<PAGE> 1
================================================================================
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): January 13, 1998
PIONEER NATURAL RESOURCES COMPANY
PIONEER NATURAL RESOURCES USA, INC.
(Exact name of registrants as specified in their charters)
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<S> <C> <C>
DELAWARE 001-13245 75-2702753
DELAWARE 1-10193 75-2516853
(State or other jurisdiction of (Commission File (IRS Employer
incorporation) Number) Identification No.)
1400 WILLIAMS SQUARE WEST
5205 NORTH O'CONNOR BLVD.
IRVING, TEXAS 75039 75039
(Address of principal executive (Zip code)
offices)
</TABLE>
Registrant's telephone number, including area code: (972) 444-9001
NOT APPLICABLE
(former name and former address, if changed since last report)
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<PAGE> 2
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(a) None.
(b) None.
(c) EXHIBITS
99.1 Indenture, dated January 13, 1998, between Pioneer Natural
Resources Company and The Bank of New York, as Trustee
99.2 First Supplemental Indenture, dated as of January 13,
1998, among Pioneer Natural Resources Company, Pioneer
Natural Resources USA, Inc., as the subsidiary guarantor,
and The Bank of New York, as Trustee
99.3 Form of 6.50% Senior Notes Due 2008 of Pioneer Natural
Resources Company
99.4 Form of 7.20% Senior Notes Due 2028 of Pioneer Natural
Resources Company
99.5 Guarantee (2008 Notes), dated as of January 13, 1998,
entered into by Pioneer Natural Resources USA, Inc.
99.6 Guarantee (2028 Notes), dated as of January 13, 1998,
entered into by Pioneer Natural Resources USA, Inc.
<PAGE> 3
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrants have duly caused this report to be signed on their behalf by the
undersigned thereunto duly authorized.
PIONEER NATURAL RESOURCES COMPANY
(Registrant)
By: /s/ MARK L. WITHROW
--------------------------------
Name: Mark L. Withrow
Title: Executive Vice President
and General Counsel
PIONEER NATURAL RESOURCES USA, INC.
(Registrant)
By: /s/ MARK L. WITHROW
--------------------------------
Name: Mark L. Withrow
Title: Executive Vice President
and General Counsel
Date: January 13, 1998
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INDEX TO EXHIBITS
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<CAPTION>
EXHIBIT
NUMBER PAGE
------- ----
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99.1 Indenture, dated January 13, 1998, between Pioneer Natural
Resources Company and The Bank of New York, as Trustee
99.2 First Supplemental Indenture, dated as of January 13,
1998, among Pioneer Natural Resources Company, Pioneer Natural
Resources USA, Inc., as the subsidiary guarantor, and
The Bank of New York, as Trustee
99.3 Form of 6.50% Senior Notes Due 2008 of Pioneer Natural Resources
Company
99.4 Form of 7.20% Senior Notes Due 2028 of Pioneer Natural Resources
Company
99.5 Guarantee (2008 Notes), dated as of January 13, 1998, entered into
by Pioneer Natural Resources USA, Inc.
99.6 Guarantee (2008 Notes), dated as of January 13, 1998, entered into
by Pioneer Natural Resources USA, Inc.
</TABLE>
<PAGE> 1
PIONEER NATURAL RESOURCES COMPANY
AND
THE BANK OF NEW YORK,
AS TRUSTEE
__________
INDENTURE
DATED AS OF JANUARY 13, 1998
___________
DEBT SECURITIES
<PAGE> 2
TABLE OF CONTENTS*
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RECITALS OF THE COMPANY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
-
ARTICLE I
DEFINITIONS
Section 1.01. Certain Terms Defined . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
-
Section 1.02. Incorporation by Reference of Trust Indenture Act . . . . . . . . . . . . . . . . . . . . . . . . . 15
--
Section 1.03. Rules of Construction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
--
ARTICLE II
DEBT SECURITIES
Section 2.01. Forms Generally . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
--
Section 2.02. Form of Trustee's Certificate of Authentication . . . . . . . . . . . . . . . . . . . . . . . . . . 17
--
Section 2.03. Principal Amount; Issuable in Series . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
--
Section 2.04. Execution of Debt Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
--
Section 2.05. Authentication and Delivery of Debt Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
--
Section 2.06. Denomination of Debt Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
--
Section 2.07. Registration of Transfer and Exchange . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
--
Section 2.08. Temporary Debt Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
--
Section 2.09. Mutilated, Destroyed, Lost or Stolen Debt Securities . . . . . . . . . . . . . . . . . . . . . . . . 26
--
Section 2.10. Cancelation of Surrendered Debt Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
--
Section 2.11. Provisions of the Indenture and Debt Securities for the Sole Benefit
of the Parties and the Holders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
--
Section 2.12. Payment of Interest; Interest Rights Preserved . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
--
Section 2.13. Securities Denominated in Foreign Currencies . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
--
Section 2.14. Wire Transfers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
--
Section 2.15. Securities Issuable in the Form of a Global Security . . . . . . . . . . . . . . . . . . . . . . . . 29
--
Section 2.16. Medium Term Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
--
Section 2.17. Defaulted Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
--
Section 2.18. Judgments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
--
Section 2.19. CUSIP Numbers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
--
ARTICLE III
REDEMPTION OF DEBT SECURITIES
Section 3.01. Applicability of Article . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
--
</TABLE>
__________________________________
* The Table of Contents is not part of the Indenture.
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Section 3.02. Tax Redemption; Special Tax Redemption . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
--
Section 3.03. Notice of Redemption; Selection of Debt Securities . . . . . . . . . . . . . . . . . . . . . . . . . 36
--
Section 3.04. Payment of Debt Securities Called for Redemption . . . . . . . . . . . . . . . . . . . . . . . . . . 38
--
Section 3.05. Mandatory and Optional Sinking Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
--
Section 3.06. Redemption of Debt Securities for Sinking Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
--
ARTICLE IV
PARTICULAR COVENANTS OF THE COMPANY
Section 4.01. Payment of Principal of, and Premium, If Any, and Interest on,
Debt Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
--
Section 4.02. Maintenance of Offices or Agencies for Registration of Transfer,
Exchange and Payment of Debt Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
--
Section 4.03. Appointment to Fill a Vacancy in the Office of Trustee . . . . . . . . . . . . . . . . . . . . . . . 42
--
Section 4.04. Duties of Paying Agents, etc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
--
Section 4.05. Statement by Officers as to Default . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
--
Section 4.06. Payment of Additional Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
--
Section 4.07. Further Instruments and Acts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
--
Section 4.08. Existence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
--
Section 4.09. Maintenance of Properties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
--
Section 4.10. Payment of Taxes and Other Claims . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
--
Section 4.11. Limitation on Liens . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
--
Section 4.12. Limitation on Sale and Leaseback Transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
--
ARTICLE V
HOLDERS' LISTS AND REPORTSBY THE COMPANY AND THE TRUSTEE
Section 5.01. Company to Furnish Trustee Information as to Names and Addresses
of Holders; Preservation of Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
--
Section 5.02. Communications to Holders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
--
Section 5.03. Reports by Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
--
Section 5.04. Reports by Trustee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
--
Section 5.05. Record Dates for Action by Holders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
--
ARTICLE VI
REMEDIES OF THE TRUSTEE AND HOLDERS IN EVENT OF DEFAULT
Section 6.01. Events of Default . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
--
Section 6.02. Collection of Indebtedness by Trustee, etc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
--
Section 6.03. Application of Moneys Collected by Trustee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
--
Section 6.04. Limitation on Suits by Holders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
--
</TABLE>
ii
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Section 6.05. Remedies Cumulative; Delay or Omission in Exercise of Rights Not
a Waiver of Default . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
--
Section 6.06. Rights of Holders of Majority in Principal Amount of Debt Securities
to Direct Trustee and to Waive Default . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
--
Section 6.07. Trustee to Give Notice of Defaults Known to It, but May Withhold Such
Notice in Certain Circumstances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
--
Section 6.08. Requirement of an Undertaking To Pay Costs in Certain Suits under the
Indenture or Against the Trustee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
--
ARTICLE VII
CONCERNING THE TRUSTEE
Section 7.01. Certain Duties and Responsibilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
--
Section 7.02. Certain Rights of Trustee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
--
Section 7.03. Trustee Not Liable for Recitals in Indenture or in Debt Securities . . . . . . . . . . . . . . . . . 59
--
Section 7.04. Trustee, Paying Agent or Registrar May Own Debt Securities . . . . . . . . . . . . . . . . . . . . . 59
--
Section 7.05. Moneys Received by Trustee to Be Held in Trust . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
--
Section 7.06. Compensation and Reimbursement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
--
Section 7.07. Right of Trustee to Rely on an Officers' Certificate Where No
Other Evidence Specifically Prescribed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
--
Section 7.08. Separate Trustee; Replacement of Trustee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
--
Section 7.09. Successor Trustee by Merger . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
--
Section 7.10. Eligibility; Disqualification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
--
Section 7.11. Preferential Collection of Claims Against Company . . . . . . . . . . . . . . . . . . . . . . . . . 62
--
Section 7.12. Compliance with Tax Laws . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
--
Section 7.13. Trustee's Application for Instructions From the Company . . . . . . . . . . . . . . . . . . . . . . 62
--
ARTICLE VIII
CONCERNING THE HOLDERS
Section 8.01. Evidence of Action by Holders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
--
Section 8.02. Proof of Execution of Instruments and of Holding of Debt Securities . . . . . . . . . . . . . . . . 63
--
Section 8.03. Who May Be Deemed Owner of Debt Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
--
Section 8.04. Instruments Executed by Holders Bind Future Holders . . . . . . . . . . . . . . . . . . . . . . . . 64
--
ARTICLE IX
SUPPLEMENTAL INDENTURES
Section 9.01. Purposes for Which Supplemental Indenture May Be Entered into
Without Consent of Holders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65
--
Section 9.02. Modification of Indenture with Consent of Holders of Debt Securities . . . . . . . . . . . . . . . . 67
--
Section 9.03. Effect of Supplemental Indentures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68
--
</TABLE>
iii
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Section 9.04. Debt Securities May Bear Notation of Changes by Supplemental Indentures . . . . . . . . . . . . . . 69
--
Section 9.05. Payment for Consent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
--
ARTICLE X
CONSOLIDATION, MERGER, SALE OR CONVEYANCE
Section 10.01. Consolidations and Mergers of the Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
--
Section 10.02. Rights and Duties of Successor Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70
--
ARTICLE XISATISFACTION AND DISCHARGE OFINDENTURE; DEFEASANCE; UNCLAIMED MONEYS
Section 11.01. Applicability of Article . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70
--
Section 11.02. Satisfaction and Discharge of Indenture; Defeasance . . . . . . . . . . . . . . . . . . . . . . . . 70
--
Section 11.03. Conditions of Defeasance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72
--
Section 11.04. Application of Trust Money . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
--
Section 11.05. Repayment to Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
--
Section 11.06. Indemnity for U.S. Government Obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
--
Section 11.07. Reinstatement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
--
ARTICLE XII
SUBORDINATION OF DEBT SECURITIES
Section 12.01. Applicability of Article; Agreement To Subordinate . . . . . . . . . . . . . . . . . . . . . . . . . 73
--
Section 12.02. Liquidation, Dissolution, Bankruptcy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
--
Section 12.03. Default on Senior Indebtedness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
--
Section 12.04. Acceleration of Payment of Debt Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
--
Section 12.05. When Distribution Must Be Paid Over . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
--
Section 12.06. Subrogation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
--
Section 12.07. Relative Rights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
--
Section 12.08. Subordination May Not Be Impaired by Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
--
Section 12.09. Rights of Trustee and Paying Agent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
--
Section 12.10. Distribution or Notice to Representative . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
--
Section 12.11. Article XII Not to Prevent Defaults or Limit Right to Accelerate . . . . . . . . . . . . . . . . . . 76
--
Section 12.12. Trust Moneys Not Subordinated . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
--
Section 12.13. Trustee Entitled to Rely . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77
--
Section 12.14. Trustee to Effectuate Subordination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77
--
Section 12.15. Trustee Not Fiduciary for Holders of Senior Indebtedness . . . . . . . . . . . . . . . . . . . . . . 77
--
Section 12.16. Reliance by Holders of Senior Indebtedness on Subordination Provisions . . . . . . . . . . . . . . . 77
--
</TABLE>
iv
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ARTICLE XIII
MISCELLANEOUS PROVISIONS
Section 13.01. Successors and Assigns of Company Bound by Indenture . . . . . . . . . . . . . . . . . . . . . . . . 78
--
Section 13.02. Acts of Board, Committee or Officer of Successor Company Valid . . . . . . . . . . . . . . . . . . . 78
--
Section 13.03. Required Notices or Demands . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78
--
Section 13.04. Indenture and Debt Securities to Be Construed in Accordance with the
Laws of the State of New York . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79
--
Section 13.05. Officers' Certificate and Opinion of Counsel to Be Furnished upon
Application or Demand by the Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79
--
Section 13.06. Payments Due on Legal Holidays . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79
--
Section 13.07. Provisions Required by Trust Indenture Act to Control . . . . . . . . . . . . . . . . . . . . . . . 80
--
Section 13.08. Computation of Interest on Debt Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80
--
Section 13.09. Rules by Trustee, Paying Agent and Registrar . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80
--
Section 13.10. No Recourse Against Others . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80
--
Section 13.11. Severability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80
--
Section 13.12. Effect of Headings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80
--
Section 13.13. Indenture May Be Executed in Counterparts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80
--
</TABLE>
v
<PAGE> 7
PIONEER NATURAL RESOURCES COMPANY
DEBT SECURITIES
CROSS REFERENCE SHEET*
This Cross Reference Sheet shows the location in the Indenture of the
provisions inserted pursuant to Sections 310-318(a), inclusive of the Trust
Indenture Act of 1939.
<TABLE>
<CAPTION>
INDENTURE
TIA SECTION SECTION
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<S> <C>
310 (a)(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.10
(a)(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.10
(a)(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.10
(a)(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.10
(a)(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.10
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.10
(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . N.A.**
311 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.11
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.11
(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . N.A.
312 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.01
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.02
(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.02
313 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.04
(b)(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.04
(b)(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.04
(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.03
(d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.04
314 (a)(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.03(a)
(a)(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.03(b)
(a)(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.03(a) & (b)
& 13.03
(a)(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.05
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . N.A.
</TABLE>
__________________________________
* The Cross Reference Sheet is not part of the Indenture.
** N.A. means Not Applicable.
vi
<PAGE> 8
<TABLE>
<CAPTION>
INDENTURE
TIA SECTION SECTION
----------- -------
<S> <C>
(c)(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.05
(c)(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.05
(c)(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . N.A.
(d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . N.A.
(e) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.05
(f) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.06
315 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.01(a)
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.07 & 13.03
(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.01
(d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.01
(e) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.08
316 (a) (last sentence) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.01
(a)(1)(A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.06
(a)(1)(B) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.06
(a)(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.01(d)
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.04
(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.05
317 (a)(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.02
(a)(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.02
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.04
318 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.07
</TABLE>
vii
<PAGE> 9
INDENTURE dated as of January 13, 1998, between PIONEER NATURAL
RESOURCES COMPANY, a corporation duly organized and existing under the laws of
the State of Delaware (hereinafter sometimes called the "Company"), and THE
BANK OF NEW YORK, a New York banking corporation, an association duly
incorporated and existing under the Federal laws of the United States
(hereinafter sometimes 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, bonds or other evidences of indebtedness to be issued in one or more
series unlimited as to principal amount (herein called the "Debt Securities"),
as in this Indenture provided.
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
That in order to declare the terms and conditions upon which the Debt
Securities are authenticated, issued and delivered, and in consideration of the
premises, and of the purchase and acceptance of the Debt Securities by the
holders thereof, the Company and the Trustee covenant and agree with each
other, for the benefit of the respective Holders from time to time of the Debt
Securities or any series thereof, as follows:
ARTICLE I
DEFINITIONS
Section 1.01. CERTAIN TERMS DEFINED. The terms defined in this
Section 1.01 (except as herein otherwise expressly provided or unless the
context otherwise requires) for all purposes of this Indenture and of any
Indenture supplemental hereto shall have the respective meanings specified in
this Section 1.01. All other terms used in this Indenture which are defined in
the Trust Indenture Act or which are by reference therein defined in the
Securities Act (except as herein otherwise expressly provided or unless the
context otherwise requires), shall have the meanings assigned to such terms in
the Trust Indenture Act and in the Securities Act as in force as of the date of
original execution of this Indenture.
"Adjusted Consolidated Net Tangible Assets" means (without
duplication), as of the date of determination, the remainder of:
1
<PAGE> 10
(a) the sum of (i) discounted future net revenues from
proved oil and gas reserves of the Company and its Subsidiaries calculated in
accordance with SEC guidelines before any provincial, territorial, state,
Federal or foreign income taxes, as estimated by the Company in a reserve
report prepared as of the end of the Company's most recently completed fiscal
year for which audited financial statements are available, as increased by, as
of the date of determination, the estimated discounted future net revenues from
(A) estimated proved oil and gas reserves acquired since such year end, which
reserves were not reflected in such year end reserve report, and (B) estimated
oil and gas reserves attributable to upward revisions of estimates of proved
oil and gas reserves since such year end due to exploration, development or
exploitation activities, in each case calculated in accordance with SEC
guidelines (utilizing the prices utilized in such year end reserve report), and
decreased by, as of the date of determination, the estimated discounted future
net revenues from (C) estimated proved oil and gas reserves produced or
disposed of since such year end, and (D) estimated oil and gas reserves
attributable to downward revisions of estimates of proved oil and gas reserves
since such year end due to changes in geological conditions or other factors
which would, in accordance with standard industry practice, cause such
revisions, in each case calculated on a pre-tax basis and substantially in
accordance with SEC guidelines (utilizing the prices utilized in such year end
reserve report), in each case as estimated by the Company's petroleum engineers
or any independent petroleum engineers engaged by the Company for that purpose;
(ii) the capitalized costs that are attributable to oil and gas properties of
the Company and its Subsidiaries to which no proved oil and gas reserves are
attributable, based on the Company's books and records as of a date no earlier
than the date of the Company's latest available annual or quarterly financial
statements; (iii) the Net Working Capital on a date no earlier than the date of
the Company's latest annual or quarterly financial statements; and (iv) the
greater of (A) the net book value on a date no earlier than the date of the
Company's latest annual or quarterly financial statement, and (B) the appraised
value, as estimated by independent appraisers, of other tangible assets of the
Company and its Subsidiaries, as of a date no earlier than the date of the
Company's latest audited financial statements; minus
(b) the sum of (i) Minority Interests; (ii) any net gas balancing
liabilities of the Company and its Subsidiaries reflected in the Company's
latest audited financial statements; (iii) to the extent included in (a)(i)
above, the discounted future net revenues, calculated in accordance with SEC
guidelines (utilizing the prices utilized in the Company's year end reserve
report), attributable to reserves which are required to be delivered to third
parties to fully satisfy the obligations of the Company and its Subsidiaries
with respect to Volumetric Production Payments (determined, if applicable,
using the schedules specified with respect thereto); and (iv) the discounted
future net revenues, calculated in accordance with SEC guidelines, attributable
to reserves subject to Dollar-Denominated Production Payments which, based on
the estimates of production and price assumptions included in determining the
discounted future net revenues specified in (a)(i) above, would be necessary to
fully satisfy the payment obligations of the Company and its Subsidiaries with
respect to Dollar-Denominated Production Payments (determined, if applicable,
using the schedules specified with respect thereto).
If the Company changes its method of accounting from the successful
efforts method to the full cost or a similar method of accounting, "Adjusted
Consolidated Net Tangible Assets" will continue to be calculated as if the
Company were still using the successful efforts method of accounting.
2
<PAGE> 11
"Affiliate" of any specified Person means any other Person, directly
or indirectly, controlling or controlled by or under direct or indirect common
control with such specified Person. For the purposes of this definition,
"control" when used with respect to any Person means the power to direct the
management and policies of such Person, directly or indirectly, whether through
the ownership of voting securities, by contract or otherwise; and the terms
"controlling" and "controlled" have meanings correlative to the foregoing.
"Authorized Newspaper" means a newspaper in an official language of
the country of publication customarily published at least once a day, and
customarily published for at least five days in each calendar week, and of
general circulation in such city or cities specified pursuant to Section 2.03
with respect to the Debt Securities of any series. Where successive
publications are required to be made in Authorized Newspapers, the successive
publications may be made in the same or in different newspapers in the same
city meeting the foregoing requirements and in each case on any business day in
such city.
"Attributable Indebtedness" in respect of a Sale and Leaseback
Transaction means, as of the time of determination, (a) if the obligation in
respect of such Sale and Leaseback Transaction is a Capitalized Lease
Obligation, the amount equal to the capitalized amount of such obligation
determined in accordance with GAAP and included in the financial statements of
the lessee or (b) if the obligation in respect of such Sale and Leaseback
Transaction is not a Capitalized Lease Obligation, the amount equal to the
total Net Amount of Rent required to be paid by the lessee under such lease
during the remaining term thereof (including any period for which the lease has
been extended), discounted from the respective due dates thereof to such
determination date at the rate per annum borne by the applicable series of Debt
Securities compounded semi-annually.
"Bank Indebtedness" means any and all amounts payable under or in
respect of the Credit Agreements, as supplemented amended or modified from time
to time, including principal, premium (if any), interest (including interest
accruing on or after the filing of any petition in bankruptcy or for
reorganization relating to the Company whether or not a claim for post-filing
interest is allowed in such proceedings), fees, charges, expenses,
reimbursement obligations, guarantees and all other amounts payable thereunder
or in respect thereof.
"Banks" means the Lenders, as such term is defined in the applicable
Credit Agreement.
"Bearer Holder" means, with respect to any Bearer Security or Coupon,
the bearer thereof.
"Bearer Security" means any Debt Security (with or without Coupons),
title to which passes by delivery only, but does not include any Coupons.
"Board of Directors" means either the Board of Directors of the
Company or any duly authorized committee or subcommittee of such Board, except
as the context may otherwise require.
"business day" means, when used with respect to any Place of Payment
specified pursuant to Section 2.03, any day that is not a Saturday, a Sunday or
a legal holiday or a day on which banking
3
<PAGE> 12
institutions or trust companies in such Place of Payment are authorized or
obligated by law to close, except as otherwise specified pursuant to Section
2.03.
"Capital Stock" of any Person means any and all shares, interests,
rights to purchase, warrants, options, participations or other equivalents of
or interests (including partnership interests) in (however designated) equity
of such Person, including any Preferred Stock, but excluding any debt
securities convertible into such equity.
"Capitalized Lease Obligation" means an obligation that is required to
be classified and accounted for as a capitalized lease for financial reporting
purposes in accordance with GAAP.
"Commodity Price Protection Agreement" means, in respect of any
Person, any forward contract, commodity swap agreement, commodity option
agreement or other similar agreement or arrangement designed to protect such
Person against fluctuations in commodity prices.
"Common Stock" means the common stock, par value $.01 per share, of
the Company, which stock is currently listed on the New York Stock Exchange.
"Company" means Pioneer Natural Resources Company, a Delaware
corporation, and, subject to the provisions of Article X, shall also include
its successors and assigns.
"Company Order" means a written order of the Company, signed by its
Chairman of the Board, Vice Chairman, President or any Vice President and by
its Treasurer, Secretary, any Assistant Treasurer or any Assistant Secretary.
"Consolidated Net Worth" of any Person means the stockholders' equity
of such Person and its Subsidiaries, as determined on a consolidated basis in
accordance with GAAP, less (to the extent included in stockholders' equity)
amounts attributable to Redeemable Stock of such Person or its Subsidiaries.
"corporate trust office of the trustee" or other similar term means
the office of the Trustee at which the corporate trust business of the Trustee
shall, at any particular time, be principally administered in the United States
of America, except that with respect to the presentation of Debt Securities for
payment or for registration of transfer and exchange, such term shall also mean
the office of the Trustee or the Trustee's agent in the Borough of Manhattan,
the city and state of New York, at which at any particular time its corporate
agency business shall be conducted.
"Coupon" means any interest coupon appertaining to any Bearer
Security.
"Coupon Security" means any Bearer Security authenticated and
delivered with one or more Coupons appertaining thereto.
"Credit Agreements" means (i) the Amended and Restated Credit Facility
Agreement (Primary Facility), dated as of December 18, 1997, among the Company,
as Borrower, and NationsBank of Texas, N.A., as Administrative Agent, CIBC
Inc., as Documentation Agent, Morgan
4
<PAGE> 13
Guaranty Trust Company of New York, as Documentation Agent, The Chase Manhattan
Bank, as Syndication Agent, and the Co- Agents and Lenders party thereto; (ii)
the Amended and Restated Credit Facility Agreement (364 Day Facility), dated as
of December 18, 1997, among the Company, as Borrower, and NationsBank of Texas,
N.A., as Administrative Agent, CIBC Inc., as Documentation Agent, Morgan
Guaranty Trust Company of New York, as Documentation Agent, The Chase Manhattan
Bank, as Syndication Agent, and the Co-Agents and Lenders party thereto; (iii)
the Term Note, dated as of December 22, 1997, executed by the Company and
payable to NationsBank of Texas, N.A., in the original principal amount of $100
million; and (iv) the Credit Agreement, dated as of December 18, 1997, among
Chauvco Resources Ltd., Canadian Imperial Bank of Commerce, and the other
lenders signatory thereto, as supplemented, amended or modified from time to
time.
"Currency" means Dollars or Foreign Currency.
"Currency Exchange Protection Agreement" means, in respect of any
Person, any foreign exchange contract, currency swap agreement, currency option
or other similar agreement or arrangement designed to protect such Person
against fluctuations in currency exchange rates.
"Debt Security" or "Debt Securities" has the meaning stated in the
first recital of this Indenture and more particularly means any debt security
or debt securities, as the case may be of any series authenticated and
delivered under this Indenture.
"Default" means any event which is, or after notice or passage of time
or both would be, an Event of Default.
"Depositary" means, unless otherwise specified by the Company pursuant
to either Section 2.03 or 2.15, with respect to registered Debt Securities of
any series issuable or issued in whole or in part in the form of one or more
Global Securities, The Depository Trust Company, New York, New York, or any
successor thereto registered as a clearing agency under the Exchange Act or
other applicable statute or regulations.
"Designated Senior Indebtedness" means (a) the Bank Indebtedness and
(b) any other Senior Indebtedness which, at the date of determination, has an
aggregate principal amount outstanding of, or under which, at the date of
determination, the holders thereof are committed to lend up to, at least $100
million and is specifically designated by the Company in the instrument
evidencing or governing such Senior Indebtedness as "Designated Senior
Indebtedness" for purposes of this Indenture and has been designated as
"Designated Senior Indebtedness" for purposes of this Indenture in an Officers'
Certificate received by the Trustee.
"Disqualified Stock" of a Person means Redeemable Stock of such Person
as to which the maturity, mandatory redemption, conversion or exchange or
redemption at the option of the holder thereof occurs, or may occur, on or
prior to the first anniversary of the Stated Maturity of the applicable series
of Debt Securities.
5
<PAGE> 14
"Dollar" or "$" means such currency of the United States as at the
time of payment is legal tender for the payment of public and private debts.
"Dollar-Denominated Production Payments" means production payment
obligations recorded as liabilities in accordance with GAAP, together with all
undertakings and obligations in connection therewith.
"Dollar Equivalent" means, with respect to any monetary amount in a
Foreign Currency, at any time for the determination thereof, the amount of
Dollars obtained by converting such Foreign Currency involved in such
computation into Dollars at the spot rate for the purchase of Dollars with the
applicable Foreign Currency as quoted by Bankers Trust Company (unless another
comparable financial institution is designated by the Company) in New York, New
York at approximately 11:00 a.m. (New York time) on the date two business days
prior to such determination.
"European Currency Units" has the meaning assigned to it from time to
time by the Council of the European Communities, or its successor in the
European Union.
"European Communities" means the European Economic Community, the
European Coal and Steel Community and the European Atomic Energy Community, or
their successors in the European Union.
"Event of Default" has the meaning specified in Section 6.01.
"Exchange Act" means the Securities Exchange Act of 1934.
"Floating Rate Security" means a Debt Security that provides for the
payment of interest at a variable rate determined periodically by reference to
an interest rate index specified pursuant to Section 2.03.
"Foreign Currency" means a currency issued by the government of any
country other than the United States or a composite currency the value of which
is determined by reference to the values of the currencies of any group of
countries.
"GAAP" means generally accepted accounting principles in the United
States as in effect as of the date on which the Debt Securities of the
applicable series are issued, including those set forth in (i) the opinions and
pronouncements of the Accounting Principles Board of the American Institute of
Certified Public Accountants, (ii) statements and pronouncements of the
Financial Accounting Standards Board, (iii) such other statements by such other
entity as approved by a significant segment of the accounting profession and
(iv) the rules and regulations of the SEC governing the inclusion of financial
statements (including pro forma financial statements) in periodic reports
required to be filed pursuant to Section 13 of the Exchange Act, including
opinions and pronouncements in staff accounting bulletins and similar written
statements from the accounting staff of the SEC. All ratios and computations
based on GAAP contained in this Indenture shall be computed in conformity with
GAAP consistently applied.
6
<PAGE> 15
"Global Security" means with respect to any series of Debt Securities
issued hereunder, a Debt Security which is executed by the Company and
authenticated and delivered by the Trustee to the Depositary or pursuant to the
Depositary's instruction, all in accordance with this Indenture and any
Indentures supplemental hereto, or resolution of the Board of Directors and set
forth in an Officers' Certificate, which shall be registered in the name of the
Depositary or its nominee and which shall represent, and shall be denominated
in an amount equal to the aggregate principal amount of, all the Outstanding
Debt Securities of such series or any portion thereof, in either case having
the same terms, including, without limitation, the same original issue date,
date or dates on which principal is due and interest rate or method of
determining interest.
"Government Contract Lien" means any Lien required by any contract,
statute, regulation or order in order to permit the Company or any of its
Subsidiaries to perform any contract or subcontract made by it with or at the
request of the United States or any State thereof or any department, agency or
instrumentality of either or to secure partial, progress, advance or other
payments by the Company or any of its Subsidiaries to the United States or any
State thereof or any department, agency or instrumentality of either pursuant
to the provisions of any contract, statute, regulation or order.
"Guarantee" means any obligation, contingent or otherwise, of any
Person directly or indirectly guaranteeing any Indebtedness or other obligation
of any other Person and any obligation, direct or indirect, contingent or
otherwise, of such Person (a) to purchase or pay (or advance or supply funds
for the purchase or payment of) such Indebtedness or other obligation of such
other Person (whether arising by virtue of partnership arrangements, or by
agreement to keep-well, to purchase assets, goods, securities or services, to
take-or-pay, or to maintain financial statement conditions or otherwise) or (b)
entered into for purposes of assuring in any other manner the obligee of such
Indebtedness or other obligation of the payment thereof or to protect such
obligee against loss in respect thereof (in whole or in part); provided,
however, that the term "Guarantee" shall not include endorsements for
collection or deposit in the ordinary course of business. The term "Guarantee"
used as a verb has a corresponding meaning.
"Hedging Obligations" of any Person means the obligations of such
Person pursuant to any Interest Rate Protection Agreement, Currency Exchange
Protection Agreement, Commodity Price Protection Agreement or other similar
agreement.
"Holder," "Holder of Debt Securities" or other similar terms means,
with respect to a Registered Security, the Registered Holder and, with respect
to a Bearer Security or a Coupon, the Bearer Holder.
"Incur" means issue, assume, Guarantee, incur or otherwise become
liable for; provided, however, that any Indebtedness or Capital Stock of a
Person existing at the time such Person becomes a Subsidiary (whether by
merger, consolidation, acquisition or otherwise) shall be deemed to be incurred
by such Subsidiary at the time it becomes a Subsidiary. The terms "Incurred",
"Incurrence" and "Incurring" shall each have a correlative meaning.
7
<PAGE> 16
"Indebtedness" means, with respect to any Person, at any date, any of
the following, without duplication: (i) any liability, contingent or otherwise,
of such Person (A) for borrowed money (whether or not the recourse of the
lender is to the whole of the assets of such Person or only to a portion
thereof), (B) evidenced by a note, bond, debenture or similar instrument, or
(C) for the payment of money relating to a Capitalized Lease Obligation or
other obligation (whether issued or assumed) relating to the deferred purchase
price of property; (ii) all conditional sale obligations and all obligations
under any title retention agreement (even if the rights and remedies of the
seller under such agreement in the event of default are limited to repossession
or sale of such property); (iii) all obligations for the reimbursement of any
obligor on any letter of credit, banker's acceptance or similar credit
transaction other than as entered into in the ordinary course of business; (iv)
all indebtedness of others secured by (or for which the holder of such
indebtedness has an existing right, contingent or otherwise, to be secured by)
any Lien on any asset or property (including, without limitation, leasehold
interests and any other tangible or intangible property) of such Person,
whether or not such indebtedness is assumed by such Person or is not otherwise
such Person's legal liability; provided that if the obligations so secured have
not been assumed in full by such Person or are otherwise not such Person's
legal liability in full, the amount of such indebtedness for the purposes of
this definition shall be limited to the lesser of the amount of such
indebtedness secured by such Lien or the fair market value of the assets or the
property securing such lien; (v) all indebtedness of others (including all
interest and dividends on any Indebtedness or Preferred Stock of any other
Person the payment of which is) guaranteed, directly or indirectly, by such
Person or that is otherwise its legal liability or which such Person has agreed
to purchase or repurchase or in respect of which such Person has agreed
contingently to supply or advance funds; and (vi) to the extent not otherwise
included in this definition, obligations in respect of Hedging Obligations.
Indebtedness shall not include (a) accounts payable arising in the ordinary
course of business, and (b) any obligations in respect of prepayments for gas
or oil production or gas or oil imbalances.
"Indenture" means this instrument as originally executed, or, if
amended or supplemented as herein provided, as so amended or supplemented and
shall include the form and terms of particular series of Debt Securities as
contemplated hereunder, whether or not a supplemental Indenture is entered into
with respect thereto.
"Interest" includes, when used with respect to a Bearer Security, any
additional interest payable on such Bearer Security pursuant to Section 3.02 or
4.06.
"Interest Rate Protection Agreement" means, in respect of any Person,
any interest rate swap agreement, interest rate option agreement, interest rate
cap agreement, interest rate collar agreement, interest rate floor agreement or
other similar agreement or arrangement designed to protect such Person against
fluctuations in interest rates.
"Lien" means any mortgage, pledge, security interest, encumbrance,
lien, charge or adverse claim affecting title or resulting in an encumbrance
against real or personal property or a security interest of any kind
(including, without limitation, any conditional sale or other title retention
agreement or lease in the nature thereof or any filing or agreement to file a
financing statement as debtor under the Uniform Commercial Code or any similar
statute other than to reflect ownership
8
<PAGE> 17
by a third party of property leased to the Company or any of its Subsidiaries
under a lease that is not in the nature of a conditional sale or title
retention agreement).
"Minority Interest" means the percentage interest represented by any
shares of stock of any class of a Subsidiary that are not owned by the Company
or a Subsidiary.
"Net Amount of Rent" as to any lease for any period means the
aggregate amount of rent payable by the lessee with respect to such period
after excluding amounts required to be paid on account of maintenance and
repairs, insurance, taxes, assessments, water rates and similar charges. In
the case of any lease that is terminable by the lessee upon the payment of a
penalty, such net amount shall also include the amount of such penalty, but no
rent shall be considered as payable under such lease subsequent to the first
date upon which it may be so terminated.
"Net Working Capital" means (a) all current assets of the Company and
its Subsidiaries, less (b) all current liabilities of the Company and its
Subsidiaries, except current liabilities included in Indebtedness, in each case
as set forth in consolidated financial statements of the Company prepared in
accordance with GAAP.
"Officers' Certificate" means a certificate signed by the Chairman of
the Board, the Vice Chairman, the President or any Vice President and by the
Treasurer, the Secretary or any Assistant Treasurer or Assistant Secretary of
the Company. Each such certificate shall include the statements provided for
in Section 13.05, if applicable.
"Oil and Gas Business" means the business of exploiting, exploring
for, developing, acquiring, operating, producing, processing, gathering,
marketing, storing, selling, hedging, treating, swapping, refinancing and
transporting hydrocarbon and other related energy businesses.
"Opinion of Counsel" means an opinion in writing signed by legal
counsel for the Company (which counsel may be an employee of the Company), or
outside counsel for the Company. Each such opinion shall include the
statements provided for in Section 13.05, if applicable.
"Original Issue Discount Debt Security" means any Debt Security which
provides for an amount less than the principal amount thereof to be due and
payable upon a declaration of acceleration of the maturity thereof pursuant to
Section 6.01.
"Outstanding", when used with respect to any series of Debt
Securities, means, as of the date of determination, all Debt Securities of that
series theretofore authenticated and delivered under this Indenture, except:
(a) Debt Securities of that series theretofore canceled
by the Trustee or delivered to the Trustee for cancelation;
(b) Debt Securities of that series 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
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as its own paying agent) for the Holders of such Debt Securities; provided,
that, if such Debt 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; and
(c) Debt Securities of that series which have been paid
pursuant to Section 2.09 or in exchange for or in lieu of which other Debt
Securities have been authenticated and delivered pursuant to this Indenture,
other than any such Debt Securities in respect of which there shall have been
presented to the Trustee proof satisfactory to it that such Debt Securities are
held by a bona fide purchaser in whose hands such Debt Securities are valid
obligations of the Company;
provided, however, that in determining whether the Holders of the requisite
principal amount of the Outstanding Debt Securities of any series have given
any request, demand, authorization, direction, notice, consent or waiver
hereunder, Debt Securities owned by the Company or any other obligor upon the
Debt Securities or any Affiliate of the Company or of such other obligor shall
be disregarded and deemed not to be Outstanding, except that, in determining
whether the Trustee shall be protected in relying upon any such request,
demand, authorization, direction, notice, consent or waiver, only Debt
Securities which a responsible officer of the Trustee actually knows to be so
owned shall be so disregarded. Debt 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 Debt Securities and that the pledgee is not the Company or any other
obligor upon the Debt Securities or an Affiliate of the Company or of such
other obligor. In determining whether the Holders of the requisite principal
amount of Outstanding Debt Securities have given any request, demand,
authorization, direction, notice, consent or waiver hereunder, the principal
amount of an Original Issue Discount Debt Security that shall be deemed to be
Outstanding for such purposes shall be the amount of the principal thereof that
would be due and payable as of the date of such determination upon a
declaration of acceleration of the maturity thereof pursuant to Section 6.01.
