemption Date", when used with respect to any Security to
be redeemed, means the date fixed for such redemption by or pursuant to this
Indenture.
"Redemption Price", when used with respect to any Security to
be redeemed, means the price at which it is to be redeemed pursuant to this
Indenture.
"Regular Record Date" for the interest payable on any
Interest Payment Date on the Securities of any series means the date specified
for that purpose as contemplated by Section 301.
"Responsible Officer", when used with respect to the Trustee,
means any officer of the Trustee with responsibility for the administration of
this Indenture, and also means, with respect to a particular corporate trust
matter, any other officer to whom such matter is referred because of his or her
knowledge of and familiarity with the particular subject.
"Securities" has the meaning stated in the first recital of
this Indenture and more particularly means any Securities authenticated and
delivered under this Indenture.
- 6 -
<PAGE> 16
"Security Register" and "Security Registrar" have the
respective meanings specified in Section 305.
"Special Record Date" for the payment of any Defaulted
Interest means a date fixed by the Trustee pursuant to Section 307.
"Stated Maturity", when used with respect to any Security or
any installment of principal thereof or interest thereon, means the date
specified in such Security as the fixed date on which the principal of such
Security or such installment of principal or interest is due and payable.
"Subordinated Indenture" means the indenture to be entered
into or previously entered into between the Company and ______________, as
trustee, and relating to certain subordinated debt securities of the Company.
"Subsidiary" means a corporation more than 50% of the voting
power of which is controlled, directly or indirectly, by the Company or by one
or more other Subsidiaries, or by the Company and one or more other
Subsidiaries. For the purposes of this definition, "voting power" means the
power to vote for the election of directors, whether at all times or only so
long as no senior class of stock has such voting power by reason of any
contingency.
"Trustee" means the Person named as the "Trustee" in the
first paragraph of this instrument until a successor Trustee shall have become
such pursuant to the applicable provisions of this Indenture, and thereafter
"Trustee" shall mean or include each Person who is then a Trustee hereunder, if
at any time there is more than one such Person, "Trustee" as used with respect
to the Securities of any series shall mean the Trustee with respect to
Securities of that series.
"Trust Indenture Act" means the Trust Indenture Act of 1939,
as amended and as in force at the date as of which this instrument was
executed; provided, however, that in the event the Trust Indenture Act of 1939
is amended after such date, "Trust Indenture Act" means, to the extent required
by any such amendment, the Trust Indenture Act of 1939 as so amended, and
except as provided in Section 906.
"U.S. Government Obligations" has the meaning specified in
Section 1304.
"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".
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 an officer 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 requirements set forth in this Indenture.
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<PAGE> 17
Every certificate or opinion with respect to compliance with
a condition or covenant provided for in this Indenture (excluding certificates
provided for in Section 1004) shall include
(1) a statement that each Person 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 Person,
such Person has made such examination or investigation as is
necessary to enable such Person 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 Person, such condition or covenant has been complied with.
Section 103. Form of Documents Delivered to Trustee. In any
case where several matters are required to be certified by, or covered by an
opinion of, any specified Person, it is not necessary that all such matters be
certified by, or covered by the opinion of, only one such Person, or that they
be so certified or covered by only one document, but one such Person may
certify or give an opinion with respect to some matters and one or more other
such Persons as to other matters, and any such Person may certify or give an
opinion as to such matters in one or several documents.
Any certificate or opinion of an officer of the Company may
be based, insofar as it relates to legal matters, upon a certificate or opinion
of, or representations by, counsel, unless such officer knows, or in the
exercise of reasonable care should know, that the certificate or opinion or
representations with respect to the matters upon which its 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.
Any certificate, statement or opinion of an officer of the
Company or of counsel may be based, insofar as it relates to accounting
matters, upon a certificate, opinion or representation by an accountant or firm
of accountants in the employ of the Company, unless such officer or counsel, as
the case may be, knows, or in the exercise of reasonable care should know, that
the certificate, opinion or representation with respect to such accounting
matters upon which its certificate, statement or opinion may be based is
erroneous.
Where any Person is required to make, give or execute two or
more applications, requests, consents, certificates, statements, opinions or
other instruments under this Indenture, they may, but need not, be consolidated
and form one instrument.
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<PAGE> 18
Section 104. Acts of Holders; Record Dates. (a) Any request,
demand, authorization, direction, notice, consent, waiver or other action
provided or permitted by this Indenture to be given or taken by Holders may be
embodied in and evidenced by one or more instruments of substantially similar
tenor signed by such Holders in person or by agent duly appointed in writing;
and, except as herein otherwise expressly provided, such action shall become
effective when such instrument or instruments are delivered to the Trustee and,
where 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.
(b) 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 or her the execution thereof.
Where such execution is by a signer acting in a capacity other than such
signer's individual capacity, such certificate or affidavit shall also
constitute sufficient proof of such signer's authority. The fact and date of
the execution of any such instrument or writing, or the authority of the Person
executing the same, may also be proved in any other manner which the Trustee
deems sufficient.
(c) The Company may, in the circumstances permitted by the
Trust Indenture Act, fix any day as the record date for the purpose of
determining the Holders of Outstanding Securities of any series entitled to
give or take any request, demand, authorization, direction, notice, consent,
waiver or other action, or to vote on any action, authorized or permitted to be
given or taken by Holders of Outstanding Securities of such series. If not set
by the Company prior to the first solicitation of a Holder of Securities of
such series made by any Person in respect of any such action, or, in the case
of any such vote, prior to such vote, the record date for any such action or
vote shall be the 30th day (or, if later, the date of the most recent list of
Holders required to be provided pursuant to Section 701) prior to such first
solicitation or vote, as the case may be. With regard to any record date for
action to be taken by the Holders of one or more series of Securities, only the
Holders of Securities of such series on such date (or their duly designated
proxies) shall be entitled to give or take, or vote on, the relevant action.
(d) The ownership of Securities shall be proved by the
Security Register or by a certificate of the Security Registrar.
(e) 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.
(f) Without limiting the foregoing, a Holder entitled
hereunder to give or take any action hereunder with regard to any particular
Security may do so with regard to all or any part of
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<PAGE> 19
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
different 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 to or with the Trustee at its Corporate Trust Office;
provided, however, that the same shall be made, given, furnished or
filed only when received by a Responsible Officer of the Trustee at its
Corporate Trust Office, Attention: Corporate Trust Department, 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 instrument; provided,
however, that the same shall be made, given, furnished or filed only
when received by the Company, Attention: President, or at any other
address previously furnished in writing to the Trustee by the Company.
Section 106. Notice to Holders; Waiver. Where this Indenture
provides for notice to Holders of any event, such notice shall be sufficiently
given (unless otherwise herein expressly provided) if in writing and mailed,
first-class postage prepaid, to each Holder affected by such event, at its
address as it appears in the Security Register, not later than the latest date
(if any), and not earlier than the earliest date (if any), prescribed for the
giving of such notice; provided, however, that the Company or the Trustee, upon
a good faith determination that mailing is in the circumstances impractical,
may give such notice by any other method which, in the reasonable belief of the
Company or, in the case of the Trustee, of the Company and the Trustee, is
likely to be received by the Holders. In any case where notice to Holders is
given by mail, neither the failure to mail such notice, nor any defect in any
notice so mailed, to any particular Holder shall affect the sufficiency of such
notice with respect to other Holders. Where this Indenture provides for notice
in any manner, such notice may be waived in writing by the Person entitled to
receive such notice, either before or after the event, and such waiver 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 a part of and govern this
Indenture, the required 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
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<PAGE> 20
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 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 the Securities shall be invalid, illegal or unenforceable,
the validity, legality and enforceability of the remaining provisions shall not
in any way be affected or impaired thereby.
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, any benefit
or any legal or equitable right, remedy or claim under 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, BUT WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS.
Section 113. Legal Holidays. In any case where any Interest
Payment Date, Redemption Date or Stated Maturity of any Security or the last
day on which a Holder has the right to convert a Security at a particular
conversion price shall not be a Business Day at any Place of Payment, then
(notwithstanding any other provision of this Indenture or of the Securities
(other than a provision of 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) or conversion need not be made at
such Place of Payment on such date, but may be made on the next succeeding
Business Day at such Place of Payment with the same force and effect as if made
on the Interest Payment Date or Redemption Date, or at the Stated Maturity,
provided that no interest shall accrue with respect to such payment for the
period from and after such Interest Payment Date, Redemption Date or Stated
Maturity, as the case may be.
Section 114. Personal Immunity from Liability for
Incorporators, Stockholders, Etc. No recourse shall be had for the payment of
the principal of or premium, if any, or interest, if any, on any Security, or
for any claim based thereon, or otherwise in respect of any Security, or based
on or in respect of this Indenture or any indenture supplemental hereto,
against any incorporator, or against any past, present or future stockholder,
director or officer, as such, of the Company or of any successor corporation,
whether by virtue of any constitution, statute or rule of law, or by the
enforcement of any assessment or penalty or otherwise, all such liability being
expressly waived and released as a condition of, and as consideration for, the
execution of this Indenture and the issue of the Securities.
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<PAGE> 21
ARTICLE TWO
Security Forms
Section 201. Forms Generally. The Securities of each series
shall be in substantially the form set forth in this Article, or in such other
form as shall be established by or pursuant to a Board Resolution or in one or
more indentures supplemental hereto, in each case with such appropriate
insertions, omissions, substitutions and other variations as are required or
permitted by this Indenture, and may have such letters, numbers or other marks
of identification and such legends or endorsements placed thereon as may be
required to comply with the rules of any securities exchange or Depositary
therefor or as may, consistent herewith, be determined by the officers
executing such Securities, as evidenced by their execution of the Securities.
If the form of Securities of any series is established by action taken pursuant
to a Board Resolution, a copy of an appropriate record of such action shall be
certified by the Corporate Secretary or an Assistant Corporate Secretary of the
Company and delivered to the Trustee at or prior to the delivery of the Company
Order contemplated by Section 303 for the authentication and delivery of such
Securities.
The definitive Securities shall be printed, lithographed or
engraved on steel engraved borders or may be produced in any other manner, all
as determined by the officers executing such Securities, as evidenced by their
execution of such Securities.
Section 202. Form of Face of Security.
[Insert any legend required by the Internal Revenue Code of
1986, as amended and the regulations thereunder.]
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<PAGE> 22
NABORS INDUSTRIES, INC.
No.____ [$]____
NABORS INDUSTRIES, INC., a Delaware corporation (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] [if applicable insert one or more
foreign currencies, currency units or composite currencies] [if the Security is
to bear interest prior to Maturity, insert -- and to pay interest thereon from
_________ or from the most recent interest Payment Date to which interest has
been paid or duly provided for, [semi-annually on __________ and __________ in
each year] [if other than semi-annual payments, insert frequency of payments
and payment dates], commencing ________________, at [if the Security is to bear
interest at a fixed rate, insert -- the rate of ______% per annum][if the
Security is a Floating or Adjustable Rate Security, insert -- a rate per annum
[computed-determined] in accordance with the [insert defined name of Floating
or Adjustable Rate Provision] set forth below], [if the Security is to bear
interest at a rate determined with reference to an index, refer to description
of index below] until the principal hereof is paid or made available for
payment [if applicable, insert -- and (to the extent that the payment of such
interest shall be legally enforceable) at the rate of ____% per annum on any
overdue principal and premium and on any overdue installment of interest]. The
interest so payable, and punctually paid or duly provided for, on any Interest
Payment Date will, 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 will 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 of this series 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 of this series may be listed, and upon such notice as may be
required by such exchange, all as more fully provided in said Indenture).
[If the Securities are Floating or Adjustable Rate Securities
with respect to which the principal of or any premium or interest may be
determined with reference to an index, insert the text of the Floating or
Adjustable Rate Provision.]
[If the Security is not to bear interest prior to Maturity,
insert -- The principal of this Security shall not bear interest except in the
case of a default in payment of principal upon acceleration, upon redemption or
at Stated Maturity and in such case the overdue principal of this Security
shall bear interest at the rate of __% per annum (to the extent that the
payment of such interest shall be legally enforceable), which shall accrue from
the date of such default in payment to the date payment of such principal has
been made or duly provided for. Interest on any overdue principal shall be
payable on demand. Any such interest on any overdue principal that is not so
paid
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<PAGE> 23
on demand shall bear interest at the rate of ______% per annum (to the extent
that the payment of such interest shall be legally enforceable), which shall
accrue from the date of such demand for payment to the date payment of such
interest has been made or duly provided for, and such interest shall also be
payable on demand.]
Payment of the principal of (and premium, if any) and [if
applicable, insert -- any such] interest on this Security will be made at the
office or agency of the Company maintained for that purpose in ___________, in
such coin or currency of [if applicable, insert -- the United States of
America] [if applicable, insert another currency, currency unit or composite
currency] as at the time of payment is legal tender for payment of public and
private debts; provided, however, that at the option of the Company payment of
interest may be made by check mailed to the address of the Person entitled
thereto as such address shall appear in the Security Register).
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 under its corporate seal.
Dated:
NABORS INDUSTRIES, INC.
By
---------------------------------
Attest:
Section 203. Form of Reverse of Security.
This Security is one of a duly authorized issue of securities
of the Company (herein called the "Securities"), issued and to be issued in one
or more series under an Indenture, dated as of _______________ (herein called
the "Indenture"), between the Company and ________________, as Trustee (herein
called the "Trustee", which term includes any successor trustee under the
Indenture), to which Indenture and all indentures supplemental thereto
reference is hereby made for a statement of the respective rights, limitations
of rights, duties and immunities thereunder of the Company, the Trustee and the
Holders of the Securities and of the terms upon which the Securities are, and
are to be, authenticated and delivered. This Security is one of the series
designated on the face hereof [, limited in aggregate principal amount to
[[$]___________][if applicable, insert -- relevant amount in applicable foreign
currency, currency unit or composite currency]].
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<PAGE> 24
[If applicable, insert -- The Securities of this series are
subject to redemption upon not less than 30 days' nor more than 60 days' notice
by mail, [if applicable, insert -- (1) on __________ in any year commencing
with the year ____ and ending with the year ____ through operation of the
sinking fund for this series at a Redemption Price equal to 100% of the
principal amount, and (2)] at any time [on or after ________________], 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 [on or
before _________, ___% and if redeemed] during the 12-month period beginning of
the years indicated,
<TABLE>
<CAPTION>
Redemption Redemption Year Price Year Price
---------- --------------- ---------- -----
<S> <C> <C> <C>
</TABLE>
and thereafter at a Redemption Price equal to __________% of the principal
amount, together in the case of any such redemption [if applicable, insert
- --(whether through operation of the sinking fund or otherwise)] with accrued
interest to the Redemption Date, but interest installments whose stated
Maturity is on or prior to such Redemption Date will be payable to the Holders
of such Securities, or one or more Predecessor Securities, of record at the
close of business on the relevant Record Dates referred to on the face hereof,
all as provided in the Indenture.]
[If applicable, insert -- The Securities of this series are
subject to redemption upon not less than 30 days' nor more than 60 days' notice
by mail, (1) on ________ in any year commencing with the year __________ and
ending with the year __________ through operation of the sinking fund for this
series at the Redemption Prices for redemption through operation of the sinking
fund (expressed as percentages of the principal amount) set forth in the table
below, and (2) at any time [on or after _________], as a whole or in part, at
the election of the Company, at the Redemption Prices for redemption otherwise
than through operation of the sinking fund (expressed as percentages of the
principal amount) set forth in the table below: If redeemed during the 12-month
period beginning __________ of the years indicated,
<TABLE>
<CAPTION>
Redemption Price For Redemption Price For Redemption
Redemption Through Operation Otherwise
of the Than Through Operation of the
Year Sinking Fund Sinking Fund
- ---- ------------ ------------
<S> <C> <C>
</TABLE>
and thereafter at a Redemption Price equal to ____% of the principal amount,
together in the case of any such redemption (whether through operation of the
sinking fund or otherwise) with accrued interest to the Redemption Date, but
interest installments whose Stated Maturity in on or prior to such Redemption
Date will be payable to the Holders of such Securities, or one or more
Predecessor Securities, of record at the close of business on the relevant
Record Dates referred to on the face hereof, all as provided in the Indenture.]
[The sinking fund for this series provides for the redemption
on __________ in each year beginning with the year _____ and ending with the
year ____ of [not less than [$]__________ ("mandatory sinking fund") and not
more than] [$]__________ aggregate principal amount of
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<PAGE> 25
Securities of this series. Securities of this series acquired or redeemed by
the Company otherwise than through [mandatory] sinking fund payments may be
credited against subsequent [mandatory] sinking fund payments otherwise
required to be made [in the inverse order in which they become due).]
[If the Security is subject to redemption, insert -- In the
event of redemption of this Security in part only, a new Security or Securities
of this series and of like tenor for the unredeemed portion hereof will be
issued in the name of the Holder hereof upon the cancellation hereof.]
The Indenture contains provisions for defeasance at any time
of (1) the entire indebtedness of this Security or (2) certain restrictive
covenants and Events of Default with respect to this Security, in each case
upon compliance with certain conditions set forth in the Indenture.
[If the Security is convertible into Common Stock of the
Company, insert -- Subject to the provisions of the Indenture, the Holder of
this Security is entitled, at its option, at any time on or before [insert
date](except that, in case this Security or any portion hereof shall be called
for redemption, such right shall terminate with respect to this Security or
portion hereof, as the case may be, so called for redemption at the close of
business on the date fixed for redemption as provided in the Indenture unless
the Company defaults in making the payment due upon redemption), to convert the
principal amount of this Security (or any portion hereof which is $1,000 or an
integral multiple thereof [if applicable, insert the equivalent thereof in one
or more foreign currencies, currency units or composite currencies]), into
fully paid and non-assessable shares (calculated as to each conversion to the
nearest 1/100th of a share) of the Common Stock of the Company, as said shares
shall be constituted at the date of conversion, at the conversion price of
[$]________ principal amount of Securities for each share of Common Stock, or
at the adjusted conversion price in effect at the date of conversion determined
as provided in the Indenture, upon surrender of this Security, together with
the conversion notice hereon duly executed, to the Company at the designated
office or agency of the Company in ________, accompanied (if so required by the
Company) by instruments of transfer, in form satisfactory to the Company and to
the Trustee, duly executed by the Holder or by its duly authorized attorney in
writing. Such surrendering shall, if made during any period beginning at the
close of business on a Regular Record Date and ending at the opening of
business on the Interest Payment Date next following such Regular Record Date
(unless this Security or the portion being converted shall have been called for
redemption on a Redemption Date during such period), also be accompanied by
payment of an amount equal to the Interest payable on such Interest Payment
Date on the principal amount of this Security then being converted. Subject to
the aforesaid requirement for payment and, in the case of a conversion after
the Regular Record Date next preceding any Interest Payment Date and on or
before such Interest Payment Date, to the right of the Holder of this Security
(or any Predecessor Security) of record at such Regular Record Date to receive
an installment of interest (with certain exceptions provided in the Indenture),
no adjustment is to be made on conversion for interest accrued hereon or for
dividends on shares of Common Stock issued on conversion. The Company is not
required to issue fractional shares upon any such conversion, but shall make
adjustment therefor in cash on the basis of the current market value of such
fractional interest as provided in the Indenture. The conversion price is
subject to adjustment as provided in the Indenture. In addition, the Indenture
provides that in case of certain consolidations or mergers to which the Company
is a party or the sale of substantially all of the assets of the Company, the
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<PAGE> 26
Indenture shall be amended, without the consent of any Holders of Securities,
so that this Security, if then outstanding, will be convertible thereafter,
during the period this Security shall be convertible as specified above, only
into the kind and amount of securities, cash and other property receivable upon
the consolidation, merger or sale by a holder of the number of shares of Common
Stock into which this Security might have been converted immediately prior to
such consolidation, merger or sale (assuming such holder of Common Stock failed
to exercise any rights of election and received per share the kind and amount
received per share by a plurality of non-electing shares) [, assuming if such
consolidation, merger or sale is prior to [date], that this Security were
convertible at the time of such consolidation, merger or sale at the initial
conversion price specified above as adjusted from to such time pursuant to the
Indenture]. In the event of conversion of this Security in part only, a new
Security or Securities for the unconverted portion hereof shall be issued in
the name of the Holder hereof upon the cancellation hereof.]
[If the Security is convertible into other securities or
property, specify the conversion features and the form of conversion notice
pursuant to Section 206 hereof.]
[If the Security is not an Original Issue Discount Security,
insert -- If an Event of Default with respect to Securities of this series
shall occur and be continuing, the principal of the Securities of this series
may be declared due and payable in the manner and with the effect provided in
the Indenture.]
[If the Security is an Original Issue Discount Security,
insert -- If an Event of Default with respect to Securities of this series
shall occur and be continuing, an amount of principal of the Securities of this
series may be declared due and payable in the manner and with the effect
provided in the Indenture. Such amount shall be equal to [Insert formula for
determining the amount]. Upon payment (i) of the amount of principal so
declared due and payable and (ii) of interest on any overdue principal and
overdue interest (in each case to the extent that the payment of such interest
shall be legally enforceable), all of the Company's obligations in respect of
the payment of the principal of and interest, if any, on the Securities of this
series shall terminate.]
The Indenture permits the amendment thereof and the
modification of the rights and obligations of the Company and the rights of the
Holders of the Securities of each series to be affected under the Indenture at
any time by the Company and the Trustee with the consent of the Holders of a
majority in principal amount of the Securities at the time outstanding of each
series to be affected, with certain exceptions as therein provided with respect
to certain modifications or amendments which may not be made without the
consent of each Holder of such Security affected thereby. The Indenture also
permits certain amendments and modifications thereto from time to time by the
Company and the Trustee without the consent of the Holders of any series of the
Securities to be affected thereby for certain specified purposes, including
curing ambiguities, defects or inconsistencies and making any such change that
does not adversely affect the rights of any Holder of such series of the
Securities, as provided therein.
The Indenture contains provisions permitting the Holders of
specified percentages in principal amount of the Securities of each 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
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<PAGE> 27
Indenture and certain past defaults under the Indenture and their consequences.
Any such consent or waiver by the Holder of this Security shall be conclusive
and binding upon such Holder and upon all future Holders of this Security and
of any Security issued upon the registration of transfer hereof or in exchange
hereof or in lieu hereof, whether or not notation of such consent or waiver is
made upon this Security.
No reference herein to the Indenture and no provision of this
Security or of the Indenture shall alter or impair the obligation of the
Company, which is absolute and unconditional, to pay the principal of and any
premium and Interest on this Security at the times, place and [rate(s)], 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 registerable in
the Security Register, upon surrender of this Security for registration of
transfer at the office or agency of the Company in any place where the
principal of and any premium and interest on this Security are payable, 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 this series and of like tenor, of authorized
denominations and for the same aggregate principal amount, will be issued to
the designated transferee or transferees.
The Securities of this series are issuable only in registered
form without coupons in denominations of $1,000 and any integral multiple
thereof [if applicable, insert the equivalent thereof in one or more foreign
currencies, currency units or composite currencies]. As provided in the
Indenture and subject to certain limitations therein set forth, Securities of
this series are exchangeable for a like aggregate principal amount of
Securities of this series and 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.
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.
No recourse shall be had for the payment of the principal of
(and premium, if any) or interest on this Security, or for any claim based
hereon, or otherwise in respect hereof, or based on or in respect of the
Indenture or any indenture supplemental thereto, against any incorporator,
stockholder, officer or director, as such, past, present or future, of the
Company or of any successor corporation, whether by virtue of any constitution,
statute or rule of law, or by the enforcement of any assessment or penalty or
otherwise, all such liability being, by the acceptance hereof and as part of
the consideration for the issue hereof, expressly waived and released.
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<PAGE> 28
All terms used in this Security which are defined in the
Indenture shall have the meanings assigned to them in the Indenture.
Section 204. Form of Legend for Global Securities. Every
Global Security authenticated and delivered hereunder shall bear a legend in
substantially the following form or such other legends as may be required:
This Security is a Global Security within the meaning of the
Indenture hereinafter referred to and is registered in the name of a Depositary
or a nominee thereof. This Security may not be transferred to, or registered or
exchanged for Securities registered in the name of, any Person other than the
Depositary or a nominee thereof and no such transfer may be registered, except
in the limited circumstances described in the Indenture. Every Security
authenticated and delivered upon registration of transfer of, or in exchange
for or in lieu of, this Security shall be a Global Security subject to the
foregoing, except in such limited circumstances.
Section 205. 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.
-------------------------------,
as Trustee
By
------------------------------
Authorized Signatory
Section 206. Form of Conversion Notice.
To Nabors Industries, Inc.
The undersigned owner of this Security hereby irrevocably
exercises the option to convert this Security, or portion hereof (which is
$1,000 or an integral multiple thereof) below designated, into shares of Common
Stock of the Company in accordance with the terms of the Indenture referred to
in this Security, and directs that the shares issuable and deliverable upon the
conversion, together with any check in payment for fractional shares and any
Securities representing any unconverted principal amount hereof, be issued and
delivered to the registered holder hereof unless a different name has been
indicated below. If this Notice is being delivered on a date after the close of
business on a Regular Record Date and prior to the opening of business on the
related Interest Payment Date (unless this Security or the portion thereof
being converted has been called for redemption on a Redemption Date within such
period), this Notice is accompanied by payment of an amount equal to the
interest payable on such Interest Payment Date of the principal of this
Security to be converted. If shares are to be issued in the name of a Person
other than the
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<PAGE> 29
undersigned, the undersigned will pay all transfer taxes payable with respect
hereto. Any amount required to be paid by the undersigned on account of
interest accompanies this Security.
Principal Amount to be Converted (in an integral multiple of
$1,000, if less than all [if applicable, insert
the equivalent thereof in one or more foreign
currencies, currency units or composite currencies]):
[$]
-----------
Dated
--------- -----------------------------------
Signature
Signature(s) must be guaranteed by
an institution which is a member of
one of the following recognized
signature Guarantee Programs:
(i) The Securities Transfer Agent
Medallion Program (STAMP); (ii) The
New York Stock Exchange Medallion
Program (MNSP); (iii) The Stock
Exchange Medallion Program (SEMP)
or (iv) another guarantee program
acceptable to the Trustee.
------------------------------------
Signature Guarantee
Fill in for registration of shares of Common Stock and
Security if to be issued otherwise than to the registered holder.
- ----------------------------
(Name)
- ----------------------------
(Address)
Please print Name and Address
(including zip code number)
Social Security or other Taxpayer
Identifying Number
---------------
SECTION 207. Securities Issuable in Global Form.
If Securities of or within a series are issuable in global form, as
specified as contemplated by Section 301, then, notwithstanding clause (11) of
Section 301, any such Security shall represent
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<PAGE> 30
such of the Outstanding Securities of such series as shall be specified therein
and may provide that it shall represent the aggregate amount of Outstanding
Securities of such series from time to time endorsed thereon and that the
aggregate amount of Outstanding Securities of such series represented thereby
may from time to time by increased or decreased to reflect exchanges. Any
endorsement of a Security in global form to reflect the amount, or any increase
or decrease in the amount, of Outstanding Securities represented thereby shall
be made by the Trustee in such manner and upon instructions given by such
Person or Persons as shall be specified therein or in the Company Order to be
delivered to the Trustee pursuant to Section 303 or Section 304. Subject to the
provisions of Section 303 and, if applicable, Section 304, the Trustee shall
deliver and redeliver any Security in permanent global form in the manner and
upon instructions given by the Person or Persons specified therein or in the
applicable Company Order. If a Company Order pursuant to Section 303 or Section
304 has been, or simultaneously is, delivered, any instructions by the Company
with respect to endorsement or delivery or redelivery of a Security in global
form shall be in writing but need not comply with Section 102 and need not be
accompanied by an Opinion of Counsel.
The provisions of the last sentence of Section 303 shall apply to any
Security represented by a Security in global form if such Security was never
issued and sold by the Company and the Company delivers to the Trustee the
Security in global form together with written instructions (which need not
comply with Section 102 and need not be accompanied by an Opinion of Counsel)
with regard to the reduction in the principal amount of Securities represented
thereby, together with the written statement contemplated by the last sentence
of Section 303.
Notwithstanding the provisions of Section 307, unless otherwise
specified as contemplated by Section 301, payment of principal of and any
premium and interest on any Security in permanent global form shall be made to
the Person or Persons specified therein.
Notwithstanding the provisions of Section 308 and except as provided
in the preceding paragraph, the Company, the Trustee and any agent of the
Company and the Trustee shall treat as the Holder of such principal amount of
Outstanding Securities represented by a permanent global Security the Holder of
such permanent global Security in registered form.
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. There shall be established in or pursuant to a Board
Resolution or established in one or more indentures supplemental hereto, prior
to the issuance of Securities of any series,
(1) the title of the Securities of the series (which shall
distinguish the Securities of the series from Securities of any other
series);
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<PAGE> 31
(2) any limit upon the aggregate principal amount of the
Securities of the series which 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 Sections 304, 305,
306, 907, 1107 or 1202 and except for any Securities which, pursuant
to Section 303, are deemed never to have been authenticated and
delivered hereunder);
(3) the Person to whom any interest on a 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;
(4) the date or dates, or the method or methods (and
related procedures) by which such date or dates will be determined or
extended, on which the principal of the Securities of the series is
payable;
(5) the rate or rates at which the Securities of the series
shall bear interest, if any, or the Floating or Adjustable Rate
Provision pursuant to which such rates shall be determined, the date
or dates from which such interest shall accrue, the Interest Payment
Dates on which any such interest shall be payable and the Regular
Record Date for any interest payable on any Interest Payment Date;
(6) whether the Securities of the series would be
secured pursuant to Section 901(7);
(7) the place or places where the principal of (and
premium, if any) and interest, if any, on Securities of the series
shall be payable;
(8) if applicable, the period or periods within which, the
price or prices at which (including premium, if any) and the terms and
conditions upon which Securities of the series shall be redeemed, in
whole or in part, at the option of the Company pursuant to a sinking
fund or otherwise;
(9) the obligation, if any, of the Company to redeem
or purchase Securities of the series pursuant to any sinking fund or
analogous provisions or at the option of a Holder thereof and the
period or periods within which, the price or prices at which and the
terms and conditions upon which Securities of the series shall be
redeemed or purchased, in whole or in part, pursuant to such
obligation;
(10) if applicable, the terms of any right to convert or
exchange Securities of the series into shares of Common Stock of the
Company or other securities or property of the Company or other
issuers;
(11) if other than denominations of $1,000 and any integral
multiple thereof (or the equivalent thereof in one or more foreign
currencies, currency units or composite currencies), the denominations
in which Securities of the series shall be issuable;
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<PAGE> 32
(12) if the amount of payments of principal of (or premium,
if any) or interest, if any, on any Securities of the series may be
determined with reference to one or more indices, the manner in which
such amounts shall be determined;
(13) if other than currency of the United States, one or more
foreign currencies, currency units or composite currencies in which the
Securities of the series are to be denominated;
(14) if other than the coin or currency in which the
Securities of the series are denominated, the coin or currency in
which payment of the principal of (and premium, if any) and interest
on the Securities of the series shall be payable;
(15) the price or prices (expressed as a percentage of the
principal amount thereof) at which the Securities will be issued and,
if other than the principal amount thereof, the portion of the
principal amount of Securities of the series which shall be payable
upon declaration of acceleration of the Maturity thereof pursuant to
Section 502 or provable under any applicable federal or state
bankruptcy or similar law pursuant to Section 503;
(16) if applicable, that the Securities of the series shall be
issuable in whole or in part in the form of one or more Global
Securities and, in such case, the Depositary or Depositaries for such
Global Security or Global Securities and any circumstance other than
those set forth in Section 305 in which any such Global Security may
be transferred to, and registered and exchanged for Securities
registered in the name of, a Person other than the Depositary for such
Global Security or a nominee thereof and in which any such transfer
may be registered;
(17) whether the Securities are to be issued as Original
Issue Discount Securities;
(18) whether the interest, if any, on the Securities is to
be payable, at the election of the Company or a holder thereof, in
cash or in PIK Securities and the period or periods within which,
and the terms and conditions upon which, such election may be made;
(19) any other event or events of default applicable with
respect to the Securities of the series in addition to those provided
in Section 501(1) through (7);
(20) any other covenant or warranty included for the benefit
of Securities of the series in addition to (and not inconsistent with)
those included in this Indenture for the benefit of Securities of all
series, or any other covenant or warranty included for the benefit of
Securities of the series in lieu of any covenant or warranty included
in this Indenture for the benefit of Securities of all series, or any
provision that any covenant or warranty included in this Indenture for
the benefit of Securities of all series shall not be for the benefit of
Securities of the series, or any combination of such covenants,
warranties or provisions;
(21) any restriction or condition on the transferability of
the Securities of the series;
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<PAGE> 33
(22) any authenticating or paying agents, registrars,
conversion agents or any other agents with respect to the Securities
of the series; and
(23) any other terms of the series (which terms shall not be
inconsistent with the provisions of this Indenture, except as
permitted by Section 901(6)).
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 the Board Resolution referred to above or in any such indenture
supplemental hereto.
If any of the terms of the series are established by action
taken pursuant to a Board Resolution, a copy of such action shall be delivered
to the Trustee.
Section 302. Denominations. The Securities of each series
shall be issuable in registered form without coupons 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 shall be issuable in denominations of $1,000 and any integral multiple
thereof [if applicable, insert the equivalent thereof in one or more foreign
currencies, currency units or composite currencies].
Section 303. Execution, Authentication, Delivery and Dating.
The Securities shall be executed on behalf of the Company by its Chairman, a
Vice Chairman, its President, any Vice President, its Treasurer or Assistant
Treasurer, its Controller or Assistant Controller under its corporate seal
reproduced thereon attested by its Corporate Secretary or one of its Assistant
Corporate Secretaries. The signature of any of these officers on the Securities
may be manual or facsimile.
The seal of the Company may be in the form of a facsimile
thereof and may be impressed, affixed, imprinted or otherwise reproduced on the
Securities. 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. Minor
typographical and other minor errors in the text of any Security or minor
defects in the seal or facsimile signature on any Security shall not affect the
validity or enforceability of such Security if it has been duly authenticated
and delivered by the Trustee.
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 the Company Order shall authenticate and deliver
such Securities. If the form or terms of the Securities of the series have been
established in or pursuant to one or more Board Resolutions or indentures
supplemental hereto as permitted by Sections 201 and 301, in authenticating
such Securities, and accepting the additional responsibilities under this
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<PAGE> 34
Indenture in relation to such Securities, the Trustee shall be entitled to
receive, and (subject to Section 601) shall be fully protected in relying upon,
an Opinion of Counsel stating,
(a) if the form of such Securities has been established by
or pursuant to Board Resolutions or indentures supplemental hereto as
permitted by Section 201, that such form has been established in
conformity with the provisions of this Indenture;
(b) if the terms of such Securities have been established by
or pursuant to Board Resolutions or indentures supplemental hereto as
permitted by Section 301, that such terms have been established in
conformity with the provisions of this Indenture; and
(c) that such Securities, when authenticated and delivered by
the Trustee and issued by the Company in the manner and subject to any
conditions specified in such Opinion of Counsel, will constitute valid
and legally binding obligations of the Company enforceable in
accordance with their terms, subject to bankruptcy, insolvency,
fraudulent transfer, reorganization, moratorium and similar laws of
general applicability relating to or affecting creditors' rights
generally and to general equity principles.
The Trustee shall have the right to decline to authenticate
and deliver any Securities under this Section if the Trustee, being advised by
counsel, determines that such action may not lawfully be taken or if the
Trustee in good faith by its board of directors, executive committee, or a
trust committee of directors or committee of Responsible Officers of the
Trustee shall determine that such action would expose the Trustee to personal
liability to existing Holders of Securities.
Notwithstanding the provisions of Section 301 and of the
preceding paragraph, if all Securities of a series are not to be originally
issued at one time, it shall not be necessary to deliver the Board Resolution
otherwise required pursuant to Section 301 or the Company Order and Opinion of
Counsel otherwise required pursuant to such preceding paragraph at or prior to
the time of authentication of each Security of such series if such documents
are delivered at or prior to the authentication upon original issuance of the
first Security of such series to be issued.
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. Notwithstanding the foregoing, if any Security shall have been
authenticated and delivered hereunder but never issued and sold by the Company,
and the Company shall deliver such Security to the Trustee for cancellation as
provided in Section 309, for all purposes of this Indenture such Security shall
be deemed never to have been authenticated and delivered hereunder and shall
never be entitled to the benefits of this Indenture.
Section 304. Temporary Securities. Pending the preparation of
definitive Securities of any series, the Company may execute, and upon Company
Order the Trustee shall authenticate
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<PAGE> 35
and deliver, temporary Securities which are printed, lithographed, typewritten,
mimeographed or otherwise produced, in any authorized denomination,
substantially of the tenor of the definitive Securities in lieu of which they
are issued and with such appropriate insertions, omissions, substitutions and
other variations as the officers of the Company executing such Securities may
determine, as evidenced by their execution of such Securities.
If temporary Securities of any series are issued, the Company
will cause definitive Securities of that series to be prepared without
unreasonable delay. After the preparation of definitive Securities of such
series, the temporary Securities of such series shall be exchangeable for
definitive Securities of such series upon surrender of the temporary Securities
of such series at the office or agency of the Company in a Place of Payment for
that series, without charge to the Holder. Upon surrender for cancellation of
any one or more temporary Securities of any series, the Company shall execute
and the Trustee shall authenticate and deliver in exchange therefor one or more
definitive Securities of the same series, of any authorized denominations and
of a like aggregate principal amount and tenor. Until so exchanged the
temporary Securities of any series shall in all respects be entitled to the
same benefits under this Indenture as definitive Securities of such series and
tenor.
Section 305. Registration, Registration of Transfer and
Exchange. The Company shall cause to be kept at the Corporate Trust Office of
the Trustee a register (the register maintained in such office and in any other
office or agency of the Company in a Place of Payment being herein sometimes
collectively referred to as the "Security Register") in which, subject to such
reasonable procedures as it or the Trustee may prescribe, the Company shall
provide for the registration of Securities and of transfers of Securities. The
Trustee is hereby appointed "Security Registrar" for the purpose of registering
Securities and transfers of Securities as herein provided.
Upon surrender for registration of transfer of any Security
of any series at the office or agency in a Place of Payment for that series,
the Company shall execute, and the Trustee shall authenticate and deliver, in
the name of the designated transferee or transferees, one or more new
Securities of the same series, of any authorized denominations and of a like
aggregate principal amount and tenor.
At the option of the Holder, Securities of any series may be
exchanged for other Securities of the same series, of any authorized
denominations and of a like aggregate principal amount and tenor, upon
surrender of the Securities to be exchanged at such office or agency. Whenever
any Securities are so surrendered for exchange, the Company shall execute, and
the Trustee shall authenticate and deliver, the Securities which the Holder
making the exchange is entitled to receive.
All Securities issued upon any registration of transfer or
exchange of Securities shall be the valid obligations of the Company,
evidencing the same debt, and entitled to the same benefits under this
Indenture, as the Securities surrendered upon such registration of transfer or
exchange.
Every Security presented or surrendered for registration of
transfer, exchange, redemption or payment shall (if so required by the Company
or the Trustee) be duly endorsed, or be
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<PAGE> 36
accompanied by a written instrument of transfer in form satisfactory to the
Company and the Security Registrar duly executed, by the Holder thereof or his
attorney duly authorized in writing.
No service charge shall be made for any registration of
transfer or exchange of Securities, but the Company or the Trustee may require
payment of a sum sufficient to cover any tax or other governmental charge that
may be imposed in connection with any registration of transfer or exchange of
Securities, other than exchanges pursuant to Section 304, 907, 1107 or 1202 not
involving any transfer.
Neither the Company nor the Trustee shall be required (i) to
issue, register the transfer of or exchange Securities of any series during a
period beginning at the opening of business 15 days before the day of the
mailing of a notice of redemption of Securities of that series selected for
redemption under Section 1103 and ending at the close of business on the day of
such mailing, or (ii) to register the transfer of or exchange any Security so
selected for redemption in whole or in part, except the unredeemed portion of
any Security being redeemed in part.
Notwithstanding any other provision in this Indenture, no
Global Security may be transferred to, or registered or exchanged for
Securities registered in the name of, any Person other than the Depositary for
such Global Security or any nominee thereof, and no such transfer may be
registered, unless (1) such Depositary (A) notifies the Company and the Trustee
that it is unwilling or unable to continue as Depositary for such Global
Security or (B) ceases to be a clearing agency registered under the Exchange
Act, (2) the Company executes and delivers to the Trustee a Company Order that
such Global Security shall be so transferable, registrable and exchangeable,
and such transfers shall be registrable, (3) there shall have occurred and be
continuing an Event of Default with respect to the Securities evidenced by such
Global Security or (4) there shall exist such other circumstances, if any, as
have been specified for this purpose as contemplated by Section 301.
Notwithstanding any other provision in this Indenture, a Global Security to
which the restriction set forth in the preceding sentence shall have ceased to
apply may be transferred only to, and may be registered and exchanged for
Securities registered only in the name or names of, such Person or Persons as
the Depositary for such Global Security shall have directed and no transfer
thereof other than such a transfer may be registered.
Every Security authenticated and delivered upon registration
of transfer of, or in exchange for or in lieu of, a Global Security to which
the restriction set forth in the first sentence of the preceding paragraph
shall apply, whether pursuant to this Section, Section 304, 306, 907, 1107 or
1202 or otherwise, shall be authenticated and delivered in the form of, and
shall be, a Global Security.
Section 306. Mutilated, Destroyed, Lost and Stolen
Securities. If there shall be delivered to the Company and the Trustee (i) a
mutilated Security, or (ii) evidence to their satisfaction of the destruction,
loss or theft of any Security and in either case such security or indemnity as
may be required by either of them to save each of them and any agent of either
of them harmless, then, in the absence of notice to the Company or the Trustee
that such Security has been acquired by a bona fide purchaser, the Company
shall execute and the Trustee shall authenticate and deliver, in lieu of any
such mutilated, destroyed, lost or stolen Security, a new Security of the same
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<PAGE> 37
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 or the Trustee 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 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 of that series duly issued
hereunder.
The provisions of this Section are exclusive and shall
preclude (to the extent lawful) all other rights and remedies with respect to
the replacement or payment of mutilated, destroyed, lost or stolen Securities.
Section 307. Payment of Interest; Interest Rights Preserved.
Except as otherwise provided as contemplated by Section 301 with respect to any
series of Securities, interest on any Security which is payable, and is
punctually paid or duly provided for, on any Interest Payment Date shall be
paid to the Person in whose name that Security (or one or more Predecessor
Securities) is registered at the close of business on the Regular Record Date
for such interest.
Any interest on any Security of any series which is payable,
but is not punctually paid or duly provided for, on any Interest Payment Date
(herein called "Defaulted Interest") shall forthwith cease to be payable to the
Holder on the relevant Regular Record Date by virtue of having been such
Holder, and such Defaulted Interest may be paid by the Company, at its election
in each case, as provided in Clause (1) or (2) below:
(1) The Company may elect to make payment of any Defaulted
Interest to the Persons in whose names the Securities 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 reasonably 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 in this Clause provided.
Thereupon the Trustee shall
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<PAGE> 38
fix a Special Record Date for the payment of such Defaulted Interest
which shall be not more than 15 days and not less than 10 days prior
to the date of the proposed payment and not less than 15 days after
the receipt by the Trustee of the notice of the proposed payment. The
Trustee shall promptly notify the Company of such Special Record Date
and, in the name and at the expense of the Company, shall cause notice
of the proposed payment of such Defaulted Interest and the Special
Record Date therefor to be given to each Holder of Securities of such
series, in the manner set forth 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
the Securities of any series in any other lawful manner not
inconsistent with the requirements of any securities exchange on which
such 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.
Subject to the provisions of Section 1202, in the case of any
Security which is converted after any Regular Record Date and on or prior to
the next succeeding Interest Payment Date (other than any Security the
principal of (or premium, if any, on)) which shall become due and payable,
whether at a Stated Maturity or by declaration of acceleration, call for
redemption, or otherwise, prior to such Interest Payment Date), interest whose
Stated Maturity is on such Interest Payment Date shall be payable on such
Interest Payment Date notwithstanding such conversion and such interest
(whether or not punctually paid or duly provided for) shall be paid to the
Person in whose name that Security (or any one or more Predecessor Securities)
is registered at the close of business on such Regular Record Date. Except as
otherwise expressly provided in the immediately preceding sentence, in the case
of any Security which is converted, interest whose Stated Maturity is after the
date of conversion of such Security shall not be payable.
Section 308. Persons Deemed Owners. Prior to due presentment
of a Security for registration of transfer, the Company, the Trustee and any
agent of the Company or the Trustee may treat the Person in whose name such
Security is registered as the owner of such Security for the purpose of
receiving payment of principal of and any premium and (subject to Section 307)
any 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.
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Section 309. Cancellation. All Securities surrendered for
payment, redemption, registration of transfer or exchange or for credit against
any sinking fund payment or for conversion shall, if surrendered to any Person
other than the Trustee, be delivered to the Trustee and shall be promptly
canceled by it. The Company may at any time deliver to the Trustee for
cancellation any Securities previously authenticated and delivered hereunder
which the Company may have acquired in any manner whatsoever, and may deliver
to the Trustee (or to any other Person for delivery to the Trustee) for
cancellation any Securities previously authenticated hereunder which the
Company has not issued and sold, and all Securities so delivered shall be
promptly canceled by the Trustee. No Securities shall be authenticated in lieu
of or in exchange for any Securities canceled as provided in this Section,
except as expressly permitted by this Indenture. All canceled Securities held
by the Trustee shall be disposed of as directed by a Company Order or, in the
absence of such Company Order, in accordance with the Trustee's customary
practices. Acquisition by the Company of any Security shall not operate as a
redemption or satisfaction of the indebtedness represented by such Security
unless and until the same is delivered to the Trustee for cancellation.
Section 310. Computation of Interest. Except as otherwise
specified as contemplated by Section 301 for Securities of any series, interest
on the Securities of each series shall be computed on the basis of a 360-day
year of twelve 30-day months.
Section 311. Designation as Senior Debt. The Company hereby
confirms the designation of the Securities as "Senior Debt" for the purposes of
any securities of the Company that may be issued pursuant to the Subordinated
Indenture.
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ARTICLE FOUR
Satisfaction and Discharge
Section 401. Satisfaction and Discharge of Indenture. This
Indenture shall upon Company Request cease to be of further effect (except as
to any surviving rights of conversion, registration of transfer or exchange of
Securities of a series herein expressly provided for) with respect to
Securities of any series, and the Trustee, at the expense of the Company, shall
execute proper instruments acknowledging satisfaction and discharge of this
Indenture with respect to a series, when
(1) either
(A) all Securities of such series theretofore authenticated
and delivered (other than (i) Securities which have been destroyed,
lost or stolen and which have been replaced or paid as provided in
Section 306 and (ii) Securities of such series for whose payment money
has theretofore been deposited in trust or segregated and held in
trust by the Company and thereafter repaid to the Company or
discharged from such trust, as provided in Section 1003) have been
delivered to the Trustee for cancellation; or
(B) all such Securities of such series not theretofore
delivered to the Trustee for cancellation
(i) have become due and payable, or
(ii) will become due and payable at their Stated Maturity
within one year, or
(iii) are to be called for redemption within one year under
arrangements reasonably satisfactory to the Trustee for the giving of
notice of redemption by the Trustee in the name, and at the expense,
of the Company, and the Company, in the case of (i), (ii) or (iii)
above, has deposited or caused to be deposited with the Trustee in
trust irrevocably (A) money (in [United States dollars]) 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 will provide, not later than one day before the due date of any
payment, money in an amount, or (C) a combination thereof, 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 the entire indebtedness on such
Securities of such series not theretofore delivered to the Trustee for
cancellation, for principal of (and premium, if any) and interest to
the date of such deposit (in the case of Securities of such series
which have become due and payable) or to the Stated Maturity or
Redemption Date, as the case may be;
(2) the Company has paid or caused to be paid all
other sums payable hereunder by the Company; and
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(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 with respect to such series have been
complied with.
In the event there are Securities of two or more series
outstanding hereunder, the Trustee shall be required to execute an instrument
acknowledging satisfaction and discharge of this Indenture only if requested to
do so with respect to Securities of a particular series as to which it is
Trustee and if the other conditions thereto are met. In the event that there
are two or more Trustees hereunder, then the effectiveness of any such
instrument shall be conditioned upon receipt of such instruments from all
Trustees hereunder.
Notwithstanding the satisfaction and discharge of this
Indenture with respect to a particular series, the obligations of the Company
to the Trustee under Section 607, the obligations of the Company to any
Authenticating Agent under Section 614 and, if money shall have been deposited
with the Trustee pursuant to subclause (B) of Clause (1) of this Section, the
obligations of the Trustee under Section 402 and the last paragraph of Section
1003 shall survive until there are no Securities Outstanding with respect to a
particular series and the obligations of the Company and the Trustee with
respect to all other series of Securities shall survive.
Section 402. Application of Trust Fund. Subject to provisions
of the last paragraph of Section 1003, all amounts deposited with the Trustee
pursuant to Section 401 shall be held in trust and applied by it, in accordance
with the provisions of the Securities and this Indenture, to the payment,
either directly or through any Paying Agent (including the Company acting as
its own Paying Agent) as the Trustee may determine, to the Persons entitled
thereto, of the principal and any premium and interest for whose payment such
funds have been deposited with the Trustee.
ARTICLE FIVE
Remedies
Section 501. Events of Default. "Event of Default" whenever
used with respect to Securities of a series means any one of the following
events and such other events as may be established with respect to the
Securities of such series as contemplated by Section 301 hereof:
(1) Default in the payment of any installment of interest
upon any of the Securities of such series as and when the same shall
become due and payable, and continuance of such default for a period
of 30 days; or
(2) Default in the payment of the principal of or premium, if
any, on any of the Securities of such series as and when the same
shall become due and payable either at maturity, upon redemption, by
declaration of acceleration or otherwise and continuance of such
default for a period of ten days; or
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(3) Default in the making of any sinking fund payment, whether
mandatory or optional, as and when the same shall become due and
payable by the terms of the Securities of such series and continuance
of such default for a period of ten days; or
(4) Failure on the part of the Company duly to observe or
perform any other of the covenants or agreements on the part of the
Company contained in this Indenture (other than those set forth
exclusively in the terms of any other particular series of Securities
established as contemplated by this Indenture for the benefit of such
other series) and written notice of such failure, stating that such
notice is a "Notice of Default" hereunder, and requiring the Company
to remedy the same, shall have been given by registered or certified
mail, return receipt requested, to the Company by the Trustee, or to
the Company and the Trustee by the Holders of at least 25% in
aggregate principal amount of the Outstanding Securities of that
series, and such failure shall have continued unremedied for a period
of 90 days after the date of the Company's receipt of such Notice of
Default; or
(5) (i) An event of default, as defined in any indenture or
instrument evidencing or under which the Company or any Principal
Subsidiary shall have outstanding indebtedness for borrowed money in a
principal amount in excess of $25,000,000, shall happen and be
continuing and such indebtedness shall have been accelerated so that
the same shall be or become due and payable prior to the date on which
the same would otherwise have become due and payable or (ii) the
Company or any Principal Subsidiary shall default in the payment at
final maturity of outstanding indebtedness for borrowed money in a
principal amount in excess of $25,000,000, and such acceleration or
default at maturity shall not be waived, rescinded or annulled within
30 days after written notice thereof, stating that such notice is a
"Notice of Default" hereunder, shall have been given to the Company by
the Trustee (if such event be known to it), or to the Company and the
Trustee by the Holders of at least 25% in aggregate principal amount
of the Outstanding Securities of that series; provided, however, that
if such acceleration under such indenture or instrument or default at
maturity shall be remedied or cured by the Company or Principal
Subsidiary, or waived, rescinded or annulled by the requisite holders
of such indebtedness, then the Event of Default hereunder by reason
thereof shall be deemed likewise to have been thereupon remedied,
cured or waived without further action upon the part of either the
Trustee or any of the Holders; or
(6) A decree or order by a court having jurisdiction in the
premises shall have been entered adjudging the Company a bankrupt or
insolvent, or approving as properly filed a petition seeking
reorganization, arrangement, adjustment or composition of the Company
under any applicable Federal or State bankruptcy or similar law, and
such decree or order shall have continued undischarged and unstayed
for a period of 90 days; or a decree or order of a court having
jurisdiction in the premises for the appointment of a receiver,
liquidator, trustee, assignee, sequestrator or similar official in
bankruptcy or insolvency of the Company or of all or substantially all
of its property, or for the winding up or liquidation of its affairs,
shall have been entered, and such decree or order shall have continued
undischarged and unstayed for a period of 90 days; or
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(7) The Company shall institute proceedings to be adjudicated
a voluntary bankrupt, or shall consent to the filing of a bankruptcy
proceeding against it, or shall file a petition or answer or consent
seeking reorganization, arrangement, adjustment or composition under
any applicable Federal or State bankruptcy or similar law, or shall
consent to the filing of any such petition, or shall consent to the
appointment of a receiver, liquidator, trustee, assignee, sequestrator
or similar official in bankruptcy or insolvency of the Company or of
all or substantially all of its property, or shall make an assignment
for the benefit of creditors, or shall admit in writing its inability
to pay its debts generally as they become due and its willingness to
be adjudged a bankrupt, or corporate action shall be taken by the
Company in furtherance of any of the aforesaid purposes; or
(8) Any other Event of Default provided with respect to
Securities of that series.
The Company shall deliver to the Trustee written notice of
any Event of Default or event which with the giving of notice or lapse of time
or both would become an Event of Default under clauses (4), (5), (6) and (7)
hereof within 30 days of the knowledge thereof by the Company; provided that in
the case of clause (4) no such notice will be required to be given by the
Company if such default shall be cured by the Company within such 30 day
period.
The Trustee shall not be charged with knowledge of any
default (as defined in Section 602) or Event of Default unless written notice
thereof shall have been given to the Trustee by the Company, the Paying Agent
of that series (provided that no such notice shall be required to be given if
the Trustee acts as Paying Agent of such series), or with respect to a default
or an Event of Default under clause (5) of this Section by the holder of any
such indebtedness or an agent of the holder of any such indebtedness or by the
trustee then acting under any such indenture or other instrument under which
such default shall have occurred, or by Holders of at least 25% in aggregate
principal amount of the Outstanding Securities of that series.
Section 502. Acceleration of Maturity; Rescission and
Annulment. If an Event of Default with respect to Securities of any series at
the time Outstanding occurs and is continuing, then in every such case the
Trustee or the Holders of not less than 25% in principal amount of the
Outstanding Securities of that series may declare the principal amount (or, if
any of the Securities of that series are Original Issue Discount Securities,
such portion of the principal amount of such Securities as may be specified in
the terms thereof) of all of the 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 principal amount (or
specified amount) shall become immediately due and payable.
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 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
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(A) all overdue interest on all Securities of that series,
(B) the principal of (and premium, if any, on) any Securities
of that series which have become due otherwise than by such
declaration of acceleration and any interest thereon at the rate or
rates prescribed therefor in such Securities,
(C) to the extent that payment of such interest is lawful,
interest upon overdue interest at the rate or rates prescribed
therefor in such Securities, 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 any other amounts due the
Trustee under Section 607, except such costs and expenses as are a
result of negligence or bad faith on the part of the Trustee; and
(2) all Events of Default with respect to Securities of that
series other than the non-payment of the principal of and interest, if
any, on the Securities of that series which have become due solely by
such declaration of acceleration, 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 when such interest becomes due and payable and such default
continues for a period of 30 days, or
(2) default is made in the payment of the principal of (or
premium, if any, on) any Security at the Maturity thereof and
continuance of such default for a period of ten days, the Company
will, upon written demand of the Trustee, pay to it, for the benefit
of the Holders of such Securities, the whole amount then due and
payable on such Securities for principal and any premium and interest
and, to the extent that payment of such interest shall be legally
enforceable, interest on any overdue principal and premium and on any
overdue interest, at the rate or rates prescribed therefor in such
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, and other amounts due the Trustee
under Section 607, except such costs and expenses as are a result of
negligence or bad faith on the part of the Trustee. Until such demand
is made by the Trustee, the Company may pay the principal of and
premium, if any, and interest, if any, on the Securities of any series
to the registered Holders, whether or not the Securities of such
series are overdue.
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
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shall deem most effectual to protect and enforce any such rights, whether for
the specific enforcement of any covenant or agreement in this Indenture or in
aid of the exercise of any power granted herein, or to enforce any other proper
remedy.
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 its creditors, the Trustee shall be entitled and
empowered, by intervention in such proceeding or otherwise, to take any and all
actions authorized under the Trust Indenture Act in order to have claims of the
Holders and the Trustee 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 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, except such costs and expenses
as are a result of negligence or bad faith on the part of the Trustee.
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 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, however, that the Trustee may, on behalf of the 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
except such costs and expenses, as are a result of negligence or bad faith on
the part of the Trustee, 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 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 any premium or interest,
upon presentation of the Securities and the notation thereon of the payment if
only partially paid and upon surrender thereof if fully paid:
FIRST: To the payment of all amounts due the Trustee
under Section 607;
SECOND: To the payment of the amounts then due and
unpaid for principal of and any premium and interest on the Securities
in respect of which or for the benefit of which
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such money has been collected, ratably, without preference or priority
of any kind, according to the amounts due and payable on such
Securities for principal and any premium and interest, respectively;
and
THIRD: To the payment of the remainder, if any, to
the Company or any other Person lawfully entitled thereto.
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;
(2) the Holders of not less than 25% 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
indemnity reasonably satisfactory in form and substance to the Trustee
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 of such 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 of
such Holders, or to obtain or to seek to obtain priority or preference over any
other of such Holders or to enforce any right under this Indenture, except in
the manner herein provided and for the equal and ratable benefit of all of such
Holders.
Section 508. Unconditional Right of Holders to Receive
Principal, Premium and Interest and to Convert. Notwithstanding any other
provision in this Indenture, the Holder of any Security shall have the right,
which is absolute and unconditional, to receive payment of the principal of and
any premium and (subject to Section 307) any interest on such Security on the
Stated Maturity or Maturities expressed in such Security (or, in the case of
redemption, on the Redemption Date) and to convert such Securities in
accordance with the terms thereof and to institute suit for the enforcement of
any such payment or such right of conversion, and such rights shall not be
impaired without the consent of such Holder.
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Section 509. Restoration of Rights and Remedies. If the
Trustee or any Holder has instituted any proceeding to enforce any right or
remedy under this Indenture and such proceeding has been discontinued or
abandoned for any reason, or has been determined adversely to the Trustee or to
such Holder, then and in every such case, subject to any determination in such
proceeding, the Company, the Trustee and the Holders shall be restored
severally and respectively to their former positions hereunder and thereafter
all rights and remedies of the Trustee and the Holders shall continue as though
no such proceeding had been instituted.
Section 510. Rights and Remedies Cumulative. Except as
otherwise provided with respect to the replacement or payment of mutilated,
destroyed, lost or stolen Securities in the last paragraph of Section 306, no
right or remedy 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 Securities 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. Subject to Section 507, every right and remedy given by
this Article 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. With respect to the
Securities of any series, the Holders of not less than a majority in principal
amount of the Outstanding Securities of such 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,
(2) the Trustee shall not determine that the action so
directed would be unjustly prejudicial to the Holders not taking part
in such direction, and
(3) the Trustee may take any other action deemed proper by
the Trustee which is not inconsistent with such direction.
Section 513. Waiver of Past Defaults. The Holders of not less
than a majority in principal amount of the Outstanding Securities 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 any premium or
interest on any Security of such series, or
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(2) in respect of a covenant or provision hereof which under
Article Nine cannot be modified or amended without the consent of the
Holder of each Outstanding Security 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; provided,
however, that neither this Section 514 nor the Trust Indenture Act will be
deemed to authorize any court to require such an undertaking or to make such an
assessment in any suit instituted by the Company or the Trustee.
ARTICLE SIX
The Trustee
Section 601. Certain Duties and Responsibilities. The duties
and responsibilities of the Trustee shall be as provided by the Trust Indenture
Act.
(a) If an Event of Default with respect to Securities of any
series at the time Outstanding 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 its exercise, as a prudent person
would exercise or use under the circumstances in the conduct of his or her own
affairs.
(b) Except during the continuance of an Event of Default:
(1) the Trustee need perform only those duties that are
specifically set forth in this Indenture and no others and no implied
covenants or obligations shall be read into this Indenture against the
Trustee; and
(2) the Trustee may conclusively rely, as to the truth of the
statements and the correctness of the opinions expressed therein, in
the absence of bad faith on its part, upon certificates or opinions
furnished to the Trustee and conforming to the requirements of this
Indenture. The Trustee, however, shall examine such certificates and
opinions to determine whether or not they conform to the requirements
of this Indenture but need not verify the accuracy of the contents
thereof.
(c) The Trustee may not be relieved from liability for its
own negligent action, its own negligent failure to act, or its own wilful
misconduct, except that:
(1) this paragraph does not limit the effect of paragraph (b)
of this Section;
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(2) the Trustee shall not be liable for any error of judgment
made in good faith by a Responsible Officer, unless it is proved that
the Trustee was negligent in ascertaining the pertinent facts; and
(3) the Trustee shall not be liable with respect to any
action it takes or omits to take in good faith in accordance with a
direction received by it pursuant to Section 512.
(d) Every provision of this Indenture that in any way relates
to the Trustee is subject to paragraphs (a), (b) and (c) of this Section.
(e) The Trustee may refuse to perform any duty or exercise
any right or power unless it receives indemnity reasonably satisfactory to it
against any loss, liability or expense.
(f) The Trustee shall not be liable for interest on any money
received by it except as the Trustee may agree in writing with the Company.
Money held in trust by the Trustee need not be segregated from other funds,
except to the extent required by law.
Notwithstanding the foregoing, no provision of this Indenture shall require the
Trustee to expend or risk its own funds or otherwise incur any financial
liability in the performance of any of its duties hereunder, or in the exercise
of any of its rights or powers, if it shall have reasonable grounds for
believing that repayment of such funds or adequate indemnity against such risk
or liability is not reasonably assured to it. Whether or not therein expressly
so provided, every provision of this Indenture relating to the conduct or
affecting the liability of or affording protection to the Trustee shall be
subject to the provisions of this Section.
Section 602. Notice of Defaults. If a default or an Event of
Default occurs and is continuing hereunder with respect to Securities of any
series, and if such default or Event of Default is known to a Responsible
Officer of the Trustee, the Trustee shall mail the Holders of Securities of
such series notice of such default within 90 days after it occurs; provided,
however, that in the case of any default of the character specified in Section
501(4) with respect to Securities of such series, no such notice to Holders
shall be given until at least 30 days after the occurrence thereof. Except in
the case of a default in payment on any Security of any series or in the
payment of any sinking fund installment, the Trustee may withhold notice if and
so long as a trust committee of directors or Responsible Officers of the
Trustee in good faith determines that withholding the notice is in the interest
of Holders of Securities of such series. For the purpose of this Section, the
term "default" means any event which is, or after notice or lapse of time or
both would become, an Event of Default with respect to Securities of such
series.
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;
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(b) any request 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;
(d) the Trustee may consult with counsel and the written
advice of such Counsel or any Opinion of Counsel shall be full and complete
authorization and protection in respect of any action taken, suffered or
omitted by it hereunder in good faith and in reliance thereon;
(e) the Trustee shall be under no obligation to exercise any
of the rights or powers vested in it by this Indenture at the request or
direction of any of the Holders pursuant to this Indenture, unless such Holders
shall have offered to the Trustee security or indemnity reasonably satisfactory
in form and substance to the Trustee against the costs, expenses and
liabilities which might be incurred by it in compliance with such request or
direction;
(f) the Trustee shall not be bound to make any investigation
into the facts or matters stated in any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order, bond,
debenture, note, other evidence of indebtedness or other paper or document, but
the Trustee, in its discretion, may make such further inquiry or investigation
into such facts or matters as it may see fit, and, if the Trustee shall
determine to make such further inquiry or investigation, it shall upon
reasonable notice to the Company be entitled to examine the books, records and
premises of the Company, personally or by agent or attorney at a time and place
acceptable to the Company;
(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 permissive right of the Trustee to take or refrain
from taking any actions enumerated in this Indenture shall not be construed as
a duty and the Trustee shall not be answerable for taking or refraining from
taking such actions other than for its own negligence or willful misconduct; and
(i) the Trustee shall not be liable for any action it takes
or omits to take in good faith which it reasonably believes to be authorized or
within its 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, shall be taken as the statements of
the Company, and the Trustee or any Authenticating Agent assumes no
responsibility for their correctness. The Trustee makes no representations as
to the validity or
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sufficiency of this Indenture or of the Securities. The Trustee or any
Authenticating Agent 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 in writing with the
Company.
