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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): APRIL 9, 1997
THE TIMES MIRROR COMPANY
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
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<S> <C> <C>
DELAWARE 1-13492 95-4481525
(STATE OR OTHER JURISDICTION OF (COMMISSION FILE NUMBER) (IRS EMPLOYER IDENTIFICATION NO.)
INCORPORATION)
</TABLE>
TIMES MIRROR SQUARE 90053
LOS ANGELES, CALIFORNIA (ZIP CODE)
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)
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 April 9, 1997, The Times Mirror Company (the "Company") entered into a
Purchase Agreement (a copy of which is attached hereto as Exhibit 1.1) with
Merrill Lynch & Co., Merrill Lynch, Pierce, Fenner & Smith Incorporated (the
"Purchaser") and a Pricing Agreement (a copy of which is attached hereto as
Exhibit 1.2) with the Purchaser, pursuant to which the Company agreed to issue
and sell and the Purchaser agreed, subject to certain conditions, to purchase
$435,000,000 aggregate principal amount at maturity of the Company's Liquid
Yield Option/TM/ Notes due April 15, 2017 (Zero Coupon -- Subordinated) (the
"LYONs") at an initial offering price of $391.06 per $1,000 face amount of LYONs
(the "Offering Price") less underwriting discounts and commissions. Pursuant to
the Purchase Agreement and Pricing Agreement, the Company also granted the
Purchaser an option for 30 days from April 9, 1997 to purchase all or any part
of an additional $65,000,000 aggregate principal amount at maturity of LYONs at
the Offering Price less underwriting discounts and commissions.
The issuance and sale of $435,000,000 aggregate principal amount at
maturity of LYONs (the "Initial LYONs") were completed on April 15, 1997. The
Initial LYONs were issued pursuant to an Indenture dated as of April 15, 1997
between the Company and Citibank, N.A., as trustee (a copy of which is attached
hereto as Exhibit 4.1). The Purchaser offered the LYONs for resale to certain
qualified purchasers in transactions not requiring registration under the
Securities Act of 1933, as amended, including pursuant to Rule 144A thereunder.
The Company and the Purchaser have also entered into a Registration Rights
Agreement (a copy of which is attached hereto as Exhibit 4.2) dated as of April
15, 1997, pursuant to which the Company has agreed to file with the Commission,
within 90 days after April 15, 1997, and to use all reasonable efforts to cause
to become effective, a shelf registration statement with respect to the resale
of the LYONs and the Series A Common Stock, par value $1.00 per share, of the
Company issuable upon conversion of the LYONs and to keep such registration
statement effective until at the latest April 15, 1999.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.
(c) Exhibits.
The following exhibits are filed with this report on Form 8-K:
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<CAPTION>
Exhibit No. Description
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<S> <C>
1.1 Purchase Agreement dated April 9, 1997 between the Company
and Merrill Lynch & Co., Merrill Lynch, Pierce, Fenner &
Smith Incorporated.
1.2 Pricing Agreement dated April 9, 1997 between the Company
and Merrill Lynch & Co., Merrill Lynch, Pierce, Fenner &
Smith Incorporated.
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<PAGE>
<TABLE>
<S> <C>
4.1 Indenture dated as of April 15, 1997 between the Company and
Citibank, N.A., as trustee.
4.2 Registration Rights Agreement dated April 15, 1997 between
the Company and Merrill Lynch & Co., Merrill Lynch, Pierce,
Fenner & Smith Incorporated.
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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: April 17, 1997 By: /s/ Kathleen G. McGuinness
-----------------------------
Kathleen G. McGuinness
Vice President and General Counsel
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EXHIBIT INDEX
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<CAPTION>
Exhibit Number Description
- -------------- -----------
<S> <C>
1.1 Purchase Agreement dated April 9, 1997 between the Company
and Merrill Lynch & Co., Merrill Lynch, Pierce, Fenner &
Smith Incorporated.
1.2 Pricing Agreement dated April 9, 1997 between the Company
and Merrill Lynch & Co., Merrill Lynch, Pierce, Fenner &
Smith Incorporated.
4.1 Indenture dated as of April 15, 1997 between the Company and
Citibank, N.A., as trustee.
4.2 Registration Rights Agreement dated April 15, 1997 between
the Company and Merrill Lynch & Co., Merrill Lynch, Pierce,
Fenner & Smith Incorporated.
</TABLE>
<PAGE>
EXHIBIT 1.1
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THE TIMES MIRROR COMPANY
(a Delaware corporation)
LIQUID YIELD OPTION/TM/ NOTES
DUE APRIL 15, 2017
(ZERO COUPON--SUBORDINATED)
PURCHASE AGREEMENT
Dated: April 9, 1997
================================================================================
<PAGE>
THE TIMES MIRROR COMPANY
(a Delaware corporation)
$435,000,000
Liquid Yield Option/TM/ Notes
Due April 15, 2017
(Zero Coupon--Subordinated)
PURCHASE AGREEMENT
------------------
April 9, 1997
MERRILL LYNCH & CO.
Merrill Lynch, Pierce, Fenner & Smith
Incorporated
North Tower
World Financial Center
250 Vesey Street
New York, New York 10281-1209
Ladies and Gentlemen:
The Times Mirror Company, a Delaware corporation (the "Company"),
confirms its agreement with Merrill Lynch & Co., Merrill Lynch, Pierce, Fenner &
Smith Incorporated (the "Initial Purchaser"), with respect to the issue and sale
by the Company and the purchase by the Initial Purchaser of $435,000,000
aggregate principal amount of the Company's Liquid Yield Option/TM/ Notes Due
April 15, 2017 (Zero Coupon--Subordinated) (the "LYONs"), and with respect to
the grant by the Company to the Initial Purchaser of the option described in
Section 2(b) hereof to purchase all or any part of an additional $65,000,000
principal amount of LYONs to cover over-allotments, if any. The aforesaid
$435,000,000 principal amount of LYONs (the "Initial Securities") to be
purchased by the Initial Purchaser and all or any part of the $65,000,000
principal amount of LYONs subject to the option described in Section 2(b) hereof
(the "Option Securities") are hereinafter called, collectively, the
"Securities." The Securities are to be issued pursuant to an Indenture dated as
of April 15, 1997 (the "Indenture") between the Company and Citibank, N.A., as
trustee (the "Trustee"). Securities issued in book-entry form will be issued to
Cede & Co. as nominee of The Depository Trust Company ("DTC") pursuant to a
letter agreement, to be dated as of the Closing Date (as defined in Section 3)
(the "DTC Agreement"), among the Company, the Trustee and DTC.
The Securities are convertible at the option of the holder at any time
on or prior to maturity, unless previously redeemed or otherwise purchased, into
shares of Series A Common Stock, par value $1.00 per share, of the Company (the
"Series A Common Stock")
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at the initial conversion rate of 5.828 shares per LYON, subject to the
Company's right to elect instead to pay such holder in cash the market value of
such shares of Series A Common Stock, in accordance with the terms of the
Securities and the Indenture.
Prior to the purchase and resale of the Securities by the Initial
Purchaser, the Company and the Initial Purchaser shall enter into an agreement
substantially in the form of Exhibit A hereto (the "Pricing Agreement"). The
Pricing Agreement may take the form of an exchange of any standard form of
written telecommunication between the Company and the Initial Purchaser and
shall specify such applicable information as is indicated in Exhibit A hereto.
The offering of the Securities will be governed by this Agreement, as
supplemented by the Pricing Agreement. From and after the date of the execution
and delivery of the Pricing Agreement, this Agreement shall be deemed to
incorporate the Pricing Agreement.
The Company understands that the Initial Purchaser proposes to make an
offering of the Securities on the terms and in the manner set forth herein and
agrees that the Initial Purchaser may resell, subject to the conditions set
forth herein, all or a portion of the Securities to purchasers (the "Subsequent
Purchasers") at any time after the date of this Agreement. The Securities are
to be offered and resold by the Initial Purchaser without being registered under
the Securities Act of 1933, as amended (the "1933 Act"), in reliance upon
exemptions therefrom. Pursuant to the terms of the Securities and the
Indenture, Securities may be resold or otherwise transferred only if such resale
or transfer is hereafter registered under the 1933 Act or if an exemption from
the registration requirements of the 1933 Act is available (including the
exemption afforded by Rule 144A ("Rule 144A") or Regulation S ("Regulation S")
of the rules and regulations promulgated under the 1933 Act by the Securities
and Exchange Commission (the "Commission")). Prior to the purchase of the
Securities by the Initial Purchaser, the Company will enter into with the
Initial Purchaser an agreement (the "Registration Rights Agreement") pursuant to
which the Company is required to file and use its best efforts to have declared
effective a registration statement under the 1933 Act to register resales of
LYONs and the shares of Series A Common Stock issuable upon conversion thereof.
The Company has prepared and delivered to the Initial Purchaser copies
of a preliminary offering memorandum dated March 31, 1997 (the "Preliminary
Offering Memorandum") and has prepared and will deliver to the Initial
Purchaser, on the date hereof or on the next succeeding business day, copies of
a final offering memorandum dated April 9, 1997 (the "Final Offering
Memorandum"), each to be used by the Initial Purchaser in connection with its
solicitation of or purchases of the Securities. "Offering Memorandum" means,
with respect to any date or time referred to in this Agreement, the most recent
offering memorandum (whether the Preliminary Offering Memorandum or the Final
Offering Memorandum, or any amendment or supplement to either such document),
including exhibits thereto and any documents incorporated therein by reference,
which has been prepared and delivered by the Company to the Initial Purchaser in
connection with its solicitation of or purchases of the Securities.
All references in this Agreement to financial statements and schedules
and other information which is "contained," "included" or "stated" in the
Offering Memorandum (or other references of like import) shall be deemed to mean
and include all such financial statements and
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schedules and other information which is incorporated by reference in the
Offering Memorandum; and all references in this Agreement to amendments or
supplements to the Offering Memorandum shall be deemed to mean and include the
filing of any document under the Securities Exchange Act of 1934 (the "1934
Act") which is incorporated by reference in the Offering Memorandum. The term
"Significant Subsidiaries" means the entities listed on Schedule I hereto.
1. Representations and Warranties. The Company represents and
------------------------------
warrants to the Initial Purchaser as of the date hereof and as of the date of
the Pricing Agreement (such latter date being hereinafter referred to as the
"Representation Date") as follows:
(a) The Offering Memorandum does not, and at the Closing Date, as
defined in Section 3 of this Agreement, (and, if any Option Securities are
purchased, at the Date of Delivery (as defined in Section 2(b) of this
Agreement)), will not, include an untrue statement of a material fact or
omit to state a material fact required to be stated therein or necessary to
make the statements therein, in the light of the circumstances under which
they were made, not misleading; provided that this representation, warranty
and agreement shall not apply to pricing information omitted from the
Preliminary Offering Memorandum or statements in or omissions from the
Offering Memorandum made in reliance upon and in conformity with
information furnished to the Company in writing by the Initial Purchaser
expressly for use in the Offering Memorandum.
(b) The Offering Memorandum as delivered from time to time shall
incorporate by reference the most recent Annual Report of the Company on
Form 10-K filed with the Commission and each Quarterly Report of the
Company on Form 10-Q and each Current Report of the Company on Form 8-K
filed with the Commission since the filing of the then most recent Annual
Report of the Company on Form 10-K. The documents incorporated or deemed
to be incorporated by reference in the Offering Memorandum at the time they
were or hereafter are filed with the Commission complied and will comply in
all material respects with the requirements of the 1934 Act and the rules
and regulations of the Commission thereunder (the "1934 Act Regulations"),
and, when read together with the other information in the Offering
Memorandum, at the date of the Offering Memorandum and at the Closing Date
(and, if any Option Securities are purchased, at the Date of Delivery),
will not include an untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary to make the
statements therein, in the light of the circumstances under which they were
made, not misleading.
(c) The accountants who certified the financial statements and
supporting schedules included or incorporated by reference in the Offering
Memorandum are independent certified public accountants with respect to the
Company and its subsidiaries within the meaning of Regulation S-X under the
1933 Act.
(d) The financial statements included or incorporated by reference in
the Offering Memorandum, together with the related schedules and notes,
present fairly, in all material respects, the financial position of the
Company and its consolidated
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subsidiaries at the dates indicated and the statements of operations,
shareholders' equity and cash flows of the Company and its consolidated
subsidiaries for the periods specified; such financial statements have been
prepared in conformity with generally accepted accounting principles
("GAAP"). The supporting schedules, if any, included in the Offering
Memorandum present fairly in all material respects the information required
to be stated therein. The selected financial data included in the Offering
Memorandum present fairly the information shown therein and have been
compiled on a basis consistent with that of the audited financial
statements incorporated by reference in the Offering Memorandum.
(e) 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 Offering Memorandum, 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").
(f) 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.
(g) 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.
(h) The authorized, issued and outstanding capital stock of the
Company is as set forth in the Offering Memorandum in the column entitled
"Actual" under the caption "Capitalization" (except for subsequent
issuances, if any, pursuant to this Agreement, pursuant to reservations,
agreements or employee benefit plans referred to in the Offering
Memorandum, pursuant to the exercise of convertible securities or options
referred to in the Offering Memorandum or pursuant to Company benefit plans
or arrangements existing at the date hereof). The shares of issued and
outstanding capital stock of the Company have been duly authorized and
validly issued and are fully paid and non-assessable; none of the
outstanding shares of capital stock of the Company was issued in violation
of the preemptive or other similar rights of any securityholder of the
Company.
(i) 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
Offering Memorandum, except where failure to so comply, either singly or in
the aggregate, would not have a Material Adverse Effect.
4
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(j) 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 Offering
Memorandum, except where failure to have such licenses or permits, either
singly or in the aggregate, would not have a Material Adverse Effect.
Except as set forth in the Offering Memorandum 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.
(k) This Agreement has been, and at the Representation Date, the
Pricing Agreement and the Registration Rights Agreement will have been,
duly authorized, executed and delivered by the Company.
(l) The Indenture 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.
(m) The Securities have been duly authorized and, when duly executed
by the Company and authenticated in accordance with the provisions of the
Indenture and delivered to and paid for by the Initial Purchaser in
accordance with the terms of each of this Agreement and the Pricing
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.
(n) The Securities and the Indenture will conform in all material
respects to the respective statements relating thereto contained in the
Offering Memorandum.
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(o) Each series of common stock, $1.00 par value, of the Company
("Common Stock") conforms to all statements relating thereto contained or
incorporated by reference in the Offering Memorandum and such description
conforms to the rights set forth in the instruments defining same. Upon
issuance and delivery of the Securities in accordance with this Agreement
and the Indenture, the Securities will be convertible at the option of the
holder thereof into shares of Series A Common Stock, subject to the
Company's right to elect instead to pay such holder in cash the market
value of such shares of Series A Common Stock, in accordance with the terms
of the Securities and the Indenture; the shares of Series A Common Stock
issuable upon conversion of the Securities have been duly authorized and
reserved for issuance upon such conversion by all necessary corporate
action and such shares, when issued upon such conversion, will be validly
issued and will be fully paid and non-assessable; the shares of Series A
Common Stock issuable at the Company's option upon purchase of the
Securities at the option of the holder thereof will have been, prior to the
issuance thereof, duly authorized by all necessary corporate action, and
such shares if and when issued, in accordance with the terms of the
Securities and the Indenture, will be validly issued, fully paid and non-
assessable; no holder of any such shares will be subject to personal
liability by reason of being such a holder; and the issuance of such shares
upon such conversion or purchase will not be subject to the preemptive or
other similar rights of any securityholder of the Company.
(p) The execution and delivery by the Company of, and, as of the date
hereof or the Closing Date or the Date of Delivery as the case may be, the
performance by the Company of its obligations under, this Agreement, the
Pricing Agreement, the Registration Rights Agreement, the Indenture and the
Securities (including the issuance of the shares of Series A Common Stock
issuable upon conversion of 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
Pricing Agreement, the Registration Rights Agreement, the Indenture or the
Securities (including the issuance of the shares of Series A Common Stock
issuable upon conversion of 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.
(q) Since the most recent date as of which information is given in the
Offering Memorandum, except as otherwise stated therein, (A) 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, (B) there have been no transactions
entered into by the Company or any of its subsidiaries, other than those in
the ordinary course of business, which are material with respect to the
Company and its subsidiaries considered as one enterprise, and (C) except
for regular quarterly dividends on the capital
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stock of the Company in amounts per share that are consistent with past
practice, there has been no dividend or distribution of any kind declared,
paid or made by the Company on any class of its capital stock.
(r) 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 Offering Memorandum and are not so
described or any statutes, regulations, contracts or other documents that
are required to be described in the Offering Memorandum that are not so
described.
(s) 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.
(t) To its best knowledge, 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.
(u) Each of the total assets, the revenues and the net income (loss)
of the Company and the Significant Subsidiaries listed on Schedule I, taken
as a whole, constitutes 90% or more of each of the total assets, the
revenues and the net income (loss), respectively, of the Company and all of
its subsidiaries, taken as a whole, as of and for the twelve months ended
December 31, 1996.
(v) Neither the Company, any of its subsidiaries, nor, to the best of
its knowledge, any of its other Affiliates (as defined in Rule 501(b) of
Regulation D under the 1933 Act ("Regulation D")), nor any person acting on
its or their behalf (other than the Initial Purchaser as to which the
Company makes no representation or warranty) has, directly or indirectly,
made offers or sales of any security, or solicited offers to buy any
security, under circumstances that would require the registration of the
Securities under the 1993 Act.
(w) Neither the Company, any of its subsidiaries, nor, to the best of
its knowledge, any of its other Affiliates, nor any person acting on its or
their behalf (other than the Initial Purchaser as to which the Company
makes no representation or warranty) has engaged in any form of general
solicitation or general advertising (within the meaning of Regulation D) in
connection with any offer or sale of the Securities in the United States.
The Securities satisfy the eligibility requirements of Rule 144A(d)(3)
under the 1933 Act. Neither the Company, any of its subsidiaries, nor, to
the best of its knowledge, any of its other Affiliates, nor any person
acting on its or their behalf (other than the Initial Purchaser as to which
the Company makes no representation or warranty) has engaged in any
directed selling efforts with respect to the Securities, and each of them
has complied with the offering restrictions requirement of Regulation S
("Regulation S") under the 1933 Act. Terms used in the preceding sentence
have the
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meanings given to them by Regulation S. The Company has been advised by
the National Association of Securities Dealers, Inc. PORTAL Market that the
Securities have been designated PORTAL eligible securities in accordance
with the rules and regulations of the National Association of Securities
Dealers, Inc. The Securities have been accepted for delivery through Cedel
Bank, societe anonyme, and Morgan Guaranty Trust Company of New York,
Brussels Office, operator of the Euroclear System. The Company is subject
to and in substantial compliance with the reporting requirements of Section
13 or Section 15(d) of the 1934 Act.
2. Agreements to Sell and Purchase.
-------------------------------
(a) On the basis of the representations and warranties herein
contained and subject to the terms and conditions herein set forth, the
Company hereby agrees to sell to the Initial Purchaser, and the Initial
Purchaser hereby agrees to purchase from the Company, at the price per
$1,000 principal amount at maturity set forth in the Pricing Agreement, the
Initial Securities.
(b) In addition, on the basis of the representations and warranties
herein contained and subject to the terms and conditions herein set forth,
the Company hereby grants an option to the Initial Purchaser to purchase up
to an additional $65,000,000 principal amount of Securities at the same
price as is to be paid by the Initial Purchaser for the Initial Securities
(plus accrued interest, if any, from the Closing Date to the Date of
Delivery) on the terms set forth in the Pricing Agreement. The option
hereby granted will expire 30 days after the date hereof and may be
exercised in whole or in part from time to time only for the purpose of
covering over-allotments which may be made in connection with the
subsequent resale of the Initial Securities upon notice by the Initial
Purchaser to the Company setting forth the number of Option Securities as
to which the Initial Purchaser is then exercising the option and the time
and date of payment and delivery for such Option Securities. Any such time
and date of delivery (a "Date of Delivery") shall be determined by the
Initial Purchaser, but shall not be later than seven full business days
after the exercise of said option, nor in any event prior to the Closing
Date, as hereinafter defined. If the option is exercised as to all or any
portion of the Option Securities, the Initial Purchaser will purchase that
number of Option Securities.
3. Payment and Delivery. Payment of the purchase price for, and
--------------------
delivery of certificates for, the Initial Securities shall be made at the
offices of Latham & Watkins, or at such other place, as shall be agreed upon by
the Initial Purchaser and the Company, at 7:00 A.M. (California time) on the
third business day (or fourth business day, if the pricing occurs after 4:30
p.m. on any given day) following the date of the Pricing Agreement, or such
other time not later than ten business days after such date as shall be agreed
upon by the Initial Purchaser and the Company (such time and date of payment and
delivery being herein called "Closing Date").
In addition, in the event that any or all of the Option Securities are
purchased by the Initial Purchaser, payment of the purchase price for, and
delivery of certificates for, such Option Securities shall be made at the above-
mentioned offices, or at such other place as shall
8
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be agreed upon by the Initial Purchaser and the Company, on each Date of
Delivery as specified in the notice from the Initial Purchaser to the Company.
Payment shall be made to the Company by wire transfer of immediately
available funds to a bank account designated by the Company, against delivery to
the Initial Purchaser of certificates for the Securities to be purchased by
them.
Certificates for the Securities shall be in such denominations
($250,000 minimum denominations or integral multiples of $1,000 in excess
thereof) and registered in such names as the Initial Purchaser may request in
writing at least one full business day before the Closing Date or the Date of
Delivery, as the case may be. The Securities will be made available for
examination and packaging by the Initial Purchasers in The City of New York not
later than 10:00 A.M. (Eastern time) on the business day prior to the Closing
Date or the Date of Delivery, as the case may be.
The Initial Purchaser hereby represents and warrants to, and agrees
with, the Company that it (i) is a "qualified institutional buyer" within the
meaning of Rule 144A under the 1933 Act (a "Qualified Institutional Buyer") and
an institutional "accredited investor" within the meaning of Regulation D under
the 1933 Act (an "Accredited Investor"); (ii) has not and will not solicit
offers for, or offer or sell, Securities by means of any general solicitation or
general advertising within the meaning of Rule 502(c) under Regulation D under
the 1933 Act; and (iii) will otherwise act in accordance with the terms and
conditions set forth in this Agreement, including Section 8 hereof, and in the
Offering Memorandum in connection with the placement of the Securities
contemplated hereby.
4. Conditions to the Initial Purchaser's Obligations. The
-------------------------------------------------
obligations of the Company to sell the Securities to the Initial Purchaser and
the obligations of the Initial Purchaser 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
organizations," as such term is defined for purposes of Rule 436(g)(2)
under the 1933 Act; and
(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
Offering Memorandum (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
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<PAGE>
judgment, impracticable to market the Securities on the terms and in
the manner contemplated in the Offering Memorandum.
(b) The Initial Purchaser 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 clause (a)(ii) 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 certificates may rely upon the best of
his or her knowledge as to proceedings threatened.
(c) The Initial Purchaser shall have received on the Closing Date an
opinion of Gibson, Dunn & Crutcher LLP, outside counsel for the Company,
dated the Closing Date, to the effect that:
(i) this Agreement, the Pricing Agreement, and the Registration
Rights Agreement has been duly authorized, executed and delivered by
the Company;
(ii) the Indenture 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 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 by the Company
and, when executed and authenticated in accordance with the provisions
of the Indenture and delivered to and paid for by the Initial
Purchaser in accordance with the terms of each of this Agreement and
the Pricing 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
10
<PAGE>
(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) Upon issuance and delivery of the Securities in accordance
with this Agreement and the Indenture, the Securities shall be
convertible at the option of the holder thereof into shares of Series
A Common Stock, subject to the Company's right to elect instead to pay
such holder in cash the market value of such shares of Series A Common
Stock, in accordance with the terms of the Securities and the
Indenture; the shares of Series A Common Stock issuable upon
conversion of the Securities have been duly authorized and reserved
for issuance upon such conversion by all necessary corporate action;
such shares, when issued upon such conversion, will be validly issued
and will be fully paid and non-assessable and no holder of such Series
A Common Stock is or will be subject to personal liability by reason
of being such a holder;
(v) The issuance of the shares of Series A Common Stock upon
conversion of the Securities is not subject to the preemptive or other
similar rights of any securityholder of the Company;
(vi) The form of certificate used to evidence the Series A Common
Stock complies in all material respects with all applicable statutory
requirements, with any applicable requirements of the charter and by-
laws of the Company and the requirements of the New York Stock
Exchange and the Pacific Stock Exchange;
(vii) the statements in the Offering Memorandum under the
captions "Description of LYONs," "Description of Capital Stock,"
"Certain Federal Income Tax Considerations," and "Plan of
Distribution," in each case insofar as such statements constitute
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;
(viii) 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;
(ix) Assuming the accuracy of the representations and warranties
of the Company and the Initial Purchaser contained herein and
compliance with the agreements of the Company and the Initial
Purchaser contained herein, no registration of the Securities under
the 1933 Act is required, and no qualification of the Indenture under
the Trust Indenture Act of 1939 is necessary, for the offer and sale
of the Securities to the Initial Purchaser as contemplated by this
Agreement or in connection with the initial resale of the Securities
by the Initial Purchaser in accordance with Section 1 of this
Agreement;
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<PAGE>
(x) The Securities are not of the same class (within the meaning of
Rule 144A) as securities of the Company that are listed on a national
securities exchange registered under Section 6 of the 1934 Act or that
are quoted in a United States automated inter-dealer quotation system.
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) the
Offering Memorandum or any amendment or supplement thereto on the date of the
Offering Memorandum, the date of any amendment or supplement to the Offering
Memorandum, or at the Closing Date or Date of Delivery (as applicable), included
an untrue statement of a material fact or omitted to state a material fact
required to be stated therein or necessary to make the statements therein, in
light of the circumstances under which they were made, not misleading.
(d) The Initial Purchaser 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:
(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 Offering Memorandum,
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, as of the
date of such opinion, the performance by the Company of its
obligations under, this Agreement, the Pricing Agreement, the
Registration Rights Agreement, the Securities and the Indenture
(including the issuance of the shares of Series A Common Stock
issuable upon conversion of the Securities) 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, as of the date of such
opinion, 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 Pricing Agreement, the Registration Rights Agreement,
the Securities and the Indenture, (including the issuance of the
shares of Series A Common Stock issuable upon conversion of 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;
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<PAGE>
(iii) the authorized, issued and outstanding capital stock of
the Company is as set forth in the Offering Memorandum in the column
entitled "Actual" under the caption "Capitalization" (except for
subsequent issuances, if any, pursuant to this Agreement, pursuant to
reservations, agreements or employee benefit plans referred to in the
Offering Memorandum, pursuant to the exercise of convertible
securities or options referred to in the Offering Memorandum or
pursuant to Company benefit plans or arrangements existing at the date
hereof); the shares of issued and outstanding capital stock of the
Company have been duly authorized and validly issued and are fully
paid and non-assessable; and none of the outstanding shares of capital
stock of the Company was issued in violation of the preemptive or
other similar rights of any securityholder of the Company;
(iv) 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 Offering
Memorandum that are not described as required.
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) the
Offering Memorandum or any amendment or supplement thereto on the date of the
Offering Memorandum, the date of any amendment or supplement to the Offering
Memorandum, or at the Closing Date or Date of Delivery (as applicable), included
an untrue statement of a material fact or omitted to state a material fact
required to be stated therein or necessary to make the statements therein, in
light of the circumstances under which they were made, not misleading.
(e) The Representatives shall have received on the Closing Date an
opinion of Latham & Watkins, counsel for the Initial Purchaser, dated the
Closing Date, covering the matters referred to in subparagraphs (i), (ii),
(iii), (iv), (vii) (but only as to the statements in the Offering
Memorandum under "Description of LYONs" and "Plan of Distribution"), (ix)
and (x) 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 LLP,
Kathleen G. McGuinness and Latham & Watkins may each state that their
belief is based upon their participation in the preparation of the Offering
Memorandum 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 LLP and Kathleen G.
McGuinness described in paragraphs (c) and (d) above shall be rendered to
the Initial Purchaser at the request of the Company and shall so state
therein.
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<PAGE>
(f) The Initial Purchaser shall have received, at the time of the
execution of this Agreement, a letter dated such date, in form and
substance satisfactory to the Initial Purchaser 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 financial statements and certain financial
information included or incorporated by reference in the Offering
Memorandum. At the Closing Date, the Initial Purchaser shall have received
from Ernst & Young LLP, a letter dated as of the Closing Date, to the
effect that they reaffirm the statements made in the letter referred to in
the preceding sentence, except that specified date referred to shall be a
date not more than three business days prior to the Closing Date.
(g) At the Closing Date, the Securities shall be rated at least "A2"
by Moody's Investor's Service Inc. and "A" by Standard & Poor's Ratings
Group, a division of McGraw-Hill, Inc., and the Company shall have
delivered to the Initial Purchaser a letter dated the Closing Date, from
each such rating agency, or other evidence satisfactory to the Initial
Purchaser, confirming that the Securities have such ratings.
(h) In the event that the Initial Purchaser exercises its option
provided in Section 2(b) hereof to purchase all or any portion of the
Option Securities, the representations and warranties of the Company
contained herein and the statements in any certificates furnished by the
Company or any subsidiary of the Company hereunder shall be true and
correct as of each Date of Delivery and, at the relevant Date of Delivery,
the Initial Purchaser shall have received:
(i) A certificate, dated such Date of Delivery, of an executive
officer of the Company confirming that the certificate delivered at
the Closing Date pursuant to Section 4(b) hereof remains true and
correct as of such Date of Delivery.
(ii) The favorable opinion of Gibson, Dunn & Crutcher LLP,
counsel for the Company, dated such Date of Delivery, relating to the
Option Securities to be purchased on such Date of Delivery and
otherwise to the same effect as the opinion required by Section 4(c)
hereof.
(iii) The favorable opinion of Kathleen G. McGuinness, General
Counsel for the Company, dated such Date of Delivery, relating to the
Option Securities to be purchased on such Date of Delivery and
otherwise to the same effect as the opinion required by Section 4(d)
hereof;
(iv) The favorable opinion of Latham & Watkins, counsel for the
Initial Purchaser, dated such Date of Delivery, relating to the Option
Securities to be purchased on such Date of Delivery and otherwise to
the same effect as the opinion required by Section 4(e) hereof.
(v) A letter from Ernst & Young LLP, in form and substance
satisfactory to the Initial Purchaser and dated such Date of Delivery,
substantially
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<PAGE>
in the same form and substance as the letter furnished to the Initial
Purchaser pursuant to Section 4(f) hereof, except that the "specified
date" in the letter furnished pursuant to this paragraph shall be a
date not more than three business days prior to such Date of Delivery.
(vi) Subsequent to the date of this Agreement, no downgrading
shall have occurred in the rating accorded the Securities or of any of
the Company's other securities by any "nationally recognized
statistical rating organization", as that term is defined by the
Commission for purposes of Rule 436(g)(2) under the 1933 Act, and no
such organization shall have publicly announced that it has under
surveillance or review its ratings of any of the Company's securities.
(i) At the Closing Date and at each Date of Delivery, counsel for the
Initial Purchaser shall have been furnished with such documents as they may
require for the purpose of enabling them to pass upon the issuance and sale
of the Securities as herein contemplated, or in order to evidence the
accuracy of any of the representations or warranties, or the fulfillment of
any of the conditions, herein contemplated; and all proceedings taken by
the Company in connection with the issuance and sale of the Securities as
herein contemplated shall be reasonably satisfactory in form and substance
to the Initial Purchaser and counsel for the Initial Purchaser.
(j) If any condition specified in this Section shall not have been
fulfilled when and as required to be fulfilled, this Agreement, or, in the
case of any condition to the purchase of Option Securities, on a Date of
Delivery which is after the Closing Date, the obligations of the Initial
Purchaser to purchase the relevant Option Securities, may be terminated by
the Initial Purchaser by notice to the Company at any time at or prior to
Closing Date or such Date of Delivery, as the case may be, and such
termination shall be without liability of any party to any other party
except as provided in Section 5(g)(iv) hereof and except that Sections 1, 6
and 7 shall survive any such termination and remain in full force and
effect.
5. Covenants of the Company. In further consideration of the
------------------------
agreements of the Initial Purchaser herein contained, the Company covenants with
the Initial Purchaser as follows:
(a) To furnish to you, as promptly as possible, without charge, such
number of copies of the Preliminary Offering Memorandum, the Final Offering
Memorandum and any supplements and amendments thereto and documents
incorporated by reference therein as you may reasonably request.
(b) The Company will give the Initial Purchaser notice of its
intention to prepare any amendment to the Offering Memorandum and will not
use any such amendment or supplement to which the Initial Purchaser or
counsel for the Initial Purchaser shall object. Neither the consent of the
Initial Purchaser, nor the Initial Purchaser's delivery of any such
amendment or supplement, shall constitute a waiver of any of the conditions
set forth in Section 4 hereof.
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<PAGE>
(c) The Company will immediately notify the Initial Purchaser, and
confirm such notice in writing, of (x) any filing made by the Company of
information relating to the offering of the Securities with any securities
exchange or any other regulatory body in the United States or any other
jurisdiction, and (y) prior to the completion of the placement of the
Securities by the Initial Purchaser as evidenced by a notice in writing
from the Initial Purchaser to the Company (which the Initial Purchaser
agrees to provide promptly, and in any event no later than two business
days after such completion), any material changes in or affecting the
earnings, business affairs or business prospects of the Company and its
subsidiaries that (i) make any statement in the Offering Memorandum false
or misleading or (ii) are not disclosed in the Offering Memorandum. In such
event or if during such time any event shall occur or condition exist as a
result of which it is necessary, in the reasonable opinion of the Company,
its counsel, the Initial Purchaser or counsel for the Initial Purchaser, to
amend or supplement the Final Offering Memorandum in order that the Final
Offering Memorandum not include any untrue statement of a material fact or
omit to state a material fact necessary in order to make the statements
therein not misleading in the light of the circumstances then existing, the
Company will forthwith amend or supplement the Final Offering Memorandum by
preparing and furnishing to the Initial Purchaser an amendment or
amendments of, or a supplement or supplements to, the Final Offering
Memorandum (in form and substance satisfactory in the reasonable opinion of
counsel for the Initial Purchaser) so that, as so amended or supplemented,
the Final Offering Memorandum will not include an untrue statement of a
material fact or omit to state a material fact necessary in order to make
the statements therein, in the light of the circumstances existing at the
time it is delivered to a Subsequent Purchaser, not misleading or so that
the Offering Memorandum, as amended or supplemented, will comply with law.
(d) To endeavor to qualify the Securities (and the shares of Series A
Common Stock issuable upon conversion of the Securities) for offer and sale
under the securities or blue sky laws of such jurisdictions as you shall
reasonably request.
(e) The Company agrees that, in order to render the Securities
eligible for resale pursuant to Rule 144A under the 1933 Act, while any of
the Securities remain outstanding, to make available, upon request, to any
holder of Securities or prospective purchasers of Securities the
information specified in Rule 144A(d)(4), unless the Company furnishes
information to the Commission pursuant to Section 13 or 15(d) of the 1934
Act.
(f) The Company agrees that it will not make any offer and sale of
securities of the Company of any class if, as a result of the doctrine of
"integration" referred to in Rule 502 under the 1933 Act, such offer and
sale would render invalid (as applicable to (i) the sale of the Securities
by the Company to the Initial Purchaser, (ii) the resale of the Securities
by the Initial Purchaser to Subsequent Purchasers or (iii) the resale of
the Securities by such Subsequent Purchasers to others, in each case in
accordance with the terms and conditions herein set forth) the exemption
from the registration requirements of the 1933 Act provided by Section 4(2)
thereof or by Rule 144A or by Regulation S thereunder.
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<PAGE>
(g) To pay all expenses incident to the performance of its obligations
under this Agreement (other than the fees and disbursements of Initial
Purchaser's counsel, except to the extent set forth in clause (iv) below or
in Section 6), including: (i) the preparation of the Offering Memorandum
and all amendments and supplements thereto; (ii) the 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 and the shares of Series A Common Stock
issuable upon conversion or purchase of the Securities under state
securities or blue sky laws in accordance with the provisions of Section
5(d) hereof, including filing fees and the reasonable fees and
disbursements of counsel for the Initial Purchaser in connection therewith
and in connection with the preparation of the Blue Sky Survey and any Legal
Investment Survey, (v) the printing and delivery to the Initial Purchaser
of copies of the Offering Memorandum and any amendments or supplements
thereto; (vi) the printing and delivery to the Initial Purchaser 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 printing of
reproduction of this Agreement, the Pricing Agreement and the Indenture;
and (ix) any expenses incurred by the Company in connection with a "road
show" presentation to potential investors.
(h) In connection with the original distribution of the Securities,
the Company agrees that, prior to any offer or resale of the Securities by
the Initial Purchaser, the Initial Purchaser and counsel for the Initial
Purchaser shall have the right to make reasonable inquiries into the
business of the Company and its subsidiaries. The Company also agrees to
provide each prospective Subsequent Purchaser of Securities who so requests
information of the type specified in Rule 502(b)(v) under the 1933 Act.
6. Indemnification.
---------------
(a) The Company agrees to indemnify and hold harmless the Initial
Purchaser and each person, if any, who controls the Initial Purchaser
within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934
Act as follows:
(i) against any and all loss, liability, claim, damage and
reasonable expense (including the reasonable fees and disbursements of
counsel) whatsoever, as incurred, arising out of any untrue statement
or alleged untrue statement of a material fact contained in the
Offering Memorandum (or any amendment or supplement thereto),
including the information incorporated by reference therein, or the
omission or alleged omission therefrom of a material fact required to
be stated therein or necessary to make the statements therein, in
light of the circumstances under which they were made, not misleading
or arising out of any untrue statement or alleged untrue statement of
a material fact included in any Preliminary Offering Memorandum;
(ii) against any and all loss, liability, claim, damage and
reasonable expense (including the reasonable fees and disbursements of
counsel) whatsoever, as incurred, to the extent of the aggregate
amount paid in settlement of any
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litigation, or any investigation or proceeding by any governmental
agency or body, commenced or threatened, or of any claim whatsoever
based upon any such untrue statement or omission, or any such alleged
untrue statement or omission; provided that (subject to Section 6(d)
below) any such settlement is effected with the written consent of the
Company; and
(iii) against any and all expense whatsoever, as incurred
(including the fees and disbursements of counsel chosen by the Initial
Purchaser), reasonably incurred in investigating, preparing or
defending against any litigation, or any investigation or proceeding
by any governmental agency or body, commenced or threatened, or any
claim whatsoever based upon any such untrue statement or omission, or
any such alleged untrue statement or omission, to the extent that any
such expense is not paid under (i) or (ii) above;
provided, however, that (i) this indemnity agreement shall not apply to any
-------- -------
loss, liability, claim, damage or expense to the extent arising out of any
untrue statement or omission or alleged untrue statement or omission made
in reliance upon and in conformity with written information furnished to
the Company by the Initial Purchaser expressly for use in the Offering
Memorandum (or any amendment or supplement thereto) or any Preliminary
Offering Memorandum and (ii) with respect to any Preliminary Offering
Memorandum, such indemnity shall not inure to the benefit of the Initial
Purchaser (or any person controlling such Initial Purchaser) if the person
asserting any such loss, liability, claim, damage or expense did not
receive a copy of the Offering Memorandum (and any amendment or supplement
thereto) at or prior to the confirmation of the sale of such Securities to
such person and the untrue statement or omission of a material fact
contained in such Preliminary Offering Memorandum was corrected in the
Offering Memorandum (or any amendment or supplement thereto).
(b) The Initial Purchaser agrees to indemnify and hold harmless the
Company, its directors, each of its officers, and each person, if any, who
controls the Company within the meaning of Section 15 of the 1933 Act or
Section 20 of the 1934 Act against any and all loss, liability, claim,
damage and reasonable expense described in the indemnity contained in
subsection (a) of this Section, as incurred, but only with respect to
untrue statements or omissions, or alleged untrue statements or omissions,
made in the Offering Memorandum (or any amendment thereto), or any
Preliminary Offering Memorandum in reliance upon and in conformity with
written information furnished to the Company by the Initial Purchaser
expressly for use in the Offering Memorandum (or any amendment thereto) or
such Preliminary Offering Memorandum.
(c) Each indemnified party shall give notice as promptly as reasonably
practicable to each indemnifying party of any action commenced against it
in respect of which indemnity may be sought hereunder, but failure to so
notify an indemnifying party shall not relieve such indemnifying party from
any liability hereunder to the extent it is not materially prejudiced as a
result thereof and in any event shall not relieve it from any liability
which it may have otherwise than on account of this indemnity agreement. In
the case of parties indemnified pursuant to Section 6(a) above, counsel to
the indemnified
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parties shall be selected by the Initial Purchaser, which counsel shall be
reasonably acceptable to the Company, and, in the case of parties
indemnified pursuant to Section 6(b) above, counsel to the indemnified
parties shall be selected by the Company. An indemnifying party may
participate at its own expense in the defense of any such action; provided,
--------
however, that counsel to the indemnifying party shall not (except with the
-------
consent of the indemnified party) also be counsel to the indemnified party.
In no event shall the indemnifying parties be liable for fees and expenses
of more than one counsel (in addition to any local counsel) separate from
their own counsel for all indemnified parties in connection with any one
action or separate but similar or related actions in the same jurisdiction
arising out of the same general allegations or circumstances.
No indemnifying party shall, without the prior written consent of the
indemnified parties, settle or compromise or consent to the entry of any
judgment with respect to any litigation, or any investigation or proceeding
by any governmental agency or body, commenced or threatened, or any claim
whatsoever in respect of which indemnification or contribution could be
sought under this Section 6 or Section 7 hereof (whether or not the
indemnified parties are actual or potential parties thereto), unless such
settlement, compromise or consent (i) includes an unconditional release of
each indemnified party from all liability arising out of such litigation,
investigation, proceeding or claim and (ii) does not include a statement as
to or an admission of fault, culpability or a failure to act by or on
behalf of any indemnified party.
(d) If at any time an indemnified party shall have requested in
writing an indemnifying party to reimburse the indemnified party for fees
and expenses of counsel, such indemnifying party agrees that it shall be
liable for any settlement of the nature contemplated by Section 6(a)(ii)
effected without its written consent if (i) such settlement is entered into
more than 45 days after receipt by such indemnifying party of the aforesaid
request, (ii) such indemnifying party shall have received notice of the
terms of such settlement at least 30 days prior to such settlement being
entered into and (iii) such indemnifying party shall not have reimbursed
such indemnified party in accordance with such request prior to the date of
such settlement; provided, however, if at any time an indemnified party
-------- -------
shall have requested an indemnifying party to reimburse the indemnified
party for fees and expenses of counsel, an indemnifying party shall not be
liable for any settlement of the nature contemplated by this Section 6(d)
effected without its written consent if (x) such indemnifying party
reimburses such indemnified party in accordance with such request to the
extent it considers such request to be reasonable; and (y) such
indemnifying party provides written notice to the indemnified party
substantiating the unpaid balance as unreasonable, in each case prior to
the date of such settlement.
7. Contribution. If the indemnification provided for in Section 6
------------
hereof is for any reason unavailable to or insufficient to hold harmless an
indemnified party in respect of any losses, liabilities, claims, damages or
expenses referred to therein, then each indemnifying party shall contribute to
the aggregate amount of such losses, liabilities, claims, damages and expenses
incurred by such indemnified party, as incurred, (i) in such proportion as is
appropriate to reflect the relative benefits received by the Company on the one
hand and the Initial Purchaser
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on the other hand from the offering of the Securities pursuant to this Agreement
or (ii) if the allocation provided by clause (i) 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 Initial Purchaser on the other hand in
connection with the statements or omissions which resulted in such losses,
liabilities, claims, damages or expenses, as well as any other relevant
equitable considerations.
The relative benefits received by the Company on the one hand and the
Initial Purchaser on the other hand in connection with the offering of the
Securities pursuant to this Agreement shall be deemed to be in the same
respective proportions as the total net proceeds from the offering of the
Securities pursuant to this Agreement (before deducting expenses) received by
the Company and the total purchase discount received by the Initial Purchaser,
in each case as set forth in the Offering Memorandum, bear to the aggregate
initial offering price of the Securities.
The relative fault of the Company on the one hand and the Initial
Purchaser on the other hand shall be determined by reference to, among other
things, whether any such untrue or alleged untrue statement of a material fact
or omission or alleged omission to state a material fact relates to information
supplied by the Company or by the Initial Purchaser and the parties' relative
intent, knowledge, access to information and opportunity to correct or prevent
such statement or omission.
The Company and the Initial Purchaser agree that it would not be just
and equitable if contribution pursuant to this Section 7 were determined by pro
rata allocation or by any other method of allocation which does not take account
of the equitable considerations referred to above in this Section 7. The
aggregate amount of losses, liabilities, claims, damages and expenses incurred
by an indemnified party and referred to above in this Section 7 shall be deemed
to include any legal or other expenses reasonably incurred by such indemnified
party in investigating, preparing or defending against any litigation, or any
investigation or proceeding by any governmental agency or body, commenced or
threatened, or any claim whatsoever based upon any such untrue or alleged untrue
statement or omission or alleged omission.
Notwithstanding the provisions of this Section 7, the Initial
Purchaser shall not be required to contribute any amount in excess of the amount
by which the total price at which the Securities sold by it exceeds the amount
of any damages which the Initial Purchaser has otherwise been required to pay by
reason of any 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 1933 Act) shall be entitled to contribution from any
person who was not guilty of such fraudulent misrepresentation.
