<PAGE>
Registration No. 333-
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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Form S-3
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
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SNYDER OIL CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 75-2306158
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
Peter E. Lorenzen
Snyder Oil Corporation
777 Main Street 777 Main Street
Fort Worth, Texas 76102 Fort Worth, Texas 76102
(817) 338-4043 (817) 882-5905
(Address, including zip code, and (Name, address, including zip
telephone number, including area code and telephone number,
code, of registrant's principal including area code, of agent
executive offices) for service)
Copies to
Thomas W. Briggs
Kelly, Hart & Hallman
201 Main Street, Suite 2500
Fort Worth, Texas 76102
(817) 332-2500
Approximate date of commencement of proposed sale to the public: From time
to time after this Registration Statement becomes effective.
If the only securities being registered on this form are being offered
pursuant to dividend or interest reinvestment plans, please check the
following box. / /
If any of the securities being registered on this Form are to be offered
on a delayed or continuous basis pursuant to Rule 415 under the Securities Act
of 1933, other than securities offered only in connection with dividend or
interest reinvestment plans, check the following box. /x/
If this Form is filed to register additional securities for an offering
pursuant to Rule 462(b) under the Securities Act, please check the following
box and list the Securities Act registration statement number of the earlier
effective registration statement for the same offering. / /
If this Form is a post-effective amendment filed pursuant to Rule 462(c)
under the Securities Act, check the following box and list the Securities Act
registration statement number of the earlier effective registration statement
for the same offering. / /
If delivery of the prospectus is expected to be made pursuant to Rule 434,
please check the following box. / /
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CALCULATION OF REGISTRATION FEE
Proposed
Title of Each Maximum
Class Amount Aggregate Proposed Amount of
of Securities to To Be Offering Maximum Registration
Be Registered Registered Price Aggregate Fee
Per Offering
Unit (1) Price (2)
Debt Securities
(3)
Preferred Stock,
par value $.01
per share (4)(5)
Depository Shares (6) (6) (6) (6)
(5)
Common Stock, par
value $.01 per
share (7)
Warrants (8)
Total
$300,000,000 $300,000,000
(9)(10) 100% (9) $88,500 (11)
Footnotes to Table on next Page
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Pursuant to Rule 429 under the Securities Act of 1933, the Prospectus
included herein also relates to a total of $75,000,000 of Debt Securities,
Debt Warrants, Preferred Stock, Depository Shares, Preferred Stock Warrants,
Common Stock and Common Stock Warrants of the Registrant previously registered
pursuant to Rule 415 under Registration Statement on Form S-3 No. 33-54809 and
not issued. This Registration Statement constitutes Post-Effective Amendment
No. 2 to the Registration Statement on Form S-3 No. 33-54809.
The Registrant hereby amends this Registration Statement on such date or
dates as may be necessary to delay its effective date until the Registrant
shall file a further amendment which specifically states that this
Registration Statement shall thereafter become effective in accordance with
Section 8(a) of the Securities Act of 1933 or until this Registration
Statement shall become effective on such date as the Commission, acting
pursuant to said Section 8(a), may determine.
(1) The proposed maximum offering price per unit will be determined from
time to time by the Registrant in connection with the issuance by
the Registrant of the securities registered hereunder.
(2) The proposed maximum aggregate offering price has been estimated
solely for the purpose of calculating the registration fee pursuant
to Rule 457(o) under the Securities Act of 1933.
(3) Subject to note (9) below, there is being registered hereunder an
indeterminate principal amount of Debt Securities. If any Debt
Securities are issued at an original issue discount, then the
offering price shall be in such greater principal amount as shall
result in an aggregate initial offering price not to exceed
$300,000,000 less the dollar amount of any securities previously
issued hereunder.
(4) Subject to note (9) below, there is being registered hereunder an
indeterminate number of shares of Preferred Stock as may be sold,
from time to time, by the Registrant.
(5) Subject to note (9) below, there is being registered hereunder an
indeterminate number of Depositary Shares to be evidenced by
Depositary Receipts issued pursuant to a Deposit Agreement. In the
event the Registrant elects to offer to the public fractional
interests in shares of Preferred Stock Registered hereunder,
Depositary Receipts will be distributed to those persons purchasing
the fractional interests and the shares of Preferred Stock will be
issued to the depositary under the Deposit Agreement.
(6) Not applicable pursuant to General Instruction II.D. of Form S-3.
(7) Subject to note (9) below, there is being registered hereunder an
indeterminate number of shares of Common Stock as may be sold, from
time to time, by the Registrant. There are also being registered
hereunder such indeterminate number of shares of Common Stock as
shall be issuable upon conversion or redemption of Preferred Stock
or Debt Securities registered hereunder.
(8) Subject to note (9) below, there is being registered hereunder an
indeterminate amount and number of Warrants, representing rights to
purchase Debt Securities, Preferred Stock, or Common Stock
registered hereunder.
(9) In no event will the aggregate initial offering price of all
securities issued from time to time pursuant to this Registration
Statement exceed $300,000,000 or the equivalent thereof in one or
more foreign currencies, foreign currency units, or composite
currencies. The aggregate amount of Common Stock registered
hereunder is further limited to that which is permissible under Rule
415(a)(4) under the Securities Act of 1933. The securities
registered hereunder may be sold separately or as units with other
securities registered hereunder.
(10) Pursuant to Rule 429 under the Securities Act of 1933, the
Prospectus constituting a part of this Registration Statement also
relates to $75,000,000 of the registrant's securities registered
under Registration Statement No. 33-54809.
(11) A registration fee was previously paid in connection with the
registration of a total of $250,000,000 of Debt Securities, Debt
Warrants, Preferred Stock, Depository Shares, Preferred Stock
Warrants, Common Stock and Common Stock Warrants of the Registrant
pursuant to Rule 415 on Registration Statement No. 33-54809, and
$66,375 of the registration fee is being paid herewith in connection
with the registration of an additional $225,000,000 of securities
registered hereunder.
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Information contained herein is subject to completion or amendment. A
registration statement relating to these securities has been filed with the
Securities and Exchange Commission. These securities may not be sold nor may
offers to buy be accepted prior to the time the registration statement becomes
effective. This prospectus shall not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale of these
securities in any State in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the securities laws of
any such State.
SUBJECT TO COMPLETION, DATED MAY 7, 1998
PROSPECTUS
Snyder Oil Corporation
DEBT SECURITIES
PREFERRED STOCK
DEPOSITORY SHARES
COMMON STOCK
WARRANTS
Snyder Oil Corporation (the "Company"), a Delaware corporation, may offer
from time to time (a) debt securities ("Debt Securities"), which may be
subordinated to other indebtedness of the Company, (b) warrants to purchase
Debt Securities ("Debt Warrants"), (c) shares of preferred stock, par value
$.01 per share ("Preferred Stock"), (d) warrants to purchase shares of
Preferred Stock ("Preferred Stock Warrants"), (e) depositary shares
representing entitlement to all rights and preferences of a fraction of a
share of Preferred Stock of a specified series ("Depositary Shares"), (f)
shares of common stock, par value $.01 per share ("Common Stock"), or (g)
warrants to purchase shares of Common Stock ("Common Stock Warrants"), all
having an aggregate initial public offering price not to exceed $300,000,000
or the equivalent thereof in one or more foreign currencies, foreign currency
units or composite currencies, including European Currency Units. The Debt
Warrants, Preferred Stock Warrants and Common Stock Warrants are referred to
herein collectively as "Warrants," and the Debt Securities, Preferred Stock,
Depositary Shares, Common Stock and Warrants are referred to herein
collectively as the "Offered Securities." The Offered Securities may be
offered, separately or as units with other Offered Securities, in separate
series in amounts, at prices and on terms to be determined at or prior to the
time of sale.
The specific terms of the Offered Securities with respect to which this
Prospectus is being delivered will be set forth in an accompanying supplement
to this Prospectus (a "Prospectus Supplement"), together with the terms of the
offering of the Offered Securities and the initial price and the net proceeds
to the Company from the sale thereof. The Prospectus Supplement will include,
with regard to the particular Offered Securities, the following information:
(a) in the case of Debt Securities, the specific designation, aggregate
principal amount, ranking, authorized denomination, maturity, rate or method
of calculation of interest and dates for payment thereof, any exchangeability,
conversion, redemption, prepayment, or sinking fund provisions, the currency
or currency unit in which principal, premium, or interest is payable, the
designation of the trustee acting under the applicable indenture, and the
initial offering price; (b) in the case of Preferred Stock, the designation,
number of shares, liquidation preference per share, initial public offering
price, dividend rate (or method of calculation thereof), dates on which
dividends shall be payable and dates from which dividends shall accrue, any
redemption or sinking fund provisions, any conversion or exchange rights, and
whether the Company has elected to offer the Preferred Stock in the form of
Depositary Shares; (c) in the case of Common Stock, the number of shares and
the terms of the offering and sale thereof; (d) in the case of Warrants, the
number and terms thereof, the designation and the number of securities
issuable upon exercise, the exercise price, the terms of the offering and sale
thereof, and where applicable, the duration and detachability thereof; and (e)
in the case of all Offered Securities, whether the Offered Securities will be
offered separately or as a unit with other Offered Securities. The Prospectus
Supplement will also contain information, where applicable, about material
United States federal income tax considerations relating to, and any listing
on a securities exchange of, the Offered Securities covered by the Prospectus
Supplement.
The Company may sell the Offered Securities directly, through agents
designated from time to time, or through underwriters or dealers. If any
agents, underwriters or dealers are involved in the sale of the Offered
Securities, the names of the agents, underwriters or dealers and any
applicable commissions or discounts and the net proceeds to the Company from
the sale will be set forth in the applicable Prospectus Supplement.
THIS PROSPECTUS MAY NOT BE USED TO CONSUMMATE SALES OF OFFERED SECURITIES
UNLESS ACCOMPANIED BY A PROSPECTUS SUPPLEMENT.
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THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE
SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED
UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE
CONTRARY IS A CRIMINAL OFFENSE.
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The date of this Prospectus is , 1998.
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CERTAIN PERSONS PARTICIPATING IN AN OFFERING MAY ENGAGE IN TRANSACTIONS
THAT STABILIZE, MAINTAIN OR OTHERWISE AFFECT THE PRICE OF THE OFFERED
SECURITIES, INCLUDING OVER-ALLOTMENT, STABILIZING AND SHORT-COVERING
TRANSACTIONS IN SUCH OFFERED SECURITIES, AND THE IMPOSITION OF A PENALTY BID,
DURING AND AFTER AN OFFERING. FOR A DESCRIPTION OF THESE ACTIVITIES, SEE
"PLAN OF DISTRIBUTION."
AVAILABLE INFORMATION
The Company is subject to the informational requirements of the Securities
Exchange Act of 1934 (the "Exchange Act"). It files reports, proxy statements,
and other information with the Securities and Exchange Commission (the "SEC").
Those reports, proxy statements, and other information can be inspected and
copied at the public reference facilities maintained by the SEC at Room 1024,
450 Fifth Street, N.W., Washington, D.C. 20549, and at the regional offices of
the SEC at 7 World Trade Center, Suite 1300, New York, New York 10048, and 500
West Madison Street, Suite 1400, Chicago, Illinois 60611.
Copies of these materials can be obtained at prescribed rates from the
Public Reference Section of the SEC at 450 Fifth Street, N.W., Washington,
D.C. 20549. These reports, proxy statements and other information may also be
obtained without charge from the web site that the SEC maintains at
http://www.sec.gov.
These reports, proxy statements, and other information also may be
inspected at the offices of the New York Stock Exchange, 20 Broad Street, New
York, New York 10005.
The Company has filed with the SEC a Registration Statement on Form S-3
(the "Registration Statement") under the Securities Act of 1933
(the"Securities Act") with respect to the Offered Securities. This Prospectus
and any accompanying Prospectus Supplement do not contain all the information
set forth in the Registration Statement, certain parts of which are omitted in
accordance with the rules and regulations of the SEC. For further information
with respect to the Company and the Offered Securities, reference is made to
the Registration Statement and to the exhibits thereto. Statements contained
herein concerning the provisions of certain documents are not necessarily
complete, and in each instance, reference is made to the copy of the document
filed as an exhibit to the Registration Statement or otherwise filed with the
SEC. Each such statement is qualified in its entirety by that reference.
INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE
The following document has been filed by the Company with the SEC, is
incorporated by reference into this Prospectus, and is deemed to be a part of
this Prospectus:
1. The Company's Annual Report on Form 10-K for the year ended December 31,
1997.
All documents filed by the Company pursuant to Section 13(a), 14 or 15(d)
of the Exchange Act subsequent to the date of this Prospectus and prior to the
termination of the offering made hereby shall be deemed to be incorporated by
reference into this Prospectus and to be a part hereof from the date of the
filing of such documents. Any statement contained herein or in a document
incorporated or deemed to be incorporated by reference herein shall be deemed
to be modified or superseded for purposes of this Prospectus to the extent
that a statement contained herein or in any subsequently filed document that
also is or is deemed to be incorporated by reference herein or in any
Prospectus Supplement modifies or supersedes such statement. Any statement so
modified or superseded shall not be deemed to constitute a part of this
Prospectus, except as so modified or superseded.
The Company will provide without charge to each person to whom a copy of
this Prospectus has been delivered, on the written or oral request of any
person, a copy of any or all of the documents referred to above that have been
or may be incorporated by reference into this Prospectus, other than exhibits
to the documents (unless the exhibits are specifically incorporated by
reference into the documents). Written or telephone request for the copies
should be directed to Investor Relations, Snyder Oil Corporation, 777 Main
Street, Fort Worth, Texas 76102 (Telephone: (817) 882-5903).
THE COMPANY
The Company is an independent energy company engaged in the production,
development, acquisition and exploration of domestic oil and gas properties,
primarily in the Gulf of Mexico, the Rocky Mountains and northern Louisiana.
The Company's principal executive office is located at 777 Main Street,
Fort Worth, Texas 76102, and its telephone number is (817) 338-4043.
USE OF PROCEEDS
Unless otherwise set forth in the applicable Prospectus Supplement, the net
proceeds from the sale of Offered Securities will be used for general
corporate purposes, which may include repayment of indebtedness, redemption or
repurchase of securities of the Company or any subsidiary, additions to
working capital, and capital expenditures, including exploration, development
and acquisitions.
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RATIOS OF EARNINGS TO FIXED CHARGES AND EARNINGS
TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
The ratio of earnings to fixed charges and the ratio of earnings to
combined fixed charges and preferred stock dividends for the Company and its
subsidiaries for the periods indicated below was:
Year ended December 31,
------------------------
1993 1994 1995 1996 1997
---- ---- ---- ---- ----
Ratio of earnings to fixed charges 5.24x 2.31x N/A(1)3.91x 3.08x
Ratio of earnings to combined fixed 1.93x 1.13x N/A(2)3.10x 2.42x
charges and preferred stock dividends
- ---------------
(1) Earnings were inadequate to cover charges by $40.6 million.
(2) Earnings were inadequate to cover combined fixed charges and preferred
dividends by $46.8 million.
For purposes of calculating the above ratios, earnings are net income (loss)
before income taxes, minority interest, extraordinary item and interest
expense. Fixed charges consist of interest expense and preferred stock
dividends of consolidated subsidiaries. Preferred stock dividends represent
an amount equal to income, before income tax, which would be required to meet
the dividends of the Company's preferred stock.
DESCRIPTION OF DEBT SECURITIES
The following description of the terms of the Debt Securities sets forth
certain general terms and provisions of the Debt Securities to which any
Prospectus Supplement may relate. The particular terms of the Debt Securities
offered by any Prospectus Supplement and the extent, if any, to which the
general provisions may apply to the Debt Securities so offered will be
described in the Prospectus Supplement relating to the Debt Securities.
Accordingly, for a description of the terms of a particular issue of Debt
Securities, reference must be made to both the Prospectus Supplement relating
thereto and to the following description.
The Debt Securities will be general obligations of the Company and may be
subordinated to Senior Indebtedness (as defined below) of the Company to the
extent set forth in the Prospectus Supplement relating thereto. See
"Description of Debt Securities -- Subordination." Debt Securities will be
issued under an indenture (the "Indenture"), between the Company and one or
more commercial banks to be selected as trustees (the trustee or trustees
selected are referred to collectively as the "Trustee"). A copy of the
Indenture is filed as an exhibit to the Registration Statement of which this
Prospectus is a part.
The Indenture will also be available for inspection at the corporate trust
office of the Trustee. The following discussion of certain provisions of the
Indenture is a summary only and does not purport to be a complete description
of the terms and provisions of the Indenture. Accordingly, the following
discussion is qualified in its entirety by reference to the provisions of the
Indenture, including the definition therein of terms used below with their
initial letters capitalized.
General
The Indenture does not limit the aggregate principal amount of Debt
Securities that can be issued thereunder. The Debt Securities may be issued
in one or more series as may be authorized from time to time by the Company.
