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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): MARCH 13, 1996
THE TIMES MIRROR COMPANY
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
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DELAWARE 1-13492 95-4481525
(STATE OR OTHER (COMMISSION FILE NUMBER) (IRS EMPLOYER
JURISDICTION OF IDENTIFICATION NO.)
INCORPORATION)
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TIMES MIRROR SQUARE 90053
LOS ANGELES, CALIFORNIA (ZIP CODE)
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)
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REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (213) 237-3700
NONE
(FORMER NAME OR FORMER ADDRESS, IF CHANGED SINCE LAST REPORT)
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ITEM 5. OTHER EVENTS.
On August 28, 1995, the Times Mirror Company (the "Company") filed a
Registration Statement on Form S-3 (No. 33-62165), as amended by Amendment No.
1 filed on September 27, 1995, Amendment No. 2 filed on February 26, 1996, and
Amendment No. 3 filed on February 27, 1996, relating to the registration under
the Securities Act of 1933, as amended (the "Securities Act"), of up to an
initial aggregate offering price of $200 million of debt securities, preferred
stock, common stock and warrants of the Company, which Registration Statement
was declared effective on February 28, 1996.
On March 13, 1996, the Company entered into an Underwriting Agreement (a
copy of which is attached hereto as Exhibit 1.1) with Morgan Stanley & Co.
Incorporated, as the representative of the several underwriters named in
Schedule I thereto (together, the "Underwriters"), pursuant to which the
Company agreed to issue and sell and the Underwriters agreed, severally and not
jointly, subject to certain conditions, to purchase 1,305,000 of the Company's
4-1/4% Premium Equity Participating Securities due March 15, 2001 (the "PEPS")
at an initial public offering price of $39.25 per PEPS (the "Public Offering
Price") less underwriting discounts and commissions. The Company also granted
the Underwriters an option to purchase up to 195,000 additional PEPS at the
Public Offering Price, less underwriting discounts and commissions, to cover
over-allotments, if any. Such option is exercisable for 30 days from March 13,
1996.
The issuance and sale of the PEPS were completed on March 19, 1996. The
PEPS were issued pursuant to an Indenture dated as of March 19, 1996 between
the Company and Citibank, N.A., as trustee (a copy of such Indenture is
attached hereto as Exhibit 4.1).
In connection with the issuance of the PEPS under the Indenture, the
Company will deliver an Officers' Certificate (a copy of such Officers'
Certificate and annexes thereto is attached hereto as Exhibit 4.2) setting
forth the terms of the PEPS and certifying the resolutions duly adopted by the
Board of Directors of the Company at a meeting held on March 7, 1996,
authorizing the issuance of the PEPS.
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ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.
(c) Exhibits.
The following exhibits are filed with this report on Form 8-K and as
Exhibits to the Registration Statement:
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Exhibit No. Description
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1.1 Underwriting Agreement dated March 13, 1996 between
the Company and Morgan Stanley & Co. Incorporated, as
representative of the several underwriters named in
Schedule I thereto.
4.1 Indenture dated as of March 19, 1996 between the
Company and Citibank, N.A., as trustee.
4.2 Officers' Certificate dated as of March 19, 1996
establishing the terms of the PEPS and attaching the
specimen certificate of PEPS and the specimen
certificate of global PEPS.
5 Opinion of Gibson, Dunn & Crutcher regarding the
legality of the securities being issued.
8 Opinion of Gibson, Dunn & Crutcher regarding certain
tax matters.
12 Computation of Ratio of Earnings to Fixed Charges and
Ratio of Earnings to Fixed Charges and Preferred Stock
Dividends.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
THE TIMES MIRROR COMPANY
Date: March 19, 1996 By: /s/ O. Jean Williams
----------------------------------------
O. Jean Williams
Secretary and Associate General Counsel
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EXHIBIT INDEX
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EXHIBIT NUMBER DESCRIPTION
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1.1 Underwriting Agreement dated March 13, 1996 between
the Company and Morgan Stanley & Co. Incorporated, as
representative of the several underwriters named in
Schedule I thereto.
4.1 Indenture dated as of March 19, 1996 between the
Company and Citibank, N.A., as trustee.
4.2 Officers' Certificate dated as of March 19, 1996
establishing the terms of the PEPS and attaching the
specimen certificate of PEPS and the specimen
certificate of global PEPS.
5 Opinion of Gibson, Dunn & Crutcher regarding the
legality of the securities being issued.
8 Opinion of Gibson, Dunn & Crutcher regarding certain
tax matters.
12 Computation of Ratio of Earnings to Fixed Charges and
Ratio of Earnings to Fixed Charges and Preferred
Stock Dividends.
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EXHIBIT 1.1
1,305,000 PEPS
Premium Equity Participating Securities
THE TIMES MIRROR COMPANY
4 1/4% PEPS DUE MARCH 15, 2001
UNDERWRITING AGREEMENT
March 13, 1996
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March 13, 1996
Morgan Stanley & Co.
Incorporated
c/o Morgan Stanley & Co.
Incorporated
1585 Broadway
New York, New York 10036
Dear Sirs and Mesdames:
The Times Mirror Company, a Delaware corporation (the
"Company"), proposes to issue and sell to the several Underwriters named in
Schedule I hereto (the "Underwriters") 1,305,000 4 1/4% Premium Equity
Participating Securities Due March 15, 2001 ("Firm Debt Securities") to be
issued pursuant the provisions of an Indenture dated as of March 19, 1996 (the
"Indenture") between the Company and Citibank, N.A., as Trustee (the
"Trustee"). The Company also proposes to issue and sell to the several
Underwriters not more than an additional 195,000 4 1/4% Premium Equity
Participating Securities Due March 15, 2001 (the "Additional Debt Securities")
if and to the extent that you, as Manager of the offering, shall have
determined to exercise, on behalf of the Underwriters, the right to purchase
such Additional Debt Securities granted to the Underwriters herein. The Firm
Debt Securities and the Additional Debt Securities are hereinafter collectively
referred to as either the "Securities" or the "PEPS." The issue price and the
amount payable at maturity or upon redemption of the Securities are based on
the per share price of common stock, par value $.0001 per share, of Netscape
Communications Corporation ("Netscape").
The Company has filed with the Securities and Exchange
Commission (the "Commission") a registration statement including a prospectus
relating to the issuance of securities of the Company and has filed with, or
transmitted for filing to, or shall promptly hereafter file with or transmit
for filing to, the Commission a prospectus supplement (the "Prospectus
Supplement") specifically relating to the Securities pursuant to Rule 424 under
the Securities Act of 1933, as amended (the "Securities Act").
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The term Registration Statement means the registration statement as amended to
the date of this Agreement. The term Basic Prospectus means the prospectus
included in the Registration Statement. The term Prospectus means the Basic
Prospectus together with the Prospectus Supplement. The term preliminary
prospectus means a preliminary prospectus supplement specifically relating to
the Securities, together with the Basic Prospectus. As used herein, the terms
"Basic Prospectus," "Prospectus" and "preliminary prospectus" shall include in
each case the documents, if any, incorporated by reference therein (the
"Incorporated Documents"). The terms "supplement," "amendment" and "amend" as
used herein shall include all documents deemed to be incorporated by reference
in the Prospectus that are filed subsequent to the date of the Basic Prospectus
by the Company with the Commission pursuant to the Securities Exchange Act of
1934, as amended (the "Exchange Act"). The term "Significant Subsidiaries"
means the entities listed on Schedule II hereto.
1. REPRESENTATIONS AND WARRANTIES. The Company
represents and warrants to and agrees with each of the Underwriters that:
(a) The Registration Statement has become effective; no stop
order suspending the effectiveness of the Registration Statement is in
effect, and no proceedings for such purpose are pending before or, to
the knowledge of the Company, threatened by the Commission.
(b) (i) Each part of the Registration Statement, when such
part became effective, did not contain and each such part, as amended
or supplemented, if applicable, will not contain any untrue statement
of a material fact or omit to state a material fact required to be
stated therein or necessary to make the statements therein not
misleading, (ii) the Registration Statement and the Prospectus comply
and, as amended or supplemented, if applicable, will comply in all
material respects with the Securities Act and the applicable rules and
regulations of the Commission thereunder and (iii) the Prospectus does
not contain and, as amended or supplemented, if applicable, will not
contain any untrue statement of a material fact or omit to state a
material fact necessary to make the statements therein, in the light
of the circumstances under which they were made, not misleading,
except that the representations and warranties set forth in this
Section 1(b) do not apply (A) to statements or omissions in the
Registration Statement or the Prospectus based upon information
relating to any
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Underwriter furnished to the Company in writing by such Underwriter
through you expressly for use therein or (B) to that part of the
Registration Statement that constitutes the Statement of Eligibility
(Form T-1) under the Trust Indenture Act of 1939, as amended (the
"Trust Indenture Act"), of the Trustee.
(c) Each of the Company and its Significant Subsidiaries has
been duly organized and is validly existing as a corporation in good
standing under the laws of its jurisdiction of incorporation, with
full power and authority (corporate and other) to own its properties
and conduct its business as described in the Prospectus, except where
the failure to be in good standing, either singly or in the aggregate,
would not have a material adverse effect on the condition, financial
or otherwise, or the earnings, business or operations of the Company
and its subsidiaries, taken as a whole (each, a "Material Adverse
Effect").
(d) Each of the Company and its Significant Subsidiaries is
duly qualified to do business as a foreign corporation and is in good
standing in each jurisdiction where the character of the business
conducted by it or the location of its properties owned or leased by
it makes such qualification necessary and in which the absence of such
qualification, either singly or in the aggregate, would have a
Material Adverse Effect.
(e) The outstanding shares of capital stock of each of
the Significant Subsidiaries of the Company have been duly authorized
and validly issued, are fully paid and nonassessable and are owned
beneficially by the Company free and clear of all liens, encumbrances,
equities and claims.
(f) Each of the Company and its Significant Subsidiaries is
in compliance with all laws, ordinances and regulations applicable to
its properties (whether owned or leased) and its business as described
in the Prospectus, except where failure to so comply, either singly or
in the aggregate, would not have a Material Adverse Effect.
(g) Each of the Company and its Significant Subsidiaries has
all government licenses or permits necessary to carry on its business
as such business is presently conducted and as described in the
Prospectus, except where failure to have such licenses or permits,
either singly or in the aggregate, would not have a
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Material Adverse Effect. Except as set forth in the Prospectus or as
previously disclosed to you in writing, the Company has no reason to
believe that any federal or state authorities are considering
modifying, suspending or revoking any such licenses, or that such
authorities or any other agencies are investigating the Company or any
of its Significant Subsidiaries other than in the ordinary course of
administrative review.
(h) This Agreement has been duly authorized, executed and
delivered by the Company.
(i) The Indenture has been duly qualified under the Trust
Indenture Act and has been duly authorized, and when executed and
delivered by the Company and, assuming the due authorization,
execution and delivery of the Indenture by the Trustee, will be a
valid and binding agreement of the Company, enforceable in accordance
with its terms subject to the effect of (a) applicable bankruptcy,
reorganization, insolvency, moratorium and other similar laws and
court decisions of general application (including, without limitation,
statutory or other laws regarding fraudulent or preferential
transfers) relating to, limiting or affecting the enforcement of
creditors' rights generally, (b) general principles of equity that may
limit the enforceability of the remedies, covenants or other
provisions of the Indenture and the availability of injunctive relief
or other equitable remedies and (c) the application of principles of
equity (regardless of whether enforcement is considered in proceedings
at law or in equity) as such principles relate to, limit or affect the
enforcement of creditors' rights generally.
(j) The Securities have been duly authorized and, when
executed and authenticated in accordance with the provisions of the
Indenture and delivered to and paid for by the Underwriters in
accordance with the terms of this Agreement, will be entitled to the
benefits of the Indenture and will be valid and binding obligations of
the Company, enforceable in accordance with their terms subject to the
effect of (a) applicable bankruptcy, reorganization, insolvency,
moratorium and other similar laws and court decisions of general
application (including, without limitation, statutory or other laws
regarding fraudulent or preferential transfers) relating to, limiting
or affecting the enforcement of creditors' rights generally, (b)
general principles of equity that may limit the enforceability of the
remedies, covenants or other provisions of the
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Securities and the availability of injunctive relief or other
equitable remedies and (c) the application of principles of equity
(regardless of whether enforcement is considered in proceedings at law
or in equity) as such principles relate to, limit or affect the
enforcement of creditors' rights generally.
(k) The execution and delivery by the Company of, and the
performance by the Company of its obligations under, this Agreement,
the Indenture and the Securities will not contravene any provision of
applicable law or the certificate of incorporation or by-laws of the
Company or any agreement or other instrument binding upon the Company
or any of its subsidiaries that is material to the Company and its
subsidiaries, taken as a whole, or any judgment, order or decree of
any governmental body, agency or court having jurisdiction over the
Company or any subsidiary, and no consent, approval, authorization or
order of, or qualification with, any governmental body or agency is
required for the performance by the Company of its obligations under
this Agreement, the Indenture or the Securities, except such as may be
required by the securities or Blue Sky laws of the various states in
connection with the offer and sale of the Securities.
(l) There has not occurred any material adverse change, or
any development involving a prospective material adverse change, in
the condition, financial or otherwise, or in the earnings, business or
operations of the Company and its subsidiaries, taken as a whole, from
that set forth in the Prospectus (exclusive of any amendments or
supplements thereto subsequent to the date of this Agreement).
(m) There are no legal or governmental proceedings pending
or, to the knowledge of the Company, threatened to which the Company
or any of its Significant Subsidiaries is a party or to which any of
the properties of the Company or any of its Significant Subsidiaries
is subject that are required to be described in the Registration
Statement or the Prospectus and are not so described or any statutes,
regulations, contracts or other documents that are required to be
described in the Registration Statement or the Prospectus or to be
filed as exhibits to the Registration Statement that are not described
or filed as required.
(n) Each preliminary prospectus filed as part of the
Registration Statement as declared effective, or
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filed pursuant to Rule 424 under the Securities Act, complied when so
filed in all material respects with the Securities Act and the
applicable rules and regulations of the Commission thereunder.
(o) The Company is not an "investment company" or an entity
"controlled" by an "investment company" as such terms are defined in
the Investment Company Act of 1940, as amended.
(p) To its best knowledge after due inquiry, the Company has
complied with all provisions of Section 517.075, Florida Statutes
relating to doing business with the Government of Cuba or with any
person or affiliate located in Cuba.
(q) The Company and Netscape are not "affiliates" as that
term is defined in Rule 12b-2 promulgated by the Commission under the
Exchange Act.
(r) Each of the total assets, the gross revenues and the
income (loss) from continuing operations of the Company and the
Significant Subsidiaries, taken as a whole, constitutes 90% or more of
each of the total assets, the gross revenues and the income (loss)
from continuing operations, respectively, of the Company and all of
its subsidiaries, taken as a whole, as of and for the year ended
December 31, 1995.
2. AGREEMENTS TO SELL AND PURCHASE. The Company hereby
agrees to sell to the several Underwriters, and each Underwriter, upon the
basis of the representations and warranties herein contained, but subject to
the conditions hereinafter stated, agrees, severally and not jointly, to
purchase from the Company the respective number of Firm Debt Securities set
forth in Schedule I hereto opposite its name at $38.07 per PEPS, plus accrued
interest, if any, from March 19, 1996 to the date of payment and delivery (the
"Purchase Price").
On the basis of the representations and warranties contained
in this Agreement, and subject to its terms and conditions, the Company agrees
to sell to the Underwriters the Additional Debt Securities, and the
Underwriters shall have a one-time right to purchase, severally and not
jointly, up to 195,000 Additional Debt Securities at the Purchase Price. If
you, on behalf of the Underwriters, elect to exercise such option, you shall so
notify the Company in writing not later than 30 days after the date of this
Agreement, which notice shall specify the number of Additional Debt Securities
to be purchased by the
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Underwriters and the date on which such Additional Debt Securities are to be
purchased. Such date may be the same as the Closing Date (as defined below)
but not earlier than the Closing Date nor earlier than two or later than ten
business days after the date of such notice. Additional Debt Securities may be
purchased as provided in Section 4 hereof solely for the purpose of covering
over-allotments made in connection with the offering of the Firm Debt
Securities. If any Additional Debt Securities are to be purchased, each
Underwriter agrees, severally and not jointly, to purchase the number of
Additional Debt Securities (subject to such adjustments to eliminate fractional
securities as you may determine) that bears the same proportion to the total
number of Additional Debt Securities to be purchased as the number of Firm Debt
Securities set forth in Schedule I hereto opposite the name of such Underwriter
bears to the total number of Firm Debt Securities.
3. TERMS OF PUBLIC OFFERING. The Company is advised by you
that the Underwriters propose to make a public offering of their respective
portions of the Securities as soon after this Agreement has become effective as
in your judgment is advisable. The Company is further advised by you that the
Securities are to be offered to the public initially at $39.25 a PEPS (the
"Public Offering Price") and to certain dealers selected by you at a price that
represents a concession not in excess of $0.70 a PEPS under the Public Offering
Price.
4. PAYMENT AND DELIVERY. Payment for the Firm Debt
Securities shall be made to an account designated by the Company by wire
transfer of federal funds or other immediately available funds against delivery
of such Firm Debt Securities for the respective accounts of the several
Underwriters at 7:00 A.M., California time, on March 19, 1996, or at such other
time on the same or such other date, not later than March 27, 1996, as shall be
designated in writing by you. The time and date of such payment are
hereinafter referred to as the "Closing Date."
Payment for any Additional Debt Securities shall be made to an
account designated by the Company by wire transfer of federal funds or other
immediately available funds against delivery of such Additional Debt Securities
for the respective accounts of the several Underwriters at 7:00 A.M.,
California time, on such date (which may be the same as the Closing Date but
shall in no event be earlier than the Closing Date nor earlier than two or
later than ten business days after the giving of the notice hereinafter
referred to) as shall be designated in a written notice from
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you to the Company of your determination, on behalf of the Underwriters, to
purchase a number, specified in said notice, of Additional Debt Securities, or
on such other date, in any event not later than April 13, 1996, as shall be
designated in writing by you. The time and date of such payment are
hereinafter referred to as the "Option Closing Date." The notice of the
determination to exercise the option to purchase Additional Debt Securities and
of the Option Closing Date may be given at any time within 30 days after the
date of this Agreement.
The several obligations of the Underwriters to purchase
Additional Debt Securities hereunder are subject to the delivery to the
Underwriters on the Option Closing Date of such documents as you may reasonably
request with respect to the good standing of the Company, the due authorization
and issuance of the Additional Debt Securities and other matters related to the
issuance of the Additional Debt Securities.
Certificates for the Firm Debt Securities and the Additional
Debt Securities shall be in definitive form and registered in such names and in
such denominations as you shall request in writing not later than one full
business day prior to the Closing Date or the Option Closing Date, as the case
may be. The certificates evidencing the Firm Debt Securities and the
Additional Debt Securities shall be delivered to you on the Closing Date or the
Option Closing Date, as the case may be, for the respective accounts of the
several Underwriters, with any transfer taxes payable in connection with the
transfer of the Securities to the Underwriters duly paid, against payment of
the Purchase Price therefor.
5. CONDITIONS TO THE UNDERWRITERS' OBLIGATIONS. The
obligations of the Company to sell the Securities to the Underwriters and the
several obligations of the Underwriters to purchase and pay for such Securities
are subject to the satisfaction of each of the following conditions.
(a) Subsequent to the execution and delivery of this
Agreement and prior to the Closing Date:
(i) there shall not have occurred any downgrading,
nor shall any notice have been given of any intended or
potential downgrading or of any review for a possible change
that does not indicate the direction of the possible change,
in the rating accorded any of the Company's securities by any
"nationally recognized statistical rating organization," as
such term is
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defined for purposes of Rule 436(g)(2) under the Securities
Act;
(ii) there shall not have occurred any change, or any
development involving a prospective change, in the condition,
financial or otherwise, or in the earnings, business or
operations of the Company and its subsidiaries, taken as a
whole, from that set forth in the Prospectus (exclusive of any
amendments or supplements thereto subsequent to the date of
this Agreement) that, in your judgment, is material and
adverse and that makes it, in your judgment, impracticable to
market the Securities on the terms and in the manner
contemplated in the Prospectus; and
(iii) no stop order suspending the effectiveness of
the Registration Statement shall have been issued and no
proceedings for that purpose shall have been commenced or
shall be pending before or contemplated by the Commission.
(b) The Underwriters shall have received on the Closing Date
a certificate, dated the Closing Date and signed by an executive
officer of the Company, to the effect set forth in clauses (a)(i) and
(iii) above and to the effect that the representations and warranties
of the Company contained in this Agreement are true and correct as of
the Closing Date and that the Company has complied in all material
respects with all of the agreements and satisfied in all material
respects all of the conditions on its part to be performed or
satisfied hereunder on or before the Closing Date.
The officer signing and delivering such certificate
may rely upon the best of his or her knowledge as to proceedings
threatened.
(c) The Underwriters shall have received on the Closing Date
an opinion of Gibson, Dunn & Crutcher, outside counsel for the
Company, dated the Closing Date, to the effect that:
(i) this Agreement has been duly authorized,
executed and delivered by the Company;
(ii) the Indenture has been duly qualified under the
Trust Indenture Act and has been duly authorized, executed and
delivered by the Company and is a valid and binding agreement
of the Company, enforceable in accordance with its terms
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subject to the effect of (a) applicable bankruptcy,
reorganization, insolvency, moratorium and other similar laws
and court decisions of general application (including, without
limitation, statutory or other laws regarding fraudulent or
preferential transfers) relating to, limiting or affecting the
enforcement of creditors' rights generally, (b) general
principles of equity that may limit the enforceability of the
remedies, covenants or other provisions of the Indenture and
the availability of injunctive relief or other equitable
remedies and (c) the application of principles of equity
(regardless of whether enforcement is considered in
proceedings at law or in equity) as such principles relate to,
limit or affect the enforcement of creditors' rights
generally;
(iii) the Securities have been duly authorized and,
when executed and authenticated in accordance with the
provisions of the Indenture and delivered to and paid for by
the Underwriters in accordance with the terms of this
Agreement, will be entitled to the benefits of the Indenture
and will be valid and binding obligations of the Company,
enforceable in accordance with their terms subject to the
effect of (a) applicable bankruptcy, reorganization,
insolvency, moratorium and other similar laws and court
decisions of general application (including, without
limitation, statutory or other laws regarding fraudulent or
preferential transfers) relating to, limiting or affecting the
enforcement of creditors' rights generally, (b) general
principles of equity that may limit the enforceability of the
remedies, covenants or other provisions of the Securities and
the availability of injunctive relief or other equitable
remedies and (c) the application of principles of equity
(regardless of whether enforcement is considered in
proceedings at law or in equity) as such principles relate to,
limit or affect the enforcement of creditors' rights
generally;
(iv) the statements (A) in the Prospectus under the
captions "Description of Securities," "Underwriters," "Certain
United States Federal Income Tax Considerations," "Plan of
Distribution" and "Certain Legal Matters" and (B) in the
Registration Statement in Items 15 and 17, in each case
insofar as such statements constitute
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summaries of the legal matters, documents or proceedings
referred to therein, fairly present the information called for
with respect to such legal matters, documents and proceedings
and fairly summarize the matters referred to therein;
(v) the Company is not an "investment company" or an
entity "controlled" by an "investment company," as such terms
are defined in the Investment Company Act of 1940, as amended;
and
(vi) the Registration Statement and Prospectus (excluding
the Incorporated Documents and except for financial statements
and schedules and other financial and statistical data
included therein as to which such counsel need not express any
opinion) comply as to form in all material respects with the
Securities Act and the applicable rules and regulations of the
Commission thereunder.
In addition to the foregoing opinions, such counsel shall
state that based upon certain specified activities, such counsel has no reason
to believe that (except for financial statements and schedules and other
financial and statistical data as to which such counsel need not express any
belief and except for that part of the Registration Statement that constitutes
the Form T-1 heretofore referred to) the Registration Statement and the
Prospectus (including the Incorporated Documents) at the time the Registration
Statement became effective, and the Registration Statement and the Prospectus
on the date of this Agreement, contained any untrue statement of a material
fact or omitted to state a material fact required to be stated therein or
necessary to make the statements therein not misleading and that (except for
financial statements and schedules and other financial and statistical data as
to which such counsel need not express any belief) the Prospectus (including
the Incorporated Documents) contains any untrue statement of a material fact or
omits to state a material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not
misleading.
(d) The Underwriters shall have received on the Closing Date
an opinion of Kathleen G. McGuinness, General Counsel for the Company,
dated the Closing Date, to the effect that:
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(i) each of the Company and its Significant
Subsidiaries has been duly incorporated and is validly
existing as a corporation in good standing under the laws of
its jurisdiction of incorporation, with full power and
authority (corporate and other) to own its properties and
conduct its business as described in the Prospectus, except
where the failure to be in good standing, either singly or in
the aggregate, would not have a Material Adverse Effect;
(ii) the execution and delivery by the Company of,
and the performance by the Company of its obligations under,
this Agreement, the Securities and the Indenture will not
contravene any provision of applicable law, known to such
counsel, or the certificate of incorporation or by-laws of the
Company or, to the best of such counsel's knowledge, any
agreement or other instrument binding upon the Company or any
of its Significant Subsidiaries that is material to the
Company and its subsidiaries, taken as a whole, or, to the
best of such counsel's knowledge, any judgment, order or
decree of any governmental body, agency or court having
jurisdiction over the Company or any Significant Subsidiary,
and no consent, approval, authorization or order of, or
qualification with, any governmental body or agency is
required for the performance by the Company of its obligations
under this Agreement, the Securities and the Indenture, except
such as may be required by the securities or Blue Sky laws of
the various states in connection with the offer and sale of
the Securities;
(iii) after due inquiry, such counsel does not know
of any legal or governmental proceedings pending or threatened
to which the Company or any of its Significant Subsidiaries is
a party or to which any of the properties of the Company or
any of its Significant Subsidiaries is subject that are
required to be described in the Registration Statement or the
Prospectus and are not so described or of any statutes,
regulations, contracts or other documents that are required to
be described in the Registration Statement or the Prospectus
or to be filed as exhibits to the Registration Statement that
are not described or filed as required; and
12
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(iv) the Registration Statement and Prospectus (including
the Incorporated Documents and except for financial statements
and schedules and other financial and statistical data
included therein as to which such counsel need not express any
opinion) comply as to form in all material respects with the
Securities Act and the applicable rules and regulations of the
Commission thereunder.
In addition to the foregoing opinions, such counsel shall
state that based upon certain specified activities, such counsel has no reason
to believe that (except for financial statements and schedules and other
financial and statistical data as to which such counsel need not express any
belief and except for that part of the Registration Statement that constitutes
the Form T-1 heretofore referred to) the Registration Statement and the
Prospectus (including the Incorporated Documents) at the time the Registration
Statement became effective, and the Registration Statement and the Prospectus
on the date of this Agreement, contained any untrue statement of a material
fact or omitted to state a material fact required to be stated therein or
necessary to make the statements therein not misleading and that (except for
financial statements and schedules and other financial and statistical data as
to which such counsel need not express any belief) the Prospectus (including
the Incorporated Documents) contains any untrue statement of a material fact or
omits to state a material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not
misleading.
(e) The Underwriters shall have received on the Closing Date
an opinion of Davis Polk & Wardwell, counsel for the Underwriters,
dated the Closing Date, covering the matters referred to in
subparagraphs (i), (ii), (iii), (iv) (but only as to the statements in
the Prospectus under "Description of Securities" and "Underwriters")
and (vi) of paragraph (c) above.
(f) The Underwriters shall have received on the Closing
Date a letter from Latham & Watkins, counsel for the Underwriters,
dated the Closing Date, covering the matters referred to in the last
subparagraph of paragraph (c) above.
With respect to the last subparagraph of paragraph (c) above
and the last subparagraph of paragraph (d) above, Gibson, Dunn &
Crutcher, Kathleen G. McGuinness and Latham & Watkins may state that
their opinion and
13
<PAGE> 15
belief are based upon their participation in the preparation of the
Registration Statement and Prospectus and any amendments or
supplements thereto and review and discussion of the contents thereof,
but are without independent check or verification, except as
specified.
The opinions of Gibson, Dunn & Crutcher and Kathleen G.
McGuinness described in paragraphs (c) and (d) above shall be rendered
to the Underwriters at the request of the Company and shall so state
therein.
(g) The Underwriters shall have received on the Closing Date
a letter dated the Closing Date, in form and substance satisfactory to
the Underwriters, from Ernst & Young LLP, independent public
accountants, containing statements and information of the type
ordinarily included in accountants' "comfort letters" to underwriters
with respect to the financial statements and certain financial
information contained in the Registration Statement and the
Prospectus;provided that the letter delivered on the Closing Date
shall use a "cut-off" date not earlier than the date hereof.
The several obligations of the Underwriters to purchase
Additional Debt Securities hereunder are subject to the delivery to you on the
Option Closing Date of such documents as you may reasonably request with
respect to the good standing of the Company, the due authorization and issuance
of the Additional Debt Securities and other matters related to the issuance of
the Additional Debt Securities.
6. COVENANTS OF THE COMPANY. In further consideration of the
agreements of the Underwriters herein contained, the Company covenants with
each Underwriter as follows:
(a) To furnish to you, without charge, 2 signed copies of the
Registration Statement (including exhibits thereto) and for delivery
to each other Underwriter a conformed copy of the Registration
Statement (without exhibits thereto) and furnish to you in New York
City, without charge, prior to 10:00 A.M., local time on the business
day next succeeding the date of this Agreement and during the period
mentioned in paragraph (c) below, as many copies of the Prospectus and
any supplements and amendments thereto or to the Registration
Statement as you may reasonably request.
14
<PAGE> 16
(b) Before amending or supplementing the Registration
Statement or the Prospectus in a manner that relates to or affects the
Securities, to furnish to you a copy of each such proposed amendment
or supplement and not to file any such proposed amendment or
supplement to which you reasonably object, and to file with the
Commission within the applicable period specified in Rule 424(b) under
the Securities Act any prospectus required to be filed pursuant to
such Rule.
(c) If, during such period after the first date of the public
offering of the Securities as in the opinion of counsel for the
Underwriters the Prospectus is required by law to be delivered in
connection with sales by an Underwriter or dealer, any event shall
occur or condition exist as a result of which it is necessary to amend
or supplement the Prospectus in order to make the statements therein,
in the light of the circumstances when the Prospectus is delivered to
a purchaser, not misleading, or if, in the opinion of counsel for the
Underwriters, it is necessary to amend or supplement the Prospectus to
comply with applicable law, forthwith to prepare, file with the
Commission and furnish, at its own expense, to the Underwriters and to
the dealers (whose names and addresses you will furnish to the
Company) to which Securities may have been sold by you on behalf of
the Underwriters and to any other dealers upon request, either
amendments or supplements to the Prospectus so that the statements in
the Prospectus as so amended or supplemented will not, in the light of
the circumstances when the Prospectus is delivered to a purchaser, be
misleading or so that the Prospectus, as amended or supplemented, will
comply with law.
(d) To endeavor to qualify the Securities for offer and sale
under the securities or blue sky laws of such jurisdictions as you
shall reasonably request.
(e) To make generally available to the Company's security
holders and to you as soon as practicable an earning statement
covering the twelve-month period ending March 31, 1997 that satisfies
the provisions of Section 11(a) of the Securities Act and the rules
and regulations of the Commission thereunder.
(f) To pay all expenses incident to the performance of its
obligations under this Agreement, including: (i) the preparation and
filing of the Registration Statement and the Prospectus and all
amendments and supplements thereto; (ii) the
15
<PAGE> 17
preparation, issuance and delivery of the Securities; (iii) the fees
and disbursements of the Company's counsel and accountants and of the
Trustee and its counsel; (iv) the qualification of the Securities
under state securities or blue sky laws in accordance with the
provisions of Section 6(d), including filing fees and the fees and
disbursements of counsel for the Underwriters in connection therewith
and in connection with the preparation of any blue sky or legal
investment memoranda; (v) the printing and delivery to the
Underwriters in quantities as hereinabove stated of copies of the
Registration Statement and all amendments thereto and of each
preliminary prospectus and the Prospectus and any amendments or
supplements thereto; (vi) the printing and delivery to the
Underwriters of copies of any blue sky or legal investment memoranda;
(vii) any fees charged by rating agencies for the rating of the
Securities; (viii) the filing fees and expenses, if any, incurred with
respect to any filing with the National Association of Securities
Dealers, Inc. made in connection with the offering of the Securities;
and (ix) any expenses incurred by the Company in connection with a
"road show" presentation to potential investors.
7. INDEMNITY AND CONTRIBUTION. (a) The Company agrees to
indemnify and hold harmless each Underwriter and each person, if any, who
controls any Underwriter within the meaning of either Section 15 of the
Securities Act or Section 20 of the Exchange Act from and against any and all
losses, claims, damages and liabilities (including, without limitation, any
legal or other expenses reasonably incurred by any Underwriter or any such
controlling person in connection with defending or investigating any such
action or claim) caused by any untrue statement or alleged untrue statement of
a material fact contained in the Registration Statement or any amendment
thereof, any preliminary prospectus or the Prospectus (as amended or
supplemented if the Company shall have furnished any amendments or supplements
thereto), or caused by any omission or alleged omission to state therein a
material fact required to be stated therein or necessary to make the statements
therein not misleading, except insofar as such losses, claims, damages or
liabilities are caused by any such untrue statement or omission or alleged
untrue statement or omission based upon information relating to any Underwriter
furnished to the Company in writing by such Underwriter through you expressly
for use therein.
(b) Each Underwriter agrees, severally and not jointly, to
indemnify and hold harmless the Company, its
16
<PAGE> 18
directors, its officers who sign the Registration Statement and each person, if
any, who controls the Company within the meaning of either Section 15 of the
Securities Act or Section 20 of the Exchange Act to the same extent as the
foregoing indemnity from the Company to such Underwriter, but only with
reference to information relating to such Underwriter furnished to the Company
in writing by such Underwriter through you expressly for use in the
Registration Statement, any preliminary prospectus, the Prospectus or any
amendments or supplements thereto.
(c) In case any proceeding (including any governmental
investigation) shall be instituted involving any person in respect of which
indemnity may be sought pursuant to either paragraph (a) or (b) of this Section
7, such person (the "indemnified party") shall promptly notify the person
against whom such indemnity may be sought (the "indemnifying party") in writing
and the indemnifying party, upon request of the indemnified party, shall retain
counsel reasonably satisfactory to the indemnified party to represent the
indemnified party and any others the indemnifying party may designate in such
proceeding and shall pay the fees and disbursements of such counsel related to
such proceeding. In any such proceeding, any indemnified party shall have the
right to retain its own counsel, but the fees and expenses of such counsel
shall be at the expense of such indemnified party unless (i) the indemnifying
party and the indemnified party shall have mutually agreed to the retention of
such counsel or (ii) the named parties to any such proceeding (including any
impleaded parties) include both the indemnifying party and the indemnified
party and the indemnified party shall have been advised by counsel that there
are actual or potential differing interests between them. It is understood
that the indemnifying party shall not, in respect of the legal expenses of any
indemnified party in connection with any proceeding or related proceedings in
the same jurisdiction, be liable for the fees and expenses of more than one
separate firm (in addition to any local counsel) for all such indemnified
parties and that all such fees and expenses shall be reimbursed as they are
incurred. Such firm shall be designated in writing by Morgan Stanley & Co.
Incorporated, in the case of parties indemnified pursuant to paragraph (a)
above and by the Company, in the case of parties indemnified pursuant to
paragraph (b) above. The indemnifying party shall not be liable for any
settlement of any proceeding effected without its written consent, but if
settled with such consent or if there be a final judgment for the plaintiff,
the indemnifying party agrees to indemnify the indemnified party from and
against any loss or liability by reason of such settlement or judgment. No
17
<PAGE> 19
indemnifying party shall, without the prior written consent of the indemnified
party, effect any settlement of any pending or threatened proceeding in respect
of which any indemnified party is or could have been a party and indemnity
could have been sought hereunder by such indemnified party, unless such
settlement includes an unconditional release of such indemnified party from all
liability on claims that are the subject matter of such proceeding.
(d) To the extent the indemnification provided for in
paragraph (a) or (b) of this Section 7 is unavailable to an indemnified party
or insufficient in respect of any losses, claims, damages or liabilities
referred to therein, then each indemnifying party under such paragraph, in lieu
of indemnifying such indemnified party thereunder, shall contribute to the
amount paid or payable by such indemnified party as a result of such losses,
claims, damages or liabilities (i) in such proportion as is appropriate to
reflect the relative benefits received by the Company on the one hand and the
Underwriters on the other hand from the offering of the Securities or (ii) if
the allocation provided by clause (i) above is not permitted by applicable law,
in such proportion as is appropriate to reflect not only the relative benefits
referred to in clause (i) above but also the relative fault of the Company on
the one hand and of the Underwriters on the other hand in connection with the
statements or omissions that resulted in such losses, claims, damages or
liabilities, as well as any other relevant equitable considerations. The
relative benefits received by the Company on the one hand and the Underwriters
on the other hand in connection with the offering of the Securities shall be
deemed to be in the same respective proportions as the net proceeds from the
offering of the Securities (before deducting expenses) received by the Company
and the total underwriting discounts and commissions received by the
Underwriters, in each case as set forth in the table on the cover of the
Prospectus, bear to the aggregate Public Offering Price of the Securities. The
relative fault of the Company on the one hand and the Underwriters on the other
hand shall be determined by reference to, among other things, whether the
untrue or alleged untrue statement of a material fact or the omission or
alleged omission to state a material fact relates to information supplied by
the Company or by the Underwriters and the parties' relative intent, knowledge,
access to information and opportunity to correct or prevent such statement or
omission. The Underwriters' respective obligations to contribute pursuant to
this Section 7 are several in proportion to the respective numbers of
Securities they have purchased hereunder, and not joint.
18
<PAGE> 20
(e) The Company and the Underwriters agree that it would not
be just or equitable if contribution pursuant to this Section 7 were determined
by pro rata allocation (even if the Underwriters were treated as one entity for
such purpose) or by any other method of allocation that does not take account
of the equitable considerations referred to in paragraph (d) of this Section 7.
The amount paid or payable by an indemnified party as a result of the losses,
claims, damages and liabilities referred to in the immediately preceding
paragraph shall be deemed to include, subject to the limitations set forth
above, any legal or other expenses reasonably incurred by such indemnified
party in connection with investigating or defending any such action or claim.
Notwithstanding the provisions of this Section 7, no Underwriter shall be
required to contribute any amount in excess of the amount by which the total
price at which the Securities underwritten by it and distributed to the public
were offered to the public exceeds the amount of any damages that such
Underwriter has otherwise been required to pay by reason of such untrue or
alleged untrue statement or omission or alleged omission. No person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any person who was not
guilty of such fraudulent misrepresentation. The remedies provided for in this
Section 7 are not exclusive and shall not limit any rights or remedies which
may otherwise be available to any indemnified party at law or in equity.
(f) The indemnity and contribution provisions contained in
this Section 7 and the representations, warranties and other statements of the
Company contained in this Agreement shall remain operative and in full force
and effect regardless of (i) any termination of this Agreement, (ii) any
investigation made by or on behalf of any Underwriter or any person controlling
any Underwriter or by or on behalf of the Company, its officers or directors or
any person controlling the Company and (iii) acceptance of and payment for any
of the Securities.
8. TERMINATION. This Agreement shall be subject to
termination by notice given by you to the Company, if (a) after the execution
and delivery of this Agreement and prior to the Closing Date (i) trading
generally shall have been suspended or materially limited on or by, as the case
may be, any of the New York Stock Exchange, the American Stock Exchange, the
National Association of Securities Dealers, Inc., the Chicago Board of Options
Exchange, the Chicago Mercantile Exchange or the Chicago Board of Trade, (ii)
trading of any securities of the Company shall have been suspended on any
exchange or in any over-the-counter market,
19
<PAGE> 21
(iii) a general moratorium on commercial banking activities in New York shall
have been declared by either Federal or New York State authorities or (iv)
there shall have occurred any outbreak or escalation of hostilities or any
change in financial markets or any calamity or crisis that, in your judgment,
is material and adverse and (b) in the case of any of the events specified in
clauses (a)(i) through (iv), such event, singly or together with any other such
event, makes it, in your judgment, impracticable to market the Securities on
the terms and in the manner contemplated in the Prospectus.
9. EFFECTIVENESS; DEFAULTING UNDERWRITERS. This Agreement
shall become effective upon the execution and delivery hereof by the parties
hereto.