For purposes of this Section 7, each person, if any, who controls an
Initial Purchaser within the meaning of Section 15 of the 1933 Act or Section 20
of the 1934 Act shall have the same rights to contribution as the Initial
Purchaser, and each director of the Company, each officer of the Company, and
each person, if any, who controls the Company within the
20
<PAGE>
meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have
the same rights to contribution as the Company.
8. Subsequent Offers and Resales of the Securities.
-----------------------------------------------
(a) Each of the Initial Purchaser and the Company hereby establish and
agree to observe the following procedures in connection with the offer and
sale by the Initial Purchaser of the Securities.
(i) Offers and sales of the Securities will be made by the
Initial Purchaser only to (A) institutional investors that are
reasonably believed to qualify as Accredited Investors (each such
institutional investor being hereinafter referred to as an
"Institutional Accredited Investor"), or (B) in the case of Securities
resold or otherwise transferred pursuant to Rule 144A, to
institutional investors that are reasonably believed to qualify as
Qualified Institutional Buyers or (C) to non-U.S. persons in offshore
transactions in reliance upon Regulation S under the 1933 Act.
(ii) The Securities will be offered by the Initial Purchaser only
by approaching prospective Subsequent Purchasers on an individual
basis. No general solicitation or general advertising (within the
meaning of Rule 502(c) under the 1933 Act) will be used in connection
with the offering of the Securities.
(iii) In the case of a non-bank Subsequent Purchaser of a
Security acting as a fiduciary for one or more third parties, in
connection with an offer and sale to such purchaser pursuant to clause
(a) above, each third party shall, in the judgment of the Initial
Purchaser, be an Institutional Accredited Investor or a Qualified
Institutional Buyer or a non-U.S. person outside the United States.
(iv) No sale of the Securities to any one Subsequent Purchaser
will be for less than U.S. $250,000 principal amount and no Security
will be issued in a smaller principal amount. If the Subsequent
Purchaser is a non-bank fiduciary acting on behalf of others, each
person for whom it is acting must purchase at least U.S. $250,000
principal amount of the Securities.
(v) The transfer restrictions and the other provisions set forth
in Section 2.06 of the Indenture, including the legend required
thereby, shall apply to the Securities except as otherwise agreed by
the Company and the Initial Purchaser. Following the sale of the
Securities by the Initial Purchaser to Subsequent Purchasers pursuant
to the terms hereof, except as otherwise provided in Section 6 hereof,
the Initial Purchaser shall not be liable or responsible to the
Company for any losses, damages or liabilities suffered or incurred by
the Company, including any losses, damages or liabilities under the
1933 Act, arising from or relating to any resale or transfer of any
Security.
21
<PAGE>
(vi) The Initial Purchaser will deliver to each Subsequent
Purchaser, in connection with its original distribution of the
Securities, a copy of the Offering Memorandum, as amended and
supplemented at the date of such delivery.
(b) The Initial Purchaser understands that the Securities have not
been and will not be registered under the 1933 Act and may not be offered
or sold within the United States or to, or for the account or benefit of,
U.S. persons except in accordance with Regulation S under the 1933 Act or
pursuant to an exemption from the registration requirements of the 1933
Act. The Initial Purchaser represents and agrees that, except as permitted
herein, it has offered and sold Securities and will offer and sell
Securities (i) as part of its distribution at any time and (ii) otherwise
until forty days after the later of the date upon which the offering of the
Securities commences and the Closing Date, only in accordance with Rule 903
of Regulation S or Rule 144A under the 1933 Act. Accordingly, neither the
Initial Purchaser, its affiliates nor any persons acting on its behalf have
engaged or will engage in any directed selling efforts with respect to
Securities, and the Initial Purchaser, its affiliates and any person acting
on its behalf have complied and will comply with the offering restriction
requirements of Regulation S. The Initial Purchaser agrees that, at or
prior to confirmation of a sale of Securities (other than a sale of
Securities pursuant to Rule 144A), it will have sent to each distributor,
dealer or person, if any, receiving a selling concession, fee or other
remuneration that purchases Securities from it or through it during the
restricted period a confirmation or notice to substantially the following
effect:
"The Securities covered hereby have not been registered under the
United States Securities Act of 1933 (the "Securities Act") and
may not be offered or sold within the United States or to or for
the account or benefit of U.S. persons (i) as part of their
distribution at any time and (ii) otherwise until forty days
after the later of the date upon which the offering of the
Securities commenced and the date of closing, except in either
case in accordance with Regulation S or Rule 144A under the
Securities Act. Terms used above have the meaning given to them
by Regulation S."
Terms used in the above paragraph have the meanings given to them by
Regulation S.
9. Termination. (a) Initial Purchaser may terminate this Agreement,
-----------
by notice to the Company, at any time at or prior to Closing Date (i) if there
has been, since the time of execution of this Agreement or since the respective
dates as of which information is given in the Offering Memorandum, except as
otherwise stated therein, 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, or (ii) if there has occurred any material
adverse change in the financial markets in the United States or the
international financial markets, any outbreak of hostilities or escalation
22
<PAGE>
thereof or other calamity or crisis or any change or development involving a
prospective change in national or international political, financial or economic
conditions, in each case the effect of which is such as to make it in the
judgment of the Initial Purchaser, impracticable to market the Securities or to
enforce contracts for the sale of the Securities, or (iii) if trading in any
securities of the Company has been suspended or materially limited by the
Commission or the New York Stock Exchange, if trading generally on the American
Stock Exchange or the New York Stock Exchange or in the Nasdaq National Market
has been suspended or materially limited, or minimum or maximum prices for
trading have been fixed, or maximum ranges for prices have been required, by any
of said exchanges or by such system or by order of the Commission, the National
Association of Securities Dealers, Inc. or any other governmental authority, or
(iv) if a banking moratorium has been declared by either Federal or New York
authorities.
(b) If this Agreement is terminated pursuant to this Section, such
termination shall be without liability of any party to any other party except as
provided in Section 5(g)(iv) hereof, and provided further that Sections 1, 6 and
7 shall survive such termination and remain in full force and effect.
10. Effectiveness. This Agreement shall become effective upon the
-------------
execution and delivery hereof by the parties hereto.
If this Agreement shall be terminated by the Initial Purchaser,
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 Initial Purchaser), the
Company will reimburse the Initial Purchaser severally, for all out-of-pocket
expenses (including the reasonable fees and disbursements of its counsel)
reasonably incurred by such Initial Purchaser in connection with this Agreement
or the offering contemplated hereunder.
11. 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.
12. Applicable Law. This Agreement shall be governed by and
--------------
construed in accordance with the internal laws of the State of New York.
13. 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.
14. Representations, Warranties and Agreements to Survive Delivery.
--------------------------------------------------------------
All representations, warranties and agreements contained in this Agreement and
the Pricing Agreement, or contained in certificates of officers of the Company
submitted pursuant hereto, and shall survive delivery of the Securities to the
Initial Purchaser.
23
<PAGE>
If the foregoing is in accordance with your understanding of our
agreement, please sign and return to the Company a counterpart hereof, whereupon
this instrument, along with all counterparts, will become a binding agreement
between the Initial Purchaser and the Company in accordance with its terms.
Very truly yours,
THE TIMES MIRROR COMPANY
By:
---------------------
Title:
CONFIRMED AND ACCEPTED,
as of the date first above written:
MERRILL LYNCH & CO.
MERRILL LYNCH, PIERCE, FENNER & SMITH
INCORPORATED
By
-----------------------------------
Authorized Signatory
24
<PAGE>
SCHEDULE I
Significant Subsidiaries of the Company
The Baltimore Sun Company
Newsday, Inc.
Jeppesen Sanderson, Inc.
Mosby-Year Book, Inc.
Matthew Bender & Company, Incorporated
The Hartford Courant Company
Jeppesen & Co., GmbH
The Morning Call, Inc.
Times Mirror Magazines, Inc.
Times Mirror Training, Inc.
<PAGE>
EXHIBIT 1.2
THE TIMES MIRROR COMPANY
$435,000,000 LIQUID YIELD OPTION/TM/ NOTES DUE 2017
(ZERO COUPON--SUBORDINATED)
PRICING AGREEMENT
April 9, 1997
MERRILL LYNCH & CO.
Merrill Lynch, Pierce, Fenner & Smith
Incorporated
Merrill Lynch World Headquarters
North Tower
World Financial Center
250 Vesey Street
New York, N.Y. 10281-1209
Dear Sirs:
Reference is made to the Purchase Agreement dated April 9, 1997 (the
"Purchase Agreement") relating to the purchase by Merrill Lynch & Co., Merrill
Lynch, Pierce, Fenner & Smith Incorporated (the "Initial Purchaser") of the
above Liquid Yield Option/tm/ Notes due 2017 (Zero Coupon -- Subordinated) (the
"Securities") of The Times Mirror Company (the "Company").
Pursuant to Section 2 of the Purchase Agreement, the Company agrees
with the Initial Purchaser as follows:
1. The initial offering price per $1,000 principal amount at maturity
of the Securities, determined as provided in such Section 2, shall be
$391.06, which represents a yield to maturity of 4.75% per annum (computed
on a semi-annual bond equivalent basis).
2. The initial conversion rate of the Securities shall be 5.828
shares of the Company's Series A Common Stock, par value $1.00 per share,
per $1,000 principal amount at maturity of the Securities.
3. Prior to April 15, 2002, the Securities will not be redeemable.
/TM/ Trademark of Merrill Lynch & Co., Inc.
<PAGE>
4. The purchase price per $1,000 principal amount at maturity of the
Securities to be paid by the Initial Purchaser shall be $381.2835 being an
amount equal to the initial offering price set forth above, less $9.7765
per $1,000 principal amount at maturity of the Securities.
5. The redemption prices to be supplied on page 21 of the Offering
Memorandum (and correspondingly in the Indenture) shall be:
<TABLE>
<CAPTION>
Accrued Original
LYON Issue Issue Discount
Redemption Date Price at 4.75% Redemption Price
- --------------- ---------- ----------------- ----------------
<S> <C> <C> <C>
April 15, 2002.......................... $391.06 $103.46 $ 494.52
April 15, 2003.......................... 391.06 127.23 518.29
April 15, 2004.......................... 391.06 152.14 543.20
April 15, 2005.......................... 391.06 178.25 569.31
April 15, 2006.......................... 391.06 205.61 596.67
April 15, 2007.......................... 391.06 234.29 625.35
April 15, 2008.......................... 391.06 264.34 655.40
April 15, 2009.......................... 391.06 295.85 686.91
April 15, 2010.......................... 391.06 328.86 719.92
April 15, 2011.......................... 391.06 363.46 754.52
April 15, 2012.......................... 391.06 399.73 790.79
April 15, 2013.......................... 391.06 437.74 828.80
April 15, 2014.......................... 391.06 477.57 868.63
April 15, 2015.......................... 391.06 519.32 910.38
April 15, 2016.......................... 391.06 563.08 954.14
At Maturity............................. 391.06 608.94 1,000.00
</TABLE>
6. The Purchase Dates and Purchase Prices to be inserted on the cover
page of the Offering Memorandum shall be:
<TABLE>
<CAPTION>
Purchase Date Purchase Price
--------------- --------------
<S> <C>
April 15, 2002 $494.52
April 15, 2007 625.35
April 15, 2012 790.79
</TABLE>
7. The prices referred to in paragraphs 5 and 6 above are subject to
adjustment upon the occurrence of a Tax Event and the subsequent conversion
of the Securities to semiannual coupon notes in the manner specified in the
Offering Memorandum.
<PAGE>
The Company represents and warrants to the Initial Purchaser that the
representations and warranties of the Company set forth in Section 1 of the
Purchase Agreement are accurate as though expressly made at and as of the date
hereof.
This Agreement shall be governed by the laws of the State of New York.
If the foregoing is in accordance with your understanding of our
agreement, please sign and return to the Company a counterpart hereof, whereupon
this instrument, along with all counterparts, will become a binding agreement
between the Initial Purchaser and the Company in accordance with its terms.
Very truly yours,
THE TIMES MIRROR COMPANY
By:
------------------------
Kathleen G. McGuinness
Vice President, General
Counsel and Secretary
CONFIRMED AND ACCEPTED,
as of the date first above written:
MERRILL LYNCH, PIERCE, FENNER & SMITH
INCORPORATED
By:
---------------------------------
<PAGE>
EXHIBIT 4.1
THE TIMES MIRROR COMPANY
LIQUID YIELD OPTION(TM) NOTES DUE 2017
(ZERO COUPON -- SUBORDINATED)
_______________________
INDENTURE
Dated as of April 15, 1997
_______________________
Citibank, N.A.,
Trustee
================================================================================
(TM)Trademark of Merrill Lynch & Co., Inc.
<PAGE>
TABLE OF CONTENTS
NOTE: This Table of Contents shall not, for any purpose, be deemed to be
part of the Indenture.
<TABLE>
<CAPTION>
Page
<S> <C>
ARTICLE I. DEFINITIONS AND INCORPORATION BY REFERENCE.......................................... 1
SECTION 1.01. Definitions................................................................... 1
SECTION 1.02. Other Definitions............................................................. 8
SECTION 1.03. Incorporation by Reference of Trust Indenture Act............................. 8
SECTION 1.04. Rules of Construction......................................................... 9
ARTICLE II. THE SECURITIES...................................................................... 9
SECTION 2.01. Form and Dating............................................................... 9
SECTION 2.02. Execution and Authentication.................................................. 12
SECTION 2.03. Registrar, Paying Agent and Conversion Agent.................................. 13
SECTION 2.04. Paying Agent To Hold Money and Securities in Trust............................ 13
SECTION 2.05. Securityholder Lists.......................................................... 14
SECTION 2.06. Transfer and Exchange......................................................... 14
SECTION 2.07. Replacement Securities........................................................ 16
SECTION 2.08. Outstanding Securities; Determinations of Holders' Action..................... 17
SECTION 2.09. Temporary Securities.......................................................... 18
SECTION 2.10. Cancellation.................................................................. 18
SECTION 2.11. Global Securities; Temporary Securities....................................... 19
SECTION 2.12. CUSIP Numbers................................................................. 28
ARTICLE III. REDEMPTION AND PURCHASES........................................................... 28
SECTION 3.01. Right to Redeem; Notices to Trustee........................................... 28
SECTION 3.02. Selection of Securities to Be Redeemed........................................ 28
SECTION 3.03. Notice of Redemption.......................................................... 29
SECTION 3.04. Effect of Notice of Redemption................................................ 30
SECTION 3.05. Deposit of Redemption Price................................................... 30
SECTION 3.06. Securities Redeemed in Part................................................... 30
SECTION 3.07. Conversion Arrangement on Call for Redemption................................. 31
SECTION 3.08. Purchase of Securities at the Option of the Holder............................ 31
SECTION 3.09. Purchase of Securities at Option of the Holder upon Change in Control......... 39
SECTION 3.10. Effect of Purchase Notice or Change in Control Purchase Notice................ 42
SECTION 3.11. Deposit of Purchase Price or Change in Control Purchase Price................. 44
SECTION 3.12. Securities Purchased in Part.................................................. 44
SECTION 3.13. Covenant to Comply with Securities Laws upon Purchase of Securities........... 44
SECTION 3.14. Repayment to the Company...................................................... 45
ARTICLE IV. COVENANTS.......................................................................... 45
SECTION 4.01. Payment of Securities......................................................... 45
SECTION 4.02. SEC Reports................................................................... 45
</TABLE>
i
<PAGE>
<TABLE>
<CAPTION>
Page
----
<S> <C>
SECTION 4.03. Statements by Officers as to Default......................................... 46
SECTION 4.04. Calculation of Original Issue Discount....................................... 46
SECTION 4.05. Maintenance of Office or Agency.............................................. 46
SECTION 4.06. Taxes........................................................................ 47
SECTION 4.07. Continued Existence.......................................................... 47
ARTICLE V. CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE................................ 47
SECTION 5.01. Company May Consolidate, Etc., Only on Certain Terms.......................... 47
SECTION 5.02. Successor Substituted......................................................... 48
ARTICLE VI. DEFAULTS AND REMEDIES.............................................................. 49
SECTION 6.01. Events of Default............................................................ 49
SECTION 6.02. Acceleration................................................................. 50
SECTION 6.03. Other Remedies............................................................... 51
SECTION 6.04. Waiver of Past Defaults...................................................... 51
SECTION 6.05. Control by Majority.......................................................... 51
SECTION 6.06. Limitation on Suits.......................................................... 52
SECTION 6.07. Rights of Holders to Receive Payment......................................... 52
SECTION 6.08. Collection Suit by Trustee................................................... 52
SECTION 6.09. Trustee May File Proofs of Claim............................................. 53
SECTION 6.10. Priorities................................................................... 54
SECTION 6.11. Undertaking for Costs........................................................ 54
SECTION 6.12. Notice of Defaults........................................................... 54
SECTION 6.13. Waiver of Stay, Extension or Usury Laws...................................... 55
ARTICLE VII. THE TRUSTEE....................................................................... 55
SECTION 7.01. Certain Duties and Responsibilities.......................................... 55
SECTION 7.02. Notice of Defaults........................................................... 56
SECTION 7.03. Certain Rights of Trustee.................................................... 56
SECTION 7.04. Not Responsible for Recitals or Issuance of Securities....................... 58
SECTION 7.05. May Hold Securities.......................................................... 58
SECTION 7.06. Money Held in Trust.......................................................... 58
SECTION 7.07. Compensation and Reimbursement............................................... 58
SECTION 7.08. Disqualification; Conflicting Interests...................................... 59
SECTION 7.09. Corporate Trustee Required; Eligibility...................................... 60
SECTION 7.10. Resignation and Removal; Appointment of Successor............................ 60
SECTION 7.11. Acceptance of Appointment by Successor....................................... 61
SECTION 7.12. Merger, Conversion, Consolidation or Succession to Business.................. 62
SECTION 7.13. Preferential Collection of Claims Against Company............................ 62
SECTION 7.14. Appointment of Authenticating Agent.......................................... 62
SECTION 7.15. Trustee's Application for Instructions from the Company...................... 64
SECTION 7.16. Reports by Trustee........................................................... 64
ARTICLE VIII. DISCHARGE OF INDENTURE........................................................... 65
SECTION 8.01. Discharge of Liability on Securities......................................... 65
SECTION 8.02. Repayment to the Company..................................................... 65
</TABLE>
ii
<PAGE>
<TABLE>
<CAPTION>
Page
----
<S> <C>
ARTICLE IX. AMENDMENTS........................................................................ 66
SECTION 9.01. Without Consent of Holders.................................................. 66
SECTION 9.02. With Consent of Holders..................................................... 66
SECTION 9.03. Compliance with Trust Indenture Act......................................... 68
SECTION 9.04. Revocation and Effect of Consents, Waivers and Actions...................... 68
SECTION 9.05. Notation on or Exchange of Securities....................................... 68
SECTION 9.06. Trustee to Sign Supplemental Indentures..................................... 68
SECTION 9.07. Effect of Supplemental Indentures........................................... 69
ARTICLE X. SUBORDINATION..................................................................... 69
SECTION 10.01. Securities Subordinate to Senior Indebtedness............................... 69
SECTION 10.02. Payment Over of Proceeds Upon Dissolution, Etc.............................. 69
SECTION 10.03. Acceleration of Securities.................................................. 71
SECTION 10.04. Default on Senior Indebtedness.............................................. 71
SECTION 10.05. Payment Permitted If No Default............................................. 72
SECTION 10.06. Subrogation to Rights of Holders of Senior Indebtedness..................... 73
SECTION 10.07. Provisions Solely to Define Relative Rights................................. 73
SECTION 10.08. Trustee to Effectuate Subordination......................................... 74
SECTION 10.09. No Waiver of Subordination Provisions....................................... 74
SECTION 10.10. Notice to Trustee........................................................... 75
SECTION 10.11. Reliance on Judicial Order or Certificate of Liquidating Agent.............. 75
SECTION 10.12. Trustee Not Fiduciary for Holders of Senior Indebtedness.................... 76
SECTION 10.13. Rights of Trustee as Holder of Senior Indebtedness; Preservation of
Trustee's Rights........................................................... 76
SECTION 10.14. Article X Applicable to Paying Agents....................................... 76
ARTICLE XI. CONVERSION........................................................................ 77
SECTION 11.01. Conversion Privilege........................................................ 77
SECTION 11.02. Conversion Procedure........................................................ 79
SECTION 11.03. Fractional Shares........................................................... 80
SECTION 11.04. Taxes on Conversion......................................................... 81
SECTION 11.05. Company to Provide Stock.................................................... 81
SECTION 11.06. Adjustment for Change in Capital Stock...................................... 81
SECTION 11.07. Adjustment for Rights Issue................................................. 82
SECTION 11.08. Adjustment for Other Distributions.......................................... 83
SECTION 11.09. When Adjustment May Be Deferred............................................. 86
SECTION 11.10. When No Adjustment Required................................................. 86
SECTION 11.11. Notice of Adjustment........................................................ 87
SECTION 11.12. Voluntary Increase.......................................................... 87
SECTION 11.13. Notice of Certain Transactions.............................................. 87
SECTION 11.14. Reorganization of Company; Special Distributions............................. 88
SECTION 11.15. Company Determination Final................................................. 89
SECTION 11.16. Trustee's Adjustment Disclaimer............................................. 89
SECTION 11.17. Simultaneous Adjustments.................................................... 89
SECTION 11.18. Successive Adjustments...................................................... 89
</TABLE>
iii
<PAGE>
<TABLE>
<CAPTION>
Page
----
<S> <C>
ARTICLE XII. SPECIAL TAX EVENT CONVERSION....................................................... 89
SECTION 12.01. Optional Conversion to Semiannual Coupon Note upon Tax Event.................. 89
SECTION 12.02. Payment of Interest; Interest Rights Preserved................................ 90
ARTICLE XIII. MISCELLANEOUS..................................................................... 92
SECTION 13.01. Trust Indenture Act Controls.................................................. 92
SECTION 13.02. Notices....................................................................... 92
SECTION 13.03. Communication by Holders with Other Holders................................... 93
SECTION 13.04. Certificate and Opinion as to Conditions Precedent............................ 93
SECTION 13.05. Statements Required in Certificate or Opinion................................. 93
SECTION 13.06. Separability Clause........................................................... 93
SECTION 13.07. Rules By Trustee, Paying Agent, Conversion Agent and Registrar................ 94
SECTION 13.08. Legal Holiday................................................................. 94
SECTION 13.09. GOVERNING LAW................................................................. 94
SECTION 13.10. No Recourse Against Others.................................................... 94
SECTION 13.11. Successors.................................................................... 94
SECTION 13.12. Multiple Originals............................................................ 94
</TABLE>
iv
<PAGE>
CROSS-REFERENCE TABLE*
<TABLE>
<CAPTION>
TIA Indenture
Section Section
------- ---------
<S> <C>
310(a)(1) ..................................................................... 7.09
(a)(2) ..................................................................... 7.09
(a)(3) ..................................................................... N.A.
(a)(4) ..................................................................... N.A.
(b) ..................................................................... 7.07; 7.09
(c) ..................................................................... N.A.
311(a) ..................................................................... 7.10
(b) ..................................................................... 7.10
(c) ..................................................................... N.A.
312(a) ..................................................................... 2.05
(b) ..................................................................... 12.03
(c) ..................................................................... 12.03
313(a) ..................................................................... 7.05
(b) ..................................................................... 7.05
(c) ..................................................................... 12.02
(d) ..................................................................... 7.05
314(a) ..................................................................... 4.02; 12.02
(b) ..................................................................... N.A.
(c)(1) ..................................................................... 12.04
(c)(2) ..................................................................... 12.04
(c)(3) ..................................................................... N.A.
(d) ..................................................................... N.A.
(e) ..................................................................... 12.05
(f) ..................................................................... 4.04
315(a) ..................................................................... 7.01
(b) ..................................................................... 7.04; 12.02
(e) ..................................................................... 6.11
316(a)(last sentence).......................................................... 2.08
(a)(1)(A)................................................................... 6.05
(a)(1)(B)................................................................... 6.04
(a)(2) ..................................................................... N.A.
(b) ..................................................................... 6.07
317(a)(1) ..................................................................... 6.08
(a)(2) ..................................................................... 6.09
(b) ..................................................................... 2.04
318(a) ..................................................................... 12.01
</TABLE>
N.A. means Not Applicable.
_______________
* Note: This Cross Reference Table shall not, for any purpose, be deemed to be
part of the Indenture.
<PAGE>
INDENTURE, dated as of April 15, 1997, between THE TIMES MIRROR COMPANY, a
Delaware corporation ("Company"), 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").
Each party agrees as follows for the benefit of the other party and for the
equal and ratable benefit of the Holders of the Company's Liquid Yield
Option/TM/ Notes due 2017 (Zero Coupon -- Subordinated) (the "Securities"):
ARTICLE I.
DEFINITIONS AND INCORPORATION BY REFERENCE
SECTION 1.01. DEFINITIONS.
-----------
"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 or cause the direction of 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.
"Applicable Procedures" means, with respect to any transfer or exchange of
beneficial ownership interests in a global Security, the rules and procedures of
the DTC, Euroclear and Cedel that are applicable to such transfer or exchange.
"Authenticating Agent" means any Person authorized by the Trustee pursuant
to Section 7.14 to act on behalf of the Trustee to authenticate securities.
"Authorized Newspaper" means a newspaper, printed in the English language
or 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 each place in connection with which the
term is used or in the financial community of each such place. Whenever
successive publications are required to be made in Authorized Newspapers, the
successive publications may be made in the same or in different Authorized
Newspapers in the same city meeting the foregoing requirements and in each case
on any Business Day.
_____________________
/TM/ Trademark of Merrill Lynch & Co., Inc.
<PAGE>
"Bankruptcy Law" means Title 11, United States Code, or any similar Federal
or state law for the relief of debtors.
"Board of Directors" or "Board" means, with respect to any matter, either
the board of directors of the Company or any committee of such board duly
authorized, with respect to such matter, to exercise the powers of such board.
"Business Day" means each day of the year on which banking institutions in
The City of New York are not required or authorized to close.
"Capital Stock" for any corporation means any and all shares, interests,
rights to purchase, warrants, options, participations or other equivalents of or
interests in (however designated) capital stock issued by that corporation.
"Cash" or "cash" means such coin or currency of The United States of
America as at any time of payment is legal tender for the payment of public and
private debts.
"Cedel" means Centrale de Livraison de Valeurs Mobilieres, S.A., or its
successor.
"Certificated Securities" means Securities that are in the form of the
Securities attached hereto as Exhibit A-1, that do not include the information
called for by footnotes 1 and 2 thereof.
"Chandler Trusts" means collectively Chandler Trust No. 1, Chandler Trust
No. 2 and Chandis Securities Company, which collectively owned 18,668,546 shares
of the Company's Series A Common Stock and 20,757,246 shares of the Company's
Series C Common Stock at March 10, 1997.
"close of business" means 5:00 p.m. local time in The City of New York.
"Common Stock" means any series of Common Stock, par value $1.00, of the
Company as it exists on the date of this Indenture or any other shares of
capital stock of the Company into which such common stock shall be reclassified
or changed.
"Company" means the party named as the "Company" in the first paragraph of
this Indenture until a successor replaces it pursuant to the applicable
provisions of this Indenture and, thereafter, shall mean such successor. The
foregoing sentence shall likewise apply to any subsequent such successor or
successors.
"Company Request" or "Company Order" means a written request or order
signed in the name of the Company by either of its Chairman or Vice Chairman of
the Board, its President, any Vice President, its Treasurer, or any Assistant
Treasurer, and by its
2
<PAGE>
Secretary or an Assistant Secretary, and delivered to the Trustee.
"Conversion Payment" means the Sale Price of a share of Series A Common
Stock on the Trading Day immediately prior to the related Conversion Date
multiplied by the Conversion Rate in effect on such Trading Day.
"Corporate Trust Office" means the office of the Trustee in the Borough of
Manhattan, The City of New York, at which at any particular time its corporate
trust business shall be administered; which office at the date of initial
execution of this Indenture is 120 Wall Street, New York, New York 10043,
Attention: Corporate Trust Administration, except that with respect to the
presentation of Securities for payment or for registration of transfer or
exchange, such term shall mean the office or agency of the Trustee in said
Borough at which at any particular time its corporate agency business shall be
conducted, which office at the date of execution of initial of this Indenture is
111 Wall Street, 5th Floor, New York, New York 10043, Attention: Corporate
Trust Services.
"Custodian" means any receiver, trustee, assignee, liquidator, custodian or
similar official under any Bankruptcy Law.
"Default" means any event that is, or after notice or passage of time or
both would be, an Event of Default.
"Euroclear" means Morgan Guaranty Trust Company of New York, Brussels
Office, or its successor as operator of the Euroclear System.
"GAAP" means generally accepted accounting principles in the United States
as in effect on the date hereof.
"global Securities" means, individually and collectively, the Regulation S
Temporary Global Security, the Regulation S Permanent Global Security and the
Restricted Global Security.
"Holder" or "Securityholder" means a person in whose name a Security is
registered on the Registrar's books.
"Indenture" means this Indenture as amended or supplemented from time to
time in accordance with the terms hereof.
"Issue Date" of any Security means the date on which the Security was
originally issued or deemed issued as set forth on the face of the Security.
"Issue Price" of any Security means, in connection with the original
issuance of such Security, the initial issue price at which the Security is sold
as set forth on the face of the Security.
3
<PAGE>
"Nasdaq" means the National Association of Securities Dealers Automated
Quotation System.
"Officer" means either the Chairman or Vice Chairman of the Board, the
President, any Vice President, the Treasurer, the Secretary, any Assistant
Treasurer or Assistant Secretary of the Company.
"Officers' Certificate" means a written certificate containing the
information specified in Sections 13.04 and 13.05, (i) signed in the name of the
Company by either its Chairman of the Board, Vice Chairman of the Board,
President, any Vice President, Treasurer, any Assistant Treasurer, Controller,
or any Assistant Controller, and (ii) attested to by its Secretary or any
Assistant Secretary, and delivered to the Trustee.
"Opinion of Counsel" means a written opinion containing the information
specified in Sections 13.04 and 13.05, if applicable, rendered by legal counsel,
who may, in the case of legal counsel to the Company, be (i) an employee of, or
counsel to, the Company or (ii) other counsel designated by the Company and
reasonably acceptable to the Trustee.
"Original Issue Discount" of any Security means the difference between the
Issue Price and the Principal Amount of the Security as set forth on the face of
the Security.
"Permitted Junior Securities" means Securities of the Company or any other
corporation that are equity securities or are subordinated in right of payment
to all Senior Indebtedness that may at the time be outstanding to substantially
the same extent as, or to a greater extent than, the Securities are so
subordinated as provided in Article X.
"Person" or "person" means any individual, corporation, partnership, joint
venture, association, joint-stock company, trust, unincorporated organization or
government or any agency or political subdivision thereof.
"Principal" or "Principal Amount" of a Security means the principal amount
due at the Stated Maturity of the Security as set forth on the face of the
Security.
"Redemption Date" or "redemption date" shall mean the date specified for
redemption of any of the Securities in accordance with the terms of the
Securities and this Indenture.
"Redemption Price" or "redemption price" shall have the meaning set forth
in paragraph 5 of the Securities.
"Regulation S" means Regulation S promulgated under the Securities Act.
4
<PAGE>
"Regulation S Global Security" means a Regulation S Temporary Global
Security or Regulation S Permanent Global Security, as appropriate.
"Regulation S Permanent Global Security" means a permanent global Security
that contains the paragraph referred to in footnote 1 and the additional
schedule referred to in footnote 2 to the form of the Security attached hereto
as Exhibit A-1, and that is deposited with and registered in the name of the
Depositary, representing the Securities sold in reliance on Regulation S.
"Regulation S Temporary Global Security" means a single temporary global
Security in the form of the Security attached hereto as Exhibit A-2 that is
deposited with and registered in the name of the Depositary, representing
Securities sold in reliance on Regulation S.
"Restricted Global Security" means a permanent global Security that
contains the paragraph referred to in footnote 1 and the additional schedule
referred to in footnote 2 to the form of the Security attached hereto as Exhibit
A-1, and that is deposited with and registered in the name of the Depositary.
"Responsible Officer," when used with respect to the Trustee, means the
chairman or any vice-chairman of the board of directors, the chairman or any
vice-chairman of the executive committee of the board of directors, the chairman
of the trust committee, the president, any vice president, any assistant vice
president, the secretary, any assistant secretary, the treasurer, any assistant
treasurer, the cashier, any assistant cashier, any senior trust officer, any
trust officer or assistant trust officer, 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.
"Sale Price" means the closing per share sale price for the Series A Common
Stock on any Trading Day (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 the average ask prices) on such Trading Day as reported in
composite transactions for the principal United States securities exchange on
which the Series A Common Stock is traded or, if the Series A Common Stock is
not listed on a United States national or regional stock exchange, as reported
by the National Association of Securities Dealers Automated Quotation System.
"SEC" means the Securities and Exchange Commission.
5
<PAGE>
"Securities" means any of the Company's Liquid Yield Option/TM/ Notes due
2017 (Zero Coupon -- Subordinated), as amended or supplemented from time to time
in accordance with the terms hereof, issued under this Indenture.
"Securityholder" or "Holder" means a person in whose name a Security is
registered on the Registrar's books.
"Senior Indebtedness" means, without duplication, the principal, premium
(if any) and unpaid interest on all present and future (i) indebtedness of the
Company for borrowed money, (ii) obligations of the Company evidenced by bonds,
debentures, notes or similar instruments, (iii) indebtedness incurred, assumed
or guaranteed by the Company in connection with the acquisition by it or a
Subsidiary of any business, properties or assets (except purchase-money
indebtedness classified as accounts payable under generally accepted accounting
principles), (iv) obligations of the Company as lessee under leases required to
be capitalized on the balance sheet of the lessee under generally accepted
accounting principles, (v) reimbursement obligations of the Company in respect
of letters of credit relating to indebtedness or other obligations of the
Company that qualify as indebtedness or obligations of the kind referred to in
clauses (i) through (iv) above, and (vi) obligations of the Company under direct
or indirect guaranties in respect of, and obligations (contingent or otherwise)
to purchase or otherwise acquire, or otherwise to assure a creditor against loss
in respect of, indebtedness or obligations of others of the kinds referred to in
clauses (i) through (v) above, in each case unless the instrument creating or
evidencing the indebtedness or obligation or pursuant to which the same is
outstanding provides that such indebtedness or obligation is not superior in
right of payment to the Securities.
"Senior Indebtedness Default" means the happening of an event of default
with respect to any Senior Indebtedness, as defined therein or in the instrument
under which the same is outstanding which, if occurring prior to the stated
maturity of such Senior Indebtedness, permits any holder thereof thereupon to
accelerate the maturity thereof.
"Series A Common Stock" means the Series A Common Stock, par value $1.00
per share, of the Company as it exists on the date of this Indenture.
"Stated Maturity", when used with respect to any Security, means the date
specified in such Security as the fixed date on which the Principal of such
Security is due and payable.
"Subsidiary" means (i) a corporation, a majority of whose Capital Stock
with voting power, under ordinary circumstances, to
6
<PAGE>
elect directors is, at the date of determination, directly or indirectly owned
by the Company, by one or more subsidiaries of the Company or by the Company and
one or more subsidiaries of the Company, (ii) a partnership in which the Company
or a subsidiary of the Company holds a majority interest in the equity capital
or profits of such partnership, or (iii) any other person (other than a
corporation) in which the Company, a subsidiary of the Company or the Company
and one or more subsidiaries of the Company, directly or indirectly, at the date
of determination, has (x) at least a majority ownership interest or (y) the
power to elect or direct the election of a majority of the directors or other
governing body of such person.
"Tax Event" means that the Company shall have received an opinion from
independent tax counsel experienced in such matters to the effect that, on or
after the date of this Indenture, as a result of (a) any amendment to, or change
(including any announced prospective change) in, the laws (or any regulations
thereunder) of the United States or any political subdivision or taxing
authority thereof or therein or (b) any amendment to, or change in, an
interpretation or application of such laws or regulations by any legislative
body, court, governmental agency or regulatory authority, in each case which
amendment or change is enacted, promulgated, issued or announced or which
interpretation is issued or announced or which action is taken, on or after the
date of this Indenture, there is more than an insubstantial risk that interest
(including Original Issue Discount) payable on the Securities either (i) would
not be deductible on a current accrual basis or (ii) would not be deductible
under any other method, in either case in whole or in part, by the Company (by
reason of deferral, disallowance, or otherwise) for United States Federal income
tax purposes.
"TIA" means the Trust Indenture Act of 1939, as amended by the Trust
Indenture Reform Act of 1990, and as in effect on the date of this Indenture,
except as provided in Section 9.03.
"Trading Day" means each day on which the securities exchange or quotation
system which is used to determine the Sale Price is open for trading or
quotation.
"Trustee" means the party named as the "Trustee" in the first paragraph of
this Indenture until a successor replaces it pursuant to the applicable
provisions of this Indenture and, thereafter, shall mean such successor.
7
<PAGE>
SECTION 1.02. OTHER DEFINITIONS.
-----------------
<TABLE>
<CAPTION>
Defined in
Term Section
---- ----------
<S> <C>
"Agent Members" ...................................... 2.01(a)
"Associate" .......................................... 3.09(a)
"Average Sale Price" ................................. 11.01
"beneficial owner" ................................... 3.09(a)
"Change in Control" .................................. 3.09(a)
"Change in Control Purchase Date" .................... 3.09(a)
"Change in Control Purchase Notice"................... 3.09(c)
"Change in Control Purchase Price" ................... 3.09(a)
"Company Notice" ..................................... 3.08(e)
"Company Notice Date" ................................ 3.08(e)
"Conversion Agent" ................................... 2.03
"Conversion Date" .................................... 11.02
"Conversion Rate" .................................... 11.01
"Custodian" .......................................... 6.01
"Defaulted Interest" ................................. 12.02(b)
"Depositary" ......................................... 2.01(a)
"Event of Default" ................................... 6.01
"Exchange Act" ....................................... 3.08(d)
"Ex-Dividend Time" ................................... 11.01
"Extraordinary Cash Dividend" ........................ 11.08
"Interest Payment Date" .............................. 12.01
"Legal Holiday" ...................................... 13.08
"Market Price" ....................................... 3.08(d)
"Notice of Default" .................................. 6.01
"Option".............................................. 2.02
"Paying Agent"........................................ 2.03
"Principal Property".................................. 6.01
"Purchase Date" ...................................... 3.08(a)
"Purchase Notice" .................................... 3.08(a)
"Purchase Price" ..................................... 3.08(a)
"Registrar" .......................................... 2.03
"Regular Record Date" ................................ 12.01
"Restated Principal Amount"............................12.01
"Securities Act" ..................................... 3.08(d)
"Tax Event Date" ..................................... 12.01
"Time of Determination" .............................. 11.01
"Transfer Restricted Security"........................ 2.11(f)
</TABLE>
SECTION 1.03. INCORPORATION BY REFERENCE OF TRUST INDENTURE ACT. Whenever
-------------------------------------------------
this Indenture refers to a provision of the TIA, such provision is incorporated
by reference in and made a part of this Indenture. The following TIA terms used
in this Indenture have the following meanings:
"COMMISSION" means the SEC.
"INDENTURE SECURITIES" means the Securities.
8
<PAGE>
"INDENTURE SECURITY HOLDER" means a Securityholder.
"INDENTURE TO BE QUALIFIED" means this Indenture.
"INDENTURE TRUSTEE" or "INSTITUTIONAL TRUSTEE" means the Trustee.
------------------
"OBLIGOR" on the indenture securities means the Company.
All other TIA terms used in this Indenture that are defined by the TIA or
defined by TIA reference to another statute or regulation have the meanings
assigned to them by such definitions.
SECTION 1.04. RULES OF CONSTRUCTION. Unless the context otherwise
---------------------
requires:
(1) a term has the meaning assigned to it;
(2) an accounting term not otherwise defined has the meaning assigned
to it in accordance with generally accepted accounting principles as in
effect from time to time in The United States of America;
(3) "or" is not exclusive;
(4) "including" means including, without limitation; and
(5) words in the singular include the plural, and words in the plural
include the singular.
ARTICLE II.
THE SECURITIES
SECTION 2.01. FORM AND DATING. The Securities and the Trustee's
---------------
certificate of authentication shall be substantially in the form of Exhibit A-1,
which is a part of this Indenture. The Securities may have notations, legends or
endorsements required by law, stock exchange rule or usage (provided that any
such notation, legend or endorsement required by usage is in a form acceptable
to the Company and the Trustee). Each Security shall be dated the date of its
authentication.
The Securities are being offered and sold by the Company pursuant to a
Purchase Agreement, dated April 9, 1997, between the Company and Merrill Lynch &
Co., Merrill Lynch, Pierce, Fenner & Smith Incorporated (the "Purchase
Agreement").
9
<PAGE>
(a) Restricted Global Securities. Securities offered and sold within
----------------------------
the United States to qualified institutional investors as defined in Rule 144A
("QIBs") in reliance on Rule 144A under the Securities Act shall be issued,
initially in the form of a Restricted Global Security, which shall be deposited
on behalf of the purchasers of the Securities represented thereby with The
Depository Trust Company ("DTC") or the nominee thereof (such depositary, or any
successor thereto, and any such nominee being hereinafter referred to as the
"Depositary"), duly executed by the Company and authenticated by the Trustee as
hereinafter provided. The aggregate principal amount of the Restricted Global
Securities may from time to time be increased or decreased by adjustments made
on the records of the Trustee and the Depositary as hereinafter provided.
(b) Regulation S Global Securities. Securities offered and sold in
------------------------------
reliance on Regulation S shall be issued initially in the form of the Regulation
S Temporary Global Security, which shall be deposited on behalf of the
purchasers of the Securities represented thereby with the Trustee, at its
Corporate Trust Office, as custodian for the Depositary, and registered in the
name of the Depositary, duly executed by the Company and authenticated by the
Trustee as hereinafter provided. The "40-day restricted period" (as defined in
Regulation S) shall be terminated upon the receipt by the Trustee of (i) a
written certificate from the Depositary certifying that it has received
certification of non-United States beneficial ownership of 100% of the aggregate
principal amount of the Regulation S Temporary Global Security (except to the
extent of any beneficial owners thereof who acquired an interest therein
pursuant to another exemption from registration under the Securities Act and who
will take delivery of a beneficial ownership interest in a Restricted Global
Security, all as contemplated by Section 2.11(a)(ii) hereof), and (ii) an
Officers' Certificate from the Company. Following the termination of the 40-day
restricted period, beneficial interests in the Regulation S Temporary Global
Security shall be exchanged for beneficial interests in Regulation S Permanent
Global Securities pursuant to the Applicable Procedures. Simultaneously with the
authentication of Regulation S Permanent Global Securities, the Trustee shall
cancel the Regulation S Temporary Global Security. The aggregate principal
amount of the Regulation S Temporary Global Security and the Regulation S
Permanent Global Securities may from time to time be increased or decreased by
adjustments made on the records of the Trustee and the Depositary, as the case
may be, in connection with transfers of interest as hereinafter provided.
(c) Global Securities in General. Each global Security shall
----------------------------
represent such of the outstanding Securities as shall be specified therein and
each shall provide that it shall represent the aggregate amount of outstanding
Securities from
<PAGE>
time to time endorsed thereon and that the aggregate amount of outstanding
Securities represented thereby may from time to time be reduced or increased, as
appropriate, to reflect exchanges and redemptions. Any endorsement of a global
Security to reflect the amount of any increase or decrease in the amount of
outstanding Securities represented thereby shall be made by the Trustee in
accordance with instructions given by the Holder thereof as required by Section
2.11 hereof.
(d) Book-Entry Provisions. This Section 2.01(d), shall apply only to
---------------------
Restricted Global Securities and the Regulation S Permanent Global Securities
deposited with or on behalf of the Depositary.
The Company shall execute and the Trustee shall, in accordance with
this Section 2.01(d), authenticate and deliver initially one or more global
Securities that (a) shall be registered in the name of the Depositary, (b) shall
be delivered by the Trustee to the Depositary or pursuant to the Depositary's
instructions and (c) shall bear legends substantially to the following effect:
"UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE
OF THE DEPOSITORY TRUST COMPANY TO THE COMPANY OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR TO SUCH OTHER ENTITY
AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY (AND ANY PAYMENT HEREON IS MADE TO CEDE & CO.), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO.,
HAS AN INTEREST HEREIN.
TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS, IN
WHOLE BUT NOT IN PART, TO NOMINEES OF THE DEPOSITORY TRUST COMPANY OR
TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR'S NOMINEE AND TRANSFERS OF
PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN
ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN ARTICLE TWO OF THE
INDENTURE REFERRED TO ON THE REVERSE HEREOF."
Members of, or participants in, the Depositary ("Agent Members") shall
have no rights under this Indenture with respect to any global Security held on
their behalf by the Depositary or under the global Security, and the Depositary
may be treated by the Company, the Trustee and any agent of the Company or the
Trustee as the absolute owner of such global Security for all purposes
whatsoever. Notwithstanding the foregoing, nothing
11
<PAGE>
herein shall (A) prevent the Company, the Trustee or any agent of the Company or
the Trustee from giving effect to any written certification, proxy or other
authorization furnished by the Depositary or (B) impair, as between the
Depositary and its Agent Members, the operation of customary practices governing
the exercise of the rights of a holder of any Security.