In determining whether the Holders of the requisite principal amount of the
Outstanding Debt Securities of any series have given any request, demand,
authorization, direction, notice, consent or waiver hereunder, the principal
amount of a Debt Security denominated in one or more foreign currencies or
currency units that shall be deemed to be Outstanding for such purposes shall
be the Dollar Equivalent, determined in the manner provided as contemplated by
Section 2.03 on the date of original issuance of such Debt Security, of the
principal amount (or, in the case of any Original Issue Discount Security, the
Dollar Equivalent on the date of original issuance of such Security of the
amount determined as provided in the preceding sentence above) of such Debt
Security.
"pari passu", as applied to the ranking of any Indebtedness of a
Person in relation to other Indebtedness of such Person, means that each such
Indebtedness either (a) is not subordinate in right of payment to any
Indebtedness or (b) is subordinate in right of payment to the same Indebtedness
as is the other, and is so subordinate to the same extent, and is not
subordinate in right of payment to each other or to any Indebtedness as to
which the other is not so subordinate.
"Permitted Liens" means, with respect to any Person, (a) pledges or
deposits by such Person under worker's compensation laws, unemployment
insurance laws or similar legislation, or good faith deposits in connection
with bids, tenders, contracts (other than for the payment of Indebtedness)
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or leases to which such Person is a party, or deposits to secure public or
statutory obligations of such Person or deposits of cash or United States
government bonds to secure performance, surety or appeal bonds to which such
Person is a party or which are otherwise required of such Person, or deposits
as security for contested taxes or import duties or for the payment of rent or
other obligations of like nature, in each case Incurred in the ordinary course
of business; (b) Liens imposed by law, such as carriers', warehousemen's,
laborers', materialmen's, landlords', vendors', workmen's, operators',
producers' (including those arising pursuant to Article 9.319 of the Texas
Uniform Commercial Code or other similar statutory provisions of other states
with respect to production purchased from others) and mechanics' Liens, in each
case for sums not yet due or being contested in good faith by appropriate
proceedings; (c) Liens for property taxes, assessments and other governmental
charges or levies not yet delinquent or subject to penalties for non-payment or
which are being contested in good faith by appropriate proceedings; (d) minor
survey exceptions, minor encumbrances, easements or reservations of or with
respect to, or rights of others for or with respect to, licenses,
rights-of-way, sewers, electric and other utility lines and usages, telegraph
and telephone lines, pipelines, surface use, operation of equipment, permits,
servitudes and other similar matters, or zoning or other restrictions as to the
use of real property or Liens incidental to the conduct of the business of such
Person or to the ownership of its properties which were not Incurred in
connection with Indebtedness and which do not in the aggregate materially
adversely affect the value of said properties or materially impair their use in
the operation of the business of such Person; (e) Liens existing on or provided
for under the terms of agreements existing on the Issue Date (including,
without limitation, under the Credit Agreements); (f) Liens on property or
assets of, or any shares of stock of or secured debt of, any Person at the time
the Company or any of its Subsidiaries acquired the property or the Person
owning such property, including any acquisition by means of a merger or
consolidation with or into the Company or any of its Subsidiaries; (g) Liens
securing a Hedging Obligation so long as such Hedging Obligation is of the type
customarily entered into in connection with, and is entered into for the
purpose of, limiting risk; (h) Liens upon specific properties of the Company or
any of its Subsidiaries securing Indebtedness Incurred in the ordinary course
of business to provide all or part of the funds for the exploration, drilling
or development of those properties; (i) Purchase Money Liens; (j) Liens
securing only Indebtedness of a wholly owned Subsidiary of the Company to the
Company or to one or more wholly owned Subsidiaries of the Company; (k) Liens
on any property to secure bonds for the construction, installation or financing
of pollution control or abatement facilities or other forms of industrial
revenue bond financing or Indebtedness issued or Guaranteed by the United
States, any state or any department, agency or instrumentality thereof; (l)
Government Contract Liens; (m) Liens in respect of Production Payments and
Reserve Sales; (n) Liens resulting from the deposit of funds or evidences of
Indebtedness in trust for the purpose of defeasing Indebtedness of the Company
or any of its Subsidiaries; (o) legal or equitable encumbrances deemed to exist
by reason of negative pledges or the existence of any litigation or other legal
proceeding and any related lis pendens filing (excluding any attachment prior
to judgment, judgment lien or attachment lien in aid of execution on a
judgment); (p) rights of a common owner of any interest in property held by
such Person; (q) farmout, carried working interest, joint operating,
unitization, royalty, overriding royalty, sales and similar agreements relating
to the exploration or development of, or production from, oil and gas
properties entered into the ordinary course of business; (r) any defects,
irregularities or deficiencies in title to easements, rights-of- way or other
properties which do not in the aggregate materially adversely affect the value
of such properties or materially impair their use in the operation of the
business of such Person; and (s) Liens
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to secure any refinancing, refunding, extension, renewal or replacement (or
successive refinancings, refundings, extensions, renewals or replacements), as
a whole, or in part, of any Indebtedness secured by any Lien referred to in the
foregoing clauses (e) through (m); provided, however, that (i) such new Lien
shall be limited to all or part of the same property that secured the original
Lien (plus improvements on such property) and (ii) the Indebtedness secured by
such Lien at such time is not increased to any amount greater than the sum of
(A) the outstanding principal amount or, if greater, committed amount of the
Indebtedness described under clauses (e) through (m) at the time the original
Lien became a Permitted Lien under this Indenture and (B) an amount necessary
to pay any fees and expenses, including premiums, related to such refinancing,
refunding, extension, renewal or replacement.
"Person" means any individual, corporation, partnership, joint
venture, association, joint-stock company, trust, unincorporated organization,
government or any agency or political subdivision thereof or any other entity.
"Place of Payment" means, when used with respect to the Debt
Securities of any series, the place or places where the principal of, and
premium, if any, and interest on, the Debt Securities of that series are
payable as specified pursuant to Section 2.03.
"Preferred Stock", as applied to the Capital Stock of any Person,
means Capital Stock of any class or classes (however designated) which is
preferred as to the payment of dividends or distributions, or as to the
distribution of assets upon any voluntary or involuntary liquidation or
dissolution of such Person, over shares of Capital Stock of any other class of
such Person.
"Principal Property" means any property owned or leased by the Company
or any Subsidiary, the gross book value of which exceeds one percent of
Consolidated Net Worth.
"Production Payments and Reserve Sales" means the grant or transfer by
the Company or a Subsidiary of the Company to any Person of a royalty,
overriding royalty, net profits interest, production payment (whether
volumetric or dollar denominated), partnership or other interest in oil and gas
properties, reserves or the right to receive all or a portion of the production
or the proceeds from the sale of production attributable to such properties,
including any such grants or transfers pursuant to incentive compensation
programs on terms that are reasonably customary in the Oil and Gas Business for
geologists, geophysicists and other providers of technical services to the
Company or a Subsidiary of the Company.
"Purchase Money Lien" means a Lien on property securing Indebtedness
Incurred by the Company or any of its Subsidiaries to provide funds for all or
any portion of the cost of (i) acquiring such property incurred before, at the
time of, or within six months after the acquisition of such property or (ii)
constructing, developing, altering, expanding, improving or repairing such
property or assets used in connection with such property.
"Redeemable Stock" of any Person means any equity security of such
Person that by its terms (or by the terms of any security into which it is
convertible or for which it is exchangeable), or otherwise (including on the
happening of an event), is or could become required to be redeemed for
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cash or other property or is or could become redeemable for cash or other
property at the option of the holder thereof, in whole or in part, on or prior
to the first anniversary of the stated maturity of the applicable series of
Notes; or is or could become exchangeable at the option of the holder thereof
for Indebtedness at any time in whole or in part, on or prior to the first
anniversary of the stated maturity of the applicable series of Debt Securities;
provided, however, that Redeemable Stock shall not include any security that
may be exchanged or converted at the option of the holder for Capital Stock of
the Company having no preference as to dividends or liquidation over any other
Capital Stock of the Company.
"Registered Holder" means the Person in whose name a Registered
Security is registered in the Debt Security Register (as defined in Section
2.07(a)).
"Registered Security" means any Debt Security registered as to
principal and interest in the Debt Security Register (as defined in Section
2.07(a)).
"Registrar" has the meaning set forth in Section 2.07(a).
"Representative" means the trustee, agent or representative (if any)
for an issue of Senior Indebtedness.
"responsible officer", when used with respect to the Trustee, means
any Account Manager or any officer within the corporate trust trustee
administration group of the Trustee, including any Vice President, any
Assistant Vice President, any Treasurer, any Assistant Treasurer, any trust
officer or any other officer of the Trustee performing functions similar to
those performed by the persons who at the time shall be such officers, and any
other officer of the Trustee to whom corporate trust matters are referred
because of his knowledge of and familiarity with the particular subject.
"Sale and Leaseback Transaction" means any arrangement with any Person
pursuant to which the Company or any Subsidiary leases any Principal Property
that has been or is to be sold or transferred by the Company or the Subsidiary
to such Person, other than (i) temporary leases for a term, including renewals
at the option of the lessee, of not more than five years, (ii) leases between
the Company and a Subsidiary or between Subsidiaries, (iii) leases of Principal
Property executed by the time of, or within 12 months after the latest of, the
acquisition, the completion of construction or improvement, or the commencement
of commercial operation of the Principal Property, and (iv) arrangements
pursuant to any provision of law with an effect similar to the former Section
168(f)(8) of the Internal Revenue Code of 1954.
"Secured Indebtedness" means any Indebtedness of the Company secured
by a Lien.
"Securities Act" means the Securities Act of 1933.
"Senior Indebtedness" means, as to any series of Debt Securities
subordinated pursuant to the provisions of Article XII, the Indebtedness of the
Company identified as Senior Indebtedness in the resolution of the Board of
Directors and accompanying Officers' Certificate or supplemental Indenture
setting forth the terms, including as to Subordination, of such series.
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"Significant Subsidiary" means a Subsidiary of any Person that would
be a "significant subsidiary" as defined in Rule 405 under the Securities Act
as in effect on the date of this Indenture.
"Stated Maturity" means, with respect to any security, the date
specified in such security as the fixed date on which the payment of principal
of such security is due and payable, including pursuant to any mandatory
redemption provision (but excluding any provision providing for the repurchase
of such security at the option of the holder thereof upon the happening of any
contingency beyond the control of the issuer unless such contingency has
occurred).
"Subsidiary" of any Person means (i) any Person of which more than 50%
of the total voting power of shares of Capital Stock entitled (without regard
to the occurrence of any contingency) to vote in the election of directors,
managers or trustees thereof is at the time owned or controlled, directly or
indirectly, by any Person or one or more of the Subsidiaries of that Person or
a combination thereof, and (ii) any partnership, joint venture or other Person
in which such Person or one or more of the Subsidiaries of that Person or a
combination thereof has the power to control by contract or otherwise the board
of directors or equivalent governing body or otherwise controls such entity.
"Temporary Cash Investments" means any of the following: (a)
investments in U.S. Government Obligations maturing within 90 days of the date
of acquisition thereof, (b) investments in time deposit accounts, certificates
of deposit and money market deposits maturing within 90 days of the date of
acquisition thereof issued by a bank or trust company which is organized under
the laws of the United States, any State thereof or any foreign country
recognized by the United States having capital, surplus and undivided profits
aggregating in excess of $500,000,000 (or the Dollar Equivalent thereof) and
whose long-term debt is rated "A" or higher according to Moody's Investors
Service, Inc. (or such similar equivalent rating by at least one "nationally
recognized statistical rating organization" (as defined in Rule 436 under the
Securities Act)), (c) repurchase obligations with a term of not more than 7
days for underlying securities of the types described in clause (a) above
entered into with a bank meeting the qualifications described in clause (b)
above and (d) investments in commercial paper, maturing not more than 90 days
after the date of acquisition, issued by a corporation (other than an Affiliate
of the Company) organized and in existence under the laws of the United States
or any foreign country recognized by the United States with a rating at the
time as of which any investment therein is made of "P-1" (or higher) according
to Moody's Investors Service, Inc. or "A-1" (or higher) according to Standard
and Poor's Corporation.
"Trade Payables" means, with respect to any Person, any accounts
payable or any Indebtedness or monetary obligation to trade creditors created,
assumed or Guaranteed by such Person arising in the ordinary course of business
of such Person in connection with the acquisition of goods or services.
"Trustee" initially means The Bank of New York and any other Person or
Persons appointed as such from time to time pursuant to Section 7.08, and,
subject to the provisions of Article VII, includes its or their successors and
assigns. If at any time there is more than one such Person, "Trustee" as used
with respect to the Debt Securities of any series shall mean the Trustee with
respect to the Debt Securities of that series.
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"Trust Indenture Act" (except as herein otherwise expressly provided)
means the Trust Indenture Act of 1939 as in force at the date of this Indenture
as originally executed and, to the extent required by law, as amended.
"United States" means the United States of America (including the
States and the District of Columbia), its territories, its possessions and
other areas subject to its jurisdiction.
"United States Alien" means any Person who, for United States Federal
income tax purposes, is a foreign corporation, a nonresident alien individual,
a nonresident alien fiduciary of a foreign estate or trust, or a foreign
partnership one or more members of which is, for United States Federal income
tax purposes, a foreign corporation, a nonresident alien individual or a
nonresident alien fiduciary of a foreign estate or trust.
"U.S. Government Obligations" means direct obligations (or
certificates representing an ownership interest in such obligations) of the
United States of America (including any agency or instrumentality thereof) for
the payment of which the full faith and credit of the United States of America
is pledged and which are not callable at the issuer's option.
"Volumetric Production Payments" means production payment obligations
recorded as deferred revenue in accordance with GAAP, together with all
undertakings and obligations in connection therewith.
"Yield to Maturity" means the yield to maturity, calculated at the
time of issuance of a series of Debt Securities, or, if applicable, at the most
recent redetermination of interest on such series and calculated in accordance
with accepted financial practice.
Section 1.02. INCORPORATION BY REFERENCE OF TRUST INDENTURE ACT.
This Indenture is subject to the mandatory provisions of the Trust Indenture
Act which are incorporated by reference in and made a part of this Indenture.
The following Trust Indenture Act terms have the following meanings:
"indenture securities" means the Debt Securities.
"indenture security holder" means a Holder.
"indenture to be qualified" means this Indenture.
"indenture trustee" or "institutional trustee" means the Trustee.
"obligor" on the indenture securities means the Company and any other
obligor on the Debt Securities.
All other Trust Indenture Act terms used in this Indenture that are
defined by the Trust Indenture Act, reference to another statute or defined by
rules of the Securities and Exchange Commission have the meanings assigned to
them by such definitions.
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Section 1.03. RULES OF CONSTRUCTION. Unless the context otherwise
requires:
(a) a term has the meaning assigned to it;
(b) an accounting term not otherwise defined has the
meaning assigned to it in accordance with GAAP;
(c) "or" is not exclusive;
(d) "including" means including without limitation;
(e) words in the singular include the plural and words in
the plural include the singular;
(f) if the applicable series of Debt Securities are
subordinated pursuant to Article XII, unsecured Indebtedness shall not be
deemed to be subordinate or junior to Secured Indebtedness merely by virtue of
its nature as unsecured Indebtedness;
(g) the principal amount of any noninterest bearing or
other discount security at any date shall be the principal amount thereof that
would be shown on a balance sheet of the issuer dated such date prepared in
accordance with GAAP; and
(h) the principal amount of any Preferred Stock shall be
the greater of (i) the maximum liquidation value of such Preferred Stock or
(ii) the maximum mandatory redemption or mandatory repurchase price with
respect to such Preferred Stock.
ARTICLE II
DEBT SECURITIES
Section 2.01. FORMS GENERALLY. The Debt Securities and Coupons, if
any, of each series shall be in substantially the form established without the
approval of any Holder by or pursuant to a resolution of the Board of Directors
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 the Company may deem appropriate (and, if not contained in a supplemental
Indenture entered into in accordance with Article IX, as are not prohibited by
the provisions of this Indenture) or as may be required or appropriate to
comply with any law or with any rules made pursuant thereto or with any rules
of any securities exchange on which such series of Debt Securities may be
listed, or to conform to general usage, or as may, consistently herewith, be
determined by the officers executing such Debt Securities and Coupons, as
evidenced by their execution of the Debt Securities and Coupons.
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The definitive Debt Securities of each series and Coupons, if any,
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
Debt Securities and Coupons, as evidenced by their execution of such Debt
Securities and Coupons.
Each Bearer Security and each Coupon shall bear a legend substantially
to the following effect: "Any United States Person who holds this obligation
will be subject to limitations under the United States Federal income tax laws,
including the limitations provided in Sections 165(j) and 1287(a) of the
Internal Revenue Code."
Section 2.02. FORM OF TRUSTEE'S CERTIFICATE OF AUTHENTICATION. The
Trustee's Certificate of Authentication on all Debt Securities authenticated by
the Trustee shall be in substantially the following form:
TRUSTEE'S CERTIFICATE OF AUTHENTICATION
This is one of the Debt Securities of the series designated therein
referred to in the within-mentioned Indenture.
Dated:
THE BANK OF NEW YORK,
As Trustee
By:
--------------------------------------
Authorized Signature
Section 2.03. PRINCIPAL AMOUNT; ISSUABLE IN SERIES. The aggregate
principal amount of Debt Securities which may be issued, executed,
authenticated, delivered and outstanding under this Indenture is unlimited.
The Debt Securities may be issued in one or more series. There shall
be established, without the approval of any Holders, in or pursuant to a
resolution of the Board of Directors and set forth in an Officers' Certificate,
or established in one or more Indentures supplemental hereto, prior to the
issuance of Debt Securities of any series any or all of the following:
(a) the title of the Debt Securities of the series (which
shall distinguish the Debt Securities of the series from all other Debt
Securities);
(b) any limit upon the aggregate principal amount of the
Debt Securities of the series which may be authenticated and delivered under
this Indenture (except for Debt Securities authenticated and delivered upon
registration of transfer of, or in exchange for, or in lieu of, other Debt
Securities of the series pursuant to this Article II);
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(c) the date or dates on which the principal and premium,
if any, of the Debt Securities of the series are payable;
(d) the rate or rates (which may be fixed or variable) at
which the Debt Securities of the series shall bear interest, if any, or the
method of determining such rate or rates, the date or dates from which such
interest shall accrue, the interest payment dates on which such interest shall
be payable, or the method by which such date will be determined, in the case of
Registered Securities, the record dates for the determination of Holders
thereof to whom such interest is payable; and the basis upon which interest
will be calculated if other than that of a 360-day year of twelve thirty-day
months;
(e) the place or places, if any, in addition to or
instead of the corporate trust office of the Trustee (in the case of Registered
Securities) or the principal London office of the Trustee (in the case of
Bearer Securities), where the principal of, and premium, if any, and interest
on, Debt Securities of the series shall be payable;
(f) the price or prices at which, the period or periods
within which and the terms and conditions upon which Debt Securities of the
series may be redeemed, in whole or in part, at the option of the Company or
otherwise;
(g) whether Debt Securities of the series are to be
issued as Registered Securities or Bearer Securities or both, and, if Bearer
Securities are to be issued, whether Coupons will be attached thereto, whether
Bearer Securities of the series may be exchanged for Registered Securities of
the series and the circumstances under which and the places at which any such
exchanges, if permitted, may be made;
(h) if any Debt Securities of the series are to be issued
as Bearer Securities or as one or more Global Securities representing
individual Bearer Securities of the series, (i) whether the provisions of
Sections 3.02 and 4.06 or other provisions for payment of additional interest
or tax redemptions shall apply and, if other provisions shall apply, such other
provisions; (ii) whether interest in respect of any portion of a temporary
Bearer Security of the series (delivered pursuant to Section 2.08) payable in
respect of any interest payment date prior to the exchange of such temporary
Bearer Security for definitive Bearer Securities of the series shall be paid to
any clearing organization with respect to the portion of such temporary Bearer
Security held for its account and, in such event, the terms and conditions
(including any certification requirements) upon which any such interest payment
received by a clearing organization will be credited to the Persons entitled to
interest payable on such interest payment date; and (iii) the terms upon which
a temporary Bearer Security may be exchanged for one or more definitive Bearer
Securities of the series;
(i) the obligation, if any, of the Company to redeem,
purchase or repay Debt Securities of the series pursuant to any sinking fund or
analogous provisions or at the option of a Holder thereof, and the price or
prices at which and the period or periods within which and the terms and
conditions upon which Debt Securities of the series shall be redeemed,
purchased or repaid, in whole or in part, pursuant to such obligations;
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(j) the terms, if any, upon which the Debt Securities of
the series may be convertible into or exchanged for Common Stock, Preferred
Stock (which may be represented by depositary shares), other Debt Securities or
warrants for Common Stock, Preferred Stock or Indebtedness or other securities
of any kind of the Company or any other obligor and the terms and conditions
upon which such conversion or exchange shall be effected, including the initial
conversion or exchange price or rate, the conversion or exchange period and any
other provision in addition to or in lieu of those described herein;
(k) if other than denominations of $1,000 and any
integral multiple thereof, the denominations in which Debt Securities of the
series shall be issuable;
(l) if the amount of principal of or any premium or
interest on Debt Securities of the series may be determined with reference to
an index or pursuant to a formula, the manner in which such amounts will be
determined;
(m) if the principal amount payable at the Stated
Maturity of Debt Securities of the series will not be determinable as of any
one or more dates prior to such Stated Maturity, the amount which will be
deemed to be such principal amount as of any such date for any purpose,
including the principal amount thereof which will be due and payable upon any
maturity other than the Stated Maturity or which will be deemed to be
Outstanding as of any such date (or, in any such case, the manner in which such
deemed principal amount is to be determined); and the manner of determining the
equivalent thereof in the currency of the United States of America for purposes
of the definition of Dollar Equivalent;
(n) any changes or additions to Article XI, including the
addition of additional covenants that may be subject to the covenant defeasance
option pursuant to Section 11.02(b)(ii);
(o) if other than such coin or Currency of the United
States as at the time of payment is legal tender for payment of public and
private debts, the coin or Currency or Currencies or units of two or more
Currencies in which payment of the principal of, and premium, if any, and
interest on, Debt Securities of the series shall be payable;
(p) if other than the principal amount thereof, the
portion of the principal amount of Debt Securities of the series which shall be
payable upon declaration of acceleration of the maturity thereof pursuant to
Section 6.01 or provable in bankruptcy pursuant to Section 6.02;
(q) the terms, if any, of the transfer, mortgage, pledge
or assignment as security for the Debt Securities of the series of any
properties, assets, moneys, proceeds, securities or other collateral, including
whether certain provisions of the Trust Indenture Act are applicable and any
corresponding changes to provisions of this Indenture as currently in effect;
(r) any addition to or change in the Events of Default
with respect to the Debt Securities of the series and any change in the right
of the Trustee or the Holders to declare the principal of, and premium and
interest on, such Debt Securities due and payable;
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(s) if the Debt Securities of the series shall be issued
in whole or in part in the form of a Global Security or Securities, the terms
and conditions, if any, upon which such Global Security or Securities may be
exchanged in whole or in part for other individual Debt Securities in
definitive registered form; and the Depositary for such Global Security or
Securities and the form of any legend or legends to be borne by any such Global
Security or Securities in addition to or in lieu of the legend referred to in
Section 2.15;
(t) any trustees, authenticating or paying agents,
transfer agents or registrars;
(u) the applicability of, and any addition to or change
in the covenants and definitions currently set forth in this Indenture or in
the terms currently set forth in Article X, including conditioning any merger,
conveyance, transfer or lease permitted by Article X upon the satisfaction of
an Indebtedness coverage standard by the Company and Successor Company (as
defined in Article X);
(v) the terms, if any, of any Guarantee of the payment of
principal of, and premium, if any, and interest on, Debt Securities of the
series and any corresponding changes to the provisions of this Indenture as
currently in effect;
(w) the subordination, if any, of the Debt Securities of
the series pursuant to Article XII and any changes or additions to Article XII;
(x) with regard to Debt Securities of the series that do
not bear interest, the dates for certain required reports to the Trustee; and
(y) any other terms of the Debt Securities of the series
(which terms shall not be prohibited by the provisions of this Indenture).
All Debt Securities of any one series and the Coupons, if any,
appertaining thereto shall be substantially identical except as to denomination
and except as may otherwise be provided in or pursuant to such resolution of
the Board of Directors and as set forth in such Officers' Certificate or in any
such Indenture supplemental hereto.
Section 2.04. EXECUTION OF DEBT SECURITIES. The Debt Securities
and the Coupons, if any, shall be signed on behalf of the Company by its
Chairman of the Board, its Vice Chairman, its President or a Vice President and
by its Secretary, an Assistant Secretary, a Treasurer or an Assistant
Treasurer. Such signatures upon the Debt Securities and Coupons may be the
manual or facsimile signatures of the present or any future such authorized
officers and may be imprinted or otherwise reproduced on the Debt Securities
and Coupons. The seal of the Company, if any, may be in the form of a
facsimile thereof and may be impressed, affixed, imprinted or otherwise
reproduced on the Debt Securities and Coupons.
Only such Debt Securities and Coupons as shall bear thereon a
certificate of authentication substantially in the form hereinbefore recited,
signed manually by the Trustee, shall be entitled to the benefits of this
Indenture or be valid or obligatory for any purpose. Such certificate by the
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Trustee upon any Debt Security or Coupon executed by the Company shall be
conclusive evidence that the Debt Security or Coupon so authenticated has been
duly authenticated and delivered hereunder.
In case any officer of the Company who shall have signed any of the
Debt Securities or Coupons shall cease to be such officer before the Debt
Securities or Coupons so signed shall have been authenticated and delivered by
the Trustee, or disposed of by the Company, such Debt Securities or Coupons
nevertheless may be authenticated and delivered or disposed of as though the
Person who signed such Debt Securities or Coupons had not ceased to be such
officer of the Company; and any Debt Security or Coupon may be signed on behalf
of the Company by such Persons as, at the actual date of the execution of such
Debt Security or Coupon, shall be the proper officers of the Company, although
at the date of such Debt Security or Coupon or of the execution of this
Indenture any such Person was not such officer.
Section 2.05. AUTHENTICATION AND DELIVERY OF DEBT SECURITIES. At
any time and from time to time after the execution and delivery of this
Indenture, the Company may deliver Debt Securities, with appropriate Coupons,
if any, of any series executed by the Company to the Trustee for
authentication, and the Trustee shall thereupon authenticate and deliver said
Debt Securities and Coupons to or upon a Company Order. In authenticating such
Debt Securities and Coupons, and accepting the additional responsibilities
under this Indenture in relation to such Debt Securities and Coupons, the
Trustee shall be entitled to receive, and (subject to Section 7.01) shall be
fully protected in relying upon:
(a) a copy of any resolution or resolutions of the Board
of Directors, certified by the Secretary or Assistant Secretary of the Company,
authorizing the terms of issuance of any series of Debt Securities and Coupons;
(b) an executed supplemental Indenture, if any;
(c) an Officers' Certificate; and
(d) an Opinion of Counsel prepared in accordance with
Section 13.05 which shall also state:
(i) that the form of such Debt Securities and
Coupons has been established by or pursuant to a resolution of the
Board of Directors or by a supplemental Indenture as permitted by
Section 2.01 in conformity with the provisions of this Indenture;
(ii) that the terms of such Debt Securities and
Coupons have been established by or pursuant to a resolution of the
Board of Directors or by a supplemental Indenture as permitted by
Section 2.03 in conformity with the provisions of this Indenture;
(iii) that such Debt Securities and Coupons, 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
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obligations of the Company, enforceable in accordance with their terms
except as (A) the enforceability thereof may be limited by bankruptcy,
insolvency or similar laws affecting the enforcement of creditors'
rights generally and (B) rights of acceleration and the availability
of equitable remedies may be limited by equitable principles of
general applicability;
(iv) that the Company has the corporate power to
issue such Debt Securities and Coupons and has duly taken all
necessary corporate action with respect to such issuance;
(v) that the issuance of such Debt Securities and
Coupons will not contravene the charter or by-laws of the Company or
result in any material violation of any of the terms or provisions of
any law or regulation or of any indenture, mortgage or other agreement
known to such counsel by which the Company is bound;
(vi) that authentication and delivery of such Debt
Securities and Coupons and the execution and delivery of any
supplemental Indenture will not violate the terms of this Indenture;
and
(vii) such other matters as the Trustee may
reasonably request.
Such Opinion of Counsel need express no opinion as to whether a court
in the United States would render a money judgment in a currency other than
that of the United States.
The Trustee shall have the right to decline to authenticate and
deliver any Debt Securities or Coupons under this Section 2.05 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 or trustees,
executive committee or a trust committee of directors, trustees or vice
presidents shall determine that such action would expose the Trustee to
personal liability to existing Holders.
The Trustee may appoint an authenticating agent reasonably acceptable
to the Company to authenticate Debt Securities and Coupons, if any, of any
series. Unless limited by the terms of such appointment, an authenticating
agent may authenticate Debt Securities whenever the Trustee may do so. Each
reference in this Indenture to authentication by the Trustee includes
authentication by such agent. An authenticating agent has the same rights as
any Registrar, paying agent or agent for service of notices and demands.
Unless otherwise provided in the form of Debt Security for any series,
each Debt Security shall be dated the date of its authentication.
Section 2.06. DENOMINATION OF DEBT SECURITIES. Unless otherwise
provided in the form of Debt Security for any series, the Debt Securities of
each series shall be issuable only as Registered Securities in such
denominations as shall be specified or contemplated by Section 2.03. In the
absence of any such specification with respect to the Debt Securities of any
series, the Debt Securities of such series shall be issuable in denominations
of $1,000 and any integral multiple thereof.
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Section 2.07. REGISTRATION OF TRANSFER AND EXCHANGE. (a) The
Company shall keep or cause to be kept a register for each series of Registered
Securities issued hereunder (hereinafter collectively referred to as the "Debt
Security Register"), in which, subject to such reasonable regulations as it may
prescribe, the Company shall provide for the registration of Registered
Securities and the transfer of Registered Securities as in this Article II
provided. At all reasonable times the Debt Security Register shall be open for
inspection by the Trustee. Subject to Section 2.15, upon due presentment for
registration of transfer of any Registered Security at any office or agency to
be maintained by the Company in accordance with the provisions of Section 4.02,
the Company shall execute and the Trustee shall authenticate and deliver in the
name of the transferee or transferees a new Registered Security or Registered
Securities of authorized denominations for a like aggregate principal amount.
In no event may Registered Securities, including Registered Securities received
in exchange for Bearer Securities, be exchanged for Bearer Securities.
Unless and until otherwise determined by the Company by resolution of
the Board of Directors, the register of the Company for the purpose of
registration, exchange or registration of transfer of the Registered Securities
shall be kept at the corporate trust office of the Trustee and, for this
purpose, the Trustee shall be designated "Registrar".
Registered Securities of any series (other than a Global Security,
except as set forth below) may be exchanged for a like aggregate principal
amount of Registered Securities of the same series of other authorized
denominations. Subject to Section 2.15, Registered Securities to be exchanged
shall be surrendered at the office or agency to be maintained by the Company as
provided in Section 4.02, and the Company shall execute and the Trustee shall
authenticate and deliver in exchange therefor the Registered Security or
Registered Securities which the Holder making the exchange shall be entitled to
receive.
At the option of the Holder of Bearer Securities of any series, except
as otherwise specified as contemplated by Section 2.03(h) or 2.03(s) with
respect to a Global Security representing Bearer Securities, Bearer Securities
of such series may be exchanged for Registered Securities (if the Debt
Securities of such series are issuable as Registered Securities) or Bearer
Securities of the same series, of any authorized denomination or denominations,
of like tenor and aggregate principal amount, upon surrender of the Bearer
Securities to be exchanged at the office or agency of the Company maintained
for such purpose, with all unmatured Coupons and all matured Coupons in Default
thereto appertaining; provided, however, that delivery of a Bearer Security
shall occur only outside the United States. If such Holder is unable to
produce any such unmatured Coupon or Coupons or matured Coupon or Coupons in
Default, such exchange may be effected if such Holder's Bearer Securities are
accompanied by payment in funds acceptable to the Company and the Trustee in an
amount equal to the face amount of such missing Coupon or Coupons, or the
surrender of such missing Coupon or Coupons may be waived by the Company and
the Trustee if there be furnished to them such security or indemnity as they
may require to save each of them and any paying agent harmless. If thereafter
such Holder shall surrender to any paying agent any such missing Coupon in
respect of which such a payment shall have been made, such Holder shall be
entitled to receive the amount of such payment; provided, however, that, except
as otherwise provided in Section 2.12, interest represented by Coupons shall be
payable only upon presentation and surrender of those Coupons at an office or
agency located outside the United States.
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Whenever any Debt Securities are so surrendered for exchange, the
Company shall execute, and the Trustee shall authenticate and deliver, the Debt
Securities that the Holder making the exchange is entitled to receive.
Notwithstanding the foregoing, the exchange of Bearer Securities for
Registered Securities will be subject to the provisions of United States income
tax laws and regulations applicable to Debt Securities in effect at the time of
such exchange.
(b) All Registered Securities presented or surrendered
for registration of transfer, exchange or payment shall (if so required by the
Company, the Trustee or the Registrar) be duly endorsed or be accompanied by a
written instrument or instruments of transfer, in form satisfactory to the
Company, the Trustee and the Registrar, duly executed by the Registered Holder
or his attorney duly authorized in writing.
All Debt Securities issued in exchange for or upon transfer of Debt
Securities shall be the valid obligations of the Company, evidencing the same
debt, and entitled to the same benefits under this Indenture as the Debt
Securities surrendered for such exchange or transfer.
No service charge shall be made for any exchange or registration of
transfer of Debt Securities (except as provided by Section 2.09), but the
Company may require payment of a sum sufficient to cover any tax, fee,
assessment or other governmental charge that may be imposed in relation
thereto, other than those expressly provided in this Indenture to be made at
the Company's own expense or without expense or without charge to the Holders.
The Company shall not be required (i) to issue, register the transfer
of or exchange any Debt Securities for a period of 15 days next preceding any
mailing of notice of redemption of Debt Securities of such series or (ii) to
register the transfer of or exchange any Debt Securities selected, called or
being called for redemption; provided, however, that, if specified pursuant to
Section 2.03, any Bearer Securities of any series that are exchangeable for
Registered Securities and that are called for redemption pursuant to Section
3.02 may, to the extent permitted by applicable law, be exchanged for one or
more Registered Securities of such series during the period preceding the
redemption date therefor.
Prior to the due presentation for registration of transfer of any Debt
Security, the Company, the Trustee, any paying agent or any Registrar may deem
and treat the Person in whose name a Debt Security is registered as the
absolute owner of such Debt Security for the purpose of receiving payment of
principal of, and premium, if any, and interest on, such Debt Security and for
all other purposes whatsoever, whether or not such Debt Security is overdue,
and none of the Company, the Trustee, any paying agent or Registrar shall be
affected by notice to the contrary.
None of the Company, the Trustee, any agent of the Trustee, any paying
agent or any Registrar will have any responsibility or liability for any aspect
of the records relating to, or payments made on account of, beneficial
ownership interests of a Global Security or for maintaining, supervising or
reviewing any records relating to such beneficial ownership interests.
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Section 2.08. TEMPORARY DEBT SECURITIES. Pending the preparation
of definitive Debt Securities of any series, the Company may execute and the
Trustee shall authenticate and deliver temporary Debt Securities (printed,
lithographed, photocopied, typewritten or otherwise produced) of any authorized
denomination, and substantially in the form of the definitive Debt Securities
in lieu of which they are issued, in registered form or, if authorized, in
bearer form with one or more Coupons or without Coupons, and with such
omissions, insertions and variations as may be appropriate for temporary Debt
Securities and Coupons, all as may be determined by the Company with the
concurrence of the Trustee. Temporary Debt Securities and Coupons may contain
such reference to any provisions of this Indenture as may be appropriate.
Every temporary Debt Security shall be executed by the Company and be
authenticated by the Trustee upon the same conditions and in substantially the
same manner, and with like effect, as the definitive Debt Securities.
If temporary Debt Securities of any series are issued, the Company
will cause definitive Debt Securities of such series to be prepared without
unreasonable delay. Except as otherwise specified as contemplated by Section
2.03(h)(iii) with respect to a series of Debt Securities issuable as Bearer
Securities or as one or more Global Securities representing individual Bearer
Securities of the series, (a) after the preparation of definitive Debt
Securities of such series, the temporary Debt Securities of such series shall
be exchangeable for definitive Debt Securities of such series upon surrender of
the temporary Debt Securities of such series at the office or agency of the
Company at a Place of Payment for such series, without charge to the Holder
thereof, except as provided in Section 2.07 in connection with a transfer and
except that a Person receiving definitive Bearer Securities shall bear the cost
of insurance, postage, transportation and the like unless otherwise specified
pursuant to Section 2.03, and (b) upon surrender for cancelation of any one or
more temporary Debt Securities of any series (accompanied by any unmatured
Coupons appertaining thereto), the Company shall execute and the Trustee shall
authenticate and deliver in exchange therefor a like principal amount of
definitive Debt Securities of the same series of authorized denominations and
of like tenor; provided, however, that no definitive Bearer Security shall be
delivered in exchange for a temporary Registered Security; and provided,
further, however, that delivery of a Global Security representing individual
Bearer Securities or a Bearer Security shall occur only outside the United
States. Until so exchanged, temporary Debt Securities of any series shall in
all respects be entitled to the same benefits under this Indenture as
definitive Debt Securities of such series, except as otherwise specified as
contemplated by Section 2.03(h)(ii) with respect to the payment of interest on
Global Securities in temporary form.
Unless otherwise specified pursuant to Section 2.03, the Company will
execute and deliver each definitive Global Security representing individual
Bearer Securities and each Bearer Security to the Trustee at its principal
office in London or such other place outside the United States specified
pursuant to Section 2.03.