If, on the Closing Date, any one or more of the Underwriters
shall fail or refuse to purchase Securities that it has or they have agreed to
purchase hereunder on such date, and the aggregate number of Securities which
such defaulting Underwriter or Underwriters agreed but failed or refused to
purchase is not more than one-tenth of the aggregate number of the Securities
to be purchased on such date, the other Underwriters shall be obligated
severally in the proportions that the number of Securities set forth opposite
their respective names in Schedule I bears to the number of Securities set
forth opposite the names of all such non-defaulting Underwriters, or in such
other proportions as you may specify, to purchase the Securities which such
defaulting Underwriter or Underwriters agreed but failed or refused to purchase
on such date; provided that in no event shall the number of Securities that any
Underwriter has agreed to purchase pursuant to this Agreement be increased
pursuant to this Section 9 by an amount in excess of one-ninth of such number
of Securities without the written consent of such Underwriter. If, on the
Closing Date, any Underwriter or Underwriters shall fail or refuse to purchase
Securities and the aggregate number of Securities with respect to which such
default occurs is more than one-tenth of the aggregate number of Securities to
be purchased on such date, and arrangements satisfactory to you and the Company
for the purchase of such Securities are not made within 36 hours after such
default, this Agreement shall terminate without liability on the part of any
non-defaulting Underwriter or the Company. In any such case either you or the
Company shall have the right to postpone the Closing Date, but in no event for
longer than seven days, in order that the required changes, if any, in the
Registration Statement and in the Prospectus or in any other documents or
arrangements may be effected. Any action taken under this paragraph shall not
relieve any defaulting
20
<PAGE> 22
Underwriter from liability in respect of any default of such Underwriter under
this Agreement.
If this Agreement shall be terminated by the Underwriters, or
any of them, because of any failure or refusal on the part of the Company to
comply with the terms or to fulfill any of the conditions of this Agreement, or
if for any reason the Company shall be unable to perform its obligations under
this Agreement (other than as a direct result of a defaulting Underwriter), the
Company will reimburse the Underwriters or such Underwriters as have so
terminated this Agreement with respect to themselves, severally, for all
out-of-pocket expenses (including the reasonable fees and disbursements of
their counsel) reasonably incurred by such Underwriters in connection with this
Agreement or the offering contemplated hereunder.
10. COUNTERPARTS. This Agreement may be signed in two or
more counterparts, each of which shall be an original, with the same effect as
if the signatures thereto and hereto were upon the same instrument.
11. APPLICABLE LAW. This Agreement shall be governed by and
construed in accordance with the internal laws of the State of New York.
12. HEADINGS. The headings of the sections of this Agreement
have been inserted for convenience of reference only and shall not be deemed a
part of this Agreement.
21
<PAGE> 23
Very truly yours,
THE TIMES MIRROR COMPANY
By /s/ KATHLEEN G. MCGUINNESS
_____________________________
Name: Kathleen G. McGuinness
Title: Vice President and
General Counsel
Accepted as of the date hereof
Morgan Stanley & Co. Incorporated
Acting severally on behalf
of itself and the
several Underwriters named
herein.
By Morgan Stanley & Co.
Incorporated
By /s/ BEATRICE M. CASSOU
___________________________
Name: Beatrice M. Cassou
Title: Principal
22
<PAGE> 24
SCHEDULE I
<TABLE>
<CAPTION>
Number of
of Securities
Underwriter To Be Purchased
- ----------- ---------------
<S> <C>
Morgan Stanley & Co. Incorporated 865,000
Cowen & Company 40,000
A.G. Edwards & Sons, Inc. 40,000
Everen Securities, Inc. 40,000
Hambrecht & Quist LLC 40,000
Janney Montgomery Scott Inc. 40,000
Legg Mason Wood Walker, Incorporated 40,000
McDonald & Company Securities, Inc. 40,000
Merrill Lynch, Pierce,
Fenner & Smith Incorporated 40,000
Oppenheimer & Co., Inc. 40,000
Prudential Securities Incorporated 40,000
Scott & Stringfellow, Inc. 40,000
---------
Total................................................. 1,305,000
=========
</TABLE>
<PAGE> 25
SCHEDULE II
Significant Subsidiaries of the Company
The Baltimore Sun Company
Newsday, Inc.
Jeppesen Sanderson, Inc.
Mosby-Year Book, Inc.
Matthew Bender & Company, Incorporated
CRC Press, Inc.
The Hartford Courant Company
Jeppesen & Co., GmbH
The Morning Call, Inc.
Times Mirror Higher Education Group, Inc.
Times Mirror Magazines, Inc.
Times Mirror Training, Inc.
Times Mirror Services Company, Inc.
<PAGE> 1
EXHIBIT 4.1
- -------------------------------------------------------------------------------
THE TIMES MIRROR COMPANY
TO
CITIBANK, N.A., TRUSTEE
-------------------------
INDENTURE
DATED AS OF MARCH 19, 1996
- -------------------------------------------------------------------------------
<PAGE> 2
This Cross Reference Sheet, showing the location in the Indenture of the
provisions inserted pursuant to Sections 310 to 318(a), inclusive, of the Trust
Indenture Act of 1939, is not to be considered a part of the Indenture.
TRUST INDENTURE ACT CROSS REFERENCE SHEET
<TABLE>
<CAPTION>
TRUST INDENTURE ACT SECTION INDENTURE SECTION
- --------------------------- -----------------
<S> <C>
Section 310(a)(1) . . . . . . . . . . . . . . . . . . 609
(a)(2) . . . . . . . . . . . . . . . . . . 609
(a)(3) . . . . . . . . . . . . . . . . . . 609
(a)(4) . . . . . . . . . . . . . . . . . . N/A
(b) . . . . . . . . . . . . . . . . . . . . 608,610
(b)(1) . . . . . . . . . . . . . . . . . . 608,610
Section 311(a) . . . . . . . . . . . . . . . . . . . . 613
(b) . . . . . . . . . . . . . . . . . . . . 613
(c) . . . . . . . . . . . . . . . . . . . . 613
Section 312(a) . . . . . . . . . . . . . . . . . . . . 701
(b) . . . . . . . . . . . . . . . . . . . . 702
(c) . . . . . . . . . . . . . . . . . . . . 702
Section 313(a) . . . . . . . . . . . . . . . . . . . . 703
(b)(1) . . . . . . . . . . . . . . . . . . 703
(b)(2) . . . . . . . . . . . . . . . . . . 703
(c) . . . . . . . . . . . . . . . . . . . . 703
(d) . . . . . . . . . . . . . . . . . . . . 703
Section 314(a) . . . . . . . . . . . . . . . . . . . . 704
(b) . . . . . . . . . . . . . . . . . . . . N/A
(c)(1) . . . . . . . . . . . . . . . . . . 704
(c)(2) . . . . . . . . . . . . . . . . . . 704
(c)(3) . . . . . . . . . . . . . . . . . . 704
(d) . . . . . . . . . . . . . . . . . . . . N/A
(e) . . . . . . . . . . . . . . . . . . . . 102
Section 315(a) . . . . . . . . . . . . . . . . . . . . 601
(b) . . . . . . . . . . . . . . . . . . . . 602
(c) . . . . . . . . . . . . . . . . . . . . 601
(d) . . . . . . . . . . . . . . . . . . . . 601
(e) . . . . . . . . . . . . . . . . . . . . 503
Section 316(a) (last sentence) . . . . . . . . . . . . 101
(a)(1)(A) . . . . . . . . . . . . . . . . . 512
(a)(1)(B) . . . . . . . . . . . . . . . . . 513
(a)(2) . . . . . . . . . . . . . . . . . . N/A
(b) . . . . . . . . . . . . . . . . . . . . 508
Section 317(a)(1) . . . . . . . . . . . . . . . . . . 503
(a)(2) . . . . . . . . . . . . . . . . . . 504
(b) . . . . . . . . . . . . . . . . . . . . 506
Section 318(a) . . . . . . . . . . . . . . . . . . . . 107
</TABLE>
- -------------------------
Note: This reconciliation and tie shall not, for any purpose, be deemed to be
a part of the Indenture.
<PAGE> 3
TABLE OF CONTENTS
<TABLE>
<CAPTION>
Page
----
<S> <C> <C>
ARTICLE ONE Definitions and Other Provisions of General Application . . . . . . 1
Section 101. Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Section 102. Compliance Certificates and Opinions . . . . . . . . . . . . . . . 7
Section 103. Form of Documents Delivered to Trustee . . . . . . . . . . . . . . 8
Section 104. Acts of Holders; Record Dates . . . . . . . . . . . . . . . . . . . 8
Section 105. Notices, Etc., to Trustee and Company . . . . . . . . . . . . . . . 10
Section 106. Notice to Holders; Waiver . . . . . . . . . . . . . . . . . . . . . 10
Section 107. Conflict with Trust Indenture Act . . . . . . . . . . . . . . . . . 10
Section 108. Effect of Headings and Table of Contents . . . . . . . . . . . . . 11
Section 109. Successors and Assigns . . . . . . . . . . . . . . . . . . . . . . 11
Section 110. Separability Clause . . . . . . . . . . . . . . . . . . . . . . . . 11
Section 111. Benefits of Indenture . . . . . . . . . . . . . . . . . . . . . . . 11
Section 112. Governing Law . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Section 113. Legal Holidays . . . . . . . . . . . . . . . . . . . . . . . . . . 11
ARTICLE TWO Security Forms . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Section 201. Forms Generally . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Section 202. Form of Face of Security . . . . . . . . . . . . . . . . . . . . . 12
Section 203. Form of Reverse of Security . . . . . . . . . . . . . . . . . . . . 14
Section 204. Form of Legend for Global Securities . . . . . . . . . . . . . . . 18
Section 205. Form of Coupon . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Section 206. Form of Trustee's Certificate of Authentication . . . . . . . . . . 19
ARTICLE THREE The Securities . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Section 301. Amount Unlimited; Issuable in Series . . . . . . . . . . . . . . . 19
Section 302. Denominations . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Section 303. Execution, Authentication, Delivery and Dating . . . . . . . . . . 22
</TABLE>
i
<PAGE> 4
<TABLE>
<S> <C> <C>
Section 304. Temporary Securities . . . . . . . . . . . . . . . . . . . . . . . 24
Section 305. Registration, Registration of Transfer and Exchange . . . . . . . . 25
Section 306. Mutilated, Destroyed, Lost and Stolen Securities or Coupons . . . . 27
Section 307. Payment of Interest; Interest Rights Preserved . . . . . . . . . . 28
Section 308. Persons Deemed Owners . . . . . . . . . . . . . . . . . . . . . . . 29
Section 309. Cancellation . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Section 310. Computation of Interest . . . . . . . . . . . . . . . . . . . . . . 30
Section 311. Certificate by a Person Entitled to Delivery of a Bearer Security . 30
ARTICLE FOUR Satisfaction And Discharge . . . . . . . . . . . . . . . . . . . . 30
Section 401. Satisfaction and Discharge of Indenture . . . . . . . . . . . . . . 30
Section 402. Application of Trust Money . . . . . . . . . . . . . . . . . . . . 31
ARTICLE FIVE Remedies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
Section 501. Events of Default . . . . . . . . . . . . . . . . . . . . . . . . . 32
Section 502. Acceleration of Maturity; Rescission and Annulment . . . . . . . . 33
Section 503. Collection of Indebtedness and Suits for Enforcement by Trustee . . 33
Section 504. Trustee May File Proofs of Claim . . . . . . . . . . . . . . . . . 34
Section 505. Trustee May Enforce Claims Without Possession of Securities . . . . 34
Section 506. Application of Money Collected . . . . . . . . . . . . . . . . . . 34
Section 507. Limitation on Suits . . . . . . . . . . . . . . . . . . . . . . . . 35
Section 508. Unconditional Right of Holders to Receive Principal,
Premium and Interest and to Convert . . . . . . . . . . . . . . . . 36
Section 509. Restoration of Rights and Remedies . . . . . . . . . . . . . . . . 36
Section 510. Rights and Remedies Cumulative . . . . . . . . . . . . . . . . . . 36
Section 511. Delay or Omission Not Waiver . . . . . . . . . . . . . . . . . . . 36
Section 512. Control by Holders . . . . . . . . . . . . . . . . . . . . . . . . 36
Section 513. Waiver of Past Defaults . . . . . . . . . . . . . . . . . . . . . . 37
</TABLE>
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<TABLE>
<S> <C> <C>
Section 514. Undertaking for Costs . . . . . . . . . . . . . . . . . . . . . . . 37
Section 515. Waiver of Usury, Stay or Extension Laws . . . . . . . . . . . . . . 37
ARTICLE SIX The Trustee . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
Section 601. Certain Duties and Responsibilities . . . . . . . . . . . . . . . . 37
Section 602. Notice of Defaults . . . . . . . . . . . . . . . . . . . . . . . . . 38
Section 603. Certain Rights of Trustee . . . . . . . . . . . . . . . . . . . . . 38
Section 604. Not Responsible for Recitals or Issuance of Securities . . . . . . . 39
Section 605. May Hold Securities or Coupons . . . . . . . . . . . . . . . . . . . 39
Section 606. Money Held in Trust . . . . . . . . . . . . . . . . . . . . . . . . 40
Section 607. Compensation and Reimbursement . . . . . . . . . . . . . . . . . . . 40
Section 608. Disqualification; Conflicting Interests . . . . . . . . . . . . . . 40
Section 609. Corporate Trustee Required; Eligibility . . . . . . . . . . . . . . 40
Section 610. Resignation and Removal; Appointment of Successor . . . . . . . . . 41
Section 611. Acceptance of Appointment by Successor . . . . . . . . . . . . . . . 42
Section 612. Merger, Conversion, Consolidation or Succession to Business . . . . 43
Section 613. Preferential Collection of Claims Against Company . . . . . . . . . 43
Section 614. Appointment of Authenticating Agent . . . . . . . . . . . . . . . . 43
ARTICLE SEVEN Holders' Lists and Reports by Trustee and Company . . . . . . . . . 44
Section 701. Company to Furnish Trustee Names and Addresses of Holders . . . . . 44
Section 702. Preservation of Information; Communications to Registered Holders . 45
Section 703. Reports by Trustee . . . . . . . . . . . . . . . . . . . . . . . . . 45
Section 704. Reports by Company . . . . . . . . . . . . . . . . . . . . . . . . . 45
ARTICLE EIGHT Consolidation, Merger, Conveyance, Transfer or Lease . . . . . . . . 46
Section 801. Company May Consolidate, Etc., Only on Certain Terms . . . . . . . . 46
Section 802. Successor Substituted . . . . . . . . . . . . . . . . . . . . . . . 47
</TABLE>
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<TABLE>
<S> <C> <C>
ARTICLE NINE Supplemental Indentures . . . . . . . . . . . . . . . . . . . . . . 47
Section 901. Supplemental Indentures Without Consent of Holders . . . . . . . . . 47
Section 902. Supplemental Indentures with Consent of Holders . . . . . . . . . . 48
Section 903. Execution of Supplemental Indentures . . . . . . . . . . . . . . . . 49
Section 904. Effect of Supplemental Indentures . . . . . . . . . . . . . . . . . 49
Section 905. Conformity with Trust Indenture Act . . . . . . . . . . . . . . . . 49
Section 906. Reference in Securities to Supplemental Indentures . . . . . . . . . 49
ARTICLE TEN Covenants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
Section 1001. Payment of Principal Premium and Interest . . . . . . . . . . . . . 49
Section 1002. Maintenance of Office or Agency . . . . . . . . . . . . . . . . . . 50
Section 1003. Money for Securities Payments to Be Held in Trust . . . . . . . . . 50
Section 1004. Statement by Officers as to Default . . . . . . . . . . . . . . . . 51
Section 1005. Commission Reports . . . . . . . . . . . . . . . . . . . . . . . . . 52
Section 1006. Continued Existence . . . . . . . . . . . . . . . . . . . . . . . . 52
Section 1007. Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
Section 1008. Waiver of Certain Covenants . . . . . . . . . . . . . . . . . . . . 52
ARTICLE ELEVEN Redemption of Securities . . . . . . . . . . . . . . . . . . . . . . 53
Section 1101. Applicability of Article . . . . . . . . . . . . . . . . . . . . . . 53
Section 1102. Election to Redeem; Notice to Trustee . . . . . . . . . . . . . . . 53
Section 1103. Selection by Trustee of Securities to Be Redeemed . . . . . . . . . 53
Section 1104. Notice of Redemption . . . . . . . . . . . . . . . . . . . . . . . . 53
Section 1105. Deposit of Redemption Price . . . . . . . . . . . . . . . . . . . . 54
Section 1106. Securities Payable on Redemption Date . . . . . . . . . . . . . . . 54
Section 1107. Securities Redeemed in Part . . . . . . . . . . . . . . . . . . . . 55
ARTICLE TWELVE Sinking Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
Section 1201. Applicability of Article . . . . . . . . . . . . . . . . . . . . . . 55
Section 1202. Satisfaction of Sinking Fund Payments with Securities . . . . . . . 55
Section 1203. Redemption of Securities for Sinking Fund . . . . . . . . . . . . . 56
</TABLE>
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<TABLE>
<S> <C> <C>
ARTICLE THIRTEEN Conversion of Securities . . . . . . . . . . . . . . . . . . . . . . 56
Section 1301. Conversion Privilege and Conversion Price . . . . . . . . . . . . . 56
Section 1302. Exercise of Conversion Privilege . . . . . . . . . . . . . . . . . . 57
Section 1303. Fractions of Shares . . . . . . . . . . . . . . . . . . . . . . . . 58
Section 1304. Adjustment of Conversion Price . . . . . . . . . . . . . . . . . . . 58
Section 1305. Notice of Adjustments of Conversion Price . . . . . . . . . . . . . 62
Section 1306. Notice of Certain Corporate Action . . . . . . . . . . . . . . . . . 63
Section 1307. Company to Reserve Series A Common Stock . . . . . . . . . . . . . . 64
Section 1308. Taxes on Conversions . . . . . . . . . . . . . . . . . . . . . . . . 64
Section 1309. Covenant as to Series A Common Stock . . . . . . . . . . . . . . . . 64
Section 1310. Cancellation of Converted Securities . . . . . . . . . . . . . . . . 64
Section 1311. Provisions in the Case of Consolidation, Merger or Sales of Assets . 64
Section 1312. Responsibility of Trustee . . . . . . . . . . . . . . . . . . . . . 65
ARTICLE FOURTEEN Defeasance and Covenant Defeasance . . . . . . . . . . . . . . . . . 65
Section 1401. Company's Option to Effect Defeasance or Covenant Defeasance . . . . 65
Section 1402. Defeasance and Discharge . . . . . . . . . . . . . . . . . . . . . . 65
Section 1403. Covenant Defeasance . . . . . . . . . . . . . . . . . . . . . . . . 66
Section 1404. Conditions to Defeasance or Covenant Defeasance . . . . . . . . . . 66
Section 1405. Deposited Money and U.S Government Obligations to be
Held in Trust; Other Miscellaneous Provisions . . . . . . . . . . . 67
Section 1406. Reinstatement . . . . . . . . . . . . . . . . . . . . . . . . . . . 68
ARTICLE FIFTEEN Meetings of Holders of Securities . . . . . . . . . . . . . . . . . 68
Section 1501. Purposes for Which Meetings May Be Called . . . . . . . . . . . . . 68
Section 1502. Call, Notice and Place of Meetings . . . . . . . . . . . . . . . . . 69
Section 1503. Persons Entitled to Vote at Meetings . . . . . . . . . . . . . . . . 69
Section 1504. Quorum; Action . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
Section 1505. Determination of Voting Rights; Conduct and
Adjournment of Meetings . . . . . . . . . . . . . . . . . . . . . . 70
</TABLE>
v
<PAGE> 8
THIS INDENTURE, dated as of March 19, 1996, is between THE TIMES MIRROR
COMPANY, a Delaware corporation (the "Company"), having its principal office at
Times Mirror Square, Los Angeles, California 90053, and CITIBANK, N.A, a
national banking association duly incorporated and existing under the laws of
the United States of America, as Trustee (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 unsecured
debentures, notes or other evidences of indebtedness (the "Securities"), to be
issued in one or more series 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:
For and in consideration of the premises and the purchase of the
Securities by the Holders thereof, it is mutually agreed, for the equal and
proportionate benefit of all Holders of the Securities or of the applicable
series thereof, as follows:
ARTICLE ONE
DEFINITIONS AND OTHER PROVISIONS
OF GENERAL APPLICATION
Section 101. Definitions.
For all purposes of this Indenture, except as otherwise expressly provided
or unless the context otherwise requires:
(1) the terms defined in this Article have the meanings assigned to
them in this Article and include the plural as well as the singular;
(2) all other terms used herein that are defined in the Trust
Indenture Act, either directly or by reference therein, have the meanings
assigned to them therein;
(3) all accounting terms not otherwise defined herein have the
meanings assigned to them in accordance with generally accepted
accounting principles, and, except as otherwise herein expressly
provided, the term "generally accepted accounting principles" with
respect to any computation required or permitted hereunder shall mean
such accounting principles as are generally accepted at the date of such
computation;
(4) the words "Article" and "Section" refer to an Article and
Section, respectively, of this Indenture; and
(5) the words "herein," "hereof" and "hereunder" and other words of
similar import refer to this Indenture as a whole and not to any
particular Article, Section or other subdivision.
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<PAGE> 9
"Act," when used with respect to any Holder, has the meaning specified in
Section 104.
"Affiliate" of any specified Person means any other Person directly or
indirectly controlling or controlled by or under direct or indirect common
control with such specified Person. For the purposes of this definition,
"control" when used with respect to any specified Person means the power to
direct the management and policies of such Person, directly or indirectly,
whether through the ownership of voting securities, by contract or otherwise,
and the terms "controlling" and "controlled" have meanings correlative to the
foregoing.
"Authenticating Agent" means any Person authorized by the Trustee pursuant
to Section 614 to act on behalf of the Trustee to authenticate Securities of
one or more series.
"Authorized Newspaper" means a newspaper in the English language or, at
the option of the Company, in an official language of the country of
publication, customarily published on each Business Day, whether or not
published on Saturdays, Sundays or holidays, and of general circulation in the
place in connection with which the term is used or in the financial community
at such place. Where successive publications are required to be made in
Authorized Newspapers, the successive publications may be made in the same or
in different Authorized Newspapers meeting the foregoing requirements and in
each case on any Business Day.
"Bearer Security" means any Security, in the form (to the extent
applicable thereto) established pursuant to Section 201, which is payable to
the bearer.
"Board of Directors" means either the board of directors of the Company or
any duly authorized committee of that board.
"Board Resolution" means a copy of a resolution certified by the Secretary
or an Assistant Secretary of the Company to have been duly adopted by the Board
of Directors and to be in full force and effect on the date of such
certification, and delivered to the Trustee.
"Business Day," when used with respect to any Place of Payment, means each
Monday, Tuesday, Wednesday, Thursday and Friday that is not a day on which
banking institutions in that Place of Payment, or the city in which the
Corporate Trust Office of the Trustee is located, are authorized or obligated
by law or executive order to close.
"Cedel S.A." means Centrale de Livraison de Valeurs Mobilieres S.A.
"Closing Price" for any day means the last reported sale price of the
Series A Common Stock regular way on such day or, in case no such reported sale
takes place on such day, the average of the reported closing bid and asked
prices regular way on such day, in either case on the New York Stock Exchange
or, if the Series A Common Stock is not listed or admitted to trading on such
exchange, on the principal national securities exchange on which the Series A
Common Stock is listed or admitted to trading or, if not listed or admitted to
trading on any national securities exchange, on the Nasdaq National Market or,
if the Series A Common Stock is not listed or admitted to trading on any
national securities exchange or quoted on such National Market, the average of
the closing bid and asked prices in the over-the-counter market as furnished by
any New York Stock Exchange member firm selected from time to time by the
Company for that purpose. If the Series A Common Stock is not listed or
admitted to trading on any national securities exchange, quoted on such
National Market or listed in any list of bid and asked prices in the
over-the-counter market, "Closing Price" shall mean the fair market value of
the Series A Common Stock as determined in good faith by the Board of
Directors.
2
<PAGE> 10
"Commission" means the Securities and Exchange Commission, as from time to
time constituted, created under the Exchange Act or, if at any time after the
execution of this instrument such Commission is not existing and performing the
duties now assigned to it under the Trust Indenture Act, then the body
performing such duties at such time.
"Company" means the Person named as the "Company" in the first paragraph
of this instrument until a successor Person shall have become such pursuant to
the applicable provisions of this Indenture, and thereafter "Company" shall
mean such successor Person.
"Company Request" or "Company Order" means a written request or order
signed in the name of the Company by its Chairman of the Board, its President
or a Vice President, and by its Treasurer, an Assistant Treasurer, its
Secretary or an Assistant Secretary, and delivered to the Trustee.
"Corporate Trust Office" means the office of the Trustee at which the
corporate trust business of the Trustee shall, at any particular time, be
principally administered; which office is, at the date as of which this
Indenture is dated, located at 120 Wall Street, New York, New York 10043,
except that for purposes of the presentation of Securities for payment or
registration of transfer or exchange, such term means the office or agency of
the Trustee in said city at which at any particular time the corporate agency
business of the Trustee shall be conducted, which office at the date of
execution of this Indenture is located at 111 Wall Street, 5th Floor, New York,
New York 10043.
"Corporation" means a corporation, association, company, joint stock
company or business trust.
"Coupon" means any interest coupon of a Bearer Security.
"Covenant Defeasance" has the meaning specified in Section 1403.
"Defaulted Interest" has the meaning specified in Section 307.
"Defeasance" has the meaning specified in Section 1402.
"Defeasible Series" has the meaning specified in Section 1401.
"Depositary" means, with respect to Securities of any series issuable in
whole or in part in the form of one or more Global Securities, the Person
designated to act as Depositary for such Securities as contemplated by Section
301 until a successor Depositary shall have become such pursuant to the
applicable provisions of this Indenture, and thereafter "Depositary" shall mean
or include each Person who is then a Depositary hereunder, and if at any time
there is more than one such Person, "Depositary" as used with respect to the
Securities of any series shall mean each Depositary with respect to Securities
of that series.
"Dollar" or "$" means a dollar or other equivalent unit in such coin or
currency of the United States as at the time shall be legal tender for the
payment of public and private debts.
"ECU" means the European Currency Unit as defined and revised from time to
time by the Council of the European Communities.
"Euro-clear" means the operator of the Euro-clear System.
"Event of Default" has the meaning specified in Section 501.
3
<PAGE> 11
"Exchange Act" means the Securities Exchange Act of 1934, as amended from
time to time, and any statute successor thereto.
"Exchange Rate" shall have the meaning specified as contemplated in
Section 301.
"Exchange Rate Agent" shall have the meaning specified as contemplated in
Section 301.
"Exchange Rate Officer's Certificate," with respect to any date for the
payment of principal of (and premium, if any) and interest on any series of
Securities, means a certificate setting forth the applicable Exchange Rate and
the amounts payable in Dollars and Foreign Currencies in respect of the
principal of (and premium, if any) and interest on Securities denominated in
ECU, any other composite currency or Foreign Currency, and signed by the
Chairman of the Board, the President, the Treasurer or any Assistant Treasurer
of the Company or the Exchange Rate Agent appointed pursuant to Section 301 and
delivered to the Trustee.
"Foreign Currency" means a currency issued by the government of any
country other than the United States.
"Global Security" means a Security that evidences all or part of the
Securities of any series and is authenticated and delivered to, and registered
in the name of, the Depositary for such Securities or a nominee thereof.
"Holder" means, in the case of any Registered Security, a Person in whose
name a Security is registered in the Security Register and, in the case of any
Bearer Security, the bearer thereof and, when used with respect to any coupon,
the bearer thereof.
"Indenture" means this instrument as originally executed or as it may from
time to time be supplemented or amended by one or more indentures supplemental
hereto entered into pursuant to the applicable provisions hereof, including,
for all purposes of this instrument and any such supplemental indenture, the
provisions of the Trust Indenture Act that are deemed to be a part of and
govern this instrument and any such supplemental indenture, respectively. The
term "Indenture" shall also include the terms of a particular series of
Securities established as contemplated by Section 301.
"Interest," when used with respect to an Original Issue Discount Security
which by its terms bears interest only after Maturity, means interest payable
after Maturity.
"Interest Payment Date," when used with respect to any Security, means the
Stated Maturity of an installment of interest on such Security.
"Maturity," when used with respect to any Security, means the date on
which the principal of such Security or an installment of principal becomes due
and payable as therein or herein provided, whether at the Stated Maturity or by
declaration of acceleration, call for redemption or otherwise.
"Officers' Certificate" means a certificate signed by the Chairman of the
Board, the Chief Executive Officer, the President or a Vice President, and by
the Treasurer, an Assistant Treasurer, the Secretary or an Assistant Secretary,
of the Company, and delivered to the Trustee. One of the officers signing an
Officers' Certificate given pursuant to Section 1004 shall be the principal
executive, financial or accounting officer of the Company.
"Opinion of Counsel" means a written opinion of counsel reasonably
acceptable to the Trustee, who may be counsel for the Company.
4
<PAGE> 12
"Original Issue Discount Security" means any Security that provides for an
amount less than the principal amount thereof to be due and payable upon a
declaration of acceleration of the Maturity thereof pursuant to Section 502.
"Outstanding," when used with respect to Securities, means, as of the date
of determination, all Securities theretofore authenticated and delivered under
this Indenture, except:
(1) Securities theretofore canceled by the Trustee or delivered to
the Trustee for cancellation;
(2) Securities for whose payment or redemption money in the
necessary amount has been theretofore deposited with the Trustee or any
Paying Agent (other than the Company) in trust or set aside and
segregated in trust by the Company (if the Company shall act as its own
Paying Agent) for the Holders of such Securities; provided, however,
that, if such Securities are to be redeemed, notice of such redemption
has been duly given pursuant to this Indenture or provision therefor
satisfactory to the Trustee has been made;
(3) Securities as to which Defeasance has been effected pursuant to
Section 1402; and
(4) Securities that have been paid pursuant to Section 306 or in
exchange for or in lieu of which other Securities have been authenticated
and delivered pursuant to this Indenture, other than any such Securities
in respect of which there shall have been presented to the Trustee proof
satisfactory to it that such Securities are held by a bona fide purchaser
in whose hands such Securities are valid obligations of the Company;
provided, however, that in determining whether the Holders of the requisite
principal amount of the Outstanding Securities have given any request, demand,
authorization, direction, notice, consent or waiver hereunder, (A) the
principal amount of an Original Issue Discount Security that shall be deemed to
be Outstanding shall be the amount of the principal thereof that would be due
and payable as of the date of such determination upon acceleration of the
Maturity thereof to such date pursuant to Section 502, (B) the principal amount
of a Security denominated in one or more foreign currencies or currency units
shall be the U.S. dollar equivalent, determined in the manner provided as
contemplated by Section 301 on the date of original issuance of such Security,
of the principal amount (or, in the case of an Original Issue Discount
Security, the U.S. dollar equivalent on the date of original issuance of such
Security of the amount determined as provided in Clause (A) above) of such
Security, and (C) Securities owned by the Company or any other obligor upon the
Securities or any Subsidiary of the Company or of such other obligor shall be
disregarded and deemed not to be Outstanding, except that, in determining
whether the Trustee shall be protected in relying upon any such request,
demand, authorization, direction, notice, consent or waiver, only Securities
that the Trustee knows to be so owned shall be so disregarded. Securities so
owned that have been pledged in good faith may be regarded as Outstanding if
the pledgee establishes to the satisfaction of the Trustee the pledgee's right
so to act with respect to such Securities and that the pledgee is not the
Company or any other obligor upon the Securities or any Subsidiary of the
Company or of such other obligor.
"Paying Agent" means any Person authorized by the Company to pay the
principal of or any premium or interest on any Securities on behalf of the
Company.
"Person" means any individual, corporation, partnership, joint venture,
association, joint-stock company, trust, unincorporated organization or
government or any agency or political subdivision thereof.
5
<PAGE> 13
"Place of Payment," when used with respect to the Securities of any
series, means the place or places where the principal of and any premium and
interest on the Securities of that series are payable as specified as
contemplated by Section 301.
"Predecessor Security" of any particular Security means every previous
Security evidencing all or a portion of the same debt as evidenced by such
particular Security; and, for the purposes of this definition, any Security
authenticated and delivered under Section 306 in exchange for or in lieu of a
mutilated, destroyed, lost or stolen Security shall be deemed to evidence the
same debt as the mutilated, destroyed, lost or stolen Security.
"Redemption Date," when used with respect to any Security to be redeemed,
means the date fixed for such redemption by or pursuant to this Indenture.
"Redemption Price," when used with respect to any Security to be redeemed,
means the price at which it is to be redeemed pursuant to this Indenture.
"Registered Security" means any Security in the form (to the extent
applicable thereto) established pursuant to Section 201, which is registered on
the books of the Security Registrar.
"Regular Record Date" for the interest payable on any Interest Payment
Date on the Securities of any series means the date specified for that purpose
as contemplated by Section 301.
"Responsible Officer," when used with respect to the Trustee, means the
chairman of the board of directors, the chairman or any vice-chairman of the
executive committee of the board of directors, the president, any vice
president, any trust officer, any senior trust officer, the treasurer, any
assistant treasurer, the controller or any assistant controller or any other
officer of the Trustee customarily performing functions similar to those
performed by any of the above designated officers and also means, with respect
to a particular corporate trust matter, any other officer to whom such matter
is referred because of his or her knowledge of and familiarity with the
particular subject.
"Securities" has the meaning stated in the first recital of this Indenture
and more particularly means any Securities authenticated and delivered under
this Indenture.
"Security Register" and "Security Registrar" have the respective meanings
specified in Section 305.
"Series A Common Stock" means Series A Common Stock, par value $1.00 per
share, of the Company.
"Special Record Date" for the payment of any Defaulted Interest means a
date fixed by the Trustee pursuant to Section 307.
"Stated Maturity," when used with respect to any Security or any
installment of principal thereof or interest thereon, means the date specified
in such Security as the fixed date on which the principal of such Security or
such installment of principal or interest is due and payable.
"Subsidiary" means a corporation more than 50% of the outstanding voting
stock of which is owned, directly or indirectly, by the Company or by one or
more other Subsidiaries, or by the Company and one or more other Subsidiaries.
For the purposes of this definition, "voting stock" means stock that ordinarily
has voting power for the election of directors, whether at all
6
<PAGE> 14
times or only so long as no senior class of stock has such voting power by
reason of any contingency.
"Trading Day" means, with respect to the Series A Common Stock, each
Monday, Tuesday, Wednesday, Thursday and Friday, other than any day on which
securities are not traded on the exchange or market on which the Series A
Common Stock is traded.
"Trustee" means the Person named as the "Trustee" in the first paragraph
of this instrument until a successor Trustee shall have become such pursuant to
the applicable provisions of this Indenture, and thereafter "Trustee" shall
mean or include each Person who is then a Trustee hereunder, and if at any time
there is more than one such Person, "Trustee" as used with respect to the
Securities of any series shall mean each Trustee with respect to Securities of
that series.
"Trust Indenture Act" means the Trust Indenture Act of 1939, as amended by
the Trust Indenture Reform Act of 1990 and as in force at the date as of which
this instrument was executed; provided, however, that in the event the Trust
Indenture Act of 1939 is amended after such date, "Trust Indenture Act" means,
to the extent required by any such amendment, the Trust Indenture Act of 1939
as so amended.
"United States" means the United States of America, its territories, its
possessions (including the Commonwealth of Puerto Rico), 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 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" has the meaning specified in Section 1304.
"Vice President," when used with respect to the Company or the Trustee,
means any vice president, whether or not designated by a number or a word or
words added before or after the title "vice president."
Section 102. Compliance Certificates and Opinions.
Upon any application or request by the Company to the Trustee to take any
action under any provision of this Indenture, the Company shall furnish to the
Trustee such certificates and opinions as may be required under the Trust
Indenture Act. Each such certificate or opinion shall be given in the form of
an Officers' Certificate, if to be given by an officer of the Company, or an
Opinion of Counsel, if to be given by counsel, and shall comply with the
requirements of the Trust Indenture Act and any other requirements set forth in
this Indenture.
Every certificate or opinion with respect to compliance with a condition
or covenant provided for in this Indenture shall include
(1) a statement that each individual signing such certificate or
opinion has read such covenant or condition and the definitions herein
relating thereto;
(2) a brief statement as to the nature and scope of the examination
or investigation upon which the statements or opinions contained in such
certificate or opinion are based;
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<PAGE> 15
(3) a statement that, in the opinion of each such individual, he or
she has made such examination or investigation as is necessary to enable
him or her to express an informed opinion as to whether or not such
covenant or condition has been complied with; and
(4) a statement as to whether, in the opinion of each such
individual, such condition or covenant has been complied with.
Section 103. Form of Documents Delivered to Trustee.
In any case where several matters are required to be certified by, or
covered by an opinion of, any specified Person, it is not necessary that all
such matters be certified by, or covered by the opinion of, only one such
Person, or that they be so certified or covered by only one document, but one
such Person may certify or give an opinion with respect to some matters and one
or more other such Persons as to other matters, and any such Person may certify
or give an opinion as to such matters in one or several documents.
Any certificate or opinion of an officer of the Company may be based,
insofar as it relates to legal matters, upon a certificate or opinion of, or
representations by, counsel, unless such officer knows, or in the exercise of
reasonable care should know, that the certificate or opinion or representations
with respect to the matters upon which his or her certificate or opinion is
based are erroneous. Any such certificate or opinion of counsel may be based,
insofar as it relates to factual matters, upon a certificate or opinion of, or
representations by, an officer or officers of the Company stating that the
information with respect to such factual matters is in the possession of the
Company, unless such counsel knows, or in the exercise of reasonable care
should know, that the certificate or opinion or representations with respect to
such matters are erroneous.
Where any Person is required to make, give or execute two or more
applications, requests, consents, certificates, statements, opinions or other
instruments under this Indenture, they may, but need not, be consolidated and
form one instrument.
Section 104. Acts of Holders; Record Dates.
Any request, demand, authorization, direction, notice, consent, waiver or
other action provided or permitted by this Indenture to be given or taken by
Holders may be embodied in and evidenced by one or more instruments of
substantially similar tenor signed by such Holders in person or by an agent
duly appointed in writing. If Securities of a series are issuable in whole or
in part as Bearer Securities, any request, demand, authorization, direction,
notice, consent, waiver or other action provided by this Indenture to be given
or taken by Holders may, alternatively, be embodied in and evidenced by the
record Holders of Securities voting in favor thereof, either in person or by
proxies duly appointed in writing, at any meeting of Holders of Securities duly
called and held in accordance with the provisions of Article Fifteen, or a
combination of such instruments and any such record. Except as herein
otherwise expressly provided, such action shall become effective when such
instrument or instruments are delivered to the Trustee and, where it is hereby
expressly required, to the Company. Such instrument or instruments (and the
action embodied therein and evidenced thereby) are herein sometimes referred to
as the "Act" of the Holders signing such instrument or instruments. Proof of
execution of any such instrument or of a writing appointing any such agent
shall be sufficient for any purpose of this Indenture and (subject to Section
601) conclusive in favor of the Trustee and the Company, if made in the manner
provided in this Section.
The fact and date of the execution by any Person of any such instrument or
writing may be proved by the affidavit of a witness of such execution or by a
certificate of a notary public
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<PAGE> 16
or other officer authorized by law to take acknowledgments of deeds, certifying
that the individual signing such instrument or writing acknowledged to him or
her the execution thereof. Where such execution is by a signer acting in a
capacity other than his or her individual capacity, such certificate or
affidavit shall also constitute sufficient proof of his or her authority. The
fact and date of the execution of any such instrument or writing, or the
authority of the Person executing the same, may also be proved in any other
manner that the Trustee deems sufficient.
The ownership of Registered Securities shall be proved by the Security
Register.
The principal amount and serial numbers of Bearer Securities held by any
Person, and the date of holding the same, may be proved by the production of
such Bearer Securities or by a certificate executed, as Depositary, by any
trust company, bank, banker or other depositary, wherever situated, if such
certificate shall be deemed by the Trustee to be satisfactory, showing that as
of the date therein mentioned such Person had on deposit with such Depositary,
or exhibited to it, the Bearer Securities in the amount and with the serial
numbers therein described, or such facts may be proved by the certificate or
affidavit of the Person holding such Bearer Securities, if such certificate or
affidavit is deemed by the Trustee to be satisfactory. The Trustee of the
Company may assume that such ownership of any Bearer Security continues until
(1) another certificate or affidavit bearing a later date issued in respect of
the same Bearer Security is produced, (2) such Bearer Security is produced to
the Trustee by some other Person, (3) such Bearer Security is surrendered in
exchange for a Registered Security, or (4) such Bearer Security is no longer
Outstanding.
The fact and date of execution of any such instrument or writing, the
authority of the Person executing the same and the principal amount and serial
numbers of Bearer Securities held by the Person so executing such instrument or
writing and the date of holding the same may also be proved in any other manner
that the Trustee deems sufficient, and the Trustee may in any instance require
further proof with respect to any of the matters referred to in this Section
104.
Any request, demand, authorization, direction, notice, consent, waiver or
other Act of the Holder of any Security shall bind every future Holder of the
same Security and the Holder of every Security issued upon the registration of
transfer thereof or in exchange therefor or in lieu thereof in respect of
anything done, omitted or suffered to be done by the Trustee or the Company in
reliance thereon, whether or not notation of such action is made upon such
Security.
The Company may, in the circumstances permitted by the Trust Indenture
Act, set any day as the record date for the purpose of determining the Holders
of Outstanding Securities of any series entitled to give or take any request,
demand, authorization, direction, notice, consent, waiver or other action or
permitted by this Indenture to be given or taken by Holders of Securities of
such series. If not set by the Company prior to the first solicitation of a
Holder of Outstanding Securities of such series made by any Person in respect
of any such action, or, in the case of any such vote, prior to such vote, the
record date for any such action or vote shall be the 30th day (or, if later,
the date of the most recent list of Holders required to be provided pursuant to
Section 701) prior to such first solicitation or vote, as the case may be.