Reference is made to the applicable Prospectus Supplement for the following
terms of the Debt Securities of the series with respect to which the
Prospectus Supplement is being delivered:
(a) The title of the Debt Securities of the series;
(b) Any limit on the aggregate principal amount of the Debt
Securities of the series that may be authenticated and
delivered under the Indenture;
(c) The date or dates on which the principal and premium with
respect to 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 the rate or rates, the
date or dates from which the interest shall accrue, the
interest payment dates on which the interest shall be
payable or the method by which the dates will be determined,
the record dates for the determination of holders thereof to
whom the interest is payable (in the case of Registered
Securities), and the basis upon which interest will be
calculated if other than that of a 360-day year of twelve
30-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, premium, and interest with respect to 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 (as
defined below) representing individual Bearer Securities of
the series, whether certain provisions for the payment of
additional interest or tax redemptions shall apply; whether
interest with respect to any portion of a temporary Bearer
Security of the series payable with respect to any interest
payment date prior to the exchange of the temporary Bearer
Security for definitive Bearer Securities of the series
shall be paid to any clearing organization with respect to
the portion of the 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 the interest payment date; and 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, 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;
(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 issuer or
obligor and the terms and conditions upon which the
conversion or exchange shall be effected, including the
initial conversion or exchange price or rate, the conversion
or exchange period, and any other additional provisions;
(k) If other than denominations of $1,000 or any integral
multiple thereof, the denominations in which Debt Securities
of the series shall be issuable;
(l) If the amount of principal, premium or interest with respect
to the Debt Securities of the series may be determined with
reference to an index or pursuant to a formula, the manner
in which the 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 the stated maturity, the
amount that will be deemed to be the principal amount as of
any 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 date (or, in any such case, the manner
in which the deemed principal amount is to be determined),
and if necessary, the manner of determining the equivalent
thereof in United States currency;
(n) Any changes or additions to the provisions of the Indenture
dealing with defeasance, including the addition of
additional covenants that may be subject to the Company's
covenant defeasance option;
(o) If other than the 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, premium, and interest with respect to 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 that
shall be payable upon declaration of acceleration of the
maturity thereof or provable in bankruptcy;
(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 the Indenture as then 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, premium and interest with respect to the Debt
Securities due and payable;
(s) If the Debt Securities of the series shall be issued in
whole or in part in the form of a Global Security, the terms
and conditions, if any, upon which the Global Security may
be exchanged in whole or in part for other individual Debt
Securities in definitive registered form, the Depositary for
the Global Security, and the form of any legend or legends
to be borne by the Global Security in addition to or in lieu
of the legend referred to in the Indenture;
(t) Any Trustee, authenticating or paying agents, transfer
agents or registrars;
(u) The applicability of, and any addition to or change in, the
covenants and definitions then set forth in the Indenture or
in the terms then set forth in the Indenture relating to
permitted consolidations, mergers or sales of assets,
including conditioning any merger, conveyance, transfer or
lease permitted by the Indenture upon the satisfaction of an
indebtedness coverage standard by the Company and any
successor to the Company;
(v) The terms, if any, of any guarantee of the payment of
principal, premium and interest with respect to Debt
Securities of the series and any corresponding changes to
the provisions of the Indenture as then in effect;
(w) The subordination, if any, of the Debt Securities of the
series pursuant to the Indenture and any changes or
additions to the provisions of the Indenture relating to
subordination;
(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 the
Indenture).
The Prospectus Supplement will also describe any material United
States federal income tax consequences or other special considerations
applicable to the series of Debt Securities to which the Prospectus Supplement
relates, including those applicable to (a) Bearer Securities, (b) Debt
Securities with respect to which payments of principal, premium or interest
are determined with reference to an index or formula (including changes in
prices of particular securities, currencies or commodities), (c) Debt
Securities with respect to which principal, premium or interest is payable in
a foreign or composite currency, (d) Debt Securities that are issued at a
discount below their stated principal amount, bearing no interest or interest
at a rate that at the time of issuance is below market rates ("Original Issue
Discount Debt Securities"), and (e) variable rate Debt Securities that are
exchangeable for fixed rate Debt Securities.
Payments of interest on Registered Securities may be made at the option
of the Company by check mailed to the registered holders thereof or, if so
provided in the applicable Prospectus Supplement, at the option of a holder by
wire transfer to an account designated by the holder. Except as otherwise
provided in the applicable Prospectus Supplement, no payment on a Bearer
Security will be made by mail to an address in the United States or by wire
transfer to an account in the United States.
Unless otherwise provided in the applicable Prospectus Supplement,
Registered Securities may be transferred or exchanged at the office of the
Trustee at which its corporate trust business is principally administered in
the United States or at the office of the Trustee or the Trustee's agent in
the Borough of Manhattan, the City and State of New York, at which its
corporate agency business is conducted, subject to the limitations provided in
the Indenture, without the payment of any service charge, other than any tax
or governmental charge payable in connection therewith. Bearer Securities will
be transferable only by delivery. Provisions with respect to the exchange of
Bearer Securities will be described in the Prospectus Supplement relating to
the Bearer Securities.
All funds paid by the Company to a paying agent for the payment of
principal, premium, or interest with respect to any Debt Securities that
remain unclaimed at the end of two years after the principal, premium, or
interest shall have become due and payable will be repaid to the Company, and
the holders of the Debt Securities or any coupons appertaining thereto will
thereafter look only to the Company for payment thereof.
Global Securities
The Debt Securities of a series may be issued in whole or in part in the
form of one or more Global Securities. A Global Security is a Debt Security
that represents, and is denominated in an amount equal to, the aggregate
principal amount of all outstanding Debt Securities of a series, or any
portion thereof, in either case having the same terms, including the same
original issue date, date or dates on which principal and interest are due,
and interest rate or method of determining interest. A Global Security will be
deposited with, or on behalf of, a Depositary, which will be identified in the
Prospectus Supplement relating to the Debt Securities. Global Securities may
be issued in either registered or bearer form and in either temporary or
definitive form. Unless and until it is exchanged in whole or in part for the
individual Debt Securities represented thereby, a Global Security may not be
transferred except as a whole by the Depositary to a nominee of the
Depositary, by a nominee of the Depositary to the Depositary or another
nominee of the Depositary, or by the Depositary or any nominee of the
Depositary to a successor Depositary or any nominee of the successor.
The specific terms of the depositary arrangement with respect to a series
of Debt Securities will be described in the Prospectus Supplement relating to
the Debt Securities. The Company anticipates that the following provisions
will generally apply to depositary arrangements.
Upon the issuance of a Global Security, the Depositary for the Global
Security will credit, on its book-entry registration and transfer system, the
respective principal amounts of the individual Debt Securities represented by
the Global Security to the accounts of persons that have accounts with the
Depositary ("participants"). The accounts shall be designated by the dealers
or underwriters with respect to the Debt Securities or, if the Debt Securities
are offered and sold directly by the Company or through one or more agents, by
the Company or the agents. Ownership of beneficial interests in a Global
Security will be limited to participants or persons that hold beneficial
interests through participants. Ownership of beneficial interests in the
Global Security will be shown on, and the transfer of that ownership will be
effected only through, records maintained by the Depositary (with respect to
interests of participants) or records maintained by participants (with respect
to interests of persons other than participants). The laws of some states
require that certain purchasers of securities take physical delivery of the
securities in definitive form. Such limitations and laws may impair the
ability to transfer beneficial interests in a Global Security.
So long as the Depositary for a Global Security, or its nominee, is the
registered owner or holder of the Global Security, the Depositary or nominee,
as the case may be, will be considered the sole owner or holder of the
individual Debt Securities represented by the Global Security for all purposes
under the Indenture. Except as provided below, owners of beneficial interests
in a Global Security will not be entitled to have any of the individual Debt
Securities represented by the Global Security registered in their names, will
not receive or be entitled to receive physical delivery of any of the Debt
Securities in definitive form, and will not be considered the owners or
holders thereof under the Indenture.
Subject to the restrictions described under "Description of Debt
Securities--Limitations on Issuance of Bearer Securities," payments of
principal, premium and interest with respect to individual Debt Securities
represented by a Global Security will be made to the Depositary or its
nominee, as the case may be, as the registered owner or holder of the Global
Security. Neither the Company, the Trustee, any paying agent or registrar for
the Debt Securities, 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 by the Depositary, its nominee, or any participants on account
of beneficial interests in the Global Security or for maintaining, supervising
or reviewing any records relating to the beneficial interests, (b) the payment
to the owners of beneficial interests in 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 its participants.
Neither the Company, the Trustee, any paying agent or registrar for the Debt
Securities, nor any agent of the Company or the Trustee will be liable for any
delay by the Depositary, its nominee or any of its participants in identifying
the owners of beneficial interests in the Global Security, and the Company and
the Trustee may conclusively rely on, and will be protected in relying on,
instructions from the Depositary or its nominee for all purposes.
The Company expects that the Depositary for a series of Debt Securities
or its nominee, upon receipt of any payment of principal, premium or interest
with respect to a definitive Global Security representing any of the Debt
Securities, will immediately credit participants' accounts with payments in
amounts proportionate to their respective beneficial interests in the
principal amount of the Global Security, as shown on the records of the
Depositary or its nominee. The Company also expects that payments by
participants to owners of beneficial interests in the Global Security held
through the participants will be governed by standing instructions and
customary practices, as is now the case with securities held for the accounts
of customers and registered in street name. The payments will be the
responsibility of the participants. Receipt by owners of beneficial interests
in a temporary Global Security of payments of principal, premium or interest
with respect thereto will be subject to the restrictions described under
"Description of Debt Securities--Limitations on Issuance of Bearer
Securities."
If the Depositary for a series of Debt Securities is at any time
unwilling, unable or ineligible to continue as depositary, the Company shall
appoint a successor depositary. If a successor depositary is not appointed by
the Company within 90 days, the Company will issue individual Debt Securities
of the series in exchange for the Global Security representing the series of
Debt Securities. In addition, the Company may at any time and in its sole
discretion, subject to any limitations described in the Prospectus Supplement
relating to the Debt Securities, determine no longer to have Debt Securities
of a series represented by a Global Security and, in that event, will issue
individual Debt Securities of the series in exchange for the Global Security
representing the series of Debt Securities. Furthermore, if the Company so
specifies with respect to the Debt Securities of a series, an owner of a
beneficial interest in a Global Security representing Debt Securities of the
series may, on terms acceptable to the Company, the Trustee, and the
Depositary for the Global Security, receive individual Debt Securities of the
series in exchange for the beneficial interests, subject to any limitations
described in the Prospectus Supplement relating to the Debt Securities. In any
such instance, an owner of a beneficial interest in a Global Security will be
entitled to physical delivery of individual Debt Securities of the series
represented by the Global Security equal in principal amount to the beneficial
interest and to have the Debt Securities registered in its name (if the Debt
Securities are issuable as Registered Securities). Individual Debt Securities
of the series so issued will be issued (a) as Registered Securities in
denominations, unless otherwise specified by the Company, of $1,000 and
integral multiples thereof if the Debt Securities are issuable as Registered
Securities, (b) as Bearer Securities in the denomination or denominations
specified by the Company if the Debt Securities are issuable as Bearer
Securities, or (c) as either Registered Securities or Bearer Securities as
described above if the Debt Securities are issuable in either form. See,
however, "Description of Debt Securities--Limitations on Issuance of Bearer
Securities" for a description of certain restrictions on the issuance of
individual Bearer Securities in exchange for beneficial interests in a bearer
Global Security.
Limitations on Issuance of Bearer Securities
The Debt Securities of a series may be issued as Registered Securities
(which will be registered as to principal and interest in the register
maintained by the registrar for the Debt Securities) or Bearer Securities
(which will be transferable only by delivery). If the Debt Securities are
issuable as Bearer Securities, certain special limitations and considerations
will apply.
In compliance with United States federal income tax laws and regulations,
the Company and any underwriter, agent or dealer participating in an offering
of Bearer Securities will agree that, in connection with the original issuance
of the Bearer Securities and during the period ending 40 days after the issue
date, they will not offer, sell or deliver any such Bearer Security, directly
or indirectly, to a United States Person (as defined below) or to any person
within the United States, except to the extent permitted under United States
Treasury regulations.
Bearer Securities will bear a legend 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." The sections
referred to in the legend provide that, with certain exceptions, a United
States taxpayer who holds Bearer Securities will not be allowed to deduct any
loss with respect to, and will not be eligible for capital gain treatment with
respect to any gain realized on the sale, exchange, redemption or other
disposition of, the Bearer Securities.
For this purpose, "United States" includes the United States of America
and its possessions, and "United States person" means a citizen or resident of
the United States, a corporation, partnership or other entity created or
organized in or under the laws of the United States, or an estate or trust the
income of which is subject to United States federal income taxation regardless
of its source.
Pending the availability of a definitive Global Security or individual
Bearer Securities, as the case may be, Debt Securities that are issuable as
Bearer Securities may initially be represented by a single temporary Global
Security, without interest coupons, to be deposited with a common depositary
in London for Morgan Guaranty Trust Company of New York, Brussels Office, as
operator of the Euroclear System ("Euroclear"), or Centrale de Livraison de
Valeurs Mobilieres S.A. ("CEDEL") for credit to the accounts designated by or
on behalf of the purchasers thereof. Following the availability of a
definitive Global Security in bearer form, without coupons attached, or
individual Bearer Securities and subject to any further limitations described
in the applicable Prospectus Supplement, the temporary Global Security will be
exchangeable for interests in the definitive Global Security or for the
individual Bearer Securities, respectively, only upon receipt of a
"Certificate of Non-U.S. Beneficial Ownership," which is a certificate to the
effect that a beneficial interest in a temporary Global Security is owned by
a person that is not a United States Person or is owned by or through a
financial institution in compliance with applicable United States Treasury
regulations. No Bearer Security will be delivered in or to the United States.
If so specified in the applicable Prospectus Supplement, interest on a
temporary Global Security will be paid to each of Euroclear and CEDEL with
respect to that portion of the temporary Global Security held for its account,
but only upon receipt as of the relevant interest payment date of a
Certificate of Non-U.S. Beneficial Ownership.
Subordination
Debt Securities of a series may be subordinated ("Subordinated Debt
Securities") to Senior Indebtedness (as defined below) to the extent set forth
in the Prospectus Supplement relating thereto. The holders of Debt Securities
(whether or not Subordinated Debt Securities) will be structurally
subordinated to the creditors of the Company's subsidiaries.
Subordinated Debt Securities of a series and any coupons appertaining
thereto will be subordinate in right of payment, to the extent and in the
manner set forth in the Indenture and the Prospectus Supplement relating to
the Subordinated Debt Securities, to the prior payment of all indebtedness of
the Company that is designated as "Senior Indebtedness" with respect to the
series.
"Senior Indebtedness," with respect to any series of Subordinated Debt
Securities, will consist of (a) any and all amounts payable under or with
respect to the Company's "Bank Indebtedness" and (b) any other indebtedness of
the Company, whether currently outstanding or hereafter issued. "Bank
Indebtedness" is defined as the Company's existing bank credit facility (the
"Credit Facility") and any renewals, amendments, extensions, supplements,
modifications, refinancing or replacements thereof (whether or not the
principal amount outstanding thereunder shall be increased); provided,
however, that Senior Indebtedness shall not include (i) any obligation owed to
a subsidiary or affiliate of the Company, (ii) any obligation that by the
terms of the instrument creating or evidencing the same is not superior in
right of payment to the Subordinated Debt Securities, and (iii) any obligation
constituting a trade account payable.
Upon any payment or distribution of assets of the Company to creditors or
upon a total or partial liquidation or dissolution of the Company or in a
bankruptcy, receivership or similar proceeding relating to the Company or its
property, holders of Senior Indebtedness shall be entitled to receive payment
in full in cash of the Senior Indebtedness before holders of Subordinated Debt
Securities shall be entitled to receive any payment of principal, premium or
interest with respect to the Subordinated Debt Securities, and until the
Senior Indebtedness is paid in full, any distribution to which holders of
Subordinated Debt Securities would otherwise be entitled shall be made to the
holders of Senior Indebtedness (except that the 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).
No payment (other than any payment in the form of equity securities or
subordinated debt securities of the Company ("Permitted Junior Securities"))
on account of principal of and premium, if any, or interest on the
Subordinated Debt Securities may be made if a default in the payment of
principal of or premium, if any, or interest on, or fees with respect to
Specified Senior Indebtedness (as defined below) shall have occurred and be
continuing (a "Payment Event of Default"). In addition, no payment (other
than any payment in the form of Permitted Junior Securities) on account of
principal of or premium, if any, or interest on the Subordinated Debt
Securities may be made if a Non-Payment Event of Default (as defined below)
shall have occurred and be continuing, for the period (a "Payment Blockage
Period") commencing on receipt of notice of such event of default by the
Trustee or the Company from one or more holders of Specified Senior
Indebtedness (or their representative) and ending on the earliest of (i) 179
days thereafter, (ii) the date, as set forth in a written notice from the
holders of the Specified Senior Indebtedness (or their representative) to the
Company or the Trustee, on which such Non-Payment Event of Default is cured,
waived in writing or ceases to exist or such Specified Senior Indebtedness is
discharged or (iii) the date on which such Payment Blockage Period shall have
been terminated by written notice to the Company or the Trustee from one or
more of the holders (or their representative) initiating such Payment Blockage
Period. Any number of such notices may be given; provided, however, that not
more than one Payment Blockage Period may be commenced during any period of
360 consecutive days. No default existing or continuing when a Payment
Blockage Period begins may be the basis for any subsequent Payment Blockage
Period. In the event that, notwithstanding the restrictions described in the
preceding sentences, the Company makes any payment to the Trustee or a Holder
of Subordinated Debt Securities prohibited by any such restriction, then such
payment will be required to be paid over and delivered forthwith to the
Company.