(e) Certificated Securities. Securities issued to accredited
-----------------------
investors as defined in Rule 501(a)(1), (2), (3), (4) or (7) under the
Securities Act ("Accredited Investors") who are not QIBs and other Securities
not issued as interests in the global Securities will be issued in certificated
form substantially in the form of Exhibit A-1 attached hereto (but without
including the text referred to in the footnotes 1 and 2 thereto).
SECTION 2.02. EXECUTION AND AUTHENTICATION. The Securities shall be
----------------------------
executed by the Company by either of its Chairman or Vice Chairman of the Board,
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 and the corporate seal 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 Issue Date of such Securities.
No Security shall be entitled to any benefit under this Indenture or be
valid or obligatory for any purpose unless there appears on such Security a
certificate of authentication substantially in the form provided for herein duly
executed by the Trustee by manual signature of an authorized signatory, and such
certificate upon any Security shall be conclusive evidence, and the only
evidence, that such Security has been duly authenticated and delivered
hereunder.
The Trustee shall authenticate and deliver Securities for original issue in
an aggregate Principal Amount of up to $435,000,000 upon a Company Order without
any further action by the Company; provided, however, that in the event that the
-------- -------
Company sells any Securities pursuant to the option (the "Option") granted
pursuant to Section 2 of the Purchase Agreement, dated April 9, 1997, between
the Company and Merrill Lynch & Co., Merrill Lynch, Pierce, Fenner & Smith
Incorporated, then the Trustee shall authenticate and deliver Securities for
original issue in an aggregate Principal Amount of up to $435,000,000 plus up to
$65,000,000 aggregate Principal Amount of
12
<PAGE>
Securities sold pursuant to the Option upon a Company Order. The aggregate
Principal Amount of Securities outstanding at any time may not exceed the amount
set forth in the foregoing sentence, subject to the proviso set forth therein,
except as provided in Section 2.07.
SECTION 2.03. REGISTRAR, PAYING AGENT AND CONVERSION AGENT. The Company
--------------------------------------------
shall maintain an office or agency where Securities may be presented for
registration of transfer or for exchange ("Registrar"), an office or agency
where Securities may be presented for purchase or payment ("Paying Agent") and
an office or agency where Securities may be presented for conversion
("Conversion Agent"). The Registrar shall keep a register of the Securities and
of their transfer and exchange. The Company may have one or more co-registrars,
one or more additional paying agents and one or more additional conversion
agents. The term Paying Agent includes any additional paying agent. The term
Conversion Agent includes any additional conversion agent.
The Company shall enter into an appropriate agency agreement with any
Registrar, Paying Agent, Conversion Agent or co-registrar if other than the
Trustee. The agreement shall implement the provisions of this Indenture that
relate to such agent. The Company shall notify the Trustee and the Holders of
the name and address of any such agent and of any change in the office or agency
referred to in Section 4.05. If the Company fails to maintain a Registrar,
Paying Agent or Conversion Agent, the Trustee shall act as such and shall be
entitled to appropriate compensation therefor pursuant to Section 7.07. The
Company or any Subsidiary or an Affiliate of either of them may act as Paying
Agent, Registrar, Conversion Agent or co-registrar.
The Company initially appoints the Trustee as Registrar, Conversion Agent
and Paying Agent in connection with the Securities.
SECTION 2.04. PAYING AGENT TO HOLD MONEY AND SECURITIES IN TRUST. In
-------------------------------------------- -----
accordance with Section 4.05 and except as otherwise provided herein, prior to
or on each due date of payments in respect of any Security, the Company shall
deposit with the Paying Agent a sum of money or, if permitted by the terms
hereof, securities sufficient to make such payments when so becoming due. The
Company shall require each Paying Agent (other than the Trustee) to agree in
writing that the Paying Agent shall hold in trust for the benefit of
Securityholders or the Trustee all money and securities held by the Paying Agent
for the making of payments in respect of the Securities and shall notify the
Trustee of any default by the Company in making any such payment. At any time
during the continuance of any default by the Company in making any payments in
respect of the Securities, the Paying Agent shall, upon the written request of
the Trustee, forthwith
13
<PAGE>
pay to the Trustee all money and securities so held in trust. If the Company, a
Subsidiary or an Affiliate of either of them acts as Paying Agent, it shall
segregate the money and securities held by it as Paying Agent and hold it as a
separate trust fund. The Company at any time may require a Paying Agent to pay
all money and securities held by it to the Trustee and to account for any money
and securities disbursed by it. Upon doing so, the Paying Agent shall have no
further liability for the money and securities.
SECTION 2.05. SECURITYHOLDER LISTS. The Trustee shall preserve in as
--------------------
current a form as is reasonably practicable the most recent list available to it
of the names and addresses of Securityholders. If the Trustee is not the
Registrar, the Company shall furnish or cause to be furnished to the Trustee (i)
at least semiannually on April 15 and October 15 a list of the names and
addresses of Securityholders dated within 15 days of the date on which the list
is furnished and (ii) at such other times as the Trustee may request in writing
a list, in such form and as of such date as the Trustee may reasonably require,
of the names and addresses of Securityholders.
SECTION 2.06. TRANSFER AND EXCHANGE. (a) Upon surrender for registration
---------------------
of transfer of any Security, together with a written instrument of transfer
satisfactory to the Trustee duly executed by the Securityholder or such
Securityholder's attorney duly authorized in writing, at the office or agency of
the Company designated as Registrar or co-registrar pursuant to Section 2.03 or
at the office or agency referred to in Section 4.05, 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 any authorized
denomination or denominations, of a like aggregate Principal Amount. The
Company shall not charge a service charge for any registration of transfer or
exchange, but the Company may require payment of a sum sufficient to pay all
taxes, assessments or other governmental charges that may be imposed in
connection with the transfer or exchange of the Securities from the
Securityholder requesting such transfer or exchange (other than any exchange of
a temporary Security for a definitive Security not involving any change in
ownership).
At the option of the Holder, Securities may be exchanged for other
Securities of any authorized denomination or denominations, of a like aggregate
Principal Amount, upon surrender of the Securities to be exchanged, together
with a written instrument of transfer satisfactory to the Registrar duly
executed by the Securityholder or such Securityholder's attorney duly authorized
in writing, at such office or agency. Whenever any Securities are so
surrendered for exchange, the Company shall execute, and
14
<PAGE>
the Trustee shall authenticate and deliver, the Securities which the Holder
making the exchange is entitled to receive.
The Company shall not be required to make, and the Registrar need not
register, transfers or exchanges of (a) Securities selected for redemption
(except, in the case of Securities to be redeemed in part, the portion thereof
not to be redeemed), (b) any Securities in respect of which a Purchase Notice or
a Change in Control Purchase Notice has been given and not withdrawn by the
Holder thereof in accordance with the terms of this Indenture (except, in the
case of Securities to be purchased in part, the portion thereof not to be
purchased) or (c) any Securities for a period of 15 days before a selection of
Securities to be redeemed.
(b) Notwithstanding any provision to the contrary herein, so long as a
global Security remains outstanding and is held by or on behalf of the
Depositary, transfers of a global Security, in whole or in part, shall be made
only in accordance with Section 2.11 and this Section 2.06(b). Transfers of a
global Security shall be limited to transfers of such global Security in whole,
or in part, to nominees of the Depositary or to a successor of the Depositary or
such successor's nominee.
(c) Successive registrations and registrations of transfers and
exchanges as aforesaid may be made from time to time as desired, and each such
registration shall be noted on the register for the Securities.
(d) Any Registrar appointed pursuant to Section 2.03 hereof shall
provide to the Trustee such information as the Trustee may reasonably require in
connection with the delivery by such Registrar of Securities upon transfer or
exchange of Securities.
(e) No Registrar shall be required to make registrations of transfer
or exchange of Securities during any periods designated in the text of the
Securities or in this Indenture as periods during which such registration of
transfers and exchanges need not be made.
(f) If Securities are issued upon the transfer, exchange or
replacement of Securities subject to restrictions on transfer and bearing the
legends set forth on the form of Security attached hereto as Exhibit A-1 setting
forth such restrictions (collectively, the "Legend"), or if a request is made to
remove the Legend on a Security, the Securities so issued shall bear the Legend,
or the Legend shall not be removed, as the case may be, unless (i) there is
delivered to the Company and the Registrar such satisfactory evidence, which
shall include an Opinion of Counsel, as may be reasonably required by the
Company
15
<PAGE>
and the Registrar, that neither the Legend nor the restrictions on transfer set
forth therein are required to ensure that transfers thereof comply with the
provisions of Rule 144A, Rule 144 or Regulation S under the Securities Act or
that such Securities are not "restricted" within the meaning of Rule 144 under
the Securities Act. Upon (i) provision of such satisfactory evidence, or (ii)
notification by the Company to the Trustee and Registrar of effectiveness of a
registration statement with respect to the Securities, the Trustee, at the
written direction of the Company, shall authenticate and deliver a Security that
does not bear the Legend. If a Legend is removed from the face of a Security and
the Security is subsequently held by an Affiliate of the Company, the Legend
shall be reinstated.
SECTION 2.07. REPLACEMENT SECURITIES. If (a) any mutilated Security is
----------------------
surrendered to the Company or the Trustee, or (b) the Company and the Trustee
receive evidence to their satisfaction of the destruction, loss or theft of any
Security, and there is delivered to the Company and the Trustee such security or
indemnity as may be required by them to save each of them harmless, then, in the
absence of notice to the Company or the Trustee that such Security has been
acquired by a bona fide purchaser, the Company shall execute, and upon its
---- ----
written request the Trustee shall authenticate and deliver, in exchange for any
such mutilated Security or in lieu of any such destroyed, lost or stolen
Security, a new Security of like tenor and Principal Amount, bearing a number
not contemporaneously outstanding.
In case any such mutilated, destroyed, lost or stolen Security has become
or is about to become due and payable, or is about to be purchased by the
Company pursuant to Article III hereof, the Company in its discretion may,
instead of issuing a new Security, pay or purchase such Security, as the case
may be.
Upon the issuance of any new Securities under this Section, the Company may
require the payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in relation thereto and any other expenses (including
the fees and expenses of the Trustee) in connection therewith.
Every new Security issued pursuant to this Section in lieu of any
mutilated, destroyed, lost or stolen Security shall constitute an original
additional contractual obligation of the Company, whether or not the destroyed,
lost or stolen Security shall be at any time enforceable by anyone, and shall be
entitled to all benefits of this Indenture equally and proportionately with any
and all other Securities duly issued hereunder.
The provisions of this Section are exclusive and shall preclude (to the
extent lawful) all other rights and remedies
16
<PAGE>
with respect to the replacement or payment of mutilated, destroyed, lost or
stolen Securities.
SECTION 2.08. OUTSTANDING SECURITIES; DETERMINATIONS OF HOLDERS' ACTION.
---------------------------------------------------------
Securities outstanding at any time are all the Securities authenticated by the
Trustee except for those cancelled by it, those delivered to it for
cancellation, mutilated, destroyed, lost or stolen Securities for which the
Trustee has authenticated and delivered a new Security in lieu therefor pursuant
to Section 2.07, those paid pursuant to Section 2.07 and those described in this
Section 2.08 as not outstanding. A Security does not cease to be outstanding
because the Company or an Affiliate thereof holds the Security; provided,
--------
however, that in determining whether the Holders of the requisite Principal
- -------
Amount of Securities have given or concurred in any request, demand,
authorization, direction, notice, consent or waiver hereunder, Securities owned
by the Company or any other obligor upon the Securities or any Affiliate of the
Company or 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 which a Responsible Officer of the Trustee
actually knows to be so owned shall be so disregarded. Subject to the foregoing,
only Securities outstanding at the time of such determination shall be
considered in any such determination (including, without limitation,
determinations pursuant to Articles VI and IX).
If a Security is replaced pursuant to Section 2.07, it ceases to be
outstanding unless the Trustee receives proof satisfactory to it that the
replaced Security is held by a bona fide purchaser.
If the Paying Agent holds, in accordance with this Indenture, on a
Redemption Date, or on the Business Day following a Purchase Date or a Change in
Control Purchase Date, or on Stated Maturity, money or, if permitted by the
terms hereof including, without limitation, Section 3.08, securities sufficient
to pay the Securities payable on that date, then on and after that date such
Securities shall cease to be outstanding and Original Issue Discount and
interest, if any, on such Securities shall cease to accrue and all other rights
of the Holder shall terminate (other than the right to receive the applicable
Redemption Price, Purchase Price or Change in Control Purchase Price, as the
case may be, upon delivery of the Security in accordance with the terms of this
Indenture); provided, that if such Securities are to be redeemed, notice of such
--------
redemption has been duly given pursuant to this Indenture or provision therefor
satisfactory to the Trustee has been made.
17
<PAGE>
If a Security is converted in accordance with Article XI, then from and
after the Conversion Date such Security shall cease to be outstanding and
Original Issue Discount and interest, if any, shall cease to accrue on such
Security.
SECTION 2.09. TEMPORARY SECURITIES. Pending the preparation of definitive
--------------------
Securities, 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
conclusively evidenced by their execution of such Securities.
If temporary Securities are issued, the Company will cause definitive
Securities to be prepared without unreasonable delay. After the preparation of
definitive Securities, the temporary Securities shall be exchangeable for
definitive Securities upon surrender of the temporary Securities at the office
or agency of the Company designated for such purpose pursuant to Section 2.03 or
4.05, without charge to the Holder. Upon surrender for cancellation of any one
or more temporary Securities the Company shall execute and the Trustee shall
authenticate and deliver in exchange therefor a like Principal Amount of
definitive Securities of authorized denominations. Until so exchanged the
temporary Securities shall in all respects be entitled to the same benefits
under this Indenture as definitive Securities.
SECTION 2.10. CANCELLATION. All Securities surrendered for payment,
------------
redemption or purchase by the Company pursuant to Article III, conversion
pursuant to Article XI, registration of transfer or exchange shall, if
surrendered to any person other than the Trustee, be delivered to the Trustee
and shall be promptly cancelled by it. The Company may at any time deliver to
the Trustee for cancellation any Securities previously authenticated and
delivered hereunder which the Company may have acquired in any manner
whatsoever, and all Securities so delivered shall be promptly cancelled by the
Trustee. The Company may not issue new Securities to replace Securities it has
paid or delivered to the Trustee for cancellation or that any Holder has
converted pursuant to Article XI. No Securities shall be authenticated in lieu
of or in exchange for any Securities cancelled as provided in this Section,
except as expressly permitted by this Indenture. All cancelled Securities held
by the Trustee shall be disposed of by the Trustee in accordance with its
standard procedures, and evidence of such disposition shall be delivered to the
Company unless the Company directs by
18
<PAGE>
prior Company Order that the Trustee deliver cancelled Securities to the
Company.
SECTION 2.11 GLOBAL SECURITIES; TEMPORARY SECURITIES.
---------------------------------------
(a) Transfer and Exchange of Global Securities. A global Security
------------------------------------------
deposited with the Depositary pursuant to Section 2.01 shall be transferred to
the beneficial owners thereof only if such transfer complies with Section
2.06(b) or 2.06(f) of this Indenture and (i) the Depositary notifies the Company
that it is unwilling or unable to continue as depositary for such global
Security or if at any time ceases to be a "clearing agency" registered under
the Exchange Act and a successor depositary is not appointed by the Company
within 90 days of such notice, or (ii) an Event of Default has occurred and is
continuing with respect to the Securities. In either case, the Company will
promptly make available to the Trustee a reasonable supply of Certificated
Securities in definitive, fully registered form without interest coupons in
accordance with the provisions of Section 2.09.
Any global Security that is transferable to the beneficial owners
thereof pursuant to this Section 2.11 shall be surrendered by the Depositary to
the Trustee located in the Borough of Manhattan, The City of New York, to be so
transferred, in whole or from time to time in part, without charge, and the
Trustee shall authenticate and deliver, upon such transfer of each portion of
such global Security, an equal aggregate Principal Amount at Stated Maturity of
Securities of authorized denominations. Any portion of a global Security
transferred pursuant to Section 2.11 shall be executed, authenticated and
delivered only in the denominations specified in the form of Security attached
as Exhibit A-1 hereto and registered in such names as the Depositary shall
direct. Any Security delivered in exchange for an interest in the Restricted
Global Security shall bear the legend regarding transfer restrictions applicable
to the Restricted Global Security set forth on the form of Security attached as
Exhibit A-1 hereto.
Subject to the provisions of this Section 2.11(a), the Holder may
grant proxies and otherwise authorize any Person, including Agent Members and
Persons that may hold interests through Agent Members, to take any action which
a Holder is entitled to take under this Indenture or the Securities.
(i) Restricted Global Security to Regulation S Global Security.
----------------------------------------------------------
If, at any time, an owner of a beneficial interest in a Restricted Global
Security deposited with the Depositary wishes to transfer its interest in
such Restricted Global Security to a person who is required or permitted to
take delivery thereof in the form of a
19
<PAGE>
beneficial interest in a Regulation S Global Security, such owner shall,
subject to the Applicable Procedures, exchange or cause the exchange of
such interest for an equivalent beneficial interest in a Regulation S
Global Security as provided in this Section 2.11(a)(i). Upon receipt by
the Trustee, as Registrar, at the Corporate Trust Office of (1)
instructions given in accordance with the Applicable Procedures from an
Agent Member directing the Trustee to credit or cause to be credited a
beneficial interest in the Regulation S Global Security in an amount equal
to the beneficial interest in the Restricted Global Security to be
exchanged, (2) a written order given in accordance with the Applicable
Procedures containing information regarding the participant account of the
Depositary to be credited with such increase and the participant account of
the Depositary to be debited for, such beneficial interest, (3) a
certificate in the form of Exhibit B-1 hereto given by the Holder of such
beneficial interest stating that the transfer of such interest has been
made in compliance with the transfer restrictions applicable to the global
Securities and pursuant to and in accordance with Rule 903 or Rule 904 of
Regulation S, then the Trustee, as Registrar, shall instruct the Depositary
to reduce or cause to be reduced the aggregate principal amount at maturity
of the applicable Restricted Global Security and to increase or cause to be
increased the aggregate principal amount at maturity of the applicable
Regulation S Global Security by the principal amount at maturity of the
beneficial interest in the Restricted Global Security to be exchanged, to
credit or cause to be credited to the account of the person specified in
such instructions (which shall be the agent member for Euroclear or Cedel
or both, as the case may be) a beneficial interest in the Regulation S
Global Security equal to the reduction in the aggregate principal amount at
maturity of the Restricted Global Security, and to debit, or cause to be
debited, from the account of the person making such exchange or transfer
the beneficial interest in the Restricted Global Security that is being
exchanged or transferred.
(ii) Regulation S Global Security to Restricted Global Security.
----------------------------------------------------------
If, at any time, an owner of a beneficial interest in a Regulation S Global
Security deposited with the Depositary wishes to transfer its interest in
such Regulation S Global Security to a person who is required or permitted
to take delivery thereof in the form of an interest in a Restricted Global
Security, such owner shall, subject to the Applicable Procedures and only
in accordance with this Section 2.11(a)(ii), exchange or cause the exchange
of such interest for an equivalent beneficial interest in a Restricted
Global Security. Upon receipt by the Trustee, as Registrar, at the
Corporate Trust Office of
20
<PAGE>
(1) written instructions from the Depositary, directing the Trustee, as
Registrar, to credit or cause to be credited a beneficial interest in the
Restricted Global Security equal to the beneficial interest in the
Regulation S Global Security to be exchanged, such instructions to contain
information regarding the participant account with the Depositary to be
credited with such increase, (2) a written order given in accordance with
the Applicable Procedures containing information regarding the participant
account of the Depositary to be credited with, and the account of the
Depositary (or, if such account is held for Euroclear or Cedel, the
Euroclear or Cedel account, as the case may be) to be debited with, such
beneficial interest and (3) a certificate in the form of Exhibit B-2
attached hereto given by the owner of such beneficial interest stating (A)
if the transfer is pursuant to Rule 144A, that the person transferring such
interest in a Regulation S Global Security reasonably believes that the
person acquiring such interest in a Restricted Global Security is a QIB and
is obtaining such beneficial interest in a transaction meeting the
requirements of Rule 144A and any applicable blue sky or securities laws of
any state of the United States, (B) that the transfer complies with the
requirements of Rule 144 under the Securities Act and any applicable blue
sky or securities laws of any state of the United States or (C) if the
transfer is pursuant to any other exemption from the registration
requirements of the Securities Act, that the transfer of such interest has
been made in compliance with the transfer restrictions applicable to the
global Securities and pursuant to and in accordance with the requirements
of the exemption claimed, such statement to be supported by an Opinion of
Counsel from the transferee or the transferor in form reasonably acceptable
to the Company and to the Registrar, then the Trustee, as Registrar, shall
instruct the Depositary to reduce or cause to be reduced the aggregate
principal amount at maturity of such Regulation S Global Security and to
increase or cause to be increased the aggregate principal amount at
maturity of the applicable Restricted Global Security by the principal
amount at maturity of the beneficial interest in the Regulation S Global
Security to be exchanged, and the Trustee, as Registrar, shall instruct the
Depositary, concurrently with such reduction, to credit or cause to be
credited to the account of the person specified in such instructions a
beneficial interest in the applicable Restricted Global Security equal to
the reduction in the aggregate principal amount at maturity of such
Regulation S Global Security and to debit or cause to be debited from the
account of the person making such transfer the beneficial interest in the
Regulation S Global Security that is being transferred.
21
<PAGE>
(b) Transfer and Exchange of Certificated Securities. When
------------------------------------------------
Certificated Notes are presented by a Holder to the Registrar with a request:
(x) to register the transfer of the Certificated Securities; or
(y) to exchange such Certificated Securities for an equal
principal amount of Certificated Securities of other authorized
denominations,
the Registrar shall register the transfer or make the exchange as requested;
provided, however, that the Certificated Securities presented or surrendered for
- -------- -------
register of transfer or exchange:
(i) shall be duly endorsed or accompanied by a written
instruction of transfer in form satisfactory to the Registrar duly executed
by such Holder or by such Holder's attorney, duly authorized in writing;
and
(ii) in the case of a Certificated Security that is a Transfer
Restricted Security, such request shall be accompanied by the following
additional information and documents, as applicable:
(A) if such Transfer Restricted Security is being delivered
to the Registrar by a Holder for registration in the name of such
Holder, without transfer, or such Transfer Restricted Security is
being transferred to the Company, a certification to that effect from
such Holder (in substantially the form of Exhibit B-3 hereto);
(B) if such Transfer Restricted Security is being
transferred to a QIB in accordance with Rule 144A under the Securities
Act or pursuant to an exemption from registration in accordance with
Rule 144 under the Securities Act or pursuant to an effective
registration statement under the Securities Act, a certification to
that effect from such Holder (in substantially the form of Exhibit B-3
hereto); or
(C) if such Transfer Restricted Security is being
transferred in reliance on any other exemption from the registration
requirements of the Securities Act (including Rule 904 thereunder), a
certification to that effect from such Holder (in substantially the
form of Exhibit B-3 hereto) and an Opinion of Counsel from such Holder
or the transferee reasonably acceptable to the Company and to the
Registrar to the effect that such transfer is in compliance with the
Securities Act.
22
<PAGE>
(c) Transfer of a Beneficial Interest in a Restricted Global Security
-----------------------------------------------------------------
or Regulation S Permanent Global Security for a Certificated Security.
- ---------------------------------------------------------------------
(i) Any person having a beneficial interest in a Restricted
Global Security or Regulation S Permanent Global Security may upon request,
subject to the Applicable Procedures, exchange such beneficial interest for
a Certificated Security. Upon receipt by the Trustee of written
instructions or such other form of instructions as is customary for the
Depositary, from the Depositary on behalf of any person having a beneficial
interest in a Restricted Global Security or Regulation S Permanent Global
Security, the following additional information and documents (all of which
may be submitted by facsimile):
(A) if such beneficial interest is being transferred to the
person designated by the Depositary as being the beneficial owner, a
certification to that effect from such person (in substantially the
form of Exhibit B-4 hereto);
(B) if such beneficial interest is being transferred to a
QIB in accordance with Rule 144A under the Securities Act or pursuant
to an exemption from registration in accordance with Rule 144 under
the Securities Act or pursuant to an effective registration statement
under the Securities Act, a certification to that effect from the
transferor (in substantially the form of Exhibit B-4 hereto); or
(C) if such beneficial interest is being transferred in
reliance on any other exemption from the registration requirements of
the Securities Act (including Rule 904 thereunder), a certification to
that effect from the transferor (in substantially the form of Exhibit
B-4 hereto) and an Opinion of Counsel from the transferee or the
transferor reasonably acceptable to the Company and to the Trustee, as
Registrar, to the effect that such transfer is in compliance with the
Securities Act,
in which case the Trustee shall cause the aggregate principal amount of
Restricted Global Securities or Regulation S Permanent Global Securities,
as applicable, to be reduced accordingly and, following such reduction, the
Company shall execute and the Trustee shall authenticate and deliver to the
transferee a Certificated Note in the appropriate principal amount.
23
<PAGE>
(ii) Certificated Securities issued in exchange for a beneficial
interest in a Restricted Global Security or Regulation S Permanent Global
Security, as applicable, pursuant to this Section 2.11(c) shall be
registered in such names and in such authorized denominations as the
Depositary, pursuant to instructions from its direct or indirect
participants or otherwise, shall instruct the Trustee. The Trustee shall
deliver such Certificated Securities to the persons in whose names such
Securities are so registered. Following any such issuance of Certificated
Securities, the Trustee, as Registrar, shall instruct the Depositary to
reduce or cause to be reduced the aggregate principal amount at maturity of
the applicable global Security to reflect the transfer.
(d) Transfer and Exchange of a Certificated Security for a Beneficial
-----------------------------------------------------------------
Interest in a Global Security. Holders of Certificated Securities may offer,
- -----------------------------
resell, pledge or otherwise transfer such Securities only pursuant to an
effective registration statement under the Securities Act, inside the United
States to a QIB in a transaction meeting the requirements of Rule 144A, in a
transaction meeting the requirements of Rule 144 under the Securities Act,
outside the United States in a transaction meeting the requirements of Rule 904
under the Securities Act or to the Company, in each case in compliance with any
applicable securities laws of any state of the United States or any other
applicable jurisdiction.
When Certificated Securities are presented by a Holder to the
Registrar with a request (x) to register the transfer of the Certificated
Securities or (y) to exchange such Certificated Securities for an equal
principal amount of Certificated Securities of other authorized denominations,
the Registrar shall register the transfer or make the exchange as requested if
its requirements for such transactions are met; provided, however, that the
-------- -------
Certificated Securities presented or surrendered for register of transfer or
exchange:
(i) shall be duly endorsed or accompanied by a written
instruction of transfer in form satisfactory to the Registrar duly executed
by such Holder or by his or her attorney, duly authorized in writing, which
instructions, if applicable, shall direct the Trustee (A) to cancel any
Certificated Security being exchanged for another Certificated Security or
a beneficial interest in a global Security in accordance with Section 2.10
hereof, and (B) to make, or to direct the Registrar to make, an endorsement
on the appropriate global Security to reflect an increase in the aggregate
principal amount of the Securities represented by such global Security; and
24
<PAGE>
(ii) such request shall be accompanied by the following
additional information and documents, as applicable:
(A) if such Certificated Security is being delivered to the
Registrar by a Holder for registration in the name of such Holder,
without transfer, a certification to that effect from such Holder (in
substantially the form of Exhibit B-5 hereto); or
(B) if such Certificated Security is being transferred to a
QIB in accordance with Rule 144A, pursuant to Rule 144 under the
Securities Act or pursuant to an exemption from registration in
accordance with Rule 904 under the Securities Act or pursuant to an
effective registration statement under the Securities Act, a
certification to that effect from such Holder (in substantially the
form of Exhibit B-5 hereto).
(e) Authentication of Certificated Securities in Absence of
-------------------------------------------------------
Depositary. If at any time:
(i) the Depositary notifies the Company that the Depositary is
unwilling or unable to continue as the depositary for the global Securities
and a successor Depositary for the Global Securities is not appointed by
the Company within 90 days after delivery of such notice; or
(ii) the Company delivers to the Trustee an Officers' Certificate
or an order signed by two Officers of the Company notifying the Trustee
that it elects to cause the issuance of Certificated Securities under this
Indenture,
then the Company shall execute, and the Trustee shall, upon receipt of a Company
Order in accordance with Section 2.02 hereof, authenticate and deliver,
Certificated Securities in an aggregate principal amount equal to the principal
amount of the global Securities in exchange for such global Securities.
(f) Legends.
-------
(i) Except as permitted by the following paragraphs (ii), (iii)
and (iv), each global Security and Certificated Security (and all
Securities issued in exchange therefor or substitution thereof) shall bear
a legend in substantially the following form (each a "Transfer Restricted
Security"):
25
<PAGE>
THIS SECURITY AND THE SHARES OF SERIES A COMMON STOCK ISSUABLE UPON
CONVERSION OF THIS SECURITY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR ANY STATE SECURITIES
LAWS. NEITHER THIS SECURITY, THE SHARES OF SERIES A COMMON STOCK ISSUABLE
UPON CONVERSION OF THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN
OR THEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED,
ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR
UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, REGISTRATION.
UNLESS THE SHARES OF SERIES A COMMON STOCK HAVE BEEN REGISTERED UNDER THE
SECURITIES ACT, A HOLDER OF THIS SECURITY WILL BE ABLE TO EXERCISE THE
CONVERSION RIGHT ONLY IF THE HOLDER CERTIFIES THAT IT IS A "QUALIFIED
INSTITUTIONAL BUYER" OR AN INSTITUTIONAL "ACCREDITED INVESTOR" AS DEFINED
BELOW.
THE HOLDER OF THIS SECURITY, BY ITS ACCEPTANCE HEREOF, AGREES TO OFFER,
SELL OR OTHERWISE TRANSFER SUCH SECURITY, PRIOR TO THE DATE (THE "RESALE
RESTRICTION TERMINATION DATE") WHICH IS TWO YEARS AFTER THE LATER OF THE
ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH THE COMPANY OR ANY
AFFILIATE OF THE COMPANY WAS THE OWNER OF ANY SECURITY (OR ANY PREDECESSOR
OF SUCH SECURITY) ONLY (A) TO THE COMPANY OR ANY SUBSIDIARY THEREOF, (B)
FOR SO LONG AS THE SECURITIES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE
144A, TO A PERSON IT REASONABLY BELIEVES IS A "QUALIFIED INSTITUTIONAL
BUYER" AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT THAT PURCHASES FOR
ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO
WHICH NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE
144A, (C) TO AN INSTITUTIONAL "ACCREDITED INVESTOR" WITHIN THE MEANING OF
SUBPARAGRAPH (A)(1), (2),(3) OR (7) OF RULE 501 UNDER THE SECURITIES ACT
THAT IS ACQUIRING THE SECURITY FOR ITS OWN ACCOUNT, OR FOR THE ACCOUNT OF
SUCH AN INSTITUTIONAL "ACCREDITED INVESTOR," FOR INVESTMENT PURPOSES AND
NOT WITH A VIEW TO, OR FOR OFFER OR SALE IN CONNECTION WITH, ANY
DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT, (D) PURSUANT TO A
REGISTRATION STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE UNDER THE
SECURITIES ACT, (E) IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE 904
OF REGULATION S UNDER THE SECURITIES ACT, OR (F) PURSUANT TO ANOTHER
AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES
ACT, SUBJECT TO THE DELIVERY TO THE TRUSTEE OF AN OPINION OF COUNSEL,
CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO THE COMPANY AND THE
TRUSTEE, AND IN EACH OF THE FOREGOING CASES, A CERTIFICATE OF TRANSFER IN
THE FORM
26
<PAGE>
APPEARING ON THE OTHER SIDE OF THIS SECURITY IS COMPLETED AND DELIVERED BY
THE TRANSFEROR TO THE TRUSTEE. THIS LEGEND WILL BE REMOVED UPON THE REQUEST
OF THE HOLDER AFTER THE RESALE RESTRICTION TERMINATION DATE.
(ii) Upon any sale or transfer of a Transfer Restricted Security
(including any Transfer Restricted Security represented by a global
Security) pursuant to Rule 144 under the Securities Act or pursuant to an
effective registration statement under the Securities Act:
(A) in the case of any Transfer Restricted Security that is
a Certificated Security, the Registrar shall permit the Holder thereof
to exchange such Transfer Restricted Security for a Certificated
Security that does not bear the legend set forth in (i) above and
rescind any restriction on the transfer of such Transfer Restricted
Security upon receipt of a certification from the transferring Holder
substantially in the form of Exhibit B-4 hereto; and
(B) in the case of any Transfer Restricted Security
represented by a global Security, such Transfer Restricted Security
shall not be required to bear the legend set forth in (i) above, but
shall continue to be subject to the provisions of Section 2.11(a) and
(b) hereof; provided, however, that with respect to any request for an
-------- -------
exchange of a Transfer Restricted Security that is represented by a
global Security for a Certificated Security that does not bear the
legend set forth in (i) above, which request is made in reliance upon
Rule 144, the Holder thereof shall certify in writing to the Registrar
that such request is being made pursuant to Rule 144 (such
certification to be substantially in the form of Exhibit B-4 hereto).
(iii) Upon any sale or transfer of a Transfer Restricted Security
(including any Transfer Restricted Security represented by a global
Security) in reliance on any exemption from the registration requirements
of the Securities Act (other than exemptions pursuant to Rule 144A or Rule
144 under the Securities Act) in which the Holder or the transferee
provides an Opinion of Counsel to the Company and the Registrar in form and
substance reasonably acceptable to the Company and the Registrar (which
Opinion of Counsel shall also state that the transfer restrictions
contained in the legend are no longer applicable):
(A) in the case of any Transfer Restricted Security that is
a Certificated Security, the Registrar
27
<PAGE>
shall permit the Holder thereof to exchange such Transfer Restricted
Security for a Certificated Security that does not bear the legend set
forth in (i) above and rescind any restriction on the transfer of such
Transfer Restricted Security; and
(B) in the case of any Transfer Restricted Security
represented by a global Security, such Transfer Restricted Security
shall not be required to bear the legend set forth in (i) above, but
shall continue to be subject to the provisions of Section 2.11(a) and
(b) hereof.
SECTION 2.12. CUSIP NUMBERS. The Company in issuing the Securities may
-------------
use "CUSIP" numbers (if then generally in use), and, if so, the Trustee shall
use "CUSIP" numbers in notices of redemption as a convenience to Holders;
provided that any such notice may state that no representation is made as to the
- --------
correctness of such numbers either as printed on the Securities or as contained
in any notice of a redemption and that reliance may be placed only on the other
identification numbers printed on the Securities, and any such redemption shall
not be affected by any defect in or omission of such numbers. The Company will
promptly notify the Trustee of any change in the CUSIP numbers.
ARTICLE III.
REDEMPTION AND PURCHASES
SECTION 3.01. RIGHT TO REDEEM; NOTICES TO TRUSTEE. The Company, at its
-----------------------------------
option, may redeem the Securities for cash in accordance with the provisions set
forth in paragraphs 5 and 7 of the Securities. If the Company elects to redeem
Securities pursuant to paragraph 5 of the Securities, it shall notify the
Trustee in writing of the Redemption Date, the Principal Amount of Securities to
be redeemed and the Redemption Price.
The Company shall give the written notice to the Trustee provided for in
this Section 3.01 at least 45 days but not more than 60 days before the
Redemption Date.
SECTION 3.02. SELECTION OF SECURITIES TO BE REDEEMED. If less than all
--------------------------------------
the Securities are to be redeemed, the Trustee shall select the Securities to be
redeemed pro rata or by lot or by any other method the Trustee considers fair
and appropriate (so long as, in the determination of the Company, such method is
not prohibited by the rules of any stock exchange on which the Securities are
then listed). The Trustee shall make the selection at least 30 but not more
than 60 days before the Redemption Date from outstanding Securities not
previously called
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for redemption. The Trustee may select for redemption portions of the Principal
Amount of Securities that have denominations larger than $1,000. Securities and
portions of them the Trustee selects shall be in Principal Amounts of $1,000 or
an integral multiple of $1,000. Provisions of this Indenture that apply to
Securities called for redemption also apply to portions of Securities called for
redemption. The Trustee shall notify the Company promptly of the Securities or
portions of Securities to be redeemed.
If any Security selected for partial redemption is thereafter surrendered
for conversion in part before termination of the conversion right with respect
to the portion of the Security so selected, the converted portion of such
Security shall be deemed (so far as may be), solely for purposes of determining
the aggregate Principal Amount of Securities to be redeemed by the Company, to
be the portion selected for redemption. Securities that have been converted
during a selection of Securities to be redeemed may be treated by the Trustee as
outstanding for the purpose of such selection. Nothing in this Section 3.02
shall affect the right of any Holder to convert any Security pursuant to Article
XI before the termination of the conversion right with respect thereto.
SECTION 3.03. NOTICE OF REDEMPTION. At least 30 days but not more than 60
--------------------
days before a Redemption Date, the Company shall mail a notice of redemption by
first-class mail to each Holder of Securities to be redeemed in the manner
provided in Section 13.02.
The notice shall identify the Securities to be redeemed and shall state:
(1) the Redemption Date (upon which the Redemption Price shall be
paid);
(2) the Redemption Price;
(3) the Conversion Rate;
(4) the name and address of the Paying Agent and Conversion Agent and
of the office or agency referred to in Section 4.05;
(5) that Securities called for redemption may be converted at any
time before the close of business on the Redemption Date;
(6) that Holders who want to convert Securities must satisfy the
requirements set forth in paragraph 9 of the Securities;
29
<PAGE>
(7) that Securities called for redemption must be surrendered to the
Paying Agent or at the office or agency referred to in Section 4.05 to
collect the Redemption Price;
(8) the CUSIP number of the Securities;
(9) if fewer than all the outstanding Securities are to be redeemed,
the certificate numbers and Principal Amounts of the particular Securities
to be redeemed; and
(10) that, unless the Company defaults in payment of the Redemption
Price, Original Issue Discount on Securities called for redemption and
interest, if any, will cease to accrue on and after the Redemption Date.
At the Company's written request, the Trustee shall give the notice of
redemption in the Company's name and at the Company's expense.
SECTION 3.04. EFFECT OF NOTICE OF REDEMPTION. Once notice of redemption
------------------------------
is given, Securities called for redemption become due and payable on the
Redemption Date stated in the notice and at the Redemption Price therefor except
for Securities that are converted in accordance with the terms of this
Indenture. Upon the later of the Redemption Date and the date such Securities
are surrendered to the Paying Agent or at the office or agency referred to in
Section 4.05, such Securities called for redemption shall be paid at the
Redemption Price therefor.
SECTION 3.05. DEPOSIT OF REDEMPTION PRICE. Prior to or on the Redemption
---------------------------
Date, the Company shall deposit with the Paying Agent (or if the Company or a
Subsidiary or an Affiliate of either of them is the Paying Agent, shall
segregate and hold in trust) money sufficient to pay the Redemption Price of all
Securities to be redeemed on that date other than Securities or portions of
Securities called for redemption which prior thereto have been delivered by the
Company to the Trustee for cancellation. The Paying Agent shall as promptly as
practicable return to the Company any money, with interest, if any, thereon, not
required for that purpose because of conversion of Securities pursuant to
Article XI. If such money is then held by the Company or a Subsidiary or an
Affiliate of the Company in trust and is not required for such purpose it shall
be discharged from such trust.
SECTION 3.06. SECURITIES REDEEMED IN PART. Upon surrender of a Security
---------------------------
that is redeemed in part, the Company shall execute, and the Trustee shall
authenticate and deliver to the Holder, a new Security in an authorized
denomination equal in Principal Amount to the unredeemed portion of the Security
surrendered.
30
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SECTION 3.07. CONVERSION ARRANGEMENT ON CALL FOR REDEMPTION. In
---------------------------------------------
connection with any redemption of Securities, the Company may arrange, in lieu
of redemption, for the purchase and conversion of any Securities called for
redemption by an agreement with one or more investment bankers or other
purchasers to purchase all or a portion of such Securities by paying to the
Trustee in trust for the Securityholders whose Securities are to be so
purchased, on or before the close of business on the Redemption Date, an amount
that, together with any amounts deposited with the Trustee by the Company for
redemption of such Securities, is not less than the Redemption Price, together
with interest, if any, accrued to the Redemption Date, of such Securities.
Notwithstanding anything to the contrary contained in this Article III, the
obligation of the Company to pay the Redemption Price of such Securities,
including all accrued interest, if any, shall be deemed to be satisfied and
discharged to the extent such amount is so paid by such purchasers, but no such
agreement shall relieve the Company of its obligation to pay such Redemption
Price and interest, if any. If such an agreement is entered into, any
Securities not duly surrendered for conversion by the Holders thereof may, at
the option of the Company, be deemed, to the fullest extent permitted by law,
acquired by such purchasers from such Holders and (notwithstanding anything to
the contrary contained in Article XI) surrendered by such purchasers for
conversion, all as of immediately prior to the close of business on the
Redemption Date, subject to payment of the above amount as aforesaid. The
Trustee shall hold and pay to the Holders whose Securities are selected for
redemption any such amount paid to it for purchase and conversion in the same
manner as it would moneys deposited with it by the Company for the redemption of
Securities. Without the Trustee's prior written consent, no arrangement between
the Company and such purchasers for the purchase and conversion of any
Securities shall increase or otherwise affect any of the powers, duties,
responsibilities or obligations of the Trustee as set forth in this Indenture,
and the Company agrees to indemnify the Trustee from, and hold it harmless
against, any loss, liability or expense arising out of or in connection with any
such arrangement for the purchase and conversion of any Securities between the
Company and such purchasers, including the costs and expenses incurred by the
Trustee in the defense of any claim or liability arising out of or in connection
with the exercise or performance of any of its powers, duties, responsibilities
or obligations under this Indenture.
SECTION 3.08. PURCHASE OF SECURITIES AT THE OPTION OF THE HOLDER. (a)
------------------------------------------- ------
General. Securities shall be purchased by the Company pursuant to paragraph 6
- -------
of the Securities as of April 15, 2002, April 15, 2007 and April 15, 2012 (each,
a "Purchase Date"), at the purchase price specified therein (each, a "Purchase
Price"), at the option of the Holder thereof, upon:
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<PAGE>
(1) delivery to the Paying Agent or to the office or agency referred
to in Section 4.05 by the Holder of a written notice of purchase (a
"Purchase Notice") at any time from the opening of business on the date
that is 20 Business Days prior to a Purchase Date until the close of
business on such Purchase Date stating:
(A) the certificate number of the Security that the Holder will
deliver to be purchased;
(B) the portion of the Principal Amount of the Security which the
Holder will deliver to be purchased, which portion must be $1,000 or
an integral multiple thereof;
(C) that such Security shall be purchased on the Purchase Date
pursuant to the terms and conditions specified in this Indenture and
in paragraph 6 of the Securities; and
(D) that if the Company elects pursuant to Section 3.08(b) to pay
the Purchase Price on such Purchase Date, in whole or in part, in
shares of Series A Common Stock, but such portion of the Purchase
Price to be paid in shares of Series A Common Stock is ultimately to
be paid in cash because any of the conditions in Section 3.08(d), are
not satisfied, such Holder elects (i) to withdraw such Purchase Notice
as to some or all of the Securities to which it relates (stating the
Principal Amount and certificate numbers of the Securities as to which
such withdrawal shall relate), or (ii) to receive cash in respect of
the Purchase Price for all Securities subject to such Purchase Notice;
and
(2) delivery of such Security prior to, on or after the Purchase Date
(together with all necessary endorsements) to the Paying Agent at the
offices of the Paying Agent or to the office or agency referred to in
Section 4.05, such delivery being a condition to receipt by the Holder of
the Purchase Price therefor; provided, however, that such Purchase Price
-------- -------
shall be so paid pursuant to this Section 3.08 only if the Security so
delivered conforms in all respects to the description thereof in the
related Purchase Notice.
If a Holder, in such Holder's Purchase Notice and in any written notice of
withdrawal delivered by such Holder pursuant to the terms of Section 3.10, fails
to indicate such Holder's choice with respect to the election set forth in
clause (D) of Section 3.08(a)(1) above, such Holder shall be deemed to have
elected to
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<PAGE>
receive cash in respect of the Purchase Price otherwise payable in shares of
Series A Common Stock.
The Company shall purchase from the Holder thereof, pursuant to this
Section 3.08, a portion of a Security if the Principal Amount of such portion is
$1,000 or an integral multiple of $1,000. Provisions of this Indenture that
apply to the purchase of all of a Security also apply to the purchase of such
portion of such Security.
Any purchase by the Company contemplated pursuant to the provisions hereof
shall be consummated by the delivery of the consideration to be paid to the
Holder promptly following the later of (i) the Business Day following the
Purchase Date and (ii) the time of delivery of the Security.
Notwithstanding anything herein to the contrary, any Holder delivering to
the Paying Agent or the office or agency referred to in Section 4.05 the
Purchase Notice contemplated by this Section 3.08(a) shall have the right to
withdraw at any time prior to the close of business on the Purchase Date such
Purchase Notice by delivery of a written notice of withdrawal to the Paying
Agent or such office or agency in accordance with Section 3.10.
The Paying Agent shall promptly notify the Company of the receipt by it of
any Purchase Notice or written notice of withdrawal thereof.