With regard to any record date set pursuant to this paragraph, the Holders of
Outstanding Securities of the relevant series on such record date (or their
duly appointed agents), and only such Persons, shall be entitled to give or
take the relevant action, whether or not such Holders remain Holders after such
record date.
Without limiting the foregoing, a Holder entitled hereunder to give or
take any action hereunder with regard to any particular Security may do so with
regard to all or any part of the principal amount of such Security or by one or
more duly appointed agents each of whom may do so pursuant to such appointment
with regard to all or any different part of such principal amount.
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<PAGE> 17
Section 105. Notices, Etc., to Trustee and Company.
Any request, demand, authorization, direction, notice, consent, waiver or
Act of Holders or other document provided or permitted by this Indenture to be
made upon, given or furnished to, or filed with,
(1) the Trustee by any Holder or by the Company shall be sufficient
for every purpose hereunder if made, given, furnished or filed in writing
to or with the Trustee at its Corporate Trust Office, Attention:
Corporate Trust Department, or
(2) the Company by the Trustee or by any Holder shall be sufficient
for every purpose hereunder (unless otherwise herein expressly provided)
if in writing and mailed, first-class postage prepaid, to the Company
addressed to it to the attention of its Treasurer at the address of its
principal office specified in the first paragraph of this instrument or
at any other address previously furnished in writing to the Trustee by
the Company.
Section 106. Notice to Holders; Waiver.
Where this Indenture provides for notice to Holders of any event, such
notice shall be sufficiently given (unless otherwise herein expressly provided)
if in writing and mailed, first-class postage prepaid, to each Holder affected
by such event, at his or her address as it appears in the Security Register,
not later than the latest date (if any), and not earlier than the earliest date
(if any), prescribed for the giving of such notice. In any case where notice
to Holders is given by mail, neither the failure to mail such notice, nor any
defect in any notice so mailed, to any particular Holder shall affect the
sufficiency of such notice with respect to other Holders. Notice shall be
sufficiently given to Holders of Bearer Securities if published in an
Authorized Newspaper in the City of New York and in such other city or cities
as may be specified in the Securities on at least two Business Days, the first
such publication to be not earlier than the earliest date, and not later than
the latest date, prescribed for the giving of such notice. Where this
Indenture provides for notice in any manner, such notice may be waived in
writing by the Person entitled to receive such notice, either before or after
the event, and such waiver shall be the equivalent of such notice. Waivers of
notice by Holders shall be filed with the Trustee, but such filing shall not be
a condition precedent to the validity of any action taken in reliance upon such
waiver.
In case by reason of the suspension of regular mail service or by reason
of any other cause it shall be impractical to give such notice by mail, then
such notification as shall be made with the approval of the Trustee shall
constitute a sufficient notification for every purpose hereunder.
In case by reason of the suspension of publication of any Authorized
Newspaper or Authorized Newspapers or by reason of any other cause it shall be
impracticable to publish any notice to Holders of Bearer Securities as provided
above, then such notification to Holders of Bearer Securities as shall be given
with the approval of the Trustee shall constitute sufficient notice to such
Holders for every purpose hereunder. Neither the failure to give notice by
publication to Holders of Bearer Securities as provided, nor any defect in any
notice so published, shall affect the sufficiency of any notice to Holders of
Registered Securities given as provided herein.
Any request, demand, authorization, direction, notice, consent or waiver
required or permitted under this Indenture shall be in the English language,
except that any published notice may be in an official language of the country
of publication.
Section 107. Conflict with Trust Indenture Act.
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<PAGE> 18
If any provision hereof limits, qualifies or conflicts with a provision of
the Trust Indenture Act that is required under such Act to be a part of and
govern this Indenture, the latter provision shall control. If any provision of
this Indenture modifies or excludes any provision of the Trust Indenture Act
that may be so modified or excluded, the latter provision shall be deemed to
apply to this Indenture as so modified or to be excluded, as the case may be.
Section 108. Effect of Headings and Table of Contents.
The Article and Section headings herein and the Table of Contents are for
convenience only and shall not affect the construction hereof.
Section 109. Successors and Assigns.
All covenants and agreements in this Indenture by the Company shall bind
its successors and assigns, whether so expressed or not.
Section 110. Separability Clause.
In case any provision in this Indenture or in the Securities shall be
invalid, illegal or unenforceable, the validity, legality and enforceability of
the remaining provisions shall not in any way be affected or impaired thereby.
Section 111. Benefits of Indenture.
Nothing in this Indenture or in the Securities, express or implied, shall
give to any Person, other than the parties hereto and their successors
hereunder and the Holders, any benefit or any legal or equitable right, remedy
or claim under this Indenture.
Section 112. Governing Law.
This Indenture and the Securities shall be governed by and construed in
accordance with the law of the State of New York, but without regard to
principles of conflicts of laws.
Section 113. Legal Holidays.
In any case where any Interest Payment Date, Redemption Date, Repurchase
Date or Stated Maturity of any Security shall not be a Business Day at any
Place of Payment (or the City in which the Corporate Trust Office of the
Trustee is located), then unless otherwise provided in the Securities of any
series, payment of interest or principal (and premium, if any) need not be made
at such Place of Payment on such date, but may be made on the next succeeding
Business Day at such Place of Payment (provided such Business Day is a Business
Day in the City in which the Corporate Trust Office of the Trustee is located)
with the same force and effect as if made on the Interest Payment Date,
Redemption Date, Repurchase Date, or at the Stated Maturity; provided, however,
that no interest shall accrue for the period from and after such Interest
Payment Date, Redemption Date, Repurchase Date or Stated Maturity, as the case
may be.
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<PAGE> 19
ARTICLE TWO
SECURITY FORMS
Section 201. Forms Generally.
The Securities of each series (including, with respect to Bearer
Securities, the coupons related thereto) and the Trustee's certificate of
authentication thereon shall be in substantially the form set forth in this
Article, or in such other form as shall be established by or pursuant to a
Board Resolution or in one or more indentures supplemental hereto, in each case
with such appropriate insertions, omissions, substitutions and other variations
as are required or permitted by this Indenture, and may have such letters,
numbers or other marks of identification and such legends or endorsements
placed thereon as may be required to comply with the rules of any securities
exchange or as may, consistently herewith, be determined by the officers
executing such Securities, as evidenced by their execution of the Securities.
If the form of Securities of any series is established by action taken pursuant
to a Board Resolution, a copy of an appropriate record of such action shall be
certified by the Secretary or an Assistant Secretary of the Company and
delivered to the Trustee at or prior to the delivery of the Company Order
contemplated by Section 303 for the authentication and delivery of such
Securities.
Unless otherwise specified in accordance with Section 301, Bearer
Securities shall have coupons attached.
The definitive Securities shall be printed, lithographed or engraved on
steel engraved borders or may be produced in any other manner, all as
determined by the officers executing such Securities, as evidenced by their
execution of such Securities.
Global Securities may be issued in either registered or bearer form and in
either temporary or permanent form.
Section 202. Form of Face of Security.
[INSERT ANY LEGEND REQUIRED BY THE INTERNAL REVENUE CODE AND THE
REGULATIONS THEREUNDER]
THE TIMES MIRROR COMPANY
[Title of Security]
No. _______ [$]________________
THE TIMES MIRROR COMPANY, a Delaware corporation (herein called the
"Company," which term includes any successor Person under the Indenture
hereinafter referred to), for value received, hereby promises to pay to
[____________________________, or registered assigns,] [bearer upon
presentation and surrender of this Security] the principal sum of
___________________________ Dollars ($_________) on _______________ [if the
Security is to bear interest prior to Maturity, insert -- , and to pay interest
thereon from __________ or from the most recent Interest Payment Date to which
interest has been paid or duly provided for, [annually] [semi-annually]
[quarterly] on ____________ [and] [,__________, _____________ and
] in each year, commencing _______________, at [if the Security is to bear
interest at a fixed rate, insert --_the rate of ____% per annum] [if the
Security is to bear interest at a variable rate, insert -- the rate or rates as
determined herein], until the principal hereof is paid or made available for
payment [if applicable, insert -- , and (to the extent that the payment of such
interest shall be legally enforceable) at the rate of ___% per annum on any
overdue principal and
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<PAGE> 20
premium and on any overdue installment of interest]. The interest so payable,
and punctually paid or duly provided for, on any Interest Payment Date will, as
provided in such Indenture, be paid to [the Person in whose name this Security
(or one or more Predecessor Securities) is registered at the close of business
on the Regular Record Date for such interest, which shall be the __________ or
__________ (whether or not a Business Day), as the case may be, next preceding
such Interest Payment Date] [bearer upon presentation and surrender of the
interest coupons attached hereto as they severally mature]. [Any such interest
not so punctually paid or duly provided for will forthwith cease to be payable
to the Holder on such Regular Record Date and may either be paid to the Person
in whose name this Security (or one or more Predecessor Securities) is
registered at the close of business on a Special Record Date for the payment of
such Defaulted Interest to be fixed by the Trustee, notice whereof shall be
given to Holders of Securities of this series not less than 10 days prior to
such Special Record Date, or be paid at any time in any other lawful manner not
inconsistent with the requirements of any securities exchange on which the
Securities of this series may be listed, and upon such notice as may be
required by such exchange, all as more fully provided in said Indenture].
[If the Security is to bear interest at a variable rate, insert --
[appropriate provisions with regard to the determination of the applicable
interest rate or rates based upon the prime rate, the LIBOR rate, the secondary
market rate for T-Bills or United States dollar domestic certificates of
deposit, the auction rate for T-Bills or such other rate as selected]]
[If the Security is not to bear interest prior to Maturity, insert -- The
principal of this Security shall not bear interest except in the case of a
default in payment of principal upon acceleration, upon redemption or at Stated
Maturity and in such case the overdue principal of this Security shall bear
interest at the rate of ___% per annum (to the extent that the payment of such
interest shall be legally enforceable), which shall accrue from the date of
such default in payment to the date payment of such principal has been made or
duly provided for. Interest on any overdue principal shall be paid on demand.
Any such interest on any overdue principal that is not so paid on demand shall
bear interest at the rate of ___% per annum (to the extent that the payment of
such interest shall be legally enforceable), which shall accrue from the date
of such demand for payment to the date payment of such interest has been made
or duly provided for, and such interest shall also be payable on demand.]
Payment of the principal of (and premium, if any) [if applicable, insert
- -- any such] and interest on this Security will be made at the office or agency
of the Company maintained for that purpose in ______________, in such coin or
currency of the United States of America [if applicable, specify other
currency] as at the time of payment is legal tender for payment of public and
private debts [if applicable, insert -- ; provided, however, that at the option
of the Company payment of interest may be made by check mailed to the address
of the Person entitled thereto as such address shall appear in the Security
Register].
[No payment of principal (and premium, if any) or interest with respect to
any Bearer Securities shall be made at the Corporate Trust Office of the
Trustee under the Indenture or at any other office or agency of the Company in
the United States or by transfer to an account in, or by check mailed to an
address in, the United States. Notwithstanding the foregoing, payment of
principal of (and premium, if any) and interest in Dollars on any Bearer
Securities and payments of any such additional amounts may be made at the
Corporate Trust Office of the Trustee, if (but only if) payment of the full
amount of such principal, premium, interest or additional amounts, as the case
may be, at all offices located outside the United States through which payment
is to be made in accordance with the Indenture is illegal or effectively
precluded because of the imposition of exchange controls or other similar
restrictions.]
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<PAGE> 21
Reference is hereby made to the further provisions of this Security set
forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.
Unless the certificate of authentication hereon has been executed by the
Trustee referred to on the reverse hereof by manual signature, [neither] this
Security [nor any coupon attached hereto] shall [not] be entitled to any
benefit under the Indenture or be valid or obligatory for any purpose.
IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed under its corporate seal.
Dated:
THE TIMES MIRROR COMPANY
By: __________________________________
Attest:
__________________________________
Section 203. Form of Reverse of Security.
This Security is one of a duly authorized issue of securities of the
Company (herein called the "Securities"), issued and to be issued in one or
more series under an Indenture, dated as of _______________ and all indentures
supplemental thereto (herein called the "Indenture"), between the Company and
__________________, as Trustee (herein called the "Trustee", which term
includes any successor trustee under the Indenture), to which Indenture
reference is hereby made for a statement of the respective rights, limitations
of rights, duties and immunities thereunder of the Company, the Trustee and the
Holders of the Securities and of the terms upon which the Securities are, and
are to be, authenticated and delivered. This Security is one of the series
designated on the face hereof [if applicable, insert --, limited in aggregate
principal amount to $___________]. [If applicable, insert -- The Securities of
this series are subject to redemption upon not less than 30 nor more than 60
days' notice by mail, (1) on _____________ in any year commencing with the year
____ and ending with the year _____ through operation of the sinking fund for
this series at the Redemption Prices for redemption through operation of the
sinking fund (expressed as percentages of the principal amount) set forth in
the table below, and (2) at any time [if applicable, insert -- on or after
___________], as a whole or in part, at the election of the Company, at the
Redemption Prices for redemption otherwise than through operation of the
sinking fund (expressed as percentages of the principal amount) set forth in
the table below: If redeemed during the 12-month period beginning ____________
of the years indicated,
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<PAGE> 22
<TABLE>
<CAPTION>
Redemption Price
For Redemption Redemption Price for
Through Operation Redemption Otherwise
of the Than Through Operation
Year Sinking Fund of the Sinking Fund
- ---- ------------ ---------------------
<S> <C> <C>
</TABLE>
and thereafter at a Redemption Price equal to ____% of the principal amount,
together in the case of any such redemption (whether through operation of the
sinking fund or otherwise) with accrued interest to the Redemption Date, but
interest installments whose Stated Maturity is on or prior to such Redemption
Date will be payable [upon presentation and surrender of coupons for such
interest] [to the Holders of such Securities, or one or more Predecessor
Securities, of record at the close of business on the relevant Regular Record
Dates referred to on the face hereof,] all as provided in the Indenture.]
[If applicable, insert -- Notwithstanding the foregoing, the Company may
not, prior to __________ redeem any Securities of this series as contemplated
by [if applicable, -- Clause (2) of] the preceding paragraph as a part of, or
in anticipation of, any refunding operation by the application, directly or
indirectly, of moneys borrowed having an interest cost to the Company
(calculated in accordance with generally accepted financial practice) of less
than _____% per annum.]
[The sinking fund for this series provides for the redemption on
__________ in each year beginning with the year ____ and ending with the year
____ of [if applicable, -- not less than $___________ ("mandatory sinking
fund") and not more than] $_________ aggregate principal amount of Securities
of this series. Securities of this series acquired or redeemed by the Company
otherwise than through [if applicable, -- mandatory] sinking fund payments may
be credited against subsequent [if applicable, -- mandatory] sinking fund
payments otherwise required to be made [if applicable, -- in the inverse order
in which they become due].]
[If the Security is subject to [redemption] [or] [conversion] in part of
any kind, insert -- In the event of [redemption] or [conversion] of this
Security in part only, a new Security or Securities of this series and of like
tenor for the [unredeemed[ [or] [unconverted] portion hereof will be issued in
the name of the Holder hereof upon the cancellation hereof.]
[If the Security is subject to conversion, insert -- Subject to and upon
compliance with the provisions of the Indenture, the Holder of this Security is
entitled, at his or her option, at any time on or before the close of business
on _________, or in case this Security or a portion hereof is called for
redemption, then in respect of this Security or such portion hereof until and
including, but (unless the Company defaults in making the payment due upon
redemption or repurchase) not after, the close of business on the Redemption
Date or the repurchase date, to convert this Security (or any portion of the
principal amount hereof which is $________ or an integral multiple thereof), at
the principal amount hereof, or of such portion, into fully paid and
non-assessable shares (calculated as to each conversion to the nearest 1/100 of
a share) of Series A Common Stock of the Company at a conversion price equal to
$________ aggregate principal amount of Securities for each share of Series A
Common Stock (or at the current adjusted conversion price if an adjustment has
been made as provided in the Indenture) by surrender of this Security, duly
endorsed or assigned to the Company or in blank, to the Company at its office
or agency in [Los Angeles, California] [New York, New York,] [or to such office
or agency outside the United States as the Company may designate] accompanied
by [all unmatured coupons and any matured coupons in default attached hereto
and] written notice to the Company that (i) the
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<PAGE> 23
Holder hereof elects to convert this Security, or if less than the entire
principal amount hereof is to be converted, the portion hereof to be converted,
and (ii) the name or names (with addresses) in which the certificate or
certificates for shares of Series A Common Stock issuable on such conversion
shall be issued. [In case such surrender shall be made during the period from
the close of business on any Regular Record Date next preceding any Interest
Payment Date to the opening of business on such Interest Payment Date (unless
this Security or the portion thereof being converted has been called for
redemption, or is to be repurchased, on such Interest Payment Date or on a
Redemption Date or a repurchase date within such period), this Security shall
also accompanied by payment of an amount equal to the interest payable on such
Interest Payment Date on the principal amount of this Security then being
converted (or, if this Security was issued in exchange for a Bearer Security
after the close of business on such Regular Record Date, by surrender of one or
more coupons relating to such Interest Payment Date or by both payment in such
funds and surrender of such coupon or coupons, in either case, in an amount
equal to the interest payable on such Interest Payment Date on the principal
amount of this Security then being converted).] [Subject to the aforesaid
requirement for payment and, in the case of a conversion after the Regular
Record Date next preceding any Interest Payment Date and on or before such
Interest Payment Date, to the right of the Holder of this Security (or any
Predecessor Security) of record at such Regular Record Date to receive an
installment of interest (with certain exceptions provided in the Indenture),]
no payment or adjustment is to be made on conversion for interest accrued
hereon or for dividends on the Series A Common Stock issued on conversion. No
fractions of shares or scrip representing fractions of shares will be issued on
conversion, but instead of any fractional interest the Company shall pay a cash
adjustment as provided in the Indenture. The conversion price is subject to
adjustment as provided in the Indenture. In addition, the Indenture provides
that in case of certain consolidations or mergers to which the Company is a
party or the transfer of substantially all of the assets of the Company, the
Indenture shall be amended, without the consent of any Holders of Securities,
so that this Security, if then outstanding, will be convertible thereafter
during the period this Security shall be convertible as specified above, only
into the kind and amount of securities, cash and other property receivable upon
the consolidation, merger or transfer by a Holder of the number of shares of
Series A Common Stock into which this Security might have been converted
immediately prior to such consolidation, merger or transfer (assuming such
holder of Series A Common Stock failed to exercise any rights of election and
received per share the kind and amount received per share by a plurality of
non-electing shares).]
[If the Security is not an Original Issue Discount Security, insert -- If
an Event of Default with respect to Securities of this series shall occur and
be continuing, the principal of the Securities of this series may be declared
due and payable in the manner and with the effect provided in the Indenture.]
[If the Security is an Original Issue Discount Security, insert -- If an
Event of Default with respect to Securities of this series shall occur and be
continuing, an amount of principal of the Securities of this series may be
declared due and payable in the manner and with the effect provided in the
Indenture. Such amount shall be equal to -- insert formula for determining the
amount. Upon payment (i) of the amount of principal so declared due and
payable and (ii) of interest on any overdue principal and overdue interest (in
each case to the extent that the payment of such interest shall be legally
enforceable), all of the Company's obligations in respect of the payment of the
principal of and interest, if any, on the Securities of this series shall
terminate.]
The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Securities of each series to be
affected under the Indenture at any time by the Company and the Trustee with
the consent of the Holders of a majority in principal amount of the Securities
at the time Outstanding of each series to be affected. The Indenture also
contains
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<PAGE> 24
provisions permitting the Holders of specified percentages in principal amount
of the Securities of each series at the time Outstanding, on behalf of the
Holders of all Securities of such series, to waive compliance by the Company
with certain provisions of the Indenture and certain past defaults under the
Indenture and their consequences. Any such consent or waiver by the Holder of
this Security shall be conclusive and binding upon such Holder and upon all
future Holders of this Security and of any Security issued upon the
registration of transfer hereof or in exchange herefor or in lieu hereof,
whether or not notation of such consent or waiver is made upon this Security.
As provided in and subject to the provisions of the Indenture, the Holder
of this Security shall not have the right to institute any proceeding with
respect to the Indenture or for the appointment of a receiver or trustee or for
any other remedy thereunder, unless such Holder shall have previously given the
Trustee written notice of a continuing Event of Default with respect to the
Securities of this series, the Holders of not less than 25% in principal amount
of the Securities of this series at the time Outstanding shall have made
written request to the Trustee to institute proceedings in respect of such
Event of Default as Trustee and offered the Trustee reasonable indemnity, and
the Trustee shall not have received from the Holders of a majority in principal
amount of Securities of this series at the time Outstanding a direction
inconsistent with such request, and shall have failed to institute any such
proceeding, for 60 days after receipt of such notice, request and offer of
indemnity. The foregoing shall not apply to any suit instituted by the Holder
of this Security for the enforcement of any payment of principal hereof or any
premium or interest hereon on or after the respective due dates expressed
herein.
No reference herein to the Indenture and no provision of this Security or
of the Indenture shall alter or impair the obligation of the Company, which is
absolute and unconditional, to pay the principal of and any premium and
interest on this Security at the times, places and rates, and in the coin or
currency, herein prescribed.
As provided in the Indenture and subject to certain limitations therein
set forth, the transfer of this Security is registrable in the Security
Register, upon surrender of this Security for registration of transfer at the
office or agency of the [Company][Trustee] in any place where the principal of
and any premium and interest on this Security are payable, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the
Company and the Security Registrar duly executed by, the Holder hereof or his
or her attorney duly authorized in writing, and thereupon one or more new
Securities of this series and of like tenor, of authorized denominations and
for the same aggregate principal amount, will be issued to the designated
transferee or transferees.
[Title to Bearer Securities and coupons shall pass by delivery.]
[The Securities of this series are issuable only in registered form
without coupons in denominations of $_______ and any integral multiple
thereof.] As provided in the Indenture and subject to certain limitations
therein set forth, Securities of this series are exchangeable for a like
aggregate principal amount of Securities of this series and of like tenor of a
different authorized denomination, as requested by the Holder surrendering the
same.
No service charge shall be made for any such registration of transfer or
exchange, but the Company may require payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.
[Prior to due presentment of this Security for registration of transfer,
the Company, the Trustee and any agent of the Company or the Trustee may treat
the Person in whose name this Security is registered] [The Company, the Trustee
and any agent of the Company or the Trustee may treat the Bearer of any Bearer
Securities and any coupon attached
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thereto] as the owner hereof for all purposes, whether or not this Security be
overdue, and neither the Company, the Trustee nor any such agent shall be
affected by notice to the contrary.
All terms used in this Security which are defined in the Indenture shall
have the meanings assigned to them in the Indenture.
Section 204. Form of Legend for Global Securities.
Every Global Security authenticated and delivered hereunder shall bear a
legend in substantially the following form:
THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE
INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF
A DEPOSITARY OR A NOMINEE THEREOF. THIS SECURITY MAY NOT BE
TRANSFERRED TO, OR REGISTERED OR EXCHANGED FOR SECURITIES
REGISTERED IN THE NAME OF, ANY PERSON OTHER THAN THE DEPOSITARY OR
A NOMINEE THEREOF AND NO SUCH TRANSFER MAY BE REGISTERED, EXCEPT IN
THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE. EVERY
SECURITY AUTHENTICATED AND DELIVERED UPON REGISTRATION OF TRANSFER
OF, OR IN EXCHANGE FOR OR IN LIEU OF, THIS SECURITY SHALL BE A
GLOBAL SECURITY SUBJECT TO THE FOREGOING, EXCEPT IN SUCH LIMITED
CIRCUMSTANCES.
Section 205. Form of Coupon.
[Face of coupon]
[Insert any legend required by the Internal Revenue Code and the
Regulations thereunder.]
No. ______
On the [____] Interest Payment Date
[_____________]
THE TIMES MIRROR COMPANY (the "Company") will pay to the bearer, upon surrender
hereof, the interest payable with respect to the above-referenced Interest
Payment Date on its [name of the Securities] with the certificate number set
forth below, together with any additional amounts which may be payable under
the terms of the Security, unless the Security shall have been previously
called for redemption or submitted for repayment and sums for such redemption
or repayment duly provided. Payment of this coupon will be made in the
currency set forth on the face of such Security upon surrender hereof, subject
to applicable laws and regulations, only (subject to certain limited exceptions
set forth in such Security) at such paying agencies outside the United States
and its possessions as the Company may appoint from time to time. Such
payments will be made, at the option of the bearer, by check mailed or
delivered to an address outside the United States and its possessions furnished
by such bearer or by payment to an account maintained by the payee with a bank
located outside the United States. [This coupon will become void unless
presented for payment within [___] years from the due date hereof.] Reference
is made to the Security for definitions of terms used herein.
The Times Mirror Company
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By: ____________________________
Certificate Number: ____________
[Reverse of Coupon]
Paying Agencies (subject to change)
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
Section 206. Form of Trustee's Certificate of Authentication.
The Trustee's certificate of authentication shall be in substantially the
following form:
This is one of the Securities of the series designated therein referred to
in the within-mentioned Indenture.
As Trustee
By ________________________________________
Authorized Signatory
ARTICLE THREE
THE SECURITIES
Section 301. Amount Unlimited; Issuable in Series.
The aggregate principal amount of Securities that may be authenticated and
delivered under this Indenture is unlimited.
The Securities may be issued in one or more series. There shall be
established in or pursuant to a Board Resolution and, subject to Section 303,
set forth, or determined in the manner provided, in an Officers' Certificate,
or established in one or more indentures supplemental hereto, prior to the
issuance of Securities of any series,
(1) the title of the Securities of the series (which shall
distinguish the Securities of the series from Securities of any other
series);
(2) any limit upon the aggregate principal amount of the Securities
of the series that may be authenticated and delivered under this
Indenture (except for Securities authenticated and delivered upon
registration of transfer of, or in exchange for, or in lieu of, other
Securities of the series pursuant to Section 304, 305, 306, 906 or 1107
and except for any Securities that, pursuant to Section 303, are deemed
never to have been authenticated and delivered hereunder);
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<PAGE> 27
(3) the Person to whom any interest on any Registered Security of
the series shall be payable, if other than the Person in whose name that
Security (or one or more Predecessor Securities) is registered at the
close of business on the Regular Record Date for such interest, and the
manner in which, and the person to whom, any interest on any Bearer
Securities of the series shall be payable, if otherwise then upon
presentation and surrender of the coupons appertaining thereto as they
severally mature;
(4) the date or dates on which the principal of the Securities of
the series is payable;
(5) the rate or rates, or the method or methods by which such rate
or rates shall be determined, at which the Securities of the series shall
bear interest, if any, the date or dates from which such interest shall
accrue, the Interest Payment Dates on which any such interest shall be
payable and the Regular Record Date for any interest payable on any
Interest Payment Date;
(6) the place or places where the principal of and any premium and
interest on Securities of the series shall be payable;
(7) the period or periods within which, the date or dates on which,
the price or prices at which and the terms and conditions upon which,
Securities of the series may be redeemed, in whole or in part, at the
option of the Company;
(8) the obligation, if any, of the Company to redeem or purchase
Securities of the series pursuant to any sinking fund or other provisions
or at the option of a Holder thereof and the period or periods within
which, the price or prices at which and the terms and conditions upon
which Securities of the series shall be redeemed or purchased, in whole
or in part, pursuant to such obligation;
(9) if other than denominations of $1,000 and any integral multiple
thereof, the denominations in which Securities of the series shall be
issuable;
(10) the currency, currencies or currency units in which payment of
the principal of and any premium and interest on any Securities of the
series shall be payable, if other than Dollars, and the Exchange Rate and
Exchange Rate Agent;
(11) if the amount of payments of principal of or any premium or
interest on any Securities of the series may be determined with reference
to an index or any security or other measure, the manner in which such
amounts shall be determined and any special voting or defeasance
provisions in connection thereto;
(12) if the principal of or any premium or interest on any
Securities of the series is to be payable, at the election of the Company
or a Holder thereof, in one or more currencies or currency units other
than that or those in which the Securities are stated to be payable, the
currency, currencies or currency units in which payment of the principal
of and any premium and interest on Securities of such series as to which
such election is made shall be payable, and the periods within which and
the terms and conditions upon which such election is to be made;
(13) if other than the principal amount thereof, the portion of the
principal amount of Securities of the series that shall be payable upon
declaration of acceleration of the Maturity thereof pursuant to Section
502;
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<PAGE> 28
(14) if applicable, that the Securities of the series shall be
convertible as provided in Article Thirteen;
(15) if applicable, that the Securities of the series shall be
defeasible as provided in Article Fourteen;
(16) whether Securities of the series shall be issuable as
Registered Securities or Bearer Securities, and whether the Securities of
the series shall be issuable in whole or in part in the form of one or
more Global Securities and, in such case, the Depositary or Depositaries
and exchange agent for such Global Security or Global Securities and any
circumstances other than those set forth in Section 305 in which any such
Global Security may be transferred to, and registered and exchanged for
Securities registered in the name of, a Person other than the Depositary
for such Global Security or a nominee thereof and in which any such
transfer may be registered;
(17) if the Company will pay any additional amounts on any of the
Securities and coupons, if any, of the series to any Holder who is a
United States Alien (including any modification in the definition of such
term), in respect of any tax, assessment or governmental charge withheld
or deducted, under what circumstances and with what procedures and
documentation the Company will pay such additional amounts, whether such
additional amounts will be treated as interest or principal pursuant to
this Indenture, and whether the Company will have the option to redeem
such Securities rather than pay additional amounts (and the terms of any
such option);
(18) the inclusion of any additional Events of Default or variations
from the Events of Default set forth in Section 501 for the Securities of
the series;
(19) the applicability or non-applicability of Section 1008, or any
variations in Section 1008, or the applicability of any additional
restrictive covenants; and
(20) if payments of principal of (and premium, if any) or interest
on the Securities of the series are to be made in a Foreign Currency
other than the currency in which such Securities are denominated, the
manner in which the Exchange Rate with respect to such payments shall be
determined or if the Exchange Rate is to be determined otherwise than as
provided in Section 101;
(21) if the Securities of the series may be issued or delivered
(whether upon original issuance or upon exchange of a temporary Security
of such series or otherwise), or any installment of principal or interest
is payable, only upon receipt of certain certificates or other documents
or satisfaction of other conditions in addition to those specified in
this Indenture, the form and terms of such certificates, documents or
conditions; and
(22) any other terms of the series (which terms shall not be
inconsistent with the provisions of this Indenture, except as permitted
by Section 901(5)).
All Securities of any one series and the coupons appertaining to any
Bearer Securities of such series shall be substantially identical except as to
denomination and except as may otherwise be provided in or pursuant to the
Board Resolution referred to above and (subject to Section 303) set forth, or
determined in the manner provided, in the Officers' Certificate referred to
above or in any such indenture supplemental hereto.
Any such Board Resolution may provide, without limitation, that Securities
of any particular series may be issued at various times, with different dates
on which the principal or any
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<PAGE> 29
installment of principal is payable, with different rates of interest, if any,
or different methods by which rates of interest may be determined, with
different dates on which such interest may be payable, or with different
redemption or repayment dates and may be denominated in different currencies or
payable in different currencies. Unless otherwise provided in such Board
Resolution, a series of Securities may be reopened for issuances of additional
Securities of that series.
At the option of the Company, interest on the Securities of any series
that bears interest may be paid by mailing a check to the address of the Person
entitled thereto as such address shall appear in the Security Register.
If any of the terms of the series are established by action taken pursuant
to a Board Resolution, a copy of an appropriate record of such action shall be
certified by the Secretary or an Assistant Secretary of the Company and
delivered to the Trustee at or prior to the delivery of the Officers'
Certificate setting forth the terms of the series.
Section 302. Denominations.
The Securities of each series shall be issuable in such denominations as
may be approved by the Company, such approval to be evidenced by the execution
thereof by the Company. The Securities may bear such letters and numbers
distinguishing the several denominations and the several Securities of each
denomination as may be determined by the Company with the approval of the
Trustee. At the office or agency of the Company to be maintained by the
Company as provided in Section 1002, unless otherwise provided in the
Securities of any series, and in the manner, subject to the limitations and
upon payment of the charges provided herein, Securities of each series may be
exchanged for a like aggregate principal amount of Securities of such series of
other authorized denominations.
Section 303. Execution, Authentication, Delivery and Dating.
The Securities shall be executed on behalf of the Company by its Chairman
of the Board, its Chief Executive Officer, its President or one of its Vice
Presidents, under its corporate seal reproduced thereon attested by its
Secretary or one of its Assistant Secretaries. The signature of any of these
officers on the Securities may be manual or facsimile.
Securities bearing the manual or facsimile signatures of individuals who
were at any time the proper officers of the Company shall bind the Company,
notwithstanding that such individuals or any of them have ceased to hold such
offices prior to the authentication and delivery of such Securities or did not
hold such offices at the date of such Securities.
At any time and from time to time after the execution and delivery of this
Indenture, the Company may deliver Securities of any Series together with any
coupons relating thereto executed by the Company to the Trustee for
authentication, together with a Company Order for the authentication and
delivery of such Securities, and the Trustee in accordance with the Company
Order shall authenticate and deliver such Securities; provided, however, that,
in connection with its original issuance, no Bearer Security or coupon shall be
mailed or otherwise delivered (i) to any person who is not a United States
Alien or to any location in the United States, (ii) unless the Company shall
have received such certificates required by Section 311 or Section 301 hereof,
and (iii) unless the Company has no reason to know that such certificates are
false.
If the form or terms of the Securities of the series and any related
coupons have been established in or pursuant to one or more Board Resolutions
as permitted by Sections 201 and 301, in authenticating such Securities, and
accepting the additional responsibilities under this
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<PAGE> 30
Indenture in relation to such Securities, the Trustee shall be entitled to
receive, and (subject to Section 601) shall be fully protected in relying upon,
an Opinion of Counsel stating,
(1) if the forms of such Securities and any coupons has been
established by or pursuant to Board Resolution as permitted by Section
201, that such form has been established in conformity with the
provisions of this Indenture;
(2) if the terms of such Securities and any coupons have been
established by or pursuant to Board Resolution as permitted by Section
301, that such terms have been established in conformity with the
provisions of this Indenture; and
(3) that such Securities, together with any coupons appertaining
thereto, when authenticated and delivered by the Trustee and issued by
the Company in the manner and subject to any conditions specified in such
Opinion of Counsel, will constitute valid and legally binding obligations
of the Company enforceable in accordance with their terms, subject to
bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium
and similar laws of general applicability relating to or affecting
creditors' rights and to general equity principles.
If such form or terms have been so established, the Trustee shall not be
required to authenticate such Securities if the issuance of such Securities
pursuant to this Indenture will affect the Trustee's own rights, duties or
immunities under the Securities and this Indenture or otherwise in a manner
that is not reasonably acceptable to the Trustee.
Notwithstanding the provisions of Section 301 and of the preceding
paragraph, if all Securities of a series are not to be originally issued at one
time, it shall not be necessary to deliver the Officers' Certificate otherwise
required pursuant to Section 301 or the Company Order and Opinion of Counsel
otherwise required pursuant to such preceding paragraph at or prior to the time
of authentication of each Security of such series if such documents are
delivered at or prior to the authentication upon original issuance of the first
Security of such series to be issued. After any such first delivery, any
separate request by the Company that the Trustee authenticate Securities of
such series for original issue will be deemed to be a certification by the
Company that all conditions precedent provided for in this Indenture relating
to the authentication and delivery of such Securities continue to be complied
with.
Each Registered Security shall be dated the date of its authentication.
Unless otherwise specified in Section 301, each Bearer Security (including a
Bearer Security represented by a temporary Global Security) shall be dated as
of the date of original issuance of the first Security of such series to be
issued.
No Security or coupon attached thereto shall be entitled to any benefit
under this Indenture or be valid or obligatory for any purpose unless there
appears on such Security a certificate of authentication substantially in the
form provided for herein executed by the Trustee by manual signature, and such
certificate upon any Security shall be conclusive evidence, and the only
evidence, that such Security has been duly authenticated and delivered
hereunder. Except as otherwise permitted by this Indenture, the Trustee shall
not authenticate and deliver any Bearer Security unless all pertinent coupons
for interest then matured have been detached and canceled. Notwithstanding the
foregoing, if any Security shall have been authenticated and delivered
hereunder but never issued and sold by the Company, and the Company shall
deliver such Security to the Trustee for cancellation as provided in Section
309, for all purposes of this Indenture such Security shall be deemed never to
have been authenticated and delivered hereunder and shall never be entitled to
the benefits of this Indenture.
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<PAGE> 31
Section 304. Temporary Securities.
Pending the preparation of definitive Securities of any series, the
Company may execute, and upon Company Order the Trustee shall authenticate and
deliver, temporary Securities which are printed, lithographed, typewritten,
mimeographed or otherwise produced, in any authorized denomination,
substantially of the tenor of the definitive Securities in lieu of which they
are issued and with such appropriate insertions, omissions, substitutions and
other variations as the officers executing such Securities may determine, as
evidenced by their execution of such Securities.
Every temporary Security shall be executed by the Company and
authenticated by the Trustee and registered by the Security Registrar, upon the
same conditions, and with like effect, as a definitive Security.
Except in the case of Securities represented by a temporary Global
Security (which shall be exchanged in accordance with the provisions of the
three succeeding paragraphs), if temporary Securities of any series are issued,
the Company will cause definitive Securities of that series to be prepared
without unreasonable delay. After the preparation of definitive Securities of
such series, the temporary Securities of such series shall be exchangeable for
definitive Securities of such series upon surrender of the temporary Securities
of such series (accompanied by any unmatured coupons appertaining thereto) at
the office or agency of the Company in a Place of Payment for that series,
without charge to the Holder. Upon surrender for cancellation of any one or
more temporary Securities of any series the Company shall execute and the
Trustee shall authenticate and deliver in exchange therefor one or more
definitive Securities of the same series, of any authorized denominations and
of a like aggregate principal amount and tenor, except that no definitive
Bearer Security shall be delivered in exchange for a temporary Registered
Security. Until so exchanged the temporary Securities of any series shall in
all respects be entitled to the same benefits under this Indenture as
definitive Securities of such series and tenor.
Unless otherwise specified as contemplated by Section 301, if Bearer
Securities of any series are represented by a temporary Global Security, any
such temporary Global Security shall be delivered to the Depositary for the
benefit of Euro-clear and Cedel S.A., for credit to the respective accounts of
the beneficial owners of such Securities (or to such other accounts as they may
direct).
Without unnecessary delay but in any event not later than the date
specified in or determined pursuant to the terms of any such temporary Global
Security (the "Exchange Date"), the Company shall deliver to the Trustee
permanent Securities of the same series, in aggregate principal amount equal to
the principal amount of such temporary Global Security, executed by the
Company. On or after the Exchange Date, such temporary Global Security shall
be surrendered by the Depositary to the Trustee, as the Company's agent for
such purpose, to be exchanged, in whole or from time to time in part, for
permanent Securities of the same series and of like tenor without charge and
the Trustee shall authenticate and deliver, in exchange for each portion of
such temporary Global Security, an equal aggregate principal amount of
definitive Securities of the same series of authorized denominations and of
like tenor as the portion of such temporary Global Security to be exchanged.
The permanent Securities to be delivered in exchange for any such temporary
Global Security shall be in definitive bearer form or registered from, or shall
be represented by a permanent Global Security, or any combination thereof, as
specified as contemplated by Section 301, and, if any combination thereof is so
specified, as requested by the beneficial owner thereof.
Unless otherwise specified in any such temporary Global Security, the
interest of a beneficial owner of Securities of a series represented by such
temporary Global Security shall be exchanged for permanent Securities of the
same series and of like tenor following the Exchange
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<PAGE> 32
Date when the account holder instructs Euro-clear or Cedel S.A., as the
case may be, to request such exchange on his behalf and delivers to Euro-clear
or Cedel S.A., as the case may be, any certificates specified as contemplated
by Sections 301 and 311. Unless otherwise specified in such temporary Global
Security, any such exchange shall be made free of charge to the beneficial
owners of such temporary Global Security, except that a person receiving
permanent Securities must bear the cost of insurance, postage, transportation
and the like in the event that such person does not take delivery of such
permanent Securities in person at the offices of Euro-clear or Cedel S.A.
Until exchanged in full as hereinabove provided, the temporary Securities
of any series shall in all respects be entitled to the same benefits under this
Indenture as permanent Securities of the same series and of like tenor
authenticated and delivered hereunder, except that, unless otherwise specified
as contemplated by Section 301, interest payable on a temporary Global Security
representing a series of Bearer Securities on an Interest Payment Date for
Securities of such series occurring prior to the applicable Exchange Date shall
be payable to Euro-clear and Cedel S.A. on such Interest Payment Date, upon
delivery by Euro-clear and Cedel S.A. to the Trustee of any certificate
specified as contemplated by Section 301, for credit without further interest
on or after such Interest Payment Date to the respective accounts of the
persons who are the beneficial owners of such temporary Global Security on such
Interest Payment Date and who have each delivered to Euro-clear or Cedel S.A.,
as the case may be, any certificate specified as contemplated by Sections 301
and 311.