Section 607. Compensation and Reimbursement. The Company
agrees
(1) to pay to the Trustee from time to time reasonable
compensation for all services rendered by it hereunder (which
compensation shall not be limited by any provision of law in regard to
the compensation of a trustee of an express trust);
(2) except as otherwise expressly provided herein, to
reimburse the Trustee upon its written 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 reasonable expenses and disbursements of
its agents and outside counsel), except any such expense, disbursement
or advance as may be attributable to its negligence or bad faith; and
(3) to indemnify the Trustee for, and to hold it harmless
against, any loss, liability or expense (including the reasonable fees
and expenses of legal counsel) incurred without negligence or bad
faith on its part, arising out of or in connection with the acceptance
or administration of the trust or trusts and the performance of its
duties hereunder, including the reasonable costs and expenses of
defending itself against any claim or liability in connection with the
exercise or performance of any of its powers or duties hereunder.
To secure the Company's payment obligations under this
Section, the Trustee shall have a lien prior to the Securities on all money or
property of the Company held or collected by the Trustee in its capacity as
Trustee or as Paying Agent hereunder (but not in any other capacity), except
that held in trust to pay principal of (and premium, if any) or interest on
particular Securities.
When the Trustee incurs expenses or renders services after an
Event of Default specified in Section 501(6) or (7) occurs with respect to any
series of Securities, the expenses and the compensation for the services are
intended to constitute expenses of administration under any Federal or State
bankruptcy law or similar law.
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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 Four or Article
Thirteen hereof and the termination of this Indenture.
Section 608. Disqualification; Conflicting Interests. If the
Trustee has or shall acquire any 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. To the extent
permitted by such Act, the Trustee shall not be deemed to have a conflicting
interest by virtue of being a trustee under this Indenture with respect to
Securities of more than one series.
Section 609. Corporate Trustee Required; Eligibility. There
shall at all times be a Trustee hereunder which shall be a Person that is
eligible pursuant to the Trust Indenture Act to act as such and has a combined
capital and surplus of at least $50,000,000 or is a subsidiary of a corporation
which shall be a Person that has a combined capital and surplus of at least
$50,000,000 and which unconditionally and irrevocably guarantees the
obligations of the Trustee hereunder upon terms satisfactory to the Company. If
such Person publishes reports of condition at least annually, pursuant to law
or to the requirements of said supervising or examining authority, then for the
purposes of this Section, the combined capital and surplus of such Person shall
be deemed to be its combined capital and surplus as set forth in its most
recent report of condition so published. If at any time the Trustee shall cease
to be eligible in accordance with the provisions of this Section, it shall
resign immediately in the manner and with the effect hereinafter specified in
this Article.
Section 610. Resignation and Removal; Appointment of
Successor.
(a) No resignation or removal of the Trustee and no
appointment of a successor Trustee pursuant to this Article shall become
effective until the acceptance of appointment by the successor Trustee in
accordance with the applicable requirements of Section 611.
(b) The Trustee may resign at any time with respect to the
Securities of one or more series by giving written notice thereof to the
Company. If the instrument of acceptance by a successor Trustee required by
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 any 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
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(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,
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 itself 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 be 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 or Trustees with respect
to the Securities of that or those series (it being understood that any such
successor Trustee may be appointed with respect to the Securities of one or
more or all of such series and that at any time there shall be only one Trustee
with respect to the Securities of any particular series) and shall comply with
the applicable requirements of Section 611. 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 with respect to the Securities of
such series and to that extent supersede the successor Trustee 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 the manner required by 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 itself 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 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 of Securities of such series 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 such successor Trustee so
appointed shall execute, acknowledge and deliver to the Company and to the
retiring Trustee an instrument accepting such appointment, and thereupon the
resignation or removal of the retiring Trustee shall become effective and such
successor Trustee,
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without any further act, deed or conveyance, shall become vested with all the
rights, powers, trusts and duties of the retiring Trustee; but, on the request
of the Company or the successor Trustee, such retiring Trustee shall, upon
payment of its charges, execute and deliver an instrument transferring to such
successor Trustee all the rights, powers and trusts of the retiring Trustee and
shall duly assign, transfer and deliver to such successor Trustee all property
and money held by such retiring Trustee hereunder, subject 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 such series shall execute and deliver an indenture supplemental
hereto wherein each successor Trustee shall accept such appointment and which
(1) shall contain such provisions as shall be necessary or desirable to
transfer the rights, powers, trust 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 Trustee 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 hereunder with respect to the Securities of that or those
series to which the appointment of such successor Trustee relates.
(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
referred to in paragraphs (a) and (b) of this Section, as the case may be.
(d) No successor 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 such corporation shall be otherwise qualified and eligible under this
Article, without the execution or
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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 with the consent of the Company appoint an Authenticating Agent or Agents
with respect to one or more series of Securities which 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, partial
conversion or partial redemption thereof or pursuant to Section 306, and
Securities so authenticated shall be entitled to the benefits of this Indenture
and shall be valid and obligatory for all purposes as if authenticated by the
Trustee hereunder. Wherever reference is made in this Indenture to the
authentication and delivery of Securities by the Trustee or the Trustee's
certificate of authentication, such reference shall be deemed to include
authentication and delivery on behalf of the Trustee by an Authenticating Agent
and a certificate of authentication executed on behalf of the Trustee by an
Authenticating Agent. Each Authenticating Agent shall be acceptable to the
Company and shall at all times be a corporation organized and doing business
under the laws of the United States of America, any State thereof or the
District of Columbia, authorized under such laws to act as Authenticating
Agent, having a combined capital and surplus of not less than $50,000,000 and
subject to supervision or examination by Federal or State authority. If such
Authenticating Agent publishes reports of condition at least annually, pursuant
to law or to the requirements of said supervising or examining authority, then
for the purposes of this Section, the combined capital and surplus of such
Authenticating Agent shall be deemed to be its combined capital and surplus as
set forth in its most recent report of condition so published. If at any time
an Authenticating Agent shall cease to be eligible in accordance with the
provisions of this Section, such Authenticating Agent shall resign immediately
in the manner and with the effect specified in this Section.
Any corporation into which an Authenticating Agent may be
merged or converted or with which it may be consolidated, or any corporation
resulting from any merger, conversion or consolidation to which such
Authenticating Agent shall be a party, or any corporation succeeding to the
corporate agency or corporate trust business of an Authenticating Agent, shall
continue to be an Authenticating Agent, provided such corporation shall be
otherwise eligible under this Section, without the execution or filing of any
paper or any further act on the part of the Trustee or the Authenticating
Agent.
An Authenticating Agent may resign at any time by giving
written notice thereof to the Trustee and to the Company. The Trustee or the
Company may at any time terminate the agency of an Authenticating Agent by
giving written notice thereof to such Authenticating Agent and to the Company
or the Trustee, as the case may be. Upon receiving such a notice of resignation
or upon
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such a termination, or in case at any time such Authenticating Agent shall
cease to be eligible in accordance with the provisions of this Section, the
Trustee may appoint a successor Authenticating Agent which shall be acceptable
to the Company and shall mail written notice of such appointment by first-class
mail, postage prepaid, to all Holders of Securities of the series with respect
to which such Authenticating Agent will serve, 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.
The Company agrees to pay to each Authenticating Agent from
time to time reasonable compensation for its services under this Section.
If an appointment with respect to one or more series is made
pursuant to this Section, the Securities of such series may have endorsed
thereon, in addition to the Trustee's certificate of authentication, an
alternative certificate of authentication in the following form:
This is one of the Securities of the series designated
therein referred to in the within-mentioned Indenture.
, as
--------------------------
Trustee
By
----------------------------
as Authenticating Agent
By
----------------------------
Authorized Officer
ARTICLE SEVEN
Holders' Lists and Reports by Trustee and Company
Section 701. Company to Furnish Trustee Names and Addresses
of Holders. The Company will furnish or cause to be furnished to the Trustee
(a) semi-annually, not later than 10 days after each
Regular Record Date in each year, a list for each series of
Securities, in such form as the Trustee may reasonably require, of the
names and addresses of the Holders of Securities of such series as of
the preceding 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;
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provided, however, that if and so long as the Trustee shall be the Security
Registrar for the Securities of a series, no such list need be furnished with
respect to such series of Securities.
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 the Holders to communicate with
other Holders with respect to their rights under this Indenture or
under the Securities, and the corresponding rights and privileges 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
names and addresses of Holders made pursuant to the Trust Indenture
Act or other applicable law.
Section 703. Reports by Trustee. (a) The Trustee shall
transmit to Holders such reports concerning the Trustee and its actions under
this Indenture as may be required pursuant to the Trust Indenture Act at the
times and in the manner provided pursuant thereto. To the extent that any such
report is required by the Trust Indenture Act with respect to any 12 month
period, such report shall cover the 12 month period ending July 15 and shall be
transmitted by the next succeeding September 15.
(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 any Securities are listed, with the Commission and
with the Company. The Company will notify the Trustee when any
Securities are listed on any stock exchange.
Section 704. Reports by Company. The Company shall file with
the Trustee and the Commission, and transmit to Holders, such information,
documents and other reports, and such summaries thereof, as may be required
pursuant to the Trust Indenture Act at the times and in the manner provided
pursuant to such Act. Any information, documents or reports required to be
filed by the Company 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, or Sale of Assets
Section 801. Company May Consolidate, Etc. Only on Certain
Terms. The Company shall not consolidate with or merge into any other Person or
sell its properties and assets as, or
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substantially as, an entirety to any Person, and the Company shall not permit
any Person to consolidate with or merge into the Company, unless:
(1) the Company will be the surviving or resulting entity or,
in case the Company shall consolidate with or merge into another Person
or sell its properties and assets as, or substantially as, an entirety
to any Person, the Person formed by such consolidation or into which
the Company is merged or the Person which purchases the properties and
assets of the Company as, or substantially as, an entirety shall be a
corporation, partnership or trust, shall be organized and validly
existing under the laws of the United States of America, any State
thereof or the District of Columbia and shall expressly assume, by an
indenture supplemental hereto, executed and delivered to the Trustee,
in form reasonably satisfactory to the Trustee, all of the obligations
of the Company under the Securities and the Indenture and the
conversion rights, if any, shall be provided for in accordance with
Article Twelve, by supplemental indenture reasonably satisfactory in
form to the Trustee, executed and delivered to the Trustee, by the
Person (if other than the Company) formed by such consolidation or into
which the Company shall have been merged or by the Person which shall
have acquired the Company's assets;
(2) immediately after giving effect to such transaction, no
Event of Default shall have happened and be continuing; and
(3) the Company has delivered to the Trustee an Officers'
Certificate and an Opinion of Counsel, each stating that such
consolidation, merger or sale and, if a supplemental indenture is
required in connection with such transaction, such supplemental
indenture comply with this Article and that all conditions precedent
herein provided for relating to such transaction have been complied
with.
Section 802. Successor Substituted. Upon any consolidation of
the Company with, or merger of the Company into, any other Person or any sale
of the properties and assets of the Company as, or substantially as, an
entirety in accordance with Section 801, the successor Person formed by such
consolidation or into which the Company is merged or to which such sale is made
shall succeed to, and be substituted for, and may exercise every right and
power of, the Company under this Indenture with the same effect as if such
successor Person had been named as the Company herein, and thereafter, the
predecessor Person shall be relieved of all obligations and covenants under
this Indenture and the Securities.
ARTICLE NINE
Supplemental Indentures
Section 901. Supplemental Indentures Without Consent of
Holders. Without the consent of any Holders, the Company, when authorized by a
Board Resolution, and the Trustee, at any time and from time to time, may enter
into one or more indentures supplemental hereto, in form reasonably
satisfactory to the Trustee, for any of the following purposes:
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(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 additional
Events of Default are to be for the benefit of less than all series of
Securities, stating that such additional Events of Default are
expressly being included solely for the benefit of such series); or
(4) to add to or change any of the provisions of this
Indenture to such extent as shall be necessary to permit or facilitate
the issuance of Securities in bearer form, registrable or not
registrable as to principal, and with or without interest coupons, or
to permit or facilitate the issuance of Securities in uncertificated
form; or
(5) to add to or change any of the provisions of this
Indenture to such extent as shall be neccessary to permit or facilitate
the issuance of Securities of any series denominated in one or more
foreign currencies, currency units or composite currencies;
(6) to add to, change or eliminate any of the provisions of
this Indenture in respect of one or more series of Securities; provided
that any such addition, change or elimination (i) shall neither (A)
apply to any Security of any series created prior to the execution of
such supplemental indenture and entitled to the benefit of such
provision nor (B) modify the rights of the Holder of any such Security
with respect to such provision or (ii) shall become effective only
when there is no such Security Outstanding; or
(7) to secure the Securities of any series; or
(8) to establish the form or terms of Securities of any series
as permitted by Sections 201 and 301; or
(9) to evidence and provide for the acceptance of appointment
hereunder 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,
pursuant to the requirements of Section 611(b); or
(10) to cure any ambiguity, to correct or supplement any
provision herein which may be inconsistent with any other provision
herein, or to make any other provisions with respect to matters or
questions arising under this Indenture; provided that such action
pursuant to this clause shall not adversely affect the interests of the
Holders of Securities of any series in any material respect; or
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(11) to make provision with respect to the
conversion rights of Holders pursuant to the requirements of Article
Twelve, including providing for the conversion of the Securities into
any security (other than the Common Stock of the Company) or property
of the Company; or
(12) to conform to any mandatory provisions of law.
Section 902. Supplemental Indentures With Consent of Holders.
With the consent of the Holders of not less than a majority of principal amount
of the Outstanding Securities of each series affected by such supplemental
indenture, by Act of said Holders delivered to the Company and the Trustee, the
Company, when authorized by a Board Resolution, and the Trustee may enter into
an indenture or indentures supplemental hereto for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions of
this Indenture or of modifying in any manner the rights of the Holders of
Securities of such series under this Indenture; provided, however, 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 principal of or interest on, any Security, or reduce
the principal amount thereof or the rate of interest thereon
(including any change in the Floating or Adjustable Rate Provision
pursuant to which such rate is determined that would reduce such rate
for any period) or any premium payable upon the redemption thereof, or
reduce the amount of the principal of an Original Issue Discount
Security that would be due and payable upon a declaration of
acceleration of the Maturity thereof pursuant to Section 502, or
change any 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, in the case of redemption,
on or after the Redemption Date); provided, however, that with the
consent of the Holders of not less than 75% of the Outstanding
Securities of any series affected, the Company may postpone any
interest payment in respect of such series for a period not to exceed
three years, 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 (of compliance with certain
provisions of this Indenture or certain defaults hereunder and their
consequences) provided for in this Indenture, or
(3) if applicable, make any change that adversely affects the
right to convert any Security to which the provisions of Article
Twelve are applicable or, except as provided in this Indenture,
decrease the conversion rate or increase the conversion price of any
Security, or
(4) modify any of the provisions of this Section,
Section 513 or Section 908, 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
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Security affected thereby; provided, however, that this clause shall
not be deemed to require the consent of any Holder with respect to
changes in the references to "the Trustee" and concomitant changes in
this Section and Section 908, or the deletion of this proviso, in
accordance with the requirements of Sections 611(b) and 901(9).
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.
It shall not be necessary for any Act of Holders under this
Section to approve the particular form of any proposed supplemental indenture,
but it shall be sufficient if such Act shall approve the substance thereof.
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, in addition
to the documents required by Section 102, an Opinion of Counsel stating that
the execution of such supplemental indenture is authorized or permitted by this
Indenture and, with respect to supplemental indentures under Section 902
hereof, evidence of the consents of Holders required in connection therewith.
The Trustee may, but shall not be obligated to, enter into any such
supplemental indenture which affects the Trustee's own rights, duties or
immunities under this Indenture or otherwise.
Section 904. Effect of Supplemental Indentures. Upon the
execution of any supplemental indenture under this Article, 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.
Section 905. Revocation and Effect of Consents. Until an
amendment or supplement under this Article or a waiver under this Article
becomes effective, a consent to it by a Holder of a Security is a continuing
consent by the Holder and every subsequent Holder of a Security or portion of a
Security that evidences the same debt as the consenting Holder's Security, even
if notation of the consent is not made on any Security. However, any such
Holder or subsequent Holder may revoke the consent as to his Security or
portion of a Security if the Trustee receives the notice of revocation before
the date the amendment, supplement or waiver becomes effective.
After an amendment or supplement becomes effective, it shall
bind every Holder.
Section 906. Conformity with Trust Indenture Act. Every
supplemental indenture executed pursuant to this Article shall conform to the
requirements of the Trust Indenture Act.
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Section 907. Reference in Securities to Supplemental
Indentures. Securities of any series authenticated and delivered after the
execution of any supplemental indenture pursuant to this Article 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.
Section 908. Waiver of Compliance by Holders. Anything in
this Indenture to the contrary notwithstanding, any of the acts which the
Company is required to do, or is prohibited from doing, by any of the
provisions of this Indenture may, to the extent that such provisions might be
changed or eliminated by a supplemental indenture pursuant to Section 902 upon
consent of Holders of not less than a majority in aggregate principal amount of
the then Outstanding Securities of the series affected, be omitted or done by
the Company, if there is obtained the prior consent or waiver of the Holders of
at least a majority in aggregate principal amount of the then Outstanding
Securities of such series.
Section 909. Notice of Supplemental Indenture. Promptly after
the execution by Company and the Trustees of any supplemental indenture
pursuant to the provisions of Section 902, the Company shall give notice
thereof to the Holders of each Outstanding Security affected, in the manner
provided for in the Section 106, setting forth in general terms the substance
of such supplemental indenture.
ARTICLE TEN
Covenants
Section 1001. Payment of Principal, Premium and Interest. The
Company covenants and agrees for the benefit of each series of Securities that
it will duly and punctually pay or cause to be paid the principal of and any
premium and interest on the Securities of that series in accordance with the
terms of the Securities and this Indenture.
Section 1002. Maintenance of Office or Agency. So long as any
Securities are Outstanding, the Company will maintain in each Place of Payment
for any series of Securities an office or agency where Securities of that
series may be presented or surrendered for payment, where Securities of that
series may be surrendered for registration of transfer or exchange, where
Securities of that series may be surrendered for conversion and where notices
and demands to or upon the Company in respect of the Securities of that series
and this Indenture may be served. The Company will 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.
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The Company may also from time to time designate one or more
other offices or agencies 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, however, that no such designation or
rescission shall in any manner relieve the Company of its obligation to
maintain an office or agency in each Place of Payment for Securities of any
series for such purposes. The Company will 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.
Section 1003. Money for Securities 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 Securities, it will, on or before each due date of the
principal of or any premium 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 any premium and interest so
becoming due until such sums shall be paid to such Persons or otherwise
disposed of as herein provided and will 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 of Securities, it will, prior to each due date of the principal of
or any premium or interest on any Securities of that series, deposit with a
Paying Agent a sum sufficient to pay such amount, such sum to be held as
provided by the Trust Indenture Act, and (unless such Paying Agent is the
Trustee) the Company will promptly notify the Trustee of its action or failure
so to act.
The Company will cause each Paying Agent for any series of
Securities other than the Trustee to execute and deliver to the Trustee an
instrument in which such Paying Agent shall agree with the Trustee, subject to
the provisions of this Section, that such Paying Agent will (i) comply with the
provisions of the Trust Indenture Act applicable to it as a Paying Agent and
(ii) during the continuance of any default by the Company (or any other obligor
upon the Securities of that series) in the making of any payment in respect of
the Securities of that series, and upon the written request of the Trustee,
forthwith pay to the Trustee all sums held in trust by such Paying Agent for
payment in respect of the Securities of that series.
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.
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 or any
premium or interest on any Security of any series and remaining unclaimed for
two years after such principal, premium or interest has become due and payable
shall be paid to the Company on Company Request, or (if then held by the
Company) shall be discharged from such trust; and the Holder of such Security
shall thereafter, as an unsecured general creditor, look only to the Company
for payment thereof, and all liability of the Trustee or such Paying Agent with
respect to such trust money, and all liability of the Company
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as trustee thereof, shall thereupon cease; provided, however, that the Trustee
or such Paying Agent, before being required to make any such repayment, may at
the request and 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 Borough of Manhattan, the City
of New York, notice that such money remains unclaimed and that, after a date
specified therein, which shall not be less than 30 days from the date of such
publication, any unclaimed balance of such money then remaining will be repaid
to the Company.
Section 1004. Statement by Officers as to Compliance. The
Company will deliver to the Trustee within 120 days after the end of each
fiscal year of the Company ending after the date hereof, a certificate signed
by the Company's principal executive officer, principal financial officer or
principal accounting officer stating to the best knowledge of the signer
thereof whether or not the Company has complied during such immediately
preceding fiscal year with and is in compliance with all terms, conditions and
covenants of this Indenture (without regard to any period of grace or
requirement of notice provided hereunder) and if the signer has obtained
knowledge of any continuing default by the Company in the performance,
observation or fulfillment of any such term, condition or covenant, specifying
each such default and the nature thereof.
ARTICLE ELEVEN
Redemption of Securities
Section 1101. Applicability of Article. Securities of any
series which are redeemable before their Stated Maturity shall be redeemable in
accordance with their terms and (except as otherwise specified as contemplated
by Section 301 for Securities of any series) in accordance with this Article.
Section 1102. Election to Redeem; Notice to Trustee. In case
of any redemption at the election of the Company 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
reasonably satisfactory to the Trustee), notify the Trustee of such Redemption
Date, of the principal amount of Securities of such series to be redeemed, the
specific provision of the Securities of such series pursuant to which such
Securities being called for redemption are being redeemed and, if applicable,
of the tenor of the Securities to be redeemed. In the case of any redemption of
Securities prior to the expiration of any restriction on such redemption
provided in the terms of such Securities or elsewhere in this Indenture, the
Company shall furnish the Trustee with an Officers' Certificate evidencing
compliance with such restriction.
Section 1103. Selection by Trustee of Securities to Be
Redeemed. If less than all the Securities of any series are to be redeemed
(unless all of the Securities of such series and of a specified tenor are to be
redeemed), the particular Securities to be redeemed shall be selected not more
than 45 days prior to the Redemption Date by the Trustee, from the Outstanding
Securities of such series not previously called for redemption, by such method
as the Trustee shall deem fair and appropriate and which may provide for the
selection for redemption of portions (equal to the minimum authorized
denomination for Securities of that series or any integral multiple thereof) of
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the principal amount of Securities of such series of a denomination larger than
the minimum authorized denomination for Securities of that series. If less than
all of the Securities of such series and of a specified tenor are to be
redeemed, the particular Securities to be redeemed shall be selected not more
than 45 days prior to the Redemption Date by the Trustee, from the Outstanding
Securities of such series and specified tenor not previously called for
redemption in accordance with the preceding sentence.
If any Security selected for partial redemption is converted
in part before termination of the conversion right with respect to the portion
of the Security so selected, the converted portion of such Security shall be
deemed (so far as may be) to be the portion selected for redemption. Securities
which have been converted during a selection of Securities to be redeemed shall
be treated by the Trustee as Outstanding for the purpose of such selection.
The Trustee shall promptly notify the Company 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, unless the context
otherwise requires, all provisions relating to the redemption of Securities
shall relate, in the case of any Securities redeemed or to be redeemed only in
part, to the portion of the principal amount of such Securities which has been
or is to be redeemed.
Section 1104. Notice of Redemption. Notice of redemption
shall be given by first-class mail, postage prepaid, mailed not less than 30
nor more than 60 days prior to the Redemption Date, to each Holder of
Securities to be redeemed, at its address appearing in the Security Register.
All notices of redemption shall state:
(1) the Redemption Date,
(2) the Redemption Price and the amount, if any, of any
accrued and unpaid interest payable on the Redemption Date,
(3) if less than all the Outstanding Securities of any series
are to be redeemed, the identification (and, in the case of partial
redemption of any Securities, the principal amounts) of the particular
Securities to be redeemed,
(4) that on the Redemption Date the Redemption Price will
become due and payable upon each such Security to be redeemed and, if
applicable, that interest thereon will cease to accrue on and after
said date,
(5) if applicable, the conversion price, and that the date on
which the right to convert the principal of the Securities or the
portions thereof to be redeemed will terminate will be the Redemption
Date and the place or places where such Securities may be surrendered
for conversion,
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(6) the place or places where such Securities are to be
surrendered for payment of the Redemption Price, and
(7) that the redemption is for a sinking fund, if such is the
case.
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.
Section 1105. 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
Payment Date) accrued interest on, all the Securities which are to be redeemed
on that date, other than any Securities called for redemption on that date
which have been converted prior to the date of such deposit.
If any Security or portion thereof called for redemption is
converted, any money deposited with the Trustee or with any Paying Agent or so
segregated and held in trust for the redemption of such Security or portion
thereof shall (subject to any right of the Holder of such Security or any
Predecessor Security to receive interest as provided in the last paragraph of
Section 307) be paid to the Company upon Company Request or, if then held by
the Company, shall be discharged from such trust.
Section 1106. 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 accrued interest) such
Securities shall cease to bear interest. Upon surrender of any such Security
for redemption in accordance with said notice, such Security shall be paid by
the Company at the Redemption Price, together with accrued interest to the
Redemption Date; provided, however, that, unless otherwise specified as
contemplated by Section 301, installments of interest whose Stated Maturity is
on or prior to the Redemption Date shall be payable to the Holders of such
Securities, or one or more Predecessor Securities, registered as such at the
close of business on the relevant Record Dates according to their terms and the
provisions of Section 307.
If any Security called for redemption shall not be so paid
upon surrender thereof for redemption, the principal and any premium shall,
until paid, bear interest from the Redemption Date at the rate prescribed
therefor in the Security.
Section 1107. Securities Redeemed in Part. Any Security which
is to be redeemed only in part shall be surrendered at a Place of Payment
therefor (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
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Holder of such Security without service charge, a new Security or Securities of
the same series and of like tenor, of any authorized denomination as requested
by such Holder, in aggregate principal amount equal to and in exchange for the
unredeemed portion of the principal of the Security so surrendered.
ARTICLE TWELVE
Conversion of Securities
Section 1201. Applicability of Article. The provisions of
this Article shall be applicable to the Securities of any series which are
convertible into shares of Common Stock of the Company, and the issuance of
such shares of Common Stock upon the conversion of such Securities, except as
otherwise specified as contemplated by Section 301 for the Securities of such
series.
Section 1202. Exercise of Conversion Privilege. In order to
exercise a conversion privilege, the Holder of a Security of a series with such
a privilege shall surrender such Security to the Company at the office or
agency maintained for that purpose pursuant to Section 1002, accompanied by
written notice to the Company that the Holder elects to convert such Security
or a specified portion thereof. Such notice shall also state, if different from
the name and address of such Holder, the name or names (with address) in which
the certificate or certificates for shares of Common Stock which shall be
issuable on such conversion shall be issued. Securities surrendered for
conversion shall (if so required by the Company or the Trustee) be duly
endorsed by or accompanied by instruments of transfer in forms satisfactory to
the Company and the Trustee duly executed by the registered Holder or its
attorney duly authorized in writing; and Securities so surrendered for
conversion during the period from the close of business on any Regular Record
Date to the opening of business on the next succeeding Interest Payment Date
(excluding Securities or portions thereof called for redemption during such
period) shall also be accompanied by payment of an amount equal to the interest
payable on such Interest Payment Date on the principal amount of such Security
then being converted, and such interest shall be payable to such registered
Holder notwithstanding the conversion of such Security, subject to the
provisions of Section 307 relating to the payment of Defaulted Interest by the
Company. As promptly as practicable after the receipt of such notice and of any
payment required pursuant to a Board Resolution and, subject to Section 303,
set forth, or determined in the manner provided, in an Officers' Certificate,
or established in one or more indentures supplemental hereto setting forth the
terms of such series of Security, and the surrender of such Security in
accordance with such reasonable procedures as the Company may prescribe, the
Company shall issue and shall deliver, at the office or agency at which such
Security is surrendered, to such Holder or on its written order, a certificate
or certificates for the number of full shares of Common Stock issuable upon the
conversion of such Security (or specified portion thereof), in accordance with
the provisions of such Board Resolution, Officers' Certificate or supplemental
indenture, and cash as provided therein in respect of any fractional share of
such Common Stock otherwise issuable upon such conversion. Such conversion
shall be deemed to have been effected immediately prior to the close of
business on the date on which such notice and such payment, if required, shall
have been received in proper order for conversion by the Company and such
Security shall have been surrendered as aforesaid (unless such Holder shall
have so
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surrendered such Security and shall have instructed the Company to effect the
conversion on a particular date following such surrender and such Holder shall
be entitled to convert such Security on such date, in which case such
conversion shall be deemed to be effected immediately prior to the close of
business on such date) and at such time the rights of the Holder of such
Security as such Security Holder shall cease and the person or persons in whose
name or names any certificate or certificates for shares of Common Stock of the
Company shall be issuable upon such conversion shall be deemed to have become
the Holder or Holders of record of the shares represented thereby. Except as
set forth above and subject to the final paragraph of Section 307, no payment
or adjustment shall be made upon any conversion on account of any interest
accrued on the Securities surrendered for conversion or on account of any
dividends on the Common Stock of the Company issued upon such conversion.
In the case of any Security which is converted in part only,
upon such conversion the Company shall execute and the Trustee shall
authenticate and deliver to or on the order of the Holder thereof, at the
expense of the Company, a new Security or Securities of the same series, of
authorized denominations, in aggregate principal amount equal to the
unconverted portion of such Security.
Section 1203. No Fractional Shares. No fractional share of
Common Stock of the Company shall be issued upon conversions of Securities of
any series. If more than one Security shall be surrendered for conversion at
one time by the same Holder, the number of full shares which shall be issuable
upon conversion shall be computed on the basis of the aggregate principal
amount of the Securities (or specified portions thereof to the extent permitted
hereby) so surrendered. If, except for the provisions of this Section 1203, any
Holder of a Security or Securities would be entitled to a fractional share of
Common Stock of the Company upon the conversion of such Security or Securities,
or specified portions thereof, the Company shall pay to such Holder an amount
in cash equal to the current market value of such fractional share computed,
(i) if such Common Stock is listed or admitted to unlisted trading privileges
on a national securities exchange, on the basis of the last reported sale price
regular way on such exchange on the last trading day prior to the date of
conversion upon which such a sale shall have been effected, or (ii) if such
Common Stock is not at the time so listed or admitted to unlisted trading
privileges on a national securities exchange, on the basis of the average of
the bid and asked prices of such Common Stock in the over-the-counter market,
on the last trading day prior to the date of conversion, as reported by the
National Quotation Bureau, Incorporated or similar organization if the National
Quotation Bureau, Incorporated is no longer reporting such information, or if
not so available, the fair market price as determined by the Board of
Directors. For purposes of this Section, "trading day" shall mean each Monday,
Tuesday, Wednesday, Thursday and Friday other than any day an which the Common
Stock is not traded on the New York Stock Exchange, or if the Common Stock is
not traded on the New York Stock Exchange, on the principal exchange or market
on which the Common Stock is traded or quoted.
Section 1204. Adjustment of Conversion Price. The conversion
price of Securities of any series that is convertible into Common Stock of the
Company shall be adjusted for any stock dividends, stock splits,
reclassification, combinations or similar transactions in accordance with the
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term of the supplemental indenture or Board Resolutions setting forth the terms
of the Securities of such series.
Whenever the conversion price is adjusted, the Company shall
compute the adjusted conversion price in accordance with terms of the
applicable Board Resolution or supplemental indenture and shall prepare an
Officers' Certificate setting forth the adjusted conversion price and showing
in reasonable detail the facts upon which such adjustment is based, and such
certificate shall forthwith be filed at each office or agency maintained for
the purpose of conversion of Securities pursuant to Section 1002 and, if
different, with the Trustee. The Company shall forthwith cause a notice setting
forth the adjusted conversion price to be mailed, first class postage prepaid,
to each Holder of Securities of such series at its address appearing on the
Security Register and to any conversion agent other than the Trustee.
Section 1205. Notice of Certain Corporate Actions. In case:
(a) the Company shall declare a dividend (or any other
distribution) on its Common Stock payable otherwise than in cash out
of its retained earnings (other than a dividend for which approval of
any stockholders of the Company is required); or
(b) the Company shall authorize the granting to the holders
of its Common Stock of rights, options or warrants to subscribe for or
purchase any shares of capital stock of any class or of any other
rights (other than any such grant for which approval of any
stockholders of the Company is required); or
(c) of any reclassification of the Common Stock of the
Company (other than a subdivision or combination of its outstanding
shares of Common Stock, or of any consolidation, merger or share
exchange to which the Company is a party and for which approval of any
stockholders of the Company is required), or of the sale of all
or substantially all of the assets of the Company; or
(d) of the voluntary or involuntary dissolution, liquidation or
winding up of the Company;
then the Company shall cause to be filed with the Trustee, and shall cause to
be mailed to all Holders at their last addresses as they shall appear in the
Securities Register, at least 20 days (or 10 days in any case specified in
clause (a) or (b) above) prior to the applicable record date hereinafter
specified, a notice stating (i) the date on which a record is to be taken for
the purpose of such dividend, distribution, rights, options or warrants, or, if
a record is not to be taken, the date as of which the holders of Common Stock
of record to be entitled to such dividend, distribution, rights, options or
warrants are to be determined, or (ii) the date on which such reclassification,
consolidation, merger, share exchange, sale, dissolution, liquidation or
winding up is expected to become effective, and the date as of which it is
expected that holders of Common Stock of record shall be entitled to exchange
their shares of Common Stock for securities, cash or other property deliverable
upon such reclassification, consolidation, merger, share exchange, sale,
dissolution,
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liquidation or winding up. If at any time the Trustee shall not be the
conversion agent, a copy of such notice shall also forthwith be filed by the
Company with the Trustee.
Section 1206. Reservation of Shares of Common Stock. The
Company shall at all times reserve and keep available, free from preemptive
rights, out of its authorized but unissued Common Stock, for the purpose of
effecting the conversion of Securities, the full number of shares of Common
Stock of the Company then issuable upon the conversion of all outstanding
Securities of any series that has conversion rights.
Section 1207. Payment of Certain Taxes Upon Conversion. The
Company will pay any and all taxes that may be payable in respect of the issue
or delivery of shares of its Common Stock on conversion of Securities pursuant
hereto. The Company shall not, however, be required to pay any tax which may be
payable in respect of any transfer involved in the issue and delivery of shares
of its Common Stock in a name other than that of the Holder of the Security or
Securities to be converted, and no such issue or delivery shall be made unless
and until the Person requesting such issue has paid to the Company the amount
of any such tax, or has established, to the satisfaction of the Company, that
such tax has been paid.
Section 1208. Nonassessability. The Company covenants that
all shares of its Common Stock which may be issued upon conversion of
Securities will upon issue in accordance with the terms hereof be duly and
validly issued and fully paid and nonassessable.
Section 1209. Effect of Consolidation or Merger on Conversion
Privilege. In case of any consolidation of the Company with, or merger of the
Company into or with any other Person, or in case of any sale of all or
substantially all of the assets of the Company, the Company or the Person
formed by such consolidation or the Person into which the Company shall have
been merged or the Person which shall have acquired such assets, as the case
may be, shall execute and deliver to the Trustee a supplemental indenture in
accordance with Section 801 providing that the Holder of each Security then
outstanding of any series that is convertible into Common Stock of the Company
shall have the right, which right shall be the exclusive conversion right
thereafter available to said Holder (until the expiration of the conversion
right of such Security), to convert such Security into the kind and amount of
shares of stock or other securities or property (including cash) receivable
upon such consolidation, merger or sale by a holder of the number of shares of
Common Stock of the Company into which such Security might have been converted
immediately prior to such consolidation, merger or sale, subject to compliance
with the other provisions of this Indenture, such Security and such
supplemental indenture. Such supplemental indenture shall provide for
adjustments which shall be as nearly equivalent as may be practicable to the
adjustments provided for in such Security. The above provisions of this Section
shall similarly apply to successive consolidations, mergers or sales. It is
expressly agreed and understood that anything in this Indenture to the contrary
notwithstanding, if, pursuant to such merger, consolidation or sale, holders of
outstanding shares of Common Stock of the Company do not receive shares of
common stock of the surviving corporation but receive other securities, cash or
other property or any combination thereof, Holders of Securities shall not have
the right to thereafter convert their Securities into common stock of the
surviving corporation or the corporation which shall have acquired such assets,
but rather, shall have the right upon such conversion to receive the other
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securities, cash or other property receivable by a holder of the number of
shares of Common Stock of the Company into which the Securities held by such
holder might have been converted immediately prior to such consolidation,
merger or sale, all as more fully provided in the first sentence of this
Section 1209. Anything in this Section 1209 to the contrary notwithstanding,
the provisions of this Section 1209 shall not apply to a merger or
consolidation of another corporation with or into the Company pursuant to which
both of the following conditions are applicable: (i) the Company is the
surviving corporation and (ii) the outstanding shares of Common Stock of the
Company are not changed or converted into any other securities or property
(including cash) or changed in number or character or reclassified pursuant to
the terms of such merger or consolidation.
As evidence of the kind and amount of shares of stock or
other securities or property (including cash) into which Securities may
properly be convertible after any such consolidation, merger or sale, or as to
the appropriate adjustments of the conversion prices applicable with respect
thereto, the Trustee shall be furnished with and may accept the certificate or
opinion of an independent certified public accountant with respect thereto;
and, in the absence of bad faith on the part of the Trustee, the Trustee may
conclusively rely thereon, and shall not be responsible or accountable to any
Holder of Securities for any provision in conformity therewith or approved by
such independent certified accountant which may be contained in said
supplemental indenture.
Section 1210. Duties of Trustee Regarding Conversion. Neither
the Trustee nor any conversion agent shall at any time be under any duty or
responsibility to any Holder of Securities of any series that is convertible
into Common Stock of the Company to determine whether any facts exist which may
require any adjustment of the conversion price, or with respect to the nature
or extent of any such adjustment when made, or with respect to the method
employed, whether herein or in any supplemental indenture, any resolutions of
the Board of Directors or written instrument executed by one or more officers
of the Company provided to be employed in making the same. Neither the Trustee
nor any conversion agent shall be accountable with respect to the validity or
value (or the kind or amount) of any shares of Common Stock of the Company, or
of any securities or property, which may at any time be issued or delivered
upon the conversion of any Securities and neither the Trustee nor any
conversion agent makes any representation with respect thereto. Subject to the
provisions of Section 601, neither the Trustee nor any conversion agent shall
be responsible for any failure of the Company to issue, transfer or deliver any
shares of its Common Stock or stock certificates or other securities or
property upon the surrender of any Security for the purpose of conversion or to
comply with any of the covenants of the Company contained in this Article
Twelve or in the applicable supplemental indenture, resolutions of the Board of
Directors or written instrument executed by one or more duly authorized
officers of the Company.
Section 1211. Repayment of Certain Funds Upon Conversion. Any
funds which at any time shall have been deposited by the Company or on its
behalf with the Trustee or any other paying agent for the purpose of paying the
principal of, and premium, if any, and interest, if any, on any of the
Securities (including funds deposited for the sinking fund referred to in
Article Three hereof) and which shall not be required for such purposes because
of the conversion of such Securities as provided in this Article Twelve shall
after such conversion be repaid to the Company by the Trustee upon the
Company's written request by Company Request.
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ARTICLE THIRTEEN
Defeasance and Covenant Defeasance
Section 1301. Company's Option to Effect Defeasance or
Covenant Defeasance. The Company may elect, at any time, to have either Section
1302 or Section 1303 applied to the Outstanding Securities of any series, upon
compliance with the conditions set forth below in this Article Thirteen.
Section 1302. Defeasance and Discharge. Upon the Company's
exercise of the option provided in Section 1301 to have this Section 1302
applied to the Outstanding Securities of any series, the Company shall be
deemed to have been discharged from its obligations, with respect to the
Outstanding Securities of such series as provided in this Section on and after
the date the conditions set forth in Section 1304 are satisfied (hereinafter
called "Defeasance"). For this purpose, such Defeasance means that the Company
shall be deemed to have paid and discharged the entire indebtedness represented
by the Outstanding Securities of such series and to have satisfied all its
other obligations under the Securities of such series and this Indenture
insofar as the Securities of such series 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 Securities of such series
to receive, solely from the trust fund described in Section 1304 and as more
fully set forth in such Section, payments in respect of the principal of and
any premium and interest on such Securities of such series when payments are
due, (2) the Company's obligations with respect to the Securities of such
series under Sections 304, 305, 306, 1002 and 1003, (3) the rights, powers,
trusts, duties and immunities of the Trustee hereunder, including, without
limitation, its rights under Section 607 and (4) this Article Thirteen. Subject
to compliance with this Article Thirteen, the Company may exercise its option
provided in Section 1301 to have this Section 1302 applied to the Outstanding
Securities of any series notwithstanding the prior exercise of its option
provided in Section 1301 to have Section 1303 applied to the Outstanding
Securities of such series.
Section 1303. Covenant Defeasance. Upon the Company's
exercise of the option provided in Section 1301 to have this Section 1303
applied to the Outstanding Securities of any series, (1) the Company shall be
released from its obligations under Section 801 and (2) the occurrence of any
event specified in Sections 501(3), 501(4) (with respect to Section 801) and
501(5) shall be deemed not to be or result in an Event of Default, in each case
with respect to the Outstanding Securities of such series as provided in this
Section on and after the date the conditions set forth in Section 1304 are
satisfied (hereinafter called "Covenant Defeasance"). For this purpose, such
Covenant Defeasance means that 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 Section
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 the Securities of such series shall be unaffected thereby.
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<PAGE> 73
Section 1304. Conditions to Defeasance or Covenant
Defeasance. The following shall be the conditions to application of either
Section 1302 or Section 1303 to the Outstanding Securities of any series:
(1) The Company shall elect by Board Resolution to effect a
Defeasance pursuant to Section 1302 or a Covenant Defeasance pursuant
to Section 1303 with respect to the Outstanding Securities of any
series specified in such Board Resolution (the "Defeasible Series").
(2) 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 Thirteen 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
benefit of the Holders of Outstanding Securities of such series, (i)
money in an amount, or (ii) U.S. Government Obligations that through
the scheduled payment of principal and interest in respect thereof in
accordance with their terms will provide, not later than one day
before the due date of any payment, money in an amount, or (iii) 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 and
any premium and interest on the Securities of such series on the
respective Stated Maturities, in accordance with the terms of this
Indenture and the Securities of such series. As used herein, "U.S.
Government Obligation" means (x) any security that is (i) a direct
obligation of the United States of America for the payment of which
full faith and credit of the United States of America is pledged or
(ii) an obligation of a Person controlled or supervised by and acting
as an agency or instrumentality for the United States of America the
payment of which is unconditionally guaranteed as a full faith and
credit obligation by the United States of America, which, in either
case (i) or (ii), is not callable or redeemable at the option of the
issuer thereof, and (y) any depositary receipt issued by a bank (as
defined in Section 3(a)(2) of the Securities Act of 1933, as amended)
as custodian with respect to any specific payment of principal of or
interest on any such U.S. Government Obligation specified in Clause
(x) and held by such custodian for the account of the holder of such
depositary receipt, or with respect to any specific payment of
principal of or interest on any such U.S. Government Obligation;
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 principal or interest evidenced by such depositary receipt.
(3) In the case of an election under Section 1302, the
Company shall have delivered to the Trustee an Opinion of Counsel
stating that (i) the Company has received from, or there has been
published by, the Internal Revenue Service, a ruling or (ii) since the
date hereof, there has been a change in the applicable Federal income
tax law, in case of either (i) or (ii) to the effect that, and based
thereon such opinion shall confirm that, the Holders
- 64 -
<PAGE> 74
of such Securities will not recognize gain or loss for Federal income
tax purposes as a result of the deposit, Defeasance and discharge to
be effected with respect to the Securities of such series and will 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, Defeasance
and discharge were not to occur.
(4) In the case of an election under Section 1303, the
Company shall have delivered to the Trustee an Opinion of Counsel to
the effect that the Holder of the Outstanding Securities of such
series will not recognize gain or loss for Federal income tax purposes
as result of the deposit and Covenant Defeasance to be effected with
respect to the Securities of such series and will 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.
(5) The Company shall have delivered to the Trustee an
Officers' Certificate to the effect that the Securities of such
series, if then listed on any securities exchange, will not be
delisted as a result of such deposit.
(6) No Event of Default or event that (after notice or lapse
of time or both) would become an Event of Default shall have occurred
and be continuing at the time of such deposit or, with regard to any
Event of Default or any such event specified in Sections 501(6) and
501(7), at any time on or prior to the 90th day after the date of such
deposit (it being understood that this condition shall not be deemed
satisfied until after such 90th day).
(7) The Company shall have delivered to the Trustee an
Officer's Certificate and an Opinion of Counsel, each stating that all
conditions precedent with respect to such Defeasance or Covenant
Defeasance have been complied with.
(8) 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 qualified under such Act or exempt
from regulation thereunder.
Section 1305. Deposited Money and U.S. Government Obligations
to be Held In Trust; Other 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 and Section 1306,
the Trustee and any such other trustee are referred to collectively as the
"Trustee") pursuant to Section 1304 in respect of the Securities of any
Defeasible Series shall be held in trust and applied by the Trustee, in
accordance with the provisions of the Securities of such series and this
Indenture, to the payment, either directly or through any such Paying Agent
(including the Company acting as its own Paying Agent) as the Trustee may
determine, to the Holders of Securities of such series, 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.
- 65 -
<PAGE> 75
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 1304 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 Thirteen 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 1304 with respect to Securities of any Defeasible Series
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 an equivalent Defeasance or Covenant Defeasance with
respect to the Securities of such series.
Section 1306. Reinstatement. If the Trustee or the Paying
Agent is unable to apply any money in accordance with this Article Thirteen
with respect to the 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 Company's obligations under this
Indenture and the Securities of such series shall be revived and reinstated as
though no deposit had occurred pursuant to this Article Thirteen with respect
to 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 1305 with
respect to Securities of such series in accordance with this Article Thirteen;
provided, however, that if the Company makes any payment of principal of or any
premium or interest on any Security of such series following the reinstatement
of its obligations, the Company shall be subrogated to the rights of the
Holders of Securities of such series to receive such payment from the money so
held in trust.
ARTICLE FOURTEEN
Sinking Funds
Section 1401. Applicability of Article. The provisions of
this Article shall be applicable to any sinking fund for the retirement of
Securities of a series except as otherwise specified as contemplated by Section
301 for Securities of such series.
The minimum amount of any sinking fund payment provided for
by the terms of Securities of any series is herein referred to as a "mandatory
sinking fund payment", and any payment in excess of such minimum amount
provided for by the terms of Securities of any series is herein referred to as
an "optional sinking fund payment." If provided for by the terms of Securities
of any series, the cash amount of any sinking fund payment may be subject to
reduction as provided in Section 1211. Each sinking fund payment shall be
applied to the redemption of Securities of any series as provided for by the
terms of Securities of such series.
Section 1402. Satisfaction of Sinking Fund Payments with
Securities. The Company (1) may deliver Outstanding Securities of a series
(other than any previously called for redemption) and (2) may apply as a credit
Securities of a series which have been converted pursuant to Article
- 66 -
<PAGE> 76
Twelve or Securities of a series which have been acquired or redeemed either at
the election of the Company pursuant to the terms of such Securities or through
the application of permitted optional sinking fund payments pursuant to the
terms of such Securities or otherwise, in each case in satisfaction of all or
any part of any sinking fund payment with respect to the Securities of such
series required to be made pursuant to the terms of such Securities as provided
for by the terms of such series; provided that such Securities have not been
previously so credited. Such Securities shall be received and credited for such
purpose by the Trustee at the Redemption Price specified in such Securities for
redemption through operation of the sinking fund and the amount of such sinking
fund payment shall be reduced accordingly.
Section 1403. Redemption of Securities for Sinking Fund. Not
less than 60 days prior to each sinking fund payment date for any series of
Securities, the Company shall deliver to the Trustee an Officers Certificate
specifying the amount of the next ensuing sinking fund payment for that series
pursuant to the terms of that series, the portion thereof, if any, which is to
be satisfied by payment of cash and the portion thereof, if any, which is to be
satisfied by delivering and crediting Securities of that series pursuant to
Section 1202 and will also deliver to the Trustee any Securities to be so
delivered. Not less than 30 nor more than 60 days before each such sinking fund
payment date the Trustee shall select the Securities to be redeemed upon such
sinking fund payment date in the manner specified in Section 1103 and cause
notice of the redemption thereof to be given in the name of and at the expense
of the Company in the manner provided in Section 1104 and provide a copy
thereof to the Company five (5) days in advance of the mailing thereof. Such
notice having been duly given, the redemption of such Securities shall be made
upon the terms and in the manner stated in Sections 1105, 1106 and 1107.
ARTICLE FIFTEEN
REPAYMENT AT OPTION OF HOLDERS
SECTION 1501. Applicability of Article.
Repayment of Securities of any series before their Stated
Maturity at the option of Holders thereof shall be made in accordance with the
terms of such Securities and (except as otherwise specified as contemplated by
Section 301 for Securities of any series) in accordance with this Article.
SECTION 1502. Repayment of Securities.
Securities of any series subject to repayment in whole or in
part at the option of the Holders thereof will, unless otherwise provided in
the terms of such Securities, be repaid at a price equal to the principal
amount thereof, together with interest, if any, thereon accrued to the
Repayment Date specified in or pursuant to the terms of such Securities. The
Company covenants that on or before the Repayment Date it will 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 in the Currency in which the Securities of such series are payable
- 67 -
<PAGE> 77
(except as otherwise specified pursuant to Section 301 for the Securities of
such series) sufficient to pay the principal (or, if so provided by the terms
of the Securities of any series, a percentage of the principal) of, and (except
if the Repayment Date shall be an Interest Payment Date) accrued interest on,
all the Securities or portions thereof, as the case may be, to be repaid on
such date.
SECTION 1503. Exercise of Option.
Securities of any series subject to repayment at the option
of the Holders thereof will contain an "Option to Elect Repayment" form on the
reverse of such Securities. To be repaid at the option of the Holder, any
Security so providing for such repayment, with the "Option to Elect Repayment"
form on the reverse of such Security duly completed by the Holder (or by the
Holder's attorney duly authorized in writing), must be received by the Company
at the Place of Payment therefor specified in the terms of such Security (or at
such other place or places or which the Company shall from time notify the
Holders of such Securities) not earlier than 45 days nor later than 30 days
prior to the Repayment Date. If less than the entire principal amount of such
Security is to be repaid in accordance with the terms of such Security, the
principal amount of such Security to be repaid, in increments of the minimum
denomination for Securities of such series, and the denomination or
denominations of the Security or Securities to be issued to the Holder for the
portion of the principal amount of such Security surrendered that is not to be
repaid, must be specified. The principal amount of any Security providing for
repayment at the option of the Holder thereof may not be repaid in part if,
following such repayment, the unpaid principal amount of such Security would be
less than the minimum authorized denomination of Securities of the series of
which such Security to be repaid is a part. Except as otherwise may be provided
by the terms of any Security providing for repayment at the option of the
Holder thereof, exercise of the repayment option by the Holder shall be
irrevocable unless waived by the Company.
SECTION 1504. When Securities Presented for Repayment Become
Due and Payable.
If Securities of any series providing for repayment at the
option of the Holders thereof shall have been surrendered as provided in this
Article and as provided by or pursuant to the terms of such Securities, such
Securities or the portions thereof, as the case may be, to be repaid shall
become due and payable and shall be paid by the Company on the Repayment Date
therein specified, and on and after such Repayment Date (unless the Company
shall default in the payment of such Securities on such Repayment Date) such
Securities shall, if the same were interest-bearing, cease to bear interest.
Upon surrender of any such Security for repayment in accordance with such
provisions, the principal amount of such Security so to be repaid shall be paid
by the Company, together with accrued interest, if any, to the Repayment Date;
provided, however, that installments of interest, if any, whose Stated Maturity
is on or prior to the Repayment Date shall be payable to the Holders of such
Securities, or one or more Predecessor Securities, registered as such at the
close of business on the relevant Record Dates according to their terms and the
provisions of Section 307.
If the principal amount of any Security surrendered for
repayment shall not be so repaid upon surrender thereof, such principal amount
(together with interest, if any, thereon accrued to such Repayment Date) shall,
until paid, bear interest from the Repayment Date at the rate of
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<PAGE> 78
interest or Yield to Maturity (in the case of Original Issue Discount
Securities) set forth in such Security.
SECTION 1505. Securities Repaid in Part.
Upon surrender of any Security which is to be repaid in part
only, the Company shall execute and the Trustee shall authenticate and deliver
to the Holder of such security, without service charge and at the expense of
the Company, a new Security or Securities of the same series, of any authorized
denomination specified by the Holder, in an aggregate principal amount equal to
and in exchange for the portion of the principal of such Security so
surrendered which is not to be repaid.
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.
IN WITNESS WHEREOF, the parties hereto have caused this
Indenture to be duly executed, and their respective corporate seals to be
hereunto affixed and attested, all as of the day and year first above written.
NABORS INDUSTRIES, INC.
By
------------------------
Attest:
- -------------------
, as Trustee
---------------------
By
------------------------
Attest:
- ---------------------
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<PAGE> 79
STATE OF NEW YORK )
) ss.:
COUNTY OF NEW YORK )
On the ____ day of _________________, before me personally
came _____________________, to me known, who, being by me duly sworn, did
depose and say that (s)he is __________________ of NABORS INDUSTRIES, INC., one
of the corporations described in and which executed the foregoing instrument;
that (s)he knows the seal of said corporation; that the seal affixed to said
instrument is such corporate seal; that it was so affixed by authority of the
Board of Directors of said corporation, and that (s)he signed her/his name
thereto by like authority.
STATE OF NEW YORK )
) ss.:
COUNTY OF NEW YORK )
On the ____ day of ___________________, before me personally
came ________________, to me known, who, being by me duly sworn, did depose and
say that (s)he is ___________________ of ___________________, one of the
corporations described in and which executed the foregoing instrument; that
(s)he knows the seal of said corporation; that the seal affixed to said
instrument is such corporate seal; that it was so affixed by authority of the
Board of Directors of said corporation, and that (s)he signed her/his name
thereto by like authority.
- ----------------------------------------
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<PAGE> 1
Exhibit 4.3
- --------------------------------------------------------------------------------
NABORS INDUSTRIES, INC.
TO
--------------------------------,
TRUSTEE
-----------------------
INDENTURE
Dated as of
-----------
-----------------------
Subordinated Debt Securities
- --------------------------------------------------------------------------------
<PAGE> 2
NABORS INDUSTRIES, INC.
RECONCILIATION AND TIE BETWEEN CERTAIN SECTIONS OF
THIS INDENTURE, DATED AS OF ____________, AND
SECTIONS 310 THROUGH 318, INCLUSIVE, OF
THE TRUST INDENTURE ACT OF 1939:
<TABLE>
<CAPTION>
TRUST INDENTURE
ACT SECTION INDENTURE SECTION
- ------------- -----------------
<S> <C> <C>
310 (a)(1) 609
(a)(2) 609
(a)(3) Not Applicable
(a)(4) Not Applicable
(b) 608
610
311 (a) 613
(b) 613
312 (a) 701
702(a)
(b) 702(b)
(c) 702(c)
313 (a) 703(a)
(b) 703(a)
(c) 703(a)
(d) 703(b)
314 (a) 704
(a)(4) 101
1004
(b) Not Applicable
(c)(1) 102
(c)(2) 102
(c)(3) Not Applicable
(d) Not Applicable
(e) 102
315 (a) 601
(b) 602
(c) 601
(d) 601
(e) 514
316 (a) 101
(a)(1)(A) 502
512
</TABLE>
<PAGE> 3
<TABLE>
<S> <C> <C>
(a)(1)(B) 513
(a)(2) Not Applicable
(b) 508
(c) 104(c)
317 (a)(1) 503
(a)(2) 504
(b) 1003
318 (a) 107
</TABLE>
NOTE: This reconciliation and tie shall not, for any purpose, be deemed to
be a part of the Indenture.
- ii -
<PAGE> 4
TABLE OF CONTENTS
<TABLE>
<CAPTION>
Page
----
<S> <C>
RECITALS OF THE COMPANY . . . . . . . . . . . . . . . . . . . . . . 1
ARTICLE ONE
DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION
Section 101. Definitions . . . . . . . . . . . . . . . . . 1
Act . . . . . . . . . . . . . . . . . . . . . 2
Authenticating Agent . . . . . . . . . . . . 2
Board of Directors . . . . . . . . . . . . . 2
Board Resolution . . . . . . . . . . . . . . 2
Business Day . . . . . . . . . . . . . . . . 2
Commission . . . . . . . . . . . . . . . . . 2
Common Stock . . . . . . . . . . . . . . . . 2
Company . . . . . . . . . . . . . . . . . . . 3
Company Request . . . . . . . . . . . . . . . 3
Company Order . . . . . . . . . . . . . . . . 3
Corporate Trust Office . . . . . . . . . . . 3
corporation . . . . . . . . . . . . . . . . . 3
Covenant Defeasance . . . . . . . . . . . . . 3
days . . . . . . . . . . . . . . . . . . . . 3
Debt . . . . . . . . . . . . . . . . . . . . 3
Defaulted Interest . . . . . . . . . . . . . 4
Defeasance . . . . . . . . . . . . . . . . . 4
Defeasible Series . . . . . . . . . . . . . . 4
Depositary . . . . . . . . . . . . . . . . . 4
Event of Default . . . . . . . . . . . . . . 4
Exchange Act . . . . . . . . . . . . . . . . 4
Floating or Adjustable Rate Provision . . . 4
Floating or Adjustable Rate Security . . . . 4
Global Security . . . . . . . . . . . . . . . 4
Holder . . . . . . . . . . . . . . . . . . . 4
Indenture . . . . . . . . . . . . . . . . . . 4
interest . . . . . . . . . . . . . . . . . . 4
Interest Payment Date . . . . . . . . . . . . 5
Maturity . . . . . . . . . . . . . . . . . . 5
Notice of Default . . . . . . . . . . . . . . 5
Officers' Certificate . . . . . . . . . . . . 5
Opinion of Counsel . . . . . . . . . . . . . 5
</TABLE>
- iii -
<PAGE> 5
<TABLE>
<S> <C> <C>
Original Issue Discount Security . . . . . . 5
Outstanding . . . . . . . . . . . . . . . . . 5
Paying Agent . . . . . . . . . . . . . . . . 6
Person . . . . . . . . . . . . . . . . . . . 6
PIK Security . . . . . . . . . . . . . . . . 6
Place of Payment . . . . . . . . . . . . . . 6
Predecessor Security . . . . . . . . . . . . 6
Principal Subsidiary . . . . . . . . . . . . 6
Proceeding . . . . . . . . . . . . . . . . . 7
Redemption Date . . . . . . . . . . . . . . . 7
Redemption Price . . . . . . . . . . . . . . 7
Regular Record Date . . . . . . . . . . . . . 7
Responsible Officer . . . . . . . . . . . . . 7
Securities . . . . . . . . . . . . . . . . . 7
Security Register . . . . . . . . . . . . . . 7
Security Registrar . . . . . . . . . . . . . 7
Senior Debt . . . . . . . . . . . . . . . . . 7
Special Record Date . . . . . . . . . . . . . 7
Stated Maturity . . . . . . . . . . . . . . . 8
Subsidiary . . . . . . . . . . . . . . . . . 8
Trustee . . . . . . . . . . . . . . . . . . . 8
Trust Indenture Act . . . . . . . . . . . . . 8
U.S. Government Obligations . . . . . . . . . 8
Vice President . . . . . . . . . . . . . . . 8
Section 102. Compliance Certificates and Opinions . . . . 8
Section 103. Form of Documents Delivered to Trustee . . . 9
Section 104. Acts of Holders; Record Dates . . . . . . . . 9
Section 105. Notices, Etc. to Trustee and Company . . . . 11
Section 106. Notice to Holders; Waiver . . . . . . . . . . 11
Section 107. Conflict with Trust Indenture Act . . . . . . 11
Section 108. Effect of Headings and Table of Contents . . 12
Section 109. Successors and Assigns . . . . . . . . . . . 12
Section 110. Separability Clause . . . . . . . . . . . . . 12
Section 111. Benefits of Indenture . . . . . . . . . . . . 12
Section 112. Governing Law . . . . . . . . . . . . . . . . 12
Section 113. Legal Holidays . . . . . . . . . . . . . . . 12
Section 114. Personal Immunity from Liability for
Incorporators, Stockholders, Etc. . . . . . 12
ARTICLE TWO
SECURITY FORMS
Section 201. Forms Generally . . . . . . . . . . . . . . . 13
Section 202. Form of Face of Security . . . . . . . . . . 13
</TABLE>
- iv -
<PAGE> 6
<TABLE>
<S> <C> <C>
Section 203. Form of Reverse of Security . . . . . . . . . 15
Section 204. Form of Legend for Global Securities . . . . 20
Section 205. Form of Trustee's Certificate of
Authentication . . . . . . . . . . . . . . . 20
Section 206. Form of Conversion Notice . . . . . . . . . . 20
Section 207. Securities Issuable in Global Form . . . . . 22
ARTICLE THREE
THE SECURITIES
Section 301. Amount Unlimited; Issuable in Series . . . . 23
Section 302. Denominations . . . . . . . . . . . . . . . . 25
Section 303. Execution, Authentication, Delivery and
Dating . . . . . . . . . . . . . . . . . . . 26
Section 304. Temporary Securities . . . . . . . . . . . . 28
Section 305. Registration, Registration of Transfer and
Exchange . . . . . . . . . . . . . . . . . . 28
Section 306. Mutilated, Destroyed, Lost and Stolen
Securities . . . . . . . . . . . . . . . . . 30
Section 307. Payment of Interest; Interest Rights
Preserved . . . . . . . . . . . . . . . . . 31
Section 308. Persons Deemed Owners . . . . . . . . . . . . 32
Section 309. Cancellation . . . . . . . . . . . . . . . . 32
Section 310. Computation of Interest . . . . . . . . . . . 32
ARTICLE FOUR
SATISFACTION AND DISCHARGE
Section 401. Satisfaction and Discharge of Indenture . . . 33
Section 402. Application of Trust Fund . . . . . . . . . . 34
ARTICLE FIVE
REMEDIES
Section 501. Events of Default . . . . . . . . . . . . . . 34
Section 502. Acceleration of Maturity; Rescission and
Annulment . . . . . . . . . . . . . . . . . 35
Section 503. Collection of Indebtedness and Suits for
Enforcement by Trustee . . . . . . . . . . . 37
Section 504. Trustee May File Proofs of Claim . . . . . . 38
Section 505. Trustee May Enforce Claims Without
Possession of Securities . . . . . . . . . . 38
Section 506. Application of Money Collected . . . . . . . 39
Section 507. Limitation on Suits . . . . . . . . . . . . . 39
Section 508. Unconditional Right of Holders to Receive
Principal, Premium and Interest and to
Convert . . . . . . . . . . . . . . . . . . . 40
Section 509. Restoration of Rights and Remedies . . . . . 40
Section 510. Rights and Remedies Cumulative . . . . . . . 40
Section 511. Delay or Omission Not Waiver . . . . . . . . 40
Section 512. Control by Holders . . . . . . . . . . . . . 41
Section 513. Waiver of Past Defaults . . . . . . . . . . . 41
</TABLE>
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<PAGE> 7
<TABLE>
<S> <C> <C>
Section 514. Undertaking for Costs . . . . . . . . . . . . 41
ARTICLE SIX
THE TRUSTEE
Section 601. Certain Duties and Responsibilities . . . . . 42
Section 602. Notice of Defaults . . . . . . . . . . . . . 43
Section 603. Certain Rights of Trustee . . . . . . . . . . 43
Section 604. Not Responsible for Recitals or Issuance of
Securities . . . . . . . . . . . . . . . . . 44
Section 605. May Hold Securities . . . . . . . . . . . . . 45
Section 606. Money Held in Trust . . . . . . . . . . . . . 45
Section 607. Compensation and Reimbursement . . . . . . . 45
Section 608. Disqualification; Conflicting Interests . . . 46
Section 609. Corporate Trustee Required; Eligibility . . . 46
Section 610. Resignation and Removal; Appointment of
Successor . . . . . . . . . . . . . . . . . . 46
Section 611. Acceptance of Appointment by Successor . . . 48
Section 612. Merger, Conversion, Consolidation or
Succession to Business . . . . . . . . . . . 49
Section 613. Preferential Collection of Claims
Against Company . . . . . . . . . . . . . . . 49
Section 614. Appointment of Authenticating Agent . . . . . 49
ARTICLE SEVEN
HOLDERS' LISTS AND REPORTS BY TRUSTEE AND COMPANY
Section 701. Company to Furnish Trustee Names and Addresses
of Holders . . . . . . . . . . . . . . . . . 51
Section 702. Preservation of Information; Communications
to Holders . . . . . . . . . . . . . . . . . 51
Section 703. Reports by Trustee . . . . . . . . . . . . . 51
Section 704. Reports by Company . . . . . . . . . . . . . 52
ARTICLE EIGHT
CONSOLIDATION, MERGER, OR SALE OF ASSETS
Section 801. Company May Consolidate, Etc. Only on Certain
Terms . . . . . . . . . . . . . . . . . . . . 52
Section 802. Successor Substituted . . . . . . . . . . . . 53
ARTICLE NINE
SUPPLEMENTAL INDENTURES
Section 901. Supplemental Indentures Without Consent of
Holders . . . . . . . . . . . . . . . . . . 53
Section 902. Supplemental Indentures With Consent of
Holders . . . . . . . . . . . . . . . . . . . 54
Section 903. Execution of Supplemental Indentures . . . . 56
Section 904. Effect of Supplemental Indentures . . . . . . 56
Section 905. Revocation and Effect of Consents . . . . . . 56
Section 906. Conformity with Trust Indenture Act . . . . . 56
</TABLE>
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<PAGE> 8
<TABLE>
<S> <C> <C>
Section 907. Reference in Securities to Supplemental
Indentures . . . . . . . . . . . . . . . . . 56
Section 908. Waiver of Compliance by Holders . . . . . . . 57
Section 909. Subordination Unimpaired . . . . . . . . . . 57
Section 910. Notice of Supplemental Indenture . . . . . . 57
ARTICLE TEN
COVENANTS
Section 1001. Payment of Principal, Premium and Interest . 57
Section 1002. Maintenance of Office or Agency . . . . . . . 57
Section 1003. Money for Securities Payments to Be Held
in Trust . . . . . . . . . . . . . . . . . . 58
Section 1004. Statement by Officers as to Compliance . . . 59
ARTICLE ELEVEN
REDEMPTION OF SECURITIES
Section 1101. Applicability of Article . . . . . . . . . . 59
Section 1102. Election to Redeem; Notice to Trustee . . . . 59
Section 1103. Selection by Trustee of Securities to Be
Redeemed . . . . . . . . . . . . . . . . . . 59
Section 1104. Notice of Redemption . . . . . . . . . . . . 60
Section 1105. Deposit of Redemption Price . . . . . . . . . 61
Section 1106. Securities Payable on Redemption Date . . . . 61
Section 1107. Securities Redeemed in Part . . . . . . . . . 62
ARTICLE TWELVE
CONVERSION OF SECURITIES
Section 1201. Applicability of Article . . . . . . . . . . 62
Section 1202. Exercise of Conversion Privilege . . . . . . 62
Section 1203. No Fractional Shares . . . . . . . . . . . . 63
Section 1204. Adjustment of Conversion Price . . . . . . . 64
Section 1205. Notice of Certain Corporate Actions . . . . . 64
Section 1206. Reservation of Shares of Common Stock . . . . 65
Section 1207. Payment of Certain Taxes Upon Conversion . . 65
Section 1208. Nonassessability . . . . . . . . . . . . . . 65
Section 1209. Effect of Consolidation or Merger on
Conversion Privilege . . . . . . . . . . . . 65
Section 1210. Duties of Trustee Regarding Conversion . . . 66
Section 1211. Repayment of Certain Funds Upon Conversion . . 67
ARTICLE THIRTEEN
DEFEASANCE AND COVENANT DEFEASANCE
Section 1301. Company's Option to Effect Defeasance or
Covenant Defeasance . . . . . . . . . . . . 67
</TABLE>
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<PAGE> 9
<TABLE>
<S> <C> <C>
Section 1302. Defeasance and Discharge . . . . . . . . . . 67
Section 1303. Covenant Defeasance . . . . . . . . . . . . . 68
Section 1304. Conditions to Defeasance or Covenant
Defeasance . . . . . . . . . . . . . . . . 68
Section 1305. Deposited Money and U.S. Government
Obligations to Be Held in Trust; Other
Miscellaneous Provisions . . . . . . . . . . 70
Section 1306. Reinstatement . . . . . . . . . . . . . . . . 71
ARTICLE FOURTEEN
SINKING FUNDS
Section 1401. Applicability of Article . . . . . . . . . . 71
Section 1402. Satisfaction of Sinking Fund Payments with
Securities . . . . . . . . . . . . . . . . . 71
Section 1403. Redemption of Securities for Sinking Fund . . 72
ARTICLE FIFTEEN
SUBORDINATION OF SECURITIES
Section 1501. Securities Subordinate to Senior Debt . . . . 72
Section 1502. Payment Over of Proceeds Upon Dissolution,
Etc. . . . . . . . . . . . . . . . . . . . . 72
Section 1503. Prior Payment to Senior Debt Upon
Acceleration of Securities . . . . . . . . . 74
Section 1504. No Payment When Senior Debt in Default . . . 74
Section 1505. Payment Permitted If No Default . . . . . . . 75
Section 1506. Subrogation to Rights of Holders of Senior
Debt . . . . . . . . . . . . . . . . . . . . 75
Section 1507. Provisions Solely to Define Relative Rights . 76
Section 1508. Trustee to Effectuate Subordination . . . . . 76
Section 1509. No Waiver of Subordination Provisions . . . . 76
Section 1510. Notice to Trustee . . . . . . . . . . . . . . 77
Section 1511. Reliance on Judicial Order or Certificate of
Liquidating Agent . . . . . . . . . . . . . 77
Section 1512. Trustee Not Fiduciary For Holders of Senior
Debt . . . . . . . . . . . . . . . . . . . . 77
Section 1513. Rights of Trustee as Holder of Senior Debt;
Preservation of Trustee's Rights . . . . . . 78
Section 1514. Article Applicable to Paying Agents . . . . . 78
Section 1515. Defeasance of This Article Fifteen . . . . . 78
Section 1516. Certain Conversions Deemed Payment . . . . . 78
ARTICLE SIXTEEN
REPAYMENT AT OPTION OF HOLDERS
Section 1601. Applicability of Article . . . . . . . . . . 79
Section 1602. Repayment of Securities . . . . . . . . . . . 79
Section 1603. Exercise of Option . . . . . . . . . . . . . 79
</TABLE>
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<PAGE> 10
<TABLE>
<S> <C> <C>
Section 1604. When Securities Presented for Repayment
Become Due and Payable . . . . . . . . . . . 80
Section 1605. Securities Repaid in Part . . . . . . . . . . 80
</TABLE>
NOTE: This table of contents shall not, for any purpose, be
deemed to be a part of the Indenture.