Upon any exchange of a portion of a temporary Global Security for a
definitive Global Security or for the individual Debt Securities represented
thereby pursuant to Section 2.07 or this Section 2.08, the temporary Global
Security shall be endorsed by the Trustee to reflect the reduction of the
principal amount evidenced thereby, whereupon the principal amount of such
temporary Global Security shall be reduced for all purposes by the amount to be
exchanged and endorsed.
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Section 2.09. MUTILATED, DESTROYED, LOST OR STOLEN DEBT SECURITIES.
If (a) any mutilated Debt Security or any mutilated Coupon with the Coupon
Security to which it appertains (and all unmatured Coupons attached thereto) is
surrendered to the Trustee at its corporate trust office (in the case of
Registered Securities) or at its principal London office (in the case of Bearer
Securities) or (b) the Company and the Trustee receive evidence to their
satisfaction of the destruction, loss or theft of any Debt Security or any
Coupon, and there is delivered to the Company and the Trustee such security or
indemnity as may be required by them to save each of them and any paying agent
harmless, and neither the Company nor the Trustee receives notice that such
Debt Security or Coupon has been acquired by a bona fide purchaser, then the
Company shall execute and, upon a Company Order, the Trustee shall authenticate
and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost
or stolen Debt Security or in exchange for the Coupon Security to which such
mutilated, destroyed, lost or stolen Coupon appertained, a new Debt Security of
the same series of like tenor, form, terms and principal amount, bearing a
number not contemporaneously Outstanding, and, in the case of a Coupon
Security, with such Coupons attached thereto that neither gain nor loss in
interest shall result from such exchange or substitution. Upon the issuance of
any substituted Debt Security, the Company may require the payment of a sum
sufficient to cover any tax, fee, assessment or other governmental charge that
may be imposed in relation thereto and any other expenses connected therewith.
In case any Debt Security or Coupon which has matured or is about to mature or
which has been called for redemption shall become mutilated or be destroyed,
lost or stolen, the Company may, instead of issuing a substituted Debt Security
or Coupon, pay or authorize the payment of the same (without surrender thereof
except in the case of a mutilated Debt Security or Coupon) if the applicant for
such payment shall furnish the Company and the Trustee with such security or
indemnity as either may require to save it harmless from all risk, however
remote, and, in case of destruction, loss or theft, evidence to the
satisfaction of the Company and the Trustee of the destruction, loss or theft
of such Debt Security or Coupon and of the ownership thereof; provided,
however, that payment of principal of, and premium, if any, and interest on,
Bearer Securities or Coupons shall, except as otherwise provided in Section
2.12, be payable only at an office or agency located outside the United States.
Every substituted Debt Security of any series, with its Coupons, if
any, issued pursuant to the provisions of this Section 2.09 by virtue of the
fact that any Debt Security or Coupon is destroyed, lost or stolen shall
constitute an original additional contractual obligation of the Company,
whether or not the destroyed, lost or stolen Debt Security or Coupon shall be
found at any time, and shall be entitled to all the benefits of this Indenture
equally and proportionately with any and all other Debt Securities of that
series and Coupons, if any, duly issued hereunder. All Debt Securities and
Coupons, if any, shall be held and owned upon the express condition that the
foregoing provisions are exclusive with respect to the replacement or payment
of mutilated, destroyed, lost or stolen Debt Securities or Coupons, and shall
preclude any and all other rights or remedies, notwithstanding any law or
statute existing or hereafter enacted to the contrary with respect to the
replacement or payment of negotiable instruments or other securities without
their surrender.
Section 2.10. CANCELATION OF SURRENDERED DEBT SECURITIES. All Debt
Securities surrendered for payment, redemption, registration of transfer or
exchange and all Coupons surrendered for payment or exchange shall, if
surrendered to the Company or any paying agent or a Registrar, be delivered to
the Trustee for cancelation by it, or if surrendered to the Trustee, shall
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be canceled by it, and no Debt Securities or Coupons shall be issued in lieu
thereof except as expressly permitted by any of the provisions of this
Indenture. All canceled Debt Securities and Coupons held by the Trustee shall
be destroyed (subject to the record retention requirements of the Exchange Act)
and certification of their destruction delivered to the Company, unless
otherwise directed. On request of the Company, the Trustee shall deliver to
the Company canceled Debt Securities and Coupons held by the Trustee. If the
Company shall acquire any of the Debt Securities or Coupons, however, such
acquisition shall not operate as a redemption or satisfaction of the
indebtedness represented thereby unless and until the same are delivered or
surrendered to the Trustee for cancelation. The Company may not issue new Debt
Securities or Coupons to replace Debt Securities or Coupons it has redeemed,
paid or delivered to the Trustee for cancelation.
Section 2.11. PROVISIONS OF THE INDENTURE AND DEBT SECURITIES FOR
THE SOLE BENEFIT OF THE PARTIES AND THE HOLDERS. Nothing in this Indenture or
in the Debt Securities or Coupons, expressed or implied, shall give or be
construed to give to any Person, other than the parties hereto, the Holders or
any Registrar or paying agent, any legal or equitable right, remedy or claim
under or in respect of this Indenture, or under any covenant, condition or
provision herein contained; all its covenants, conditions and provisions being
for the sole benefit of the parties hereto, the Holders and any Registrar and
paying agents.
Section 2.12. PAYMENT OF INTEREST; INTEREST RIGHTS PRESERVED. (a)
Interest on any Registered Security that is payable and is punctually paid or
duly provided for on any interest payment date shall be paid to the Person in
whose name such Registered Security is registered at the close of business on
the regular record date for such interest notwithstanding the cancelation of
such Registered Security upon any transfer or exchange subsequent to the
regular record date. In case a Coupon Security of any series is surrendered in
exchange for a Registered Security of such series after the close of business
(at an office or agency in a Place of Payment for such series) on any regular
record date and before the opening of business (at such office or agency) on
the next succeeding interest payment date, such Coupon Security shall be
surrendered without the Coupon relating to such interest payment date and
interest will not be payable on such interest payment date in respect of the
Registered Security issued in exchange for such Coupon Security, but will be
payable only to the Holder of such Coupon when due in accordance with the
provisions of this Indenture. Payment of interest on Registered Securities
shall be made at the corporate trust office of the Trustee (except as otherwise
specified pursuant to Section 2.03), or at the option of the Company, by check
mailed to the address of the Person entitled thereto as such address shall
appear in the Debt Security Register or, if provided pursuant to Section 2.03
and in accordance with arrangements satisfactory to the Trustee, at the option
of the Registered Holder by wire transfer to an account designated by the
Registered Holder.
(b) No interest shall be payable with respect to a Bearer
Security or Coupon unless such certification requirements as are specified
pursuant to Section 2.03(h)(iii) are satisfied with respect to such Bearer
Security or Coupon. Interest on any Coupon Security that is payable and is
punctually paid or duly provided for on any interest payment date shall be paid
to the Holder of the Coupon that has matured on such interest payment date upon
surrender of such Coupon on such interest payment date at the principal London
office of the Trustee or at such other Place of Payment outside the United
States specified pursuant to Section 2.03.
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Interest on any Bearer Security (other than a Coupon Security) that is
payable and is punctually paid or duly provided for on any interest payment
date shall be paid to the Holder of the Bearer Security upon presentation of
such Bearer Security and notation thereon on such interest payment date at the
principal London office of the Trustee or at such other Place of Payment
outside the United States specified pursuant to Section 2.03.
Unless otherwise specified pursuant to Section 2.03, at the direction
of the Holder of any Bearer Security or Coupon payable in Dollars, and subject
to applicable laws and regulations, payments in respect of such Bearer Security
or Coupon will be made by check drawn on a bank in New York, New York, or, in
accordance with arrangements satisfactory to the Trustee, by wire transfer to a
Dollar account maintained by such Holder with a bank outside the United States.
If such payment at the offices of all paying agents outside the United States
becomes illegal or is effectively precluded because of the imposition of
exchange controls or similar restrictions on the full payment or receipt of
such amounts in Dollars, then, to the extent permitted by United States tax
law, the Company will appoint an office or agent in the United States at which
such payment may be made. Unless otherwise specified pursuant to Section 2.03,
at the direction of the Holder of any Bearer Security or Coupon payable in a
Foreign Currency, payment on such Bearer Security or Coupon will be made by a
check drawn on a bank outside the United States or, in accordance with
arrangements satisfactory to the Trustee, by wire transfer to an appropriate
account maintained by such Holder outside the United States. Except as
provided in this paragraph, no payment on any Bearer Security or Coupon will be
made by mail to an address in the United States or by transfer to an account in
the United States.
(c) Subject to the foregoing provisions of this Section
2.12 and Section 2.17, each Debt Security of a particular series delivered
under this Indenture upon registration of transfer of or in exchange for or in
lieu of any other Debt Security of the same series shall carry the rights to
interest accrued and unpaid, and to accrue, which were carried by such other
Debt Security.
Section 2.13. SECURITIES DENOMINATED IN FOREIGN CURRENCIES. (a)
Except as otherwise specified pursuant to Section 2.03 for Bearer Securities of
any series, payment of the principal of, and premium, if any, and interest on,
Bearer Securities of such series denominated in any Currency will be made in
such Currency.
(b) Except as otherwise specified pursuant to Section
2.03 for Registered Securities of any series, payment of the principal of, and
premium, if any, and interest on, Registered Securities of such series will be
made in Dollars.
(c) For the purposes of calculating the principal amount
of Debt Securities of any series denominated in a Foreign Currency or in units
of two or more Foreign Currencies (including European Currency Units) for any
purpose under this Indenture, the principal amount of such Debt Securities at
any time Outstanding shall be deemed to be the Dollar Equivalent of such
principal amount as of the date of any such calculation.
In the event any Foreign Currency or currencies or units of two or
more Currencies in which any payment with respect to any series of Debt
Securities may be made ceases to be a freely
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convertible Currency on United States Currency markets, for any date thereafter
on which payment of principal of, or premium, if any, or interest on, the Debt
Securities of a series is due, the Company shall select the Currency of payment
for use on such date, all as provided in the Debt Securities of such series.
In such event, the Company shall, as provided in the Debt Securities of such
series, notify the Trustee of the Currency which it has selected to constitute
the funds necessary to meet the Company's obligations on such payment date and
of the amount of such Currency to be paid. Such amount shall be determined as
provided in the Debt Securities of such series. The payment to the Trustee
with respect to such payment date shall be made by the Company solely in the
Currency so selected.
Section 2.14. WIRE TRANSFERS. Notwithstanding any other provision
to the contrary in this Indenture, the Company may make any payment of monies
required to be deposited with the Trustee on account of principal of, or
premium, if any, or interest on, the Debt Securities (whether pursuant to
optional or mandatory redemption payments, interest payments or otherwise) by
wire transfer in immediately available funds to an account designated by the
Trustee on or before the date such moneys are to be paid to the Holders of the
Debt Securities in accordance with the terms hereof.
Section 2.15. SECURITIES ISSUABLE IN THE FORM OF A GLOBAL SECURITY.
(a) If the Company shall establish pursuant to Sections 2.01 and 2.03 that the
Debt Securities of a particular series are to be issued in whole or in part in
the form of one or more Global Securities, then the Company shall execute and
the Trustee or its agent shall, in accordance with Section 2.05, authenticate
and deliver, such Global Security or Securities, which (i) shall represent, and
shall be denominated in an amount equal to the aggregate principal amount of,
the Outstanding Debt Securities of such series to be represented by such Global
Security or Securities, or such portion thereof as the Company shall specify in
an Officer's Certificate, (ii) shall be registered in the name of the
Depositary for such Global Security or Securities or its nominee, (iii) shall
be delivered by the Trustee or its agent to the Depositary or pursuant to the
Depositary's instruction and (iv) shall bear a legend substantially to the
following effect: 'UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITARY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"),
NEW YORK, NEW YORK, TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF
CEDE & CO. OR SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE
OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO., OR TO SUCH OTHER ENTITY AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC) ANY TRANSFER, PLEDGE OR OTHER
USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS
THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.
TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN
WHOLE, BUT NOT IN PART, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH
SUCCESSOR'S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE
LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE
INDENTURE REFERRED TO ON THE REVERSE
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HEREOF', or such other legend as may then be required by the Depositary for
such Global Security or Securities.
(b) Notwithstanding any other provision of this Section
2.15 or of Section 2.07 to the contrary, and subject to the provisions of
paragraph (c) below, unless the terms of a Global Security expressly permit
such Global Security to be exchanged in whole or in part for definitive Debt
Securities in registered form, a Global Security may be transferred, in whole
but not in part and in the manner provided in Section 2.07, only by the
Depositary to a nominee of the Depositary for such Global Security, or by a
nominee of the Depositary to the Depositary or another nominee of the
Depositary, or by the Depositary or a nominee of the Depositary to a successor
Depositary for such Global Security selected or approved by the Company, or to
a nominee of such successor Depositary.
(c) (i) If at any time the Depositary for a Global
Security or Securities notifies the Company that it is unwilling or
unable to continue as Depositary for such Global Security or
Securities or if at any time the Depositary for the Debt Securities
for such series shall no longer be eligible or in good standing under
the Exchange Act or other applicable statute, rule or regulation, the
Company shall appoint a successor Depositary with respect to such
Global Security or Securities. If a successor Depositary for such
Global Security or Securities is not appointed by the Company within
90 days after the Company receives such notice or becomes aware of
such ineligibility, the Company shall execute, and the Trustee or its
agent, upon receipt of a Company Order for the authentication and
delivery of such individual Debt Securities of such series in exchange
for such Global Security, will authenticate and deliver, individual
Debt Securities of such series of like tenor and terms in definitive
form in an aggregate principal amount equal to the principal amount of
the Global Security in exchange for such Global Security or
Securities.
(ii) The Company may at any time and in its sole
discretion determine that the Debt Securities of any series or portion
thereof issued or issuable in the form of one or more Global
Securities shall no longer be represented by such Global Security or
Securities. In such event the Company will execute, and the Trustee,
upon receipt of a Company Order for the authentication and delivery of
individual Debt Securities of such series in exchange in whole or in
part for such Global Security, will authenticate and deliver
individual Debt Securities of such series of like tenor and terms in
definitive form in an aggregate principal amount equal to the
principal amount of such series or portion thereof in exchange for
such Global Security or Securities.
(iii) If specified by the Company pursuant to
Sections 2.01 and 2.03 with respect to Debt Securities issued or
issuable in the form of a Global Security, the Depositary for such
Global Security may surrender such Global Security in exchange in
whole or in part for individual Debt Securities of such series of like
tenor and terms in definitive form on such terms as are acceptable to
the Company, the Trustee and such Depositary. Thereupon the Company
shall execute, and the Trustee or its agent upon receipt of a Company
Order for the authentication and delivery of definitive Debt
Securities of such series shall authenticate and deliver, without
service charge, (A) to each Person specified by such Depositary a new
Debt Security or Securities of the same series of like tenor and terms
and
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of any authorized denomination as requested by such Person in
aggregate principal amount equal to and in exchange for such Person's
beneficial interest in the Global Security; and (B) to such Depositary
a new Global Security of like tenor and terms and in an authorized
denomination equal to the difference, if any, between the principal
amount of the surrendered Global Security and the aggregate principal
amount of Debt Securities delivered to Holders thereof.
(iv) In any exchange provided for in any of the
preceding three paragraphs, the Company will execute and the Trustee
or its agent will authenticate and deliver individual Debt Securities.
In case a Coupon Security of any series is surrendered in exchange for
a Registered Security of such series after the close of business (at
an office or agency in a Place of Payment for such series) on any
special record date and before the opening of business (at such office
or agency) on the related proposed date of payment of Defaulted
Interest, such Coupon Security shall be surrendered without the Coupon
relating to such proposed date of payment and Defaulted Interest will
not be payable on such proposed date of payment in respect of the
Registered Security issued in exchange for such Coupon Security, but
will be payable only to the Holder of such Coupon when due in
accordance with the provisions of this Indenture. Upon the exchange
of the entire principal amount of a Global Security for individual
Debt Securities, such Global Security shall be canceled by the Trustee
or its agent. Except as provided in the preceding paragraph,
Registered Securities issued in exchange for a Global Security
pursuant to this Section 2.15 shall be registered in such names and in
such authorized denominations as the Depositary for such Global
Security, pursuant to instructions from its direct or indirect
participants or otherwise, shall instruct the Trustee or the
Registrar. The Trustee or the Registrar shall deliver such Registered
Securities to the Persons in whose names such Registered Securities
are so registered.
(v) Payments in respect of the principal of and
interest on any Debt Securities registered in the name of the
Depositary or its nominee will be payable to the Depositary or such
nominee in its capacity as the registered owner of such Global
Security. The Company and the Trustee may treat the Person in whose
name the Debt Securities, including the Global Security, are
registered as the owner thereof for the purpose of receiving such
payments and for any and all other purposes whatsoever. None of the
Company, the Trustee, any Registrar, the paying agent or any agent of
the Company or the Trustee will have any responsibility or liability
for (A) any aspect of the records relating to or payments made on
account of the beneficial ownership interests of the Global Security
by the Depositary or its nominee or any of the Depositary's direct or
indirect participants, or for maintaining, supervising or reviewing
any records of the Depositary, its nominee or any of its direct or
indirect participants relating to the beneficial ownership interests
of the Global Security, (B) the payments to the beneficial owners of
the Global Security of amounts paid to the Depositary or its nominee,
or (C) any other matter relating to the actions and practices of the
Depositary, its nominee or any of its direct or indirect participants.
None of the Company, the Trustee or any such agent will be liable for
any delay by the Depositary, its nominee, or any of its direct or
indirect participants in identifying the beneficial owners of the Debt
Securities, and the Company and the Trustee may conclusively rely on,
and will be protected
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in relying on, instructions from the Depositary or its nominee for all
purposes (including with respect to the registration and delivery, and
the respective principal amounts, of the Debt Securities to be
issued).
The Trustee shall deliver individual Bearer Securities issued in
exchange for a Global Security pursuant to this Section 2.15 to the Persons and
in such authorized denominations as the Depositary for such Global Security,
pursuant to instructions from its direct or indirect participants or otherwise,
shall instruct the Trustee; provided, however, that individual Bearer
Securities shall be delivered in exchange for a Global Security only in
accordance with the procedures as may be specified pursuant to Section 2.03.
Notwithstanding the foregoing, the exchange of Bearer Securities for
Registered Securities will be subject to the provisions of United States income
tax laws and regulations applicable to debt Securities in effect at the time of
such exchange.
Section 2.16. MEDIUM TERM SECURITIES. Notwithstanding any contrary
provision herein, if all Debt Securities of a series are not to be originally
issued at one time, it shall not be necessary for the Company to deliver to the
Trustee an Officers' Certificate, resolutions of the Board of Directors,
supplemental Indenture, Opinion of Counsel or written order or any other
document otherwise required pursuant to Section 2.01, 2.03, 2.05 or 13.05 at or
prior to the time of authentication of each Debt Security of such series if
such documents are delivered to the Trustee or its agent at or prior to the
authentication upon original issuance of the first such Debt Security of such
series to be issued; provided, that any subsequent request by the Company to
the Trustee to authenticate Debt Securities of such series upon original
issuance shall constitute a representation and warranty by the Company that, as
of the date of such request, the statements made in the Officers' Certificate
delivered pursuant to Section 2.05 or 13.05 shall be true and correct as if
made on such date and that the Opinion of Counsel delivered at or prior to such
time of authentication of an original issuance of Debt Securities shall
specifically state that it shall relate to all subsequent issuances of Debt
Securities of such series that are identical to the Debt Securities issued in
the first issuance of Debt Securities of such series.
A Company Order delivered by the Company to the Trustee in the
circumstances set forth in the preceding paragraph, may provide that Debt
Securities which are the subject thereof will be authenticated and delivered by
the Trustee or its agent on original issue from time to time upon the
telephonic or written order of Persons designated in such written order (any
such telephonic instructions to be promptly confirmed in writing by such
Person) and that such Persons are authorized to determine, consistent with the
Officers' Certificate, supplemental Indenture or resolution of the Board of
Directors relating to such written order, such terms and conditions of such
Debt Securities as are specified in such Officers' Certificate, supplemental
Indenture or such resolution.
Section 2.17. DEFAULTED INTEREST. (a) Any interest on any Debt
Security of a particular series which is payable, but is not punctually paid or
duly provided for, on the dates and in the manner provided in the Debt
Securities of such series and in this Indenture (herein called "Defaulted
Interest") shall, if such Debt Security is a Registered Security, forthwith
cease to be payable to the
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Registered Holder thereof on the relevant record date by virtue of having been
such Registered Holder, and such Defaulted Interest (plus interest on such
Defaulted Interest to the extent lawful) may be paid by the Company, at its
election in each case, as provided in clause (i) or (ii) below:
(i) The Company may elect to make payment of any
Defaulted Interest to the Persons in whose names the Registered
Securities of such series 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 promptly
notify the Trustee in writing of the amount of Defaulted Interest
proposed to be paid on each such Registered Security of such series
and the date of the proposed payment, and at the same time the Company
shall deposit with the Trustee an amount of money equal to the
aggregate amount proposed to be paid in respect of such Defaulted
Interest or shall make arrangements satisfactory to the Trustee for
such deposit prior to the date of the proposed payment, such money
when deposited to be held in trust for the benefit of the Persons
entitled to such Defaulted Interest as 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 10 days after the receipt by the Trustee of the notice
of the proposed payment. The Trustee shall promptly notify the
Company of such special record date and, in the name and at the
expense of the Company, shall cause notice of the proposed payment of
such Defaulted Interest and the special record date therefor to be
mailed, first class postage pre-paid, to each Holder thereof at its
address as it appears in the Security Register, not less than 10 days
prior to such special record date. Notice of the proposed payment of
such Defaulted Interest and the special record date therefor having
been so mailed, such Defaulted Interest shall be paid to the Persons
in whose names the Registered Securities of such series are registered
at the close of business on such special record date. In case a
Coupon Security of any such series is surrendered in exchange for a
Registered Security of such series after the close of business (at an
office or agency in a Place of Payment for such series) on any special
record date and before the opening of business (at such office or
agency) on the related proposed date of payment of Defaulted Interest,
such Coupon Security shall be surrendered without the Coupon relating
to such proposed date of payment and Defaulted Interest will not be
payable on such proposed date of payment in respect of the Registered
Security issued in exchange for such Coupon Security, but will be
payable only to the Holder of such Coupon when due in accordance with
the provisions of this Indenture.
(ii) The Company may make payment of any Defaulted
Interest on the Registered Securities of such series in any other
lawful manner not inconsistent with the requirements of any securities
exchange on which the Registered Securities of such series 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.
(b) Any Defaulted Interest payable in respect of Bearer
Securities of any series shall be payable pursuant to such procedures as may be
satisfactory to the Trustee in such manner that there is no discrimination
between the Holders of Registered Securities (if any) and Bearer
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Securities of such series, and notice of the payment date therefor shall be
given by the Trustee, in the name and at the expense of the Company, in the
manner provided in Section 13.03 not more than 25 days and not less than 20
days prior to the date of the proposed payment.
Section 2.18. JUDGMENTS. The Company may provide pursuant to
Section 2.03 for Debt Securities of any series that (a) the obligation, if any,
of the Company to pay the principal of, and premium, if any, and interest on,
the Debt Securities of any series in a Foreign Currency or Dollars (the
"Designated Currency") as may be specified pursuant to Section 2.03 is of the
essence and agrees that, to the fullest extent possible under applicable law,
judgments in respect of Debt Securities of such series shall be given in the
Designated Currency; (b) the obligation of the Company to make payments in the
Designated Currency of the principal of, and premium, if any, and interest on,
such Debt Securities shall, notwithstanding any payment in any other Currency
(whether pursuant to a judgment or otherwise), be discharged only to the extent
of the amount in the Designated Currency that the Holder receiving such payment
may, in accordance with normal banking procedures, purchase with the sum paid
in such other Currency (after any premium and cost of exchange) on the business
day in the country of issue of the Designated Currency or in the international
banking community (in the case of a composite currency) immediately following
the day on which such Holder receives such payment; (c) if the amount in the
Designated Currency that may be so purchased for any reason falls short of the
amount originally due, the Company shall pay such additional amounts as may be
necessary to compensate for such shortfall; and (d) any obligation of the
Company not discharged by such payment shall be due as a separate and
independent obligation and, until discharged as provided herein, shall continue
in full force and effect.
Section 2.19. CUSIP NUMBERS. The Company in issuing the Securities
may use "CUSIP" numbers (if then generally in use), and, if so, the Trustee
shall use "CUSIP" numbers in notices of redemption as a convenience to Holders;
provided that any such notice may state that no representation is made as to
the accuracy of such numbers either as printed on the Securities or as
contained in any notice of a redemption and that reliance may be placed only on
the other identification numbers printed on the Securities, and any such
redemption shall not be affected by any defect in or omission of such numbers.
The Company will promptly notify the Trustee of any change in the "CUSIP"
numbers.
ARTICLE III
REDEMPTION OF DEBT SECURITIES
Section 3.01. APPLICABILITY OF ARTICLE. The provisions of this
Article shall be applicable to the Debt Securities of any series which are
redeemable before their Stated Maturity except as otherwise specified as
contemplated by Section 2.03 for Debt Securities of such series.
Section 3.02. TAX REDEMPTION; SPECIAL TAX REDEMPTION. (a) Unless
otherwise specified pursuant to Section 2.03, Bearer Securities of any series
may be redeemed at the option of the Company in whole, but not in part, at any
time, on giving not less than 30 or more than 60 days' notice in accordance
with Section 3.03 (which notice shall be irrevocable), at the redemption price
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thereof (calculated without premium), if the Company has or will become
obligated to pay additional interest on such Bearer Securities pursuant to
Section 4.06 as a result of any change in, or amendment to, the laws (or any
regulations or rulings promulgated thereunder) of the United States or any
political subdivision or taxing authority thereof or therein, or any change in
the application or official interpretation of such laws, regulations or
rulings, which change or amendment becomes effective on or after the date on
which any Person (including any Person acting as underwriter, broker or dealer)
agrees to purchase any of such Bearer Securities pursuant to their original
issuance, and such obligation cannot be avoided by the Company taking
reasonable measures available to it; provided, that no such notice of
redemption shall be given earlier than 90 days prior to the earliest date on
which the Company would be obligated to pay such additional interest were a
payment in respect of the Bearer Securities of that series then due. Prior to
the publication of any notice of redemption pursuant to this Section 3.02(a),
the Company shall deliver to the Trustee (i) an Officers' Certificate stating
that the Company is entitled to effect such redemption and setting forth a
statement of facts showing that the conditions precedent to the right of the
Company so to redeem have occurred and (ii) an Opinion of Counsel to the effect
that the Company has or will become obligated to pay such additional interest
as a result of such change or amendment.
(b) Unless otherwise specified pursuant to Section 2.03,
if the Company shall determine that any payment made outside the United States
by the Company or any of its paying agents in respect of any Bearer Security or
Coupon would, under any present or future laws or regulations of the United
States, be subject to any certification, documentation, information or other
reporting requirement of any kind, the effect of which requirement is the
disclosure to the Company, any paying agent or any governmental authority of
the nationality, residence or identity of a beneficial owner of such Bearer
Security or Coupon that is a United States Alien (other than such a requirement
(i) that would not be applicable to a payment made by the Company or any one of
its paying agents (A) directly to the beneficial owner or (B) to a custodian,
nominee or other agent of the beneficial owner, or (ii) that can be satisfied
by such custodian, nominee or other agent certifying to the effect that the
beneficial owner is a United States Alien; provided, that, in any case referred
to in clause (i)(B) or (ii), payment by the custodian, nominee or agent to the
beneficial owner is not otherwise subject to any such requirement), then the
Company shall elect either (A) to redeem such Bearer Security or Coupon in
whole, but not in part, at the redemption price thereof (calculated without
premium) or (B) if the conditions of the next succeeding paragraph are
satisfied, to pay the additional interest specified in such paragraph. The
Company shall make such determination as soon as practicable and publish prompt
notice thereof (the "Determination Notice"), stating the effective date of such
certification, documentation, information or other reporting requirement,
whether the Company elects to redeem the Bearer Security or Coupon or to pay
the additional interest specified in the next succeeding paragraph and (if
applicable) the last date by which the redemption of the Bearer Security or
Coupon must take place, as provided in the next succeeding sentence. If any
Bearer Security or Coupon is to be redeemed pursuant to this paragraph, the
redemption shall take place on such date, not later than one year after the
publication of the Determination Notice, as the Company shall specify by notice
given to the Trustee at least 60 days before the redemption date. Notice of
such redemption shall be given by the Company to the Holders of the Bearer
Security or Coupon not more than 60 days or less than 30 days prior to the
redemption date. Notwithstanding the foregoing, the Company shall not so
redeem the Bearer Security or Coupon if the Company shall subsequently
determine, not less than 30 days prior to the redemption date, that subsequent
payments
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on the Bearer Security or Coupon would not be subject to any such
certification, documentation, information or other reporting requirement, in
which case the Company shall publish prompt notice of such subsequent
determination, and any earlier redemption notice given pursuant to this
paragraph shall be revoked and of no further effect. Prior to the publication
of any Determination Notice pursuant to this paragraph, the Company shall
deliver to the Trustee (1) an Officers' Certificate stating that the Company is
entitled to make such determination and setting forth a statement of facts
showing that the conditions precedent to the obligation of the Company to
redeem the Bearer Security or Coupon or to pay the additional interest
specified in the next succeeding paragraph have occurred and (2) an Opinion of
Counsel to the effect that such conditions have occurred.
If and so long as the certification, documentation, information or
other reporting requirement referred to in the preceding paragraph would be
fully satisfied by payment of a backup withholding tax or similar charge, the
Company may elect to pay as additional interest such amounts as may be
necessary so that every net payment made outside the United States following
the effective date of such requirement by the Company or any of its paying
agents in respect of any Bearer Security or Coupon of which the beneficial
owner is a United States Alien (but without any requirement that the
nationality, residence or identity of such beneficial owner be disclosed to the
Company, any paying agent or any governmental authority), after deduction or
withholding for or on account of such backup withholding tax or similar charge
that (x) would not be applicable in the circumstances referred to in the
parenthetical clause of the first sentence of the preceding paragraph or (y) is
imposed as a result of presentation of any such Bearer Security or Coupon for
payment more than 15 days after the date on which such payment became due and
payable or on which payment thereof was duly provided for, whichever occurred
later), will not be less than the amount provided in any such Bearer Security
or Coupon to be then due and payable. If the Company elects to pay additional
interest pursuant to this paragraph, the Company shall have the right to redeem
the Bearer Security or Coupon at any time in whole, but not in part, at the
redemption price thereof (calculated without premium), subject to the
provisions of the last three sentences of the immediately preceding paragraph.
If the Company elects to pay additional interest pursuant to this paragraph and
the condition specified in the first sentence of this paragraph should no
longer be satisfied, then the Company shall redeem the Bearer Security or
Coupon in whole, but not in part, at the redemption price thereof (calculated
without premium), subject to the provisions of the last three sentences of the
immediately preceding paragraph. Any redemption payments made by the Company
pursuant to the two immediately preceding sentences shall be subject to the
continuing obligation of the Company to pay additional interest pursuant to
this paragraph. If the Company elects to, or is required to, redeem the Bearer
Security or Coupon pursuant to this paragraph, it shall publish prompt notice
thereof. If the Bearer Security or Coupon is to be redeemed pursuant to this
paragraph, the redemption shall take place on such date, not later than one
year after publication of the notice of redemption, as the Company shall
specify by notice to the Trustee at least 60 days prior to the redemption date.
Section 3.03. NOTICE OF REDEMPTION; SELECTION OF DEBT SECURITIES.
In case the Company shall desire to exercise the right to redeem all or, as the
case may be, any part of the Debt Securities of any series in accordance with
their terms, a resolution of the Board of Directors of the Company or a
supplemental Indenture, the Company shall fix a date for redemption and shall
give notice of such redemption at least 30 and not more than 60 days prior to
the date fixed for redemption to the
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Holders of Debt Securities of such series so to be redeemed as a whole or in
part, in the manner provided in Section 13.03. The notice if given in the
manner herein provided shall be conclusively presumed to have been duly given,
whether or not the Holder receives such notice. In any case, failure to give
such notice or any defect in the notice to the Holder of any Debt Security of a
series designated for redemption as a whole or in part shall not affect the
validity of the proceedings for the redemption of any other Debt Security of
such series.
Each such notice of redemption shall specify the date fixed for
redemption, the redemption price at which Debt Securities of such series are to
be redeemed, the Place or Places of Payment that payment will be made upon
presentation and surrender of such Debt Securities, that any interest accrued
to the date fixed for redemption will be paid as specified in said notice, that
the redemption is for a sinking fund payment (if applicable), that, unless
otherwise specified in such notice, Coupon Securities of any series, if any,
surrendered for redemption must be accompanied by all Coupons maturing
subsequent to the date fixed for redemption, failing which the amount of any
such missing Coupon or Coupons will be deducted from the redemption price, if
the Bearer Securities of any series are to be redeemed and any Registered
Securities of such series are not to be redeemed, and if such Bearer Securities
may be exchanged for Registered Securities not subject to redemption on the
applicable redemption date pursuant to Section 2.15(c) or otherwise, the last
date on which such exchanges may be made, that, if the Company defaults in
making such redemption payment or if the Debt Securities of that series are
subordinated pursuant to the terms of Article XII, the paying agent is
prohibited from making such payment pursuant to the terms of this Indenture,
that on and after said date any interest thereon or on the portions thereof to
be redeemed will cease to accrue, that in the case of Original Issue Discount
Securities original issue discount accrued after the date fixed for redemption
will cease to accrue, the terms of the Debt Securities of that series pursuant
to which the Debt Securities of that series are being redeemed and that no
representation is made as to the correctness or accuracy of the CUSIP number,
if any, listed in such notice or printed on the Debt Securities of that series.
If less than all the Debt Securities of a series are to be redeemed the notice
of redemption shall specify the CUSIP numbers of the Debt Securities of that
series to be redeemed. In case any Debt Security of a series is to be redeemed
in part only, the notice of redemption shall state the portion of the principal
amount thereof to be redeemed and shall state that on and after the date fixed
for redemption, upon surrender of such Debt Security, a new Debt Security or
Debt Securities of that series in principal amount equal to the unredeemed
portion thereof, and in the case of a Bearer Security with appropriate Coupons,
if any, will be issued.
At least 60 days before the redemption date unless the Trustee
consents to a shorter period, the Company shall give notice to the Trustee of
the redemption date, the principal amount of Debt Securities to be redeemed and
the series and terms of the Debt Securities pursuant to which such redemption
will occur. Such notice shall be accompanied by an Officers' Certificate and
an Opinion of Counsel from the Company to the effect that such redemption will
comply with the conditions herein. If fewer than all the Debt Securities of a
series are to be redeemed, the record date relating to such redemption shall be
selected by the Company and given to the Trustee, which record date shall be
not less than 15 days after the date of notice to the Trustee.
On or prior to the redemption date for any Registered Securities, the
Company shall deposit with the Trustee or with a paying agent (or, if the
Company is acting as its own paying agent,
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segregate and hold in trust) an amount of money in the Currency in which such
Debt Securities are denominated (except as provided pursuant to Section 2.03)
sufficient to pay the redemption price of such Registered Securities or any
portions thereof that are to be redeemed on that date. In the case of any
redemption pertaining to Bearer Securities or Coupon Securities, the Company
shall, no later than the business day prior to such redemption date, deposit
with the Trustee or with a paying agent (other than the Company) an amount of
money in the Currency in which such Debt Securities are denominated (except as
provided pursuant to Section 2.03) sufficient to pay the redemption price of
such Bearer or Coupon Securities or any portion thereof that are to be redeemed
on the redemption date.
If less than all the Debt Securities of like tenor and terms of a
series are to be redeemed (other than pursuant to mandatory sinking fund
redemptions) the Trustee shall select, on a pro rata basis, by lot or by such
other method as in its sole discretion it shall deem appropriate and fair, the
Debt Securities of that series or portions thereof (in multiples of $1,000) to
be redeemed. In any case where more than one Registered Security of such
series is registered in the same name, the Trustee in its discretion may treat
the aggregate principal amount so registered as if it were represented by one
Registered Security of such series. The Trustee shall promptly notify the
Company in writing of the Debt Securities selected for redemption and, in the
case of any Debt Securities selected for partial redemption, the principal
amount thereof to be redeemed. If any Debt Security called for redemption
shall not be so paid upon surrender thereof on such redemption date, the
principal, premium, if any, and interest shall bear interest until paid from
the redemption date at the rate borne by the Debt Securities of that series.
If less than all the Debt Securities of unlike tenor and terms of a series are
to be redeemed, the particular Debt Securities to be redeemed shall be selected
by the Company. Provisions of this Indenture that apply to Debt Securities
called for redemption also apply to portions of Debt Securities called for
redemption.
Section 3.04. PAYMENT OF DEBT SECURITIES CALLED FOR REDEMPTION. If
notice of redemption has been given as provided in Section 3.03, the Debt
Securities or portions of Debt Securities of the series with respect to which
such notice has been given shall become due and payable on the date and at the
Place or Places of Payment stated in such notice at the applicable redemption
price, together with any interest accrued to the date fixed for redemption, and
on and after said date (unless the Company shall default in the payment of such
Debt Securities at the applicable redemption price, together with any interest
accrued to said date) any interest on the Debt Securities or portions of Debt
Securities of any series so called for redemption shall cease to accrue, any
original issue discount in the case of Original Issue Discount Securities shall
cease to accrue and any Coupons for such interest appertaining to any Coupon
Securities to be redeemed, except to the extent described below, shall be void.
On presentation and surrender of such Debt Securities at the Place or Places of
Payment in said notice specified, the said Debt Securities or the specified
portions thereof shall be paid and redeemed by the Company at the applicable
redemption price, together with any interest accrued thereon to the date fixed
for redemption.
If any Coupon Security surrendered for redemption shall not be
accompanied by all Coupons appertaining thereto maturing on or after the
applicable redemption date, the redemption price for such Coupon Security may
be reduced by an amount equal to the face amount of all such missing Coupons.
If thereafter the Holder of such Coupon shall surrender to any paying agent
outside the
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United States any such missing Coupon in respect of which a deduction shall
have been made from the redemption price, such Holder shall be entitled to
receive the amount so deducted. The surrender of such missing Coupon or
Coupons may be waived by the Company and the Trustee, if there be furnished to
them such security or indemnity as they may require to save each of them and
any paying agent harmless.