"Non-Payment Event of Default" means any event, circumstance, condition
or state of facts (other than a Payment Event of Default) the occurrence or
existence of which permits one or more holders of Specified Senior
Indebtedness (or a trustee or other representative of the holders thereof) to
declare such Specified Senior Indebtedness immediately due and payable prior
to the date on which such indebtedness would otherwise become due and payable.
"Specified Senior Indebtedness" means (i) all Bank Indebtedness and (ii)
any other Senior Indebtedness and any refinancings thereof having a principal
amount of at least $10,000,000 as of the date of determination and provided
that the agreements, indentures or other instruments pursuant to which such
Senior Indebtedness was issued specifically designates such Senior
Indebtedness as "Specified Senior Indebtedness" for purposes of the Indenture.
By reason of the subordination, in the event of insolvency, creditors of
the Company who are holders of Senior Indebtedness, as well as certain general
creditors of the Company, may recover more, ratably, than the holders of the
Subordinated Debt Securities.
Events of Default and Remedies
The following events are defined in the Indenture as "Events of Default"
with respect to a series of Debt Securities:
(a) Default in the payment of any installment of interest on 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, in the case of
Subordinated Debt Securities, the payment shall be
prohibited by reason of the subordination provisions
described above) and continuance of the default for a period
of 30 days;
(b) Default in the payment of principal or premium with respect
to 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, in the case of Subordinated Debt
Securities, the payment shall be prohibited by reason of the
subordination provisions described above);
(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 (whether or not, in
the case of Subordinated Debt Securities, the payment shall
be prohibited by reason of the subordination provisions
described above), and continuance of such default for a
period of 60 days;
(d) Failure on the part of the Company duly to observe or
perform any 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 of the Company
authorizing the issuance of that series of Debt Securities,
in the Indenture with respect to the series, or in any
supplemental indenture with respect to the series (other
than a covenant a default in the performance of which is
otherwise specifically dealt with) continuing for a period
of 90 days after the date on which written notice specifying
the failure and requiring the Company to remedy the same
shall have been given 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;
(e) Indebtedness 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 the Indebtedness unpaid or accelerated
exceeds $10 million, and the default remains uncured or the
acceleration is not rescinded for 10 days after the date on
which written notice specifying the failure and requiring
the Company to remedy the same shall have been given 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;
(f) The Company shall (1) voluntarily commence any proceeding or
file any petition seeking relief under the United States
Bankruptcy Code or other federal or state bankruptcy,
insolvency or similar law, (2) 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, (3) apply for or consent to the appointment
of a receiver, trustee, custodian, sequestrator or similar
official for the Company or for a substantial part of its
property, (4) file an answer admitting the material
allegations of a petition filed against it in any such
proceeding, (5) make a general assignment for the benefit of
creditors, (6) admit in writing its inability or fail
generally to pay its debts as they become due, (7) take
corporate action for the purpose of effecting any of the
foregoing, or (8) take any comparable action under any
foreign laws relating to insolvency;
(g) The entry of an order or decree by a court having competent
jurisdiction for (1) relief with respect to the Company or
a substantial part of any of its property under the United
States Bankruptcy Code or any other federal or state
bankruptcy, insolvency or similar law, (2) the appointment
of a receiver, trustee, custodian, sequestrator or similar
official for the Company or for a substantial part of any of
its property, or (3) the winding-up or liquidation of the
Company, and the 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;
(h) Any judgment or decree for the payment of money in excess of
$10 million is entered against the Company by a court of
competent jurisdiction, which judgment is not covered by
insurance, and is not discharged and either (1) an
enforcement proceeding has been commenced by any creditor
upon the judgment or decree, or (2) there is a period of 60
days following the entry of the judgment or decree during
which the judgment or decree is not discharged or waived or
the execution thereof stayed and, in either case, the
default continues for 10 days after the date on which
written notice specifying the failure and requiring the
Company to remedy the same shall have been given 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
(i) Any other Event of Default provided with respect to Debt
Securities of that series.
An Event of Default with respect to one series of Debt Securities is not
necessarily an Event of Default for another series.
If an Event of Default described in clause (a), (b), (c), (d), (e), (h),
or (i) above occurs and is continuing with respect to any series of Debt
Securities, unless the principal and interest with respect to all the Debt
Securities of the 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 the series then outstanding may declare the principal
amount (or, if Original Issue Discount Debt Securities, the portion of the
principal amount as may be specified in the series) of and interest on all the
Debt Securities of the series due and payable immediately. If an Event of
Default described in clause (f) or (g) above occurs, unless the principal and
interest with respect to all the Debt Securities of all series shall have
become due and payable, the principal amount (or, if Original Issue Discount
Debt Securities, the portion of the principal amount as may be specified in
the series) of and interest on all Debt Securities of all series then
outstanding shall become and be immediately due and payable without any
declaration or other act on the part of the Trustee or any holder of Debt
Securities.
If an Event of Default occurs and is continuing, the Trustee shall be
entitled and empowered to institute any action or proceeding for the
collection of the sums so due and unpaid or to enforce the performance of any
provision of the Debt Securities of the affected series or the Indenture, to
prosecute any such action or proceeding to judgment or final decree, and to
enforce any judgment or final decree against the Company or any other obligor
on the Debt Securities of the series. In addition, if there shall be pending
proceedings for the bankruptcy or reorganization of the Company or any other
obligor on the Debt Securities, or if a receiver, trustee, or similar official
shall have been appointed for its property, the Trustee shall be entitled and
empowered to file and prove a claim for the whole amount of principal, premium
and interest (or, in the case of Original Issue Discount Debt Securities, the
portion of the principal amount as may be specified in the terms of the
series) owing and unpaid with respect to the Debt Securities. No holder of
any Debt Security or coupon of any series shall have any right to institute
any action or proceeding upon or under or with respect to the Indenture, for
the appointment of a receiver or trustee, or for any other remedy, unless (a)
the holder previously shall have given to the Trustee written notice of an
Event of Default with respect to Debt Securities of that series and of the
continuance thereof, (b) the holders of not less than 25% in aggregate
principal amount of the outstanding Debt Securities of that series shall have
made written request to the Trustee to institute the action or proceeding with
respect to the Event of Default 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 (c) the Trustee, for 60
days after its receipt of such notice, request, and offer of indemnity shall
have failed to institute the action or proceeding and no direction
inconsistent with the written request shall have been given to the Trustee
pursuant to the provisions of the Indenture. The Indenture requires the
Company to certify to the Trustee annually as to whether any default exists.
Prior to the acceleration of the maturity of the Debt Securities of any
series, 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 Debt Securities and any related coupons of that series, waive
any past default or Event of Default and its consequences for that series,
except (a) a default in the payment of the principal, premium or interest with
respect to the Debt Securities, or (b) a default with respect to a provision
of the Indenture that cannot be amended without the consent of each holder
affected thereby. In case of any waiver, the default shall cease to exist, any
Event of Default arising therefrom shall be deemed to have been cured for all
purposes, and the Company, the Trustee and the holders of the Debt Securities
of that series shall be restored to their former positions and rights under
the Indenture.
The Trustee shall, within 90 days after the occurrence of a default known
to it with respect to a series of Debt Securities, give to the holders of the
Debt Securities of the series notice of all uncured defaults with respect to
the series known to it, unless the defaults shall have been cured or waived
before the giving of the notice; provided, however, that except in the case of
default in the payment of principal, premium, or interest with respect to the
Debt Securities of the series or in the making of any sinking fund payment
with respect to the Debt Securities of the series, the Trustee shall be
protected in withholding notice if it in good faith determines that the
withholding of such notice is in the interest of the holders of the Debt
Securities.
Modification of the Indenture
The Company and the Trustee may enter into supplemental indentures without
the consent of the holders of Debt Securities for one or more of the following
purposes:
(a) To evidence the succession of another person to the Company
pursuant to the provisions of the Indenture pursuant to
consolidations, mergers and sales of assets and the
assumption by the successor of the covenants, agreements,
and obligations of the Company in the Indenture and in the
Debt Securities;
(b) To surrender any right or power conferred upon the Company
by the Indenture, 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 as the Board of Directors of the
Company shall consider to be for the protection of the
holders of the Debt Securities, and to make the occurrence,
or the occurrence and continuance, of a default in any of
the additional covenants, restrictions, conditions or
provisions a default or an Event of Default under the
Indenture (provided, however, that with respect to any such
additional covenant, restriction, condition or provision,
the supplemental indenture may provide for a period of grace
after default, which may be shorter or longer than that
allowed in the case of other defaults, may provide for an
immediate enforcement upon the default, may limit the
remedies available to the Trustee upon the default, or may
limit the right of holders of a majority in aggregate
principal amount of any or all series of Debt Securities to
waive the default);
(c) To cure any ambiguity or to correct or supplement any
provision contained in the Indenture, in any supplemental
indenture, or in any Debt Securities that may be defective
or inconsistent with any other provision contained therein,
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
the Indenture as shall not adversely affect the interests of
any holders of Debt Securities of any series;
(d) To modify or amend the Indenture in such a manner as to
permit the qualification of the Indenture or any
supplemental indenture under the Trust Indenture Act as then
in effect;
(e) To add to or change any of the provisions of the Indenture
to provide that Bearer Securities may be registerable as to
principal, to change or eliminate any restrictions on the
payment of principal or premium with respect to Registered
Securities or of principal, premium or interest with respect
to Bearer Securities, or to permit Registered Securities to
be exchanged for Bearer Securities, so long as any such
action does 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 the provisions of the Indenture relating to
consolidations, mergers, and sales of assets;
(g) In the case of Subordinated Debt Securities, to make any
change in the provisions of the Indenture to subordination
that would limit or terminate the benefits available to any
holder of Senior Indebtedness under such provisions (but
only if the holder of Senior Indebtedness consents to the
change);
(h) To add guarantees with respect to the Debt Securities or to
secure 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 the
Indenture with respect to one or more series of Debt
Securities, so long as any such addition, change or
elimination not otherwise permitted under the Indenture
shall (1) neither apply to any Debt Security of any series
created prior to the execution of the supplemental indenture
and entitled to the benefit of the provision nor modify the
rights of the holders of any Debt Security with respect to
the provision, or (2) become effective only when there is no
Debt Security outstanding;
(k) To evidence and provide for the acceptance of appointment 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 the Indenture as shall be necessary to
provide for or facilitate the administration of the
Indenture by more than one Trustee; and
(l) To establish the form or terms of Debt Securities and
coupons of any series, as described under "Description of
Debt Securities--General."
With the consent of the holders of a majority in aggregate principal
amount of the outstanding Debt Securities of each series affected thereby, the
Company and the Trustee may from time to time and at any time enter into a
supplemental indenture for the purpose of adding any provisions to, changing
in any manner, or eliminating any of the provisions of the Indenture or of any
supplemental indenture or modifying in any manner the rights of the holders of
the Debt Securities of the series; provided, however, that without the consent
of the holders of each Debt Security so affected, no such supplemental
indenture 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, (e) make any Debt Security payable in a currency other than that
stated in the Debt Security, (f) in the case of any Subordinated Debt Security
or coupons appertaining thereto, make any change in the provisions of the
Indenture respecting subordination that adversely affects the rights of any
holder under such provisions, (g) release any security that may have been
granted with respect to the Debt Securities, (h) make any change in the
provisions of the Indenture with respect to waivers of defaults or amendments
that require unanimous consent, (i) change any obligation of the Company
provided for in the Indenture to pay additional interest with respect to
Bearer Securities, or (j) limit the obligation of the Company to maintain a
paying agency outside the United States for payment on Bearer Securities or
limit the obligation of the Company to redeem certain Bearer Securities.
Consolidation, Merger, and Sale of Assets
The Company may not consolidate with or merge with or into any person, or
convey, transfer or lease all or substantially all its assets, unless the
following conditions have been satisfied:
(a) Either (1) the Company shall be the continuing person in the
case of a merger, or (2) 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, or the
District of Columbia and shall expressly assume all the
obligations of the Company under the Debt Securities and
coupons and the Indenture;
(b) Immediately after giving effect to the transaction (and
treating any indebtedness that becomes an obligation of the
Successor Company or any subsidiary of the Company as a
result of the transaction as having been incurred by the
Successor Company or the subsidiary at the time of the
transaction), no Default or Event of Default would occur or
be continuing;
(c) The Successor Company waives any right to redeem any Bearer
Security under circumstances in which the Successor Company
would be entitled to redeem the 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 the
consolidation, merger or transfer complies with the
Indenture.
Satisfaction and Discharge of the Indenture; Defeasance
The Indenture shall generally cease to be of any further effect with
respect to a series of Debt Securities if (a) the Company has delivered to the
Trustee for cancellation all Debt Securities of the series (with certain
limited exceptions), or (b) all Debt Securities and coupons of the series not
theretofore delivered to the Trustee for cancellation shall have become due
and payable, or are by their terms to become due and payable within one year
or are to be called for redemption within one year, and the Company shall have
deposited with the Trustee as trust funds the entire amount sufficient to pay
at maturity or upon redemption all the Debt Securities and coupons (and if, in
either case, the Company shall also pay or cause to be paid all other sums
payable under the Indenture by the Company).
In addition, the Company shall have a "legal defeasance option" (pursuant
to which it may terminate, with respect to the Debt Securities of a particular
series, all its obligations under the Debt Securities and the Indenture with
respect to the Debt Securities) and a "covenant defeasance option" (pursuant
to which it may terminate, with respect to the Debt Securities of a particular
series, its obligations with respect to the Debt Securities under certain
specified covenants contained in the Indenture). If the Company exercises its
legal defeasance option with respect to a series of Debt Securities, payment
of the Debt Securities may not be accelerated because of an Event of Default.
If the Company exercises its covenant defeasance option with respect to a
series of Debt Securities, payment of the Debt Securities may not be
accelerated because of an Event of Default related to the specified covenants.
The Company may exercise its legal defeasance option or its covenant
defeasance option with respect to the Debt Securities of a series only if (a)
the Company irrevocably deposits in trust with the Trustee cash or U.S
Government Obligations (as defined in the Indenture) for the payment of
principal, premium, and interest with respect to the Debt Securities 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 with respect to all the Debt Securities of the
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 described in
clause (g) or (h) under "Description of Debt Securities--Events of Default and
Remedies" with respect to the Company occurs that is continuing at the end of
the period, (d) no Default has occurred and is continuing on the date of the
deposit and after giving effect thereto, (e) the deposit does not constitute
a default under any other agreement binding on the Company and, in the case of
Subordinated Debt Securities, is not prohibited by the provisions of the
Indenture to subordination, (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) the Company shall have delivered to the
Trustee an opinion of counsel addressing certain federal income tax matters to
the defeasance, and (h) 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 the series
as contemplated by the Indenture have been complied with.
The Trustee shall hold in trust cash or U.S. Government Obligations
deposited with it as described above and shall apply the deposited cash and
the proceeds from deposited U.S. Government Obligations to the payment of
principal, premium, and interest with respect to the Debt Securities and
coupons of the defeased series. In the case of Subordinated Debt Securities
and coupons related thereto, the money and U.S. Government Obligations so held
in trust will not be subject to the subordination provisions of the Indenture.
The Trustee
The Company may appoint a separate Trustee for any series of Debt
Securities. As used herein in the description of a series of Debt Securities,
the term "Trustee" refers to the Trustee appointed with respect to the series
of Debt Securities.
The Company may maintain banking and other commercial relationships with
the Trustee and its affiliates in the ordinary course of business, and the
Trustee may own Debt Securities.
DESCRIPTION OF CAPITAL STOCK
The authorized capital stock of the Company consists of 75,000,000
shares of Common Stock and 10,000,000 shares of Preferred Stock. On April
3, 1998, 33,425,903 shares of Common Stock and no shares of Preferred Stock
were outstanding.
Common Stock
All shares of Common Stock have equal rights to participate in dividends
and, in the event of liquidation, assets available for distribution to
stockholders, subject to any preference established with respect to preferred
stock. Each holder of Common Stock is entitled to one vote for each share
held on all matters submitted to a vote of stockholders, and voting rights for
the election of directors are noncumulative. Shares of Common Stock carry no
conversion, preemptive or subscription rights, and are not subject to
redemption. All outstanding shares of Common Stock are, and any shares of
Common Stock issued upon conversion of convertible securities will be, fully
paid and nonassessable. The Company pays dividends on Common Stock when, as
and if declared by the Board of Directors of the Company (the "Board of
Directors"). Dividends may be declared in the discretion of the Board of
Directors from funds legally available therefor, subject to restrictions under
agreements related to Company indebtedness.
The transfer agent for the Common Stock is ChaseMellon Shareholder
Services, L.L.C., Dallas, Texas.
Description of Preferred Stock
The Preferred Stock offered hereby will be issued in one or more series.
The holders of Preferred Stock will have no preemptive rights. Preferred
Stock, upon issuance against full payment of the purchase price therefor, will
be fully paid and nonassessable. Neither the par value not the liquidation
preference is indicative of the price at which the Preferred Stock will
actually trade on or after the date of issuance. The applicable Prospectus
Supplement will contain a description of certain United States federal income
tax consequences relating to the purchase and ownership of the series of
Preferred Stock offered by such Prospectus Supplement.