- ix -
<PAGE> 11
INDENTURE, dated as of _____________, between NABORS
INDUSTRIES, INC., a Delaware corporation (herein called the "Company"), having
its principal office at 515 West Greens Road, Suite 1200, Houston, Texas 77067,
and _______________, a ___________duly organized and existing under the laws of
__________, as Trustee (herein called the "Trustee").
RECITALS OF THE COMPANY
The Company has duly authorized the execution and delivery of
this Indenture to provide for the issuance from time to time of its
subordinated debentures, notes or other evidences of indebtedness (herein
called the "Securities"), to be issued in one or more series as provided in
this Indenture.
This Indenture is subject to the provisions of the Trust
Indenture Act of 1939, as amended, that are required to be a part of 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 agreed, for the equal and
proportionate benefit of all Holders of the Securities or of series thereof, 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;
(2) all other terms used herein which are defined in the
Trust Indenture Act or the Securities Act of 1933, as amended, 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 generally
accepted accounting principles, and, except as otherwise herein
expressly provided, the term "generally accepted accounting
principles"
<PAGE> 12
with respect to any computation required or permitted hereunder shall
mean such accounting principles as are generally accepted at the date
of such computation;
(4) the words "Article" and "Section" refer to an Article
and Section, respectively, of this Indenture; and
(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 unless the
context otherwise requires.
"Act", when used with respect to any Holder, has the meaning
specified in Section 104.
"Authenticating Agent" means any Person authorized by the
Trustee pursuant to Section 614 to act on behalf of the Trustee to authenticate
Securities of one or more series.
"Board of Directors" means either (i) the board of directors
of the Company, the executive committee of such board of directors or any other
duly authorized committee of directors and/or officers appointed by such board
of directors or executive committee, or (ii) one or more duly authorized
officers of the Company to whom the board of directors of the Company or a
committee thereof has delegated the authority to act with respect to the
matters contemplated by this Indenture.
"Board Resolution" means (i) a copy of a resolution certified
by the Corporate Secretary or an Assistant Corporate Secretary of the Company
to have been duly adopted by the board of directors of the Company or a
committee thereof and to be in full force and effect on the date of such
certification or (ii) a certificate signed by the duly authorized officer or
officers of the Company to whom the board of directors of the Company or a duly
authorized committee thereof has delegated its authority (as described in the
definition of Board of Directors), and in each case, delivered to the Trustee.
"Business Day", when used with respect to any Place of
Payment, means each Monday, Tuesday, Wednesday, Thursday and Friday which is
not a day on which banking institutions in that Place of Payment are authorized
or obligated by law or executive order to close.
"Commission" means the Securities and Exchange Commission, as
from time to time constituted, created under the Exchange Act, or, if at any
time after the execution of this instrument such Commission is not existing and
performing the duties now assigned to it under the Trust Indenture Act, then
the body performing such duties at such time.
"Common Stock" means, with respect to the Company, its common
stock, par value $.10 per share, and with respect to any Principal Subsidiary,
stock of any class, however designated, except stock which is non-participating
beyond fixed dividend and liquidation preferences and the holders of which have
either no voting rights or limited voting rights entitling them, only in the
case
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<PAGE> 13
of certain contingencies, to elect less than a majority of the directors (or
persons performing similar functions) of such Principal Subsidiary, and shall
include securities of any class, however designated, which are convertible into
such Common Stock.
"Company" means the Person named as the "Company" in the first
paragraph of this instrument until a successor Person shall have become such
pursuant to the applicable provisions of this Indenture, and thereafter
"Company" shall mean such successor Person.
"Company Request" or "Company Order" means a written request
or order signed in the name of the Company by (i) any two of the following
individuals: the Chairman, a Vice Chairman, the President or a Vice President,
or (ii) by one of the foregoing individuals and by any other Vice President,
the Treasurer, an Assistant Treasurer, the Controller, an Assistant Controller,
the Corporate Secretary or an Assistant Corporate Secretary or any other
individual authorized by the Board of Directors for such purpose (as set forth
in a Board Resolution), and delivered to the Trustee.
"Corporate Trust Office" means the principal office of the
Trustee at which at any particular time its corporate trust business shall be
administered, which office at the date hereof is located at
_________________________.
"corporation" means a corporation, association, company,
joint-stock company or business trust.
"Covenant Defeasance" has the meaning specified in Section
1303.
"days" means calendar days.
"Debt" means (without duplication and without regard to any
portion of principal amount that has not accrued and to any interest component
thereof (whether accrued or imputed) that is not due and payable) with respect
to any Person, whether recourse is to all or a portion of the assets of such
Person and whether or not contingent, (i) every obligation of such Person for
money borrowed, (ii) every obligation of such Person evidenced by bonds,
debentures, notes or other similar instruments, including obligations incurred
in connection with the acquisition of property, assets or businesses, (iii)
every reimbursement obligation of such Person with respect to letters of
credit, bankers' acceptances or similar facilities issued for the account of
such Person, (iv) every obligation of such Person issued or assumed as the
deferred purchase price of property or services (but excluding trade accounts
payable or accrued liabilities arising in the ordinary course of business), (v)
every capital lease obligation of such Person, (vi) the maximum fixed
redemption or repurchase price of redeemable stock of such Person at the time
of determination, and (vii) every obligation of the type referred to in clauses
(i) through (vi) of another Person and all dividends of another Person the
payment of which, in either case, such Person has guaranteed or is responsible
or liable, directly or indirectly, as obligor or otherwise.
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<PAGE> 14
"Defaulted Interest" has the meaning specified in Section 307.
"Defeasance" has the meaning specified in Section 1302.
"Defeasible Series" has the meaning specified in Section 1304.
"Depositary" means, with respect to Securities of any series
issuable in whole or in part in the form of one or more Global Securities, a
clearing agency registered under the Exchange Act that is designated to act as
depositary for such Securities as contemplated by Section 301.
"Event of Default" has the meaning specified in Section 501.
"Exchange Act" means the Securities Exchange Act of 1934, as
amended from time to time, and any successor statute thereto.
"Floating or Adjustable Rate Provision" means a formula or
provision, specified in or pursuant to a Board Resolution or an indenture
supplemental hereto, providing for the determination, whether pursuant to
objective factors or pursuant to the sole discretion of any Person (including
the Company), and periodic adjustment of the interest rate borne by a Floating
or Adjustable Rate Security.
"Floating or Adjustable Rate Security" means any Security
which provides for interest thereon at a periodic rate that may vary from time
to time over the term thereof in accordance with a Floating or Adjustable Rate
Provision.
"Global Security" means a Security that evidences all or part
of the Securities of any series and is authenticated and delivered to, and
registered in the name of, the Depositary for such Securities or a nominee
thereof.
"Holder" means a Person in whose name a Security is registered
in the Security Register.
"Indenture" means this instrument as originally executed or as
it may from time to time be supplemented or amended by one or more indentures
supplemental hereto entered into pursuant to the applicable provisions hereof,
including, for all purposes of this instrument, and any such supplemental
indenture, the provisions of the Trust Indenture Act that are deemed to be a
part of and govern this instrument and any such supplemental indenture,
respectively. The term "Indenture" shall also include the terms of particular
series of Securities established as contemplated by Section 301.
"interest", when used with respect to an Original Issue
Discount Security which by its terms bears interest only after Maturity, means
interest payable after Maturity.
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<PAGE> 15
"Interest Payment Date", when used with respect to any
Security, means the Stated Maturity of an installment of interest on such
Security.
"Maturity", when used with respect to any Security, means the
date on which the principal of such Security or an installment of principal
becomes due and payable as therein or herein provided, whether at the Stated
Maturity or by declaration of acceleration, call for redemption or otherwise.
"Notice of Default" means a written notice of the kind
specified in Section 501(4) and Section 501(5).
"Officers' Certificate" means a certificate signed by (i) any
two of the following individuals: the Chairman, a Vice Chairman, the President
or a Vice President, or (ii) by one of the foregoing individuals and by any
other Vice President, the Treasurer, an Assistant Treasurer, the Controller, an
Assistant Controller, the Corporate Secretary or an Assistant Corporate
Secretary, of the Company, or any other individual authorized by the Board of
Directors for such purpose (as specified in a Board Resolution), and delivered
to the Trustee. One of the officers signing an Officers' Certificate given
pursuant to Section 1004 shall be the principal executive, financial or
accounting officer of the Company.
"Opinion of Counsel" means a written opinion of counsel, who
may be an employee of or counsel to the Company, or who may be other counsel
reasonably satisfactory to the Trustee.
"Original Issue Discount Security" means any Security which
provides for an amount less than the principal amount thereof to be due and
payable upon a declaration of acceleration of the maturity thereof pursuant to
Section 502.
"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 canceled by the Trustee or
delivered to the Trustee for cancellation;
(ii) Securities for whose payment or redemption or
purchase money in the necessary amount has been theretofore deposited
with the Trustee or any Paying Agent (other than the Company) in trust
or set aside and segregated in trust by the Company (if the Company
shall act as its own Paying Agent) for the Holders of such Securities;
provided that, if such Securities are to be redeemed, notice of such
redemption has been duly given pursuant to this Indenture or provision
therefor satisfactory to the Trustee has been made;
(iii) Securities as to which Defeasance has been effected
pursuant to Section 1302; and
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<PAGE> 16
(iv) Securities which have been paid pursuant to Section
306 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;
provided, however, that in determining whether the Holders of the requisite
principal amount of the Outstanding Securities have given any request, demand,
authorization, direction, notice, consent or waiver hereunder, (A) the
principal amount of an Original Issue Discount Security that shall be deemed to
be Outstanding shall be the amount of the principal thereof that would be due
and payable as of the date of such determination upon acceleration of the
Maturity thereof pursuant to Section 502, and (B) Securities owned by (i) the
Company or any other obligor upon the Securities or (ii) any Subsidiary or of
such other obligor upon the Securities 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 or waiver, only Securities which a Responsible Officer of 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 Subsidiary or of such other obligor.
"Paying Agent" means any Person authorized by the Company to
pay the principal of or any premium or interest on any Securities on behalf of
the Company.
"Person" means any individual, corporation, limited liability
company, partnership, joint venture, trust, unincorporated organization or
government or any agency or political subdivision thereof.
"PIK Securities" means any series of Securities where interest
is payable, at the election of the Company or a holder of such Security, in
additional Securities.
"Place of Payment", when used with respect to the Securities
of any series, means the place or places where the principal of and any premium
and interest on the Securities of that series are payable as specified as
contemplated by Section 301.
"Predecessor Security" of any particular Security means every
previous Security evidencing all or a portion of the same debt as that
evidenced by such particular Security; and, for the purposes of this
definition, any Security authenticated and delivered under Section 306 in
exchange for or in lieu of a mutilated, destroyed, lost or stolen Security
shall be deemed to evidence the same debt as the mutilated, destroyed, lost or
stolen Security.
"Principal Subsidiary" means any Subsidiary which at the time
of determination has, (A) assets which, as of the date of the Company's most
recently prepared quarterly consolidated
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<PAGE> 17
balance sheet, constituted at least 15% of the Company's total assets on a
consolidated basis as of such date, or (B) revenues for the 12-month period
ending on the date of the Company's most recently prepared quarterly
consolidated statement of income which constituted at least 15% of the
Company's total revenues on a consolidated basis for such period or (C) net
earnings for the 12-month period ending on the date of the Company's most
recently prepared quarterly consolidated statement of income which constituted
at least 15% of the Company's total net earnings on a consolidated basis for
such period.
"Proceeding" has the meaning specified in Section 1502.
"Redemption Date", when used with respect to any Security to
be redeemed, means the date fixed for such redemption by or pursuant to this
Indenture.
"Redemption Price", when used with respect to any Security to
be redeemed, means the price at which it is to be redeemed pursuant to this
Indenture.
"Regular Record Date" for the interest payable on any Interest
Payment Date on the Securities of any series means the date specified for that
purpose as contemplated by Section 301.
"Responsible Officer", when used with respect to the Trustee,
means any officer of the Trustee with responsibility for the administration of
this Indenture and also means, with respect to a particular corporate trust
matter, any other officer to whom such matter is referred because of his or her
knowledge of and familiarity with the particular subject.
"Securities" has the meaning stated in the first recital of
this Indenture and more particularly means any Securities authenticated and
delivered under this Indenture.
"Security Register" and "Security Registrar" have the
respective meanings specified in Section 305.
"Senior Debt" means the principal of (and premium, if any) and
interest, if any (including interest accruing on or after the filing of any
petition in bankruptcy or for reorganization relating to the Company to the
extent that such claim for post-petition interest is allowed in such
proceeding), on Debt, whether incurred on or prior to the date of the Indenture
or thereafter incurred, unless, in the instrument creating or evidencing the
same or pursuant to which the same is outstanding, it is provided that such
obligations are not superior in right of payment to the Securities or to other
Debt which is pari passu with, or subordinated to the Securities; provided,
however, that Senior Debt shall not be deemed to include (1) the Securities,
(2) the Debt referred to in clause (vi) of the definition of Debt or (3) the 5%
Convertible Subordinated Notes due 2006 issued pursuant to that certain
Indenture, dated as of May 15, 1996, between the Company and Marine Midland
Bank, as trustee, as supplemented from time to time.
"Special Record Date" for the payment of any Defaulted
Interest means a date fixed by the Trustee pursuant to Section 307.
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<PAGE> 18
"Stated Maturity", when used with respect to any Security or
any installment of principal thereof or interest thereon, means the date
specified in such Security as the fixed date on which the principal of such
Security or such installment of principal or interest is due and payable.
"Subsidiary" means a corporation more than 50% of the voting
power of which is controlled, directly or indirectly, by the Company or by one
or more other Subsidiaries, or by the Company and one or more other
Subsidiaries. For the purposes of this definition, "voting power" means the
power to vote for the election of directors, whether at all times or only so
long as no senior class of stock has such voting power by reason of any
contingency.
"Trustee" means the Person named as the "Trustee" in the first
paragraph of this instrument until a successor Trustee shall have become such
pursuant to the applicable provisions of this Indenture, and thereafter
"Trustee" shall mean or include each Person who is then a Trustee hereunder, if
at any time there is more than one such Person, "Trustee" as used with respect
to the Securities of any series shall mean the Trustee with respect to
Securities of that series.
"Trust Indenture Act" means the Trust Indenture Act of 1939,
as amended and as in force at the date as of which this instrument was
executed; provided, however, that in the event the Trust Indenture Act of 1939
is amended after such date, "Trust Indenture Act" means, to the extent required
by any such amendment, the Trust Indenture Act of 1939 as so amended, and
except as provided in Section 906.
"U.S. Government Obligations" has the meaning specified in
Section 1304.
"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".
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 an officer 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 requirements set forth in this Indenture.
Every certificate or opinion with respect to compliance with a
condition or covenant provided for in this Indenture (excluding certificates
provided for in Section 1004) shall include
(1) a statement that each Person signing such certificate
or opinion has read such covenant or condition and the definitions
herein relating thereto;
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<PAGE> 19
(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 Person,
such Person has made such examination or investigation as is necessary
to enable such Person 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 Person, such condition or covenant has been complied with.
Section 103. Form of Documents Delivered to Trustee. In any
case where several matters are required to be certified by, or covered by an
opinion of, any specified Person, it is not necessary that all such matters be
certified by, or covered by the opinion of, only one such Person, or that they
be so certified or covered by only one document, but one such Person may
certify or give an opinion with respect to some matters and one or more other
such Persons as to other matters, and any such Person may certify or give an
opinion as to such matters in one or several documents.
Any certificate or opinion of an officer of the Company may be
based, insofar as it relates to legal matters, upon a certificate or opinion
of, or representations by, counsel, unless such officer knows, or in the
exercise of reasonable care should know, that the certificate or opinion or
representations with respect to the matters upon which its 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.
Any certificate, statement or opinion of an officer of the
Company or of counsel may be based, insofar as it relates to accounting
matters, upon a certificate, opinion or representation by an accountant or firm
of accountants in the employ of the Company, unless such officer or counsel, as
the case may be, knows, or in the exercise of reasonable care should know, that
the certificate, opinion or representation with respect to such accounting
matters upon which its certificate, statement or opinion may be based is
erroneous.
Where any Person is required to make, give or execute two or
more applications, requests, consents, certificates, statements, opinions or
other instruments under this Indenture, they may, but need not, be consolidated
and form one instrument.
Section 104. Acts of Holders; Record Dates. (a) Any request,
demand, authorization, direction, notice, consent, waiver or other action
provided or permitted by this Indenture to be given or taken by Holders may be
embodied in and evidenced by one or more instruments of substantially
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<PAGE> 20
similar tenor signed by such Holders in person or by agent duly appointed in
writing; and, except as herein otherwise expressly provided, such action shall
become effective when such instrument or instruments are delivered to the
Trustee and, where 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.
(b) 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 or her the
execution thereof. Where such execution is by a signer acting in a capacity
other than such signer's individual capacity, such certificate or affidavit
shall also constitute sufficient proof of such signer's authority. The fact and
date of the execution of any such instrument or writing, or the authority of
the Person executing the same, may also be proved in any other manner which the
Trustee deems sufficient.
(c) The Company may, in the circumstances permitted by
the Trust Indenture Act, fix any day as the record date for the purpose of
determining the Holders of Outstanding Securities of any series entitled to
give or take any request, demand, authorization, direction, notice, consent,
waiver or other action, or to vote on any action, authorized or permitted to be
given or taken by Holders of Outstanding Securities of such series. If not set
by the Company prior to the first solicitation of a Holder of Securities of
such series made by any Person in respect of any such action, or, in the case
of any such vote, prior to such vote, the record date for any such action or
vote shall be the 30th day (or, if later, the date of the most recent list of
Holders required to be provided pursuant to Section 701) prior to such first
solicitation or vote, as the case may be. With regard to any record date for
action to be taken by the Holders of one or more series of Securities, only the
Holders of Securities of such series on such date (or their duly designated
proxies) shall be entitled to give or take, or vote on, the relevant action.
(d) The ownership of Securities shall be proved by the
Security Register or by a certificate of the Security Registrar.
(e) 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.
(f) Without limiting the foregoing, a Holder entitled
hereunder to give or take any action hereunder with regard to any particular
Security may do so with regard to all or any part
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<PAGE> 21
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 different 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 to or with the Trustee at its Corporate Trust Office;
provided, however, that the same shall be made, given, furnished or
filed only when received by a Responsible Officer of the Trustee at
its Corporate Trust Office, Attention: Corporate Trust Department, 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 instrument;
provided, however, that the same shall be made, given, furnished or
filed only when received by the Company, Attention: President, or at
any other address previously furnished in writing to the Trustee by
the Company.
Section 106. Notice to Holders; Waiver. Where this Indenture
provides for notice to Holders of any event, such notice shall be sufficiently
given (unless otherwise herein expressly provided) if in writing and mailed,
first-class postage prepaid, to each Holder affected by such event, at its
address as it appears in the Security Register, not later than the latest date
(if any), and not earlier than the earliest date (if any), prescribed for the
giving of such notice; provided, however, that the Company or the Trustee, upon
a good faith determination that mailing is in the circumstances impractical,
may give such notice by any other method which, in the reasonable belief of the
Company or, in the case of the Trustee, of the Company and the Trustee, is
likely to be received by the Holders. In any case where notice to Holders is
given by mail, neither the failure to mail such notice, nor any defect in any
notice so mailed, to any particular Holder shall affect the sufficiency of such
notice with respect to other Holders. Where this Indenture provides for notice
in any manner, such notice may be waived in writing by the Person entitled to
receive such notice, either before or after the event, and such waiver 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
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<PAGE> 22
be a part of and govern this Indenture, the required 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 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 the Securities shall be invalid, illegal or unenforceable,
the validity, legality and enforceability of the remaining provisions shall not
in any way be affected or impaired thereby.
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, any benefit
or any legal or equitable right, remedy or claim under 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, BUT WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS.
Section 113. Legal Holidays. In any case where any Interest
Payment Date, Redemption Date, Repayment Date or Stated Maturity of any
Security or the last day on which a Holder has the right to convert a Security
at a particular conversion price shall not be a Business Day at any Place of
Payment, then (notwithstanding any other provision of this Indenture or of the
Securities (other than a provision of 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) or conversion need not
be made at such Place of Payment on such date, but may be made on the next
succeeding Business Day at such Place of Payment with the same force and effect
as if made on the Interest Payment Date or Redemption Date, or at the Stated
Maturity, provided that no interest shall accrue with respect to such payment
for the period from and after such Interest Payment Date, Redemption Date,
Repayment Date or Stated Maturity, as the case may be.
Section 114. Personal Immunity from Liability for
Incorporators, Stockholders, Etc. No recourse shall be had for the payment of
the principal of or premium, if any, or interest, if any, on any Security, or
for any claim based thereon, or otherwise in respect of any Security, or based
on or in respect of this Indenture or any indenture supplemental hereto,
against any incorporator, or against any past, present or future stockholder,
director or officer, as such, of the Company or of any
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<PAGE> 23
successor corporation, whether by virtue of any constitution, statute or rule
of law, or by the enforcement of any assessment or penalty or otherwise, all
such liability being expressly waived and released as a condition of, and as
consideration for, the execution of this Indenture and the issue of the
Securities.
ARTICLE TWO
SECURITY FORMS
Section 201. Forms Generally. The Securities of each series
shall be in substantially the form set forth in this Article, or in such other
form as shall be established by or pursuant to a Board Resolution or in one or
more indentures supplemental hereto, in each case with such appropriate
insertions, omissions, substitutions and other variations as are required or
permitted by this Indenture, and may have such letters, numbers or other marks
of identification and such legends or endorsements placed thereon as may be
required to comply with the rules of any securities exchange or Depositary
therefor or as may, consistent herewith, be determined by the officers
executing such Securities, as evidenced by their execution of the Securities.
If the form of Securities of any series is established by action taken pursuant
to a Board Resolution, a copy of an appropriate record of such action shall be
certified by the Corporate Secretary or an Assistant Corporate Secretary of the
Company and delivered to the Trustee at or prior to the delivery of the Company
Order contemplated by Section 303 for the authentication and delivery of such
Securities.
The definitive Securities shall be printed, lithographed or
engraved on steel engraved borders or may be produced in any other manner, all
as determined by the officers executing such Securities, as evidenced by their
execution of such Securities.
Section 202. Form of Face of Security.
[Insert any legend required by the Internal Revenue Code of
1986, as amended and the regulations thereunder.]
NABORS INDUSTRIES, INC.
No. ________ [$]_____
NABORS INDUSTRIES, INC., a Delaware corporation (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] [if applicable, insert one or more foreign
currencies, currency units or composite currencies] [if the Security is to bear
interest prior to Maturity, insert -- and to pay interest thereon from or from
the most recent Interest Payment Date to which interest has been paid or duly
provided for, [semi-annually on _______ and _________ in each year] [if other
than semi-annual payments, insert frequency of payments and payment dates],
commencing
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<PAGE> 24
________________, at [if the Security is to bear interest at a fixed rate,
insert -- the rate of ____% per annum] [if the Security is a Floating or
Adjustable Rate Security, insert -- a rate per annum [computed-determined] in
accordance with the [insert defined name of Floating or Adjustable Rate
Provision] set forth below] [if the Security is to bear interest at a rate
determined with reference to an index, refer to description of index below],
until the principal hereof is paid or made available for payment [if
applicable, insert -- and (to the extent that the payment of such interest
shall be legally enforceable) at the rate of _____% per annum on any overdue
installment of interest]. The interest so payable, and punctually paid or duly
provided for, on any Interest Payment Date will, 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 will 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 of this series 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 of this series may be listed, and upon such notice as
may be required by such exchange, all as more fully provided in said
Indenture).
The indebtedness evidenced by this Security is, to the extent
provided in the Indenture, subordinate and subject in right of payment to the
prior payment in full of all Senior Debt, and this Security is issued subject
to the provisions of the Indenture with respect thereto. Each Holder of this
Security, by accepting the same, (a) agrees to and shall be bound by such
provisions, (b) authorizes and directs the Trustee on his behalf to take such
action as may be necessary or appropriate to effectuate the subordination so
provided and (c) appoints the Trustee his attorney-in-fact for any and all such
purposes.
[If the Securities are Floating or Adjustable Rate Securities
with respect to which the principal of or any premium or interest may be
determined with reference to an index, insert the text of the Floating or
Adjustable Rate Provision.]
[If the Security is not to bear interest prior to Maturity,
insert -- The principal of this Security shall not bear interest except in the
case of a default in payment of principal upon acceleration, upon redemption or
at Stated Maturity and in such case the overdue principal of this Security
shall bear interest at the rate of ___% per annum (to the extent that the
payment of such interest shall be legally enforceable), which shall accrue from
the date of such default in payment to the date payment of such principal has
been made or duly provided for. Interest on any overdue principal shall be
payable on demand. Any such interest on any overdue principal that is not so
paid on demand shall bear interest at the rate of ___% per annum (to the extent
that the payment of such interest shall be legally enforceable), which shall
accrue from the date of such demand for payment
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<PAGE> 25
to the date payment of such interest has been made or duly provided for, and
such interest shall also be payable on demand.]
Payment of the principal of (and premium, if any) and [if
applicable, insert -- any such] interest on this Security will be made at the
office or agency of the Company maintained for that purpose in __________, in
such coin or currency of [if applicable, insert -- the United States of
America] [if applicable, insert another currency, currency unit or composite
currency] as at the time of payment is legal tender for payment of public and
private debts; provided, however, that at the option of the Company payment of
interest may be made by check mailed to the address of the Person entitled
thereto as such address shall appear in the Security Register).
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 under its corporate seal.
Dated:
NABORS INDUSTRIES, INC.
By
-----------------------------------
Attest:
- --------------------------
Section 203. Form of Reverse of Security.
This Security is one of a duly authorized issue of securities
of the Company (herein called the "Securities"), issued and to be issued in one
or more series under an Indenture, dated as of ________________ (herein called
the "Indenture"), between the Company and __________, as Trustee (herein called
the "Trustee", which term includes any successor trustee under the Indenture),
to which Indenture and all indentures supplemental thereto reference is hereby
made for a statement of the respective rights, limitations of rights, duties
and immunities thereunder of the Company, the Trustee and the Holders of the
Securities and of the terms upon which the Securities are, and are to be,
authenticated and delivered. This Security is one of the series designated on
the face hereof [,
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<PAGE> 26
limited in aggregate principal amount to [$] _________[if applicable, insert --
relevant amount in applicable foreign currency, currency unit or composite
currency]].
[If applicable, insert -- The Securities of this series are
subject to redemption upon not less than 15 days' nor more than 60 days' notice
by mail, [if applicable, insert -- (1) on _____________ in any year commencing
with the year ____ and ending with the year _____ through operation of the
sinking fund for this series at a Redemption Price equal to 100% of the
principal amount, and (2)] at any time [on or after ______________], 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 [on or before
________, ___% and if redeemed] during the 12-month period beginning ________
of the years indicated,
<TABLE>
<CAPTION>
Redemption Redemption
Year Price Year Price
- --------------- ---------------------- --------------- ---------------------
<S> <C> <C> <C>
</TABLE>
and thereafter at a Redemption Price equal to _____% of the principal amount,
together in the case of any such redemption [if applicable, insert -- (whether
through operation of the sinking fund or otherwise)] with accrued interest to
the Redemption Date, but interest installments whose stated Maturity is on or
prior to such Redemption Date will be payable to the Holders of such
Securities, or one or more Predecessor Securities, of record at the close of
business on the relevant Record Dates referred to on the face hereof, all as
provided in the Indenture.]
[If applicable, insert -- The Securities of this series are
subject to redemption upon not less than 15 days' nor more than 60 days' notice
by mail, (1) on _____ in any year commencing with the year _____ and ending
with the year _____ through operation of the sinking fund for this series at
the Redemption Prices for redemption through operation of the sinking fund
(expressed as percentages of the principal amount) set forth in the table
below, and (2) at any time [on or after ______], as a whole or in part, at the
election of the Company, at the Redemption Prices for redemption otherwise than
through operation of the sinking fund (expressed as percentages of the
principal amount) set forth in the table below: If redeemed during the 12-month
period beginning _____ of the years indicated,
<TABLE>
<CAPTION>
Redemption Price For
Redemption Price For Redemption Otherwise
Redemption Through Operation Than Through Operation
Year of the Sinking Fund of the Sinking Fund
- --------------- -------------------------------- -----------------------------
<S> <C> <C>
</TABLE>
and thereafter at a Redemption Price equal to ___% of the principal amount,
together in the case of any such redemption (whether through operation of the
sinking fund or otherwise) with accrued interest to the Redemption Date, but
interest installments whose Stated Maturity in on or prior to
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<PAGE> 27
such Redemption Date will be payable to the Holders of such Securities, or one
or more Predecessor Securities, of record at the close of business on the
relevant Record Dates referred to on the face hereof, all as provided in the
Indenture.]
[The sinking fund for this series provides for the redemption
on ____ in each year beginning with the year ____ and ending with the year ____
of [not less than [$] ___________ ("mandatory sinking fund") and not more than]
[$] ___________ aggregate principal amount of Securities of this series.
Securities of this series acquired or redeemed by the Company otherwise than
through [mandatory] sinking fund payments may be credited against subsequent
[mandatory] sinking fund payments otherwise required to be made [in the inverse
order in which they become due).]
[If the Security is subject to redemption, insert -- In the
event of redemption of this Security in part only, a new Security or Securities
of this series and of like tenor for the unredeemed portion hereof will be
issued in the name of the Holder hereof upon the cancellation hereof.]
The Indenture contains provisions for defeasance at any time
of (1) the entire indebtedness of this Security or (2) certain restrictive
covenants and Events of Default with respect to this Security, in each case
upon compliance with certain conditions set forth in the Indenture.
[If the Security is convertible into Common Stock of the
Company, insert -- Subject to the provisions of the Indenture, the Holder of
this Security is entitled, at its option, at any time on or before [insert
date] (except that, in case this Security or any portion hereof shall be called
for redemption, such right shall terminate with respect to this Security or
portion hereof, as the case may be, so called for redemption at the close of
business on the date fixed for redemption as provided in the Indenture unless
the Company defaults in making the payment due upon redemption), to convert the
principal amount of this Security (or any portion hereof which is $1,000 or an
integral multiple thereof [if applicable, insert the equivalent thereof in one
or more foreign currencies, currency units or composite currencies]), into
fully paid and non-assessable shares (calculated as to each conversion to the
nearest 1/1000th of a share) of the Common Stock of the Company, as said shares
shall be constituted at the date of conversion, at the conversion price of [$]
__________ principal amount of Securities for each share of Common Stock, or at
the adjusted conversion price in effect at the date of conversion determined as
provided in the Indenture, upon surrender of this Security, together with the
conversion notice hereon duly executed, to the Company at the designated office
or agency of the Company in ___________, accompanied (if so required by the
Company) by instruments of transfer, in form satisfactory to the Company and to
the Trustee, duly executed by the Holder or by its duly authorized attorney in
writing. Such surrendering shall, if made during any period beginning at the
close of business on a Regular Record Date and ending at the opening of
business on the Interest Payment Date next following such Regular Record Date
(unless this Security or the portion being converted shall have been called for
redemption on a Redemption Date during such period), also be accompanied by
payment of an amount equal to the Interest payable on such Interest Payment
Date on the principal amount of this Security then being converted. Subject to
the aforesaid requirement for payment and, in the case of a conversion after
the Regular Record Date next
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<PAGE> 28
preceding any Interest Payment Date and on or before such Interest Payment
Date, to the right of the Holder of this Security (or any Predecessor Security)
of record at such Regular Record Date to receive an installment of interest
(with certain exceptions provided in the Indenture), no adjustment is to be
made on conversion for interest accrued hereon or for dividends on shares of
Common Stock issued on conversion. The Company is not required to issue
fractional shares upon any such conversion, but shall make adjustment therefor
in cash on the basis of the current market value of such fractional interest as
provided in the Indenture. The conversion price is subject to adjustment as
provided in the Indenture. In addition, the Indenture provides that in case of
certain consolidations or mergers to which the Company is a party or the sale
of substantially all of the assets of the Company, the Indenture shall be
amended, without the consent of any Holders of Securities, so that this
Security, if then outstanding, will be convertible thereafter, during the
period this Security shall be convertible as specified above, only into the
kind and amount of securities, cash and other property receivable upon the
consolidation, merger or sale by a holder of the number of shares of Common
Stock into which this Security might have been converted immediately prior to
such consolidation, merger or sale (assuming such holder of Common Stock failed
to exercise any rights of election and received per share the kind and amount
received per share by a plurality of non-electing shares) [, assuming if such
consolidation, merger or sale is prior to [date], that this Security were
convertible at the time of such consolidation, merger or sale at the initial
conversion price specified above as adjusted from to such time pursuant to the
Indenture]. In the event of conversion of this Security in part only, a new
Security or Securities for the unconverted portion hereof shall be issued in
the name of the Holder hereof upon the cancellation hereof.]
[If the Security is convertible into other securities or
property, specify the conversion features and the form of conversion notice
pursuant to Section 206 hereof.]
[If the Security is not an Original Issue Discount Security,
insert -- If an Event of Default with respect to Securities of this series
shall occur and be continuing, the principal of the Securities of this series
may be declared due and payable in the manner and with the effect provided in
the Indenture.]
[If the Security is an Original Issue Discount Security,
insert -- If an Event of Default with respect to Securities of this series
shall occur and be continuing, an amount of principal of the Securities of this
series may be declared due and payable in the manner and with the effect
provided in the Indenture. Such amount shall be equal to [Insert formula for
determining the amount]. Upon payment (i) of the amount of principal so
declared due and payable and (ii) of interest on any overdue principal and
overdue interest (in each case to the extent that the payment of such interest
shall be legally enforceable), all of the Company's obligations in respect of
the payment of the principal of and interest, if any, on the Securities of this
series shall terminate.]
The Indenture permits the amendment thereof and the
modification of the rights and obligations of the Company and the rights of the
Holders of the Securities of each series to be affected under the Indenture at
any time by the Company and the Trustee with the consent of the Holders of a
majority in principal amount of the Securities at the time outstanding of each
series to
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<PAGE> 29
be affected, with certain exceptions as therein provided with respect to
certain modifications or amendments which may not be made without the consent
of each Holder of such Security affected thereby. The Indenture also permits
certain amendments and modifications thereto from time to time by the Company
and the Trustee without the consent of the Holders of any series of the
Securities to be affected thereby for certain specified purposes, including
curing ambiguities, defects or inconsistencies and making any such change that
does not adversely affect the rights of any Holder of such series of the
Securities, as provided therein.
The Indenture contains provisions permitting the Holders of
specified percentages in principal amount of the Securities of each 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.
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
hereof or in lieu hereof, whether or not notation of such consent or waiver is
made upon this Security.
No reference herein to the Indenture and no provision of this
Security or of the Indenture shall alter or impair the obligation of the
Company, which is absolute and unconditional, to pay the principal of and any
premium and Interest on this Security at the times, place and [rate(s)], 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 registerable in
the Security Register, upon surrender of this Security for registration of
transfer at the office or agency of the Company in any place where the
principal of and any premium and interest on this Security are payable, 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 this series and of like tenor, of authorized
denominations and for the same aggregate principal amount, will be issued to
the designated transferee or transferees.
The Securities of this series are issuable only in registered
form without coupons in denominations of $1,000 and any integral multiple
thereof [if applicable, insert the equivalent thereof in one or more foreign
currencies, currency units, or composite currencies]. As provided in the
Indenture and subject to certain limitations therein set forth, Securities of
this series are exchangeable for a like aggregate principal amount of
Securities of this series and 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.
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<PAGE> 30
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.
No recourse shall be had for the payment of the principal of
(and premium, if any) or interest on this Security, or for any claim based
hereon, or otherwise in respect hereof, or based on or in respect of the
Indenture or any indenture supplemental thereto, against any incorporator,
stockholder, officer or director, as such, past, present or future, of the
Company or of any successor corporation, whether by virtue of any constitution,
statute or rule of law, or by the enforcement of any assessment or penalty or
otherwise, all such liability being, by the acceptance hereof and as part of
the consideration for the issue hereof, expressly waived and released.
All terms used in this Security which are defined in the
Indenture shall have the meanings assigned to them in the Indenture.
Section 204. Form of Legend for Global Securities. Every
Global Security authenticated and delivered hereunder shall bear a legend in
substantially the following form or such other legends as may be required:
This Security is a Global Security within the meaning of the Indenture
hereinafter referred to and is registered in the name of a Depositary
or a nominee thereof. This Security may not be transferred to, or
registered or exchanged for Securities registered in the name of, any
Person other than the Depositary or a nominee thereof and no such
transfer may be registered, except in the limited circumstances
described in the Indenture. Every Security authenticated and delivered
upon registration of transfer of, or in exchange for or in lieu of,
this Security shall be a Global Security subject to the foregoing,
except in such limited circumstances.
Section 205. 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.
-------------------------------,
as Trustee
By
------------------------------
Authorized Signatory
Section 206. Form of Conversion Notice.
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<PAGE> 31
To Nabors Industries, Inc.
The undersigned owner of this Security hereby irrevocably
exercises the option to convert this Security, or portion hereof (which is
$1,000 or an integral multiple thereof [if applicable, insert the equivalent
thereof in one or more foreign currencies, currency units or composite
currencies]) below designated, into shares of Common Stock of the Company in
accordance with the terms of the Indenture referred to in this Security, and
directs that the shares issuable and deliverable upon the conversion, together
with any check in payment for fractional shares and any Securities representing
any unconverted principal amount hereof, be issued and delivered to the
registered holder hereof unless a different name has been indicated below. If
this Notice is being delivered on a date after the close of business on a
Regular Record Date and prior to the opening of business on the related
Interest Payment Date (unless this Security or the portion thereof being
converted has been called for redemption on a Redemption Date within such
period), this Notice is accompanied by payment of an amount equal to the
interest payable on such Interest Payment Date of the principal of this
Security to be converted. If shares are to be issued in the name of a Person
other than the undersigned, the undersigned will pay all transfer taxes payable
with respect hereto. Any amount required to be paid by the undersigned on
account of interest accompanies this Security.
Principal Amount to be Converted
(in an integral multiple of
$1,000, if less than all [if applicable,
insert the equivalent thereof in one
or more foreign currencies, currency
units or composite currencies]):
[$]_____________
Dated
--------------------- -------------------------------------------
Signature
Signature(s) must be guaranteed by an
institution which is a member of one of
the following recognized signature
Guarantee Programs: (i) The Securities
Transfer Agent Medallion Program (STAMP);
(ii) The New York Stock Exchange Medallion
Program (MNSP); (iii) The Stock Exchange
Medallion Program (SEMP) or (iv) another
guarantee program acceptable to the
Trustee.
-------------------------------------------
Signature Guarantee
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<PAGE> 32
Fill in for registration of shares of Common Stock and
Security if to be issued otherwise than to the registered holder.
(Name)
(Address)
Please print Name and Address (including zip code number)
Social Security or other Taxpayer
Identifying Number_____________
SECTION 207. Securities Issuable in Global Form.
If Securities of or within a series in global form, as
specified as contemplated by Section 301, then, notwithstanding clause (11) of
Section 301, any such Security shall represent such of the Outstanding
Securities of such series as shall be specified therein and may provide that it
shall represent the aggregate amount of Outstanding Securities of such series
from time to time endorsed thereon and that the aggregate amount of Outstanding
Securities of such series represented thereby may from time to time be
increased or decreased to reflect exchanges. Any endorsement of a Security in
global form to reflect the amount, or any increase or decrease in the amount,
of Outstanding Securities represented thereby shall be made by the Trustee in
such manner and upon instructions given by such Person or Persons as shall be
specified therein or in the Company Order to be delivered to the Trustee
pursuant to Section 303 or Section 304. Subject to the provisions of Section
303 and, if applicable, Section 304, the Trustee shall deliver and redeliver
any Security in permanent global form in the manner and upon instructions given
by the Person or Persons specified therein or in the applicable Company Order.
If a Company Order pursuant to Section 303 or Section 304 has been, or
simultaneously is, delivered, any instructions by the Company with respect to
endorsement or delivery or redelivery of a Security in global form shall be in
writing but need not comply with Section 102 and need not be accompanied by an
Opinion of Counsel.
The provisions of the last sentence of Section 303 shall apply
to any Security represented by a Security in global form if such Security was
never issued and sold by the Company and the Company delivers to the Trustee
the Security in global form together with written instructions (which need not
comply with Section 102 and need not be accompanied by an Opinion of Counsel)
with regard to the reduction in the principal amount of Securities represented
thereby, together with the written statement contemplated by the last sentence
of Section 303.
Notwithstanding the provisions of Section 307, unless
otherwise specified as contemplated by Section 301, payment of principal of and
any premium and interest on any Security in permanent global form shall be made
to the Person or Persons specified therein.
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<PAGE> 33
Notwithstanding the provisions of Section 308 and except as
provided in the preceding paragraph, the Company, the Trustee and any agent of
the Company and the Trustee shall treat as the Holder of such principal amount
of Outstanding Securities represented by a permanent global Security the Holder
of such permanent global Security in registered form.
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. There shall be established in or pursuant to a Board
Resolution or established in one or more indentures supplemental hereto, prior
to the issuance of Securities of any series,
(1) the title of the Securities of the series (which
shall distinguish the Securities of the series from Securities of any
other series);
(2) any limit upon the aggregate principal amount of the
Securities of the series which 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 Sections 304, 305,
306, 907, 1107 or 1202 and except for any Securities which, pursuant
to Section 303, are deemed never to have been authenticated and
delivered hereunder);
(3) the Person to whom any interest on a 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;
(4) the date or dates, or the method or methods (and
related procedures) by which such date or dates will be determined or
extended, on which the principal of the Securities of the series is
payable;
(5) the rate or rates at which the Securities of the
series shall bear interest, if any, or the Floating or Adjustable Rate
Provision pursuant to which such rates shall be determined, the date
or dates from which such interest shall accrue, the Interest Payment
Dates on which any such interest shall be payable and the Regular
Record Date for any interest payable on any Interest Payment Date;
(6) whether the Securities of the series would be secured
pursuant to Section 901(7);
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<PAGE> 34
(7) the place or places where the principal of (and
premium, if any) and interest, if any, on Securities of the series
shall be payable;
(8) if applicable, the period or periods within which,
the price or prices at which (including premium, if any) and the terms
and conditions upon which Securities of the series shall be redeemed,
in whole or in part, at the option of the Company pursuant to a
sinking fund or otherwise;
(9) the obligation, if any, of the Company to redeem or
purchase Securities of the series pursuant to any sinking fund or
analogous provisions or at the option of a Holder thereof and the
period or periods within which, the price or prices at which and the
terms and conditions upon which Securities of the series shall be
redeemed or purchased, in whole or in part, pursuant to such
obligation;
(10) if applicable, the terms of any right to convert or
exchange Securities of the series into shares of Common Stock of the
Company or other securities or property of the Company or other
issuers;
(11) if other than denominations of $1,000 and any
integral multiple thereof (or the equivalent thereof in one or more
foreign currencies, currency units or composite currencies), the
denominations in which Securities of the series shall be issuable;
(12) if the amount of payments of principal of (or
premium, if any) or interest, if any, on any Securities of the series
may be determined with reference to one or more indices, the manner in
which such amounts shall be determined;
(13) if other than currency of the United States, one or
more foreign currencies, currency units or composite currencies in
which the Securities of the series are to be denominated;
(14) if other than the coin or currency in which the
Securities of the series are denominated, the coin or currency in
which payment of the principal of (and premium, if any) and interest
on the Securities of the series shall be payable;
(15) the price or prices (expressed as a percentage of the
principal amount thereof) at which the Securities will be issued and,
if other than the principal amount thereof, the portion of the
principal amount of Securities of the series which shall be payable
upon declaration of acceleration of the Maturity thereof pursuant to
Section 502 or provable under any applicable federal or state
bankruptcy or similar law pursuant to Section 503;
(16) if applicable, that the Securities of the series
shall be issuable in whole or in part in the form of one or more
Global Securities and, in such case, the Depositary or Depositaries
for such Global Security or Global Securities and any circumstance
other than
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<PAGE> 35
those set forth in Section 305 in which any such Global Security may
be transferred to, and registered and exchanged for Securities
registered in the name of, a Person other than the Depositary for such
Global Security or a nominee thereof and in which any such transfer
may be registered;
(17) whether the Securities are to be issued as Original
Issue Discount Securities;
(18) whether the interest, if any, on the Securities is to
be payable, at the election of the Company or a holder thereof, in
cash or in PIK Securities and the period or periods within which, and
the terms and conditions upon which, such election may be made;
(19) any other event or events of default applicable with
respect to the Securities of the series in addition to those provided
in Section 501(1) through (7);
(20) any other covenant or warranty included for the
benefit of Securities of the series in addition to (and not
inconsistent with) those included in this Indenture for the benefit of
Securities of all series, or any other covenant or warranty included
for the benefit of Securities of the series in lieu of any covenant or
warranty included in this Indenture for the benefit of Securities of
all series, or any provision that any covenant or warranty included in
this Indenture for the benefit of Securities of all series shall not
be for the benefit of Securities of the series, or any combination of
such covenants, warranties or provisions;
(21) any restriction or condition on the transferability
of the Securities of the series;
(22) any authenticating or paying agents, registrars,
conversion agents or any other agents with respect to the Securities
of the series; and
(23) any other terms of the series (which terms shall not
be inconsistent with the provisions of this Indenture, except as
permitted by Section 901(6)).
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 the Board Resolution referred to above or in any such indenture
supplemental hereto.
If any of the terms of the series are established by action
taken pursuant to a Board Resolution, a copy of such action shall be delivered
to the Trustee.
Section 302. Denominations. The Securities of each series
shall be issuable in registered form without coupons 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 shall be issuable in denominations of $1,000 and any integral multiple
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<PAGE> 36
thereof. [if applicable, insert the equivalent thereof in one or more foreign
currencies, currency units or composite currencies.]
Section 303. Execution, Authentication, Delivery and Dating.
The Securities shall be executed on behalf of the Company by its Chairman, a
Vice Chairman, its President, any Vice President, its Treasurer or Assistant
Treasurer, its Controller or Assistant Controller under its corporate seal
reproduced thereon attested by its Corporate Secretary or one of its Assistant
Corporate Secretaries. The signature of any of these officers on the Securities
may be manual or facsimile.
The seal of the Company may be in the form of a facsimile
thereof and may be impressed, affixed, imprinted or otherwise reproduced on the
Securities. Securities bearing the
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<PAGE> 37
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. Minor typographical and other minor errors in the
text of any Security or minor defects in the seal or facsimile signature on any
Security shall not affect the validity or enforceability of such Security if it
has been duly authenticated and delivered by the Trustee.
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 the Company Order shall authenticate and deliver
such Securities. If the form or terms of the Securities of the series have been
established in or pursuant to one or more Board Resolutions or indentures
supplemental hereto as permitted by Sections 201 and 301, 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 Section 601) shall be fully protected in relying upon,
an Opinion of Counsel stating,
(a) if the form of such Securities has been established
by or pursuant to Board Resolutions or indentures supplemental hereto
as permitted by Section 201, that such form has been established in
conformity with the provisions of this Indenture;
(b) if the terms of such Securities have been established
by or pursuant to Board Resolutions or indentures supplemental hereto
as permitted by Section 301, that such terms have been established in
conformity with the provisions of this Indenture; and
(c) that such Securities, when authenticated and
delivered by the Trustee and issued by the Company in the manner and
subject to any conditions specified in such Opinion of Counsel, will
constitute valid and legally binding obligations of the Company
enforceable in accordance with their terms, subject to bankruptcy,
insolvency, fraudulent transfer, reorganization, moratorium and
similar laws of general applicability relating to or affecting
creditors' rights generally and to general equity principles.
The Trustee shall have the right to decline to authenticate
and deliver any Securities under this Section if the Trustee, being advised by
counsel, determines that such action may not lawfully be taken or if the
Trustee in good faith by its board of directors, executive committee, or a
trust committee of directors or committee of Responsible Officers of the
Trustee shall determine that such action would expose the Trustee to personal
liability to existing Holders of Securities.
Notwithstanding the provisions of Section 301 and of the
preceding paragraph, if all Securities of a series are not to be originally
issued at one time, it shall not be necessary to deliver the Board Resolution
otherwise required pursuant to Section 301 or the Company Order and Opinion of
Counsel otherwise required pursuant to such preceding paragraph at or prior to
the time of
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<PAGE> 38
authentication of each Security of such series if such documents are delivered
at or prior to the authentication upon original issuance of the first Security
of such series to be issued.
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. Notwithstanding the foregoing, if any Security shall have been
authenticated and delivered hereunder but never issued and sold by the Company,
and the Company shall deliver such Security to the Trustee for cancellation as
provided in Section 309, for all purposes of this Indenture such Security shall
be deemed never to have been authenticated and delivered hereunder and shall
never be entitled to the benefits of this Indenture.
Section 304. Temporary Securities. Pending the preparation of
definitive Securities of any series, the Company may execute, and upon Company
Order the Trustee shall authenticate and deliver, temporary Securities which
are printed, lithographed, typewritten, mimeographed or otherwise produced, in
any authorized denomination, substantially of the tenor of the definitive
Securities in lieu of which they are issued and with such appropriate
insertions, omissions, substitutions and other variations as the officers of
the Company executing such Securities may determine, as evidenced by their
execution of such Securities.
If temporary Securities of any series are issued, the Company
will cause definitive Securities of that series to be prepared without
unreasonable delay. After the preparation of definitive Securities of such
series, the temporary Securities of such series shall be exchangeable for
definitive Securities of such series upon surrender of the temporary Securities
of such series at the office or agency of the Company in a Place of Payment for
that series, without charge to the Holder. Upon surrender for cancellation of
any one or more temporary Securities of any series, the Company shall execute
and the Trustee shall authenticate and deliver in exchange therefor one or more
definitive Securities of the same series, of any authorized denominations and
of a like aggregate principal amount and tenor. Until so exchanged the
temporary Securities of any series shall in all respects be entitled to the
same benefits under this Indenture as definitive Securities of such series and
tenor.
Section 305. Registration, Registration of Transfer and
Exchange. The Company shall cause to be kept at the Corporate Trust Office of
the Trustee a register (the register maintained in such office and in any other
office or agency of the Company in a Place of Payment being herein sometimes
collectively referred to as the "Security Register") in which, subject to such
reasonable procedures as it or the Trustee may prescribe, the Company shall
provide for the registration of Securities and of transfers of Securities. The
Trustee is hereby appointed "Security Registrar" for the purpose of registering
Securities and transfers of Securities as herein provided.
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<PAGE> 39
Upon surrender for registration of transfer of any Security of
any series at the office or agency in a Place of Payment for that series, the
Company shall execute, and the Trustee shall authenticate and deliver, in the
name of the designated transferee or transferees, one or more new Securities of
the same series, of any authorized denominations and of a like aggregate
principal amount and tenor.
At the option of the Holder, Securities of any series may be
exchanged for other Securities of the same series, of any authorized
denominations and of a like aggregate principal amount and tenor, upon
surrender of the Securities to be exchanged at such office or agency. Whenever
any Securities are so surrendered for exchange, the Company shall execute, and
the Trustee shall authenticate and deliver, the Securities which the Holder
making the exchange is entitled to receive.
All Securities issued upon any registration of transfer or
exchange of Securities shall be the valid obligations of the Company,
evidencing the same debt, and entitled to the same benefits under this
Indenture, as the Securities surrendered upon such registration of transfer or
exchange.
Every Security presented or surrendered for registration of
transfer, exchange, redemption or payment shall (if so required by the Company
or the Trustee) be duly endorsed, or be accompanied by a written instrument of
transfer in form satisfactory to the Company and the Security Registrar duly
executed, by the Holder thereof or his attorney duly authorized in writing.
No service charge shall be made for any registration of
transfer or exchange of Securities, but the Company or the Trustee may require
payment of a sum sufficient to cover any tax or other governmental charge that
may be imposed in connection with any registration of transfer or exchange of
Securities, other than exchanges pursuant to Section 304, 907, 1107 or 1202 not
involving any transfer.
Neither the Company nor the Trustee shall be required (i) to
issue, register the transfer of or exchange Securities of any series during a
period beginning at the opening of business 15 days before the day of the
mailing of a notice of redemption of Securities of that series selected for
redemption under Section 1103 and ending at the close of business on the day of
such mailing, or (ii) to register the transfer of or exchange any Security so
selected for redemption in whole or in part, except the unredeemed portion of
any Security being redeemed in part.
Notwithstanding any other provision in this Indenture, no
Global Security may be transferred to, or registered or exchanged for
Securities registered in the name of, any Person other than the Depositary for
such Global Security or any nominee thereof, and no such transfer may be
registered, unless (1) such Depositary (A) notifies the Company and the Trustee
that it is unwilling or unable to continue as Depositary for such Global
Security or (B) ceases to be a clearing agency registered under the Exchange
Act, (2) the Company executes and delivers to the Trustee a Company Order that
such Global Security shall be so transferable, registrable and exchangeable,
and such transfers shall be registrable, (3) there shall have occurred and be
continuing an Event of Default
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<PAGE> 40
with respect to the Securities evidenced by such Global Security or (4) there
shall exist such other circumstances, if any, as have been specified for this
purpose as contemplated by Section 301. Notwithstanding any other provision in
this Indenture, a Global Security to which the restriction set forth in the
preceding sentence shall have ceased to apply may be transferred only to, and
may be registered and exchanged for Securities registered only in the name or
names of, such Person or Persons as the Depositary for such Global Security
shall have directed and no transfer thereof other than such a transfer may be
registered.
Every Security authenticated and delivered upon registration
of transfer of, or in exchange for or in lieu of, a Global Security to which
the restriction set forth in the first sentence of the preceding paragraph
shall apply, whether pursuant to this Section, Section 304, 306, 907, 1107 or
1202 or otherwise, shall be authenticated and delivered in the form of, and
shall be, a Global Security.
Section 306. Mutilated, Destroyed, Lost and Stolen Securities.
If there shall be delivered to the Company and the Trustee (i) a mutilated
Security, or (ii) evidence to their satisfaction of the destruction, loss or
theft of any Security and in either case such security or indemnity as may be
required by either of them to save each of them and any agent of either of them
harmless, then, in the absence of notice to the Company or the Trustee that
such Security has been acquired by a bona fide purchaser, the Company shall
execute and the Trustee shall authenticate and deliver, in lieu of any such
mutilated, 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 or the Trustee 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 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 of that series duly issued
hereunder.
The provisions of this Section are exclusive and shall
preclude (to the extent lawful) all other rights and remedies with respect to
the replacement or payment of mutilated, destroyed, lost or stolen Securities.
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Section 307. Payment of Interest; Interest Rights Preserved.
Except as otherwise provided as contemplated by Section 301 with respect to any
series of Securities, interest on any Security which is payable, and is
punctually paid or duly provided for, on any Interest Payment Date shall be
paid to the Person in whose name that Security (or one or more Predecessor
Securities) is registered at the close of business on the Regular Record Date
for such interest.
Any interest on any Security of any series which is payable,
but is not punctually paid or duly provided for, on any Interest Payment Date
(herein called "Defaulted Interest") shall forthwith cease to be payable to the
Holder on the relevant Regular Record Date by virtue of having been such
Holder, and such Defaulted Interest may be paid by the Company, at its election
in each case, as provided in Clause (1) or (2) below:
(1) The Company may elect to make payment of any
Defaulted Interest to the Persons in whose names the Securities 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 reasonably 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 in this Clause
provided. Thereupon the Trustee shall fix a Special Record Date for
the payment of such Defaulted Interest which shall be not more than 15
days and not less than 10 days prior to the date of the proposed
payment and not less than 15 days after the receipt by the Trustee of
the notice of the proposed payment. The Trustee shall promptly notify
the Company of such Special Record Date and, in the name and at the
expense of the Company, shall cause notice of the proposed payment of
such Defaulted Interest and the Special Record Date therefor to be
given to each Holder of Securities of such series, in the manner set
forth 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 the Securities of any series in any other lawful manner
not inconsistent with the requirements of any securities exchange on
which such 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.
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<PAGE> 42
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.
Subject to the provisions of Section 1202, in the case of any
Security which is converted after any Regular Record Date and on or prior to
the next succeeding Interest Payment Date (other than any Security the
principal of (or premium, if any, on)) which shall become due and payable,
whether at a Stated Maturity or by declaration of acceleration, call for
redemption, or otherwise, prior to such Interest Payment Date), interest whose
Stated Maturity is on such Interest Payment Date shall be payable on such
Interest Payment Date notwithstanding such conversion and such interest
(whether or not punctually paid or duly provided for) shall be paid to the
Person in whose name that Security (or any one or more Predecessor Securities)
is registered at the close of business on such Regular Record Date. Except as
otherwise expressly provided in the immediately preceding sentence, in the case
of any Security which is converted, interest whose Stated Maturity is after the
date of conversion of such Security shall not be payable.