Section 305. Registration, Registration of Transfer and Exchange.
The Company shall cause to be kept at the Corporate Trust Office of the
Trustee a register (the register maintained in such office and in any other
office or agency of the Company in a Place of Payment being herein sometimes
collectively referred to as the "Security Register") in which, subject to such
reasonable regulations as it may prescribe, the Company shall provide for the
registration of Securities and of transfers of Securities. The Trustee is
hereby appointed "Security Registrar" for the purpose of registering Securities
and transfers of Securities as herein provided.
Upon surrender for registration of transfer of any Security of any series
at the office or agency in a Place of Payment for that series, the Company
shall execute, and the Trustee shall authenticate and deliver, in the name of
the designated transferee or transferees, one or more new Securities of the
same series, of any authorized denominations and of a like aggregate principal
amount and tenor.
At the option of the Holder, Registered Securities of any series may be
exchanged for other Registered Securities of the same series, of any authorized
denominations and of a like aggregate principal amount and tenor, upon
surrender of the Registered Securities to be exchanged at such office or
agency. Whenever any Securities are so surrendered for exchange, the Company
shall execute, and the Trustee shall authenticate and deliver, the Securities
that the Holder making the exchange is entitled to receive.
All Securities issued upon any registration of transfer or exchange of
Securities shall be the valid obligations of the Company, evidencing the same
debt, and entitled to the same benefits under this Indenture, as the Securities
surrendered upon such registration of transfer or exchange.
Every Registered Security presented or surrendered for registration of
transfer or for exchange shall (if so required by the Company or the Trustee)
be duly endorsed, or be accompanied by a written instrument of transfer in form
satisfactory to the Company and the
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<PAGE> 33
Security Registrar duly executed, by the Holder thereof or his or her attorney
duly authorized in writing.
No service charge shall be made for any registration of transfer or
exchange of Securities, but the Company may require payment of a sum sufficient
to cover any tax or other governmental charge that may be imposed in connection
with any registration of transfer or exchange of Securities, other than
exchanges pursuant to Section 304, 906 or 1107 not involving any transfer.
The Company shall not be required (1) to issue, register the transfer of
Securities of any series during a period beginning at the opening of business
15 days before the day of the mailing or publishing, as applicable, of a notice
of redemption of Securities of that series selected for redemption under
Section 1103 and ending at the close of business on the day of such mailing,
(2) to register the transfer of any Security so selected for redemption in
whole or in part, except the unredeemed portion of any Security being redeemed
in part, or (3) to exchange any Bearer Security so selected for redemption
except that such a Bearer Security may be exchanged for a Registered Security
of like tenor and terms of that series, provided that such Bearer Security
shall be simultaneously surrendered for redemption.
At the option of the Holder, Bearer Securities of any series may be
exchanged for Registered Securities of the same series of any authorized
denomination or denominations and of a like aggregate principal amount and
tenor, upon surrender of the Bearer Securities to be exchanged at any such
office or agency, with all unmatured coupons and all matured coupons in default
thereto appertaining. If the Holder of a Bearer Security is unable to produce
any such unmatured coupon or coupons or matured coupon or coupons in default,
such exchange may be effected if the Bearer Securities are accompanied by a
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 Trustee if there is
furnished to them such security or indemnity as they may require to save each
of them and any Paying Agent harmless. If thereafter the Holder of such Bearer
Security 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 this Indenture, interest represented by coupons shall be payable
only upon presentation and surrender of such coupons at an office or agency
located outside the United States. Notwithstanding the foregoing, in case a
Bearer Security of any series is surrendered at any such office or agency in
exchange for a Registered Security of the same series and like tenor after the
close of business at such office or agency on (i) any Regular Record Date and
before the opening of business at such office or agency on the relevant
Interest Payment Date, or (ii) any Special Record Date and before the opening
of business at such office or agency on the related proposed date for payment
of Defaulted Interest, such Bearer Security shall be surrendered without the
coupon relating to such Interest Payment Date or proposed date for payment, as
the case may be, and interest or Defaulted Interest, as the case may be, will
not be payable on such Interest Payment Date or proposed date for payment, as
the case may be, in respect of the Registered Security issued in exchange for
such Bearer Security, but will be payable only to the Holder of such coupon
when due in accordance with the provisions of this Indenture.
Notwithstanding any other provision in this Indenture, no Global Security
may be transferred to, or registered or exchanged for Securities registered in
the name of, any Person other than the Depositary for such Global Security or
any nominee thereof, and no such transfer may be registered, unless (1) such
Depositary (A) notifies the Company that it is unwilling or unable to continue
as Depositary for such Global Security or (B) ceases to be a clearing agency
registered under the Exchange Act if required to be so registered, (2) the
Company executes and delivers to the Trustee a Company Order that such Global
Security shall be so transferable,
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<PAGE> 34
registrable and exchangeable, and such transfers shall be registrable, (3)
there shall have occurred and be continuing an Event of Default with respect to
the Securities evidenced by such Global Security or (4) there shall exist such
other circumstances, if any, as have been specified for this purpose as
contemplated by Section 301. Notwithstanding any other provision in this
Indenture, a Global Security to which the restriction set forth in the
preceding sentence shall have ceased to apply may be transferred only to, and
may be registered and exchanged for Securities registered only in the name or
names of, such Person or Persons as the Depositary for such Global Security
shall have directed, and no transfer thereof other than such a transfer may be
registered.
Every Security authenticated and delivered upon registration of transfer
of, or in exchange for or in lieu of, a Global Security to which the
restriction set forth in the first sentence of the preceding paragraph shall
apply, whether pursuant to this Section, Section 304, 306, 906 or 1107 or
otherwise, shall be authenticated, registered and delivered in the form of, and
shall be, a Global Security.
Notwithstanding anything herein to the contrary, the exchange of Bearer
Securities into Registered Securities shall be subject to applicable laws and
regulations in effect at the time of exchange. Neither the Company, the
Trustee nor the Security Registrar shall exchange any Bearer Securities into
Registered Securities if the Company has received an Opinion of Counsel that as
a result of such exchanges the Company would suffer adverse consequences under
the United States Federal income tax laws and regulations then in effect and
the Company has delivered to the Trustee a Company Order directing the Trustee
not to make such exchanges thereafter, unless and until the Trustee receives a
subsequent Company Order to the contrary. The Company shall deliver copies of
such Company Order to the Security Registrar.
Section 306. Mutilated, Destroyed, Lost and Stolen Securities or
Coupons.
If any mutilated Security or a Security with a mutilated coupon
appertaining thereto is surrendered to the Trustee, the Company shall execute
and the Trustee shall authenticate and deliver in exchange therefor a new
Security of the same series and of like tenor and principal amount and bearing
a number not contemporaneously outstanding.
If there shall be delivered to the Company and the Trustee (i) evidence to
the Trustee's and the Company's satisfaction of the destruction, loss or theft
of any Security and (ii) such security or indemnity as may be required by them
to save each of them and any agent of either of them harmless, then, in the
absence of notice to the Company or the Trustee that such Security has been
acquired by a bona fide purchaser, the Company shall execute and the Trustee
shall upon the Company's request authenticate and deliver, in lieu of any such
destroyed, lost or stolen Security (and mutilated coupon, if applicable), a new
Security of the same series and of like tenor and principal amount and bearing
a number not contemporaneously outstanding.
In case any such mutilated, destroyed, lost or stolen Security or coupon
has become or is about to become due and payable, the Company in its discretion
may, instead of issuing a new Security, pay such Security or coupon; provided,
however, that the interest on any Bearer Security shall be payable only at an
office or agency located outside the United States and only upon presentation
and surrender of the coupons appertaining thereto (unless otherwise specified
as contemplated by Section 301).
Upon the issuance of any new Security under this Section, the Company may
require the payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in relation thereto and any other expenses
(including the fees and expenses of counsel and the Trustee) connected
therewith.
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Every new Security of any series issued pursuant to this Section in lieu
of any mutilated, destroyed, lost or stolen Security, or in exchange for a
Security to which a mutilated, destroyed, lost or stolen coupon appertains,
shall constitute an original additional contractual obligation of the Company,
whether or not the mutilated, destroyed, lost or stolen Security and its
coupons, if any, or the destroyed, lost or stolen coupon shall be at any time
enforceable by anyone, and shall be entitled to all the benefits of this
Indenture equally and proportionately with any and all other Securities of that
series and their coupons, if any, duly issued hereunder.
The provisions of this Section are exclusive and shall preclude (to the
extent lawful) all other rights and remedies with respect to the replacement or
payment of mutilated, destroyed, lost or stolen Securities or coupons.
Section 307. Payment of Interest; Interest Rights Preserved.
Except as otherwise provided as contemplated by Section 301 with respect
to any series of Securities, interest on any 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 that Security (or one or more
Predecessor Securities) is registered at the close of business on the Regular
Record Date for such interest.
In case a Bearer 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 on the next succeeding Interest Payment Date,
such Bearer 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 Bearer
Security, but will be payable only to the Holder of such coupon when due in
accordance with the provisions of this Indenture.
Any interest on any Registered Security of any series that is payable, but
is not punctually paid or duly provided for, on any Interest Payment Date
(herein called "Defaulted Interest") shall forthwith cease to be payable to the
Holder on the relevant Regular Record Date by virtue of having been such
Holder, and such Defaulted Interest may be paid by the Company, at its election
in each case, as provided in Clause (1) or (2) below:
(1) The Company may elect to make payment of any Defaulted Interest
to the Persons in whose names the Securities of such series (or their
respective Predecessor Securities) are registered at the close of
business on a Special Record Date for the payment of such Defaulted
Interest, which shall be fixed in the following manner. The Company
shall notify the Trustee in writing of the amount of Defaulted Interest
proposed to be paid on each Security of such series and the date of the
proposed payment, and at the same time the Company shall deposit with the
Trustee an amount of money equal to the aggregate amount proposed to be
paid in respect of such Defaulted Interest or shall make arrangements
satisfactory to the Trustee for such deposit prior to the date of the
proposed payment, such money when deposited to be held in trust for the
benefit of the Persons entitled to such Defaulted Interest as in this
Clause provided. Thereupon the Trustee shall fix a Special Record Date
for the payment of such Defaulted Interest that shall be not more than 15
days and not less than 10 days prior to the date of the proposed payment
and not less than 10 days after the receipt by the Trustee of the notice
of the proposed payment. The Trustee shall promptly notify the Company
of such Special Record Date and, in the name and at the expense of the
Company, shall cause notice of the proposed payment of such Defaulted
Interest and the Special Record Date therefor to be mailed, first-class
postage prepaid, to each Holder of Securities of such series at his or
her address as it appears in the Security Register, not less than 10 days
prior to such
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Special Record Date. Notice of the proposed payment of such Defaulted
Interest and the Special Record Date therefor having been so mailed, such
Defaulted Interest shall be paid to the Persons in whose names the
Securities of such series (or their respective Predecessor Securities)
are registered at the close of business on such Special Record Date and
shall no longer be payable pursuant to the following Clause (2).
(2) The Company may make payment of any Defaulted Interest on the
Securities of any series in any other lawful manner not inconsistent with
the requirements of any securities exchange on which such Securities may
be listed, and upon such notice as may be required by such exchange, if,
after notice is given by the Company to the Trustee of the proposed
payment pursuant to this Clause, such manner of payment shall be deemed
practicable by the Trustee.
Subject to the foregoing provisions of this Section, each Security
delivered under this Indenture upon registration of transfer of or in exchange
for or in lieu of any other Security shall carry the rights to interest accrued
and unpaid, and to accrue, which were carried by such other Security.
In the case of any Security that is converted after any Regular Record
Date and on or prior to the next succeeding Interest Payment Date (other than
any Security whose maturity is prior to such Interest Payment Date), Interest
shall be payable on such Interest Payment Date notwithstanding such conversion,
and such Interest (whether or not punctually paid or duly provided for) shall
be paid to the Person in whose name that Security (or one or more Predecessor
Securities) is registered at the close of business on such Regular Record Date.
Except as otherwise expressly provided in the immediately preceding sentence,
in the case of any Security that is converted, Interest after the date of
conversion of such Security shall not be payable.
Section 308. Persons Deemed Owners.
Prior to due presentment of a Registered Security for registration of
transfer, the Company, the Trustee and any agent of the Company or the Trustee
may treat the Person in whose name such Registered Security is registered as
the owner of such Registered Security for the purpose of receiving payment of
principal of and any premium and (except as contemplated by Section 301(3) and
subject to Section 307) any interest on such Registered Security and for all
other purposes whatsoever, whether or not such Registered Security is overdue,
and neither the Company, the Trustee nor any agent of the Company or the
Trustee shall be affected by notice to the contrary.
Title to any Bearer Security and any coupons appertaining thereto shall
pass by delivery. The Company, the Trustee and any agent of the Company or the
Trustee may treat the bearer of any Bearer Security and the bearer of any
coupon as the absolute owner of such Bearer Security or coupon for the purpose
of receiving payment thereof or on account thereof and for all purposes
whatsoever, whether or not such Bearer Security or coupon be overdue, and
neither the Company, the Trustee nor any agent of the Company or the Trustee
shall be effected by notice to the contrary.
None of the Company, the Trustee, any Paying Agent or the Security
Registrar shall 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 309. Cancellation.
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All Securities or coupons surrendered for payment, redemption,
registration of transfer or exchange or for credit against any sinking fund
payment shall, if surrendered to any Person other than the Trustee, be
delivered to the Trustee and all Registered Securities and matured coupons so
delivered shall be promptly canceled by it. All Bearer Securities and
unmatured coupons so delivered shall be canceled. All Bearer Securities and
unmatured coupons held by the Trustee pending such cancellation shall be deemed
to be delivered for cancellation for all purposes of this Indenture and the
Securities. The Company may at any time deliver to the Trustee for
cancellation any Securities previously authenticated and delivered hereunder
that the Company may have acquired in any manner whatsoever, and may deliver to
the Trustee (or to any other Person for delivery to the Trustee) for
cancellation any Securities previously authenticated hereunder that the Company
has not issued and sold, and all Securities so delivered shall be promptly
canceled by the Trustee. No Securities shall be authenticated in lieu of or in
exchange for any Securities canceled as provided in this Section, except as
expressly permitted by this Indenture. All canceled Securities held by the
Trustee shall be destroyed and a certificate of destruction provided to the
Company.
Section 310. Computation of Interest.
Except as otherwise specified as contemplated by Section 301 for
Securities of any series, interest on the Securities of each series shall be
computed on the basis of a 360-day year of twelve 30-day months.
Section 311. Certificate by a Person Entitled to Delivery of a Bearer
Security.
Whenever any provision of this Indenture contemplates that a Person shall
be entitled to delivery of a Bearer Security, no delivery of such Bearer
Security shall be made unless and until the Company shall have received
certification substantially in the form of Exhibit A-1 and, if applicable,
Exhibit A-2 and Exhibit B hereto, with only such changes as shall be approved
by the Company and any additional certification as may be required pursuant to
United States Department of Treasury regulations.
ARTICLE FOUR
SATISFACTION AND DISCHARGE
Section 401. Satisfaction and Discharge of Indenture.
This Indenture shall upon Company Request cease to be of further effect
(except as to any surviving rights of conversion, registration of transfer or
exchange of Securities herein expressly provided for), and the Trustee, at the
expense of the Company, shall execute proper instruments acknowledging
satisfaction and discharge of this Indenture, when
(1) either
(A) all Securities theretofore authenticated and delivered and
all coupons, if any, appertaining thereto (other than (i)
Securities that have been destroyed, lost or stolen and that have
been replaced or paid as provided in Section 306, (ii) Securities
and coupons, if any, for whose payment money has theretofore been
deposited in trust or segregated and held in trust by the Company
and thereafter repaid to the Company or discharged from such trust,
as provided in Section 1003, (iii) coupons appertaining to Bearer
Securities surrendered in exchange for Registered Securities and
maturing after such exchange, whose surrender is not required or
has been waived as provided in this Indenture, and (iv)
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coupons, if any, appertaining to the Securities called for
redemption and maturing after the relevant Redemption Date, whose
surrender has been waived as provided in this Indenture) have been
delivered to the Trustee for cancellation; or
(B) all such Securities not theretofore delivered to the
Trustee for cancellation
(i) have become due and payable, or
(ii) will become due and payable at their Stated
Maturity within one year, or
(iii) are to be called for redemption within one year
under arrangements satisfactory to the Trustee for the giving
of notice of redemption by the Trustee in the name, and at
the expense, of the Company,
and the Company, in the case of (i), (ii) or (iii) above, has
deposited or caused to be deposited with the Trustee as trustee
funds in trust for the purpose an amount sufficient to pay and
discharge the entire indebtedness on such Securities not
theretofore delivered to the Trustee for cancellation, for
principal and any premium and interest to the date of such deposit
(in the case of Securities that have become due and payable) or to
the Stated Maturity or Redemption Date, as the case may be;
(2) the Company has paid or caused to be paid all other sums payable
hereunder by the Company; and
(3) the Company has delivered to the Trustee an Officers'
Certificate and an Opinion of Counsel, each stating that all conditions
precedent herein provided for relating to the satisfaction and discharge
of this Indenture have been complied with.
Notwithstanding the satisfaction and discharge of this Indenture, the
obligations of the Company to the Trustee under Section 607, if money shall
have been deposited with the Trustee pursuant to subclause (B) of Clause (1) of
this Section, the obligations of the Trustee under Section 402 and the last
paragraph of Section 1003 shall survive.
Section 402. Application of Trust Money.
Subject to provisions of the last paragraph of Section 1003, all money
deposited with the Trustee pursuant to Section 401 shall be held in trust and
applied by it, in accordance with the provisions of the Securities and this
Indenture, to the payment, either directly or through any Paying Agent
(including the Company acting as its own Paying Agent) as the Trustee may
determine, to the Persons entitled thereto, of the principal and any premium
and interest for whose payment such money has been deposited with the Trustee.
All moneys deposited with the Trustee pursuant to Section 401 (and held by it
or any Paying Agent) for the payment of Securities subsequently converted shall
be returned to the Company upon Company Request.
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ARTICLE FIVE
REMEDIES
Section 501. Events of Default.
"Event of Default," wherever used herein with respect to Securities of any
series, means any one of the following events (whatever the reason for such
Event of Default and whether it shall be voluntary or involuntary or be
effected by operation of law or pursuant to any judgment, decree or order of
any court or any order, rule or regulation of any administrative or
governmental body):
(1) default in the payment of any interest upon any Security of that
series when it becomes due and payable, and continuance of such default
for a period of 30 days; or
(2) default in the payment of the principal of (or premium, if any,
on) any Security of that series at its Maturity, upon redemption or
otherwise; or
(3) default in the payment of any sinking fund payment, when and as
due by the terms of a Security of that series; or
(4) default in the performance, or breach, of any covenant or
warranty of the Company in this Indenture (other than a covenant or
warranty a default in whose performance or whose breach is elsewhere in
this Section specifically dealt with or which has expressly been included
in this Indenture solely for the benefit of a series of Securities other
than that series), and continuance of such default or breach for a period
of 90 days after there has been given, by registered or certified mail,
to the Company by the Trustee or to the Company and the Trustee by the
Holders of at least 25% in principal amount of the Outstanding Securities
of that series a written notice specifying such default or breach and
requiring it to be remedied and stating that such notice is a "Notice of
Default" hereunder; or
(5) the entry by a court having jurisdiction in the premises of (A)
a decree or order for relief in respect of the Company in an involuntary
case or proceeding under any applicable Federal or State bankruptcy,
insolvency, reorganization or other similar law or (B) a decree or order
adjudging the Company a bankrupt or insolvent, or approving as properly
filed a petition seeking reorganization, arrangement, adjustment or
composition of or in respect of the Company under any applicable Federal
or state law, or appointing a custodian, receiver, liquidator, assignee,
trustee, sequestrator or other similar official of the Company or of any
substantial part of its property, or ordering the winding up or
liquidation of its affairs, and the continuance of any such decree or
order for relief or any such other decree or order unstayed and in effect
for a period of 60 consecutive days; or
(6) the commencement by the Company of a voluntary case or
proceeding under any applicable Federal or state bankruptcy, insolvency,
reorganization or other similar law or of any other case or proceeding to
be adjudicated a bankrupt or insolvent, or the consent by it to the entry
of a decree or order for relief in respect of the Company in an
involuntary case or proceeding under any applicable Federal or State
bankruptcy, insolvency, reorganization or other similar law or to the
commencement of any bankruptcy or insolvency case or proceeding against
it, or the filing by it of a petition or answer or consent seeking
reorganization or relief under any applicable Federal or State law, or
the consent by it to the filing of such petition or to the appointment of
or taking possession by a custodian, receiver, liquidator, assignee,
trustee, sequestrator or other similar official of the Company or of any
substantial part of its property, or the making by it of an
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assignment for the benefit of creditors, or the admission by it in
writing of its inability to pay its debts generally as they become due,
or the taking of corporate action by the Company in furtherance of any
such action; or
(7) any other Event of Default or variations in the foregoing Events
of Default provided with respect to Securities of that series.
Section 502. Acceleration of Maturity; Rescission and Annulment.
If an Event of Default (other than an Event of Default due to certain
events of bankruptcy, insolvency, or reorganization) with respect to Securities
of any series at the time Outstanding occurs and is continuing, then in every
such case the Trustee or the Holders of not less than 25% in principal amount
of the Outstanding Securities of that series, or such other amount as may be
specified with respect to Securities of that series, may declare the principal
amount (or, if any of the Securities of that series are Original Issue Discount
Securities, such portion of the principal amount of such Securities as may be
specified in the terms thereof) of all of the Securities of that series to be
due and payable immediately, by a notice in writing to the Company (and to the
Trustee if given by Holders), and upon any such declaration such principal
amount (or specified amount) shall become immediately due and payable.
At any time after such a declaration of acceleration with respect to
Securities of any series has been made and before a judgment or decree for
payment of the money due has been obtained by the Trustee as hereinafter in
this Article provided, the Holders of a majority in principal amount of the
Outstanding Securities of that series, by written notice to the Company and the
Trustee, may rescind and annul such declaration and its consequences if
(1) the Company has paid or deposited with the Trustee a sum
sufficient to pay
(A) all overdue interest on all Securities of that series,
(B) the principal of (and premium, if any, on) any Securities
of that series which has become due otherwise than by such
declaration of acceleration and any interest thereon at the rate or
rates prescribed therefor in such Securities,
(C) to the extent that payment of such interest is lawful,
interest upon overdue interest at the rate or rates prescribed
therefor in such Securities, and
(D) all sums paid or advanced by the Trustee hereunder and the
reasonable compensation, expenses, disbursements and advances of
the Trustee, its agents and counsel; and
(2) all Events of Default with respect to Securities of that series,
other than the non-payment of the principal of Securities of that series
that has become due solely by such declaration of acceleration, have been
cured or waived as provided in Section 513.
No such rescission shall affect any subsequent default or impair any right
consequent thereon.
Section 503. Collection of Indebtedness and Suits for Enforcement by Trustee.
The Company covenants that if
(1) default is made in the payment of any interest on any Security
when such interest becomes due and payable and such default continues for
a period of 30 days, or
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(2) default is made in the payment of the principal of (or premium,
if any, on) any Security at the Maturity thereof,
the Company will, upon demand of the Trustee, pay to it, for the benefit of the
Holders of such Securities, the whole amount then due and payable on such
Securities for principal and any premium and interest and, to the extent that
payment of such interest shall be legally enforceable, interest on any overdue
principal and premium and on any overdue interest, at the rate or rates
prescribed therefor in such Securities, and, in addition thereto, such further
amount as shall be sufficient to cover the costs and expenses of collection,
including the reasonable compensation, expenses, disbursements and advances of
the Trustee, its agents and counsel.
If an Event of Default with respect to Securities of any series occurs and
is continuing, the Trustee may in its discretion proceed to protect and enforce
its rights and the rights of the Holders of Securities of such series by such
appropriate judicial proceedings as the Trustee shall deem most effectual to
protect and enforce any such rights, whether for the specific enforcement of
any covenant or agreement in this Indenture or in aid of the exercise of any
power granted herein, or to enforce any other proper remedy.
Section 504. Trustee May File Proofs of Claim.
In case of any judicial proceeding relative to the Company (or any other
obligor upon the Securities), its property or its creditors, the Trustee shall
be entitled and empowered, by intervention in such proceeding or otherwise, to
take any and all actions authorized under the Trust Indenture Act in order to
have claims of the Holders and the Trustee allowed in any such proceeding. In
particular, the Trustee shall be authorized to collect and receive any moneys
or other property payable or deliverable on any such claims and to distribute
the same; and any custodian, receiver, assignee, trustee, liquidator,
sequestrator or other similar official in any such judicial proceeding is
hereby authorized by each Holder to make such payments to the Trustee and, in
the event that the Trustee shall consent to the making of such payments
directly to the Holders, to pay to the Trustee any amount due it for the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel, and any other amounts due the Trustee under Section
607.
No provision of this Indenture shall be deemed to authorize the Trustee to
authorize or consent to or accept or adopt on behalf of any Holder of a
Security or coupon any plan of reorganization, arrangement, adjustment or
composition affecting the Securities or the rights of any Holder of a Security
or coupon thereof or to authorize the Trustee to vote in respect of the claim
of any Holder of a Security or coupon in any such proceeding; provided,
however, that the Trustee may, on behalf of the Holders, vote for the election
of a trustee in bankruptcy or similar official and be a member of a creditors'
or other similar committee.
Section 505. Trustee May Enforce Claims Without Possession of Securities.
All rights of action and claims under this Indenture or the Securities may
be prosecuted and enforced by the Trustee without the possession of any of the
Securities or coupons or the production thereof in any proceeding relating
thereto, and any such proceeding instituted by the Trustee shall be brought in
its own name as trustee of an express trust, and any recovery of judgment
shall, after provision for the payment of the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel, be
for the ratable benefit of the Holders of the Securities and any coupons in
respect of which such judgment has been recovered.
Section 506. Application of Money Collected.
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Any money collected by the Trustee pursuant to this Article shall be
applied in the following order, at the date or dates fixed by the Trustee and,
in case of the distribution of such money on account of principal or any
premium or interest, upon presentation of the Securities and the notation
thereon of the payment if only partially paid and upon surrender thereof if
fully paid:
FIRST: To the payment of all amounts due the Trustee under Section
607;
SECOND: To the payment of the amounts then due and unpaid for
principal of and any premium and interest on the Securities and interest
evidenced by coupons in respect of which or for the benefit of which such
money has been collected, ratably, without preference or priority of any
kind, according to the amounts due and payable on such Securities and
coupons first for any premium and interest, and second, for any
principal, respectively; and
THIRD: The balance, if any, to the Company.
With respect to Securities denominated in ECU, any other composite
currency or a Foreign Currency and any matured coupons relating thereto,
the amount payable on such Securities and coupons under this Section
shall be determined by the Exchange Rate Agent by converting the currency
in which the principal amount Outstanding of such series of Securities
and matured but unpaid interest on such series of Securities is
denominated into Dollars at the Exchange Rate as of the date of
declaration of acceleration of Maturity of the Securities of such series.
Section 507. Limitation on Suits.
No Holder of any Security of any series or related coupons shall have any
right to institute any proceeding, judicial or otherwise, with respect to this
Indenture, or for the appointment of a receiver or trustee, or for any other
remedy hereunder, unless
(1) such Holder has previously given written notice to the Trustee
of a continuing Event of Default with respect to the Securities of that
series;
(2) the Holders of not less than 25% in principal amount of the
Outstanding Securities of that series shall have made written request to
the Trustee to institute proceedings in respect of such Event of Default
in its own name as Trustee hereunder;
(3) such Holder or Holders have offered to the Trustee reasonable
indemnity against the costs, expenses and liabilities to be incurred in
compliance with such request in such amount as shall be reasonably
acceptable to the Trustee;
(4) the Trustee for 60 days after its receipt of such notice,
request and offer of indemnity has failed to institute any such
proceeding; and
(5) no direction inconsistent with such written request has been
given to the Trustee during such 60-day period by the Holders of a
majority in principal amount of the Outstanding Securities of that
series;
it being understood and intended that no one or more of such Holders shall have
any right in any manner whatever by virtue of, or by availing of, any provision
of this Indenture to affect, disturb or prejudice the rights of any other of
such Holders, or to obtain or to seek to obtain priority or preference over any
other of such Holders or to enforce any right under this Indenture, except in
the manner herein provided and for the equal and ratable benefit of all of such
Holders.
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Section 508. Unconditional Right of Holders to Receive Principal,
Premium and Interest and to Convert.
Notwithstanding any other provision in this Indenture, the Holder of any
Security or coupon shall have the right, which is absolute and unconditional,
to receive payment of the principal of and any premium and (except as
contemplated by Section 301(3) and subject to Section 307) interest on such
Security or payment of such coupon on the respective Stated Maturities
expressed in such Security or coupon (or, in the case of redemption, on the
Redemption Date) and to institute suit for the enforcement of any such payment
and the right to convert such Security in accordance with Article Thirteen and
to institute suit for its enforcement, and such rights shall not be impaired
without the consent of such Holder.
Section 509. Restoration of Rights and Remedies.
If the Trustee or any Holder has instituted any proceeding to enforce any
right or remedy under this Indenture and such proceeding has been discontinued
or abandoned for any reason, or has been determined adversely to the Trustee or
to such Holder, then and in every such case, subject to any determination in
such proceeding, the Company, the Trustee and the Holders shall be restored
severally and respectively to their former positions hereunder and thereafter
all rights and remedies of the Trustee and the Holders shall continue as though
no such proceeding had been instituted.
Section 510. Rights and Remedies Cumulative.
Except as otherwise provided with respect to the replacement or payment of
mutilated, destroyed, lost or stolen Securities or coupons in the last
paragraph of Section 306, no right or remedy herein conferred upon or reserved
to the Trustee or to the Holders is intended to be exclusive of any other right
or remedy, and every right and remedy shall, to the extent permitted by law, be
cumulative and in addition to every other right and remedy given hereunder or
now or hereafter existing at law or in equity or otherwise. The assertion or
employment of any right or remedy hereunder, or otherwise, shall not prevent
the concurrent assertion or employment of any other appropriate right or
remedy.
Section 511. Delay or Omission Not Waiver.
No delay or omission of the Trustee or of any Holder of any Securities or
coupons to exercise any right or remedy accruing upon any Event of Default
shall impair any such right or remedy or constitute a waiver of any such Event
of Default or an acquiescence therein. Every right and remedy given by this
Article or by law to the Trustee or to the Holders may be exercised from time
to time, and as often as may be deemed expedient, by the Trustee or by the
Holders, as the case may be.
Section 512. Control by Holders.
The Holders of a majority in principal amount of the Outstanding
Securities of any series shall have the right to direct the time, method and
place of conducting any proceeding for any remedy available to the Trustee, or
exercising any trust or power conferred on the Trustee, with respect to the
Securities of such series, provided that
(1) such direction shall not be in conflict with any rule of law or
with this Indenture, and
(2) the Trustee may take any other action deemed proper by the
Trustee that is not inconsistent with such direction.
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Section 513. Waiver of Past Defaults.
The Holders of not less than a majority in aggregate principal amount of
the Outstanding Securities of any series may, on behalf of the Holders of all
the Securities of such series and any related coupons, waive any past default
hereunder with respect to such series and its consequences, except a default
(1) in the payment of the principal of or any premium or interest on
any Security of such series, or
(2) in respect of a covenant or provision hereof that under Article
Nine cannot be modified or amended without the consent of the Holder of
each Outstanding Security of such series affected.
Upon any such waiver, such default shall cease to exist, and any Event of
Default arising therefrom shall be deemed to have been cured, for every purpose
of this Indenture; but no such waiver shall extend to any subsequent or other
default or impair any right consequent thereon.
Section 514. Undertaking for Costs.
In any suit for the enforcement of any right or remedy under this
Indenture, or in any suit against the Trustee for any action taken, suffered or
omitted by it as Trustee, a court may require any party litigant in such suit
to file an undertaking to pay the costs of such suit, and may assess costs
against any such party litigant, in the manner and to the extent provided in
the Trust Indenture Act; provided, however, that neither this Section nor the
Trust Indenture Act shall be deemed to authorize any court to require such an
undertaking or to make such an assessment in any suit instituted by the Trustee
or the Company.
Section 515. Waiver of Usury, Stay or Extension Laws.
The Company covenants (to the extent that it may lawfully do so) that it
will not at any time insist upon, or plead, or in any manner whatsoever claim
or take the benefit or advantage of, any usury, stay or extension law wherever
enacted, now or at any time hereafter in force, which may affect the covenants
or the performance of this Indenture; and the Company (to the extent that it
may lawfully do so) hereby expressly waives all benefit or advantage of any
such law and covenants that it will not hinder, delay or impede the execution
of any power herein granted to the Trustee, but will suffer and permit the
execution of every such power as though no such law had been enacted.
ARTICLE SIX
THE TRUSTEE
Section 601. Certain Duties and Responsibilities.
(a) Except during the continuance of an Event of Default,
(1) the Trustee undertakes to perform such duties and only such
duties as are specifically set forth in this Indenture, and no implied
covenants or obligations shall be read into this Indenture against the
Trustee; and
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(2) in the absence of bad faith on its part, the Trustee may
conclusively rely, as to the truth of the statements and the correctness
of the opinions expressed therein, upon certificates or opinions
furnished to the Trustee and conforming to the requirements of this
Indenture; but in the case of any such certificates or opinions that by
any provision hereof are specifically required to be furnished to the
Trustee, the Trustee shall be under a duty to examine the same to
determine whether or not they conform to the requirements of this
Indenture.
(b) In case an Event of Default has occurred and is continuing, the
Trustee shall exercise such of the rights and powers vested in it by this
Indenture, and use the same degree of care and skill in their exercise, as a
prudent man would exercise or use under the circumstances in the conduct of his
own affairs.
(c) No provision of this Indenture shall be construed to relieve the
Trustee from liability for its own negligent action, its own negligent failure
to act, or its own willful misconduct, except that
(1) this subsection shall not be construed to limit the effect of
subsection (a) of this Section;
(2) the Trustee shall not be liable for any error of judgment made
in good faith by a Responsible Officer, unless it shall be proved that
the Trustee was negligent in ascertaining the pertinent facts; and
(3) the Trustee shall not be liable with respect to any action taken
or omitted to be taken by it in good faith in accordance with the
direction of the Holders of not less than a majority in principal amount
of the Outstanding Securities of any series, determined as provided in
Section 512, 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 the Securities of such series.
No provision 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.
Section 602. Notice of Defaults.
If a default occurs and is continuing and if it is known to the Trustee,
the Trustee shall mail to each Holder a notice of the default within 90 days
after it occurs. Except in the case of a default in payment of principal or
interest on any Security, the Trustee may withhold the notice if and so long as
a committee of its Responsible Officers in good faith determines that
withholding the notice is in the interests of the Holders.
Section 603. Certain Rights of Trustee.
Subject to the provisions of Section 601:
(1) the Trustee may rely and shall be protected in acting or
refraining from acting upon any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order,
bond, debenture, note, other evidence of indebtedness
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or other paper or document believed by it to be genuine and to have been
signed or presented by the proper party or parties;
(2) any request or direction of the Company mentioned herein shall
be sufficiently evidenced by a Company Request or Company Order and any
resolution of the Board of Directors shall be sufficiently evidenced by a
Board Resolution;
(3) whenever in the administration of this Indenture the Trustee
shall deem it desirable that a matter be proved or established prior to
taking, suffering or omitting any action hereunder, the Trustee (unless
other evidence is herein specifically prescribed) may, in the absence of
bad faith on its part, rely upon an Officers' Certificate;
(4) the Trustee may consult with counsel and the written advice of
such counsel or any Opinion of Counsel shall be full and complete
authorization and protection in respect of any action taken, suffered or
omitted by it hereunder in good faith and in reliance thereon;
(5) the Trustee shall be under no obligation to exercise any of the
rights or powers vested in it by this Indenture at the request or
direction of any of the Holders pursuant to this Indenture, unless such
Holders shall have offered to the Trustee reasonable security or
indemnity against the costs, expenses and liabilities that might be
incurred by it in compliance with such request or direction;
(6) the Trustee shall not be bound to make any investigation into
the facts or matters stated in any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order,
bond, debenture, note, other evidence of indebtedness or other paper or
document, but the Trustee, in its discretion, may make such further
inquiry or investigation into such facts or matters as it may see fit,
and, if the Trustee shall determine to make such further inquiry or
investigation, it shall be entitled to examine the books, records and
premises of the Company, personally or by agent or attorney upon
reasonable advance written notice and during regular business hours; and
(7) the Trustee may execute any of the trusts or powers hereunder or
perform any duties hereunder either directly or by or through agents or
attorneys and the Trustee shall not be responsible for any misconduct or
negligence on the part of any agent or attorney appointed with due care
by it hereunder.
Section 604. Not Responsible for Recitals or Issuance of Securities.
The recitals contained herein and in the Securities, except the Trustee's
certificates of authentication, shall be taken as the statements of the
Company, and the Trustee or any Authenticating Agent assumes no responsibility
for their correctness. The Trustee makes no representations as to the validity
or sufficiency of this Indenture or of the Securities. The Trustee or any
Authenticating Agent shall not be accountable for the use or application by the
Company of Securities or the proceeds thereof.
Section 605. May Hold Securities or Coupons.
The Trustee, any Authenticating Agent, any Paying Agent, any Security
Registrar or any other agent of the Company, in its individual or any other
capacity, may become the owner or pledgee of Securities and coupons and,
subject to Sections 608 and 613, may otherwise deal with the Company with the
same rights it would have if it were not Trustee, Authenticating Agent, Paying
Agent, Security Registrar or such other agent.
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Section 606. Money Held in Trust.
Money held by the Trustee, or by any Paying Agent (other than the Company
if the Company shall act as Paying Agent), in trust hereunder need not be
segregated from other funds except to the extent required by law. The Trustee
shall be under no liability for interest on any money received by it hereunder
except as otherwise agreed with the Company.
Section 607. Compensation and Reimbursement.
The Company agrees
(1) to pay to the Trustee from time to time compensation agreed to
with the Trustee for all services rendered by it hereunder (which
compensation shall not be limited by any provision of law in regard to
the compensation of a trustee of an express trust);
(2) to reimburse the Trustee upon its request for all reasonable
expenses, disbursements and advances incurred or made by the Trustee in
accordance with any provision of this Indenture (including the reasonable
compensation and the expenses and disbursements of its agents and
counsel), except any such expense, disbursement or advance as may be
attributable to its negligence or bad faith; and
(3) to indemnify the Trustee for, and to hold it harmless against,
any loss, liability or expense incurred without negligence or bad faith
on its part, arising out of or in connection with the acceptance or
administration of the trust or trusts hereunder or performance of its
duties hereunder, including the costs and expenses of defending itself
against any claim or liability in connection with the exercise or
performance of any of its powers or duties hereunder.
As security for the performance of the obligations of the Company under
this Section, the Trustee shall have a claim prior to the Securities 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 Securities or any coupons.
Section 608. Disqualification; Conflicting Interests.
If the Trustee has or shall acquire a conflicting interest within the
meaning of the Trust Indenture Act, the Trustee shall either eliminate such
interest or resign, to the extent and in the manner provided by, and subject to
the provisions of, the Trust Indenture Act and this Indenture and the Company
shall take prompt action to have a successor Trustee appointed in the manner
provided herein. Nothing herein shall prevent the Trustee from filing with the
Commission the application referred to in the second to the last paragraph of
Section 310(b) of the Trust Indenture Act or any equivalent successor
provision.
Section 609. Corporate Trustee Required; Eligibility.
There shall at all times be one or more Trustees hereunder with respect to
the Securities of each series, at least one of which shall be a Person that (i)
is eligible pursuant to the Trust Indenture Act to act as such, (ii) has a
combined capital and surplus of at least $50,000,000, (iii) is subject to
supervision or examination by federal, state or District of Columbia authority,
and (iv) has its Corporate Trust Office in the City of New York, New York. If
such Person publishes reports of condition at least annually, pursuant to law
or to the requirements of said supervising or examining authority, then for the
purposes of this Section, the combined capital and surplus of such Person shall
be deemed to be its combined capital and surplus as set forth in its most
recent report of condition so published. Neither the Company nor any person
directly or
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indirectly controlling, controlled by or under common control with the Company
may serve as Trustee. If at any time the Trustee shall cease to be eligible in
accordance with the provisions of this Section, it shall resign immediately in
the manner and with the effect hereinafter specified in this Article.
Section 610. Resignation and Removal; Appointment of Successor.
No resignation or removal of the Trustee and no appointment of a successor
Trustee pursuant to this Article shall become effective until the acceptance of
appointment by the successor Trustee in accordance with the applicable
requirements of Section 611.
The Trustee may resign at any time with respect to the Securities of one
or more series by giving written notice thereof to the Company. If the
instrument of acceptance by a successor Trustee required by Section 611 shall
not have been delivered to the Trustee within 30 days after the giving of such
notice of resignation, the resigning Trustee may petition any court of
competent jurisdiction for the appointment of a successor Trustee with respect
to the Securities of such series.