Any Debt Security that is to be redeemed only in part shall be
surrendered at the corporate trust office or such other office or agency of the
Company as is specified pursuant to Section 2.03 (in the case of Registered
Securities) and at the principal London office of the Trustee or such other
office or agency of the Company outside the United States as is specified
pursuant to Section 2.03 (in the case of Bearer Securities) with, if the
Company, the Registrar or the Trustee so requires, due endorsement by, or a
written instrument of transfer in form satisfactory to the Company, the
Registrar 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 Debt Security without
service charge, a new Debt Security or Debt Securities of the same series, of
like tenor and form, 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 Debt Security so surrendered, and, in the case
of a Coupon Security, with appropriate Coupons attached; except that if a
Global Security is so surrendered, the Company shall execute, and the Trustee
shall authenticate and deliver to the Depositary for such Global Security,
without service charge, a new Global Security in a denomination equal to and in
exchange for the unredeemed portion of the principal of the Global Security so
surrendered. In the case of a Debt Security providing appropriate space for
such notation, at the option of the Holder thereof, the Trustee, in lieu of
delivering a new Debt Security or Debt Securities as aforesaid, may make a
notation on such Debt Security of the payment of the redeemed portion thereof.
Section 3.05. MANDATORY AND OPTIONAL SINKING FUNDS. The minimum
amount of any sinking fund payment provided for by the terms of Debt Securities
of any series, resolution of the Board of Directors or a supplemental Indenture
is herein referred to as a "mandatory sinking fund payment", and any payment in
excess of such minimum amount provided for by the terms of Debt Securities of
any series, resolution of the Board of Directors or a supplemental Indenture is
herein referred to as an "optional sinking fund payment".
In lieu of making all or any part of any mandatory sinking fund
payment with respect to any Debt Securities of a series in cash, the Company
may at its option (a) deliver to the Trustee Debt Securities of that series
(together with the unmatured Coupons, if any, appertaining thereto) theretofore
purchased or otherwise acquired by the Company or (b) receive credit for the
principal amount of Debt Securities of that series which have been redeemed
either at the election of the Company pursuant to the terms of such Debt
Securities or through the application of permitted optional sinking fund
payments pursuant to the terms of such Debt Securities, resolution or
supplemental Indenture; provided, that such Debt Securities have not been
previously so credited. Such Debt Securities shall be received and credited
for such purpose by the Trustee at the redemption price specified in such Debt
Securities, resolution or supplemental Indenture for redemption through
operation of the sinking fund and the amount of such mandatory sinking fund
payment shall be reduced accordingly.
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Section 3.06. REDEMPTION OF DEBT SECURITIES FOR SINKING FUND. Not
less than 60 days prior to each sinking fund payment date for any series of
Debt Securities, the Company will 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, any resolution or
supplemental Indenture, the portion thereof, if any, which is to be satisfied
by payment of cash in the Currency in which the Debt Securities of such series
are denominated (except as provided pursuant to Section 2.03) and the portion
thereof, if any, which is to be satisfied by delivering and crediting Debt
Securities of that series pursuant to this Section 3.06 (which Debt Securities,
if not previously redeemed, will accompany such certificate) and whether the
Company intends to exercise its right to make any permitted optional sinking
fund payment with respect to such series. Such certificate shall also state
that no Event of Default has occurred and is continuing with respect to such
series. Such certificate shall be irrevocable and upon its delivery the
Company shall be obligated to make the cash payment or payments therein
referred to, if any, on or before the next succeeding sinking fund payment
date. Failure of the Company to deliver such certificate (or to deliver the
Debt Securities and Coupons, if any, specified in this paragraph) shall not
constitute a Default, but such failure shall require that the sinking fund
payment due on the next succeeding sinking fund payment date for that series
shall be paid entirely in cash and shall be sufficient to redeem the principal
amount of such Debt Securities subject to a mandatory sinking fund payment
without the option to deliver or credit Debt Securities as provided in this
Section 3.06 and without the right to make any optional sinking fund payment,
if any, with respect to such series.
Any sinking fund payment or payments (mandatory or optional) made in
cash plus any unused balance of any preceding sinking fund payments made in
cash which shall equal or exceed $100,000 (or a lesser sum if the Company shall
so request) with respect to the Debt Securities of any particular series shall
be applied by the Trustee on the sinking fund payment date on which such
payment is made (or, if such payment is made before a sinking fund payment
date, on the sinking fund payment date following the date of such payment) to
the redemption of such Debt Securities at the Redemption Price specified in
such Debt Securities, resolution or supplemental Indenture for operation of the
sinking fund together with any accrued interest to the date fixed for
redemption. Any sinking fund moneys not so applied or allocated by the Trustee
to the redemption of Debt Securities shall be added to the next cash sinking
fund payment received by the Trustee for such series and, together with such
payment, shall be applied in accordance with the provisions of this Section
3.06. Any and all sinking fund moneys with respect to the Debt Securities of
any particular series held by the Trustee on the last sinking fund payment date
with respect to Debt Securities of such series and not held for the payment or
redemption of particular Debt Securities shall be applied by the Trustee,
together with other moneys, if necessary, to be deposited sufficient for the
purpose, to the payment of the principal of the Debt Securities of that series
at its Stated Maturity.
The Trustee shall select the Debt Securities to be redeemed upon such
sinking fund payment date in the manner specified in the last paragraph of
Section 3.03 and the Company shall cause notice of the redemption thereof to be
given in the manner provided in Section 3.03 except that the notice of
redemption shall also state that the Debt Securities are being redeemed by
operation of the sinking fund. Such notice having been duly given, the
redemption of such Debt Securities shall be made upon the terms and in the
manner stated in Section 3.04.
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At least one business day before each sinking fund payment date, the
Company shall pay to the Trustee (or, if the Company is acting as its own
paying agent, the Company shall segregate and hold in trust) in cash a sum in
the Currency in which the Debt Securities of such series are denominated
(except as provided pursuant to Section 2.03) equal to any interest accrued to
the date fixed for redemption of Debt Securities or portions thereof to be
redeemed on such sinking fund payment date pursuant to this Section 3.06.
The Trustee shall not redeem any Debt Securities of a series with
sinking fund moneys or mail any notice of redemption of such Debt Securities by
operation of the sinking fund for such series during the continuance of a
Default in payment of interest on such Debt Securities or of any Event of
Default (other than an Event of Default occurring as a consequence of this
paragraph) with respect to such Debt Securities, except that if the notice of
redemption of any such Debt Securities shall theretofore have been mailed in
accordance with the provisions hereof, the Trustee shall redeem such Debt
Securities if cash sufficient for that purpose shall be deposited with the
Trustee for that purpose in accordance with the terms of this Article III.
Except as aforesaid, any moneys in the sinking fund for such series at the time
when any such Default or Event of Default shall occur and any moneys thereafter
paid into such sinking fund shall, during the continuance of such Default or
Event of Default, be held as security for the payment of such Debt Securities;
provided, however, that in case such Event of Default or Default shall have
been cured or waived as provided herein, such moneys shall thereafter be
applied on the next sinking fund payment date for such Debt Securities on which
such moneys may be applied pursuant to the provisions of this Section 3.06.
ARTICLE IV
PARTICULAR COVENANTS OF THE COMPANY
Section 4.01. PAYMENT OF PRINCIPAL OF, AND PREMIUM, IF ANY, AND
INTEREST ON, DEBT SECURITIES. The Company, for the benefit of each series of
Debt Securities, will duly and punctually pay or cause to be paid the principal
of, and premium, if any, and interest on, each of the Debt Securities and pay
any Coupons at the place, at the respective times and in the manner provided
herein, in the Debt Securities and in the Coupons. Each installment of
interest on the Debt Securities may at the Company's option be paid by mailing
checks for such interest payable to the Person entitled thereto pursuant to
Section 2.07(a) to the address of such Person as it appears on the Debt
Security Register. Any interest due on Coupon Securities on or before the
Stated Maturity of the related Debt Security, other than additional interest,
if any, payable as provided in Section 4.06 in respect of principal of, or
premium, if any, on such a Debt Security, shall be payable only upon
presentation and surrender of the several Coupons for such interest
installments as are evidenced thereby as they severally mature.
Principal, premium and interest of Debt Securities of any series shall
be considered paid on the date due if on such date the Trustee or any paying
agent holds in accordance with this Indenture money sufficient to pay in the
Currency in which the Debt Securities of such series are denominated (except as
provided pursuant to Section 2.03) all principal, premium and interest then due
and, in the case of Debt Securities subordinated pursuant to the terms of
Article XII, the Trustee or such
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paying agent, as the case may be, is not prohibited from paying such money to
the Holders on that date pursuant to the terms of this Indenture.
The Company shall pay interest on overdue principal at the rate
specified therefor in the Debt Securities and it shall pay interest on overdue
installments of interest at the same rate to the extent lawful.
Section 4.02. MAINTENANCE OF OFFICES OR AGENCIES FOR REGISTRATION
OF TRANSFER, EXCHANGE AND PAYMENT OF DEBT SECURITIES. The Company will
maintain in each Place of Payment for any series of Debt Securities and
Coupons, if any, an office or agency where Debt Securities and Coupons of such
series (but, except as otherwise provided in Section 2.12, unless such Place of
Payment is located outside the United States, not Bearer Securities or Coupons)
may be presented or surrendered for payment, where Debt Securities of such
series may be surrendered for transfer or exchange and where notices and
demands to or upon the Company in respect of the Debt Securities and Coupons of
such series and this Indenture may be served. So long as any Bearer Securities
of any series remain outstanding, the Company will maintain for such purposes
one or more offices or agencies outside the United States in such city or
cities specified pursuant to Section 2.03 and, if any Bearer Securities are
listed on a securities exchange that requires an office or agency for the
payment of principal of, and premium, if any, or interest on, such Bearer
Securities in a location other than the location of an office or agency
specified pursuant to Section 2.03, the Company will maintain for such purposes
an office or agency in such location so long as any Bearer Securities are
listed on such securities exchange and such exchange so requires. 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
(in the case of Registered Securities) and at the principal London office of
the Trustee (in the case of Bearer Securities), and the Company hereby appoints
the Trustee as its agent to receive all presentations, surrenders, notices and
demands.
The Company may also from time to time designate different or
additional offices or agencies to be maintained for such purposes (in or
outside of such Place of Payment), and may from time to time rescind any such
designation; provided, however, that no such designation or rescission shall in
any manner relieve the Company of its obligations described in the preceding
paragraph. The Company will give prompt written notice to the Trustee of any
such additional designation or rescission of designation and any change in the
location of any such different or additional office or agency.
Section 4.03. APPOINTMENT TO FILL A VACANCY IN THE OFFICE OF
TRUSTEE. The Company, whenever necessary to avoid or fill a vacancy in the
office of Trustee, will appoint, in the manner provided in Section 7.10, a
Trustee, so that there shall at all times be a Trustee hereunder with respect
to each series of Debt Securities.
Section 4.04. DUTIES OF PAYING AGENTS, ETC. (a) The Company shall
cause each paying agent, if any, other than the Trustee, to execute and deliver
to the Trustee an instrument in which such agent shall agree with the Trustee,
subject to the provisions of this Section 4.04,
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(i) that it will hold all sums held by it as such
agent for the payment of the principal of, and premium, if any, or
interest on, the Debt Securities of any series and the payment of any
related Coupons (whether such sums have been paid to it by the Company
or by any other obligor on the Debt Securities or Coupons of such
series) in trust for the benefit of the Holders of the Debt Securities
and Coupons of such series;
(ii) that it will give the Trustee notice of any
failure by the Company (or by any other obligor on the Debt Securities
or Coupons of such series) to make any payment of the principal of,
and premium, if any, or interest on, the Debt Securities of such
series or any payment on any related Coupons when the same shall be
due and payable; and
(iii) that it will at any time during the
continuance of an Event of Default, upon the written request of the
Trustee, forthwith pay to the Trustee all sums so held by it as such
agent.
(b) If the Company shall act as its own paying agent, it
will, on or before each due date of the principal of, and premium, if any, or
interest on, the Debt Securities and Coupons, if any, of any series, set aside,
segregate and hold in trust for the benefit of the Holders of the Debt
Securities and Coupons of such series a sum sufficient to pay such principal,
premium, if any, or interest so becoming due. The Company will promptly notify
the Trustee of any failure by the Company to take such action or the failure by
any other obligor on such Debt Securities or Coupons to make any payment of the
principal of, and premium, if any, or interest on, such Debt Securities or
Coupons when the same shall be due and payable.
(c) Anything in this Section 4.04 to the contrary
notwithstanding, the Company may, at any time, for the purpose of obtaining a
satisfaction and discharge of this Indenture, or for any other reason, pay or
cause to be paid to the Trustee all sums held in trust by it or any paying
agent, as required by this Section 4.04, 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.
(d) Whenever the Company shall have one or more paying
agents with respect to any series of Debt Securities and Coupons, it will,
prior to each due date of the principal of, and premium, if any, or interest
on, any Debt Securities of such series, deposit with any such paying agent a
sum sufficient to pay the principal, premium or interest so becoming due, such
sum to be held in trust for the benefit of the Persons entitled thereto, and
(unless any such paying agent is the Trustee) the Company will promptly notify
the Trustee of its action or failure so to act.
(e) Anything in this Section 4.04 to the contrary
notwithstanding, the agreement to hold sums in trust as provided in this
Section 4.04 is subject to the provisions of Section 11.05.
Section 4.05. STATEMENT BY OFFICERS AS TO DEFAULT. The Company
will deliver to the Trustee, on or before a date not more than four months
after the end of each fiscal year of the Company (currently on a calendar year
basis) ending after the date hereof, an Officers' Certificate stating, as to
each officer signing such certificate, that (a) in the course of his
performance of his duties as an officer of the Company he would normally have
knowledge of any Default, (b) whether
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or not to the best of his knowledge any Default occurred during such year and
(c) if to the best of his knowledge the Company is in Default, specifying all
such Defaults, their status and what action the Company is taking or proposes
to take with respect thereto. The Company also shall comply with Section
314(a)(4) of the Trust Indenture Act.
Section 4.06. PAYMENT OF ADDITIONAL INTEREST. Unless otherwise
provided pursuant to Section 2.03, the provisions of this Section 4.06 shall be
applicable to Bearer Securities of any series.
The Company will, subject to the exceptions and limitations set forth
below, pay as additional interest to the Holder of any Bearer Security or
Coupon that is a United States Alien such amounts as may be necessary so that
every net payment on such Bearer Security or Coupon, after deduction or
withholding for or on account of any present or future tax, assessment or other
governmental charge imposed upon or as a result of such payment by the United
States (or any political subdivision or taxing authority thereof or therein),
will not be less than the amount provided in such Bearer Security or Coupon to
be then due and payable. However, the Company will not be required to make any
such payment of additional interest for or on account of:
(a) any tax, fee, assessment or other governmental charge
that would not have been imposed but for (i) the existence of any present or
former connection between such Holder (or between a fiduciary, settlor or
beneficiary of, or a Person holding a power over, such Holder, if such Holder
is an estate or a trust, or a member or shareholder of such Holder, if such
Holder is a partnership or corporation) and the United States, including such
Holder (or such fiduciary, settlor, beneficiary, Person holding a power, member
or shareholder) being or having been a citizen or resident thereof or being or
having been engaged in trade or business or present therein or having or having
had a permanent establishment therein or (ii) such Holder's past or present
status for United States Federal income tax purposes as a personal holding
company, foreign personal holding company or private foundation or other
tax-exempt organization with respect to the United States or as a corporation
that accumulates earnings to avoid United States Federal income tax;
(b) any estate, inheritance, gift, sales, transfer or
personal property tax or any similar tax, assessment or other governmental
charge;
(c) any tax, fee, assessment or other governmental charge
that would not have been imposed but for the presentation by the Holder of a
Bearer Security or Coupon for payment more than 15 days after the date on which
such payment became due and payable or on which payment thereof was duly
provided for, whichever occurs later;
(d) any tax, fee, assessment or other governmental charge
that is payable otherwise than by deduction or withholding from a payment on a
Bearer Security or Coupon;
(e) any tax, fee, assessment or other governmental charge
that would not have been imposed but for a failure to comply with applicable
certification, documentation, information or other reporting requirement
concerning the nationality, residence, identity or connection with the United
States of the Holder or beneficial owner of a Bearer Security or Coupon if,
without regard
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to any tax treaty, such compliance is required by statute or regulation of the
United States as a precondition to relief or exemption from such tax,
assessment or other governmental charge; or
(f) any tax, fee, assessment or other governmental charge
imposed on a Holder that actually or constructively owns ten percent or more of
the combined voting power of all classes of stock of the Company or that is a
controlled foreign corporation related to the Company through stock ownership;
nor shall additional interest be paid with respect to a payment on a Bearer
Security or Coupon to a Holder that is a fiduciary or partnership or other than
the sole beneficial owner of such payment to the extent a beneficiary or
settlor with respect to such fiduciary or a member of such partnership or a
beneficial owner would not have been entitled to the additional interest had
such beneficiary, settlor, member or beneficial owner been the Holder of such
Bearer Security or Coupon.
Whenever in this Indenture there is mentioned, in any context, the
payment of the principal of, or premium, if any, or interest on, any Debt
Security or payment with respect to any Coupon of any series, such mention
shall be deemed to include mention of the payment of additional interest
provided for in the terms of such Debt Securities and this Section 4.06 to the
extent that, in such context, additional interest is, was or would be payable
in respect thereof pursuant to the provisions of this Section 4.06 and express
mention of the payment of additional interest (if applicable) in any provisions
hereof shall not be construed as excluding additional interest in those
provisions hereof where such express mention is not made.
If the payment of additional interest becomes required in respect of
the Debt Securities or Coupons of a series, at least ten days prior to the
first interest payment date with respect to which such additional interest will
be payable (or if the Debt Securities of that series will not bear interest
prior to its Stated Maturity, the first day on which a payment of principal,
and premium, if any, is made and on which such additional interest will be
payable), and at least ten days prior to each date of payment of principal, and
premium, if any, or interest if there has been any change with respect to the
matters set forth in the below-mentioned Officers' Certificate, the Company
will furnish the Trustee and each paying agent with an Officers' Certificate
that shall specify by country the amount, if any, required to be withheld on
such payments to Holders of Debt Securities or Coupons that are United States
Aliens, and the Company will pay to the Trustee or such paying agent the
additional interest, if any, required by the terms of such Debt Securities and
this Section 4.06. The Company covenants to indemnify the Trustee and any
paying agent for, and to hold them harmless against, any and all loss,
liability or expense reasonably incurred without negligence or bad faith on
their part arising out of or in connection with actions taken or omitted by any
of them in reliance on any Officers' Certificate furnished pursuant to this
Section 4.06.
Section 4.07. FURTHER INSTRUMENTS AND ACTS. The Company will, upon
request of the Trustee, execute and deliver such further instruments and do
such further acts as may reasonably be necessary or proper to carry out more
effectually the purposes of this Indenture.
Section 4.08. EXISTENCE. Subject to Article X, the Company will do
or cause to be done all things necessary to preserve and keep in full force and
effect its existence, rights (charter and
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statutory) and franchises; provided, however, that the Company shall not be
required to preserve any such right or franchise if the Board of Directors
shall determine that the preservation thereof is no longer desirable in the
conduct of the business of the Company and that the loss thereof is not
disadvantageous in any material respect to the Holders.
Section 4.09. MAINTENANCE OF PROPERTIES. The Company will cause
all properties used or useful in the conduct of its business or the business of
any Subsidiary to be maintained and kept in good condition, repair and working
order and supplied with all necessary equipment and will cause to be made all
necessary repairs, renewals, replacements, betterments and improvements
thereof, all as in the judgment of the Company may be necessary so that the
business carried on in connection therewith may be properly and advantageously
conducted at all times; provided, however, that nothing in this Section shall
prevent the Company from discontinuing the operation or maintenance of any of
such properties if such discontinuance is, in the judgment of the Company,
desirable in the conduct of its business or the business of any Subsidiary and
not disadvantageous in any material respect to the Holders.
Section 4.10. PAYMENT OF TAXES AND OTHER CLAIMS. The Company will
pay or discharge or cause to be paid or discharged, before the same shall
become delinquent, (a) all taxes, assessments and governmental charges levied
or imposed upon the Company or any Subsidiary or upon the income, profits or
property of the Company or any Subsidiary, and (b) all lawful claims for labor,
materials and supplies which, if unpaid, might by law become a lien upon the
property of the Company or any Subsidiary; provided, however, that the Company
shall not be required to pay or discharge or cause to be paid or discharged any
such tax, assessment, charge or claim whose amount, applicability or validity
is being contested in good faith by appropriate proceedings.
Section 4.11. LIMITATION ON LIENS. The Company shall not, and
shall not permit any of its Subsidiaries to create or permit to exist any Lien
on any Principal Property or shares of capital stock or Indebtedness of a
Subsidiary of the Company that owns or leases Principal Property, whether owned
on the Issue Date or thereafter acquired, securing any obligation unless the
Company contemporaneously secures the Debt Securities equally and ratably with
(or prior to) such obligation until such time as such obligations are no longer
secured by a Lien. The preceding sentence shall not require the Company to
secure the Debt Securities if the Lien consists of either of the following:
(a) Permitted Liens; or
(b) Liens securing Indebtedness if, after giving pro
forma effect to the Incurrence of such Indebtedness (and the receipt and
application of the proceeds thereof) or the securing of outstanding
Indebtedness, the sum of (without duplication) (i) all Indebtedness of the
Company and its Subsidiaries secured by Liens on Principal Property (other than
Permitted Liens) and (ii) all Attributable Indebtedness in respect of Sale and
Leaseback Transactions with respect to any Principal Property, at the time of
determination does not exceed 15% of Adjusted Consolidated Net Tangible Assets.
Section 4.12. LIMITATION ON SALE AND LEASEBACK TRANSACTIONS. The
Company shall not, and shall not permit any of its Subsidiaries to, directly or
indirectly, enter into any Sale and
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Leaseback Transaction with respect to any Principal Property unless either, (a)
the Company or such Subsidiary would be entitled to create a Lien on such
Principal Property securing Indebtedness in an amount equal to the Attributable
Indebtedness with respect to such Sale and Leaseback Transaction without
securing the Debt Securities pursuant to Section 4.11 or (b) the Company,
within six months after the effective date of such Sale and Leaseback
Transaction, applies to the voluntary defeasance or retirement of Debt
Securities or other Indebtedness an amount equal to the Attributable
Indebtedness in respect of such Sale and Leaseback Transaction.
ARTICLE V
HOLDERS' LISTS AND REPORTS
BY THE COMPANY AND THE TRUSTEE
Section 5.01. COMPANY TO FURNISH TRUSTEE INFORMATION AS TO NAMES
AND ADDRESSES OF HOLDERS; PRESERVATION OF INFORMATION. The Company covenants
and agrees that it will furnish or cause to be furnished to the Trustee with
respect to the Registered Securities of each series:
(a) not more than 15 days after each record date with
respect to the payment of interest, if any, a list, in such form as the Trustee
may reasonably require, of the names and addresses of the Registered Holders as
of such 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 contents as of a date not more than 15 days prior to
the time such list is furnished;
provided, however, that so long as the Trustee shall be the Registrar, such
lists shall not be required to be furnished.
The Company shall also be required to furnish to the Trustee at all
such times set forth above all information in the possession or control of the
Company or any of its paying agents other than the Trustee as to the names and
addresses of the Bearer Holders of all series; provided, however, that the
Company shall have no obligation to investigate any matter relating to any
Bearer Holders.
The Trustee shall preserve, in as current a form as is reasonably
practicable, all information as to the names and addresses of the Holders (i)
contained in the most recent list furnished to it as provided in this Section
5.01 or (ii) received by it in the capacity of paying agent or Registrar (if so
acting) hereunder.
The Trustee may destroy any list furnished to it as provided in this
Section 5.01 upon receipt of a new list so furnished.
Section 5.02. COMMUNICATIONS TO HOLDERS. Holders may communicate
pursuant to Section 312(b) of the Trust Indenture Act with other Holders with
respect to their rights under this
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Indenture or the Debt Securities. The Company, the Trustee, the Registrar and
anyone else shall have the protection of Section 312(c) of the Trust Indenture
Act.
Section 5.03. REPORTS BY COMPANY. (a) The Company covenants and
agrees, and any obligor hereunder shall covenant and agree, to file with the
Trustee and the Holders (in the manner and to the extent provided in Section
5.04), within 15 days after the Company or such obligor, as the case may be, is
required to file the same with the Securities and Exchange Commission, copies
of the annual reports and of the information, documents and other reports (or
copies of such portions of any of the foregoing as said Commission may from
time to time by rules and regulations prescribe) which the Company or such
obligor, as the case may be, may be required to file with said Commission
pursuant to Section 13 or Section 15(d) of the Exchange Act; or, if the Company
or such obligor, as the case may be, is not required to file information,
documents or reports pursuant to either of such Sections, then to file with the
Trustee, the Holders (in the manner and to the extent provided in Section 5.04)
and said Commission, in accordance with rules and regulations prescribed from
time to time by said Commission, such of the supplementary and periodic
information, documents and reports which may be required pursuant to Section 13
of the Exchange Act in respect of a security listed and registered on a
national securities exchange as may be prescribed from time to time in such
rules and regulations.
(b) The Company covenants and agrees, and any obligor
hereunder shall covenant and agree, to file with the Trustee, the Holders (in
the manner and to the extent provided in Section 5.04) and the Securities and
Exchange Commission, in accordance with the rules and regulations prescribed
from time to time by said Commission, such additional information, documents,
and reports with respect to compliance by the Company or such obligor, as the
case may be, with the conditions and covenants provided for in this Indenture
as may be required from time to time by such rules and regulations.
Section 5.04. REPORTS BY TRUSTEE. As promptly as practicable after
each January 1 beginning with the January 1 following the date of this
Indenture, and in any event prior to February 15 in each year, the Trustee
shall mail to each Holder a brief report dated as of January 1 that complies
with Section 313(a) of the Trust Indenture Act. The Trustee also shall comply
with Section 313(b) of the Trust Indenture Act.
Reports pursuant to this Section 5.04 shall be transmitted by mail:
(a) to all Registered Holders, as the names and addresses
of such Holders appear in the Debt Security Register;
(b) to such Bearer Holders of any series as have, within
two years preceding such transmission, filed their names and addresses with the
Trustee for such series for that purpose; and
(c) except in the cases of reports under Section
313(b)(2) of the Trust Indenture Act, to each Holder of a Debt Security of any
series whose name and address appear in the information preserved at the time
by the Trustee in accordance with Section 5.02.
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A copy of each report at the time of its mailing to Holders shall be
filed with the Securities and Exchange Commission and each stock exchange (if
any) on which the Debt Securities of any series are listed. The Company agrees
to notify promptly the Trustee whenever the Debt Securities of any series
become listed on any stock exchange and of any delisting thereof.
Section 5.05. RECORD DATES FOR ACTION BY HOLDERS. If the Company
shall solicit from the holders of Debt Securities of any series any action
(including the making of any demand or request, the giving of any direction,
notice, consent or waiver or the taking of any other action), the Company may,
at its option, by resolution of the Board of Directors, fix in advance a record
date for the determination of Holders of Debt Securities entitled to take such
action, but the Company shall have no obligation to do so. Any such record
date shall be fixed at the Company's discretion. If such a record date is
fixed, such action may be sought or given before or after the record date, but
only the Holders of Debt Securities of record at the close of business on such
record date shall be deemed to be Holders of Debt Securities for the purpose of
determining whether Holders of the requisite proportion of Debt Securities of
such series Outstanding have authorized or agreed or consented to such action,
and for that purpose the Debt Securities of such series Outstanding shall be
computed as of such record date.
ARTICLE VI
REMEDIES OF THE TRUSTEE AND HOLDERS IN EVENT OF DEFAULT
Section 6.01. EVENTS OF DEFAULT. If any one or more of the
following shall have occurred and be continuing with respect to Debt Securities
of any series (each of the following, an "Event of Default"):
(a) default in the payment of any installment of interest
upon any Debt Securities of that series or any payment with respect to the
related Coupons, if any, as and when the same shall become due and payable,
whether or not such payment shall be prohibited by Article XII, if applicable,
and continuance of such default for a period of 30 days; or
(b) default in the payment of the principal of or
premium, if any, on any Debt Securities of that series as and when the same
shall become due and payable, whether at maturity, upon redemption, by
declaration, upon required repurchase or otherwise, whether or not such payment
shall be prohibited by Article XII, if applicable; or
(c) default in the payment of any sinking fund payment
with respect to any Debt Securities of that series as and when the same shall
become due and payable; or
(d) failure on the part of the Company to comply with
Article X; or
(e) failure on the part of the Company duly to observe or
perform any other of the covenants or agreements on the part of the Company in
the Debt Securities of that series, in any resolution of the Board of Directors
authorizing the issuance of that series of Debt Securities, in this
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Indenture with respect to such series or in any supplemental Indenture with
respect to such series (other than a covenant a default in the performance of
which is elsewhere in this Section specifically dealt with), continuing for a
period of 60 days after the date on which written notice specifying such
failure and requiring the Company to remedy the same shall have been given, by
registered or certified mail, to the Company by the Trustee or to the Company
and the Trustee by the Holders of at least 25% in aggregate principal amount of
the Debt Securities of that series at the time Outstanding; or
(f) Indebtedness of the Company or any Subsidiary of the
Company is not paid within any applicable grace period after final maturity or
is accelerated by the holders thereof because of a default, the total amount of
such Indebtedness unpaid or accelerated exceeds $20,000,000 or its Dollar
Equivalent at the time and such default remains uncured or such acceleration is
not rescinded for 10 days after the date on which written notice specifying
such failure and requiring the Company to remedy the same shall have been
given, by registered or certified mail, to the Company by the Trustee or to the
Company and the Trustee by the Holders of at least 25% in aggregate principal
amount of the Debt Securities of that series at the time Outstanding; or
(g) the Company or any of its Significant Subsidiaries
shall (i) voluntarily commence any proceeding or file any petition seeking
relief under Title 11 of the United States Code or any other Federal or State
bankruptcy, insolvency or similar law, (ii) consent to the institution of, or
fail to controvert within the time and in the manner prescribed by law, any
such proceeding or the filing of any such petition, (iii) apply for or consent
to the appointment of a receiver, trustee, custodian, sequestrator or similar
official for the Company or any such Significant Subsidiary or for a
substantial part of its property, (iv) file an answer admitting the material
allegations of a petition filed against it in any such proceeding, (v) make a
general assignment for the benefit of creditors, (vi) admit in writing its
inability to pay its debts as they become due, (vii) take corporate action for
the purpose of effecting any of the foregoing, or (viii) take any comparable
action under any foreign laws relating to insolvency; or
(h) the entry of an order or decree by a court having
competent jurisdiction for (i) relief in respect of the Company or any of its
Significant Subsidiaries or a substantial part of any of their property under
Title 11 of the United States Code or any other Federal or State bankruptcy,
insolvency or similar law, (ii) the appointment of a receiver, trustee,
custodian, sequestrator or similar official for the Company or any such
Significant Subsidiary or for a substantial part of any of their property
(except any decree or order appointing such official of any Significant
Subsidiary pursuant to a plan under which the assets and operations of such
Significant Subsidiary are transferred to or combined with another Subsidiary
or Subsidiaries of the Company or to the Company) or (iii) the winding-up or
liquidation of the Company or any such Significant Subsidiary (except any
decree or order approving or ordering the winding up or liquidation of the
affairs of a Significant Subsidiary pursuant to a plan under which the assets
and operations of such Significant Subsidiary are transferred to or combined
with another Subsidiary or Subsidiaries of the Company or to the Company); and
such order or decree shall continue unstayed and in effect for 60 consecutive
days; or any similar relief is granted under any foreign laws and the order or
decree stays in effect for 60 consecutive days; or
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(i) any judgment or decree for the payment of money in
excess of $20,000,000 or its Dollar Equivalent at the time is entered against
the Company or any Subsidiary of the Company by a court or courts of competent
jurisdiction, which judgment is not covered by insurance, and is not discharged
and either (i) an enforcement proceeding has been commenced by any creditor
upon such judgment or decree or (ii) there is a period of 60 days following the
entry of such judgment or decree during which such judgment or decree is not
discharged, waived or the execution thereof stayed and, in the case of (i) or
(ii), such default continues for 10 days after the date on which written notice
specifying such failure and requiring the Company to remedy the same shall have
been given, by registered or certified mail, to the Company by the Trustee or
to the Company and the Trustee by the Holders of at least 25% in aggregate
principal amount of the Debt Securities of that series at the time Outstanding;
or
(j) any other Event of Default provided with respect to
Debt Securities of that series;
then and in each and every case that an Event of Default described in clause
(a), (b), (c), (d), (e), (f), (i) or (j) with respect to Debt Securities of
that series at the time Outstanding occurs and is continuing, unless the
principal of and interest on all the Debt Securities of that series shall have
already become due and payable, either the Trustee or the Holders of not less
than 25% in aggregate principal amount of the Debt Securities of that series
then Outstanding hereunder, by notice in writing to the Company (and to the
Trustee if given by Holders), may declare the principal of (or, if the Debt
Securities of that series are Original Issue Discount Debt Securities, such
portion of the principal amount as may be specified in the terms of that
series) and interest on all the Debt Securities of that series to be due and
payable immediately, and upon any such declaration the same shall become and
shall be immediately due and payable, anything in this Indenture or in the Debt
Securities or Coupons appertaining thereto of that series contained to the
contrary notwithstanding. If an Event of Default described in clause (g) or
(h) occurs, then and in each and every such case, unless the principal of and
interest on all the Debt Securities shall have become due and payable, the
principal of (or, if any Debt Securities are Original Issue Discount Debt
Securities, such portion of the principal amount as may be specified in the
terms thereto) and interest on all the Debt Securities then Outstanding
hereunder shall ipso facto become and be immediately due and payable without
any declaration or other act on the part of the Trustee or any Holders,
anything in this Indenture or in the Debt Securities contained to the contrary
notwithstanding.
The Holders of a majority in aggregate principal amount of the Debt
Securities of a particular series by notice to the Trustee may rescind an
acceleration and its consequences if the rescission would not conflict with any
judgment or decree already rendered and if all existing Events of Default have
been cured or waived except nonpayment of principal or interest that has become
due solely because of acceleration. Upon any such rescission, the parties
hereto shall be restored respectively to their several positions and rights
hereunder, and all rights, remedies and powers of the parties hereto shall
continue as though no such proceeding had been taken.
In case the Trustee or any Holder shall have proceeded to enforce any
right under this Indenture and such proceedings shall have been discontinued or
abandoned because of such rescission or annulment or for any other reason or
shall have been determined adversely to the
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Trustee or such Holder, then and in every such case the parties hereto shall be
restored respectively to their several positions and rights hereunder, and all
rights, remedies and powers of the parties hereto shall continue as though no
such proceeding had been taken.
The foregoing Events of Default shall constitute Events of Default
whatever the reason for any such Event of Default and whether it is voluntary
or involuntary or is effected by operation of law or pursuant to any judgment,
decree or order of any court or any order, rule or regulation of any
administrative or governmental body.
The Company shall deliver to the Trustee, within 30 days after the
occurrence thereof, written notice in the form of an Officers' Certificate of
any event which with the giving of notice and the lapse of time would become an
Event of Default under clause (c), (d), (e), (f), (i) or (j), its status and
what action the Company is taking or proposes to take with respect thereto.
Section 6.02. COLLECTION OF INDEBTEDNESS BY TRUSTEE, ETC. If an
Event of Default occurs and is continuing, the Trustee, in its own name and as
trustee of an express trust, shall be entitled and empowered to institute any
action or proceedings at law or in equity for the collection of the sums so due
and unpaid or enforce the performance of any provision of the Debt Securities
of the affected series or this Indenture, and may prosecute any such action or
proceedings to judgment or final decree, and may enforce any such judgment or
final decree against the Company or any other obligor upon the Debt Securities,
and the Coupons, if any, appertaining thereto, of such series (and collect in
the manner provided by law out of the property of the Company or any other
obligor upon the Debt Securities and Coupons of such series wherever situated
the moneys adjudged or decreed to be payable).
In case there shall be pending proceedings for the bankruptcy or for
the reorganization of the Company or any other obligor upon the Debt Securities
and Coupons, if any, of any series under Title 11 of the United States Code or
any other Federal or State bankruptcy, insolvency or similar law, or in case a
receiver, trustee or other similar official shall have been appointed for its
property, or in case of any other similar judicial proceedings relative to the
Company or any other obligor upon the Debt Securities of any series, its
creditors or its property, the Trustee, irrespective of whether the principal
of Debt Securities and Coupons, if any, of any series shall then be due and
payable as therein expressed or by declaration or otherwise and irrespective of
whether the Trustee shall have made any demand pursuant to the provisions of
this Section 6.02, shall be entitled and empowered, by intervention in such
proceedings or otherwise, to file and prove a claim or claims for the whole
amount of principal, premium, if any, and interest (or, if the Debt Securities
of such series are Original Issue Discount Debt Securities, such portion of the
principal amount as may be specified in the terms of such series) owing and
unpaid in respect of the Debt Securities and Coupons of such series, and to
file such other papers or documents as may be necessary or advisable in order
to have the claims of the Trustee (including any claim for reasonable
compensation to the Trustee, its agents, attorneys and counsel, and for
reimbursement of all expenses and liabilities Incurred, and all advances made,
by the Trustee except as a result of its negligence or bad faith) and of the
Holders thereof allowed in any such judicial proceedings relative to the
Company, or any other obligor upon the Debt Securities and Coupons of such
series, its creditors or its property, and to collect and receive any moneys or
other property payable or deliverable on any such claims, and to distribute
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all amounts received with respect to the claims of such Holders and of the
Trustee on their behalf, and any receiver, assignee or trustee in bankruptcy or
reorganization is hereby authorized by each of such Holders to make payments to
the Trustee, and, in the event that the Trustee shall consent to the making of
payments directly to such Holders, to pay to the Trustee such amount as shall
be sufficient to cover reasonable compensation to the Trustee, its agents,
attorneys and counsel, and all other reasonable expenses and liabilities
Incurred, and all advances made, by the Trustee except as a result of its
negligence or bad faith.