Section 308. Persons Deemed Owners. Prior to due presentment
of a Security for registration of transfer, the Company, the Trustee and any
agent of the Company or the Trustee may treat the Person in whose name such
Security is registered as the owner of such Security for the purpose of
receiving payment of principal of and any premium and (subject to Section 307)
any interest on such Security and for all other purposes whatsoever, whether or
not such Security be overdue, and neither the Company, the Trustee nor any
agent of the Company or the Trustee shall be affected by notice to the
contrary.
Section 309. Cancellation. All Securities surrendered for
payment, redemption, registration of transfer or exchange or for credit against
any sinking fund payment or for conversion shall, if surrendered to any Person
other than the Trustee, be delivered to the Trustee and shall be promptly
canceled by it. The Company may at any time deliver to the Trustee for
cancellation any Securities previously authenticated and delivered hereunder
which the Company may have acquired in any manner whatsoever, and may deliver
to the Trustee (or to any other Person for delivery to the Trustee) for
cancellation any Securities previously authenticated hereunder which the
Company has not issued and sold, and all Securities so delivered shall be
promptly canceled by the Trustee. No Securities shall be authenticated in lieu
of or in exchange for any Securities canceled as provided in this Section,
except as expressly permitted by this Indenture. All canceled Securities held
by the Trustee shall be disposed of as directed by a Company Order or, in the
absence of such Company Order, in accordance with the Trustee's customary
practice. Acquisition by the Company of any Security shall not operate as a
redemption or satisfaction of the indebtedness represented by such Security
unless and until the same is delivered to the Trustee for cancellation.
Section 310. Computation of Interest. Except as otherwise
specified as contemplated by Section 301 for Securities of any series, interest
on the Securities of each series shall be computed on the basis of a 360-day
year of twelve 30-day months.
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ARTICLE FOUR
SATISFACTION AND DISCHARGE
Section 401. Satisfaction and Discharge of Indenture. This
Indenture shall upon Company Request cease to be of further effect (except as
to any surviving rights of conversion, registration of transfer or exchange of
Securities of a series herein expressly provided for) with respect to
Securities of any series, and the Trustee, at the expense of the Company, shall
execute proper instruments acknowledging satisfaction and discharge of this
Indenture with respect to a series, when
(1) either
(A) all Securities of such series theretofore
authenticated and delivered (other than (i) Securities which have been
destroyed, lost or stolen and which have been replaced or paid as
provided in Section 306 and (ii) Securities of such series for whose
payment money has theretofore been deposited in trust or segregated
and held in trust by the Company and thereafter repaid to the Company
or discharged from such trust, as provided in Section 1003) have been
delivered to the Trustee for cancellation; or
(B) all such Securities of such series not theretofore
delivered to the Trustee for cancellation
(i) have become due and payable, or
(ii) will become due and payable at their Stated
Maturity within one year, or
(iii) are to be called for redemption within one
year under arrangements reasonably satisfactory to the Trustee
for the giving of notice of redemption by the Trustee in the
name, and at the expense, of the Company,
and the Company, in the case of (i), (ii) or (iii) above, has
deposited or caused to be deposited with the Trustee in trust
irrevocably (A) money (in United States dollars) 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 will provide, not later than one day before the due date of any
payment, money in an amount, or (C) a combination thereof, 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 the entire indebtedness on such
Securities of such series not theretofore delivered to the Trustee for
cancellation, for principal of (and premium, if any) and interest to
the date of such deposit (in the case of Securities of such series
which have become due and payable) or to the Stated Maturity or
Redemption Date, as the case may be;
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(2) the Company has paid or caused to be paid all other
sums payable hereunder by the Company; 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 with respect to such series have been
complied with.
In the event there are Securities of two or more series
outstanding hereunder, the Trustee shall be required to execute an instrument
acknowledging satisfaction and discharge of this Indenture only if requested to
do so with respect to Securities of a particular series as to which it is
Trustee and if the other conditions thereto are met. In the event that there
are two or more Trustees hereunder, then the effectiveness of any such
instrument shall be conditioned upon receipt of such instruments from all
Trustees hereunder.
Notwithstanding the satisfaction and discharge of this
Indenture with respect to a particular series, the obligations of the Company
to the Trustee under Section 607, the obligations of the Company to any
Authenticating Agent under Section 614 and, if money shall have been deposited
with the Trustee pursuant to subclause (B) of Clause (1) of this Section, the
obligations of the Trustee under Section 402 and the last paragraph of Section
1003 shall survive until there are no Securities Outstanding with respect to a
particular series and the obligations of the Company and the Trustee with
respect to all other series of Securities shall survive.
Section 402. Application of Trust Fund. Subject to provisions
of the last paragraph of Section 1003, all amounts deposited with the Trustee
pursuant to Section 401 shall be held in trust and applied by it, in accordance
with the provisions of the Securities and this Indenture, to the payment,
either directly or through any Paying Agent (including the Company acting as
its own Paying Agent) as the Trustee may determine, to the Persons entitled
thereto, of the principal and any premium and interest for whose payment such
funds have been deposited with the Trustee. Money deposited pursuant to this
section not in violation of this Indenture shall not be subject to claims of
the holders of Senior Debt under Article Fifteen.
ARTICLE FIVE
REMEDIES
Section 501. Events of Default.
"Event of Default" whenever used with respect to Securities of
a series means any one of the following events and such other events as may be
established with respect to the Securities of such series as contemplated by
Section 301 hereof (whether or not it shall be occasioned by the provisions of
Article Fifteen):
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(1) Default in the payment of any installment of interest
upon any of the Securities of such series as and when the same shall
become due and payable, and continuance of such default for a period
of 30 days; or
(2) Default in the payment of the principal of or
premium, if any, on any of the Securities of such series as and when
the same shall become due and payable either at maturity, upon
redemption, by declaration of acceleration or otherwise and
continuance of such default for a period of ten days; or
(3) Default in the making of any sinking fund payment,
whether mandatory or optional, as and when the same shall become due
and payable by the terms of the Securities of such series and
continuance of such default for a period of ten days; or
(4) Failure on the part of the Company duly to observe or
perform any other of the covenants or agreements on the part of the
Company contained in this Indenture (other than those set forth
exclusively in the terms of any other particular series of Securities
established as contemplated by this Indenture for the benefit of such
other series) and written notice of such failure, stating that such
notice is a "Notice of Default" hereunder, and requiring the Company
to remedy the same, shall have been given by registered or certified
mail, return receipt requested, to the Company by the Trustee, or to
the Company and the Trustee by the Holders of at least 25% in
aggregate principal amount of the Outstanding Securities of that
series, and such failure shall have continued unremedied for a period
of 90 days after the date of the Company's receipt of such Notice of
Default; or
(5) (i) An event of default, as defined in any
indenture or instrument evidencing or under which the Company or any
Principal Subsidiary shall have outstanding indebtedness for borrowed
money in a principal amount in excess of $25,000,000, shall happen and
be continuing and such indebtedness shall have been accelerated so
that the same shall be or become due and payable prior to the date on
which the same would otherwise have become due and payable or (ii) the
Company or any Principal Subsidiary shall default in the payment at
final maturity of outstanding indebtedness for borrowed money in a
principal amount in excess of $25,000,000, and such acceleration or
default at maturity shall not be waived, rescinded or annulled within
30 days after written notice thereof, stating that such notice is a
"Notice of Default" hereunder, shall have been given to the Company by
the Trustee (if such event be known to it), or to the Company and the
Trustee by the Holders of at least 25% in aggregate principal amount
of the Outstanding Securities of that series; provided, however, that
if such acceleration under such indenture or instrument or default at
maturity shall be remedied or cured by the Company or Principal
Subsidiary, or waived, rescinded or annulled by the requisite holders
of such indebtedness, then the Event of Default hereunder by reason
thereof shall be deemed likewise to have been thereupon remedied,
cured or waived without further action upon the part of either the
Trustee or any of the Holders; or
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(6) A decree or order by a court having jurisdiction in
the premises shall have been entered adjudging the Company a bankrupt
or insolvent, or approving as properly filed a petition seeking
reorganization, arrangement, adjustment or composition of the Company
under any applicable Federal or State bankruptcy or similar law, and
such decree or order shall have continued undischarged and unstayed
for a period of 90 days; or a decree or order of a court having
jurisdiction in the premises for the appointment of a receiver,
liquidator, trustee, assignee, sequestrator or similar official in
bankruptcy or insolvency of the Company or of all or substantially all
of its property, or for the winding up or liquidation of its affairs,
shall have been entered, and such decree or order shall have continued
undischarged and unstayed for a period of 90 days; or
(7) The Company shall institute proceedings to be
adjudicated a voluntary bankrupt, or shall consent to the filing of a
bankruptcy proceeding against it, or shall file a petition or answer
or consent seeking reorganization, arrangement, adjustment or
composition under any applicable Federal or State bankruptcy or
similar law, or shall consent to the filing of any such petition, or
shall consent to the appointment of a receiver, liquidator, trustee,
assignee, sequestrator or similar official in bankruptcy or insolvency
of the Company or of all or substantially all of its property, or
shall make an assignment for the benefit of creditors, or shall admit
in writing its inability to pay its debts generally as they become due
and its willingness to be adjudged a bankrupt, or corporate action
shall be taken by the Company in furtherance of any of the aforesaid
purposes; or
(8) Any other Event of Default provided with respect to
Securities of that series.
The Company shall deliver to the Trustee written notice of any
Event of Default or event which with the giving of notice or lapse of time or
both would become an Event of Default under clauses (4), (5), (6) and (7)
hereof within 30 days of knowledge thereof by the Company, provided that in the
case of clause (4) no such notice will be required to be given by the Company
if such default shall be cured by the Company within such 30 day period.
The Trustee shall not be charged with knowledge of any default
(as defined in Section 602) or Event of Default unless written notice thereof
shall have been given to the Trustee by the Company, the Paying Agent of that
series (provided that no such notice shall be required to be given if the
Trustee acts as Paying Agent of such series), or with respect to a default or
an Event of Default under clause (5) of this Section by the holder of any such
indebtedness or an agent of the holder of any such indebtedness or by the
trustee then acting under any such indenture or other instrument under which
such default shall have occurred, or by Holders of at least 25% in aggregate
principal amount of the Outstanding Securities of that series.
Section 502. Acceleration of Maturity; Rescission and
Annulment. If an Event of Default with respect to Securities of any series at
the time Outstanding occurs and is continuing, then in every such case the
Trustee or the Holders of not less than 25% in principal amount of the
Outstanding Securities of that series may declare the principal amount (or, if
any of the Securities
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of that series are Original Issue Discount Securities, such portion of the
principal amount of such Securities as may be specified in the terms thereof)
of all of the 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 principal amount (or specified amount) shall
become immediately due and payable.
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 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,
(B) the principal of (and premium, if any, on)
any Securities of that series which have become due otherwise
than by such declaration of acceleration and any interest
thereon at the rate or rates prescribed therefor in such
Securities,
(C) to the extent that payment of such interest
is lawful, interest upon overdue interest at the rate or rates
prescribed therefor in such Securities, 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 any other amounts due the Trustee under Section
607, except such costs and expenses as are a result of
negligence or bad faith on the part of the Trustee; and
(2) all Events of Default with respect to Securities of
that series, other than the non-payment of the principal of and
interest, if any, on the Securities of that series which have become
due solely by such declaration of acceleration, 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 when such interest becomes due and payable and such default
continues for a period of 30 days, or
(2) default is made in the payment of the principal of
(or premium, if any, on) any Security at the Maturity thereof and
continuance of such default for a period of ten days,
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the Company will, upon written demand of the Trustee, pay to it, for the
benefit of the Holders of such Securities, the whole amount then due and
payable on such Securities for principal and any premium and interest and, to
the extent that payment of such interest shall be legally enforceable, interest
on any overdue principal and premium and on any overdue interest, at the rate
or rates prescribed therefor in such 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 and any other amounts due the
Trustee under Section 607, except such costs and expenses, as are a result of
negligence or bad faith on the part of the Trustee. Until such demand is made
by the Trustee, the Company may pay the principal of and premium, if any, and
interest, if any, on the Securities of any series to the registered Holders,
whether or not the Securities of such series are overdue.
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 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 its creditors, the Trustee shall be entitled and
empowered, by intervention in such proceeding or otherwise, to take any and all
actions authorized under the Trust Indenture Act in order to have claims of the
Holders and the Trustee 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 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, except such costs and expenses
as are a result of negligence or bad faith on the part of the Trustee.
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 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, however, that the Trustee may, on behalf of the 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
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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
except such costs and expenses, as are a result of negligence or bad faith on
the part of the Trustee, be for the ratable benefit of the Holders of the
Securities in respect of which such judgment has been recovered.
Section 506. Application of Money Collected. Subject to
Article Fifteen, any money collected by the Trustee pursuant to this Article
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 any premium or interest, upon presentation of the Securities and the
notation thereon of the payment if only partially paid and upon surrender
thereof if fully paid:
First: To the payment of all amounts due the Trustee under
Section 607;
Second: To the payment of the amounts then due and unpaid for
principal of and any premium and interest on the Securities in respect
of which or for the benefit of which such money has been collected,
ratably, without preference or priority of any kind, according to the
amounts due and payable on such Securities for principal and any
premium and interest, respectively; and
Third: To the payment of the remainder, if any, to the Company
or any other Person lawfully entitled thereto.
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;
(2) the Holders of not less than 25% 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
indemnity reasonably satisfactory in form and substance to the Trustee
against the costs, expenses and liabilities to be incurred in
compliance with such request;
(4) the Trustee for 60 days after its receipt of such
notice, request and offer of indemnity has failed to institute any
such proceeding; and
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(5) no direction inconsistent with such written request
has been given to the Trustee during such 60-day period by the Holders
of a majority in principal amount of the Outstanding Securities of
that series;
it being understood and intended that no one or more of such 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 of
such Holders, or to obtain or to seek to obtain priority or preference over any
other of such Holders or to enforce any right under this Indenture, except in
the manner herein provided and for the equal and ratable benefit of all of such
Holders.
Section 508. Unconditional Right of Holders to Receive
Principal, Premium and Interest and to Convert. Notwithstanding any other
provision in this Indenture, the Holder of any Security shall have the right,
which in absolute and unconditional, to receive payment of the principal of and
any premium and (subject to Section 307) any interest on such Security on the
Stated Maturity or Maturities expressed in such Security (or, in the case of
redemption, on the Redemption Date) and to convert such Securities in
accordance with the terms thereof and to institute suit for the enforcement of
any such payment or such right of conversion, and such rights shall not be
impaired without the consent of such Holder.
Section 509. Restoration of Rights and Remedies. If the
Trustee or any Holder has instituted any proceeding to enforce any right or
remedy under this Indenture and such proceeding has been discontinued or
abandoned for any reason, or has been determined adversely to the Trustee or to
such Holder, then and in every such case, subject to any determination in such
proceeding, the Company, the Trustee and the Holders shall be restored
severally and respectively to their former positions hereunder and thereafter
all rights and remedies of the Trustee and the Holders shall continue as though
no such proceeding had been instituted.
Section 510. Rights and Remedies Cumulative. Except as
otherwise provided with respect to the replacement or payment of mutilated,
destroyed, lost or stolen Securities in the last paragraph of Section 306, no
right or remedy 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 Securities 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. Subject to Section 507, every right and remedy given by
this Article 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.
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Section 512. Control by Holders. With respect to the
Securities of any series, the Holders of not less than a majority in principal
amount of the Outstanding Securities of such 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,
(2) the Trustee shall not determine that the action so
directed would be unjustly prejudicial to the Holders not taking part
in such direction, and
(3) the Trustee may take any other action deemed proper
by the Trustee which is not inconsistent with such direction.
Section 513. Waiver of Past Defaults. The Holders of not less
than a majority in principal amount of the Outstanding Securities 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 any premium or
interest on any Security of such series, or
(2) in respect of a covenant or provision hereof which
under Article Nine cannot be modified or amended without the consent
of the Holder of each Outstanding Security 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; provided,
however, that neither this Section 514 nor the Trust Indenture Act will be
deemed to authorize any court to require such an undertaking or to make such an
assessment in any suit instituted by the Company or the Trustee.
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ARTICLE SIX
THE TRUSTEE
Section 601. Certain Duties and Responsibilities. The duties
and responsibilities of the Trustee shall be as provided by the Trust Indenture
Act.
(a) If an Event of Default with respect to Securities of
any series at the time Outstanding 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 its
exercise, as a prudent person would exercise or use under the
circumstances in the conduct of his or her own affairs.
(b) Except during the continuance of an Event of Default:
(1) the Trustee need perform only those duties
that are specifically set forth in this Indenture and no
others and no implied covenants or obligations shall be read
into this Indenture against the Trustee; and
(2) the Trustee may conclusively rely, as to the
truth of the statements and the correctness of the opinions
expressed therein, in the absence of bad faith on its part,
upon certificates or opinions furnished to the Trustee and
conforming to the requirements of this Indenture. The
Trustee, however, shall examine such certificates and opinions
to determine whether or not they conform to the requirements
of this Indenture but need not verify the accuracy of the
contents thereof.
(c) The Trustee may not be relieved from liability for
its own negligent action, its own negligent failure to act, or its own
wilful misconduct, except that:
(1) this paragraph does not limit the effect of
paragraph (b) of this Section;
(2) the Trustee shall not be liable for any error
of judgment made in good faith by a Responsible Officer,
unless it is proved that the Trustee was negligent in
ascertaining the pertinent facts; and
(3) the Trustee shall not be liable with respect
to any action it takes or omits to take in good faith in
accordance with a direction received by it pursuant to Section
512.
(d) Every provision of this Indenture that in any way
relates to the Trustee is subject to paragraphs (a), (b) and (c) of
this Section.
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(e) The Trustee may refuse to perform any duty or
exercise any right or power unless it receives indemnity reasonably
satisfactory to it against any loss, liability or expense.
(f) The Trustee shall not be liable for interest on any
money received by it except as the Trustee may agree in writing with the
Company. Money held in trust by the Trustee need not be segregated from other
funds, except to the extent required by law.
Notwithstanding the foregoing, no provision of this Indenture shall require the
Trustee to expend or risk its own funds or otherwise incur any financial
liability in the performance of any of its duties hereunder, or in the exercise
of any of its rights or powers, if it shall have reasonable grounds for
believing that repayment of such funds or adequate indemnity against such risk
or liability is not reasonably assured to it. Whether or not therein expressly
so provided, every provision of this Indenture relating to the conduct or
affecting the liability of or affording protection to the Trustee shall be
subject to the provisions of this Section.
Section 602. Notice of Defaults. If a default or Event of
Default occurs and is continuing hereunder with respect to Securities of any
series, and if such default or Event of Default is known to a Responsible
Officer of the Trustee, the Trustee shall mail the Holders of Securities of
such series notice of such default within 90 days after it occurs; provided,
however, that in the case of any default of the character specified in Section
501(4) with respect to Securities of such series, no such notice to Holders
shall be given until at least 30 days after the occurrence thereof. Except in
the case of a default in payment on any Security of any series or in the
payment of any sinking fund installment, the Trustee may withhold notice if and
so long as a trust committee of directors or Responsible Officers of the
Trustee in good faith determines that withholding the notice is in the interest
of Holders of Securities of such series. For the purpose of this Section, the
term "default" means any event which is, or after notice or lapse of time or
both would become, an Event of Default with respect to Securities of such
series.
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 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
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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;
(d) the Trustee may consult with counsel and the written
advice of such Counsel or any Opinion of Counsel shall be full and
complete authorization and protection in respect of any action taken,
suffered or omitted by it hereunder in good faith and in reliance
thereon;
(e) the Trustee shall be under no obligation to exercise
any of the rights or powers vested in it by this Indenture at the
request or direction of any of the Holders pursuant to this Indenture,
unless such Holders shall have offered to the Trustee security or
indemnity reasonably satisfactory in form and substance to the Trustee
against the costs, expenses and liabilities which might be incurred by
it in compliance with such request or direction;
(f) the Trustee shall not be bound to make any
investigation into the facts or matters stated in any resolution,
certificate, statement, instrument, opinion, report, notice, request,
direction, consent, order, bond, debenture, note, other evidence of
indebtedness or other paper or document, but the Trustee, in its
discretion, may make such further inquiry or investigation into such
facts or matters as it may see fit, and, if the Trustee shall
determine to make such further inquiry or investigation, it shall upon
reasonable notice to the Company be entitled to examine the books,
records and premises of the Company, personally or by agent or
attorney at a time and place acceptable to the Company;
(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 permissive right of the Trustee to take or
refrain from taking any actions enumerated in this Indenture shall not
be construed as a duty and the Trustee shall not be answerable for
taking or refraining from taking such actions other than for its own
negligence or willful misconduct; and
(i) the Trustee shall not be liable for any action it
takes or omits to take in good faith which it reasonably believes to
be authorized or within its 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, shall be taken as the statements of
the Company, and the Trustee or any Authenticating Agent assumes no
responsibility for their correctness. The Trustee makes no representations as
to the validity or sufficiency of this Indenture or of the Securities.
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The Trustee or any Authenticating Agent 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 in writing with the
Company.
Section 607. Compensation and Reimbursement. The Company
agrees
(1) to pay to the Trustee from time to time
reasonable compensation for all services rendered by it
hereunder (which compensation shall not be limited by any
provision of law in regard to the compensation of a trustee of
an express trust);
(2) except as otherwise expressly provided
herein, to reimburse the Trustee upon its written 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
reasonable expenses and disbursements of its agents and
outside counsel), except any such expense, disbursement or
advance as may be attributable to its negligence or bad faith;
and
(3) to indemnify the Trustee for, and to hold it
harmless against, any loss, liability or expense (including
the reasonable fees and expenses of legal counsel) incurred
without negligence or bad faith on its part, arising out of or
in connection with the acceptance or administration of the
trust or trusts and the performance of its duties hereunder,
including the reasonable costs and expenses of defending
itself against any claim or liability in connection with the
exercise or performance of any of its powers or duties
hereunder.
To secure the Company's payment obligations under this
Section, the Trustee shall have a lien prior to the Securities on all money or
property of the Company held or collected by the Trustee in its capacity as
Trustee or as Paying Agent hereunder (but not in any other capacity), except
that held in trust to pay principal of (and premium, if any) or interest on
particular Securities.
When the Trustee incurs expenses or renders services after an
Event of Default specified in Section 501(6) or (7) occurs with respect to any
series of Securities, the expenses and
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the compensation for the services are intended to constitute expenses of
administration under any Federal or State bankruptcy law or 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 Four or Article
Thirteen hereof and the termination of this Indenture.
Section 608. Disqualification; Conflicting Interests. If the
Trustee has or shall acquire any 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. To the extent
permitted by such Act, the Trustee shall not be deemed to have a conflicting
interest by virtue of being a trustee under this Indenture with respect to the
Securities of more than one series.
Section 609. Corporate Trustee Required; Eligibility. There
shall at all times be a Trustee hereunder which shall be a Person that is
eligible pursuant to the Trust Indenture Act to act as such and has a combined
capital and surplus of at least $50,000,000 or is a subsidiary of a corporation
which shall be a Person that has a combined capital and surplus of at least
$50,000,000 and which unconditionally and irrevocably guarantees the
obligations of the Trustee hereunder upon terms satisfactory to the Company. If
such Person publishes reports of condition at least annually, pursuant to law
or to the requirements of said supervising or examining authority, then for the
purposes of this Section, the combined capital and surplus of such Person shall
be deemed to be its combined capital and surplus as set forth in its most
recent report of condition so published. If at any time the Trustee shall cease
to be eligible in accordance with the provisions of this Section, it shall
resign immediately in the manner and with the effect hereinafter specified in
this Article.
Section 610. Resignation and Removal; Appointment of
Successor.
(a) No resignation or removal of the Trustee and no
appointment of a successor Trustee pursuant to this Article shall become
effective until the acceptance of appointment by the successor Trustee in
accordance with the applicable requirements of Section 611.
(b) The Trustee may resign at any time with respect to
the Securities of one or more series by giving written notice thereof to the
Company. If the instrument of acceptance by a successor Trustee required by
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 any 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.
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(d) If at any time:
(1) the Trustee shall fail to comply with Section
608 after written request thereof 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, 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 itself 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 be
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 or Trustees
with respect to the Securities of that or those series (it being understood
that any such successor Trustee may be appointed with respect to the Securities
of one or more or all of such series and that at any time there shall be only
one Trustee with respect to the Securities of any particular series) and shall
comply with the applicable requirements of Section 611. 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 with respect to the Securities of
such series and to that extent supersede the successor Trustee 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 the manner required by 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 itself 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 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 of Securities of such series in the manner
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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 such successor Trustee so
appointed shall execute, acknowledge and deliver to the Company and to the
retiring Trustee an instrument accepting such appointment, and thereupon the
resignation or removal of the retiring Trustee shall become effective and such
successor Trustee, without any further act, deed or conveyance, shall become
vested with all the rights, powers, trusts and duties of the retiring Trustee;
but, on the request of the Company or the successor Trustee, such retiring
Trustee shall, upon payment of its charges, execute and deliver an instrument
transferring to such successor Trustee all the rights, powers and trusts of the
retiring Trustee and shall duly assign, transfer and deliver to such successor
Trustee all property and money held by such retiring Trustee hereunder, subject
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 such series shall execute and deliver an indenture supplemental
hereto wherein each successor Trustee shall accept such appointment and which
(1) shall contain such provisions as shall be necessary or desirable to
transfer the rights, powers, trust 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 Trustee 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 hereunder with respect to the Securities of that or those
series to which the appointment of such successor Trustee relates.
(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
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all such rights, powers and trusts referred to in paragraphs (a) and (b) of
this Section, as the case may be.
(d) No successor 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 such corporation shall be otherwise qualified and eligible under this
Article, without the execution or filing of any paper or any further act on the
part of 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 with the consent of the Company appoint an Authenticating Agent or Agents
with respect to one or more series of Securities which 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, partial
conversion or partial redemption thereof or pursuant to Section 306, and
Securities so authenticated shall be entitled to the benefits of this Indenture
and shall be valid and obligatory for all purposes as if authenticated by the
Trustee hereunder. Wherever reference is made in this Indenture to the
authentication and delivery of Securities by the Trustee or the Trustee's
certificate of authentication, such reference shall be deemed to include
authentication and delivery on behalf of the Trustee by an Authenticating Agent
and a certificate of authentication executed on behalf of the Trustee by an
Authenticating Agent. Each Authenticating Agent shall be acceptable to the
Company and shall at all times be a corporation organized and doing business
under the laws of the United States of America, any State thereof or the
District of Columbia, authorized under such laws to act as Authenticating
Agent, having a combined capital and surplus of not less than $50,000,000 and
subject to supervision or examination by Federal or State authority. If such
Authenticating Agent publishes reports of condition at least annually, pursuant
to law or to the requirements of said supervising or examining authority, then
for the purposes of this Section, the combined capital and surplus of such
Authenticating Agent shall be deemed to be its combined capital and surplus as
set forth in its most recent report of condition so published. If at any time
an Authenticating Agent shall
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cease to be eligible in accordance with the provisions of this Section, such
Authenticating Agent shall resign immediately in the manner and with the effect
specified in this Section.
Any corporation into which an Authenticating Agent may be
merged or converted or with which it may be consolidated, or any corporation
resulting from any merger, conversion or consolidation to which such
Authenticating Agent shall be a party, or any corporation succeeding to the
corporate agency or corporate trust business of an Authenticating Agent, shall
continue to be an Authenticating Agent, provided such corporation shall be
otherwise eligible under this Section, without the execution or filing of any
paper or any further act on the part of the Trustee or the Authenticating
Agent.
An Authenticating Agent may resign at any time by giving
written notice thereof to the Trustee and to the Company. The Trustee or the
Company may at any time terminate the agency of an Authenticating Agent by
giving written notice thereof to such Authenticating Agent and to the Company
or the Trustee, as the case may be. Upon receiving such a notice of resignation
or upon such a termination, or in case at any time such Authenticating Agent
shall cease to be eligible in accordance with the provisions of this Section,
the Trustee may appoint a successor Authenticating Agent which shall be
acceptable to the Company and shall mail written notice of such appointment by
first-class mail, postage prepaid, to all Holders of Securities of the series
with respect to which such Authenticating Agent will serve, 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.
The Company agrees to pay to each Authenticating Agent from
time to time reasonable compensation for its services under this Section.
If an appointment with respect to one or more series is made
pursuant to this Section, the Securities of such series may have endorsed
thereon, in addition to the Trustee's certificate of authentication, an
alternative certificate of authentication in the following form:
This is one of the Securities of the series designated therein
referred to in the within-mentioned Indenture.
----------------------------------------,
as Trustee
By
-----------------------------------------
as Authenticating Agent
By
---------------------------------------
Authorized Officer
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ARTICLE SEVEN
HOLDERS' LISTS AND REPORTS BY TRUSTEE AND COMPANY
Section 701. Company to Furnish Trustee Names and Addresses of
Holders. The Company will furnish or cause to be furnished to the Trustee
(a) semi-annually, not later than 10 days after each
Regular Record Date in each year, a list for each series of
Securities, in such form as the Trustee may reasonably require, of the
names and addresses of the Holders of Securities of such series as of
the preceding 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;
provided, however, that if and so long as the Trustee shall be the Security
Registrar for the Securities of a series, no such list need be furnished with
respect to such series of Securities.
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 the Holders to communicate with other
Holders with respect to their rights under this Indenture or under the
Securities, and the corresponding rights and privileges 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 names and addresses of Holders made
pursuant to the Trust Indenture Act or other applicable law.
Section 703. Reports by Trustee.
(a) The Trustee shall transmit to Holders such reports
concerning the Trustee and its actions under this Indenture as may be required
pursuant to the Trust Indenture Act at the times
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and in the manner provided pursuant thereto. To the extent that any such report
is required by the Trust Indenture Act with respect to any 12 month period,
such report shall cover the 12 month period ending July 15 and shall be
transmitted by the next succeeding September 15.
(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 any Securities are listed, with the Commission and with the Company. The
Company will notify the Trustee when any Securities are listed on any stock
exchange.
Section 704. Reports by Company. The Company shall file with
the Trustee and the Commission, and transmit to Holders, such information,
documents and other reports, and such summaries thereof, as may be required
pursuant to the Trust Indenture Act at the times and in the manner provided
pursuant to such Act. Any information, documents or reports required to be
filed by the Company 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, OR SALE OF ASSETS
Section 801. Company May Consolidate, Etc. Only on Certain
Terms. The Company shall not consolidate with or merge into any other Person or
sell its properties and assets as, or substantially as, an entirety to any
Person, and the Company shall not permit any Person to consolidate with or
merge into the Company, unless:
(1) the Company will be the surviving or
resulting entity or, in case the Company shall consolidate with
or merge into another Person or sell its properties and assets
as, or substantially as, an entirety to any Person, the Person
formed by such consolidation or into which the Company is
merged or the Person which purchases the properties and assets
of the Company as, or substantially as, an entirety shall be a
corporation, partnership or trust, shall be organized and
validly existing under the laws of the United States of
America, any State thereof or the District of Columbia and
shall expressly assume, by an indenture supplemental hereto,
executed and delivered to the Trustee, in form reasonably
satisfactory to the Trustee, all of the obligations of the
Company under the Securities and the Indenture and the
conversion rights, if any, shall be provided for in accordance
with Article Twelve, by supplemental indenture reasonably
satisfactory in form to the Trustee, executed and delivered to
the Trustee, by the Person (if other than the Company) formed
by such consolidation or into which the Company shall have been
merged or by the Person which shall have acquired the Company's
assets;
(2) immediately after giving effect to such
transaction, no Event of Default shall have happened and be
continuing; and
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(3) the Company has delivered to the Trustee an
Officers' Certificate and an Opinion of Counsel, each stating
that such consolidation, merger or sale and, if a supplemental
indenture is required in connection with such transaction,
such supplemental indenture comply with this Article and that
all conditions precedent herein provided for relating to such
transaction have been complied with.
Section 802. Successor Substituted. Upon any consolidation of
the Company with, or merger of the Company into, any other Person or any sale
of the properties and assets of the Company as, or substantially as, an
entirety in accordance with Section 801, the successor Person formed by such
consolidation or into which the Company is merged or to which such sale is made
shall succeed to, and be substituted for, and may exercise every right and
power of, the Company under this Indenture with the same effect as if such
successor Person had been named as the Company herein, and thereafter, the
predecessor Person shall be relieved of all obligations and covenants under
this Indenture and the Securities.
ARTICLE NINE
SUPPLEMENTAL INDENTURES
Section 901. Supplemental Indentures Without Consent of
Holders. Without the consent of any Holders, the Company, when authorized by a
Board Resolution, and the Trustee, at any time and from time to time, may enter
into one or more indentures supplemental hereto, in form reasonably
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 additional Events of Default are to be for the
benefit of less than all series of Securities, stating that
such additional Events of Default are expressly being included
solely for the benefit of such series); or
(4) to add to or change any of the provisions of
this Indenture to such extent as shall be necessary to permit
or facilitate the issuance of Securities in bearer form,
registrable or not registrable as to principal, and with or
without interest
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coupons, or to permit or facilitate the issuance of Securities
in uncertificated form; or
(5) to add to or change any of the provisions of
this Indenture to such extent as shall be necessary to permit
or facilitate the issuance of Securities of any series
denominated in one or more foreign currencies, currency units
or composite currencies; or
(6) to add to, change or eliminate any of the
provisions of this Indenture in respect of one or more series
of Securities, including, without limitation, with respect to
any of the provisions set forth in Article Fifteen, provided
that any such addition, change or elimination (i) shall
neither (A) apply to any Security of any series created prior
to the execution of such supplemental indenture and entitled
to the benefit of such provision nor (B) modify the rights of
the Holder of any such Security with respect to such provision
or (ii) shall become effective only when there is no such
Security Outstanding; or
(7) to secure the Securities of any series; or
(8) to establish the form or terms of Securities
of any series as permitted by Sections 201 and 301; or
(9) to evidence and provide for the acceptance of
appointment hereunder 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, pursuant to the
requirements of Section 611(b); or
(10) to cure any ambiguity, to correct or
supplement any provision herein which may be inconsistent with
any other provision herein, or to make any other provisions
with respect to matters or questions arising under this
Indenture, provided that such action pursuant to this clause
shall not adversely affect the interests of the Holders of
Securities of any series in any material respect; or
(11) to make provision with respect to the
conversion rights of Holders pursuant to the requirements of
Article Twelve, including providing for the conversion of the
Securities into any security (other than the Common Stock of
the Company) or property of the Company; or
(12) to conform to any mandatory provisions of
law.
Section 902. Supplemental Indentures With Consent of Holders.
With the consent of the Holders of not less than a majority of principal amount
of the Outstanding Securities of each
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series affected by such supplemental indenture, by Act of said Holders
delivered to the Company and the Trustee, the Company, when authorized by a
Board Resolution, and the Trustee may enter into an indenture or indentures
supplemental hereto for the purpose of adding any provisions to or changing in
any manner or eliminating any of the provisions of this Indenture or of
modifying in any manner the rights of the Holders of Securities of such series
under this Indenture; provided, however, 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 principal of or interest on, any Security, or
reduce the principal amount thereof or the rate of interest thereon
(including any change in the Floating or Adjustable Rate Provision
pursuant to which such rate is determined that would reduce such rate
for any period) or any premium payable upon the redemption thereof, or
reduce the amount of the principal of an Original Issue Discount
Security that would be due and payable upon a declaration of
acceleration of the Maturity thereof pursuant to Section 502, or
change any 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, in the case of redemption,
on or after the Redemption Date); provided, however, that with the
consent of the Holders of not less than 75% of the Outstanding
Securities of any series affected, the Company may postpone any
interest payment in respect of such series for a period not to exceed
three years, 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 (of compliance with certain
provisions of this Indenture or certain defaults hereunder and their
consequences) provided for in this Indenture, or
(3) if applicable, make any changes that adversely
affects the right to convert any Security to which the provisions of
Article Twelve are applicable or, except as provided in this
Indenture, decrease the conversion rate or increase the conversion
price of any such Security, or
(4) modify any of the provisions of this Section, Section
513 or Section 908, 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, provided, however, that this
clause shall not be deemed to require the consent of any Holder with
respect to changes in the references to "the Trustee" and concomitant
changes in this Section and Section 908, or the deletion of this
proviso, in accordance with the requirements of Sections 611(b) and
901(9), or
(5) make any change in the subordination provisions of
this Indenture that would adversely affect the Holders of the
Securities.
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
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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.
It shall not be necessary for any Act of Holders under this
Section to approve the particular form of any proposed supplemental indenture,
but it shall be sufficient if such Act shall approve the substance thereof.
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, in addition
to the documents required by Section 102, an Opinion of Counsel stating that
the execution of such supplemental indenture is authorized or permitted by this
Indenture and, with respect to supplemental indentures under Section 902
hereof, evidence of the consents of Holders required in connection therewith.
The Trustee may, but shall not be obligated to, enter into any such
supplemental indenture which affects the Trustee's own rights, duties or
immunities under this Indenture or otherwise.
Section 904. Effect of Supplemental Indentures. Upon the
execution of any supplemental indenture under this Article, 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.
Section 905. Revocation and Effect of Consents. Until an
amendment or supplement under this Article or a waiver under this Article
becomes effective, a consent to it by a Holder of a Security is a continuing
consent by the Holder and every subsequent Holder of a Security or portion of a
Security that evidences the same debt as the consenting Holder's Security, even
if notation of the consent is not made on any Security. However, any such
Holder or subsequent Holder may revoke the consent as to his Security or
portion of a Security if the Trustee receives the notice of revocation before
the date the amendment, supplement or waiver becomes effective.
After an amendment or supplement becomes effective, it shall
bind every Holder.
Section 906. Conformity with Trust Indenture Act. Every
supplemental indenture executed pursuant to this Article shall conform to the
requirements of the Trust Indenture Act.
Section 907. Reference in Securities to Supplemental
Indentures. Securities of any series authenticated and delivered after the
execution of any supplemental indenture pursuant to this Article 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
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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.
Section 908. Waiver of Compliance by Holders. Anything in this
Indenture to the contrary notwithstanding, any of the acts which the Company is
required to do, or is prohibited from doing, by any of the provisions of this
Indenture may, to the extent that such provisions might be changed or
eliminated by a supplemental indenture pursuant to Section 902 upon consent of
Holders of not less than a majority in aggregate principal amount of the then
Outstanding Securities of the series affected, be omitted or done by the
Company, if there is obtained the prior consent or waiver of the Holders of at
least a majority in aggregate principal amount of the then Outstanding
Securities of such series.
Section 909. Subordination Unimpaired. No provision in any
supplemental indenture that affects the superior position of the holders of
Senior Debt shall be effective against holders of Senior Debt.
Section 910. Notice of Supplemental Indenture. Promptly after
the execution by the Company and the Trustee of any supplemental indenture
pursuant to the provisions of Section 902, the Company shall give notice
thereof to the Holders of each Outstanding Security affected, in the manner
provided for in Section 106, setting forth in general terms the substance of
the supplemental indenture.
ARTICLE TEN
COVENANTS
Section 1001. Payment of Principal, Premium and Interest. The
Company covenants and agrees for the benefit of each series of Securities that
it will duly and punctually pay or cause to be paid the principal of and any
premium and interest on the Securities of that series in accordance with the
terms of the Securities and this Indenture.
Section 1002. Maintenance of Office or Agency. So long as any
Securities are Outstanding, the Company will maintain in each Place of Payment
for any series of Securities an office or agency where Securities of that
series may be presented or surrendered for payment, where Securities of that
series may be surrendered for registration of transfer or exchange, where
Securities of that series may be surrendered for conversion and where notices
and demands to or upon the Company in respect of the Securities of that series
and this Indenture may be served. The Company will 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.
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The Company may also from time to time designate one or more
other offices or agencies 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, however, that no such designation or
rescission shall in any manner relieve the Company of its obligation to
maintain an office or agency in each Place of Payment for Securities of any
series for such purposes. The Company will 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.
Section 1003. Money for Securities 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 Securities, it will, on or before each due date of the
principal of or any premium 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 any premium and interest so
becoming due until such sums shall be paid to such Persons or otherwise
disposed of as herein provided and will 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 of Securities, it will, prior to each due date of the principal of
or any premium or interest on any Securities of that series, deposit with a
Paying Agent a sum sufficient to pay such amount, such sum to be held as
provided by the Trust Indenture Act, and (unless such Paying Agent is the
Trustee) the Company will promptly notify the Trustee of its action or failure
so to act.
The Company will cause each Paying Agent for any series of
Securities other than the Trustee to execute and deliver to the Trustee an
instrument in which such Paying Agent shall agree with the Trustee, subject to
the provisions of this Section, that such Paying Agent will (i) comply with the
provisions of the Trust Indenture Act applicable to it as a Paying Agent and
(ii) during the continuance of any default by the Company (or any other obligor
upon the Securities of that series) in the making of any payment in respect of
the Securities of that series, and upon the written request of the Trustee,
forthwith pay to the Trustee all sums held in trust by such Paying Agent for
payment in respect of the Securities of that series.
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.
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 or any
premium or interest on any Security of any series and remaining unclaimed for
two years after such principal, premium 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
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an unsecured general creditor, look only to the Company for payment thereof,
and all liability of the Trustee or such Paying Agent with respect to such
trust money, and all liability of the Company as trustee thereof, shall
thereupon cease; provided, however, that the Trustee or such Paying Agent,
before being required to make any such repayment, may at the request and
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 Borough of Manhattan, the City of New York, notice that such
money remains unclaimed and that, after a date specified therein, which shall
not be less than 30 days from the date of such publication, any unclaimed
balance of such money then remaining will be repaid to the Company.
Section 1004. Statement by Officers as to Compliance. The
Company will deliver to the Trustee within 120 days after the end of each
fiscal year of the Company ending after the date hereof, a certificate signed
by the Company's principal executive officer, principal financial officer or
principal accounting officer stating to the best knowledge of the signer
thereof whether or not the Company has complied during such immediately
preceding fiscal year with and is in compliance with all terms, conditions and
covenants of this Indenture (without regard to any period of grace or
requirement of notice provided hereunder) and if the signer has obtained
knowledge of any continuing default by the Company in the performance,
observation or fulfillment of any such term, condition or covenant, specifying
each such default and the nature thereof.
ARTICLE ELEVEN
REDEMPTION OF SECURITIES
Section 1101. Applicability of Article. Securities of any
series which are redeemable before their Stated Maturity shall be redeemable in
accordance with their terms and (except as otherwise specified as contemplated
by Section 301 for Securities of any series) in accordance with this Article.
Section 1102. Election to Redeem; Notice to Trustee. In case
of any redemption at the election of the Company 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
reasonably satisfactory to the Trustee), notify the Trustee of such Redemption
Date, of the principal amount of Securities of such series to be redeemed, the
specific provision of the Securities of such series pursuant to which such
Securities being called for redemption are being redeemed and, if applicable,
of the tenor of the Securities to be redeemed. In the case of any redemption of
Securities prior to the expiration of any restriction on such redemption
provided in the terms of such Securities or elsewhere in this Indenture, the
Company shall furnish the Trustee with an Officers' Certificate evidencing
compliance with such restriction.
Section 1103. Selection by Trustee of Securities to Be
Redeemed. If less than all the Securities of any series are to be redeemed
(unless all of the Securities of such series and of a specified tenor are to be
redeemed), the particular Securities to be redeemed shall be selected not
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more than 45 days prior to the Redemption Date by the Trustee, from the
Outstanding Securities of such series not previously called for redemption, by
such method as the Trustee shall deem fair and appropriate and which may
provide for the selection for redemption of portions (equal to the minimum
authorized denomination for Securities of that series or any integral multiple
thereof) of the principal amount of Securities of such series of a denomination
larger than the minimum authorized denomination for Securities of that series.
If less than all of the Securities of such series and of a specified tenor are
to be redeemed, the particular Securities to be redeemed shall be selected not
more than 45 days prior to the Redemption Date by the Trustee, from the
Outstanding Securities of such series and specified tenor not previously called
for redemption in accordance with the preceding sentence.
If any Security selected for partial redemption is converted
in part before termination of the conversion right with respect to the portion
of the Security so selected, the converted portion of such Security shall be
deemed (so far as may be) to be the portion selected for redemption. Securities
which have been converted during a selection of Securities to be redeemed shall
be treated by the Trustee as Outstanding for the purpose of such selection.
The Trustee shall promptly notify the Company 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, unless the context
otherwise requires, all provisions relating to the redemption of Securities
shall relate, in the case of any Securities redeemed or to be redeemed only in
part, to the portion of the principal amount of such Securities which has been
or is to be redeemed.
Section 1104. Notice of Redemption. Notice of redemption shall
be given by first-class mail, postage prepaid, mailed not less than 15 nor more
than 60 days' prior to the Redemption Date, to each Holder of Securities to be
redeemed, at its address appearing in the Security Register.
All notices of redemption shall state:
(1) the Redemption Date,
(2) the Redemption Price and the amount, if any,
of any accrued and unpaid interest payable on the Redemption
Date,
(3) if less than all the Outstanding Securities
of any series are to be redeemed, the identification (and, in
the case of partial redemption of any Securities, the
principal amounts) of the particular Securities to be
redeemed,
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(4) that on the Redemption Date the Redemption
Price will become due and payable upon each such Security to
be redeemed and, if applicable, that interest thereon will
cease to accrue on and after said date,
(5) if applicable, the conversion price, and that
the date on which the right to convert the principal of the
Securities or the portions thereof to be redeemed will
terminate will be the Redemption Date and the place or places
where such Securities may be surrendered for conversion,
(6) the place or places where such Securities are
to be surrendered for payment of the Redemption Price, and
(7) that the redemption is for a sinking fund,
if such is the case.
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.
Section 1105. 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
Payment Date) accrued interest on, all the Securities which are to be redeemed
on that date, other than any Securities called for redemption on that date
which have been converted prior to the date of such deposit.
If any Security or portion thereof called for redemption is
converted, any money deposited with the Trustee or with any Paying Agent or so
segregated and held in trust for the redemption of such Security or portion
thereof shall (subject to any right of the Holder of such Security or any
Predecessor Security to receive interest as provided in the last paragraph of
Section 307) be paid to the Company upon Company Request or, if then held by
the Company, shall be discharged from such trust.
Section 1106. 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 accrued interest) such
Securities shall cease to bear interest. Upon surrender of any such Security
for redemption in accordance with said notice, such Security shall be paid by
the Company at the Redemption Price, together with accrued interest to the
Redemption Date; provided, however, that, unless otherwise specified as
contemplated by Section 301, 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
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Securities, registered as such at the close of business on the relevant Record
Dates according to their terms and the provisions of Section 307.
If any Security called for redemption shall not be so paid
upon surrender thereof for redemption, the principal and any premium shall,
until paid, bear interest from the Redemption Date at the rate prescribed
therefor in the Security.
Section 1107. Securities Redeemed in Part. Any Security which
is to be redeemed only in part shall be surrendered at a Place of Payment
therefor (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 and of like tenor, of any authorized
denomination as requested by such Holder, in aggregate principal amount equal
to and in exchange for the unredeemed portion of the principal of the Security
so surrendered.
ARTICLE TWELVE
CONVERSION OF SECURITIES
Section 1201. Applicability of Article. The provisions of this
Article shall be applicable to the Securities of any series which are
convertible into shares of Common Stock of the Company, and the issuance of
such shares of Common Stock upon the conversion of such Securities, except as
otherwise specified as contemplated by Section 301 for the Securities of such
series.
Section 1202. Exercise of Conversion Privilege. In order to
exercise a conversion privilege, the Holder of a Security of a series with such
a privilege shall surrender such Security to the Company at the office or
agency maintained for that purpose pursuant to Section 1002, accompanied by
written notice to the Company that the Holder elects to convert such Security
or a specified portion thereof. Such notice shall also state, if different from
the name and address of such Holder, the name or names (with address) in which
the certificate or certificates for shares of Common Stock which shall be
issuable on such conversion shall be issued. Securities surrendered for
conversion shall (if so required by the Company or the Trustee) be duly
endorsed by or accompanied by instruments of transfer in forms satisfactory to
the Company and the Trustee duly executed by the registered Holder or its
attorney duly authorized in writing; and Securities so surrendered for
conversion during the period from the close of business on any Regular Record
Date to the opening of business on the next succeeding Interest Payment Date
(excluding Securities or portions thereof called for redemption during such
period) shall also be accompanied by payment of an amount equal to the interest
payable on such Interest Payment Date on the principal amount of such Security
then being converted, and such interest shall be payable to such registered
Holder notwithstanding the conversion of such Security, subject to the
provisions of Section 307 relating to the payment of Defaulted Interest by the
Company. As promptly as practicable after the receipt of such notice and of any
payment required pursuant to a Board Resolution and, subject to Section
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303, set forth, or determined in the manner provided, in an Officers'
Certificate, or established in one or more indentures supplemental hereto
setting forth the terms of such series of Security, and the surrender of such
Security in accordance with such reasonable procedures as the Company may
prescribe, the Company shall issue and shall deliver, at the office or agency
at which such Security is surrendered, to such Holder or on its written order,
a certificate or certificates for the number of full shares of Common Stock
issuable upon the conversion of such Security (or specified portion thereof),
in accordance with the provisions of such Board Resolution, Officers'
Certificate or supplemental indenture, and cash as provided therein in respect
of any fractional share of such Common Stock otherwise issuable upon such
conversion. Such conversion shall be deemed to have been effected immediately
prior to the close of business on the date on which such notice and such
payment, if required, shall have been received in proper order for conversion
by the Company and such Security shall have been surrendered as aforesaid
(unless such Holder shall have so surrendered such Security and shall have
instructed the Company to effect the conversion on a particular date following
such surrender and such Holder shall be entitled to convert such Security on
such date, in which case such conversion shall be deemed to be effected
immediately prior to the close of business on such date) and at such time the
rights of the Holder of such Security as such Security Holder shall cease and
the person or persons in whose name or names any certificate or certificates
for shares of Common Stock of the Company shall be issuable upon such
conversion shall be deemed to have become the Holder or Holders of record of
the shares represented thereby. Except as set forth above and subject to the
final paragraph of Section 307, no payment or adjustment shall be made upon any
conversion on account of any interest accrued on the Securities surrendered for
conversion or on account of any dividends on the Common Stock of the Company
issued upon such conversion.
In the case of any Security which is converted in part only,
upon such conversion the Company shall execute and the Trustee shall
authenticate and deliver to or on the order of the Holder thereof, at the
expense of the Company, a new Security or Securities of the same series, of
authorized denominations, in aggregate principal amount equal to the
unconverted portion of such Security.
Section 1203. No Fractional Shares. No fractional share of
Common Stock of the Company shall be issued upon conversions of Securities of
any series. If more than one Security shall be surrendered for conversion at
one time by the same Holder, the number of full shares which shall be issuable
upon conversion shall be computed on the basis of the aggregate principal
amount of the Securities (or specified portions thereof to the extent permitted
hereby) so surrendered. If, except for the provisions of this Section 1203, any
Holder of a Security or Securities would be entitled to a fractional share of
Common Stock of the Company upon the conversion of such Security or Securities,
or specified portions thereof, the Company shall pay to such Holder an amount
in cash equal to the current market value of such fractional share computed,
(i) if such Common Stock is listed or admitted to unlisted trading privileges
on a national securities exchange, on the basis of the last reported sale price
regular way on such exchange on the last trading day prior to the date of
conversion upon which such a sale shall have been effected, or (ii) if such
Common Stock is not at the time so listed or admitted to unlisted trading
privileges on a national securities exchange, on the basis of the average of
the bid and asked prices of such Common Stock in the over-the-counter
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market, on the last trading day prior to the date of conversion, as reported by
the National Quotation Bureau, Incorporated or similar organization if the
National Quotation Bureau, Incorporated is no longer reporting such
information, or if not so available, the fair market price as determined by the
Board of Directors. For purposes of this Section, "trading day" shall mean each
Monday, Tuesday, Wednesday, Thursday and Friday other than any day on which the
Common Stock is not traded on the American Stock Exchange, or if the Common
Stock is not traded on the American Stock Exchange, on the principal exchange
or market on which the Common Stock is traded or quoted.
Section 1204. Adjustment of Conversion Price. The conversion
price of Securities of any series that is convertible into Common Stock of the
Company shall be adjusted for any stock dividends, stock splits,
reclassification, combinations or similar transactions in accordance with the
term of the supplemental indenture or Board Resolutions setting forth the terms
of the Securities of such series.
Whenever the conversion price is adjusted, the Company shall
compute the adjusted conversion price in accordance with terms of the
applicable Board Resolution or supplemental indenture and shall prepare an
Officers' Certificate setting forth the adjusted conversion price and showing
in reasonable detail the facts upon which such adjustment is based, and such
certificate shall forthwith be filed at each office or agency maintained for
the purpose of conversion of Securities pursuant to Section 1002 and, if
different, with the Trustee. The Company shall forthwith cause a notice setting
forth the adjusted conversion price to be mailed, first class postage prepaid,
to each Holder of Securities of such series at its address appearing on the
Security Register and to any conversion agent other than the Trustee.
Section 1205. Notice of Certain Corporate Actions. In case:
(a) the Company shall declare a dividend (or any
other distribution) on its Common Stock payable otherwise than
in cash out of its retained earnings (other than a dividend
for which approval of any stockholders of the Company is
required); or
(b) the Company shall authorize the granting to
the holders of its Common Stock of rights, options or warrants
to subscribe for or purchase any shares of capital stock of
any class or of any other rights (other than any such grant
for which approval of any stockholders of the Company is
required); or
(c) of any reclassification of the Common Stock
of the Company (other than a subdivision or combination of its
outstanding shares of Common Stock, or of any consolidation,
merger or share exchange to which the Company is a party and
for which approval of any stockholders of the Company is
required), or of the sale of all or substantially all of the
assets of the Company; or
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(d) of the voluntary or involuntary dissolution,
liquidation or winding up of the Company;
then the Company shall cause to be filed with the Trustee, and shall cause to
be mailed to all Holders at their last addresses as they shall appear in the
Securities Register, at least 20 days (or 10 days in any case specified in
clause (a) or (b) above) prior to the applicable record date hereinafter
specified, a notice stating (i) the date on which a record is to be taken for
the purpose of such dividend, distribution, rights, options or warrants, or, if
a record is not to be taken, the date as of which the holders of Common Stock
of record to be entitled to such dividend, distribution, rights, options or
warrants are to be determined, or (ii) the date on which such reclassification,
consolidation, merger, share exchange, sale, dissolution, liquidation or
winding up is expected to become effective, and the date as of which it is
expected that holders of Common Stock of record shall be entitled to exchange
their shares of Common Stock for securities, cash or other property deliverable
upon such reclassification, consolidation, merger, share exchange, sale,
dissolution, liquidation or winding up. If at any time the Trustee shall not be
the conversion agent, a copy of such notice shall also forthwith be filed by
the Company with the Trustee.
Section 1206. Reservation of Shares of Common Stock. The
Company shall at all times reserve and keep available, free from preemptive
rights, out of its authorized but unissued Common Stock, for the purpose of
effecting the conversion of Securities, the full number of shares of Common
Stock of the Company then issuable upon the conversion of all outstanding
Securities of any series that has conversion rights.
Section 1207. Payment of Certain Taxes Upon Conversion. The
Company will pay any and all taxes that may be payable in respect of the issue
or delivery of shares of its Common Stock on conversion of Securities pursuant
hereto. The Company shall not, however, be required to pay any tax which may be
payable in respect of any transfer involved in the issue and delivery of shares
of its Common Stock in a name other than that of the Holder of the Security or
Securities to be converted, and no such issue or delivery shall be made unless
and until the Person requesting such issue has paid to the Company the amount
of any such tax, or has established, to the satisfaction of the Company, that
such tax has been paid.
Section 1208. Nonassessability. The Company covenants that all
shares of its Common Stock which may be issued upon conversion of Securities
will upon issue in accordance with the terms hereof be duly and validly issued
and fully paid and nonassessable.
Section 1209. Effect of Consolidation or Merger on Conversion
Privilege. In case of any consolidation of the Company with, or merger of the
Company into or with any other Person, or in case of any sale of all or
substantially all of the assets of the Company, the Company or the Person
formed by such consolidation or the Person into which the Company shall have
been merged or the Person which shall have acquired such assets, as the case
may be, shall execute and deliver to the Trustee a supplemental indenture in
accordance with Section 801 providing that the Holder of each Security then
outstanding of any series that is convertible into Common Stock of the
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Company shall have the right, which right shall be the exclusive conversion
right thereafter available to said Holder (until the expiration of the
conversion right of such Security), to convert such Security into the kind and
amount of shares of stock or other securities or property (including cash)
receivable upon such consolidation, merger or sale by a holder of the number of
shares of Common Stock of the Company into which such Security might have been
converted immediately prior to such consolidation, merger or sale, subject to
compliance with the other provisions of this Indenture, such Security and such
supplemental indenture. Such supplemental indenture shall provide for
adjustments which shall be as nearly equivalent as may be practicable to the
adjustments provided for in such Security. The above provisions of this Section
shall similarly apply to successive consolidations, mergers or sales. It is
expressly agreed and understood that anything in this Indenture to the contrary
notwithstanding, if, pursuant to such merger, consolidation or sale, holders of
outstanding shares of Common Stock of the Company do not receive shares of
common stock of the surviving corporation but receive other securities, cash or
other property or any combination thereof, Holders of Securities shall not have
the right to thereafter convert their Securities into common stock of the
surviving corporation or the corporation which shall have acquired such assets,
but rather, shall have the right upon such conversion to receive the other
securities, cash or other property receivable by a holder of the number of
shares of Common Stock of the Company into which the Securities held by such
holder might have been converted immediately prior to such consolidation,
merger or sale, all as more fully provided in the first sentence of this
Section 1209. Anything in this Section 1209 to the contrary notwithstanding,
the provisions of this Section 1209 shall not apply to a merger or
consolidation of another corporation with or into the Company pursuant to which
both of the following conditions are applicable: (i) the Company is the
surviving corporation and (ii) the outstanding shares of Common Stock of the
Company are not changed or converted into any other securities or property
(including cash) or changed in number or character or reclassified pursuant to
the terms of such merger or consolidation.
As evidence of the kind and amount of shares of stock or other
securities or property (including cash) into which Securities may properly be
convertible after any such consolidation, merger or sale, or as to the
appropriate adjustments of the conversion prices applicable with respect
thereto, the Trustee shall be furnished with and may accept the certificate or
opinion of an independent certified public accountant with respect thereto;
and, in the absence of bad faith on the part of the Trustee, the Trustee may
conclusively rely thereon, and shall not be responsible or accountable to any
Holder of Securities for any provision in conformity therewith or approved by
such independent certified accountant which may be contained in said
supplemental indenture.
Section 1210. Duties of Trustee Regarding Conversion. Neither
the Trustee nor any conversion agent shall at any time be under any duty or
responsibility to any Holder of Securities of any series that is convertible
into Common Stock of the Company to determine whether any facts exist which may
require any adjustment of the conversion price, or with respect to the nature
or extent of any such adjustment when made, or with respect to the method
employed, whether herein or in any supplemental indenture, any resolutions of
the Board of Directors or written instrument executed by one or more officers
of the Company provided to be employed in making the same. Neither the Trustee
nor any conversion agent shall be accountable with respect to the validity or
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value (or the kind or amount) of any shares of Common Stock of the Company, or
of any securities or property, which may at any time be issued or delivered
upon the conversion of any Securities and neither the Trustee nor any
conversion agent makes any representation with respect thereto. Subject to the
provisions of Section 601, neither the Trustee nor any conversion agent shall
be responsible for any failure of the Company to issue, transfer or deliver any
shares of its Common Stock or stock certificates or other securities or
property upon the surrender of any Security for the purpose of conversion or to
comply with any of the covenants of the Company contained in this Article
Twelve or in the applicable supplemental indenture, resolutions of the Board of
Directors or written instrument executed by one or more duly authorized
officers of the Company.
Section 1211. Repayment of Certain Funds Upon Conversion. Any
funds which at any time shall have been deposited by the Company or on its
behalf with the Trustee or any other paying agent for the purpose of paying the
principal of, and premium, if any, and interest, if any, on any of the
Securities (including funds deposited for the sinking fund referred to in
Article Three hereof) and which shall not be required for such purposes because
of the conversion of such Securities as provided in this Article Twelve shall
after such conversion be repaid to the Company by the Trustee upon the
Company's written request by Company Request.
ARTICLE THIRTEEN
DEFEASANCE AND COVENANT DEFEASANCE
Section 1301. Company's Option to Effect Defeasance or
Covenant Defeasance. The Company may elect, at any time, to have either Section
1302 or Section 1303 applied to the Outstanding Securities of any series, upon
compliance with the conditions set forth below in this Article Thirteen.
Section 1302. Defeasance and Discharge. Upon the Company's
exercise of the option provided in Section 1301 to have this Section 1302
applied to the Outstanding Securities of any series, the Company shall be
deemed to have been discharged from its obligations, and the provisions of
Article Fifteen shall cease to be effective, with respect to the Outstanding
Securities of such series as provided in this Section on and after the date the
conditions set forth in Section 1304 are satisfied (hereinafter called
"Defeasance"). For this purpose, such Defeasance means that the Company shall
be deemed to have paid and discharged the entire indebtedness represented by
the Outstanding Securities of such series and to have satisfied all its other
obligations under the Securities of such series and this Indenture insofar as
the Securities of such series 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 Securities of such series to receive,
solely from the trust fund described in Section 1304 and as more fully set
forth in such Section, payments in respect of the principal of and any premium
and interest on such Securities of such series when payments are due, (2) the
Company's obligations with respect to the Securities of such series under
Sections 304, 305, 306, 1002 and 1003, (3) the rights, powers, trusts, duties
and immunities of the Trustee hereunder,
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including, without limitation, its rights under Section 607 and (4) this
Article Thirteen. Subject to compliance with this Article Thirteen, the Company
may exercise its option provided in Section 1301 to have this Section 1302
applied to the Outstanding Securities of any series notwithstanding the prior
exercise of its option provided in Section 1301 to have Section 1303 applied to
the Outstanding Securities of such series.
Section 1303. Covenant Defeasance. Upon the Company's exercise
of the option provided in Section 1301 to have this Section 1303 applied to the
Outstanding Securities of any series, (1) the Company shall be released from
its obligations under Section 801 and (2) the occurrence of any event specified
in Sections 501(3), 501(4) (with respect to Section 801) and 501(5) shall be
deemed not to be or result in an Event of Default, and (3) the provisions of
Article Fifteen shall cease to be effective, in each case with respect to the
Outstanding Securities of such series as provided in this Section on and after
the date the conditions set forth in Section 1304 are satisfied (hereinafter
called "Covenant Defeasance"). For this purpose, such Covenant Defeasance means
that 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 Section 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 the Securities
of such series shall be unaffected thereby.
Section 1304. Conditions to Defeasance or Covenant Defeasance.
The following shall be the conditions to application of either Section 1302 or
Section 1303 to the Outstanding Securities of any series:
(1) The Company shall elect by Board Resolution
to effect a Defeasance pursuant to Section 1302 or a Covenant
Defeasance pursuant to Section 1303 with respect to the
Outstanding Securities of any series specified in such Board
Resolution (the "Defeasible Series").
(2) 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
Thirteen 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 benefit of the
Holders of Outstanding Securities of such series, (i) money in
an amount, or (ii) U.S. Government Obligations that through
the scheduled payment of principal and interest in respect
thereof in accordance with their terms will provide, not later
than one day before the due date of any payment, money in an
amount, or (iii) 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,
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the principal of and any premium and interest on the
Securities of such series on the respective Stated Maturities,
in accordance with the terms of this Indenture and the
Securities of such series. As used herein, "U.S. Government
Obligation" means (x) any security that is (i) a direct
obligation of the United States of America for the payment of
which full faith and credit of the United States of America is
pledged or (ii) an obligation of a Person controlled or
supervised by and acting as an agency or instrumentality for
the United States of America the payment of which is
unconditionally guaranteed as a full faith and credit
obligation by the United States of America, which, in either
case (i) or (ii), is not callable or redeemable at the option
of the issuer thereof, and (y) any depositary receipt issued
by a bank (as defined in Section 3(a)(2) of the Securities Act
of 1933, as amended) as custodian with respect to any specific
payment of principal of or interest on any such U.S.