The Trustee may be removed at any time with respect to the Securities of
any series by Act of the Holders of a majority in principal amount of the
Outstanding Securities of such series, delivered to the Trustee and to the
Company.
If at any time:
(1) the Trustee shall fail to comply with Section 608 after written
request therefor by the Company or by any Holder who has been a bona fide
Holder of a Security for at least six months, or
(2) the Trustee shall cease to be eligible under Section 609 and
shall fail to resign after written request therefor by the Company or by
any such Holder, or
(3) the Trustee shall become incapable of acting or shall be
adjudged a bankrupt or insolvent or a receiver of the Trustee or of its
property shall be appointed or any public officer shall take charge or
control of the Trustee or of its property or affairs for the purpose of
rehabilitation, conservation or liquidation,
then, in any such case, (A) the Company by a Board Resolution may remove the
Trustee with respect to all Securities, or (B) subject to Section 514, any
Holder who has been a bona fide Holder of a Security for at least six months
may, on behalf of himself or herself and all others similarly situated,
petition any court of competent jurisdiction for the removal of the Trustee
with respect to all Securities and the appointment of a successor Trustee or
Trustees.
If the Trustee shall resign, be removed or become incapable of acting, or
if a vacancy shall occur in the office of Trustee for any cause, with respect
to the Securities of one or more series, the Company, by a Board Resolution,
shall promptly appoint a successor Trustee or Trustees with respect to the
Securities of that or those series (it being understood that any such successor
Trustee may be appointed with respect to the Securities of one or more or all
of such series and that at any time there shall be only one Trustee with
respect to the Securities of any particular series) and shall comply with the
applicable requirements of Section 611. If, within one year after such
resignation, removal or incapability, or the occurrence of such vacancy, a
successor Trustee with respect to the Securities of any Series shall be
appointed by Act of the Holders of a majority in principal amount of the
Outstanding Securities of such series delivered to the Company and the retiring
Trustee, the successor Trustee so appointed shall, forthwith upon its
acceptance of such appointment in accordance with the applicable requirements
of Section 611,
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become the successor Trustee with respect to the Securities of such series and
to that extent supersede the successor Trustee appointed by the Company. If no
successor Trustee with respect to the Securities of any Series shall have been
so appointed by the Company or the Holders and accepted appointment in the
manner required by Section 611, any Holder who has been a bona fide Holder of a
Security of such series for at least six months may, on behalf of himself and
all others similarly situated, petition any court of competent jurisdiction for
the appointment of a successor Trustee with respect to the Securities of such
series.
The Company shall give notice of each resignation and each removal of the
Trustee with respect to the Securities of any series and each appointment of a
successor Trustee with respect to the Securities of any series to all Holders
of Securities of such series in the manner provided in Section 106. Each
notice shall include the name of the successor Trustee with respect to the
Securities of such series and the address of its Corporate Trust Office.
Section 611. Acceptance of Appointment by Successor.
In case of the appointment hereunder of a successor Trustee with respect
to all Securities, every such successor Trustee so appointed shall execute,
acknowledge and deliver to the Company and to the retiring Trustee an
instrument accepting such appointment, and thereupon the resignation or removal
of the retiring Trustee shall become effective and such successor Trustee,
without any further act, deed or conveyance, shall become vested with all the
rights, powers, trusts and duties of the retiring Trustee; but, on the request
of the Company or the successor Trustee, such retiring Trustee shall, upon
payment of its charges, execute and deliver an instrument transferring to such
successor Trustee all the rights, powers and trusts of the retiring Trustee and
shall duly assign, transfer and deliver to such successor Trustee all property
and money held by such retiring Trustee hereunder.
In case of the appointment hereunder of a successor Trustee with respect
to the Securities of one or more (but not all) series, the Company, the
retiring Trustee and each successor Trustee with respect to the Securities of
one or more series shall execute and deliver an indenture supplemental hereto
wherein each successor Trustee shall accept such appointment and that (1) shall
contain such provisions as shall be necessary or desirable to transfer and
confirm to, and to vest in, each successor Trustee all the rights, powers,
trusts and duties of the retiring Trustee with respect to the Securities of
that or those series to which the appointment of such successor Trustee
relates, (2) if the retiring Trustee is not retiring with respect to all
Securities, shall contain such provisions as shall be deemed necessary or
desirable to confirm that all the rights, powers, trusts and duties of the
retiring Trustee with respect to the Securities of that or those series as to
which the retiring Trustee is not retiring shall continue to be vested in the
retiring Trustee, and (3) shall add to or change any of the provisions of this
Indenture as shall be necessary to provide for or facilitate the administration
of the trusts hereunder by more than one Trustee, it being understood that
nothing herein or in such supplemental indenture shall constitute such Trustees
co-trustees of the same trust and that each such Trustee shall be trustee of a
trust or trusts hereunder separate and apart from any trust or trusts hereunder
administered by any other such Trustee; and upon the execution and delivery of
such supplemental indenture the resignation or removal of the retiring Trustee
shall become effective to the extent provided therein and each such successor
Trustee, without any further act, deed or conveyance, shall become vested with
all the rights, powers, trusts and duties of the retiring Trustee with respect
to the Securities of that or those series to which the appointment of such
successor Trustee relates; but, on request of the Company or any successor
Trustee, such retiring Trustee shall duly assign, transfer and deliver to such
successor Trustee all property and money held by such retiring Trustee
hereunder with respect to the Securities of that or those series to which the
appointment of such successor Trustee relates.
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Upon request of any such successor Trustee, the Company shall execute any
and all instruments for more fully and certainly vesting in and confirming to
such successor Trustee all such rights, powers and trusts referred to herein.
No successor Trustee shall accept its appointment unless at the time of
such acceptance such successor Trustee shall be qualified and eligible under
this Article.
Section 612. Merger, Conversion, Consolidation or Succession to
Business.
Any corporation into which the Trustee may be merged or converted or with
which it may be consolidated, or any corporation resulting from any merger,
conversion or consolidation to which the Trustee shall be a party, or any
corporation succeeding to all or substantially all the corporate trust business
of the Trustee, shall be the successor of the Trustee hereunder, provided such
corporation shall be otherwise qualified and eligible under this Article,
without the execution or filing of any paper or any further act on the part of
any of the parties hereto. In case any Securities shall have been
authenticated, but not delivered, by the Trustee then in office, any successor
by merger, conversion or consolidation to such authenticating Trustee may adopt
such authentication and deliver the Securities so authenticated with the same
effect as if such successor Trustee had itself authenticated such Securities.
In the event any Securities shall not have been authenticated by such
predecessor Trustee, any such successor Trustee may authenticate and deliver
such Securities, in either its own name or that of its predecessor Trustee,
with the full force and effect which this Indenture provides for the
certificate of authentication of the Trustee.
Section 613. Preferential Collection of Claims Against Company.
If and when the Trustee shall be or become a creditor of the Company (or
any other obligor upon the Securities), the Trustee shall be subject to the
provisions of the Trust Indenture Act regarding the collection of claims
against the Company (or any such other obligor).
Section 614. Appointment of Authenticating Agent.
The Trustee may appoint an Authenticating Agent or Agents with respect to
one or more series of Securities or coupons that shall be authorized to act on
behalf of the Trustee to authenticate Securities of such series or any related
coupons issued upon original issue and upon exchange, registration of transfer
or partial redemption thereof or pursuant to Section 306, and Securities or
coupons so authenticated shall be entitled to the benefits of this Indenture
and shall be valid and obligatory for all purposes as if authenticated by the
Trustee hereunder. Wherever reference is made in this Indenture to the
authentication and delivery of Securities or coupons by the Trustee or the
Trustee's certificate of authentication, such reference shall be deemed to
include authentication and delivery on behalf of the Trustee by an
Authenticating Agent and a certificate of authentication executed on behalf of
the Trustee by an Authenticating Agent. Each Authenticating Agent shall be
acceptable to the Company and shall at all times be a corporation organized and
doing business under the laws of the United States of America, any State
thereof or the District of Columbia, authorized under such laws to act as
Authenticating Agent, having a combined capital and surplus of not less than
$50,000,000 and subject to supervision or examination by Federal or State
authority. If such Authenticating Agent publishes reports of condition at
least annually, pursuant to law or to the requirements of said supervising or
examining authority, then for the purposes of this Section, the combined
capital and surplus of such Authenticating Agent shall be deemed to be its
combined capital and surplus as set forth in its most recent report of
condition so published. If at any time an Authenticating Agent shall cease to
be eligible in accordance with the provisions of this Section, such
Authenticating Agent shall resign immediately in the manner and with the effect
specified in this Section.
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Any corporation into which an Authenticating Agent may be merged or
converted or with which it may be consolidated, or any corporation resulting
from any merger, conversion or consolidation to which such Authenticating Agent
shall be a party, or any corporation succeeding to the corporate agency or
corporate trust business of an Authenticating Agent, shall continue to be an
Authenticating Agent, provided such corporation shall be otherwise eligible
under this Section, without the execution or filing of any paper or any further
act on the part of the Trustee or the Authenticating Agent.
An Authenticating Agent may resign at any time by giving written notice
thereof to the Trustee and to the Company. The Trustee may at any time
terminate the agency of an Authenticating Agent by giving written notice
thereof to such Authenticating Agent and to the Company. Upon receiving such a
notice of resignation or upon such a termination, or in case at any time such
Authenticating Agent shall cease to be eligible in accordance with the
provisions of this Section, the Trustee may appoint a successor Authenticating
Agent that shall be acceptable to the Company and shall mail written notice of
such appointment by first-class mail, postage prepaid, to all Holders of
Securities of the series with respect to which such Authenticating Agent will
serve, as their names and addresses appear in the Security Register. Any
successor Authenticating Agent upon acceptance of its appointment hereunder
shall become vested with all the rights, powers and duties of its predecessor
hereunder, with like effect as if originally named as an Authenticating Agent.
No successor Authenticating Agent shall be appointed unless eligible under the
provisions of this Section.
The Company agrees to pay to each Authenticating Agent from time to time
reasonable compensation for its services under this Section.
If an appointment with respect to one or more series is made pursuant to
this Section, the Securities of such series may have endorsed thereon an
alternative certificate of authentication in the following form:
This is one of the Securities of the series designated therein referred to
in the within-mentioned Indenture.
___________________________________________
As Trustee
By: ______________________________________
As Authenticating Agent
By: ______________________________________
Authorized Officer
ARTICLE SEVEN
HOLDERS' LISTS AND REPORTS BY TRUSTEE AND COMPANY
Section 701. Company to Furnish Trustee Names and Addresses of Holders.
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The Company will furnish or cause to be furnished to the Trustee
(1) semi-annually, not later than April 1 and October 1 in each
year, a list for each series of Registered Securities, in such form as
the Trustee may reasonably require, of the names and addresses of the
Holders of Registered Securities of such series as of the preceding March
15 or September 15, as the case may be, and
(2) at such other times as the Trustee may request in writing,
within 30 days after the receipt by the Company of any such request, a
list of similar form and content as of a date not more than 15 days prior
to the time such list is furnished;
excluding from any such list names and addresses received by the Trustee in its
capacity as Security Registrar.
Section 702. Preservation of Information; Communications to Registered
Holders.
The Trustee shall preserve, in as current a form as is reasonably
practicable, the names and addresses of Registered Holders contained in the
most recent list furnished to the Trustee as provided in Section 701 and the
names and addresses of Registered Holders received by the Trustee in its
capacity as Security Registrar. The Trustee may destroy any list furnished to
it as provided in Section 701 upon receipt of a new list so furnished.
The rights of the Registered Holders to communicate with other Holders
with respect to their rights under this Indenture or under the Securities, and
the corresponding rights and privileges of the Trustee, shall be as provided by
the Trust Indenture Act.
Every Holder of Securities, by receiving and holding the same, agrees with
the Company and the Trustee that neither the Company nor the Trustee nor any
agent of either of them shall be held accountable by reason of any disclosure
of information as to names and addresses of Holders made pursuant to the Trust
Indenture Act.
Section 703. Reports by Trustee.
The Trustee shall transmit to Holders such reports concerning the Trustee
and its actions under this Indenture as may be required pursuant to the Trust
Indenture Act at the times and in the manner provided pursuant thereto.
Reports so required to be transmitted at stated intervals of not more than 12
months shall be transmitted no later than March 1 in each calendar year,
commencing in 1997.
A copy of each such report shall, at the time of such transmission to
Holders, be filed by the Trustee with each stock exchange upon which any
Securities are listed, with the Commission and with the Company. The Company
will notify the Trustee when any Securities are listed on any stock exchange.
Section 704. Reports by Company.
The Company shall:
(1) file with the Trustee, within 15 days after the Company is
required to file the same with the 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 the Commission may from time to
time by rules and regulations prescribe) that the Company may be required
to file with the Commission pursuant to Section 13 or Section 15(d) of
the Securities Exchange Act of 1934; or, if the Company is not required
to file
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information, documents or reports pursuant to either of said Sections,
then it shall file with the Trustee and the Commission, in accordance
with rules and regulations prescribed from time to time by the
Commission, such of the supplementary and periodic information, documents
and reports that may be required pursuant to Section 13 of the Securities
Exchange Act of 1934 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;
(2) file with the Trustee and the Commission, in accordance with
rules and regulations prescribed from time to time by the Commission,
such additional information, documents and reports with respect to
compliance by the Company with the conditions and covenants of this
Indenture as may be required from time to time by such rules and
regulations; and
(3) transmit by mail to all Holders, as their names and addresses
appear in the Security Register, within 30 days after the filing thereof
with the Trustee, such summaries of any information, documents and
reports required to be filed by the Company pursuant to paragraphs (1)
and (2) of this Section as may be required by rules and regulations
prescribed from time to time by the Commission.
ARTICLE EIGHT
CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE
Section 801. Company May Consolidate, Etc., Only on Certain Terms.
The Company shall not consolidate with or merge into any other Person or
convey, transfer or lease its properties and assets substantially as an
entirety to any Person, and the Company shall not permit any Person to
consolidate with or merge into the Company or convey, transfer or lease its
properties and assets substantially as an entirety to the Company, unless:
(1) in case the Company shall consolidate with or merge into another
Person or convey, transfer or lease its properties and assets
substantially as an entirety to any Person, the Person formed by such
consolidation or into which the Company is merged or the Person that
acquires by conveyance or transfer, or that leases, the properties and
assets of the Company substantially as an entirety shall be a
corporation, partnership or trust organized and validly existing under
the laws of the United States of America, any state thereof or the
District of Columbia and shall expressly assume, by an indenture
supplemental hereto, executed and delivered to the Trustee, in form
reasonably satisfactory to the Trustee, the due and punctual payment of
the principal of and any premium and interest on all the Securities and
the performance or observance of every covenant of this Indenture on the
part of the Company to be performed or observed and shall have provided
for conversion rights in accordance with Section 1311;
(2) immediately after giving effect to such transaction and treating
any indebtedness that becomes an obligation of the Company or any
Subsidiary as a result of such transaction as having been incurred by the
Company or such Subsidiary at the time of such transaction, no Event of
Default, and no event that, after notice or lapse of time or both, would
become an Event of Default, shall have happened and be continuing;
(3) if, as a result of any such consolidation or merger or such
conveyance, transfer or lease, properties or assets of the Company would
become subject to a mortgage, pledge, lien, security interest or other
encumbrance that would not be permitted
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by this Indenture, the Company or such successor Person, as the case may
be, shall take such steps as shall be necessary effectively to secure the
Securities equally and ratably with (or prior to) all indebtedness
secured thereby; and
(4) the Company has delivered to the Trustee an Officers'
Certificate and an Opinion of Counsel, each stating that such
consolidation, merger, conveyance, transfer or lease and, if a
supplemental indenture is required in connection with such transaction,
such supplemental indenture comply with this Article and that all
conditions precedent herein provided for relating to such transaction
have been complied with.
Section 802. Successor Substituted.
Upon any consolidation of the Company with, or merger of the Company into,
any other Person or any conveyance, transfer or lease of the properties and
assets of the Company substantially as an entirety in accordance with Section
801, the successor Person formed by such consolidation or into which the
Company is merged or to which such conveyance, transfer or lease is made shall
succeed to, and be substituted for, and may exercise every right and power of,
the Company under this Indenture with the same effect as if such successor
Person had been named as the Company herein, and thereafter, except in the case
of a lease, the predecessor Person shall be relieved of all obligations and
covenants under this Indenture and the Securities.
ARTICLE NINE
SUPPLEMENTAL INDENTURES
Section 901. Supplemental Indentures Without Consent of Holders.
Without the consent of any Holders, the Company, when authorized by a
Board Resolution, and the Trustee, at any time and from time to time, may enter
into one or more indentures supplemental hereto, in form reasonably
satisfactory to the Trustee, for any of the following purposes:
(1) to evidence the succession of another Person to the Company and
the assumption by any such successor of the covenants of the Company
herein and in the Securities; or
(2) to cure any ambiguity or defect or correct any inconsistency; or
(3) to provide for uncertificated Securities in addition to
certificated Securities; or
(4) to make any change that does not adversely affect the legal
rights hereunder of any Holder; or
(5) to add to the covenants of the Company such further covenants,
restrictions, conditions or provisions as the Company and the Trustee
shall consider to be for the protection of the Holders, and to make the
occurrence, or the occurrence and continuance, of a default in any such
additional covenants, restrictions, conditions or provisions an Event of
Default permitting the enforcement of all or any of the several remedies
provided in this Indenture as herein set forth; 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
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enforcement upon such an Event of Default or may limit the remedies
available to the Trustee upon such a Event of Default or may limit the
right of the Securityholders to waive such an Event of Default; or
(6) to surrender any right or power herein conferred upon the
Company; or
(7) to modify, eliminate or add to the provisions of this Indenture
to such extent as shall be necessary to effect the qualification of the
Indenture under the Trust Indenture Act, or under any similar federal
statute hereafter enacted; or
(8) before any Securities are issued, to make any other change in
this Indenture not prohibited by the Trust Indenture Act.
Section 902. Supplemental Indentures with Consent of Holders.
With the consent of the Holders of not less than a majority in principal
amount of the Outstanding Securities of each series affected by such
supplemental indenture, by Act of said Holders delivered to the Company and the
Trustee, the Company, when authorized by a Board Resolution, and the Trustee
may enter into an indenture or indentures supplemental hereto for the purpose
of adding any provisions to or changing in any manner or eliminating any of the
provisions of this Indenture or of modifying in any manner the rights of the
Holders of Securities of such series and any related coupons under this
Indenture; provided, however, that no such supplemental indenture shall,
without the consent of the Holder of each Outstanding Security affected
thereby,
(1) change the Stated Maturity of the principal of, or any
installment of principal of or interest on, any Security, or reduce the
principal amount thereof or the rate of interest thereon or any premium
payable upon the redemption thereof, or reduce the amount of the
principal of an Original Issue Discount Security that would be due and
payable upon a declaration of acceleration of the Maturity thereof
pursuant to Section 502, or change the coin or currency in which any
Security or any premium or interest thereon is payable or impair the
right to institute suit for the enforcement of any such payment or
delivery on or after the Stated Maturity thereof (or, in the case of
redemption, on or after the Redemption Date), or
(2) reduce the percentage in principal amount of the Outstanding
Securities of any series, the consent of whose Holders is required for
any such supplemental indenture, or the consent of whose Holders is
required for any waiver (of compliance with certain provisions of this
Indenture or certain defaults hereunder and their consequences) provided
for in this Indenture, or
(3) modify any of the provisions of this Section, Section 513 or
Section 1008, except to increase any such percentage or to provide that
certain other provisions of this Indenture cannot be modified or waived
without the consent of the Holder of each Outstanding Security affected
thereby, provided, however, that this clause shall not be deemed to
require the consent of any Holder with respect to changes in the
references to the "Trustee" and concomitant changes in this Section and
Section 1008, or the deletion of this proviso, in accordance with the
requirements of Sections 611 and 901(1), or
(4) adversely affect any applicable conversion right.
A supplemental indenture that changes or eliminates any covenant or other
provision of this Indenture that has expressly been included solely for the
benefit of one or more particular series of Securities, or that modifies the
rights of the Holders of Securities of such
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series with respect to such covenant or other provision, shall be deemed not to
affect the rights under this Indenture of the Holders of Securities of any
other series.
It shall not be necessary for any Act of Holders under this Section to
approve the particular form of any proposed supplemental indenture, but it
shall be sufficient if such Act shall approve the substance thereof.
Section 903. Execution of Supplemental Indentures.
In executing, or accepting the additional trusts created by, any
supplemental indenture permitted by this Article or the modifications thereby
of the trusts created by this Indenture, the Trustee shall be entitled to
receive, and (subject to Section 601) shall be fully protected in relying upon,
an Opinion of Counsel stating that the execution of such supplemental indenture
is authorized or permitted by this Indenture. The Trustee may, but shall not
be obligated to, enter into any such supplemental indenture that affects the
Trustee's own rights, duties or immunities under this Indenture or otherwise.
Section 904. Effect of Supplemental Indentures.
Upon the execution of any supplemental indenture under this Article, this
Indenture shall be modified in accordance therewith, and such supplemental
indenture shall form a part of this Indenture for all purposes; and every
Holder of Securities theretofore or thereafter authenticated and delivered
hereunder shall be bound thereby.
Section 905. Conformity with Trust Indenture Act.
Every supplemental indenture executed pursuant to this Article shall
conform to the requirements of the Trust Indenture Act.
Section 906. Reference in Securities to Supplemental Indentures.
Securities of any series authenticated and delivered after the execution
of any supplemental indenture pursuant to this Article may, and shall if
required by the Trustee, bear a notation in form approved by the Trustee as to
any matter provided for in such supplemental indenture. If the Company shall
so determine, new Securities of any series so modified as to conform, in the
opinion of the Trustee and the Company, to any such supplemental indenture may
be prepared and executed by the Company and authenticated and delivered by the
Trustee in exchange for Outstanding Securities of such series.
ARTICLE TEN
COVENANTS
Section 1001. Payment of Principal Premium and Interest.
The Company covenants and agrees for the benefit of each series of
Securities that it will duly and punctually pay the principal of and any
premium and interest on the Securities of that series in accordance with the
terms of the Securities and this Indenture. Unless otherwise specified as
contemplated by Section 301 with respect to any series of Securities, any
interest due on Bearer Securities on or before Maturity shall be payable only
upon presentation and surrender of the several coupons for such interest
installments as are evidenced thereby as they severally mature. At the
Company's option, payments of principal or interest may be made by check or by
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transfer to an account maintained by the payee subject, in the case of Bearer
Securities, to the provisions of Section 1002.
Section 1002. Maintenance of Office or Agency.
The Company will maintain in each Place of Payment for any series of
Securities an office or agency where Securities of that series may be presented
or surrendered for payment, where Securities of that series may be surrendered
for registration of transfer, exchange or conversion and where notices and
demands to or upon the Company in respect of the Securities of that series and
this Indenture may be served. If Securities of a series are issuable as Bearer
Securities, the Company will maintain, subject to any laws and regulations
applicable thereto, an office or agency in a Place of Payment for such series
which is located outside the United States where Securities of such series and
the related coupons may be presented and surrendered for payment; provided,
however, that if the Securities of such series are listed on The International
(London) Stock Exchange or any other stock exchange located outside the United
States and said stock exchange shall so require, the Company may maintain a
Paying Agent in London or any other required city located outside the United
States, as the case may be, so long as the Securities of such series are listed
on such exchange. The Company will give prompt written notice to the Trustee
of the location, and any change in the location, of any such office or agency.
If at any time the Company shall fail to maintain any such required office or
agency in respect of any series of Securities or shall fail to furnish the
Trustee with the address thereof, such presentations and surrenders of
Securities of that series may be made and notices and demands may be made or
served at the address of the Trustee, except that Bearer Securities of that
series and the related coupons may be presented and surrendered for payment at
the place specified for that purpose as contemplated by Section 301 or, if no
such place is specified, at the corporate trust office of the Trustee in London
and the Company hereby appoints the same as its agent to receive such
respective presentations, surrenders, notices and demands.
No payment of principal or interest on Bearer Securities shall be made at
any office or agency of the Company in the United States, by check mailed to
any address in the United States, by transfer to an account located in the
United States or upon presentation or surrender in the United States of a
Bearer Security or coupon for payment, even if the payment would be credited to
an account located outside of the United States; provided, however, that if the
Securities of a series are denominated and payable in Dollars, payment of
principal of and any interest on any such Bearer Security shall be made at the
Office of the Company's paying agent in the Borough of Manhattan, the City of
New York, if (but only if) payment in Dollars of the full amount of such
principal, interest or additional amounts, as the case may be, at all offices
or agencies outside the United States maintains for such purpose by the Company
in accordance with its Indenture is illegal or effectively precluded by
exchange controls or other similar restrictions. The Company will give prompt
written notice to the Trustee of the location, and any change in the location,
of such office or agency.
The Company may also from time to time designate one or more other offices
or agencies where the Securities of one or more series may be presented or
surrendered for any or all such purposes and may from time to time rescind such
designations; provided, however, that no such designation or rescission shall
in any manner relieve the Company of its obligation to maintain an office or
agency in each Place of Payment for Securities of any series for such purposes.
The Company will give prompt written notice to the Trustee of any such
designation or rescission and of any change in the location of any such other
office or agency.
Section 1003. Money for Securities Payments to Be Held in Trust.
If the Company shall at any time act as its own Paying Agent with respect
to any series of Securities and any coupons appertaining thereto, it will, on
or before each due date of
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the principal of or any premium or interest on any of the Securities of that
series, segregate and hold in trust for the benefit of the Persons entitled
thereto a sum sufficient to pay the principal and any premium and interest so
becoming due until such sums shall be paid to such Persons or otherwise
disposed of as herein provided and will promptly notify the Trustee of its
action or failure so to act.
Whenever the Company shall have one or more Paying Agents for any series
of Securities and any coupons appertaining thereto, it will, prior to each due
date of the principal of or any premium or interest on any Securities of that
series, deposit with a Paying Agent a sum sufficient to pay such amount, such
sum to be held as provided by the Trust Indenture Act, and (unless such Paying
Agent is the Trustee) the Company will promptly notify the Trustee of its
action or failure so to act.
The Company will cause each Paying Agent for any series of Securities
other than the Trustee to execute and deliver to the Trustee an instrument in
which such Paying Agent shall agree with the Trustee, subject to the provisions
of this Section, that such Paying Agent will (1) comply with the provisions of
the Trust Indenture Act applicable to it as a Paying Agent and (2) during the
continuance of any default by the Company (or any other obligor upon the
Securities of that series) in the making of any payment in respect of the
Securities of that series, and upon the written request of the Trustee,
forthwith pay to the Trustee all sums held in trust by such Paying Agent for
payment in respect of the Securities of that series.
The Company may at any time, for the purpose of obtaining the satisfaction
and discharge of this Indenture or for any other purpose, pay, or by Company
Order direct any Paying Agent to pay, to the Trustee all sums held in trust by
the Company or such Paying Agent, such sums to be held by the Trustee upon the
same trusts as those upon which such sums were held by the Company or such
Paying Agent; and, upon such payment by any Paying Agent to the Trustee, such
Paying Agent shall be released from all further liability with respect to such
money.
Any money deposited with the Trustee or any Paying Agent, or then held by
the Company, in trust for the payment of the principal of or any premium or
interest on any Security of any series and remaining unclaimed for two years
after such principal, premium or interest has become due and payable shall be
paid to the Company on Company Request, or (if then held by the Company) shall
be paid to the Company upon Company Request and be discharged from such trust;
and the Holder of such Security or coupon shall thereafter, as an unsecured
general creditor, look only to the Company for payment thereof, and all
liability of the Trustee or such Paying Agent with respect to such trust money,
and all liability of the Company as trustee thereof, shall thereupon cease;
provided, however, that the Trustee or such Paying Agent, before being required
to make any such repayment, may at the expense of the Company cause to be
published once, in a newspaper published in the English language, customarily
published on each Business Day and of general circulation in the Borough of
Manhattan, the City of New York, New York, notice that such money remains
unclaimed and that, after a date specified therein, which shall not be less
than 30 days from the date of such publication, any unclaimed balance of such
money then remaining will be repaid to the Company.
Section 1004. Statement by Officers as to Default.
The Company will deliver to the Trustee, within 120 days after the end of
each fiscal year of the Company ending after the date hereof, an Officers'
Certificate, stating whether or not to the best knowledge of the signers
thereof the Company is in default in the performance and observance of any of
the terms, provisions and conditions of this Indenture (without regard to any
period of grace or requirement of notice provided hereunder) and, if the
Company shall be in default, specifying all such defaults and the nature and
status thereof of which they may have knowledge.
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Section 1005. Commission Reports.
The Company shall deliver to the Trustee, within 15 days after it files
them with the 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 the Commission may by rules and regulations prescribe) which the Company is
required to file with the Commission pursuant to Section 13 or 15(d) of the
Exchange Act. The Company also shall comply with the other provisions of Trust
Indenture Act Section 314(a). The Company shall timely comply with its
reporting and filing obligations under the applicable federal securities law.
If the Company is at any time not required to file annual or quarterly
reports pursuant to Section 13 or 15(d) of the Exchange Act, the Company will
file with the Trustee, within 15 days after the last date on which it would
have been required to make such a filing with the Commission, and will upon
request of a Holder mail to that Holder (as soon as practical after receipt of
such request) at his or her address as it appears on the register of Securities
kept by the Registrar, audited annual financial statements prepared in
accordance with generally accepted accounting principles and unaudited
quarterly financial statements. Such financial statements shall be accompanied
by a Management's Discussion and Analysis of Financial Condition and Results of
Operations of the Company for the period reported upon in substantially the
form required under the rules and regulations of the Commission, or any
successor form of similar disclosure then required under the rules and
regulations of the Commission.
Section 1006. Continued Existence.
Subject to Article 8, the Company will do or cause to be done all things
necessary to preserve and keep in full force and effect its existence as a
corporation and will refrain from taking any action that would cause its
existence as a corporation to cease, including without limitation any action
that would result in its liquidation, winding up or dissolution.
Section 1007. Taxes.
The Company shall pay prior to delinquency all taxes, assessments and
governmental levies, except as contested in good faith and by appropriate
proceedings or where the failure to do so would not have a material adverse
effect on the Company and its subsidiaries, taken as a whole.
Section 1008. Waiver of Certain Covenants.
Unless otherwise specified as contemplated by Section 301, the Company may
omit in any particular instance to comply with any term, provision or condition
set forth in Sections 1001 to 1003 and 1005 to 10007, inclusive, with respect
to the Securities of any series if before the time for such compliance the
Holders of at least a majority in principal amount of the Outstanding
Securities of such series shall, by Act of such Holders, either waive such
compliance in such instance or generally waive compliance with such term,
provision or condition, but no such waiver shall extend to or affect such term,
provision or condition except to the extent so expressly waived, and, until
such waiver shall become effective, the obligations of the Company and the
duties of the Trustee in respect of any such term, provision or condition shall
remain in full force and effect.
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ARTICLE ELEVEN
REDEMPTION OF SECURITIES
Section 1101. Applicability of Article.
Securities of any series that are redeemable before their Stated Maturity
shall be redeemable in accordance with their terms and (except as otherwise
specified as contemplated by Section 301 for Securities of any series) in
accordance with this Article.
Section 1102. Election to Redeem; Notice to Trustee.
The election of the Company to redeem any Securities shall be evidenced by
a Board Resolution. The Company shall, at least 60 days prior to the
Redemption Date fixed by the Company (unless a shorter notice shall be
satisfactory to the Trustee), notify the Trustee of such Redemption Date, of
the principal amount of Securities of such series to be redeemed and, if
applicable, of the tenor of the Securities to be redeemed. In the case of any
redemption of Securities prior to the expiration of any restriction on such
redemption provided in the terms of such Securities or elsewhere in this
Indenture, the Company shall furnish the Trustee with an Officers' Certificate
evidencing compliance with such restriction.
Section 1103. Selection by Trustee of Securities to Be Redeemed.
If less than all the Securities of any series are to be redeemed (unless
all of the Securities of such series and of a specified tenor are to be
redeemed), the particular Securities to be redeemed shall be selected not more
than 60 days prior to the Redemption Date by the Trustee, from the Outstanding
Securities of such series not previously called for redemption, by such method
as the Trustee shall deem fair and appropriate and that may provide for the
selection for redemption of portions (equal to the minimum authorized
denomination for Securities of that series or any integral multiple thereof) of
the principal amount of Securities of such series of a denomination larger than
the minimum authorized denomination for Securities of that series. If less
than all of the Securities of such series and of a specified tenor are to be
redeemed, the particular Securities to be redeemed shall be selected not more
than 60 days prior to the Redemption Date by the Trustee, from the Outstanding
Securities of such series and specified tenor not previously called for
redemption in accordance with the preceding sentence.
The Trustee shall promptly notify the Company in writing of the Securities
selected for redemption and, in the case of any Securities selected for partial
redemption, the principal amount thereof to be redeemed.
For all purposes of this Indenture, unless the context otherwise requires,
all provisions relating to the redemption of Securities shall relate, in the
case of any Securities redeemed or to be redeemed only in part, to the portion
of the principal amount of such Securities that has been or is to be redeemed.
Section 1104. Notice of Redemption.
Notice of redemption shall be given by first-class mail, postage prepaid,
mailed not less than 30 nor more than 60 days prior to the Redemption Date, to
each Holder of Securities to be redeemed, at his or her address appearing in
the Security Register.
All notices of redemption shall state:
(1) the Redemption Date,
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(2) the Redemption Price,
(3) if less than all the Outstanding Securities of any series are to
be redeemed, the identification (and, in the case of partial redemption
of any Securities, the principal amounts) of the particular Securities to
be redeemed,
(4) that on the Redemption Date the Redemption Price will become due
and payable upon each such Security to be redeemed and, if applicable,
that interest thereon will cease to accrue on and after said date,
(5) if the Security is convertible, the conversion price, the date
on which the right to convert the principal of the Securities to be
redeemed will terminate and the place or places where such Securities may
be surrendered for conversion,
(6) the place or places where such Securities, together in the case
of Bearer Securities with all coupons appertaining thereto, if any,
maturing after the Redemption Date, are to be surrendered for payment of
the Redemption Price,
(7) that the redemption is from a sinking fund, if such is the case,
and
(8) the CUSIP numbers of the Securities to be redeemed.
Notice of redemption of Securities to be redeemed at the election of the
Company shall be given by the Company or, at the Company's request, by the
Trustee in the name and at the expense of the Company and shall be irrevocable.
Section 1105. Deposit of Redemption Price.
Prior to any Redemption Date, the Company shall deposit with the Trustee
or with a Paying Agent (or, if the Company is acting as its own Paying Agent,
segregate and hold in trust as provided in Section 1003) an amount of money
sufficient to pay the Redemption Price of, and (except if the Redemption Date
shall be an Interest Payment Date) accrued interest on, all the Securities that
are to be redeemed on that date.
Section 1106. Securities Payable on Redemption Date.
Notice of redemption having been given as aforesaid, the Securities so to
be redeemed shall, on the Redemption Date, become due and payable at the
Redemption Price therein specified, and from and after such date (unless the
Company shall default in the payment of the Redemption Price and accrued
interest) such Securities shall cease to bear interest and the coupons for such
interest appertaining to any Bearer Securities so to be redeemed, except as
otherwise provided herein, shall be void. Upon surrender of any such Security
for redemption in accordance with said notice, together with all coupons, if
any, appertaining thereto, maturing after the Redemption Date, such Security
shall be paid by the Company at the Redemption Price, together with accrued
interest to the Redemption Date; provided, however, that installments of
interest on Bearer Securities whose Stated Maturity is on or prior to the
Redemption Date shall be payable only at an office or agency located outside
the United States (except as otherwise provided in Section 1002) and, unless
otherwise specified as contemplated by Section 301, only upon presentation and
surrender of coupons for such interest; and provided, further, that, unless
otherwise specified as contemplated by Section 301, installments of interest
whose Stated Maturity is on or prior to the Redemption Date shall be payable to
the Holders of such Securities, or one or more Predecessor Securities,
registered as such at the close of business on the relevant Record Dates
according to their terms and the provisions of Section 307.
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If any Bearer Security surrendered for redemption shall not be accompanied
by all pertinent coupons maturing after the Redemption Date, such Security may
be paid after deducting from the Redemption Price an amount equal to the face
amount of all such missing coupons, or the surrender of such missing coupon or
coupons may be waived by the Company and the Trustee if there may be furnished
to them such security or indemnity as they may require to save each of them and
any Paying Agent harmless. If thereafter the Holder of such Security shall
surrender to the Trustee or any Paying Agent 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; provided, however,
that interest represented by coupons shall be payable only at an office or
agency located outside the United States (except as otherwise provided in
Section 1002) and, unless otherwise specified as contemplated by Section 301,
only upon presentation and surrender of those coupons.
If any Security called for redemption shall not be so paid upon surrender
thereof for redemption, the principal and any premium shall, until paid, bear
interest from the Redemption Date at the rate prescribed therefor in the
Security.
Section 1107. Securities Redeemed in Part.
Any Registered Security that is to be redeemed only in part shall be
surrendered at a Place of Payment therefor (with, if the Company or the Trustee
so requires, due endorsement by, or a written instrument of transfer in form
satisfactory to the Company and the Trustee duly executed by, the Holder
thereof or his or her attorney duly authorized in writing), and the Company
shall execute, and the Trustee shall authenticate and deliver to the Holder of
such Registered Security without service charge, a new Registered Security or
Securities of the same series and of like tenor, of any authorized denomination
as requested by such Holder, in aggregate principal amount equal to and in
exchange for the unredeemed portion of the principal of the Security so
surrendered.
ARTICLE TWELVE
SINKING FUNDS
Section 1201. Applicability of Article.
The provisions of this Article shall be applicable to any sinking fund for
the retirement of Securities of a series except as otherwise specified as
contemplated by Section 301 for Securities of such series.
The minimum amount of any sinking fund payment provided for by the terms
of Securities of any series is herein referred to as a "mandatory sinking fund
payment," and any payment in excess of such minimum amount provided for by the
terms of Securities of any series is herein referred to as an "optional sinking
fund payment." If provided for by the terms of Securities of any series, the
cash amount of any sinking fund payment may be subject to reduction as provided
in Section 1202. Each sinking fund payment shall be applied to the redemption
of Securities of any series as provided for by the terms of Securities of such
series.
Section 1202. Satisfaction of Sinking Fund Payments with Securities.
The Company (1) may deliver Outstanding Securities of a series (other than
any previously called for redemption), together in the case of Bearer
Securities with all unmatured coupons appertaining thereto, and (2) may apply
as a credit Securities of a series that have been redeemed either at the
election of the Company pursuant to the terms of such Securities or
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through the application of permitted optional sinking fund payments pursuant to
the terms of such Securities, in each case in satisfaction of all or any part
of any sinking fund payment with respect to the Securities of such series
required to be made pursuant to the terms of such Securities as provided for by
the terms of such series; provided that such Securities have not been
previously so credited. Such Securities shall be received and credited for
such purpose by the Trustee at the Redemption Price specified in such
Securities for redemption through operation of the sinking fund and the amount
of such sinking fund payment shall be reduced accordingly.
Section 1203. Redemption of Securities for Sinking Fund.
Not less than 60 days prior to each sinking fund payment date for any
series of Securities, the Company shall deliver to the Trustee an Officers'
Certificate specifying the amount of the next ensuing sinking fund payment for
that series pursuant to the terms of that series, the portion thereof, if any,
which is to be satisfied by payment of cash and the portion thereof, if any,
which is to be satisfied by delivering and crediting Securities of that series
pursuant to Section 1202 and will also deliver to the Trustee any Securities to
be so delivered. Not less than 30 days before each such sinking fund payment
date the Trustee shall select the Securities to be redeemed upon such sinking
fund payment date in the manner specified in Section 1103 and cause notice of
the redemption thereof to be given in the name of and at the expense of the
Company in the manner provided in Section 1104. Such notice having been duly
given, the redemption of such Securities shall be made upon the terms and in
the manner stated in Sections 1106 and 1107.
ARTICLE THIRTEEN
CONVERSION OF SECURITIES
Section 1301. Conversion Privilege and Conversion Price.
If pursuant to Section 301 any series of Securities is to be convertible,
then, subject to and upon compliance with the provisions of this Article, at the
option of the Holder thereof, any Security of such series or any portion of the
principal amount thereof may be converted at the principal amount thereof, or
of such portion thereof, into fully paid and nonassessable shares (calculated
as to each conversion to the nearest 1/100 of a share) of Series A Common Stock
of the Company, at the conversion price, determined as hereinafter provided, in
effect at the time of conversion. In case a Security or portion thereof is
called for redemption or is repurchased, such conversion right in respect of
the Security or portion so called shall expire at the close of business on the
Redemption Date or the repurchase date, unless the Company defaults in making
the payment due upon redemption or repurchase.
The price at which shares of Series A Common Stock shall be delivered upon
conversion (herein called the "conversion price") shall be specified pursuant
to Section 301. The conversion price shall be reduced in certain instances as
provided in paragraphs (1), (2), (3), (4), (5), (6), (7) and (9) of Section
1304 and shall be increased in certain instances as provided in paragraph (3)
of Section 1304.