All rights of action and of asserting claims under this Indenture, or
under any of the Debt Securities and the Coupons, if any, appertaining thereto,
of any series, may be enforced by the Trustee without the possession of any
such Debt Securities or Coupons, or the production thereof in any trial or
other proceedings relative thereto, and any such action or proceedings
instituted by the Trustee shall be brought in its own name as trustee of an
express trust, and any recovery of judgment (except for any amounts payable to
the Trustee pursuant to Section 7.06) shall be for the ratable benefit of the
Holders of all the Debt Securities or Coupons in respect of which such action
was taken.
In case of an Event of Default hereunder the Trustee may in its
discretion proceed to protect and enforce the rights vested in it by this
Indenture by such appropriate judicial proceedings as the Trustee shall deem
most effectual to protect and enforce any of such rights, either at law or in
equity or in bankruptcy or otherwise, whether for the specific enforcement of
any covenant or agreement contained in this Indenture or in aid of the exercise
of any power granted in this Indenture, or to enforce any other legal or
equitable right vested in the Trustee by this Indenture or by law.
Section 6.03. APPLICATION OF MONEYS COLLECTED BY TRUSTEE. Any
moneys or other property collected by the Trustee pursuant to Section 6.02 with
respect to Debt Securities and Coupons, if any, of any series shall be applied,
after giving effect to the provisions of Article XII, if applicable, in the
order following, at the date or dates fixed by the Trustee for the distribution
of such moneys or other property, upon presentation of the several Debt
Securities or Coupons of such series in respect of which moneys or other
property have been collected, and the notation thereon of the payment, if only
partially paid, and upon surrender thereof if fully paid:
FIRST: To the payment of all money due the Trustee pursuant
to Section 7.06;
SECOND: In case the principal of the Outstanding Debt
Securities in respect of which such moneys have been collected shall not have
become due, to the payment of interest on the Debt Securities or Coupons of
such series in the order of the maturity of the installments of such interest,
with interest (to the extent that such interest has been collected by the
Trustee) upon the overdue installments of interest at the rate or Yield to
Maturity (in the case of Original Issue Discount Debt Securities) borne by the
Debt Securities or Coupons of such series, such payments to be made ratably to
the Persons entitled thereto, without discrimination or preference;
THIRD: In case the principal of the Outstanding Debt
Securities in respect of which such moneys have been collected shall have
become due, by declaration or otherwise, to the payment of the whole amount
then owing and unpaid upon the Debt Securities or Coupons of such series for
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principal and premium, if any, and interest, with interest on the overdue
principal and premium, if any, and (to the extent that such interest has been
collected by the Trustee) upon overdue installments of interest at the rate or
Yield to Maturity (in the case of Original Issue Discount Debt Securities)
borne by the Debt Securities or Coupons of such series; and, in case such
moneys shall be insufficient to pay in full the whole amount so due and unpaid
upon the Debt Securities and Coupons of such series, then to the payment of
such principal and premium, if any, and interest, without preference or
priority of principal and premium, if any, over interest, or of interest over
principal and premium, if any, or of any installment of interest over any other
installment of interest, or of any Debt Security or Coupon of such series over
any Debt Security or Coupon of such series, ratably to the aggregate of such
principal and premium, if any, and interest; and
FOURTH: The remainder, if any, shall be paid to the Company,
its successors or assigns, or to whomsoever may be lawfully entitled to receive
the same, or as a court of competent jurisdiction may direct.
The Trustee may fix a record date and payment date for any payment to
Holders pursuant to this Section 6.03. At least 15 days before such record
date, the Company shall mail to each Holder and the Trustee a notice that
states the record date, the payment date and amount to be paid.
Section 6.04. LIMITATION ON SUITS BY HOLDERS. No Holder of any
Debt Security or Coupon of any series shall have any right by virtue or by
availing of any provision of this Indenture to institute any action or
proceeding at law or in equity or in bankruptcy or otherwise, upon or under or
with respect to this Indenture, or for the appointment of a receiver or
trustee, or for any other remedy hereunder, unless such Holder previously shall
have given to the Trustee written notice of an Event of Default with respect to
Debt Securities of that same series and of the continuance thereof and unless
the Holders of not less than 25% in aggregate principal amount of the
Outstanding Debt Securities of that series shall have made written request upon
the Trustee to institute such action or proceedings in respect of such Event of
Default in its own name as Trustee hereunder and shall have offered to the
Trustee such reasonable indemnity as it may require against the costs, expenses
and liabilities to be Incurred therein or thereby, and the Trustee, for 60 days
after its receipt of such notice, request and offer of indemnity shall have
failed to institute any such action or proceedings and no direction
inconsistent with such written request shall have been given to the Trustee
pursuant to Section 6.06; it being understood and intended, and being expressly
covenanted by the Holder of every Debt Security or Coupon with every other
Holder and the Trustee, that no one or more Holders shall have any right in any
manner whatever by virtue or by availing of any provision of this Indenture to
affect, disturb or prejudice the rights of any Holders, or to obtain or seek to
obtain priority over or preference to any other such Holder, or to enforce any
right under this Indenture, except in the manner herein provided and for the
equal, ratable and common benefit of all such Holders. For the protection and
enforcement of the provisions of this Section 6.04, each and every Holder and
the Trustee shall be entitled to such relief as can be given either at law or
in equity.
Notwithstanding any other provision in this Indenture, however, the
right of any Holder of any Debt Security or Coupon to receive payment of the
principal of, and premium, if any, and (subject to Section 2.12) interest on,
such Debt Security or Coupon, on or after the respective due dates expressed in
such Debt Security, and to institute suit for the enforcement of any such
payment
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on or after such respective dates, shall not be impaired or affected without
the consent of such Holder.
Section 6.05. REMEDIES CUMULATIVE; DELAY OR OMISSION IN EXERCISE OF
RIGHTS NOT A WAIVER OF DEFAULT. All powers and remedies given by this Article
VI to the Trustee or to the Holders shall, to the extent permitted by law, be
deemed cumulative and not exclusive of any thereof or of any other powers and
remedies available to the Trustee or the Holders, by judicial proceedings or
otherwise, to enforce the performance or observance of the covenants and
agreements contained in this Indenture, and no delay or omission of the Trustee
or of any Holder to exercise any right or power accruing upon any Default
occurring and continuing as aforesaid, shall impair any such right or power, or
shall be construed to be a waiver of any such Default or an acquiescence
therein; and, subject to the provisions of Section 6.04, every power and remedy
given by this Article VI or by law to the Trustee or to the Holders may be
exercised from time to time, and as often as shall be deemed expedient, by the
Trustee or by the Holders.
Section 6.06. RIGHTS OF HOLDERS OF MAJORITY IN PRINCIPAL AMOUNT OF
DEBT SECURITIES TO DIRECT TRUSTEE AND TO WAIVE DEFAULT. The Holders of a
majority in aggregate principal amount of the Debt Securities of any series at
the time Outstanding shall have the right to direct the time, method, and place
of conducting any proceeding for any remedy available to the Trustee, or
exercising any trust or power conferred on the Trustee, with respect to the
Debt Securities of such series; provided, however, that such direction shall
not be otherwise than in accordance with law and the provisions of this
Indenture, and that subject to the provisions of Section 7.01, the Trustee
shall have the right to decline to follow any such direction if the Trustee
being advised by counsel shall determine that the action so directed may not
lawfully be taken, or if the Trustee shall by a responsible officer or officers
determine that the action so directed would involve it in personal liability or
would be unjustly prejudicial to Holders of Debt Securities of such series not
taking part in such direction; and provided, further, however, that nothing in
this Indenture contained shall impair the right of the Trustee to take any
action deemed proper by the Trustee and which is not inconsistent with such
direction by such Holders. Prior to the acceleration of the maturity of the
Debt Securities of any series, as provided in Section 6.01, the Holders of a
majority in aggregate principal amount of the Debt Securities of that series at
the time Outstanding may on behalf of the Holders of all the Debt Securities
and any related Coupons of that series waive any past Default or Event of
Default and its consequences for that series specified in the terms thereof as
contemplated by Section 2.03, except (a) a Default in the payment of the
principal of, and premium, if any, or interest on, any of the Debt Securities
or in the payment of any related Coupon and (b) a Default in respect of a
provision that under Section 9.02 cannot be amended without the consent of each
Holder affected thereby. In case of any such waiver, such Default shall cease
to exist, any Event of Default arising therefrom shall be deemed to have been
cured for every purpose of this Indenture, and the Company, the Trustee and the
Holders of the Debt Securities of that series shall be restored to their former
positions and rights hereunder, respectively; but no such waiver shall extend
to any subsequent or other Default or impair any right consequent thereon.
Section 6.07. TRUSTEE TO GIVE NOTICE OF DEFAULTS KNOWN TO IT, BUT
MAY WITHHOLD SUCH NOTICE IN CERTAIN CIRCUMSTANCES. The Trustee shall, within
90 days after the occurrence of a Default known to it with respect to a series
of Debt Securities or Coupons, if any, give to the Holders
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thereof, in the manner provided in Section 13.03, notice of all Defaults with
respect to such series known to the Trustee, unless such Defaults shall have
been cured or waived before the giving of such notice; provided, that, except
in the case of Default in the payment of the principal of, or premium, if any,
or interest on, any of the Debt Securities or Coupons of such series or in the
making of any sinking fund payment with respect to the Debt Securities of such
series, the Trustee shall be protected in withholding such notice if and so
long as the board of directors, the executive committee or a committee of
directors or responsible officers of the Trustee in good faith determine that
the withholding of such notice is in the interests of the Holders thereof.
Section 6.08. REQUIREMENT OF AN UNDERTAKING TO PAY COSTS IN CERTAIN
SUITS UNDER THE INDENTURE OR AGAINST THE TRUSTEE. All parties to this
Indenture agree, and each Holder of any Debt Security or Coupon by his
acceptance thereof shall be deemed to have agreed, that any court may in its
discretion require, 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
or omitted by it as Trustee, the filing by any party litigant in such suit of
an undertaking to pay the costs of such suit in the manner and to the extent
provided in the Trust Indenture Act, and that such court may in its discretion
assess reasonable costs, including reasonable attorneys' fees and expenses,
against any party litigant in such suit, having due regard to the merits and
good faith of the claims or defenses made by such party litigant; but the
provisions of this Section 6.08 shall not apply to any suit instituted by the
Trustee, to any suit instituted by any Holder, or group of Holders, holding in
the aggregate more than ten percent in principal amount of the Outstanding Debt
Securities of that series or to any suit instituted by any Holder for the
enforcement of the payment of the principal of, or premium, if any, or interest
on, any Debt Security or Coupon on or after the due date for such payment
expressed in such Debt Security or Coupon.
ARTICLE VII
CONCERNING THE TRUSTEE
Section 7.01. CERTAIN DUTIES AND RESPONSIBILITIES. The Trustee,
prior to the occurrence of an Event of Default and after the curing or waiving
of all Events of Default which may have occurred, undertakes to perform such
duties and only such duties as are specifically set forth in this Indenture.
In case an Event of Default has occurred (which has not been cured or waived),
the Trustee shall exercise such of the rights and powers vested in it by this
Indenture, and use the same degree of care and skill in their exercise, as a
prudent man would exercise or use under the circumstances in the conduct of his
own affairs.
No provision of this Indenture shall be construed to relieve the
Trustee from liability for its own negligent action, its own negligent failure
to act, or its own wilful misconduct, except that:
(a) this subsection shall not be construed to limit the
effect of the first paragraph of this Section 7.01;
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(b) prior to the occurrence of an Event of Default with
respect to the Debt Securities of a series and after the curing or waiving of
all Events of Default with respect to such series which may have occurred:
(i) the duties and obligations of the Trustee
with respect to Debt Securities and Coupons, if any, of any series
shall be determined solely by the express provisions of this
Indenture, and the Trustee shall not be liable except for the
performance of such duties and obligations with respect to such series
as are specifically set forth in this Indenture, and no implied
covenants or obligations with respect to such series shall be read
into this Indenture against the Trustee; and
(ii) in the absence of bad faith on the part of
the Trustee, the Trustee may conclusively rely, as to the truth of the
statements and the correctness of the opinions expressed therein, upon
any certificates or opinions furnished to the Trustee and conforming
to the requirements of this Indenture; but in the case of any such
certificates or opinions which by any provision hereof are
specifically required to be furnished to the Trustee, the Trustee
shall be under a duty to examine the same to determine whether or not
they conform to the requirements of this Indenture; but the Trustee
shall examine the evidence furnished to it pursuant to Section 5.03 to
determine whether or not such evidence conforms to the requirement of
this Indenture;
(iii) the Trustee shall not be liable for an error
of judgment made in good faith by a responsible officer, unless it
shall be proved that the Trustee was negligent in ascertaining the
pertinent facts; and
(iv) the Trustee shall not be liable with respect
to any action taken or omitted to be taken by it with respect to Debt
Securities of any series in good faith in accordance with the
direction of the Holders of not less than a majority in aggregate
principal amount of the Outstanding Debt Securities of that series
relating to the time, method and place of conducting any proceeding
for any remedy available to the Trustee, or exercising any trust or
power conferred upon the Trustee, under this Indenture with respect to
Debt Securities of such series.
None of the provisions of this Indenture shall require the Trustee to
expend or risk its own funds or otherwise incur any Personal financial
liability in the performance of any of its duties hereunder, or in the exercise
of any of its rights or powers, if there shall be 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.
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Section 7.02. CERTAIN RIGHTS OF TRUSTEE. Except as otherwise
provided in Section 7.01:
(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 or other paper or document (whether in its original or
facsimile form) believed by it to be genuine and to have been signed or
presented by the proper party or parties;
(b) any request, direction, order or demand of the
Company mentioned herein shall be sufficiently evidenced by a Company Order
(unless other evidence in respect thereof be herein specifically prescribed);
and any resolution of the Board of Directors may be evidenced to the Trustee by
a copy thereof certified by the Secretary or an Assistant Secretary of the
Company;
(c) the Trustee may consult with counsel of its
selection, and the advice of such counsel or any Opinion of Counsel shall be
full and complete authorization and protection in respect of any action taken
or suffered or omitted by it hereunder in good faith and in accordance with
such advice or Opinion of Counsel;
(d) the Trustee shall be under no obligation to exercise
any of the rights or powers vested in it by this Indenture at the request,
order or direction of any of the Holders of Debt Securities or Coupons of any
series pursuant to the provisions of this Indenture, unless such Holders shall
have offered to the Trustee reasonable security or indemnity against the costs,
expenses and liabilities which may be Incurred therein or thereby;
(e) the Trustee shall not be liable for any action taken
or omitted by it in good faith and reasonably believed by it to be authorized
or within the discretion or rights or powers conferred upon it by this
Indenture;
(f) prior to the occurrence of an Event of Default and
after the curing of all Events of Default which may have occurred, 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, approval or other paper or document, unless
requested in writing to do so by the Holders of a majority in aggregate
principal amount of the then Outstanding Debt Securities of a series affected
by such matter; provided, however, that if the payment within a reasonable time
to the Trustee of the costs, expenses or liabilities likely to be Incurred by
it in the making of such investigation is not, in the opinion of the Trustee,
reasonably assured to the Trustee by the security afforded to it by the terms
of this Indenture, the Trustee may require reasonable indemnity against such
costs, expenses or liabilities as a condition to so proceeding. The reasonable
expense of every such investigation shall be paid by the Company or, if paid by
the Trustee, shall be repaid by the Company upon demand;
(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 by it with due
care hereunder; and
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(h) if any property other than cash shall at any time be
subject to a Lien in favor of the Holders, the Trustee, if and to the extent
authorized by a receivership or bankruptcy court of competent jurisdiction or
by the supplemental instrument subjecting such property to such lien, shall be
entitled to make advances for the purpose of preserving such property or of
discharging tax Liens or other prior Liens or encumbrances thereon.
Section 7.03. TRUSTEE NOT LIABLE FOR RECITALS IN INDENTURE OR IN
DEBT SECURITIES. The recitals contained herein, in the Debt Securities (except
the Trustee's certificate of authentication) and in any Coupons shall be taken
as the statements of the Company, and the Trustee assumes no responsibility for
the correctness of the same. The Trustee makes no representations as to the
validity or sufficiency of this Indenture or of the Debt Securities or Coupons,
if any, of any series, except that the Trustee represents that it is duly
authorized to execute and deliver this Indenture, authenticate the Debt
Securities and perform its obligations hereunder, and that the statements made
by it or to be made by it in a Statement of Eligibility and Qualification on
Form T-1 supplied to the Company are true and accurate. The Trustee shall not
be accountable for the use or application by the Company of any of the Debt
Securities or of the proceeds thereof.
Section 7.04. TRUSTEE, PAYING AGENT OR REGISTRAR MAY OWN DEBT
SECURITIES. The Trustee or any paying agent or Registrar, in its individual or
any other capacity, may become the owner or pledgee of Debt Securities or
Coupons and subject to the provisions of the Trust Indenture Act relating to
conflicts of interest and preferential claims may otherwise deal with the
Company with the same rights it would have if it were not Trustee, paying agent
or Registrar.
Section 7.05. MONEYS RECEIVED BY TRUSTEE TO BE HELD IN TRUST.
Subject to the provisions of Section 11.05, all moneys received by the Trustee
shall, until used or applied as herein provided, be held in trust for the
purposes for which they were received, but need not be segregated from other
funds except to the extent required by law. The Trustee shall be under no
liability for interest on any moneys received by it hereunder. So long as no
Event of Default shall have occurred and be continuing, all interest allowed on
any such moneys shall be paid from time to time to the Company upon a Company
Order.
Section 7.06. COMPENSATION AND REIMBURSEMENT. The Company
covenants and agrees to pay in Dollars to the Trustee from time to time, and
the Trustee shall be entitled to, reasonable compensation for all services
rendered by it hereunder (which shall not be limited by any provision of law in
regard to the compensation of a trustee of an express trust), and, except as
otherwise expressly provided herein, the Company will pay or reimburse in
Dollars the Trustee upon its request for all reasonable expenses, disbursements
and advances Incurred or made by the Trustee in accordance with any of the
provisions of this Indenture (including the reasonable compensation and the
expenses and disbursements of its agents, attorneys and counsel and of all
Persons not regularly in its employ) except any such expense, disbursement or
advances as may arise from its negligence or bad faith. The Company also
covenants to indemnify in Dollars the Trustee and any predecessor Trustee for,
and to hold it harmless against, any and all loss, liability, claim, damage or
expense Incurred without negligence, wilful misconduct or bad faith on the part
of the Trustee, arising out of or in connection with the acceptance or
administration of this trust or trusts hereunder, including the reasonable
costs and expenses of defending itself against any claim of liability in
connection with
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the exercise or performance of any of its powers or duties hereunder. The
obligations of the Company under this Section 7.06 to compensate and indemnify
the Trustee and to pay or reimburse the Trustee for expenses, disbursements and
advances shall constitute additional indebtedness hereunder and shall survive
the satisfaction and discharge of this Indenture. The Company and the Holders
agree that such additional indebtedness shall be secured by a Lien prior to
that of the Debt Securities and Coupons, if any, upon all property and funds
held or collected by the Trustee, as such, except funds held in trust for the
payment of principal of, and premium, if any, or interest on, particular Debt
Securities and Coupons.
When the Trustee incurs expenses or renders services after an Event of
Default specified in Section 6.01(g) or (h) occurs, the expenses and the
compensation for the services are intended to constitute expenses of
administration under any bankruptcy, insolvency, reorganization or other
similar law.
Section 7.07. RIGHT OF TRUSTEE TO RELY ON AN OFFICERS' CERTIFICATE
WHERE NO OTHER EVIDENCE SPECIFICALLY PRESCRIBED. Except as otherwise provided
in Section 7.01, whenever in the administration of the provisions of this
Indenture the Trustee shall deem it necessary or desirable that a matter be
proved or established prior to taking or suffering or omitting any action
hereunder, such matter (unless other evidence in respect thereof be herein
specifically prescribed) may, in the absence of negligence or bad faith on the
part of the Trustee, be deemed to be conclusively proved and established by an
Officers' Certificate delivered to the Trustee and such certificate, in the
absence of negligence or bad faith on the part of the Trustee, shall be full
warrant to the Trustee for any action taken, suffered or omitted by it under
the provisions of this Indenture upon the faith thereof.
Section 7.08. SEPARATE TRUSTEE; REPLACEMENT OF TRUSTEE. The
Company may, but need not, appoint a separate Trustee for any one or more
series of Debt Securities. The Trustee may resign with respect to one or more
or all series of Debt Securities at any time by giving notice to the Company.
The Holders of a majority in principal amount of the Debt Securities of a
particular series may remove the Trustee for such series and only such series
by so notifying the Trustee and may appoint a successor Trustee. The Company
shall remove the Trustee if:
(a) the Trustee fails to comply with Section 7.10;
(b) the Trustee is adjudged bankrupt or insolvent;
(c) a receiver or other public officer takes charge of
the Trustee or its property; or
(d) the Trustee otherwise becomes incapable of acting.
If the Trustee resigns, is removed by the Company or by the Holders of
a majority in principal amount of the Debt Securities of a particular series
and such Holders do not reasonably promptly appoint a successor Trustee, or if
a vacancy exists in the office of Trustee for any reason (the Trustee in such
event being referred to herein as the retiring Trustee), the Company shall
promptly appoint a successor Trustee. No resignation or removal of the Trustee
and no appointment of a successor
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Trustee shall become effective until the acceptance of appointment by the
successor Trustee in accordance with the applicable requirements of this
Section 7.08.
A successor Trustee shall deliver a written acceptance of its
appointment to the retiring Trustee and to the Company. Thereupon the
resignation or removal of the retiring Trustee shall become effective, and the
successor Trustee shall have all the rights, powers and duties of the Trustee
under this Indenture. The successor Trustee shall mail a notice of its
succession to Holders of Debt Securities of each applicable series. The
retiring Trustee shall promptly transfer all property held by it as Trustee to
the successor Trustee, subject to the Lien provided for in Section 7.06.
If a successor Trustee does not take office within 60 days after the
retiring Trustee gives notice of resignation or is removed, the retiring
Trustee or the Holders of 25% in principal amount of the Debt Securities of any
applicable series may petition any court of competent jurisdiction for the
appointment of a successor Trustee for the Debt Securities of such series.
If the Trustee fails to comply with Section 7.10, any Holder of Debt
Securities of any applicable series may petition any court of competent
jurisdiction for the removal of the Trustee and the appointment of a successor
Trustee for the Debt Securities of such series.
Notwithstanding the replacement of the Trustee pursuant to this
Section 7.08, the Company's obligations under Section 7.06 shall continue for
the benefit of the retiring Trustee.
In the case of the appointment hereunder of a separate or successor
trustee with respect to the Debt Securities of one or more series, the Company,
any retiring Trustee and each successor or separate Trustee with respect to the
Debt Securities of any applicable series shall execute and deliver an Indenture
supplemental hereto (i) which shall contain such provisions as shall be deemed
necessary or desirable to confirm that all the rights, powers, trusts and
duties of any retiring Trustee with respect to the Debt Securities of any
series as to which any such retiring Trustee is not retiring shall continue to
be vested in such retiring Trustee and (ii) that shall add to or change any of
the provisions of this Indenture as shall be necessary to provide for or
facilitate the administration of the trusts hereunder by more than one trustee,
it being understood that nothing herein or in such supplemental Indenture shall
constitute such Trustees co-trustees of the same trust and that each such
separate, retiring or successor 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.
Section 7.09. SUCCESSOR TRUSTEE BY MERGER. If the Trustee
consolidates with, merges or converts into, or transfers all or substantially
all its corporate trust business or assets to, another corporation or banking
association, the resulting, surviving or transferee corporation or banking
association without any further act shall be the successor Trustee.
In case at the time such successor or successors by merger, conversion
or consolidation to the Trustee shall succeed to the trusts created by this
Indenture any of the Debt Securities shall have been authenticated but not
delivered, any such successor to the Trustee may adopt the certificate of
authentication of any predecessor trustee, and deliver such Debt Securities so
authenticated; and in case at that time any of the Debt Securities shall not
have been authenticated, any successor to the
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Trustee may authenticate such Debt Securities either in the name of any
predecessor hereunder or in the name of the successor to the Trustee; and in
all such cases such certificates shall have the full force which it is anywhere
in the Debt Securities or in this Indenture provided that the certificate of
the Trustee shall have.
Section 7.10. ELIGIBILITY; DISQUALIFICATION. The Trustee shall at
all times satisfy the requirements of Section 310(a) of the Trust Indenture
Act. The Trustee shall have a combined capital and surplus of at least
$50,000,000 as set forth in its most recent published annual report of
condition. No obligor upon the Debt Securities or Coupons, if any, of a
particular series or Person directly or indirectly controlling, controlled by
or under common control with such obligor shall serve as Trustee upon the Debt
Securities and Coupons of such series. The Trustee shall comply with Section
310(b) of the Trust Indenture Act; provided, however, that there shall be
excluded from the operation of Section 310(b)(1) of the Trust Indenture Act
this Indenture or any indenture or indentures under which other securities or
certificates of interest or participation in other securities of the Company
are outstanding if the requirements for such exclusion set forth in Section
310(b)(1) of the Trust Indenture Act are met.
Section 7.11. PREFERENTIAL COLLECTION OF CLAIMS AGAINST COMPANY.
The Trustee shall comply with Section 311(a) of the Trust Indenture Act,
excluding any creditor relationship listed in Section 311(b) of the Trust
Indenture Act. A Trustee who has resigned or been removed shall be subject to
Section 311(a) of the Trust Indenture Act to the extent indicated therein.
Section 7.12. COMPLIANCE WITH TAX LAWS. The Trustee hereby agrees
to comply with all U.S. Federal income tax information reporting and
withholding requirements applicable to it with respect to payments of premium
(if any) and interest on the Debt Securities, whether acting as Trustee,
Security Registrar, paying agent or otherwise with respect to the Debt
Securities.
Section 7.13. TRUSTEE'S APPLICATION FOR INSTRUCTIONS FROM THE
COMPANY. Any application by the Trustee for written instructions from the
Company may, at the option of the Trustee, set forth in writing any action
proposed to be taken or omitted by the Trustee under this Indenture and the
date on and/or after which such action shall be taken or such omission shall be
effective. The Trustee shall not be liable to the Company for any action taken
by, or omission of, the Trustee in accordance with a proposal included in such
application on or after the date specified in such application (which date
shall not be less than ten Business Days after the date any officer of the
Company actually receives such application, unless any such officer shall have
consented in writing to any earlier date) unless prior to taking any such
action (or the effective date in the case of an omission), the Trustee shall
have received written instructions in response to such application specifying
the action to be taken or omitted.
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ARTICLE VIII
CONCERNING THE HOLDERS
Section 8.01. EVIDENCE OF ACTION BY HOLDERS. Whenever in this
Indenture it is provided that the Holders of a specified percentage in
aggregate principal amount of the Debt Securities of any or all series may take
action (including the making of any demand or request, the giving of any
direction, notice, consent or waiver or the taking of any other action) the
fact that at the time of taking any such action the Holders of such specified
percentage have joined therein may be evidenced (a) by any instrument or any
number of instruments of similar tenor executed by Holders in Person or by
agent or proxy appointed in writing, (b) by the record of the Holders voting in
favor thereof at any meeting of Holders duly called and held in accordance with
the provisions of Section 5.02 or (c) by a combination of such instrument or
instruments and any such record of such a meeting of Holders.
Section 8.02. PROOF OF EXECUTION OF INSTRUMENTS AND OF HOLDING OF
DEBT SECURITIES. Subject to the provisions of Sections 7.01, 7.02 and 13.11,
proof of the execution of any instrument by a Holder or his agent or proxy
shall be sufficient if made in accordance with such reasonable rules and
regulations as may be prescribed by the Trustee or in such manner as shall be
satisfactory to the Trustee.
The ownership of Registered Securities of any series shall be proved
by the Debt Security Register or by a certificate of the Registrar for such
series.
The ownership of Bearer Securities shall be proved by production of
such Bearer Securities or by a certificate executed by any bank or trust
company, which certificate shall be dated and shall state on the date thereof a
Bearer Security bearing a specified identifying number or other mark was
deposited with or exhibited to the Person executing such certificate by the
Person named in such certificate, or by any other proof of possession
reasonably satisfactory to the Trustee. The holding by the Person named in any
such certificate of any Bearer Security specified therein shall be presumed to
continue for a period of one year unless at the time of determination of such
holding (a) another certificate bearing a later date issued in respect of the
same Bearer Security shall be produced, (b) such Bearer Security shall be
produced by some other Person, (c) such Bearer Security shall have been
registered on the Debt Security Register, if, pursuant to Section 2.03, such
Bearer Security can be so registered, or (d) such Bearer Security shall have
been canceled or paid.
The Trustee may require such additional proof of any matter referred
to in this Section 8.02 as it shall deem necessary.
Section 8.03. WHO MAY BE DEEMED OWNER OF DEBT SECURITIES. Prior to
due presentment for registration of transfer of any Registered Security, the
Company, the Trustee, any paying agent and any Registrar may deem and treat the
Person in whose name any Registered Security shall be registered upon the books
of the Company as the absolute owner of such Registered Security (whether or
not such Registered Security shall be overdue and notwithstanding any notation
of ownership or other writing thereon) for the purpose of receiving payment of
or on account of the
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principal of and premium, if any, and (subject to Section 2.03) interest on
such Registered Security and for all other purposes, and neither the Company
nor the Trustee nor any paying agent nor any Registrar shall be affected by any
notice to the contrary; and all such payments so made to any such Holder for
the time being, or upon his order, shall be valid and, to the extent of the sum
or sums so paid, effectual to satisfy and discharge the liability for moneys
payable upon any such Registered Security.
The Company, the Trustee and any paying agent may deem and treat the
Holder of any Bearer Security or Coupon as the absolute owner of such Bearer
Security or Coupon (whether or not such Debt Security shall be overdue and
notwithstanding any notation of ownership or other writing thereon) for the
purpose of receiving payment of or on account of the principal of and premium,
if any, and (subject to Section 2.03) interest on such Bearer Security or
Coupon and for all other purposes, and neither the Company nor the Trustee nor
any paying agent shall be affected by any notice to the contrary; and all such
payments so made to any such Holder for the time being, or upon his order,
shall be valid and, to the extent of the sum or sums so paid, effectual to
satisfy and discharge the liability for moneys payable upon any such Bearer
Security or Coupon.
None of the Company, the Trustee, any paying agent or the Registrar
will have any responsibility or liability for any aspect of the records
relating to or payments made on account of beneficial ownership interests in a
Global Security or for maintaining, supervising or reviewing any records
relating to such beneficial ownership interests.
Section 8.04. INSTRUMENTS EXECUTED BY HOLDERS BIND FUTURE HOLDERS.
At any time prior to (but not after) the evidencing to the Trustee, as provided
in Section 8.01, of the taking of any action by the Holders of the percentage
in aggregate principal amount of the Debt Securities of any series specified in
this Indenture in connection with such action and subject to the following
paragraph, any Holder of a Debt Security which is shown by the evidence to be
included in the Debt Securities the Holders of which have consented to such
action may, by filing written notice with the Trustee at its corporate trust
office and upon proof of holding as provided in Section 8.02, revoke such
action so far as concerns such Debt Security. Except as aforesaid any such
action taken by the Holder of any Debt Security shall be conclusive and binding
upon such Holder and upon all future Holders and owners of such Debt Security
and all past, present and future Holders of Coupons, if any, appertaining
thereto, and of any Debt Security issued upon transfer thereof or in exchange
or substitution therefor, irrespective of whether or not any notation in regard
thereto is made upon such Debt Security or such other Debt Securities or
Coupons. Any action taken by the Holders of the percentage in aggregate
principal amount of the Debt Securities of any series specified in this
Indenture in connection with such action shall be conclusively binding upon the
Company, the Trustee and the Holders of all the Securities and Coupons of such
series.
The Company may, but shall not be obligated to, fix a record date for
the purpose of determining the Holders of Registered Securities entitled to
give their consent or take any other action required or permitted to be taken
pursuant to this Indenture. If a record date is fixed, then notwithstanding
the immediately preceding paragraph, those Persons who were Holders of
Registered Securities at such record date (or their duly designated proxies),
and only those Persons, shall be entitled to give such consent or to revoke any
consent previously given or to take any such
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action, whether or not such Persons continue to be Holders of Registered
Securities after such record date. No such consent shall be valid or effective
for more than 120 days after such record date unless the consent of the Holders
of the percentage in aggregate principal amount of the Debt Securities of such
series specified in this Indenture shall have been received within such 120-day
period.
ARTICLE IX
SUPPLEMENTAL INDENTURES
Section 9.01. PURPOSES FOR WHICH SUPPLEMENTAL INDENTURE MAY BE
ENTERED INTO WITHOUT CONSENT OF HOLDERS. The Company, when authorized by a
resolution of the Board of Directors, and the Trustee may from time to time and
at any time, without the consent of Holders, enter into an Indenture or
Indentures supplemental hereto (which shall conform to the provisions of the
Trust Indenture Act as in force at the date of the execution thereof) for one
or more of the following purposes:
(a) to evidence the succession pursuant to Article X of
another Person to the Company, or successive successions, and the assumption by
the Successor Company (as defined in Section 10.01) of the covenants,
agreements and obligations of the Company in this Indenture and in the Debt
Securities;
(b) to surrender any right or power herein conferred upon
the Company, to add to the covenants of the Company such further covenants,
restrictions, conditions or provisions for the protection of the Holders of all
or any series of Debt Securities and the Coupons, if any, appertaining thereto
(and if such covenants are to be for the benefit of less than all series of
Debt Securities, stating that such covenants are expressly being included
solely for the benefit of such series) as the Board of Directors shall consider
to be for the protection of the Holders of such Debt Securities, and to make
the occurrence, or the occurrence and continuance, of a Default in any of such
additional covenants, restrictions, conditions or provisions a Default or an
Event of Default permitting the enforcement of all or any of the several
remedies provided in this Indenture; provided, that in respect of any such
additional covenant, restriction, condition or provision such supplemental
Indenture may provide for a particular period of grace after Default (which
period may be shorter or longer than that allowed in the case of other
Defaults) or may provide for an immediate enforcement upon such Default or may
limit the remedies available to the Trustee upon such Default or may limit the
right of the Holders of a majority in aggregate principal amount of any or all
series of Debt Securities to waive such default;
(c) to cure any ambiguity or omission or to correct or
supplement any provision contained herein, in any supplemental Indenture or in
any Debt Securities of any series that may be defective or inconsistent with
any other provision contained herein, in any supplemental Indenture or in the
Debt Securities of such series; to convey, transfer, assign, mortgage or pledge
any property to or with the Trustee, or to make such other provisions in regard
to matters or questions arising under this Indenture as shall not adversely
affect the interests of any Holders of Debt Securities of any series;
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(d) to modify or amend this Indenture in such a manner as
to permit the qualification of this Indenture or any Indenture supplemental
hereto under the Trust Indenture Act as then in effect, except that nothing
herein contained shall permit or authorize the inclusion in any Indenture
supplemental hereto of the provisions referred to in Section 316(a)(2) of the
Trust Indenture Act;
(e) to add to or change any of the provisions of this
Indenture to provide that Bearer Securities may be registerable as to
principal, to change or eliminate any restrictions on the payment of principal
of, or premium, if any, on, Registered Securities or of principal of, or
premium, if any, or interest on, Bearer Securities or to permit Registered
Securities to be exchanged for Bearer Securities; provided, that any such
action shall not adversely affect the interests of the Holders of Debt
Securities or any Coupons of any series in any material respect or permit or
facilitate the issuance of Debt Securities of any series in uncertificated
form;
(f) to comply with Article X;
(g) in the case of any Debt Securities and Coupons, if
any, appertaining thereto subordinated pursuant to Article XII, to make any
change in Article XII that would limit or terminate the benefits available to
any holder of Senior Indebtedness (or Representatives therefor) under Article
XII;
(h) to add Guarantees with respect to any or all of the
Debt Securities or to secure any or all of the Debt Securities;
(i) to make any change that does not adversely affect the
rights of any Holder;
(j) to add to, change or eliminate any of the provisions
of this Indenture in respect of one or more series of Debt Securities;
provided, however, that any such addition, change or elimination not otherwise
permitted under this Section 9.01 shall (i) neither (A) apply to any Debt
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 Debt Security with respect to such provision
or (ii) shall become effective only when there is no such Debt Security
Outstanding;
(k) to evidence and provide for the acceptance of
appointment hereunder by a successor or separate Trustee with respect to the
Debt 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;
(l) to establish the form or terms of Debt Securities and
Coupons, if any, of any series as permitted by Sections 2.01 and 2.03; and
(m) to provide for uncertificated Debt Securities in
addition to or in place of certificated Debt Securities (provided that the
uncertificated Debt Securities are issued in registered form for purposes of
Section 163(f) of the Internal Revenue Code of 1986, as amended, or in a
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manner such that the uncertificated Debt Securities are described in Section
163(f)(2)(B) of the Internal Revenue Code of 1986, as amended).
The Trustee is hereby authorized to join with the Company in the
execution of any such supplemental Indenture, to make any further appropriate
agreements and stipulations which may be therein contained and to accept the
conveyance, transfer, assignment, mortgage or pledge of any property
thereunder, but the Trustee shall not be obligated to enter into any such
supplemental Indenture which affects the Trustee's own rights, duties or
immunities under this Indenture or otherwise.
Any supplemental Indenture authorized by the provisions of this
Section 9.01 may be executed by the Company and the Trustee without the consent
of the Holders of any of the Debt Securities or Coupons, if any, appertaining
thereto at the time Outstanding, notwithstanding any of the provisions of
Section 9.02.
In the case of Debt Securities or Coupons, if any, appertaining
thereto subordinated pursuant to Article XII, an amendment under this Section
9.01 may not make any change that adversely affects the rights under Article
XII of any holder of Senior Indebtedness then outstanding unless the holders of
such Senior Indebtedness (or any group or Representative thereof authorized to
give a consent) consent to such change.
After an amendment under this Section 9.01 becomes effective, the
Company shall mail to Holders of Debt Securities of each series affected
thereby a notice briefly describing such amendment. The failure to give such
notice to all such Holders, or any defect therein, shall not impair or affect
the validity of an amendment under this Section 9.01.