The Preferred Stock shall have the dividend, liquidation, redemption and
voting rights as provided in a Prospectus Supplement relating to a particular
series of the Preferred Stock. The applicable Prospectus Supplement will
describe the following terms of the series of Preferred Stock in respect of
which this Prospectus is being delivered: (1) the designation and stated
value per share of such Preferred Stock and the number of shares offered; (2)
the amount of liquidation preference per share; (3) the initial public
offering price at which such Preferred Stock will be issued; (4) the dividend
rate (or method of calculation), the dates on which dividends shall be payable
and the dates from which dividends shall commence to cumulate, if any: (5)
any redemption or sinking fund provisions; (6) any conversion or exchange
rights; (7) whether the Company has elected to offer Depository Shares as
described below under "Description of Depository Shares"; and (8) any
additional voting, dividend, liquidation, redemption, sinking fund and other
rights, preferences, privileges, limitations and restrictions.
Factors Affecting Acquisitions of Control
Charter
The Certificate of Incorporation, as amended, provides that the Board of
Directors, in its discretion, may establish one or more classes or series of
preferred stock having such number of shares, designations, relative voting
rights, dividend rates, liquidation and other rights, preferences and
limitations as may be fixed by the Board of Directors without any further
stockholder approval. Such rights, preferences, privileges and limitations as
may be established could have the effect of impending or discouraging the
acquisition of control of the Company.
Stockholder Rights Plan
On May 21, 1997, the Board authorized the issuance of one preferred share
purchase right (a "Right") for each outstanding share of Common Stock held of
record on June 3, 1997. Each Right entitles the registered holder to purchase
from the Company one one-thousandth of a share of Junior Participating
Preferred Stock, par value $.01 per share (the "Junior Preferred Shares"), of
the Company, at a price of $70.00 per one one-thousandth of a Junior Preferred
Share (the "Purchase Price"), subject to adjustment. The description and
terms of the rights are set forth in a Rights Agreement (the "Rights
Agreement") dated as of May 27, 1997 between the Company and ChaseMellon
Shareholder Services, L.L.C., as Rights Agent, a copy of which was filed as an
exhibit to the Company's Current Report on Form 8-K dated June 2, 1997.
Initially, the Rights will attach to all Common Stock certificates
representing outstanding shares and no separate Right Certificate will be
distributed. The Rights will separate from the Common Stock and a
distribution date (the "Distribution Date") will occur upon the earlier of (i)
10 business days following a public announcement that a person or group of
affiliated or associated persons (the "Acquiring Person") has acquired
beneficial ownership of 20% or more of the outstanding Voting Shares (as
defined in the Rights Agreement) of the Company, or (ii) 10 business days
following the commencement or announcement of an intention to commence a
tender offer or exchange offer the consummation of which would result in the
beneficial ownership by a person or group of 20% or more of such outstanding
Voting Shares.
The Rights are not exercisable until the Distribution Date. The Rights
will expire on May 21, 2007 (the "Final Expiration Date"), unless the Final
Expiration Date is extended or the Rights are earlier redeemed or exchanged by
the Company as described below.
If a person or group of persons were to acquire 20% or more of the Voting
Shares of the Company, each Right then outstanding (other than Rights
beneficially owned by the Acquiring Person which would become null and void)
would become a right to buy that number of shares of Common Stock (or under
certain circumstances, the equivalent number of one one-thousandths of a
Junior Preferred Share) that at the time of such acquisition would have a
market value of two times the Purchase Price of the Right.
If the Company were acquired in a merger or other business combination
transaction or assets constituting more than 50% of its consolidated assets or
producing more than 50% of its earning power or cash flow were sold, proper
provision will be made so that each holder of a Right will thereafter have the
right to receive, upon the exercise thereof at the then current Purchase Price
of the Right, that number of shares of common stock of the acquiring company
which at the time of such transaction would have a market value of two times
the Purchase Price of the Right.
At any time after the acquisition by a person or group of affiliated or
associated persons of beneficial ownership of 20% or more of the outstanding
Voting Shares of the Company and before the acquisition by a person or group
of 50% or more of the outstanding Voting Shares of the Company, the Board may,
at its option, issue Common Stock in mandatory redemption of, and in exchange
for, all or part of the then outstanding and exercisable Rights (other than
Rights owned by such person or group which would become null and void) at an
exchange ratio of one share of Common Stock (or one one-thousandth of a Junior
Preferred Share) for each two shares of Common Stock for which each Right is
then exercisable, subject to adjustment.
At any time prior to the first public announcement that a person or group
of persons has become the beneficial owner of 20% or more of the outstanding
Voting Shares, the Board may redeem all but not less than all the then
outstanding Rights at a price of $0.01 per Right (the "Redemption Price").
The redemption of the Rights may be made effective at such time, on such basis
and with such conditions as the Board in its sole discretion may establish.
Immediately upon action of the Board ordering redemption of the Rights, the
right to exercise the Rights will terminate and the only right of the holders
of the Rights will be to receive the Redemption Price.
Until a Right is exercised, the holder thereof, as such, will have no
rights as a stockholder of the Company, including, without limitation, the
right to vote or to receive dividends.
Director's Liability
The Certificate of Incorporation, as amended, also provides for the
elimination of directors' liability for monetary damages for a breach of
certain fiduciary duties and for the indemnification of directors, officers,
employees or agents as permitted by the DGCL. These provisions cannot be
amended without the affirmative vote of the holders of a least a majority in
interest of the outstanding shares entitled to vote.
The Company has entered into indemnification agreements with all directors
and executive officers and may, in the future, enter into such agreements with
employees and agents. Such indemnification agreements provide generally that
such persons will be indemnified, to the extent permitted by applicable law,
for expenses (including attorneys' fees), judgments, penalties, fines and
amounts paid in settlement actually and reasonably incurred by such persons in
connection with any proceeding (including, to the extent permitted by law, any
derivative action) to which such persons are, or are threatened to be made, a
party by reason of their status in such positions. Such indemnification
agreements do not change the basic legal standards for indemnity under
applicable law or as set forth in the Certificate of Incorporation.
DESCRIPTION OF DEPOSITARY SHARES
The description set forth below and in any Prospectus Supplement of
certain provisions of the Deposit Agreement (as defined below), Depositary
Shares (as defined below) and Depositary Receipts (as defined below) does not
purport to be complete and is subject to and qualified in its entirety by
reference to the forms of Deposit Agreement and Depositary Receipts to each
series of Preferred Stock that will be filed with the SEC in connection with
the offering of the series of Preferred Stock.
General
The Company may, at its option, elect to offer fractional interests in
shares of Preferred Stock, rather than shares of Preferred Stock. In the event
such option is exercised, the Company will provide for the issuance by a
depositary to the public of receipts for depositary shares ("Depositary
Shares"), each of which will represent fractional interests of a particular
series of Preferred Stock (which will be set forth in the Prospectus
Supplement to a particular series of Preferred Stock).
The shares of any series of Preferred Stock underlying the Depositary
Shares will be deposited under a separate Deposit Agreement (the "Deposit
Agreement") between the Company and a bank or trust company selected by the
Company having its principal office in the United States and having a combined
capital and surplus of at least $50 million. The Prospectus Supplement to a
series of Depositary Shares will set forth the name and address of the
depositary with respect to the Depositary Shares. Subject to the terms of the
Deposit Agreement, each owner of Depositary Shares will be entitled, in
proportion to the applicable fractional interests in shares of Preferred Stock
underlying the Depositary Shares, to all the rights and preferences of the
Preferred Stock underlying the Depositary Shares (including dividend, voting,
redemption, conversion, and liquidation rights).
The Depositary Shares will be evidenced by depositary receipts issued
pursuant to the Deposit Agreement (the "Depositary Receipts"). Depositary
Receipts will be distributed to those persons purchasing the fractional
interests in shares of the related series of Preferred Stock in accordance
with the terms of the offering described in the related Prospectus Supplement.
Dividends and Other Distributions
The depositary will distribute all cash dividends or other cash
distributions received with respect to Preferred Stock to the record holders
of Depositary Shares to the Preferred Stock in proportion to the numbers of
the Depositary Shares owned by the holders on the relevant record date. The
depositary shall distribute only the amount, however, as can be distributed
without attributing to any holder of Depositary Shares a fraction of one cent,
and the balance not so distributed shall be added to and treated as part of
the next sum received by the depositary for distribution to record holders of
Depositary Shares.
In the event of a distribution other than in cash, the depositary will
distribute property received by it to the record holders of Depositary Shares
entitled thereto, unless the depositary determines that it is not feasible to
make the distribution, in which case the depositary may, with the approval of
the Company, sell the property and distribute the net proceeds from the sale
to the holders.
The Deposit Agreement will also contain provisions as to the manner in
which any subscription or similar rights offered by the Company to holders of
the Preferred Stock shall be made available to the holders of Depositary
Shares.
Redemption of Depositary Shares
If a series of the Preferred Stock underlying the Depositary Shares is
subject to redemption, the Depositary Shares will be redeemed from the
proceeds received by the depositary resulting from the redemption, in whole or
in part, of the series of the Preferred Stock held by the depositary. The
depositary shall mail notice of redemption not less than 30 and not more than
60 days prior to the date fixed for redemption to the record holders of the
Depositary Shares to be so redeemed at their respective addresses appearing in
the depositary's books. The redemption price per Depositary Share will be
equal to the applicable fraction of the redemption price per share payable
with respect to the series of the Preferred Stock. Whenever the Company
redeems shares of Preferred Stock held by the depositary, the depositary will
redeem as of the same redemption date the number of Depositary Shares to
shares of Preferred Stock so redeemed. If less than all the Depositary Shares
are to be redeemed, the Depositary Shares to be redeemed will be selected by
lot or pro rata as may be determined by the depositary.
After the date fixed for redemption, the Depositary Shares so called for
redemption will no longer be outstanding and all rights of the holders of the
Depositary Shares will cease, except the right to receive the money,
securities, or other property payable upon the redemption and any money,
securities, or other property to which the holders of the Depositary Shares
were entitled upon the redemption upon surrender to the depositary of the
Depositary Receipts evidencing the Depositary Shares.
Voting the Preferred Stock
Upon receipt of notice of any meeting at which the holders of the
Preferred Stock are entitled to vote, the depositary will mail the information
contained in the notice of meeting to the record holders of the Depositary
Shares to the Preferred Stock. Each record holder of the Depositary Shares on
the record date (which will be the same date as the record date for the
Preferred Stock) will be entitled to instruct the depositary as to the
exercise of the voting rights pertaining to the number of shares of Preferred
Stock underlying the holder's Depositary Shares. The depositary will endeavor,
insofar as practicable, to vote the number of shares of Preferred Stock
underlying the Depositary Shares in accordance with the instructions, and the
Company will agree to take all action that may be deemed necessary by the
depositary in order to enable the depositary to do so.
Amendment and Termination of Depositary Agreement
The form of Depositary Receipt evidencing the Depositary Shares and any
provision of the Deposit Agreement may at any time be amended by agreement
between the Company and the depositary. However, any amendment that materially
and adversely alters the rights of the existing holders of Depositary Shares
will not be effective unless the amendment has been approved by the record
holders of at least a majority of the Depositary Shares then outstanding. A
Deposit Agreement may be terminated by the Company or the depositary only if
(a) all outstanding Depositary Shares thereto have been redeemed or, (b) there
has been a final distribution with respect to the Preferred Stock of the
relevant series in connection with any liquidation, dissolution, or winding up
of the Company and the distribution has been distributed to the holders of the
related Depositary Shares.
Charges of Depositary
The Company will pay all transfer and other taxes and governmental charges
arising solely from the existence of the depositary arrangements. The Company
will pay charges of the depositary in connection with the initial deposit of
the Preferred Stock and any redemption of the Preferred Stock. Holders of
Depositary Shares will pay transfer and other taxes and governmental charges
and the other charges as are expressly provided in the Deposit Agreement to be
for their accounts.
Resignation and Removal of Depositary
The depositary may resign at any time by delivering to the Company notice
of its election to do so, and the Company may at any time remove the
depositary, any such resignation or removal to take effect upon the
appointment of a successor depositary and its acceptance of the appointment.
The successor depositary must be appointed within 60 days after delivery of
the notice of resignation or removal and must be a bank or trust company
having its principal office in the United States and having a combined capital
and surplus of at least $50 million.
Miscellaneous
The depositary will forward to the holders of Depositary Shares all
reports and communications from the Company that are delivered to the
depositary and that the Company is required to furnish to the holders of the
Preferred Stock.
Neither the depositary nor the Company will be liable if it is prevented
or delayed by law or any circumstance beyond its control in performing its
obligations under the Deposit Agreement. The obligations of the Company and
the depositary under the Deposit Agreement will be limited to performance in
good faith of their duties thereunder and they will not be obligated to
prosecute or defend any legal proceeding with respect to any Depositary Shares
or Preferred Stock unless satisfactory indemnity is furnished. They may rely
upon written advice of counsel or accountants, or information provided by
persons presenting Preferred Stock for deposit, holders of Depositary Shares,
or other persons believed to be competent and on documents believed to be
genuine.
DESCRIPTION OF WARRANTS
The Company may issue Warrants for the purchase of Debt Securities,
Preferred Stock or Common Stock. Warrants may be issued independently or
together with Debt Securities, Preferred Stock or Common Stock offered by any
Prospectus Supplement and may be attached to or separate from any such Offered
Securities. Each series of Warrants will be issued under a separate warrant
agreement (a "Warrant Agreement") to be entered into between the Company and
a bank or trust company, as warrant agent (the "Warrant Agent"). The Warrant
Agent will act solely as an agent of the Company in connection with the
Warrants and will not assume any obligation or relationship of agency or trust
for or with any holders or beneficial owners of Warrants. The following
summary of certain provisions of the Warrants does not purport to be complete
and is subject to, and qualified in its entirety by reference to, the
provisions of the Warrant Agreement that will be filed with the SEC in
connection with the offering of the Warrants.
Debt Warrants
The Prospectus Supplement relating to a particular issue of Debt Warrants
will describe the terms of the Debt Warrants, including the following: (a) the
title of the Debt Warrants; (b) the offering price for the Debt Warrants, if
any; (c) the aggregate number of the Debt Warrants; (d) the designation and
terms of the Debt Securities purchasable upon exercise of the Debt Warrants;
(e) if applicable, the designation and terms of the Debt Securities with which
the Debt Warrants are issued and the number of the Debt Warrants issued with
each Debt Security; (f) if applicable, the date from and after which the Debt
Warrants and any Debt Securities issued therewith will be separately
transferable; (g) the principal amount of Debt Securities purchasable upon
exercise of a Debt Warrant and the price at which the principal amount of Debt
Securities may be purchased upon exercise (which price may be payable in cash,
securities, or other property); (h) the date on which the right to exercise
the Debt Warrants shall commence and the date on which the right shall expire;
(i) if applicable, the minimum or maximum amount of the Debt Warrants that may
be exercised at any one time; (j) whether the Debt Warrants represented by the
Debt Warrant certificates or Debt Securities that may be issued upon exercise
of the Debt Warrants will be issued in registered or bearer form; (k)
information with respect to book- entry procedures, if any; (l) the currency
or currency units in which the offering price, if any, and the exercise price
are payable; (m) if applicable, a discussion of material United States federal
income tax considerations; (n) the antidilution provisions of the Debt
Warrants, if any; (o) the redemption or call provisions, if any, applicable to
the Debt Warrants; and (p) any additional terms of the Debt Warrants,
including terms, procedures, and limitations to the exchange and exercise of
the Debt Warrants.
Stock Warrants
The Prospectus Supplement relating to any particular issue of Preferred
Stock Warrants or Common Stock Warrants will describe the terms of the
Warrants, including the following: (a) the title of the Warrants; (b) the
offering price for the Warrants, if any; (c) the aggregate number of the
Warrants; (d) the designation and terms of the Common Stock or Preferred Stock
purchasable upon exercise of the Warrants; (e) if applicable, the designation
and terms of the Offered Securities with which the Warrants are issued and the
number of the Warrants issued with each Offered Security; (f) if applicable,
the date from and after which the Warrants and any Offered Securities issued
therewith will be separately transferable; (g) the number of shares of Common
Stock or Preferred Stock purchasable upon exercise of a Warrant and the price
at which the shares may be purchased upon exercise (which price may be payable
in cash, securities, or other property); (h) the date on which the right to
exercise the Warrants shall commence and the date on which the right shall
expire; (i) if applicable, the minimum or maximum amount of the Warrants that
may be exercised at any one time; (j) the currency or currency units in which
the offering price, if any, and the exercise price are payable; (k) if
applicable, a discussion of material United States federal income tax
considerations; (l) the antidilution provisions of the Warrants, if any; (m)
the redemption or call provisions, if any, applicable to the Warrants; and (n)
any additional terms of the Warrants, including terms, procedures and
limitations to the exchange and exercise of the Warrants.