In case the Company shall, by dividend or otherwise, declare or make a
distribution on its Series A Common Stock referred to in paragraph (4) or (5)
of Section 1304, the Holder of each Security, upon the conversion thereof
pursuant to this Article subsequent to the close of business on the date fixed
for the determination of stockholders entitled to receive such distribution and
prior to the effectiveness of the conversion price adjustment in respect of
such distribution pursuant to paragraph (4) or (5) of Section 1304, shall also
be entitled to receive for each share of Series A Common Stock into which such
Security is converted, the portion of the evidences of indebtedness, shares of
capital stock, cash and assets so distributed applicable to
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one share of Series A Common Stock, provided that, at the election of the
Company (whose election shall be evidenced by a Board Resolution) with respect
to all Holders so converting, the Company may, in lieu of distributing to such
Holder any portion of such distribution not consisting of cash or securities of
the Company, pay such Holder an amount in cash equal to the fair market value
thereof (as determined by the Board of Directors, whose determination shall be
conclusive and described in a Board Resolution). If any conversion of a
Security described in the immediately preceding sentence occurs prior to the
payment date for a distribution to holders of Series A Common Stock that the
Holder of the Security so converted is entitled to receive in accordance with
the immediately preceding sentence, the Company may elect (such election to be
evidenced by a Board Resolution) to distribute to such Holder a due bill for
the evidences of indebtedness, shares of capital stock, cash or assets to which
such Holder is so entitled, provided that such due bill (i) meets any
applicable requirements of the principal national securities exchange or other
market on which the Series A Common Stock is then traded and (ii) requires
payment or delivery of such evidences of indebtedness, shares of capital stock,
cash or assets no later than the date of payment or delivery thereof to holders
of Series A Common Stock receiving such distribution.
Section 1302. Exercise of Conversion Privilege.
In order to exercise the conversion privilege, the Holder of any Security
to be converted shall surrender such Security, duly endorsed or assigned to the
Company or in blank in the case of Registered Securities, together in the case
of Bearer Securities with all unmatured coupons and any unmatured coupons in
default appertaining thereto, at any office or agency of the Company maintained
for that purpose pursuant to Section 1002, accompanied by written notice to the
Company at such office or agency that the Holder elects to convert such
Security or, if less than the entire principal amount thereof is to be
converted, the portion thereof to be converted. Registered Securities
surrendered for conversion during the period from the close of business on any
Regular Record Date next preceding any Interest Payment Date to the opening of
business on such Interest Payment Date shall (except in the case of Registered
Securities or portions thereof that have been called for redemption, or are to
be repurchased, on such Interest Payment Date or on a Redemption Date or a
repurchase date within the period beginning on such Regular Record Date and
ending on such Interest Payment Date) be accompanied by payment of an amount
equal to the interest payable on such Interest Payment Date on the principal
amount of Securities being surrendered for conversion (or, if such Registered
Security was issued in exchange for a Bearer Security after the close on such
Regular Record Date, by surrender of one or more coupons relating to such
Interest Payment Date or by both payment in such funds and surrender of such
coupon or coupons, in either case, in an amount equal to the interest payable
on such Interest Payment Date on the principal amount of the Registered
Security then being converted). Except as provided in the preceding sentence
and subject to the fifth paragraph of Section 307, no payment or adjustment
shall be made upon any conversion on account of any interest accrued on the
Securities surrendered for conversion or on account of any dividends on the
Series A Common Stock issued upon conversion.
Securities shall be deemed to have been converted immediately prior to the
close of business on the day of surrender of such Securities for conversion in
accordance with the foregoing provisions, and at such time the rights of the
Holders of such Securities as Holders shall cease, and the person or persons
entitled to receive the Series A Common Stock issuable upon conversion shall be
treated for all purposes as the record holder or holders of such Series A
Common Stock at such time. As promptly as practicable on or after the
conversion date, the Company shall issue and shall deliver at such office or
agency a certificate or certificates for the number of full shares of Series A
Common Stock issuable upon conversion, together with payment in lieu of any
fraction of a share, as provided in Section 1303.
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In the case of any Security that is converted in part only, upon such
conversion the Company shall execute and the Trustee shall authenticate and
deliver to the Holder thereof, at the expense of the Company, a new Security or
Securities of authorized denominations in aggregate principal amount equal to
the unconverted portion of the principal amount of such Security, along with
the coupons appertaining thereto.
Section 1303. Fractions of Shares.
No fractional shares of Series A Common Stock shall be issued upon
conversion of Securities. If more than one Security shall be surrendered for
conversion at one time by the same Holder, the number of full shares that shall
be issuable upon conversion thereof shall be computed on the basis of the
aggregate principal amount of the Securities (or, in the case of Registered
Securities, specified portions thereof) so surrendered. Instead of any
fractional share of Series A Common Stock that would otherwise be issuable upon
conversion of any Security or securities (or, in the case of Registered
Securities, specified portions thereof), the Company shall pay a cash
adjustment in respect of such fraction in an amount equal to the same fraction
of the Closing Price at the close of business on the date of conversion.
Section 1304. Adjustment of Conversion Price.
(1) In case the Company shall pay or make a dividend or other distribution
on its Series A Common Stock exclusively in Series A Common Stock or shall pay
or make a dividend or other distribution on any other class of capital stock of
the Company which dividend or distribution includes Series A Common Stock, the
conversion price in effect at the opening of business on the day following the
day fixed for the determination of stockholders entitled to receive such
dividend or other distribution shall be reduced by multiplying such conversion
price by a fraction of which the numerator shall be the number of shares of
Series A Common Stock outstanding at the close of business on the date fixed
for such determination and the denominator shall be the sum of such number of
shares and the total number of shares constituting such dividend or other
distribution, such reduction to become effective immediately after the opening
of business on the day following the date fixed for such determination. For
the purposes of this paragraph (1), the number of shares of Series A Common
Stock at any time outstanding shall not include shares held in the treasury of
the Company but shall include shares issuable in respect of scrip certificates
issued in lieu of fractions of shares of Series A Common Stock. The Company
shall not pay any dividend or make any distribution on shares of Series A
Common Stock held in the treasury of the Company.
(2) Subject to the last sentence of paragraph (7) of this Section, in case
the Company shall pay or make a dividend or other distribution on its Series A
Common Stock consisting exclusively of, or shall otherwise issue to all holders
of its Series A Common Stock, rights or warrants entitling the holders thereof
to subscribe for or purchase shares of Series A Common Stock at a price per
share less than the current market price per share (determined as provided in
paragraph (8) of this Section) of the Series A Common Stock on the date fixed
for the determination of stockholders entitled to receive such rights or
warrants, the conversion price in effect at the opening of business on the day
following the date fixed for such determination shall be reduced by multiplying
such conversion price by a fraction of which the numerator shall be the number
of shares of Series A Common Stock outstanding at the close of business on the
date fixed for such determination plus the number of shares of Series A Common
Stock which the aggregate of the offering price of the total number of shares
of Series A Common Stock so offered for subscription or purchase would purchase
at such current market price and the denominator shall be the number of shares
of Series A Common Stock outstanding at the close of business on the date fixed
for such determination plus the number of shares of Series A Common Stock so
offered for subscription or purchase, such reduction to become effective
immediately after the opening of business on the day following the date fixed
for such determination. For the
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purposes of this paragraph (2), the number of shares of Series A Common Stock
at any time outstanding shall not include shares held in the treasury of the
Company but shall include shares issuable in respect of scrip certificates
issued in lieu of fractions of shares of Series A Common Stock. The Company
shall not issue any rights or warrants in respect of shares of Series A Common
Stock held in the treasury of the Company.
(3) In case outstanding shares of Series A Common Stock shall be
subdivided into a greater number of shares of Series A Common Stock, the
conversion price in effect at the opening of business on the day following the
day upon which such subdivision becomes effective shall be proportionately
reduced, and, conversely, in case outstanding shares of Series A Common Stock
shall each be combined into a smaller number of shares of Series A Common
Stock, the conversion price in effect at the opening of business on the day
following the day upon which such combination becomes effective shall be
proportionately increased, such reduction or increase, as the case may be, to
become effective immediately after the opening of business on the day following
the day upon which such subdivision or combination becomes effective.
(4) Subject to the last sentence of this paragraph (4), in case the
Company shall, by dividend or otherwise, distribute to all holders of its
Series A Common Stock evidences of its indebtedness, shares of any class of
capital stock, cash or assets (including securities, but excluding any rights
or warrants referred to in paragraph (2) of this Section, excluding any
dividend or distribution paid exclusively in cash and excluding any dividend or
distribution referred to in paragraph (1) of this Section), the conversion
price shall be reduced so that the same shall equal the price determined by
multiplying the conversion price in effect immediately prior to the
effectiveness of the conversion price reduction contemplated by this paragraph
(4) by a fraction of which the numerator shall be the current market price per
share (determined as provided in paragraph (8) of this Section) of the Series A
Common Stock on the date of such effectiveness less the fair market value (as
determined in good faith by the Board of Directors, whose determination shall
be conclusive and described in a Board Resolution), on the date of such
effectiveness, of the portion of the evidences of indebtedness, shares of
capital stock, cash and assets so distributed applicable to one share of Series
A Common Stock and the denominator shall be such current market price per share
of the Series A Common Stock, such reduction to become effective immediately
prior to the opening of business on the day following the later of (a) the date
fixed for the payment of such distribution and (b) the date 20 days after the
notice relating to such distribution is given pursuant to Section 1306(a) (such
later date of (a) and (b) being referred to as the "Reference Date"). If the
Board of Directors determines the fair market value of any distribution for
purposes of this paragraph (4) by reference to the actual or when issued
trading market for any securities comprising such distribution, it must in
doing so consider the prices in such market over the same period used in
computing the current market price per share pursuant to paragraph (8) of this
Section. For purposes of this paragraph (4), any dividend or distribution that
includes shares of Series A Common Stock, rights or warrants to subscribe for
or purchase shares of Series A Common Stock or other securities convertible
into or exchangeable for shares of Series A Common Stock shall be deemed
instead to be (a) a dividend or distribution of the evidences of indebtedness,
cash, assets or shares of capital stock other than such shares of Series A
Common Stock, such rights or warrants or such other convertible or exchangeable
securities (making any conversion price reduction required by this paragraph
(4)), immediately followed by (b) in the case of such shares of Series A Common
Stock or such rights or warrants, a dividend or distribution thereof (making
any further conversion price reduction required by paragraph (1) or (2) of this
Section, except (i) the Reference Date of such dividend or distribution as
defined in this paragraph (4) shall be substituted for "the date fixed for the
determination of stockholders entitled to receive such distribution" and "the
date fixed for such determination" within the meaning of paragraphs (1) and (2)
of this Section and (ii) any shares of Series A Common Stock included in such
dividend or distribution shall not be deemed "outstanding at the close of
business on the date fixed for such determination" within the meaning of
paragraph (1) of this Section) or (c) in the case of such other convertible or
exchangeable securities, a dividend or
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distribution of such number of shares of Series A Common Stock as would then be
issuable upon the conversion or exchange thereof, whether or not the conversion
or exchange of such securities is subject to any conditions (making any further
conversion price reduction required by paragraph (1) of this Section, except
(i) the Reference Date of such dividend or distribution as defined in this
paragraph (4) shall be substituted as "the date fixed for the determination of
stockholders entitled to receive such distribution" and "the date fixed for
such determination" and (ii) the shares deemed to constitute such dividend or
distribution shall not be deemed "outstanding at the close of business on the
date fixed for such determination", each within the meaning of paragraph (1) of
this Section).
(5) In case the Company shall, by dividend or otherwise, at any time
distribute to all holders of its Series A Common Stock cash (excluding any cash
that is distributed as part of a distribution referred to in paragraph (4) of
this Section) in an aggregate amount that, together with (i) the aggregate
amount of any other distributions to all holders of its Series A Common Stock
made exclusively in cash within the 12 months preceding the date of payment of
such distribution and in respect of which no conversion price adjustment
pursuant to this paragraph (5) has been made and (ii) the aggregate of any cash
plus the fair market value (as determined by the Board of Directors, whose
determination shall be conclusive and described in a Board Resolution) of
consideration payable in respect of any tender offer by the Company or a
Subsidiary for all or any portion of the Company's Series A Common Stock
concluded within the 12 months preceding the date of payment of such
distribution and in respect of which no conversion price adjustment pursuant to
paragraph (6) of this Section has been made, exceeds 10% of the product of the
current market price per share (determined as provided in paragraph (8) of this
Section) of the Series A Common Stock on the date fixed for stockholders
entitled to receive such distribution, times the number of shares of Series A
Common Stock outstanding on such date, the conversion price shall be reduced so
that the same shall equal the price determined by multiplying the conversion
price in effect immediately prior to the effectiveness of the conversion price
reduction contemplated by this paragraph (5) by a fraction of which the
numerator shall be the current market price per share (determined as provided
in paragraph (8) of this Section) of the Series A Common Stock on the date of
such effectiveness less the amount of cash so distributed applicable to one
share of Series A Common Stock and the denominator shall be such current market
price per share of the Series A Common Stock, such reduction to become
effective immediately prior to the opening of business on the later of (a) the
day following the date fixed for the payment of such distribution and (b) the
date 20 days after the notice relating to such distribution is given pursuant
to Section 1306(a).
(6) In case a tender offer made by the Company or any Subsidiary for all
or any portion of the Company's Series A Common Stock shall expire and such
tender offer shall involve an aggregate consideration having a fair market
value (as determined by the Board of Directors, whose determination shall be
conclusive and described in a Board Resolution) on the last time (the
"Expiration Time") tenders may be made pursuant to such tender offer (as it may
be amended) that, together with (i) the aggregate of the cash plus the fair
market value (as determined by the Board of Directors, whose determination
shall be conclusive and described in a Board Resolution), as of the expiration
of such tender offer, of consideration payable in respect of any tender offer
by the Company, or a Subsidiary for all or any portion of the Company's Series
A Common Stock expiring within the 12 months preceding the expiration of such
tender offer and in respect of which no conversion price adjustment pursuant to
this paragraph (6) has been made and (ii) the aggregate amount of any
distributions to all holders of the Company's Series A Common Stock made
exclusively in cash within the 12 months preceding the expiration of such
tender offer and in respect of which no conversion price adjustment pursuant to
paragraph (5) of this Section has been made, exceeds 5% of the product of the
current market price per share determined as provided in paragraph (8) of this
Section) of the Series A Common Stock on the Expiration Time times the number
of shares of Series A Common Stock outstanding (including any tendered shares)
on the Expiration Time, the conversion price shall be reduced so that the
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same shall equal the price determined by multiplying the conversion price in
effect immediately prior to the Expiration Time by a fraction of which the
numerator shall be (i) the product of the current market price per share
(determined as provided in paragraph (8) of this Section) of the Series A
Common Stock on the Expiration Time times the number of shares of Series A
Common Stock outstanding (including any tendered shares) on the Expiration Time
key minus (ii) the fair market value (determined as aforesaid) of the aggregate
consideration payable to stockholders based on the acceptance (up to any
maximum specified in the terms of the tender offer) of all shares validly
tendered and not withdrawn as of the Expiration Time (the shares deemed so
accepted, up to any such maximum, being referred to as the "Purchased Shares")
and the denominator shall be the product of (i) such current market price per
share on the Expiration Time times (ii) such number of outstanding shares on
the Expiration Time less the number of Purchased Shares, such reduction to
become effective immediately prior to the opening of business on the day
following the Expiration Time. No such adjustment shall be made in the event
of any purchase pursuant to Rule 10b-18 under the Exchange Act.
(7) The reclassification of Series A Common Stock into securities
including securities other than Series A Common Stock (other than any
reclassification upon a consolidation or merger to which Section 1310 applies)
shall be deemed to involve (a) a distribution of such securities other than
Series A Common Stock to all holders of Series A Common Stock (and the
effective date of such reclassification shall be deemed to be "the Reference
Date" within the meaning of paragraph (4) of this Section), and (b) a
subdivision or combination, as the case may be, of the number of shares of
Series A Common Stock outstanding immediately prior to such reclassification
into the number of shares of Series A Common Stock outstanding immediately
thereafter (and the effective date of such reclassification shall be deemed to
be "the day upon which such subdivision becomes effective", or "the day upon
which such combination becomes effective", as the case may be, and "the day
upon which such subdivision or combination becomes effective" within the
meaning of paragraph (3) of this Section). Rights or warrants issued by the
Company to all holders of its Series A Common Stock entitling the holders
thereof to subscribe for or purchase shares of Series A Common Stock, which
rights or warrants (i) are deemed to be transferred with such shares of Series
A Common Stock, (ii) are exercisable and (iii) are also issued in respect of
future issuances of Series A Common Stock, in each case in clauses (i) through
(iii) until the occurrence of a specified event or events ("Trigger Event"),
shall for purposes of this Section 1304 not be deemed issued and the
distribution thereof not be deemed made or paid until the occurrence of the
earliest Trigger Event.
(8) For the purpose of any computation under this paragraph and paragraphs
(2), (4) and (5) of this Section, the current market price per share of Series
A Common Stock on any date shall be deemed to be the average of the Closing
Prices for the five consecutive Trading Days selected by the Company commencing
not more than 20 Trading Days before, and ending not later than, the date in
question; provided, however, that (i) if the "ex" date for any event (other
than the issuance or distribution requiring such computation) that requires an
adjustment to the conversion price occurs on or after the 20th Trading Day
prior to the day in quest ion and prior to the "ex" date for the issuance or
distribution requiring such computation, the Closing Price for each Trading Day
prior to the "ex" date for such other event shall be adjusted by multiplying
such Closing Price by the same fraction by which the conversion price is so
required to be adjusted as a result of such other event, (ii) if the "ex" date
for any event (other than the issuance or distribution requiring such
computation) that requires an adjustment to the conversion price occurs on or
after the "ex" date for the issuance or distribution requiring such computation
and on or prior to the day in question, the Closing Price for each Trading Day
on and after the ex" date for such other event shall be adjusted by multiplying
such Closing Price by the reciprocal of the fraction by which the conversion
price is so required to be adjusted as a result of such other event and (iii)
if the "ex" date for the issuance or distribution requiring such computation is
on or prior to the day in question, after taking into account any adjustment
required pursuant to clause (ii) of this proviso, the Closing Price for each
Trading Day on or after such "ex" date shall be
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adjusted by adding thereto the amount of any cash and the fair market value on
the day in question (as determined by the Board of Directors in a manner
consistent with any determination of such value for purposes of paragraph (4)
or (5) of this Section, whose determination shall be conclusive and described
in a Board Resolution) of the evidences of indebtedness, shares of capital
stock or assets being distributed applicable to one share of Series A Common
Stock as of the close of business on the day before such "ex" date. For the
purpose of any computation under Paragraph (6) of this Section, the current
market price per share of Series A Common Stock on any date shall be deemed to
be the average of the daily Closing Prices for the five consecutive Trading
Days selected by the Company commencing on or after the latest (the
"Commencement Date") of (i) the date 20 Trading Days before the date in
question, (ii) the date of commencement of the tender offer requiring such
computation and (iii) the date of the last amendment, if any, of such tender
offer involving a change in the maximum number of shares for which tenders are
sought or a change in the consideration offered, and ending not later than the
Expiration Time of such tender offer; provided, however, that if the "ex" date
for any such event (other than the tender offer requiring such computation)
that requires an adjustment to the conversion price occurs on or after the
Commencement Date and prior to the Expiration Time for the tender offer
requiring such computation, the Closing Price for each Trading Day prior to the
"ex" date for such other event shall be adjusted by multiplying such Closing
Price by the same fraction by which the conversion price is so required to be
adjusted as a result of such other event. For purposes of this paragraph the
term "ex' date", (i) when used with respect to any issuance or distribution,
means the first date on which the Series A Common Stock trades regular way on
the relevant exchange or in the relevant market from which the Closing price
was obtained without the right to receive such issuance or distribution, (ii)
when used with respect to any subdivision or combination of shares of Series A
Common Stock, means the first date on which the Series A Common Stock trades
regular way on such exchange or in such market after the time at which such
subdivision or combination becomes effective and (iii) when used with respect
to any tender offer means the first date on which the Series A Common Stock
trades regular way on such exchange or in such market after the Expiration Time
of such tender offer.
(9) The Company may make such reductions in the conversion price, in
addition to those required by this Section, as it considers to be advisable in
order that any event treated for Federal income tax purposes as a dividend of
stock or stock rights shall not be taxable to the recipients.
(10) No adjustment in the conversion price shall be required unless such
adjustment would required an increase or decrease of at least 1% in the
conversion price; provided, however, that any adjustments which by reason of
this paragraph (10) are not required to be made shall be carried forward and
taken into account in any subsequent adjustment.
(11) Notwithstanding any other provision of this Section 1304, no
adjustment to the conversion price shall reduce the conversion price below the
then par value per share of the Series A Common Stock, and any such purported
adjustment shall instead reduce the conversion price to such par value. The
Company hereby covenants not to take any action that would or does result in
any adjustment in the conversion price that, if made without giving effect to
the previous sentence, would cause the conversion price to be less than the
then par value per share of the Series A Common Stock.
Section 1305. Notice of Adjustments of Conversion Price.
Whenever the conversion price is adjusted as herein provided and at such
other times as the Trustee shall request:
(a) the Company shall compute the adjusted conversion price in
accordance with Section 1304 and shall prepare a certificate signed by
the Treasurer of the Company
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setting forth the adjusted conversion price and showing in reasonable
detail the facts upon which such adjustment is based, and such
certificate shall forthwith be delivered to the Trustee and filed at each
office or agency maintained for the purpose of conversion of Securities
pursuant to Section 1002; and
(b) the Company shall prepare a notice stating that the conversion
price has been adjusted and setting forth the adjusted conversion price
and shall cause such notice to be mailed to all Holders of Registered
Securities at their last addresses as they shall appear in the Security
Register.
Section 1306. Notice of Certain Corporate Action.
In case:
(a) the Company shall declare a dividend (or any other distribution)
on its Series A Common Stock payable otherwise than in cash out of its
retained earnings; or
(b) the Company shall authorize the granting to the holders of its
Series A Common Stock generally of rights or warrants to subscribe for or
purchase any shares of capital stock of any class or of any other rights;
or
(c) of any reclassification of the Series A Common Stock of the
Company (other than a subdivision or combination of its outstanding
shares of Series A Common Stock), or of any consolidation or merger to
which the Company is a party and for which approval of any stockholders
of the Company is required, or of the sale or transfer of all or
substantially all of the assets of the Company; or
(d) of the voluntary or involuntary dissolution, liquidation or
winding up of the Company; or
(e) the Company or any Subsidiary shall commence a tender offer for
all or a portion of the Company's outstanding shares of Series A Common
Stock (or shall amend any such tender offer);
then the Company shall notify the Trustee and cause to be filed at each office
or agency maintained for the purpose of conversion of securities pursuant to
Section 1002, and shall cause to be mailed to all Holders of Registered
Securities at their last addresses as they shall appear in the Security
Register, at least 20 days (or 10 days in any case specified in clause (a) or
(b) above) prior to the applicable record date hereinafter specified, a notice
stating (x) the date on which a record is to be taken for the purpose of such
dividend, distribution, rights or warrants, or, if a record is not to be taken,
the date as of which the holders of Series A Common Stock of record to be
entitled to such dividend, distribution, rights or warrants are to be
determined or (y) the date on which such reclassification, consolidation,
merger, sale, transfer, dissolution, liquidation or winding up is expected to
become effective, and the date as of which it is expected that holders of
Series A Common Stock of record shall be entitled to exchange their shares of
Series A Common Stock for securities, cash or other property deliverable upon
such reclassification, consolidation, merger, sale, transfer, dissolution,
liquidation or winding up, or (z) the date on which such tender offer
commenced, the date on which such tender offer is scheduled to expire unless
extended, the consideration offered and the other material terms thereof (or
the material terms of any amendment thereto).
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Section 1307. Company to Reserve Series A Common Stock.
The Company shall at all times reserve and keep available, free from
preemptive rights, out of its authorized but unissued Series A Common Stock,
for the purpose of effecting the conversion of Securities, the full number of
shares of Common Stock then issuable upon the conversion of all outstanding
Securities.
Section 1308. Taxes on Conversions.
The Company will pay any and all taxes, other than any franchise or income
taxes, that may be payable in respect of the issue or delivery of shares of
Common stock on conversion of Securities pursuant hereto. The Company shall
not, however, be required to pay any tax that may be payable in respect of any
transfer involved in the issue and delivery of shares of Series A Common Stock
in a name other than that of the Holder of the Security or Securities to be
converted, and no such issue or delivery shall be made unless and until the
person requesting such issue has paid to the Company the amount of any such
tax, or has established to the satisfaction of the Company that such tax has
been paid.
Section 1309. Covenant as to Series A Common Stock.
The Company covenants that all shares of Series A Common Stock that may be
issued upon conversion of Securities will upon issue be fully paid and
nonassessable and, except as provided in Section 1308, the Company will pay all
taxes, liens and charges with respect to the issue thereof.
Section 1310. Cancellation of Converted Securities.
All Securities delivered for conversion shall be delivered to the Trustee
to be canceled by or at the direction of the Trustee, which shall dispose of
the same as provided in Section 309.
Section 1311. Provisions in the Case of Consolidation, Merger or Sales
of Assets.
In case of any consolidation of the Company with, or merger of the Company
into, any other corporation, or in case of any merger of another corporation
into the Company (other than a merger which does not result in any
reclassification, conversion, exchange or cancellation of outstanding shares of
Series A Common Stock of the Company), or in case of any sale or transfer of
all or substantially all of the assets of the Company, the corporation formed
by such consolidation or resulting from such merger or which acquires such
assets, as the case may be, shall execute and deliver to the trustee a
supplemental indenture providing that the Holder of each Security then
outstanding shall have the right thereafter, during the period such Security
shall be convertible as specified in Section 1301, to convert such Security
only into the kind and amount of securities, cash and other property receivable
upon such consolidation, merger, sale or transfer by a holder of the number of
shares of Series A Common Stock of the Company into which such Security might
have been converted immediately prior to such consolidation, merger, sale or
transfer, assuming such holder of Series A Common Stock of the Company failed
to exercise his or her rights of election, if any, as to the kind or amount of
securities, cash and other property receivable upon such consolidation, merger,
sale or transfer (provided that if the kind or amount of securities, cash and
other property receivable upon such consolidation, merger, sale or transfer is
not the same for each share of Series A Common Stock of the company in respect
of which such rights of election shall not have been exercised ("non-electing
share"), then for the purpose of this Section the kind and amount of
securities, cash and other property receivable upon such consolidation, merger,
sale or transfer by each non-electing share shall be deemed to be the kind and
amount so receivable per share by a plurality of the non-electing shares).
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Such supplemental indenture shall provide for adjustments which, for
events subsequent to the effective date of such supplemental indenture, shall
be as nearly equivalent as may be practicable to the adjustments provided for
in this Article. The above provisions of this Section shall similarly apply to
successive consolidations, mergers, sales or transfers.
Section 1312. Responsibility of Trustee.
The Trustee shall not at any time be under any duty or responsibility to
any Holder of a Security to make or cause to be made any adjustment of the
conversion price, or to determine whether any facts exist which may require any
such adjustment, or with respect to the nature or extent of any such adjustment
when made, or with respect to any method employed, or herein or in any
supplemental indenture provided to be employed, in making the same. The
Trustee shall not be accountable with respect to the validity or value (or the
kind or amount) of any shares of Series A Common Stock or of any securities or
property which may at any time be issued or delivered upon conversion of any
Security, and the Trustee makes no representation with respect thereto. The
Trustee shall not be responsible for any failure of the Company to issue,
transfer or deliver any shares of Series A Common Stock or stock certificates
or other securities or property upon surrender of any Security for the purpose
of conversion or to comply with any of the covenants of the Company contained
in this Article Thirteen.
ARTICLE FOURTEEN
DEFEASANCE AND COVENANT DEFEASANCE
Section 1401. Company's Option to Effect Defeasance or Covenant Defeasance.
The Company may elect, at its option by Board Resolution at any time, to
have either Section 1402 or Section 1403 applied to the Outstanding Securities
of any series designated pursuant to Section 301 as being defeasible pursuant
to this Article Fourteen (hereinafter called a "Defeasible Series"), upon
compliance with the conditions set forth below in this Article Fourteen.
Section 1402. Defeasance and Discharge.
Upon the Company's exercise of the option provided in Section 1401 to have
this Section 1402 applied to the Outstanding Securities of any Defeasible
Series, the Company shall be deemed to have been discharged from its
obligations with respect to the Outstanding Securities of such series as
provided in this Section on and after the date the conditions set forth in
Section 1404 are satisfied (hereinafter called "Defeasance"). For this
purpose, such Defeasance means that the Company shall be deemed to have paid
and discharged the entire indebtedness represented by the Outstanding
Securities of such series and any related coupons and to have satisfied all its
other obligations under the Securities of such series, and this Indenture
insofar as the Securities of such series are concerned (and the Trustee, at the
expense of the Company, shall execute proper instruments acknowledging the
same), subject to the following which shall survive until otherwise terminated
or discharged hereunder: (1) the rights of Holders of Securities of such
series to receive, solely from the trust fund described in Section 1404 and as
more fully set forth in such Section, payments in respect of the principal of
and any premium and interest on such Securities of such series when payments
are due, (2) the Company's obligations with respect to the Securities of such
series under Sections 304, 305, 306, 1002 and 1003 and with respect to the
Trustee under Sections 607 and 1405, (3) the rights, powers, trusts, duties and
immunities of the Trustee hereunder and (4) this Article Fourteen. Subject to
compliance with this Article Fourteen, the Company may exercise its option
provided in Section 1401 to have this Section 1402 applied to the Outstanding
Securities of any Defeasible Series notwithstanding the prior
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exercise of its option provided in Section 1401 to have Section 1403 applied to
the Outstanding Securities of such series.
Section 1403. Covenant Defeasance.
Upon the Company's exercise of the option provided in Section 1401 to have
this Section 1403 applied to the Outstanding Securities of any Defeasible
Series, (1) the Company shall be released from its obligations under Sections
1005 through 1008, inclusive, and (2) the occurrence of any event specified in
Sections 501(4) (with respect to any of Sections 1005 through 1008, inclusive)
and 501(7) shall be deemed not to be or result in an Event of Default, in each
case with respect to the Outstanding Securities of such series as provided in
this Section on and after the date the conditions set forth in Section 1404 are
satisfied (hereinafter called "Covenant Defeasance"). For this purpose, such
Covenant Defeasance means that the Company may omit to comply with and shall
have no liability in respect of any term, condition or limitation set forth in
any such specified Section (to the extent so specified in the case of Section
501(4)), whether directly or indirectly by reason of any reference elsewhere
herein to any such Section or by reason of any reference in any such Section to
any other provision herein or in any other document, but the remainder of this
Indenture and the Securities of such series shall be unaffected thereby.
Section 1404. Conditions to Defeasance or Covenant Defeasance.
The following shall be the conditions to application of either Section
1402 or Section 1403 to the Outstanding Securities of any Defeasible Series:
(1) The Company shall irrevocably have deposited or caused to be
deposited with the Trustee (or another trustee that satisfies the
requirements contemplated by Section 609 and agrees to comply with the
provisions of this Article Fourteen applicable to it) as trust funds in
trust for the purpose of making the following payments, specifically
pledged as security for, and dedicated solely to, the benefit of the
Holders of Outstanding Securities of such series, (A) money in an amount,
or (B) U.S. Government Obligations that through the scheduled payment of
principal and interest in respect thereof (without consideration of any
reinvestment thereof) in accordance with their terms will provide, not
later than one day before the due date of any payment, money in an
amount, or (C) a combination thereof, in each case sufficient, in the
opinion of a nationally recognized firm of independent public accountants
expressed in a written certification thereof delivered to the Trustee, to
pay and discharge, and that shall be applied by the Trustee (or any such
other qualifying trustee) to pay and discharge, the principal of and any
premium and interest on the Securities of such series on the respective
Stated Maturities, in accordance with the terms of this Indenture and the
Securities of such series. As used herein, "U.S. Government Obligation"
means (x) any security that is (i) a direct obligation of the United
States of America for the payment of which the full faith and credit of
the United States of America is pledged or (ii) an obligation of a Person
controlled or supervised by and acting as an agency or instrumentality 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 (i) or (ii), is not callable or redeemable
at the option of the issuer thereof, and (y) any depositary receipt
issued by a bank (as defined in Section 3(a)(2) of the Securities Act of
1933, as amended) as custodian with respect to any U.S. Government
Obligation specified in Clause (x) and held by such custodian for the
account of the holder of such depositary receipt, or with respect to any
specific payment of principal of or interest on any such U.S. Government
Obligation; provided, however, that (except as required by law) such
custodian is not authorized to make any deduction from the amount payable
to the holder of such depositary receipt from any amount received by
66
<PAGE> 74
the custodian in respect of the U.S. Government Obligation or the
specific payment of principal or interest evidenced by such depositary
receipt.
(2) In the case of an election under Section 1402, the Company shall
have delivered to the Trustee an Opinion of Counsel stating that (A) the
Company has received from, or there has been published by, the Internal
Revenue Service a ruling or (B) since the date first set forth
hereinabove, there has been a change in the applicable Federal income tax
law, in either case (A) or (B) to the effect that, and based thereon such
opinion shall confirm that, the Holders of the Outstanding Securities of
such series will not recognize income, gain or loss for Federal income
tax purposes as a result of the deposit, Defeasance and discharge to be
effected with respect to the Securities of such series and will be
subject to Federal income tax on the same amount, in the same manner and
at the same times as would be the case if such deposit, Defeasance and
discharge were not to occur.
(3) In the case of an election under Section 1403, the Company shall
have delivered to the Trustee an Opinion of Counsel to the effect that
the Holders of the Outstanding Securities of such series will not
recognize income, gain or loss for Federal income tax purposes as a
result of the deposit and Covenant Defeasance to be effected with respect
to the Securities of such series and will be subject to Federal income
tax on the same amount, in the same manner and at the same times as would
be the case if such deposit and Covenant Defeasance were not to occur.
(4) The Company shall have delivered to the Trustee an Officer's
Certificate to the effect that the Securities of such series, if then
listed on any securities exchange, will not be delisted as a result of
such deposit.
(5) No Event of Default or event that (after notice or lapse of time
or both) would become an Event of Default shall have occurred and be
continuing at the time of such deposit or, with regard to any Event of
Default or any such event specified in Sections 501(6) and (7), at any
time on or prior to the 90th day after the date of such deposit (it being
understood that this condition shall not be deemed satisfied until after
such 90th day).
(6) Such Defeasance or Covenant Defeasance shall not cause the
Trustee to have a conflicting interest within the meaning of the Trust
Indenture Act (assuming all Securities are in default within the meaning
of such Act).
(7) Such Defeasance or Covenant Defeasance shall not result in a
breach or violation of, or constitute a default under, any other
agreement or instrument to which the Company is a party or by which it is
bound.
(8) The Company shall have delivered to the Trustee an Officer's
Certificate and an Opinion of Counsel, each stating that all conditions
precedent with respect to such Defeasance or Covenant Defeasance have
been complied with.
(9) Such Defeasance or Covenant Defeasance shall not result in the
trust arising from such deposit constituting an investment company within
the meaning of the Investment Company Act of 1940, as amended, unless
such trust shall be qualified under such Act or exempt from regulation
thereunder.
Section 1405. Deposited Money and U.S. Government Obligations to be Held
in Trust; Other Miscellaneous Provisions.
67
<PAGE> 75
Subject to the provisions of the last paragraph of Section 1003, all money
and U.S. Government Obligations (including the proceeds thereof) deposited with
the Trustee or other qualifying trustee (solely for purposes of this Section
and Section 1406, the Trustee and any such other trustee are referred to
collectively as the "Trustee") pursuant to Section 1404 in respect of the
Securities of any Defeasible Series shall be held in trust and applied by the
Trustee, in accordance with the provisions of the Securities of such series and
this Indenture, to the payment, either directly or through any such Paying
Agent (including the Company acting as its own Paying Agent) as the Trustee may
determine, to the Holders of Securities of such series, of all sums due and to
become due thereon in respect of principal and any premium and interest, but
money so held in trust need not be segregated from other funds except to the
extent required by law.
The Company shall pay and indemnify the Trustee against any tax, fee or
other charge imposed on or assessed against the U.S. Government Obligations
deposited pursuant to Section 1404 or the principal and interest received in
respect thereof other than any such tax, fee or other charge that by law is for
the account of the Holders of Outstanding Securities.
Anything in this Article Fourteen to the contrary notwithstanding, the
Trustee shall deliver or pay to the Company from time to time upon Company
Request any money or U.S. Government Obligations held by it as provided in
Section 1404 with respect to Securities of any Defeasible Series that, in the
opinion of a nationally recognized firm of independent public accountants
expressed in a written certification thereof delivered to the Trustee, are in
excess of the amount thereof that would then be required to be deposited to
effect an equivalent Defeasance or Covenant Defeasance with respect to the
Securities of such series.
Section 1406. Reinstatement.
If the Trustee or the Paying Agent is unable to apply any money in
accordance with this Article Fourteen with respect to the Securities of any
series by reason of any order or judgment of any court or governmental
authority enjoining, restraining or otherwise prohibiting such application,
then the Company's obligations under this Indenture and the Securities of such
series shall be revived and reinstated as though no deposit had occurred
pursuant to this Article Fourteen with respect to Securities of such series
until such time as the Trustee or Paying Agent is permitted to apply all money
held in trust pursuant to Section 1405 with respect to Securities of such
series in accordance with this Article Fourteen; provided, however, that if the
Company makes any payment of principal of or any premium or interest on any
Security of such series following the reinstatement of its obligations, the
Company shall be subrogated to the rights of the Holders of Securities of such
series to receive such payment from the money so held in trust.
ARTICLE FIFTEEN
MEETINGS OF HOLDERS OF SECURITIES
Section 1501. Purposes for Which Meetings May Be Called.
If Securities of a series are issuable in whole or in part as Bearer
Securities, a meeting of Holders of Securities of such series may be called at
any time and from time to time pursuant to this Article to make, give or take
any request, demand, authorization, direction, notice, consent, waiver or other
Act provided by this Indenture to be made, given or taken by Holders of
Securities of such series.
68
<PAGE> 76
Section 1502. Call, Notice and Place of Meetings.
(a) The Trustee may at any time call a meeting of Holders of Securities of
any series issuable as Bearer Securities for any purpose specified in Section
1501, to be held at such time and at such place in the City of Los Angeles, or
the Borough of Manhattan, The City of New York, as the Trustee shall determine.
Notice of every meeting of Holders of Securities of any series, setting forth
the time and the place of such meeting and in general terms the action proposed
to be taken at such meeting, shall be given, in the manner provided in Section
106, not less than 21 nor more than 180 days prior to the date fixed for the
meeting.
(b) In case at any time the Company, pursuant to a Board Resolution, or
the Holders of at least 10% in principal amount of the Outstanding Securities
of any series shall have requested the Trustee to call a meeting of the Holders
of Securities of such series for any purpose specified in Section 1501, by
written request setting forth in reasonable detail the action proposed to be
taken at the meeting, and the Trustee shall not have made the first publication
of the notice of such meeting within 21 days after receipt of such request or
shall not thereafter proceed to cause the meeting to be held as provided
herein, then the Company or the Holders of Securities of such series in the
amount above specified, as the case may be, may determine the time and place in
the City of Los Angeles, or the Borough of Manhattan, The City of New York, for
such meeting and may call such meeting for such purposes by giving notice
thereof as provided in subsection (a) of this Section.
Section 1503. Persons Entitled to Vote at Meetings.
To be entitled to vote at any meeting of Holders of Securities of any
series, a Person shall be (1) a Holder of one or more Outstanding Securities of
such series, or (2) a Person appointed by an instrument in writing as proxy for
a Holder or Holders of one or more Outstanding Securities of such series by
such Holder or Holders. The only Persons who shall be entitled to be present
or to speak at any meeting of Holders of Securities of any series shall be the
Persons entitled to vote at such meeting and their counsel, any representatives
of the Trustee and its counsel and any representatives of the Company and its
counsel.
Section 1504. Quorum; Action.
The Persons entitled to vote a majority in principal amount of the
Outstanding Securities of a series shall constitute a quorum for a meeting of
Holders of Securities of such series. In the absence of a quorum within 30
minutes of the time appointed for any such meeting, the meeting shall, if
convened at the request of Holders of Securities of such series, be dissolved.
In the absence of a quorum in any other case the meeting may be adjourned for a
period of not less than 10 days as determined by the chairman of the meeting
prior to the adjournment of such adjourned meeting. Notice of the reconvening
of any adjourned meeting shall be given as provided in Section 1502(a), except
that such notice need be given only once not less than five days prior to the
date on which the meeting is scheduled to be reconvened. Notice of the
reconvening of an adjourned meeting shall state expressly the percentage, as
provided above, of the principal amount of the Outstanding Securities of such
series which shall constitute a quorum.