(b) Company's Right to Elect Manner of Payment of Purchase Price. The
------------------------------------------------------ -----
Securities to be purchased pursuant to Section 3.08(a) may be paid for, at the
election of the Company, in cash or shares of Series A Common Stock, or in any
combination thereof, subject to the conditions set forth in this Section 3.08.
The Company shall designate, in its notice delivered pursuant to Section
3.08(e), whether it will purchase the Securities for cash or shares of Series A
Common Stock, and, if a combination thereof, the percentages of the Purchase
Price of Securities in respect of which it will pay in cash or shares of Series
A Common Stock; provided that the Company will pay cash for fractional interests
--------
in shares of Series A Common Stock. For purposes of determining the existence
of potential fractional interests, all Securities subject to purchase by the
Company held by a Holder shall be considered together (no matter how many
separate certificates are to be presented). Each Holder whose Securities are
purchased pursuant to this Section 3.08 shall receive the same percentage of
cash or shares of Series A Common Stock in payment of the Purchase Price for
such Securities, except (i) as provided in Section 3.08(d) with regard to the
payment of cash in lieu of fractional shares of shares of Series A Common Stock
and (ii) in the event that the Company is
33
<PAGE>
unable to purchase the Securities of a Holder or Holders for shares of Series A
Common Stock because any necessary qualifications or registrations of the shares
of Series A Common Stock under applicable Federal or state securities laws
cannot be obtained, the Company may purchase the Securities of such Holder or
Holders for cash. The Company may not change its election with respect to the
consideration (or components or percentages of components thereof) to be paid
once the Company has given notice thereof to Securityholders except pursuant to
this Section 3.08(b) or Section 3.08(d).
At least five Business Days before the Company Notice Date (as defined
below), the Company shall deliver an Officers' Certificate to the Trustee
specifying:
(i) the manner of payment selected by the Company;
(ii) the information required by Section 3.08(e);
(iii) that the conditions to such manner of payment set forth in
Section 3.08(d) have or will be complied with; and
(iv) whether the Company desires the Trustee to give the notice
required by Section 3.08(e).
(c) Purchase with Cash. On each Purchase Date, at the option of the
------------------
Company, the Principal Amount of the Securities in respect of which a Purchase
Notice pursuant to Section 3.08(a) has been given, or a specified percentage
thereof, may be purchased by the Company with cash equal to the aggregate
Purchase Price of such Securities.
(d) Payment by Series A Common Stock. On each Purchase Date, at the
--------------------------------
option of the Company, the Principal Amount of the Securities in respect of
which a Purchase Notice pursuant to Section 3.08(a) has been given, or a
specified percentage thereof, may be purchased by the Company by the issuance of
a number of shares of Series A Common Stock equal to the quotient obtained by
dividing (i) the amount of cash to which the Securityholders would have been
entitled had the Company elected to pay all or such specified percentage, as the
case may be, of the Purchase Price of such Securities in cash by (ii) the Market
Price (as defined below) of a share of Series A Common Stock, subject to the
next succeeding paragraph.
The Company will not issue a fractional share of Series A Common Stock in
payment of the Purchase Price. Instead the Company will pay cash for the current
market value of the fractional share. The current market value of a fraction of
a share shall be determined by multiplying the Market Price by such fraction and
rounding the product to the nearest whole cent, with
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<PAGE>
one-half cent being rounded upward. It is understood that if a Holder elects to
have more than one Security purchased, the number of shares of Series A Common
Stock shall be based on the aggregate amount of Securities to be purchased.
The Company's right to exercise its election to purchase the Securities
pursuant to this Section through the issuance of shares of Series A Common Stock
shall be conditioned upon:
(i) the Company's not having given notice of an election to pay
entirely in cash and its giving of timely notice of election to purchase
all or a specified percentage of the Securities with shares of Series A
Common Stock as provided herein;
(ii) the registration of the shares of Series A Common Stock to be
issued in respect of the payment of the Purchase Price under the Securities
Act of 1933, as amended (the "Securities Act") and the Securities Exchange
Act of 1934, as amended (the "Exchange Act"), in each case if required
unless there exists an applicable exemption to registration thereunder;
(iii) the listing of the Series A Common Stock on the relevant Purchase
Date on the New York Stock Exchange or other national securities exchange
or the quotation thereof on Nasdaq; and
(iv) the receipt by the Trustee of an Officers' Certificate and an
Opinion of Counsel each stating that (A) the terms of the issuance of the
shares of Series A Common Stock to be issued by the Company in payment of
the Purchase Price in respect of the Securities are in conformity with this
Indenture and (B) such shares of Series A Common Stock have been duly
authorized and, when issued and delivered pursuant to the terms of this
Indenture in payment of the Purchase Price in respect of the Securities,
will be validly issued, fully paid and nonassessable and shall be free of
any preemptive rights and any lien or adverse claim (provided that such
Opinion of Counsel may state that, insofar as it relates to the absence of
such preemptive rights, liens and adverse claims, it is given upon the best
knowledge of such counsel), and, in the case of such Officers' Certificate,
that conditions (i), (ii) and (iii) above have been satisfied and, in the
case of such Opinion of Counsel, that conditions (ii) and (iii) above have
been satisfied.
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<PAGE>
Such Officers' Certificate shall also set forth the number of shares of Series A
Common Stock to be issued for each $1,000 Principal Amount of Securities and the
Sale Price of a share of Series A Common Stock on each of the seven Trading Days
prior to the Purchase Date. The Company may elect to pay in shares of Series A
Common Stock only if the information necessary to calculate the Market Price is
reported in The Wall Street Journal or another daily newspaper of national
-----------------------
circulation. If such conditions are not satisfied prior to or on the Purchase
Date and the Company elected to purchase the Securities pursuant to this Section
3.08 through the issuance of shares of Series A Common Stock, the Company shall
pay the Purchase Price in cash.
The "Market Price" means the average of the Sale Price of the Series A
Common Stock for the five Trading Day period ending on the third Trading Day
prior to the related Purchase Date, appropriately adjusted to take into account
the actual occurrence, during the seven Trading Days preceding such Purchase
Date, of any event described in Section 11.06, 11.07 or 11.08; subject, however,
------- -------
to the conditions set forth in Sections 11.09 and 11.10.
(e) Notice of Election. The Company shall send notice of its election
------------------
(the "Company Notice") to purchase with cash or shares of Series A Common Stock
or any combination thereof to the Holders (and to beneficial owners as required
by applicable law) in the manner provided in Section 13.02. The Company Notice
shall be sent to Holders (and to beneficial owners as required by applicable
law) on a date not less than 20 Business Days prior to the Purchase Date (such
date not less than 20 Business Days prior to the Purchase Date being herein
referred to as the "Company Notice Date"). Such notices shall state the manner
of payment elected and shall contain the following information:
In the event the Company has elected to pay the Purchase Price (or any
specified percentage thereof) with shares of Series A Common Stock, the notice
shall:
(1) state that each Holder will receive shares of Series A Common
Stock with a Market Price determined as of the third Trading Day prior to
the related Purchase Date equal to such specified percentage of the
Purchase Price of the Securities held by such Holder (except for any cash
amount to be paid in lieu of fractional shares); and
(2) state that because the Market Price of the Series A Common Stock
will be determined prior to the Purchase Date, Holders will bear the market
risk with respect to the value of the shares of Series A Common Stock to be
received from the date such Market Price is determined to the Purchase
Date.
36
<PAGE>
In any case, each notice shall include a form of Purchase Notice to be
completed by the Securityholder and shall state:
(i) the Purchase Price and Conversion Rate;
(ii) the name and address of the Paying Agent and the Conversion Agent
and of the office or agency referred to in Section 4.05;
(iii) that Securities as to which a Purchase Notice has been given may
be converted into shares of Series A Common Stock at any time prior to the
close of business on the applicable Purchase Date only if the applicable
Purchase Notice has been withdrawn in accordance with the terms of this
Indenture;
(iv) that Securities must be surrendered to the Paying Agent or to the
office or agency referred to in Section 4.05 to collect payment;
(v) that the Purchase Price for any Security as to which a Purchase
Notice has been given and not withdrawn will be paid promptly following the
later of the Purchase Date and the time of surrender of such Security as
described in (iv);
(vi) the procedures the Holder must follow to exercise rights under
Section 3.08 and a brief description of those rights;
(vii) briefly, the conversion rights of the Securities and that Holders
who want to convert Securities must satisfy the requirements set forth in
paragraph 9 of the Securities; and
(viii) the procedures for withdrawing a Purchase Notice (including,
without limitation, for a conditional withdrawal pursuant to the terms of
Section 3.08(a)(1)(D) or Section 3.10).
At the Company's written request, the Trustee shall give such notice in the
Company's name and at the Company's expense; provided, however, that, in all
-------- -------
cases, the text of such notice shall be prepared by the Company.
Upon determination of the actual number of shares of Series A Common Stock
to be issued for each $1,000 Principal Amount of Securities, the Company will
publish such determination in The Wall Street Journal or another daily newspaper
-----------------------
of national circulation and furnish the Trustee with an affidavit of
publication.
37
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(f) Covenants of the Company. All shares of Series A Common Stock
------------------------
delivered upon purchase of the Securities shall be newly issued shares or
treasury shares, shall be duly authorized, validly issued, fully paid and
nonassessable and shall be free from preemptive rights and free of any lien or
adverse claim.
The Company shall use its best efforts to list or cause to have quoted any
shares of Series A Common Stock to be issued to purchase Securities on the
principal national securities exchange or over-the-counter or other domestic
market on which any other shares of the Series A Common Stock are then listed or
quoted. The Company will promptly inform the Trustee in writing of any such
listing.
(g) Procedure Upon Purchase. The Company shall deposit cash (in respect
-----------------------
of a cash purchase under Section 3.08(c) or for fractional interests, as
applicable) or shares of Series A Common Stock, or any combination thereof, as
applicable, at the time and in the manner as provided in Section 3.11,
sufficient to pay the aggregate Purchase Price of all Securities to be purchased
pursuant to this Section 3.08. As soon as practicable after the later of the
Purchase Date and the date such Securities are surrendered to the Paying Agent
or at the office or agency referred to in Section 4.05, the Company shall
deliver to each Holder entitled to receive shares of Series A Common Stock
through the Paying Agent a certificate for the number of full shares of Series A
Common Stock issuable in payment of the Purchase Price and cash in lieu of any
fractional interests. The person in whose name the certificate for shares of
Series A Common Stock is registered shall be treated as a holder of record of
such shares of Series A Common Stock on the later of the Business Day following
the related Purchase Date or the date on which the Transfer Agent registers such
shares, provided that such Holder has complied with all applicable requirements
of this Section 3.08. Subject to Section 3.08(d), no payment or adjustment will
be made for dividends on the Series A Common Stock the record date for which
occurred prior to the Purchase Date.
(h) Taxes. If a Holder of a Security is paid in shares of Series A Common
-----
Stock, the Company shall pay any documentary, stamp or similar issue or transfer
tax due on such issue of such Series A Common Stock. However, the Holder shall
pay any such tax which is due because the Holder requests the shares of Series A
Common Stock to be issued in a name other than the Holder's name. The Paying
Agent may refuse to deliver the certificates representing the shares of Series A
Common Stock being issued in a name other than the Holder's name until the
Paying Agent receives a sum sufficient to pay any tax which will be due because
the shares of Series A Common Stock are to be issued in a name other than the
Holder's name. Nothing herein
38
<PAGE>
shall preclude any income tax withholding required by law or regulations.
SECTION 3.09. PURCHASE OF SECURITIES AT OPTION OF THE HOLDER UPON CHANGE
--------------------------------------- ------------------
IN CONTROL. (a) If on or prior to April 15, 2002 there shall have occurred a
- ----------
Change in Control, Securities shall be purchased, at the option of the Holder
thereof, by the Company at the purchase price specified in paragraph 6 of the
Securities (the "Change in Control Purchase Price"), on the date that is 35
Business Days after the occurrence of the Change of Control (the "Change in
Control Purchase Date"), subject to satisfaction by or on behalf of the Holder
of the requirements set forth in Section 3.09(c).
A "Change in Control" shall be deemed to have occurred at such time as
either of the following events shall occur:
(i) There shall be consummated any consolidation or merger of the
Company in which the Company is not the continuing or surviving corporation
(other than any consolidation or merger effected primarily to change the
jurisdiction of incorporation of the Company) or pursuant to which the
Common Stock would be converted into cash, securities or other property, in
each case, other than a consolidation or merger of the Company in which the
holders of Common Stock immediately prior to the consolidation or merger
have, directly or indirectly, at least a majority of the total voting power
in the aggregate of all classes of Capital Stock of the continuing or
surviving corporation immediately after such consolidation or merger; or
(ii) There is a report filed by any person, including its Affiliates
and Associates, on Schedule 13D or 14D-1 (or any successor schedule, form
or report) pursuant to the Exchange Act, disclosing that such person (for
the purposes of this Section 3.09 only, the term "person" shall include a
"person" within the meaning of Section 13(d)(3) or Section 14(d)(2) of the
Exchange Act or any successor provision to either of the foregoing) has
become the beneficial owner (as the term "beneficial owner" is defined
under Rule 13d-3 or any successor rule or regulation promulgated under the
Exchange Act) of 50% or more of the total voting power in the aggregate of
all classes of Capital Stock then outstanding of the Company normally
entitled to vote in elections of directors; provided, however, that a
-------- -------
person shall not be deemed beneficial owner of, or to own beneficially, (A)
any securities tendered pursuant to a tender or exchange offer made by or
on behalf of such person or any of such person's Affiliates or Associates
until such tendered securities are accepted for purchase or exchange
thereunder, or (B) any securities if such beneficial
39
<PAGE>
ownership (1) arises solely as a result of a revocable proxy delivered in
response to a proxy or consent solicitation made pursuant to, and in
accordance with, the applicable rules and regulations under the Exchange
Act, and (2) is not also then reportable on Schedule 13D (or any successor
schedule, form or report) under the Exchange Act.
Notwithstanding the foregoing provisions of this Section 3.09, a Change in
Control shall not be deemed to have occurred if at any time the Company, any
Subsidiary of the Company, any employee stock ownership plan or any other
employee benefit plan of either the Company or any Subsidiary of the Company,
any person holding shares of Common Stock for or pursuant to the terms of any
such employee benefit plan, or the Chandler Trusts or any trustees thereof files
or becomes obligated to file a report under or in response to Schedule 13D or
Schedule 14D-1 (or any successor schedule, form or report) under the Exchange
Act disclosing beneficial ownership by it of 50% or more of the total voting
power in the aggregate of all classes of Capital Stock then outstanding of the
Company normally entitled to vote in elections of directors.
"Associate" shall have the meaning ascribed to such term in Rule 12b-2 of
the General Rules and Regulations under the Exchange Act, as in effect on the
date hereof.
(b) Within 15 Business Days after the occurrence of a Change in Control,
(i) the Company shall mail a written notice of such Change in Control by first-
class mail to the Trustee and to each Holder (and to beneficial owners if
required by applicable law) and (ii) the Company shall cause a copy of such
notice to be published in The Wall Street Journal or another daily newspaper of
-----------------------
national circulation. The notice shall include a form of Change in Control
Purchase Notice to be completed by the Securityholder and shall state:
(1) the events causing a Change in Control and the date such Change
in Control is deemed to have occurred for purposes of this Section 3.09;
(2) the date by which the Change in Control Purchase Notice pursuant
to this Section 3.09 must be given;
(3) the Change in Control Purchase Date;
(4) the Change in Control Purchase Price;
(5) the name and address of the Paying Agent and the Conversion Agent
and the office or agency referred to in Section 4.05;
40
<PAGE>
(6) the Conversion Rate and any adjustments thereto;
(7) that Securities as to which a Change in Control Purchase Notice
has been given may be converted into shares of Series A Common Stock (or,
in lieu thereof, cash, if the Company shall so elect) at any time prior to
the close of business on the Change of Control Purchase Date only if the
Change in Control Purchase Notice has been withdrawn in accordance with the
terms of this Indenture;
(8) that Securities must be surrendered to the Paying Agent or the
office or agency referred to in Section 4.05 to collect payment;
(9) that the Change in Control Purchase Price for any Security as to
which a Purchase Notice has been duly given and not withdrawn will be paid
promptly following the later of the Change in Control Purchase Date and the
time of surrender of such Security as described in (8);
(10) the procedures the Holder must follow to exercise rights under
this Section 3.09 and a brief description of those rights;
(11) briefly, the conversion rights of the Securities; and
(12) the procedures for withdrawing a Change in Control Purchase
Notice.
(c) A Holder may exercise its rights specified in Section 3.09(a) upon
delivery of a written notice of purchase (a "Change in Control Purchase Notice")
to the Paying Agent or to the office or agency referred to in Section 4.05 at
any time prior to the close of business on the Change in Control Purchase Date,
stating:
(1) the certificate number of the Security which the Holder will
deliver to be purchased;
(2) the portion of the Principal Amount of the Security which the
Holder will deliver to be purchased, which portion must be $1,000 or an
integral multiple thereof; and
(3) that such Security shall be purchased on the Change in Control
Purchase Date pursuant to the terms and conditions specified in paragraph 6
of the Securities.
Receipt of the Security by the Paying Agent prior to, on or after the
Change in Control Purchase Date (together with all
41
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necessary endorsements), at the offices of the Paying Agent or to the office or
agency referred to in Section 4.05 shall be a condition to the receipt by the
Holder of the Change in Control Purchase Price therefor; provided, however, that
-------- -------
such Change in Control Purchase Price shall be so paid pursuant to this Section
3.09 only if the Security so delivered to the Paying Agent or such office or
agency shall conform in all respects to the description thereof set forth in the
related Change in Control Purchase Notice.
The Company shall purchase from the Holder thereof, pursuant to this
Section 3.09, a portion of a Security if the Principal Amount of such portion is
$1,000 or an integral multiple of $1,000. Provisions of this Indenture that
apply to the purchase of all of a Security also apply to the purchase of such
portion of such Security.
Any purchase by the Company contemplated pursuant to the provisions of this
Section 3.09 shall be consummated by the delivery of the consideration to be
received by the Holder promptly following the later of the Change in Control
Purchase Date and the date such Securities are surrendered to the Paying Agent
or at the office or agency referred to in Section 4.05.
Notwithstanding anything herein to the contrary, any Holder delivering to
the Paying Agent or to the office or agency referred to in Section 4.05 the
Change in Control Purchase Notice contemplated by this Section 3.09(c) shall
have the right to withdraw such Change in Control Purchase Notice at any time
prior to or on the Change in Control Purchase Date by delivery of a written
notice of withdrawal to the Paying Agent or to such office or agency in
accordance with Section 3.10.
The Paying Agent shall promptly notify the Company of the receipt by it of
any Change in Control Purchase Notice or written withdrawal thereof.
SECTION 3.10. EFFECT OF PURCHASE NOTICE OR CHANGE IN CONTROL PURCHASE
-------------------------------------------------------
NOTICE. Upon receipt by the Paying Agent of the Purchase Notice or Change in
- ------
Control Purchase Notice specified in Section 3.08(a) or Section 3.09(c), as
applicable, the Holder of the Security in respect of which such Purchase Notice
or Change in Control Purchase Notice, as the case may be, was given shall
(unless such Purchase Notice or Change in Control Purchase Notice is withdrawn
as specified in the following two paragraphs) thereafter be entitled to receive
solely the Purchase Price or Change in Control Purchase Price, as the case may
be, with respect to such Security. Such Purchase Price or Change in Control
Purchase Price shall be paid to such Holder promptly following the later of (x)
the Business Day following the Purchase Date or the Change in Control Purchase
Date, as the case
42
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may be, with respect to such Security (provided the conditions in Section
3.08(a) or Section 3.09(c), as applicable, have been satisfied) and (y) the time
of delivery of such Security to the Paying Agent or to the office or agency
referred to in Section 4.05 by the Holder thereof in the manner required by
Section 3.08(a) and (g) or Section 3.09(c), as applicable. Securities in
respect of which a Purchase Notice or Change in Control Purchase Notice, as the
case may be, has been given by the Holder thereof may not be converted into
shares of Series A Common Stock on or after the date of the delivery of such
Purchase Notice or Change in Control Purchase Notice, as the case may be, unless
such Purchase Notice or Change in Control Purchase Notice, as the case may be,
has first been validly withdrawn as specified in the following two paragraphs.
A Purchase Notice or Change in Control Purchase Notice, as the case may be,
may be withdrawn by a Holder by means of a written notice of withdrawal
delivered to the office of the Paying Agent or to the office or agency referred
to in Section 4.05 at any time on or prior to the Purchase Date or the Change in
Control Purchase Date, as the case may be, specifying:
(1) the certificate number of the Security in respect of which such
notice of withdrawal is being submitted;
(2) the Principal Amount of the Security with respect to which such
notice of withdrawal is being submitted; and
(3) the Principal Amount, if any, of such Security which remains
subject to the original Purchase Notice or Change in Control Purchase
Notice, as the case may be, and which has been or will be delivered for
purchase by the Company.
A written notice of withdrawal of a Purchase Notice may be in the form set
forth in the preceding paragraph or may be in the form of (i) a conditional
withdrawal contained in a Purchase Notice pursuant to the terms of Section
3.08(a)(1)(D) or (ii) a conditional withdrawal containing the information set
forth in Section 3.08(a)(1)(D) and the preceding paragraph and contained in a
written notice of withdrawal delivered to the Paying Agent as set forth in the
preceding paragraph.
There shall be no purchase of any Securities pursuant to Sections 3.08
(other than through the issuance of Series A Common Stock) or 3.09 if there has
occurred (prior to, on or after, as the case may be, the giving, by the Holders
of such Securities, of the required Purchase Notice or Change in Control
Purchase Notice, as the case may be) and is continuing an Event of Default
(other than a default in the payment of the Purchase Price or Change in Control
Purchase Price, as the case may be, with
43
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respect to such Securities). The Paying Agent will promptly return to the
respective Holders thereof any Securities (x) with respect to which a Purchase
Notice or Change in Control Purchase Notice, as the case may be, has been
withdrawn in compliance with this Indenture, or (y) held by it during the
continuance of an Event of Default (other than a default in the payment of the
Purchase Price or Change in Control Purchase Price, as the case may be, with
respect to such Securities).
SECTION 3.11. DEPOSIT OF PURCHASE PRICE OR CHANGE IN CONTROL PURCHASE
-------------------------------------------------------
PRICE. Prior to 12:00 p.m. (local time in The City of New York) on the Business
- -----
Day following the Purchase Date or the Change in Control Purchase Date, as the
case may be, the Company shall deposit with the Trustee or with the Paying Agent
(or, if the Company or a Subsidiary or an Affiliate of either of them is acting
as Paying Agent, shall segregate and hold in trust as provided in Section 2.04)
an amount of cash in immediately available funds or securities, if expressly
permitted hereunder, sufficient to pay the aggregate Purchase Price or Change in
Control Purchase Price, as the case may be, of all the Securities or portions
thereof which are to be purchased.
SECTION 3.12. SECURITIES PURCHASED IN PART. Any Security which is to be
----------------------------
purchased only in part shall be surrendered at the office of the Paying Agent or
the office or agency referred to in Section 4.05 (with, if the Company or the
Trustee so requires, due endorsement, or a written instrument of transfer in
form satisfactory to the Company and the Trustee executed by the Holder or such
Holder's attorney duly authorized in writing), and the Company shall execute and
the Trustee shall authenticate and deliver to the Holder of such Security,
without service charge, a new Security or Securities, of any authorized
denomination as requested by such Holder in aggregate Principal Amount equal to,
and in exchange for, the portion of the Principal Amount of the Security so
surrendered which is not purchased.
SECTION 3.13. COVENANT TO COMPLY WITH SECURITIES LAWS UPON PURCHASE OF
--------------------------------------------------------
SECURITIES. In connection with any offer to purchase or purchase of Securities
- ----------
under Section 3.08 or 3.09 hereof, the Company shall (i) comply with Rule 13e-4
under the Exchange Act, if applicable, (ii) file the related Schedule 13E-4 (or
any successor schedule, form or report) under the Exchange Act, if applicable,
and (iii) otherwise comply with all Federal and state securities laws regulating
the offer and delivery of shares of Series A Common Stock upon purchase of the
Securities (including positions of the SEC under applicable no-action letters)
so as to permit the rights and obligations under Sections 3.08 and 3.09 to be
exercised in the time and in the manner specified in Sections 3.08 and 3.09.
44
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SECTION 3.14. REPAYMENT TO THE COMPANY. The Trustee and the Paying Agent
------------------------
shall return to the Company, upon written request, any cash or shares of Series
A Common Stock, together with interest on such cash, if any, or dividends on
such shares of Series A Common Stock, if any, held by them for the payment of a
Purchase Price or Change in Control Purchase Price, as the case may be, of the
Securities that remain unclaimed as provided in paragraph 14 of the Securities;
provided, however, that to the extent that the aggregate amount of cash or
- -------- -------
shares of Series A Common Stock deposited by the Company pursuant to Section
3.11 exceeds the aggregate Purchase Price or Change in Control Purchase Price,
as the case may be, of the Securities or portions thereof to be purchased, then
promptly after the Business Day following the Purchase Date or Change in Control
Purchase Date, as the case may be, the Trustee shall return any such excess to
the Company together with interest or dividends, if any, thereon.
ARTICLE IV.
COVENANTS
SECTION 4.01. PAYMENT OF SECURITIES. The Company shall promptly make all
---------------------
payments in respect of the Securities on the dates and in the manner provided in
the Securities or pursuant to this Indenture. Principal Amount, Issue Price,
accrued Original Issue Discount, Redemption Price, Purchase Price, Change in
Control Purchase Price and interest, if any, shall be considered paid on the
applicable date due if on such date the Trustee or the Paying Agent holds, in
accordance with this Indenture, cash or securities, if expressly permitted
hereunder, sufficient to pay all such amounts then due.
The Company shall, to the extent permitted by law, pay interest on overdue
amounts at the per annum rate of interest set forth in paragraph 1 of the
Securities, compounded semi-annually, which interest on overdue amounts (to the
extent payment of such interest shall be legally enforceable) shall accrue from
the date such overdue amounts were originally due and payable.
SECTION 4.02. SEC REPORTS. The Company shall deliver to the Trustee,
-----------
within 15 days after it files with the SEC, 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 SEC may by rules and regulations prescribe) which the
Company is required to file with the SEC pursuant to Section 13 or 15(d) of the
Exchange Act. The Company also shall comply with the other provisions of TIA
Section 314(a). The Company shall timely comply with its reporting and filing
obligations under the applicable Federal securities law.
45
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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 SEC, and will, upon request of a
Holder, mail to such 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 GAAP
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 SEC, or
any successor form of similar disclosure then required under the rules and
regulations of the SEC.
Delivery of such reports, information and documents to the Trustee is for
informational purposes only and the Trustee's receipt of such shall not
constitute constructive notice of any information contained therein or
determinable from information contained therein, including the Company's
compliance with any of its covenants hereunder (as to which the Trustee is
entitled to rely exclusively on Officers' Certificates).
SECTION 4.03. STATEMENTS BY OFFICERS AS TO DEFAULT. The Company shall
------------------------------------
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, one of the
signers of which shall be the principal executive officer, principal financial
officer or principal accounting officer, stating whether or not to the best
knowledge of the signers thereof, the Company is in default in the performance
and observance of any terms, provisions and conditions of the Indenture (without
regard to any grace period 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.
SECTION 4.04. CALCULATION OF ORIGINAL ISSUE DISCOUNT. The Company shall
--------------------------------------
file with the Trustee within 30 days following the end of each calendar year (i)
a written notice specifying the amount of Original Issue Discount (including
daily rates and accrual periods) accrued on outstanding Securities as of the end
of such year and (ii) such other specific information relating to such Original
Issue Discount as may then be relevant under the Internal Revenue Code of 1986,
as amended from time to time.
SECTION 4.05. MAINTENANCE OF OFFICE OR AGENCY. The Company will maintain
-------------------------------
in the Borough of Manhattan, The City of New York, in such location as may be
required by the rules of any securities exchange or quotation system on which
the Securities
46
<PAGE>
may from time to time be listed, an office or agency where Securities may be
presented or surrendered for payment, where Securities may be surrendered for
registration of transfer, exchange, purchase, redemption or conversion and where
notices and demands to or upon the Company in respect of the Securities and this
Indenture may be served. The Corporate Trust Office of the Trustee shall be
such office or agency for all of the aforesaid purposes unless the Company shall
maintain some other office or agency for such purposes and shall give prompt
written notice to the Trustee of the location, and any change of location, of
such other office or agency. If at any time the Company shall fail to maintain
any such required office or agency or shall fail to furnish the Trustee with the
address thereof, such presentations, surrenders, notices and demands may be made
or served at the address of the Trustee set forth in Section 13.02.
The Company may also from time to time designate one or more other offices
or agencies where the Securities 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 The City of New
York, for such purposes.
SECTION 4.06. 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 4.07. CONTINUED EXISTENCE. Subject to Article V, 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.
ARTICLE V.
CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE
SECTION 5.01. 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:
47
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(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 11.14;
(2) immediately after giving effect to such transaction, no Event of
Default (as defined in Article VI), 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) 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 5.02. 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 5.01, 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.
48
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ARTICLE VI.
DEFAULTS AND REMEDIES
SECTION 6.01. EVENTS OF DEFAULT. An "Event of Default" occurs if:
-----------------
(1) after exercise of its option pursuant to Section 12.01 hereof
following a Tax Event, the Company defaults in the payment of interest upon
any Security when such interest becomes due and payable, and such default
continues for a period of 30 days;
(2) the Company defaults in the payment of the Principal Amount,
Issue Price, accrued Original Issue Discount, Redemption Price, Purchase
Price, Change in Control Purchase Price or Conversion Payment on any
Security when the same becomes due and payable at its Stated Maturity, upon
redemption, upon declaration, when due for purchase by the Company or
otherwise, whether or not such payment shall be prohibited by this
Indenture;
(3) the Company fails to comply with any of its agreements in the
Securities or this Indenture (other than those referred to in clause (1)
above) and such failure continues for 90 days after receipt by the Company
of a Notice of Default;
(4) the Company pursuant to or within the meaning of any Bankruptcy
Law:
(a) commences a voluntary case or proceeding;
(b) consents to the entry of an order for relief against it in
an involuntary case or proceeding or the commencement of any case
against it;
(c) consents to the appointment of a Custodian of it or for any
substantial part of its property;
(d) makes a general assignment for the benefit of its creditors;
(e) files a petition in bankruptcy or answer or consent seeking
reorganization or relief; or
(f) consents to the filing of such petition or the appointment
of or taking possession by a Custodian;
(5) a court of competent jurisdiction enters an order or decree under
any Bankruptcy Law that:
49
<PAGE>
(a) is for relief against the Company in an involuntary case or
proceeding, or adjudicates the Company insolvent or bankrupt;
(b) appoints a Custodian of the Company or for any substantial
part of its property; or
(c) orders the winding up or liquidation of the Company;
and the order or decree remains unstayed and in effect for 60 days; or
(6) the Company fails to deliver shares of Series A Common Stock or
pay cash in lieu thereof (together with cash in lieu of fractional shares)
in accordance with the terms hereof when such Series A Common Stock or cash
is required to be delivered upon conversion of a Security and such failure
is not remedied for a period of 10 days.
A Default under clause (3) above is not an Event of Default until the
Trustee notifies the Company, or the Holders of at least 25% in aggregate
Principal Amount of the Securities at the time outstanding notify the Company
and the Trustee, of the Default and the Company does not cure such Default
within the time specified in clause (3) above after receipt of such notice. Any
such notice must specify the Default, demand that it be remedied and state that
such notice is a "Notice of Default."
The Company shall deliver to the Trustee, within 30 days after it becomes
aware of the occurrence thereof, written notice of any event which with the
giving of notice and the lapse of time or both would become an Event of Default
under clause (3), its status and what action the Company is taking or proposes
to take with respect thereto.
SECTION 6.02. ACCELERATION. If an Event of Default (other than an Event
------------
of Default specified in Section 6.01(4) or (5)) occurs and is continuing, unless
the Principal Amount of all the Securities shall have already become due and
payable, either the Trustee by notice to the Company, or the Holders of at least
25% in aggregate Principal Amount of the Securities at the time outstanding by
notice to the Company and the Trustee, may declare the Issue Price and accrued
Original Issue Discount (or if the Securities have been converted to a
semiannual coupon note following a Tax Event, the Restated Principal Amount,
plus accrued and unpaid interest) to the date of declaration on all the
Securities to be immediately due and payable, whereupon such Issue Price and
accrued Original Issue Discount shall be due and payable immediately; provided
that, if an Event of Default specified in Section 6.01(4) or (5) occurs and is
continuing, the
50
<PAGE>
Issue Price and accrued Original Issue Discount (or if the Securities have been
converted to a semiannual coupon note following a Tax Event, the Restated
Principal Amount, plus accrued and unpaid interest) on all the Securities to the
date of the occurrence of such Event of Default shall become and be immediately
due and payable without any declaration or other act on the part of the Trustee
or any Securityholders. The Holders of a majority in aggregate Principal Amount
of the Securities at the time outstanding, by notice to the Trustee (and without
notice to any other Securityholder) may rescind an acceleration and its
consequences if the rescission would not conflict with any judgment or decree
and if all existing Events of Default have been cured or waived except
nonpayment of the Issue Price and accrued Original Issue Discount that have
become due solely as a result of acceleration and if all amounts due to the
Trustee under Section 7.07 have been paid. No such rescission shall affect any
subsequent Default or impair any right consequent thereto.
SECTION 6.03. OTHER REMEDIES. If an Event of Default occurs and is
--------------
continuing, the Trustee may pursue any available remedy to collect the payment
of the Issue Price and accrued Original Issue Discount on the Securities or to
enforce the performance of any provision of the Securities or this Indenture.
The Trustee may maintain a proceeding even if the Trustee does not possess
any of the Securities or does not produce any of the Securities in the
proceeding. A delay or omission by the Trustee or any Securityholder in
exercising any right or remedy accruing upon an Event of Default shall not
impair the right or remedy or constitute a waiver of, or acquiescence in, the
Event of Default. No remedy is exclusive of any other remedy. All available
remedies are cumulative.
SECTION 6.04. WAIVER OF PAST DEFAULTS. The Holders of a majority in
-----------------------
aggregate Principal Amount of the Securities at the time outstanding, by notice
to the Trustee (and without notice to any other Securityholder), may waive an
existing Default and its consequences except (a) an Event of Default described
in Section 6.01(1) or 6.01(2), (b) a Default in respect of a provision that
under Section 9.02 cannot be amended without the consent of each Securityholder
affected or (c) a Default under Article XI. When a Default is waived, it is
deemed cured and shall cease to exist, but no such waiver shall extend to any
subsequent or other Default or impair any consequent right.
SECTION 6.05. CONTROL BY MAJORITY. The Holders of a majority in aggregate
-------------------
Principal Amount of the Securities at the time outstanding may direct the time,
method and place of conducting any proceeding for any remedy available to the
Trustee or of exercising any trust or power conferred on the Trustee.
51
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However, the Trustee may refuse to follow any direction that conflicts with law
or this Indenture or that the Trustee determines in good faith is unduly
prejudicial to the rights of other Securityholders or would involve the Trustee
in personal liability unless the Trustee shall have been provided with
reasonable security or indemnity against such liability satisfactory to the
Trustee.
SECTION 6.06. LIMITATION ON SUITS. A Securityholder may not pursue any
-------------------
remedy with respect to this Indenture or the Securities unless:
(1) the Holder gives to the Trustee written notice stating that an
Event of Default is continuing;
(2) the Holders of at least 25% in aggregate Principal Amount of the
Securities at the time outstanding make a written request to the Trustee to
pursue the remedy;
(3) such Holder or Holders offer to the Trustee reasonable security
or indemnity against any loss, liability or expense satisfactory to the
Trustee;
(4) the Trustee does not comply with the request within 60 days after
receipt of the notice, the request and the offer of security or indemnity;
and
(5) the Holders of a majority in aggregate Principal Amount of the
Securities at the time outstanding do not give the Trustee a direction
inconsistent with the request during such 60-day period.
A Securityholder may not use this Indenture to prejudice the rights of any
other Securityholder or to obtain a preference or priority over any other
Securityholder.
SECTION 6.07. RIGHTS OF HOLDERS TO RECEIVE PAYMENT. Notwithstanding any
------------------------------------
other provision of this Indenture, the right of any Holder to receive payment of
the Principal Amount, Issue Price, accrued Original Issue Discount, Redemption
Price, Purchase Price, Change in Control Purchase Price or interest, if any, in
respect of the Securities held by such Holder, on or after the respective due
dates expressed in the Securities or any Redemption Date, and to convert the
Securities in accordance with Article XI or to bring suit for the enforcement of
any such payment on or after such respective dates or the right to convert,
shall not be impaired or affected adversely without the consent of each such
Holder.
SECTION 6.08. COLLECTION SUIT BY TRUSTEE. If an Event of Default
--------------------------
described in Section 6.01(1) or 6.01(2) occurs and is
52
<PAGE>
continuing, the Trustee may recover judgment in its own name and as trustee of
an express trust against the Company for the whole amount owing with respect to
the Securities and the amounts provided for in Section 7.07.
SECTION 6.09. TRUSTEE MAY FILE PROOFS OF CLAIM. In case of the pendency
--------------------------------
of any receivership, insolvency, liquidation, bankruptcy, reorganization,
arrangement, adjustment, composition or other judicial proceeding relative to
the Company or any other obligor upon the Securities or the property of the
Company or of such other obligor or their creditors, the Trustee (irrespective
of whether the Principal Amount, Issue Price, accrued Original Issue Discount,
Redemption Price, Purchase Price, Change in Control Purchase Price or interest,
if any, in respect of the Securities shall then be due and payable as therein
expressed or by declaration or otherwise and irrespective of whether the Trustee
shall have made any demand on the Company for the payment of any such amount)
shall be entitled and empowered, by intervention in such proceeding or
otherwise:
(a) to file and prove a claim for the whole amount of the Principal
Amount, Issue Price, accrued Original Issue Discount, Redemption Price,
Purchase Price, Change in Control Purchase Price or interest, if any, and
to file such other papers or documents as may be necessary or advisable in
order to have the claims of the Trustee (including any claim for the
reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel) and of the Holders allowed in such
judicial proceeding; and
(b) 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
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 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 7.06.
Nothing herein contained shall be deemed to authorize the Trustee to
authorize or consent to or accept or adopt on behalf of any Holder any plan of
reorganization, arrangement, adjustment or composition affecting the Securities
or the rights of any Holder thereof, or to authorize the Trustee to vote in
respect of the claim of any Holder in any such proceeding.
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SECTION 6.10. PRIORITIES. If the Trustee collects any money pursuant to
----------
this Article VI, it shall pay out the money in the following order:
FIRST: to the Trustee for amounts due under Section 7.07;
SECOND: to holders of Senior Indebtedness to the extent required by
Article X;
THIRD: to Securityholders for amounts due and unpaid on the Securities
for the Principal Amount, Issue Price, accrued Original Issue Discount,
Redemption Price, Purchase Price, Change in Control Purchase Price or interest,
if any, as the case may be, ratably, without preference or priority of any kind,
according to such amounts due and payable on the Securities; and
FOURTH: the balance, if any, to the Company.
The Trustee may fix a record date and payment date for any payment to
Securityholders pursuant to this Section 6.10. At least 15 days before such
record date, the Company shall mail to each Securityholder and the Trustee a
notice that states the record date, the payment date and amount to be paid.
SECTION 6.11. 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 or omitted by it as Trustee, a court in its discretion may
require the filing by any party litigant (other than the Trustee) in the suit of
an undertaking to pay the costs of the suit, and the court in its discretion may
assess reasonable costs, including reasonable attorneys' fees and expenses,
against any party litigant in the suit, having due regard to the merits and good
faith of the claims or defenses made by the party litigant. This Section 6.11
does not apply to a suit initiated by the Trustee, a suit by a Holder pursuant
to Section 6.07 or a suit by Holders of more than 10% in aggregate Principal
Amount of the Securities at the time outstanding.
SECTION 6.12. NOTICE OF DEFAULTS. The Trustee shall, within 90 days after
------------------
the occurrence of any Default, mail to all Holders of Securities, as the names
and addresses of such Holders appear on the books of registry of the Company,
notice of all Defaults of which a Responsible Officer of the Trustee shall be
actually aware, unless such Defaults shall have been cured or waived before the
giving of such notice; provided that, except in the case of a Default described
--------
in Section 6.01(1) or 6.01(2), the Trustee shall be protected in withholding
such notice if and so long as the board of directors, the executive committee,
or a trust committee of directors or Responsible Officers of the
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Trustee in good faith determines that the withholding of such notice is in the
interests of the Holders of Securities.
SECTION 6.13. WAIVER OF STAY, EXTENSION OR USURY LAWS. The Company
---------------------------------------
covenants (to the extent it may lawfully do so) that it shall not at any time
insist upon, or plead, or in any manner whatsoever claim or take the benefit or
advantage of, any stay or extension law or any usury or other law, wherever
enacted, now or at any time hereafter in force, that would prohibit or forgive
the Company from paying all or any portion of the Principal Amount, Issue Price,
accrued Original Issue Discount, Redemption Price, Purchase Price, Change in
Control Purchase Price or Conversion Payment in respect of the Securities, or
any interest on any such amounts, as contemplated herein, or that may affect the
covenants or the performance of this Indenture or the Securities; 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 VII.
THE TRUSTEE
SECTION 7.01. CERTAIN DUTIES AND RESPONSIBILITIES.
-----------------------------------
(a) Except during the continuance of an Event of Default,
(1) the Trustee shall undertake to perform such duties and only
such duties as are specifically set forth in this Indenture, and no implied
covenants or obligations shall be read into this Indenture against the
Trustee; and
(2) in the absence of bad faith on its part, the Trustee may
conclusively rely, as to the truth of the statements and the correctness of
the opinions expressed therein, upon certificates or opinions furnished to
the Trustee and conforming to the requirements of this Indenture; but in
the case of any such certificates or opinions that by any provision hereof
are specifically required to be furnished to the Trustee, the Trustee shall
be under a duty to examine the same to determine whether or not they
conform to the requirements of this Indenture (but need not confirm or
investigate the accuracy of mathematical calculations or other facts stated
therein).
55
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(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 aggregate Principal
Amount of the outstanding securities of any series, determined as provided
in Section 6.05, 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.
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.
SECTION 7.02. NOTICE OF DEFAULTS. If a default occurs and is continuing
------------------
and if it is actually known to a Responsible Officer of 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 7.03. CERTAIN RIGHTS OF TRUSTEE. Subject to the provisions of
-------------------------
Section 7.01:
(1) the Trustee may conclusively 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,
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debenture, note, other evidence of indebtedness or other paper or document
believed by it to be genuine and to have been signed or presented by the
proper party or parties;
(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 of its selection and the
advice of such counsel or any Opinion of Counsel shall be full and complete
authorization and protection in respect of any action taken, 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 at the sole cost of the Company
and shall incur no liability or additional liability of any kind by reason
of such inquiry or investigation;
(7) the Trustee may execute any of the trusts or powers hereunder
or perform any duties hereunder either
57
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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;
(8) the Trustee shall not be liable for any action taken,
suffered, or omitted to be taken by it in good faith and reasonably
believed by it to be authorized or within the discretion or rights or
powers conferred upon it by this Indenture; and
(9) the Trustee shall not be deemed to have notice of any Event
of Default unless a Responsible Officer of the Trustee has actual knowledge
thereof or unless written notice of any event which is in fact such a
default is received by the Trustee at the Corporate Trust Office of the
Trustee, and such notice references the Securities and this Indenture.
SECTION 7.04. 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 of the proceeds from
the Securities.
SECTION 7.05. MAY HOLD SECURITIES. The Trustee, any Authenticating Agent,
-------------------
any Paying Agent, any Registrar or any other agent of the Company, in its
individual or any other capacity, may become the owner or pledgee of Securities
and, subject to Sections 7.08 and 7.13, may otherwise deal with the Company with
the same rights it would have if it were not Trustee, Authenticating Agent,
Paying Agent, Registrar or such other agent.
SECTION 7.06. 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 in writing with the
Company.
SECTION 7.07. COMPENSATION AND REIMBURSEMENT. The Company agrees
------------------------------
(1) to pay to the Trustee from time to time compensation agreed
to in writing with the Trustee for all
58
<PAGE>
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 each of the Trustee or any predecessor Trustee
for, and to hold it harmless against, any and all loss, liability, damages,
claim or expense, including taxes (other than taxes based on the income of
the Trustee) 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.
When the Trustee incurs expenses or renders services in connection
with an Event of Default specified in Section 6.01(4) or Section 6.01(5),
the expenses (including the reasonable charges and expenses of its counsel)
and the compensation for the services are intended to constitute expenses
of administration under any applicable Federal or state bankruptcy,
insolvency or other similar law.
The provisions of this Section shall survive termination of this
Indenture.
SECTION 7.08. DISQUALIFICATION; CONFLICTING INTERESTS. If the Trustee has
---------------------------------------
or shall acquire a conflicting interest within the meaning of the TIA, 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 TIA 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 SEC the application referred to in the second to the last
paragraph of Section 310(b) of the TIA or any equivalent successor provision.