PLAN OF DISTRIBUTION
The Company may sell the Offered Securities within or outside the United
States through underwriters, brokers or dealers, directly to one or more
purchasers, or through agents. The Prospectus Supplement with respect to the
Offered Securities will set forth the terms of the offering of the Offered
Securities, including the name or names of any underwriters, dealers or
agents, the purchase price of the Offered Securities and the proceeds to the
Company from the sale, any delayed delivery arrangements, any underwriting
discounts and other items constituting underwriters' compensation, the initial
public offering price, any discounts or concessions allowed or reallowed or
paid to dealers, and any securities exchanges on which the Offered Securities
may be listed.
If underwriters are used in the sale, the Offered Securities will be
acquired by the underwriters for their own account and may be resold from time
to time in one or more transactions, including negotiated transactions, at a
fixed public offering price or at varying prices determined at the time of
sale. The Offered Securities may be offered to the public either through
underwriting syndicates represented by one or more managing underwriters or
directly by one or more firms acting as underwriters. The underwriter or
underwriters with respect to a particular underwritten offering of Offered
Securities will be named in the Prospectus Supplement to the offering, and if
an underwriting syndicate is used, the managing underwriter or underwriters
will be set forth on the cover of the Prospectus Supplement. Unless otherwise
set forth in the Prospectus Supplement thereto, the obligations of the
underwriters or agents to purchase the Offered Securities will be subject to
conditions precedent and the underwriters will be obligated to purchase all
the Offered Securities if any are purchased. The initial public offering price
and any discounts or concessions allowed or reallowed or paid to dealers may
be changed from time to time.
The Company may also sell the Offered Securities pursuant to one or more
standby agreements with one or more underwriters in connection with the call
for redemption of a specified class or series of any securities of the Company
or any subsidiary of the Company. In such a standby agreement, the underwriter
or underwriters would agree either (a) to purchase from the Company up to the
number of shares of Common Stock that would be issuable upon conversion of all
the shares of the class or series of securities of the Company or its
subsidiary at an agreed price per share of Common Stock, or (b) to purchase
from the Company up to a specified dollar amount of Offered Securities at an
agreed price per Offered Security which price may be fixed or may be
established by formula or other method and which may or may not relate to
market prices of the Common Stock or any other security of the Company then
outstanding. The underwriter or underwriters would also agree, if applicable,
to convert into Common Stock or other security of the Company any securities
of the class or series held or purchased by the underwriter or underwriters.
The underwriter or underwriters may assist in the solicitation of conversions
by holders of the class or series of securities.
If dealers are used in the sale of Offered Securities with respect to
which this Prospectus is delivered, the Company will sell the Offered
Securities to the dealers as principals. The dealers may then resell the
Offered Securities to the public at varying prices to be determined by the
dealers at the time of resale. The names of the dealers and the terms of the
transaction will be set forth in the Prospectus Supplement thereto.
Offered Securities may be sold directly by the Company or through agents
designated by the Company from time to time at fixed prices, which may be
changed, or at varying prices determined at the time of sale. Any agent
involved in the offer or sale of the Offered Securities with respect to which
this Prospectus is delivered will be named, and any commissions payable by the
Company to the agent will be set forth, in the Prospectus Supplement thereto.
Unless otherwise indicated in the Prospectus Supplement, any agent will
be acting on a best efforts basis for the period of its appointment.
In connection with the sale of the Offered Securities, underwriters or
agents may receive compensation from the Company or from purchasers of Offered
Securities for whom they may act as agents in the form of discounts,
concessions, or commissions. Underwriters, agents, and dealers participating
in the distribution of the Offered Securities may be deemed to be
underwriters, and any discounts or commissions received by them from the
Company and any profit on the resale of the Offered Securities by them may be
deemed to be underwriting discounts or commissions under the Securities Act.
If so indicated in the Prospectus Supplement, the Company will authorize
agents, underwriters or dealers to solicit offers from certain types of
institutions to purchase Offered Securities from the Company at the public
offering price set forth in the Prospectus Supplement pursuant to delayed
delivery contracts providing for payment and delivery on a specified date in
the future. The contracts will be subject only to those conditions set forth
in the Prospectus Supplement, and the Prospectus Supplement will set forth the
commission payable for solicitation of the contracts.
Agents, dealers and underwriters may be entitled under agreements entered
into with the Company to indemnification by the Company against certain civil
liabilities, including liabilities under the Securities Act, or to
contribution with respect to payments that the agents, dealers or underwriters
may be required to make with respect thereto. Agents, dealers and underwriters
may be customers of, engage in transactions with, or perform services for the
Company in the ordinary course of business.
The Offered Securities may or may not be listed on a national securities
exchange. No assurances can be given that there will be a market for the
Offered Securities.
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LEGAL OPINIONS
Certain legal matters in connection with the Offered Securities will be
passed upon for the Company by Peter E. Lorenzen, Vice President and General
Counsel of the Company, and for any underwriters or agents by a firm named in
the Prospectus Supplement to a particular issue of Offered Securities. Mr.
Lorenzen owns 47,400 shares, and holds options to purchase 70,300 shares, of
Common Stock.
EXPERTS
The consolidated financial statements and financial statement schedules
incorporated in this Prospectus by reference have been audited by Arthur
Andersen LLP, independent public accountants, as indicated in their reports
with respect thereto, and are incorporated herein in reliance upon the
authority of such firm as experts in accounting and auditing in giving said
reports.
The information incorporated herein by reference regarding proved reserves
and related future net revenues and the present value thereof is derived, as
and to the extent described herein and therein, from a reserve report prepared
by Netherland, Sewell & Associates, Inc., an independent oil and gas
consultant, and, to such extent, is included and incorporated by reference in
reliance upon the authority of such firm as an expert with respect to the
matters contained in such report.
<PAGE>
<PAGE>
NO PERSON HAS BEEN AUTHORIZED TO GIVE ANY INFORMATION OR TO MAKE ANY
REPRESENTATIONS OTHER THAN THOSE CONTAINED IN THIS PROSPECTUS OR IN A
PROSPECTUS SUPPLEMENT, AND IF GIVEN OR MADE, SUCH INFORMATION OR
REPRESENTATIONS MUST NOT BE RELIED UPON AS HAVING BEEN AUTHORIZED BY THE
COMPANY OR ANY OTHER PERSON. NEITHER THIS PROSPECTUS NOR ANY PROSPECTUS
SUPPLEMENT CONSTITUTES AN OFFER TO SELL OR A SOLICITATION OF ANY OFFER TO BUY
ANY SECURITIES OTHER THAN THE SECURITIES TO WHICH IT RELATES, NOR DOES IT
CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF ANY OFFER TO BUY THE
SECURITIES IN ANY JURISDICTION IN WHICH THE OFFER OR SOLICITATION IS NOT
AUTHORIZED, OR IN WHICH THE PERSON MAKING THE OFFER OR SOLICITATION IS NOT
QUALIFIED TO DO SO, OR TO ANY PERSON TO WHOM IT IS UNLAWFUL TO MAKE THE
OFFEROR SOLICITATION. NEITHER THE DELIVERY OF THIS PROSPECTUS NOR ANY
PROSPECTUS SUPPLEMENT NOR ANY SALE MADE HEREUNDER OR THEREUNDER SHALL, UNDER
ANY CIRCUMSTANCES, CREATE ANY IMPLICATION THAT ANY INFORMATION CONTAINED
HEREIN OR THEREIN IS CORRECT AS OF ANY TIME SUBSEQUENT TO THE DATE HEREOF.
--------------------------
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
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<S> <C>
Available Information
Incorporation of Certain Documents by Reference
The Company
Use of Proceeds
Ratios of Earnings to Fixed Charges and Earnings
to Combined Fixed Charges and Preferred Stock Dividends
Description of Debt Securities
Description of Capital Stock
Description of Depositary Shares
Description of Warrants
Plan of Distribution
Legal Opinions
Experts
</TABLE>
- ---------------------------------------------------------------------------
- ---------------------------------------------------------------------------
LOGO
SNYDER OIL CORPORATION
DEBT SECURITIES
PREFERRED STOCK
DEPOSITORY SHARES
COMMON STOCK
WARRANTS
PROSPECTUS
, 1998
<PAGE>
PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
All capitalized terms used and not defined in Part II of this Registration
Statement shall have the meanings assigned to them in the Prospectus which
forms a part of this Registration Statement.
ITEM 14 -- OTHER EXPENSES OF ISSUANCE AND DISTRIBUTION
The following itemized table sets forth estimates of those expenses
payable by the Company in connection with the offer and sale or exchange of
the securities offered hereby:
SEC Registration Fee. . . . . . . . . . . . . . . . . . $ 66,375
Blue Sky Fees and Expenses (including legal fees) . . . 5,000
Printing end Engraving Expenses . . . . . . . . . . . . 100,000
Legal Fees and Expenses . . . . . . . . . . . . . . . . 75,000
Accountants' Fees and Expenses. . . . . . . . . . . . . 75,000
Trustees' Fees and Expenses . . . . . . . . . . . . . . 15,000
Miscellaneous Fees and Expenses . . . . . . . . . . . . 11,500
Total . . . . . . . . . . . . . . . . . . . . . . . 347,875
ITEM 15 -- INDEMNIFICATION OF DIRECTORS AND OFFICERS
The Registrant is incorporated in Delaware. Under Section 145 of the
General Corporation Law of the State of Delaware (the "DGCL"), a Delaware
corporation has the power, under specified circumstances, to indemnify its
directors, officers, employees and agents in connection with actions, suits or
proceedings brought against them by a third party or in the right of the
corporation, by reason of the fact that they were or are such directors,
officers, employees or agents, against expenses and liabilities incurred in
any such action, suit or proceeding so long as they acted in good faith and in
a manner that they reasonably believed to be in, or not opposed to, the best
interests of such corporation, and with respect to any criminal action, that
they had no reasonable cause to believe their conduct was unlawful. With
respect to suits by or in the right of such corporation, however,
indemnification is generally limited to attorneys' fees and other expenses and
is not available if such person is adjudged to be liable to such corporation
unless the court determines that indemnification is appropriate. A Delaware
corporation also has the power to purchase and maintain insurance for such
persons. Article Nine of the Certificate of Incorporation of the Registrant
provides for mandatory indemnification of directors and officers to the
fullest extent permitted by Section 145 of the DGCL. Reference is made to the
Certificate of Incorporation of the Registrant, filed as an Exhibit hereto.
The Registrant has entered into indemnification agreements with all
directors and executive officers and may, in the future, enter into such
agreements with employees and agents. Such indemnification agreements provide
generally that such persons will be indemnified, to the extent permitted by
applicable law, for expenses (including attorneys' fees), judgments,
penalties, fines and amounts paid in settlement actually and reasonably
incurred by such persons in connection with any proceeding (including, to the
extent permitted by law, any derivative action) to which such persons are, or
are threatened to be made, a party by reason of their status in such
positions. Such indemnification agreements do not change the basic legal
standards for indemnity under applicable law or as set forth in the
Certificate of Incorporation.
The form of the Underwriting Agreement, which will be filed as an Exhibit
hereto, will provide that the Underwriters will indemnify the Registrant, its
directors and officers and certain other persons against liabilities,
including liabilities under the Securities Act of 1933, as amended (the
"Securities Act") with respect to information furnished in writing to the
Registrant for use in this Registration Statement.
Section 102(b)(7) of the DGCL provides that a certificate of incorporation
may contain a provision eliminating or limiting the personal liability of a
director to the corporation or its stockholders for monetary damages for
breach of fiduciary duty as a director provided that such provision shall not
eliminate or limit the liability of a director (i) for any breach of the
director's duty of loyalty to the corporation or its stockholders, (ii) for
acts or omissions not in good faith or which involve intentional misconduct or
a knowing violation of law, (iii) under Section 174 (relating to liability for
unauthorized acquisitions or redemptions of, or dividends on, capital stock)
of the DGCL or (iv) for any transaction from which the director derived an
improper personal benefit. The Registrant's Certificate of Incorporation
contains such a provision.
The above discussion of the Registrant's Certificate of Incorporation and
Sections 102(b)(7) and 145 of the DGCL is not intended to be exhaustive and
its qualified in its entirety by such Certificate of Incorporation and
statutes.
ITEM 16 -- EXHIBITS
1.1 Form of Underwriting Agreement.*
4.1 Form of Indenture, including form of Debenture, with respect to Debt
Securities**
5.1 Opinion of Peter E. Lorenzen, Vice President - General Counsel of
the Registrant, as to legality of the Securities registered hereby.
**
12.1 Computation of Ratio of Earnings to Fixed Charges. **
12.2 Computation of Ratio of Earnings to Combined Fixed Charges and
Preferred Stock Dividends.**
23.1 Consent of Peter E. Lorenzen to use of his opinion filed as Exhibit
5.1 (set forth in his opinion filed as Exhibit 5.1).
23.2 Consent of Arthur Andersen LLP.**
23.3 Consent of Netherland, Sewell & Associates, Inc.**
24.1 Powers of attorney (set forth on the signature page hereof).
25.1 Form T-1 Statements of Eligibility and Qualifications of Trustee
under Trust Indenture Act of 1939 relating to the Indenture.*
99.1 Reserve letter from Netherland, Sewell & Associates, Inc. dated
February 3, 1998 to the Snyder Oil Corporation interest as of
December 31, 1997 (incorporated by reference from Exhibit 99.1 to
the Annual Report on Form 10-K of Snyder Oil Corporation for the
year ended December 31, 1997 (File No. 1-10509)).
- ----------
* To be filed as an exhibit to Form 8-K in reference to the specific
offering of Securities, if any, to which it relates.
** Filed herewith.
ITEM 17 -- UNDERTAKINGS
(a) The undersigned Registrant hereby undertakes:
(1) to file, during any period in which offers or sales are
being made, a post-effective amendment to this
Registration Statement:
(i) to include any prospectus required by Section 10(a)(3) of
the Securities Act;
(ii) to reflect in the prospectus any facts or events arising
after the effective date of this Registration Statement
(or the most recent post-effective amendment thereof)
which, individually or in the aggregate, represent a
fundamental change in the information set forth in this
Registration Statement. Notwithstanding the foregoing,
any increase or decrease in volume of securities offered
(if the total dollar value of securities offered would not
exceed that which was registered) and any deviation from
the low or high and of the estimated maximum offering
range may be reflected in the form of prospectus filed
with the SEC pursuant to Rule 424(b) if, in the aggregate,
the changes in volume and price represent no more than 20
percent change in the maximum aggregate offering price set
forth in the "Calculation of Registration Fee" table in
the effective registration statement; and
(iii) to include any material information with respect to the
plan of distribution not previously disclosed in this
Registration Statement or any material change to the
information in this Registration Statement;
provided, however, that clauses (i) and (ii) above do not apply if the
information required to be included in a post-effective amendment by those
clauses is contained in periodic reports filed by the registrant pursuant to
Section 13 or Section 15(d) of the Exchange Act that are incorporated by
reference into this Registration Statement;
(2) that, for the purpose of determining any liability under
the Securities Act, each such post- effective amendment
shall be deemed to be a new registration statement
relating to the securities offered therein, and the
offering of the securities at that time shall be deemed to
be the initial bona fide offering thereof; and
(3) to remove from registration by means of a post-effective
amendment any of the securities being registered that
remain unsold at the termination of the offering.
(b) The undersigned Registrant hereby undertakes that, for purposes of
determining any liability under the Securities Act, each filing of
the Registrant's annual report pursuant to Section 13(a) or 15(d)
of the Exchange Act that is incorporated by reference in this
Registration Statement shall be deemed to be a new registration
statement relating to the securities offered therein, and the
offering of the securities at that time shall be deemed to be the
initial bona fide offering thereof.
(c) The undersigned Registrant hereby undertakes to file an application
for the purpose of determining the eligibility of the trustee to
act under subsection (a) of Section 310 of the Trust Indenture Act
("Act") in accordance with the rules and regulations prescribed by
the Commission under Section 305(b)(2) of the Act.
(d) Insofar as indemnification for liabilities arising under the
Securities Act may be permitted to directors, officers, and
controlling persons of the Registrant pursuant to the provisions
described in Item 15 above or otherwise, the Registrant has been
advised that in the opinion of the SEC such indemnification is
against public policy as expressed in the Securities Act and is,
therefore, unenforceable. In the event that a claim for
indemnification against such liabilities (other than the payment
by the Registrant of expenses incurred or paid by a director,
officer, or controlling person of the Registrant in the successful
defense of any action, suit, or proceeding) is asserted by the
director, officer, or controlling person in connection with the
securities being registered, the Registrant will, unless in the
opinion of its counsel the matter has been settled by controlling
precedent, submit to a court of appropriate jurisdiction the
question whether such indemnification by it is against public
policy as expressed in the Securities Act and will be governed by
the final adjudication of the issue.
<PAGE>
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the Registrant
certifies that it has reasonable grounds to believe that it meets all of the
requirements for filing on Form S-3 and has duly caused this Registration
Statement to be signed on its behalf by the undersigned, thereunto duly
authorized, in the City of Fort Worth, State of Texas, on May 6, 1998.