Government Obligation specified in Clause (x) and held by such
custodian for the account of the holder of such depositary
receipt, or with respect to any specific payment of principal
of or interest on any such U.S. Government Obligation,
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 principal or interest
evidenced by such depositary receipt.
(3) In the case of an election under Section
1302, the Company shall have delivered to the Trustee an
Opinion of Counsel stating that (i) the Company has received
from, or there has been published by, the Internal Revenue
Service, a ruling or (ii) since the date hereof, there has
been a change in the applicable Federal income tax law, in
case of either (i) or (ii) to the effect that, and based
thereon such opinion shall confirm that, the Holders of such
Securities will not recognize gain or loss for Federal income
tax purposes as a result of such deposit and Defeasance and
discharge to be effected with respect to the Securities of
such series and will 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, Defeasance and discharge were not
to occur.
(4) In the case of an election under Section
1303, the Company shall have delivered to the Trustee an
Opinion of Counsel to the effect that the Holder of the
Outstanding Securities of such series will not recognize gain
or loss for Federal income tax purposes as result of the
deposit and Covenant Defeasance to be effected with respect to
the Securities of such series and will 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.
(5) The Company shall have delivered to the
Trustee an Officers' Certificate to the effect that the
Securities of such series, if then listed on any securities
exchange, will not be delisted as a result of such deposit.
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(6) No Event of Default or event that (after
notice or lapse of time or both) would become an Event of
Default shall have occurred and be continuing at the time of
such deposit or, with regard to any Event of Default or any
such event specified in Sections 501(6) and 501(7), at any
time on or prior to the 90th day after the date of such
deposit (it being understood that this condition shall not be
deemed satisfied until after such 90th day).
(7) The Company shall have delivered to the
Trustee an Officer's Certificate and an Opinion of Counsel,
each stating that all conditions precedent with respect to
such Defeasance or Covenant Defeasance have been complied
with.
(8) 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
qualified under such Act or exempt from regulation thereunder.
(9) At the time of such deposit: (A) no default
in the payment of principal of (or premium, if any) or
interest on any Senior Debt shall have occurred and be
continuing or (B) no other event of default with respect to
any Senior Debt shall have occurred and be continuing and
shall have resulted in such Senior Debt becoming or being
declared due and payable prior to the date on which it would
otherwise have become due and payable, or, in the case of
either Clause (A) or Clause (B) above, each such default or
event of default shall have been cured or waived or shall have
ceased to exist.
Section 1305. Deposited Money and U.S. Government Obligations
to Be Held in Trust; Other 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 and Section 1306,
the Trustee and any such other trustee are referred to collectively as the
"Trustee") pursuant to Section 1304 in respect of the Securities of any
Defeasible Series shall be held in trust and applied by the Trustee, in
accordance with the provisions of the Securities of such series and this
Indenture, to the payment, either directly or through any such Paying Agent
(including the Company acting as its own Paying Agent) as the Trustee may
determine, to the Holders of Securities of such series, 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. Money so held in trust shall not be subject to the
provisions of Article Fifteen.
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 1304 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.
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Anything in this Article Thirteen 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 1304 with respect to Securities of any Defeasible Series
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 an equivalent Defeasance or Covenant Defeasance with
respect to the Securities of such series.
Section 1306. Reinstatement. If the Trustee or the Paying
Agent is unable to apply any money in accordance with this Article Thirteen
with respect to the 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 Company's obligations under this
Indenture and the Securities of such series shall be revived and reinstated as
though no deposit had occurred pursuant to this Article Thirteen with respect
to 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 1305 with
respect to Securities of such series in accordance with this Article Thirteen;
provided, however, that if the Company makes any payment of principal of or any
premium or interest on any Security of such series following the reinstatement
of its obligations, the Company shall be subrogated to the rights of the
Holders of Securities of such series to receive such payment from the money so
held in trust.
ARTICLE FOURTEEN
SINKING FUNDS
Section 1401. Applicability of Article. The provisions of this
Article shall be applicable to any sinking fund for the retirement of
Securities of a series except as otherwise specified as contemplated by Section
301 for Securities of such series.
The minimum amount of any sinking fund payment provided for by
the terms of Securities of any series is herein referred to as a "mandatory
sinking fund payment", and any payment in excess of such minimum amount
provided for by the terms of Securities of any series is herein referred to as
an "optional sinking fund payment." If provided for by the terms of Securities
of any series, the cash amount of any sinking fund payment may be subject to
reduction as provided in Section 1211. Each sinking fund payment shall be
applied to the redemption of Securities of any series as provided for by the
terms of Securities of such series.
Section 1402. Satisfaction of Sinking Fund Payments with
Securities. The Company (1) may deliver Outstanding Securities of a series
(other than any previously called for redemption) and (2) may apply as a credit
Securities of a series which have been converted pursuant to Article Twelve or
Securities of a series which have been acquired or redeemed either at the
election of the Company pursuant to the terms of such Securities or through the
application of permitted optional sinking fund payments pursuant to the terms
of such Securities or otherwise, in each case in satisfaction of all or any
part of any sinking fund payment with respect to the Securities of such
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series required to be made pursuant to the terms of such Securities as provided
for by the terms of such series; provided that such Securities have not been
previously so credited. Such Securities shall be received and credited for such
purpose by the Trustee at the Redemption Price specified in such Securities for
redemption through operation of the sinking fund and the amount of such sinking
fund payment shall be reduced accordingly.
Section 1403. Redemption of Securities for Sinking Fund. Not
less than 60 days prior to each sinking fund payment date for any series of
Securities, the Company shall deliver to the Trustee an Officers Certificate
specifying the amount of the next ensuing sinking fund payment for that series
pursuant to the terms of that series, the portion thereof, if any, which is to
be satisfied by payment of cash and the portion thereof, if any, which is to be
satisfied by delivering and crediting Securities of that series pursuant to
Section 1202 and will also deliver to the Trustee any Securities to be so
delivered. Not less than 30 nor more than 60 days before each such sinking fund
payment date the Trustee shall select the Securities to be redeemed upon such
sinking fund payment date in the manner specified in Section 1103 and cause
notice of the redemption thereof to be given in the name of and at the expense
of the Company in the manner provided in Section 1104 and provide a copy
thereof to the Company five (5) days in advance of the mailing thereof. Such
notice having been duly given, the redemption of such Securities shall be made
upon the terms and in the manner stated in Sections 1105, 1106 and 1107.
ARTICLE FIFTEEN
SUBORDINATION OF SECURITIES
Section 1501. Securities Subordinate to Senior Debt. Except as
otherwise specified pursuant to Section 301 for Securities of any series, the
Company covenants and agrees, and each Holder of a Security, by its acceptance
thereof, likewise covenants and agrees, that, to the extent and in the manner
hereinafter set forth in this Article (subject to the provisions of Article
Four and Article Thirteen), the payment of the principal of (and premium, if
any) and interest on each and all of the Securities are hereby expressly made
subordinate and subject in right of payment to the prior payment in full of all
amounts then due and payable in respect of all Senior Debt.
Section 1502. Payment Over of Proceeds Upon Dissolution, Etc.
In the event of (a) any insolvency or bankruptcy case or proceeding, or any
receivership, liquidation, arrangement, reorganization, debt restructuring or
other similar case or proceeding in connection with any insolvency or
bankruptcy proceeding, relative to the Company or to its assets, or (b) any
liquidation, dissolution or other winding up of the Company, whether voluntary
or involuntary and whether or not involving insolvency or bankruptcy, or (c)
any assignment for the benefit of creditors or any other marshaling of assets
and liabilities of the Company, then and in any such event specified in (a),
(b) or (c) above (each such event, if any, herein sometimes referred to as a
"Proceeding") the holders of Senior Debt shall be entitled to receive payment
in full of all amounts due or to become due on or in respect of all Senior
Debt, or provision shall be made for such payment in cash or cash equivalents
or otherwise in a manner satisfactory to the holders of Senior Debt, before the
Holders
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of the Securities are entitled to receive any payment or distribution of any
kind or character, whether in cash, property or securities (including any
payment or distribution which may be payable or deliverable by reason of the
payment of any other Debt of the Company subordinated to the payment of the
Securities, such payment or distribution being hereinafter referred to as
"Junior Subordinated Payment"), on account of principal of (or premium, if any)
or interest on the Securities or on account of the purchase or other
acquisition of Securities by the Company or any Subsidiary and to that end the
holders of Senior Debt shall be entitled to receive, for application to the
payment thereof, any payment or distribution of any kind or character, whether
in cash, property or securities, including any Junior Subordinated Payment,
which may be payable or deliverable in respect of the Securities in any such
Proceeding.
In the event that, notwithstanding the foregoing provisions of
this Section, the Trustee or the Holder of any Security shall have received any
payment or distribution of assets of the Company of any kind or character,
whether in cash, property or securities, including any Junior Subordinated
Payment, before all Senior Debt is paid in full or payment thereof is provided
for in cash or cash equivalents or otherwise in a manner satisfactory to the
holders of Senior Debt, and if such fact shall, at or prior to the time of such
payment or distribution, have been made known to the Trustee or, as the case
may be, such Holder, then and in such event such payment or distribution shall
be paid over or delivered forthwith to the trustee in bankruptcy, receiver,
liquidating trustee, custodian, assignee, agent or other Person making payment
or distribution of assets of the Company for application to the payment of all
Senior Debt remaining unpaid, to the extent necessary to pay all Senior Debt in
full, after giving effect to any concurrent payment or distribution to or for
the holders of Senior Debt. Any taxes that have been withheld or deducted from
any payment or distribution in respect of the Securities, or any taxes that
ought to have been withheld or deducted from any such payment or distribution
that have been remitted to the relevant taxing authority, shall not be
considered to be an amount that the Trustee or the Holder of any Security
receives for purposes of this Section.
For purposes of this Article only, the words "any payment or
distribution of any kind or character, whether in cash, property or securities"
shall not be deemed to include shares of stock of the Company as reorganized or
readjusted, or securities of the Company or any other corporation provided for
by a plan of reorganization or readjustment which securities are subordinated
in right of payment to all then outstanding Senior Debt to substantially the
same extent as the Securities are so subordinated as provided in this Article.
The consolidation of the Company with, or the merger of the Company into,
another Person or the liquidation or dissolution of the Company following the
sale of all or substantially all of its properties and assets as an entirety to
another Person or the liquidation or dissolution of the Company following the
sale of all or substantially all of its properties and assets as an entirety to
another Person upon the terms and conditions set forth in Article Eight shall
not be deemed a Proceeding for the purposes of this Section if the Person
formed by such consolidation or into which the Company is merged or the Person
which acquires by sale such properties and assets as an entirety, as the case
may be, shall, as a part of such consolidation, merger, or sale comply with the
conditions set forth in Article Eight.
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Section 1503. Prior Payment to Senior Debt Upon Acceleration
of Securities. In the event that any Securities are declared due and payable
before their Stated Maturity, then and in such event the holders of the Senior
Debt outstanding at the time such Securities so become due and payable shall be
entitled to receive payment in full of all amounts due on or in respect of such
Senior Debt, or provision shall be made for such payment in cash or cash
equivalents or otherwise in a manner satisfactory to the holders of Senior
Debt, before the Holders of the Securities are entitled to receive any payment
(including any payment which may be payable by reason of the payment of any
other indebtedness of the Company being subordinated to the payment of the
Securities) by the Company on account of the principal of (or premium, if any)
or interest on the Securities or on account of the purchase or other
acquisition of Securities by the Company or any Subsidiary; provided, however,
that nothing in this Section shall prevent the satisfaction of any sinking fund
payment in accordance with Article Fourteen by delivering and crediting
pursuant to Section 1402 Securities which have been acquired (upon redemption
or otherwise) prior to such declaration of acceleration or which have been
converted pursuant to Article Twelve.
In the event that, notwithstanding the foregoing, the Company
shall make any payment to the Trustee or the Holder of any Security prohibited
by the foregoing provisions of this Section, and if such fact shall, at or
prior to the time of such payment, have been made known to the Trustee or, as
the case may be, such Holder, then and in such event such payment shall be paid
over and delivered forthwith to the Company.
The provisions of this Section shall not apply to any payment
with respect to which Section 1502 would be applicable.
Section 1504. No Payment When Senior Debt in Default. (a) In
the event and during the continuation of any default in the payment of
principal of (or premium, if any) or interest on any Senior Debt, or in the
event that any event of default with respect to any Senior Debt shall have
occurred and be continuing and shall have resulted in such Senior Debt becoming
or being declared due and payable prior to the date on which it would otherwise
have become due and payable, unless and until such event of default shall have
been cured or waived or shall have ceased to exist and such acceleration shall
have been rescinded or annulled, or (b) in the event any judicial proceeding
shall be pending with respect to any such default in payment or such event of
default, then no payment (including any payment which may be payable by reason
of the payment of any other indebtedness of the Company being subordinated to
the payment of the Securities) shall be made by the Company on account of
principal of (or premium, if any) or interest on the Securities or on account
of the purchase or other acquisition of Securities by the Company or any
Subsidiary; provided, however, that nothing in this Section shall prevent the
satisfaction of any sinking fund payment in accordance with Article Fourteen by
delivering and crediting pursuant to Section 1402 Securities which have been
acquired (upon redemption or otherwise) prior to such default in payment or
event of default or which have been converted pursuant to Article Twelve.
In the event that, notwithstanding the foregoing, the Company
shall make any payment to the Trustee or the Holder of any Security prohibited
by the foregoing provisions of this
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Section, and if such fact shall, at or prior to the time of such payment, have
been made known to the Trustee or, as the case may be, such Holder, then and in
such event such payment shall be paid over and delivered forthwith to the
Company.
The provisions of this Section shall not apply to any payment
with respect to which Section 1502 would be applicable.
Section 1505. Payment Permitted If No Default. Nothing
contained in this Article or elsewhere in this Indenture or in any of the
Securities shall prevent (a) the Company, at any time except during the
pendency of any Proceeding referred to in Section 1502 or under the conditions
described in Sections 1503 and 1504, from making payments at any time of
principal of (and premium, if any) or interest on the Securities, or (b) the
application by the Trustee of any money deposited with it hereunder to the
payment of or on account of the principal of (and premium, if any) or interest
on the Securities or the retention of such payment by the Holders, if, at the
time of such application by the Trustee, it did not have knowledge that such
payment would have been prohibited by the provisions of this Article.
Section 1506. Subrogation to Rights of Holders of Senior Debt.
Subject to the payment in full of all Senior Debt, or the provision for such
payment in cash or cash equivalents or otherwise in a manner satisfactory to
the holders of Senior Debt, the Holders of the Securities shall be subrogated
to the extent of the payments or distributions made to the holders of such
Senior Debt pursuant to the provisions of this Article (equally and ratably
with the holders of all indebtedness of the Company which by its express terms
is subordinated to indebtedness of the Company to substantially the same extent
as the Securities are subordinated to the Senior Debt and is entitled to like
rights of subrogation by reason of any payments or distributions made to
holders of such Senior Debt) to the rights of the holders of such Senior Debt
to receive payments and distributions of cash, property and securities
applicable to the Senior Debt until the principal of (and premium, if any) and
interest on the Securities shall be paid in full. If the Trustee or the Holders
of the Securities are not for any reason entitled to be subrogated to the
rights of holders of Senior Debt in respect of such payment or distribution,
then the Trustee or the Holders of the Securities may require each holder of
Senior Debt to whom any such payment or distribution is made as a condition to
such payment or distribution to assign its Senior Debt to the extent of such
payment or distribution and all rights with respect thereto to the Trustee on
behalf of the Holders. Such assignment shall not be effective until such time
as all Senior Debt has been paid in full or payment thereof provided for. For
purposes of such subrogation or assignment, no payments or distributions to the
holders of the Senior Debt of any cash, property or securities to which the
Holders of the Securities or the Trustee would be entitled except for the
provisions of this Article, and no payments over pursuant to the provisions of
this Article to the holders of Senior Debt by Holders of the Securities or the
Trustee, shall, as among the Company, its creditors other than holders of
Senior Debt, and the Holders of the Securities, be deemed to be a payment or
distribution by the Company to or on account of the Senior Debt.
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Section 1507. Provisions Solely to Define Relative Rights. The
provisions of this Article are and are intended solely for the purpose of
defining the relative rights of the Holders of the Securities on the one hand
and the holders of Senior Debt on the other hand. Nothing contained in this
Article or elsewhere in this Indenture or in the Securities is intended to or
shall (a) impair, as among the Company, its creditors other than holders of
Senior Debt, and the Holders of the Securities, the obligations of the Company,
which are absolute and unconditional (and which, subject to the rights under
this Article of the holders of Senior Debt, are intended to rank equally with
all other general unsecured obligations of the Company), to pay to the Holders
of the Securities the principal of (and premium, if any) and interest on the
Securities as and when the same shall become due and payable in accordance with
their terms; or (b) affect the relative rights against the Company of the
Holders of the Securities and creditors of the Company other than the holders
of Senior Debt; or (c) prevent the Trustee or the Holder of any Security from
exercising all remedies otherwise permitted by applicable law upon default
under this Indenture including, without limitation, filing and voting claims in
any Proceeding, subject to the rights, if any, under this Article of the
holders of Senior Debt to receive cash, property and securities otherwise
payable or deliverable to the Trustee or such Holder.
Section 1508. Trustee to Effectuate Subordination. Each Holder
of a Security by his or her acceptance thereof authorizes and directs the
Trustee on his or her behalf to take such action as may be necessary or
appropriate to acknowledge or effectuate the subordination provided in this
Article and appoints the Trustee his or her attorney-in-fact for any and all
such purposes.
Section 1509. No Waiver of Subordination Provisions. No right
of any present or future holder of any Senior Debt to enforce subordination as
herein provided shall at any time in any way be prejudiced or impaired by any
act or failure to act on the part of the Company or by any act or failure to
act, in good faith, by any such holder, or by any noncompliance by the Company
with the terms, provisions and covenants of this Indenture, regardless of any
knowledge thereof that any such holder may have or be otherwise charged with.
Without in any way limiting the generality of the foregoing
paragraph, the holders of Senior Debt may, at any time and from time to time,
without the consent of or notice to the Trustee or the Holders of the
Securities, without incurring responsibility to the Holders of the Securities,
and without impairing or releasing the subordination provided in this Article
or the obligations hereunder of the Holders of the Securities to the holders of
Senior Debt, do any one or more of the following: (i) change the manner, place
or terms of payment or extend the time of payment of, or renew or alter or
increase, Senior Debt, or otherwise amend or supplement in any manner Senior
Debt or any instrument evidencing the same or any agreement under which Senior
Debt is outstanding; (ii) sell, exchange, release or otherwise deal with any
property pledged, mortgaged or otherwise securing Senior Debt; (iii) release
any Person liable in any manner for the collection of Senior Debt; and (iv)
exercise or refrain from exercising any rights against the Company and any
other Person.
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Section 1510. Notice to Trustee. The Company shall give prompt
written notice to the Trustee of any fact known to the Company which would
prohibit the making of any payment to or by the Trustee in respect of the
Securities. Notwithstanding the provisions of this Article or any other
provision of this Indenture, the Trustee shall not be charged with knowledge of
the existence of any facts which would prohibit the making of any payment to or
by the Trustee in respect of the Securities, unless and until the Trustee shall
have received written notice thereof from the Company or a holder of Senior
Debt or from any trustee, agent or representative therefor; and, prior to the
receipt of any such written notice, the Trustee, subject to the provisions of
Section 601, shall be entitled in all respects to assume that no such facts
exist; provided, however, that if the Trustee shall not have received the
notice provided for in this Section at least two Business Days prior to the
date upon which by the terms hereof any money may become payable for any
purpose (including, without limitation, the payment of the principal of (and
premium, if any) or interest on any Security), then, anything herein contained
to the contrary notwithstanding, the Trustee shall have full power and
authority to receive such money and to apply the same to the purpose for which
such money was received and shall not be affected by any notice to the contrary
which may be received by it within two Business Days prior to such date.
Subject to the provisions of Section 601, the Trustee shall be
entitled to rely on the delivery to it of a written notice by a Person
representing himself or herself to be a holder of Senior Debt (or a trustee,
agent or representative therefor) to establish that such notice has been given
by a holder of Senior Debt (or a trustee, agent or representative therefor). In
the event that the Trustee determines in good faith that further evidence is
required with respect to the right of any Person as a holder of Senior Debt to
participate in any payment or distribution pursuant to this Article, the
Trustee may request such Person to furnish evidence to the reasonable
satisfaction of the Trustee as to the amount of Senior Debt held by such
Person, the extent to which such Person is entitled to participate in such
payment or distribution and any other facts pertinent to the rights of such
Person under this Article, and if such evidence is not furnished, the Trustee
may defer any payment to such Person pending judicial determination as to the
right of such Person to receive such payment.
Section 1511. Reliance on Judicial Order or Certificate of
Liquidating Agent. Upon any payment or distribution of assets of the Company
referred to in this Article, the Trustee, subject to the provisions of Section
601, and the Holders of the Securities shall be entitled to rely upon any order
or decree entered by any court of competent jurisdiction in which such
Proceeding is pending, or a certificate of the trustee in bankruptcy, receiver,
liquidating trustee, custodian, assignee for the benefit of creditors, agent or
other Person making such payment or distribution, delivered to the Trustee or
to the Holders of Securities, for the purpose of ascertaining the Persons
entitled to participate in such payment or distribution, the holders of the
Senior Debt and other indebtedness of the Company, the amount thereof or
payable thereon, the amount or amounts paid or distributed thereon and all
other facts pertinent thereto or to this Article.
Section 1512. Trustee Not Fiduciary For Holders of Senior
Debt. The Trustee, in its capacity as trustee under this Indenture, shall not
be deemed to owe any fiduciary duty to the holders of Senior Debt and shall not
be liable to any such holders if it shall in good faith mistakenly pay over
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<PAGE> 88
or distribute to Holders of Securities or to the Company or to any other Person
cash, property or securities to which any holders of Senior Debt shall be
entitled by virtue of this Article or otherwise.
Section 1513. Rights of Trustee as Holder of Senior Debt;
Preservation of Trustee's Rights. The Trustee in its individual capacity shall
be entitled to all the rights set forth in this Article with respect to any
Senior Debt which may at any time be held by it, to the same extent as any
other holder of Senior Debt, and nothing in this Indenture shall deprive the
Trustee of any of its rights as such holder.
Nothing in this Article shall apply to claims of, or payments
to, the Trustee under or pursuant to Section 607.
Section 1514. Article Applicable to Paying Agents. In case at
any time any Paying Agent other than the Trustee shall have been appointed by
the Company and be then acting hereunder, the term "Trustee" as used in this
Article shall in such case (unless the context otherwise requires) be construed
as extending to and including such Paying Agent within its meaning as fully for
all intents and purposes as if such Paying Agent were named in this Article in
addition to or in place of the Trustee.
Section 1515. Defeasance of This Article Fifteen. The
subordination of the Securities provided by this Article Fifteen is expressly
made subject to the provisions for defeasance or covenant defeasance in Article
Thirteen and, anything herein to the contrary notwithstanding, upon the
effectiveness of any such defeasance or covenant defeasance, the Securities
then outstanding shall thereupon cease to be subordinated pursuant to this
Article Fifteen.
Section 1516. Certain Conversions Deemed Payment. For the
purposes of this Article only, (1) the issuance and delivery of junior
securities upon conversion of Securities in accordance with Article Twelve
shall not be deemed to constitute a payment or distribution on account of the
principal of (or premium, if any) or interest on Securities or on account of
the purchase or other acquisition of Securities, and (2) the payment, issuance
or delivery of cash, property or securities (other than junior securities) upon
conversion of a Security shall be deemed to constitute payment on account of
the principal of such security. For the purposes of this Section, the term
"junior securities" means (a) shares of any stock of any class of the Company
and (b) securities of the Company which are subordinated in right of payment to
all Senior Debt which may be outstanding at the time of issuance or delivery of
such securities to substantially the same extent as, or to a greater extent
than, the Securities are so subordinated as provided in this Article. Nothing
contained in this Article or elsewhere in this Indenture or in the Securities
is intended to or shall impair, as among the Company, its creditors other than
holders of Senior Debt and the Holders of the Securities, the right, which is
absolute and unconditional, of the Holder of any Security to convert such
Security in accordance with Article Twelve.
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<PAGE> 89
ARTICLE SIXTEEN
REPAYMENT AT OPTION OF HOLDERS
SECTION 1601. Applicability of Article.
Repayment of Securities of any series before their Stated
Maturity at the option of Holders thereof shall be made in accordance with the
terms of such Securities and (except as otherwise specified as contemplated by
Section 301 for Securities of any series) in accordance with this Article.
SECTION 1602. Repayment of Securities.
Securities of any series subject to repayment in whole or in
part at the option of the Holders thereof will, unless otherwise provided in
the terms of such Securities, be repaid at a price equal to the principal
amount thereof, together with interest, if any, thereon accrued to the
Repayment Date specified in or pursuant to the terms of such Securities. The
Company covenants that on or before the Repayment Date it will 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 in the Currency in which the Securities of such series are payable
(except as otherwise specified pursuant to Section 301 for the Securities of
such series) sufficient to pay the principal (or, if so provided by the terms
of the Securities of any series, a percentage of the principal) of, premium, if
any, and (except if the Repayment Date shall be an Interest Payment Date)
accrued interest on, all the Securities or portions thereof, as the case may
be, to be repaid on such date.
SECTION 1603. Exercise of Option.
Securities of any series subject to repayment at the option of
the Holders thereof will contain an "Option to Elect Repayment" form on the
reverse of such Securities. To be repaid at the option of the Holder, any
Security so providing for such repayment, with the "Option to Elect Repayment"
form on the reverse of such Security duly completed by the Holder (or by the
Holder's attorney duly authorized in writing), must be received by the Company
at the Place of Payment therefor specified in the terms of such Security (or at
such other place or places or which the Company shall from time notify the
Holders of such Securities) not earlier than 45 days nor later than 30 days
prior to the Repayment Date. If less than the entire principal amount of such
Security is to be repaid in accordance with the terms of such Security, the
principal amount of such Security to be repaid, in increments of the minimum
denomination for Securities of such series, and the denomination or
denominations of the Security or Securities to be issued to the Holder for the
portion of the principal amount of such Security surrendered that is not to be
repaid, must be specified. The principal amount of any Security providing for
repayment at the option of the Holder thereof may not be repaid in part if,
following such repayment, the unpaid principal amount of such Security would be
less than the minimum authorized denomination of Securities of the series of
which such Security to be repaid is a part. Except as otherwise may be provided
by the terms of any
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<PAGE> 90
Security providing for repayment at the option of the Holder thereof, exercise
of the repayment option by the Holder shall be irrevocable unless waived by the
Company.
SECTION 1604. When Securities Presented for Repayment Become Due and Payable.
If Securities of any series providing for repayment at the
option of the Holders thereof shall have been surrendered as provided in this
Article and as provided by or pursuant to the terms of such Securities, such
Securities or the portions thereof, as the case may be, to be repaid shall
become due and payable and shall be paid by the Company on the Repayment Date
therein specified, and on and after such Repayment Date (unless the Company
shall default in the payment of such Securities on such Repayment Date) such
Securities shall, if the same were interest-bearing, cease to bear interest.
Upon surrender of any such Security for repayment in accordance with such
provisions, the principal amount of such Security so to be repaid shall be paid
by the Company, together with accrued interest, if any, to the Repayment Date;
provided, however, that installments of interest, if any, whose Stated Maturity
is on or prior to the Repayment Date shall be payable to the Holders of such
Securities, or one or more Predecessor Securities, registered as such at the
close of business on the relevant Record Dates according to their terms and the
provisions of Section 307.
If the principal amount of any Security surrendered for
repayment shall not be so repaid upon surrender thereof, such principal amount
(together with interest, if any, thereon accrued to such Repayment Date) shall,
until paid, bear interest from the Repayment Date at the rate of interest or
Yield to Maturity (in the case of Original Issue Discount Securities) set forth
in such Security.
SECTION 1605. Securities Repaid in Part.
Upon surrender of any Security which is to be repaid in part
only, the Company shall execute and the Trustee shall authenticate and deliver
to the Holder of such security, without service charge and at the expense of
the Company, a new Security or Securities of the same series, of any authorized
denomination specified by the Holder, in an aggregate principal amount equal to
and in exchange for the portion of the principal of such Security so
surrendered which is not to be repaid.
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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<PAGE> 91
IN WITNESS WHEREOF, the parties hereto have caused this
Indenture to be duly executed, and their respective corporate seals to be
hereunto affixed and attested, all as of the day and year first above written.
NABORS INDUSTRIES, INC.
By
--------------------------------------
Attest:
----------------------------------------,
as Trustee
By
--------------------------------------
Attest:
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<PAGE> 92
STATE OF NEW YORK )
) ss.:
COUNTY OF NEW YORK )
On the ____ day of ____________________________, before me
personally came ____________________, to me known, who, being by me duly sworn,
did depose and say that (s)he is __________________ of NABORS INDUSTRIES, INC.,
one of the corporations described in and which executed the foregoing
instrument; that (s)he knows the seal of said corporation; that the seal
affixed to said instrument is such corporate seal; that it was so affixed by
authority of the Board of Directors of said corporation, and that (s)he signed
her/his name thereto by like authority.
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<PAGE> 93
STATE OF NEW YORK )
) ss.:
COUNTY OF NEW YORK )
On the day of ______________, before me personally came
________________, to me known, who, being by me duly sworn, did depose and say
that (s)he is __________________ of _____________________, one of the
corporations described in and which executed the foregoing instrument; that
(s)he knows the seal of said corporation; that the seal affixed to said
instrument is such corporate seal; that it was so affixed by authority of the
Board of Directors of said corporation, and that (s)he signed her/his name
thereto by like authority.
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<PAGE> 1
EXHIBIT 4.4
NABORS INDUSTRIES, INC.
Form of Warrant Agreement
[for warrants sold attached to equity securities](1)
THIS WARRANT AGREEMENT is dated as of ___________, _______
between Nabors Industries, Inc., a Delaware corporation (hereinafter called the
"Company", which term includes any successor corporation), and ___________, as
Warrant Agent (herein called the "Warrant Agent").
WHEREAS, the Company proposes to sell [title of Equity
Securities being offered] (the "Offered Securities") with warrant certificates
evidencing one or more warrants (the "Warrants" or, individually, a "Warrant")
representing the right to purchase [title of Equity Securities purchasable
through exercise of Warrants] (the "Warrant Securities"), such warrant
certificates and other warrant certificates issued pursuant to this Agreement
being herein called the "Warrant Certificates"; and
WHEREAS, the Company desires the Warrant Agent to act on
behalf of the Company in connection with the issuance, exchange, exercise and
replacement of the Warrant Certificates, and in this Agreement wishes to set
forth, among other things, the form and provisions of the Warrant Certificates
and the terms and conditions on which they may be issued, exchanged, exercised
and replaced;
NOW, THEREFORE, in consideration of the premises and of the
mutual agreements herein contained, the parties hereto agree as follows:
ARTICLE I.
Issuance of Warrants and Execution and
Delivery of Warrant Certificates.
Section 1.1. Issuance of Warrants. Warrants shall be initially
issued in connection with the issuance of the Offered Securities [but shall be
separately transferable on and after __________ (the "Detachable Date")] [and
shall not be separately transferable] and each Warrant Certificate shall
evidence one or more Warrants. Each Warrant evidenced thereby shall represent
the right, subject to the provisions contained herein and therein, to purchase
Warrant Securities. Warrant Certificates shall be initially issued in units
with the Offering Securities and each Warrant Certificate included in such a
unit shall evidence _____ Warrants for Offered Securities included in such
unit.
__________________________________
(1)Complete or modify the provisions of this Form as appropriate to reflect the
terms of the Warrants and Warrant Securities.
<PAGE> 2
Section 1.2. Execution and Delivery of Warrant Certificates.
Each Warrant Certificate, whenever issued, shall be in registered (2)form
substantially in the form set forth in Exhibit A hereto, shall be dated the
date of its issuance and may have such letters, numbers or other marks of
identification or designation and such legends or endorsements printed,
lithographed or engraved thereon as the officers of the Company executing the
same may approve (execution thereof to be conclusive evidence of such approval)
and as are not inconsistent with the provisions of this Agreement, or as may be
required to comply with any law or with any rule or regulation made pursuant
thereto or with any rule or regulation of any stock exchange on which the
Warrants may be listed, or to conform to usage. The Warrant Certificates shall
be signed on behalf of the Company by its Chairman of the Board, its President,
one of its Vice Presidents, its Treasurer or one of its Assistant Treasurers
under its corporate seal and attested by its Secretary or one of its Assistant
Secretaries. Such signatures may be manual or facsimile signatures of such
authorized officers and may be imprinted or otherwise reproduced on the Warrant
Certificates. The seal of the Company may be in the form of a facsimile thereof
and may be impressed, affixed, imprinted or otherwise reproduced on the Warrant
Certificates.
No Warrant Certificate shall be valid for any purpose, and no
Warrant evidenced thereby shall be exercisable, until such Warrant Certificate
has been countersigned by the manual signature of the Warrant Agent. Such
signature by the Warrant Agent upon any Warrant Certificate executed by the
Company shall be conclusive evidence that the Warrant Certificate so
countersigned has been duly issued hereunder.
In case any officer of the Company who shall have signed any
of the Warrant Certificates either manually or by facsimile signature shall
cease to be such officer before the Warrant Certificates so signed shall have
been countersigned and delivered by the Warrant Agent, such Warrant
Certificates may be countersigned and delivered notwithstanding that the person
who signed such Warrant Certificates ceased to be such officer of the Company;
and any Warrant Certificate may be signed on behalf of the Company by such
persons as, at the actual date of the execution of such Warrant Certificate,
shall be the proper officers of the Company, although at the date of the
execution of this Agreement any such person was not such officer.
The term "holder" or "holder of a Warrant Certificate" as used
herein shall mean any person in whose name at the time any Warrant Certificate
shall be registered upon the books to be maintained by the Warrant Agent for
that purpose. [If Offered Securities with Warrants which are not immediately
detachable - or upon the register of the Offered Securities prior to the
Detachable Date. The Company will or will cause the registrar of the Offered
Securities to make available at all times to the Warrant Agent such information
as to holders of the Offered Securities with Warrants as may be necessary to
keep the Warrant Agent's records up to date.]
Section 1.3. Issuance of Warrant Certificates. Warrant
Certificates evidencing the right to purchase Warrant Securities (except as
provided in Sections 2.3(c), 3.2 and 4.1) may be executed by the Company and
delivered to the Warrant Agent upon the execution of this Warrant Agreement or
from time to time thereafter. The Warrant Agent shall, upon receipt of Warrant
__________________________________
(2)If Warrants are issued in bearer form, appropriate revisions will be made to
this Agreement to facilitate such issuance.
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<PAGE> 3
Certificates duly executed on behalf of the Company, countersign Warrant
Certificates evidencing Warrants representing the right to purchase up to
____________ Warrant Securities and shall deliver such Warrant Certificates to
or upon the order of the Company. Subsequent to such original issuance of the
Warrant Certificates, the Warrant Agent shall countersign a Warrant Certificate
only if the Warrant Certificate is issued in exchange or substitution for one
or more previously countersigned Warrant Certificates or in connection with
their transfer, as hereinafter provided or as provided in Section 2.3(c).
ARTICLE II.
Warrant Price, Duration and Exercise of Warrants.
Section 2.1. Warrant Price. [On ___________, the] [The
original] exercise price of each Warrant is [$]____. [During the period from
_____________, through and including _____________, the exercise price of each
Warrant will be [$]___________. On _______________, the exercise price of each
Warrant will be [$]________.] [if applicable, insert relevant amounts in
applicable foreign currency, currency unit or composite currency] Such purchase
price of Warrant Securities is referred to in this Agreement as the "Warrant
Price." The Warrant Price and the number and kind of Warrant Securities for
which a Warrant may be exercised is subject to adjustment from time to time as
set forth in Article V hereof.
Section 2.2. Duration of Warrants. Each Warrant may be
exercised in whole at any time, as specified herein, on or after [the date
thereof] [_____________] and at or before 5 p.m. New York time on
______________ (the "Expiration Date"). Each Warrant not exercised at or before
5 p.m. New York time on the Expiration Date shall become void, and all rights
of the holder of the Warrant Certificate evidencing such Warrant under this
Agreement shall cease.
Section 2.3. Exercise of Warrants. (a) During the period
specified in Section 2.2, any whole number of Warrants may be exercised by
providing certain information set forth on the reverse side of the Warrant
Certificate and by paying in full, [in lawful money of the United States of
America] [if applicable -- insert relevant foreign currency, currency unit or
composite currency] [in cash or by certified check or official bank check or by
bank wire transfer, in each case] [by bank wire transfer], in immediately
available funds, the Warrant Price for each Warrant exercised, to the Warrant
Agent at its corporate trust office [or at ________], provided that such
exercise is subject to receipt, within three business days of such [payment]
[wire transfer] by the Warrant Agent of the Warrant Certificate with the form
of election to purchase Warrant Securities set forth on the reverse side of the
Warrant Certificate properly completed and duly executed. The date on which
payment in full of the Warrant Price is received by the Warrant Agent shall,
subject to receipt of the Warrant Certificate as aforesaid, be deemed to be the
date on which the Warrant is exercised. The Warrant Agent shall deposit all
funds received by it in payment of the Warrant Price in an account of the
Company maintained with it and shall advise the Company by telephone at the end
of each day on which a [payment] [wire transfer] for the exercise of Warrants
is received of the amount so deposited to its account. The Warrant Agent shall
promptly confirm such telephone advice to the Company in writing.
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<PAGE> 4
(b) The Warrant Agent shall, from time to time, as promptly as
practicable, advise the Company of (i) the number of Warrants exercised, (ii)
the instructions of each holder of the Warrant Certificates evidencing such
Warrants with respect to delivery of the Warrant Securities to which such
holder is entitled upon such exercise, (iii) delivery of Warrant Certificates
evidencing the balance, if any, of the Warrants remaining after such exercise,
and (iv) such other information as the Company shall reasonably require.
(c) As soon as practicable after the exercise of any Warrant,
the Company shall issue to or upon the order of the holder of the Warrant
Certificate evidencing such Warrant, the Warrant Securities to which such
holder is entitled in fully registered form, registered in such name or names
as may be directed by such holder. Such certificate or certificates evidencing
the Warrant Securities shall be deemed to have been issued and any persons who
are designated to be named therein shall be deemed to have become the holder of
record of such Warrant Securities as of the close of business on the exercise
date. No fractional Warrant Securities will be issued upon exercise of any
Warrant. For each fractional Warrant Security that would otherwise be issued,
the Company will pay by company check in an amount equal to such fraction
multiplied by the closing sales price of the Warrant Securities on the
principal national securities exchange on which they are listed (or if not so
listed, another equivalent means reasonably determined by the Company) on the
business day immediately preceding the exercise date. If fewer than all of the
Warrants evidenced by such Warrant Certificate are exercised, the Company shall
execute, and an authorized officer of the Warrant Agent shall manually
countersign and deliver, a new Warrant Certificate evidencing the number of
such Warrants remaining unexercised.
(d) The Company shall not be required to pay any stamp or
other tax or other governmental charge required to be paid in connection with
any transfer involved in the issue of the Warrant Securities; and in the event
that any such transfer is involved, the Company shall not be required to issue
or deliver any Warrant Security until such tax or other charge shall have been
paid or it has been established to the Company's satisfaction that no such tax
or other charge is due.
ARTICLE III.
Other Provisions Relating to Rights of
Holders of Warrant Certificates.
Section 3.1. No Rights as Stockholder Conferred by Warrants or
Warrant Certificates. No Warrant Certificate or Warrant evidenced thereby shall
entitle the holder thereof to any of the rights of a holder of Warrant
Securities, including, without limitation, the right to receive dividends,
vote, receive notice of any meeting of stockholders or otherwise have any right
as a stockholder of the Company.
Section 3.2. Lost, Stolen, Mutilated or Destroyed Warrant
Certificates. Upon receipt by the Warrant Agent of evidence reasonably
satisfactory to it of the ownership of and the loss, theft, destruction or
mutilation of any Warrant Certificate and of indemnity reasonably satisfactory
to it,
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<PAGE> 5
and, in the case of mutilation, upon surrender thereof to the Warrant Agent for
cancellation, then, in the absence of notice to the Company or the Warrant
Agent that such Warrant Certificate has been acquired by a bona fide purchaser,
the Company shall execute, and an authorized officer of the Warrant Agent shall
manually countersign and deliver, in exchange for or in lieu of the lost,
stolen, destroyed or mutilated Warrant Certificate, a new Warrant Certificate
of the same tenor and evidencing a like number of Warrants. Upon the issuance
of any new Warrant Certificate 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 Warrant Agent) in connection therewith. Every substitute
Warrant Certificate executed and delivered pursuant to this Section in lieu of
any lost, stolen or destroyed Warrant Certificate shall represent an additional
contractual obligation of the Company, whether or not the lost, stolen or
destroyed Warrant Certificate shall be at any time enforceable by anyone, and
shall be entitled to the benefits of this Agreement equally and proportionately
with any and all other Warrant Certificates duly executed and delivered
hereunder. The provisions of this Section are exclusive and shall preclude (to
the extent lawful) all other rights and remedies with respect to the
replacement of mutilated, lost, stolen or destroyed Warrant Certificates.
Section 3.3. Holder of Warrant Certificate May Enforce Rights.
Notwithstanding any of the provisions of this Agreement, any holder of a
Warrant Certificate, without the consent of the Warrant Agent, the holder of
any Warrant Securities or the holder of any other Warrant Certificate, may in
his own behalf and for his own benefit, enforce, and may institute and maintain
any suit, action or proceeding against the Company suitable to enforce or
otherwise in respect of, his right to exercise the Warrants evidenced by his
Warrant Certificate in the manner provided in his Warrant Certificate and in
this Agreement.
ARTICLE IV.
Exchange and Transfer of Warrant Certificates.
Section 4.1. Exchange and Transfer of Warrant Certificates.
[If Offered Securities with Warrants which are immediately detachable - Upon]
[If Offered Securities with Warrants which are not immediately detachable -
Prior to the Detachable Date, a Warrant Certificate may be exchanged or
transferred only together with the Offered Securities to which the Warrant
Certificate was initially attached and only for the purpose of effecting or in
conjunction with an exchange or transfer of such Offered Securities. Prior to
the Detachable Date, each transfer of the Offered Securities [on the register
of the Offered Securities] shall operate also to transfer the related Warrant
Certificates. After the Detachable Date, upon] surrender at the corporate trust
office of the Warrant Agent [or at ________], Warrant Certificates evidencing
Warrants may be exchanged for Warrant Certificates in other denominations
evidencing such Warrants or the transfer thereof may be registered in whole or
in part; provided that such other Warrant Certificates evidence the same
aggregate number of Warrants as the Warrant Certificates so surrendered. The
Warrant Agent shall keep, at its corporate trust office [and at _______ __]
books in which, subject to such reasonable regulations as it may prescribe, it
shall register Warrant Certificates and exchanges and transfers of outstanding
Warrant Certificates, upon surrender of the Warrant Certificates to the Warrant
Agent at its corporate trust office [or at ____________] for exchange or
registration of transfer, properly
- 5 -
<PAGE> 6
endorsed or accompanied by appropriate instruments of registration of transfer
and written instructions for transfer, all in form satisfactory to the Company
and the Warrant Agent. No service charge shall be made for any exchange or
registration of transfer of Warrant Certificates but the Company may require
payment of a sum sufficient to cover any stamp or other tax or other
governmental charge that may be imposed in connection with any such exchange or
registration of transfer. Whenever any Warrant Certificates are so surrendered
for exchange or registration of transfer an authorized officer of the Warrant
Agent shall manually countersign and deliver to the person or persons entitled
thereto a Warrant Certificate or Warrant Certificates duly authorized and
executed by the Company, as so requested. The Warrant Agent shall not be
required to effect any exchange or registration of transfer which will result
in the issuance of a Warrant Certificate evidencing a fraction of a Warrant or
a number of full Warrants and a fraction of a Warrant. All Warrant Certificates
issued upon any exchange or registration of transfer of Warrant Certificates
shall be the valid obligations of the Company, evidencing the same obligations,
and entitled to the same benefits under this Agreement, as the Warrant
Certificates surrendered for such exchange or registration of transfer.
Section 4.2. Treatment of Holders of Warrant Certificates.
[If Warrants which are not immediately detachable - Every holder of a Warrant
Certificate, by accepting the same, consents and agrees with the Company, the
Warrant Agent and with every subsequent holder of such Warrant Certificate that
until the transfer of the Warrant Certificate is registered on the books of the
Warrant Agent [or the registrar of the Offered Securities prior to the
Detachable Date], the Company and the Warrant Agent [or the registrar of the
Offered Securities prior to the Detachable Date] may treat the registered
holder as the absolute owner thereof for any purpose and as the person entitled
to exercise the rights represented by the Warrants evidenced thereby, any
notice to the contrary notwithstanding.]
Section 4.3. Cancellation of Warrant Certificates. Any Warrant
Certificate surrendered for exchange, registration of transfer or exercise of
the Warrants evidenced thereby shall, if surrendered to the Company, be
delivered to the Warrant Agent and all Warrant Certificates surrendered or so
delivered to the Warrant Agent shall be promptly cancelled by the Warrant Agent
and shall not be reissued and, except as expressly permitted by this Agreement,
no Warrant Certificate shall be issued hereunder in exchange or in lieu
thereof. The Warrant Agent shall deliver to the Company from time to time or
otherwise dispose of cancelled Warrant Certificates in a manner satisfactory to
the Company.
ARTICLE V.
Adjustments.
Section 5.1. Adjustment of Warrant Price and Number of Warrant
Securities Purchaseable.
(a) In case at any time the Company shall issue and sell for
cash any Warrant Securities (excluding (i) Warrant Securities issued
in any of the transactions described in
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<PAGE> 7
paragraphs (b), (c) or (d) below and (ii) Warrant Securities issued
upon exercise of Warrants) at a price per Share lower than 15% below
the Market Price determined as of the date immediately preceding the
date of such sale and issuance, the Warrant Price in effect at the
close of business on the date immediately preceding the date of such
sale and issuance shall be reduced by multiplying such Warrant Price
by a fraction, (i) the numerator of which shall be the sum of (x) the
number of Warrant Securities outstanding at the close of business on
the date immediately preceding the date of such sale and issuance plus
(y) the number of Warrant Securities which the aggregate amount of
cash received or receivable for such sale and issuance would purchase
at such current Market Price per Warrant Security, and (ii) the
denominator of which shall be the total number of Warrant Securities
outstanding immediately after such sale and issuance. Such adjustment
shall be made successively whenever such an issuance is made.
(b) In case the Company shall pay or make a dividend or other
distribution on any class of stock of the Company in Warrant
Securities or securities convertible into or exchangeable for Warrant
Securities (such convertible or exchangeable stock or securities being
hereinafter called "Convertible Securities"), other than Convertible
Securities which require payments of cash to be made by the holder
thereof in connection with any conversion into or exchange for Warrant
Securities, the Warrant Price in effect at the close of business on
the day fixed for the determination of shareholders entitled to
receive such dividend or other distribution shall be reduced by
multiplying such Warrant Price by a fraction of which the numerator
shall be the number of Warrant Securities outstanding at the close of
business on the date immediately preceding the date fixed for such
determination and the denominator shall be the sum of such number of
Warrant Securities and the total number of Warrant Securities
constituting such dividend or other distribution or the maximum number
of Warrant Securities issuable upon conversion or exchange of all
Convertible Securities constituting such dividend or other
distribution.
(c) In case at any time the Company shall grant (whether
directly or otherwise) any rights (other than the Warrants and "poison
pill" rights distributed pursuant to a stockholders' rights plan) to
subscribe for or to purchase, or any options for the purchase of,
Warrant Securities or Convertible Securities, whether or not such
rights or options or the right to convert or exchange any such
Convertible Securities are immediately exercisable, and the price per
Warrant Security for which Warrant Securities are issuable upon the
exercise of such rights or options or upon conversion or exchange of
such Convertible Securities (determined by dividing (x) the total
amount, if any, received or receivable by the Company as consideration
for the granting of such rights or options, plus the minimum aggregate
amount of additional consideration payable to the Company upon the
exercise of all such rights or options, or, in the case of such rights
or options which relate to Convertible Securities, the total amount,
if any, received or receivable by the Company as consideration for the
granting of such rights or options, plus the minimum aggregate amount
of additional consideration, if any, payable upon the issuance or sale
of such Convertible Securities and upon the conversion or exchange
thereof, by (y) the total maximum number of Warrant Securities
issuable upon the exercise of such rights or options or upon the
conversion or exchange of all such Convertible Securities issuable
upon the exercise of such rights or
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<PAGE> 8
options) shall be less than the Market Price, determined as of the
date immediately preceding the date of granting such rights or
options, the Warrant Price in effect at the close of business on the
date immediately preceding the date of granting such rights or options
shall be adjusted by multiplying such Warrant Price by a fraction, (i)
the numerator of which shall be the sum of (x) the number of Warrant
Securities outstanding at the close of business on the date
immediately preceding the date of granting such rights or options plus
(y) the quotient obtained by dividing the product of the price per
Warrant Security, determined as set forth above, and the maximum
number of Warrant Securities issuable upon the exercise of such rights
or options or upon the conversion or exchange of all such Convertible
Securities issuable upon the exercise of such rights or options by the
Market Price and (ii) the denominator of which shall be the sum of the
number of Warrant Securities outstanding at the close of business on
the date immediately preceding the date of granting such rights or
options and the maximum number of Warrant Securities issuable upon the
exercise of such rights or options or upon the conversion or exchange
of all such Convertible Securities issuable upon the exercise of such
rights or options. Except as provided in this subparagraph (c), no
further adjustments of the Warrant Price shall be made upon the
issuance of such Warrant Securities or of such Convertible Securities
upon exercise of such rights or options or upon the actual issuance of
such Warrant Securities upon conversion or exchange of such
Convertible Securities.
(d) In case the Company shall issue (whether directly or by
assumption in a merger or otherwise) or sell any Convertible
Securities, whether or not the rights to exchange or convert
thereunder are immediately exercisable, and the price per Warrant
Security for which Warrant Securities are issuable upon such
conversion or exchange (determined by dividing (x) the total amount
received or receivable by the Company as consideration for the issue
or sale of such Convertible Securities, plus the minimum aggregate
amount of additional consideration, if any, payable to the Company
upon the conversion or exchange thereof, by (y) the total maximum
number of Warrant Securities issuable upon the conversion or exchange
of all such Convertible Securities) shall be less than the Market
Price, determined as of the date immediately preceding the date of
such issuance or sale of such Convertible Securities, then the Warrant
Price in effect at the close of business on the date immediately
preceding the date of issuance or sale of such Convertible Securities
shall be adjusted by multiplying such Warrant Price by a fraction, (i)
the numerator of which shall be the sum of (x) the number of Warrant
Securities outstanding at the close of business on the date
immediately preceding the date of issuance or sale of such Convertible
Securities plus (y) the quotient obtained by dividing the product of
the price per Warrant Security, determined as set forth above, and the
maximum number of Warrant Securities issuable upon conversion or
exchange of all such Convertible Securities by the Market Price and
(ii) the denominator of which shall be the sum of the number of
Warrant Securities outstanding at the close of business on the date
immediately preceding the date of issuance or sale of such Convertible
Securities and such maximum number of Warrant Securities issuable upon
conversion or exchange, provided that (1) except as provided in
subparagraph (e), no further adjustments of the Warrant Price shall be
made upon the actual issuance of such Warrant Securities upon
conversion or exchange of such Convertible Securities, and (2) if any
such issuance or sale of such Convertible Securities is made upon
exercise of any rights to subscribe for or to
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<PAGE> 9
purchase or any option to purchase any such Convertible Securities for
which adjustments of the Warrant Price have been or are to be made
pursuant to subparagraph (c) or the other provisions of this
subparagraph (d), no further adjustments of the Warrant Price shall be
made by reason of such issuance or sale.
(e) If (x) the purchase price provided for in any rights or
options referred to in subparagraph (c), or (y) the additional
consideration, if any, payable upon the conversion or exchange of any
Convertible Securities referred to in subparagraphs (c) and/or (d), or
(z) the rate at which any Convertible Securities referred to in
subparagraphs (c) and/or (d) are convertible into or exchangeable for
Warrant Securities shall change (other than under or by reason of
provisions contained in the instruments governing such rights, options
or Convertible Securities that are designed to protect against
dilution), the Warrant Price in effect at the close of business on the
date of such event shall forthwith be adjusted to the Warrant Price
which would have been in effect at such time had such rights, options
or Convertible Securities still outstanding provided for such changed
purchase price, additional consideration or conversion rate, as the
case may be, at the time initially granted, issued or sold. On the
expiration of any such option or right or the termination of any such
right to convert or exchange such Convertible Securities, the Warrant
Price in effect at the close of business on the date of expiration or
termination shall be readjusted to the Warrant Price which would have
been in effect at such time had such right, option or Convertible
Securities, to the extent outstanding immediately prior to the date of
such expiration or termination, never been granted, issued or sold.
(f) In case the Company shall, by dividend or otherwise,
declare a dividend or other distribution on its Warrant Securities
payable in evidences of its indebtedness or assets (including
securities, but excluding (i) any rights or options referred to in
subparagraph (c) of this Section, (ii) any dividend or distribution
paid in cash out of consolidated retained earnings or consolidated
earned surplus, determined in accordance with generally accepted
accounting principles, including the making of appropriate deductions
for minority interests, if any, in subsidiaries, and (iii) any
dividend or distribution otherwise paid in Warrant Securities or
Convertible Securities), the Warrant Price in effect at the close of
business on the date fixed for the determination of shareholders
entitled to receive such dividend or other distribution shall be
adjusted so that the same shall equal the price determined by
multiplying the Warrant Price in effect at the close of business on
the date fixed for the determination of shareholders entitled to
receive such dividend or other distribution by a fraction of which the
numerator shall be the current Market Price per Warrant Security on
the date fixed for such determination less the then fair market value
(as determined by the board of directors, whose determination shall be
conclusive and described in a Board Resolution filed with the Warrant
Agent) of the portion of the assets or evidences of indebtedness so
distributed applicable to one share and of which the denominator shall
be such current Market Price per share.
(g) In case the Company shall at any time subdivide its
outstanding Warrant Securities into a greater number of Warrant
Securities, the Warrant Price in effect immediately prior to such
subdivision shall be proportionately reduced, and conversely, in case
the outstanding Warrant Securities shall be combined into a smaller
number of Warrant
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<PAGE> 10
Securities, the Warrant Price in effect immediately prior to such
combination shall be proportionately increased, such reduction or
increase, as the case may be, to become effective immediately upon the
opening of business on the day following the day upon which such
subdivision or combination becomes effective.
(h) In case of any consolidation of the Company with, or
merger of the Company into, any other corporation or other entity, or
in case of any merger of another corporation or other entity into the
Company (other than a merger which does not result in any
reclassification, conversion, exchange or cancellation of outstanding
Warrant Securities), or in case of any sale or transfer of all or
substantially all of the assets of the Company, or in the case of a
capital reorganization or recapitalization of the capital stock of the
Company in such a way that holders of Warrant Securities shall be able
to receive securities, cash or assets with respect to or in exchange
for such Warrant Securities from the corporation or other entity
formed by such consolidation or resulting from such merger or which
acquires such assets, as the case may be, or from the Company, in the
case of a capital reorganization or recapitalization not involving a
consolidation, merger or sale or transfer of all or substantially all
of the assets of the Company, such corporation or other entity or the
Company, as the case may be, and the Warrant Agent shall execute and
deliver an amendment to this Agreement providing that the holder of
each Warrant then outstanding shall have the right thereafter, during
the period such Warrant shall be exercisable, to exercise such Warrant
only for the kind and amount of securities, cash and other property
receivable upon such consolidation, merger, sale, transfer, capital
reorganization or recapitalization by a holder of the number of
Warrant Securities for which such Warrant might have been exercised on
the date immediately prior to such consolidation, merger, sale,
transfer, capital reorganization or recapitalization, assuming such
holder of Warrant Securities failed to exercise his rights of
election, if any, as to the kind or amount of securities, cash and
other property receivable upon such consolidation, merger, sale,
transfer, capital reorganization or recapitalization (provided that if
the kind or amount of securities, cash and other property receivable
upon such consolidation, merger, sale, transfer, capital
reorganization or recapitalization is not the same for each Warrant
Security in respect of which such rights of election shall not have
been exercised (the "Non-electing Warrant Securities"), then, for the
purpose of this subparagraph (h), the kind and amount of securities,
cash and other property receivable upon such consolidation, merger,
sale, transfer, capital reorganization or recapitalization by each
Non- electing Warrant Security shall be deemed to be the kind and
amount so receivable per Warrant Security by a plurality of the
Non-electing Warrant Securities).
Such amendment shall provide for adjustments which, for events
subsequent to the effective date of such amendment, shall be as nearly
equivalent as may be practicable to the adjustments provided for in this
Article V. The above provisions of this paragraph shall similarly apply to
successive consolidations, mergers, sales, transfers, capital reorganizations
or recapitalization.
The Company shall not effect any such consolidation, merger,
sale or transfer, unless prior to or simultaneously with the consummation
thereof the successor corporation (if other than
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<PAGE> 11
the Company) resulting from such consolidation or merger or the corporation
purchasing or otherwise acquiring such assets or other appropriate corporation
or entity shall assume, by written instrument executed and delivered to the
Warrant Agent, the obligation to deliver to the holder of each Warrant such
shares of stock, securities, cash or assets as, in accordance with the
foregoing provisions, such holders may be entitled to receive and the other
obligations under this Agreement.
(i) In case an adjustment in the Warrant Price shall be
required by Section 5.1 (a), (b), (c), (d) and/or (f) above, the
required adjustment shall become effective at the opening of business
on (i) the Business Day immediately following the date fixed for the
determination of shareholders of the Company entitled to receive such
dividend or distribution, in the case of any adjustment pursuant to
Section 12(b) or (f), or (ii) the Business Day immediately following
the date of such sale and issuance or the date of such grating of such
rights or options, as the case may be, in the case of an adjustment
pursuant to section 5.1 (a), (c) or (d).
(j) For the purposes of this Article V the number of Warrant
Securities outstanding at any given time shall not include Warrant
Securities owned or held by or for the account of the Company or of
any of its wholly or majority owned subsidiaries.
(k) Upon each adjustment of the Warrant Price pursuant to this
Section 5.1, each Warrant outstanding at the time of and immediately
prior to such adjustment shall give the holder thereof the right to
purchase, at the Warrant Price resulting from such adjustment, the
number of Warrant Securities obtained by multiplying the Warrant Price
in effect immediately prior to such adjustment by the number of
Warrant Securities issuable upon exercise of such Warrant immediately
prior to such adjustment and dividing the product thereof by the
Warrant Price resulting from such adjustment.
(l) No adjustment in the Warrant Price shall be required
unless such adjustment would require an increase or decrease of at
least one percent in such Warrant Price; provided, however, that any
one or more such adjustments which, by reason of this subparagraph (l)
is not required to be made shall be carried forward on a cumulative
basis and fully taken into account in any subsequent adjustment. All
calculations under this Section 5.1 shall be made to the nearest cent
or to the nearest 1/100 of a Warranty Security, as the case may be.
The provisions of this Section 12(l) shall also apply to readjustments
provided for in subparagraph (e).
(m) The Company shall be obligated to issue any additional
Warrant Securities which become issuable upon exercise of Warrants as
a result of any event described in this Section 5.1 which requires an
adjustment in the Warrant Price and the number of Warrant Securities
issuable upon exercise of the Warrants.
(n) For purposes of this Section 5.1, "Market Price" means the
average of the closing prices per Warrant Security on the American
Stock Exchange or the National Association of Securities Dealers, Inc.
Automated Quotation System ("NASDAQ"), as the case may be (or, if
there is no such closing price, the mean between the bid and asked
prices reported on
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<PAGE> 12
American Stock Exchange or NASDAQ, or on any other national securities
exchange or over-the-counter market on which such quotations are
regularly available, as the case may be), on each of the ten trading
days immediately preceding the date as of which the determination of
Market Price is to be made. If at any time the Warrant Securities are
not listed on any national securities exchange or quoted in the
over-the-counter market, the Market Price shall be deemed to be the
fair value thereof determined in good faith by an independent
brokerage firm or Standard & Poor's Corp. as of a date which is within
15 days of the date as of which the determination of Market Price is
to be made.
(o) If the Company shall take any action affecting the Warrant
Securities, other than action described in this Section 5.1, which in
the opinion of the Board of Directors of the Company would materially
adversely affect the exercise rights of the holders of the Warrants,
the Warrant Price for the Warrants may be adjusted, to the extent
permitted by law, in such manner, if any, and at such time, as such
Board of Directors may determine in good faith to be equitable in the
circumstances. Failure of the Board of Directors of the Company to
provide for any such adjustment prior to the effective date of any
such action by the Company affecting the Warrant Securities shall be
evidence that the Board of Directors of the Company has determined
that it is equitable to make no adjustments in the circumstances.
Section 5.2. Voluntary Adjustment by the Company. The Company
may at its option, at any time during the term of the Warrants, reduce the then
current Warrant Price to any amount deemed appropriate by the Board of
Directors of the Company; provided, that, if the Company elects so to reduce
the then current Warrant Price, such reduction shall remain in effect for at
least 20 Business Days, after which time the Company may, at its option,
reinstate the Warrant Price in effect prior to such reduction.
Section 5.3. Notice of Adjustment. Whenever the Warrant Price
is adjusted as herein provided, the Chief Financial Officer of the Company
shall compute the adjusted Warrant Price in accordance with the foregoing
provisions and shall prepare a certificate setting forth such adjusted Warrant
Price and showing in reasonable detail the facts upon which such adjustment is
based. A copy of such certificate shall be filed promptly with the Warrant
Agent. Promptly after delivery of such certificate, the Company shall prepare a
notice of such adjustment of the Warrant Price setting forth the adjusted
Warrant Price and the date on which such adjustment becomes effective and shall
mail, or cause the Warrant Agent to mail at the Company's expense, such notice
of such adjustment of the Warrant Price to each holder of a Warrant at his last
address as shown on the Warrant Register.
Section 5.4. No Adjustment for Dividends. Except as provided
in Section 5.1 hereof, no adjustment in respect of any dividends or other
payments or distributions made to holders of securities issuable upon exercise
of Warrants shall be made during the term of a Warrant or upon the exercise of
a Warrant.
Section 5.5. Statement on Warrants Certificate. Irrespective
of any adjustments in the number or kind of securities purchasable upon the
exercise of the Warrants or the Warrant Securities,
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<PAGE> 13
any Warrant Certificate theretofore or thereafter issued may continue to
express the same price and number and kind of shares as are stated in the
Warrant Certificate initially issuable pursuant to this Agreement.
Section 5.6. Warrant Agent's Adjustment Disclaimer. The
Warrant Agent has no duty to determine when an adjustment under this Article V
should be made, how it should be made or what it should be. The Warrant Agent
shall not be accountable for and makes no representation as to the validity or
value of any securities or assets issued upon exercise of Warrants. The Warrant
Agent shall not be responsible for the Company's failure to comply with this
Article V.
ARTICLE VI.
Concerning the Warrant Agent
Section 6.1. Warrant Agent. The Company hereby appoints
__________, as Warrant Agent of the Company in respect of the Warrants and the
Warrant Certificates upon the terms and subject to the conditions herein set
forth; and _________ hereby accepts such appointment. The Warrant Agent shall
have the powers and authority granted to and conferred upon it in the Warrant
Certificates and hereby and such further powers and authority to act on behalf
of the Company as the Company may hereafter grant to or confer upon it. All of
the terms and provisions with respect to such powers and authority contained in
the Warrant Certificates are subject to and governed by the terms and
provisions hereof.