Section 9.02. MODIFICATION OF INDENTURE WITH CONSENT OF HOLDERS OF
DEBT SECURITIES. Without notice to any Holder but with the consent (evidenced
as provided in Section 8.01) of the Holders of not less than a majority in
aggregate principal amount of the Outstanding Debt Securities of each series
affected by such supplemental Indenture, the Company, when authorized by a
resolution of the Board of Directors, and the Trustee may from time to time and
at any time enter into an Indenture or Indentures supplemental hereto (which
shall conform to the provisions of the Trust Indenture Act as in force at the
date of execution thereof) for the purpose of adding any provisions to or
changing in any manner or eliminating any of the provisions of this Indenture
or of any supplemental Indenture or of modifying in any manner the rights of
the Holders of the Debt Securities of such series; provided, that no such
supplemental Indenture, without the consent of the Holders of each Debt
Security so affected, shall (a) reduce the percentage in principal amount of
Debt Securities of any series whose Holders must consent to an amendment; (b)
reduce the rate of or extend the time for payment of interest on any Debt
Security or Coupon or reduce the amount of any payment to be made with respect
to any Coupon; (c) reduce the principal of or extend the Stated Maturity of any
Debt Security; (d) reduce the premium payable upon the redemption of any Debt
Security or change the time at which any Debt Security may or shall be redeemed
in accordance with Article III; (e) make any Debt Security or Coupon payable in
Currency other than that stated in the Debt Security; (f) in the case of any
Debt Security or Coupons, if any, appertaining thereto subordinated pursuant to
Article XII, make any change in Article XII that adversely affects the rights
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of any Holder under Article XII; (g) release any security that may have been
granted in respect of the Debt Securities; (h) impair the right of a Holder of
Debt Securities to receive payment of principal of and interest on such
Holder's Debt Securities on or after the due dates therefor or to institute
suit for the enforcement of or with respect to such Holder's Debt Securities;
(i) make any change in Section 6.06 or this Section 9.02; (j) change any
obligation of the Company to pay additional interest pursuant to Section 4.06;
or (k) limit the obligation of the Company to maintain a paying agency outside
the United States for payment on Bearer Securities as provided in Section 4.02
or limit the obligation of the Company to redeem a Bearer Security as provided
in Section 3.02(b).
A supplemental Indenture which changes or eliminates any covenant or
other provision of this Indenture which has been expressly included solely for
the benefit of one or more particular series of Debt Securities and Coupons, if
any, or which modifies the rights of the Holders of Debt Securities and Coupons
of such series with respect to such covenant or other provision, shall be
deemed not to affect the rights under this Indenture of the Holders of Debt
Securities and Coupons, if any, of any other series.
Upon the request of the Company, accompanied by a copy of a resolution
of the Board of Directors authorizing the execution of any such supplemental
Indenture, and upon the filing with the Trustee of evidence of the consent of
Holders as aforesaid, the Trustee shall join with the Company in the execution
of such supplemental Indenture unless such supplemental Indenture affects the
Trustee's own rights, duties or immunities under this Indenture or otherwise,
in which case the Trustee may in its discretion but shall not be obligated to
enter into such supplemental Indenture.
It shall not be necessary for the consent of the Holders under this
Section 9.02 to approve the particular form of any proposed supplemental
Indenture, but it shall be sufficient if such consent shall approve the
substance thereof.
In the case of any Debt Securities or Coupons, if any, appertaining
thereto, subordinated pursuant to Article XII, an amendment under this Section
9.02 may not make any change that adversely affects the rights under Article
XII of any holder of Senior Indebtedness then outstanding unless the holders of
such Senior Indebtedness (or any group or Representative thereof authorized to
give a consent) consent to such change.
After an amendment under this Section 9.02 becomes effective, the
Company shall mail to Holders of Debt Securities of each series affected
thereby a notice briefly describing such amendment. The failure to give such
notice to all such Holders, or any defect therein, shall not impair or affect
the validity of an amendment under this Section 9.02.
Section 9.03. EFFECT OF SUPPLEMENTAL INDENTURES. Upon the execution
of any supplemental Indenture pursuant to the provisions of this Article IX,
this Indenture shall be and be deemed to be modified and amended in accordance
therewith and the respective rights, limitations of rights, obligations, duties
and immunities under this Indenture of the Trustee, the Company and the Holders
shall thereafter be determined, exercised and enforced hereunder subject in all
respects to such modifications and amendments, and all the terms and conditions
of any such supplemental Indenture
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shall be and be deemed to be part of the terms and conditions of this Indenture
for any and all purposes.
The Trustee, subject to the provisions of Sections 7.01 and 7.02, may
receive an Officers' Certificate and an Opinion of Counsel as conclusive
evidence that any such supplemental Indenture complies with the provisions of
this Article IX.
Section 9.04. DEBT SECURITIES MAY BEAR NOTATION OF CHANGES BY
SUPPLEMENTAL INDENTURES. Debt Securities and Coupons, if any, of any series
authenticated and delivered after the execution of any supplemental Indenture
pursuant to the provisions of this Article IX 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. New Debt Securities and Coupons
of any series so modified as to conform, in the opinion of the Trustee and the
Board of Directors, to any modification of this Indenture contained in any such
supplemental Indenture may be prepared and executed by the Company,
authenticated by the Trustee and delivered in exchange for the Debt Securities
and Coupons of such series then Outstanding. Failure to make the appropriate
notation or to issue a new Debt Security or Coupon of such series shall not
affect the validity of such amendment.
Section 9.05. PAYMENT FOR CONSENT. Neither the Company nor any
Affiliate of the Company shall, directly or indirectly, pay or cause to be paid
any consideration, whether by way of interest, fee or otherwise, to any Holder
for or as an inducement to any consent, waiver or amendment of any of the terms
or provisions of this Indenture or the Debt Securities or Coupons, if any,
appertaining thereto unless such consideration is offered to be paid to all
Holders that so consent, waive or agree to amend in the time frame set forth in
solicitation documents relating to such consent, waiver or agreement.
ARTICLE X
CONSOLIDATION, MERGER, SALE OR CONVEYANCE
Section 10.01. CONSOLIDATIONS AND MERGERS OF THE COMPANY. The
Company shall not consolidate with or merge with or into any Person, or convey,
transfer or lease all or substantially all its assets, or permit any Person to
consolidate with or merge into or convey, transfer or lease substantially all
its assets to the Company, unless: (a) either (i) the Company shall be the
continuing Person in the case of a merger or (ii) the resulting, surviving or
transferee Person if other than the Company (the "Successor Company") shall be
a corporation organized and existing under the laws of the United States, any
State thereof or the District of Columbia and the Successor Company shall
expressly assume, by an Indenture supplemental hereto, executed and delivered
to the Trustee, in form satisfactory to the Trustee, all the obligations of the
Company under the Debt Securities and Coupons, if any, according to their
tenor, and this Indenture; (b) immediately after giving effect to such
transaction (and treating any Indebtedness which becomes an obligation of the
Successor Company or any Subsidiary of the Company as a result of such
transaction as having been Incurred by the Successor Company or such Subsidiary
at the time of such transaction), no Default or Event of Default would occur or
be continuing; (c) the Successor Company waives any right to redeem any
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Bearer Security under circumstances in which the Successor Company would be
entitled to redeem such Bearer Security but the Company would not have been so
entitled to redeem if the consolidation, merger, conveyance, transfer or lease
had not occurred; and (d) the Company shall have delivered to the Trustee an
Officers' Certificate and an Opinion of Counsel, each stating that such
consolidation, merger or transfer and such supplemental Indenture (if any)
comply with this Indenture.
Section 10.02. RIGHTS AND DUTIES OF SUCCESSOR CORPORATION. In case
of any consolidation or merger, or conveyance or transfer of the assets of the
Company as an entirety or virtually as an entirety in accordance with Section
10.01, the Successor Company shall succeed to and be substituted for the
Company, with the same effect as if it had been named herein as the party of
the first part, and the predecessor corporation shall be relieved of any
further obligation under the Indenture and the Securities. The Successor
Company thereupon may cause to be signed, and may issue either in its own name
or in the name of the Company, any or all the Debt Securities issuable
hereunder which theretofore shall not have been signed by the Company and
delivered to the Trustee; and, upon the order of the Successor Company, instead
of the Company, and subject to all the terms, conditions and limitations in
this Indenture prescribed, the Trustee shall authenticate and shall deliver any
Debt Securities and Coupons, if any, appertaining thereto, which previously
shall have been signed and delivered by the officers of the Company to the
Trustee for authentication, and any Debt Securities and Coupons, if any,
appertaining thereto, which the Successor Company thereafter shall cause to be
signed and delivered to the Trustee for that purpose. All the Debt Securities
and Coupons, if any, appertaining thereto so issued shall in all respects have
the same legal rank and benefit under this Indenture as the Debt Securities and
Coupons, if any, appertaining thereto theretofore or thereafter issued in
accordance with the terms of this Indenture as though all such Debt Securities
and Coupons had been issued at the date of the execution hereof.
In case of any such consolidation, merger, sale or conveyance such
changes in phraseology and form (but not in substance) may be made in the Debt
Securities and Coupons, if any, appertaining thereto thereafter to be issued as
may be appropriate.
ARTICLE XI
SATISFACTION AND DISCHARGE OF
INDENTURE; DEFEASANCE; UNCLAIMED MONEYS
Section 11.01. APPLICABILITY OF ARTICLE. If, pursuant to Section
2.03, provision is made for the defeasance of Debt Securities of a series and
if the Debt Securities of such series are Registered Securities and denominated
and payable only in Dollars (except as provided pursuant to Section 2.03), then
the provisions of this Article XI relating to defeasance of Debt Securities
shall be applicable except as otherwise specified pursuant to Section 2.03 for
Debt Securities of such series. Defeasance provisions, if any, for Debt
Securities denominated in a Foreign Currency or for Bearer Securities may be
specified pursuant to Section 2.03.
Section 11.02. SATISFACTION AND DISCHARGE OF INDENTURE; DEFEASANCE.
(a) If at any time (i) the Company shall have delivered to the Trustee for
cancelation all Debt Securities of any series
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theretofore authenticated and delivered (other than (A) Coupons appertaining to
Bearer Securities of such series called for redemption and maturing after the
relevant redemption date, surrender of which has been waived, (B) any Debt
Securities and Coupons of such series which shall have been destroyed, lost or
stolen and which shall have been replaced or paid as provided in Section 2.09
and (C) Debt Securities and Coupons for whose payment money has theretofore
been deposited in trust and thereafter repaid to the Company as provided in
Section 11.05) or (ii) all Debt Securities and the Coupons, if any, of such
series not theretofore delivered to the Trustee for cancelation shall have
become due and payable, or are by their terms to become due and payable within
one year or are to be called for redemption within one year under arrangements
satisfactory to the Trustee for the giving of notice of redemption, and the
Company shall deposit with the Trustee as trust funds the entire amount in the
Currency in which such Debt Securities are denominated (except as otherwise
provided pursuant to Section 2.03) sufficient to pay at maturity or upon
redemption all Debt Securities of such series not theretofore delivered to the
Trustee for cancelation, including principal and premium, if any, and interest
due or to become due on such date of maturity or redemption date, as the case
may be, and if in either case the Company shall also pay or cause to be paid
all other sums payable hereunder by the Company, then this Indenture shall
cease to be of further effect (except as to any surviving rights of
registration of transfer or exchange of such Debt Securities herein expressly
provided for and rights to receive payments of principal of, and premium, if
any, and interest on, such Debt Securities and any right to receive additional
interest as provided in Section 4.06) with respect to the Debt Securities of
such series, and the Trustee, on demand of the Company accompanied by an
Officers' Certificate and an Opinion of Counsel and at the cost and expense of
the Company, shall execute proper instruments acknowledging satisfaction of and
discharging this Indenture.
(b) Subject to Sections 11.02(c), 11.03 and 11.07, the
Company at any time may terminate, with respect to Debt Securities of a
particular series, all its obligations under the Debt Securities of such series
and this Indenture with respect to the Debt Securities of such series ("legal
defeasance option") or the operation of Sections 6.01(d), (e), (f), (i) and (j)
("covenant defeasance option"). The Company may exercise its legal defeasance
option notwithstanding its prior exercise of its covenant defeasance option.
If the Company exercises its legal defeasance option, payment of the
Debt Securities of the defeased series may not be accelerated because of an
Event of Default. If the Company exercises its covenant defeasance option,
payment of the Debt Securities of the defeased series may not be accelerated
because of an Event of Default specified in Sections 6.01(d), (e), (f), (i) and
(j) (except to the extent covenants or agreements referenced in such Sections
remain applicable).
Upon satisfaction of the conditions set forth herein and upon request
of the Company, the Trustee shall acknowledge in writing the discharge of those
obligations that the Company terminates.
(c) Notwithstanding clauses (a) and (b) above, the
Company's obligations in Sections 2.07, 2.09, 4.02, 4.04, 5.01, 7.06, 7.10,
11.05, 11.06 and 11.07 shall survive until the Debt Securities of the defeased
series have been paid in full. Thereafter, the Company's obligations in
Sections 7.06, 11.05 and 11.06 shall survive.
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Section 11.03. CONDITIONS OF DEFEASANCE. The Company may exercise
its legal defeasance option or its covenant defeasance option with respect to
Debt Securities of a particular series only if:
(a) the Company irrevocably deposits in trust with the
Trustee cash or U.S. Government Obligations for the payment of principal of,
and premium, if any, and interest on, the Debt Securities of such series to
maturity or redemption, as the case may be;
(b) the Company delivers to the Trustee a certificate
from a nationally recognized firm of independent accountants expressing their
opinion that the payments of principal and interest when due and without
reinvestment on the deposited U.S. Government Obligations plus any deposited
money without investment will provide cash at such times and in such amounts as
will be sufficient to pay the principal, premium and interest when due on all
the Debt Securities of such series to maturity or redemption, as the case may
be;
(c) 123 days pass after the deposit is made and during
the 123-day period no Default specified in Section 6.01(g) or (h) with respect
to the Company occurs which is continuing at the end of the period;
(d) no Default has occurred and is continuing on the date
of such deposit and after giving effect thereto;
(e) the deposit does not constitute a default under any
other agreement binding on the Company and, if the Debt Securities of such
series are subordinated pursuant to Article XII, is not prohibited by Article
XII;
(f) the Company delivers to the Trustee an Opinion of
Counsel to the effect that the trust resulting from the deposit does not
constitute, or is qualified as, a regulated investment company under the
Investment Company Act of 1940;
(g) in the event of the legal defeasance option, the
Company shall have delivered to the Trustee an Opinion of Counsel stating that
(i) the Company has received from the Internal Revenue Service a ruling, or
(ii) since the date of this Indenture there has been a change in the applicable
Federal income tax law, in either case of the effect that, and based thereon
such Opinion of Counsel shall confirm that, the Holders of Debt Securities of
such series will not recognize income, gain or loss for Federal income tax
purposes as a result of such defeasance and will be subject to Federal income
tax on the same amounts, in the same manner and at the same times as would have
been the case if such defeasance had not occurred;
(h) in the event of the covenant defeasance option, the
Company shall have delivered to the Trustee an Opinion of Counsel to the effect
that the Holders of Debt Securities of such series will not recognize income,
gain or loss for Federal income tax purposes as a result of such covenant
defeasance and will be subject to Federal income tax on the same amounts, in
the same manner and at the same times as would have been the case if such
covenant defeasance had not occurred; and
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(i) the Company delivers to the Trustee an Officers'
Certificate and an Opinion of Counsel, each stating that all conditions
precedent to the defeasance and discharge of the Debt Securities of such series
as contemplated by this Article XI have been complied with.
Before or after a deposit, the Company may make arrangements
satisfactory to the Trustee for the redemption of Debt Securities of such
series at a future date in accordance with Article III.
Section 11.04. APPLICATION OF TRUST MONEY. The Trustee shall hold
in trust money or U.S. Government Obligations deposited with it pursuant to
this Article XI. It shall apply the deposited money and the money from U.S.
Government Obligations through any paying agent and in accordance with this
Indenture to the payment of principal of, and premium, if any, and interest on,
the Debt Securities and Coupons, if any, of the defeased series. In the event
the Debt Securities and Coupons, if any, of the defeased series are
subordinated pursuant to Article XII, money and securities so held in trust are
not subject to Article XII.
Section 11.05. REPAYMENT TO COMPANY. The Trustee and any paying
agent shall promptly turn over to the Company upon request any excess money or
securities held by them at any time.
Subject to any applicable abandoned property law, the Trustee and any
paying agent shall pay to the Company upon request any money held by them for
the payment of principal, premium or interest that remains unclaimed for two
years, and, thereafter, Holders entitled to such money must look to the Company
for payment as general creditors.
Section 11.06. INDEMNITY FOR U.S. GOVERNMENT OBLIGATIONS. The
Company shall pay and shall indemnify the Trustee and the Holders against any
tax, fee or other change imposed on or assessed against deposited U.S.
Government Obligations or the principal and interest received on such U.S.
Government Obligations.
Section 11.07. REINSTATEMENT. If the Trustee or any paying agent is
unable to apply any money or U.S. Government Obligations in accordance with
this Article XI by reason of any legal proceeding or by reason of any order or
judgment of any court or government authority enjoining, restraining or
otherwise prohibiting such application, the Company's obligations under this
Indenture and the Debt Securities of the defeased series shall be revived and
reinstated as though no deposit had occurred pursuant to this Article XI until
such time as the Trustee or any paying agent is permitted to apply all such
money or U.S. Government Obligations in accordance with this Article XI.
ARTICLE XII
SUBORDINATION OF DEBT SECURITIES
Section 12.01. APPLICABILITY OF ARTICLE; AGREEMENT TO SUBORDINATE.
The provisions of this Article XII shall be applicable to the Debt Securities
of any series (Debt Securities of such series referred to in this Article XII
as "Subordinated Debt Securities") designated, pursuant to Section
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2.03, as subordinated to Senior Indebtedness. Each Holder by accepting a
Subordinated Debt Security agrees that the Indebtedness evidenced by such
Subordinated Debt Security is subordinated in right of payment, to the extent
and in the manner provided in this Article XII, to the prior payment of all
Senior Indebtedness and that the subordination is for the benefit of and
enforceable by the holders of Senior Indebtedness. All provisions of this
Article XII shall be subject to Section 12.12.
Section 12.02. LIQUIDATION, DISSOLUTION, BANKRUPTCY. Upon any
payment or distribution of the assets of the Company to creditors upon a total
or partial liquidation or a total or partial dissolution of the Company or in a
bankruptcy, reorganization, insolvency, receivership or similar proceeding
relating to the Company or its property:
(a) holders of Senior Indebtedness shall be entitled to
receive payment in full in cash of the Senior Indebtedness (including interest
(if any), accruing on or after the commencement of a proceeding in bankruptcy,
whether or not allowed as a claim against the Company in such bankruptcy
proceeding) before Holders of Subordinated Debt Securities shall be entitled to
receive any payment of principal of, or premium, if any, or interest on, the
Subordinated Debt Securities; and
(b) until the Senior Indebtedness is paid in full, any
distribution to which Holders of Subordinated Debt Securities would be entitled
but for this Article XII shall be made to holders of Senior Indebtedness as
their interests may appear, except that such Holders may receive shares of
stock and any debt securities that are subordinated to Senior Indebtedness to
at least the same extent as the Subordinated Debt Securities.
Section 12.03. DEFAULT ON SENIOR INDEBTEDNESS. The Company may not
pay the principal of, or premium, if any, or interest on, the Subordinated Debt
Securities or make any deposit pursuant to Article XI and may not repurchase,
redeem or otherwise retire (except, in the case of Subordinated Debt Securities
that provide for a mandatory sinking fund pursuant to Section 3.05, by the
delivery of Subordinated Debt Securities by the Company to the Trustee pursuant
to the first paragraph of Section 3.06) any Debt Securities (collectively, "pay
the Subordinated Debt Securities") if (a) any principal, premium or interest in
respect of Senior Indebtedness is not paid within any applicable grace period
(including at maturity) or (b) any other default on Senior Indebtedness occurs
and the maturity of such Senior Indebtedness is accelerated in accordance with
its terms unless, in either case, (i) the default has been cured or waived and
any such acceleration has been rescinded or (ii) such Senior Indebtedness has
been paid in full in cash; provided, however, that the Company may pay the
Subordinated Debt Securities without regard to the foregoing if the Company and
the Trustee receive written notice approving such payment from the
Representative of each issue of Designated Senior Indebtedness. During the
continuance of any default (other than a default described in clause (a) or (b)
of the preceding sentence) with respect to any Senior Indebtedness pursuant to
which the maturity thereof may be accelerated immediately without further
notice (except such notice as may be required to effect such acceleration) or
the expiration of any applicable grace periods, the Company may not pay the
Subordinated Debt Securities for a period (a "Payment Blockage Period")
commencing upon the receipt by the Company and the Trustee of written notice of
such default from the Representative of any Designated Senior Indebtedness
specifying an election to effect a Payment Blockage Period (a "Blockage
Notice") and ending 179 days thereafter (or earlier
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if such Payment Blockage Period is terminated (A) by written notice to the
Trustee and the Company from the Person or Persons who gave such Blockage
Notice, (B) by repayment in full in cash of such Designated Senior Indebtedness
or (C) because the default giving rise to such Blockage Notice is no longer
continuing). Notwithstanding the provisions described in the immediately
preceding sentence (but subject to the provisions contained in the first
sentence of this Section 12.03), unless the holders of such Designated Senior
Indebtedness or the Representative of such holders shall have accelerated the
maturity of such Designated Senior Indebtedness, the Company may resume
payments on the Subordinated Debt Securities after such Payment Blockage
Period. Not more than one Blockage Notice may be given in any consecutive
360-day period, irrespective of the number of defaults with respect to any
number of issues of Senior Indebtedness during such period; provided, however,
that if any Blockage Notice within such 360-day period is given by or on behalf
of any holders of Designated Senior Indebtedness (other than the Bank
Indebtedness), the Representative of the Bank Indebtedness may give another
Blockage Notice within such period; provided, further, however, that in no
event may the total number of days during which any Payment Blockage Period or
Periods is in effect exceed 179 days in the aggregate during any 360
consecutive day period. For purposes of this Section 12.03, no default or
event of default which existed or was continuing on the date of the
commencement of any Payment Blockage Period with respect to the Senior
Indebtedness initiating such Payment Blockage Period shall be, or be made, the
basis of the commencement of a subsequent Payment Blockage Period by the
Representative of such Senior Indebtedness, whether or not within a period of
360 consecutive days, unless such default or event of default shall have been
cured or waived for a period of not less than 90 consecutive days.
Section 12.04. ACCELERATION OF PAYMENT OF DEBT SECURITIES. If
payment of the Subordinated Debt Securities is accelerated because of an Event
of Default, the Company or the Trustee shall promptly notify the holders of the
Designated Senior Indebtedness (or their Representatives) of the acceleration.
Section 12.05. WHEN DISTRIBUTION MUST BE PAID OVER. If a
distribution is made to Holders of Subordinated Debt Securities that because of
this Article XII should not have been made to them, the Holders who receive
such distribution shall hold it in trust for holders of Senior Indebtedness and
pay it over to them as their interests may appear.
Section 12.06. SUBROGATION. After all Senior Indebtedness is paid
in full and until the Subordinated Debt Securities are paid in full, Holders
thereof shall be subrogated to the rights of holders of Senior Indebtedness to
receive distributions applicable to Senior Indebtedness. A distribution made
under this Article XII to holders of Senior Indebtedness which otherwise would
have been made to Holders of Subordinated Debt Securities is not, as between
the Company and such Holders, a payment by the Company on Senior Indebtedness.
Section 12.07. RELATIVE RIGHTS. This Article XII defines the
relative rights of Holders of Subordinated Debt Securities and holders of
Senior Indebtedness. Nothing in this Indenture shall:
(a) impair, as between the Company and Holders of either
Subordinated Debt Securities or Debt Securities, the obligation of the Company,
which is absolute and unconditional,
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to pay principal of, and premium, if any, and interest on, the Subordinated
Debt Securities and the Debt Securities in accordance with their terms; or
(b) prevent the Trustee or any Holder of either
Subordinated Debt Securities or Debt Securities from exercising its available
remedies upon a Default, subject to the rights of holders of Senior
Indebtedness to receive distributions otherwise payable to Holders of
Subordinated Debt Securities.
Section 12.08. SUBORDINATION MAY NOT BE IMPAIRED BY COMPANY. No
right of any holder of Senior Indebtedness to enforce the subordination of the
Indebtedness evidenced by the Subordinated Debt Securities shall be impaired by
any act or failure to act by the Company or by its failure to comply with this
Indenture.
Section 12.09. RIGHTS OF TRUSTEE AND PAYING AGENT. Notwithstanding
Section 12.03, the Trustee or any paying agent may continue to make payments on
Subordinated Debt Securities and shall not be charged with knowledge of the
existence of facts that would prohibit the making of any such payments unless,
not less than two business days prior to the date of such payment, a
responsible officer of the Trustee receives notice satisfactory to it that
payments may not be made under this Article XII. The Company, the Registrar,
any paying agent, a Representative or a holder of Senior Indebtedness may give
the notice; provided, however, that, if an issue of Senior Indebtedness has a
Representative, only the Representative may give the notice.
The Trustee in its individual or any other capacity may hold Senior
Indebtedness with the same rights it would have if it were not Trustee. The
Registrar and any paying agent may do the same with like rights. The Trustee
shall be entitled to all the rights set forth in this Article XII with respect
to any Senior Indebtedness which may at any time be held by it, to the same
extent as any other holder of Senior Indebtedness; and nothing in Article VII
shall deprive the Trustee of any of its rights as such holder. Nothing in this
Article XII shall apply to claims of, or payments to, the Trustee under or
pursuant to Section 7.06.
Section 12.10. DISTRIBUTION OR NOTICE TO REPRESENTATIVE. Whenever a
distribution is to be made or a notice given to holders of Senior Indebtedness,
the distribution may be made and the notice given to their Representative (if
any).
Section 12.11. ARTICLE XII NOT TO PREVENT DEFAULTS OR LIMIT RIGHT TO
ACCELERATE. The failure to make a payment pursuant to the Debt Securities by
reason of any provision in this Article XII shall not be construed as
preventing the occurrence of a Default. Nothing in this Article XII shall have
any effect on the right of the Holders or the Trustee to accelerate the
maturity of either the Subordinated Debt Securities or the Debt Securities, as
the case may be.
Section 12.12. TRUST MONEYS NOT SUBORDINATED. Notwithstanding
anything contained herein to the contrary, payments from money or the proceeds
of U.S. Government Obligations held in trust under Article XI by the Trustee
for the payment of principal of, and premium, if any, and interest on, the
Subordinated Debt Securities or the Debt Securities shall not be subordinated
to the prior payment of any Senior Indebtedness or subject to the restrictions
set forth in this Article XII,
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and none of the Holders thereof shall be obligated to pay over any such amount
to the Company or any holder of Senior Indebtedness of the Company or any other
creditor of the Company.
Section 12.13. TRUSTEE ENTITLED TO RELY. Upon any payment or
distribution pursuant to this Article XII, the Trustee and the Holders shall be
entitled to rely (a) upon any order or decree of a court of competent
jurisdiction in which any proceedings of the nature referred to in Section
12.02 are pending, (b) upon a certificate of the liquidating trustee or agent
or other Person making such payment or distribution to the Trustee or to such
Holders or (c) upon the Representatives for the holders of Senior Indebtedness
for the purpose of ascertaining the Persons entitled to participate in such
payment or distribution, the holders of the Senior Indebtedness and other
Indebtedness of the Company, the amount thereof or payable thereon, the amount
or amounts paid or distributed thereon and all other facts pertinent thereto or
to this Article XII. In the event that the Trustee determines, in good faith,
that evidence is required with respect to the right of any Person as a holder
of Senior Indebtedness to participate in any payment or distribution pursuant
to this Article XII, the Trustee may request such Person to furnish evidence to
the reasonable satisfaction of the Trustee as to the amount of Senior
Indebtedness held by such Person, the extent to which such Person is entitled
to participate in such payment or distribution and other facts pertinent to the
rights of such Person under this Article XII, 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. The
provisions of Sections 7.01 and 7.02 shall be applicable to all actions or
omissions of actions by the Trustee pursuant to this Article XII.
Section 12.14. TRUSTEE TO EFFECTUATE SUBORDINATION. Each Holder by
accepting a Subordinated Debt Security authorizes and directs the Trustee on
his behalf to take such action as may be necessary or appropriate to
acknowledge or effectuate the subordination between the Holders of Subordinated
Debt Securities and the holders of Senior Indebtedness as provided in this
Article XII and appoints the Trustee as attorney-in-fact for any and all such
purposes.
Section 12.15. TRUSTEE NOT FIDUCIARY FOR HOLDERS OF SENIOR
INDEBTEDNESS. The Trustee shall not be deemed to owe any fiduciary duty to the
holders of Senior Indebtedness and shall not be liable to any such holders if
it shall mistakenly pay over or distribute to Holders of Subordinated Debt
Securities or the Company or any other Person, money or assets to which any
holders of Senior Indebtedness shall be entitled by virtue of this Article XII
or otherwise.
Section 12.16. RELIANCE BY HOLDERS OF SENIOR INDEBTEDNESS ON
SUBORDINATION PROVISIONS. Each Holder by accepting a Subordinated Debt
Security acknowledges and agrees that the foregoing subordination provisions
are, and are intended to be, an inducement and a consideration to each holder
of any Senior Indebtedness, whether such Senior Indebtedness was created or
acquired before or after the issuance of the Subordinated Debt Securities, to
acquire and continue to hold, or to continue to hold, such Senior Indebtedness
and such holder of Senior Indebtedness shall be deemed conclusively to have
relied on such subordination provisions in acquiring and continuing to hold, or
in continuing to hold, such Senior Indebtedness.
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ARTICLE XIII
MISCELLANEOUS PROVISIONS
Section 13.01. SUCCESSORS AND ASSIGNS OF COMPANY BOUND BY INDENTURE.
All the covenants, stipulations, promises and agreements in this Indenture
contained by or in behalf of the Company or the Trustee shall bind its
successors and assigns, whether so expressed or not.
Section 13.02. ACTS OF BOARD, COMMITTEE OR OFFICER OF SUCCESSOR
COMPANY VALID. Any act or proceeding by any provision of this Indenture
authorized or required to be done or performed by any board, committee or
officer of the Company shall and may be done and performed with like force and
effect by the like board, committee or officer of any Successor Company.
Section 13.03. REQUIRED NOTICES OR DEMANDS. Except as otherwise
expressly provided in this Indenture, any notice or demand which by any
provision of this Indenture is required or permitted to be given or served by
the Trustee or by the Holders to or on the Company may be given or served by
being deposited postage prepaid in a post office letter box in the United
States addressed (until another address is filed by the Company with the
Trustee) as follows: Pioneer Natural Resources Company, 1400 Williams Square
West, 5205 North O'Connor Boulevard, Irving, Texas 75039, Attention: Chief
Financial Officer. Except as otherwise expressly provided in this Indenture,
any notice, direction, request or demand by the Company or by any Holder to or
upon the Trustee may be given or made, for all purposes, by being deposited
postage prepaid in a post office letter box in the United States addressed to
the corporate trust office of the Trustee initially at 101 Barclay Street,
Floor 21 West, New York, New York 10286; Attention: Corporate Trust Trustee
Administration. The Company or the Trustee by notice to the other may
designate additional or different addresses for subsequent notices or
communications.
Any notice required or permitted to a Registered Holder by the
Company or the Trustee pursuant to the provisions of this Indenture shall be
deemed to be properly mailed by being deposited postage prepaid in a post
office letter box in the United States addressed to such Holder at the address
of such Holder as shown on the Debt Security Register. Any report pursuant to
Section 313 of the Trust Indenture Act shall be transmitted in compliance with
subsection (c) therein.
Any notice required or permitted to a Bearer Holder by the Company or
the Trustee pursuant to this Indenture shall be deemed to be properly given if
published on two separate business days in an Authorized Newspaper or
Newspapers in such Place or Places of Payment specified pursuant to Section
2.03, the first such publication to be not earlier than the earliest date and
not later than two business days prior to the latest date prescribed for the
giving of such notice. Notwithstanding the foregoing, any notice to Holders of
Floating Rate Debt Securities regarding the determination of a periodic rate of
interest, if such notice is required pursuant to Section 2.03, shall be
sufficiently given if given in the manner specified pursuant to Section 2.03.
In the event of suspension of regular mail service or by reason of any
other cause it shall be impracticable to give notice by mail, then such
notification as shall be given with the approval of the Trustee shall
constitute sufficient notice for every purpose hereunder.
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In the event of suspension of publication of any Authorized Newspaper
or by reason of any other cause it shall be impracticable to give notice by
publication, then such notification as shall be given with the approval of the
Trustee shall constitute sufficient notice for every purpose hereunder.
Failure to mail a notice or communication to a Holder or any defect in
it or any defect in any notice by publication as to a Holder shall not affect
the sufficiency of such notice with respect to other Holders. If a notice or
communication is mailed or published in the manner provided above, it is
conclusively presumed duly given.
Section 13.04. INDENTURE AND DEBT SECURITIES TO BE CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. This Indenture, each Debt
Security and each Coupon shall be deemed to be New York contracts, and for all
purposes shall be construed in accordance with the laws of said State (without
reference to principles of conflicts of law).
Section 13.05. OFFICERS' CERTIFICATE AND OPINION OF COUNSEL TO BE
FURNISHED UPON APPLICATION OR DEMAND BY THE COMPANY. Upon any application or
demand by the Company to the Trustee to take any action under any of the
provisions of this Indenture, the Company shall furnish to the Trustee an
Officers' Certificate stating that all conditions precedent provided for in
this Indenture relating to the proposed action have been complied with and an
Opinion of Counsel stating that, in the opinion of such counsel, all such
conditions precedent have been complied with, except that in the case of any
such application or demand as to which the furnishing of such document is
specifically required by any provision of this Indenture relating to such
particular application or demand, no additional certificate or opinion need be
furnished.
Each certificate or opinion provided for in this Indenture and
delivered to the Trustee with respect to compliance with a condition or
covenant provided for in this Indenture shall include (a) a statement that the
Person making such certificate or opinion has read such covenant or condition,
(b) 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, (c) a statement that, in the opinion of such
Person, he has made such examination or investigation as is necessary to enable
him to express an informed opinion as to whether or not such covenant or
condition has been complied with and (d) a statement as to whether or not, in
the opinion of such Person, such condition or covenant has been complied with.
Section 13.06. PAYMENTS DUE ON LEGAL HOLIDAYS. In any case where
the date of maturity of interest on or principal of and premium, if any, on the
Debt Securities of a series or the date fixed for redemption or repayment of
any Debt Security or the making of any sinking fund payment shall not be a
business day at any Place of Payment for the Debt Securities of such series,
then payment of interest or principal and premium, if any, or the making of
such sinking fund payment need not be made on such date at such Place of
Payment, 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 date of maturity or
the date fixed for redemption, and no interest shall accrue for the period
after such date. If a record date is not a business day, the record date shall
not be affected.
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Section 13.07. PROVISIONS REQUIRED BY TRUST INDENTURE ACT TO
CONTROL. If and to the extent that any provision of this Indenture limits,
qualifies or conflicts with another provision included in this Indenture which
is required to be included in this Indenture by any of Sections 310 to 318,
inclusive, of the Trust Indenture Act, such required provision shall control.
Section 13.08. COMPUTATION OF INTEREST ON DEBT SECURITIES.
Interest, if any, on the Debt Securities shall be computed on the basis of a
360-day year of twelve 30-day months, except as may otherwise be provided
pursuant to Section 2.03.
Section 13.09. RULES BY TRUSTEE, PAYING AGENT AND REGISTRAR. The
Trustee may make reasonable rules for action by or a meeting of Holders. The
Registrar and any paying agent may make reasonable rules for their functions.
Section 13.10. NO RECOURSE AGAINST OTHERS. An incorporator or any
past, present or future director, officer, employee or stockholder, as such, of
the Company shall not have any liability for any obligations of the Company
under the Debt Securities, the Coupons or this Indenture or for any claim based
on, in respect of or by reason of such obligations or their creation. By
accepting a Debt Security or Coupon, each Holder shall waive and release all
such liability. The waiver and release shall be part of the consideration for
the issue of the Debt Securities and Coupons.
Section 13.11. SEVERABILITY. In case any provision in this
Indenture, the Debt Securities or the Coupons 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 13.12. EFFECT OF HEADINGS. The article and section headings
herein and in the Table of Contents are for convenience only and shall not
affect the construction hereof.
Section 13.13. INDENTURE MAY BE EXECUTED IN COUNTERPARTS. This
Indenture may be executed in any number of counterparts, each of which shall be
an original; but such counterparts shall together constitute but one and the
same instrument.
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The Trustee hereby accepts the trusts in this Indenture upon the terms
and conditions herein set forth.
IN WITNESS WHEREOF, the parties hereto have caused this Indenture to
be duly signed as of the date first written above.
PIONEER NATURAL RESOURCES COMPANY,
By: /s/ M. Garrett Smith
-----------------------
Name: M. Garrett Smith
Title: Executive Vice President
and Chief Financial Officer
THE BANK OF NEW YORK, as Trustee
By: /s/ Remo Reale
-----------------
Name: Remo Reale
Title: Assistant Vice President
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<PAGE> 1
EXHIBIT 99.2
FIRST SUPPLEMENTAL INDENTURE
THIS FIRST SUPPLEMENTAL INDENTURE, dated as of January 13, 1998 (this
"Supplemental Indenture"), among PIONEER NATURAL RESOURCES COMPANY, a Delaware
corporation (the "Company"), PIONEER NATURAL RESOURCES USA, INC., a Delaware
corporation, as the subsidiary guarantor (the "Subsidiary Guarantor"), and THE
BANK OF NEW YORK, a New York banking association, as trustee (the "Trustee").
Capitalized terms used herein and not otherwise defined have the meanings set
forth in the Indenture referred to below.