SNYDER OIL CORPORATION
By:/s/ Peter E. Lorenzen
Peter E. Lorenzen, Vice President
Pursuant to the requirements of the Securities Act of 1933, this
Registration Statement has been signed by the following persons in the
capacities and on the dates indicated. Each person whose signature appears
below hereby authorizes and appoints John C. Snyder, William G. Hargett,
Rodney L. Waller and Peter E. Lorenzen and each of them, any one of which may
act without the joinder of the other, as his attorney-in-fact to sign on his
behalf individually and in the capacity stated below all amendments and
post-effective amendments to this Registration Statement (including any
additional registration statement filed pursuant to Rule 462 of the Securities
Act of 1933 with respect to this Registration Statement) as such
attorney-in-fact may deem necessary or appropriate.
Signature Title Date
/s/ JOHN C. SNYDER Director and Chairman of the Board May 6, 1998
John C. Snyder (Principal Executive Officer)
/s/ WILLIAM G. HARGETT Director, President and Chief May 6, 1998
William G. Hargett Operating Officer
/s/ ROGER W. BRITTAIN Director May 6, 1998
Roger W. Brittain
/s/ JOHN A. HILL Director May 6, 1998
John A. Hill
/s/ WILLIAM J. JOHNSON Director May 6, 1998
William J. Johnson
/s/ B. J. KELLENBERGER Director May 6, 1998
B. J. Kellenberger
/s/HAROLD R. LOGAN, JR. Director May 6, 1998
Harold R. Logan, Jr.
/s/ JAMES E. McCORMICK Director May 6, 1998
James E. McCormick
/s/ EDWARD T. STORY Director May 6, 1998
Edward T. Story
/s/ MARK A. JACKSON Senior Vice President and Chief May 6, 1998
Mark A. Jackson Financial Officer
(Principal Financial and
Accounting Officer)
<PAGE>
<PAGE>
INDEX TO EXHIBITS
EXHIBIT
NUMBER DESCRIPTION
1.1 Form of Underwriting Agreement.*
4.1 Form of Indenture, including form of Debenture,
with respect to Debt Securities**
5.1 Opinion of Peter E. Lorenzen, Vice President - General Counsel of
the Registrant, as to legality of the Securities registered hereby.
**
12.1 Computation of Ratio of Earnings to Fixed Charges. **
12.2 Computation of Ratio of Earnings to Combined Fixed Charges and
Preferred Stock Dividends.**
23.1 Consent of Peter E. Lorenzen to use of his opinion filed as Exhibit
5.1 (set forth in his opinion filed as Exhibit 5.1).
23.2 Consent of Arthur Andersen LLP.**
23.3 Consent of Netherland, Sewell & Associates, Inc.**
24.1 Powers of attorney (set forth on the signature page hereof).
25.1 Form T-1 Statements of Eligibility and Qualifications of Trustee
under Trust Indenture Act of 1939 relating to the Indenture.*
99.1 Reserve letter from Netherland, Sewell & Associates, Inc. dated
February 3, 1998 to the Snyder Oil Corporation interest as of
December 31, 1997 (incorporated by reference from Exhibit 99.1 to
the Annual Report on Form 10-K of Snyder Oil Corporation for the
year ended December 31, 1997 (File No. 1-10509)).
- ----------
* To be filed as an exhibit to Form 8-K in reference to the specific
offering of Securities, if any, to which it relates.
** Filed herewith.
<PAGE>
EXHIBIT 4.1
SNYDER OIL CORPORATION
AND
[ ],
AS TRUSTEE
----------------------------------
INDENTURE
DATED AS OF [ ]
----------------------------------
DEBT SECURITIES
<PAGE>
<PAGE>
TABLE OF CONTENTS
RECITALS OF THE COMPANY
ARTICLE I
Definitions
Section 1.01. Certain Terms Defined
Section 1.02. Incorporation by Reference of Trust Indenture Act
Section 1.03. Rules of Construction
ARTICLE II
Debt Securities
Section 2.01. Forms Generally
Section 2.02. Form of Trustee's Certificate of Authentication
Section 2.03. Principal Amount; Issuable in Series
Section 2.04. Execution of Debt Securities
Section 2.05. Authentication and Delivery of Debt Securities
Section 2.06. Denomination of Debt Securities
Section 2.07. Registration of Transfer and Exchange
Section 2.08. Temporary Debt Securities
Section 2.09. Mutilated, Destroyed, Lost or Stolen Debt Securities
Section 2.10. Cancellation of Surrendered Debt Securities
Section 2.11. Provisions of the Indenture and Debt Securities for
the Sole Benefit of the Parties and the Holders
Section 2.12. Payment of Interest; Interest Rights Preserved
Section 2.13. Securities Denominated in Foreign Currencies
Section 2.14. Wire Transfers
Section 2.15. Securities Issuable in the Form of a Global Security
Section 2.16. Medium Term Securities
Section 2.17. Defaulted Interest
Section 2.18. Judgments
ARTICLE III
Redemption of Debt Securities
Section 3.01. Applicability of Article
Section 3.02. Tax Redemption; Special Tax Redemption
Section 3.03. Notice of Redemption; Selection of Debt Securities
Section 3.04. Payment of Debt Securities Called for Redemption
Section 3.05. Mandatory and Optional Sinking Funds
Section 3.06. Redemption of Debt Securities for Sinking Fund
ARTICLE IV
Particular Covenants of the Company
Section 4.01. Payment of Principal Of, and Premium, If Any, and
Interest On, Debt Securities
Section 4.02. Maintenance of Offices or Agencies for
Registration of Transfer, Exchange and
Payment of Debt Securities
Section 4.03. Appointment to Fill a Vacancy in the Office
of Trustee
Section 4.04. Duties of Paying Agents, Etc
Section 4.05. Statement by Officers as to Default
Section 4.06. Payment of Additional Interest
Section 4.07. Further Instruments and Acts
Section 4.08. Existence
Section 4.09. Maintenance of Properties
Section 4.10. Payment of Taxes and Other Claims
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
Section 5.02. Communications to Holders
Section 5.03. Reports by Company
Section 5.04. Reports by Trustee
Section 5.05. Record Dates for Action by Holders
ARTICLE VI
Remedies of the Trustee and Holders in Event of Default
Section 6.01. Events of Default
Section 6.02. Collection of Indebtedness by Trustee, Etc.
Section 6.03. Application of Moneys Collected by Trustee
Section 6.04. Limitation on Suits by Holders
Section 6.05. Remedies Cumulative; Delay or Omission in
Exercise of Rights Not a Waiver of Default
Section 6.06. Rights of Holders of Majority in Principal
Amount of Debt Securities to Direct Trustee
and to Waive Default
Section 6.07. Trustee to Give Notice of Defaults Known to
It, but May Withhold Such Notice in Certain
Circumstances
Section 6.08. Requirement of an Undertaking to Pay Costs in
Certain Suits under the Indenture or Against
the Trustee
ARTICLE VII
Concerning the Trustee
Section 7.01. Certain Duties and Responsibilities
Section 7.02. Certain Rights of Trustee
Section 7.03. Trustee Not Liable for Recitals in Indenture
or in Debt Securities
Section 7.04. Trustee, Paying Agent or Registrar May Own
Debt Securities
Section 7.05. Moneys Received by Trustee to Be Held in Trust
Section 7.06. Compensation and Reimbursement
Section 7.07. Right of Trustee to Rely on an Officers' Certificate
Where No Other Evidence Specifically Prescribed
Section 7.08. Separate Trustee; Replacement of Trustee
Section 7.09. Successor Trustee by Merger
Section 7.10. Eligibility; Disqualification
Section 7.11. Preferential Collection of Claims Against Company
Section 7.12. Compliance with Tax Laws
ARTICLE VIII
Concerning the Holders
Section 8.01. Evidence of Action by Holders
Section 8.02. Proof of Execution of Instruments and of
Holding of Debt Securities
Section 8.03. Who May Be Deemed Owner of Debt Securities
Section 8.04. Instruments Executed by Holders Bind Future Holders
ARTICLE IX
Supplemental Indentures
Section 9.01. Purposes for Which Supplemental Indenture
May Be Entered into Without Consent of Holders
Section 9.02. Modification of Indenture with Consent of
Holders of Debt Securities
Section 9.03. Effect of Supplemental Indentures
Section 9.04. Debt Securities May Bear Notation of Changes by
Supplemental Indentures
Section 9.05. Payment for Consent
ARTICLE X
Consolidation, Merger, Sale or Conveyance
Section 10.01. Consolidations and Mergers of the Company
Section 10.02. Rights and Duties of Successor Corporation
ARTICLE XI
Satisfaction and Discharge of
Indenture; Defeasance; Unclaimed Moneys
Section 11.01. Applicability of Article
Section 11.02. Satisfaction and Discharge of Indenture;
Defeasance
Section 11.03. Conditions of Defeasance
Section 11.04. Application of Trust Money
Section 11.05. Repayment to Company
Section 11.06. Indemnity for U.S. Government Obligations
Section 11.07. Reinstatement
ARTICLE XII
Subordination of Debt Securities
Section 12.01. Applicability of Article; Agreement to Subordinate
Section 12.02. Liquidation, Dissolution, Bankruptcy
Section 12.03. Default on Senior Indebtedness
Section 12.04. Acceleration of Payment of Debt Securities
Section 12.05. When Distribution must Be Paid over
Section 12.06. Subrogation
Section 12.07. Relative Rights
Section 12.08. Subordination May Not Be Impaired by Company
Section 12.09. Rights of Trustee and Paying Agent
Section 12.10. Distribution or Notice to Representative
Section 12.11. Article Xii Not to Prevent Defaults or
Limit Right to Accelerate
Section 12.12. Trust Moneys Not Subordinated
Section 12.13. Trustee Entitled to Rely
Section 12.14. Trustee to Effectuate Subordination
Section 12.15. Trustee Not Fiduciary for Holders of Senior
Indebtedness
Section 12.16. Reliance by Holders of Senior Indebtedness
on Subordination Provisions
<PAGE>
ARTICLE XIII
Miscellaneous Provisions
Section 13.01. Successors and Assigns of Company Bound by Indenture80
Section 13.02. Acts of Board, Committee or Officer of
Successor Company Valid80
Section 13.03. Required Notices or Demands80
Section 13.04. Indenture and Debt Securities to Be
Construed in Accordance with the Laws of the
State of New York81
Section 13.05. Officers' Certificate and Opinion of
Counsel to Be Furnished upon Application
or Demand by the Company81
Section 13.06. Payments Due on Legal Holidays82
Section 13.07. Provisions Required by Trust Indenture Act to Control82
Section 13.08. Computation of Interest on Debt Securities82
Section 13.09. Rules by Trustee, Paying Agent and Registrar82
Section 13.10. No Recourse Against Others82
Section 13.11. Severability83
Section 13.12. Effect of Headings83
Section 13.13. Indenture May Be Executed in Counterparts83
<PAGE>
<PAGE>
INDENTURE dated as of , between SNYDER OIL CORPORATION, a
corporation duly organized and existing under the laws of the State of
Delaware (hereinafter sometimes called the "Company"), and _____________, 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.
"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.
"Banks" means the Lenders, as such term is defined in the 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 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.
"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; and the amount of Indebtedness represented
by such obligation shall be the capitalized amount of such obligation
determined in accordance with GAAP; and the Stated Maturity thereof shall be
the date of the last payment of rent or any other amount due under such lease
prior to the first date upon which such lease may be terminated by the lessee
without payment of a penalty.
"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.
"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 Snyder Oil Corporation, 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" means the total of the amounts shown on the
balance sheet of the Company and its consolidated Subsidiaries, determined on
a consolidated basis in accordance with GAAP, as of the end of the most recent
fiscal quarter of the Company ending at least 45 days prior to the taking of
any action for the purpose of which the determination is being made, as (a)
the par or stated value of all outstanding Capital Stock of the Company plus
(b) paid-in capital or capital surplus relating to such Capital Stock plus (c)
any retained earnings or earned surplus less (i) any accumulated deficit and
(ii) any amounts attributable to Disqualified Stock.
"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 Agreement" means the Fifth Restated Credit Agreement dated as of
June 30, 1994, among the Company as Borrower, and NationsBank of Texas, N.A.
as Agent, and the Lenders party 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.
"Disqualified Stock" of a Person means Redeemable Capital 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 Debt Securities.
"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 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, as amended.
"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 the opinions and
pronouncements of the Accounting Principles Board of the American Institute of
Certified Public Accountants and statements and pronouncements of the
Financial Accounting Standards Board or in such other statements by such other
entity as approved by a significant segment of the accounting profession. All
ratios and computations based on GAAP contained in this Indenture shall be
computed in conformity with GAAP consistently applied.
"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.
"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.
"Indebtedness" means, with respect to any Person on any date of
determination (without duplication),
(a) the principal of and premium (if any) in respect of indebtedness
of such Person for borrowed money;
(b) the principal of and premium (if any) in respect of obligations
of such Person evidenced by bonds, debentures, notes or other similar
instruments;
(c) all Capitalized Lease Obligations of such Person;
(d) all obligations of such Person to pay the deferred and unpaid
purchase price of property or services (except Trade Payables);
(e) all obligations of such Person in respect of letters of credit,
banker's acceptances or other similar instruments or credit transactions
(including reimbursement obligations with respect thereto), other than
obligations with respect to letters of credit securing obligations (other
than obligations described in (a) through (d) above) entered into in the
ordinary course of business of such Person to the extent such letters of
credit are not drawn upon or, if and to the extent drawn upon, such
drawing is reimbursed no later than the third business day following
receipt by such Person of a demand for reimbursement following payment on
the letter of credit;
(f) the amount of all obligations of such Person with respect to the
redemption, repayment or other repurchase of any Disqualified Stock or,
with respect to any Subsidiary of the Company, any Preferred Stock (but
excluding, in each case, any accrued dividends);
(g) all Indebtedness of other Persons secured by a Lien on any asset
of such Person, whether or not such Indebtedness is assumed by such
Person; provided, however, that the amount of such Indebtedness shall be
the lesser of (i) the fair market value of such asset at such date of
determination and (ii) the amount of such Indebtedness of such other
Persons;
(h) all Indebtedness of other Persons to the extent Guaranteed by
such Person; and
(i) to the extent not otherwise included in this definition,
obligations in respect of Hedging Obligations.
For purposes of this definition, the maximum fixed redemption, repayment or
repurchase price of any Disqualified Stock or Preferred Stock that does not
have a fixed redemption, repayment or repurchase price shall be calculated in
accordance with the terms of such Stock as if such Stock were redeemed, repaid
or repurchased on any date on which Indebtedness shall be required to be
determined pursuant to this Indenture; provided, however, that if such Stock
is not then permitted to be redeemed, repaid or repurchased, the redemption,
repayment or repurchase price shall be the book value of such Stock as
reflected in the most recent financial statements of such Person. The amount
of Indebtedness of any Person at any date shall be the outstanding balance at
such date of all unconditional obligations as described above and the maximum
liability, upon the occurrence of the contingency giving rise to the
obligation, of any contingent obligations at such date.
"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.
"Insolvency or Liquidation Proceeding" mean, with respect to any
Person, (a) an insolvency or bankruptcy case or proceeding, or any
receivership, liquidation, reorganization or similar case or proceeding in
connection therewith, relative to such Person or its creditors, as such or its
assets or (b) any liquidation, dissolution or other winding-up proceeding of
such Person, whether voluntary or involuntary and whether or not involving
insolvency or bankruptcy or (c) any assignment for the benefit of creditors or
any other marshaling of assets and liabilities of such Person.
"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
or charge of any kind (including any conditional sale or other title retention
agreement or lease in the nature thereof).
"Non-Payment Event of Default" means any event, circumstance, condition
or state of facts (other than a Payment Event of Default) the occurrence or
existence of which permits one or more holders of Specified Senior
Indebtedness (or a trustee or other representative of the holders thereof) to
declare such Specified Senior Indebtedness immediately due and payable prior
to the date on which such indebtedness would otherwise become due and payable.
"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.
"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 cancellation;
(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 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 the Trustee 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.
"Paying Agent" means any Person, which may include the Company,
authorized by the Company to pay the principal of (and premium, if any) or
interest on any one or more series of Securities on behalf of the Company.
"Payment Event of Default" means any default in the payment of principal
of or premium, if any, or interest on or fees with respect to Specified Senior
Indebtedness beyond any applicable grace period with respect thereto.
"Permitted Junior Securities" means any equity securities or
subordinated debt securities of the Company or any successor obligor with
respect to the Senior Indebtedness provided for by a plan of reorganization or
readjustment that, in the case of any such subordinated debt securities, are
subordinated in right of payment to all Senior Indebtedness that may at the
time be outstanding to substantially the same degree as, or to a greater
extent than, the Subordinated Debt Securities are so subordinated as provided
in Article XII.
"Person" means any individual, corporation, limited liability company,
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 corporation,
means Capital Stock of any class or classes (however designated) which is
preferred as to the payment of dividends, or as to the distribution of assets
upon any voluntary or involuntary liquidation or dissolution of such
corporation, over shares of Capital Stock of any other class of such
corporation.
"Property" means, with respect to any Person, any interest of such
Person in any kind of property or asset, whether real, personal or mixed, or
tangible or intangible, including, without limitation, Capital Stock in any
other Person.
"Redeemable Capital Stock" means any Capital Stock that, either by its
terms, by the term of any security into which it is convertible or
exchangeable or by contract or otherwise, is, or upon the happening of an
event or passage of time would be, required to be redeemed prior to the final
Stated Maturity of the Subordinated Debt Securities or is redeemable at the
option of the holder thereof at any time prior to such final Stated Maturity,
or is convertible into or exchangeable for debt securities at any time prior
to such final Stated Maturity.