Section 6.2. Conditions of Warrant Agent's Obligations. The
Warrant Agent accepts its obligations herein set forth upon the terms and
conditions hereof, including the following, to all of which the Company agrees
and to all of which the rights hereunder of the holders from time to time of
the Warrant Certificates shall be subject:
(a) The Company agrees promptly to pay the Warrant Agent the
compensation to be agreed upon with the Company for all services
rendered by the Warrant Agent and to reimburse the Warrant Agent for
reasonable out-of-pocket expenses (including counsel fees) incurred
by the Warrant Agent in connection with the services rendered
hereunder by the Warrant Agent. The Company also agrees to indemnify
the Warrant Agent for, and to hold it harmless against, any loss,
liability or expense incurred without negligence or bad faith on the
part of the Warrant Agent, arising out of or in connection with its
acting as Warrant Agent hereunder, as well as the costs and expenses
of defending against any claim of such liability.
(b) In acting under this Warrant Agreement and in connection
with the Warrant Certificates, the Warrant Agent is acting solely as
agent of the Company and does not assume any obligation or
relationship of agency or trust for or with any of the holders of
Warrant Certificates or beneficial owners of Warrants.
(c) The Warrant Agent may consult with counsel satisfactory to
it, and the advice of such counsel shall be full and complete
authorization and protection in respect of any action
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<PAGE> 14
taken, suffered or omitted by it hereunder in good faith and in
accordance with the advice of such counsel.
(d) The Warrant Agent shall be protected and shall incur no
liability for or in respect of any action taken or thing suffered by
it in reliance upon any Warrant Certificate, notice, direction,
consent, certificate, affidavit, statement or other paper or document
reasonably believed by it to be genuine and to have been presented or
signed by the proper parties.
(e) The Warrant Agent, and its officers, directors and
employees, may become the owner of, or acquire any interest in,
Warrants, with the same rights that it or they would have if it were
not the Warrant Agent hereunder, and, to the extent permitted by
applicable law, it or they may engage or be interested in any
financial or other transaction with the Company and may act on, or as
depositary, trustee or agent for, any committee or body of holders of
Warrant Securities or other obligations of the Company as freely as if
it were not the Warrant Agent hereunder.
(f) The Warrant Agent shall have no liability for interest on
any monies at any time received by it pursuant to any of the
provisions of this Agreement or of the Warrant Certificates.
(g) The Warrant Agent shall have no liability with respect to
any invalidity of this Agreement or any of the Warrant Certificates.
(h) The Warrant Agent shall not be responsible for any of the
recitals or representations herein or in the Warrant Certificates
(except as to the Warrant Agent's countersignature thereon), all of
which are made solely by the Company.
(i) The Warrant Agent shall be obligated to perform only such
duties as are herein and in the Warrant Certificates specifically set
forth and no implied duties or obligations shall be read into this
Agreement or the Warrant Certificates against the Warrant Agent. The
Warrant Agent shall not be under any obligation to take any action
hereunder which may tend to involve it in any expense or liability,
the payment of which within a reasonable time is not, in its
reasonable opinion, assured to it. The Warrant Agent shall not be
accountable or under any duty or responsibility for the use by the
Company of any of the Warrant Certificates authenticated by the
Warrant Agent and delivered by it to the Company pursuant to this
Agreement or for the application by the Company of the proceeds of the
Warrant Certificates. The Warrant Agent shall have no duty or
responsibility in case of any default by the Company in the
performance of its covenants or agreements contained herein or in the
Warrant Certificates or in the case of the receipt of any written
demand from a holder of a Warrant Certificate with respect to such
default, including, without limiting the generality of the foregoing,
any duty or responsibility to initiate or attempt to initiate any
proceedings at law or otherwise or, except as provided in Section 6.2,
to make any demand upon the Company.
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<PAGE> 15
(j) The Warrant Agent is hereby authorized to obtain from time
to time from the present transfer agent for the Warrant Securities
(the "Transfer Agent"), and any successor Transfer Agent, stock
certificates required to honor outstanding Warrants. The Company
hereby authorizes its present and any successor Transfer Agent to
comply with all such requests. The Company will supply such Transfer
Agent with duly executed stock certificates for such purpose and will
provide or otherwise make available any cash which may be payable as
provided in Section 2.3 hereof, and the Warrant Agent shall not be
responsible for any delay or failure by such Transfer Agent in
supplying such stock certificates.
Section 6.3. Resignation and Appointment of Successor. (a) The
Company agrees, for the benefit of the holders of the Warrant Certificates,
that there shall at all times be a Warrant Agent hereunder until all the
Warrant Certificates are no longer exercisable.
(b) The Warrant Agent may at any time resign as such agent by
giving written notice to the Company of such intention on its part,
specifying the date on which its desired resignation shall become
effective; provided that such date shall not be less than three months
after the date on which such notice is given unless the Company
otherwise agrees. The Warrant Agent hereunder may be removed at any
time by the filing with it of an instrument in writing signed by or on
behalf of the Company and specifying such removal and the date when it
shall become effective. Such resignation or removal shall take effect
upon the appointment by the Company, as hereinafter provided, of a
successor Warrant Agent (which shall be a bank or trust company
authorized under the laws of the jurisdiction of its organization to
exercise corporate trust powers) and the acceptance of such
appointment by such successor Warrant Agent. The obligation of the
Company under Section 6.3(a) shall continue to the extent set forth
therein notwithstanding the resignation or removal of the Warrant
Agent.
(c) In case at any time the Warrant Agent shall resign, or
shall be removed, or shall become incapable of acting, or shall be
adjudged a bankrupt or insolvent, or shall file a petition seeking
relief under the Federal Bankruptcy Code, as now constituted or
hereafter amended, or under any other applicable Federal or State
bankruptcy law or similar law or make an assignment for the benefit of
its creditors or consent to the appointment of a receiver or custodian
of all or any substantial part of its property, or shall admit in
writing its inability to pay or meet its debts as they mature, or if a
receiver or custodian of it or of all or any substantial part of its
property shall be appointed, or if an order of any court shall be
entered for relief against it under the provisions of the Federal
Bankruptcy Code, as now constituted or hereafter amended, or under any
other applicable Federal or State bankruptcy or similar law, or if any
public officer shall have taken charge or control of the Warrant Agent
or of its property or affairs, for the purpose of rehabilitation,
conservation or liquidation, a successor Warrant Agent, qualified as
aforesaid, shall be appointed by the Company, by an instrument in
writing, filed with the successor Warrant Agent. Upon the appointment
as aforesaid of a successor Warrant Agent and acceptance by the
successor Warrant Agent of such appointment, the Warrant Agent shall
cease to be Warrant Agent hereunder.
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<PAGE> 16
(d) Any successor Warrant Agent appointed hereunder shall
execute, acknowledge and deliver to its predecessor and to the Company
an instrument accepting such appointment hereunder, and thereupon such
successor Warrant Agent, without any further act, deed or conveyance,
shall become vested with all the authority, rights, powers, trusts,
immunities, duties and obligations of such predecessor with like
effect as if originally named as Warrant Agent hereunder, and such
predecessor, upon payment of its charges and disbursements then
unpaid, shall thereupon become obligated to transfer, deliver and pay
over, and such successor Warrant Agent shall be entitled to receive,
all monies, securities and other property on deposit with or held by
such predecessor, as Warrant Agent hereunder.
(e) Any corporation into which the Warrant Agent hereunder may
be merged or converted or any corporation with which the Warrant Agent
may be consolidated, or any corporation resulting from any merger,
conversion or consolidation to which the Warrant Agent shall be a
party, or any corporation to which the Warrant Agent shall sell or
otherwise transfer all or substantially all the assets and business of
the Warrant Agent, provided that it shall be qualified as aforesaid,
shall be the successor Warrant Agent under this Agreement without the
execution or filing of any paper or any further act on the part of any
of the parties hereto.
ARTICLE VII.
Miscellaneous.
Section 7.1. Amendment. This Agreement may be amended by the
parties hereto, without the consent of the holder of any Warrant Certificate,
for the purpose of curing any ambiguity, or of curing, correcting or
supplementing any defective or inconsistent provision contained herein, or
making any other provisions with respect to matters or questions arising under
this Agreement as the Company and the Warrant Agent may deem necessary or
desirable; provided, that such action shall not materially and adversely affect
the interests of the holders of the Warrant Certificates and, provided further,
that the Company and the Warrant Agent may amend this Agreement in any manner
prior to the issuance of any Warrants hereunder. With the consent of the
holders of not less than a majority in number of the then outstanding
unexercised Warrants affected, the Company and the Warrant Agent may modify or
amend any other term of this Agreement; provided, however, that no such
modification or amendment may be made without the consent of the holders
affected thereby if such proposed amendment would (i) shorten the period of
time during which the Warrants may be exercised; (ii) otherwise materially and
adversely affect the exercise rights of the holders of the Warrants; or (iii)
reduce the number of outstanding Warrants.
Section 7.2. Notices and Demands to the Company and Warrant
Agent. If the Warrant Agent shall receive any notice or demand addressed to the
Company by the holder of a Warrant Certificate pursuant to the provisions of
the Warrant Certificates, the Warrant Agent shall promptly forward such notice
or demand to the Company.
Section 7.3. Addresses. Any communication from the Company to
the Warrant Agent with respect to this Agreement shall be addressed to
____________, and any communication from
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<PAGE> 17
the Warrant Agent to the Company with respect to this Agreement shall be
addressed to Nabors Industries, Inc., 515 West Greens Road, Suite 1200,
Houston, Texas 77067, Attention: _______________ (or such other address as
shall be specified in writing by the Warrant Agent or by the Company).
Section 7. Applicable Law. The validity, interpretation and
performance of this Agreement and each Warrant Certificate issued hereunder and
of the respective terms and provisions thereof shall be governed by and
construed in accordance with, the laws of the State of New York, without giving
effect to the conflict of laws principles thereof.
Section 7.5. Delivery of Prospectus. The Company will furnish
to the Warrant Agent sufficient copies of a prospectus relating to the Warrant
Securities deliverable upon exercise of Warrants (the "Prospectus"), and the
Warrant Agent agrees that upon the exercise of any Warrant, the Warrant Agent
will deliver to the holder of the Warrant Certificate evidencing such Warrant,
prior to or concurrently with, the delivery of the Warrant Securities issued
upon such exercise, a Prospectus.
Section 7.6. Obtaining of Governmental Approvals. The Company
will from time to time take all action which may be necessary to obtain and
keep effective any and all permits, consents and approvals of governmental
agencies and authorities and securities acts filings under United States
Federal and State laws (including, without limitation, a registration statement
in respect of the Warrants and Warrant Securities under the Securities Act of
1933, as amended), which may be or become requisite in connection with the
issuance, sale, transfer, and delivery of the Warrant Certificates, the
exercise of the Warrants, the issuance, sale, transfer, and delivery of the
Warrant Securities issued upon exercise of the Warrants or upon the expiration
of the period during which the Warrants are exercisable.
Section 7.7. Persons Having Rights under Warrant Agreement.
Nothing in this Agreement shall give to any person other than the Company, the
Warrant Agent and the holders of the Warrant Certificates any right, remedy or
claim under or by reason of this Agreement.
Section 7.8. Headings. The descriptive headings of the several
Articles and Sections of this Agreement are inserted for convenience only and
shall not control or affect the meaning or construction of any of the
provisions hereof.
Section 7.9. Counterparts. This Agreement may be executed in
any number of counterparts, each of which as so executed shall be deemed to be
an original, but such counterparts shall together constitute but one and the
same instrument.
Section 7.10. Inspection of Agreement. A copy of this
Agreement shall be available at all reasonable times at the principal corporate
trust office of the Warrant Agent for inspection by the holder of any Warrant
Certificate. The Warrant Agent may require such holder to submit his Warrant
Certificates for inspection by it.
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<PAGE> 18
IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be duly executed and their respective corporate seals to be
affixed hereunto, and the same to be attested, all as of the day and year first
above written.
NABORS INDUSTRIES, INC.
By
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Attest:
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[NAME OF WARRANT AGENT],
as Warrant Agent
By
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Attest:
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Exhibit A
(FORM OF WARRANT CERTIFICATE)
[Face of Warrant Certificate]
[Form of Legend of Warrants which are not immediately detachable: Prior to
______, this Warrant Certificate cannot be transferred or exchanged unless
attached to [Title of Offered Securities].]
Exercisable Only if Countersigned by the Warrant Agent as Provided Herein
NABORS INDUSTRIES, INC.
WARRANTS TO PURCHASE
[Title of Warrant Securities]
Void After 5:00 P.M. New York Time on
[No.] Warrants
This certifies that ____________ or registered assigns is the
registered owner of the above indicated number of Warrants, each Warrant
entitling such owner to purchase, at any time [after 5 p.m. New York time on
_________, and] on or before 5 p.m. New York time on _________, [Title of
Warrant Securities] (the "Warrant Securities"), of Nabors Industries, Inc. (the
"Company"), on the following basis: [on _________, the exercise price of each
Warrant is [$] ; during the period from _____________, through and including
_______________, the exercise price of each Warrant will be [$] ________] . The
holder may exercise the Warrants evidenced hereby by providing certain
information set forth on the back hereof and by paying in full, [in lawful
money of the United States of America] [if applicable, express Warrant exercise
price in applicable foreign currency, currency unit or composite currency] [in
cash or by certified check or official bank check or by bank wire transfer, in
each case] [by bank wire transfer], in immediately available funds, the Warrant
Price for each Warrant exercised to the Warrant Agent (as hereinafter defined)
and by surrendering this Warrant Certificate, with the purchase form on the
back hereof duly executed, at the corporate trust office of [name of Warrant
Agent], or its successors as warrant agent (the "Warrant Agent"), [or
______________] currently at the address specified on the reverse hereof, and
upon compliance with and subject to the conditions set forth herein and in the
Warrant Agreement (as hereinafter defined).
Any whole number of Warrants evidenced by this Warrant
Certificate may be exercised to purchase Warrant Securities in registered form.
Upon any exercise of fewer than all of the Warrants evidenced by this Warrant
Certificate, there shall be issued to the holder hereof a new Warrant
Certificate evidencing the number of Warrants remaining unexercised. The
Company will not be required to issue fractional shares of Warrant Securities
upon exercise of the Warrants or distribute stock certificates that evidence
fractional shares of Warrant Securities. In lieu of fractional Warrant
Securities, there shall be paid by the Company to the registered holder of this
Warrant Certificate at the time such Warrant Certificate is exercised an amount
in cash payable by company
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check equal to the closing sales price of the Warrant Securities on the
American Stock Exchange (or if not so listed, another equivalent means
reasonably determined by the Company) on the business day immediately preceding
the exercise date, multiplied by such fraction.
This Warrant Certificate is issued under and in accordance
with the Warrant Agreement dated as of ___________, (the "Warrant Agreement")
between the Company and the Warrant Agent and is subject to the terms and
provisions contained in the Warrant Agreement, to all of which terms and
provisions the holder of this Warrant Certificate consents by acceptance
hereof. Copies of the Warrant Agreement and the form of Warrant Securities are
on file at the above-mentioned office of the Warrant Agent [and at ].
[If Offered Securities with Warrants which are not immediately
detachable - Prior to ___________ this Warrant Certificate may be exchanged or
transferred only together with the [Title of Offered Securities] ("Offered
Securities") to which this Warrant Certificate was initially attached, and only
for the purpose of effecting, or in conjunction with, an exchange or transfer
of such Offered Securities. After such date, this [If Offered Securities with
Warrants which are immediately detachable - Transfer of this] Warrant
Certificate may be transferred when this Warrant Certificate is surrendered at
the corporate trust office of the Warrant Agent [or _____] by the registered
owner or his assigns, in person or by an attorney duly authorized in writing,
in the manner and subject to the terms provided in the Warrant Agreement.]
[If Offered Securities with Warrants which are not immediately
detachable - Except as provided in the immediately preceding paragraph, after]
[If Offered Securities with Warrants which are immediately detachable - After]
countersignature by the Warrant Agent and prior to the expiration of this
Warrant Certificate, this Warrant Certificate may be exchanged at the corporate
trust office of the Warrant Agent for Warrant Certificates representing the
same aggregate number of Warrants.
This Warrant Certificate shall not entitle the holder hereof
to any of the rights of a holder of Warrant Securities, including, without
limitation, the right to receive dividends, vote, receive notice of any meeting
of stockholders or otherwise have any right as a stockholder of the Company.
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This Warrant Certificate shall not be valid for any purpose
until countersigned by the Warrant Agent.
Dated as of .
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NABORS INDUSTRIES, INC.
By
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Attest:
- ----------------------------
Countersigned
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As Warrant Agent
By
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Authorized Signature
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<PAGE> 22
[Reverse of Warrant Certificate]
Instructions for Exercise of Warrant
To exercise the Warrants evidenced hereby, the holder must pay
[in cash or by certified check or official bank check or by bank wire transfer]
[by bank wire transfer], in immediately available funds, the Warrant Price in
full for Warrants exercised to [insert name of Warrant Agent] Corporate Trust
Department [insert address of Warrant Agent], Attn: [or ], which [payment]
[wire transfer] must specify the name of the holder and the number of Warrants
exercised by such holder. In addition, the holder must complete the information
required below and present this Warrant Certificate in person or by mail
(registered mail is recommended) to the Warrant Agent at the addresses set
forth below. This Warrant Certificate, completed and duly executed, must be
received by the Warrant Agent within five business days of the [payment] [wire
transfer].
To Be Executed Upon Exercise of Warrant
The undersigned hereby irrevocably elects to exercise Warrants
evidenced by this Warrant Certificate, to purchase _______________ [Title of
Warrant Securities] (the "Warrant Securities") of Nabors Industries, Inc. and
represents that he has tendered payment for such Warrant Securities [in cash or
by certified check or official bank check or by bank wire transfer, in each
case] [by bank wire transfer], in immediately available funds, to the order of
Nabors Industries, Inc., c/o [insert name and address of Warrant Agent], in the
amount of [$]______________ [if applicable -- insert relevant amounts in
applicable foreign currency, currency unit or composite currency] in accordance
with the terms hereof]. The undersigned requests that said principal amount of
Warrant Securities be in fully registered form and in the authorized
denominations, registered in such names and delivered, all as specified in
accordance with the instructions set forth below.
If the number of Warrants exercised is less than all of the
Warrants evidenced hereby, the undersigned requests that a new Warrant
Certificate representing the remaining Warrants evidenced hereby be issued and
delivered to the undersigned unless otherwise specified in the instructions
below.
Dated: Name -------------------------------
(Please Print)
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Address
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Social Security Number
of Holder
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Signature
The Warrants evidenced hereby may be exercised at the following addresses:
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<PAGE> 23
By hand at
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By mail at
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[Instructions as to form and delivery of Warrant Securities and, if
applicable, Warrant Certificates evidencing unexercised Warrants--complete as
appropriate.]
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<PAGE> 24
Assignment
(Form of Assignment to be Executed if Holder Desires
to Transfer Warrants Evidenced Hereby)
For value received______________hereby sells, assigns and transfers unto
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
(Please print name and address, including zip code of assignee, and Social
Security Number or other identifying number)
the Warrants represented by the within Warrant Certificate and does hereby
irrevocably constitute and appoint Attorney, to transfer said Warrant
Certificate on the books of the Warrant Agent with full power of substitution
in the premises.
Dated: ---------------------------------------
Signature
(Signature must conform in all respect
to name of holder as specified on the
face of this Warrant Certificate and
must bear a signature guarantee of a
commercial bank, trust company, or
member broker of the New York, American,
Midwest or Pacific Stock Exchange.)
Signature Guaranteed:
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<PAGE> 1
EXHIBIT 4.5
NABORS INDUSTRIES, INC.
Form of Warrant Agreement
[for warrants sold attached to debt securities]*
THIS WARRANT AGREEMENT is dated as of ________________,
between Nabors Industries, Inc., a Delaware corporation (hereinafter called the
"Company", which term includes any successor corporation under the Indenture
hereinafter referred to), and _________________, as Warrant Agent (herein
called the "Warrant Agent").
WHEREAS, the Company has entered into an Indenture dated as of
_____________, (the "Indenture"), with ____________, as trustee (the
"Trustee"), providing for the issuance from time to time of its unsecured
[senior] [subordinated] debentures, notes or other evidences of indebtedness
(the "Debt Securities"), to be issued in one or more series, as provided in the
Indenture; and
WHEREAS, the Company proposes to sell [title of Debt
Securities being offered] (the "Offered Securities") with warrant certificates
evidencing one or more warrants (the "Warrants" or, individually a "Warrant")
representing the right to purchase [title of Debt Securities purchasable
through exercise of Warrants] (the "Warrant Securities"), such warrant
certificates and other warrant certificates issued pursuant to this Agreement
being herein called the "Warrant Certificates"; and
WHEREAS, the Company desires the Warrant Agent to act on
behalf of the Company in connection with the issuance, exchange, exercise and
replacement of the Warrant Certificates, and in this Agreement wishes to set
forth, among other things, the form and provisions of the Warrant Certificates
and the terms and conditions on which they may be issued, exchanged, exercised
and replaced:
NOW, THEREFORE, in consideration of the premises and of the
mutual agreements herein contained, the parties hereto agree as follows:
ARTICLE I.
Issuance of Warrants and Execution and
Delivery of Warrant Certificates.
Section 1.1. Issuance of Warrants. Warrants shall be initially
issued in connection with the issuance of the Offered Securities [but shall be
separately transferable on and after _________, ____ (the "Detachable Date")]
[and shall not be separately transferable] and each
______________
* Complete or modify the provisions of this Form as appropriate to
reflect the terms of the Warrants and Warrant Securities.
<PAGE> 2
Warrant Certificate shall evidence one or more Warrants. Each Warrant evidenced
thereby shall represent the right, subject to the provisions contained herein
and therein, to purchase a Warrant Security in the principal amount of
[$]_______. Warrant Certificates shall be initially issued in units with the
Offered Securities and each Warrant Certificate included in such a unit shall
evidence ___ Warrants for each [$]____ principal amount of Offered Securities
included in such unit.
Section 1.2. Execution and Delivery of Warrant Certificates.
Each Warrant Certificate, whenever issued, shall be in registered* form
substantially in the form set forth in Exhibit A hereto, shall be dated the
date of its issuance and may have such letters, numbers or other marks of
identification or designation and such legends or endorsements printed,
lithographed or engraved thereon as the officers of the Company executing the
same may approve (execution thereof to be conclusive evidence of such approval)
and as are not inconsistent with the provisions of this Agreement, or as may be
required to comply with any law or with any rule or regulation made pursuant
thereto or with any rule or regulation of any stock exchange on which the
Warrants may be listed, or to conform to usage. The Warrant Certificates shall
be signed on behalf of the Company by its Chairman of the Board, its President,
one of its Vice Presidents, its Treasurer or one of its Assistant Treasurers
under its corporate seal and attested by its Secretary or one of its Assistant
Secretaries. Such signatures may be manual or facsimile signatures of such
authorized officers and may be imprinted or otherwise reproduced on the Warrant
Certificates. The seal of the Company may be in the form of a facsimile thereof
and may be impressed, affixed, imprinted or otherwise reproduced on the Warrant
Certificates.
No Warrant Certificate shall be valid for any purpose, and no
Warrant evidenced thereby shall be exercisable, until such Warrant Certificate
has been countersigned by the manual signature of the Warrant Agent. Such
signature by the Warrant Agent upon any Warrant Certificate executed by the
Company shall be conclusive evidence that the Warrant Certificate so
countersigned has been duly issued hereunder.
In case any officer of the Company who shall have signed any
of the Warrant Certificates either manually or by facsimile signature shall
cease to be such officer before the Warrant Certificates so signed shall have
been countersigned and delivered by the Warrant Agent, such Warrant
Certificates may be countersigned and delivered notwithstanding that the person
who signed such Warrant Certificates ceased to be such officer of the Company;
and any Warrant Certificate may be signed on behalf of the Company by such
persons as, at the actual date of the execution of such Warrant Certificate,
shall be the proper officers of the Company, although at the date of the
execution of this Agreement any such person was not such officer.
The term "holder" or "holder of a Warrant Certificate" as used
herein shall mean any person in whose name at the time any Warrant Certificate
shall be registered upon the books to be maintained by the Warrant Agent for
that purpose. [If Offered Securities with Warrants which are not immediately
detachable - or upon the register of the Offered Securities prior to the
Detachable Date. The Company will or will cause the registrar of the Offered
Securities to make available at all
_______________
* If Warrants are issued in bearer form, appropriate revisions will be
made to this Agreement to facilitate such issuance.
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times to the Warrant Agent such information as to holders of the Offered
Securities with Warrants as may be necessary to keep the Warrant Agent's
records up to date.]
Section 1.3. Issuance of Warrant Certificates. Warrant
Certificates evidencing the right to purchase an aggregate principal amount not
exceeding [$]______ of Warrant Securities (except as provided in Sections
2.3(c), 3.2 and 4.1) may be executed by the Company and delivered to the
Warrant Agent upon the execution of this Warrant Agreement or from time to time
thereafter. The Warrant Agent shall, upon receipt of Warrant Certificates duly
executed on behalf of the Company, countersign Warrant Certificates evidencing
Warrants representing the right to purchase up to [$]______ aggregate principal
amount of Warrant Securities and shall deliver such Warrant Certificates to or
upon the order of the Company. Subsequent to such original issuance of the
Warrant Certificates, the Warrant Agent shall countersign a Warrant Certificate
only if the Warrant Certificate is issued in exchange or substitution for one
or more previously countersigned Warrant Certificates or in connection with
their transfer, as hereinafter provided or as provided in Section 2.3(c).
ARTICLE II.
Warrant Price, Duration and Exercise of Warrants.
Section 2.1. Warrant Price. [On _______, _____, the] [The
Warrant] exercise price of each Warrant is [$] ______. [During the period from
_________, ____, through and including _________, ____, the exercise price of
each Warrant will be [$]___________], plus [accrued amortization of the
original issue discount] [accrued interest] from _________, ____. [On
___________, ____, the exercise price of each Warrant will be [$]________. [if
applicable -- insert relevant amounts in applicable foreign currency, currency
unit or composite currency] During the period from _________, ____, through and
including _________, ____, the exercise price of each Warrant will be
[$]___________, plus [accrued amortization of the original issue discount]
[accrued interest] from _________, ____.] [In each case, the original issue
discount will be amortized at a ___% annual rate, computed on an annual basis
using a 360-day year consisting of twelve 30-day months]. Such purchase price
of Warrant Securities is referred to in this Agreement as the "Warrant Price."
[The original issue discount for each $1,000 principal amount of Warrant
Securities is [$]_____.]
Section 2.2. Duration of Warrants. Each Warrant may be
exercised in whole at any time, as specified herein, on or after [the date
thereof] [_________, ____,] and at or before 5 p.m. New York time on
__________________ (the "Expiration Date"). Each Warrant not exercised at or
before 5 p.m. New York time on the Expiration Date shall become void, and all
rights of the holder of the Warrant Certificate evidencing such Warrant under
this Agreement shall cease.
Section 2.3. Exercise of Warrants. (a) During the period
specified in Section 2.2, any whole number of Warrants may be exercised by
providing certain information set forth on the reverse side of the Warrant
Certificate and by paying in full, [in lawful money of the United States of
America] [if applicable -- insert relevant amounts in applicable foreign
currency, currency unit or composite currency] [in cash or by certified check
or official bank check or by bank wire transfer,
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<PAGE> 4
in each case] [by bank wire transfer], in immediately available funds, the
Warrant Price for each Warrant exercised, to the Warrant Agent at its corporate
trust office [or at ________], provided that such exercise is subject to
receipt, within five business days of such [payment] [wire transfer] by the
Warrant Agent of the Warrant Certificate with the form of election to purchase
Warrant Securities set forth on the reverse side of the Warrant Certificate
properly completed and duly executed. The date on which payment in full of the
Warrant Price is received by the Warrant Agent shall, subject to receipt of the
Warrant Certificate as aforesaid, be deemed to be the date on which the Warrant
is exercised. The Warrant Agent shall deposit all funds received by it in
payment of the Warrant Price in an account of the Company maintained with it
and shall advise the Company by telephone at the end of each day on which a
[payment] [wire transfer] for the exercise of Warrants is received of the
amount so deposited to its account. The Warrant Agent shall promptly confirm
such telephone advice to the Company in writing.
(b) The Warrant Agent shall, from time to time, as
promptly as practicable, advise the Company and the Trustee under the
Indenture (if such Trustee is not the Warrant Agent) of (i) the number
of Warrants exercised, (ii) the instructions of each holder of the
Warrant Certificates evidencing such Warrants with respect to delivery
of the Warrant Securities to which such holder is entitled upon such
exercise, (iii) delivery of Warrant Certificates evidencing the balance,
if any, of the Warrants remaining after such exercise, and (iv) such
other information as the Company shall reasonably require.
(c) As soon as practicable after the exercise of any
Warrant, the Company shall issue, pursuant to the Indenture, in
authorized denominations to or upon the order of the holder of the
Warrant Certificate evidencing such Warrant, the Warrant Securities to
which such holder is entitled in fully registered form, registered in
such name or names as may be directed by such holder.* If fewer than
all of the Warrants evidenced by such Warrant Certificate are exercised,
the Company shall execute, and an authorized officer of the Warrant
Agent shall manually countersign and deliver, a new Warrant Certificate
evidencing the number of such Warrants remaining unexercised.
(d) The Company shall not be required to pay any stamp or
other tax or other governmental charge required to be paid in connection
with any transfer involved in the issue of the Warrant Securities; and
in the event that any such transfer is involved, the Company shall not
be required to issue or deliver any Warrant Security until such tax or
other charge shall have been paid or it has been established to the
Company's satisfaction that no such tax or other charge is due.
______________
* Subject to change in accordance with changes in tax laws and regulations.
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ARTICLE III.
Other Provisions Relating to Rights of
Holders of Warrant Certificates.
Section 3.1. No Rights as Warrant Securityholder Conferred by
Warrants or Warrant Certificates. No Warrant Certificate or Warrant evidenced
thereby shall entitle the holder thereof to any of the rights of a holder of
Warrant Securities, including, without limitation, the right to receive the
payment of principal of, premium, if any, or interest on Warrant Securities or
to enforce any of the covenants in the Indenture.
Section 3.2. Lost, Stolen, Mutilated or Destroyed Warrant
Certificates. Upon receipt by the Warrant Agent of evidence reasonably
satisfactory to it of the ownership of and the loss, theft, destruction or
mutilation of any Warrant Certificate and of indemnity reasonably satisfactory
to it, and, in the case of mutilation, upon surrender thereof to the Warrant
Agent for cancellation, then, in the absence of notice to the Company or the
Warrant Agent that such Warrant Certificate has been acquired by a bona fide
purchaser, the Company shall execute, and an authorized officer of the Warrant
Agent shall manually countersign and deliver, in exchange for or in lieu of the
lost, stolen, destroyed or mutilated Warrant Certificate, a new Warrant
Certificate of the same tenor and evidencing a like number of Warrants. Upon
the issuance of any new Warrant Certificate 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 Warrant Agent) in connection therewith.
Every substitute Warrant Certificate executed and delivered pursuant to this
Section in lieu of any lost, stolen or destroyed Warrant Certificate shall
represent an additional contractual obligation of the Company, whether or not
the lost, stolen or destroyed Warrant Certificate shall be at any time
enforceable by anyone, and shall be entitled to the benefits of this Agreement
equally and proportionately with any and all other Warrant Certificates duly
executed and delivered hereunder. The provisions of this Section are exclusive
and shall preclude (to the extent lawful) all other rights and remedies with
respect to the replacement of mutilated, lost, stolen or destroyed Warrant
Certificates.
Section 3.3. Holder of Warrant Certificate May Enforce Rights.
Notwithstanding any of the provisions of this Agreement, any holder of a
Warrant Certificate, without the consent of the Warrant Agent, the holder of
any Warrant Securities or the holder of any other Warrant Certificate, may in
his own behalf and for his own benefit, enforce, and may institute and maintain
any suit, action or proceeding against the Company suitable to enforce or
otherwise in respect of, his right to exercise the Warrants evidenced by his
Warrant Certificate in the manner provided in his Warrant Certificate and in
this Agreement.
ARTICLE IV.
Exchange and Transfer of Warrant Certificates.
Section 4.1. Exchange and Transfer of Warrant Certificates.
[If Offered Securities with Warrants which are immediately detachable - Upon]
[If Offered Securities with Warrants which
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<PAGE> 6
are not immediately detachable -Prior to the Detachable Date, a Warrant
Certificate may be exchanged or transferred only together with the Offered
Securities to which the Warrant Certificate was initially attached and only for
the purpose of effecting or in conjunction with an exchange or transfer of such
Offered Securities. Prior to the Detachable Date, each transfer of the Offered
Securities [on the register of the Offered Securities] shall operate also to
transfer the related Warrant Certificates. After the Detachable Date upon]
surrender at the corporate trust office of the Warrant Agent [or ________],
Warrant Certificates evidencing Warrants may be exchanged for Warrant
Certificates in other denominations evidencing such Warrants or the transfer
thereof may be registered in whole or in part; provided that such other Warrant
Certificates evidence the same aggregate number of Warrants as the Warrant
Certificates so surrendered. The Warrant Agent shall keep, at its corporate
trust office [and at _______ __] books in which, subject to such reasonable
regulations as it may prescribe, it shall register Warrant Certificates and
exchanges and transfers of outstanding Warrant Certificates, upon surrender of
the Warrant Certificates to the Warrant Agent at its corporate trust office [or
____________] for exchange or registration of transfer, properly endorsed or
accompanied by appropriate instruments of registration of transfer and written
instructions for transfer, all in form satisfactory to the Company and the
Warrant Agent. No service charge shall be made for any exchange [or
registration of transfer] of Warrant Certificates but the Company may require
payment of a sum sufficient to cover any stamp or other tax or other
governmental charge that may be imposed in connection with any such exchange or
registration of transfer. Whenever any Warrant Certificates are so surrendered
for exchange or registration of transfer an authorized officer of the Warrant
Agent shall manually countersign and deliver to the person or persons entitled
thereto a Warrant Certificate or Warrant Certificates duly authorized and
executed by the Company, as so requested. The Warrant Agent shall not be
required to effect any exchange or registration of transfer which will result
in the issuance of a Warrant Certificate evidencing a fraction of a Warrant or
a number of full Warrants and a fraction of a Warrant. All Warrant Certificates
issued upon any exchange [or registration of transfer] of Warrant Certificates
shall be the valid obligations of the Company, evidencing the same obligations,
and entitled to the same benefits under this Agreement, as the Warrant
Certificates surrendered for such exchange or registration of transfer.
Section 4.2. Treatment of Holders of Warrant Certificates. [If
Warrants which are not immediately detachable - Every holder of a Warrant
Certificate, by accepting the same, consents and agrees with the Company, the
Warrant Agent and with every subsequent holder of such Warrant Certificate that
until the transfer of the Warrant Certificate is registered on the books of the
Warrant Agent [or the registrar of the Offered Securities prior to the
Detachable Date], the Company and the Warrant Agent [or the registrar of the
Offered Securities prior to the Detachable Date] may treat the registered
holder as the absolute owner thereof for any purpose and as the person entitled
to exercise the rights represented by the Warrants evidenced thereby, any
notice to the contrary notwithstanding.]
Section 4.3. Cancellation of Warrant Certificates. Any Warrant
Certificate surrendered for exchange, registration of transfer or exercise of
the Warrants evidenced thereby shall, if surrendered to the Company, be
delivered to the Warrant Agent and all Warrant Certificates surrendered or so
delivered to the Warrant Agent shall be promptly cancelled by the Warrant Agent
and shall not be reissued and, except as expressly permitted by this Agreement,
no Warrant
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<PAGE> 7
Certificate shall be issued hereunder in exchange or in lieu thereof. The
Warrant Agent shall deliver to the Company from time to time or otherwise
dispose of cancelled Warrant Certificates in a manner satisfactory to the
Company.
ARTICLE V.
Concerning the Warrant Agent
Section 5.1. Warrant Agent. The Company hereby appoints
__________, as Warrant Agent of the Company in respect of the Warrants and the
Warrant Certificates upon the terms and subject to the conditions herein set
forth; and __________ hereby accepts such appointment. The Warrant Agent shall
have the powers and authority granted to and conferred upon it in the Warrant
Certificates and hereby and such further powers and authority to act on behalf
of the Company as the Company may hereafter grant to or confer upon it. All of
the terms and provisions with respect to such powers and authority contained in
the Warrant Certificates are subject to and governed by the terms and
provisions hereof.
Section 5.2. Conditions of Warrant Agent's Obligations. The
Warrant Agent accepts its obligations herein set forth upon the terms and
conditions hereof, including the following, to all of which the Company agrees
and to all of which the rights hereunder of the holders from time to time of
the Warrant Certificates shall be subject:
(a) Compensation and Indemnification. The Company agrees
promptly to pay the Warrant Agent the compensation to be agreed upon
with the Company for all services rendered by the Warrant Agent and to
reimburse the Warrant Agent for reasonable out-of-pocket expenses
(including counsel fees) incurred by the Warrant Agent in connection
with the services rendered hereunder by the Warrant Agent. The Company
also agrees to indemnify the Warrant Agent for, and to hold it
harmless against, any loss, liability or expense incurred without
negligence or bad faith on the part of the Warrant Agent, arising out
of or in connection with its acting as Warrant Agent hereunder, as
well as the costs and expenses of defending against any claim of such
liability.
(b) Agent for the Company. In acting under this Warrant
Agreement and in connection with the Warrant Certificates, the Warrant
Agent is acting solely as agent of the Company and does not assume any
obligation or relationship of agency or trust for or with any of the
holders of Warrant Certificates or beneficial owners of Warrants.
(c) Counsel. The Warrant Agent may consult with counsel
satisfactory to it, and the advice of such 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 accordance
with the advice of such counsel.
(d) Documents. The Warrant Agent shall be protected and
shall incur no liability for or in respect of any action taken or
thing suffered by it in reliance upon any Warrant Certificate, notice,
direction, consent, certificate, affidavit, statement or other paper
or
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<PAGE> 8
document reasonably believed by it to be genuine and to have been
presented or signed by the proper parties.
(e) Certain Transactions. The Warrant Agent, and its
officers, directors and employees, may become the owner of, or acquire
any interest in, Warrants, with the same rights that it or they would
have if it were not the Warrant Agent hereunder, and, to the extent
permitted by applicable law, it or they may engage or be interested in
any financial or other transaction with the Company and may act on, or
as depositary, trustee or agent for, any committee or body of holders
of Warrant Securities or other obligations of the Company as freely as
if it were not the Warrant Agent hereunder. Nothing in this Warrant
Agreement shall be deemed to prevent the Warrant Agent from acting as
trustee for any series of Debt Securities under the Indenture.
(f) No Liability for Interest. The Warrant Agent shall
have no liability for interest on any monies at any time received by
it pursuant to any of the provisions of this Agreement or of the
Warrant Certificates.
(g) No Liability for Invalidity. The Warrant Agent shall
have no liability with respect to any invalidity of this Agreement or
any of the Warrant Certificates.
(h) No Responsibility for Representations. The Warrant
Agent shall not be responsible for any of the recitals or
representations herein or in the Warrant Certificates (except as to
the Warrant Agent's countersignature thereon), all of which are made
solely by the Company.
(i) No Implied Obligations. The Warrant Agent
shall be obligated to perform only such duties as are herein and in the Warrant
Certificates specifically set forth and no implied duties or obligations shall
be read into this Agreement or the Warrant Certificates against the Warrant
Agent. The Warrant Agent shall not be under any obligation to take any action
hereunder which may tend to involve it in any expense or liability, the payment
of which within a reasonable time is not, in its reasonable opinion, assured to
it. The Warrant Agent shall not be accountable or under any duty or
responsibility for the use by the Company of any of the Warrant Certificates
authenticated by the Warrant Agent and delivered by it to the Company pursuant
to this Agreement or for the application by the Company of the proceeds of the
Warrant Certificates. The Warrant Agent shall have no duty or responsibility in
case of any default by the Company in the performance of its covenants or
agreements contained herein or in the Warrant Certificates or in the case of
the receipt of any written demand from a holder of a Warrant Certificate with
respect to such default, including, without limiting the generality of the
foregoing, any duty or responsibility to initiate or attempt to initiate any
proceedings at law or otherwise or, except as provided in Section 6.2, to make
any demand upon the Company.
Section 5.3. Resignation and Appointment of Successor. (a) The
Company agrees, for the benefit of the holders of the Warrant Certificates,
that there shall at all times be a Warrant Agent hereunder until all the
Warrant Certificates are no longer exercisable.
- 8 -
<PAGE> 9
(b) The Warrant Agent may at any time resign as such
agent by giving written notice to the Company of such intention on its
part, specifying the date on which its desired resignation shall
become effective; provided that such date shall not be less than three
months after the date on which such notice is given unless the Company
otherwise agrees. The Warrant Agent hereunder may be removed at any
time by the filing with it of an instrument in writing signed by or on
behalf of the Company and specifying such removal and the date when it
shall become effective. Such resignation or removal shall take effect
upon the appointment by the Company, as hereinafter provided, of a
successor Warrant Agent (which shall be a bank or trust company
authorized under the laws of the jurisdiction of its organization to
exercise corporate trust powers) and the acceptance of such
appointment by such successor Warrant Agent. The obligation of the
Company under Section 5.2(a) shall continue to the extent set forth
therein notwithstanding the resignation or removal of the Warrant
Agent.
(c) In case at any time the Warrant Agent shall resign,
or shall be removed, or shall become incapable of acting, or shall be
adjudged a bankrupt or insolvent, or shall file a petition seeking
relief under the Federal Bankruptcy Code, as now constituted or
hereafter amended, or under any other applicable Federal or State
bankruptcy law or similar law or make an assignment for the benefit of
its creditors or consent to the appointment of a receiver or custodian
of all or any substantial part of its property, or shall admit in
writing its inability to pay or meet its debts as they mature, or if a
receiver or custodian of it or of all or any substantial part of its
property shall be appointed, or if an order of any court shall be
entered for relief against it under the provisions of the Federal
Bankruptcy Code, as now constituted or hereafter amended, or under any
other applicable Federal or State bankruptcy or similar law, or if any
public officer shall have taken charge or control of the Warrant Agent
or of its property or affairs, for the purpose of rehabilitation,
conservation or liquidation, a successor Warrant Agent, qualified as
aforesaid, shall be appointed by the Company by an instrument in
writing, filed with the successor Warrant Agent. Upon the appointment
as aforesaid of a successor Warrant Agent and acceptance by the
successor Warrant Agent of such appointment, the Warrant Agent shall
cease to be Warrant Agent hereunder.
(d) Any successor Warrant Agent appointed hereunder shall
execute, acknowledge and deliver to its predecessor and to the Company
an instrument accepting such appointment hereunder, and thereupon such
successor Warrant Agent, without any further act, deed or conveyance,
shall become vested with all the authority, rights, powers, trusts,
immunities, duties and obligations of such predecessor with like
effect as if originally named as Warrant Agent hereunder, and such
predecessor, upon payment of its charges and disbursements then
unpaid, shall thereupon become obligated to transfer, deliver and pay
over, and such successor Warrant Agent shall be entitled to receive,
all monies, securities and other property on deposit with or held by
such predecessor, as Warrant Agent hereunder.
(e) Any corporation into which the Warrant Agent
hereunder may be merged or converted or any corporation with which the
Warrant Agent may be consolidated, or any corporation resulting from
any merger, conversion or consolidation to which the Warrant Agent
shall be a party, or any corporation to which the Warrant Agent shall
sell or otherwise
- 9 -
<PAGE> 10
transfer all or substantially all the assets and business of the
Warrant Agent, provided that it shall be qualified as aforesaid, shall
be the successor Warrant Agent under this Agreement without the
execution or filing of any paper or any further act on the part of any
of the parties hereto.
ARTICLE VI.
Miscellaneous.
Section 6.1. Amendment. This Agreement may be amended by the
parties hereto, without the consent of the holder of any Warrant Certificate,
for the purpose of curing any ambiguity, or of curing, correcting or
supplementing any defective or inconsistent provision contained herein, or
making any other provisions with respect to matters or questions arising under
this Agreement as the Company and the Warrant Agent may deem necessary or
desirable; provided, that such action shall not materially and adversely affect
the interests of the holders of the Warrant Certificates and, provided further,
that the Company and the Warrant Agent may amend this Agreement in any manner
prior to the issuance of any Warrants hereunder. With the consent of the
holders of not less than a majority in number of the then outstanding
unexercised Warrants affected, the Company and the Warrant Agent may modify or
amend any other term of this Agreement; provided, however, that no such
modification or amendment may be made without the consent of the holders
affected thereby if such proposed amendment would (i) shorten the period of
time during which the Warrants may be exercised; (ii) otherwise materially and
adversely affect the exercise rights of the holders of the Warrants; or (iii)
reduce the number of outstanding Warrants.
Section 6.2. Notices and Demands to the Company and Warrant
Agent. If the Warrant Agent shall receive any notice or demand addressed to the
Company by the holder of a Warrant Certificate pursuant to the provisions of
the Warrant Certificates, the Warrant Agent shall promptly forward such notice
or demand to the Company.
Section 6.3. Addresses. Any communication from the Company to
the Warrant Agent with respect to this Agreement shall be addressed to
____________, and any communication from the Warrant Agent to the Company with
respect to this Agreement shall be addressed to Nabors Industries, Inc., 515
West Greens Road, Suite 1200, Dallas, Texas 77067, Attention: _______________
(or such other address as shall be specified in writing by the Warrant Agent or
by the Company).
Section 6.4. Applicable Law. The validity, interpretation and
performance of this Agreement and each Warrant Certificate issued hereunder and
of the respective terms and provisions thereof shall be governed by and
construed in accordance with, the laws of the State of New York, without giving
effect to the conflict of laws principles thereof.
Section 6.5. Delivery of Prospectus. The Company will furnish
to the Warrant Agent sufficient copies of a prospectus relating to the Warrant
Securities deliverable upon exercise of Warrants (the "Prospectus"), and the
Warrant Agent agrees that upon the exercise of any Warrant, the Warrant Agent
will deliver to the holder of the Warrant Certificate evidencing such Warrant,
- 10 -
<PAGE> 11
prior to or concurrently with, the delivery of the Warrant Securities issued
upon such exercise, a Prospectus.
Section 6.6. Obtaining of Governmental Approvals. The Company
will from time to time take all action which may be necessary to obtain and
keep effective any and all permits, consents and approvals of governmental
agencies and authorities and securities acts filings under United States
Federal and State laws (including, without limitation, a registration statement
in respect of the Warrants and Warrant Securities under the Securities Act of
1933, as amended), which may be or become requisite in connection with the
issuance, sale, transfer, and delivery of the Warrant Certificates, the
exercise of the Warrants, the issuance, sale, transfer, and delivery of the
Warrant Securities issued upon exercise of the Warrants or upon the expiration
of the period during which the Warrants are exercisable.
Section 6.7. Persons Having Rights under Warrant Agreement.
Nothing in this Agreement shall give to any person other than the Company, the
Warrant Agent and the holders of the Warrant Certificates any right, remedy or
claim under or by reason of this Agreement.
Section 6.8. Headings. The descriptive headings of the several
Articles and Sections of this Agreement are inserted for convenience only and
shall not control or affect the meaning or construction of any of the
provisions hereof.
Section 6.9. Counterparts. This Agreement may be executed in
any number of counterparts, each of which as so executed shall be deemed to be
an original, but such counterparts shall together constitute but one and the
same instrument.
Section 6.10. Inspection of Agreement. A copy of this
Agreement shall be available at all reasonable times at the principal corporate
trust office of the Warrant Agent for inspection by the holder of any Warrant
Certificate. The Warrant Agent may require such holder to submit his Warrant
Certificates for inspection by it.
IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be duly executed and their respective corporate seals to be
affixed hereunto, and the same to be attested, all as of the day and year first
above written.
NABORS INDUSTRIES, INC.
By
Attest: -------------------------------------
- ----------------------------------
[NAME OF WARRANT AGENT],
as Warrant Agent
By
Attest: -------------------------------------
- ----------------------------------
- 11 -
<PAGE> 12
Exhibit A
(FORM OF WARRANT CERTIFICATE)
[Face of Warrant Certificate]
[Form of Legend of Warrants which are not immediately detachable: Prior to
___________, this Warrant Certificate cannot be transferred or exchanged unless
attached to a [Title of Offered Securities].]
Exercisable Only if Countersigned by the Warrant Agent as Provided Herein
NABORS INDUSTRIES, INC.
WARRANTS TO PURCHASE
[Title of Warrant Securities]
Void After 5:00 P.M. New York Time on ___________
[No.] Warrants
This certifies that ________ or registered assigns is the registered owner of
the above indicated number of Warrants, each Warrant entitling such owner to
purchase, at any time [after 5 p.m. New York time on , [date], and] on or
before 5 p.m. New York time on [date] [$] _____________ principal amount of
[Title of Warrant Securities] (the "Warrant Securities"), of Nabors Industries,
Inc. (the "Company") issued and to be issued under the Indenture (as
hereinafter defined), on the following basis: [on [date] the exercise price of
each Warrant is [$] ; during the period from , [date] through and including
[date], the exercise price of each Warrant will be [$] , plus [accrued
amortization of the original issue discount] [accrued interest] from [date]; on
[date] the exercise price of each Warrant will be [$] ; during the period from
[date] through and including [date] , the exercise price of each Warrant will
be [$] , plus [accrued amortization of the original issue discount] [accrued
interest] from [date]; [in each case, the original issue discount will be
amortized at at __% annual rate, computed on an annual basis using a 360-day
year consisting of twelve 30-day months] (the "Warrant Price"). [The original
issue discount for each $1,000 principal amount [if applicable, insert relevant
amount of foreign currency, currency units or composite currency] of Warrant
Securities is $____________.] The holder may exercise the Warrants evidenced
hereby by providing certain information set forth on the back hereof and by
paying in full, [in lawful money of the United States of America] [if
applicable, express Warrant exercise price in applicable foreign currency,
currency unit or composite currency] [in cash or by certified check or official
bank check or by bank wire transfer, in each case] [by bank wire transfer], in
immediately available funds, the Warrant Price for each Warrant exercised to
the Warrant Agent (as hereinafter defined) and by surrendering this Warrant
Certificate, with the purchase form on the back hereof duly executed, at the
corporate trust office of [name of Warrant Agent], or its successors as warrant
agent (the "Warrant Agent"), [or ________________] currently at the address
specified on the reverse hereof, and upon compliance with and subject to the
conditions set forth herein and in the Warrant Agreement (as hereinafter
defined).
- 12 -
<PAGE> 13
Any whole number of Warrants evidenced by this Warrant
Certificate may be exercised to purchase Warrant Securities in registered form
in denominations of $______________ and any integral multiples thereof. Upon
any exercise of fewer than all of the Warrants evidenced by this Warrant
Certificate, there shall be issued to the holder hereof a new Warrant
Certificate evidencing the number of Warrants remaining unexercised.
This Warrant Certificate is issued under and in accordance
with the Warrant Agreement dated as of ___________, ____, (the "Warrant
Agreement") between the Company and the Warrant Agent and is subject to the
terms and provisions contained in the Warrant Agreement, to all of which terms
and provisions the holder of this Warrant Certificate consents by acceptance
hereof. Copies of the Warrant Agreement are on file at the above-mentioned
office of the Warrant Agent [and at ______________].
The Warrant Securities to be issued and delivered upon the
exercise of the Warrants evidenced by this Warrant Certificate will be issued
under and in accordance with an Indenture dated as of ___________, ____, (the
"Indenture") between the Company and ________________, as trustee, and will be
subject to the terms and provisions contained in the Indenture. Copies of the
Indenture and the form of Warrant Securities are on file at the corporate trust
office of the trustee [and at ________________].
[If Offered Securities with Warrants which are not immediately
detachable - Prior to , 199__, this Warrant Certificate may be exchanged or
transferred only together with the [Title of Offered Securities] ("Offered
Securities") to which this Warrant Certificate was initially attached, and only
for the purpose of effecting, or in conjunction with, an exchange or transfer
of such Offered Securities. After such date, this [If Offered Securities with
Warrants which are immediately detachable - Transfer of this] Warrant
Certificate may be registered when this Warrant Certificate is surrendered at
the corporate trust office of the Warrant Agent [or _____] by the registered
owner or his assigns, in person or by an attorney duly authorized in writing,
in the manner and subject to the limitations provided in the Warrant
Agreement.]
[If Offered Securities with Warrants which are not immediately
detachable - Except as provided in the immediately preceding paragraph, after]
[If Offered Securities with Warrants which are immediately detachable - After]
countersignature by the Warrant Agent and prior to the expiration of this
Warrant Certificate, this Warrant Certificate may be exchanged at the corporate
trust office of the Warrant Agent for Warrant Certificates representing the
same aggregate number of Warrants.
This Warrant Certificate shall not entitle the holder hereof
to any of the rights of a holder of Warrant Securities, including, without
limitation, the right to receive payments of principal of, premium, if any, or
interest, if any, on the Warrant Securities or to enforce any of the covenants
of the Indenture.
- 13 -
<PAGE> 14
This Warrant Certificate shall not be valid or obligatory for
any purpose until countersigned by the Warrant Agent.
Dated as of , .
--------- -----
NABORS INDUSTRIES, INC.
By
Attest: -------------------------------------
- ----------------------------------
Countersigned
- ----------------------------------
As Warrant Agent
By
--------------------------------
Authorized Signature
- 14 -
<PAGE> 15
[Reverse of Warrant Certificate]
Instructions for Exercise of Warrant
To exercise the Warrants evidenced hereby, the holder must pay
[in cash or by certified check or official bank check or by bank wire transfer]
[by bank wire transfer], in immediately available funds, the Warrant Price in
full for Warrants exercised to [insert name of Warrant Agent] Corporate Trust
Department [insert address of Warrant Agent], Attn: [or ], which [payment]
[wire transfer] must specify the name of the holder and the number of Warrants
exercised by such holder. In addition, the holder must complete the information
required below and present this Warrant Certificate in person or by mail
(registered mail is recommended) to the Warrant Agent at the addresses set
forth below. This Warrant Certificate, completed and duly executed, must be
received by the Warrant Agent within five business days of the [payment] [wire
transfer].
To Be Executed Upon Exercise of Warrant
The undersigned hereby irrevocably elects to exercise Warrants
evidenced by this Warrant Certificate, to purchase [$]_____________ principal
amount of the [Title of Warrant Securities] (the "Warrant Securities") of
Nabors Industries, Inc. and represents that he has tendered payment for such
Warrant Securities [in cash or by certified check or official bank check or by
bank wire transfer, in each case] [by bank wire transfer], in immediately
available funds, to the order of Nabors Industries, Inc., c/o [insert name and
address of Warrant Agent], in the amount of [$]_____________ in accordance with
the terms hereof. The undersigned requests that said principal amount of
Warrant Securities be in fully registered form and in the authorized
denominations, registered in such names and delivered, all as specified in
accordance with the instructions set forth below.
If the number of Warrants exercised is less than all of the
Warrants evidenced hereby, the undersigned requests that a new Warrant
Certificate representing he remaining Warrants evidenced hereby be issued and
delivered to the undersigned unless otherwise specified in the instructions
below.
Dated: Name
----------------------------------
(Please Print)
- ----------------------------------
Address
- ----------------------------------
Social Security Number of Holder
- ----------------------------------
Signature
- 15 -
<PAGE> 16
The Warrants evidenced hereby may be exercised at the
following addresses:
By hand at
----------------------------------
----------------------------------
----------------------------------
----------------------------------
By mail at
----------------------------------
----------------------------------
----------------------------------
----------------------------------
[Instructions as to form and delivery of Warrant Securities
and, if applicable, Warrant Certificates evidencing unexercised Warrants
- --complete as appropriate.]
- 16 -
<PAGE> 17
Assignment
(Form of Assignment to be Executed if Holder Desires
to Transfer Warrants Evidenced Hereby)
For value received ___________ hereby sells, assigns and transfers unto
___________________________________________________________________
___________________________________________________________________ (Please
print name and address, including zip code, of assignee and Social Security
Number or other identifying number)
the Warrants represented by the within Warrant Certificate and does hereby
irrevocably constitute and appoint Attorney, to transfer said Warrant
Certificate on the books of the Warrant Agent with full power of substitution
in the premises.
Dated:
---------------------------------------
Signature
(Signature must conform in all respect
to name of holder as specified on the
face of this Warrant Certificate and
must bear a signature guarantee of a
commercial bank, trust company, or
member broker of the New York,
American, Midwest or Pacific Stock
Exchange.)
Signature Guaranteed:
- -----------------------------------
- 17 -
<PAGE> 1
EXHIBIT 4.6
NABORS INDUSTRIES, INC.
Form of Warrant Agreement
[for warrants sold alone]*
THIS WARRANT AGREEMENT is dated as of ___________, between
Nabors Industries, Inc., a Delaware corporation (hereinafter called the
"Company", which term includes any successor corporation), and _____________,
as Warrant Agent (herein called the "Warrant Agent").
WHEREAS, the Company proposes to sell warrant certificates
evidencing one or more warrants (the "Warrants" or, individually, a "Warrant")
representing the right to purchase [title of Debt or Equity Securities
purchasable through exercise of Warrants] (the "Warrant Securities"), such
warrant certificates and other warrant certificates issued pursuant to this
Agreement being herein called the "Warrant Certificates"; and
WHEREAS, the Company desires the Warrant Agent to act on
behalf of the Company in connection with the issuance, exchange, exercise and
replacement of the Warrant Certificates, and in this Agreement wishes to set
forth, among other things, the form and provisions of the Warrant Certificates
and the terms and conditions on which they may be issued, exchanged, exercised
and replaced;
NOW, THEREFORE, in consideration of the premises and of the
mutual agreements herein contained, the parties hereto agree as follows:
ARTICLE I.
Issuance of Warrants and Execution and
Delivery of Warrant Certificates.
Section 1.1. Issuance of Warrants. Each Warrant Certificate
shall evidence one or more Warrants. Each Warrant evidenced thereby shall
represent the right, subject to the provisions contained herein and therein, to
purchase Warrant Securities.
Section 1.2. Execution and Delivery of Warrant Certificates.
Each Warrant Certificate, whenever issued, shall be in registered** form
substantially in the form set forth in Exhibit A hereto, shall be dated the
date of its issuance and may have such letters, numbers or other marks of
identification or designation and such legends or endorsements printed,
lithographed or engraved thereon as the officers of the Company executing the
same may approve (execution thereof to be conclusive evidence of such approval)
and as are not inconsistent with the provisions of this
_______________
* Complete or modify the provisions of this Form as appropriate to reflect
the terms of the Warrants and Warrant Securities.
** If Warrants are issued in bearer form, appropriate revisions will be
made to this Agreement to facilitate such issuance.
<PAGE> 2
Agreement, or as may be required to comply with any law or with any rule or
regulation made pursuant thereto or with any rule or regulation of any stock
exchange on which the Warrants may be listed, or to conform to usage. The
Warrant Certificates shall be signed on behalf of the Company by its Chairman
of the Board, its President, one of its Vice Presidents, its Treasurer or one
of its Assistant Treasurers under its corporate seal and attested by its
Secretary or one of its Assistant Secretaries. Such signatures may be manual or
facsimile signatures of such authorized officers and may be imprinted or
otherwise reproduced on the Warrant Certificates. The seal of the Company may
be in the form of a facsimile thereof and may be impressed, affixed, imprinted
or otherwise reproduced on the Warrant Certificates.
No Warrant Certificate shall be valid for any purpose, and no
Warrant evidenced thereby shall be exercisable, until such Warrant Certificate
has been countersigned by the manual signature of the Warrant Agent. Such
signature by the Warrant Agent upon any Warrant Certificate executed by the
Company shall be conclusive evidence that the Warrant Certificate so
countersigned has been duly issued hereunder.
In case any officer of the Company who shall have signed any
of the Warrant Certificates either manually or by facsimile signature shall
cease to be such officer before the Warrant Certificates so signed shall have
been countersigned and delivered by the Warrant Agent, such Warrant
Certificates may be countersigned and delivered notwithstanding that the person
who signed such Warrant Certificates ceased to be such officer of the Company;
and any Warrant Certificate may be signed on behalf of the Company by such
persons as, at the actual date of the execution of such Warrant Certificate,
shall be the proper officers of the Company, although at the date of the
execution of this Agreement any such person was not such officer.
The term "holder" or "holder of a Warrant Certificate" as used
herein shall mean any person in whose name at the time any Warrant Certificate
shall be registered upon the books to be maintained by the Warrant Agent for
that purpose.
Section 1.3. Issuance of Warrant Certificates. Warrant
Certificates evidencing the right to purchase Warrant Securities (except as
provided in Sections 2.3(c), 3.2 and 4.1) may be executed by the Company and
delivered to the Warrant Agent upon the execution of this Warrant Agreement or
from time to time thereafter. The Warrant Agent shall, upon receipt of Warrant
Certificates duly executed on behalf of the Company, countersign Warrant
Certificates evidencing Warrants representing the right to purchase up to
____________ Warrant Securities and shall deliver such Warrant Certificates to
or upon the order of the Company. Subsequent to such original issuance of the
Warrant Certificates, the Warrant Agent shall countersign a Warrant Certificate
only if the Warrant Certificate is issued in exchange or substitution for one
or more previously countersigned Warrant Certificates or in connection with
their transfer, as hereinafter provided or as provided in Section 2.3(c).
- 2 -
<PAGE> 3
ARTICLE II.
Warrant Price, Duration and Exercise of Warrants.
Section 2.1. Warrant Price. [On ________, _____, the] [The
original] exercise price of each Warrant is [$]_______. [During the period from
_________, ____, through and including _________, ____, the exercise price of
each Warrant will be [$]___________. On ___________, ____, the exercise price
of each Warrant will be [$]________.] [if applicable, insert relevant amounts
in applicable foreign currency, currency unit or composite currency] Such
purchase price of Warrant Securities is referred to in this Agreement as the
"Warrant Price." The Warrant Price and the number and kind of Warrant
Securities for which a Warrant may be exercised is subject to adjustment from
time to time as set forth in Article V hereof.
Section 2.2. Duration of Warrants. Each Warrant may be
exercised in whole at any time, as specified herein, on or after [the date
thereof] [_________, ____,] and at or before 5 p.m. New York time on
______________ (the "Expiration Date"). Each Warrant not exercised at or before
5 p.m. New York time on the Expiration Date shall become void, and all rights
of the holder of the Warrant Certificate evidencing such Warrant under this
Agreement shall cease.
Section 2.3. Exercise of Warrants. (a) During the period
specified in Section 2.2, any whole number of Warrants may be exercised by
providing certain information set forth on the reverse side of the Warrant
Certificate and by paying in full, [in lawful money of the United States of
America] [if applicable, express Warrant exercise price in applicable foreign
currency, currency unit or composite currency] [in cash or by certified check
or official bank check or by bank wire transfer, in each case] [by bank wire
transfer], in immediately available funds, the Warrant Price for each Warrant
exercised, to the Warrant Agent at its corporate trust office [or at ________],
provided that such exercise is subject to receipt, within three business days
of such [payment] [wire transfer] by the Warrant Agent of the Warrant
Certificate with the form of election to purchase Warrant Securities set forth
on the reverse side of the Warrant Certificate properly completed and duly
executed. The date on which payment in full of the Warrant Price is received by
the Warrant Agent shall, subject to receipt of the Warrant Certificate as
aforesaid, be deemed to be the date on which the Warrant is exercised. The
Warrant Agent shall deposit all funds received by it in payment of the Warrant
Price in an account of the Company maintained with it and shall advise the
Company by telephone at the end of each day on which a [payment] [wire
transfer] for the exercise of Warrants is received of the amount so deposited
to its account. The Warrant Agent shall promptly confirm such telephone advice
to the Company in writing.
(b) The Warrant Agent shall, from time to time, as promptly as
practicable, advise the Company of (i) the number of Warrants
exercised, (ii) the instructions of each holder of the Warrant
Certificates evidencing such Warrants with respect to delivery of the
Warrant Securities to which such holder is entitled upon such
exercise, (iii) delivery of Warrant Certificates evidencing the
balance, if any, of the Warrants remaining after such exercise, and
(iv) such other information as the Company shall reasonably require.
- 3 -
<PAGE> 4
(c) As soon as practicable after the exercise of any Warrant,
the Company shall issue to or upon the order of the holder of the
Warrant Certificate evidencing such Warrant, the Warrant Securities to
which such holder is entitled in fully registered form, registered in
such name or names as may be directed by such holder. Such certificate
or certificates evidencing the Warrant Securities shall be deemed to
have been issued and any persons who are designated to be named
therein shall be deemed to have become the holder of record of such
Warrant Securities as of the close of business on the exercise date.