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SECTION 7.09. CORPORATE TRUSTEE REQUIRED; ELIGIBILITY. The Trustee shall
---------------------------------------
at all times satisfy the requirements of TIA Sections 310(a)(1) and 310(b). The
Trustee shall have combined capital and surplus of at least $50,000,000. If the
Trustee publishes reports of condition at least annually, then for the purposes
of this Section, the combined capital and surplus of the Trustee 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
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 requirements of the TIA or the provisions of this Section,
it shall resign immediately in the manner and with the effect hereinafter
specified in this Article.
SECTION 7.10. 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 7.11.
The Trustee may resign at any time by giving written notice thereof to
the Company. If the instrument of acceptance by a successor Trustee required by
Section 7.11 shall not have been delivered to the Trustee within 30 days after
the giving of such notice of resignation, the resigning Trustee may petition, at
the expense of the Company, any court of competent jurisdiction for the
appointment of a successor Trustee.
The Holders of a majority in aggregate Principal Amount of the
outstanding Securities may remove the Trustee at any time by so notifying the
Trustee and the Company. If the instrument of acceptance by a successor Trustee
required by Section 7.11 shall not have been delivered to the Trustee within 30
days after the giving of such notice of removal, the Trustee being removed may
petition, at the expense of the Company, any court of competent jurisdiction for
the appointment of a successor Trustee.
If at any time:
(1) the Trustee shall fail to comply with Section 7.08 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 7.09 and
shall fail to resign after written request therefor by the Company or by
any such Holder, or
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(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, or (B) subject to Section 6.11, 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 and the appointment of a successor
Trustee.
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, the Company,
by a board resolution, shall promptly appoint a successor Trustee (it being
understood that any such successor Trustee may be appointed) and shall comply
with the applicable requirements of Section 7.11. If, within one year after such
resignation, removal or incapability, or the occurrence of such vacancy, a
successor Trustee shall be appointed by the Holders of a majority in aggregate
Principal Amount of the outstanding Securities after notifying the retiring
Trustee and the Company, the successor Trustee so appointed shall, forthwith
upon its acceptance of such appointment in accordance with the applicable
requirements of Section 7.11, become the successor Trustee and to that extent
supersede the successor Trustee appointed by the Company. If no successor
Trustee shall have been so appointed by the Company or the Holders and accepted
appointment in the manner required by Section 7.11, any Holder who has been a
bona fide Holder of a Security for at least six months may, on behalf of himself
and all others similarly situated, petition any court of competent jurisdiction
for the appointment of a successor Trustee.
The Company shall give notice of each resignation and each removal of
the Trustee and each appointment of a successor Trustee to all Holders of
Securities of such series. Each notice shall include the name of the successor
Trustee and the address of its Corporate Trust Office.
SECTION 7.11. ACCEPTANCE OF APPOINTMENT BY SUCCESSOR. In case of the
--------------------------------------
appointment hereunder of a successor Trustee, 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 (Pounds) the retiring Trustee shall become effective and
such successor Trustee, without any further act, deed or conveyance, shall
become vested with all the rights,
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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.
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 7.12. 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 7.13. 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 TIA regarding the collection of claims against the Company (or any such
other obligor).
SECTION 7.14. APPOINTMENT OF AUTHENTICATING AGENT. The Trustee may
-----------------------------------
appoint an Authenticating Agent with respect to the Securities that shall be
authorized to act on behalf of the Trustee to authenticate Securities issued
upon original issue and
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upon exchange, registration of transfer or partial redemption thereof or
pursuant to Section 2.07, and Securities so authenticated shall be entitled to
the benefits of this Indenture and shall be valid and obligatory for all
purposes as if authenticated by the Trustee hereunder. Wherever reference is
made in this Indenture to the authentication and delivery of Securities by the
Trustee or the Trustee's certificate of authentication, such reference shall be
deemed to include authentication and delivery on behalf of the Trustee by an
Authenticating Agent and a certificate of authentication executed on behalf of
the Trustee by an Authenticating Agent. Each Authenticating Agent shall be
acceptable to the Company and shall at all times be a corporation organized and
doing business under the laws of the United States of America, any State thereof
or the District of Columbia, authorized under such laws to act as Authenticating
Agent, having a combined capital and surplus of not less than $50,000,000 and
subject to supervision or examination by Federal or state authority. If such
Authenticating Agent publishes reports of condition at least annually, pursuant
to law or to the requirements of said supervising or examining authority, then
for the purposes of this Section, the combined capital and surplus of such
Authenticating Agent shall be deemed to be its combined capital and surplus as
set forth in its most recent report of condition so published. If at any time an
Authenticating Agent shall cease to be eligible in accordance with the
provisions of this Section, such Authenticating Agent shall resign immediately
in the manner and with the effect specified in this Section.
Any corporation into which an Authenticating Agent may be merged or
converted or with which it may be consolidated, or any corporation resulting
from any merger, conversion or consolidation to which such Authenticating Agent
shall be a party, or any corporation succeeding to the corporate agency or
corporate trust business of an Authenticating Agent, shall continue to be an
Authenticating Agent, provided such corporation shall be otherwise eligible
under this Section, without the execution or filing of any paper or any further
act on the part of the Trustee or the Authenticating Agent.
An Authenticating Agent may resign at any time by giving written
notice thereof to the Trustee and to the Company. The Trustee 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
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<PAGE>
Securities 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 is made pursuant to this Section, the Securities may
have endorsed thereon an alternative certificate of authentication in the
following form:
This is one of the Securities designated therein referred to in the
within-mentioned Indenture.
CITIBANK, N.A., as Trustee
By:
------------------------------
As Authenticating Agent
By:
------------------------------
Authorized Signatory
SECTION 7.15. TRUSTEE'S APPLICATION FOR INSTRUCTIONS FROM THE COMPANY.
-------------------------------------------------------
Any application by the Trustee for written instructions from the Company may, at
the option of the Trustee, set forth in writing any action proposed to be taken
or omitted by the Trustee under this Indenture and the date on and/or after
which such action shall be taken or such omission shall be effective. The
Trustee shall not be liable for any action taken by, or omission of, the Trustee
in accordance with a proposal included in such application on or after the date
specified in such application (which date shall not be less than three Business
Days after the date any officer of the Company actually receives such
application, unless any such officer shall have consented in writing to any
earlier date) unless prior to taking any such action (or the effective date in
the case of an omission), the Trustee shall have received written instructions
in response to such application specifying the action to be taken or omitted.
SECTION 7.16. REPORTS BY TRUSTEE. (a) The Trustee shall transmit to
------------------
Holders such reports concerning the Trustee and its
64
<PAGE>
actions under this Indenture as may be required pursuant to the TIA at the times
and in the manner provided pursuant thereto. If required by Section 313(a) of
the TIA, the Trustee shall, within sixty days after each January 1 following the
date of this Indenture, deliver to Holders a brief report, dated as of January
1, which complies with the provisions of such Section 313(a).
(b) A copy of each such report shall, at the time of such transmission to
Holders, be filed by the Trustee with each stock exchange, if any, upon which
the Securities are listed, with the SEC and with the Company. The Company will
promptly notify the Trustee when the Securities are listed on any stock
exchange.
ARTICLE VIII.
DISCHARGE OF INDENTURE
SECTION 8.01. DISCHARGE OF LIABILITY ON SECURITIES. When (i) the Company
------------------------------------
delivers to the Trustee all outstanding Securities (other than Securities
replaced pursuant to Section 2.07) for cancellation or (ii) all outstanding
Securities have become due and payable and the Company deposits with the Trustee
cash or, if expressly permitted by the terms hereof, securities sufficient to
pay at Stated Maturity the Principal Amount of all outstanding Securities (other
than Securities replaced pursuant to Section 2.07), and if in either case the
Company pays all other sums payable hereunder by the Company (including, without
limitation, sums payable by delivery of shares of Series A Common Stock pursuant
to Section 3.08), then this Indenture shall, subject to Section 7.07, cease to
be of further effect. The Trustee shall join in the execution of a document
prepared by the Company acknowledging satisfaction and discharge of this
Indenture on demand of the Company accompanied by an Officers' Certificate and
Opinion of Counsel and at the cost and expense of the Company.
SECTION 8.02. REPAYMENT TO THE COMPANY. The Trustee and the Paying Agent
------------------------
shall return to the Company upon written request any money or securities held by
them for the payment of any amount with respect to the Securities that remains
unclaimed for two years; provided, however, that the Trustee or such Paying
-------- -------
Agent, before being required to make any such return, may, at the expense of the
Company, cause to be published once in The Wall Street Journal or another daily
-----------------------
newspaper of national circulation or mail to each such Holder notice that such
money or securities remains unclaimed and that, after a date specified therein,
which shall not be less than 30 days from the date of such mailing, any
unclaimed money or securities then remaining will be returned to the Company.
After return to the Company, Holders entitled to the money or securities must
look to the Company for payment as
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general creditors unless an applicable abandoned property law designates another
person, and the Trustee and the Paying Agent shall have no further liability
with respect to such money or securities for that period commencing after the
return thereof.
ARTICLE IX.
AMENDMENTS
SECTION 9.01. WITHOUT CONSENT OF HOLDERS. The Company and the Trustee may
--------------------------
amend this Indenture or the Securities without the consent of any
Securityholder:
(1) to cure any ambiguity, defect or inconsistency; provided, however,
-------- -------
that such amendment does not materially adversely affect the rights of any
Securityholder;
(2) to comply with Article V or Section 11.14;
(3) to provide for uncertificated Securities in addition to or in
place of certificated Securities so long as such uncertificated Securities
are in registered form for purposes of the Internal Revenue Code of 1986,
as amended;
(4) to make any change that does not adversely affect the rights of
any Securityholder;
(5) to add to the covenants or obligations of the Company hereunder or
to surrender any right, power or option herein conferred upon the Company;
or
(6) to make any change to comply with the TIA, or any amendment
thereafter, or any requirement of the SEC in connection with the
qualification of this Indenture under the TIA or any amendment thereof.
SECTION 9.02. WITH CONSENT OF HOLDERS. With the written consent of the
-----------------------
Holders of at least a majority in aggregate Principal Amount of the Securities
at the time outstanding, the Company and the Trustee may amend this Indenture or
the Securities. However, without the consent of each Securityholder affected,
an amendment or supplement to this Indenture or the Securities may not:
(1) make any change to the Principal Amount of Securities whose
Holders must consent to an amendment;
(2) make any change to the rate of accrual in connection with
Original Issue Discount, reduce the rate of interest referred to in
paragraph 1 of the Securities,
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reduce the rate of interest referred to in Section 12.01 upon the
occurrence of a Tax Event or extend the time for payment of accrued
Original Issue Discount or interest, if any, on any Security;
(3) reduce the Principal Amount or the Issue Price of or extend the
Stated Maturity of any Security;
(4) reduce the amount of cash payable in respect of conversion upon
the Company's election to pay cash with respect thereto, the Redemption
Price, Purchase Price or Change in Control Purchase Price of any Security
or extend the date on which the Purchase Price or Change in Control
Purchase Price of any Security is payable;
(5) make any Security payable in money or securities other than that
stated in the Security;
(6) make any change in Article X that adversely affects the rights of
any Securityholder;
(7) make any change in Section 6.04 or this Section 9.02, except to
increase any percentage referred to therein, or make any change in Section
6.07;
(8) make any change that adversely affects the right to convert any
Security (including the right to receive cash in lieu of shares of Series A
Common Stock);
(9) make any change that adversely affects the right to require the
Company to purchase the Securities in accordance with the terms thereof and
this Indenture (including the right to receive cash if the Company has
elected to pay cash upon such purchase);
(10) make any change to the provisions of this Indenture relating to
the purchase of Securities at the option of the Holder pursuant to Section
3.08 or 3.09 which change would result in a violation of applicable federal
or state securities laws (including positions of the SEC under applicable
no-action letters), whether as a result of the exercise or performance of
any rights or obligations under such provisions or otherwise;
(11) modify the provisions of this Indenture relating to the
subordination of the Securities in a manner adverse to the Holders of the
Securities; or
(12) impair the right to institute suit for the enforcement of any
payment with respect to, or conversion of, the Securities.
<PAGE>
It shall not be necessary for the consent of the Holders under this Section
9.02 to approve the particular form of any proposed amendment, but it shall be
sufficient if such consent approves the substance thereof.
An amendment under this Section 9.02 or Section 9.01 may not make any
change that adversely affects the rights under Article X of any holder of Senior
Indebtedness then outstanding unless the requisite holders of such Senior
Indebtedness consent to such change pursuant to the terms of such Senior
Indebtedness.
After an amendment under this Section 9.02 becomes effective, the Company
shall mail to each Holder a notice briefly describing the amendment.
SECTION 9.03. COMPLIANCE WITH TRUST INDENTURE ACT. Every supplemental
-----------------------------------
indenture executed pursuant to this Article shall comply with the TIA as then in
effect.
SECTION 9.04. REVOCATION AND EFFECT OF CONSENTS, WAIVERS AND ACTIONS.
------------------------------------------------------
Until an amendment or waiver becomes effective, a consent to it or any other
action by a Holder of a Security hereunder is a continuing consent by the Holder
and every subsequent Holder of that Security or portion of the Security that
evidences the same obligation as the consenting Holder's Security, even if
notation of the consent, waiver or action is not made on the Security. However,
any such Holder or subsequent Holder may revoke the consent, waiver or action as
to such Holder's Security or portion of the Security if the Trustee receives the
notice of revocation before the date the amendment, waiver or action becomes
effective. After an amendment, waiver or action becomes effective, it shall bind
every Securityholder, except as provided in Section 9.02.
SECTION 9.05. NOTATION ON OR EXCHANGE OF SECURITIES. Securities
-------------------------------------
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 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.
SECTION 9.06. TRUSTEE TO SIGN SUPPLEMENTAL INDENTURES. The Trustee shall
---------------------------------------
sign any supplemental indenture authorized pursuant to this Article IX if the
amendment does not adversely affect the rights, duties, liabilities or
immunities of the Trustee. If it does, the Trustee may, but need not, sign it.
In signing such amendment the Trustee shall be entitled to receive, and (subject
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to the provisions of Section 7.04) shall be fully protected in relying upon, an
Officers' Certificate and an Opinion of Counsel stating that such amendment is
authorized or permitted by this Indenture.
SECTION 9.07. 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.
ARTICLE X.
SUBORDINATION
SECTION 10.01. SECURITIES SUBORDINATE TO SENIOR INDEBTEDNESS. The Company
---------------------------------------------
covenants and agrees, and each Holder of a Security, by his acceptance thereof,
likewise covenants and agrees, that, to the extent and in the manner hereinafter
set forth in this Article, the indebtedness represented by the Securities and
the payment of the Principal Amount, Issue Price, accrued Original Issue
Discount, Redemption Price, cash in respect of Purchase Price, cash in respect
of a conversion, Change in Control Purchase Price and interest, if any, in
respect of each and all of the Securities are hereby expressly made subordinate
and subject in right of payment to the prior payment in full of all Senior
Indebtedness.
SECTION 10.02. PAYMENT OVER OF PROCEEDS UPON DISSOLUTION, ETC. Upon any
----------------------------------------------
distribution of assets of the Company in the event of
(a) any insolvency or bankruptcy case or proceeding, or any
receivership, liquidation, reorganization or other similar case or
proceeding in connection therewith, relative to the Company or to its
creditors, as such, or to its assets, or
(b) any liquidation, dissolution or other winding up of the Company,
whether voluntary or involuntary and whether or not involving insolvency or
bankruptcy, or
(c) any assignment for the benefit of creditors or any other
marshalling of assets and liabilities of the Company,
then and in any such event the holders of Senior Indebtedness shall be entitled
to receive
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(1) payment in full of all amounts due or to become due on or in
respect of all Senior Indebtedness, or provision shall be made for such
payment in money or money's worth, before the Holders of the Securities are
entitled to receive any payment (other than Permitted Junior Securities) on
account of the Principal Amount, Issue Price, accrued Original Issue
Discount, Redemption Price, cash in respect of the Purchase Price, cash in
respect of a conversion, Change in Control Purchase Price or interest, if
any, in respect of the Securities, and
(2) any payment or distribution of any kind or character, whether in
cash, property or securities (other than Permitted Junior Securities),
which may be payable or deliverable in respect of the Securities in any
such case, proceeding, dissolution, liquidation or other winding up or
event, including any such payment or distribution which may be payable or
deliverable by reason of the payment of any other indebtedness of the
Company being subordinated to the payment of the Securities.
In the event that, notwithstanding the foregoing provisions of this
Section, the Trustee or the Holder of any Security shall have received any
payment or distribution of assets of the Company of any kind or character,
whether in cash, property or securities (other than Permitted Junior
Securities), including any such payment or distribution which may be payable or
deliverable by reason of the payment of any other indebtedness of the Company
being subordinated to the payment of the Securities, before all Senior
Indebtedness is paid in full or payment thereof provided for, and if such fact
shall, at or prior to the time of such payment or distribution, have been made
known to the Trustee or, as the case may be, such Holder, then in such event
such payment or distribution shall be paid over or delivered forthwith to the
trustee in bankruptcy, receiver, liquidating trustee, Custodian, assignee, agent
or other Person making payment or distribution of assets of the Company for
application to the payment of all Senior Indebtedness remaining unpaid, to the
extent necessary to pay all Senior Indebtedness in full, after giving effect to
any concurrent payment or distribution to or for the holders of Senior
Indebtedness.
The consolidation of the Company with, or the merger of the Company into,
another person or the liquidation or dissolution of the Company following the
conveyance or transfer of its properties and assets substantially as an entirety
to another person upon the terms and conditions set forth in Article V shall not
be deemed a dissolution, winding up, liquidation, reorganization, assignment for
the benefit of creditors or marshalling of assets and liabilities of the Company
for the purposes of this Section if the person formed by such consolida-
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tion or into which the Company is merged or the person which acquires by
conveyance or transfer such properties and assets substantially as an entirety,
as the case may be, shall as part of such consolidation, merger, conveyance or
transfer, comply with the conditions set forth in Article V.
SECTION 10.03. ACCELERATION OF SECURITIES. In the event that any
--------------------------
Securities are declared due and payable before their Stated Maturity pursuant to
Section 6.02, then and in such event the Company shall promptly notify holders
of Senior Indebtedness of such acceleration. The Company may not pay the
Securities until the earlier of (i) the passage of 120 or more days have passed
after such acceleration occurs or (ii) the payment in full of all Senior
Indebtedness, and may thereafter pay the Securities if this Article X permits
the payment at that time.
In the event that, notwithstanding the foregoing, the Company shall make
any payment to the Trustee or the Holder of any Securities prohibited by the
foregoing provisions of this Section 10.03, and if such facts shall, at or prior
to the time of such payment, have been made known to the Trustee or, as the case
may be, such Holder, then and in such event such payment shall be paid over and
delivered forthwith to the Company by or on behalf of the person holding such
payment for the benefit of the holders of Senior Indebtedness.
The provisions of this Section 10.03 shall not apply to any payment with
respect to which Section 10.02 would be applicable.
SECTION 10.04. DEFAULT ON SENIOR INDEBTEDNESS. The Company may not make a
------------------------------
Conversion Payment or make any payment of the Principal Amount at Stated
Maturity, Issue Price, accrued Original Issue Discount, Redemption Price, Change
in Control Purchase Price or interest, if any, in respect of the Securities nor
may the Company pay cash with respect to the Purchase Price or acquire any
Securities for cash or property (except as otherwise provided by Article XI and
other than for Capital Stock of the Company) if:
(1) a payment default on any Senior Indebtedness has occurred and is
continuing beyond any applicable grace period with respect thereto; or
(2) a default (other than a default referred to in the preceding
clause (1)) on any Senior Indebtedness occurs and is continuing that
permits holders of such Senior Indebtedness to accelerate the maturity
thereof and the default is the subject of judicial proceedings or the
Company receives a notice of default thereof from any person who may give
such notice pursuant to the instrument evidencing or document governing
such Senior Indebtedness.
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If the Company receives any such notice, then a similar notice received
within nine months thereafter relating to the same default on the same
issue of Senior Indebtedness shall not be effective for purposes of this
Section 10.04.
The Company may resume payment on the Securities and may acquire Securities
if and when:
(a) the default referred to above is cured or waived; or
(b) in the case of a default referred to in clause (2) of the
preceding paragraph, 179 or more days pass after the receipt by the
Company of the notice described in clause (2) above; and
this Article X otherwise permits the payment or acquisition at that time.
In the event that, notwithstanding the foregoing, the Company shall make
any payment to the Trustee or the Holder of any Security prohibited by the
foregoing provisions of this Section, and if such fact shall then have been made
known to the Trustee or, as the case may be, such Holder, then and in such event
such payment shall (to the extent permitted by law) be paid over and delivered
forthwith to the Company by or on behalf of the person holding such payment for
the benefit of the holders of the Senior Indebtedness.
Nothing contained in this Article X or elsewhere in this Indenture or in
any of the Securities shall prevent the conversion by a Holder of any Securities
into shares of Series A Common Stock in accordance with the provisions for
conversion of such Securities set forth in this Indenture, including the payment
of cash in lieu of fractional shares of Series A Common Stock in accordance with
Article XI, or in any of such Securities in the event of an occurrence of the
events described in this Section 10.04.
The provisions of this Section shall not apply to any payment with respect
to which Section 10.02 would be applicable.
SECTION 10.05. PAYMENT PERMITTED IF NO DEFAULT. Nothing contained in this
-------------------------------
Article or elsewhere in this Indenture or in any of the Securities shall prevent
(a) the Company, at any time except during the pendency of any case, proceeding,
dissolution, liquidation or other winding up, assignment for the benefit of
creditors or other marshalling of assets and liabilities of the Company referred
to in Section 10.02 or under the conditions described in Section 10.03 or 10.04,
from making the Conversion Payment or from making payments at any time of
Principal Amount,
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Issue Price, accrued Original Issue Discount, Redemption Price, Purchase Price,
Change in Control Purchase Price or interest, if any, as the case may be, in
respect of the Securities, or (b) the application by the Trustee of any money
deposited with it hereunder to the Conversion Payment or payment of or on
account of the Principal Amount, Issue Price, accrued Original Issue Discount,
Redemption Price, Purchase Price, Change in Control Purchase Price or interest,
if any, as the case may be, in respect of the Securities or the retention of
such payment by the Holders of the Securities, if, at the time of such
application by the Trustee, the Trustee did not have actual knowledge that such
payment would have been prohibited by the provisions of this Article.
SECTION 10.06. SUBROGATION TO RIGHTS OF HOLDERS OF SENIOR INDEBTEDNESS.
-------------------------------------------------------
Subject to payment in full of all Senior Indebtedness, the Holders of the
Securities shall be subrogated to the extent of the payments or distributions
made to the holders of such Senior Indebtedness pursuant to the provisions of
this Article (equally and ratably with the holders of all indebtedness of the
Company which by its express terms is subordinated to indebtedness of the
Company to substantially the same extent as the Securities are subordinated and
is entitled to like rights of subrogation) to the rights of the holders of such
Senior Indebtedness to receive payments or distributions of cash, property and
securities applicable to the Senior Indebtedness until the Principal Amount,
Issue Price, accrued Original Issue Discount, Redemption Price, Purchase Price,
Conversion Payment, Change in Control Purchase Price or interest, if any, as the
case may be, in respect of the Securities shall be paid in full. For purposes
of such subrogation, no payments or distributions to the holders of the Senior
Indebtedness of any cash, property or securities to which the Holders of the
Securities or the Trustee would be entitled except for the provisions of this
Article, and no payments over pursuant to the provisions of this Article to the
holders of Senior Indebtedness by Holders of the Securities or the Trustee,
shall, as among the Company, its creditors other than holders of Senior
Indebtedness and the Holders of the Securities, be deemed to be a payment or
distribution by the Company to or on account of the Senior Indebtedness.
SECTION 10.07. PROVISIONS SOLELY TO DEFINE RELATIVE RIGHTS. The
-------------------------------------------
provisions of this Article are and are intended solely for the purpose of
defining the relative rights of the Holders of the Securities, on the one hand,
and the holders of Senior Indebtedness, on the other hand. Nothing contained in
this Article or elsewhere in this Indenture or in the Securities is intended to
or shall (a) impair, as among the Company, its creditors other than holders of
Senior Indebtedness and the Holders of the Securities, the obligation of the
Company, which is absolute and unconditional (and which, subject to the rights
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under this Article of the holders of Senior Indebtedness, is intended to rank
equally with all other general obligations of the Company), to pay to the
Holders of the Securities the Principal Amount, Issue Price, accrued Original
Issue Discount, Redemption Price, Purchase Price, Conversion Payment, Change in
Control Purchase Price or interest, if any, as the case may be, in respect of
the Securities as and when the same shall become due and payable in accordance
with the terms of the Securities and this Indenture; or (b) affect the relative
rights against the Company of the Holders of the Securities and creditors of the
Company other than the holders of Senior Indebtedness; or (c) prevent the
Trustee or the Holder of any Security from exercising all remedies otherwise
permitted by applicable law upon default under this Indenture, subject to the
rights, if any, under this Article of the holders of Senior Indebtedness to
receive cash, property and securities otherwise payable or deliverable to the
Trustee or such Holder.
SECTION 10.08. TRUSTEE TO EFFECTUATE SUBORDINATION. Each Holder of a
-----------------------------------
Security by his acceptance thereof authorizes and directs the Trustee on his
behalf to take such action as may be necessary or appropriate to effectuate the
subordination provided in this Article and appoints the Trustee his attorney-in-
fact for any and all such purposes.
SECTION 10.09. NO WAIVER OF SUBORDINATION PROVISIONS. No right of any
-------------------------------------
present or future holder of any Senior Indebtedness to enforce subordination as
herein provided shall at any time in any way be prejudiced or impaired by any
act or failure to act on the part of the Company or by any act or failure to
act, in good faith, by any such holder, or by any non-compliance by the Company
with the terms, provisions and covenants of this Indenture, regardless of any
knowledge thereof any such holder may have or be otherwise charged with.
Without in any way limiting the generality of the foregoing paragraph, the
holders of Senior Indebtedness may, at any time and from time to time, without
the consent of or notice to the Trustee or the Holders of the Securities,
without incurring responsibility to the Holders of the Securities and without
impairing or releasing the subordination provided in this Article or the
obligations hereunder of the Holders of the Securities to the holders of Senior
Indebtedness, do any one or more of the following: (i) change the manner, place
or terms of payment or extend the time of payment of, or renew or alter, Senior
Indebtedness, or otherwise amend or supplement in any manner Senior Indebtedness
or any instrument evidencing the same or any agreement under which Senior
Indebtedness is outstanding; (ii) sell, exchange, release or otherwise deal with
any property pledged, mortgaged or otherwise securing Senior Indebtedness; (iii)
release any Person liable in any manner for the collection
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of Senior Indebtedness; and (iv) exercise or refrain from exercising any rights
against the Company and any other Person.
SECTION 10.10. NOTICE TO TRUSTEE. The Company shall give prompt written
-----------------
notice to the Trustee of any fact known to the Company which would prohibit the
making of any payment to or by the Trustee in respect of the Securities.
Notwithstanding the provisions of this Article or any other provision of this
Indenture, the Trustee shall not be charged with knowledge of the existence of
any facts which would prohibit the making of any payment to or by the Trustee in
respect of the Securities, unless and until the Trustee shall have received
written notice thereof from the Company or a holder of Senior Indebtedness or
from any trustee therefor; and, prior to the receipt of any such written notice,
the Trustee shall be entitled in all respects to assume that no such facts
exist; provided, however, that if a Responsible Officer of the Trustee shall not
-------- -------
have received, at least three Business Days prior to the date upon which by the
terms hereof any such money may become payable for any purpose (including,
without limitation, the payment of the Principal Amount at Stated Maturity,
Issue Price, accrued Original Issue Discount, Redemption Price, Purchase Price,
Conversion Payment, Change in Control Purchase Price or interest if any, as the
case may be, in respect of any Security), the notice with respect to such money
provided for in this Section 10.10, then, anything herein contained to the
contrary notwithstanding, the Trustee shall have full power and authority to
receive such money and to apply the same to the purpose for which such money was
received and shall not be affected by any notice to the contrary which may be
received by it within three Business Days prior to such date.
The Trustee shall be entitled to rely on the delivery to it of a written
notice by a person representing himself to be a holder of Senior Indebtedness
(or a trustee therefor) to establish that such notice has been given by a holder
of Senior Indebtedness (or a trustee therefor). In the event that the Trustee
determines in good faith that further evidence is required with respect to the
right of any person as a holder of Senior Indebtedness to participate in any
payment or distribution pursuant to this Article, the Trustee may request such
person to furnish evidence to the reasonable satisfaction of the Trustee as to
the amount of Senior Indebtedness held by such person, the extent to which such
person is entitled to participate in such payment or distribution and any other
facts pertinent to the rights of such person under this Article, and if such
evidence is not furnished, the Trustee may defer any payment to such Person
pending judicial determination as to the right of such Person to receive such
payment.
SECTION 10.11. RELIANCE ON JUDICIAL ORDER OR CERTIFICATE OF LIQUIDATING
--------------------------------------------------------
AGENT. Upon any payment or distribution of assets of
- -----
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the Company referred to in this Article, the Trustee and the Holders of the
Securities shall be entitled to rely upon any order or decree entered by any
court of competent jurisdiction in which such insolvency, bankruptcy,
receivership, liquidation, reorganization, dissolution, winding up or similar
case or proceeding is pending, or a certificate of the Trustee in bankruptcy,
liquidating trustee, Custodian, receiver, assignee for the benefit of creditors,
agent or other Person making such payment or distribution, delivered to the
Trustee or to the Holders of Securities, for the purpose of ascertaining the
persons entitled to participate in such payment or distribution, the holders of
the Senior Indebtedness and other indebtedness of the Company, the amount
thereof or payable thereon, the amount or amounts paid or distributed thereon
and all other facts pertinent thereto or to this Article.
SECTION 10.12. TRUSTEE NOT FIDUCIARY FOR HOLDERS OF SENIOR INDEBTEDNESS.
--------------------------------------------------------
The Trustee shall not be deemed to owe any fiduciary duty to the holders of
Senior Indebtedness and shall not be liable to any such holders if it shall in
good faith mistakenly pay over or distribute to Holders of Securities or to the
Company or to any other person cash, property or securities to which any holders
of Senior Indebtedness shall be entitled by virtue of this Article or otherwise.
The Trustee shall not be charged with knowledge of the existence of Senior
Indebtedness or of any facts that would prohibit any payment hereunder or that
would permit the resumption of any such payment unless a Responsible Officer of
the Trustee shall have received notice to that effect at the address of the
Trustee set forth in Section 13.02. With respect to the holders of Senior
Indebtedness, the Trustee undertakes to perform or to observe only such of its
covenants or obligations as are specifically set forth in this Article X and no
implied covenants or obligations with respect to holders of Senior Indebtedness
shall be read into this Indenture against the Trustee.
SECTION 10.13. RIGHTS OF TRUSTEE AS HOLDER OF SENIOR INDEBTEDNESS;
---------------------------------------------------
PRESERVATION OF TRUSTEE'S RIGHTS. The Trustee in its individual capacity shall
- --------------------------------
be entitled to all the rights set forth in this Article with respect to any
Senior Indebtedness which may at any time be held by it, to the same extent as
any other holder of Senior Indebtedness, and nothing in this Indenture shall
deprive the Trustee of any of its rights as such holder.
Nothing in this Article shall apply to claims of, or payments to, the
Trustee under or pursuant to Section 7.07.
SECTION 10.14. ARTICLE X APPLICABLE TO PAYING AGENTS. In case at any time
-------------------------------------
any Paying Agent other than the Trustee shall have been appointed by the Company
and be then acting hereunder,
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the term "Trustee" as used in this Article shall in such case (unless the
context otherwise requires) be construed as extending to and including such
Paying Agent within its meaning as fully for all intents and purposes as if such
Paying Agent were named in this Article in addition to or in place of the
Trustee; provided, however, that Sections 10.10 and 10.12 shall not apply to the
-------- -------
Company or any Affiliate of the Company if it or such Affiliate acts as Paying
Agent.
ARTICLE XI.
CONVERSION
SECTION 11.01. CONVERSION PRIVILEGE. A Holder of a Security may convert
--------------------
such Security into shares of Series A Common Stock at any time during the period
stated in paragraph 9 of the Securities. The number of shares of Series A
Common Stock issuable upon conversion of a Security, for each $1,000 of
Principal Amount thereof (the "Conversion Rate"), shall be that amount set forth
in paragraph 9 in the Securities, subject to adjustment as herein set forth.
The Holders' right to convert Securities into shares of Series A Common
Stock is subject to the Company's right to elect to instead pay such Holder the
amount of cash set forth in the next succeeding sentence, in lieu of delivering
such shares of Series A Common Stock; provided, however, that if such payment of
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cash is not permitted pursuant to the provisions of this Indenture or the
provisions of any other agreement or instrument to which the Company is a party
or by which it is bound or otherwise, the Company shall deliver shares of Series
A Common Stock (and cash in lieu of fractional shares of Series A Common Stock)
in accordance with this Article XI, whether or not the Company has delivered a
notice pursuant to Section 11.02 to the effect that the Securities would be paid
in cash. The amount of cash to be paid pursuant to Section 11.02 for each per
$1,000 Principal Amount of a Security upon conversion shall be equal to the Sale
Price of a share of Common Stock on the Trading Day immediately prior to the
related Conversion Date multiplied by the Conversion Rate in effect on such
Trading Day.
The Company shall not pay cash in lieu of delivering shares of Series A
Common Stock upon the conversion of any Security pursuant to the terms of this
Article XI (other than cash in lieu of fractional shares pursuant to Section
11.03) if there has occurred (prior to, on or after, as the case may be, the
Conversion Date or the date on which the Company delivers its notice of whether
such Security shall be converted into shares of Series A Common Stock or cash
pursuant to Section 11.02) and is continuing an Event of Default (other than a
default in such
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payment on such Securities), provided, however, that this sentence shall not
-------- -------
apply in the event that an Event of Default occurs after such cash is paid.
A Holder may convert a portion of the Principal Amount of a Security if the
portion is $1,000 or an integral multiple of $1,000. Provisions of this
Indenture that apply to conversion of all of a Security also apply to conversion
of a portion of a Security.
"Average Sale Price" means the average of the Sale Prices of the Series A
Common Stock for the shorter of
(i) 30 consecutive Trading Days ending on the last full Trading Day
prior to the Time of Determination with respect to the rights, options,
warrants or distribution in respect of which the Average Sale Price is
being calculated, or
(ii) the period (x) commencing on the date next succeeding the first
public announcement of (a) the issuance of rights, options or warrants or
(b) the distribution, in each case, in respect of which the Average Sale
Price is being calculated and (y) proceeding through the last full trading
day prior to the Time of Determination with respect to the rights, warrants
or distribution in respect of which the Average Sale Price is being
calculated, or
(iii) the period, if any, (x) commencing on the date next succeeding
the Ex-Dividend Time with respect to the next preceding (a) issuance of
rights, warrants, or options or (b) distribution, in each case, for which
an adjustment is required by the provisions of Section 11.06(4), 11.07 or
11.08 and (y) proceeding through the last full Trading Day prior to the
Time of Determination with respect to the rights, warrants, or options or
distribution in respect of which the Average Sale Price is being
calculated.
If the Ex-Dividend Time (or in the case of a subdivision, combination or
reclassification, the effective date with respect thereto) with respect to a
dividend, subdivision, combination or reclassification to which Section
11.06(1), (2), (3) or (5) applies occurs during the period applicable for
calculating "Average Sale Price" pursuant to the definition in the preceding
sentence, "Average Sale Price" shall be calculated for such period in a manner
determined by the Board of Directors to reflect the impact of such dividend,
subdivision, combination or reclassification on the Sale Price of the Series A
Common Stock during such period.
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"Time of Determination" means the time and date of the earlier of (i) the
determination of stockholders entitled to receive rights, warrants, or options
or a distribution, in each case, to which Sections 11.07 and 11.08 apply and
(ii) the time ("Ex-Dividend Time") immediately prior to the commencement of "ex-
dividend" trading for such rights, options, warrants or distribution on the New
York Stock Exchange or such other national or regional exchange or market on
which the shares of the Series A Common Stock are then listed or quoted.
SECTION 11.02. CONVERSION PROCEDURE. To convert a Security a Holder must
--------------------
satisfy the requirements in paragraph 9 of the Securities. The date on which the
Holder satisfies all those requirements is the conversion date (the "Conversion
Date"). Within two Business Days following the Conversion Date, the Company
shall deliver to the Holder, through the Conversion Agent, written notice of
whether such Security shall be converted into shares of Series A Common Stock or
paid in cash. If the Company shall have notified the Holder that such Security
shall be converted into shares of Series A Common Stock, the Company shall
deliver to the Holder no later than the seventh Business Day following the
Conversion Date a certificate for the number of full shares of Series A Common
Stock issuable upon the conversion and cash in lieu of any fractional share
determined pursuant to Section 11.03. Except as provided in Section 11.01, if
the Company shall have notified the Holder that such Security shall be paid in
cash, the Company shall deliver to the Holder surrendering such Security the
amount of cash payable with respect to such Security on the fifth Business Day
following such Conversion Date. Except as provided in Section 11.01, the Company
may not change its election with respect to the consideration to be delivered
upon conversion of a Security once the Company has notified the Holder in
accordance with this paragraph.
The person in whose name the certificate is registered shall be treated as
a stockholder of record on and after the Conversion Date; provided, however,
-------- -------
that no surrender of a Security on any date when the stock transfer books of the
Company shall be closed shall be effective to constitute the person or persons
entitled to receive the shares of Series A Common Stock upon such conversion as
the record holder or holders of such shares of Series A Common Stock on such
date, but such surrender shall be effective to constitute the person or persons
entitled to receive such shares of Series A Common Stock as the record holder or
holders thereof for all purposes at the close of business on the next succeeding
day on which such stock transfer books are open; provided, further, that such
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conversion shall be at the Conversion Rate in effect on the date that such
Security shall have been surrendered for conversion, as if the stock transfer
books of the Company had not been closed. Upon conversion of a
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Security, such person shall no longer be a Holder of such Security.
Holders may surrender a Security for conversion by means of book entry
delivery in accordance with paragraph 9 of the Securities and the regulations of
the applicable book entry facility.
No payment or adjustment will be made for dividends on any Common Stock
except as provided in this Article XI. On conversion of a Security, that portion
of accrued Original Issue Discount (or interest, if the Company has exercised
its option provided for in Section 12.01) attributable to the period from the
Issue Date (or, if the Company has exercised the option provided for in Section
12.01, the later of (x) the date of such exercise and (y) the date on which
interest was last paid) of the Security to the Conversion Date with respect to
the converted Security shall not be cancelled, extinguished or forfeited, but
rather shall be deemed to be paid in full to the Holder thereof through delivery
of the shares of Series A Common Stock (together with the cash payment, if any,
in lieu of fractional shares) or of cash, as the case may be, in exchange for
the Security being converted pursuant to the provisions hereof.
If the Holder converts more than one Security at the same time, the number
of shares of Series A Common Stock issuable upon the conversion shall be
computed based on the total Principal Amount of the Securities converted.
Upon surrender of a Security that is converted in part, the Company shall
execute, and the Trustee shall authenticate and deliver to the Holder, a new
Security in an authorized denomination equal in Principal Amount to the
unconverted portion of the Security surrendered.
If the last day on which a Security may be converted is a Legal Holiday in
a place where the Conversion Agent is located, the Security may be surrendered
to such Conversion Agent on the next succeeding day that is not a Legal Holiday.
SECTION 11.03. FRACTIONAL SHARES. The Company will not issue a fractional
-----------------
share of Series A Common Stock upon conversion of a Security. Instead, the
Company will deliver cash for the current market value of the fractional share.
The current market value of a fractional share shall be determined to the
nearest 1/1000th of a share by multiplying the Sale Price, on the last Trading
Day prior to the Conversion Date, of a full share by the fractional amount and
rounding the product to the nearest whole cent.
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SECTION 11.04. TAXES ON CONVERSION. If a Holder converts a Security, the
-------------------
Company shall pay any documentary, stamp or similar issue or transfer tax due on
the issue of shares of Series A Common Stock upon such conversion. However, the
Holder shall pay any such tax which is due because the Holder requests the
shares to be issued in a name other than the Holder's name. The Conver sion
Agent may refuse to deliver the certificates representing the shares of Series A
Common Stock being issued in a name other than the Holder's name until the
Conversion Agent receives a sum sufficient to pay any tax which will be due
because the shares are to be issued in a name other than the Holder's name.
Nothing herein shall preclude any tax withholding required by law or
regulations.
SECTION 11.05. COMPANY TO PROVIDE STOCK. The Company shall, prior to
------------------------
issuance of any Securities hereunder, and from time to time as may be necessary,
reserve out of its authorized but unissued Common Stock a sufficient number of
shares of Series A Common Stock to permit the conversion of the Securities for
shares of Series A Common Stock.
All shares of Series A Common Stock delivered upon conversion of the
Securities shall be newly issued shares or treasury shares, shall be duly and
validly issued and fully paid and nonassessable and shall be free from
preemptive rights and free of any lien or adverse claim.
The Company will endeavor promptly to comply with all Federal and state
securities laws regulating the offer and delivery of shares of Series A Common
Stock upon conversion of Securities, if any, and will list or cause to have
quoted such shares of Series A Common Stock on each national securities exchange
or in the over-the-counter market or such other market on which the shares of
the Series A Common Stock are then listed or quoted.
SECTION 11.06. ADJUSTMENT FOR CHANGE IN CAPITAL STOCK. If, after the
--------------------------------------
Issue Date, the Company:
(1) pays a dividend or makes a distribution on its Common Stock in
shares of its Common Stock;
(2) subdivides its outstanding shares of Common Stock into a greater
number of shares;
(3) combines its outstanding shares of Common Stock into a smaller
number of shares;
(4) pays a dividend or makes a distribution on its Common Stock in
shares of its Capital Stock (other than
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Common Stock or rights, warrants or options for its Capital Stock); or
(5) issues by reclassification of its Common Stock any shares of its
Capital Stock (other than rights, warrants or options for its Capital
Stock),
then the conversion privilege and the Conversion Rate in effect immediately
prior to such action shall be adjusted so that the Holder of a Security
thereafter converted may receive the number of shares or other units of Capital
Stock of the Company which such Holder would have owned immediately following
such action if such Holder had converted the Security immediately prior to such
action.
The adjustment shall become effective immediately after the record date in
the case of a dividend or distribution and immediately after the effective date
in the case of a subdivision, combination or reclassification.
If after an adjustment a Holder of a Security upon conver sion of such
Security may receive shares or other units of two or more classes or series of
Capital Stock of the Company, the Conversion Rate shall thereafter be subject to
adjustment upon the occurrence of an action taken with respect to any such class
or series of Capital Stock as is contemplated by this Article XI with respect to
the Common Stock, on terms comparable to those applicable to Common Stock in
this Article XI.
SECTION 11.07. ADJUSTMENT FOR RIGHTS ISSUE. If, after the Issue Date, the
---------------------------
Company distributes any rights, warrants or options to all holders of its Common
Stock entitling them, for a period expiring within 60 days after the record date
for such distribution, to purchase shares of Common Stock at a price per share
less than the Sale Price as of the Time of Determination, the Conversion Rate
shall be adjusted in accordance with the formula:
(0 + N)
---------------
R' = R x 0 + (N x P)
-----
M
where:
R' = the adjusted Conversion Rate.
R = the current Conversion Rate.
0 = the number of shares of Common Stock outstanding on the record date
for the distribution to which this Section 11.07 is being applied.
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N = the number of additional shares of Common Stock offered pursuant to
the distribution.
P = the offering price per share of such additional shares.
M = the Average Sale Price, minus, in the case of (i) a distribution to
-----
which Section 11.06(4) applies or (ii) a distribution to which Section
11.08 applies, for which, in each case, (x) the record date shall
occur on or before the record date for the distribution to which this
Section 11.07 applies and (y) the Ex-Dividend Time shall occur on or
after the date of the Time of Determination for the distribution to
which this Section 11.07 applies, the fair market value (on the record
date for the distribution to which this Section 11.07 applies) of:
(1) the Capital Stock of the Company distributed in respect
of each share of Common Stock in such Section 11.06(4)
distribution, and
(2) the assets of the Company or debt securities or any
rights, warrants or options to purchase securities of the Company
distributed in respect of each share of Common Stock in such
Section 11.08 distribution.
The Board of Directors shall determine fair market values for the purposes of
this Section 11.07.
The adjustment shall become effective immediately after the record date for
the determination of shareholders entitled to receive the rights, warrants or
options to which this Section 11.07 applies.
No adjustment shall be made under this Section 11.07 if the application of
the formula stated above in this Section 11.07 would result in value of R' that
is equal to or less than the value of R.
SECTION 11.08. ADJUSTMENT FOR OTHER DISTRIBUTIONS. If, after the Issue
----------------------------------
Date, the Company distributes to all holders of its Common Stock any of its
assets or debt securities or any rights, warrants or options to purchase
securities of the Company (including securities or cash, but excluding (x)
distributions of Capital Stock referred to in Section 11.06 and distributions of
rights, warrants or options referred to in Section 11.07 and (y) cash dividends
or other cash distributions that are paid out of consolidated current net
earnings or earnings retained in the
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business as shown on the books of the Company unless such cash dividends or
other cash distributions are Extraordinary Cash Dividends (as defined below)),
the Conversion Rate shall be adjusted, subject to the provisions of the last
paragraph of this Section 11.08, in accordance with the formula:
M
---
R' = R x M-F
where:
R' = the adjusted Conversion Rate.