"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 [NAME OF TRUSTEE'S INSTITUTIONAL
TRUST GROUP] of the Trustee, including any Vice President, any Second Vice
President, 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.
"Secured Indebtedness" means any Indebtedness of the Company secured by
a Lien.
"Securities Act" means the Securities Act of 1933, as amended.
"Senior Indebtedness" means the principal of (and premium, if any, on)
and interest on (including interest accruing after the filing of a petition
initiating any proceeding pursuant to any bankruptcy law) and other amounts
due on or in connection with (including any fees, premiums, expenses,
including costs of collection, and indemnities) any Indebtedness of the
Company, whether outstanding on the date of this Indenture or thereafter
created, incurred or assumed, unless, in the case of any particular
Indebtedness, the instrument creating or evidencing the same or pursuant to
which the same is outstanding expressly provides that such Indebtedness will
be pari passu with or expressly subordinated in right of payment to the
Subordinated Debt Securities. Notwithstanding the foregoing, "Senior
Indebtedness" will not include (i) Indebtedness evidenced by the Subordinated
Debt Securities; (ii) Indebtedness of the Company that is pari passu with the
Subordinated Debt Securities or is expressly subordinated in right of payment
to any other Indebtedness of the Company, (iii) Indebtedness that is
represented by Redeemable Capital Stock of the Company, (iv) Indebtedness of
the Company to any Subsidiary of the Company or any other Affiliate of the
Company or any subsidiary of such Affiliate and (v) Indebtedness which when
incurred and without regard to any election under Section 1111(b) of the
Federal Bankruptcy Code is without recourse to the Company.
"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.
"Specified Senior Indebtedness" means (i) all Senior Indebtedness of the
Company in respect of the Credit Agreement and any renewals, amendments,
extensions, supplements, modifications, deferrals, refinancings, or
replacements (each, for purposes of this definition, a "refinancing") thereof
by the Company, including any successive refinancings thereof by the Company
and (ii) any other Senior Indebtedness and any refinancings thereof by the
Company having a principal amount of at least $10,000,000 as of the date of
determination and provided that the agreements, indentures or other instrument
evidencing such Senior Indebtedness or pursuant to which such Senior
Indebtedness was issued specifically designates such Senior Indebtedness as
"Specified Senior Indebtedness" for purposes 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 any corporation, association,
partnership or other business entity 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 (a) such Person, (b) such Person and one or more Subsidiaries
of such Person or (c) one or more Subsidiaries of such Person.
"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 [TRUSTEE] 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.
"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 securities that are (a) direct
obligations of the United States of America for the payment of which its full
faith and credit is pledged or (b) obligations of a Person controlled or
supervised by and acting as an agency or instrumentality of the United States
of America, the payment of which is unconditionally guaranteed as a full faith
and credit obligation by the United States of America, which, in either case,
are not callable or redeemable at the option of the issuer thereof, or
beneficial interests in a trust the corpus of which consists exclusively of
money or such obligations or a combination thereof.
"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.
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.
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.
[TRUSTEE],
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);
(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;
(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;
(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 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
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.
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.
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 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.
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 cancellation 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.
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 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. Cancellation 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 cancellation by it, or if surrendered to the Trustee, shall 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 cancellation. 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 cancellation.
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 cancellation 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.
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 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 and until it is exchanged in whole or in part
for the individual Debt Securities represented hereby, this Global Security
may not be transferred except as a whole by the Depositary to a nominee of the
Depositary or by a nominee of the Depositary to the Depositary or another
nominee of the Depositary or by the Depositary or any such nominee to a
successor Depositary or a nominee of such successor Depositary', 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 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 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 Registered Holder thereof on the relevant record
date by virtue of having been such Registered Holder, and such Defaulted
Interest 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 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 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.
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
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 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 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, 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, in such manner 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 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.
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.
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 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,
(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 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 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, 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, 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, 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, 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 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, 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 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 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.
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 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 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.
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 whether or not such payment shall be prohibited by
Article XII, if applicable, and continuance of such default for a period
of 60 days; or
(d) failure on the part of the Company duly to observe or perform
any 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
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 90 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
(e) Indebtedness 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 $10,000,000 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
(f) the Company 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 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 or fail generally 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
(g) the entry of an order or decree by a court having competent
jurisdiction in the premises for (i) relief in respect of the Company or
a substantial part of any of its 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 for a substantial
part of any of its property or (iii) the winding-up or liquidation of 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
(h) any judgment or decree for the payment of money in excess of
$10,000,000 or its Dollar Equivalent at the time is entered against 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
(i) 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), (h) or (i) 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 (f) or (g) 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 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 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), (h) or (i), 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
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
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 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 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, 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;
(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;
(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.
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 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, 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
(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 for, and to hold it harmless
against, any loss, liability 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 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(f) or (g) 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 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 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.
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 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, any Paying Agent and any Registrar may deem the
Holder of a 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 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 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;
(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 the Debt Securities or to
secure 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; and
(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.
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, make any
change in Article XII that adversely affects the rights of any Holder under
Article XII; (g) release any security that may have been granted in respect of
the Debt Securities; (h) make any change in Section 6.06 or this Section 9.02;
(i) change any obligation of the Company to pay additional interest pursuant
to Section 4.06; or (j) 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 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, 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 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
cancellation all Debt Securities of any series 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 cancellation shall have become due and payable,
or are by their terms to become due and payable within one year or are to be
called for redemption within one year under arrangements satisfactory to the
Trustee for the giving of notice of redemption, and the Company shall deposit
with the Trustee 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
cancellation, 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,
(i) 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 (ii) its obligations with respect to the Debt
Securities of such series under clause (c) of Section 10.01 and the operation
of Sections 6.01(d), (e), (h) and (i) ("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), (h) and (i) (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.
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
money 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 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(f) or (g) 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
(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 2.03, as
subordinated to Senior Indebtedness. The Company covenants and agrees, and
each Holder of a Subordinated Debt Security, by his acceptance thereof,
likewise covenants and agrees, for the benefit of the holders, from time to
time, of Senior Indebtedness, that, to the extent and in the manner
hereinafter set forth in this Article XII, the Indebtedness represented by the
Subordinated Debt Securities and the payment of the principal of (and premium,
if any, on) and interest on, each and all of the Subordinated Debt Securities
are hereby expressly made subordinate and subject in right of payment as
provided in this Article XII to the prior payment in full of all Senior
Indebtedness, whether outstanding on the date of the issuance of Subordinated
Debt Securities of a particular series or thereafter created, incurred,
assumed or guaranteed; provided, however, that the Subordinated Debt
Securities, the Indebtedness represented thereby and the payment of the
principal of (and premium, if any, on) and interest on the Subordinated Debt
Securities in all respects shall rank equally with, or prior to, all existing
and future unsecured Indebtedness (including, without limitation, Indebtedness
hereunder) of the Company that is subordinated to Senior Indebtedness.
This Article XII shall constitute a continuing offer to all Persons
who, in reliance upon such provisions, become holders of, or continue to hold,
Senior Indebtedness, and such provisions are made for the benefit of the
holders of Senior Indebtedness, and such holders are made obligees hereunder
and any one or more of them may enforce such provisions.
Section 12.02. Payment over of Proceeds upon Dissolution, etc.
Upon any distribution of Properties of the Company or payment on behalf
of the Company with respect to the Subordinated Debt Securities in the event
of any Insolvency or Liquidation Proceeding with respect to the Company:
(i) the holders of Senior Indebtedness shall be entitled to
receive payment in full of such Senior Indebtedness, or provision must be
made for such payment, before the Holders of the Subordinated Debt
Securities are entitled to receive any direct or indirect payment or
distribution of any kind or character, whether in cash, property or
securities (other than Permitted Junior Securities or from any defeasance
trust created pursuant to Article XI hereto) on account of principal of
(or premium, if any, on) or interest on the Subordinated Debt Securities
or on account of the purchase or redemption or other acquisition of
Subordinated Debt Securities; and
(ii) any direct or indirect payment or distribution of Properties
of the Company of any kind or character, whether in cash, property or
securities (other than a payment or distribution in the form of Permitted
Junior Securities or from any defeasance trust created pursuant to
Article XI hereto), by set-off or otherwise, to which the Holders of
Subordinated Debt Securities or the Trustee, on behalf of the Holders of
Subordinated Debt Securities, would be entitled but for the provisions of
this Article XII shall be paid by the Company or by any liquidating
trustee or agent or other Person making such payment or distribution
whether a trustee in bankruptcy, a receiver or liquidating trustee or
otherwise, directly to the holders of Senior Indebtedness or their
representative or representatives or to the trustee or trustees under any
indenture under which any instruments evidencing any of such Senior
Indebtedness may have been issued, ratably according to the aggregate
amounts remaining unpaid on account of the Senior Indebtedness held or
represented by each, to the extent necessary to make payment in full of
all Senior Indebtedness after giving effect to any concurrent payment or
distribution to the holders of such Senior Indebtedness; and
(iii) in the event that, notwithstanding the foregoing provisions
of this Section 12.02, the Trustee or the Holder of any Subordinated Debt
Security shall have received any payment or distribution of Properties of
the Company of any kind or character, whether in cash, property or
securities, by set-off or otherwise, in respect of principal of (and
premium, if any, on) or interest on the Subordinated Debt Securities
before all Senior Indebtedness is paid or provided for in full, then and
in such event such payment or distribution (other than a payment or
distribution in the form of Permitted Junior Securities or from any
defeasance trust created pursuant to Article XI hereto) shall be paid
over or delivered forthwith to the holders of all Senior Indebtedness
remaining unpaid, or their representatives, to the extent necessary to
pay all Senior Indebtedness in full, after giving effect to any
concurrent payment or distribution to or for the holders of Senior
Indebtedness.
The consolidation of the Company with, or the merger of the Company
into, another Person or the liquidation or dissolution of the Company
following the sale, assignment, conveyance, transfer, lease or other
disposition of all or substantially all its Properties to another Person or
group of Affiliated Persons pursuant to, and in compliance with, the terms and
conditions set forth in Article X hereof shall not be deemed an Insolvency or
Liquidation Proceeding (requiring the repayment of all Senior Indebtedness in
full as a prerequisite to any payments being made to the Holders of
Subordinated Debt Securities) for the purposes of this Section 12.02.
Section 12.03. Suspension of Payment When Senior Indebtedness in
Default.
(i) Unless Section 12.02 hereof shall be applicable, upon (a) the
occurrence of a Payment Event of Default and (b) receipt by the Trustee of
written notice of such occurrence, then no payment or distribution of any
Properties of the Company of any kind or character (other than Permitted
Junior Securities or from any defeasance trust created pursuant to Article XI
hereto) shall be made by the Company on account of principal of (or premium,
if any, on) or interest on the Subordinated Debt Securities or on account of
the purchase or redemption or other acquisition of Subordinated Debt
Securities unless and until such Payment Event of Default shall have been
cured or waived in writing or shall have ceased to exist or such Senior
Indebtedness shall have been paid in full or otherwise discharged, after which
the Company shall resume making any and all required payments in respect of
the Subordinated Debt Securities, including any missed payments.
(ii) Unless Section 12.02 hereof shall be applicable, upon (a) the
occurrence of a Non-Payment Event of Default and (b) receipt by the Trustee
and the Company of written notice of such occurrence from one or more of the
holders of Specified Senior Indebtedness (or their representative), then no
payment or distribution of any Properties of the Company of any kind or
character (other than Permitted Junior Securities or from any defeasance trust
created pursuant to Article XI hereto) shall be made by the Company on account
of any principal of (or premium, if any, on) or interest on the Subordinated
Debt Securities or on account of the purchase or redemption or other
acquisition of Subordinated Debt Securities for the period specified below
(the "Payment Blockage Period"). The Payment Blockage Period will commence
upon the earlier of the dates of receipt by the Trustee or the Company of such
notice (the "Payment Blockage Notice") from one or more of the holders of
Specified Senior Indebtedness (or their representative) and shall end on the
earliest of (a) 179 days thereafter, (b) the date, as set forth in a written
notice from the holders of the Specified Senior Indebtedness (or their
representative) to the Company or the Trustee, on which such Non-Payment Event
of Default is cured, waived in writing or ceases to exist or such Specified
Senior Indebtedness is discharged or (c) the date on which such Payment
Blockage Period shall have been terminated by written notice to the Company or
the Trustee from one or more of the holders (or their representative)
initiating such Payment Blockage Period, after which the Company will resume
(unless otherwise prohibited pursuant to the immediately preceding paragraph)
making any and all required payments in respect of the Subordinated Debt
Securities, including any missed payments. In any event, not more than one
Payment Blockage Period may be commenced during any period of 360 consecutive
days. No Non-Payment Event of Default that existed or was continuing on the
date of delivery of any Payment Blockage Notice to the Trustee will be, or can
be, made the basis for the commencement of a subsequent Payment Blockage
Period.
(iii) In the event that, notwithstanding the foregoing, the Company
shall make any payment to the Trustee or the Holder of any Subordinated Debt
Security prohibited by the foregoing provisions of this Section 12.03, then
and in such event such payment shall be paid over and delivered forthwith to
the Company. In the event that the Company shall make any payment in respect
of the Subordinated Debt Securities to the Trustee and the Trustee shall
receive written notice of a Payment Event of Default or a Non-Payment Event of
Default from one or more of the holders of Specified Senior Indebtedness (or
their representative) prior to making any payment to Holders in respect of the
Subordinated Debt Securities and prior to 11:00 a.m., Eastern time, on the
date which is two Business Days prior to the date upon which by the terms
hereof any money may become payable for any purpose, such payments shall be
paid over by the Trustee and delivered forthwith to the Company.
Section 12.04. Payment Permitted If No Default.
Nothing contained in this Article XII or elsewhere in this Indenture or
in any of the Subordinated Debt Securities shall prevent the Company, at any
time except during the pendency of any Insolvency or Liquidation Proceeding
referred to in Section 12.02 hereof or under the conditions described in
Section 12.03 hereof, from making payments at any time of principal of (and
premium, if any, on) or interest on the Subordinated Debt Securities.
Section 12.05. Subrogation to Rights of Holders of Senior Indebtedness.
After the payment in full of all Senior Indebtedness, the Holders of
the Subordinated Debt Securities shall be subrogated (equally and ratably with
the holders of all indebtedness of the Company which by its express terms is
subordinated to Senior Indebtedness to substantially the same extent as the
Subordinated Debt Securities are so subordinated and which is entitled to like
rights of subrogation as a result of the payments made to the holders of
Senior Indebtedness) to the rights of the holders of Senior Indebtedness to
receive payments and distributions of cash, property and securities applicable
to Senior Indebtedness until all amounts owing on the Subordinated Debt
Securities shall be paid in full. For purposes of such subrogation, no
payment or distributions to the holders of Senior Indebtedness by or on behalf
of the Company or by or on behalf of the Holders of Subordinated Debt
Securities by virtue of this Article XII which otherwise would have been made
to the Holders of Subordinated Debt Securities shall, as between the Company,
its creditors other than holders of Senior Indebtedness, and the Holders of
the Subordinated Debt Securities, be decreed to be a payment or distribution
by the Company to or on account of the Senior Indebtedness.
Section 12.06. Provisions Solely to Define Relative Rights.
The provisions of this Article XII are, and are intended solely, for
the purpose of defining the relative rights of the Holders of the Subordinated
Debt Securities on the one hand and the holders of Senior Indebtedness on the
other hand. Nothing contained in this Article XII or elsewhere in this
Indenture or in the Subordinated Debt Securities is intended to or shall (i)
impair, as between the Company and the Holders of the Subordinated Debt
Securities, the obligation of the Company, which is absolute and
unconditional, to pay to the Holders of the Subordinated Debt Securities the
principal of (and premium, if any, on) and interest on the Subordinated Debt
Securities as and when the same shall become due and payable in accordance
with their terms, or (ii) affect the relative rights against the Company of
the Holders of the Subordinated Debt Securities and creditors of the Company
other than the holders of Senior Indebtedness, or (iii) prevent the Trustee or
the Holder of any Subordinated Debt Security from exercising all remedies
otherwise permitted by applicable law upon default under this Indenture,
subject to the rights, if any, under this Article XII of the holders of Senior
Indebtedness.
Section 12.07. Trustee to Effectuate Subordination.
Each Holder of a Subordinated Debt Security by his acceptance thereof
authorizes and directs the Trustee on his behalf to take such action as may be
necessary or appropriate to effectuate the subordination provided in this
Article XII and appoints the Trustee as his attorney-in-fact for any and all
such purposes, including, in the event of any Insolvency or Liquidation
Proceeding with respect to the Company, the immediate filing of a claim for
the unpaid balance of his Subordinated Debt Securities pursuant to this
Indenture in the form required in said proceedings and the causing of said
claim to be approved.
Section 12.08. No Waiver of Subordination Provision.
(i) No right of any present or future holder of any Senior
Indebtedness to enforce subordination as herein provided shall at any time in
any way be prejudiced or impaired by any act or failure to act on the part of
the Company or by any act or failure to act, in good faith, by any such
holder, or by any non-compliance by the Company with the terms, provisions and
covenants of this Indenture, regardless of any knowledge thereof any such
holder may have or be otherwise charged with.