RECITALS
A. The Company and the Trustee are parties to that certain
Indenture, dated as of January 13, 1998 (the "Indenture"), pursuant to which
the Company may from time to time issue its debentures, notes, bonds or other
evidences of indebtedness (collectively, the "Debt Securities").
B. Article IX of the Indenture provides that the Company, when
authorized by a resolution of the Board of Directors of the Company, and the
Trustee may, without the consent of the holders of the Debt Securities, enter
into a supplemental indenture to establish the form or terms of Debt Securities
of any series as permitted by Sections 2.01 and 2.03 of the Indenture.
C. The Company desires to issue, and the Subsidiary Guarantor
desires to guarantee, $350,000,000 aggregate principal amount of 6.50% Senior
Notes Due 2008 (the "2008 Notes") and $250,000,000 aggregate principal amount
of 7.20% Senior Notes Due 2028 (the "2028 Notes") and in connection therewith,
the Company and the Subsidiary Guarantor have duly determined to make, execute
and deliver to the Trustee this Supplemental Indenture to set forth the terms
and provisions of the 2008 Notes, the 2028 Notes and the Subsidiary Guarantor's
guarantees thereof (the "Guarantees") as required by the Indenture.
NOW, THEREFORE, in consideration of the mutual agreements and
covenants set forth herein, the parties hereto agree, subject to the terms and
conditions hereinafter set forth, as follows for the benefit of the Trustee and
the Holders of the 2008 Notes and the 2028 Notes, respectively:
Section 1. 2008 Notes. Pursuant to Section 2.03 of the Indenture,
the terms and provisions of the 2008 Notes are as follows:
(a) The title of the 2008 Notes shall be "6.50% Senior
Notes Due 2008."
(b) The 2008 Notes shall be limited to $350,000,000
aggregate principal amount.
(c) The 2008 Notes shall not require any principal or
premium payments prior to maturity on January 15, 2008.
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(d) The rate at which the 2008 Notes shall bear interest
shall be 6.50% per annum; the date from which such interest shall accrue shall
be January 13, 1998; the interest payment dates on which such interest shall be
payable shall be January 15 and July 15, beginning July 15, 1998; and the
record dates for the determination of the holders of the 2008 Notes to whom
such interest is payable shall be the immediately preceding January 1 (for
January 15 payment dates) and July 1 (for July 15 payment dates); the rate at
which the overdue principal shall bear interest shall be 1% per annum in excess
of the rate stated initially in this clause; and the rate at which overdue
installments of interest shall bear interest shall be 1% per annum in excess of
the rate stated initially in this clause to the extent lawful.
(e) Payments of principal of and interest on the 2008
Notes represented by one or more Global Senior Notes initially registered in
the name of The Depository Trust Company (the "Depositary") or its nominee with
respect to the 2008 Notes shall be made by the Company through the Trustee in
immediately available funds to the Depositary or its nominee, as the case may
be.
(f) The 2008 Notes shall be redeemable at any time, at
the option of the Company, in whole or from time to time in part, at the price,
and otherwise in accordance with the terms and provisions, set forth in Section
3 of this Supplemental Indenture and (to the extent they do not conflict with
Section 3 of this Supplemental Indenture) the terms and provisions of Sections
3.03 and 3.04 of the Indenture.
(g) The 2008 Notes shall be represented by one or more
Global Senior Notes deposited with the Depositary and registered in the name of
the nominee of the Depositary.
(h) There shall be no mandatory sinking fund for the
payments of the 2008 Notes.
(i) In addition to the Events of Default set forth in
Section 6.01 of the Indenture, failure on the part of the Guarantor to comply
with Section 4(c) of this Supplemental Indenture shall be an Event of Default
with respect to the 2008 Notes.
(j) The obligations of the Guarantor with respect to the
2008 Notes shall be defeased if the 2008 Notes are defeased or if the Company's
covenants under the Indenture are defeased.
(k) As long as the Depositary or its nominee, or a
successor Depositary or its nominee, is the registered owner of the Global
Senior Notes relating to the 2008 Notes, owners of the beneficial interests in
such Global Senior Notes shall not be entitled to have the 2008 Notes
registered in their names and shall not receive or be entitled to receive
physical delivery of 2008 Notes in definitive form except (i) as provided in
Section 2.15(c) of the Indenture or (ii) if an Event of Default with respect to
the 2008 Notes has occurred and is continuing.
(l) The Bank of New York shall be the Trustee for the
2008 Notes under the Indenture.
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<PAGE> 3
(m) Article X of the Indenture shall apply to the 2008
Notes.
(n) The Subsidiary Guarantor shall execute and deliver
its guarantee, substantially in the form attached hereto as Exhibit A (the
"Guarantee (2008 Notes)"), of the payment of principal of, and premium, if any,
and interest on the 2008 Notes in accordance with Section 4 hereof.
(o) The 2008 Notes shall not be subordinated pursuant to
the provisions of Article XII of the Indenture. The 2008 Notes shall be senior
unsecured obligations of the Company ranking pari passu with other senior
indebtedness of the Company.
(p) The Company shall be subject to all the covenants set
forth in Article IV of the Indenture with respect to the 2008 Notes.
(q) To the extent not set forth herein, the provisions of
Section 2.03 of the Indenture are not applicable.
Section 2. 2028 Notes. Pursuant to Section 2.03 of the Indenture,
the terms and provisions of the 2028 Notes are as follows:
(a) The title of the 2028 Notes shall be "7.20% Senior
Notes Due 2028."
(b) The 2028 Notes shall be limited to $250,000,000
aggregate principal amount.
(c) The 2028 Notes shall not require any principal or
premium payments prior to maturity on January 15, 2028.
(d) The rate at which the 2028 Notes shall bear interest
shall be 7.20% per annum; the date from which such interest shall accrue shall
be January 13, 1998; the interest payment dates on which such interest shall be
payable shall be January 15 and July 15, beginning July 15, 1998; and the
record dates for the determination of the holders of the 2028 Notes to whom
such interest is payable shall be the immediately preceding January 1 (for
January 15 payment dates) and July 1 (for July 15 payment dates); the rate at
which the overdue principal shall bear interest shall be 1% per annum in excess
of the rate stated initially in this clause; and the rate at which overdue
installments of interest shall bear interest shall be 1% per annum in excess of
the rate stated initially in this clause to the extent lawful.
(e) Payments of principal of and interest on the 2028
Notes represented by one or more Global Senior Notes initially registered in
the name of the Depositary or its nominee with respect to the 2028 Notes shall
be made by the Company through the Trustee in immediately available funds to
the Depositary or its nominee, as the case may be.
(f) The 2028 Notes shall be redeemable at any time, at
the option of the Company, in whole or from time to time in part, at the price,
and otherwise in accordance with the terms and provisions, set forth in Section
3 of this Supplemental Indenture and (to the extent they
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do not conflict with Section 3 of this Supplemental Indenture) the terms and
provisions of Sections 3.03 and 3.04 of the Indenture.
(g) The 2028 Notes shall be represented by one or more
Global Senior Notes deposited with the Depositary and registered in the name of
the nominee of the Depositary.
(h) There shall be no mandatory sinking fund for the
payments of the 2028 Notes.
(i) In addition to the Events of Default set forth in
Section 6.01 of the Indenture, failure on the part of the Guarantor to comply
with Section 4(c) of this Supplemental Indenture shall be an Event of Default
with respect to the 2028 Notes.
(j) The obligations of the Guarantor with respect to the
2028 Notes shall be defeased if the 2028 Notes are defeased or if the Company's
covenants under the Indenture are defeased.
(k) As long as the Depositary or its nominee, or a
successor Depositary or its nominee, is the registered owner of the Global
Senior Notes relating to the 2028 Notes, owners of the beneficial interests in
such Global Senior Notes shall not be entitled to have the 2028 Notes
registered in their names and shall not receive or be entitled to receive
physical delivery of 2028 Notes in definitive form except (i) as provided in
Section 2.15(c) of the Indenture or (ii) if an Event of Default with respect to
the 2028 Notes has occurred and is continuing.
(l) The Bank of New York shall be the Trustee for the
2028 Notes under the Indenture.
(m) Article X of the Indenture shall apply to the 2028
Notes.
(n) The Subsidiary Guarantor shall execute and deliver
its guarantee, substantially in the form attached hereto as Exhibit A (the
"Guarantee (2028 Notes)"), of the payment of principal of, and premium, if any,
and interest on the 2028 Notes in accordance with Section 4 hereof.
(o) The 2028 Notes shall not be subordinated pursuant to
the provisions of Article XII of the Indenture. The 2028 Notes shall be senior
unsecured obligations of the Company ranking pari passu with other senior
indebtedness of the Company.
(p) The Company shall be subject to all the covenants set
forth in Article IV of the Indenture with respect to the 2028 Notes.
(q) To the extent not set forth herein, the provisions of
Section 2.03 of the Indenture are not applicable.
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Section 3. Optional Redemption of 2008 Notes and 2028 Notes. The
2008 Notes and the 2028 Notes, as the case may be, will be redeemable at any
time, at the option of the Company, in whole or from time to time in part, upon
not less than 30 and not more than 60 days' notice as provided in the
Indenture, on any date prior to maturity (the "Redemption Date") at a price
equal to 100% of the principal amount thereof plus accrued and unpaid interest,
if any, to the Redemption Date (subject to the right of Holders of record on
the relevant record date to receive interest due on any interest payment date
that is on or prior to the Redemption Date) plus a Make-Whole Premium, if any
(the "Redemption Price"). In no event will a Redemption Price ever be less
than 100% of the principal amount of the 2008 Notes or the 2028 Notes, as
applicable, plus accrued and unpaid interest, if any, to the Redemption Date.
The amount of the Make-Whole Premium with respect to any of the 2008
Notes or the 2028 Notes, as the case may be (or portion thereof) to be redeemed
will be equal to the excess, if any, of:
(a) the sum of the present values, calculated as of the
Redemption Date, of:
(i) each interest payment that, but for such
redemption, would have been payable on such Note (or portion thereof)
being redeemed on each interest payment date occurring after the
Redemption Date (excluding any accrued interest for the period prior
to the Redemption Date); and
(ii) the principal amount that, but for such
redemption, would have been payable at the final maturity of such Note
(or portion thereof) being redeemed; over
(b) the principal amount of such Note (or portion
thereof) being redeemed.
The present values of interest and principal payments referred to in
clause (a) above will be determined in accordance with generally accepted
principles of financial analysis. Such present values will be calculated by
discounting the amount of each payment of interest or principal from the date
that each such payment would have been payable, but for the redemption, to the
Redemption Date at a discount rate equal to the Treasury Yield (as defined
below) plus 20 basis points in the case of the 2008 Notes and the Treasury
Yield plus 25 basis points in the case of the 2028 Notes.
The Make-Whole Premium will be calculated by an independent investment
banking institution of national standing appointed by the Company; provided
that if the Company fails to make such appointment at least 45 business days
prior to the Redemption Date, or if the institution so appointed is unwilling
or unable to make such calculation, such calculation will be made by Salomon
Brothers Inc (or its successor) or, if such firm is unwilling or unable to make
such calculation, by an independent investment banking institution of national
standing appointed by the Trustee (in any such case, an "Independent Investment
Banker").
For purposes of determining the Make-whole Premium, "Treasury Yield"
means a rate of interest per annum equal to the weekly average yield to
maturity of United States Treasury Notes that have a constant maturity that
corresponds to the remaining term to maturity of the applicable Notes,
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calculated to the nearest 1/12th of a year (the "Remaining Term"). The
Treasury Yield will be determined as of the third business day immediately
preceding the applicable Redemption Date.
The weekly average yields of United States Treasury Notes will be
determined by reference to the most recent statistical release published by the
Federal Reserve Bank of New York and designated "H.15 (519) Selected Interest
Rates" or any successor release (the "H.15 Statistical Release"). If the H.15
Statistical Release sets forth a weekly average yield for United States
Treasury Notes having a constant maturity that is the same as the Remaining
Term, then the Treasury Yield will be equal to such weekly average yield. In
all other cases, the Treasury Yield will be calculated by interpolation, on a
straight-line basis, between the weekly average yields on the United States
Treasury Notes that have a constant maturity closest to and greater than the
Remaining Term and the United States Treasury Notes that have a constant
maturity closest to and less than the Remaining Term (in each case as set forth
in the H.15 Statistical Release). Any weekly average yields so calculated by
interpolation will be rounded to the nearest 1/100th of 1%, with any figure of
1/200th of 1% or above being rounded upward. If weekly average yields for
United States Treasury Notes are not available in the H.15 Statistical Release
or otherwise, then the Treasury Yield will be calculated by interpolation of
comparable rates selected by the Independent Investment Banker.
In the case of any partial redemption, selection of the 2008 Notes or
2028 Notes, as the case may be, for redemption will be made by the Trustee on a
pro rata basis, by lot or by such other method as the Trustee in its sole
discretion shall deem to be fair and appropriate, although no such Note of
$1,000 in original principal amount or less shall be redeemed in part. If any
2008 Note or 2028 Note, as the case may be, is to be redeemed in part only, the
notice of redemption relating to such Note shall state the portion of the
principal amount thereof to be redeemed. A new 2008 Note or 2028 Note, as the
case may be, in principal amount equal to the unredeemed portion thereof will
be issued in the name of the Holder thereof upon cancellation of the original
2008 Note or 2028 Note, respectively.
Section 4. Guarantee (2008 Notes) and Guarantee (2028 Notes).
(a) The Guarantee. The Subsidiary Guarantor hereby
unconditionally guarantees to each Holder of the 2008 Notes and to each Holder
of the 2028 Notes, respectively, authenticated and delivered by the Trustee and
to the Trustee and its successors and assigns, irrespective of the validity and
enforceability of this Supplemental Indenture, the Indenture, the 2008 Notes,
the 2028 Notes or the obligations of the Company hereunder or thereunder, that:
(i) the principal of and premium, if any, and interest, on the 2008 Notes and
the 2028 Notes, as the case may be, shall be promptly paid in full when due,
whether at maturity, by acceleration, redemption or otherwise, and interest on
the overdue principal of and interest on premium, if any, and interest, on the
2008 Notes and the 2028 Notes, respectively, if any, if lawful, and all other
obligations of the Company to the Holders of the 2008 Notes and of the 2028
Notes, respectively, or the Trustee hereunder or thereunder shall be promptly
paid in full or performed, all in accordance with the terms hereof and thereof;
and (ii) in case of any extension of time of payment or renewal of any of the
2008 Notes or the 2028 Notes, respectively, or any of such other obligations,
that the same shall be promptly paid
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in full when due or performed in accordance with the terms of the extension or
renewal, whether at stated maturity, by acceleration or otherwise. Failing
payment when due of any amount so guaranteed or any performance so guaranteed
for whatever reason, the Subsidiary Guarantor shall be obligated to pay or
perform the same immediately. The Subsidiary Guarantor hereby agrees that its
obligations hereunder shall be unconditional, irrespective of the validity,
regularity or enforceability of the 2008 Notes, the 2028 Notes, this
Supplemental Indenture or the Indenture, the absence of any action to enforce
the same, any amendment or modification of or waiver or consent by any Holder
with respect to any provisions hereof or thereof, the recovery of any judgment
against the Company, any action to enforce the same, any other circumstance
which might otherwise constitute a legal or equitable discharge or defense of a
guarantor, or any change in the ownership of the Subsidiary Guarantor. The
Subsidiary Guarantor hereby waives diligence, presentment, demand of payment,
filing of claims with a court in the event of insolvency or bankruptcy of the
Company, any right to require a proceeding first against the Company, protest,
notice and all demands whatsoever and covenants that the Subsidiary Guarantor's
guarantee under this Section shall not be discharged except by complete
performance of the obligations of the Company and the Subsidiary Guarantor
contained in the 2008 Notes or the 2028 Notes, as the case may be, this
Supplemental Indenture and the Indenture. If any Holder or the Trustee is
required by any court or otherwise to return to the Company, the Subsidiary
Guarantor or any custodian, trustee, liquidator or other similar official
acting in relation to either the Company or the Subsidiary Guarantor any amount
paid by any thereof to the Trustee or such Holder, the Subsidiary Guarantor's
guarantee under this Section, to the extent theretofore discharged, shall be
reinstated in full force and effect. The Subsidiary Guarantor agrees that it
shall not be entitled to any right of subrogation in relation to the Holders of
the 2008 Notes and the 2028 Notes, respectively, in respect of any obligations
guaranteed hereby until payment in full in cash of all obligations with respect
to the 2008 Notes and the 2028 Notes, as the case may be, guaranteed hereby.
The Subsidiary Guarantor further agrees that, as between itself as guarantor,
on the one hand, and the Holders of the 2008 Notes or the 2028 Notes, as the
case may be, and the Trustee, on the other hand, (x) the maturity of the
obligations guaranteed hereby may be accelerated as provided in Article VI of
the Indenture for the purposes of the Subsidiary Guarantor's guarantee
hereunder, notwithstanding any stay, injunction or other prohibition preventing
such acceleration in respect of the obligations with respect to the 2008 Notes
and the 2028 Notes, as the case may be, guaranteed hereby and (y) in the event
of any declaration of acceleration of such obligations as provided in Article
VI of the Indenture, such obligations (whether or not due and payable) shall
forthwith become due and payable by the Subsidiary Guarantor for the purposes
of its guarantee hereunder. The Subsidiary Guarantor also agrees to pay any
and all costs and expenses (including reasonable attorney's fees and expenses)
incurred by the Trustee or any Holder in enforcing any rights under this
Section.
(b) Execution and Delivery of Guarantee. To evidence its
Guarantee (2008 Notes) and its Guarantee (2028 Notes), respectively, set forth
in Section 4(a), the Subsidiary Guarantor hereby agrees that a notation of such
Guarantee shall be endorsed by an officer of the Subsidiary Guarantor on each
of the 2008 Notes and the 2028 Notes, respectively, authenticated and delivered
by the Trustee, that this Supplemental Indenture shall be executed on behalf of
the Subsidiary Guarantor by its President or one of its Vice Presidents and
that the Company on behalf of the Subsidiary Guarantor shall deliver to the
Trustee an Opinion of Counsel that the foregoing
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have been duly authorized, executed and delivered by the Subsidiary Guarantor
and that such Guarantee is a valid and legally binding obligation of the
Subsidiary Guarantor, enforceable against the Subsidiary Guarantor in
accordance with its terms. The Subsidiary Guarantor hereby agrees that its
Guarantee (2008 Notes) and its Guarantee (2028 Notes) set forth in Section 4(a)
shall remain in full force and effect notwithstanding any failure to endorse on
each of the 2008 Notes and the 2028 Notes, respectively, a notation of the
applicable Guarantee. If an officer of the Subsidiary Guarantor whose
signature is on this Supplemental Indenture or on the applicable Guarantee no
longer holds that office at the time the Trustee authenticates the 2008 Notes
and the 2028 Notes, respectively, on which the applicable Guarantee is
endorsed, the applicable Guarantee shall be valid nevertheless. The delivery
of any of the 2008 Notes and the 2028 Notes, respectively, by the Trustee,
after the authentication thereof hereunder, shall constitute due delivery of
the applicable Guarantee set forth in this Supplemental Indenture on behalf of
the Subsidiary Guarantor.
(c) Subsidiary Guarantor May Consolidate, etc., on
Certain Terms. The Subsidiary Guarantor shall not consolidate with or merge
with or into any Person, or sell all or substantially all its assets, unless
the following conditions have been satisfied:
(i) Either (1) the Subsidiary Guarantor shall be
the continuing Person in the case of a merger, or (2) the resulting,
surviving or transferee Person, if other than the Subsidiary Guarantor
(the "Successor Guarantor"), shall be a corporation organized and
existing under the laws of the United States, any State thereof, or
the District of Columbia and the Successor Guarantor shall expressly
assume all of the obligations of the Subsidiary Guarantor under the
Guarantee (2008 Notes) and the Guarantee (2028 Notes);
(ii) Immediately after giving effect to the
transaction (and treating any Indebtedness that becomes an obligation
of the Successor Guarantor or any Subsidiary of the Subsidiary
Guarantor as a result of the transaction as having been Incurred by
the Successor Guarantor or the Subsidiary at the time of the
transaction), no Default or Event of Default would occur or be
continuing; and
(iii) The Subsidiary Guarantor shall have delivered
to the Trustee an Officers' Certificate and an Opinion of Counsel,
each stating that the consolidation, merger or sale complies with this
Supplemental Indenture.
Upon any consolidation by the Subsidiary Guarantor
with, or merger by the Subsidiary Guarantor into, any other person or any sale
of the properties and assets of the Subsidiary Guarantor as an entirety or
virtually as an entirety as described in the preceding paragraph, the successor
resulting from such consolidation or into which the Subsidiary Guarantor is
merged or the transferee of such sale, will succeed to, and be substituted for,
and may exercise every right and power of, the Subsidiary Guarantor under this
Supplemental Indenture, and thereafter the predecessor (if still in existence)
will be released from its obligations and covenants under this Supplemental
Indenture and all outstanding 2008 Notes and 2028 Notes.
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(d) Release of Guarantee. The Subsidiary Guarantor shall
be released and relieved of any obligations under its Guarantee (2008 Notes)
and its Guarantee (2028 Notes) upon release or other termination of both (A)
that certain Guaranty, dated as of December 18, 1997, by the Subsidiary
Guarantor with respect to the Amended and Restated Credit Facility Agreement
(Primary Facility), dated as of December 18, 1997 (the "Primary Agreement"),
among the Company, NationsBank of Texas, as administrative agent, CIBC Inc., as
documentation agent, Morgan Guaranty Trust Company of New York, as
documentation agent, The Chase Manhattan Bank, as syndication agent, the
co-agents signatory thereto, and the other lenders signatory thereto, and (B)
that certain Guaranty, dated as of December 18, 1997, by the Subsidiary
Guarantor with respect to the Amended and Restated Credit Facility Agreement
(364-Day Facility), dated as of December 18, 1997 (the "364-Day Agreement" and
together with the Primary Agreement, the "United States Credit Facility"),
among the Company, NationsBank of Texas, as administrative agent, CIBC Inc., as
documentation agent, Morgan Guaranty Trust Company of New York, as
documentation agent, The Chase Manhattan Bank, as syndication agent, the co-
agents signatory thereto, and the other lenders signatory thereto (the
foregoing guarantees being referred to herein as the "United States Credit
Facility Guarantees"). Any refinancing, refunding, extension, renewal or
replacement (or successive refinancings, refundings, extensions, renewals or
replacements), as a whole, or in part, of the United States Credit Facility
shall not be deemed a release or other termination of the United States Credit
Facility Guarantees if the Subsidiary Guarantor provides a guarantee or
guarantees with respect to such refinancing, refunding, extension, renewal or
replacement in substantially the same form, and on substantially the same
terms, as the United States Credit Facility Guarantees.
(e) Contribution. The Company agrees that, in the event
a payment shall be made by the Subsidiary Guarantor under the Guarantee (2008
Notes) or the Guarantee (2028 Notes), the Company shall indemnify the
Subsidiary Guarantor in an amount equal to the amount of such payment
multiplied by a fraction, the numerator of which shall be the net worth of the
Company on the date hereof and the denominator of which shall be the aggregate
net worth of the Company and the Subsidiary Guarantor on the date hereof.
Section 5. Ratification. This Supplemental Indenture is executed
and shall be construed as an indenture supplemental to the Indenture and, as
provided in the Indenture, this Supplemental Indenture forms a part of the
Indenture. Except to the extent amended by or supplemented by this
Supplemental Indenture, the Company, the Subsidiary Guarantor and the Trustee
hereby ratify, confirm and reaffirm the Indenture in all respects.
Section 6. Counterparts. This Supplemental Indenture may be
executed in any number of counterparts, each of which so executed shall be an
original, but all such counterparts shall together constitute but one and the
same instrument.
Section 7. Governing Law. The laws of the State of New York shall
govern the construction and interpretation of this Supplemental Indenture,
without regard to principles of conflicts of laws.
-9-
<PAGE> 10
IN WITNESS WHEREOF, the parties hereto have caused this Supplemental
Indenture to be signed on their behalf by their duly authorized representatives
as of the date first above written:
PIONEER NATURAL RESOURCES COMPANY
By: /s/ M. GARRETT SMITH
-------------------------------------------
M. Garrett Smith
Executive Vice President and Chief
Financial Officer
PIONEER NATURAL RESOURCES USA, INC.
By: /s/ M. GARRETT SMITH
-------------------------------------------
M. Garrett Smith
Executive Vice President and Chief
Financial Officer
THE BANK OF NEW YORK, as Trustee
By: /s/ REMO REALE
-------------------------------------------
Remo Reale
Assistant Vice President
Exhibit A - Form of Guarantee
-10-
<PAGE> 11
EXHIBIT A
FORM OF
GUARANTEE
([YEAR] NOTES)
THIS GUARANTEE ([YEAR] NOTES), dated as of January 13, 1998 (this
"Agreement"), is entered into by Pioneer Natural Resources USA, Inc., a
Delaware corporation (the "Subsidiary Guarantor"). Capitalized terms used
herein but not otherwise defined have the meanings set forth in the Indenture
referred to below.
RECITALS:
A. The Subsidiary Guarantor is a wholly-owned subsidiary of
Pioneer Natural Resources Company, a Delaware corporation (the "Company").
B. The Company and The Bank of New York, a New York banking
association, as trustee (the "Trustee"), have entered into that certain
Indenture, dated as of January 13, 1998, as supplemented by that certain First
Supplemental Indenture, dated as of January 13, 1998 (the "Supplemental
Indenture" and collectively the "Indenture"), among the Company, the Subsidiary
Guarantor and the Trustee, pursuant to which the Company has issued, among
other things, $______ in aggregate principal amount of ___% Senior Notes Due
20___ (the "[YEAR] Notes").
NOW, THEREFORE, for good and valuable consideration, the receipt and
adequacy of which is hereby acknowledged, the Subsidiary Guarantor hereby
agrees as follows:
ARTICLE 8
GUARANTEE
1.1 Guarantee. The Subsidiary Guarantor hereby unconditionally
guarantees to each Holder of [YEAR] Notes authenticated and delivered by the
Trustee and to the Trustee and its successors and assigns, irrespective of the
validity and enforceability of the Indenture, the [YEAR] Notes or the
obligations of the Company thereunder, that: (a) the principal of, premium, if
any, and interest on the [YEAR] Notes shall be promptly paid in full when due,
whether at maturity, by acceleration or otherwise, and interest on the overdue
principal of and interest, if any, on any premium and interest on the [YEAR]
Notes, if lawful, and all other obligations of the Company to the Holders or
the Trustee thereunder shall be promptly paid in full or performed, all in
accordance with the terms hereof and thereof; and (b) in case of any extension
of time of payment or renewal of any [YEAR] Notes or any of such other
obligations, that same shall be promptly paid in full when due or performed in
accordance with the terms of the extension or renewal, whether at stated
maturity, by acceleration or otherwise. Failing payment when due of any amount
so guaranteed or any performance so guaranteed for whatever reason, the
Subsidiary Guarantor shall be obligated to pay or perform the same immediately.
The Subsidiary Guarantor hereby agrees that its obligations
A-1
<PAGE> 12
hereunder shall be unconditional, irrespective of the validity, regularity or
enforceability of the [YEAR] Notes, the Supplemental Indenture or the
Indenture, the absence of any action to enforce the same, any amendment or
modification of or waiver or consent by any Holder with respect to any
provisions hereof or thereof, the recovery of any judgment against the Company,
any action to enforce the same, any other circumstance which might otherwise
constitute a legal or equitable discharge or defense of a guarantor, or any
change in the ownership of the Subsidiary Guarantor. The Subsidiary Guarantor
hereby waives diligence, presentment, demand of payment, filing of claims with
a court in the event of insolvency or bankruptcy of the Company, any right to
require a proceeding first against the Company, protest, notice and all demands
whatsoever and covenants that the Subsidiary Guarantor's guarantee under this
Section shall not be discharged except by complete performance of the
obligations of the Company and the Subsidiary Guarantor contained in the [YEAR]
Notes, the Supplemental Indenture and the Indenture. If any Holder or the
Trustee is required by any court or otherwise to return to the Company, the
Subsidiary Guarantor or any custodian, trustee, liquidator or other similar
official acting in relation to either the Company or the Subsidiary Guarantor
any amount paid by any thereof to the Trustee or such Holder, the Subsidiary
Guarantor's guarantee under this Section, to the extent theretofore discharged,
shall be reinstated in full force and effect. The Subsidiary Guarantor agrees
that it shall not be entitled to any right of subrogation in relation to the
Holders of the [YEAR] Notes in respect of any obligations guaranteed hereby
until payment in full in cash of all obligations with respect to the [YEAR]
Notes guaranteed hereby. The Subsidiary Guarantor further agrees that, as
between itself as guarantor, on the one hand, and the Holders of the [YEAR]
Notes and the Trustee, on the other hand, (x) the maturity of the obligations
guaranteed hereby may be accelerated as provided in Article VI of the Indenture
for the purposes of the Subsidiary Guarantor's guarantee hereunder,
notwithstanding any stay, injunction or other prohibition preventing such
acceleration in respect of the obligations with respect to the [YEAR] Notes
guaranteed hereby and (y) in the event of any declaration of acceleration of
such obligations as provided in Article VI of the Indenture, such obligations
(whether or not due and payable) shall forthwith become due and payable by the
Subsidiary Guarantor for the purposes of its guarantee hereunder. The
Subsidiary Guarantor also agrees to pay any and all costs and expenses
(including reasonable attorney's fees and expenses) incurred by the Trustee or
any Holder in enforcing any rights under this Section.
1.2 Continuing Guarantee; Release. This is a continuing guarantee
and shall remain in full force and effect and shall be binding upon the
Subsidiary Guarantor and its respective successors and assigns to the extent
set forth in the Indenture until full and final payment of all of the Company's
obligations under the [YEAR] Notes and the Indenture with respect to the [YEAR]
Notes and shall inure to the benefit of the Trustee and the Holders of [YEAR]
Notes and their successors and assigns and, in the event of any transfer or
assignment of rights by any Holder of [YEAR] Notes or the Trustee, the rights
and privileges herein conferred upon that party shall automatically extend to
and be vested in such transferee or assignee, all subject to the terms and
conditions hereof. The Subsidiary Guarantor shall be released and relieved of
any obligations under this Agreement upon release or other termination of both
(A) that certain Guaranty, dated as of December 18, 1997, by the Subsidiary
Guarantor with respect to the Amended and Restated Credit Facility Agreement
(Primary Facility), dated as of December 18, 1997 (the "Primary Agreement"),
among the Company, NationsBank of Texas, as administrative agent, CIBC Inc., as
documentation agent, Morgan Guaranty Trust Company of New York, as
documentation agent, The Chase
A-2
<PAGE> 13
Manhattan Bank, as syndication agent, the co-agents signatory thereto, and the
other lenders signatory thereto, and (B) that certain Guaranty, dated as of
December 18, 1997, by the Subsidiary Guarantor with respect to the Amended and
Restated Credit Facility Agreement (364-Day Facility), dated as of December 18,
1997 (the "364-Day Agreement" and together with the Primary Agreement, the
"United States Credit Agreement"), among the Company, NationsBank of Texas, as
administrative agent, CIBC Inc., as documentation agent, Morgan Guaranty Trust
Company of New York, as documentation agent, The Chase Manhattan Bank, as
syndication agent, the co-agents signatory thereto, and the other lenders
signatory thereto (the foregoing guarantees being referred to herein as the
"United States Credit Facility Guarantees"). Any refinancing, refunding,
extension, renewal or replacement (or successive refinancings, refundings,
extensions, renewals or replacements), as a whole, or in part, of the United
States Credit Facility shall not be deemed a release or other termination of
the United States Credit Facility Guarantees if the Subsidiary Guarantor
provides a guarantee or guarantees with respect to such refinancing, refunding,
extension, renewal or replacement in substantially the same form, and on
substantially the same terms, as the United States Credit Facility Guarantees.
ARTICLE 2
MISCELLANEOUS
2.1 Headings. The headings contained in this Agreement are for
reference purposes only and shall not affect in any way the meaning or
interpretation of this Agreement.
2.2 Severability. If any provision in this Agreement 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.
2.3 Governing Law. This Agreement shall be governed by and
construed in accordance with the laws of the State of New York, without regard
to principles of conflicts of laws.
A-3
<PAGE> 14
IN WITNESS WHEREOF, the undersigned has caused this Agreement to be
signed by its duly authorized officer as of the date first above written.
PIONEER NATURAL RESOURCES USA, INC.
By:
---------------------------------
M. Garrett Smith
Executive Vice President and
Chief Financial Officer
A-4
<PAGE> 1
EXHIBIT 99.3
FORM OF
6.50% SENIOR NOTES DUE 2008
OF
PIONEER NATURAL RESOURCES COMPANY
[FACE OF SECURITY]
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE
OF THE DEPOSITARY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), NEW YORK, NEW
YORK, TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR
PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR
SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY
PAYMENT IS MADE TO CEDE & CO., OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC) ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR
VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED
OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.
TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN
WHOLE, BUT NOT IN PART, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH
SUCCESSOR'S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE
LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE
INDENTURE REFERRED TO ON THE REVERSE HEREOF.
<PAGE> 2
2
CUSIP NO. 723787 AA 5
No. T-____ $__________
6.50% Senior Notes Due 2008
Pioneer Natural Resources Company, a Delaware corporation,
promises to pay to Cede & Co., or registered assigns, the principal sum of
$__________ Dollars on January 15, 2008.
Interest Payment Dates: January 15 and July 15
Record Dates: January 1 and July 1
Additional provisions of this Security are set forth on the
other side of this Security.
Dated: January 13, 1998 PIONEER NATURAL RESOURCES
COMPANY,
by
-------------------------------------
Name: Scott D. Sheffield
Title: President, Chief Executive
Officer and Assistant
Secretary
by
-------------------------------------
Name: Mark L. Withrow
Title: Executive Vice President,
General Counsel and Secretary
TRUSTEE'S CERTIFICATE
OF AUTHENTICATION
THE BANK OF NEW YORK,
as Trustee, certifies that this is
one of the Debt Securities,
designated 6.50% Senior
Notes Due 2008, referred to
in the Indenture.
by
-------------------------------------
Authorized Signatory
[REVERSE SIDE OF SECURITY]
<PAGE> 3
3
6.50% Senior Notes Due 2008
1. Interest
--------
Pioneer Natural Resources Company, a Delaware corporation (such
corporation, and its successors and assigns under the Indenture hereinafter
referred to, being herein called the "Company"), promises to pay interest on
the principal amount of this Security at the rate per annum shown above. The
Company shall pay interest semiannually on January 15 and July 15 of each year
commencing on July 15, 1998. Interest on the Securities shall accrue from the
most recent date to which interest has been paid or, if no interest has been
paid, from January 13, 1998. Interest shall be computed on the basis of a 360-
day year of twelve 30-day months. The Company shall pay interest on overdue
principal at 1% per annum in excess of the rate borne by the Securities, and it
shall pay interest on overdue installments of interest at such higher rate to
the extent lawful.
2. Method of Payment
-----------------
The Company shall pay interest on the Securities (except defaulted
interest) to the Persons who are registered holders of Securities at the close
of business on the January 1 or July 1 next preceding the interest payment date
even if Securities are canceled after the record date and on or before the
interest payment date. Holders must surrender Securities to a Paying Agent to
collect principal payments. The Company shall pay principal and interest in
immediately available (same day) funds in money of the United States of America
that at the time of payment is legal tender for payment of public and private
debts. However, the Company may pay principal and interest by check or wire
transfer payable in immediately available (same day) funds in such money.
3. Paying Agent and Registrar
--------------------------
Initially, The Bank of New York, a New York banking corporation
("Trustee"), shall act as Paying Agent and Registrar. The Company may appoint
and change any Paying Agent, Registrar or co-registrar without notice. The
Company or any of its domestically incorporated wholly owned Subsidiaries may
act as paying agent, Registrar or co-registrar.
4. Indenture
---------
The Company issued the Securities under an indenture dated as of January
13, 1998, between the Company and the Trustee, as supplemented by the first
supplemental indenture dated as of January 13, 1998 (the "First Supplemental
Indenture," and, collectively with the aforementioned indenture, the
"Indenture"), among the Company, Pioneer Natural Resources USA, Inc., a
Delaware corporation, and the Trustee. The terms of the Securities include
those stated in the Indenture and those made part of the Indenture by reference
to the Trust Indenture Act of 1939 (15 U.S.C. Sections 77aaa-77bbbb) as in
effect on the date of the Indenture (the "Act"). Terms defined in the
Indenture and not defined herein have the meanings ascribed thereto in the
Indenture. The Securities are subject to all such terms, and Holders are
referred to the Indenture and the Act for a statement of those terms.
<PAGE> 4
4
This Security is one of a duly authorized issue of general unsecured
obligations of the Company all issued or to be issued under the Indenture.
Debt Securities issued under the Indenture may be issued in one or more series,
which different series may be issued in various aggregate principal amounts,
may mature at different times, may bear interest at different rates, may have
different conversion prices (if any), may be subject to different redemption
provisions, may be subject to different sinking, purchase or analogous funds,
may be subject to different covenants, Events of Default and subordination
provisions and may otherwise vary as the Indenture provides. This Security is
one of a series designated as 6.50% Senior Notes Due 2008 (the "Securities")
issued under the Indenture, limited to $350,000,000 aggregate principal amount.
The Indenture imposes certain limitations (with significant exceptions) on the
Company and its Subsidiaries, including the Incurrence of Liens and entering
into Sale and Leaseback Transactions.
5. Subsidiary Guarantee
--------------------
Pioneer Natural Resources USA, Inc., a Delaware corporation (the
"Guarantor"), which in accordance with the First Supplemental Indenture is
required to guarantee the obligations of the Company under the Securities upon
execution of a counterpart of the First Supplemental Indenture, has
unconditionally guaranteed (a) the due and punctual payment of the principal
of, premium, if any, and interest on the Securities, whether at the maturity
date, by acceleration or otherwise, and of interest on the overdue principal of
and interest, if any, on any premium and interest of the Securities and all
other obligations of the Company to the Holders or the Trustee under the
Indenture or the Securities and (b) in case of any extension of time of payment
or renewal of any Securities or any of such other obligations, that the same
will be promptly paid in full when due or performed in accordance with the
terms of the extension or renewal, whether at stated maturity, by acceleration
or otherwise.