R = the current Conversion Rate.
M = the Average Sale Price, minus, in the case of a distribution to which
-----
Section 11.06(4) applies for which (i) the record date shall occur on
or before the record date for the distribution to which this Section
11.08 applies and (ii) the Ex-Dividend Time shall occur on or after
the date of the Time of Determination for the distribution to which
this Section 11.08 applies, the fair market value (on the record date
for the distribution to which this Section 11.08 applies) of any
Capital Stock of the Company distributed in respect of each share of
Common Stock in such Section 11.06(4) distribution.
F = the fair market value (on the record date for the distribution to
which this Section 11.08 applies) of the assets, securities, rights,
warrants or options to be distributed in respect of each share of
Common Stock in the distribution to which this Section 11.08 is being
applied (including, in the case of cash dividends or other cash
distributions giving rise to an adjustment, all such cash distributed
concurrently).
The Board of Directors shall determine fair market values for the purpose of
this Section 11.08.
The adjustment shall become effective immediately after the record date for
the determination of shareholders entitled to receive the distribution to which
this Section 11.08 applies.
For purposes of this Section 11.08, the term "Extraordinary Cash Dividend"
shall mean any cash dividend with respect to the Common Stock the amount of
which, together with the aggregate amount of cash dividends on the Common Stock
to be aggregated with such cash dividend in accordance with the provisions of
this paragraph, equals or exceeds the threshold percentages set forth in items
(i) or (ii) below:
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(i) If, upon the date prior to the Ex-Dividend Time with respect to a
cash dividend on the Common Stock, the aggregate amount of such cash
dividend together with the amounts of all cash dividends on the Common
Stock with Ex-Dividend Times occurring in the eighty-five (85) consecutive
day period ending on the date prior to the Ex-Dividend Time with respect to
the cash dividend to which this provision is being applied equals or
exceeds 12.5% of the average of the Sale Prices during the period beginning
on the date after the first such Ex-Dividend Time in such period and ending
on the date prior to the Ex-Dividend Time with respect to the cash dividend
to which this provision is being applied (except that if no other cash
dividend has had an Ex-Dividend Time occurring in such period, the period
for calculating the average of the Sale Prices shall be the period
commencing 85 days prior to the date prior to the Ex-Dividend Time with
respect to the cash dividend to which this provision is being applied),
such cash dividend together with each other cash dividend with an Ex-
Dividend Time occurring in such 85-day period shall be deemed to be an
Extraordinary Cash Dividend and for purposes of applying the formula set
forth above in this Section 11.08, the value of "F" shall be equal to (w)
the aggregate amount of such cash dividend together with the amounts of the
other cash dividends with Ex-Dividend Times occurring in such period minus
(x) the aggregate amount of such other cash dividends with Ex-Dividend
Times occurring in such period for which a prior adjustment in the
Conversion Rate was previously made under this Section 11.08.
(ii) If upon the date prior to the Ex-Dividend Time with respect to a
cash dividend on the Common Stock, the aggregate amount of such cash
dividend, together with the amounts of all cash dividends on the Common
Stock with Ex-Dividend Times occurring in the 365-consecutive-day period
ending on the date prior to the Ex-Dividend Time with respect to the cash
dividend to which this provision is being applied equals or exceeds 25% of
the average of the Sale Prices during the period beginning on the date
after the first such Ex-Dividend Time in such period and ending on the date
prior to the Ex-Dividend Time with respect to the cash dividend to which
this provision is being applied (except that if no other cash dividend has
had an Ex-Dividend Time occurring in such period, the period for
calculating the average of the Sale Prices shall be the period commencing
365 days prior to the date prior to the Ex-Dividend Time with respect to
the cash dividend to which this provision is being applied), such cash
dividend together with each other cash dividend with an Ex-Dividend Time
occurring in such 365-day period shall be deemed to be an Extraordinary
Cash Dividend and for purposes of applying
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the formula set forth above in this Section 11.08, the value of "F" shall
be equal to (y) the aggregate amount of such cash dividend together with
amounts of the other cash dividends with Ex-Dividend Times occurring in
such period minus (z) the aggregate amount of such other cash dividends
-----
with Ex-Dividend Times occurring in such period for which a prior
adjustment in the Conversion Rate was previously made under this Section
11.08.
In the event that, with respect to any distribution to which this Section
11.08 would otherwise apply, the difference "M-F" as defined in the above
formula is less than $1.00 or "F" is greater than "M", then the adjustment
provided by this Section 11.08 shall not be made and in lieu thereof the
provisions of Section 11.14 shall apply to such distribution.
SECTION 11.09. WHEN ADJUSTMENT MAY BE DEFERRED. No adjustment in the
-------------------------------
Conversion Rate need be made unless the adjustment would require an increase or
decrease of at least 1% (e.g., if the Conversion Rate is 4, an increase or
---
decrease of .04 (1% of 4)) in the Conversion Rate. Any adjustments that are not
made shall be carried forward and taken into account in any subsequent
adjustment.
All calculations under this Article XI shall be made to the nearest cent or
to the nearest 1/1,000th of a share, as the case may be, with one-half of a cent
and 5/10,000ths of a share being rounded upwards.
SECTION 11.10. WHEN NO ADJUSTMENT REQUIRED. No adjustment need be made
---------------------------
for a transaction referred to in Section 11.06, 11.07, 11.08 or 11.14 if
Securityholders are to participate in the transaction on a basis and with notice
that the Board of Directors determines to be fair and appropriate in light of
the basis and notice on which holders of Common Stock participate in the
transaction.
No adjustment need be made for rights to purchase Common Stock pursuant to
a Company plan for reinvestment of dividends or interest.
No adjustment need be made for a change in the par value or no par value of
the Common Stock.
To the extent the Securities become convertible into cash pursuant to the
terms of Section 11.06, 11.07, 11.08 or 11.14, no adjustment need be made
thereafter as to the cash. Interest will not accrue on the cash.
Notwithstanding any provision to the contrary in this Indenture, no
adjustment shall be made in the Conversion Rate to
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<PAGE>
the extent, but only to the extent, such adjustment results in the following
quotient being less than the par value of the Common Stock: (i) the Issue Price
plus accrued Original Issue Discount as of the date such adjustment would
otherwise be effective divided by (ii) the Conversion Rate as so adjusted.
SECTION 11.11. NOTICE OF ADJUSTMENT. Whenever the Conversion Rate is
--------------------
adjusted, the Company shall promptly mail to securityholders a notice of the
adjustment. The Company shall file with the Trustee and the Conversion Agent
such notice and a certificate from the Company's independent public accountants
briefly stating the facts requiring the adjustment and the manner of computing
it. The certificate shall be conclusive evidence that the adjustment is correct.
Neither the Trustee nor any Conversion Agent shall be under any duty or
responsibility with respect to any such certificate except to exhibit the same
to any Holder desiring inspection thereof.
SECTION 11.12. VOLUNTARY INCREASE. The Company from time to time may
------------------
increase the Conversion Rate by any amount and for any period of time (provided,
--------
that such period is not less than 20 Business Days). Whenever the Conversion
Rate is increased, the Company shall mail to Securityholders and file with the
Trustee and the Conversion Agent a notice of the increase. The Company shall
mail the notice at least 15 days before the date the increased Conversion Rate
takes effect. The notice shall state the increased Conversion Rate and the
period it will be in effect.
A voluntary increase of the Conversion Rate does not change or adjust the
Conversion Rate otherwise in effect for purposes of Sections 11.06, 11.07 or
11.08.
SECTION 11.13. NOTICE OF CERTAIN TRANSACTIONS. If:
------------------------------
(1) the Company takes any action that would require an adjustment in
the Conversion Rate pursuant to Section 11.06, 11.07 or 11.08 (unless no
adjustment is to occur pursuant to Section 11.10); or
(2) the Company takes any action that would require a supplemental
indenture pursuant to Section 11.14; or
(3) there is a liquidation or dissolution of the Company;
then the Company shall mail to Securityholders and file with the Trustee and the
Conversion Agent a notice stating the proposed record date for a dividend or
distribution of the proposed effective date of a subdivision, combination,
reclassification, consolidation, merger, binding share exchange, transfer,
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liquidation or dissolution. The Company shall file and mail the notice at least
15 days before such date. Failure to file or mail the notice or any defect in
it shall not affect the validity of the transaction.
SECTION 11.14. REORGANIZATION OF COMPANY; SPECIAL DISTRIBUTIONS. If the
------------------------------------------------
Company is a party to a transaction subject to Section 5.01 (other than a sale
of all or substan tially all of the assets of the Company in a transaction in
which the holders of Common Stock immediately prior to such transaction do not
receive securities, cash or other assets of the Company or any other person) or
a merger or binding share exchange which reclassifies or changes its outstanding
Common Stock, the person obligated to deliver securities, cash or other assets
upon conversion of Securities shall enter into a supplemental indenture. If the
issuer of securities deliverable upon conversion of Securities is an Affiliate
of the successor Company, that issuer shall join in the supplemental indenture.
The supplemental indenture shall provide that the Holder of a Security may
convert it into the kind and amount of securities, cash or other assets which
such Holder would have received immediately after the consolidation, merger,
binding share exchange or transfer if such Holder had converted the Security
immediately before the effective date of the transaction, assuming (to the
extent applicable) that such Holder (i) was not a constituent person or an
Affiliate of a constituent person to such transaction; (ii) made no election
with respect thereto; and (iii) was treated alike with the plurality of non-
electing Holders. The supplemental indenture shall provide for adjustments which
shall be as nearly equivalent as may be practical to the adjustments provided
for in this Article XI. The successor Company shall mail to Securityholders a
notice briefly describing the supplemental indenture.
If this Section applies, neither Section 11.06 nor 11.07 applies.
If the Company makes a distribution to all holders of its Common Stock of
any of its assets, or debt securities or any rights, warrants or options to
purchase securities of the Company that, but for the provisions of the last
paragraph of Section 11.08, would otherwise result in an adjustment in the
Conversion Rate pursuant to the provisions of Section 11.08, then, from and
after the record date for determining the holders of Common Stock entitled to
receive the distribution, a Holder of a Security that converts such Security in
accordance with the provisions of this Indenture shall upon such conversion be
entitled to receive, in addition to the shares of Common Stock into which the
Security is convertible, the kind and amount of securities, cash or other assets
comprising the distribution that such Holder would have
88
<PAGE>
received if such Holder had converted the Security immediately prior to the
record date for determining the holders of Series A Common Stock entitled to
receive the distribution.
SECTION 11.15. COMPANY DETERMINATION FINAL. Any determination that the
---------------------------
Company or the Board of Directors must make pursuant to Section 11.03, 11.06,
11.07, 11.08, 11.09, 11.10, 11.14 or 11.17 is conclusive.
SECTION 11.16. TRUSTEE'S ADJUSTMENT DISCLAIMER. The Trustee has no duty
-------------------------------
to determine when an adjustment under this Article XI should be made, how it
should be made or what it should be. The Trustee has no duty to determine
whether a supplemental indenture under Section 11.14 need be entered into or
whether any provisions of any supplemental indenture are correct. The Trustee
shall not be accountable for and makes no representation as to the validity or
value of any securities or assets issued upon conversion of Securities. The
Trustee shall not be responsible for the Company's failure to comply with this
Article XI. Each Conversion Agent (other than the Company or an Affiliate of the
Company) shall have the same protection under this Section 11.16 as the Trustee.
SECTION 11.17. SIMULTANEOUS ADJUSTMENTS. If this Article XI requires
------------------------
adjustments to the Conversion Rate under more than one of Sections 11.06(4),
11.07 or 11.08, and the record dates for the distributions giving rise to such
adjustments shall occur on the same date, then such adjustments shall be made by
applying, first, the provisions of Section 11.06, second, the provisions of
Section 11.08 and, third, the provisions of Section 11.07.
SECTION 11.18. SUCCESSIVE ADJUSTMENTS. After an adjustment to the
----------------------
Conversion Rate under this Article XI, any subsequent event requiring an
adjustment under this Article XI shall cause an adjustment to the Conversion
Rate as so adjusted.
ARTICLE XII.
SPECIAL TAX EVENT CONVERSION
SECTION 12.01. OPTIONAL CONVERSION TO SEMIANNUAL COUPON NOTE UPON TAX
------------------------------------------------------
EVENT. From and after the date (the "Tax Event Date") of the occurrence of a
- -----
Tax Event, at the option of the Company, interest in lieu of future Original
Issue Discount shall accrue at 4.75% per annum on a principal amount per
Security (the "Restated Principal Amount") equal to the Issue Price plus
Original Issue Discount accrued to the date immediately prior to the Tax Event
Date and shall be payable semiannually on April 15 and October 15 of each year
(each an "Interest Payment Date") to
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holders of record at the close of business on April 15 or October 15 (each a
"Regular Record Date") immediately preceding such Interest Payment Date.
Interest will be computed on the basis of a 360-day year comprised of twelve 30-
day months and will accrue from the most recent date on which interest has been
paid or, if no interest has been paid, from the Tax Event Date. Within 15 days
of the occurrence of a Tax Event, the Company shall mail a written notice of
such Tax Event by first-class mail to the Trustee.
SECTION 12.02. PAYMENT OF INTEREST; INTEREST RIGHTS PRESERVED. (a)
----------------------------------------------
Interest on any Security that is payable, and is punctually paid or duly
provided for, on any Interest Payment Date shall be paid to the person in whose
name that Security is registered at the close of business on the Regular Record
Date for such interest at the office or agency of the Company maintained for
such purpose. Each installment of interest on any Security shall be paid in
same-day funds by transfer to an account maintained by the payee located inside
the United States. In the case of a permanent global Security, interest payable
on any Interest Payment Date will be paid to the Depositary, Euroclear and/or
CEDEL, as the case may be, with respect to that portion of such permanent global
Security held for its account by Cede & Co. or the London office of a
depositary, as the case may be, for the purpose of permitting such party to
credit the interest received by it in respect of such permanent global Security
to the accounts of the beneficial owners thereof.
(b) Except as otherwise specified with respect to the Securities, any
interest on any Security that is payable, but is not punctually paid or duly
provided for, within 30 days following on any Interest Payment Date (herein
called "Defaulted Interest") shall forthwith cease to be payable to the
registered Holder thereof on the relevant Regular Record Date by virtue of
having been such Holder, and such Defaulted Interest may be paid by the Company,
as 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 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 and the date
of the proposed payment (which shall not be less than 20 days after
such notice is received by the Trustee), 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
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arrangements satisfactory to the Trustee for such deposit on or prior
to the date of the proposed payment, such money when deposited to be
held in trust for the benefit of the persons entitled to such
Defaulted Interest as in this clause provided. Thereupon the Trustee
shall fix a Special Record Date for the payment of such Defaulted
Interest which shall be not more than 15 days and not less than 10
days prior to the date of the proposed payment and not less than 10
days after the receipt by the Trustee of the notice of the proposed
payment. The Trustee shall promptly notify the Company of such Special
Record Date and, in the name and at the expense of the Company, shall
cause notice of the proposed payment of such Defaulted Interest and
the Special Record Date therefor to be mailed, first-class postage
prepaid, to each Holder of Securities at his address as it appears on
the list of Securityholders maintained pursuant to Section 2.05 not
less than 10 days prior to such Special Record Date. The Trustee may,
in its discretion, in the name and at the expense of the Company,
cause a similar notice to be published at least once in an Authorized
Newspaper in each place of payment, but such publications shall not be
a condition precedent to the establishment of such Special Record
Date. Notice of the proposed payment of such Defaulted Interest and
the Special Record Date therefor having been mailed as aforesaid, such
Defaulted Interest shall be paid to the persons in whose names the
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 in any other lawful manner not inconsistent with the
requirements of any securities exchange on which such Securities may
be listed, and upon such notice as may be required by such exchange,
if, after notice given by the Company to the Trustee of the proposed
payment pursuant to this clause, such manner of payment shall be
deemed practicable by the Trustee.
Subject to the foregoing provisions of this Section and Section 2.06, 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.
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ARTICLE XIII.
MISCELLANEOUS
SECTION 13.01. TRUST INDENTURE ACT CONTROLS. If any provision of this
----------------------------
Indenture limits, qualifies or conflicts with another provision which is
required to be included in this Indenture by the TIA, the required provision
shall control.
SECTION 13.02. NOTICES. Any notice or communication shall be in writing
-------
and delivered in person or mailed by first-class mail, postage prepaid,
addressed as follows:
if to the Company:
The Times Mirror Company
Times Mirror Square
Los Angeles, California 90053
Attention: Secretary
if to the Trustee:
Citibank, N.A.
120 Wall Street
New York, New York 10043
Attention: Corporate Agency and Trust
The Company or the Trustee by notice to the other may designate additional
or different addresses for subsequent notices or communications.
Any notice or communication given to a Securityholder shall be mailed by
first-class mail to the Securityholder at the Securityholder's address as it
appears on the registration books of the Registrar and shall be sufficiently
given if so mailed within the time prescribed.
Failure to mail a notice or communication to a Security holder or any
defect in it shall not affect its sufficiency with respect to other
Securityholders. If a notice or communication is mailed in the manner provided
above, it is duly given, whether or not received by the addressee.
If the Company mails a notice or communication to the Securityholders, it
shall mail a copy to the Trustee and each Registrar, Paying Agent, Conversion
Agent or co-registrar.
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SECTION 13.03. COMMUNICATION BY HOLDERS WITH OTHER HOLDERS.
-------------------------------------------
Securityholders may communicate pursuant to TIA Section 312(b) with other
Securityholders with respect to their rights under this Indenture or the
Securities. The Company, the Trustee, the Registrar, the Paying Agent, the
Conversion Agent and anyone else shall have the protection of TIA Section
312(c).
SECTION 13.04. CERTIFICATE AND OPINION AS TO CONDITIONS PRECEDENT. Upon
--------------------------------------------------
any request or application by the Company to the Trustee to take any action
under this Indenture, the Trustee may require the Company to furnish either or
both of the following:
(1) an Officers' Certificate stating that, in the opinion of the
principal signer thereof, all conditions precedent, if any, provided for in
this Indenture relating to the proposed action have been complied with; and
(2) an Opinion of Counsel stating that, in the opinion of such
counsel, all such conditions precedent have been complied with.
SECTION 13.05. STATEMENTS REQUIRED IN CERTIFICATE OR OPINION. Each
---------------------------------------------
Officers' Certificate or Opinion of Counsel with respect to compliance with a
covenant or condition provided for in this Indenture shall include:
(1) a statement that the principal signer of such Officers'
Certificate or Opinion of Counsel has read such covenant or condition;
(2) a brief statement as to the nature and scope of the examination
or investigation upon which the statements or opinions contained in such
Officers' Certificate or Opinion of Counsel are based;
(3) a statement that, in the opinion of the principal signer, he or
she has made such examination or investigation as is necessary to enable
such person to express an informed opinion as to whether or not such
covenant or condition has been complied with; and
(4) a statement that, in the opinion of such person, such covenant or
condition has been complied with.
SECTION 13.06. 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.
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SECTION 13.07. RULES BY TRUSTEE, PAYING AGENT, CONVERSION AGENT AND
----------------------------------------------------
REGISTRAR. The Trustee may make reasonable rules for action by or a meeting of
- ---------
the Securityholders. The Registrar, Conversion Agent and the Paying Agent may
make reasonable rules for their functions.
SECTION 13.08. LEGAL HOLIDAY. A "Legal Holiday" is any day other than a
-------------
Business Day. If any specified date (including a date for giving notice) is a
Legal Holiday, the action shall be taken on the next succeeding day that is not
a Legal Holiday, and to the extent applicable no Original Issue Discount or
interest, if any, shall accrue for the intervening period.
SECTION 13.09. GOVERNING LAW. THIS INDENTURE AND THE SECURITIES SHALL BE
-------------
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK,
AS APPLIED TO CONTRACTS MADE AND PERFORMED WITHIN THE STATE OF NEW YORK, WITHOUT
REGARD TO PRINCIPLES OF CONFLICT OF LAWS.
SECTION 13.10. NO RECOURSE AGAINST OTHERS. A director, officer, employee
--------------------------
or stockholder, as such, of the Company shall not have any liability for any
obligations of the Company under the Securities or this Indenture or for any
claim based on, in respect of or by reason of such obligations or their
creation. By accepting a Security, each Securityholder shall waive and release
all such liability. The waiver and release shall be part of the consideration
for the issue of the Securities.
SECTION 13.11. SUCCESSORS. All agreements of the Company in this
----------
Indenture and the Securities shall bind its successor. All agreements of the
Trustee in this Indenture shall bind its successor.
SECTION 13.12. MULTIPLE ORIGINALS. The parties may sign any number of
------------------
copies of this Indenture. Each signed copy shall be an original, but all of
them together represent the same agreement. One signed copy is enough to prove
this Indenture.
[Signature Page to Follow]
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IN WITNESS WHEREOF, the undersigned, being duly authorized, have executed
this Indenture on behalf of the respective parties hereto as of the date first
above written.
THE TIMES MIRROR COMPANY
By
-------------------------------
Title:
ATTEST:
____________________________
(SEAL)
CITIBANK, N.A., as Trustee
By
-----------------------------
Title:
ATTEST:
____________________________
(SEAL)
S-1
<PAGE>
EXHIBIT A-1
[FORM OF FACE OF LYON]
LIQUID YIELD OPTION/TM/ NOTE DUE 2017
(ZERO COUPON -- SUBORDINATED)
FOR PURPOSES OF SECTIONS 1273 AND 1275 OF THE INTERNAL REVENUE CODE OF 1986, AS
AMENDED, THE AMOUNT OF ORIGINAL ISSUE DISCOUNT WITH RESPECT TO EACH $1,000 OF
PRINCIPAL AMOUNT OF THIS SECURITY IS $608.94, THE ISSUE DATE IS APRIL 15, 1997,
AND THE YIELD TO STATED MATURITY IS 4.75% PER ANNUM (COMPUTED ON A SEMIANNUAL
BOND EQUIVALENT BASIS).
[UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE
OF THE DEPOSITORY TRUST COMPANY TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF
TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE
NAME OF CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY OR SUCH OTHER REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY OR SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (AND ANY PAYMENT HEREON IS MADE
TO CEDE & CO.), ANY TRANSFER PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE
BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE,& CO.,
HAS AN INTEREST HEREIN./1/
TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN
WHOLE, BUT NOT IN PART, TO NOMINEES OF CEDE & CO., OR TO A SUCCESSOR THEREOF OR
SUCH SUCCESSOR'S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL
BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN
ARTICLE TWO OF THE INDENTURE REFERRED TO ON THE REVERSE HEREOF.]
THIS SECURITY AND THE SHARES OF SERIES A COMMON STOCK ISSUABLE UPON
CONVERSION OF THIS SECURITY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE "SECURITIES ACT"), OR ANY STATE SECURITIES LAWS. NEITHER
THIS SECURITY, THE SHARES OF SERIES A COMMON STOCK ISSUABLE UPON CONVERSION OF
THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN OR THEREIN MAY BE
REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE
DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS
EXEMPT FROM, OR NOT SUBJECT TO, REGISTRATION. UNLESS THE SHARES OF SERIES A
COMMON STOCK HAVE BEEN REGISTERED UNDER THE SECURITIES ACT, A
- -------------------
1. This paragraph should be included only if the Security is a global Security
deposited with the DTC.
<PAGE>
HOLDER OF THIS SECURITY WILL BE ABLE TO EXERCISE THE CONVERSION RIGHT ONLY IF
THE HOLDER CERTIFIES THAT IT IS A "QUALIFIED INSTITUTIONAL BUYER" OR AN
INSTITUTIONAL "ACCREDITED INVESTOR" AS DEFINED BELOW.
THE HOLDER OF THIS SECURITY, BY ITS ACCEPTANCE HEREOF, AGREES TO
OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY, PRIOR TO THE DATE (THE "RESALE
RESTRICTION TERMINATION DATE") WHICH IS TWO YEARS AFTER THE LATER OF THE
ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH THE COMPANY OR ANY
AFFILIATE OF THE COMPANY WAS THE OWNER OF ANY SECURITY (OR ANY PREDECESSOR OF
SUCH SECURITY) ONLY (A) TO THE COMPANY OR ANY SUBSIDIARY THEREOF, (B) FOR SO
LONG AS THE SECURITIES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A, TO A
PERSON IT REASONABLY BELIEVES IS A "QUALIFIED INSTITUTIONAL BUYER" AS DEFINED IN
RULE 144A UNDER THE SECURITIES ACT THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE
ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHICH NOTICE IS GIVEN THAT THE
TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (C) TO AN INSTITUTIONAL
"ACCREDITED INVESTOR" WITHIN THE MEANING OF SUBPARAGRAPH (A)(1), (2),(3) OR (7)
OF RULE 501 UNDER THE SECURITIES ACT THAT IS ACQUIRING THE SECURITY FOR ITS OWN
ACCOUNT, OR FOR THE ACCOUNT OF SUCH AN INSTITUTIONAL "ACCREDITED INVESTOR," FOR
INVESTMENT PURPOSES AND NOT WITH A VIEW TO, OR FOR OFFER OR SALE IN CONNECTION
WITH, ANY DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT, (D) PURSUANT TO A
REGISTRATION STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES
ACT, (E) IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE 904 OF REGULATION S
UNDER THE SECURITIES ACT, OR (F) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM
THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE DELIVERY TO
THE TRUSTEE OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION
SATISFACTORY TO THE COMPANY AND THE TRUSTEE, AND IN EACH OF THE FOREGOING CASES,
A CERTIFICATE OF TRANSFER IN THE FORM APPEARING ON THE OTHER SIDE OF THIS
SECURITY IS COMPLETED AND DELIVERED BY THE TRANSFEROR TO THE TRUSTEE. THIS
LEGEND WILL BE REMOVED UPON THE REQUEST OF THE HOLDER AFTER THE RESALE
RESTRICTION TERMINATION DATE.
[THE FOREGOING LEGEND MAY BE REMOVED FROM THIS SECURITY ON SATISFACTION OF
THE CONDITIONS SPECIFIED IN THE INDENTURE.]
A-1-2
<PAGE>
THE TIMES MIRROR COMPANY
LIQUID YIELD OPTION/TM/ NOTE DUE 2017
(ZERO COUPON -- SUBORDINATED)
No. $______________
Issue Date: April 15, 1997 CUSIP No. ___________
Issue Price: $391.06
Original Issue Discount: $608.94
(for each $1,000 Principal amount)
The Times Mirror Company, a Delaware corporation, promises to pay to
__________________________________________, or registered assigns, the Principal
Amount of ____________________ Dollars on April 15, 2017.
This Security shall not bear interest except as specified on the other side
of this Security. Original Issue Discount will accrue as specified on the other
side of this Security. This Security is convertible as specified on the other
side of this Security. All capitalized terms used herein without definition
shall have the respective meanings assigned thereto in the Indenture referred to
on the other side of this Security.
Additional provisions of this Security are set forth on the other side of
this Security.
- ------------------------
/TM/ Trademark of Merrill Lynch & Co., Inc.
A-1-3
<PAGE>
IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed under its corporate seal.
THE TIMES MIRROR COMPANY
By:
-----------------------------
Title:
ATTEST:
- --------------------------
(Seal)
TRUSTEE'S CERTIFICATE OF
AUTHENTICATION
CITIBANK, N.A.
- ---------------------------
as Trustee, certifies that this Security
is one of the Securities referred to
in the within-mentioned Indenture.
By:
----------------------------
Authorized Signatory
Date:
--------------------------
A-1-4
<PAGE>
[FORM OF REVERSE SIDE OF LYON]
LIQUID YIELD OPTION(TM) NOTE DUE 2017
(ZERO COUPON -- SUBORDINATED)
1. INTEREST
--------
This Security shall not bear interest except as specified in this paragraph
or in paragraph 10 hereof. If the Principal Amount hereof or any portion of such
Principal Amount is not paid when due (whether upon acceleration pursuant to
Section 6.02 of the Indenture, upon the date set for payment of the Redemption
Price pursuant to paragraph 5 hereof, upon the date set for payment of a
Purchase Price or Change in Control Purchase Price pursuant to paragraph 6
hereof, upon the date set for a Conversion Payment pursuant to paragraph 9
hereof or upon the Stated Maturity of this Security) or if shares of Series A
Common Stock (or cash in lieu of fractional shares) in respect of a conversion
of this Security in accordance with the terms of Article XI of the Indenture is
not delivered when due, then in each such case the overdue amount shall bear
interest at the rate of 4.75% per annum, compounded semiannually (to the extent
that the payment of such interest shall be legally enforceable), which interest
shall accrue from the date such overdue amount was due to the date payment of
such amount, including interest thereon, has been made or duly provided for. All
such interest shall be payable on demand.
Original Issue Discount (the difference between the Issue Price and the
Principal Amount of the Security), in the period during which a Security remains
outstanding, shall accrue at 4.75% per annum, on a semiannual bond equivalent
basis using a 360-day year composed of twelve 30-day months, commencing on April
15, 1997, and cease to accrue on the earlier of (a) the date on which the
Principal Amount at Stated Maturity hereof or any portion of such Principal
Amount at Stated Maturity becomes due and payable and (b) any Redemption Date,
Conversion Date, Change in Control Purchase Date, Purchase Date or other date on
which such Original Issue Discount shall cease to accrue in accordance with
Section 2.08 of the Indenture.
2. METHOD OF PAYMENT
-----------------
Subject to the terms and conditions of the Indenture, The Times Mirror
Company (the "Company") will make payments in respect of the Securities to the
persons who are registered Holders of Securities at the close of business on the
Business Day preceding the Redemption Date or Stated Maturity, as the case may
be, or at the close of business on a Purchase Date, Change in Control Purchase
Date or Conversion Date, as the case may be. Holders must surrender Securities
to a Paying Agent to collect such payments in respect of the Securities. The
Company will pay
______________________
(TM) Trademark of Merrill Lynch & Co., Inc.
A-1-5
<PAGE>
cash amounts in money of The United States of America that at the time of
payment is legal tender for payment of public and private debts. However, the
Company may make such cash payments in respect of a certificated Security, if
applicable, by check payable in such money.
3. PAYING AGENT, CONVERSION AGENT AND REGISTRAR
--------------------------------------------
Initially, Citibank, N.A., a national banking association, as trustee (the
"Trustee"), will act as Paying Agent, Conversion Agent and Registrar. The
Company may appoint and change any Paying Agent, Conversion Agent, Registrar or
co-registrar, upon notice to the Trustee and the Holders. The Company or any of
its Subsidiaries or any of their Affiliates may act as Paying Agent, Conversion
Agent, Registrar or co-registrar.
4. INDENTURE
---------
The Company issued the Securities under an Indenture, dated as of April 15,
1997 (the "Indenture"), between the Company and the Trustee. The terms of the
Securities include those stated in the Indenture and those made part of the
Indenture by reference to the Trust Indenture Act of 1939, as amended by the
Trust Indenture Reform Act of 1990, and, as in effect on the date of the
Indenture (the "TIA"), except as provided in Section 9.03 of the Indenture.
Capitalized terms used herein or on the face hereof and not defined herein have
the meanings ascribed thereto in the Indenture. The Securities are subject to
all such terms, and Securityholders are referred to the Indenture and the TIA
for a statement of those terms.
The Securities are general unsecured obligations of the Company limited to
the aggregate Principal Amount at Stated Maturity specified in Section 2.02 of
the Indenture (subject to Section 2.07 of the Indenture). The Indenture does
not limit other indebtedness of the Company, secured or unsecured, including
Senior Indebtedness.
5. REDEMPTION AT THE OPTION OF THE COMPANY
---------------------------------------
No sinking fund is provided for the Securities. The Securities are
redeemable as a whole, or from time to time in part, at any time at the option
of the Company at the Redemption Prices set forth below, provided, however, that
-------- -------
the Securities are not redeemable prior to April 15, 2002.
The table below shows the Redemption Prices of a Security per $1,000
Principal Amount at Stated Maturity on the dates shown below and at Stated
Maturity, which prices reflect accrued Original Issue Discount calculated to
each such date. The Redemption Price of a Security redeemed between such dates
would include an additional amount reflecting the additional Original Issue
Discount accrued from and including the next preceding date in the table to, but
excluding, the Redemption Date.
A-1-6
<PAGE>
<TABLE>
<CAPTION>
(1) (2) (3)
ACCRUED
ORIGINAL
LYON ISSUE REDEMPTION
ISSUE DISCOUNT PRICE
REDEMPTION DATE PRICE AT 4.75% (1) + (2)
- --------------- ------- --------- ---------
<S> <C> <C> <C>
April 15, 2002.............. $391.06 $103.46 $ 494.52
April 15, 2003.............. 391.06 127.23 518.29
April 15, 2004.............. 391.06 152.14 543.20
April 15, 2005.............. 391.06 178.25 569.31
April 15, 2006.............. 391.06 205.61 596.67
April 15, 2007.............. 391.06 234.29 625.35
April 15, 2008.............. 391.06 264.34 655.40
April 15, 2009.............. 391.06 295.85 686.91
April 15, 2010.............. 391.06 328.86 719.92
April 15, 2011.............. 391.06 363.46 754.52
April 15, 2012.............. 391.06 399.73 790.79
April 15, 2013.............. 391.06 437.74 828.80
April 15, 2014.............. 391.06 477.57 868.63
April 15, 2015.............. 391.06 519.32 910.38
April 15, 2016.............. 391.06 563.08 954.14
At Maturity................. 391.06 608.94 1,000.00
</TABLE>
If converted to a semiannual coupon note following the occurrence of a Tax
Event, this Security will be redeemable at the Restated Principal Amount plus
interest accrued from the date of such conversion to, but excluding, the
Redemption Date; but in no event will this Security be redeemable before April
15, 2002.
6. PURCHASE BY THE COMPANY AT THE OPTION OF THE HOLDER; CHANGE IN CONTROL
----------------------------------------------------------------------
Subject to the terms and conditions of the Indenture, the Company shall
become obligated to purchase, at the option of the Holder, the Securities held
by such Holder on the following Purchase Dates and at the following Purchase
Prices per $1,000 Principal Amount at Stated Maturity of such Securities, upon
delivery of a Purchase Notice containing the information set forth in the
Indenture, at any time from the opening of business on the date that is 20
Business Days prior to such Purchase Date until the close of business on such
Purchase Date and upon delivery of the Securities to the Paying Agent by the
Holder as set forth in the Indenture. Such Purchase Price may be paid, at the
option of the Company, in cash or by the issuance and delivery of shares of
Series A Common Stock of the Company, or in any combination thereof.
A-1-7
<PAGE>
<TABLE>
<CAPTION>
PURCHASE DATE PURCHASE PRICE
-------------- --------------
<S> <C>
April 15, 2002 $494.52
April 15, 2007 $625.35
April 15, 2012 $790.79
</TABLE>
If prior to a Purchase Date this Security has been converted to a
semiannual coupon note following the occurrence of a Tax Event, the Purchase
Price will be equal to the Restated Principal Amount plus accrued interest from
the date of conversion to, but excluding, the Purchase Date.
Subject to the terms and conditions of the Indenture, if any Change in
Control occurs on or prior to April 15, 2002, the Company shall, at the option
of the Holders, purchase all Securities for which a Change in Control Purchase
Notice shall have been delivered as provided in the Indenture and not withdrawn,
on the date that is 35 Business Days after the occurrence of such Change in
Control, for a Change in Control Purchase Price equal to the Issue Price plus
accrued Original Issue Discount to the Change in Control Purchase Date, which
Change in Control Purchase Price shall be paid in cash. If prior to a Change in
Control Purchase Date this Security has been converted to a semiannual coupon
note following the occurrence of a Tax Event, the Change in Control Purchase
Price shall be equal to the Restated Principal Amount plus accrued interest from
the date of conversion to, but excluding, the Change in Control Purchase Date.
Holders have the right to withdraw any Purchase Notice or Change in Control
Purchase Notice, as the case may be, by delivering to the Paying Agent a written
notice of withdrawal in accordance with the provisions of the Indenture.
If cash sufficient to pay the Purchase Price or Change in Control Purchase
Price of all Securities or portions thereof to be purchased as of the Purchase
Date or the Change in Control Purchase Date, as the case may be, is deposited
with the Paying Agent on the Business Day following the Purchase Date or the
Change in Control Purchase Date, as the case may be, Original Issue Discount
ceases to accrue on such Securities (or portions thereof) on and after such
date, and the Holders thereof shall have no other rights as such (other than the
right to receive the Purchase Price or Change in Control Purchase Price, as the
case may be, upon surrender of such Security).
7. NOTICE OF REDEMPTION
--------------------
Notice of redemption under paragraph 5 will be mailed at least 30 days but
not more than 60 days before the Redemption Date to each Holder of Securities to
be redeemed at the Holder's registered address. If money sufficient to pay the
Redemption Price of all Securities (or portions thereof) to be redeemed on the
Redemption Date is deposited with the Paying Agent prior to
A-1-8
<PAGE>
or on the Redemption Date, on and after such date Original Issue Discount ceases
to accrue on such Securities or portions thereof. Securities in denominations
larger than $1,000 of Principal Amount may be redeemed in part but only in
integral multiples of $1,000 of Principal Amount.
8. SUBORDINATION
-------------
The Securities are subordinated to all existing and future Senior
Indebtedness. To the extent provided in the Indenture, Senior Indebtedness must
be paid before the Securities may be paid. The Indenture does not limit the
present or future amount of Senior Indebtedness the Company may have. The
Company agrees, and each Securityholder by accepting a Security agrees, to the
subordination and authorizes the Trustee to give it effect and appoints the
Trustee as attorney-in-fact for such purpose.
9. CONVERSION
----------
Subject to the next two succeeding sentences, a Holder of a Security may
convert it into shares of Series A Common Stock of the Company at any time
before the close of business on April 15, 2017; provided, however, that if a
-------- -------
Security is called for redemption, the Holder may convert it at any time before
the close of business on the Redemption Date. The number of shares of Series A
Common Stock to be delivered upon conversion of a Security into Series A Common
Stock for each $1,000 of Principal Amount shall be equal to the Conversion Rate.
A Security in respect of which a Holder has delivered a Purchase Notice or
Change in Control Purchase Notice exercising the option of such Holder to
require the Company to purchase such Security may be converted only if the
notice of exercise is withdrawn in accordance with the terms of the Indenture.
The initial Conversion Rate is 5.828 shares of Series A Common Stock per
$1,000 Principal Amount, subject to adjustment in certain events described in
the Indenture. The Company will deliver cash or a check in lieu of any
fractional share of Series A Common Stock.
The Holders' right to convert Securities into shares of Series A Common
Stock is subject to the Company's right to elect to instead pay such Holder the
amount of cash set forth in the next succeeding sentence, in lieu of delivering
such shares of Series A Common Stock; provided, however, that if such payment of
-------- -------
cash is not permitted pursuant to the provisions of the Indenture or the
provisions of any other agreement or instrument to which the Company is a party
or by which it is bound or otherwise, the Company shall deliver shares of Series
A Common Stock (and cash in lieu of fractional shares of Series A Common Stock)
in accordance with Article XI of the Indenture, whether or not the Company has
delivered a notice pursuant to Section 11.02 to the effect that the securities
will be paid in cash. The amount of cash to be paid for each $1,000 Principal
Amount of a Security
A-1-9
<PAGE>
shall be equal to the Sale Price of a share of Series A Common Stock on the
Trading Day immediately prior to the related Conversion Date multiplied by the
Conversion Rate in effect on such Trading Day.
The Company shall not pay cash in lieu of delivering shares of Series A
Common Stock upon the conversion of any Security pursuant to the terms of
Article XI of the Indenture (other than cash in lieu of fractional shares) if
there has occurred (prior to, on or after, as the case may be, the Conversion
Date or the date on which the Company delivers its notice of whether each
Security shall be converted into shares of Series A Common Stock or cash) and is
continuing an Event of Default (other than a default in such payment on such
Securities), provided, however, that this sentence shall not apply in the event
-------- -------
that an Event of Default occurs after such cash is paid.
In the event the Company exercises its option pursuant to Section 12.01 of
the Indenture to have interest in lieu of Original Issue Discount accrue on the
Security following a Tax Event, the Holder will be entitled on conversion to
receive the same number of shares of Series A Common Stock such Holder would
have received if the Company had not exercised such option. If the Company
exercises such option, 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 of such Interest Payment Date
(except Securities to be redeemed on a date within such period) must be
accompanied by payment of an amount equal to the interest thereon that the
registered Holder is to receive. Except where Securities surrendered for
conversion must be accompanied by payment as described above, no interest on
converted Securities will be payable by the Company on any Interest Payment Date
subsequent to the date of conversion.
To convert a Security a Holder must (i) complete and manually sign the
conversion notice on the back of the Security (or complete and manually sign a
facsimile of such notice) and deliver such notice to the Conversion Agent (or
the office or agency referred to in Section 4.05 of the Indenture) or, if
applicable, complete and deliver to The Depository Trust Company ("DTC" or the
"Depositary," which term includes any successor thereto) the appropriate
instruction form for conversion pursuant to the Depositary's book entry
conversion program, (ii) surrender the Security to a Conversion Agent by
physical or book entry delivery (which is not necessary in the case of
conversion pursuant to the Depositary's book entry conversion program), (iii)
furnish appropriate endorsements and transfer documents if required by the
Conversion Agent, the Company or the Trustee and (iv) pay any transfer or
similar tax, if required. Book entry delivery of a Security to the Conversion
Agent may be made by any financial institution that is a participant in the
Depositary; conversion through the Depositary's book entry conversion program
A-1-10
<PAGE>
is available for any security that is held in an account maintained at the
Depositary by any such participant.
A Holder may convert a portion of a Security if the Principal Amount of such
portion is $1,000 or an integral multiple of $1,000. No payment or adjustment
will be made for dividends on the Common Stock except as provided in the
Indenture. On conversion of a Security, that portion of accrued Original Issue
Discount (or interest, if the Company has exercised its option provided for in
paragraph 10 hereof) attributable to the period from the Issue Date (or, if the
Company has exercised the option referred to in paragraph 10 hereof, the later
of (x) the date of such exercise and (y) the date on which interest was last
paid) to the Conversion Date with respect to the converted Security shall not be
cancelled, extinguished or forfeited, but rather shall be deemed paid in full to
the Holder thereof through the delivery of shares of Series A Common Stock in
exchange for the Security being converted pursuant to the terms hereof.
The Conversion Rate will be adjusted for dividends or distributions on
Common Stock payable in Common Stock or other Capital Stock; subdivisions,
combinations or certain reclassifi cations of Common Stock; distributions to all
holders of Common Stock of certain rights to purchase Common Stock for a period
expiring within 60 days at less than the Sale Price at the Time of
Determination; and distributions to such holders of assets or debt securities of
the Company or certain rights to purchase securities of the Company (excluding
certain cash dividends or distributions). However, no adjustment need be made if
Securityholders may participate in the transaction or in certain other cases.
The Company from time to time may voluntarily increase the Conversion Rate.
If the Company is a party to a consolidation, merger or binding share
exchange of the type specified in the Indenture, or certain transfers of all or
substantially all of its assets to another person, or in certain other
circumstances described in the Indenture, the right to convert a Security into
Series A Common Stock may be changed into a right to convert it into securities,
cash or other assets of the Company or another person.
10. TAX EVENT
---------
(a) From and after the date (the "Tax Event Date") of the occurrence of a
Tax Event, at the option of the Company, interest in lieu of future Original
Issue Discount shall accrue at 4.75% per annum on a principal amount per
Security (the "Restated Principal Amount") equal to the Issue Price plus
Original Issue Discount accrued to the date immediately prior to the Tax Event
Date and shall be payable semiannually on April 15 and October 15 of each year
(each an "Interest Payment Date") to holders of record at the close of business
on April 15 or October 15 (each a "Regular Record Date") immediately preceding
such Interest
A-1-11
<PAGE>
Payment Date. Interest will be computed on the basis of a 360-day year comprised
of twelve 30-day months and will accrue from the most recent date to which
interest has been paid or, if no interest has been paid, from the Tax Event
Date.
(b) Interest on any Security that is payable, and is punctually paid or
duly provided for, on any Interest Payment Date shall be paid to the person in
whose name that Security is registered at the close of business on the Regular
Record Date for such interest at the office or agency of the Company maintained
for such purpose. Each installment of interest on any Security shall be paid in
same-day funds by transfer to an account maintained by the payee located inside
the United States. In the case of a permanent global Security, interest payable
on any Interest Payment Date will be paid to the Depositary, Euroclear and/or
CEDEL, as the case may be, with respect to that portion of such permanent global
Security held for its account by Cede & Co. or the London office of a
depositary, as the case may be, for the purpose of permitting such party to
credit the interest received by it in respect of such permanent global Security
to the accounts of the beneficial owners thereof.
(c) Except as otherwise specified with respect to the Securities, any
interest on any Security 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 registered Holder thereof on the
relevant Regular Record Date by virture of having been such Holder, and such
Defaulted Interest may be paid by the Company as provided for in Section 12.02
(b) of the Indenture.
11. CONVERSION ARRANGEMENT ON CALL FOR REDEMPTION
---------------------------------------------
Any Securities called for redemption, unless surrendered for conversion
before the close of business on the Redemption Date, may be deemed to be
purchased from the Holders of such Securities at an amount not less than the
Redemption Price, by one or more investment bankers or other purchasers who may
agree with the Company to purchase such Securities from the Holders and to make
payment for such Securities to the Trustee in trust for such Holders.