Except as limited by the provisos to Section 902, any resolution presented
to a meeting or adjourned meeting duly reconvened at which a quorum is present
as aforesaid may be adopted only by the affirmative vote of the Holders of a
majority in principal amount of the Outstanding Securities of that series;
provided, however, that, except as limited by the provisos to Section 902, any
resolution with respect to any request, demand, authorization, direction,
notice, consent, waiver or other Act which this Indenture expressly provides
may be made, given or taken by the Holders of a specified percentage, which is
less than a majority, in principal amount of the Outstanding Securities of a
series may be adopted at a meeting or an adjourned meeting duly
69
<PAGE> 77
reconvened and at which a quorum is present as aforesaid by the affirmative
vote or the Holders of such specified percentage in principal amount of the
Outstanding Securities of that series.
Any resolution passed or decision taken at any meeting of Holders of
Securities of any series duly held in accordance with this Section shall be
binding on all the Holders of Securities of such series and the related
coupons, whether or not present or represented at the meeting.
Section 1505. Determination of Voting Rights; Conduct and Adjournment of
Meetings.
(a) Notwithstanding any other provisions of this Indenture, the Trustee
may make such reasonable regulations as it may deem advisable for any meeting
of Holders of Securities of such series in regard to proof of the holding of
Securities of such series and of the appointment of proxies and in regard to
the appointment and duties of inspectors of votes, the submission and
examination of proxies, certificates and other evidence of the right to vote,
and such other matters concerning the conduct of the meeting as it shall deem
appropriate. Except as otherwise permitted or required by any such
regulations, the holding of Securities shall be proved in the manner specified
in Section 104 and the appointment of any proxy shall be proved in the manner
specified in Section 104 or, in the case of Bearer Securities, by having the
signature of the person executing the proxy witnessed or guaranteed by any
trust company, bank or banker authorized by Section 104 to certify to the
holding of Bearer Securities. Such regulations may provide that written
instruments appointing proxies, regular on their face, may be presumed valid
and genuine without the proof specified in Section 104 or other proof.
(b) The Trustee shall, by an instrument in writing, appoint a temporary
chairperson of the meeting, unless the meeting shall have been called by the
Company or by Holders of Securities as provided in Section 1502(b), in which
case the Company or the Holders of Securities of the series calling the
meeting, as the case may be, shall in like manner appoint a temporary
chairperson. A permanent chairperson and a permanent secretary of the meeting
shall be elected by vote of the Persons entitled to vote a majority in
principal amount of the Outstanding Securities of such series represented at
the meeting.
(c) At any meeting each Holder of a Security of such series or proxy shall
be entitled to one vote for each $1,000 principal amount (or the equivalent in
ECU, any other composite currency or a Foreign Currency) of Securities of such
series held or represented by him; provided, however, that no vote shall be
cast or counted at any meeting in respect of any Security challenged as not
Outstanding and ruled by the chairperson of the meeting not to be Outstanding.
The chairperson of the meeting shall have no right to vote, except as a Holder
of a Security of such series or proxy.
This instrument may be executed in any number of counterparts, each of
which so executed shall be deemed to be an original, but all such counterparts
shall together constitute but one and the same instrument.
________________________
70
<PAGE> 78
IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be
duly executed, and their respective corporate seals to be hereunto affixed and
attested, all as of the day and year first above written.
THE TIMES MIRROR COMPANY
By: /s/ Steven J. Schoch
----------------------------------
Attest:
/s/ O. Jean Williams
- --------------------------------
CITIBANK, N.A.
By: /s/ Anja Dahlberg
----------------------------------
Attest:
/s/ Louis Piscatelli
- --------------------------------
71
<PAGE> 79
EXHIBIT A-1
[FORM OF CERTIFICATE OF BENEFICIAL OWNERSHIP BY A
NON-UNITED STATES PERSON OR BY CERTAIN OTHER PERSONS]
Certificate
THE TIMES MIRROR COMPANY
[INSERT TITLE OR SUFFICIENT DESCRIPTION OF
SECURITIES TO BE DELIVERED]
Reference is hereby made to the Indenture dated as of ______________ (the
"Indenture") between The Times Mirror Company, a Delaware corporation, and
_____________________, as trustee (the "Trustee") covering the above-captioned
Securities. This is to certify that as of the date hereof, _______________
principal amount of Securities credited to you for our account (i) is owned by
persons that are not United States Persons, as defined below; (ii) is owned by
United States Persons that are (a) foreign branches of United States financial
institutions (as defined in U.S. Treasury Regulations Section
1.165-12(c)(i)(v)) ("financial institutions") purchasing for their own account
or for resale, or (b) United States Persons who acquired the Notes through
foreign branches of United States financial institutions on the date hereof
(and in either case (a) or (b), each such United States financial institution
encloses herewith a certificate in the form of Exhibit A-2 to the Indenture);
or (iii) is owned by United States or foreign financial institutions for
purposes of resale during the restricted period (as defined in U.S. Treasury
Regulations Section 1.153-5(c)(2)(i)(D)(7)), which United States or foreign
financial institutions described in clause (iii) above (whether or not also
described in clause (i) or (ii)) certify that they have not acquired the Notes
for purposes of resale directly or indirectly to a United States Person or to a
person within the United States or its possessions.
[INSERT IF CERTIFICATE DOES NOT RELATE TO AN INTEREST PAYMENT - WE
UNDERTAKE TO ADVISE YOU BY TESTED TELEX FOLLOWED BY WRITTEN CONFIRMATION IF THE
ABOVE STATEMENT AS TO BENEFICIAL OWNERSHIP IS NOT CORRECT ON THE DATE OF
DELIVERY OF THE ABOVE-CAPTIONED SECURITIES IN BEARER FORM AS TO ALL OF SUCH
SECURITIES WITH RESPECT TO SUCH OF SAID SECURITIES AS THEN APPEAR IN YOUR BOOKS
AS BEING HELD FOR ACCOUNT.]
We understand that this certificate is required in connection with United
States tax laws. We irrevocably authorize you to produce this certificate or a
copy hereof to any interested party in any administrative or legal proceedings
with respect to the matters covered by this certificate. "United States
Person" shall mean a citizen or resident of the United States of America
(including the District of Columbia), a corporation, partnership or other
entity created or organized in or under the laws of the United States or any
political subdivision thereof or an estate or trust that is subject to United
States Federal income taxation regardless of the source of its income.
[THIS CERTIFICATE EXCEPTS AND DOES NOT RELATE TO ________________________
PRINCIPAL AMOUNT OF SECURITIES CREDITED TO YOU FOR OUR ACCOUNT AND TO WHICH WE
ARE NOT NOW ABLE TO MAKE THE CERTIFICATION SET FORTH ABOVE. WE UNDERSTAND
THAT DEFINITIVE
<PAGE> 80
SECURITIES CANNOT BE DELIVERED AND INTEREST CANNOT BE PAID UNTIL WE ARE ABLE TO
SO CERTIFY WITH RESPECT TO SUCH PRINCIPAL AMOUNT OF SECURITIES.]*
Dated:___________________
[TO BE DATED ON OR AFTER
_______________________ (THE
DATE DETERMINED AS PROVIDED
IN THE INDENTURE)]
[NAME OF PERSON ENTITLED TO RECEIVE
BEARER SECURITY]
___________________________________
(Authorized Signatory)
Name: _____________________________
Title: ____________________________
__________
* Delete if inappropriate.
<PAGE> 81
EXHIBIT A-2
[FORM OF CERTIFICATE OF STATUS AS A FOREIGN BRANCH OF A
UNITED STATES FINANCIAL INSTITUTION]
CERTIFICATE
THE TIMES MIRROR COMPANY
[INSERT TITLE OF SUFFICIENT DESCRIPTION OF
SECURITIES TO BE DELIVERED]
Reference is hereby made to the Indenture dated as of _______________, the
("Indenture"), between The Times Mirror Company and ______________________, as
Trustee, relating to the offering of the above-captioned Securities (the
"Securities"). Unless herein defined, terms used herein have the same meaning
as given to them in the Indenture.
The undersigned represents that it is a branch located outside the United
States of a United States securities clearing organization, bank or other
financial institution (as defined in U.S. Treasury Regulations Section
1.165-12(c)(1)(v)) that holds customers' securities in the ordinary course of
its trade or business and agrees, and authorizes you to advise the issuer or
the issuer's agent, that it will comply with the requirements of Section
165(j)(3)(A), (B) or (C) of the Internal Revenue Code of 1986 and the
regulations thereunder and is not purchasing for resale directly or indirectly
to a United States Person or to a person within the United States or its
possessions. We undertake to advise you by tested telex followed by written
confirmation if the statement in the immediately preceding sentence is not
correct on the date of delivery of the above-captioned Securities in bearer
form.
We understand that this certificate is required in connection with the
United States tax laws. We irrevocably authorize you to produce this
certificate or a copy hereof to any interested party in any administrative or
legal proceedings with respect to the matters covered by this certificate.
Dated:__________________
[TO BE DATED ON OR AFTER
_______________________ (THE DATE DETERMINED
AS PROVIDED IN THE INDENTURE)]
[NAME OF PERSON ENTITLED TO RECEIVE
BEARER SECURITY]
__________________________________________
(Authorized Signatory)
Name:_____________________________________
Title:______________________________________
<PAGE> 82
EXHIBIT B
[FORM OF CERTIFICATE TO BE GIVEN BY EUROCLEAR
AND CEDEL S.A. IN CONNECTION WITH THE EXCHANGE OF
ALL OR A PORTION OF A TEMPORARY GLOBAL SECURITY OF TO OBTAIN
INTEREST PRIOR TO EXCHANGE]
CERTIFICATE
THE TIMES MIRROR COMPANY
[Insert title of Securities to be delivered]
We refer to that portion, _____________, of the Global Security
representing the above-captioned issue [which is herewith submitted to be
exchanged for definitive Securities] [for which we are seeking to obtain
payment of interest] (the "Submitted Portion"). This is to certify, pursuant
to the Indenture dated ____________ (the "Indenture") between The Times Mirror
Company and ______________________, as Trustee (the "Trustee), that we have
received in writing, by tested telex or by electronic transmission from member
organizations with respect to each of the persons appearing in our records as
being entitled to a beneficial interest in the Submitted Portion a Certificate
of Beneficial Ownership by a Non-United States Person or by Certain Other
Person, [and, in some cases, a Certificate of Status as a Foreign Branch of a
United States Financial Institution, authorizing us to inform the issuer or
issuer's agent that it will comply with the requirements of Section
165(j)(3)(A), (B) or (C) of the Internal Revenue Code of 1986 and the
regulations thereunder] substantially in the form of Exhibit A-1 [and A-2] to
the Indenture.
We hereby request that you deliver to the office of ____________________
in _________________ definitive Bearer Securities in the denominations on the
attached Schedule A.
We further certify that as of the date hereof we have not received any
notification from any of the persons giving such certificates to the effect
that the statements made by them with respect to any part of the Submitted
Portion are no longer true and cannot be relied on as of the date hereof.
Dated:__________________________
[Morgan Guaranty Trust Company of New
York, Brussels Office, as operator of
the Euroclear System]
[Cedel S.A.]
By:_______________________________________
<PAGE> 1
EXHIBIT 4.2
OFFICERS' CERTIFICATE PURSUANT TO
SECTIONS 102 AND 301 OF THE INDENTURE
The undersigned officers of The Times Mirror Company, a Delaware
corporation (the "Company"), pursuant to the authority granted such officers
pursuant to resolutions adopted by the Board of Directors of the Company on
March 7, 1996, hereby establish a series of the Company's Securities (as
provided for in the Indenture (the "Indenture") dated as of March 19, 1996
between the Company and Citibank, N.A., as Trustee), designated as the "4 1/4%
Premium Equity Participating Securities due March 15, 2001" and hereby certify,
pursuant to Sections 102 and 301 of the Indenture, as follows:
1. Attached hereto as Annex A are true and correct copies of a specimen
PEPS (the "Form of PEPS") and a specimen global PEPS (the "Form of Global
PEPS"), representing the Company's 4 1/4% Premium Equity Participating
Securities due March 15, 2001 (the "Securities").
2. The attached Form of PEPS and Form of Global PEPS set forth the terms
required to be set forth in this Certificate pursuant to Section 301 of the
Indenture, and said terms are incorporated herein by reference.
3. The limit upon the aggregate principal amount of the Securities that
may be authenticated and delivered under the Indenture (except for Securities
authenticated and delivered upon registration of transfer of, or in exchange
for, or in lieu of, other Securities pursuant to Sections 304, 305, 306, 906 or
1107 of the Indenture and except for any Securities that, pursuant to Section
303 of the Indenture, are deemed never to have been authenticated and delivered
underthe Indenture) is $58,875,000.
4. Attached hereto as Annex B are true and correct copies of resolutions
duly adopted by the Board of Directors of the Company at a meeting held on
March 7, 1996; such resolutions have not been amended, modified or rescinded
and remain in full force and effect; and such resolutions are the only
resolutions adopted by the Company's Board of Directors or any committee
thereof relating to the Securities, and the transactions related thereto.
Each of the undersigned officers further states that he or she has read
the provisions of such Indenture setting forth the conditions precedent to the
issuance, authentication and delivery of the Securities and the definitions
relating thereto, the board resolutions authorizing the issuance of the
Securities, and the Form of PEPS and Form of Global PEPS; that the statements
made in this Certificate are based upon the examination of the provisions of
such Indenture, the board resolutions, the Form of PEPS and Form of Global PEPS
and the relevant books and records of the Company; that he or she has, in his
or her opinion, made such examination or investigation as is necessary to
enable him or her to express an informed opinion as to whether or not the
conditions for the issuance, authentication and delivery of the Securities have
been complied with; and that, in his or her opinion, such conditions have been
complied with.
This Officers' Certificate shall constitute evidence of, and shall be,
action by the undersigned Vice President and Treasurer as one of the officers
designated in the
<PAGE> 2
above-referenced resolutions, determining and setting the specific terms of the
Securities as set forth herein and in the Form of PEPS and Form of Global PEPS.
The undersigned Secretary, by execution of this Officers' Certificate,
hereby certifies the actions taken by the undersigned Vice President and
Treasurer in determining and setting the specific terms of the Securities.
2
<PAGE> 3
IN WITNESS WHEREOF, said officers have signed this certificate.
Dated: March 19, 1996
By: /s/ Steven J. Schoch By: /s/ O. Jean Williams
---------------------------- -----------------------
Steven J. Schoch O. Jean Williams
Vice President and Treasurer Secretary
3
<PAGE> 4
ANNEX A
[Face of Security]
THE TIMES MIRROR COMPANY
4 1/4% PREMIUM EQUITY PARTICIPATING SECURITIES (PEPS)
DUE MARCH 15, 2001
NUMBER OF PEPS REPRESENTED
BY THIS SECURITY:
REGISTERED REGISTERED
No. R- CUSIP: 887364 50 3
As used herein, the following terms shall have the following
meanings:
ORIGINAL ISSUE DATE:
March 19, 1996
ISSUE PRICE PER PEPS:
$39.25
MATURITY DATE:
The Stated Maturity Date (subject to extension upon the occurrence of certain
Non-Trading Days (as defined on the reverse hereof) but in no event later than
the Final Maturity Date)
STATED MATURITY DATE:
March 15, 2001
FINAL MATURITY DATE:
March 21, 2001
MANDATORY REDEMPTION DATE:
Any Delisting Date (as defined on the reverse hereof) of the Reference Property
Relating to One PEPS (as defined on the reverse hereof) (initially one share of
common stock, par value $.0001 per share, of Netscape Communications
Corporation ("Netscape"), subject to adjustment as a result of certain dilution
events involving Netscape as set forth on the reverse hereof)
MANDATORY REDEMPTION:
Redemption by the Company, in whole but not in part, of the outstanding PEPS
for cash in an amount equal to the Market Value (as defined on the reverse
hereof) of the Reference Property Relating to One PEPS as of the second Business
Day prior to the Mandatory Redemption Date
PEPS:
A PEPS is a Premium Equity Participating Security of the Company (as defined
below) having an issue price of $39.25
INTEREST ACCRUAL DATE:
March 19, 1996
INTEREST PAYMENT DATES:
Payable quarterly in arrears on each of March 15, June 15, September 15 and
December 15 beginning June 15, 1996, and on the Maturity Date and the
Redemption Date (as defined on the reverse hereof)
INTEREST RATE:
4 1/4% of the Issue Price per annum
AMOUNT PAYABLE AT MATURITY:
An amount in cash with respect to each PEPS equal to the Market Value as of the
second Business Day (as defined on the reverse hereof) prior to the Maturity
Date of the Reference Property Relating to One PEPS
OPTIONAL REDEMPTION:
The Company's right after December 15, 2000 to redeem all, or from time to time
any part, of the outstanding PEPS for cash in an amount per PEPS equal to the
product of the Redemption Ratio (as defined on the reverse hereof) and the
Market Value of the Reference Property Relating to One PEPS ending on the
second Business Day prior to the Redemption Date plus cash in an amount equal
to all unpaid interest, whether or not accrued, that would have been payable
on the PEPS through the Maturity Date
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<PAGE> 5
THE TIMES MIRROR COMPANY, a Delaware corporation (herein
called the "Company," which term includes any successor under the Indenture
hereinafter referred to), for value received, hereby promises to pay to
, or registered assigns, on the Maturity Date the Amount
Payable at Maturity determined in accordance with the procedures described
herein and to pay interest on the Issue Price hereof at the Interest Rate from
the Interest Accrual Date until the Amount Payable at Maturity or the amount
payable upon redemption, as the case may be, is paid or duly made available
for payment, quarterly in arrears on each Interest Payment Date, commencing
on June 15, 1996, and on the Maturity Date and the Redemption Date, as the case
may be, except as provided herein.
Payment of the Amount Payable at Maturity or the amount
payable upon redemption, as the case may be, and interest will be made in
such coin or currency of the United States of America as at the time of
payment is legal tender for payment of public and private debts. The Amount
Payable at Maturity or the amount payable upon redemption, as the case may be,
shall be determined by the Company and written notice thereof shall be provided
to the Trustee (as defined on the reverse hereof) and the Paying Agent (as
defined on the reverse hereof) on the Business Day prior to the maturity or
earlier redemption hereof. The Company's determination of the Amount Payable at
Maturity or the amount payable upon redemption, as the case may be, shall be
conclusive and binding absent manifest error.
Interest on this Security will be computed on the basis of a
360-day year of twelve 30-day months and on the basis of the actual number of
days elapsed in any such 30-day month. Each payment of interest in respect of
an Interest Payment Date will include interest accrued to but not including
such Interest Payment Date. If an Interest Payment Date falls on a day that is
not a Business Day, the interest payment to be made on such Interest Payment
Date will be made on the next succeeding Business Day with the same force and
effect as if made on such Interest Payment Date, and no additional interest
will accrue as a result of such delayed payment. Interest payable on this
Security on any Interest Payment Date will be paid to the person in whose name
such Security is registered at the close of business on the applicable Record
Date (as defined below); provided that the interest payable upon maturity or
redemption will be payable to the person to whom principal is payable.
Interest will cease to accrue in respect of this Security on the Maturity Date
or on any earlier Redemption Date of this Security, provided that upon optional
redemption, interest will be payable through the Maturity Date. "Record Date"
means, for any Interest Payment Date, the date 15 calendar days prior to such
Interest Payment Date, whether or not such Record Date is a Business Day.
Payments of interest, other than interest payable at maturity or upon
redemption, will be made by check mailed to the address of the person entitled
thereto as shown on the register maintained by the registrar for the Security.
Payments of principal and interest at maturity or upon redemption will be made
in immediately available funds against presentation and surrender of the
certificate representing this Security. Notwithstanding the foregoing, holders
of $100,000 or more in aggregate Issue Price of Securities shall be entitled to
receive payments of interest by wire transfer of immediately available funds
upon written request to the Trustee not later than 15 calendar days prior to
the applicable Interest Payment Date.
Subject to certain exceptions described herein, payment of the
principal in respect of this Security will be made in immediately available
funds and payment of the interest due hereon on the Maturity Date and the
Redemption Date will be made in immediately available funds, in each case, upon
presentation and surrender of this Security at the office or agency of the
Paying Agent maintained for that purpose in the Borough of Manhattan, The City
of New York, if this Security is presented to the Paying Agent in time for it to
make such payments in accordance with its normal procedures.
Reference is hereby made to the further provisions of this
Security set forth on the reverse hereof, which further provisions shall for
all purposes have the same effect as if set forth at this place.
Unless the certificate of authentication hereon has been
executed by the Trustee referred to on the reverse hereof by manual signature,
this Security shall not be entitled to any benefit under the Indenture, as
defined on the reverse hereof, or be valid or obligatory for any purpose.
2
<PAGE> 6
IN WITNESS WHEREOF, the Company has caused this Security to
be duly executed under its corporate seal.
THE TIMES MIRROR COMPANY
By _______________________
ATTEST:
__________________________
TRUSTEE'S CERTIFICATE
OF AUTHENTICATION
This is one of the Securities of the
series designated therein referred
to in the within-mentioned Indenture.
CITIBANK, N.A.,
as Trustee
By________________________
Authorized Signatory
3
<PAGE> 7
[Reverse of Security]
This Security is one of the duly authorized issue of
securities of the Company (herein called the "Securities"), issued and to be
issued in one or more series under an Indenture, dated as of March 19, 1996 and
indentures supplemental thereto (herein called the "Indenture"), between the
Company and Citibank, N.A., as Trustee (herein called the "Trustee," which term
includes any successor trustee under the Indenture), to which Indenture and the
Officers' Certificate setting forth the terms of this series of Securities
reference is hereby made for a statement of the respective rights, limitations
of rights, duties and immunities thereunder of the Company, the Trustee and
holders of the Securities and the terms upon which the Securities are, and are
to be, authenticated and delivered. The Company has appointed Citibank, N.A.
at its corporate trust office in The City of New York as the paying agent (the
"Paying Agent," which term includes any additional or successor paying agent
appointed by the Company) with respect to the Securities. To the extent not
inconsistent herewith, the terms of the Indenture and those made part of the
Indenture by the Officers' Certificate delivered pursuant thereto are hereby
incorporated by reference herein. The Securities are subject to all such terms
and holders are referred to the Indenture and to the Trust Indenture Act of
1939, as amended, for a statement of them. This Security is one of the series
designated on the face hereof.
This Security is an unsecured and unsubordinated obligation of
the Company and will rank equally and ratably with all other unsecured and
unsubordinated debt of the Company, subject to certain statutory exceptions in
the event of liquidation upon insolvency.
This Security is not subject to any sinking fund or
subject to repayment at the option of the holder prior to maturity and is not
subject to the defeasance provisions set forth in the Indenture.
This Security is subject to mandatory redemption, in whole
but not in part, on any Delisting Date (as defined below) for cash in an amount
equal to the Market Value (as defined below) as of the second Business Day (as
defined below) prior to such Delisting Date of the Reference Property Relating
to One PEPS (as defined below) plus interest accrued but unpaid to the
mandatory Redemption Date (as defined below). In addition to providing notice
of such mandatory redemption as provided below, the Company will
contemporaneously publish notice of such Delisting Date in a United States
newspaper with a national circulation (currently expected to be The Wall Street
Journal). The "Delisting Date" means the first date on which the Netscape
Common Stock (as defined below)(or equity securities comprising more than 25%
of the fair market value (as determined in good faith by the Board of Directors
of the Company on the date any such equity security is distributed and on the
date any such equity security is delisted) of the Reference Property Relating
to One PEPS) is not listed on any United States national securities exchange or
United States national securities system subject to last sale reporting or is
permanently suspended from trading (within the meaning of the Securities
Exchange Act of 1934, as amended, and the rules and regulations thereunder) on
each such securities exchange and securities system on which it is then listed.
A Delisting Date will not occur solely by reason of the occurrence of any
dilution adjustment described below.
At any time and from time to time after December 15, 2000 and
prior to the Maturity Date (as defined below), the Company will be entitled,
upon a call for redemption of not more than 60 nor less than 30 days' notice, to
redeem all, or from time to time any part, of the outstanding Securities and
deliver to the holders thereof, in exchange for each Security so called, cash in
an amount equal to the product of the Redemption Ratio (as defined below) and
the Market Value of the Reference Property Relating to One PEPS as of the second
Business Day prior to the Redemption Date, plus cash in an amount equal to all
unpaid interest, whether or not accrued, that would have been payable on the
Securities through the Maturity Date. If fewer than all the outstanding
Securities are to be called for redemption, the Securities to be called will be
selected by the Trustee from the outstanding Securities by lot or pro rata (as
nearly as may be) or by any other method determined by the Trustee in its sole
discretion to be equitable.
The Company will provide notice of any optional redemption of
the Securities to holders of record of the Securities to be called for optional
redemption not more than 60 days nor less than 30 days before the Redemption
Date. Accordingly, the earliest Redemption Notice Date (as defined below) for
any call for optional redemption of the Securities will be October 16, 2000. The
Company will provide notice of any mandatory redemption of the Securities to all
holders of record of the Securities as soon as practicable, but in no event
later than 10 Trading Days (as defined below) prior to the Redemption Date. Any
notice of optional or mandatory redemption will be provided by mail, sent to
the holders of record of the Securities to be called at each such holder's
address as it appears on the security register by first-class mail, postage
prepaid; provided, however, that failure to give such notice or any defect
therein will not affect the validity of the proceeding for redemption of any of
the Securities to be redeemed except as to the holder to whom the Company has
failed to give such notice or whose notice is defective. Such notice shall
state, among other things, the Redemption Date and the computation of the
Redemption Ratio and the method for computing the Market Value of the Reference
Property Relating to One PEPS. A public announcement of any call for redemption
will be made by the Company before, or at the time of, the Redemption Notice
Date. Each holder of Securities called for redemption must surrender such
Securities to the Company at the place designated in the notice of redemption.
On and after
4
<PAGE> 8
a Redemption Date, all rights of the holders of the Securities called for
redemption will terminate and interest will cease to accrue.
In the event that any of the 10 Business Days ending on the
second Business Day prior to March 15, 2001 or any optional Redemption Date, as
the case may be, is not a Trading Day (a "Non-Trading Day"), the Securities
will not mature or be optionally redeemed on such date, but the Maturity Date
or the optional Redemption Date of the Securities will be extended one Trading
Day for each Non-Trading Day; provided, however, that the Securities will
mature in any event not later than on March 21, 2001. In the event that the
Maturity Date or optional Redemption Date of the Securities is extended as a
result of one or more Non-Trading Days, interest will be payable to the holders
of the Securities on such extended Maturity Date or optional Redemption Date
and interest thereon will accrue from March 15, 2001 or such optional
Redemption Date, as the case may be, to but not including such extended
Maturity Date or optional Redemption Date. The Company shall promptly notify
the holder of such Securities, by first-class mail, postage prepaid, of such
extension of maturity or redemption. The Company also will contemporaneously
publish notice of such extension of maturity or redemption in a United States
newspaper with a national circulation (currently expected to be The Wall Street
Journal).
In the case of a tender or exchange offer for all Reference
Property (as defined below) of a particular type, Reference Property shall be
deemed to include the amount of cash or other property paid by the offeror in
the tender or exchange offer with respect to such Reference Property (in an
amount determined on the basis of the rate of exchange in such tender or
exchange offer), whether or not the Company tenders or exchanges such Reference
Property. In the case of a partial tender or exchange offer with respect to
Reference Property of a particular type, Reference Property shall be deemed to
include the amount of cash or other property paid by the offeror in the tender
or exchange offer with respect to such Reference Property in an amount
determined as if the offeror had purchased or exchanged such Reference Property
in the proportion in which all property of such type was purchased or exchanged
from the holders thereof; provided that if the Company tenders all its
Reference Property of such type, the amount of cash or other property received
that will constitute Reference Property will be determined on the basis of the
amount of such cash or other property actually received by the Company. Except
as provided above, in the event of a tender or exchange offer with respect to
Reference Property in which an offeree may elect to receive cash or other
property, Reference Property shall be deemed to include the kind and amount of
cash and other property received by offerees who elect to receive cash. If
Netscape (as defined below) or any Netscape Successor (as defined below)
distributes to all holders of Reference Property rights or warrants to
subscribe for or purchase any of its securities and the expiration date of such
rights or warrants precedes the maturity or earlier redemption of the
Securities, then Reference Property shall be deemed to include an amount in
cash equal to the Market Price (as defined below) as of the Trading Day
immediately preceding such expiration date of the portion of such rights or
warrants relating to the Reference Property, whether or not the Company
exercises such rights or warrants. If cash is received, or deemed received,
from time to time in respect of any Reference Property, the amount of such cash
at any date of determination shall be increased by an amount per annum equal to
the Applicable Treasury Rate (as defined below) on such cash from the date such
cash was received, or deemed received, to such date of determination.
Neither the Trustee nor any Paying Agent shall at any time be
under any duty or responsibility to any holder of this Security to determine
whether any facts exist which may require any adjustment of the Market Price or
with respect to the nature or extent of any such adjustment when made or with
respect to the method employed in making the same.
The Company may, at its option, elect to make Securities
available in book-entry form. If the Company makes such an election, the
holder hereof will have the option (the "Conversion Option") to convert the
form in which such holder holds his Security from definitive to book-entry
form. The Conversion Option will be available for a period of 45 calendar days
(the "Conversion Option Period") commencing on a date designated by the Company
and notified to the Trustee by facsimile or first-class mail and the holder
hereof by first-class mail. After the last date of the Conversion Option
Period, the Depositary (as defined below) will not be required to accept
delivery of Securities in exchange for book-entry Securities, but the
Depositary may permit such Securities to be exchanged on a case-by-case basis.
In order to be exchanged for a Security in book-entry form, this Security must
be delivered in proper form for deposit to The Depository Trust Company (the
"Depositary") by a participant. Accordingly, if the holder hereof is not a
participant, such holder must deliver this Security, in proper form for
deposit, to a participant, either directly or through an indirect participant
(such as a bank, brokerage firm, dealer or trust company that clears through,
or maintains a custodial relationship with, a participant) or brokerage firm
which maintains an account with a participant, in order to have its Security
exchanged for a Security in book-entry form. Securities received by the
Depositary for exchange during the Conversion Option Period will be exchanged
for a Security in book-entry form by the close of business on the Business Day
that such Securities are received by the Depositary (if received by the
Depositary by its then applicable cut-off time for same-day credit) or on the
following Business Day (if received by the Depositary by its then applicable
cut-off time for next-day credit). Securities surrendered at any time for
exchange for book-entry Securities may not be transferred until such exchange
has been effected.
5
<PAGE> 9
If an Event of Default, as defined in the Indenture, shall
occur and be continuing, the principal of all the Securities may be declared
due and payable in the manner and with the effect provided in the Indenture.
The Indenture permits, with certain exceptions as therein
provided, the amendment thereof and the modification of the rights and
obligations of the Company and the rights of the holders of the securities of
each series to be affected under the Indenture at any time by the Company and
the Trustee with the consent of the holders of a majority in principal amount
of the securities at the time outstanding of each series to be affected. The
Indenture also contains provisions permitting the holders of specified
percentages in principal amount of the securities of each series at the time
outstanding, on behalf of the holders of all securities of such series, to
waive compliance by the Company with certain provisions of the Indenture and
certain past defaults under the Indenture and their consequences. Any such
consent or waiver by the holder of this Security shall be conclusive and
binding upon such holder and upon all future holders of this Security and of
any Security issued upon the registration of transfer hereof or in exchange
herefor or in lieu hereof, whether or not notation of such consent or waiver is
made upon this Security.
As provided in and subject to the provisions of the Indenture,
the holder of this Security shall not have the right to institute any
proceeding with respect to the Indenture or for the appointment of a receiver
or trustee or for any other remedy thereunder, unless such holder shall have
previously given the Trustee written notice of a continuing Event of Default
with respect to the Securities, the holders of not less than 25% in principal
amount of the Securities at the time outstanding shall have made written
request to the Trustee to institute proceedings in respect of such Event of
Default as Trustee under the Indenture and offered the Trustee reasonable
indemnity, and the Trustee shall not have received from the holders of a
majority in principal amount of the Securities at the time outstanding a
direction inconsistent with such request, and shall have failed to institute
any such proceeding, for 60 days after receipt of such notice, request and
offer of indemnity. The foregoing shall not apply to any suit instituted by
the holder of this Security for the enforcement of any payment of principal
hereof or any premium or interest hereon on or after the respective due dates
expressed herein.
No reference herein to the Indenture and no provision of this
Security or of the Indenture shall alter or impair the obligation of the
Company, which is absolute and unconditional, to pay the principal of and any
premium and interest on this Security at the times, places and rates, and in
the coin or currency, herein prescribed.
As provided in the Indenture and subject to certain
limitations therein set forth, the transfer of this Security is registrable in
the security register, upon surrender of this Security for registration of
transfer at the office of the Trustee in any place where the principal of and
any premium and interest on this Security are payable, duly endorsed by, or
accompanied by a written instrument or instruments of transfer in form
satisfactory to the Company and the Trustee duly executed by the holder hereof
or his or her attorney duly authorized in writing, and thereupon one or more
new Securities of like tenor, of authorized denominations and for the same
aggregate principal amount, will be issued to the designated transferee or
transferees. Such signature must be guaranteed by an institution that is a
member of the Securities Transfer Agent Medallion Program.
6
<PAGE> 10
The Securities are issuable only in registered form without
coupons in denominations equal to $39.25 and any integral multiple thereof.
As provided in the Indenture and subject to certain limitations therein set
forth, the Securities are exchangeable for a like aggregate principal amount of
Securities and of like tenor of a different authorized denomination, as
requested by the holder surrendering the same.
No service charge shall be made for any such registration of
transfer or exchange, but the Company may require payment of a sum sufficient
to cover any tax or other governmental charge payable in connection therewith.
Prior to due presentment of this Security for registration of
transfer, the Company, the Trustee and any agent of the Company or the Trustee
may treat the Person in whose name this Security is registered as the owner
hereof for all purposes, whether or not this Security be overdue, and neither
the Company, the Trustee nor any such agent shall be affected by notice to the
contrary.
All terms used in this Security which are defined in the
Indenture shall have the meanings assigned to them in the Indenture.
This Security shall for all purposes be governed by, and
construed in accordance with, the laws of the State of New York.
As used herein:
"Applicable Treasury Rate," with respect to any cash received
or deemed received, means the Reference Treasury Quotation (as defined
below), as of the date such cash was received or deemed received, on the
Reference Treasury Strip (as defined below).
"Business Day" means any day that is not a Saturday, a Sunday
or a day on which the Nasdaq National Market or banking institutions or trust
companies in The City of New York are authorized or obligated by law or
executive order to close.
"Extraordinary Cash Dividend" means, with respect to any
Reference Property consisting of capital stock, any distribution consisting of
cash, excluding any quarterly cash dividend on such stock to the extent that
the aggregate cash dividend per share of such stock in any quarter does not
exceed the greater of (x) the amount per share of such stock to the next
preceding quarterly cash dividend on such stock to the extent that such
preceding quarterly dividend did not constitute an Extraordinary Cash Dividend
and (y) 3.75 percent of the Market Value of such stock as of the date of
declaration of such dividend, and excluding any dividend or distribution in
connection with the liquidation, dissolution or winding up of the issuer of
such stock.
"Market Price" of any security as of the date of determination
means the last reported sale price of such security as reported by the Nasdaq
National Market system, or if such security is not reported by the Nasdaq
National Market system, the closing sale price for such security (or, if no
closing sale price is reported, the average of the bid and ask prices or, if
more than one in either case, the average of the average bid and average ask
prices) on such date as reported in the composite transaction for the principal
United States securities exchange on which such security is traded or, if such
security is not listed on a United States national or regional securities
exchange, the high per share bid price for such security in the
over-the-counter market as reported on the National Quotation Bureau or similar
organization, or, if such bid price is not available, the value of such
security on such date as determined by a nationally recognized investment
banking firm retained for such purpose by the Company.
"Market Value" of any security as of the date of determination
means the average of the Market Prices of such security for the 10 consecutive
Trading Days ending on such date of determination.
"Maturity Date" means March 15, 2001, subject to extension
upon the occurrence of Non-Trading Days as described herein.
"Netscape" means Netscape Communications Corporation, a
Delaware Corporation.
"Netscape Common Stock" means the Common Stock, par value
$.0001 per share, of Netscape.
"Redemption Date" means the date of any optional or mandatory
redemption of the Securities.
"Redemption Ratio" with respect to any redemption of the
Securities will be equal to (a) if the Market Value of the Reference Property
Relating to One PEPS is less than the Issue Price, 1.0000, (b) if the Market
Value is equal to or greater than the Issue Price but less than or equal to
$45.14 (the "Threshold Appreciation Price"), a fraction the numerator of which
is the Issue Price and the denominator of which is the Market Value and (c) if
the Market Value is greater than the Threshold Appreciation Price, 0.8696. For
purposes of the foregoing, the Market Value shall be determined as of the second
Trading Day prior to the date of the redemption notice (the "Redemption Notice
Date") relating to such redemption, provided, however, that if the Market Price
of the Reference Property Relating to One PEPS on the Trading Day immediately
prior to the Redemption Notice Date is less than 95% of such Market Value, then
the Market Value for purposes of determining the Redemption Ratio shall be the
Market Price on such Trading Day.
7
<PAGE> 11
"Reference Property" means, (A) initially that number of shares
of the Netscape Common Stock equal to the aggregate number of the Securities
issued and (B) all property received in respect of such shares of the Netscape
Common Stock (either directly or as the result of successive applications of
this paragraph) upon the following events: (i) the distribution of a dividend on
Reference Property in the same type of Reference Property, (ii) the combination
of Reference Property into a smaller number of shares or other units, (iii) the
subdivision of outstanding shares or other units of Reference Property, (iv) the
conversion or reclassification of Reference Property by issuance or exchange of
other securities, (v) any consolidation or merger of Netscape, or any surviving
entity or subsequent surviving entity of Netscape (a "Netscape Successor"), with
or into another entity (other than a merger or consolidation in which Netscape
is the continuing corporation and in which the Netscape Common Stock outstanding
immediately prior to the merger or consolidation is not exchanged for cash,
securities or other property of Netscape or another corporation), (vi) any
statutory exchange of securities of Netscape or any Netscape Successor with
another corporation (other than in connection with a merger or acquisition and
other than a statutory exchange of securities in which Netscape is the
continuing corporation and in which the Netscape Common Stock outstanding
immediately prior to the statutory exchange is not exchanged for cash,
securities or other property of Netscape or another corporation), (vii) any
liquidation, dissolution or winding up of Netscape or any Netscape Successor,
(viii) any distribution of cash or other property on Reference Property of a
particular type (excluding cash dividends or other cash distributions other than
Extraordinary Cash Dividends) or (ix) any tender or exchange
offer for Reference Property of a particular type (any such event, an
"Adjustment Event").
"Reference Property Relating to One PEPS" means one share
of the Netscape Common Stock and such additional or substitute Reference
Property received with respect to one share of the Netscape Common Stock,
either directly or as the result of successive Adjustment Events.
"Reference Treasury Quotation" means the average of the bid
and asked yields to maturity for the Reference Treasury Strip as quoted by
three primary U.S. Government securities dealers in New York City selected by
the Company, one of which shall be Morgan Stanley & Co. Incorporated.
"Reference Treasury Strip" means the stripped principal
Treasury note for which one or more Reference Treasury Quotations are available
with a maturity date on or, if no such stripped principal Treasury note is then
quoted, next preceding the first possible Redemption Date.
"Trading Day" for any security means a Business Day on which
the security for which the Market Value is being determined (A) is not
suspended from trading on any United States national securities exchange or
United States national securities system at the close of business on such
Business Day and (B) has traded at least once on such Business Day on the
United States national securities exchange or United States national securities
system that is the primary market for the trading of such security.
8
<PAGE> 12
ABBREVIATIONS
The following abbreviations, when used in the inscription on the
face of this Instrument or by any assignee, shall be construed as though they
were written out in full according to applicable laws or regulations:
TEN COM-as tenants in common
TEN ENT-as tenants by the entireties
JT TEN-as joint tenants with right of survivorship
and not as tenants in common
UNIF GIFT MIN ACT-...........Custodian..............
(Cust) (Minor)
Under Uniform Gifts to Minors Act...................
(State)
Additional abbreviations may also be used though not in the above list.
______________________
9
<PAGE> 13
ASSIGNMENT FORM
FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s)
unto
[PLEASE INSERT SOCIAL SECURITY OR OTHER
IDENTIFYING NUMBER OF ASSIGNEE]
_______________________________________ !
!
____________________________________________!___________________________________
________________________________________________________________________________
[PLEASE PRINT OR TYPE NAME AND ADDRESS, INCLUDING ZIP CODE, OF ASSIGNEE]
________________________________________________________________________________
the within Security and all rights thereunder, hereby irrevocably constituting
and appointing
________________________________________________________________________________
attorney to transfer such Security on the books of the Company, with full
power of substitution in the premises.
Dated:_____________________
________________________________________________________________________________
NOTICE: The signature to this assignment
must correspond with the name as written upon
the face of the within Security in every
particular without alteration or enlargement
or any change whatsoever. Such signature
must be guaranteed by an institution that is
a member of the Securities Transfer Agent
Medallion Program.