The obligations of the Guarantor to the Holders and to the Trustee pursuant
to this guarantee and the Indenture are as expressly set forth in Section 4 of
the First Supplemental Indenture and in such other provisions of the Indenture
as are applicable to the Guarantor, and reference is hereby made to such
Indenture for the precise terms of this guarantee. The terms of Section 4 of
the First Supplemental Indenture and such other provisions of the Indenture as
are applicable to the Guarantor are incorporated herein by reference.
This is a continuing guarantee and, subject to the terms of the guarantee,
shall remain in full force and effect and shall be binding upon the Guarantor
and its successors and assigns until full and final payment in cash of all of
the Company's obligations under the Securities and the Indenture and shall
inure to the benefit of the successors and assigns of the Trustee and the
Holders and, in the event of any transfer or assignment of rights by any Holder
or the Trustee, the rights and privileges herein conferred upon that party
shall automatically extend to and be vested in such transferee or assignee, all
subject to the terms and conditions hereof. This is a guarantee of payment and
not a guarantee of collection.
This guarantee shall not be valid or obligatory for any purpose until the
certificate of authentication with respect to this Security shall have been
executed by the Trustee under the Indenture by the manual signature of one of
its authorized officers.
<PAGE> 5
5
6. Optional Redemption
-------------------
The Securities will be redeemable at any time, at the option of the
Company, in whole or from time to time in part, upon not less than 30 and not
more than 60 days' notice as provided in the Indenture, on any date prior to
their maturity (the "Redemption Date") at a price equal to 100% of the
principal amount thereof plus accrued and unpaid interest, if any, to the
Redemption Date (subject to the right of Holders of record on the relevant
record date to receive interest due on an interest payment date that is on or
prior to the Redemption Date) plus a Make-Whole Premium, if any, calculated as
provided in Section 3 of the First Supplemental Indenture (the "Redemption
Price"). In no event will a Redemption Price ever be less than 100% of the
principal amount of the Securities plus accrued and unpaid interest, if any, to
the Redemption Date.
7. Denominations; Transfer; Exchange
---------------------------------
The Securities are in registered form without coupons in denominations of
$1,000 and whole multiples of $1,000. A Holder may transfer or exchange
Securities only in accordance with the Indenture. The Registrar may require a
Holder, among other things, to furnish appropriate endorsements or transfer
documents and to pay any taxes and fees required by law or permitted by the
Indenture.
8. Persons Deemed Owners
---------------------
The registered Holder of this Security may be treated as the owner of it
for all purposes.
9. Unclaimed Money
---------------
If money for the payment of principal or interest remains unclaimed for two
years, the Trustee or Paying Agent shall pay the money back to the Company at
its request unless an abandoned property law designates another Person. After
any such payment, Holders entitled to the money must look only to the Company
and not to the Trustee for payment.
10. Discharge and Defeasance
------------------------
Subject to certain conditions, the Company at any time may terminate some
or all its obligations under the Securities and the Indenture if the Company
deposits with the Trustee cash or U.S. Government Obligations for the payment
of principal and interest on the Securities to redemption or maturity, as the
case may be.
11. Amendment, Waiver
-----------------
Subject to certain exceptions set forth in the Indenture, (i) the Indenture
or the Securities may be amended with the written consent of the Holders of at
least a majority in principal amount outstanding of the Securities and (ii) any
acceleration of principal and interest on the Securities resulting from a
default or noncompliance with any provision may be waived with the written
consent of the Holders of a majority in principal amount outstanding of the
Securities. Subject to certain exceptions set forth in the Indenture, without
the consent of any Holder, the Company and
<PAGE> 6
6
the Trustee may amend the Indenture or the Securities to cure, among other
things, any ambiguity, omission, defect or inconsistency, or to evidence the
succession of another Person to the Company pursuant to Article X of the
Indenture, or to add guarantees with respect to the Securities or to secure the
Securities, or to add additional covenants or surrender rights and powers
conferred on the Company, or to permit the qualification of the Indenture under
the Act, or to make any change that does not adversely affect the rights of any
Holder, or to provide for the acceptance of a successor or separate Trustee.
12. Defaults and Remedies
---------------------
Under the Indenture, Events of Default include (i) default for 30 days in
payment of interest on the Securities; (ii) default in payment of principal or
premium on the Securities at maturity, upon acceleration or otherwise; (iii)
failure by the Company to comply with other agreements in the Indenture or the
Securities, in certain cases subject to notice by Holders and lapse of time;
(iv) certain accelerations (including failure to pay within any grace period
after final maturity) of other Indebtedness of the Company if the amount
accelerated (or so unpaid) exceeds $20,000,000 and continues for 10 days after
the required notice to the Company; (v) certain events of bankruptcy or
insolvency with respect to the Company and any Significant Subsidiary; and (vi)
certain judgments or decrees for the payment of money in excess of $20,000,000.
If an Event of Default occurs and is continuing, the Trustee or the Holders of
at least 25% in principal amount of the Securities may declare all the
Securities to be due and payable immediately. Certain events of bankruptcy or
insolvency are Events of Default that will result in the Securities being due
and payable immediately upon the occurrence of such Events of Default without
any action by the Trustee or any Holders.
Holders may not enforce the Indenture or the Securities except as provided
in the Indenture. The Trustee may refuse to enforce the Indenture or the
Securities unless it receives reasonable indemnity or security. Subject to
certain limitations, Holders of a majority in principal amount of the
Securities may direct the Trustee in its exercise of any trust or power. The
Trustee may withhold from Holders notice of any continuing Default (except a
Default in payment of principal or interest) if it determines that withholding
notice is in the interest of the Holders.
13. Trustee Dealings with the Company
---------------------------------
Subject to certain limitations imposed by the Act, the Trustee under the
Indenture, in its individual or any other capacity, may become the owner or
pledgee of Securities and may otherwise deal with and collect obligations owed
to it by the Company or its Affiliates and may otherwise deal with the Company
or its Affiliates with the same rights it would have if it were not Trustee.
14. No Recourse Against Others
--------------------------
An incorporator and any past, present or future director, officer, employee
or stockholder, as such, of the Company shall not have any liability for any
obligations of the Company under the Securities or the Indenture or for any
claim based on, in respect of or by reason of such obligations or their
creation. By accepting a Security, each Holder waives and releases all such
liability. The waiver and release are part of the consideration for the issue
of the Securities.
<PAGE> 7
7
15. Authentication
--------------
This Security shall not be valid until an authorized signatory of the
Trustee (or an authenticating agent) manually signs the certificate of
authentication on the other side of this Security.
16. Abbreviations
-------------
Customary abbreviations may be used in the name of a Holder or an assignee,
such as TEN COM (=tenants in common), TEN ENT (=tenants by the entireties), JT
TEN (=joint tenants with rights of survivorship and not as tenants in common),
CUST (=custodian), and U/G/M/A (=Uniform Gift to Minors Act).
17. Governing Law
-------------
THIS SECURITY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE
LAWS OF THE STATE OF NEW YORK BUT WITHOUT GIVING EFFECT TO APPLICABLE
PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS
OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.
18. CUSIP Numbers
-------------
Pursuant to a recommendation promulgated by the Committee on Uniform
Security Identification Procedures the Company has caused CUSIP numbers to be
printed on the Securities and has directed the Trustee to use CUSIP numbers in
notices of redemption as a convenience to Holders. No representation is made as
to the accuracy of such numbers either as printed on the Securities or as
contained in any notice of redemption and reliance may be placed only on the
other identification numbers placed thereon.
The Company shall furnish to any Holder upon written request and without
charge to the Holder a copy of the Indenture that has in it the text of this
Security. Requests may be made to:
Corporate Secretary
Pioneer Natural Resources Company
1400 Williams Square West
5205 North O'Connor Boulevard
Irving, TX 75039
<PAGE> 8
8
ASSIGNMENT FORM
To assign this Security, fill in the form below:
I or we assign and transfer this Security to
----------------------------------------------------------------------
(Print or type assignee's name, address and zip code)
----------------------------------------------------------------------
(Insert assignee's soc. sec. or tax I.D. No.)
and irrevocably appoint agent to transfer this
Security on the books of the Company. The agent may substitute another to act
for him.
- --------------------------------------------------------------------------------
Date: Your Signature:
----------------------- ----------------------------------
- --------------------------------------------------------------------------------
Sign exactly as your name appears on the other side of this Security.
Date: Your Signature:
----------------------- ----------------------------------
(Sign exactly as your name
appears on the other side of the
Security)
Signature Guarantee:
---------------------------------------------------------
(Signature must be guaranteed by a member firm of the
New York Stock Exchange or a commercial bank or trust
company)
<PAGE> 1
EXHIBIT 99.4
FORM OF
7.20% SENIOR NOTES DUE 2028
OF
PIONEER NATURAL RESOURCES COMPANY
[FACE OF SECURITY]
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITARY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), NEW YORK, NEW
YORK, TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR
PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR
SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY
PAYMENT IS MADE TO CEDE & CO., OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC) ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR
VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED
OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.
TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN
WHOLE, BUT NOT IN PART, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH
SUCCESSOR'S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE
LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE
INDENTURE REFERRED TO ON THE REVERSE HEREOF.
<PAGE> 2
2
CUSIP NO. 723787 AB 3
No.T-___ $__________
7.20% Senior Notes Due 2028
Pioneer Natural Resources Company, a Delaware corporation, promises
to pay to Cede & Co., or registered assigns, the principal sum of
$__________ Dollars on January 15, 2028.
Interest Payment Dates: January 15 and July 15
Record Dates: January 1 and July 1
Additional provisions of this Security are set forth on the other
side of this Security.
Dated: January 13, 1998 PIONEER NATURAL RESOURCES
COMPANY,
by
------------------------------------------
Name: Scott D. Sheffield
Title: President, Chief Executive Officer
and Assistant Secretary
by
------------------------------------------
Name: Mark L. Withrow
Title: Executive Vice President, General
Counsel and Secretary
TRUSTEE'S CERTIFICATE
OF AUTHENTICATION
THE BANK OF NEW YORK,
as Trustee, certifies that this is
one of the Debt Securities,
designated 7.20% Senior
Notes Due 2028, referred to
in the Indenture.
by
---------------------------
Authorized Signatory
[REVERSE SIDE OF SECURITY]
<PAGE> 3
3
7.20% Senior Notes Due 2028
1. Interest
Pioneer Natural Resources Company, a Delaware corporation (such
corporation, and its successors and assigns under the Indenture hereinafter
referred to, being herein called the "Company"), promises to pay interest on the
principal amount of this Security at the rate per annum shown above. The Company
shall pay interest semiannually on January 15 and July 15 of each year
commencing on July 15, 1998. Interest on the Securities shall accrue from the
most recent date to which interest has been paid or, if no interest has been
paid, from January 13, 1998. Interest shall be computed on the basis of a
360-day year of twelve 30-day months. The Company shall pay interest on overdue
principal at 1% per annum in excess of the rate borne by the Securities, and it
shall pay interest on overdue installments of interest at such higher rate to
the extent lawful.
2. Method of Payment
The Company shall pay interest on the Securities (except defaulted
interest) to the Persons who are registered holders of Securities at the close
of business on the January 1 or July 1 next preceding the interest payment date
even if Securities are canceled after the record date and on or before the
interest payment date. Holders must surrender Securities to a Paying Agent to
collect principal payments. The Company shall pay principal and interest in
immediately available (same day) funds in money of the United States of America
that at the time of payment is legal tender for payment of public and private
debts. However, the Company may pay principal and interest by check or wire
transfer payable in immediately available (same day) funds in such money.
3. Paying Agent and Registrar
Initially, The Bank of New York, a New York banking corporation
("Trustee"), shall act as Paying Agent and Registrar. The Company may appoint
and change any Paying Agent, Registrar or co-registrar without notice. The
Company or any of its domestically incorporated wholly owned Subsidiaries may
act as paying agent, Registrar or co-registrar.
4. Indenture
The Company issued the Securities under an indenture dated as of January
13, 1998, between the Company and the Trustee, as supplemented by the first
supplemental indenture dated as of January 13, 1998 (the "First Supplemental
Indenture," and, collectively with the aforementioned indenture, the
"Indenture"), among the Company, the Guarantor, and the Trustee. The terms of
the Securities include those stated in the Indenture and those made part of the
Indenture by reference to the Trust Indenture Act of 1939 (15 U.S.C. ss.ss.
77aaa-77bbbb) as in effect on the date of the Indenture (the "Act"). Terms
defined in the Indenture and not defined herein have the meanings ascribed
thereto in the Indenture. The Securities are subject to all such terms, and
Holders are referred to the Indenture and the Act for a statement of those
terms.
This Security is one of a duly authorized issue of general unsecured
obligations of the Company all issued or to be issued under the Indenture. Debt
Securities issued under the Indenture may be issued in one or more series, which
different series may be issued in various aggregate principal amounts, may
mature at different times, may bear interest at different rates, may have
<PAGE> 4
4
different conversion prices (if any), may be subject to different redemption
provisions, may be subject to different sinking, purchase or analogous funds,
may be subject to different covenants, Events of Default and subordination
provisions and may otherwise vary as the Indenture provides. This Security is
one of a series designated as 7.20% Senior Notes Due 2028 (the "Securities")
issued under the Indenture, limited to $250,000,000 aggregate principal amount.
The Indenture imposes certain limitations (with significant exceptions) on the
Company and its Subsidiaries, including the Incurrence of Liens and entering
into Sale and Leaseback Transactions.
5. Subsidiary Guarantee
Pioneer Natural Resources USA, Inc., a Delaware corporation (the
"Guarantor"), which in accordance with the First Supplemental Indenture is
required to guarantee the obligations of the Company under the Securities upon
execution of a counterpart of the First Supplemental Indenture, has
unconditionally guaranteed the due and punctual payment of the principal of,
premium, if any, and interest on the Securities, whether at the maturity date,
by acceleration or otherwise, and of interest on the overdue principal of and
interest, if any, on any premium and interest of the Securities and all other
obligations of the Company to the Holders or the Trustee under the Indenture or
the Securities and in case of any extension of time of payment or renewal of any
Securities or any of such other obligations, that the same will be promptly paid
in full when due or performed in accordance with the terms of the extension or
renewal, whether at stated maturity, by acceleration or otherwise.
The obligations of the Guarantor to the Holders and to the Trustee pursuant
to this guarantee and the Indenture are as expressly set forth in Section 4 of
the First Supplemental Indenture and in such other provisions of the Indenture
as are applicable to the Guarantor, and reference is hereby made to such
Indenture for the precise terms of this guarantee. The terms of Section 4 of the
First Supplemental Indenture and such other provisions of the Indenture as are
applicable to the Guarantor are incorporated herein by reference.
This is a continuing guarantee and, subject to the terms of the guarantee,
shall remain in full force and effect and shall be binding upon the Guarantor
and its successors and assigns until full and final payment in cash of all of
the Company's obligations under the Securities and the Indenture and shall inure
to the benefit of the successors and assigns of the Trustee and the Holders and,
in the event of any transfer or assignment of rights by any Holder or the
Trustee, the rights and privileges herein conferred upon that party shall
automatically extend to and be vested in such transferee or assignee, all
subject to the terms and conditions hereof. This is a guarantee of payment and
not a guarantee of collection.
This guarantee shall not be valid or obligatory for any purpose until the
certificate of authentication with respect to this Security shall have been
executed by the Trustee under the Indenture by the manual signature of one of
its authorized officers.
6. Optional Redemption
The Securities will be redeemable at any time, at the option of the
Company, in whole or from time to time in part, upon not less than 30 and not
more than 60 days' notice as provided in the Indenture, on any date prior to
their maturity (the "Redemption Date") at a price equal to 100% of the principal
amount thereof plus accrued and unpaid interest, if any, to the Redemption Date
<PAGE> 5
5
(subject to the right of Holders of record on the relevant record date to
receive interest due on an interest payment date that is on or prior to the
Redemption Date) plus a Make-Whole Premium, if any, calculated as provided in
Section 3 of the First Supplemental Indenture (the "Redemption Price"). In no
event will a Redemption Price ever be less than 100% of the principal amount of
the Securities plus accrued and unpaid interest, if any, to the Redemption Date.
7. Denominations; Transfer; Exchange
The Securities are in registered form without coupons in denominations of
$1,000 and whole multiples of $1,000. A Holder may transfer or exchange
Securities only in accordance with the Indenture. The Registrar may require a
Holder, among other things, to furnish appropriate endorsements or transfer
documents and to pay any taxes and fees required by law or permitted by the
Indenture.
8. Persons Deemed Owners
The registered Holder of this Security may be treated as the owner of it
for all purposes.
9. Unclaimed Money
If money for the payment of principal or interest remains unclaimed for two
years, the Trustee or Paying Agent shall pay the money back to the Company at
its request unless an abandoned property law designates another Person. After
any such payment, Holders entitled to the money must look only to the Company
and not to the Trustee for payment.
10. Discharge and Defeasance
Subject to certain conditions, the Company at any time may terminate some
or all its obligations under the Securities and the Indenture if the Company
deposits with the Trustee cash or U.S. Government Obligations for the payment of
principal and interest on the Securities to redemption or maturity, as the case
may be.
11. Amendment, Waiver
Subject to certain exceptions set forth in the Indenture, (i) the Indenture
or the Securities may be amended with the written consent of the Holders of at
least a majority in principal amount outstanding of the Securities and (ii) any
acceleration of principal and interest on the Securities resulting from a
default or noncompliance with any provision may be waived with the written
consent of the Holders of a majority in principal amount outstanding of the
Securities. Subject to certain exceptions set forth in the Indenture, without
the consent of any Holder, the Company and the Trustee may amend the Indenture
or the Securities to cure, among other things, any ambiguity, omission, defect
or inconsistency, or to evidence the succession of another Person to the Company
pursuant to Article X of the Indenture, or to add guarantees with respect to the
Securities or to secure the Securities, or to add additional covenants or
surrender rights and powers conferred on the Company, or to permit the
qualification of the Indenture under the Act, or to make any change that does
not adversely affect the rights of any Holder, or to provide for the acceptance
of a successor or separate Trustee.
<PAGE> 6
12. Defaults and Remedies
Under the Indenture, Events of Default include (i) default for 30 days in
payment of interest on the Securities; (ii) default in payment of principal or
premium on the Securities at maturity, upon acceleration or otherwise; (iii)
failure by the Company to comply with other agreements in the Indenture or the
Securities, in certain cases subject to notice by Holders and lapse of time;
(iv) certain accelerations (including failure to pay within any grace period
after final maturity) of other Indebtedness of the Company if the amount
accelerated (or so unpaid) exceeds $20,000,000 and continues for 10 days after
the required notice to the Company; (v) certain events of bankruptcy or
insolvency with respect to the Company and any Significant Subsidiary; and (vi)
certain judgments or decrees for the payment of money in excess of $20,000,000.
If an Event of Default occurs and is continuing, the Trustee or the Holders of
at least 25% in principal amount of the Securities may declare all the
Securities to be due and payable immediately. Certain events of bankruptcy or
insolvency are Events of Default that will result in the Securities being due
and payable immediately upon the occurrence of such Events of Default without
any action by the Trustee or any Holders.
Holders may not enforce the Indenture or the Securities except as provided
in the Indenture. The Trustee may refuse to enforce the Indenture or the
Securities unless it receives reasonable indemnity or security. Subject to
certain limitations, Holders of a majority in principal amount of the Securities
may direct the Trustee in its exercise of any trust or power. The Trustee may
withhold from Holders notice of any continuing Default (except a Default in
payment of principal or interest) if it determines that withholding notice is in
the interest of the Holders.
13. Trustee Dealings with the Company
Subject to certain limitations imposed by the Act, the Trustee under the
Indenture, in its individual or any other capacity, may become the owner or
pledgee of Securities and may otherwise deal with and collect obligations owed
to it by the Company or its Affiliates and may otherwise deal with the Company
or its Affiliates with the same rights it would have if it were not Trustee.
14. No Recourse Against Others
An incorporator and any past, present or future director, officer, employee
or stockholder, as such, of the Company shall not have any liability for any
obligations of the Company under the Securities or the Indenture or for any
claim based on, in respect of or by reason of such obligations or their
creation. By accepting a Security, each Holder waives and releases all such
liability. The waiver and release are part of the consideration for the issue of
the Securities.
15. Authentication
This Security shall not be valid until an authorized signatory of the
Trustee (or an authenticating agent) manually signs the certificate of
authentication on the other side of this Security.
16. Abbreviations
Customary abbreviations may be used in the name of a Holder or an assignee,
such as TEN COM (=tenants in common), TEN ENT (=tenants by the entireties), JT
TEN (=joint tenants with
<PAGE> 7
7
rights of survivorship and not as tenants in common), CUST (=custodian), and
U/G/M/A (=Uniform Gift to Minors Act).
17. Governing Law
THIS SECURITY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE
LAWS OF THE STATE OF NEW YORK BUT WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES
OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER
JURISDICTION WOULD BE REQUIRED THEREBY.
18. CUSIP Numbers
Pursuant to a recommendation promulgated by the Committee on Uniform
Security Identification Procedures the Company has caused CUSIP numbers to be
printed on the Securities and has directed the Trustee to use CUSIP numbers in
notices of redemption as a convenience to Holders. No representation is made as
to the accuracy of such numbers either as printed on the Securities or as
contained in any notice of redemption and reliance may be placed only on the
other identification numbers placed thereon.
The Company shall furnish to any Holder upon written request and without
charge to the Holder a copy of the Indenture that has in it the text of this
Security. Requests may be made to:
Corporate Secretary
Pioneer Natural Resources Company
1400 Williams Square West
5205 North O'Connor Boulevard
Irving, TX 75039
<PAGE> 8
8
ASSIGNMENT FORM
To assign this Security, fill in the form below:
I or we assign and transfer this Security to
-------------------------------------------------------------------------
(Print or type assignee's name, address and zip code)
-------------------------------------------------------------------------
(Insert assignee's soc. sec. or tax I.D. No.)
and irrevocably appoint agent to transfer this
Security on the books of the Company. The agent may substitute another to act
for him.
- -------------------------------------------------------------------------------
Date: Your Signature:
---------------------- ---------------------------
- -------------------------------------------------------------------------------
Sign exactly as your name appears on the other side of this Security.
Date: Your Signature:
---------------------- ---------------------------
(Sign exactly as your name
appears on the other side
of the Security)
Signature Guarantee:
---------------------------------------------------------
(Signature must be guaranteed by a member firm of the New
York Stock Exchange or a commercial bank or trust company)
<PAGE> 1
EXHIBIT 99.5
GUARANTEE
(2008 NOTES)
THIS GUARANTEE (2008 NOTES), dated as of January 13, 1998 (this
"Agreement"), is entered into by Pioneer Natural Resources USA, Inc., a
Delaware corporation (the "Subsidiary Guarantor"). Capitalized terms used
herein but not otherwise defined have the meanings set forth in the Indenture
referred to below.
RECITALS:
A. The Subsidiary Guarantor is a wholly-owned subsidiary of
Pioneer Natural Resources Company, a Delaware corporation (the "Company").
B. The Company and The Bank of New York, a New York banking
association, as trustee (the "Trustee"), have entered into that certain
Indenture, dated as of January 13, 1998, as supplemented by that certain First
Supplemental Indenture, dated as of January 13, 1998 (the "Supplemental
Indenture" and collectively the "Indenture"), among the Company, the Subsidiary
Guarantor and the Trustee, pursuant to which the Company has issued, among
other things, $350,000,000 in aggregate principal amount of 6.50% Senior Notes
Due 2008 (the "2008 Notes").
NOW, THEREFORE, for good and valuable consideration, the receipt and
adequacy of which is hereby acknowledged, the Subsidiary Guarantor hereby
agrees as follows:
ARTICLE 1
GUARANTEE
1.1 Guarantee. The Subsidiary Guarantor hereby unconditionally
guarantees to each Holder of 2008 Notes authenticated and delivered by the
Trustee and to the Trustee and its successors and assigns, irrespective of the
validity and enforceability of the Indenture, the 2008 Notes or the obligations
of the Company thereunder, that: (a) the principal of, premium, if any, and
interest on the 2008 Notes shall be promptly paid in full when due, whether at
maturity, by acceleration or otherwise, and interest on the overdue principal
of and interest, if any, on any premium and interest on the 2008 Notes, if
lawful, and all other obligations of the Company to the Holders or the Trustee
thereunder shall be promptly paid in full or performed, all in accordance with
the terms hereof and thereof; and (b) in case of any extension of time of
payment or renewal of any 2008 Notes or any of such other obligations, that
same shall be promptly paid in full when due or performed in accordance with
the terms of the extension or renewal, whether at stated maturity, by
acceleration or otherwise. Failing payment when due of any amount so
guaranteed or any performance so guaranteed for whatever reason, the Subsidiary
Guarantor shall be obligated to pay or perform the same immediately. The
Subsidiary Guarantor hereby agrees that its obligations hereunder shall be
unconditional, irrespective of the validity, regularity or enforceability of
the 2008 Notes, the Supplemental Indenture or the Indenture, the absence of any
action to enforce the same, any amendment or modification of or waiver or
consent by any Holder with respect to any provisions hereof or thereof, the
recovery of any judgment against the Company, any action to enforce the same,
any other circumstance which might otherwise constitute a legal or equitable
discharge or defense of a guarantor, or any change in the
<PAGE> 2
ownership of the Subsidiary Guarantor. The Subsidiary Guarantor hereby waives
diligence, presentment, demand of payment, filing of claims with a court in the
event of insolvency or bankruptcy of the Company, any right to require a
proceeding first against the Company, protest, notice and all demands
whatsoever and covenants that the Subsidiary Guarantor's guarantee under this
Section shall not be discharged except by complete performance of the
obligations of the Company and the Subsidiary Guarantor contained in the 2008
Notes, the Supplemental Indenture and the Indenture. If any Holder or the
Trustee is required by any court or otherwise to return to the Company, the
Subsidiary Guarantor or any custodian, trustee, liquidator or other similar
official acting in relation to either the Company or the Subsidiary Guarantor
any amount paid by any thereof to the Trustee or such Holder, the Subsidiary
Guarantor's guarantee under this Section, to the extent theretofore discharged,
shall be reinstated in full force and effect. The Subsidiary Guarantor agrees
that it shall not be entitled to any right of subrogation in relation to the
Holders of the 2008 Notes in respect of any obligations guaranteed hereby until
payment in full in cash of all obligations with respect to the 2008 Notes
guaranteed hereby. The Subsidiary Guarantor further agrees that, as between
itself as guarantor, on the one hand, and the Holders of the 2008 Notes and the
Trustee, on the other hand, (x) the maturity of the obligations guaranteed
hereby may be accelerated as provided in Article VI of the Indenture for the
purposes of the Subsidiary Guarantor's guarantee hereunder, notwithstanding any
stay, injunction or other prohibition preventing such acceleration in respect
of the obligations with respect to the 2008 Notes guaranteed hereby and (y) in
the event of any declaration of acceleration of such obligations as provided in
Article VI of the Indenture, such obligations (whether or not due and payable)
shall forthwith become due and payable by the Subsidiary Guarantor for the
purposes of its guarantee hereunder. The Subsidiary Guarantor also agrees to
pay any and all costs and expenses (including reasonable attorney's fees and
expenses) incurred by the Trustee or any Holder in enforcing any rights under
this Section.
1.2 Continuing Guarantee; Release. This is a continuing guarantee
and shall remain in full force and effect and shall be binding upon the
Subsidiary Guarantor and its respective successors and assigns to the extent
set forth in the Indenture until full and final payment of all of the Company's
obligations under the 2008 Notes and the Indenture with respect to the 2008
Notes and shall inure to the benefit of the Trustee and the Holders of 2008
Notes and their successors and assigns and, in the event of any transfer or
assignment of rights by any Holder of 2008 Notes or the Trustee, the rights and
privileges herein conferred upon that party shall automatically extend to and
be vested in such transferee or assignee, all subject to the terms and
conditions hereof. The Subsidiary Guarantor shall be released and relieved of
any obligations under this Agreement upon release or other termination of both
(A) that certain Guaranty, dated as of December 18, 1997, by the Subsidiary
Guarantor with respect to the Amended and Restated Credit Facility Agreement
(Primary Facility), dated as of December 18, 1997 (the "Primary Agreement"),
among the Company, NationsBank of Texas, as administrative agent, CIBC Inc., as
documentation agent, Morgan Guaranty Trust Company of New York, as
documentation agent, The Chase Manhattan Bank, as syndication agent, the
co-agents signatory thereto, and the other lenders signatory thereto, and (B)
that certain Guaranty, dated as of December 18, 1997, by the Subsidiary
Guarantor with respect to the Amended and Restated Credit Facility Agreement
(364-Day Facility), dated as of December 18, 1997 (the "364-Day Agreement" and
together with the Primary Agreement, the "United States Credit Agreement"),
among the Company, NationsBank of Texas, as administrative agent, CIBC Inc., as
documentation agent, Morgan Guaranty Trust Company of New York, as
documentation agent, The Chase Manhattan Bank, as syndication agent, the
co-agents signatory thereto, and the other lenders signatory thereto (the
foregoing guarantees
-2-
<PAGE> 3
being referred to herein as the "United States Credit Facility Guarantees").
Any refinancing, refunding, extension, renewal or replacement (or successive
refinancings, refundings, extensions, renewals or replacements), as a whole, or
in part, of the United States Credit Facility shall not be deemed a release or
other termination of the United States Credit Facility Guarantees if the
Subsidiary Guarantor provides a guarantee or guarantees with respect to such
refinancing, refunding, extension, renewal or replacement in substantially the
same form, and on substantially the same terms, as the United States Credit
Facility Guarantees.
ARTICLE 2
MISCELLANEOUS
2.1 Headings. The headings contained in this Agreement are for
reference purposes only and shall not affect in any way the meaning or
interpretation of this Agreement.
2.2 Severability. If any provision in this Agreement 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.
2.3 Governing Law. This Agreement shall be governed by and
construed in accordance with the laws of the State of New York, without regard
to principles of conflicts of laws.
-3-
<PAGE> 4
IN WITNESS WHEREOF, the undersigned has caused this Agreement to be
signed by its duly authorized officer as of the date first above written.
PIONEER NATURAL RESOURCES USA, INC.
By: /s/ M. GARRETT SMITH
------------------------------------
M. Garrett Smith
Executive Vice President and
Chief Financial Officer
[Signature Page - Guarantee - Page 1 of 1]
<PAGE> 1
EXHIBIT 99.6
GUARANTEE
(2028 NOTES)
THIS GUARANTEE (2028 NOTES), dated as of January 13, 1998 (this
"Agreement"), is entered into by Pioneer Natural Resources USA, Inc., a
Delaware corporation (the "Subsidiary Guarantor"). Capitalized terms used
herein but not otherwise defined have the meanings set forth in the Indenture
referred to below.
RECITALS:
A. The Subsidiary Guarantor is a wholly-owned subsidiary of
Pioneer Natural Resources Company, a Delaware corporation (the "Company").
B. The Company and The Bank of New York, a New York banking
association, as trustee (the "Trustee"), have entered into that certain
Indenture, dated as of January 13, 1998, as supplemented by that certain First
Supplemental Indenture, dated as of January 13, 1998 (the "Supplemental
Indenture" and collectively the "Indenture"), among the Company, the Subsidiary
Guarantor and the Trustee, pursuant to which the Company has issued, among
other things, $250,000,000 in aggregate principal amount of 7.20% Senior Notes
Due 2028 (the "2028 Notes").
NOW, THEREFORE, for good and valuable consideration, the receipt and
adequacy of which is hereby acknowledged, the Subsidiary Guarantor hereby
agrees as follows:
ARTICLE 1
GUARANTEE
1.1 Guarantee. The Subsidiary Guarantor hereby unconditionally
guarantees to each Holder of 2028 Notes authenticated and delivered by the
Trustee and to the Trustee and its successors and assigns, irrespective of the
validity and enforceability of the Indenture, the 2028 Notes or the obligations
of the Company thereunder, that: (a) the principal of, premium, if any, and
interest on the 2028 Notes shall be promptly paid in full when due, whether at
maturity, by acceleration or otherwise, and interest on the overdue principal
of and interest, if any, on any premium and interest on the 2028 Notes, if
lawful, and all other obligations of the Company to the Holders or the Trustee
thereunder shall be promptly paid in full or performed, all in accordance with
the terms hereof and thereof; and (b) in case of any extension of time of
payment or renewal of any 2028 Notes or any of such other obligations, that
same shall be promptly paid in full when due or performed in accordance with
the terms of the extension or renewal, whether at stated maturity, by
acceleration or otherwise. Failing payment when due of any amount so
guaranteed or any performance so guaranteed for whatever reason, the Subsidiary
Guarantor shall be obligated to pay or perform the same immediately. The
Subsidiary Guarantor hereby agrees that its obligations hereunder shall be
unconditional, irrespective of the validity, regularity or enforceability of
the 2028 Notes, the Supplemental Indenture or the Indenture, the absence of any
action to enforce the same, any amendment or modification of or waiver or
consent by any Holder with respect to any provisions hereof or thereof, the
recovery of any judgment against the Company, any action to enforce the same,
any other circumstance which might otherwise constitute a legal or equitable
discharge or defense of a guarantor, or any change in the
<PAGE> 2
ownership of the Subsidiary Guarantor. The Subsidiary Guarantor hereby waives
diligence, presentment, demand of payment, filing of claims with a court in the
event of insolvency or bankruptcy of the Company, any right to require a
proceeding first against the Company, protest, notice and all demands
whatsoever and covenants that the Subsidiary Guarantor's guarantee under this
Section shall not be discharged except by complete performance of the
obligations of the Company and the Subsidiary Guarantor contained in the 2028
Notes, the Supplemental Indenture and the Indenture. If any Holder or the
Trustee is required by any court or otherwise to return to the Company, the
Subsidiary Guarantor or any custodian, trustee, liquidator or other similar
official acting in relation to either the Company or the Subsidiary Guarantor
any amount paid by any thereof to the Trustee or such Holder, the Subsidiary
Guarantor's guarantee under this Section, to the extent theretofore discharged,
shall be reinstated in full force and effect. The Subsidiary Guarantor agrees
that it shall not be entitled to any right of subrogation in relation to the
Holders of the 2028 Notes in respect of any obligations guaranteed hereby until
payment in full in cash of all obligations with respect to the 2028 Notes
guaranteed hereby. The Subsidiary Guarantor further agrees that, as between
itself as guarantor, on the one hand, and the Holders of the 2028 Notes and the
Trustee, on the other hand, (x) the maturity of the obligations guaranteed
hereby may be accelerated as provided in Article VI of the Indenture for the
purposes of the Subsidiary Guarantor's guarantee hereunder, notwithstanding any
stay, injunction or other prohibition preventing such acceleration in respect
of the obligations with respect to the 2028 Notes guaranteed hereby and (y) in
the event of any declaration of acceleration of such obligations as provided in
Article VI of the Indenture, such obligations (whether or not due and payable)
shall forthwith become due and payable by the Subsidiary Guarantor for the
purposes of its guarantee hereunder. The Subsidiary Guarantor also agrees to
pay any and all costs and expenses (including reasonable attorney's fees and
expenses) incurred by the Trustee or any Holder in enforcing any rights under
this Section.
1.2 Continuing Guarantee; Release. This is a continuing guarantee
and shall remain in full force and effect and shall be binding upon the
Subsidiary Guarantor and its respective successors and assigns to the extent
set forth in the Indenture until full and final payment of all of the Company's
obligations under the 2028 Notes and the Indenture with respect to the 2028
Notes and shall inure to the benefit of the Trustee and the Holders of 2028
Notes and their successors and assigns and, in the event of any transfer or
assignment of rights by any Holder of 2028 Notes or the Trustee, the rights and
privileges herein conferred upon that party shall automatically extend to and
be vested in such transferee or assignee, all subject to the terms and
conditions hereof. The Subsidiary Guarantor shall be released and relieved of
any obligations under this Agreement upon release or other termination of both
(A) that certain Guaranty, dated as of December 18, 1997, by the Subsidiary
Guarantor with respect to the Amended and Restated Credit Facility Agreement
(Primary Facility), dated as of December 18, 1997 (the "Primary Agreement"),
among the Company, NationsBank of Texas, as administrative agent, CIBC Inc., as
documentation agent, Morgan Guaranty Trust Company of New York, as
documentation agent, The Chase Manhattan Bank, as syndication agent, the
co-agents signatory thereto, and the other lenders signatory thereto, and (B)
that certain Guaranty, dated as of December 18, 1997, by the Subsidiary
Guarantor with respect to the Amended and Restated Credit Facility Agreement
(364-Day Facility), dated as of December 18, 1997 (the "364-Day Agreement" and
together with the Primary Agreement, the "United States Credit Agreement"),
among the Company, NationsBank of Texas, as administrative agent, CIBC Inc., as
documentation agent, Morgan Guaranty Trust Company of New York, as
documentation agent, The Chase Manhattan Bank, as syndication agent, the
co-agents signatory thereto, and the other lenders signatory thereto (the
foregoing guarantees
-2-
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being referred to herein as the "United States Credit Facility Guarantees").
Any refinancing, refunding, extension, renewal or replacement (or successive
refinancings, refundings, extensions, renewals or replacements), as a whole, or
in part, of the United States Credit Facility shall not be deemed a release or
other termination of the United States Credit Facility Guarantees if the
Subsidiary Guarantor provides a guarantee or guarantees with respect to such
refinancing, refunding, extension, renewal or replacement in substantially the
same form, and on substantially the same terms, as the United States Credit
Facility Guarantees.
ARTICLE 2
MISCELLANEOUS
2.1 Headings. The headings contained in this Agreement are for
reference purposes only and shall not affect in any way the meaning or
interpretation of this Agreement.
2.2 Severability. If any provision in this Agreement 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.
2.3 Governing Law. This Agreement shall be governed by and
construed in accordance with the laws of the State of New York, without regard
to principles of conflicts of laws.
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IN WITNESS WHEREOF, the undersigned has caused this Agreement to be
signed by its duly authorized officer as of the date first above written.
PIONEER NATURAL RESOURCES USA, INC.
By: /s/ M. GARRETT SMITH
---------------------------------
M. Garrett Smith
Executive Vice President and
Chief Financial Officer
[Signature Page - Guarantee - Page 1 of 1]