No fractional Warrant Securities will be issued upon exercise of any
Warrant. For each fractional Warrant Security that would otherwise be
issued, the Company will pay by company check in an amount equal to
such fraction multiplied by the closing sales price of the Warrant
Securities on the principal national securities exchange on which they
are listed (or if not so listed, another equivalent means reasonably
determined by the Company) on the business day immediately preceding
the exercise date. If fewer than all of the Warrants evidenced by such
Warrant Certificate are exercised, the Company shall execute, and an
authorized officer of the Warrant Agent shall manually countersign and
deliver, a new Warrant Certificate evidencing the number of such
Warrants remaining unexercised.
(d) The Company shall not be required to pay any stamp or
other tax or other governmental charge required to be paid in
connection with any transfer involved in the issue of the Warrant
Securities; and in the event that any such transfer is involved, the
Company shall not be required to issue or deliver any Warrant Security
until such tax or other charge shall have been paid or it has been
established to the Company's satisfaction that no such tax or other
charge is due.
ARTICLE III.
Other Provisions Relating to Rights of
Holders of Warrant Certificates.
Section 3.1. No Rights as Stockholder or Debtholder Conferred
by Warrants or Warrant Certificates. No Warrant Certificate or Warrant
evidenced thereby shall entitle the holder thereof to any of the rights of a
holder of Warrant Securities, including, without limitation, the right to
receive dividends, vote, receive notice of any meeting of stockholders or
otherwise have any right as a stockholder of the Company, or the right to
receive the payment of principal of, premium, if any, or interest on Warrant
Securities or to enforce any of the covenants in the Indenture.
Section 3.2. Lost, Stolen, Mutilated or Destroyed Warrant
Certificates. Upon receipt by the Warrant Agent of evidence reasonably
satisfactory to it of the ownership of and the loss, theft, destruction or
mutilation of any Warrant Certificate and of indemnity reasonably satisfactory
to it, and, in the case of mutilation, upon surrender thereof to the Warrant
Agent for cancellation, then, in the absence of notice to the Company or the
Warrant Agent that such Warrant Certificate has been acquired by a bona fide
purchaser, the Company shall execute, and an authorized officer of the Warrant
Agent shall manually countersign and deliver, in exchange for or in lieu of the
lost, stolen, destroyed or mutilated Warrant Certificate, a new Warrant
Certificate of the same tenor and evidencing a like number of Warrants. Upon
the issuance of any new Warrant Certificate under this
- 4 -
<PAGE> 5
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 Warrant Agent) in
connection therewith. Every substitute Warrant Certificate executed and
delivered pursuant to this Section in lieu of any lost, stolen or destroyed
Warrant Certificate shall represent an additional contractual obligation of the
Company, whether or not the lost, stolen or destroyed Warrant Certificate shall
be at any time enforceable by anyone, and shall be entitled to the benefits of
this Agreement equally and proportionately with any and all other Warrant
Certificates duly executed and delivered hereunder. The provisions of this
Section are exclusive and shall preclude (to the extent lawful) all other
rights and remedies with respect to the replacement of mutilated, lost, stolen
or destroyed Warrant Certificates.
Section 3.3. Holder of Warrant Certificate May Enforce Rights.
Notwithstanding any of the provisions of this Agreement, any holder of a
Warrant Certificate, without the consent of the Warrant Agent, the holder of
any Warrant Securities or the holder of any other Warrant Certificate, may, in
his own behalf and for his own benefit, enforce, and may institute and maintain
any suit, action or proceeding against the Company suitable to enforce or
otherwise in respect of, his right to exercise the Warrants evidenced by his
Warrant Certificate in the manner provided in his Warrant Certificate and in
this Agreement.
ARTICLE IV.
Exchange and Transfer of Warrant Certificates.
Section 4.1. Exchange and Transfer of Warrant Certificates.
Upon surrender at the corporate trust office of the Warrant Agent [or at
________], Warrant Certificates evidencing Warrants may be exchanged for
Warrant Certificates in other denominations evidencing such Warrants or the
transfer thereof may be registered in whole or in part; provided that such
other Warrant Certificates evidence the same aggregate number of Warrants as
the Warrant Certificates so surrendered. The Warrant Agent shall keep, at its
corporate trust office [and at __________] books in which, subject to such
reasonable regulations as it may prescribe, it shall register Warrant
Certificates and exchanges and transfers of outstanding Warrant Certificates,
upon surrender of the Warrant Certificates to the Warrant Agent at its
corporate trust office [or at ____________] for exchange or registration of
transfer, properly endorsed or accompanied by appropriate instruments of
registration of transfer and written instructions for transfer, all in form
satisfactory to the Company and the Warrant Agent. No service charge shall be
made for any exchange or registration of transfer of Warrant Certificates but
the Company may require payment of a sum sufficient to cover any stamp or other
tax or other governmental charge that may be imposed in connection with any
such exchange or registration of transfer. Whenever any Warrant Certificates
are so surrendered for exchange or registration of transfer an authorized
officer of the Warrant Agent shall manually countersign and deliver to the
person or persons entitled thereto a Warrant Certificate or Warrant
Certificates duly authorized and executed by the Company, as so requested. The
Warrant Agent shall not be required to effect any exchange or registration of
transfer which will result in the issuance of a Warrant Certificate evidencing
a fraction of a Warrant or a number of full Warrants and a fraction of a
Warrant. All Warrant Certificates issued upon any exchange or registration of
transfer of Warrant Certificates shall be the valid obligations of the Company,
evidencing the same obligations,
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and entitled to the same benefits under this Agreement, as the Warrant
Certificates surrendered for such exchange or registration of transfer.
Section 4.2. Treatment of Holders of Warrant Certificates. The
Company and the Warrant Agent may treat the registered holder as the absolute
owner thereof for any purpose and as the person entitled to exercise the rights
represented by the Warrants evidenced thereby, any notice to the contrary
notwithstanding.
Section 4.3. Cancellation of Warrant Certificates. Any Warrant
Certificate surrendered for exchange registration of transfer or exercise of
the Warrants evidenced thereby shall, if surrendered to the Company, be
delivered to the Warrant Agent and all Warrant Certificates surrendered or so
delivered to the Warrant Agent shall be promptly canceled by the Warrant Agent
and shall not be reissued and, except as expressly permitted by this Agreement,
no Warrant Certificate shall be issued hereunder in exchange or in lieu
thereof. The Warrant Agent shall deliver to the Company from time to time or
otherwise dispose of canceled Warrant Certificates in a manner satisfactory to
the Company.
ARTICLE V.
Adjustments.
Section 5.1. Adjustment of Warrant Price and Number of Warrant
Securities Purchaseable.
(a) In case at any time the Company shall issue and sell for
cash any Warrant Securities (excluding (i) Warrant Securities issued
in any of the transactions described in paragraphs (b), (c) or (d)
below and (ii) Warrant Securities issued upon exercise of Warrants) at
a price per Share lower than 15% below the Market Price determined as
of the date immediately preceding the date of such sale and issuance,
the Warrant Price in effect at the close of business on the date
immediately preceding the date of such sale and issuance shall be
reduced by multiplying such Warrant Price by a fraction, (i) the
numerator of which shall be the sum of (x) the number of Warrant
Securities outstanding at the close of business on the date
immediately preceding the date of such sale and issuance plus (y) the
number of Warrant Securities, which the aggregate amount of cash
received or receivable for such sale, and issuance would purchase at
such current Market Price per Warrant Security and (ii) the
denominator of which shall be the total number of Warrant Securities
outstanding immediately after such sale and issuance. Such adjustment
shall be made successively whenever such an issuance is made.
(b) In case the Company shall pay or make a dividend or other
distribution on any class of stock of the Company in Warrant
Securities or securities convertible into or exchangeable for Warrant
Securities (such convertible or exchangeable stock or securities being
hereinafter called "Convertible Securities"), other than Convertible
Securities which require payments of cash to be made by the holder
thereof in connection with any conversion into or exchange for Warrant
Securities, the Warrant Price in effect at the close of business
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on the day fixed for the determination of shareholders entitled to
receive such dividend or other distribution shall be reduced by
multiplying such Warrant Price by a fraction of which the numerator
shall be the number of Warrant Securities outstanding at the close of
business on the date immediately preceding the date fixed for such
determination and the denominator shall be the sum of such number of
Warrant Securities and the total number of Warrant Securities
constituting such dividend or other distribution or the maximum number
of Warrant Securities issuable upon conversion or exchange of all
Convertible Securities constituting such dividend or other
distribution.
(c) In case at any time the Company shall grant (whether
directly or otherwise) any rights (other than the Warrants and "poison
pill" rights distributed pursuant to a stockholders' rights plan) to
subscribe for or to purchase, or any options for the purchase of,
Warrant Securities or Convertible Securities, whether or not such
rights or options or the right to convert or exchange any such
Convertible Securities are immediately exercisable, and the price per
Warrant Security for which Warrant Securities are issuable upon the
exercise of such rights or options or upon conversion or exchange of
such Convertible Securities (determined by dividing (x) the total
amount, if any, received or receivable by the Company as consideration
for the granting of such rights or options, plus the minimum aggregate
amount of additional consideration payable to the Company upon the
exercise of all such rights or options, or, in the case of such rights
or options which relate to Convertible Securities, the total amount,
if any, received or receivable by the Company as consideration for the
granting of such rights or options, plus the minimum aggregate amount
of additional consideration, if any, payable upon the issuance or sale
of such Convertible Securities and upon the conversion or exchange
thereof, by (y) the total maximum number of Warrant Securities
issuable upon the exercise of such rights or options or upon the
conversion or exchange of all such Convertible Securities issuable
upon the exercise of such rights or options) shall be less than the
Market Price, determined as of the date immediately preceding the date
of granting such rights or options, the Warrant Price in effect at the
close of business on the date immediately preceding the date of
granting such rights or options shall be adjusted by multiplying such
Warrant Price by a fraction, (i) the numerator of which shall be the
sum of (x) the number of Warrant Securities outstanding at the close
of business on the date immediately preceding the date of granting
such rights or options plus (y) the quotient obtained by dividing the
product of the price per Warrant Security, determined as set forth
above, and the maximum number of Warrant Securities issuable upon the
exercise of such rights or options or upon the conversion or exchange
of all such Convertible Securities issuable upon the exercise of such
rights or options by the Market Price and (ii) the denominator of
which shall be the sum of the number of Warrant Securities outstanding
at the close of business on the date immediately preceding the date of
granting such rights or options and the maximum number of Warrant
Securities issuable upon the exercise of such rights or options or
upon the conversion or exchange of all such Convertible Securities
issuable upon the exercise of such rights or options. Except as
provided in this subparagraph (c), no further adjustments of the
Warrant Price shall be made upon the issuance of such Warrant
Securities or of such Convertible Securities upon exercise of such
rights or options or upon the actual issuance of such Warrant
Securities upon conversion or exchange of such Convertible Securities.
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<PAGE> 8
(d) In case the Company shall issue (whether directly or by
assumption in a merger or otherwise) or sell any Convertible
Securities, whether or not the rights to exchange or convert
thereunder are immediately exercisable, and the price per Warrant
Security for which Warrant Securities are issuable upon such
conversion or exchange (determined by dividing (x) the total amount
received or receivable by the Company as consideration for the issue
or sale of such Convertible Securities, plus the minimum aggregate
amount of additional consideration, if any, payable to the Company
upon the conversion or exchange thereof, by (y) the total maximum
number of Warrant Securities issuable upon the conversion or exchange
of all such Convertible Securities) shall be less than the Market
Price, determined as of the date immediately preceding the date of
such issuance or sale of such Convertible Securities, then the Warrant
Price in effect at the close of business on the date immediately
preceding the date of issuance or sale of such Convertible Securities
shall be adjusted by multiplying such Warrant Price by a fraction, (i)
the numerator of which shall be the sum of (x) the number of Warrant
Securities outstanding at the close of business on the date
immediately preceding the date of issuance or sale of such Convertible
Securities plus (y) the quotient obtained by dividing the product of
the price per Warrant Security, determined as set forth above, and the
maximum number of Warrant Securities issuable upon conversion or
exchange of all such Convertible Securities by the Market Price and
(ii) the denominator of which shall be the sum of the number of
Warrant Securities outstanding at the close of business on the date
immediately preceding the date of issuance or sale of such Convertible
Securities and such maximum number of Warrant Securities issuable upon
conversion or exchange, provided that (1) except as provided in
subparagraph (e), no further adjustments of the Warrant Price shall be
made upon the actual issuance of such Warrant Securities upon
conversion or exchange of such Convertible Securities, and (2) if any
such issuance or sale of such Convertible Securities is made upon
exercise of any rights to subscribe for or to purchase or any option
to purchase any such Convertible Securities for which adjustments of
the Warrant Price have been or are to be made pursuant to subparagraph
(c) or the other provisions of this subparagraph (d), no further
adjustments of the Warrant Price shall be made by reason of such
issuance or sale.
(e) If (x) the purchase price provided for in any rights or
options referred to in subparagraph (c), or (y) the additional
consideration, if any, payable upon the conversion or exchange of any
Convertible Securities referred to in subparagraphs (c) and/or (d), or
(z) the rate at which any Convertible Securities referred to in
subparagraphs (c) and/or (d) are convertible into or exchangeable for
Warrant Securities shall change (other than under or by reason of
provisions contained in the instruments governing such rights, options
or Convertible Securities that are designed to protect against
dilution), the Warrant Price in effect at the close of business on the
date of such event shall forthwith be adjusted to the Warrant Price
which would have been in effect at such time had such rights, options
or Convertible Securities still outstanding provided for such changed
purchase price, additional consideration or conversion rate, as the
case may be, at the time initially granted, issued or sold. On the
expiration of any such option or right or the termination of any such
right to convert or exchange such Convertible Securities, the Warrant
Price in effect at the close of business on the date of expiration or
termination shall be readjusted to the Warrant Price which would have
been in effect at such time had such right, option or Convertible
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<PAGE> 9
Securities, to the extent outstanding immediately prior to the date of
such expiration or termination, never been granted, issued or sold.
(f) In case the Company shall, by dividend or otherwise,
declare a dividend or other distribution on its Warrant Securities
payable in evidences of its indebtedness or assets (including
securities, but excluding (i) any rights or options referred to in
subparagraph (c) of this Section, (ii) any dividend or distribution
paid in cash out of consolidated retained earnings or consolidated
earned surplus, determined in accordance with generally accepted
accounting principles, including the making of appropriate deductions
for minority interests, if any, in subsidiaries, and (iii) any
dividend or distribution otherwise paid in Warrant Securities or
Convertible Securities), the Warrant Price in effect at the close of
business on the date fixed for the determination of shareholders
entitled to receive such dividend or other distribution shall be
adjusted so that the same shall equal the price determined by
multiplying the Warrant Price in effect at the close of business on
the date fixed for the determination of shareholders entitled to
receive such dividend or other distribution by a fraction of which the
numerator shall be the current Market Price per Warrant Security on
the date fixed for such determination less the then fair market value
(as determined by the board of directors, whose determination shall be
conclusive and described in a Board Resolution filed with the Warrant
Agent) of the portion of the assets or evidences of indebtedness so
distributed applicable to one share and of which the denominator shall
be such current Market Price per share.
(g) In case the Company shall at any time subdivide its
outstanding Warrant Securities into a greater number of Warrant
Securities, the Warrant Price in effect immediately prior to such
subdivision shall be proportionately reduced, and conversely, in case
the outstanding Warrant Securities shall be combined into a smaller
number of Warrant Securities, the Warrant Price in effect immediately
prior to such combination shall be proportionately increased, such
reduction or increase, as the case may be, to become effective
immediately upon the opening of business on the day following the day
upon which such subdivision or combination becomes effective.
(h) In case of any consolidation of the Company with, or
merger of the Company into, any other corporation or other entity, or
in case of any merger of another corporation or other entity into the
Company (other than a merger which does not result in any
reclassification, conversion, exchange or cancellation of outstanding
Warrant Securities), or in case of any sale or transfer of all or
substantially all of the assets of the Company, or in the case of a
capital reorganization or recapitalization of the capital stock of the
Company in such a way that holders of Warrant Securities shall be able
to receive securities, cash or assets with respect to or in exchange
for such Warrant Securities from the corporation or other entity
formed by such consolidation or resulting from such merger or which
acquires such assets, as the case may be, or from the Company, in the
case of a capital reorganization or recapitalization not involving a
consolidation, merger or sale or transfer of all or substantially all
of the assets of the Company, such corporation or other entity or the
Company, as the case may be, and the Warrant Agent shall execute and
deliver an amendment to this Agreement providing that the holder of
each Warrant then outstanding shall have the right thereafter, during
the period such Warrant shall be exercisable, to
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<PAGE> 10
exercise such Warrant only for the kind and amount of securities, cash
and other property receivable upon such consolidation, merger, sale,
transfer, capital reorganization or recapitalization by a holder of
the number of Warrant Securities for which such Warrant might have
been exercised on the date immediately prior to such consolidation,
merger, sale, transfer, capital reorganization or recapitalization,
assuming such holder of Warrant Securities failed to exercise his
rights of election, if any, as to the kind or amount of securities,
cash and other property receivable upon such consolidation, merger,
sale, transfer, capital reorganization or recapitalization (provided
that if the kind or amount of securities, cash and other property
receivable upon such consolidation, merger, sale, transfer, capital
reorganization or recapitalization is not the same for each Warrant
Security in respect of which such rights of election shall not have
been exercised (the "Non-electing Warrant Securities"), then, for the
purpose of this subparagraph (h), the kind and amount of securities,
cash and other property receivable upon such consolidation, merger,
sale, transfer, capital reorganization or recapitalization by each
Non- electing Warrant Security shall be deemed to be the kind and
amount so receivable per Warrant Security by a plurality of the
Non-electing Warrant Securities).
Such amendment shall provide for adjustments which, for events
subsequent to the effective date of such amendment, shall be as nearly
equivalent as may be practicable to the adjustments provided for in
this Article V. The above provisions of this paragraph shall similarly
apply to successive consolidations, mergers, sales, transfers, capital
reorganizations or recapitalization.
The Company shall not effect any such consolidation, merger,
sale or transfer, unless prior to or simultaneously with the
consummation thereof the successor corporation (if other than the
Company) resulting from such consolidation or merger or the
corporation purchasing or otherwise acquiring such assets or other
appropriate corporation or entity shall assume, by written instrument
executed and delivered to the Warrant Agent, the obligation to deliver
to the holder of each Warrant such shares of stock, securities, cash
or assets as, in accordance with the foregoing provisions, such
holders may be entitled to receive and the other obligations under
this Agreement.
(i) In case an adjustment in the Warrant Price shall be
required by Section 5.1 (a), (b), (c), (d) and/or (f) above, the
required adjustment shall become effective at the opening of business
on (i) the Business Day immediately following the date fixed for the
determination of shareholders of the Company entitled to receive such
dividend or distribution, in the case of any adjustment pursuant to
Section 12(b) or (f), or (ii) the Business Day immediately following
the date of such sale and issuance or the date of such grating of such
rights or options, as the case may be, in the case of an adjustment
pursuant to section 5.1 (a), (c) or (d).
(j) For the purposes of this Article V the number of Warrant
Securities outstanding at any given time shall not include Warrant
Securities owned or held by or for the account of the Company or of
any of its wholly or majority owned subsidiaries.
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<PAGE> 11
(k) Upon each adjustment of the Warrant Price pursuant to this
Section 5.1, each Warrant outstanding at the time of and immediately
prior to such adjustment shall give the holder thereof the right to
purchase, at the Warrant Price resulting from such adjustment, the
number of Warrant Securities obtained by multiplying the Warrant Price
in effect immediately prior to such adjustment by the number of
Warrant Securities issuable upon exercise of such Warrant immediately
prior to such adjustment and dividing the product thereof by the
Warrant Price resulting from such adjustment.
(l) No adjustment in the Warrant Price shall be required
unless such adjustment would require an increase or decrease of at
least one percent in such Warrant Price; provided, however, that any
one or more such adjustments which, by reason of this subparagraph (l)
is not required to be made shall be carried forward on a cumulative
basis and fully taken into account in any subsequent adjustment. All
calculations under this Section 5.1 shall be made to the nearest cent
or to the nearest 1/100 of a Warranty Security, as the case may be.
The provisions of this Section 12(l) shall also apply to readjustments
provided for in subparagraph (e).
(m) The Company shall be obligated to issue any additional
Warrant Securities which become issuable upon exercise of Warrants as
a result of any event described in this Section 5.1 which requires an
adjustment in the Warrant Price and the number of Warrant Securities
issuable upon exercise of the Warrants.
(n) For purposes of this Section 5.1, "Market Price" means the
average of the closing prices per Warrant Security on the American
Stock Exchange or the National Association of Securities Dealers, Inc.
Automated Quotation System ("NASDAQ"), as the case may be (or, if
there is no such closing price, the mean between the bid and asked
prices reported on American Stock Exchange or NASDAQ, or on any other
national securities exchange or over-the-counter market on which such
quotations are regularly available, as the case may be), on each of
the ten trading days immediately preceding the date as of which the
determination of Market Price is to be made. If at any time the
Warrant Securities are not listed on any national securities exchange
or quoted in the over-the-counter market, the Market Price shall be
deemed to be the fair value thereof determined in good faith by an
independent brokerage firm or Standard & Poor's Corp. as of a date
which is within 15 days of the date as of which the determination of
Market Price is to be made.
(o) If the Company shall take any action affecting the Warrant
Securities, other than action described in this Section 5.1, which in
the opinion of the Board of Directors of the Company would materially
adversely affect the exercise rights of the holders of the Warrants,
the Warrant Price for the Warrants may be adjusted, to the extent
permitted by law, in such manner, if any, and at such time, as such
Board of Directors may determine in good faith to be equitable in the
circumstances. Failure of the Board of Directors of the Company to
provide for any such adjustment prior to the effective date of any
such action by the Company affecting the Warrant Securities shall be
evidence that the Board of Directors of the Company has determined
that it is equitable to make no adjustments in the circumstances.
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<PAGE> 12
Section 5.2. Voluntary Adjustment by the Company. The Company
may at its option, at any time during the term of the Warrants, reduce the then
current Warrant Price to any amount deemed appropriate by the Board of
Directors of the Company; provided, that, if the Company elects so to reduce
the then current Warrant Price, such reduction shall remain in effect for at
least 20 Business Days, after which time the Company may, at its option,
reinstate the Warrant Price in effect prior to such reduction.
Section 5.3. Notice of Adjustment. Whenever the Warrant Price
is adjusted as herein provided, the Chief Financial Officer of the Company
shall compute the adjusted Warrant Price in accordance with the foregoing
provisions and shall prepare a certificate setting forth such adjusted Warrant
Price and showing in reasonable detail the facts upon which such adjustment is
based. A copy of such certificate shall be filed promptly with the Warrant
Agent. Promptly after delivery of such certificate, the Company shall prepare a
notice of such adjustment of the Warrant Price setting forth the adjusted
Warrant Price and the date on which such adjustment becomes effective and shall
mail, or cause the Warrant Agent to mail at the Company's expense, such notice
of such adjustment of the Warrant Price to each holder of a Warrant at his last
address as shown on the Warrant Register.
Section 5.4. No Adjustment for Dividends. Except as provided
in Section 5.1 hereof, no adjustment in respect of any dividends or other
payments or distributions made to holders of securities issuable upon exercise
of Warrants shall be made during the term of a Warrant or upon the exercise of
a Warrant.
Section 5.5. Statement on Warrants Certificate. Irrespective
of any adjustments in the number or kind of securities purchasable upon the
exercise of the Warrants or the Warrant Securities, any Warrant Certificate
theretofore or thereafter issued may continue to express the same price and
number and kind of shares as are stated in the Warrant Certificate initially
issuable pursuant to this Agreement.
Section 5.6. Warrant Agent's Adjustment Disclaimer. The
Warrant Agent has no duty to determine when an adjustment under this Article V
should be made, how it should be made or what it should be. The Warrant Agent
shall not be accountable for and makes no representation as to the validity or
value of any securities or assets issued upon exercise of Warrants. The Warrant
Agent shall not be responsible for the Company's failure to comply with this
Article V.
ARTICLE VI.
Concerning the Warrant Agent
Section 6.1. Warrant Agent. The Company hereby appoints
__________, as Warrant Agent of the Company in respect of the Warrants and the
Warrant Certificates upon the terms and subject to the conditions herein set
forth; and ___________ hereby accepts such appointment. The Warrant Agent shall
have the powers and authority granted to and conferred upon it in the Warrant
Certificates and hereby and such further powers and authority to act on behalf
of the Company as the Company may hereafter grant to or confer upon it. All of
the terms and provisions with respect
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<PAGE> 13
to such powers and authority contained in the Warrant Certificates are subject
to and governed by the terms and provisions hereof.
Section 6.2. Conditions of Warrant Agent's Obligations. The
Warrant Agent accepts its obligations herein set forth upon the terms and
conditions hereof, including the following, to all of which the Company agrees
and to all of which the rights hereunder of the holders from time to time of
the Warrant Certificates shall be subject:
(a) The Company agrees promptly to pay the Warrant Agent the
compensation to be agreed upon with the Company for all services
rendered by the Warrant Agent and to reimburse the Warrant Agent for
reasonable out-of-pocket expenses (including counsel fees) incurred
by the Warrant Agent in connection with the services rendered
hereunder by the Warrant Agent. The Company also agrees to indemnify
the Warrant Agent for, and to hold it harmless against, any loss,
liability or expense incurred without negligence or bad faith on the
part of the Warrant Agent, arising out of or in connection with its
acting as Warrant Agent hereunder, as well as the costs and expenses
of defending against any claim of such liability.
(b) In acting under this Warrant Agreement and in connection
with the Warrant Certificates, the Warrant Agent is acting solely as
agent of the Company and does not assume any obligation or
relationship of agency or trust for or with any of the holders of
Warrant Certificates or beneficial owners of Warrants.
(c) The Warrant Agent may consult with counsel satisfactory to
it, and the advice of such 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 accordance with the
advice of such counsel.
(d) The Warrant Agent shall be protected and shall incur no
liability for or in respect of any action taken or thing suffered by
it in reliance upon any Warrant Certificate, notice, direction,
consent, certificate, affidavit, statement or other paper or document
reasonably believed by it to be genuine and to have been presented or
signed by the proper parties.
(e) The Warrant Agent, and its officers, directors and
employees, may become the owner of, or acquire any interest in,
Warrants, with the same rights that it or they would have if it were
not the Warrant Agent hereunder, and, to the extent permitted by
applicable law, it or they may engage or be interested in any
financial or other transaction with the Company and may act on, or as
depositary, trustee or agent for, any committee or body of holders of
Warrant Securities or other obligations of the Company as freely as if
it were not the Warrant Agent hereunder.
(f) The Warrant Agent shall have no liability for interest on
any monies at any time received by it pursuant to any of the
provisions of this Agreement or of the Warrant Certificates.
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<PAGE> 14
(g) The Warrant Agent shall have no liability with respect to
any invalidity of this Agreement or any of the Warrant Certificates.
(h) The Warrant Agent shall not be responsible for any of the
recitals or representations herein or in the Warrant Certificates
(except as to the Warrant Agent's countersignature thereon), all of
which are made solely by the Company.
(i) The Warrant Agent shall be obligated to perform only such
duties as are herein and in the Warrant Certificates specifically set
forth and no implied duties or obligations shall be read into this
Agreement or the Warrant Certificates against the Warrant Agent. The
Warrant Agent shall not be under any obligation to take any action
hereunder which may tend to involve it in any expense or liability,
the payment of which within a reasonable time is not, in its
reasonable opinion, assured to it. The Warrant Agent shall not be
accountable or under any duty or responsibility for the use by the
Company of any of the Warrant Certificates authenticated by the
Warrant Agent and delivered by it to the Company pursuant to this
Agreement or for the application by the Company of the proceeds of the
Warrant Certificates. The Warrant Agent shall have no duty or
responsibility in case of any default by the Company in the
performance of its covenants or agreements contained herein or in the
Warrant Certificates or in the case of the receipt of any written
demand from a holder of a Warrant Certificate with respect to such
default, including, without limiting the generality of the foregoing,
any duty or responsibility to initiate or attempt to initiate any
proceedings at law or otherwise or, except as provided in Section 6.2,
to make any demand upon the Company.
(j) The Warrant Agent is hereby authorized to obtain from time
to time from the present transfer agent for the Warrant Securities
(the "Transfer Agent"), and any successor Transfer Agent, stock
certificates required to honor outstanding Warrants. The Company
hereby authorizes its present and any successor Transfer Agent to
comply with all such requests. The Company will supply such Transfer
Agent with duly executed stock certificates for such purpose and will
provide or otherwise make available any cash which may be payable as
provided in Section 2.3 hereof, and the Warrant Agent shall not be
responsible for any delay or failure by such Transfer Agent in
supplying such stock certificates.
Section 6.3. Resignation and Appointment of Successor. (a) The
Company agrees, for the benefit of the holders of the Warrant Certificates,
that there shall at all times be a Warrant Agent hereunder until all the
Warrant Certificates are no longer exercisable.
(b) The Warrant Agent may at any time resign as such agent by
giving written notice to the Company of such intention on its part,
specifying the date on which its desired resignation shall become
effective; provided that such date shall not be less than three months
after the date on which such notice is given unless the Company
otherwise agrees. The Warrant Agent hereunder may be removed at any
time by the filing with it of an instrument in writing signed by or on
behalf of the Company and specifying such removal and the date when it
shall become effective. Such resignation or removal shall take effect
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<PAGE> 15
upon the appointment by the Company, as hereinafter provided, of a
successor Warrant Agent (which shall be a bank or trust company
authorized under the laws of the jurisdiction of its organization to
exercise corporate trust powers) and the acceptance of such
appointment by such successor Warrant Agent. The obligation of the
Company under Section 6.3(a) shall continue to the extent set forth
therein notwithstanding the resignation or removal of the Warrant
Agent.
(c) In case at any time the Warrant Agent shall resign, or
shall be removed, or shall become incapable of acting, or shall be
adjudged a bankrupt or insolvent, or shall file a petition seeking
relief under the Federal Bankruptcy Code, as now constituted or
hereafter amended, or under any other applicable Federal or State
bankruptcy law or similar law or make an assignment for the benefit of
its creditors or consent to the appointment of a receiver or custodian
of all or any substantial part of its property, or shall admit in
writing its inability to pay or meet its debts as they mature, or if a
receiver or custodian of it or of all or any substantial part of its
property shall be appointed, or if an order of any court shall be
entered for relief against it under the provisions of the Federal
Bankruptcy Code, as now constituted or hereafter amended, or under any
other applicable Federal or State bankruptcy or similar law, or if any
public officer shall have taken charge or control of the Warrant Agent
or of its property or affairs, for the purpose of rehabilitation,
conservation or liquidation, a successor Warrant Agent, qualified as
aforesaid, shall be appointed by the Company, by an instrument in
writing, filed with the successor Warrant Agent. Upon the appointment
as aforesaid of a successor Warrant Agent and acceptance by the
successor Warrant Agent of such appointment, the Warrant Agent shall
cease to be Warrant Agent hereunder.
(d) Any successor Warrant Agent appointed hereunder shall
execute, acknowledge and deliver to its predecessor and to the Company
an instrument accepting such appointment hereunder, and thereupon such
successor Warrant Agent, without any further act, deed or conveyance,
shall become vested with all the authority, rights, powers, trusts,
immunities, duties and obligations of such predecessor with like
effect as if originally named as Warrant Agent hereunder, and such
predecessor, upon payment of its charges and disbursements then
unpaid, shall thereupon become obligated to transfer, deliver and pay
over, and such successor Warrant Agent shall be entitled to receive,
all monies, securities and other property on deposit with or held by
such predecessor, as Warrant Agent hereunder.
(e) Any corporation into which the Warrant Agent hereunder may
be merged or converted or any corporation with which the Warrant Agent
may be consolidated, or any corporation resulting from any merger,
conversion or consolidation to which the Warrant Agent shall be a
party, or any corporation to which the Warrant Agent shall sell or
otherwise transfer all or substantially all the assets and business of
the Warrant Agent, provided that it shall be qualified as aforesaid,
shall be the successor Warrant Agent under this Agreement without the
execution or filing of any paper or any further act on the part of any
of the parties hereto.
- 15 -
<PAGE> 16
ARTICLE VII.
Miscellaneous.
Section 7.1. Amendment. This Agreement may be amended by the
parties hereto, without the consent of the holder of any Warrant Certificate,
for the purpose of curing any ambiguity, or of curing, correcting or
supplementing any defective or inconsistent provision contained herein, or
making any other provisions with respect to matters or questions arising under
this Agreement as the Company and the Warrant Agent may deem necessary or
desirable; provided, that such action shall not materially and adversely affect
the interests of the holders of the Warrant Certificates and, provided,
further, that the Company and the Warrant Agent may amend this Agreement in any
manner prior to the issuance of any Warrants hereunder. With the consent of the
holders of not less than a majority in number of the then outstanding
unexercised Warrants affected, the Company and the Warrant Agent may modify or
amend any other term of this Agreement; provided, however, that no such
modification or amendment may be made without the consent of the holders
affected thereby if such proposed amendment would (i) shorten the period of
time during which the Warrants may be exercised; (ii) otherwise materially and
adversely affect the exercise rights of the holders of the Warrants; or (iii)
reduce the number of outstanding Warrants.
Section 7.2. Notices and Demands to the Company and Warrant
Agent. If the Warrant Agent shall receive any notice or demand addressed to the
Company by the holder of a Warrant Certificate pursuant to the provisions of
the Warrant Certificates, the Warrant Agent shall promptly forward such notice
or demand to the Company.
Section 7.3. Addresses. Any communication from the Company to
the Warrant Agent with respect to this Agreement shall be addressed to
____________, and any communication from the Warrant Agent to the Company with
respect to this Agreement shall be addressed to Nabors Industries, Inc., 515
West Greens Road, Suite 1200, Houston, Texas 77067, Attention: _______________
(or such other address as shall be specified in writing by the Warrant Agent or
by the Company).
Section 7.4. Applicable Law. The validity, interpretation and
performance of this Agreement and each Warrant Certificate issued hereunder and
of the respective terms and provisions thereof shall be governed by and
construed in accordance with, the laws of the State of New York, without giving
effect to the conflict of laws principles thereof.
Section 7.5. Delivery of Prospectus. The Company will furnish
to the Warrant Agent sufficient copies of a prospectus relating to the Warrant
Securities deliverable upon exercise of Warrants (the "Prospectus"), and the
Warrant Agent agrees that upon the exercise of any Warrant, the Warrant Agent
will deliver to the holder of the Warrant Certificate evidencing such Warrant,
prior to or concurrently with, the delivery of the Warrant Securities issued
upon such exercise, a Prospectus.
Section 7.6. Obtaining of Governmental Approvals. The Company
will from time to time take all action which may be necessary to obtain and
keep effective any and all permits,
- 16 -
<PAGE> 17
consents and approvals of governmental agencies and authorities and securities
acts filings under United States Federal and State laws (including, without
limitation, a registration statement in respect of the Warrants and Warrant
Securities under the Securities Act of 1933, as amended), which may be or
become requisite in connection with the issuance, sale, transfer, and delivery
of the Warrant Certificates, the exercise of the Warrants, the issuance, sale,
transfer, and delivery of the Warrant Securities issued upon exercise of the
Warrants or upon the expiration of the period during which the Warrants are
exercisable.
Section 7.7. Persons Having Rights under Warrant Agreement.
Nothing in this Agreement shall give to any person other than the Company, the
Warrant Agent and the holders of the Warrant Certificates any right, remedy or
claim under or by reason of this Agreement.
Section 7.8. Headings. The descriptive headings of the several
Articles and Sections of this Agreement are inserted for convenience only and
shall not control or affect the meaning or construction of any of the
provisions hereof.
Section 7.9. Counterparts. This Agreement may be executed in
any number of counterparts, each of which as so executed shall be deemed to be
an original, but such counterparts shall together constitute but one and the
same instrument.
Section 7.10. Inspection of Agreement. A copy of this
Agreement shall be available at all reasonable times at the principal corporate
trust office of the Warrant Agent for inspection by the holder of any Warrant
Certificate. The Warrant Agent may require such holder to submit his Warrant
Certificates for inspection by it.
IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be duly executed and their respective corporate seals to be
affixed hereunto, and the same to be attested, all as of the day and year first
above written.
NABORS INDUSTRIES, INC.
By
------------------------------------
Attest:
- -----------------------------------
[NAME OF WARRANT AGENT],
as Warrant Agent
By
------------------------------------
Attest:
- -----------------------------------
- 17 -
<PAGE> 18
EXHIBIT A
(FORM OF WARRANT CERTIFICATE)
Exercisable Only if Countersigned
by the Warrant Agent as Provided Herein
NABORS INDUSTRIES, INC.
WARRANTS TO PURCHASE
[Title of Warrant Securities]
Void After 5:00 P.M. New York Time on
[No.] Warrants
This certifies that _______________ or registered assigns is
the registered owner of the above indicated number of Warrants, each Warrant
entitling such owner to purchase, at any time [after 5 p.m. New York time on
________, ________, and] on or before 5 p.m. New York time on _______, ____,
[Title of Warrant Securities] (the "Warrant Securities"), of Nabors Industries,
Inc., (the "Company"), issued and to be issued on the following basis: [on , ,
the exercise price of each Warrant will be [$]____________; during the period
from ____________, ____, through and including ________, ________, the exercise
price of each Warrant will be [$]______. The holder may exercise the Warrants
evidenced hereby by providing certain information set forth on the back hereof
and by paying in full, [in lawful money of the United States of America] [if
applicable, express Warrant exercise price in applicable foreign currency,
currency unit or composite currency] [in cash or by certified check or official
bank check or by bank wire transfer, in each case] [by bank wire transfer], in
immediately available funds, the Warrant Price for each Warrant exercised to
the Warrant Agent (as hereinafter defined) and by surrendering this Warrant
Certificate, with the purchase form on the back hereof duly executed, at the
corporate trust office of [name of Warrant Agent], or its successors as warrant
agent (the "Warrant Agent"), [or ______________] currently at the address
specified on the reverse hereof, and upon compliance with and subject to the
conditions set forth herein and in the Warrant Agreement (as hereinafter
defined).
Any whole number of Warrants evidenced by this Warrant
Certificate may be exercised to purchase Warrant Securities in registered form.
Upon any exercise of fewer than all of the Warrants evidenced by this Warrant
Certificate, there shall be issued to the holder hereof a new Warrant
Certificate evidencing the number of Warrants remaining unexercised.
The Company will not be required to issue fractional shares of
Warrant Securities upon exercise of the Warrants or distribute stock
certificates that evidence fractional shares of Warrant Securities. In lieu of
fractional Warrant Securities, there shall be paid by the Company to the
registered holder of this Warrant Certificate at the time such Warrant
Certificate is exercised an amount in cash payable by company check equal to
the closing sales price of the Warrant Securities on the American Stock
Exchange (or if not so listed, another equivalent means reasonably
- 18 -
<PAGE> 19
determined by the Company) on the business day immediately preceding the
exercise date, multiplied by such fraction.
This Warrant Certificate is issued under and in accordance
with the Warrant Agreement dated as of ___________, ____, (the "Warrant
Agreement") between the Company and the Warrant Agent and is subject to the
terms and provisions contained in the Warrant Agreement, to all of which terms
and provisions the holder of this Warrant Certificate consents by acceptance
hereof. Copies of the Warrant Agreement and the form of Warrant Securities are
on file at the above-mentioned office of the Warrant Agent [and at _________ ].
This Warrant Certificate may be transferred when surrendered
at the corporate trust office of the Warrant Agent [or ____________] by the
registered owner or his assigns, in person or by an attorney duly authorized in
writing, in the manner and subject to the terms provided in the Warrant
Agreement.
After countersignature by the Warrant Agent and prior to the
expiration of this Warrant Certificate, this Warrant Certificate may be
exchanged at the corporate trust office of the Warrant Agent for Warrant
Certificates representing the same aggregate number of Warrants.
This Warrant Certificate shall not entitle the holder hereof
to any of the rights of a holder of Warrant Securities, including, without
limitation, the right to receive dividends, vote, receive notice of any meeting
of stockholders or otherwise have any right as a stockholder of the Company, or
the right to receive the payment of principal of, premium, if any, or interest
on Warrant Securities or to enforce any of the covenants in the Indenture.
This Warrant Certificate shall not be valid for any purpose
until countersigned by the Warrant Agent.
Dated as of , .
--------- -----
NABORS INDUSTRIES, INC.
By
------------------------------------
Attest:
- -----------------------------------
- -----------------------------------
Countersigned
- -----------------------------------
As Warrant Agent
By
---------------------------------
Authorized Signature
- 19 -
<PAGE> 20
[Reverse of Warrant Certificate]
Instructions for Exercise of Warrant
To exercise the Warrants evidenced hereby, the holder must pay
[in cash or by certified check or official bank check or by bank wire transfer]
[by bank wire transfer], in immediately available funds, the Warrant Price in
full for Warrants exercised to [insert name of Warrant Agent] Corporate Trust
Department [insert address of Warrant Agent], Attn: [or ], which [payment]
[wire transfer] must specify the name of the holder and the number of Warrants
exercised by such holder. In addition, the holder must complete the information
required below and present this Warrant Certificate in person or by mail
(registered mail is recommended) to the Warrant Agent at the addresses set
forth below. This Warrant Certificate, completed and duly executed, must be
received by the Warrant Agent within five business days of the [payment] [wire
transfer].
To Be Executed Upon Exercise of Warrant
The undersigned hereby irrevocably elects to exercise Warrants
evidenced by this Warrant Certificate, to purchase ______________ [Title of
Warrant Securities] (the "Warrant Securities") of Nabors Industries, Inc. and
represents that he has tendered payment for such Warrant Securities [in cash or
by certified check or official bank check or by bank wire transfer, in each
case] [by bank wire transfer], in immediately available funds, to the order of
Nabors Industries, Inc., c/o [insert name and address of Warrant Agent], in the
amount of [$]______________ [if applicable, express Warrant exercise price in
applicable foreign currency, currency unit or composite currency] in accordance
with the terms hereof. The undersigned requests that said principal amount of
Warrant Securities be in fully registered form and in the authorized
denominations, registered in such names and delivered, all as specified in
accordance with the instructions set forth below.
If the number of Warrants exercised is less than all of the
Warrants evidenced hereby, the undersigned requests that a new Warrant
Certificate representing the remaining Warrants evidenced hereby be issued and
delivered to the undersigned unless otherwise specified in the instructions
below.
Dated: Name
-----------------------------------
(Please Print)
- -----------------------------------
Address
- -----------------------------------
Social Security Number
- -----------------------------------
Signature
The Warrants evidenced hereby may be exercised at the
following addresses:
- 20 -
<PAGE> 21
By hand at
-----------------------------------
-----------------------------------
-----------------------------------
-----------------------------------
By mail at
-----------------------------------
-----------------------------------
-----------------------------------
-----------------------------------
[Instructions as to form and delivery of Warrant Securities and,
if applicable, Warrant Certificates evidencing unexercised Warrants --complete
as appropriate.]
- 21 -
<PAGE> 22
Assignment
(Form of Assignment to be Executed if Holder Desires
to Transfer Warrants Evidenced Hereby)
For value received __________________ hereby sells, assigns and transfers unto
_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
(Please print name and address, including zip code of assignee, and Social
Security Number
or other identifying number)
the Warrants represented by the within Warrant Certificate and does hereby
irrevocably constitute and appoint Attorney, to transfer said Warrant
Certificate on the books of the Warrant Agent with full power of substitution
in the premises.
Dated:
--------------------------------------
Signature
(Signature must conform in all respect
to name of holder as specified on the
face of this Warrant Certificate and
must bear a signature guarantee of a
commercial bank, trust company, or
member broker of the New York,
American, Midwest or Pacific Stock
Exchange.)
Signature Guaranteed:
- ------------------------------------
- 22 -
<PAGE> 1
EXHIBIT 4.9
NABORS INDUSTRIES, INC.
and
[______________________________],
As Depositary
and
HOLDERS OF DEPOSITARY RECEIPTS
______________
FORM OF DEPOSIT AGREEMENT*
______________
Dated as of [__________]
* Complete or modify the provisions of this Form as appropriate to reflect the
terms of the Depositary Shares and Depositary Receipts.
<PAGE> 2
TABLE OF CONTENTS
<TABLE>
<CAPTION>
Page
----
<S> <C>
Parties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Recitals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
ARTICLE 1.
DEFINITIONS
"Certificate of Incorporation" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
"Certificate of Designation" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
"Common Stock" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
"Company" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
"Corporate Office" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
"Deposit Agreement" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
"Depositary" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
"Depositary Share" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
"Depositary's Agent" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
"New York Office" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
"Receipt" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
"record holder" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
"Registrar" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
"Securities Act" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
"Stock" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
ARTICLE 2.
FORM OF RECEIPTS, DEPOSIT OF STOCK,
EXECUTION AND DELIVERY, TRANSFER, SURRENDER,
REDEMPTION AND CONVERSION OF RECEIPTS
SECTION 2.1 Form and Transfer of Receipts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
SECTION 2.2 Deposit of Stock; Execution and Delivery of Receipts in Respect Thereof. . . . . . . . . . . . . . 3
SECTION 2.3 Redemption and Conversion of Stock. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
SECTION 2.4 Register of Transfer of Receipts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
SECTION 2.5 Combination and Split-ups of Receipts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
SECTION 2.6 Surrender of Receipts and Withdrawal of Stock. . . . . . . . . . . . . . . . . . . . . . . . . . . 7
SECTION 2.7 Limitations on Execution and Delivery, Transfer, Split-up, Combination, Surrender
and Exchange of Receipts and Withdrawal or Deposit of Stock . . . . . . . . . . . . . . . . . . . . 8
SECTION 2.8 Lost Receipts, etc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
SECTION 2.9 Cancellation and Destruction of Surrendered Receipts. . . . . . . . . . . . . . . . . . . . . . . . 9
</TABLE>
<PAGE> 3
<TABLE>
ARTICLE 3.
CERTAIN OBLIGATIONS OF HOLDERS
OF RECEIPTS AND THE COMPANY
<S> <C> <C>
SECTION 3.1 Filing Proofs, Certificates and Other Information. . . . . . . . . . . . . . . . . . . . . . . . . 9
SECTION 3.2 Payment of Taxes or Other Governmental Charges. . . . . . . . . . . . . . . . . . . . . . . . . . . 9
SECTION 3.3 Withholding. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
SECTION 3.4 Representations and Warranties as to Stock. . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
ARTICLE 4.
THE STOCK, NOTICES
SECTION 4.1 Cash Distributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
SECTION 4.2 Distributions Other Than Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
SECTION 4.3 Subscription Rights, Preferences or Privileges. . . . . . . . . . . . . . . . . . . . . . . . . . 11
SECTION 4.4 Notice of Dividends, Fixing of Record Date for Holders of Receipts . . . . . . . . . . . . . . . 11
SECTION 4.5 Voting Rights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
SECTION 4.6 Changes Affecting Stock and Reclassifications, Recapitalizations, etc. . . . . . . . . . . . . . 12
SECTION 4.7 Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
SECTION 4.8 Lists of Receipt Holders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
ARTICLE 5.
THE DEPOSITARY, THE DEPOSITARY'S AGENTS,
THE REGISTRAR AND THE COMPANY
SECTION 5.1 Maintenance of Offices, Agencies, Transfer Books by the Depositary; the Registrar . . . . . . . . 13
SECTION 5.2 Prevention or Delay in Performance by the Depositary, the Depositary's Agents, the
Registrar or the Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
SECTION 5.3 Obligations of the Depositary, the Depositary's Agents, the Registrar and the
Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
SECTION 5.4 Resignation and Removal of the Depositary, Appointment of Successor Depositary . . . . . . . . . 15
SECTION 5.5 Corporate Notices and Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
SECTION 5.6 Deposit of Stock by the Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
SECTION 5.7 Indemnification by the Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
SECTION 5.8 Fees, Charges and Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
ARTICLE 6.
AMENDMENT AND TERMINATION
SECTION 6.1 Amendment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
SECTION 6.2 Termination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
</TABLE>
- ii -
<PAGE> 4
<TABLE>
ARTICLE 7.
MISCELLANEOUS
<S> <C> <C>
SECTION 7.1 Counterparts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
SECTION 7.2 Exclusive Benefits of Parties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
SECTION 7.3 Invalidity of Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
SECTION 7.4 Notices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
SECTION 7.5 Depositary's Agents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
SECTION 7.6 Holders of Receipts Are Parties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
SECTION 7.7 Governing Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
SECTION 7.8 Headings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
</TABLE>
- iii -
<PAGE> 5
DEPOSIT AGREEMENT
DEPOSIT AGREEMENT, dated as of [________], among Nabors
Industries, Inc., a Delaware corporation, [_________________________________],
a [________] banking corporation, as Depositary, and all holders from time to
time of Receipts issued hereunder.
W I T N E S S E T H:
WHEREAS, the Company desires to provide as hereinafter set
forth in this Deposit Agreement, for the deposit of shares of Stock with the
Depositary, as agent for the beneficial owners of the Stock, for the purposes
set forth in this Deposit Agreement and for the issuance hereunder of the
Receipts evidencing Depositary Shares representing an interest in the Stock so
deposited; and
WHEREAS, the Receipts are to be substantially in the form
annexed as Exhibit A to this Deposit Agreement, with appropriate insertions,
modifications and omissions, as hereinafter provided in this Deposit Agreement.
NOW, THEREFORE, in consideration of the premises contained
herein, it is agreed by and among the parties hereto as follows:
ARTICLE 1.
DEFINITIONS
The following definitions shall apply to the respective terms
(in the singular and plural forms of such terms) used in this Deposit Agreement
and the Receipts:
"Certificate of Incorporation" shall mean the Restated
Certificate of Incorporation, as amended and restated from time to time, of the
Company.
"Certificate of Designation" shall mean the Certificate of
Designation establishing and setting forth the rights, preferences, privileges
and limitations of the Stock.
"Common Stock" shall mean the Company's Common Stock, par
value $.10 per share.
"Company" shall mean Nabors Industries, Inc., a Delaware
corporation, and its successors.
"Corporate Office" shall mean the office of the Depositary in
[__________], [______________] at which at any particular time its business in
respect of matters governed by this Deposit Agreement shall be administered,
which at the date of this Deposit Agreement is located at
[______________________].
"Deposit Agreement" shall mean this agreement, as the same may
be amended, modified or supplemented from time to time.
<PAGE> 6
"Depositary" shall mean [_____________________], as Depositary
hereunder, and any successor as Depositary hereunder.
"Depositary Share" shall mean the rights evidenced by the
Receipts executed and delivered hereunder, including the interests in Stock
granted to holders of Receipts pursuant to the terms and conditions of the
Deposit Agreement. Each Depositary Share shall represent an interest in
[fraction] of a share of Stock deposited with the Depositary hereunder and the
same proportionate interest in any and all other property received by the
Depositary in respect of such share of Stock and held under this Deposit
Agreement. Subject to the terms of this Deposit Agreement, each record holder
of a Receipt evidencing a Depositary Share or Shares is entitled,
proportionately, to all the rights, preferences and privileges of the Stock
represented by such Depositary Share or Shares, including the dividend, voting
and liquidation rights contained in the Certificate of Designation, and to the
benefits of all obligations and duties of the Company in respect of the Stock
under the Certificate of Designation and the Certificate of Incorporation.
"Depositary's Agent" shall mean an agent appointed by the
Depositary as provided, and for the purposes specified, in Section 7.05.
"New York Office" shall mean the facility maintained by the
Depositary in the Borough of Manhattan, The City of New York for accepting,
executing and delivering Receipts and other instruments prior to processing
such instruments at the Corporate Office, which facility at the date of this
Deposit Agreement is located at [___________].
"Receipt" shall mean a Depositary Receipt executed and
delivered hereunder, in substantially the form of Exhibit A hereto, evidencing
a Depositary Share or Shares, as the same may be amended from time to time in
accordance with the provisions hereof.
"record holder" or "holder" as applied to a Receipt shall mean
the person in whose name a Receipt is registered on the books maintained by or
on behalf of the Depositary for such purpose.
"Registrar" shall mean any bank or trust company appointed to
register ownership and transfers of Receipts as herein provided.
"Securities Act" shall mean the Securities Act of 1933, as
amended.
"Stock" shall mean shares of the Company's [name of series]
Preferred Stock, $.10 par value per share.
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ARTICLE 2.
FORM OF RECEIPTS, DEPOSIT OF STOCK,
EXECUTION AND DELIVERY, TRANSFER, SURRENDER,
REDEMPTION AND CONVERSION OF RECEIPTS
SECTION 2.1 Form and Transfer of Receipts. Receipts
shall be engraved or printed or lithographed and shall be substantially in the
form set forth in Exhibit A annexed to this Deposit Agreement, with appropriate
insertions, modifications and omissions, as hereinafter provided. Receipts
shall be executed by the Depositary by the manual signature of a duly
authorized signatory of the Depositary; provided, however, that such signature
may be a facsimile if a Registrar (other than the Depositary) shall have
countersigned the Receipts by manual signature of a duly authorized signatory
of the Registrar. No Receipt shall be entitled to any benefits under this
Deposit Agreement or be valid or obligatory for any purpose unless it shall
have been executed as provided in the preceding sentence. The Depositary shall
record on its books each Receipt executed as provided above and delivered as
hereinafter provided. Receipts bearing the facsimile signature of anyone who
was at any time a duly authorized officer of the Depositary shall bind the
Depositary, notwithstanding that such officer has ceased to hold such office
prior to the delivery of such Receipts.
Receipts may be issued in denominations of any number of whole
Depositary Shares. All Receipts shall be dated the date of their execution.
Receipts may be endorsed with or have incorporated in the text
thereof such legends or recitals or changes not inconsistent with the
provisions of this Deposit Agreement as may be required by the Depositary or
required to comply with any applicable law or regulation or with the rules and
regulations of any securities exchange upon which the Stock or the Depositary
Shares may be listed or to conform with any usage with respect thereto, or to
indicate any special limitations or restrictions to which any particular
Receipts are subject by reason of the date of issuance of the Stock or
otherwise.
Title to any Receipt (and to the Depositary Shares evidenced
by such Receipt) that is properly endorsed or accompanied by a properly
executed instrument of transfer shall be transferable by delivery with the same
effect as in the case of a negotiable instrument; provided, however, that the
Depositary may, notwithstanding any notice to the contrary, treat the record
holder thereof at such time as the absolute owner thereof for the purpose of
determining the person entitled to distributions of dividends or other
distributions or to any notice provided for in this Deposit Agreement and for
all other purposes.
SECTION 2.2 Deposit of Stock; Execution and Delivery of
Receipts in Respect Thereof. Subject to the terms and conditions of this
Deposit Agreement, the Company or any holder of Stock may deposit such Stock
under this Deposit Agreement by delivery to the Depositary of a certificate or
certificates for the Stock to be deposited, properly endorsed or accompanied,
if required by the Depositary, by a properly executed instrument of transfer in
form satisfactory to the Depositary, together with (i) all such certifications
as may be required by the Depositary in
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<PAGE> 8
accordance with the provisions of this Deposit Agreement and (ii) a written
order of the Company or such holder, as the case may be, directing the
Depositary to execute and deliver to or upon the written order of the person or
persons stated in such order a Receipt or Receipts for the number of Depositary
Shares representing such deposited Stock.
Upon receipt by the Depositary of a certificate or
certificates for Stock to be deposited hereunder, together with the other
documents specified above, the Depositary shall, as soon as transfer and
registration can be accomplished, present such certificate or certificates to
the registrar and transfer agent of the Stock for transfer and registration in
the name of the Depositary or its nominee of the Stock being deposited.
Deposited Stock shall be held by the Depositary in an account to be established
by the Depositary at the Corporate Office.
Upon receipt by the Depositary of a certificate or
certificates for Stock to be deposited hereunder, together with the other
documents specified above, the Depositary, subject to the terms and conditions
of this Deposit Agreement, shall execute and deliver, to or upon the order of
the person or persons named in the written order delivered to the Depositary
referred to in the first paragraph of this Section 2.02, a Receipt or Receipts
for the number of whole Depositary Shares representing the Stock so deposited
and registered in such name or names as may be requested by such person or
persons. The Depositary shall execute and deliver such Receipt or Receipts at
the New York Office, except that, at the request, risk and expense of any
person requesting such delivery and for the account of such person, such
delivery may be made at such other place as may be designated by such person.
In each case, delivery will be made only upon payment by such person to the
Depositary of all taxes and other governmental charges and any fees payable in
connection with such deposit and the transfer of the deposited Stock.
The Company shall deliver to the Depositary from time to time
such quantities of Receipts as the Depositary may request to enable the
Depositary to perform its obligations under this Deposit Agreement.
SECTION 2.3 Redemption and Conversion of Stock.*
Whenever the Company shall elect to redeem or be required to convert shares of
Stock into shares of Common Stock or other securities in accordance with the
Certificate of Designation, it shall (unless otherwise agreed in writing with
the Depositary) give the Depositary in its capacity as Depositary not less than
5 business days' prior notice of the proposed date of the mailing of a notice
of redemption or conversion of Stock and the simultaneous redemption or
conversion of the Depositary Shares representing the Stock to be redeemed or
converted and of the number of such shares of Stock held by the Depositary to
be redeemed or converted. The Depositary shall, as directed by the Company in
writing, mail, first class postage prepaid, notice of the redemption or
conversion of Stock and the proposed simultaneous redemption or conversion of
the Depositary Shares representing the Stock to be redeemed or converted, not
less than 30 and not more than 60 days prior to the date fixed for redemption
or conversion of such Stock and Depositary Shares, to the record holders of the
Receipts evidencing the Depositary Shares to be so redeemed or converted, at
the addresses of such holders
__________________________________
* This section to be modified to discuss specific redemption or
conversion terms of the Stock, if any.
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<PAGE> 9
as the same appear on the records of the Depositary; provided, that if the
effectiveness of a Merger or Consolidation (as defined in the Certificate of
Designation) makes it impracticable to provide at least 30 days' notice, the
Depositary shall provide such notice as soon as practicable prior to such
effectiveness. Any such notice shall also be published in the same manner as
notices of redemption or conversion of Stock are required to be published
pursuant to Section [ ] of the Certificate of Designation. Notwithstanding the
foregoing, neither failure to mail or publish any such notice to one or more
such holders nor any defect in any notice shall affect the sufficiency of the
proceedings for redemption or conversion. The Company shall provide the
Depositary with such notice, and each such notice shall state: the redemption
or conversion date; the number of Depositary Shares to be redeemed or
converted; if fewer than all the Depositary Shares held by any holder are to be
redeemed, the number of such Depositary Shares held by such holder to be so
redeemed; in the case of a call for redemption, the call price payable upon
redemption and the Current Market Price (as defined in the Certificate of
Designation) to be used to calculate the number of shares of Common Stock or
other securities deliverable upon redemption; whether the Company is exercising
any option to deliver shares of Common Stock or other securities in lieu of any
cash consideration pursuant to Section [ ] of the Certificate of Designation
and the Current Market Price to be used to calculate the number of such shares
or other securities; the place or places where Receipts evidencing Depositary
Shares to be redeemed or converted are to be surrendered for redemption or
conversion; whether the Company is depositing with a bank or trust company on
or before the redemption or conversion date, the shares of Common Stock or
other securities and cash, if any, payable by the Company and the proposed date
of such deposit; the amount of accrued and unpaid dividends payable per share
of Stock to be redeemed or converted to and including such redemption or
conversion date, as the case may be, and that dividends in respect of the Stock
represented by the Depositary Shares to be redeemed or converted will cease to
accrue on such redemption or conversion date (unless the Company shall default
in delivering shares of Common Stock or other securities and cash, if any, at
the time and place specified in such notice). On the date of any such
redemption or conversion, the Depositary shall surrender the certificate or
certificates held by the Depositary evidencing the number of shares of Stock to
be redeemed or converted in the manner specified in the notice of redemption or
conversion of Stock provided by the Company pursuant to Section [ ] of the
Certificate of Designation. The Depositary shall, thereafter, redeem or convert
the number of Depositary Shares representing such redeemed or converted Stock
upon the surrender of Receipts evidencing such Depositary Shares in the manner
provided in the notice sent to record holders of Receipts; provided, that the
Depositary shall have received, upon surrendering such certificate or
certificates as aforesaid, a sufficient number of shares of Common Stock or
other securities to convert or redeem such number of Depositary Shares
(including, in the event that the Company elects pursuant to Section [ ] of the
Certificate of Designation to exercise any option to deliver shares of Common
Stock or other securities in lieu of any cash consideration payable on the
Effective Date (as defined in the Certificate of Designation) of any Merger or
Consolidation, a number of shares of Common Stock equal to such cash
consideration (as determined in the manner set forth in the Certificate of
Designation)), plus any accrued and unpaid dividends payable with respect
thereto to and including the date of any such redemption or conversion and any
other cash consideration payable on the Effective Date of a Merger or
Consolidation (other than any dividends or other cash consideration payable on
the Effective Date of a Merger or Consolidation that the Company has elected to
pay in shares of Common Stock pursuant to Section [ ] of the Certificate of
Designation) as instructed and calculated by the Company. In case fewer than
all the outstanding
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<PAGE> 10
Depositary Shares are to be redeemed, the Depositary Shares to be redeemed
shall be selected by the Depositary by lot, on a pro rata basis or such other
equitable method as shall be approved by the Company and the Depositary.
Notice having been mailed by the Depositary as aforesaid, from
and after the redemption or conversion date (unless the Company shall have
failed to redeem or convert the shares of Stock to be redeemed or converted by
it upon the surrender of the certificate or certificates therefor by the
Depositary as described in the preceding paragraph), the Depositary Shares
called for redemption or subject to conversion shall be deemed no longer to be
outstanding and all rights of the holders of Receipts evidencing such
Depositary Shares (except the right to receive the shares of Common Stock or
other securities and cash, if any, payable upon redemption or conversion upon
surrender of such Receipts) shall, to the extent of such Depositary Shares,
cease and terminate. Upon surrender in accordance with said notice of the
Receipts evidencing such Depositary Shares (properly endorsed or assigned for
transfer, if the Depositary shall so require), such Depositary Shares shall be
converted into or redeemed for shares of Common Stock or other securities at a
rate equal to [ ] of the number of shares of Common Stock or other
securities delivered, and the holders thereof shall be entitled to [ ] of the
cash, if any, payable, in respect of the shares of Stock pursuant to the
Certificate of Designation. The foregoing shall be subject further to the terms
and conditions of the Certificate of Designation.
If fewer than all of the Depositary Shares evidenced by a
Receipt are called for redemption, the Depositary will deliver to the holder of
such Receipt upon its surrender to the Depositary, together with the shares of
Common Stock or other securities and all accrued and unpaid dividends to and
including the date fixed for redemption payable in respect of the Depositary
Shares called for redemption, a new Receipt evidencing the Depositary Shares
evidenced by such prior Receipt and not called for redemption.
To the extent that Depositary Shares are converted into or
redeemed for shares of Common Stock or other securities and all of such shares
of Common Stock or other securities cannot be distributed to the record holders
of Receipts converted or called for redemption without creating fractional
interests in such shares, the Depositary may, with the consent of the Company,
adopt such method as it deems equitable and practicable for the purpose of
effecting such distribution, including the sale (at public or private sale) of
such shares of Common Stock or other securities at such place or places and
upon such terms as it may deem proper, and the net proceeds of any such sale
shall, subject to Section 3.02, be distributed or made available for
distribution to such record holders that would otherwise receive fractional
interests in such shares of Common Stock or other securities.
The Depositary shall not be required (a) to issue, transfer or
exchange any Receipts for a period beginning at the opening of business 15 days
next preceding any selection of Depositary Shares and Stock to be redeemed and
ending at the close of business on the day of the mailing of notice of
redemption of Depositary Shares or (b) to transfer or exchange for another
Receipt any Receipt evidencing Depositary Shares called or being called for
redemption, in whole or in part, or subject to conversion except as provided in
the second preceding paragraph of this Section 2.03.