10
<PAGE> 14
[Face of Security]
THE TIMES MIRROR COMPANY
4 1/4% PREMIUM EQUITY PARTICIPATING SECURITIES (PEPS)
DUE MARCH 15, 2001
NUMBER OF PEPS REPRESENTED
BY THIS SECURITY:
REGISTERED REGISTERED
No. R- CUSIP: 887364 50 3
THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE
HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A
NOMINEE THEREOF. THIS SECURITY MAY NOT BE TRANSFERRED TO, OR REGISTERED OR
EXCHANGED FOR SECURITIES REGISTERED IN THE NAME OF, ANY PERSON OTHER THAN THE
DEPOSITARY OR A NOMINEE THEREOF AND NO SUCH TRANSFER MAY BE REGISTERED, EXCEPT
IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE. EVERY SECURITY
AUTHENTICATED AND DELIVERED UPON REGISTRATION OF TRANSFER OF, OR IN EXCHANGE
FOR OR IN LIEU OF, THIS SECURITY SHALL BE A GLOBAL SECURITY SUBJECT TO THE
FOREGOING, EXCEPT IN SUCH LIMITED CIRCUMSTANCES.
As used herein, the following terms shall have the following meanings:
ORIGINAL ISSUE DATE:
March 19, 1996
ISSUE PRICE PER PEPS:
$39.25
MATURITY DATE:
The Stated Maturity Date (subject to extension upon the occurrence of certain
Non-Trading Days (as defined on the reverse hereof) but in no event later than
the Final Maturity Date)
STATED MATURITY DATE:
March 15, 2001
FINAL MATURITY DATE:
March 21, 2001
MANDATORY REDEMPTION DATE:
Any Delisting Date (as defined on the reverse hereof) of the Reference Property
Relating to One PEPS (as defined on the reverse hereof) (initially one share of
common stock, par value $.0001 per share, of Netscape Communications
Corporation ("Netscape"), subject to adjustment as a result of certain dilution
events involving Netscape as set forth on the reverse hereof)
MANDATORY REDEMPTION:
Redemption by the Company, in whole but not in part, of the outstanding PEPS
for cash in an amount equal to the Market Value (as defined on the reverse
hereof) of the Reference Property Relating to One PEPS as of the second Business
Day prior to the Mandatory Redemption Date
PEPS:
A PEPS is a Premium Equity Participating Security of the Company (as defined
below) having an issue price of $39.25
INTEREST ACCRUAL DATE:
March 19, 1996
INTEREST PAYMENT DATES:
Payable quarterly in arrears on each of March 15, June 15, September 15 and
December 15 beginning June 15, 1996, and on the Maturity Date and the
Redemption Date (as defined on the reverse hereof)
INTEREST RATE:
4 1/4% of the Issue Price per annum
AMOUNT PAYABLE AT MATURITY:
An amount in cash with respect to each PEPS equal to the Market Value as of the
second Business Day (as defined on the reverse hereof) prior to the Maturity
Date of the Reference Property Relating to One PEPS
OPTIONAL REDEMPTION:
The Company's right after December 15, 2000 to redeem all, or from time to time
any part, of the outstanding PEPS for cash in an amount per PEPS equal to the
product of the Redemption Ratio (as defined on the reverse hereof) and the
Market Value of the Reference Property Relating to One PEPS ending on the second
Business Day prior to the Redemption Date plus cash in an amount equal to all
unpaid interest, whether or not accrued, that would have been payable on the
PEPS through the Maturity Date
<PAGE> 15
THE TIMES MIRROR COMPANY, a Delaware corporation (herein
called the "Company," which term includes any successor under the Indenture
hereinafter referred to), for value received, hereby promises to pay to
, or registered assigns, on the Maturity Date the Amount Payable at
Maturity determined in accordance with the procedures described herein and to
pay interest on the Issue Price hereof at the Interest Rate from the Interest
Accrual Date until the Amount Payable at Maturity or the amount payable upon
redemption, as the case may be, is paid or duly made available for payment,
quarterly in arrears on each Interest Payment Date, commencing on June 15,
1996, and on the Maturity Date and the Redemption Date, as the case may be,
except as provided herein.
Payment of the Amount Payable at Maturity or the amount
payable upon redemption, as the case may be, and interest will be made in such
coin or currency of the United States of America as at the time of payment is
legal tender for payment of public and private debts. The Amount Payable at
Maturity or the amount payable at redemption, as the case may be, shall be
determined by the Company and written notice thereof shall be provided to the
Trustee (as defined on the reverse hereof) and the Paying Agent (as defined on
the reverse hereof) on the Business Day prior to the maturity or earlier
redemption hereof. The Company's determination of the Amount Payable at
Maturity or the amount payable at redemption, as the case may be, shall be
conclusive and binding absent manifest error.
Interest on this Security will be computed on the basis of a
360-day year of twelve 30-day months and on the basis of the actual number of
days elapsed in any such 30-day month. Each payment of interest in respect of
an Interest Payment Date will include interest accrued to but not including
such Interest Payment Date. If an Interest Payment Date falls on a day that is
not a Business Day, the interest payment to be made on such Interest Payment
Date will be made on the next succeeding Business Day with the same force and
effect as if made on such Interest Payment Date, and no additional interest
will accrue as a result of such delayed payment. Interest payable on this
Security on any Interest Payment Date will be paid to the person in whose name
such Security is registered at the close of business on the applicable Record
Date (as defined below); provided that the interest payable upon maturity or
redemption will be payable to the person to whom principal is payable.
Interest will cease to accrue in respect of this Security on the Maturity Date
or on any earlier Redemption Date of this Security, provided that upon optional
redemption, interest will be payable through the Maturity Date. "Record Date"
means, for any Interest Payment Date, the date 15 calendar days prior to such
Interest Payment Date, whether or not such Record Date is a Business Day.
Payments of interest, other than interest payable at maturity or upon
redemption, will be made by check mailed to the address of the person entitled
thereto as shown on the register maintained by the registrar for the Security.
Payments of principal and interest at maturity or upon redemption will be made
in immediately available funds against presentation and surrender of the
certificate representing this Security. Notwithstanding the foregoing, the
Depositary (as defined on the reverse hereof) shall be entitled to receive
payments of interest by wire transfer of immediately available funds.
Subject to certain exceptions described herein, payment of the
principal in respect of this Security will be made in immediately available
funds and payment of the interest due hereon on the Maturity Date and the
Redemption Date will be made in immediately available funds, in each case, upon
presentation and surrender of this Security at the office or agency of the
Paying Agent maintained for that purpose in the Borough of Manhattan, The City
of New York, if this Security is presented to the Paying Agent in time for it
to make such payments in accordance with its normal procedures.
Reference is hereby made to the further provisions of this
Security set forth on the reverse hereof, which further provisions shall for
all purposes have the same effect as if set forth at this place.
Unless the certificate of authentication hereon has been
executed by the Trustee referred to on the reverse hereof by manual signature,
this Security shall not be entitled to any benefit under the Indenture, as
defined on the reverse hereof, or be valid or obligatory for any purpose.
2
<PAGE> 16
IN WITNESS WHEREOF, the Company has caused this Security to
be duly executed under its corporate seal.
THE TIMES MIRROR COMPANY
By _______________________
ATTEST:
__________________________
TRUSTEE'S CERTIFICATE
OF AUTHENTICATION
This is one of the Securities of the
series designated therein referred
to in the within-mentioned Indenture.
CITIBANK, N.A.,
as Trustee
By________________________
Authorized Signatory
3
<PAGE> 17
[Reverse of Security]
This Security is one of the duly authorized issue of
securities of the Company (herein called the "Securities"), issued and
to be issued in one or more series under an Indenture, dated as of March 19,
1996 and indentures supplemental thereto (herein called the "Indenture"),
between the Company and Citibank, N.A., as Trustee (herein called the
"Trustee," which term includes any successor trustee under the Indenture), to
which Indenture and the Officers' Certificate setting forth the terms of this
series of Securities reference is hereby made for a statement of the respective
rights, limitations of rights, duties and immunities thereunder of the Company,
the Trustee and holders of the Securities and the terms upon which the
Securities are, and are to be, authenticated and delivered. The Company has
appointed Citibank, N.A. at its corporate trust office in The City of New York
as the paying agent (the "Paying Agent," which term includes any additional or
successor paying agent appointed by the Company) with respect to the
Securities. To the extent not inconsistent herewith, the terms of the
Indenture and those made part of the Indenture by the Officers' Certificate
delivered pursuant thereto are hereby incorporated by reference herein. The
Securities are subject to all such terms and holders are referred to the
Indenture and to the Trust Indenture Act of 1939, as amended, for a statement
of them. This Security is one of the series designated on the face hereof.
This Security is an unsecured and unsubordinated obligation of
the Company and will rank equally and ratably with all other unsecured and
unsubordinated debt of the Company, subject to certain statutory exceptions in
the event of liquidation upon insolvency.
This Security is not subject to any sinking fund or
subject to repayment at the option of the holder prior to maturity and is not
subject to the defeasance provisions set forth in the Indenture.
This Security is subject to mandatory redemption, in whole
but not in part, on any Delisting Date (as defined below) for cash in an amount
equal to the Market Value (as defined below) as of the second Business Day (as
defined below) prior to such Delisting Date of the Reference Property Relating
to One PEPS (as defined below) plus interest accrued but unpaid to the mandatory
Redemption Date (as defined below). In addition to providing notice of such
mandatory redemption as provided below, the Company will contemporaneously
publish notice of such Delisting Date in a United States newspaper with a
national circulation (currently expected to be The Wall Street Journal). The
"Delisting Date" means the first date on which the Netscape Common Stock (as
defined below)(or equity securities comprising more than 25% of the fair market
value (as determined in good faith by the Board of Directors of the Company on
the date any such equity security is distributed and on the date any such equity
security is delisted) of the Reference Property Relating to One PEPS) is not
listed on any United States national securities exchange or United States
national securities system subject to last sale reporting or is permanently
suspended from trading (within the meaning of the Securities Exchange Act of
1934, as amended, and the rules and regulations thereunder) on each such
securities exchange and securities system on which it is then listed. A
Delisting Date will not occur solely by reason of the occurrence of any dilution
adjustment described below.
At any time and from time to time after December 15, 2000 and
prior to the Maturity Date (as defined below), the Company will be entitled,
upon a call for redemption of not more than 60 nor less than 30 days' notice, to
redeem all, or from time to time any part, of the outstanding Securities and
deliver to the holders thereof, in exchange for each Security so called, cash in
an amount equal to the product of the Redemption Ratio (as defined below) and
the Market Value of the Reference Property Relating to One PEPS as of the second
Business Day prior to the Redemption Date, plus cash in an amount equal to all
unpaid interest, whether or not accrued, that would have been payable on the
Securities through the Maturity Date. If fewer than all the outstanding
Securities are to be called for redemption, the Securities to be called will be
selected by the Trustee from the outstanding Securities by lot or pro rata (as
nearly as may be) or by any other method determined by the Trustee in its sole
discretion to be equitable (or if the Securities are then held by a nominee for
The Depository Trust Company (the "Depositary") such selection will be made in
accordance with the customary procedures of the Depositary).
The Company will provide notice of any optional redemption of
the Securities to holders of record of the Securities to be called for optional
redemption not more than 60 days nor less than 30 days before the Redemption
Date. Accordingly, the earliest Redemption Notice Date (as defined below) for
any call for optional redemption of the Securities will be October 16, 2000.
The Company will provide notice of any mandatory redemption of the Securities
to all holders of record of the Securities as soon as practicable, but in no
event later than 10 Trading Days (as defined below) prior to the Redemption
Date. Any notice of optional or mandatory redemption will be provided by mail,
sent to the holders of record of the Securities to be called at each such
holder's address as it appears on the security register by first-class mail,
postage prepaid; provided, however, that failure to give such notice or any
defect therein will not affect the validity of the proceeding for redemption of
any of the Securities to be redeemed except as to the holder to whom the
Company has failed to give such notice or whose notice is defective. Such
notice shall state, among other things, the Redemption Date and the computation
of the Redemption Ratio and the method for computing the Market Value of the
Reference Property Relating to One PEPS. A public announcement of any call for
redemption
4
<PAGE> 18
will be made by the Company before, or at the time of, the Redemption Notice
Date. Each holder of Securities called for redemption must surrender such
Securities to the Company at the place designated in the notice of redemption.
On and after a Redemption Date, all rights of the holders of the Securities
called for redemption will terminate and interest will cease to accrue.
In the event that any of the 10 Business Days ending on the
second Business Day prior to March 15, 2001 or any optional Redemption Date, as
the case may be, is not a Trading Day (a "Non-Trading Day"), the Securities will
not mature or be optionally redeemed on such date, but the Maturity Date or the
optional Redemption Date of the Securities will be extended one Trading Day for
each Non-Trading Day; provided, however, that the Securities will mature in any
event not later than on March 21, 2001. In the event that the Maturity Date or
optional Redemption Date of the Securities is extended as a result of one or
more Non-Trading Days, interest will be payable to the holders of the Securities
on such extended Maturity Date or optional Redemption Date and interest thereon
will accrue from March 15, 2001 or such optional Redemption Date, as the case
may be, to but not including such extended Maturity Date or optional Redemption
Date. The Company shall promptly notify the Depositary, by first-class mail,
postage prepaid, of such extension of maturity or redemption. The Company also
will contemporaneously publish notice of such extension of maturity or
redemption in a United States newspaper with a national circulation (currently
expected to be The Wall Street Journal).
In the case of a tender or exchange offer for all Reference
Property (as defined below) of a particular type, Reference Property shall be
deemed to include the amount of cash or other property paid by the offeror in
the tender or exchange offer with respect to such Reference Property (in an
amount determined on the basis of the rate of exchange in such tender or
exchange offer), whether or not the Company tenders or exchanges such Reference
Property. In the case of a partial tender or exchange offer with respect to
Reference Property of a particular type, Reference Property shall be deemed to
include the amount of cash or other property paid by the offeror in the tender
or exchange offer with respect to such Reference Property in an amount
determined as if the offeror had purchased or exchanged such Reference Property
in the proportion in which all property of such type was purchased or exchanged
from the holders thereof; provided that if the Company tenders all its
Reference Property of such type, the amount of cash or other property received
that will constitute Reference Property will be determined on the basis of the
amount of such cash or other property actually received by the Company. Except
as provided above, in the event of a tender or exchange offer with respect to
Reference Property in which an offeree may elect to receive cash or other
property, Reference Property shall be deemed to include the kind and amount of
cash and other property received by offerees who elect to receive cash. If
Netscape (as defined below) or any Netscape Successor (as defined below)
distributes to all holders of Reference Property rights or warrants to
subscribe for or purchase any of its securities and the expiration date of such
rights or warrants precedes the maturity or earlier redemption of the
Securities, then Reference Property shall be deemed to include an amount in
cash equal to the Market Price (as defined below) as of the Trading Day
immediately preceding such expiration date of the portion of such rights or
warrants relating to the Reference Property, whether or not the Company
exercises such rights or warrants. If cash is received, or deemed received,
from time to time in respect of any Reference Property, the amount of such cash
at any date of determination shall be increased by an amount per annum equal to
the Applicable Treasury Rate (as defined below) on such cash from the date such
cash was received, or deemed received, to such date of determination.
Neither the Trustee nor any Paying Agent shall at any time be
under any duty or responsibility to any holder of this Security to determine
whether any facts exist which may require any adjustment of the Market Price or
with respect to the nature or extent of any such adjustment when made or with
respect to the method employed in making the same.
5
<PAGE> 19
If an Event of Default, as defined in the Indenture, shall
occur and be continuing, the principal of all the Securities may be declared due
and payable in the manner and with the effect provided in the Indenture.
The Indenture permits, with certain exceptions as therein
provided, the amendment thereof and the modification of the rights and
obligations of the Company and the rights of the holders of the securities of
each series to be affected under the Indenture at any time by the Company and
the Trustee with the consent of the holders of a majority in principal amount
of the securities at the time outstanding of each series to be affected. The
Indenture also contains provisions permitting the holders of specified
percentages in principal amount of the securities of each series at the time
outstanding, on behalf of the holders of all securities of such series, to
waive compliance by the Company with certain provisions of the Indenture and
certain past defaults under the Indenture and their consequences. Any such
consent or waiver by the holder of this Security shall be conclusive and
binding upon such holder and upon all future holders of this Security and of
any Security issued upon the registration of transfer hereof or in exchange
herefor or in lieu hereof, whether or not notation of such consent or waiver is
made upon this Security.
As provided in and subject to the provisions of the Indenture,
the holder of this Security shall not have the right to institute any proceeding
with respect to the Indenture or for the appointment of a receiver or trustee or
for any other remedy thereunder, unless such holder shall have previously given
the Trustee written notice of a continuing Event of Default with respect to the
Securities, the holders of not less than 25% in principal amount of the
Securities at the time outstanding shall have made written request to the
Trustee to institute proceedings in respect of such Event of Default as Trustee
under the Indenture and offered the Trustee reasonable indemnity, and the
Trustee shall not have received from the holders of a majority in principal
amount of the Securities at the time outstanding a direction inconsistent with
such request, and shall have failed to institute any such proceeding, for 60
days after receipt of such notice, request and offer of indemnity. The
foregoing shall not apply to any suit instituted by the holder of this Security
for the enforcement of any payment of principal hereof or any premium or
interest hereon on or after the respective due dates expressed herein.
No reference herein to the Indenture and no provision of this
Security or of the Indenture shall alter or impair the obligation of the
Company, which is absolute and unconditional, to pay the principal of and any
premium and interest on this Security at the times, places and rates, and in
the coin or currency, herein prescribed.
As provided in the Indenture and subject to certain limitations
therein set forth, the transfer of this Security is registrable in the security
register, upon surrender of this Security for registration of transfer at the
office of the Trustee in any place where the principal of and any premium and
interest on this Security are payable, duly endorsed by, or accompanied by a
written instrument or instruments of transfer in form satisfactory to the
Company duly executed by the holder hereof or his or her attorney duly
authorized in writing, and thereupon one or more new Securities of like tenor,
of authorized denominations and for the same aggregate principal amount, will be
issued to the designated transferee or transferees. Such signature must be
guaranteed by an institution that is a member of the Securities Transfer Agent
Medallion Program.
No service charge shall be made for any such registration of
transfer or exchange, but the Company may require payment of a sum sufficient
to cover any tax or other governmental charge payable in connection therewith.
Prior to due presentment of this Security for registration of
transfer, the Company, the Trustee and any agent of the Company or the Trustee
may treat the Person in whose name this Security is registered as the owner
hereof for all purposes, whether or not this Security be overdue, and neither
the Company, the Trustee nor any such agent shall be affected by notice to the
contrary.
All terms used in this Security which are defined in the
Indenture shall have the meanings assigned to them in the Indenture.
This Security shall for all purposes be governed by, and
construed in accordance with, the laws of the State of New York.
6
<PAGE> 20
As used herein:
"Applicable Treasury Rate," with respect to any cash received
or deemed received, means the Reference Treasury Quotation (as defined below),
as of the date such cash was received or deemed received, on the Reference
Treasury Strip (as defined below).
"Business Day" means any day that is not a Saturday, a Sunday
or a day on which the Nasdaq National Market or banking institutions or trust
companies in The City of New York are authorized or obligated by law or
executive order to close.
"Extraordinary Cash Dividend" means, with respect to any
Reference Property consisting of capital stock, any distribution consisting of
cash, excluding any quarterly cash dividend on such stock to the extent that
the aggregate cash dividend per share of such stock in any quarter does not
exceed the greater of (x) the amount per share of such stock to the next
preceding quarterly cash dividend on such stock to the extent that such
preceding quarterly dividend did not constitute an Extraordinary Cash Dividend
and (y) 3.75 percent of the Market Value of such stock as of the date of
declaration of such dividend, and excluding any dividend or distribution in
connection with the liquidation, dissolution or winding up of the issuer of
such stock.
"Market Price" of any security as of the date of determination
means the last reported sale price of such security as reported by the Nasdaq
National Market system, or if such security is not reported by the Nasdaq
National Market system, the closing sale price for such security (or, if no
closing sale price is reported, the average of the bid and ask prices or, if
more than one in either case, the average of the average bid and average ask
prices) on such date as reported in the composite transaction for the principal
United States securities exchange on which such security is traded or, if such
security is not listed on a United States national or regional securities
exchange, the high per share bid price for such security in the
over-the-counter market as reported on the National Quotation Bureau or similar
organization, or, if such bid price is not available, the value of such
security on such date as determined by a nationally recognized investment
banking firm retained for such purpose by the Company.
"Market Value" of any security as of the date of determination
means the average of the Market Prices of such security for the 10 consecutive
Trading Days ending on such date of determination.
"Maturity Date" means March 15, 2001, subject to extension
upon the occurrence of Non-Trading Days as described herein.
"Netscape" means Netscape Communications Corporation, a
Delaware Corporation.
"Netscape Common Stock" means the Common Stock, for value
$.0001 per share, of Netscape.
"Redemption Date" means the date of any optional or mandatory
redemption of the Securities.
"Redemption Ratio" with respect to any redemption of the
Securities will be equal to (a) if the Market Value of the Reference Property
Relating to One PEPS is less than the Issue Price, 1.0000, (b) if the Market
Value is equal to or greater than the Issue Price but less than or equal to
$45.14 (the "Threshold Appreciation Price"), a fraction the numerator of which
is the Issue Price and the denominator of which is the Market Value and (c) if
the Market Value is greater than the Threshold Appreciation Price, 0.8696. For
purposes of the foregoing, the Market Value shall be determined as of the second
Trading Day prior to the date of the redemption notice (the "Redemption Notice
Date") relating to such redemption, provided, however, that if the Market Price
of the Reference Property Relating to One PEPS on the Trading Day immediately
prior to the Redemption Notice Date is less than 95% of such Market Value, then
the Market Value for purposes of determining the Redemption Ratio shall be the
Market Price on such Trading Day.
"Reference Property" means, (A) initially that number of shares
of the Netscape Common Stock equal to the aggregate number of the Securities
issued and (B) all property received in respect of such shares of the Netscape
Common Stock (either directly or as the result of successive applications of
this paragraph) upon the following events: (i) the distribution of a dividend on
Reference Property in the same type of Reference Property, (ii) the combination
of Reference Property into a smaller number of shares or other units, (iii) the
subdivision of outstanding shares or other units of Reference Property, (iv) the
conversion or reclassification of Reference Property by issuance or exchange of
other securities, (v) any consolidation or merger of Netscape, or any surviving
entity or subsequent surviving entity of Netscape (a "Netscape Successor"), with
or into another entity (other than a merger or consolidation in which Netscape
is the continuing corporation and in which the Netscape Common Stock outstanding
immediately prior to the merger or consolidation is not exchanged for cash,
securities or other property of Netscape or another corporation), (vi) any
statutory
7
<PAGE> 21
exchange of securities of Netscape or any Netscape Successor with another
corporation (other than in connection with a merger or acquisition and other
than a statutory exchange of securities in which Netscape is the continuing
corporation and in which the Netscape Common Stock outstanding immediately
prior to the statutory exchange is not exchanged for cash, securities or other
property of Netscape or another corporation), (vii) any liquidation,
dissolution or winding up of Netscape or any Netscape Successor, (viii) any
distribution of cash or other property on Reference Property of a particular
type (excluding cash dividends or other cash distributions other than
Extraordinary Cash Dividends (as defined below)) or (ix) any tender or exchange
offer for Reference Property of a particular type (any such event, an
"Adjustment Event").
"Reference Property Relating to One PEPS" means one share
of the Netscape Common Stock and such additional or substitute Reference
Property received with respect to one share of the Netscape Common Stock,
either directly or as the result of successive Adjustment Events.
"Reference Treasury Quotation" means the average of the bid
and asked yields to maturity for the Reference Treasury Strip as quoted by
three primary U.S. Government securities dealers in New York City selected by
the Company, one of which shall be Morgan Stanley & Co. Incorporated.
"Reference Treasury Strip" means the stripped principal
Treasury note for which one or more Reference Treasury Quotations are available
with a maturity date on or, if no such stripped principal Treasury note is then
quoted, next preceding the first possible Redemption Date.
"Trading Day" for any security means a Business Day on which
the security for which the Market Value is being determined (A) is not
suspended from trading on any United States national securities exchange or
United States national securities system at the close of business on such
Business Day and (B) has traded at least once on such Business Day on the
United States national securities exchange or United States national securities
system that is the primary market for the trading of such security.
8
<PAGE> 22
ABBREVIATIONS
The following abbreviations, when used in the inscription on
the face of this Instrument or by any assignee, shall be construed as though
they were written out in full according to applicable laws or regulations:
TEN COM-as tenants in common
TEN ENT-as tenants by the entireties
JT TEN-as joint tenants with right of survivorship
and not as tenants in common
UNIF GIFT MIN ACT-...........Custodian..............
(Cust) (Minor)
Under Uniform Gifts to Minors Act...................
(State)
Additional abbreviations may also be used though not in the above list.
______________________
9
<PAGE> 23
ASSIGNMENT FORM
FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s)
unto
[PLEASE INSERT SOCIAL SECURITY OR OTHER
IDENTIFYING NUMBER OF ASSIGNEE]
_______________________________________ !
!
____________________________________________!___________________________________
________________________________________________________________________________
[PLEASE PRINT OR TYPE NAME AND ADDRESS, INCLUDING ZIP CODE, OF ASSIGNEE]
________________________________________________________________________________
the within Security and all rights thereunder, hereby irrevocably constituting
and appointing
________________________________________________________________________________
attorney to transfer such Security on the books of the Company, with full power
of substitution in the premises.
Dated: ________________
________________________________________________________________________________
NOTICE: The signature to this assignment
must correspond with the name as written upon
the face of the within Security in every
particular without alteration or enlargement
or any change whatsoever. Such signature
must be guaranteed by an institution that is
a member of the Securities Transfer Agent
Medallion Program.
10
<PAGE> 24
ANNEX B
RESOLUTIONS FOR DEBT SECURITIES (PEPS)
APPROVAL OF DEBT SECURITIES OFFERING
WHEREAS, the Company has on file an omnibus shelf registration statement
on Form S-3 (the "Registration Statement") pursuant to which the Company may
offer and sell, from time to time, (i) debt securities ("Debt Securities"),
(ii) preferred stock, (iii) common stock, and (iv) warrants of the Company in
an aggregate amount not to exceed $200 million;
WHEREAS, the Registration Statement was declared effective by the
Securities and Exchange Commission on February 28, 1996;
WHEREAS, it has been proposed that the Company offer and sell a series of
Debt Securities, consisting of Premium Equity Participating Securities (the
"PEPS"), under the Registration Statement, to the public (the "Offering")
through Morgan Stanley & Co. ("Morgan Stanley"); and
WHEREAS, the Board of Directors has determined that it is desirable and in
the best interests of the Company and its stockholders for the Company to
consummate the Offering.
NOW, THEREFORE, BE IT RESOLVED, that the Offering as described in the
presentation to the Board by the Chief Financial Officer and Treasurer and on
terms similar to those set forth in the indicative Term Sheet attached hereto
as Exhibit A be, and it hereby is, approved and confirmed;
RESOLVED FURTHER, that the Registration Statement be, and it hereby is,
ratified, approved and confirmed; and
RESOLVED FURTHER, that the officers of the Company be, and each of them
hereby is, authorized and directed, in the name and on behalf of the Company,
to make or cause to be made all filings that are required or deemed advisable
by them in connection with the Offering, and such filings and other documents
all to be in such form as the officer or officers executing the same on behalf
of the Company shall approve, such approval to be conclusively evidenced by
his, her or their execution thereof.
BLUE SKY MATTERS
RESOLVED, that it is desirable and in the best interest of the Company
that the issuance of the PEPS be qualified or registered as required in the
various states in which the recipients of such PEPS reside; that the officers
of the Company be, and each hereby is, authorized to determine the states in
which appropriate action shall be taken to qualify or register the PEPS as said
officers deem advisable; that each such officer is hereby authorized and
directed to perform on behalf of the Company any and all such acts as he or she
may deem necessary or advisable in order to comply with the applicable
securities, "blue sky" or other laws of any such state and in connection
therewith to execute and file all requisite papers and documents, including,
without limitation, applications, reports, surety bonds, irrevocable consents
and appointments of attorneys for service of process; and the execution by such
officers of any such paper or
<PAGE> 25
document or the doing by them of any act in connection with the foregoing
matters with advice of counsel to the Company shall conclusively establish
their authority therefor from the Company and the approval and ratification by
the Company of the papers and documents so executed and the actions so taken;
RESOLVED FURTHER, that any specific resolutions that may be required under
any securities or "blue sky" laws of any state or jurisdiction in which the
PEPS may be qualified or registered are hereby adopted and incorporated herein
by this reference as if fully set forth herein, and the Secretary of the
Company is hereby directed to affix any such resolutions hereto as and when she
shall receive them; and
RESOLVED FURTHER, that the officers of the Company be, and each of them
hereby is, authorized and directed in the name and on behalf of the Company, to
make all such arrangements, to do and perform all such acts and things and to
execute and deliver all such officers' certificates and such other agreements,
instruments and documents as they deem necessary or appropriate in order to
effectuate fully the purposes of the foregoing resolutions.
APPROVAL OF APPLICATION TO LIST PEPS ON THE NEW YORK STOCK EXCHANGE
WHEREAS, the Company's Series A Common Stock is currently traded on the
New York Stock Exchange (the "NYSE") and the Pacific Stock Exchange, and the
Company's Series B Preferred Stock is currently traded on the NYSE;
WHEREAS, it has been proposed that the PEPS should be traded on the NYSE;
and
WHEREAS, the Board of Directors has determined that it is in the best
interests of the Company to list the PEPS on the NYSE.
NOW, THEREFORE, BE IT RESOLVED, that the officers of the Company be, and
each of them hereby is, authorized and directed to take, or cause to be taken,
all actions necessary or advisable to effect the listing and trading of the
PEPS on the NYSE, including, without limitation, the preparation, execution and
filing of all necessary applications, documents, forms and agreements with the
NYSE and the Securities and Exchange Commission, the payment by the Company of
filing, listing or application fees, the preparation of temporary and permanent
certificates for the PEPS, and the appearance of any such officer before NYSE
officials.
OFFERING DOCUMENTS
WHEREAS, in connection with the Offering, there has been submitted to and
considered by the Board of Directors an Underwriting Agreement, the form of
which is attached hereto as Exhibit B, to be entered into by and between the
Company and Morgan Stanley; and
WHEREAS, in connection with the Offering, there has been submitted to and
considered by the Board of Directors an Indenture (the "Indenture"), the form
of which is attached hereto as Exhibit C, to be entered into by and between the
Company and Citibank, N.A., as trustee, under which Debt Securities may be
issued and under which the PEPS shall be issued.
2
<PAGE> 26
NOW, THEREFORE, BE IT RESOLVED, that the Underwriting Agreement,
substantially in the form as attached hereto as Exhibit B, be, and it hereby
is, approved;
RESOLVED FURTHER, that the Indenture, substantially in the form as
attached hereto as Exhibit C, under which Debt Securities may be issued and
under which the PEPS shall be issued, be, and it hereby is, approved;
RESOLVED FURTHER, that the Chairman of the Board, Chief Executive Officer
and Chief Financial Officer, and the Treasurer, any Assistant Treasurer,
Secretary or any Assistant Secretary may, at any time and from time to time, on
behalf of the Company, authorize the issuance of one or more series of Debt
Securities under the Indenture and, with the approval of the Reviewing Officers
(as defined below), establish the terms and conditions of such series; and
RESOLVED FURTHER, that, in connection with each such series of Debt
Securities, the Chairman of the Board, Chief Executive Officer and Chief
Financial Officer, and the Treasurer, any Assistant Treasurer, Secretary and
any Assistant Secretary be, and they hereby are, authorized to execute and
deliver one or more Officers' Certificates (as defined in the Indenture)
setting forth the terms of Debt Securities of such series established in
accordance with the foregoing.
OFFICER APPROVAL OF DEFINITIVE TERMS OF OFFERING
RESOLVED, that the Chairman of the Board, Chief Executive Officer, Chief
Financial Officer, Vice President and General Counsel, and the Treasurer (the
"Reviewing Officers") be, and they hereby are, authorized and directed to
execute and deliver the Underwriting Agreement and the Indenture, in
substantially the forms presented to the Board of Directors, with such changes
therein as are approved by such officers, and authorized and directed to
negotiate the definitive terms of the Offering, including the definitive terms
of the PEPS; provided that the coupon on the PEPS shall not exceed 4.50%, and
the definitive terms of any other material agreements to be entered into by the
Company, the execution and delivery of such agreements and the negotiation of
such terms to be conclusive evidence of the advisability and necessity thereof.
GENERAL
RESOLVED, that each officer of the Company, acting alone or in concert, is
authorized to prepare, execute and file, or cause to be filed, on behalf of and
in the name of the Company, any notices, applications, certificates,
agreements, or other information, and all modifications, additions, amendments
and supplements thereto, as may be necessary or advisable in connection with
the Offering or the transactions contemplated thereby; and
RESOLVED, that any and all acts heretofore taken by the officers of the
Company in the name and on behalf of the Company in connection with the
Offering and not inconsistent with the foregoing resolutions be, and they
hereby are, approved, ratified and confirmed.
3
<PAGE> 1
EXHIBIT 5
[GIBSON, DUNN & CRUTCHER LETTERHEAD]
March 19, 1996
WRITER'S DIRECT DIAL NUMBER OUR FILE NUMBER
(213) 229-7000 C 91007-03901
The Times Mirror Company
Times Mirror Square
Los Angeles, California 90053
Re: Issuance and Sale of up to 1,500,000 4-1/4% Premium Equity
Participating Securities due March 15, 2001
Ladies and Gentlemen:
We have acted as counsel to The Times Mirror Company, a Delaware
corporation (the "Company"), in connection with the registration under the
Securities Act of 1933, as amended (the "Act"), of 1,500,000 4-1/4% Premium
Equity Participating Securities due March 15, 2001 (the "PEPS"). The PEPS are
being issued pursuant to an Indenture dated as of March 19, 1996 between the
Company and Citibank, N.A., as Trustee (the "Indenture").
We are familiar with the corporate action taken by the Company in
connection with the authorization, issuance and sale of the PEPS and have made
such other legal and factual inquiries as we deem necessary for purposes of
rendering this opinion.
Based on the foregoing and in reliance thereon, and subject to the due
execution and delivery of the Indenture and the qualifications and limitations
set forth below, we are of the opinion that (a) the PEPS, upon the issuance
thereof and timely payment in full therefor in the manner described in the
Registration Statement on Form S-3 (File No. 33-62165) of the Company (the
"Registration Statement"), the Prospectus dated February 28, 1996 and the
Prospectus Supplement dated March 13, 1996 describing the terms of the PEPS as
issued, will be validly issued, fully paid and nonassessable and (b) the PEPS
so issued will be legally binding obligations of the Company, entitled to the
benefits provided under the Indenture pursuant to which they are to be issued.
<PAGE> 2
GIBSON, DUNN & CRUTCHER
The Times Mirror Company
March 19, 1996
Page 2
Our opinions set forth above are subject to the effect of (a)
applicable bankruptcy, reorganization, insolvency, moratorium and other similar
laws and court decisions of general application (including without limitation
statutory or other laws regarding fraudulent or preferential transfers)
relating to, limiting or affecting the enforcement of creditors' rights
generally, (b) general principles of equity that may limit the enforceability
of any of the remedies, covenants or other provisions of the PEPS and the
Indenture and the availability of injunctive relief or other equitable remedies
and (c) the application of principles of equity (regardless of whether
enforcement is considered in proceedings at law or in equity) as such
principles relate to, limit or affect the enforcement of creditors' rights
generally.
In addition, we express no opinion as to: (a) any provisions of the
PEPS or the Indenture regarding the remedies available to any person (1) to
take action that is arbitrary, unreasonable or capricious or is not taken in
good faith or in a commercially reasonable manner, whether or not such action
is permitted under the PEPS or the Indenture or (2) for violations or breaches
that are determined by a court to be non-material or without substantially
adverse effect upon the ability of the Company to perform its material
obligations under the PEPS or the Indenture; or (b) the provisions of the PEPS
or the Indenture that may provide for interest on interest or penalty interest.
The Company is a Delaware corporation. We are not admitted to
practice in Delaware. However, we are generally familiar with the Delaware
General Corporation Law and have made such review thereof as we consider
necessary for the purpose of this opinion. Subject to the foregoing, this
opinion is limited to Delaware, New York and federal law.
This opinion may not be quoted in whole or in part without the prior
written consent of this Firm.
We hereby consent to the filing of this opinion as an exhibit to the
Company's Current Report on Form 8-K. In giving this consent, we do not admit
that we are within the category of persons whose consent is required under
Section 7 of the Act or the General Rules and Regulations of the Commission.
Very truly yours,
GIBSON, DUNN & CRUTCHER
PFZ/JMS/MSU/DAW/TDS
<PAGE> 1
EXHIBIT 8
[GIBSON, DUNN & CRUTCHER LETTERHEAD]
March 19, 1996
WRITER'S DIRECT DIAL NUMBER OUR FILE NUMBER
(213) 229-7000 C 91007-03901
The Times Mirror Company
Times Mirror Square
Los Angeles, CA 90053
Re: The Times Mirror Company
Ladies and Gentlemen:
We have acted as counsel to you in connection with your issuance of
1,305,000 Premium Equity Participating Securities due March 15, 2001 ("PEPS").
The terms and conditions of the PEPS are described in the Prospectus Supplement
(the "Supplement") dated March 13, 1996, which supplemented the Prospectus
dated February 28, 1996 included in the Registration Statement on Form S-3
(Registration No. 33-62165) filed with the Securities and Exchange Commission.
We hereby confirm our opinion set forth under the caption "Certain
United States Federal Income Tax Considerations" in the Prospectus Supplement,
and consent to the use of our name in connection therewith.
Very truly yours,
GIBSON, DUNN & CRUTCHER
HB/clt
<PAGE> 1
EXHIBIT 12
THE TIMES MIRROR COMPANY AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(IN THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31
-----------------------------------------------------
1991 1992 1993 1994 1995
-------- -------- -------- -------- ---------
<S> <C> <C> <C> <C> <C>
Fixed Charges
Interest expense......................... $ 76,724 $ 74,281 $ 84,054 $ 69,322 $ 29,467
Interest related to ESOP(a).............. 5,074 4,113 2,611 1,376
Capitalized interest..................... 13,537 3,963 391 1,142 485
Portion of rents deemed to be interest... 21,190 21,857 21,007 20,418 22,180
Amortization of debt expense............. 866 600 995 339 411
-------- -------- -------- -------- ---------
Total Fixed Charges.............. $117,391 $104,814 $109,058 $ 92,597 $ 52,543
======== ======== ======== ======== =========
Earnings (Loss)
Income (loss) from continuing operations
before income taxes................... $ 55,348 $ (7,102) $109,785 $257,899 $(455,013)
Fixed charges, less capitalized interest
and interest related to ESOP(a)....... 98,780 96,738 106,056 90,079 52,058
Amortization of capitalized interest..... 4,576 5,963 4,222 4,229 4,475
Distributed income from less than 50%
owned unconsolidated affiliates....... 190 214 281 292 352
Subtract: Equity loss (income) from less
than 50% owned unconsolidated
affiliates............................ (2,857) 2,025 1,067 1,158 (615)
-------- -------- -------- -------- ---------
Total Earnings (Loss)............ $156,037 $ 97,838 $221,411 $353,657 $(398,743)
======== ======== ======== ======== =========
Ratio of earnings to fixed charges......... 1.3x (b) 2.0x 3.8x (c)
</TABLE>
- ---------------
(a) The Company has guaranteed repayment of debt of the Employee Stock Ownership
Plan and, accordingly, has included the related interest in fixed charges.
This debt was repaid on December 15, 1994.
(b) Earnings are approximately $7 million lower than the amount needed to cover
fixed charges in this year, as earnings in 1992 were impacted by over $200
million in restructuring charges.
(c) Earnings are approximately $451 million lower than the amount needed to
cover fixed charges in this period, as earnings in this period were impacted
by approximately $768 million in restructuring charges.
Page 1 of 2
<PAGE> 2
EXHIBIT 12
THE TIMES MIRROR COMPANY AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED
CHARGES AND PREFERRED STOCK DIVIDENDS
<TABLE>
<CAPTION>
YEAR
ENDED
DECEMBER 31,
1995
-------------
<S> <C>
Fixed Charges
Interest expense........................................................... $ 29,467
Capitalized interest....................................................... 485
Portion of rents deemed to be interest..................................... 22,180
Amortization of debt expense............................................... 411
---------
Total Fixed Charges................................................ 52,543
Preferred Stock Dividend Requirements........................................ 74,581
---------
Fixed Charges and Preferred Stock Dividends........................ $ 127,124
=========
Earnings (Loss)
Loss from continuing operations before income taxes........................ $(455,013)
Fixed charges, less capitalized interest................................... 52,058
Amortization of capitalized interest....................................... 4,475
Distributed income from less than 50% owned unconsolidated affiliates...... 352
Subtract: Equity income from less than 50% owned unconsolidated
affiliates.............................................................. (615)
---------
Total Loss......................................................... $(398,743)
=========
Ratio of earnings to fixed charges and preferred stock dividends............. (a)
</TABLE>
- ---------------
(a) Earnings are approximately $526 million lower than the amount needed to
cover fixed charges and preferred stock dividends in this period, as
earnings were impacted by approximately $768 million in restructuring
charges.
Page 2 of 2