12. DENOMINATIONS; TRANSFER; EXCHANGE
---------------------------------
The Securities are in fully registered form, without coupons, in
denominations of $250,000 of Principal Amount and integral multiples of $1,000
in excess thereof. A Holder may transfer or exchange Securities in accordance
with the Indenture. The Registrar may require a Holder, among other things, to
furnish appropriate endorsements and transfer documents and to pay any taxes and
fees required by law or permitted by the Indenture. The Registrar need not
transfer or exchange any Securities selected for redemption (except, in the case
of a Security to be redeemed in part, the portion of the Security not
A-1-12
<PAGE>
to be redeemed) or any Securities in respect of which a Purchase Notice or
Change in Control Purchase Notice has been given and not withdrawn (except, in
the case of a Security to be purchased in part, the portion of the Security not
to be purchased) or any Securities for a period of 15 days before a selection of
Securities to be redeemed.
13. PERSONS DEEMED OWNERS
---------------------
The registered Holder of this Security may be treated as the owner of this
Security for all purposes.
14. UNCLAIMED MONEY OR SECURITIES
-----------------------------
The Trustee and the Paying Agent shall return to the Company upon written
request any money or securities held by them for the payment of any amount with
respect to the Securities that remains unclaimed for two years, provided,
--------
however, that the Trustee or such Paying Agent, before being required to make
- -------
any such return, may at the expense of the Company cause to be published once in
The Wall Street Journal or another newspaper of national circulation or mail to
- -----------------------
each such Holder notice that such money or securities remains unclaimed and
that, after a date specified therein, which shall not be less than 30 days from
the date of such publication or mailing, any unclaimed money or securities then
remaining will be returned to the Company. After return to the Company, Holders
entitled to the money or securities must look to the Company for payment as
general creditors unless an applicable abandoned property law designates another
person, and the Trustee and the Paying Agent shall have no further liability
with respect to such money or securities for that period commencing after the
return thereof.
15. AMENDMENT; WAIVER
-----------------
Subject to certain exceptions set forth in the Indenture, (i) the Indenture
or the Securities may be amended with the written consent of the Holders of at
least a majority in aggregate Principal Amount of the Securities at the time
outstanding and (ii) certain defaults or noncompliance with certain provisions
may be waived with the written consent of the Holders of a majority in aggregate
Principal Amount of the Securities at the time outstanding. Subject to certain
exceptions set forth in the Indenture, without the consent of any
Securityholder, the Company and the Trustee may amend the Indenture or the
Securities to cure any ambiguity, defect or inconsistency, or to comply with
Article V or Section 11.14 of the Indenture, or to provide for uncertificated
Securities in addition to or in place of certificated Securities, or to add to
the covenants or obligations of the Company thereunder, or to surrender any
right, power or option conferred upon the Company, or to make any change to
comply with the TIA, or any amendment thereafter, or any requirement of the SEC
in connection with the qualification of the Indenture under the TIA or any
amendment
A-1-13
<PAGE>
thereof or to make any change that does not adversely affect the rights of any
Securityholder.
16. DEFAULTS AND REMEDIES
---------------------
Under the Indenture, Events of Default include (i) after exercise by the
Company of its option pursuant to Section 12.01 of the Indenture following a Tax
Event, default in the payment of interest which default continues for a period
of 30 days; (ii) default in payment of the Principal Amount, Issue Price,
accrued Original Issue Discount, Redemption Price, Purchase Price, Conversion
Payment or Change in Control Purchase Price, as the case may be, in respect of
the Securities when the same becomes due and payable; (iii) failure either to
deliver the shares of Series A Common Stock or pay cash in lieu thereof
(together with cash in lieu of fractional shares) in accordance with the terms
of the Indenture when such shares of Series A Common Stock or cash are required
to be delivered following conversion of a Security and such failure is not
remedied for a period of 10 days; (iv) failure by the Company to comply with
other agreements in the Indenture or the Securities, subject to notice and lapse
of time; or (vi) certain events of bankruptcy or insolvency. If an Event of
Default occurs and is continuing, the Trustee, or the Holders of at least 25% in
aggregate Principal Amount of the Securities at the time outstanding, may
declare all the Securities to be due and payable immediately. Certain events of
bankruptcy or insolvency are Events of Default that will result in the
Securities becoming due and payable immediately upon the occurrence of such
Events of Default.
Securityholders may not enforce the Indenture or the Securities except as
provided in the Indenture. The Trustee may refuse to enforce the Indenture or
the Securities unless it receives reasonable indemnity or security. Subject to
certain limitations, Holders of a majority in aggregate Principal Amount of the
Securities at the time outstanding may direct the Trustee in its exercise of any
trust or power. The Trustee may withhold from Securityholders notice of any
continuing Default (except a Default in payment of amounts specified in clause
(i) or (ii) above) if it determines that withholding notice is in their
interests.
17. TRUSTEE DEALINGS WITH THE COMPANY
---------------------------------
Subject to certain limitations imposed by the TIA, the Trustee under the
Indenture, in its individual or any other capacity, may become the owner or
pledgee of Securities and may otherwise deal with and collect obligations owed
to it by the Company or its Affiliates and may otherwise deal with the Company
or its Affiliates with the same rights it would have if it were not Trustee.
A-1-14
<PAGE>
18. NO RECOURSE AGAINST OTHERS
--------------------------
A director, officer, employee or stockholder, as such, of the Company shall
not have any liability for any obligations of the Company under the Securities
or the Indenture or for any claim based on, in respect of or by reason of such
obligations or their creation. By accepting a Security, each Securityholder
waives and releases all such liability. The waiver and release are part of the
consideration for the issue of the Securities.
19. AUTHENTICATION
--------------
This Security shall not be valid until an authorized signatory of the
Trustee manually signs the Certificate of Authentication on the other side of
this Security.
20. ABBREVIATIONS
-------------
Customary abbreviations may be used in the name of a Securityholder or an
assignee, such as TEN COM (=tenants in common), TEN ENT (=tenants by the
entireties), JT TEN (=joint tenants with right of survivorship and not as
tenants in common) and CUST (=custodian), and UNIF TRANS MIN ACT (=Uniform
Transfers to Minors Act).
21. GOVERNING LAW
-------------
THE INDENTURE AND THIS SECURITY SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, AS APPLIED TO CONTRACTS MADE
AND TO BE PERFORMED WITHIN THE STATE OF NEW YORK WITHOUT REGARD TO PRINCIPLES OF
CONFLICTS OF LAWS.
A-1-15
<PAGE>
ASSIGNMENT FORM CONVERSION NOTICE
To assign this Security, fill To convert this Security into
in the form below: Series A Common Stock of the
Company, check the box:
I or we assign and transfer -----
this Security to : :
: :
--------------------- -----
(Insert assignee's soc.
sec. or tax ID no.) To convert only part of this
Security, state the Principal
______________________________ Amount to be converted (which
must be $1,000 or an integral
______________________________ multiple of $1,000):
----------------
______________________________ :$ :
----------------
______________________________ If you want the stock certificate
(Print or type assignee's made out in another person's
name, address and zip code) name, fill in the form below:
and irrevocably appoint
____________________ agent ---------------
to transfer this Security on : :
the books of the Company. The ---------------
agent may substitute another (Insert person's soc.
to act for him. sec. or tax ID no.)
______________________________
______________________________
______________________________
______________________________
(Print or type person's name,
address and zip code)
_________________________________________________________________
Date:_________________ Your Signature:_________________________*
_________________________________________________________________
(Sign exactly as your name appears on the other side of this Security)
* Your signature must be guaranteed by an "eligible guarantor institution"
meeting the requirements of the Registrar, which requirements include membership
or participation in the Security Transfer Agent Medallion Program ("STAMP") or
such other "signature guarantee program" as may be determined by the Registrar
in addition to, or in substitution for, STAMP, all in accordance with the
Securities Exchange Act of 1934, as amended.
A-1-16
<PAGE>
OPTION OF HOLDER TO ELECT PURCHASE
If you want to elect to have this Security purchased by the Issuer
pursuant to Section 3.08 or Section 3.09 of the Indenture, check the appropriate
box:
Section 3.08 [ ]
Section 3.09 [ ]
If you want to elect to have only part of this Security purchased by
the Issuer pursuant to Section 3.08 or Section 3.09 of the Indenture, state the
amount you elect to have purchased:
$___________________________________________
Dated: ____________________ ___________________________________________
NOTICE: The signature on this assignment
must correspond with the name as it appears
upon the face of the within Security in
every particular without alteration or
enlargement or any change whatsoever and be
guaranteed.
Signature Guarantee:___________________________
A-1-17
<PAGE>
SCHEDULE OF EXCHANGES FOR CERTIFICATED SECURITY/2/
The following exchanges of a part of this global Security for Certificated
Securities have been made:
<TABLE>
<CAPTION>
Principal Amount
Amount of decrease Amount of increase of this global Signature of
in Principal in Principal Security following Authorized
Amount of this Amount of this such decrease Signatory of
Date of Exchange global Security global Security (or increase) Trustee
---------------- --------------- --------------- ----------- -------
<S> <C> <C> <C> <C>
</TABLE>
- -------------------
/2/. This schedule should be included only if the Security is a global Security
deposited with the Depository.
A-1-18
<PAGE>
EXHIBIT A-2
[FORM OF FACE OF REGULATION S TEMPORARY GLOBAL SECURITY]
LIQUID YIELD OPTION(TM) NOTE DUE 2017
(ZERO COUPON -- SUBORDINATED)
FOR PURPOSES OF SECTIONS 1273 AND 1275 OF THE INTERNAL REVENUE CODE OF 1986, AS
AMENDED, THE AMOUNT OF ORIGINAL ISSUE DISCOUNT WITH RESPECT TO EACH $1,000 OF
PRINCIPAL AMOUNT OF THIS SECURITY IS $608.94, THE ISSUE DATE IS APRIL 15, 1997,
AND THE YIELD TO STATED MATURITY IS 4.75% PER ANNUM (COMPUTED ON A SEMIANNUAL
BOND EQUIVALENT BASIS).
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE
OF THE DEPOSITORY TRUST COMPANY TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF
TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE
NAME OF CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY OR SUCH OTHER REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY OR SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (AND ANY PAYMENT HEREON IS MADE
TO CEDE & CO.), ANY TRANSFER PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE
BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE,& CO.,
HAS AN INTEREST HEREIN.
TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN
WHOLE, BUT NOT IN PART, TO NOMINEES OF CEDE & CO., OR TO A SUCCESSOR THEREOF OR
SUCH SUCCESSOR'S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL
BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN
ARTICLE TWO OF THE INDENTURE REFERRED TO ON THE REVERSE HEREOF.
THIS SECURITY AND THE SHARES OF SERIES A COMMON STOCK ISSUABLE UPON
CONVERSION OF THIS SECURITY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE "SECURITIES ACT"), OR ANY STATE SECURITIES LAWS. NEITHER
THIS SECURITY, THE SHARES OF SERIES A COMMON STOCK ISSUABLE UPON CONVERSION OF
THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN OR THEREIN MAY BE
REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE
DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS
EXEMPT FROM, OR NOT SUBJECT TO, REGISTRATION. UNLESS THE SHARES OF SERIES A
COMMON STOCK HAVE BEEN REGISTERED UNDER THE SECURITIES ACT, A HOLDER OF THIS
SECURITY WILL BE ABLE TO EXERCISE THE CONVERSION RIGHT ONLY IF THE HOLDER
CERTIFIES THAT IT IS A "QUALIFIED INSTITUTIONAL BUYER" OR AN INSTITUTIONAL
"ACCREDITED INVESTOR" AS DEFINED BELOW.
THE HOLDER OF THIS SECURITY, BY ITS ACCEPTANCE HEREOF, AGREES TO
OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY, PRIOR TO THE DATE (THE "RESALE
RESTRICTION TERMINATION DATE") WHICH IS TWO YEARS AFTER THE LATER OF THE
ORIGINAL ISSUE DATE HEREOF AND
A-2-1
<PAGE>
THE LAST DATE ON WHICH THE COMPANY OR ANY AFFILIATE OF THE COMPANY WAS THE OWNER
OF ANY SECURITY (OR ANY PREDECESSOR OF SUCH SECURITY) ONLY (A) TO THE COMPANY OR
ANY SUBSIDIARY THEREOF, (B) FOR SO LONG AS THE SECURITIES ARE ELIGIBLE FOR
RESALE PURSUANT TO RULE 144A, TO A PERSON IT REASONABLY BELIEVES IS A "QUALIFIED
INSTITUTIONAL BUYER" AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT THAT
PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL
BUYER TO WHICH NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON
RULE 144A, (C) TO AN INSTITUTIONAL "ACCREDITED INVESTOR" WITHIN THE MEANING OF
SUBPARAGRAPH (A)(1), (2),(3) OR (7) OF RULE 501 UNDER THE SECURITIES ACT THAT IS
ACQUIRING THE SECURITY FOR ITS OWN ACCOUNT, OR FOR THE ACCOUNT OF SUCH AN
INSTITUTIONAL "ACCREDITED INVESTOR," FOR INVESTMENT PURPOSES AND NOT WITH A VIEW
TO, OR FOR OFFER OR SALE IN CONNECTION WITH, ANY DISTRIBUTION IN VIOLATION OF
THE SECURITIES ACT, (D) PURSUANT TO A REGISTRATION STATEMENT WHICH HAS BEEN
DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (E) IN AN OFFSHORE TRANSACTION IN
ACCORDANCE WITH RULE 904 OF REGULATION S UNDER THE SECURITIES ACT, OR (F)
PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF
THE SECURITIES ACT, SUBJECT TO THE DELIVERY TO THE TRUSTEE OF AN OPINION OF
COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO THE COMPANY AND
THE TRUSTEE, AND IN EACH OF THE FOREGOING CASES, A CERTIFICATE OF TRANSFER IN
THE FORM APPEARING ON THE OTHER SIDE OF THIS SECURITY IS COMPLETED AND DELIVERED
BY THE TRANSFEROR TO THE TRUSTEE. THIS LEGEND WILL BE REMOVED UPON THE REQUEST
OF THE HOLDER AFTER THE RESALE RESTRICTION TERMINATION DATE.
THE RIGHTS ATTACHING TO THIS REGULATION S TEMPORARY GLOBAL SECURITY, AND
THE CONDITIONS AND PROCEDURES GOVERNING ITS EXCHANGE FOR CERTIFICATED
SECURITIES, ARE AS SPECIFIED IN THE INDENTURE (AS DEFINED HEREIN).
NEITHER THE HOLDER NOR THE BENEFICIAL OWNERS OF THIS REGULATION S TEMPORARY
GLOBAL SECURITY SHALL BE ENTITLED TO RECEIVE PAYMENT OF INTEREST THEREON.
[THE FOREGOING LEGEND MAY BE REMOVED FROM THIS SECURITY ON SATISFACTION OF
THE CONDITIONS SPECIFIED IN THE INDENTURE.]
A-2-2
<PAGE>
THE TIMES MIRROR COMPANY
LIQUID YIELD OPTION(TM) NOTE DUE 2017
(ZERO COUPON -- SUBORDINATED)
No. $_______________
Issue Date: April 15, 1997 CUSIP No. ___________
Issue Price: $391.06
Original Issue Discount: $608.94
(for each $1,000 Principal amount)
The Times Mirror Company, a Delaware corporation, promises to pay to
__________________________________________, or registered assigns, the Principal
Amount of ____________________ Dollars on April 15, 2017.
This Security shall not bear interest except as specified on the other side
of this Security. Original Issue Discount will accrue as specified on the other
side of this Security. This Security is convertible as specified on the other
side of this Security. All capitalized terms used herein without definition
shall have the respective meanings assigned thereto in the Indenture referred to
on the other side of this Security.
Additional provisions of this Security are set forth on the other side of
this Security.
______________________
(TM) Trademark of Merrill Lynch & Co., Inc.
A-2-3
<PAGE>
IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed under its corporate seal.
THE TIMES MIRROR COMPANY
By:
--------------------------------
Title:
ATTEST:
- -----------------------------
(Seal)
TRUSTEE'S CERTIFICATE OF
AUTHENTICATION
CITIBANK, N.A.
- -----------------------------
as Trustee, certifies that this Security
is one of the Securities referred to
in the within-mentioned Indenture.
By:
---------------------------
Authorized Signatory
Date:
-------------------------
A-2-4
<PAGE>
[Form of Reverse Side of Regulation S Temporary Global Security]
LIQUID YIELD OPTION NOTE DUE 2017
(ZERO COUPON -- SUBORDINATED)
This Regulation S Temporary Global Security is issued in respect of an
offering of $435,000,000 Liquid Yield Option Notes due 2007 (Zero Coupon --
Subordinated) (the "Securities") of the Company, pursuant to an Indenture (the
"Indenture") dated as of April 15, 1997, among the Company and Citibank, N.A.,
as trustee (the "Trustee"), and is governed by the terms and conditions of the
Indenture, which terms and conditions are incorporated herein by reference and,
except as otherwise provided herein, shall be binding on the Company and the
Holder hereof as if fully set forth herein. Unless the context otherwise
requires, the terms used herein shall have the meanings specified in the
Indenture.
This Regulation S Temporary Global Security is exchangeable in whole or in
part for one or more Regulation S Permanent Global Securities or Restricted
Global Securities only (i) on or after the termination of the 40-day restricted
period (as defined in Regulation S) and (ii) upon presentation of certificates
(accompanied by an Opinion of Counsel, if applicable) required by Article II of
the Indenture. Upon exchange of all interest in this Regulation S Temporary
Global Security for one or more Regulation S Permanent Global Securities or
Restricted Global Securities, the Trustee shall cancel this Regulation S
Temporary Global Security.
This Regulation S Temporary Global Security shall not become valid or
obligatory until the certificate of authentication hereon shall have been duly
manually signed by the Trustee in accordance with the Indenture. This Regulation
S Temporary Global Security shall be governed by and construed in accordance
with the laws of the State of the New York. All references to "$," "Dollars,"
"dollars" or "U.S. $" are to such coin or currency of the United States of
America as at the time shall be legal tender for the payment of public and
private debts therein.
1. INTEREST
--------
This Security shall not bear interest except as specified in this paragraph
or in paragraph 10 hereof. If the Principal Amount hereof or any portion of such
Principal Amount is not paid when due (whether upon acceleration pursuant to
Section 6.02 of the Indenture, upon the date set for payment of the Redemption
Price pursuant to paragraph 5 hereof, upon the date set for payment of a
Purchase Price or Change in Control Purchase Price pursuant to paragraph 6
hereof, upon the date set for a Conversion Payment pursuant to paragraph 9
hereof or upon the Stated Maturity of this Security) or if shares of Series A
Common Stock (or cash in lieu of fractional shares) in respect of a
A-2-5
<PAGE>
conversion of this Security in accordance with the terms of Article XI of the
Indenture is not delivered when due, then in each such case the overdue amount
shall bear interest at the rate of 4.75% per annum, compounded semiannually (to
the extent that the payment of such interest shall be legally enforceable),
which interest shall accrue from the date such overdue amount was due to the
date payment of such amount, including interest thereon, has been made or duly
provided for. All such interest shall be payable on demand.
Original Issue Discount (the difference between the Issue Price and the
Principal Amount of the Security), in the period during which a Security remains
outstanding, shall accrue at 4.75% per annum, on a semiannual bond equivalent
basis using a 360-day year composed of twelve 30-day months, commencing on April
15, 1997, and cease to accrue on the earlier of (a) the date on which the
Principal Amount at Stated Maturity hereof or any portion of such Principal
Amount at Stated Maturity becomes due and payable and (b) any Redemption Date,
Conversion Date, Change in Control Purchase Date, Purchase Date or other date on
which such Original Issue Discount shall cease to accrue in accordance with
Section 2.08 of the Indenture.
2. METHOD OF PAYMENT
-----------------
Subject to the terms and conditions of the Indenture, The Times Mirror
Company (the "Company") will make payments in respect of the Securities to the
persons who are registered Holders of Securities at the close of business on the
Business Day preceding the Redemption Date or Stated Maturity, as the case may
be, or at the close of business on a Purchase Date, Change in Control Purchase
Date or Conversion Date, as the case may be. Holders must surrender Securities
to a Paying Agent to collect such payments in respect of the Securities. The
Company will pay cash amounts in money of The United States of America that at
the time of payment is legal tender for payment of public and private debts.
However, the Company may make such cash payments in respect of a certificated
Security, if applicable, by check payable in such money.
3. PAYING AGENT, CONVERSION AGENT AND REGISTRAR
--------------------------------------------
Initially, Citibank, N.A., a national banking association, as trustee (the
"Trustee"), will act as Paying Agent, Conversion Agent and Registrar. The
Company may appoint and change any Paying Agent, Conversion Agent, Registrar or
co-registrar, upon notice to the Trustee and the Holders. The Company or any of
its Subsidiaries or any of their Affiliates may act as Paying Agent, Conversion
Agent, Registrar or co-registrar.
A-2-6
<PAGE>
4. INDENTURE
---------
The Company issued the Securities under an Indenture, dated as of April 15,
1997 (the "Indenture"), between the Company and the Trustee. The terms of the
Securities include those stated in the Indenture and those made part of the
Indenture by reference to the Trust Indenture Act of 1939, as amended by the
Trust Indenture Reform Act of 1990, and, as in effect on the date of the
Indenture (the "TIA"), except as provided in Section 9.03 of the Indenture.
Capitalized terms used herein or on the face hereof and not defined herein have
the meanings ascribed thereto in the Indenture. The Securities are subject to
all such terms, and Securityholders are referred to the Indenture and the TIA
for a statement of those terms.
The Securities are general unsecured obligations of the Company limited to
the aggregate Principal Amount at Stated Maturity specified in Section 2.02 of
the Indenture (subject to Section 2.07 of the Indenture). The Indenture does not
limit other indebtedness of the Company, secured or unsecured, including Senior
Indebtedness.
5. REDEMPTION AT THE OPTION OF THE COMPANY
---------------------------------------
No sinking fund is provided for the Securities. The Securities are
redeemable as a whole, or from time to time in part, at any time at the option
of the Company at the Redemption Prices set forth below, provided, however, that
-------- -------
the Securities are not redeemable prior to April 15, 2002.
The table below shows the Redemption Prices of a Security per $1,000
Principal Amount at Stated Maturity on the dates shown below and at Stated
Maturity, which prices reflect accrued Original Issue Discount calculated to
each such date. The Redemption Price of a Security redeemed between such dates
would include an additional amount reflecting the additional Original
A-2-7
<PAGE>
Issue Discount accrued from and including the next preceding date in the table
to, but excluding, the Redemption Date.
<TABLE>
<CAPTION>
(1) (2) (3)
ACCRUED
ORIGINAL
LYON ISSUE REDEMPTION
ISSUE DISCOUNT PRICE
REDEMPTION DATE PRICE AT 4.75% (1) + (2)
- --------------- ------- ------- ---------
<S> <C> <C> <C>
April 15, 2002.... $391.06 $103.46 $ 494.52
April 15, 2003.... 391.06 127.23 518.29
April 15, 2004.... 391.06 152.14 543.20
April 15, 2005.... 391.06 178.25 569.31
April 15, 2006.... 391.06 205.61 596.67
April 15, 2007.... 391.06 234.29 625.35
April 15, 2008.... 391.06 264.34 655.40
April 15, 2009.... 391.06 295.85 686.91
April 15, 2010.... 391.06 328.86 719.92
April 15, 2011.... 391.06 363.46 754.52
April 15, 2012.... 391.06 399.73 790.79
April 15, 2013.... 391.06 437.74 828.80
April 15, 2014.... 391.06 477.57 868.63
April 15, 2015.... 391.06 519.32 910.38
April 15, 2016.... 391.06 563.08 954.14
At Maturity....... 391.06 608.94 1,000.00
</TABLE>
If converted to a semiannual coupon note following the occurrence of a Tax
Event, this Security will be redeemable at the Restated Principal Amount plus
interest accrued from the date of such conversion to, but excluding, the
Redemption Date; but in no event will this Security be redeemable before April
15, 2002.
6. PURCHASE BY THE COMPANY AT THE OPTION OF THE HOLDER; CHANGE IN CONTROL
----------------------------------------------------------------------
Subject to the terms and conditions of the Indenture, the Company shall
become obligated to purchase, at the option of the Holder, the Securities held
by such Holder on the following Purchase Dates and at the following Purchase
Prices per $1,000 Principal Amount at Stated Maturity of such Securities, upon
delivery of a Purchase Notice containing the information set forth in the
Indenture, at any time from the opening of business on the date that is 20
Business Days prior to such Purchase Date until the close of business on such
Purchase Date and upon delivery of the Securities to the Paying Agent by the
Holder as set forth in the Indenture. Such Purchase Price may be paid, at the
option of the Company, in cash or by the issuance and delivery of shares of
Series A Common Stock of the Company, or in any combination thereof.
A-2-8
<PAGE>
<TABLE>
<CAPTION>
PURCHASE DATE PURCHASE PRICE
-------------- --------------
<S> <C>
April 15, 2002 $494.52
April 15, 2007 $625.35
April 15, 2012 $790.79
</TABLE>
If prior to a Purchase Date this Security has been converted to a
semiannual coupon note following the occurrence of a Tax Event, the Purchase
Price will be equal to the Restated Principal Amount plus accrued interest from
the date of conversion to, but excluding, the Purchase Date.
Subject to the terms and conditions of the Indenture, if any Change in
Control occurs on or prior to April 15, 2002, the Company shall, at the option
of the Holders, purchase all Securities for which a Change in Control Purchase
Notice shall have been delivered as provided in the Indenture and not withdrawn,
on the date that is 35 Business Days after the occurrence of such Change in
Control, for a Change in Control Purchase Price equal to the Issue Price plus
accrued Original Issue Discount to the Change in Control Purchase Date, which
Change in Control Purchase Price shall be paid in cash. If prior to a Change in
Control Purchase Date this Security has been converted to a semiannual coupon
note following the occurrence of a Tax Event, the Change in Control Purchase
Price shall be equal to the Restated Principal Amount plus accrued interest from
the date of conversion to, but excluding, the Change in Control Purchase Date.
Holders have the right to withdraw any Purchase Notice or Change in Control
Purchase Notice, as the case may be, by delivering to the Paying Agent a written
notice of withdrawal in accordance with the provisions of the Indenture.
If cash sufficient to pay the Purchase Price or Change in Control Purchase
Price of all Securities or portions thereof to be purchased as of the Purchase
Date or the Change in Control Purchase Date, as the case may be, is deposited
with the Paying Agent on the Business Day following the Purchase Date or the
Change in Control Purchase Date, as the case may be, Original Issue Discount
ceases to accrue on such Securities (or portions thereof) on and after such
date, and the Holders thereof shall have no other rights as such (other than the
right to receive the Purchase Price or Change in Control Purchase Price, as the
case may be, upon surrender of such Security).
7. NOTICE OF REDEMPTION
--------------------
Notice of redemption under paragraph 5 will be mailed at least 30 days but
not more than 60 days before the Redemption Date to each Holder of Securities to
be redeemed at the Holder's registered address. If money sufficient to pay the
Redemption Price of all Securities (or portions thereof) to be redeemed on
A-2-9
<PAGE>
the Redemption Date is deposited with the Paying Agent prior to or on the
Redemption Date, on and after such date Original Issue Discount ceases to accrue
on such Securities or portions thereof. Securities in denominations larger than
$1,000 of Principal Amount may be redeemed in part but only in integral
multiples of $1,000 of Principal Amount.
8. SUBORDINATION
-------------
The Securities are subordinated to all existing and future Senior
Indebtedness. To the extent provided in the Indenture, Senior Indebtedness must
be paid before the Securities may be paid. The Indenture does not limit the
present or future amount of Senior Indebtedness the Company may have. The
Company agrees, and each Securityholder by accepting a Security agrees, to the
subordination and authorizes the Trustee to give it effect and appoints the
Trustee as attorney-in-fact for such purpose.
9. CONVERSION
----------
Subject to the next two succeeding sentences, a Holder of a Security may
convert it into shares of Series A Common Stock of the Company at any time
before the close of business on April 15, 2017; provided, however, that if a
-------- -------
Security is called for redemption, the Holder may convert it at any time before
the close of business on the Redemption Date. The number of shares of Series A
Common Stock to be delivered upon conversion of a Security into Series A Common
Stock for each $1,000 of Principal Amount shall be equal to the Conversion Rate.
A Security in respect of which a Holder has delivered a Purchase Notice or
Change in Control Purchase Notice exercising the option of such Holder to
require the Company to purchase such Security may be converted only if the
notice of exercise is withdrawn in accordance with the terms of the Indenture.
The initial Conversion Rate is 5.828 shares of Series A Common Stock per
$1,000 Principal Amount, subject to adjustment in certain events described in
the Indenture. The Company will deliver cash or a check in lieu of any
fractional share of Series A Common Stock.
The Holders' right to convert Securities into shares of Series A Common
Stock is subject to the Company's right to elect to instead pay such Holder the
amount of cash set forth in the next succeeding sentence, in lieu of delivering
such shares of Series A Common Stock; provided, however, that if such payment of
-------- -------
cash is not permitted pursuant to the provisions of the Indenture or the
provisions of any other agreement or instrument to which the Company is a party
or by which it is bound or otherwise, the Company shall deliver shares of Series
A Common Stock (and cash in lieu of fractional shares of Series A Common Stock)
in accordance with Article XI of the Indenture, whether or not the Company has
delivered a notice pursuant to Section 11.02 to the
A-2-10
<PAGE>
effect that the securities will be paid in cash. The amount of cash to be paid
for each $1,000 Principal Amount of a Security shall be equal to the Sale Price
of a share of Series A Common Stock on the Trading Day immediately prior to the
related Conversion Date multiplied by the Conversion Rate in effect on such
Trading Day.
The Company shall not pay cash in lieu of delivering shares of Series A
Common Stock upon the conversion of any Security pursuant to the terms of
Article XI of the Indenture (other than cash in lieu of fractional shares) if
there has occurred (prior to, on or after, as the case may be, the Conversion
Date or the date on which the Company delivers its notice of whether each
Security shall be converted into shares of Series A Common Stock or cash) and is
continuing an Event of Default (other than a default in such payment on such
Securities), provided, however, that this sentence shall not apply in the event
-------- -------
that an Event of Default occurs after such cash is paid.
In the event the Company exercises its option pursuant to Section 12.01 of
the Indenture to have interest in lieu of Original Issue Discount accrue on the
Security following a Tax Event, the Holder will be entitled on conversion to
receive the same number of shares of Series A Common Stock such Holder would
have received if the Company had not exercised such option. If the Company
exercises such option, 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 of such Interest Payment Date
(except Securities to be redeemed on a date within such period) must be
accompanied by payment of an amount equal to the interest thereon that the
registered Holder is to receive. Except where Securities surrendered for
conversion must be accompanied by payment as described above, no interest on
converted Securities will be payable by the Company on any Interest Payment Date
subsequent to the date of conversion.
To convert a Security a Holder must (i) complete and manually sign the
conversion notice on the back of the Security (or complete and manually sign a
facsimile of such notice) and deliver such notice to the Conversion Agent (or
the office or agency referred to in Section 4.05 of the Indenture) or, if
applicable, complete and deliver to The Depository Trust Company ("DTC", which
term includes any successor thereto) the appropriate instruction form for
conversion pursuant to DTC's book entry conversion program, (ii) surrender the
Security to a Conversion Agent by physical or book entry delivery (which is not
necessary in the case of conversion pursuant to DTC's book entry conversion
program), (iii) furnish appropriate endorsements and transfer documents if
required by the Conversion Agent, the Company or the Trustee and (iv) pay any
transfer or similar tax, if required. Book entry delivery of a Security to the
Conversion Agent may be made by any financial institution that is a
A-2-11
<PAGE>
participant in DTC; conversion through DTC's book entry conversion program is
available for any security that is held in an account maintained at DTC by any
such participant.
A Holder may convert a portion of a Security if the Principal Amount of such
portion is $1,000 or an integral multiple of $1,000. No payment or adjustment
will be made for dividends on the Common Stock except as provided in the
Indenture. On conversion of a Security, that portion of accrued Original Issue
Discount (or interest, if the Company has exercised its option provided for in
paragraph 10 hereof) attributable to the period from the Issue Date (or, if the
Company has exercised the option referred to in paragraph 10 hereof, the later
of (x) the date of such exercise and (y) the date on which interest was last
paid) to the Conversion Date with respect to the converted Security shall not be
cancelled, extinguished or forfeited, but rather shall be deemed paid in full to
the Holder thereof through the delivery of shares of Series A Common Stock in
exchange for the Security being converted pursuant to the terms hereof.
The Conversion Rate will be adjusted for dividends or distributions on
Common Stock payable in Common Stock or other Capital Stock; subdivisions,
combinations or certain reclassifi cations of Common Stock; distributions to all
holders of Common Stock of certain rights to purchase Common Stock for a period
expiring within 60 days at less than the Sale Price at the Time of
Determination; and distributions to such holders of assets or debt securities of
the Company or certain rights to purchase securities of the Company (excluding
certain cash dividends or distributions). However, no adjustment need be made if
Securityholders may participate in the transaction or in certain other cases.
The Company from time to time may voluntarily increase the Conversion Rate.
If the Company is a party to a consolidation, merger or binding share
exchange of the type specified in the Indenture, or certain transfers of all or
substantially all of its assets to another person, or in certain other
circumstances described in the Indenture, the right to convert a Security into
Series A Common Stock may be changed into a right to convert it into securities,
cash or other assets of the Company or another person.
10. TAX EVENT
---------
(a) From and after the date (the "Tax Event Date") of the occurrence of a
Tax Event, at the option of the Company, interest in lieu of future Original
Issue Discount shall accrue at 4.75% per annum on a principal amount per
Security (the "Restated Principal Amount") equal to the Issue Price plus
Original Issue Discount accrued to the date immediately prior to the Tax Event
Date and shall be payable semiannually on April 15 and October 15 of each year
(each an "Interest Payment Date") to holders of
A-2-12
<PAGE>
record at the close of business on April 15 or October 15 (each a "Regular
Record Date") immediately preceding such Interest Payment Date. Interest will
be computed on the basis of a 360-day year comprised of twelve 30-day months and
will accrue from the most recent date to which interest has been paid or, if no
interest has been paid, from the Tax Event Date.
(b) Interest on any Security that is payable, and is punctually paid or
duly provided for, on any Interest Payment Date shall be paid to the person in
whose name that Security is registered at the close of business on the Regular
Record Date for such interest at the office or agency of the Company maintained
for such purpose. Each installment of interest on any Security shall be paid in
same-day funds by transfer to an account maintained by the payee located inside
the United States. In the case of a permanent global Security, interest payable
on any Interest Payment Date will be paid to DTC, Euroclear and/or CEDEL, as the
case may be, with respect to that portion of such permanent global Security held
for its account by Cede & Co. or the London office of a depositary, as the case
may be, for the purpose of permitting such party to credit the interest received
by it in respect of such permanent global Security to the accounts of the
beneficial owners thereof.
(c) Except as otherwise specified with respect to the Securities, any
interest on any Security 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 registered Holder thereof on the
relevant Regular Record Date by virtue of having been such Holder, and such
Defaulted Interest may be paid by the Company as provided for in Section
12.02(b) of the Indenture.
11. CONVERSION ARRANGEMENT ON CALL FOR REDEMPTION
---------------------------------------------
Any Securities called for redemption, unless surrendered for conversion
before the close of business on the Redemption Date, may be deemed to be
purchased from the Holders of such Securities at an amount not less than the
Redemption Price, by one or more investment bankers or other purchasers who may
agree with the Company to purchase such Securities from the Holders and to make
payment for such Securities to the Trustee in trust for such Holders.
12. DENOMINATIONS; TRANSFER; EXCHANGE
---------------------------------
The Securities are in fully registered form, without coupons, in
denominations of $250,000 of Principal Amount and integral multiples of $1,000
in excess thereof. A Holder may transfer or exchange Securities in accordance
with the Indenture. The Registrar may require a Holder, among other things, to
furnish appropriate endorsements and transfer documents and to pay any taxes and
fees required by law or permitted by the
A-2-13
<PAGE>
Indenture. The Registrar need not transfer or exchange any Securities selected
for redemption (except, in the case of a Security to be redeemed in part, the
portion of the Security not to be redeemed) or any Securities in respect of
which a Purchase Notice or Change in Control Purchase Notice has been given and
not withdrawn (except, in the case of a Security to be purchased in part, the
portion of the Security not to be purchased) or any Securities for a period of
15 days before a selection of Securities to be redeemed.
13. PERSONS DEEMED OWNERS
---------------------
The registered Holder of this Security may be treated as the owner of this
Security for all purposes.
14. UNCLAIMED MONEY OR SECURITIES
-----------------------------
The Trustee and the Paying Agent shall return to the Company upon written
request any money or securities held by them for the payment of any amount with
respect to the Securities that remains unclaimed for two years, provided,
--------
however, that the Trustee or such Paying Agent, before being required to make
- -------
any such return, may at the expense of the Company cause to be published once in
The Wall Street Journal or another newspaper of national circulation or mail to
- -----------------------
each such Holder notice that such money or securities remains unclaimed and
that, after a date specified therein, which shall not be less than 30 days from
the date of such publication or mailing, any unclaimed money or securities then
remaining will be returned to the Company. After return to the Company, Holders
entitled to the money or securities must look to the Company for payment as
general creditors unless an applicable abandoned property law designates another
person, and the Trustee and the Paying Agent shall have no further liability
with respect to such money or securities for that period commencing after the
return thereof.
15. AMENDMENT; WAIVER
-----------------
Subject to certain exceptions set forth in the Indenture, (i) the Indenture
or the Securities may be amended with the written consent of the Holders of at
least a majority in aggregate Principal Amount of the Securities at the time
outstanding and (ii) certain defaults or noncompliance with certain provisions
may be waived with the written consent of the Holders of a majority in aggregate
Principal Amount of the Securities at the time outstanding. Subject to certain
exceptions set forth in the Indenture, without the consent of any
Securityholder, the Company and the Trustee may amend the Indenture or the
Securities to cure any ambiguity, defect or inconsistency, or to comply with
Article V or Section 11.14 of the Indenture, or to provide for uncertificated
Securities in addition to or in place of certificated Securities, or to add to
the covenants or obligations of the Company thereunder, or to
A-2-14
<PAGE>
surrender any right, power or option conferred upon the Company, or to make any
change to comply with the TIA, or any amendment thereafter, or any requirement
of the SEC in connection with the qualification of the Indenture under the TIA
or any amendment thereof or to make any change that does not adversely affect
the rights of any Securityholder.
16. DEFAULTS AND REMEDIES
---------------------
Under the Indenture, Events of Default include (i) after exercise by the
Company of its option pursuant to Section 12.01 of the Indenture following a Tax
Event, default in the payment of interest which default continues for a period
of 30 days; (ii) default in payment of the Principal Amount, Issue Price,
accrued Original Issue Discount, Redemption Price, Purchase Price, Conversion
Payment or Change in Control Purchase Price, as the case may be, in respect of
the Securities when the same becomes due and payable; (iii) failure either to
deliver the shares of Series A Common Stock or pay cash in lieu thereof
(together with cash in lieu of fractional shares) in accordance with the terms
of the Indenture when such shares of Series A Common Stock or cash are required
to be delivered following conversion of a Security and such failure is not
remedied for a period of 10 days; (iv) failure by the Company to comply with
other agreements in the Indenture or the Securities, subject to notice and lapse
of time; or (vi) certain events of bankruptcy or insolvency. If an Event of
Default occurs and is continuing, the Trustee, or the Holders of at least 25% in
aggregate Principal Amount of the Securities at the time outstanding, may
declare all the Securities to be due and payable immediately. Certain events of
bankruptcy or insolvency are Events of Default that will result in the
Securities becoming due and payable immediately upon the occurrence of such
Events of Default.
Securityholders may not enforce the Indenture or the Securities except as
provided in the Indenture. The Trustee may refuse to enforce the Indenture or
the Securities unless it receives reasonable indemnity or security. Subject to
certain limitations, Holders of a majority in aggregate Principal Amount of the
Securities at the time outstanding may direct the Trustee in its exercise of any
trust or power. The Trustee may withhold from Securityholders notice of any
continuing Default (except a Default in payment of amounts specified in clause
(i) or (ii) above) if it determines that withholding notice is in their
interests.
17. TRUSTEE DEALINGS WITH THE COMPANY
---------------------------------
Subject to certain limitations imposed by the TIA, the Trustee under the
Indenture, in its individual or any other capacity, may become the owner or
pledgee of Securities and may otherwise deal with and collect obligations owed
to it by the Company or its Affiliates and may otherwise deal with the Company
A-2-15
<PAGE>
or its Affiliates with the same rights it would have if it were not Trustee.
18. NO RECOURSE AGAINST OTHERS
--------------------------
A director, officer, employee or stockholder, as such, of the Company shall
not have any liability for any obligations of the Company under the Securities
or the Indenture or for any claim based on, in respect of or by reason of such
obligations or their creation. By accepting a Security, each Securityholder
waives and releases all such liability. The waiver and release are part of the
consideration for the issue of the Securities.
19. AUTHENTICATION
--------------
This Security shall not be valid until an authorized signatory of the
Trustee manually signs the Certificate of Authentication on the other side of
this Security.
20. ABBREVIATIONS
-------------
Customary abbreviations may be used in the name of a Securityholder or an
assignee, such as TEN COM (=tenants in common), TEN ENT (=tenants by the
entireties), JT TEN (=joint tenants with right of survivorship and not as
tenants in common) and CUST (=custodian), and UNIF TRANS MIN ACT (=Uniform
Transfers to Minors Act).
21. GOVERNING LAW
-------------
THE INDENTURE AND THIS SECURITY SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, AS APPLIED TO CONTRACTS MADE
AND TO BE PERFORMED WITHIN THE STATE OF NEW YORK WITHOUT REGARD TO PRINCIPLES OF
CONFLICTS OF LAWS.
A-2-16
<PAGE>
SCHEDULE OF EXCHANGES FOR GLOBAL SECURITIES
The following exchanges of a part of this Regulation S Temporary
Global Security for other global Securities have been made:
<TABLE>
<CAPTION>
Amount of Amount of Principal Amount
decrease increase of this global Signature of
in Principal in Principal Security following Authorized
Amount of this Amount of this such decrease Signatory of
Date of Exchange global Security global Security (or increase) Trustee
---------------- --------------- --------------- ----------- -------
<S> <C> <C> <C> <C>
</TABLE>
A-2-17
<PAGE>
EXHIBIT B-1
FORM OF CERTIFICATE FOR EXCHANGE OR REGISTRATION OF TRANSFER
FROM RESTRICTED GLOBAL SECURITY TO REGULATION S GLOBAL SECURITY
(Pursuant to Section 2.11(a)(i) of the Indenture)
CITIBANK, N.A.
120 Wall Street
New York, New York 10043
Attention: Corporate Trust Administration
Re: $435,000,000 Liquid Yield Option Notes due 2017 (Zero Coupon --
Subordinated) of The Times Mirror Company
Reference is hereby made to the Indenture, dated as of April 15, 1997
(the "Indenture"), between The Times Mirror Company (the "Company") and
Citibank, N.A., as trustee. Capitalized terms used but not defined herein shall
have the meanings given to them in the Indenture.
This letter relates to $_______ principal amount of Securities which
are evidenced by one or more Restricted Global Securities (CUSIP No._________)
and held with the Depositary in the name of ____________________________ (the
"Transferor"). The Transferor has requested a transfer of such beneficial
interest in the Securities to a person who will take delivery thereof in the
form of an equal principal amount of Securities evidenced by one or more
Regulation S Global Securities (CUSIP No. __________), which amount, immediately
after such transfer, is to be held with the Depositary.
In connection with such request and in respect of such Securities, the
Transferor hereby certifies that such transfer has been effected in compliance
with the transfer restrictions applicable to the global Securities and pursuant
to and in accordance with Rule 903 or Rule 904 under the United States
Securities Act of 1933, as amended (the "Securities Act"), and accordingly the
Transferor hereby further certifies that:
(1) The offer of the Securities was not made to a person in the United
States;
(2) either:
(a) at the time the buy order was originated, the transferee was
outside the United States or the Transferor and any person acting
on its behalf reasonably believed and believes that the
transferee was outside the United States; or
B-1-1
<PAGE>
(b) the transaction was executed in, on or through the facilities of
a designated offshore securities market and neither the
Transferor nor any person acting on its behalf knows that the
transaction was prearranged with a buyer in the United States;
(3) no directed selling efforts have been made in contravention of the
requirements of Rule 904(b) of Regulation S;
(4) the transaction is not part of a plan or scheme to evade the
registration requirements of the Securities Act; and
(5) upon completion of the transaction, the beneficial interest being
transferred as described above is to be held with the Depositary.
Upon giving effect to this request to exchange a beneficial interest
in a Restricted Global Security for a beneficial interest in a Regulation S
Global Security, the resulting beneficial interest shall be subject to the
restrictions on transfer applicable to Regulation S Global Securities pursuant
to the Indenture and the Securities Act and, if such transfer occurs prior to
the end of the 40-day restricted period associated with the initial offering of
Securities, the additional restrictions applicable to transfers of interest in
the Regulation S Temporary Global Security.
This certificate and the statements contained herein are made for your
benefit and the benefit of the Company and Merrill Lynch & Co., Merrill Lynch,
Pierce, Fenner & Smith Incorporated, the initial purchaser of such Securities
being transferred. Terms used in this certificate and not otherwise defined in
the Indenture have the meanings set forth in Regulation S under the Securities
Act.