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<PAGE> 11
SECTION 2.4 Register of Transfer of Receipts. Subject
to the terms and conditions of this Deposit Agreement, the Depositary shall
register on its books from time to time transfers of Receipts upon any
surrender thereof at the Corporate Office, the New York Office or such other
office as the Depositary may designate for such purpose, by the record holder
in person or by a duly authorized attorney, properly endorsed or accompanied by
a properly executed instrument of transfer, together with evidence of the
payment of any transfer taxes as may be required by law. Upon such surrender,
the Depositary shall execute a new Receipt or Receipts and deliver the same to
or upon the order of the person entitled thereto evidencing the same aggregate
number of Depositary Shares evidenced by the Receipt or Receipts surrendered.
SECTION 2.5 Combination and Split-ups of Receipts. Upon
surrender of a Receipt or Receipts at the Corporate Office, the New York Office
or such other office as the Depositary may designate for the purpose of
effecting a split-up or combination of Receipts, subject to the terms and
conditions of this Deposit Agreement, the Depositary shall execute and deliver
a new Receipt or Receipts in the authorized denominations requested evidencing
the same aggregate number of Depositary Shares evidenced by the Receipt or
Receipts surrendered; provided, however, that the Depositary shall not issue
any Receipt evidencing a fractional Depositary Share.
SECTION 2.6 Surrender of Receipts and Withdrawal of
Stock.* Any holder of a Receipt or Receipts may withdraw any or all of the
Stock (but only in whole shares of Stock) represented by the Depositary Shares
evidenced by such Receipts and all money and other property, if any,
represented by such Depositary Shares by surrendering such Receipt or Receipts
at the Corporate Office, the New York Office or at such other office as the
Depositary may designate for such withdrawals. After such surrender, without
unreasonable delay, the Depositary shall deliver to such holder, or to the
person or persons designated by such holder as hereinafter provided, the whole
number of shares of Stock and all such money and other property, if any,
represented by the Depositary Shares evidenced by the Receipt or Receipts so
surrendered for withdrawal, but holders of such whole shares of Preferred Stock
will not thereafter be entitled to deposit such Preferred Stock hereunder or to
receive Depositary Shares thereafter. If the Receipt or Receipts delivered by
the holder to the Depositary in connection with such withdrawal shall evidence
a number of Depositary Shares in excess of the number of whole Depositary
Shares representing the whole number of shares of Stock to be withdrawn, the
Depositary shall at the same time, in addition to such whole number of shares
of Stock and such money and other property, if any, to be withdrawn, deliver to
such holder, or (subject to Section 2.04) upon his order, a new Receipt or
Receipts evidencing such excess number of whole Depositary Shares. Delivery of
the Stock and such money and other property being withdrawn may be made by the
delivery of such certificates, documents of title and other instruments as the
Depositary may deem appropriate, which, if required by the Depositary, shall be
properly endorsed or accompanied by proper instruments of transfer.
If the Stock and the money and other property being withdrawn
are to be delivered to a person or persons other than the record holder of the
Receipt or Receipts being surrendered for withdrawal of Stock, such holder
shall execute and deliver to the Depositary a written order so
__________________________________
* This Section to be modified to reflect any restrictions on withdrawal of
underlying securities.
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<PAGE> 12
directing the Depositary and the Depositary may require that the Receipt or
Receipts surrendered by such holder for withdrawal of such shares of Stock be
properly endorsed in blank or accompanied by a properly executed instrument of
transfer in blank and that the signature on such instrument of transfer be
guaranteed by an eligible guarantor institution (banks, stockbrokers, savings
and loan associations and credit unions with membership in an approved
signature guarantee medallion program) pursuant to Rule 17Ad-15 of the
Securities Exchange Act of 1934, as amended.
The Depositary shall deliver the Stock and the money and other
property, if any, represented by the Depositary Shares evidenced by Receipts
surrendered for withdrawal, without unreasonable delay, at the office at which
such Receipts were surrendered, except that, at the request, risk and expense
of the holder surrendering such Receipt or Receipts and for the account of the
holder thereof, such delivery may be made, without unreasonable delay, at such
other place as may be designated by such holder.
SECTION 2.7 Limitations on Execution and Delivery,
Transfer, Split-up, Combination, Surrender and Exchange of Receipts and
Withdrawal or Deposit of Stock. As a condition precedent to the execution and
delivery, registration of transfer, split-up, combination, surrender or
exchange of any Receipt, the delivery of any distribution thereon or the
withdrawal or deposit of Stock, the Depositary, any of the Depositary's Agents
or the Company may require any or all of the following: (i) payment to it of a
sum sufficient for the payment (or, in the event that the Depositary or the
Company shall have made such payment, the reimbursement to it) of any tax or
other governmental charge with respect thereto (including any such tax or
charge with respect to the Stock being deposited or withdrawn or with respect
to the Common Stock or other securities or property of the Company being issued
upon conversion or redemption); (ii) production of proof satisfactory to it as
to the identity and genuineness of any signature; and (iii) compliance with
such reasonable regulations, if any, as the Depositary or the Company may
establish not inconsistent with the provisions of this Deposit Agreement.
The deposit of Stock may be refused, the delivery of Receipts
against Stock or the registration of transfer, split-up, combination, surrender
or exchange of outstanding Receipts and the withdrawal of deposited Stock may
be suspended (i) during any period when the register of stockholders of the
Company is closed, (ii) if any such action is deemed necessary or advisable by
the Depositary, any of the Depositary's Agents or the Company at any time or
from time to time because of any requirement of law or of any government or
governmental body or commission, or under any provision of this Deposit
Agreement, or (iii) with the approval of the Company, for any other reason.
Without limitation of the foregoing, the Depositary shall not knowingly accept
for deposit under this Deposit Agreement any shares of Stock that are required
to be registered under the Securities Act unless a registration statement under
the Securities Act is in effect as to such shares of Stock.
SECTION 2.8 Lost Receipts, etc. In case any Receipt
shall be mutilated or destroyed or lost or stolen, the Depositary shall execute
and deliver a Receipt of like form and tenor in exchange and substitution for
such mutilated Receipt or in lieu of and in substitution for such destroyed,
lost or stolen Receipt unless the Depositary has notice that such Receipt has
been acquired by a bona fide purchaser; provided, however, that the holder
thereof provides the Depositary with
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<PAGE> 13
(i) evidence satisfactory to the Depositary of such destruction, loss or theft
of such Receipt, of the authenticity thereof and of his ownership thereof, (ii)
reasonable indemnification satisfactory to the Depositary or the payment of any
charges incurred by the Depositary in obtaining insurance in lieu of such
indemnification and (iii) payment of any expense (including fees, charges and
expenses of the Depositary) in connection with such execution and delivery.
SECTION 2.9 Cancellation and Destruction of Surrendered
Receipts. All Receipts surrendered to the Depositary or any Depositary's Agent
shall be cancelled by the Depositary. Except as prohibited by applicable law or
regulation, the Depositary is authorized to destroy such Receipts so cancelled.
ARTICLE 3.
CERTAIN OBLIGATIONS OF HOLDERS
OF RECEIPTS AND THE COMPANY
SECTION 3.1 Filing Proofs, Certificates and Other
Information. Any person presenting Stock for deposit or any holder of a Receipt
may be required from time to time to file such proof of residence or other
information, to execute such certificates and to make such representations and
warranties as the Depositary or the Company may reasonably deem necessary or
proper. The Depositary or the Company may withhold or delay the delivery of any
Receipt, the registration of transfer, redemption, conversion or exchange of
any Receipt, the withdrawal of the Stock represented by the Depositary Shares
evidenced by any Receipt or the distribution of any dividend or other
distribution until such proof or other information is filed, such certificates
are executed or such representations and warranties are made.
SECTION 3.2 Payment of Taxes or Other Governmental
Charges. If any tax or other governmental charge shall become payable by or on
behalf of the Depositary with respect to (i) any Receipt, (ii) the Depositary
Shares evidenced by such Receipt, (iii) the Stock (or fractional interest
therein) or other property represented by such Depositary Shares, or (iv) any
transaction referred to in Section 4.06, such tax (including transfer, issuance
or acquisition taxes, if any) or governmental charge shall be payable by the
holder of such Receipt, who shall pay the amount thereof to the Depositary.
Until such payment is made, registration of transfer of any Receipt or any
split-up or combination thereof or any withdrawal of the Stock or money or
other property, if any, represented by the Depositary Shares evidenced by such
Receipt may be refused, any dividend or other distribution may be withheld and
any part or all of the Stock or other property (including Common Stock or other
securities received in connection with a conversion or redemption of Stock)
represented by the Depositary Shares evidenced by such Receipt may be sold for
the account of the holder thereof (after attempting by reasonable means to
notify such holder prior to such sale). Any dividend or other distribution so
withheld and the proceeds of any such sale may be applied to any payment of
such tax or other governmental charge, the holder of such Receipt remaining
liable for any deficiency.
SECTION 3.3 Withholding. The Depositary shall act as
the tax withholding agent for any payments, distributions and exchanges made
with respect to the Depositary Shares and
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<PAGE> 14
Receipts, and the Stock, Common Stock or other securities or assets represented
thereby (collectively, the "Securities"). The Depositary shall be responsible
with respect to the Securities for the timely (i) collection and deposit of any
required withholding or backup withholding tax, and (ii) filing of any
information returns or other documents with federal (and other applicable)
taxing authorities.
SECTION 3.4 Representations and Warranties as to Stock.
In the case of the initial deposit of the Stock, the Company and, in the case
of subsequent deposits thereof, each person so depositing Stock under this
Deposit Agreement shall be deemed thereby to represent and warrant that such
Stock and each certificate therefor are valid and that the person making such
deposit is duly authorized to do so. Such representations and warranties shall
survive the deposit of the Stock and the issuance of Receipts therefor.
ARTICLE 4.
THE STOCK, NOTICES
SECTION 4.1 Cash Distributions. Whenever the Depositary
shall receive any cash dividend or other cash distribution on the Stock, the
Depositary shall, subject to Section 3.02, distribute to record holders of
Receipts on the record date fixed pursuant to Section 4.04 such amounts of such
sum as are, as nearly as practicable, in proportion to the respective numbers
of Depositary Shares evidenced by the Receipts held by such holders; provided,
however, that in case the Company or the Depositary shall be required by law to
withhold and does withhold from any cash dividend or other cash distribution in
respect of the Stock an amount on account of taxes, the amount made available
for distribution or distributed in respect of Depositary Shares shall be
reduced accordingly. The Depositary shall distribute or make available for
distribution, as the case may be, only such amount, however, as can be
distributed without attributing to any owner of Depositary Shares a fraction of
one cent and any balance not so distributable shall be held by the Depositary
(without liability for interest thereon) and shall be added to and be treated
as part of the next sum received by the Depositary for distribution to record
holders of Receipts then outstanding.
SECTION 4.2 Distributions Other Than Cash. Whenever the
Depositary shall receive any distribution other than cash, rights, preferences
or privileges upon the Stock, the Depositary shall, subject to Section 3.02,
distribute to record holders of Receipts on the record date fixed pursuant to
Section 4.04 such amounts of the securities or property received by it as are,
as nearly as practicable, in proportion to the respective numbers of Depositary
Shares evidenced by the Receipts held by such holders, in any manner that the
Depositary and the Company may deem equitable and practicable for accomplishing
such distribution. If, in the opinion of the Company after consultation with
the Depositary, such distribution cannot be made proportionately among such
record holders, or if for any other reason (including any tax withholding or
securities law requirement), the Depositary deems, after consultation with the
Company, such distribution not to be feasible, the Depositary may, with the
approval of the Company which approval shall not be unreasonably withheld,
adopt such method as it deems equitable and practicable for the purpose of
effecting such distribution, including the sale (at public or private sale) of
the securities or property thus received, or any part thereof, at such place or
places and upon such terms as it may deem proper.
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<PAGE> 15
The net proceeds of any such sale shall, subject to Section 3.02, be
distributed or made available for distribution, as the case may be, by the
Depositary to record holders of Receipts as provided by Section 4.01 in the
case of a distribution received in cash.
SECTION 4.3 Subscription Rights, Preferences or
Privileges. If the Company shall at any time offer or cause to be offered to
the persons in whose names Stock is registered on the books of the Company any
rights, preferences or privileges to subscribe for or to purchase any
securities or any rights, preferences or privileges of any other nature, such
rights, preferences or privileges shall in each such instance be made available
by the Depositary to the record holders of Receipts in such manner as the
Company shall instruct (including by the issue to such record holders of
warrants representing such rights, preferences or privileges); provided,
however, that (a) if at the time of issue or offer of any such rights,
preferences or privileges the Company determines and instructs the Depositary
that it is not lawful or feasible to make such rights, preferences or
privileges available to some or all holders of Receipts (by the issue of
warrants or otherwise) or (b) if and to the extent instructed by holders of
Receipts who do not desire to exercise such rights, preferences or privileges,
the Depositary shall then, in each case, and if applicable laws or the terms of
such rights, preferences or privileges so permit, sell such rights, preferences
or privileges of such holders at public or private sale, at such place or
places and upon such terms as it may deem proper. The net proceeds of any such
sale shall be distributed by the Depositary to the record holders of Receipts
entitled thereto as provided by Section 4.01 in the case of a distribution
received in cash.
If registration under the Securities Act of the securities to
which any rights, preferences or privileges relate is required in order for
holders of Receipts to be offered or sold such securities, the Company shall
promptly file a registration statement pursuant to the Securities Act with
respect to such rights, preferences or privileges and securities and use its
best efforts and take all steps available to it to cause such registration
statement to become effective sufficiently in advance of the expiration of such
rights, preferences or privileges to enable such holders to exercise such
rights, preferences or privileges. In no event shall the Depositary make
available to the holders of Receipts any right, preference or privilege to
subscribe for or to purchase any securities unless and until such registration
statement shall have become effective or unless the offering and sale of such
securities to such holders are exempt from registration under the provisions of
the Securities Act.
If any other action under the law of any jurisdiction or any
governmental or administrative authorization, consent or permit is required in
order for such rights, preferences or privileges to be made available to
holders of Receipts, the Company agrees with the Depositary that the Company
will use its reasonable best efforts to take such action or obtain such
authorization, consent or permit sufficiently in advance of the expiration of
such rights, preferences or privileges to enable such holders to exercise such
rights, preferences or privileges.
SECTION 4.4 Notice of Dividends, Fixing of Record Date
for Holders of Receipts. Whenever (i) any cash dividend or other cash
distribution shall become payable, or any distribution other than cash shall be
made, or any rights, preferences or privileges shall at any time be offered,
with respect to the Stock, or (ii) the Depositary shall receive notice of any
meeting at which holders of Stock are entitled to vote or of which holders of
Stock are entitled to notice or of the mandatory conversion of, or any election
on the part of the Company to call for the redemption of, any shares
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<PAGE> 16
of Stock, the Depositary shall in each such instance fix a record date (which
shall be the same date as the record date fixed by the Company with respect to
the Stock) for the determination of the holders of Receipts (x) who shall be
entitled to receive such dividend, distribution, rights, preferences or
privileges or the net proceeds of the sale thereof, or (y) who shall be
entitled to give instructions for the exercise of voting rights at any such
meeting or to receive notice of such meeting or of such conversion or
redemption.
SECTION 4.5 Voting Rights. Upon receipt of notice of
any meeting at which the holders of Stock are entitled to vote, the Depositary
shall, as soon as practicable thereafter, mail to the record holders of
Receipts a notice, which shall be provided by the Company and which shall
contain (i) such information as is contained in such notice of meeting, (ii) a
statement that the holders of Receipts at the close of business on a specified
record date fixed pursuant to Section 4.04 will be entitled, subject to any
applicable provision of law, the Certificate of Incorporation or the
Certificate of Designation, to instruct the Depositary as to the exercise of
the voting rights pertaining to the Stock represented by their respective
Depositary Shares and (iii) a brief statement as to the manner in which such
instructions may be given. Upon the written request of a holder of a Receipt on
such record date, the Depositary shall endeavor insofar as practicable to vote
or cause to be voted the Stock represented by the Depositary Shares evidenced
by such Receipt in accordance with the instructions set forth in such request.
The Company hereby agrees to take all reasonable action that may be deemed
necessary by the Depositary in order to enable the Depositary to vote such
Stock or cause such Stock to be voted. In the absence of specific instructions
from the holder of a Receipt, the Depositary will abstain from voting to the
extent of the Stock represented by the Depositary Shares evidenced by such
Receipt.
SECTION 4.6 Changes Affecting Stock and
Reclassifications, Recapitalizations, etc. Upon any split-up, consolidation or
any other reclassification of Stock, or upon any recapitalization,
reorganization, merger, amalgamation or consolidation affecting the Company or
to which it is a party (other than a Merger or Consolidation) or sale of all or
substantially all of the Company's assets, the Depositary shall treat any
shares of stock or other securities or property (including cash) that shall be
received by the Depositary in exchange for or upon conversion of or in respect
of the Stock as new deposited property under this Deposit Agreement, and
Receipts then outstanding shall thenceforth represent the proportionate
interests of holders thereof in the new deposited property so received in
exchange for or upon conversion or in respect of such Stock. In any such case
the Depositary may, in its discretion, with the approval of the Company,
execute and deliver additional Receipts, or may call for the surrender of all
outstanding Receipts to be exchanged for new Receipts specifically describing
such new deposited property.
SECTION 4.7 Reports. The Depositary shall make
available for inspection by holders of Receipts at the Corporate Office, the
New York Office and at such other places as it may from time to time deem
advisable during normal business hours any reports and communications received
from the Company that are received by the Depositary as the holder of Stock.
SECTION 4.8 Lists of Receipt Holders. Promptly upon
request from time to time by the Company, the Depositary shall furnish to it a
list, as of a recent date, of the names, addresses and holdings of Depositary
Shares of all persons in whose names Receipts are registered on the
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<PAGE> 17
books of the Depositary. At the expense of the Company, the Company shall have
the right to inspect transfer and registration records of the Depositary, any
Depositary's Agent or the Registrar, take copies thereof and require the
Depositary, any Depositary's Agent or the Registrar to supply copies of such
portions of such records as the Company may request.
ARTICLE 5.
THE DEPOSITARY, THE DEPOSITARY'S AGENTS,
THE REGISTRAR AND THE COMPANY
SECTION 5.1 Maintenance of Offices, Agencies, Transfer
Books by the Depositary; the Registrar. Upon execution of this Deposit
Agreement in accordance with its terms, the Depositary shall maintain (i) at
the New York Office facilities for the execution and delivery, registration,
registration of transfer, surrender and exchange, split-up, combination,
redemption and conversion of Receipts and deposit and withdrawal of Stock and
(ii) at the Corporate Office and at the offices of the Depositary's Agents, if
any, facilities for the delivery, registration, registration of transfer,
surrender and exchange, split-up, combination, conversion and redemption of
Receipts and deposit and withdrawal of Stock, all in accordance with the
provisions of this Deposit Agreement.
The Depositary shall keep books at the Corporate Office for
the registration and transfer of Receipts, which books at all reasonable times
shall be open for inspection by the record holders of Receipts; provided that
any such holder requesting to exercise such right shall certify to the
Depositary that such inspection shall be for a proper purpose reasonably
related to such person's interest as an owner of Depositary Shares. The
Depositary shall consult with the Company upon receipt of any request for
inspection. The Depositary may close such books, at any time or from time to
time, when deemed expedient by it in connection with the performance of its
duties hereunder.
If the Receipts or the Depositary Shares evidenced thereby or
the Stock represented by such Depositary Shares shall be listed on one or more
stock exchanges, the Depositary shall, with the approval of the Company,
appoint a Registrar for registry of such Receipts or Depositary Shares in
accordance with the requirements of such exchange or exchanges. Such Registrar
(which may be the Depositary if so permitted by the requirements of such
exchange or exchanges) may be removed and a substitute registrar appointed by
the Depositary upon the request or with the approval of the Company. In
addition, if the Receipts, such Depositary Shares or such Stock are listed on
one or more stock exchanges, the Depositary will, at the request of the
Company, arrange such facilities for the delivery, registration, registration
of transfer, surrender and exchange, split-up, combination, redemption or
conversion of such Receipts, such Depositary Shares or such Stock as may be
required by law or applicable stock exchange regulations.
SECTION 5.2 Prevention or Delay in Performance by the
Depositary, the Depositary's Agents, the Registrar or the Company. Neither the
Depositary nor any Depositary's Agent nor the Registrar nor the Company shall
incur any liability to any holder of any Receipt, if by reason of any provision
of any present or future law or regulation thereunder of the United States of
America or of any other governmental authority or, in the case of the
Depositary, the Registrar or any Depositary's Agent, by reason of any
provision, present or future, of the Certificate of
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<PAGE> 18
Incorporation or the Certificate of Designation or, in the case of the Company,
the Depositary, the Registrar or any Depositary's Agent, by reason of any act
of God or war or other circumstances beyond the control of the relevant party,
the Depositary, any Depositary's Agent, the Registrar or the Company shall be
prevented or forbidden from doing or performing any act or thing that the terms
of this Deposit Agreement provide shall be done or performed; nor shall the
Depositary, any Depositary's Agent, the Registrar or the Company incur any
liability to any holder of a Receipt (i) by reason of any nonperformance or
delay, caused as aforesaid, in the performance of any act or thing that the
terms of this Deposit Agreement provide shall or may be done or performed, or
(ii) by reason of any exercise of, or failure to exercise, any discretion
provided for in this Deposit Agreement except, in the case of the Depositary,
any Depositary's Agent or the Registrar, if any such exercise or failure to
exercise discretion is caused by its negligence or bad faith.
SECTION 5.3 Obligations of the Depositary, the
Depositary's Agents, the Registrar and the Company. The Company assumes no
obligation and shall be subject to no liability under this Deposit Agreement or
the Receipts to holders or other persons, except to perform in good faith such
obligations as are specifically set forth and undertaken by it to perform in
this Deposit Agreement. Each of the Depositary, the Depositary's Agents and the
Registrar assumes no obligation and shall be subject to no liability under this
Deposit Agreement or the Receipts to holders or other persons, except to
perform such obligations as are specifically set forth and undertaken by it to
perform in this Deposit Agreement without negligence or bad faith.
Neither the Depositary nor any Depositary's Agent nor the
Registrar nor the Company shall be under any obligation to appear in, prosecute
or defend any action, suit or other proceeding with respect to Stock,
Depositary Shares, Receipts or Common Stock that in its opinion may involve it
in expense or liability, unless indemnity satisfactory to it against all
expense and liability be furnished as often as may be required.
Neither the Depositary nor any Depositary's Agent nor the
Registrar nor the Company shall be liable for any action or any failure to act
by it in reliance upon the advice of or information from legal counsel,
accountants, any person presenting Stock for deposit, any holder of a Receipt
or any other person believed by it in good faith to be competent to give such
advice or information. The Depositary, any Depositary's Agent, the Registrar
and the Company may each rely and shall each be protected in acting upon any
written notice, request, direction or other document believed by it to be
genuine and to have been signed or presented by the proper party or parties.
The Depositary, the Registrar and any Depositary's Agent may
own and deal in any class of securities of the Company and its affiliates and
in Receipts or Depositary Shares. The Depositary may also act as transfer agent
or registrar of any of the securities of the Company and its affiliates.
It is intended that neither the Depositary nor any
Depositary's Agent shall be deemed to be an "issuer" of the Stock, the
Depositary Shares, the Receipts or the Common Stock issued upon conversion or
redemption of the Stock under the federal securities laws or applicable state
securities laws, it being expressly understood and agreed that the Depositary
and any Depositary's Agent are acting only in a ministerial capacity as
Depositary for the Stock; provided, however, that the
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<PAGE> 19
Depositary agrees to comply with all information reporting and withholding
requirements applicable to it under law or this Deposit Agreement in its
capacity as Depositary.
Neither the Depositary (or its officers, directors, employees
or agents) nor any Depositary's Agent makes any representation or has any
responsibility as to the validity of the Registration Statement pursuant to
which the Depositary Shares are registered under the Securities Act, the Stock,
the Depositary Shares or any instruments referred to therein or herein, or as
to the correctness of any statement made therein or herein; provided, however,
that the Depositary is responsible for its representations in this Deposit
Agreement.
The Depositary assumes no responsibility for the correctness
of the description that appears in the Receipts, which can be taken as a
statement of the Company summarizing certain provisions of this Deposit
Agreement. Notwithstanding any other provision herein or in the Receipts, the
Depositary makes no warranties or representations as to the validity,
genuineness or sufficiency of any Stock at any time deposited with the
Depositary hereunder or of the Depositary Shares, as to the validity or
sufficiency of this Deposit Agreement, as to the value of the Depositary Shares
or as to any right, title or interest of the record holders of Receipts in and
to the Depositary Shares except that the Depositary hereby represents and
warrants as follows: (i) the Depositary has been duly organized and is validly
existing and in good standing under the laws of the State of [____________],
with full power, authority and legal right under such law to execute, deliver
and carry out the terms of this Deposit Agreement; (ii) this Deposit Agreement
has been duly authorized, executed and delivered by the Depositary; and (iii)
this Deposit Agreement constitutes a valid and binding obligation of the
Depositary, enforceable against the Depositary in accordance with its terms,
except as enforcement thereof may be limited by bankruptcy, insolvency,
reorganization or other similar laws affecting enforcement of 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). The Depositary shall not be accountable for the use or
application by the Company of the Depositary Shares or the Receipts or the
proceeds thereof.
SECTION 5.4 Resignation and Removal of the Depositary,
Appointment of Successor Depositary. The Depositary may at any time resign as
Depositary hereunder by written notice via registered mail of its election to
do so delivered to the Company, such resignation to take effect upon the
appointment of a successor depositary and its acceptance of such appointment as
hereinafter provided.
The Depositary may at any time be removed by the Company by
written notice of such removal delivered to the Depositary, such removal to
take effect upon the appointment of a successor depositary and its acceptance
of such appointment as hereinafter provided.
In case at any time the Depositary acting hereunder shall
resign or be removed, the Company shall, within 45 days after the delivery of
the notice of resignation or removal, as the case may be, appoint a successor
depositary, which shall be a bank or trust company, or an affiliate of a bank
or trust company, having its principal office in the United States of America
and having a combined capital and surplus of at least $50,000,000. If a
successor depositary shall not have been appointed in 45 days, the resigning or
removed Depositary may petition a court of competent
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<PAGE> 20
jurisdiction to appoint a successor depositary. Every successor depositary
shall execute and deliver to its predecessor and to the Company an instrument
in writing accepting its appointment hereunder, and thereupon such successor
depositary, without any further act or deed, shall become fully vested with all
the rights, powers, duties and obligations of its predecessor and for all
purposes shall be the Depositary under this Deposit Agreement, and such
predecessor, upon payment of all sums due it and on the written request of the
Company, shall promptly execute and deliver an instrument transferring to such
successor all rights and powers of such predecessor hereunder, shall duly
assign, transfer and deliver all rights, title and interest in the Stock and
any moneys or property held hereunder to such successor and shall deliver to
such successor a list of the record holders of all outstanding Receipts. Any
successor depositary shall promptly mail notice of its appointment to the
record holders of Receipts.
Any corporation into or with which the Depositary may be
merged, consolidated or converted shall be the successor of such Depositary
without the execution or filing of any document or any further act. Such
successor depositary may execute the Receipts either in the name of the
predecessor depositary or in the name of the successor depositary.
SECTION 5.5 Corporate Notices and Reports. The Company
agrees that it will deliver to the Depositary, and the Depositary will,
promptly after receipt thereof, transmit to the record holders of Receipts, in
each case at the address recorded in the Depositary's books, copies of all
notices and reports (including financial statements) required by law, by the
rules of any national securities exchange upon which the Stock, the Depositary
Shares or the Receipts are listed or by the Certificate of Incorporation and
the Certificate of Designation to be furnished by the Company to holders of
Stock. Such transmission will be at the Company's expense and the Company will
provide the Depositary with such number of copies of such documents as the
Depositary may reasonably request. In addition, the Depositary will transmit to
the record holders of Receipts at the Company's expense such other documents as
may be requested by the Company.
SECTION 5.6 Deposit of Stock by the Company. The
Company agrees with the Depositary that neither the Company nor any company
controlled by the Company will at any time deposit any Stock if such Stock is
required to be registered under the provisions of the Securities Act and no
registration statement is at such time in effect as to such Stock.
SECTION 5.7 Indemnification by the Company. The Company
agrees to indemnify the Depositary, any Depositary's Agent and any Registrar
against, and hold each of them harmless from, any liability, costs and expenses
(including reasonable fees and expenses of counsel) that may arise out of or in
connection with its acting as Depositary, Depositary's Agent or Registrar,
respectively, under this Deposit Agreement and the Receipts, except for any
liability arising out of negligence, bad faith or willful misconduct on the
part of any such person or persons.
SECTION 5.8 Fees, Charges and Expenses. No fees,
charges and expenses of the Depositary or any Depositary's Agent hereunder or
of any Registrar shall be payable by any person other than the Company, except
for any taxes and other governmental charges and except as provided in this
Deposit Agreement. If, at the request of a holder of a Receipt, the Depositary
incurs fees, charges or expenses for which it is not otherwise liable
hereunder, such holder or other person
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<PAGE> 21
will be liable for such fees, charges and expenses. All other fees, charges and
expenses of the Depositary and any Depositary's Agent hereunder and of any
Registrar (including, in each case, reasonable fees and expenses of counsel)
incident to the performance of their respective obligations hereunder will be
paid from time to time upon consultation and agreement between the Depositary
and the Company as to the amount and nature of such fees, charges and expenses.
ARTICLE 6.
AMENDMENT AND TERMINATION
SECTION 6.1 Amendment. The form of the Receipts and any
provision of this Deposit Agreement may at any time and from time to time be
amended by agreement between the Company and the Depositary in any respect that
they may deem necessary or desirable. Any amendment that shall impose or
increase any fees, taxes or charges payable by holders of Receipts (other than
taxes and other governmental charges, fees and other expenses payable by
holders pursuant to the terms hereof or of the Receipts), or that shall
otherwise prejudice any substantial existing right of holders of Receipts,
shall not become effective as to outstanding Receipts until the expiration of
90 days after notice of such amendment shall have been given to the record
holders of outstanding Receipts. Every holder of an outstanding Receipt at the
time any such amendment becomes effective shall be deemed, by continuing to
hold such Receipt, to consent and agree to such amendment and to be bound by
this Deposit Agreement as amended thereby. In no event shall any amendment
impair the right, subject to the provisions of Sections 2.03, 2.06 and 2.07 and
Article 3, of any owner of any Depositary Shares to surrender the Receipt
evidencing such Depositary Shares with instructions to the Depositary to
deliver to the holder the Stock and all money and other property, if any,
represented thereby, except in order to comply with mandatory provisions of
applicable law.
SECTION 6.2 Termination. Whenever so directed by the
Company, the Depositary will terminate this Deposit Agreement by mailing notice
of such termination to the record holders of all Receipts then outstanding at
least 30 days prior to the date fixed in such notice for such termination. The
Depositary may likewise terminate this Deposit Agreement if at any time 45 days
shall have expired after the Depositary shall have delivered to the Company a
written notice of its election to resign and a successor depositary shall not
have been appointed and accepted its appointment as provided in Section 5.04.
If any Receipts shall remain outstanding after the date of
termination of this Deposit Agreement, the Depositary thereafter shall
discontinue the transfer of Receipts, shall suspend the distribution of
dividends to the holders thereof and shall not give any further notices (other
than notice of such termination) or perform any further acts under this Deposit
Agreement, except as provided below and that the Depositary shall continue to
collect dividends and other distributions pertaining to Stock, shall sell
rights, preferences or privileges as provided in this Deposit Agreement and
shall continue to deliver the Stock and any money and other property
represented by Receipts, without liability for interest thereon, upon surrender
thereof by the holders thereof. At any time after the expiration of two years
from the date of termination, the Depositary may sell Stock then held hereunder
at public or private sale, at such places and upon such terms as it deems
proper and may
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<PAGE> 22
thereafter hold in a segregated account the net proceeds of any such sale,
together with any money and other property held by it hereunder, without
liability for interest, for the benefit, pro rata in accordance with their
holdings, of the holders of Receipts that have not heretofore been surrendered.
After making such sale, the Depositary shall be discharged from all obligations
under this Deposit Agreement except to account for such net proceeds and money
and other property. Upon the termination of this Deposit Agreement, the Company
shall be discharged from all obligations under this Deposit Agreement except
for its obligations to the Depositary, any Depositary's Agent and any Registrar
under Sections 5.07 and 5.08. In the event this Deposit Agreement is
terminated, the Company hereby agrees to use its best efforts to list the
underlying Stock on the American Stock Exchange, Inc.
ARTICLE 7.
MISCELLANEOUS
SECTION 7.1 Counterparts. This Deposit Agreement may be
executed by the Company and the Depositary in separate counterparts, each of
which counterparts, when so executed and delivered, shall be deemed an
original, but all such counterparts taken together shall constitute one and the
same instrument. Delivery of an executed counterpart of a signature page to
this Deposit Agreement by telecopier shall be effective as delivery of a
manually executed counterpart of this Deposit Agreement. Copies of this Deposit
Agreement shall be filed with the Depositary and the Depositary's Agents and
shall be open to inspection during business hours at the Corporate Office and
the New York Office and the respective offices of the Depositary's Agents, if
any, by any holder of a Receipt.
SECTION 7.2 Exclusive Benefits of Parties. This Deposit
Agreement is for the exclusive benefit of the parties hereto, and their
respective successors hereunder, and shall not be deemed to give any legal or
equitable right, remedy or claim to any other person whatsoever.
SECTION 7.3 Invalidity of Provisions. In case any one
or more of the provisions contained in this Deposit Agreement or in the
Receipts should be or become invalid, illegal or unenforceable in any respect,
the validity, legality and enforceability of the remaining provisions contained
herein or therein shall in no way be affected, prejudiced or disturbed thereby.
SECTION 7.4 Notices. Any notices to be given to the
Company hereunder or under the Receipts shall be in writing and shall be deemed
to have been duly given if personally delivered or sent by mail, or by telegram
or telex or telecopier confirmed by letter, addressed to the Company at 515
West Greens Road, Suite 1200, Houston, Texas 77067, Attention: President, or at
any other place to which the Company may have transferred its principal
executive office.
Any notices to be given to the Depositary hereunder or under
the Receipts shall be in writing and shall be deemed to have been duly given if
personally delivered or sent by mail, or by telegram or telex or telecopier
confirmed by letter, addressed to the Depositary at the Corporate Office.
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<PAGE> 23
Any notices given to any record holder of a Receipt hereunder
or under the Receipts shall be in writing and shall be deemed to have been duly
given if personally delivered or sent by mail, or by telegram or telex or
telecopier confirmed by letter, addressed to such record holder at the address
of such record holder as it appears on the books of the Depositary or, if such
holder shall have filed with the Depositary a written request that notices
intended for such holder be mailed to some other address, at the address
designated in such request.
Delivery of a notice sent by mail, or by telegram or telex or
telecopier shall be deemed to be effected at the time when a duly addressed
letter containing the same (or a duly addressed letter confirming an earlier
notice in the case of a telegram or telex or telecopier message) is deposited,
postage prepaid, in a post office letter box. The Depositary or the Company
may, however, act upon any telegram or telex or telecopier message received by
it from the other or from any holder of a Receipt, notwithstanding that such
telegram or telex or telecopier message shall not subsequently be confirmed by
letter as aforesaid.
SECTION 7.5 Depositary's Agents. The Depositary may,
with the approval of the Company which approval shall not be unreasonably
withheld, from time to time appoint one or more Depositary's Agents to act in
any respect for the Depositary for the purposes of this Deposit Agreement and
may vary or terminate the appointment of such Depositary's Agents.
SECTION 7.6 Holders of Receipts Are Parties.
Notwithstanding that holders of Receipts have not executed and delivered this
Deposit Agreement or any counterpart thereof, the holders of Receipts from time
to time shall be deemed to be parties to this Deposit Agreement and shall be
bound by all of the terms and conditions, and be entitled to all of the
benefits, hereof and of the Receipts by acceptance of delivery of Receipts.
SECTION 7.7 Law. This Deposit Agreement and the
Receipts and all rights hereunder and thereunder and provisions hereof and
thereof shall be governed by, and construed in accordance with, the law of the
State of New York without giving effect to principles of conflict of laws.
SECTION 7.8 Headings. The headings of articles and
sections in this Deposit Agreement and in the form of the Receipt set forth in
Exhibit A hereto have been inserted for convenience only and are not to be
regarded as a part of this Deposit Agreement or to have any bearing upon the
meaning or interpretation of any provision contained herein or in the Receipts.
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<PAGE> 24
IN WITNESS WHEREOF, Nabors Industries, Inc. and
[_______________________] have duly executed this Deposit Agreement as of the
day and year first above set forth and all holders of Receipts shall become
parties hereto by and upon acceptance by them of delivery of Receipts issued in
accordance with the terms hereof.
NABORS INDUSTRIES, INC.
By:________________________________
Authorized Officer
Attest:
__________________________ [_______________________]
By:________________________________
Authorized Signatory
Attest:
__________________________
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<PAGE> 25
EXHIBIT A
DEPOSITARY RECEIPT
FOR
DEPOSITARY SHARES
EACH REPRESENTING [ ] OF A SHARE OF
[______________________________________________]
PREFERRED STOCK
OF
NABORS INDUSTRIES, INC.
(Incorporated under the Laws of the State of Delaware)
No.
[_________________________________] (the "Depositary") hereby
certifies that ____________ is the registered owner of ___________ Depositary
Shares (the "Depositary Shares"), each Depositary Share representing [ ] of a
share of [____________________________] Preferred Stock, $.10 par value (the
"Stock"), of Nabors Industries, Inc., a corporation duly organized and existing
under the laws of the State of Delaware (the "Company"), and the same
proportionate interest in any and all other property received by the Depositary
in respect of such shares of Stock and held by the Depositary under the Deposit
Agreement (as defined below). Subject to the terms of the Deposit Agreement,
each owner of a Depositary Share is entitled, proportionately, to all the
rights, preferences and privileges of the Stock represented thereby, including
the dividend, voting, liquidation and other rights contained in the Certificate
of Designation establishing the rights, preferences, privileges and limitations
of the Stock (the "Certificate of Designation"), copies of which are on file at
the office of the Depositary at which at any particular time its business in
respect of matters governed by the Deposit Agreement shall be administered,
which at the time of the execution of the Deposit Agreement is located at
[____________________________] (the "Corporate Office").
This Depositary Receipt ("Receipt") shall not be entitled to
any benefits under the Deposit Agreement or be valid or obligatory for any
purpose unless this Receipt shall have been executed manually or, if a
Registrar for the Receipts (other than the Depositary) shall have been
appointed, by facsimile by the Depositary by the signature of a duly authorized
signatory and, if executed by facsimile signature of the Depositary, shall have
been countersigned manually by such Registrar by the signature of a duly
authorized signatory.
THE DEPOSITARY IS NOT RESPONSIBLE FOR THE VALIDITY OF ANY DEPOSITED STOCK. THE
DEPOSITARY ASSUMES NO RESPONSIBILITY FOR THE CORRECTNESS OF THE DESCRIPTION SET
FORTH IN THIS RECEIPT, WHICH CAN BE TAKEN AS A STATEMENT OF THE COMPANY
SUMMARIZING CERTAIN PROVISIONS OF THE DEPOSIT AGREEMENT. UNLESS EXPRESSLY SET
FORTH IN THE DEPOSIT AGREEMENT, THE DEPOSITARY MAKES NO WARRANTIES OR
REPRESENTATIONS AS
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<PAGE> 26
TO THE VALIDITY, GENUINENESS OR SUFFICIENCY OF ANY STOCK AT ANY TIME DEPOSITED
WITH THE DEPOSITARY UNDER THE DEPOSIT AGREEMENT OR OF THE DEPOSITARY SHARES, AS
TO THE VALIDITY OR SUFFICIENCY OF THE DEPOSIT AGREEMENT, AS TO THE VALUE OF THE
DEPOSITARY SHARES OR AS TO ANY RIGHT, TITLE OR INTEREST OF THE RECORD HOLDERS
OF THE DEPOSITARY RECEIPTS IN AND TO THE DEPOSITARY SHARES.
The Company will furnish to any holder of this Receipt without
charge, upon request addressed to its executive office, a full statement of the
designation, relative rights, preferences and limitations of the shares of each
authorized class, and of each class of preferred stock authorized to be issued,
so far as the same may have been fixed, and a statement of the authority of the
Board of Directors of the Company to designate and fix the relative rights,
preferences and limitations of other classes.
This Receipt is continued on the reverse hereof and the
additional provisions therein set forth for all purposes have the same effect
as if set forth at this place.
Dated:
[____________________________],
as Depositary and Registrar
By:___________________________
Authorized Signatory
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<PAGE> 27
[FORM OF REVERSE
OF DEPOSITARY RECEIPT]
(1) The Deposit Agreement. Depositary Receipts (the
"Receipts"), of which this Receipt is one, are made available upon the terms
and conditions set forth in the Deposit Agreement, dated as of [_________] (the
"Deposit Agreement"), among the Company, the Depositary and all holders from
time to time of Receipts. The Deposit Agreement (copies of which are on file at
the Corporate Office, the office maintained by the Depositary in the Borough of
Manhattan, the City of New York which at the time of the execution of the
Deposit Agreement is located at [________________________] (the "New York
Office") and at the office of any agent of the Depositary) sets forth the
rights of holders of Receipts and the rights and duties of the Depositary. The
statements made on the face and the reverse of this Receipt are summaries of
certain provisions of the Deposit Agreement and are subject to the detailed
provisions thereof, to which reference is hereby made. In the event of any
conflict between the provisions of this Receipt and the provisions of the
Deposit Agreement, the provisions of the Deposit Agreement will govern.
(2) Definitions. Unless otherwise expressly herein
provided, all defined terms used herein shall have the meanings ascribed
thereto in the Deposit Agreement.
(3) Redemption and Conversion of Stock.* Whenever the
Company shall elect to redeem or be required to convert shares of Stock into
shares of Common Stock in accordance with the Certificate of Designation, it
shall (unless otherwise agreed in writing with the Depositary) give the
Depositary in its capacity as Depositary not less than 5 business days' prior
notice of the proposed date of the mailing of a notice of redemption or
conversion of Stock and the simultaneous redemption or conversion of the
Depositary Shares representing the Stock to be redeemed or converted and of the
number of such shares of Stock held by the Depositary to be redeemed or
converted. The Depositary shall, as directed by the Company in writing, mail,
first class postage prepaid, notice of the redemption or conversion of Stock
and the proposed simultaneous redemption or conversion of Depositary Shares
representing the Stock to be redeemed or converted, not less than 30 and not
more than 60 days prior to the date fixed for redemption or conversion of such
Stock and Depositary Shares, to the record holders of the Receipts evidencing
the Depositary Shares to be so redeemed or converted, at the addresses of such
holders as the same appear on the records of the Depositary; provided, that if
the effectiveness of a Merger or Consolidation (as defined in the Certificate
of Designation) makes it impracticable to provide at least 30 days' notice, the
Depositary shall provide such notice as soon as practicable prior to such
effectiveness. Any such notice shall also be published in the same manner as
notices of redemption or conversion of the Stock are required to be published
pursuant to Section [ ] of the Certificate of Designation. On the date of any
such redemption or conversion, the Depositary shall surrender the certificate
or certificates held by the Depositary evidencing the number of shares of Stock
to be redeemed or converted in the manner specified in the notice of redemption
or conversion of Stock provided by the Company pursuant to Section [ ] of the
Certificate of Designation. The Depositary shall, thereafter, redeem or convert
the number of Depositary Shares representing such redeemed or converted Stock
upon the surrender of Receipts evidencing such Depositary Shares in the manner
provided in the notice sent to record
__________________________________
* This section to be modified to discuss specific redemption or conversion
terms of the Stock, if any.
- 23 -
<PAGE> 28
holders of Receipts; provided, that the Depositary shall have received, upon
surrendering such certificate or certificates as aforesaid, a sufficient number
of shares of Common Stock or other securities to convert or redeem such number
of Depositary Shares (including, in the event that the Company elects pursuant
to Section [ ] of the Certificate of Designation to exercise any option to
deliver shares of Common Stock or other securities in lieu of any cash
consideration payable on the Effective Date (as defined in the Certificate of
Designation) of any Merger or Consolidation, a number of shares of Common Stock
or other securities equal to such cash consideration (as determined in the
manner set forth in the Certificate of Designation)), plus any accrued and
unpaid dividends payable with respect thereto to and including the date of any
such redemption or conversion and any other cash consideration payable on the
Effective Date of a Merger or Consolidation (other than any dividends or other
cash consideration payable on the Effective Date of a Merger or Consolidation
that the Company has elected to pay in shares of Common Stock or other
securities pursuant to Section [ ] of the Certificate of Designation). In case
fewer than all the outstanding Depositary Shares are to be redeemed, the
Depositary Shares to be redeemed shall be selected by the Depositary by lot or
on a pro rata basis. Notice having been mailed and published as aforesaid, from
and after the redemption or conversion date (unless the Company shall have
failed to redeem or convert the shares of Stock to be redeemed or converted by
it upon the surrender of the certificate or certificates therefor by the
Depositary as described above), the Depositary Shares called for redemption or
subject to conversion shall be deemed no longer to be outstanding and all
rights of the holders of Receipts evidencing such Depositary Shares (except the
right to receive the shares of Common Stock or other securities and cash, if
any, payable upon redemption or conversion upon surrender of such Receipts)
shall, to the extent of such Depositary Shares, cease and terminate. Upon
surrender in accordance with said notice of the Receipts evidencing such
Depositary Shares (properly endorsed or assigned for transfer, if the
Depositary shall so require), such Depositary Shares shall be converted into or
redeemed for shares of Common Stock or other securities at a rate equal to [ ]
of the number of shares of Common Stock or other securities delivered, and the
holders thereof shall be entitled to [________] of the cash, if any, payable,
in respect of the shares of Stock pursuant to the Certificate of Designation.
The foregoing is subject further to the terms and conditions of the Certificate
of Designation. If fewer than all of the Depositary Shares evidenced by this
Receipt are called for redemption, the Depositary will deliver to the holder of
this Receipt upon its surrender to the Depositary, together with shares of
Common Stock or other securities and all accrued and unpaid dividends to and
including the date fixed for redemption payable in respect of the Depositary
Shares called for redemption, a new Receipt evidencing the Depositary Shares
evidenced by such prior Receipt and not called for redemption.
(4) Surrender of Receipts and Withdrawal of Stock. Upon
surrender of this Receipt to the Depositary at the Corporate Office, the New
York Office or at such other offices as the Depositary may designate, and
subject to the provisions of the Deposit Agreement, the holder hereof is
entitled to withdraw, and to obtain delivery, without unreasonable delay, to or
upon the order of such holder, any or all of the Stock (but only in whole
shares of Stock) and all money and other property, if any, at the time
represented by the Depositary Shares evidenced by this Receipt; provided,
however, that, in the event this Receipt shall evidence a number of Depositary
Shares in excess of the number of Depositary Shares representing the whole
number of shares of Stock to be withdrawn, the Depositary shall, in addition to
such whole number of shares of Stock and such
- 24 -
<PAGE> 29
money and other property, if any, to be withdrawn, deliver, to or upon the
order of such holder, a new Receipt or Receipts evidencing such excess number
of whole Depositary Shares.
(5) Transfers, Split-ups, Combinations. Subject to
Paragraphs 6, 7 and 8 below, this Receipt is transferable on the books of the
Depositary upon surrender of this Receipt to the Depositary at the Corporate
Office or the New York Office, or at such other offices as the Depositary may
designate, properly endorsed or accompanied by a properly executed instrument
of transfer, and upon such transfer the Depositary shall sign and deliver a
Receipt or Receipts to or upon the order of the person entitled thereto, all as
provided in and subject to the Deposit Agreement. This Receipt may be split
into other Receipts or combined with other Receipts into one Receipt evidencing
the same aggregate number of Depositary Shares evidenced by the Receipt or
Receipts surrendered; provided, however, that the Depositary shall not issue
any Receipt evidencing a fractional Depositary Share.
(6) Conditions to Signing and Delivery, Transfer, etc.,
of Receipts. Prior to the execution and delivery, registration of transfer,
split-up, combination, surrender or exchange of this Receipt, the delivery of
any distribution hereon or the withdrawal or deposit of Stock, the Depositary,
any of the Depositary's Agents or the Company may require any or all of the
following: (i) payment to it of a sum sufficient for the payment (or, in the
event that the Depositary or the Company shall have made such payment, the
reimbursement to it) of any tax or other governmental charge with respect
thereto (including any such tax or charge with respect to Stock being deposited
or withdrawn or with respect to Common Stock or other securities or property of
the Company being issued upon conversion or redemption); (ii) production of
proof satisfactory to it as to the identity and genuineness of any signature;
and (iii) compliance with such reasonable regulations, if any, as the
Depositary or the Company may establish not inconsistent with the Deposit
Agreement. Any person presenting Stock for deposit, or any holder of this
Receipt, may be required to file such proof of information, to execute such
certificates and to make such representations and warranties as the Depositary
or the Company may reasonably deem necessary or proper. The Depositary or the
Company may withhold or delay the delivery of this Receipt, the registration of
transfer, redemption, conversion or exchange of this Receipt, the withdrawal of
the Stock represented by the Depositary Shares evidenced by this Receipt or the
distribution of any dividend or other distribution until such proof or other
information is filed, such certificates are executed or such representations
and warranties are made.
(7) Suspension of Delivery, Transfer, etc. The deposit of
Stock may be refused and the delivery of this Receipt against Stock or the
registration of transfer, split-up, combination, surrender or exchange of this
Receipt and the withdrawal of deposited Stock may be suspended (i) during any
period when the register of stockholders of the Company is closed, (ii) if any
such action is deemed necessary or advisable by the Depositary, any of the
Depositary's Agents or the Company at any time or from time to time because of
any requirement of law or of any government or governmental body or commission,
or under any provision of the Deposit Agreement, or (iii) with the approval of
the Company, for any other reason. The Depositary shall not be required (a) to
issue, transfer or exchange any Receipts for a period beginning at the opening
of business 15 days next preceding any selection of Depositary Shares and Stock
to be redeemed and ending at the close of business on the day of the mailing of
notice of redemption of Depositary Shares or (b) to transfer or
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<PAGE> 30
exchange for another Receipt any Receipt evidencing Depositary Shares called or
being called for redemption, in whole or in part, or subject to conversion
except as provided in the last sentence of Paragraph 3.
(8) Payment of Taxes or Other Governmental Charges. If
any tax or other governmental charge shall become payable by or on behalf of
the Depositary with respect to (i) this Receipt, (ii) the Depositary Shares
evidenced by this Receipt, (iii) the Stock (or fractional interest therein) or
other property represented by such Depositary Shares, or (iv) any transaction
referred to in Section 4.06 of the Deposit Agreement, such tax (including
transfer, issuance or acquisition taxes, if any) or governmental charge shall
be payable by the holder of this Receipt, who shall pay the amount thereof to
the Depositary. Until such payment is made, registration of transfer of this
Receipt or any split-up or combination hereof or any withdrawal of the Stock or
money or other property, if any, represented by the Depositary Shares evidenced
by this Receipt may be refused, any dividend or other distribution may be
withheld and any part or all of the Stock or other property (including Common
Stock or other securities received in connection with a conversion or
redemption of Stock) represented by the Depositary Shares evidenced by this
Receipt may be sold for the account of the holder hereof (after attempting by
reasonable means to notify such holder prior to such sale). Any dividend or
other distribution so withheld and the proceeds of any such sale may be applied
to any payment of such tax or other governmental charge, the holder of this
Receipt remaining liable for any deficiency.
(9) Amendment. The form of the Receipts and any provision
of the Deposit Agreement may at any time and from time to time be amended by
agreement between the Company and the Depositary in any respect that they may
deem necessary or desirable. Any amendment that shall impose or increase any
fees, taxes or charges payable by holders of Receipts (other than taxes and
other governmental charges, fees and other expenses payable by holders as
provided herein or in the Deposit Agreement), or that shall otherwise prejudice
any substantial existing right of holders of Receipts, shall not become
effective as to outstanding Receipts until the expiration of 90 days after
notice of such amendment shall have been given to the record holders of
outstanding Receipts. The holder of this Receipt at the time any such amendment
becomes effective shall be deemed, by continuing to hold this Receipt, to
consent and agree to such amendment and to be bound by the Deposit Agreement as
amended thereby. In no event shall any amendment impair the right, subject to
the provisions of Paragraphs 3, 4, 6, 7 and 8 hereof and of Sections 2.03, 2.06
and 2.07 and Article 3 of the Deposit Agreement, of the owner of the Depositary
Shares evidenced by this Receipt to surrender this Receipt with instructions to
the Depositary to deliver to the holder the Stock and all money and other
property, if any, represented thereby, except in order to comply with mandatory
provisions of applicable law.
(10) Fees, Charges and Expenses. The Company will pay all
fees, charges and expenses of the Depositary, except for taxes (including
transfer taxes, if any) and other governmental charges and such charges as are
expressly provided in the Deposit Agreement to be at the expense of persons
depositing Stock, holders of Receipts or other persons.
(11) Title to Receipts. It is a condition of this Receipt,
and every successive holder hereof by accepting or holding the same consents
and agrees, that title to this Receipt (and to the
- 26 -
<PAGE> 31
Depositary Shares evidenced hereby), when properly endorsed or accompanied by a
properly executed instrument of transfer, is transferable by delivery with the
same effect as in the case of a negotiable instrument; provided, however, that
the Depositary may, notwithstanding any notice to the contrary, treat the
record holder hereof at such time as the absolute owner hereof for the purpose
of determining the person entitled to distribution of dividends or other
distributions or to any notice provided for in the Deposit Agreement and for
all other purposes.
(12) Dividends and Distributions. Whenever the Depositary
shall receive any cash dividend or other cash distribution on the Stock, the
Depositary shall, subject to the provisions of the Deposit Agreement,
distribute to record holders of Receipts such amounts of such sums as are, as
nearly as practicable, in proportion to the respective numbers of Depositary
Shares evidenced by the Receipts held by such holders; provided, however, that
in case the Company or the Depositary shall be required by law to withhold and
does withhold from any cash dividend or other cash distribution in respect of
the Stock an amount on account of taxes, the amount made available for
distribution or distributed in respect of Depositary Shares shall be reduced
accordingly. The Depositary shall distribute or make available for
distribution, as the case may be, only such amount, however, as can be
distributed without attributing to any owner of Depositary Shares a fraction of
one cent and any balance not so distributable shall be held by the Depositary
(without liability for interest thereon) and shall be added to and be treated
as part of the next sum received by the Depositary for distribution to record
holders of Receipts then outstanding.
(13) Subscription Rights, Preferences or Privileges. If
the Company shall at any time offer or cause to be offered to the persons in
whose name Stock is registered on the books of the Company any rights,
preferences or privileges to subscribe for or to purchase any securities or any
rights, preferences or privileges of any other nature, such rights, preferences
or privileges shall in each such instance, subject to the provisions of the
Deposit Agreement, be made available by the Depositary to the record holders of
Receipts in such manner as the Company shall instruct.
(14) Notice of Dividends, Fixing of Record Date. Whenever
(i) any cash dividend or other cash distribution shall become payable, or any
distribution other than cash shall be made, or any rights, preferences or
privileges shall at any time be offered, with respect to the Stock, or (ii) the
Depositary shall receive notice of any meeting at which holders of Stock are
entitled to vote or of which holders of Stock are entitled to notice or of the
mandatory conversion of, or any election on the part of the Company to call for
redemption of, any shares of Stock, the Depositary shall in each such instance
fix a record date (which shall be the same date as the record date fixed by the
Company with respect to the Stock) for the determination of the holders of
Receipts (x) who shall be entitled to receive such dividend, distribution,
rights, preferences or privileges or the net proceeds of the sale thereof, or
(y) who shall be entitled to give instructions for the exercise of voting
rights at any such meeting or of such meeting or to receive notice of such
conversion or redemption.
(15) Voting Rights. Upon receipt of notice of any meeting
at which the holders of Stock are entitled to vote, the Depositary shall, as
soon as practicable thereafter, mail to the record holders of Receipts a
notice, which shall contain (i) such information as is contained in such notice
of meeting, (ii) a statement that the holders of Receipts at the close of
business on a specified record date determined as provided in Paragraph 14 will
be entitled, subject to any applicable provision of
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<PAGE> 32
law, the Certificate of Incorporation or the Certificate of Designation, to
instruct the Depositary as to the exercise of the voting rights pertaining to
the Stock represented by their respective Depositary Shares, and (iii) a brief
statement as to the manner in which such instructions may be given. Upon the
written request of a holder of this Receipt on such record date the Depositary
shall endeavor insofar as practicable to vote or cause to be voted the Stock
represented by the Depositary Shares evidenced by this Receipt in accordance
with the instructions set forth in such request. The Company hereby agrees to
take all reasonable action that may be deemed necessary by the Depositary in
order to enable the Depositary to vote such Stock or cause such Stock to be
voted. In the absence of specific instructions from the holder of this Receipt,
the Depositary will abstain from voting to the extent of the Stock represented
by the Depositary Shares evidenced by this Receipt.
(16) Reports, Inspection of Transfer Books. The Depositary
shall make available for inspection by holders of Receipts at the Corporate
Office, the New York Office and at such other places as it may from time to
time deem advisable during normal business hours any reports and communications
received from the Company that are received by the Depositary as the holder of
Stock. The Depositary shall keep books at the Corporate Office for the
registration and transfer of Receipts, which books at all reasonable times will
be open for inspection by the record holders of Receipts; provided that any
such holder requesting to exercise such right shall certify to the Depositary
that such inspection shall be for a proper purpose reasonably related to such
person's interest as an owner of Depositary Shares.
(17) Liability of the Depositary, the Depositary's Agents,
the Registrar and the Company. Neither the Depositary nor any Depositary's
Agent nor the Registrar nor the Company shall incur any liability to any holder
of this Receipt, if by reason of any provision of any present or future law or
regulation thereunder of any governmental authority or, in the case of the
Depositary, the Registrar or any Depositary's Agent, by reason of any provision
present or future, of the Certificate of Incorporation or the Certificate of
Designation or, in the case of the Company, the Depositary, the Registrar or
any Depositary's Agent, by reason of any act of God or war or other
circumstances beyond the control of the relevant party, the Depositary, any
Depositary's Agent, the Registrar or the Company shall be prevented or
forbidden from doing or performing any act or thing that the terms of the
Deposit Agreement provide shall be done or performed; nor shall the Depositary,
any Depositary's Agent, the Registrar or the Company incur any liability to any
holder of this Receipt (i) by reason of any nonperformance or delay, caused as
aforesaid, in the performance of any act or thing that the terms of the Deposit
Agreement provide shall or may be done or performed, or (ii) by reason of any
exercise of, or failure to exercise, any discretion provided for in the Deposit
Agreement except, in the case of the Depositary, any Depositary's Agent or the
Registrar, if such exercise or failure to exercise discretion is caused by its
negligence or bad faith.
(18) Obligations of the Depositary, the Depositary's
Agents, the Registrar and the Company. The Company assumes no obligation and
shall be subject to no liability under the Deposit Agreement or this Receipt to
the holder hereof or other persons, except to perform in good faith such
obligations as are specifically set forth and undertaken by it to perform in
the Deposit Agreement. Each of the Depositary, the Depositary's Agents and the
Registrar assumes no obligation and shall be subject to no liability under the
Deposit Agreement or this Receipt to the holder hereof or other
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<PAGE> 33
persons, except to perform such obligations as are specifically set forth and
undertaken by it to perform in the Deposit Agreement without negligence or bad
faith.
Neither the Depositary nor any Depositary's Agent nor the
Registrar nor the Company shall be under any obligation to appear in, prosecute
or defend any action, suit or other proceeding with respect to Stock,
Depositary Shares or Receipts or Common Stock that in its opinion may involve
it in expense or liability, unless indemnity satisfactory to it against all
expense and liability be furnished as often as may be required.
Neither the Depositary nor any Depositary's Agent nor the
Registrar nor the Company will be liable for any action or failure to act by it
in reliance upon the advice of or information from legal counsel, accountants,
any person presenting Stock for deposit, any holder of this Receipt or any
other person believed by it in good faith to be competent to give such advice
or information.
(19) Termination of Deposit Agreement. Whenever so
directed by the Company, the Depositary will terminate the Deposit Agreement by
mailing notice of such termination to the record holders of all Receipts then
outstanding at least 30 days prior to the date fixed in such notice for such
termination. The Depositary may likewise terminate the Deposit Agreement if at
any time 45 days shall have expired after the Depositary shall have delivered
to the Company a written notice of its election to resign and a successor
depositary shall not have been appointed and accepted its appointment as
provided in Section 5.04 of the Deposit Agreement. Upon the termination of the
Deposit Agreement, the Company shall be discharged from all obligations
thereunder except for its obligations to the Depositary, any Depositary's Agent
and any Registrar under Sections 5.07 and 5.08 of the Deposit Agreement.
If any Receipts remain outstanding after the date of
termination of the Deposit Agreement, the Depositary thereafter shall
discontinue all functions and be discharged from all obligations as provided in
the Deposit Agreement, except as specifically provided therein.
(20) Governing Law. The Deposit Agreement and this Receipt
and all rights thereunder and hereunder and provisions thereof and hereof shall
be governed by, and construed in accordance with, the law of the State of New
York without giving effect to principles of conflict of laws.
- 29 -
<PAGE> 34
FORM OF ASSIGNMENT
FOR VALUE RECEIVED, the undersigned hereby sells, assigns and
transfers unto ___________________ the within Receipt and all rights and
interests represented by the Depositary Shares evidenced thereby, and hereby
irrevocably constitutes and appoints his attorney, to transfer the same on the
books of the within-named Depositary, with full power of substitution in the
premises.
Dated:
Signature:______________________________
NOTE: The signature to this
assignment must correspond with
the name as written upon the
face of the Receipt in every
particular, without alteration
or enlargement, or any change
whatever.
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<PAGE> 1
EXHIBIT 12.1
NABORS INDUSTRIES, INC. AND SUBSIDIARIES
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
(IN THOUSANDS, EXCEPT RATIO AMOUNTS)
<TABLE>
<CAPTION>
THREE MONTHS
ENDED YEAR ENDED SEPTEMBER 30,
DECEMBER 31, -----------------------------------------------
1996 1996 1995 1994 1993 1992
------------ ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Pretax income...................... $35,563 $81,600 $58,628 $ 6,239 $42,117 $35,915
Add fixed charges as adjusted (from
below)........................... 4,318 12,258 7,933 8,555 9,494 6,236
------- ------- ------- ------- ------- -------
Earnings................. $39,881 $93,858 $66,561 $14,794 $51,611 $42,151
======= ======= ======= ======= ======= =======
Fixed charges:
Interest expense:
Interest on indebtedness...... $ 4,000 $11,356 $ 7,297 $ 7,923 $ 8,628 $ 5,451
Capitalized................... 53 985 747 391 154 244
Amortization of debt costs....... 176 528 314 314 296 291
Interest portion of rental
expense....................... 142 374 322 318 570 494
------- ------- ------- ------- ------- -------
Fixed charges before
adjustments................... 4,371 13,243 8,680 8,946 9,648 6,480
Less capitalized interest........ (53) (985) (747) (391) (154) (244)
------- ------- ------- ------- ------- -------
Fixed charges as adjusted........ $ 4,318 $12,258 $ 7,933 $ 8,555 $ 9,494 $ 6,236
======= ======= ======= ======= ======= =======
Ratio (earnings divided by fixed
charges before adjustments)...... 9.12 7.09 7.67 1.65 5.35 6.50
======= ======= ======= ======= ======= =======
</TABLE>
<PAGE> 1
EXHIBIT 23.2
CONSENT OF INDEPENDENT ACCOUNTANTS
We consent to the incorporation by reference in this registration statement
of Nabors Industries, Inc. on Form S-3 of our report dated November 25, 1996,
except as to certain information presented in Notes 9 and 15, for which date is
December 20, 1996, on our audits of the consolidated financial statements of
Nabors Industries, Inc. and Subsidiaries in the Company's Annual Report on Form
10-K. We also consent to the reference to our firm under the caption "Experts".
/s/ COOPERS & LYBRAND L.L.P.
Houston, Texas
April 11, 1997