(ii) Without in any way limiting the generality of paragraph (i) of
this Section 12.08, the holders of any Senior Indebtedness, in accordance with
the terms of the instrument or agreement evidencing their Senior Indebtedness,
may, at any time and from time to time, without the consent of or notice to
the Trustee or the Holders of the Subordinated Debt Securities, without
incurring responsibility to the Holders of the Subordinated Debt Securities
and without impairing or releasing the subordination or other benefits
provided in this Article XII, or the obligations hereunder of the Holders of
the Subordinated Debt Securities to the holders of Senior Indebtedness, do any
one or more of the following: (a) change the manner, place or terms of
payment or extend the time of payment of, or renew, exchange, amend, increase
or alter, Senior Indebtedness or the terms of any instrument evidencing the
same or any agreement under which Senior Indebtedness is outstanding or any
liability of any obligor thereon (unless such change, extension, amendment,
increase or other alteration results in such Indebtedness no longer being
Senior Indebtedness as defined in this Indenture), (b) sell, exchange,
release or otherwise deal with any Property pledged, mortgaged or otherwise
securing Senior Indebtedness, (c) settle or compromise any Senior Indebtedness
or any liability of any obligor thereon or release any Person liable in any
manner for the collection of Senior Indebtedness, and (d) exercise or refrain
from exercising any rights against the Company and any other Person.
Section 12.09. Notice to Trustee.
(i) The Company shall give prompt written notice to the Trustee of
any fact known to the Company which would prohibit the making of any payment
to or by the Trustee in respect of the Subordinated Debt Securities.
Notwithstanding the provisions of this Article XII or any other provision of
this Indenture, the Trustee shall not be charged with knowledge of the
existence of any facts which would prohibit the making of any payment to or by
the Trustee in respect of the Subordinated Debt Securities, unless and until
the Trustee shall have received written notice thereof from the Company or one
or more of the holders of Senior Indebtedness (or their representative),
with respect to a Payment Event of Default, or one or more of the holders of
Specified Senior Indebtedness (or their representatives) with respect to a
Non-Payment Event of Default, or from any trustee, fiduciary or agent
therefor; and, prior to the receipt of any such written notice, the Trustee,
subject to Trust Indenture Act Sections 315(a) through 315(d), shall be
entitled in all respects to assume that no such facts exist; provided,
however, that, if the Trustee shall not have received the notice provided for
in this Section 12.09 prior to 11:00 a.m., Eastern time, on the date which is
two Business Days prior to the date upon which by the terms hereof any money
may become payable for any purpose (including, without limitation, the payment
of the principal of (and premium, if any, on) or interest on any Subordinated
Debt Security), then, anything herein contained to the contrary
notwithstanding, the Trustee shall have full power and authority to receive
such money and to apply the same to the purpose for which such money was
received and shall not be affected by any notice to the contrary which may be
received by it on or after 11:00 a.m. Eastern time two Business Days prior to
such payment date.
(ii) Subject to Trust Indenture Act Sections 315(a) through 315(d),
the Trustee shall be entitled to rely on the delivery to it of a written
notice by a Person representing himself to be a holder of Senior Indebtedness
(or a trustee, fiduciary or agent therefor) to establish that such notice has
been given by a holder of Senior Indebtedness (or a trustee, fiduciary or
agent therefor). In the event that the Trustee determines in good faith that
further evidence is required with respect to the right of any Person as a
holder of Senior Indebtedness to participate in any payment or distribution
pursuant to this Article XII, the Trustee may request such Person to furnish
evidence to the reasonable satisfaction of the Trustee or the Holders of
Subordinated Debt Securities, for the purpose of ascertaining the Persons
entitled to participate in such payment or distribution, the holders of 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.
Section 12.10. Reliance of Judicial Order or Certificate of Liquidating
Agent Bank.
Upon any payment or distribution of assets of the Company referred to
in this Article XII, the Trustee, subject to Trust Indenture Act Sections
315(a) through 315(d), and the Holders of the Subordinated Debt Securities
shall be entitled to rely upon any order or decree entered by any court of
competent jurisdiction in which such Insolvency or Liquidation Proceeding is
pending, or a certificate of the trustee in bankruptcy, receiver, liquidating
trustee, custodian, assignee for the benefit of creditors, agent or other
Person making such payment or distribution, delivered to the Trustee or to the
Holders of Subordinated Debt Securities, for the purpose of ascertaining the
Persons entitled to participate in such payment or distribution, the holders
of 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.
Section 12.11. Rights of Trustee as a Holder of Senior Indebtedness;
Preservation of Trustee's Rights.
The Trustee in its individual capacity shall be entitled to all the
rights set forth in this Article 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 this Indenture 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
hereof.
Section 12.12. Article Applicable to Paying Agents.
In case at any time a Paying Agent other than the Trustee shall have
been appointed by the Company and be then acting hereunder, the term "Trustee"
as used in this Article XII shall in such case (unless the context otherwise
requires) be construed as extending to and including such Paying Agent within
its meaning as fully for all intents and purposes as if such Paying Agent were
named in this Article XII in addition to or in place of the Trustee; provided,
however, that Section 12.11 hereof shall not apply to the Company or any
Affiliate of the Company if it or such Affiliate acts as Paying Agent.
Section 12.13. No Suspension of Remedies.
Nothing contained in this Article XII shall limit the right of the
Trustee or the Holders of Subordinated Debt Securities to take any action to
accelerate the maturity of the Subordinated Debt Securities pursuant to
Article VI hereof or to pursue any rights or remedies hereunder or under
applicable law, except as provided in Article VI hereof.
Section 12.14. Trust Money Not Subordinated.
Notwithstanding anything contained herein to the contrary, payments
from cash or the proceeds of U.S. Government Obligations held in trust under
Article XI hereof by the Trustee (or other qualifying trustee) and which were
deposited in accordance with the terms of Article XI hereof and not in
violation of Section 12.03 hereof for the payment of principal of (and
premium, if any, on) and interest on the Subordinated 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, and none of the Holders of
Subordinated Debt Securities shall be obligated to pay over any such amount to
the Company or any holder of Senior Indebtedness or any other creditor of the
Company.
<PAGE>
<PAGE>
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: Snyder Oil Corporation, 777 Main Street, Fort Worth,
Texas 76102, 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 [TRUSTEE ADDRESS]. 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.
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.
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.
The Trustee hereby accepts the trusts in this Indenture upon the terms
and conditions herein set forth.
<PAGE>
<PAGE>
IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be
duly signed as of the date first written above.
SNYDER OIL CORPORATION
By:
Name:
Title:
[TRUSTEE],
By:
Name:
Title:
<PAGE>
EXHIBIT 5.1
May 6, 1998
Snyder Oil Corporation
777 Main Street
Fort Worth, Texas 76102
Re: Registration Statements on Form S-3
Debt Securities
Preferred Stock, par value $.01 per share
Depositary Shares
Common Stock, par value $.01 per share
Warrants
Ladies and Gentlemen:
As Vice President General Counsel of Snyder Oil Corporation, a Delaware
corporation (the "Company"), I have acted as counsel to the Company in
connection with the preparation and filing of the Company's Registration
Statement on Form S-3 (the "Registration Statement") filed with the
Securities and Exchange Commission under theSecurities Act of 1933, as
amended (the "Securities Act"), relating to the Company's offer and sale
from time to time pursuant to Rule 415 under theSecurities Act of the
following securities for an aggregate initial offering price not to exceed
$300,000,000: (i) debt securities of the Company ("Debt Securities"); (ii)
shares of preferred stock, par value $.01 per share, of the Company
("Preferred Stock"); (iii) depositary shares representing fractional
interests in Preferred Stock ("Depositary Shares"); (iv) shares of common
stock, par value $.01 per share, of the Company ("Common Stock"); and (v)
warrants to purchase Debt Securities, Preferred Stock or Common Stock (the
"Warrants", and, together with the Debt Securities, Preferred Stock, the
Depositary Shares and Common Stock, the "Securities"). Capitalized terms used
and not defined herein have the meanings respectively ascribed to them in the
Prospectus or Prospectus Supplement (collectively, the "Prospectus") that are
included as part of the Registration Statement.
In connection with the opinions expressed below, I have examined such
documents, corporate records and other writings as I have deemed necessary to
enable me to express the opinions set forth herein. In such examination I
have assumed the genuineness of all original documents and the conformity to
original documents of all copies submitted to me.
Based on the foregoing, it is my opinion that:
1. With respect to Debt Securities to be issued under the Indenture,
when (A) the Indenture has been duly authorized and validly executed and
delivered by the Company to the trustee, (B) the Indenture has been duly
qualified under the Trust Indenture Act of 1939, as amended, (C) the Board has
taken all necessary corporate action to approve the issuance and terms of such
Debt Securities, the terms of the offering thereof and related matters, and
(D) such Debt Securities have been duly executed, authenticated, issued and
delivered in accordance with the provisions of the Indenture and the
applicable definitive purchase, underwriting or similar agreement approved by
the Board upon payment of the consideration therefor provided for therein,
such Debt Securities will be legally issued and will constitute valid and
binding obligations of the Company, enforceable against the Company in
accordance with their terms, except as such enforcement is subject to any
applicable bankruptcy, insolvency, reorganization or other law relating to or
affecting creditors' rights generally and general principles of equity
(regardless of whether such enforceability is considered in a proceeding in
equity or at law).
2. With respect to shares of Preferred Stock, when both (A) the Board
has taken all necessary corporate action to approve the issuance and terms of
the shares of Preferred Stock, the terms of the offering thereof, and related
matters, including the adoption of a Certificate of Designation relating to
such Preferred Stock (a "Certificate") and the filing of the Certificate with
the Secretary of State of the State of Delaware, and (B) certificates
representing the shares of Preferred Stock have been duly executed,
countersigned, registered and delivered either (i) in accordance with the
applicable definitive purchase, underwriting or similar agreement approved by
the Board upon payment of the consideration therefor (not less than the par
value of the Preferred Stock) provided for therein or (ii) upon conversion or
exercise of any other Security, in accordance with the terms of such Security
or the instrument governing such Security providing for such conversion or
exercise as approved by the Board, for the consideration approved by the Board
(not less than the par value of the Preferred Stock), then the shares of
Preferred Stock will be legally issued, fully paid and non assessable.
3. With respect to Depositary Shares, when (A) the Board has taken all
necessary corporate action to approve the issuance and terms of the Depositary
Shares, the terms of the offering thereof, and related matters, including the
adoption of a Certificate relating to the Preferred Stock underlying such
Depositary Shares and the filing of the Certificate with the Secretary of
State of the State of Delaware, (B) the Depositary Agreement or Agreements
relating to the Depositary Shares and the related Depositary Receipts have
been duly authorized and validly executed and delivered by the Company and the
Depositary appointed by the Company, (C) the shares of Preferred Stock
underlying such Depositary Shares have been deposited with a bank or trust
company (which meets the requirements for the Depositary set forth in the
Registration Statement) under the applicable Depositary Agreements, and (D)
the Depositary Receipts representing the Depositary Shares have been duly
executed, countersigned, registered and delivered in accordance with the
appropriate Depositary Agreement and the applicable definitive purchase,
underwriting or similar agreements approved by the Board upon payment of the
consideration therefore provided for therein, the Depositary Shares will be
legally issued.
4. With respect to shares of Common Stock, when both (A) the Board of
Directors of the Company or, to the extent permitted by Section 141(c) of the
General Corporation Law of the State of Delaware, a duly constituted and
acting committee thereof (such Board of Directors or committee being
hereinafter referred to as the "Board") has taken all necessary corporate
action to approve the issuance of and the terms of the offering of the shares
of Common Stock and related matters and (B) certificates representing the
shares of Common Stock have been duly executed, countersigned, registered and
delivered either (i) in accordance with the applicable definitive purchase,
underwriting or similar agreement approved by the Board upon payment of the
consideration therefor (not less than the par value of the Common Stock)
provided for therein) or (ii) upon conversion or exercise of any other
Security, in accordance with the terms of such Security or the instrument
governing such Security providing for such conversion or exercise as approved
by the Board, for the consideration approved by the Board (not less than the
par value of the Common Stock), then the shares of Common Stock will be
legally issued, fully paid and nonassessable.
5. With respect to the Warrants, when (A) the Board has taken all
necessary corporate action to approve the creation of and the issuance and
terms of the Warrants, the terms of the offering thereof, and related matters,
(B) the warrant agreement or agreements relating to the Warrants have been
duly authorized and validly executed and delivered by the Company and the
warrant agent appointed by the Company, and (C) the Warrants or certificates
representing the Warrants have been duly executed, countersigned, registered
and delivered in accordance with the appropriate warrant agreement or
agreements and the applicable definitive purchase, underwriting or similar
agreement approved by the Board upon payment of the consideration therefor
provided for therein, the Warrants will be legally issued.
This opinion is limited to the substantive laws of the States of Texas
and New York, the General Corporation Law of the State of Delaware and the
applicable federal laws of the United States. I express no opinion as to any
matter other than as expressly set forth above, and no opinion on any other
matter may be inferred herefrom. This opinion is given as of the date hereof,
and I undertake no, and hereby disclaim any, obligation to advise you of any
change in any matter set forth herein.
I hereby consent to the filing of this opinion as an exhibit to the
Registration Statement and to the use of my name under the caption "Legal
Matters" in the Prospectus and any Prospectus Supplement. In giving such
consent, I do not admit that I come within the category of persons whose
consent is required by Section 7 of the Act.
Very truly yours,
/s/ Peter E. Lorenzen
Peter E. Lorenzen,
Vice President General Counsel
<PAGE>
EXHIBIT 12.1
SNYDER OIL CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Unaudited)
-----------------------------------------------------------
1997 1996 1995 1994 1993
-----------------------------------------------------------
(In thousands, except share data)
Income (loss)
before taxes,
minority
interest and
extraordinary
item $57,440 $74,701 ($40,604) $13,510 $22,538
Interest
expense 25,472 23,587 21,679 10,337 5,315
------- -------- --------- -------- ------
Earnings before
taxes, minority
interest,
extraordinary
item and
interest
expense $82,912 $98,288 ($18,925) $23,847
$27,853 ------- ------- --------- ------- ---
- ---
Interest
expense $25,472 $23,587 $21,679 $10,337 $ 5,315
Preferred
stock
dividends of
majority owned
subsidiary 1,474 1,520 - - -
------ ------- ------- -------- ------
Total fixed
charges $26,946 $25,107 $21,679 $10,337 $ 5,315
------- ------- ------- ------- ------
Ratio of
earnings
to fixed
charges 3.08 3.91 N/A(1) 2.31 5.24
------- ------- -------- ------- -------
(1) Earnings were inadequate to cover fixed charges by $40.6 million.
<PAGE>
EXHIBIT 12.2
SNYDER OIL CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO
COMBINED FIXED CHARGES AND PREFERRED DIVIDENDS
(Unaudited)
------------------------------------------------------------
1997 1996 1995 1994 1993
------------------------------------------------------------
(In thousands, except share data)
Income (loss)
before taxes,
minority
interest and
extraordinary
item $57,440 $74,701 ($40,604) $13,510 $22,538
Interest
expense 25,472 23,587 21,679 10,337 5,315
------- ------- -------- -------- ------
Earnings before
taxes, minority
interest,
extraordinary
item and
interest
expense $82,912 $98,288 ($18,925) $23,847 $27,853
------- ------- --------- ------- ------
Interest
expense $25,472 $23,587 $21,679 $10,337 $ 5,315
Preferred
stock
dividends 4,929(2) 6,210 6,210 10,806 9,100
Adjustment to
tax effect
preferred
stock
dividends 2,428 429 - - -
Preferred
stock
dividends
of majority
owned
subsidiary 1,474 1,520 - - -
------- ------- ------- ------- ------
Total fixed
charges $34,303 $31,746 $27,889 $21,143 $14,415
------- ------- ------- ------- ------
Ratio of
earnings
to combined
fixed charges
and preferred
dividends 2.42 3.10 N/A(1) 1.13
1.93 ------- ------- -------- -------- -------
(1) Earnings were inadequate to cover combined fixed charges and preferred
dividends by $46.8 million.
(2) Excludes redemption premium of $1.0 million.
EXHIBIT 23.2
CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS
As independent public accountants, we hereby consent to the incorporation of
our report dated February 10, 1998, included in the Company's 1997 Form 10-K
(and to all references to our Firm), included in or made part of this
Registration Statement.
ARTHUR ANDERSEN LLP
Fort Worth, Texas
May 5, 1998
<PAGE>
EXHIBIT 23.3
CONSENT OF INDEPENDENT PETROLEUM ENGINEERS AND GEOLOGISTS
As independent petroleum consultants, we hereby consent to the
incorporation by reference in the Prospectus constituting part of this
Registration Statement on Form S-3 or our report to Snyder Oil Corporation
dated February 3, 1998 appearing at Exhibit 99.1 of Snyder Oil Corporation's
Annual Report on Form 10-K for the year ended December 31, 1997. We also
consent to all references to our firm included as a part of this Registration
Statement on Form S-3 to be filed on or about May 7, 1998.
NETHERLAND, SEWELL & ASSOCIATES,
INC.
By: _____________________________________
Dallas, Texas
May 6, 1998