__________________________
[Insert Name of Transferor]
By:
------------------------
Name:
Title:
Dated: ___________
cc: The Times Mirror Company
B-1-2
<PAGE>
EXHIBIT B-2
FORM OF CERTIFICATE FOR EXCHANGE OR REGISTRATION OF TRANSFER
FROM REGULATION S GLOBAL SECURITY TO RESTRICTED GLOBAL SECURITY
(Pursuant to Section 2.11(a)(ii) of the Indenture)
CITIBANK, N.A.
120 Wall Street
New York, New York 10043
Attention: Corporate Trust Administration
Re: $435,000,000 Liquid Yield Option Notes due 2017 (Zero Coupon --
Subordinated) of The Times Mirror Company
Reference is hereby made to the Indenture, dated as of April 15, 1997
(the "Indenture"), between The Times Mirror Company (the "Company") and
Citibank, N.A., as trustee. Capitalized terms used but not defined herein shall
have the meanings given to them in the Indenture.
This letter relates to $_______ principal amount of Securities which
are evidenced by one or more Regulation S Global Securities (CUSIP No.
__________) and held with the Depositary in the name of ______________________
(the "Transferor"). The Transferor has requested a transfer of such beneficial
interest in the Securities to a person who will take delivery thereof in the
form of an equal principal amount of Securities evidenced by one or more
Restricted Global Securities (CUSIP No. _________), to be held with the
Depositary.
In connection with such request and in respect of such Securities, the
Transferor hereby certifies that:
[CHECK ONE]
[ ] such transfer is being effected pursuant to and in accordance with
Rule 144A under the United States Securities Act of 1933, as amended
(the "Securities Act"), and, accordingly, the Transferor hereby
further certifies that the Securities are being transferred to a
person that the Transferor reasonably believes is purchasing the
Securities for its own account, or for one or more accounts with
respect to which such person exercises sole investment discretion, and
such person and each such account is a "qualified institutional buyer"
within the meaning of Rule 144A in a transaction meeting the
requirements of Rule 144A;
or
B-2-1
<PAGE>
[ ] such transfer is being effected pursuant to and in accordance with
Rule 144 under the Securities Act;
or
[ ] such transfer is being effected pursuant to an effective registration
statement under the Securities Act;
or
[ ] such transfer is being effected pursuant to an exemption from the
registration requirements of the Securities Act other than Rule 144A
or Rule 144, and the Transferor hereby further certifies that the
Securities are being transferred in compliance with the transfer
restrictions applicable to the global Securities and in accordance
with the requirements of the exemption claimed, which certification is
supported by an Opinion of Counsel, provided by the transferor or the
transferee (a copy of which the Transferor has attached to this
certification) in form reasonably acceptable to the Company and to the
Registrar, to the effect that such transfer is in compliance with the
Securities Act;
and such Securities are being transferred in compliance with any applicable blue
sky securities laws of any state of the United States.
Upon giving effect to this request to exchange a beneficial interest
in Regulation S Global Securities for a beneficial interest in Restricted Global
Securities, the resulting beneficial interest shall be subject to the
restrictions on transfer applicable to Restricted Global Securities pursuant to
the Indenture and the Securities Act.
This certificate and the statements contained herein are made for your
benefit and the benefit of the Company and Merrill Lynch & Co., Merrill Lynch,
Pierce, Fenner & Smith Incorporated, the initial purchaser of such Securities
being transferred. Terms used in this certificate and not otherwise defined in
the Indenture have the meanings set forth in Regulation S under the Securities
Act.
__________________________
[Insert Name of Transferor]
By:
-----------------------------
Name:
Title:
Dated: _______________________
cc: The Times Mirror Company
B-2-2
<PAGE>
EXHIBIT B-3
FORM OF CERTIFICATE FOR EXCHANGE OR REGISTRATION OF TRANSFER
OF CERTIFICATED SECURITIES
(Pursuant to Section 2.11(b) of the Indenture)
CITIBANK, N.A.
120 Wall Street
New York, New York 10043
Attention: Corporate Trust Administration
Re: $435,000,000 Liquid Yield Option Notes due 2017 (Zero Coupon --
Subordinated) of The Times Mirror Company
Reference is hereby made to the Indenture, dated as of April 15, 1997
(the "Indenture"), between The Times Mirror Company (the "Company") and
Citibank, N.A., as trustee. Capitalized terms used but not defined herein shall
have the meanings given to them in the Indenture.
In connection with such request and in respect of the Securities
surrendered to the Trustee herewith for exchange (the "Surrendered Securities"),
the Holder of such Surrendered Securities hereby certifies that:
[CHECK ONE]
[ ] the Surrendered Securities are being acquired for the Transferor's own
account, without transfer;
or
[ ] the Surrendered Securities are being transferred to the Company;
or
[ ] the Surrendered Securities are being transferred pursuant to and in
accordance with Rule 144A under the United States Securities Act of
1933, as amended (the "Securities Act"), and, accordingly, the
Transferor hereby further certifies that the Surrendered Securities
are being transferred to a person that the Transferor reasonably
believes is purchasing the Surrendered Securities for its own account,
or for one or more accounts with respect to which such person
exercises sole investment discretion, and such person and each such
account is a "qualified institutional buyer" within the meaning of
Rule 144A, in each case in a transaction meeting the requirements of
Rule 144A;
B-3-1
<PAGE>
or
[ ] the Surrendered Securities are being transferred in a transaction
permitted by Rule 144 under the Securities Act;
or
[ ] the Surrendered Securities are being transferred pursuant to an
effective registration statement under the Securities Act;
or
[ ] such transfer is being effected pursuant to an exemption from the
registration requirements of the Securities Act other than Rule 144A
or Rule 144, and the Transferor hereby further certifies that the
Securities are being transferred in compliance with the transfer
restrictions applicable to the global Securities and in accordance
with the requirements of the exemption claimed, which certification is
supported by an Opinion of Counsel, provided by the transferor or the
transferee (a copy of which the Transferor has attached to this
certification) in form reasonably acceptable to the Company and to the
Registrar, to the effect that such transfer is in compliance with the
Securities Act;
and the Surrendered Securities are being transferred in compliance with any
applicable blue sky securities laws of any state of the United States.
This certificate and the statements contained herein are made for your
benefit and the benefit of the Company and Merrill Lynch & Co., Merrill Lynch,
Pierce, Fenner & Smith Incorporated, the initial purchaser of such Securities
being transferred. Terms used in this certificate and not otherwise defined in
the Indenture have the meanings set forth in Regulation S under the Securities
Act.
__________________________
[Insert Name of Transferor]
By:
----------------------------
Name:
Title:
Dated: _______________
cc: The Times Mirror Company
B-3-2
<PAGE>
EXHIBIT B-4
FORM OF CERTIFICATE FOR EXCHANGE OR
REGISTRATION OF TRANSFER FROM RESTRICTED
GLOBAL SECURITY OR REGULATION S PERMANENT
GLOBAL SECURITY TO CERTIFICATED SECURITY
(Pursuant to Section 2.11(c) of the Indenture)
CITIBANK, N.A.
120 Wall Street
New York, New York 10043
Attention: Corporate Trust Administration
Re: $435,000,000 Liquid Yield Option Notes due 2017 (Zero Coupon --
Subordinated) of The Times Mirror Company
Reference is hereby made to the Indenture, dated as of April 15, 1997
(the "Indenture"), between The Times Mirror Company (the "Company") and
Citibank, N.A., as trustee. Capitalized terms used but not defined herein shall
have the meanings given to them in the Indenture.
This letter relates to $_______ principal amount of Securities which
are evidenced by one or more Restricted Global Securities (CUSIP No.__________)
or Regulation S Permanent Global Securities (CUSIP No. __________) and held with
the Depositary in the name of ____________________________ (the "Transferor").
The Transferor has requested a transfer of such beneficial interest in the
Securities to a person who will take delivery thereof in the form of an equal
principal amount of Securities evidenced by one or more Certificated Securities
(CUSIP No. __________), which amount, immediately after such transfer, is to be
held with the Depositary.
In connection with such request and in respect of the Securities
surrendered to the Trustee herewith for exchange (the "Surrendered Securities"),
the Holder of such Surrendered Securities hereby certifies that:
[CHECK ONE]
[ ] the Surrendered Securities are being transferred to the beneficial
owner of such Securities;
or
[ ] the Surrendered Securities are being transferred pursuant to and in
accordance with Rule 144A under the United States Securities Act of
1933, as amended (the "Securities Act"), and, accordingly, the
Transferor hereby further certifies that the Surrendered Securities
are being transferred to a person that the Transferor reasonably
believes is purchasing the Surrendered
B-4-1
<PAGE>
[ ] Securities for its own account, or for one or more accounts with
respect to which such person exercises sole investment discretion, and
such person and each such account is a "qualified institutional buyer"
within the meaning of Rule 144A, in each case in a transaction meeting
the requirements of Rule 144A;
or
[ ] the Surrendered Securities are being transferred in a transaction
permitted by Rule 144 under the Securities Act;
or
[ ] the Surrendered Securities are being transferred pursuant to an
effective registration statement under the Securities Act;
or
[ ] such transfer is being effected pursuant to an exemption from the
registration requirements of the Securities Act other than Rule 144A
or Rule 144, and the Transferor hereby further certifies that the
Securities are being transferred in compliance with the transfer
restrictions applicable to the global Securities and in accordance
with the requirements of the exemption claimed, which certification is
supported by an Opinion of Counsel, provided by the transferor or the
transferee (a copy of which the Transferor has attached to this
certification) in form reasonably acceptable to the Company and to the
Registrar, to the effect that such transfer is in compliance with the
Securities Act;
and the Surrendered Securities are being transferred in compliance with any
applicable blue sky securities laws of any state of the United States.
This certificate and the statements contained herein are made for your
benefit and the benefit of the Company and Merrill Lynch & Co., Merrill Lynch,
Pierce, Fenner & Smith Incorporated, the initial purchaser of such Securities
being transferred. Terms used in this certificate and not otherwise defined in
the Indenture have the meanings set forth in Regulation S under the Securities
Act.
__________________________
[Insert Name of Transferor]
By:
----------------------------
Name:
Title:
Dated: ________
cc: The Times Mirror Company
B-4-2
<PAGE>
EXHIBIT B-5
FORM OF CERTIFICATE FOR EXCHANGE OR REGISTRATION OF TRANSFER
FROM CERTIFICATED SECURITY TO RESTRICTED GLOBAL SECURITY OR
REGULATION S PERMANENT GLOBAL SECURITY
(Pursuant to Section 2.11(d) of the Indenture)
CITIBANK, N.A.
120 Wall Street
New York, New York 10043
Attention: Corporate Trust Administration
Re: $435,000,000 Liquid Yield Option Notes due 2017 (Zero Coupon --
Subordinated) of The Times Mirror Company
Reference is hereby made to the Indenture, dated as of April 15, 1997
(the "Indenture"), between The Times Mirror Company (the "Company") and
Citibank, N.A., as trustee. Capitalized terms used but not defined herein shall
have the meanings given to them in the Indenture.
In connection with such request and in respect of the Securities
surrendered to the Trustee herewith for exchange (the "Surrendered Securities"),
the Holder of such Surrendered Securities hereby certifies that:
[CHECK ONE]
[ ] the Surrendered Securities are being transferred to the beneficial
owner of such Securities;
or
[ ] the Surrendered Securities are being transferred pursuant to and in
accordance with Rule 144A under the United States Securities Act of
1933, as amended (the "Securities Act"), and, accordingly, the
Transferor hereby further certifies that the Surrendered Securities
are being transferred to a person that the Transferor reasonably
believes is purchasing the Surrendered Securities for its own account,
or for one or more accounts with respect to which such person
exercises sole investment discretion, and such person and each such
account is a "qualified institutional buyer" within the meaning of
Rule 144A, in each case in a transaction meeting the requirements of
Rule 144A;
or
B-5-1
<PAGE>
[ ] the Surrendered Securities are being transferred in a transaction
permitted by Rule 144 under the Securities Act;
or
[ ] the Surrendered Securities are being transferred in a transaction
permitted by Rule 904 under the Securities Act;
or
[ ] the Surrendered Securities are being transferred pursuant to an
effective registration statement under the Securities Act;
or
[ ] such transfer is being effected pursuant to an exemption from the
registration requirements of the Securities Act other than Rule 144A
or Rule 144, and the Transferor hereby further certifies that the
Securities are being transferred in compliance with the transfer
restrictions applicable to the global Securities and in accordance
with the requirements of the exemption claimed, which certification is
supported by an Opinion of Counsel, provided by the transferor or the
transferee (a copy of which the Transferor has attached to this
certification) in form reasonably acceptable to the Company and to the
Registrar, to the effect that such transfer is in compliance with the
Securities Act;
and the Surrendered Securities are being transferred in compliance with any
applicable blue sky securities laws of any state of the United States.
This certificate and the statements contained herein are made for your
benefit and the benefit of the Company and Merrill Lynch & Co., Merrill Lynch,
Pierce, Fenner & Smith Incorporated, the initial purchaser of such Securities
being transferred. Terms used in this certificate and not otherwise defined in
the Indenture have the meanings set forth in Regulation S under the Securities
Act.
__________________________
[Insert Name of Transferor]
By:
---------------------------
Name:
Title:
Dated: _______
cc: The Times Mirror Company
B-5-2
<PAGE>
EXHIBIT 4.2
REGISTRATION RIGHTS AGREEMENT
Dated as of April 15, 1997
by and between
THE TIMES MIRROR COMPANY
and
MERRILL LYNCH & CO.
Merrill Lynch, Pierce, Fenner & Smith Incorporated
Liquid Yield Option/TM/ Notes due 2017
(Zero Coupon - Subordinated)
/TM/ Trademark of Merrill Lynch & Co., Inc.
<PAGE>
REGISTRATION RIGHTS AGREEMENT
This Registration Rights Agreement (the "Agreement") is made and
entered into as of April 15, 1997 by and between The Times Mirror Company, a
Delaware corporation (the "Company"), and Merrill Lynch & Co., Merrill Lynch,
Pierce, Fenner & Smith Incorporated, a Delaware corporation (the "Purchaser").
This Agreement is made pursuant to the Purchase Agreement, dated of
even date herewith (the "Purchase Agreement"), between the Company and the
Purchaser, which provides for the sale by the Company to the Purchaser of
$435,000,000 aggregate principal amount at maturity of the Company's Liquid
Yield Option/TM/ Notes due 2017 (Zero Coupon-Subordinated) (the "LYONs"/TM/) and
the grant by the Company to the Purchaser of the option to purchase all or any
part of an additional $65,000,000 aggregate principal amount at maturity of its
LYONs. In order to induce the Purchaser to enter into the Purchase Agreement,
the Company has agreed to provide the registration rights set forth in this
Agreement. The execution of this Agreement is a condition to the closing under
the Purchase Agreement.
The parties hereby agree as follows:
Section 1. Definitions
-----------
Capitalized terms used herein without definition shall have their
respective meanings set forth in the Purchase Agreement or Indenture. As used
in this Agreement, the following terms shall have the following meanings:
Closing Date: April 15, 1997, or such other date as may be agreed
------------
upon for the sale and purchase of the LYONs pursuant to the Purchase Agreement.
Exchange Act: The Securities Exchange Act of 1934, as amended, and
------------
the rules and regulations of the SEC promulgated thereunder.
Indenture: The Indenture, dated as of April 15, 1997, between the
---------
Company and Citibank, N.A., a national banking association, as Trustee, pursuant
to which the LYONs are being issued, as amended or supplemented from time to
time in accordance with the terms thereof.
Prospectus: The prospectus included in any Registration Statement
----------
(including, without limitation, a prospectus that discloses information
previously omitted from a prospectus filed as part of an effective registration
statement in reliance upon Rule 430A), as amended or supplemented by any
prospectus supplement, with respect to the terms of the offering of any portion
of the Registrable Securities covered by such Registration Statement, and all
other amendments and supplements to the Prospectus, including post-effective
amendments and all material incorporated by reference or deemed to be
incorporated by reference in such Prospectus.
1
<PAGE>
Registrable Securities: All LYONs and shares of Series A Common Stock
----------------------
that are Restricted Securities.
Registration Expenses: See Section 5 hereof.
---------------------
Registration Statement: Any registration statement of the Company
----------------------
that covers any of the Registrable Securities pursuant to the provisions of this
Agreement, including the Prospectus, amendments and supplements to such
registration statement, including post-effective amendments, all exhibits, and
all material incorporated by reference or deemed to be incorporated by reference
in such registration statement.
Restricted Securities: Any and all LYONs upon original issuance
---------------------
thereof (and any shares of Series A Common Stock issued upon conversion thereof
other than pursuant to an effective registration statement under the Securities
Act) and at all times subsequent thereto until, as to any Restricted Security,
(i) the sale of such Restricted Security has been effectively registered under
the Securities Act and such Restricted Security has been disposed of in
accordance with the method of distribution set forth in the Registration
Statement relating thereto or (ii) it is distributed to the public, or is
otherwise able to be sold, pursuant to Rule 144(k) (or any similar provision
then in force, but not Rule 144A) under the Securities Act.
SEC: The Securities and Exchange Commission.
---
Securities Act: The Securities Act of 1933, as amended, and the rules
--------------
and regulations promulgated by the SEC thereunder.
Shelf Registration: See Section 3 hereof.
------------------
Special Counsel: Latham & Watkins, special counsel to the Purchaser
---------------
or such other special counsel as may be designated by the holders of a majority
in aggregate principal amount of Registrable Securities outstanding.
TIA: The Trust Indenture Act of 1939, as amended.
---
Section 2. Securities Subject to this Agreement
------------------------------------
(a) Securities. The securities entitled to the benefits of this
----------
Agreement are the Registrable Securities.
(b) Holders of Registrable Securities. A Person is deemed to be a
---------------------------------
holder of Registrable Securities whenever such Person beneficially owns
Registrable Securities; provided that only Registrable Securities of holders who
--------
are registered holders of Registrable Securities shall be counted for purposes
of calculating any proportion of holders of Registrable Securities entitled to
take action or give notice pursuant to this Agreement.
2
<PAGE>
Section 3. Shelf Registrations
-------------------
(a) Shelf Registrations. As promptly as practicable and in no event
-------------------
later than 90 days after the date hereof, the Company shall prepare and file
with the SEC a Registration Statement (which may include any previously filed
Registration Statement meeting the requirements set forth herein) under the
Securities Act for an offering to be made on a continuous basis pursuant to Rule
415 (or any similar rule that may be adopted by the SEC) under the Securities
Act covering all the Registrable Securities (the "Shelf Registration").
(b) The Shelf Registration shall be on Form S-3 or another appropriate
form permitting registration of such Registrable Securities for resale by such
holders in the manner or manners designated by them.
(c) The Company shall use its best efforts to cause the Shelf
Registration to become effective under the Securities Act in accordance with
Section 3(a) hereof and shall keep the Shelf Registration continuously effective
for a period of two years from the Closing Date or such shorter period that will
terminate when all Registrable Securities covered by the Shelf Registration are
no longer Restricted Securities. The Company shall also supplement or make
amendments to any Shelf Registration if required by the rules, regulations or
instructions applicable to the registration form used by the Company or if
required by the Securities Act.
Section 4. Registration Procedures
-----------------------
In connection with the registration obligations pursuant to Section 3
hereof, the Company shall use its best efforts to effect such registration to
permit the sale of such Registrable Securities in accordance with the then
intended method or methods of disposition thereof, and pursuant thereto the
Company shall as expeditiously as possible:
(a) prepare and file with the SEC, within the time period specified in
Section 3, a Registration Statement or Registration Statements on any
appropriate form under the Securities Act, which form shall be available for the
sale of the Registrable Securities by the holders thereof in accordance with the
intended method or methods of distribution thereof, and use its best efforts to
cause each such Registration Statement to become effective and remain effective
as provided herein; provided, however, that before filing a Registration
Statement or Prospectus or any amendments or supplements thereto, the Company
shall furnish to the Special Counsel copies of the Registration Statement or
Prospectus and all such documents in the form proposed to be filed at least two
business days prior thereto, which documents will be subject to the review of
the Special Counsel, and the Company shall not file any such Registration
Statement or amendment thereto or any Prospectus or any supplement thereto to
which the Special Counsel shall reasonably object on a timely basis, unless the
Company is advised by its counsel that such Registration Statement or amendment
thereto or any Prospectus or supplement thereto is required to be filed by
applicable law;
3
<PAGE>
(b) prepare and file with the SEC such amendments and post-effective
amendments to each Registration Statement as may be necessary to keep such
Registration Statement continuously effective for the applicable period; cause
the related Prospectus to be supplemented by any required Prospectus supplement,
and as so supplemented to be filed pursuant to Rule 424 (or any similar
provisions then in force) under the Securities Act;
(c) promptly notify Special Counsel to the holders of Registrable
Securities and, with respect to any event contemplated by clauses (i)(B), (iv),
(v) or (vi) hereof, notify such holders promptly (and in each case, if
requested, confirm any such oral or telephonic notice in writing), (i) when a
Prospectus or any Prospectus supplement or post-effective amendment related to
such Registrable Securities (A) has been filed, and, (B) with respect to a
Registration Statement or any post-effective amendment related to such
Registrable Securities, when the same has become effective, (ii) of the receipt
of any comments from the SEC, (iii) of any request by the SEC for amendments or
supplements to a Registration Statement or related Prospectus or for additional
information, (iv) of the issuance by the SEC of any stop order suspending the
effectiveness of a Registration Statement or the initiation of any proceedings
for that purpose, (v) if at any time the representations and warranties of the
Company contained in any agreement entered pursuant to paragraph (l) below in
connection with the sale of Restricted Securities by selling holders thereof
cease to be true and correct, (vi) of the receipt by the Company of any
notification with respect to the suspension of the qualification or exemption
from qualification of any of the Registrable Securities for sale or exchange in
any jurisdiction of the United States of America or the initiation of any
proceeding for such purpose, (vii) of the happening of any event that makes any
statement of a material fact made in such Registration Statement or related
Prospectus or any document incorporated or deemed to be incorporated therein by
reference untrue or that requires the making of any changes in a Registration
Statement or related Prospectus so that such documents will not contain any
untrue statement of a material fact or omit to state any material fact required
to be stated therein or necessary to make the statements therein, in light of
the circumstances under which they were made, not misleading (provided that the
timely filing of a report under the Exchange Act which is incorporated by
reference in the Registration Statement and related Prospectus shall constitute
effective notice under this subsection (vii)), and (viii) of the determination
of the Company that a post-effective amendment to a Registration Statement would
be appropriate;
(d) use every reasonable effort to obtain the withdrawal of any order
suspending the effectiveness of a Registration Statement or the lifting of any
suspension of the qualification (or exemption from qualification) of any of the
Registrable Securities for sale or exchange in any jurisdiction of the United
States of America, as promptly as practicable;
(e) if reasonably requested by any holder of Registrable Securities
covered by a Registration Statement, (i) promptly incorporate in a Prospectus
supplement or post-effective amendment such information as such holder
reasonably requests to be included therein as is required by applicable law,
(ii) make all required filings of such Prospectus supplement or such post-
effective amendment as soon as the Company has received
4
<PAGE>
notification of the matters to be incorporated in such Prospectus supplement or
such post-effective amendment, and (iii) supplement or make amendments to any
Registration Statement as is required by applicable law;
(f) furnish to each selling holder of Registrable Securities upon
request, and the Special Counsel, without charge, at least one conformed copy of
the Registration Statement or Statements and any post-effective amendment
thereto, including financial statements and schedules, without charge, as well
as all documents incorporated therein by reference or deemed incorporated
therein by reference and all exhibits (including those previously furnished or
incorporated by reference) (provided that the Company may charge such holders
reasonable duplication costs for copies of any exhibit that is not specifically
incorporated by reference in the document to which it is an exhibit), at the
earliest practicable time under the circumstances after the filing of such
documents with the SEC;
(g) deliver to each selling holder of Registrable Securities and the
Special Counsel, without charge, as many copies of the Prospectus or
Prospectuses (including each preliminary prospectus) and any amendment or
supplement thereto as such Persons may reasonably request; the Company consents
to the use of such Prospectus or any amendment or supplement thereto in
accordance with applicable law by each of the selling holders of Registrable
Securities in connection with the offering and sale of the Registrable
Securities covered by such Prospectus or any amendment or supplement thereto in
accordance with applicable law;
(h) prior to any public offering of Registrable Securities, use its
best efforts to register or qualify or cooperate with the selling holders of
Registrable Securities and the Special Counsel in connection with the
registration or qualification (or exemption from such registration or
qualification) of such Registrable Securities for offer and sale, as the case
may be, under the securities or Blue Sky laws of such state or local
jurisdictions in the United States as any seller reasonably requests in writing;
keep each such registration or qualification (or exemption therefrom) effective
during the period such Registration Statement is required to be kept effective
and do any and all other acts or things necessary or advisable to enable the
disposition in such jurisdictions of the Registrable Securities covered by the
applicable Registration Statement; provided, however, that the Company will not
be required to (A) qualify generally to do business in any jurisdiction where it
is not then so qualified, (B) take any action that would subject it to general
service of process in any such jurisdiction where it is not then so subject or
(C) register or qualify securities prior to the effective date of any
Registration Statement under Section 3 hereof;
(i) cooperate with the selling holders of Registrable Securities to
facilitate the timely preparation and delivery of certificates representing
Registrable Securities, which certificates shall not bear any restrictive
legends; and enable such Registrable Securities to be in such denominations and
registered in such names, in all cases consistent with the requirements set
forth in the Indenture, as the holders may request;
5
<PAGE>
(j) subject to the exceptions contained in (A), (B) and (C) of
subsection (h) hereof, use its best efforts to cause the Registrable Securities
covered by the applicable Registration Statement to be registered with or
approved by such other Federal, state and local governmental regulatory agencies
or authorities in the United States as may be necessary, by virtue of the
business and operations of the Company, to enable the seller or sellers thereof
to consummate the disposition of such Registrable Securities and cooperate with
each seller of Registrable Securities in connection with any filings required to
be made with the National Association of Securities Dealers, Inc.;
(k) upon the occurrence of any event contemplated by paragraph
4(c)(vii) or 4(c)(viii) above, as promptly as practicable thereafter, prepare
and file with the SEC a supplement or post-effective amendment to the applicable
Registration Statement or a supplement to the related Prospectus or any document
incorporated therein by reference or file any other required document so that,
as thereafter delivered to the purchasers of the Registrable Securities being
sold thereunder, such Prospectus will not contain an untrue statement of a
material fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading;
(l) enter into such customary agreements and take all such other
actions in connection therewith (including those reasonably requested by the
holders of a majority of the Registrable Securities being sold) in order to
expedite or facilitate the disposition of such Registrable Securities; provided,
--------
however, that the Company shall not be required to enter into an underwriting
- -------
agreement in connection with any such disposition;
(m) cause the Indenture to be qualified under the TIA not later than
the effective date of any Registration Statement; and in connection therewith,
cooperate with the Trustee to effect such changes to the Indenture as may be
required for the Indenture to be so qualified in accordance with the terms of
the TIA and execute, and use their best efforts to cause the Trustee to execute,
all documents as may be required to effect such changes, and all other forms and
documents required to be filed with the SEC to enable the Indenture to be so
qualified in a timely manner; and
(n) comply with all applicable rules and regulations of the SEC and
make generally available to the Company's securityholders an earnings statement
satisfying the provisions of Section 11(a) of the Securities Act and Rule 158
thereunder no later than the date required for the filing of the applicable
forms referred to in Rule 158 under the Exchange Act, commencing on the first
day of the first fiscal quarter of the Company commencing after the effective
date of a Registration Statement, which statement shall cover said 12-month
period.
Purchaser shall, as a condition to the sale of any Registrable
Security, require the holder to whom such Registrable Security is sold to agree
to be bound by this Agreement with respect to the obligations of holders of
Registrable Securities set forth herein. The Company may require each selling
holder of Registrable Securities under a Shelf Registration to furnish to the
Company such information regarding such selling holder and the distribution
6
<PAGE>
of such Registrable Securities, including the information specified in Item 507
of Regulation S-K under the Securities Act, as the Company may from time to time
reasonably request in writing, and each holder in acquiring such Registrable
Securities agrees to supply such information to the Company promptly upon such
request.
Each holder of Registrable Securities agrees by acquisition of such
Registrable Securities that (i) such holder will promptly (and in any case
within two business days after completion of such sale or distribution) notify
the Company following any sale of Registrable Securities under a Shelf
Registration or distribution to the public pursuant to Rule 144(k) (or any
similar provision then in force, but not Rule 144A under the Securities Act) and
(ii) upon receipt of any notice from the Company of the happening of any event
of the kind described in Section 4(c)(iii), 4(c)(iv), 4(c)(vi), or 4(c)(vii)
hereof, such holder will forthwith discontinue disposition of such Registrable
Securities covered by such Registration Statement or Prospectus and will not
resume disposition of such Registrable Securities until such holder's receipt of
the copies of the supplemented or amended Prospectus contemplated by Section
4(k) hereof, or until it is advised in writing by the Company that the use of
the applicable Prospectus may be resumed and has received copies of the
Registration Statement and Prospectus and any additional or supplemental filings
that are incorporated or deemed to be incorporated by reference in such
Prospectus.
Section 5. Registration Expenses
---------------------
The Company shall pay all fees and expenses incurred by it or
Purchaser incident to the performance of or compliance with this Agreement by
the Company including, without limitation, (i) all SEC, stock exchange or
National Association of Securities Dealers, Inc. registration and filing fees,
(ii) all fees and expenses incurred in connection with compliance with state
securities or Blue Sky laws (including reasonable fees and disbursements of
counsel for any underwriters or holders in connection with Blue Sky
qualification of any of the Registrable Securities), (iii) all expenses in
preparing or assisting in preparing, printing and distributing any Registration
Statement, any Prospectus, any amendments or supplements thereto, other
documents relating to the Company's performance of and compliance with this
Agreement, and (iv) all rating agency fees but excluding fees of any special
accountants retained by the selling holders, counsel to the underwriters and
underwriting discounts and commissions and transfer taxes, if any, relating to
the sale or disposition of Registrable Securities by a holder of Registrable
Securities.
Section 6. Indemnification
---------------
(a) The Company agrees to indemnify and hold harmless the Purchaser
and each holder of Registrable Securities and each person, if any, who controls
the Purchaser or any holder of Registrable Securities within the meaning of
either Section 15 of the Securities Act or Section 20 of the Exchange Act, as
follows:
(i) against any and all loss, liability, claim, damage and
reasonable expense (including the reasonable fees and disbursements of
counsel) whatsoever, as incurred, arising out of any untrue statement
or alleged untrue
7
<PAGE>
statement of a material fact contained in the Registration Statement
(or any amendment thereto), or the omission or alleged omission
therefrom of a material fact required to be stated therein or
necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading or arising
out of any untrue statement or alleged untrue statement of a material
fact included in any preliminary prospectus or the Prospectus (or any
amendment or supplement thereto), or the omission or alleged omission
therefrom of a material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made,
not misleading;
(ii) against any and all loss, liability, claim, damage and
reasonable expense (including the reasonable fees and disbursements of
counsel) whatsoever, as incurred, to the extent of the aggregate
amount paid in settlement of any litigation, or any investigation or
proceeding by any governmental agency or body, commenced or
threatened, or of any claim whatsoever based upon any such untrue
statement or omission, or any such alleged untrue statement or
omission, provided that (subject to Section 6(d) below) any such
settlement is effected with the written consent of the Company; and
(iii) against any and all expense whatsoever, as incurred
(including the reasonable fees and disbursements of counsel),
reasonably incurred in investigating, preparing or defending against
any litigation, or any investigation or proceeding by any governmental
agency or body, commenced or threatened, or any claim whatsoever based
upon any such untrue statement or omission, or any such alleged untrue
statement or omission, to the extent that any such expense is not paid
under (i) or (ii) above;
provided, however, that this indemnity agreement shall not apply to any loss,
- -------- -------
liability, claim, damage or expense to the extent arising out of any untrue
statement or omission or alleged untrue statement or omission made in reliance
upon and in conformity with written information furnished to the Company by the
Purchaser or such holder of Registrable Securities (which also acknowledges the
indemnity provisions herein) and each person, if any, who controls the Purchaser
or any such holder of Registrable Securities expressly for use in the
Registration Statement (or any amendment thereto), or any preliminary prospectus
or the Prospectus (or any amendment or supplement thereto).
(b) In connection with any Shelf Registration in which a holder,
including, without limitation, the Purchaser, of Registrable Securities is
participating, in furnishing information relating to such holder of Registrable
Securities to the Company in writing expressly for use in such Registration
Statement, any preliminary prospectus, the Prospectus or any amendments or
supplements thereto, the holders of such Registrable Securities agree, severally
and not jointly, to indemnify and hold harmless the Purchaser and each person,
if any, who controls the Purchaser within the meaning of either Section 15 of
the Securities Act or Section 20 of the Exchange Act and the Company, its
directors and officers who sign a Registration Statement and each person, if
any, who controls the Company within the
8
<PAGE>
meaning of either such Section, against any and all loss, liability, claim,
damage and expense described in the indemnity contained in subsection (a) of
this Section, as incurred, but only with respect to untrue statements or
omissions, or alleged untrue statements or omissions, made in the Registration
Statement (or any amendment thereto), or any preliminary prospectus or the
Prospectus (or any amendment or supplement thereto) in reliance upon and in
conformity with written information furnished to the Company by such holder of
Registrable Securities (which also acknowledges the indemnity provisions herein)
and each person, if any, who controls any such holder of Registrable Securities
expressly for use in the Registration Statement (or any amendment thereto) or
such preliminary prospectus or the Prospectus (or any amendment or supplement
thereto).
The Purchaser agrees to indemnify and hold harmless the Company, the
holders of Registrable Securities, the directors of the Company, the officers of
the Company who sign the Registration Statement and each person, if any, who
controls the Company or any holder of Registrable Securities within the meaning
of either Section 15 of the Securities Act or Section 20 of the Exchange Act
against any and all loss, liability, claim, damage and expense described in the
indemnity contained in subsection (a) of this Section, as incurred, but only
with respect to untrue statements or omissions, or alleged untrue statements or
omissions, made in the Registration Statement (or any amendment thereto), or any
preliminary prospectus or the Prospectus (or any amendment or supplement
thereto) in reliance upon and in conformity with written information furnished
to the Company by the Purchaser expressly for use in the Registration Statement
(or any amendment thereto) or such preliminary prospectus or the Prospectus (or
any amendment or supplement thereto).
(c) Each indemnified party shall give notice as promptly as
reasonably practicable to each indemnifying party of any action commenced
against it in respect of which indemnity may be sought hereunder, but failure to
so notify an indemnifying party shall not relieve such indemnifying party from
any liability hereunder to the extent it is not materially prejudiced as a
result thereof and in any event shall not relieve it from any liability which it
may have otherwise than on account of this indemnity agreement. An indemnifying
party may participate at its own expense in the defense of any such action;
provided, however, that counsel to the indemnifying party shall not (except with
the consent of the indemnified party) also be counsel to the indemnified party.
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 (a) the fees and expenses of
more than one separate firm (in addition to any local counsel) for the Purchaser
and all persons, if any, who control the Purchaser within the meaning of either
Section 15 of the Securities Act or Section 20 of the Exchange Act, (b) the fees
and expenses of more than one separate firm (in addition to any local counsel)
for the Company, its directors, its officers who sign the Registration Statement
and each person, if any, who controls the Company within the meaning of either
such Section and (c) the fees and expenses of more than one separate firm (in
addition to any local counsel) for all holders of Registrable Securities and all
persons, if any, who control any holders of Registrable Securities within the
meaning of either such Section, and that all such fees and expenses shall be
reimbursed as they are incurred. In such case involving the Purchaser and
control persons of the Purchaser, such firm shall be designated in writing by
the Purchaser and shall
9
<PAGE>
be reasonably acceptable to the Company. In such case involving the holders of
Registrable Securities and such controlling persons of holders of Registrable
Securities, such firm shall be designated in writing by holders of a majority in
aggregate principal amount at maturity of Registrable Securities. In all other
cases, such firm shall be designated by the Company. No indemnifying party
shall, without the prior written consent of the indemnified parties, settle or
compromise or consent to the entry of any judgment with respect to any
litigation, or any investigation or proceeding by any governmental agency or
body, commenced or threatened, or any claim whatsoever in respect of which
indemnification or contribution could be sought under this Section 6 hereof
(whether or not the indemnified parties are actual or potential parties
thereto), unless such settlement, compromise or consent (i) includes an
unconditional release of each indemnified party from all liability arising out
of such litigation, investigation, proceeding or claim and (ii) does not include
a statement as to or an admission of fault, culpability or a failure to act by
or on behalf of any indemnified party.
(d) If at any time an indemnified party shall have requested, in
writing, an indemnifying party to reimburse the indemnified party for fees and
expenses of counsel, such indemnifying party agrees that it shall be liable for
any settlement of the nature contemplated by Section 6(a)(ii) effected without
its written consent if (i) such settlement is entered into more than 45 days
after receipt by such indemnifying party of aforesaid request, (ii) such
indemnifying party shall have received notice of the terms of such settlement at
least 30 days prior to such settlement being entered into and (iii) such
indemnifying party shall not have reimbursed such indemnified party in
accordance with such request prior to the date of such settlement; provided,
however, if at any time an indemnified party shall have requested an
indemnifying party to reimburse the indemnified party for fees and expenses of
counsel, an indemnifying party shall not be liable for any settlement of the
nature contemplated by this Section 6(d) effected without its written consent if
(x) such indemnifying party reimburses such indemnified party in accordance with
such request to the extent it considers such request to be reasonable; and (y)
such indemnifying party provides written notice to the indemnified party
substantiating the unpaid balance as unreasonable, in each case prior to the
date of such settlement.
(e) If the indemnification provided for in Section 6 hereof is for any
reason unavailable to or insufficient to hold harmless an indemnified party in
respect of any losses, liabilities, claims, damages or expenses referred to
therein, then each indemnifying party shall contribute to the aggregate amount
of such losses, liabilities, claims, damages and expenses incurred by such
indemnified party, as incurred, in such proportion as is appropriate to reflect
the relative fault of the indemnifying party or parties on the one hand and of
the indemnified party on the other hand in connection with the statements or
omissions which resulted in such losses, liabilities, claims, damages or
expenses, as well as any other relevant equitable considerations.
The relative fault of the Company on the one hand and the holders of
the Registrable Securities or the Purchaser on the other hand shall be
determined by reference to, among other things, whether any such untrue or
alleged untrue statement of a material fact or omission or alleged omission to
state a material fact relates to information supplied by the Company or by the
holder of the Registrable Securities or the Purchaser and the parties'
10
<PAGE>
relative intent, knowledge, access to information and opportunity to correct or
prevent such statement or omission.
The parties hereto agree that it would not just and equitable if
contribution pursuant to this Section 6(e) were determined by pro rata
allocation or by any other method of allocation which does not take account of
the equitable considerations referred to above in this Section 6(e). The
aggregate amount of losses, liabilities, claims, damages, and expenses incurred
by an indemnified party and referred to above in this Section 6(e) shall be
deemed to include any legal or other expenses reasonably incurred by such
indemnified party in investigating, preparing or defending against any
litigation, or any investigation or proceeding by any governmental agency or
body, commenced or threatened, or any claim whatsoever based upon any such
untrue or alleged untrue statement or omission.
Notwithstanding the provisions of this Section 6, no holder of
Registrable Securities shall be required to indemnify or contribute any amount
in excess of the amount by which the total price at which the Registrable
Securities sold by such holder of Registrable Securities and distributed to the
public were offered to the public exceeds the amount of any damages that such
holder of Registrable Securities 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.
For purposes of this Section 6(e), each person, if any, who controls
the Purchaser or any holder of Registrable Securities within the meaning of
Section 15 of the Securities Act or Section 20 of the Exchange Act shall have
the same rights to contribution of such Purchaser or holder, and each director
of the Company, each officer of the Company who signed the Registration
Statement, and each person, if any, who controls the Company within the meaning
of Section 15 of the Securities Act or Section 20 of the Exchange Act shall have
the same rights to contribution as the Company.
Section 7. Miscellaneous
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(a) Remedies. In the event of a breach by the Company of any of
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its obligations under this Agreement, each holder of Registrable Securities, in
addition to being entitled to exercise all rights granted by law, including
recovery of damages, will be entitled to specific performance of its rights
under this Agreement. The Company agrees that monetary damages would not be
adequate compensation for any loss incurred by reason of a breach by it of any
of the provisions of this Agreement and hereby further agrees that, in the event
of any action for specific performance in respect of such breach, they shall
waive the defense that a remedy at law would be adequate.
(b) No Inconsistent Agreements. The Company shall not, on or
--------------------------
after the date of this Agreement, enter into any agreement with respect to its
securities that is
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inconsistent with the rights granted to the holders of Registrable Securities in
this Agreement or otherwise conflicts with the provisions hereof.
(c) Amendments and Waivers. The provisions of this Agreement,
----------------------
including the provisions of this sentence, may not be amended, modified or
supplemented (other than to cure any ambiguity or correct or supplement any
provision herein), and waivers or consents to departures from the provisions
hereof may not be given, unless the Company has obtained the written consent of
holders of a majority of the then outstanding aggregate principal amount at
maturity of Registrable Securities, except in the case of the Purchaser prior to
distribution of the LYONs to the holders, then the consent of the Purchaser.
Notwithstanding the foregoing, a waiver or consent to depart from the provisions
hereof with respect to a matter that relates exclusively to the rights of
holders of Registrable Securities whose securities are being sold pursuant to a
Registration Statement and that does not directly or indirectly affect the
rights of other holders of Registrable Securities may be given by holders of at
least a majority in aggregate principal amount at maturity of the Registrable
Securities being sold by such holders.
(d) Notices. All notices and other communications provided for
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or permitted hereunder shall be made in writing by hand-delivery, registered
first-class mail, telex, or telecopier:
(i) if to a holder of Registrable Securities, at the most
current address given by such holder to the Company in accordance with
the provisions of this Section 8(d), except with respect to the
Purchaser prior to distribution of the LYONs, then to the Purchaser at
the address set forth on the first page of the Purchase Agreement; and
(ii) if to the Company, to Corporate Secretary at The Times
Mirror Company, Times Mirror Square, Los Angeles, California 90053
(fax: 213) 237-2949), with a copy to Peter F. Ziegler, Esq., Gibson,
Dunn & Crutcher LLP, 333 South Grand Avenue, Los Angeles, California
90071 (fax: (213) 229-7520), and thereafter by such other address,
notice of which is given in accordance with the provision of this
Section 8(d).
All such notices and communications shall be deemed to have been duly
given: when delivered by hand, if personally delivered; five business days
after being deposited in the mail, postage prepaid, if mailed; one business day
after being sent by next-day solvent air courier; when answered back, if
telexed; and when receipt acknowledged, if telecopied.
Copies of all such notices, demands or other communications shall be
concurrently delivered by the person giving the same to the Trustee under the
Indenture at the address specified in such Indenture.
(e) Successors and Assigns. This Agreement shall inure to the
----------------------
benefit of and be binding upon the successors and assigns of each of the
parties, including
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<PAGE>
without limitation and without the need for an express assignment, subsequent
holders of Registrable Securities.
(f) Counterparts. This Agreement may be executed in any number of
------------
counterparts and by the parties hereto in separate counterparts, each of which
when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement.
(g) Headings. The headings in this Agreement are for convenience of
--------
reference only and shall not limit or otherwise affect the meaning hereof.
(h) Governing Law. This Agreement shall be governed by and construed
-------------
in accordance with the laws of the State of New York, without regard to
principles of conflicts of laws.
(i) Severability. If any term, provision, covenant or restriction of
------------
this Agreement is held by a court of competent jurisdiction to be invalid, void
or unenforceable, the remainder of the terms, provisions, covenants and
restrictions set forth herein shall remain in full force and effect and shall in
no way be affected, impaired or invalidated, and the parties hereto shall use
their best efforts to find and employ an alternative means to achieve the same
or substantially the same result as that contemplated by such term, provision,
covenant or restriction. It is hereby stipulated and declared to be the
intention of the parties that they would have executed the remaining terms,
provisions, covenants and restrictions without including any of such which may
be hereafter declared invalid, void or unenforceable.
(j) Entire Agreement. This Agreement is intended by the parties as a
----------------
final expression of their agreement, and is intended to be a complete and
exclusive statement of the agreement and understanding of the parties hereto in
respect of the subject matter contained herein. There are no restrictions,
promises, warranties or undertakings, other than those set forth or referred to
herein, with respect to the registration rights granted by the Company with
respect to the securities sold pursuant to the Purchase Agreement. This
Agreement supersedes all prior agreements and understandings between the parties
with respect to such subject matter.
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(k) Securities Held by the Company or its Affiliates. Whenever the
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consent or approval of holders of a specified percentage of Registrable
Securities is required hereunder, Registrable Securities held by the Company or
any of its affiliates shall not be counted in determining whether such consent
or approval was given by the holders of such required percentage or amount.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date first written above.
THE TIMES MIRROR COMPANY
By
----------------------------------
Name:
Title:
MERRILL LYNCH & CO.
MERRILL LYNCH, PIERCE, FENNER & SMITH
INCORPORATED
By
----------------------------------
Name:
Title:
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