<PAGE> 1
AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON JUNE 18, 1999
REGISTRATION NO. 333-
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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
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FORM S-3
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
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WASHINGTON MUTUAL, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
<TABLE>
<S> <C>
WASHINGTON 91-1653725
(STATE OF INCORPORATION) (I.R.S. EMPLOYER IDENTIFICATION NUMBER)
</TABLE>
1201 THIRD AVENUE
SEATTLE, WASHINGTON, 91801
(206) 461-2000
(ADDRESS, INCLUDING ZIP CODE, AND TELEPHONE NUMBER, INCLUDING AREA CODE, OF
REGISTRANT'S PRINCIPAL EXECUTIVE OFFICES)
------------------------
FAY L. CHAPMAN, ESQ.
WASHINGTON MUTUAL, INC.
1201 3RD AVENUE
SEATTLE, WA 98101
(206) 461-2000
(NAME, ADDRESS, INCLUDING ZIP CODE, AND TELEPHONE NUMBER, INCLUDING AREA CODE,
OF AGENT FOR SERVICE)
WITH A COPY TO:
<TABLE>
<S> <C>
DAVID R. WILSON, ESQ. RAYMOND B. CHECK, ESQ.
HELLER EHRMAN WHITE & MCAULIFFE CLEARY, GOTTLIEB, STEEN & HAMILTON
6100 COLUMBIA CENTER ONE LIBERTY PLAZA
701 5TH AVENUE NEW YORK, NY 10006-1470
SEATTLE, WA 98104-7098 (212) 225-2000
(206) 447-0900
</TABLE>
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APPROXIMATE DATE OF COMMENCEMENT OF PROPOSED SALE TO THE PUBLIC:
From time to time after the effective date of this registration statement as
determined by market conditions.
If the only securities being registered on this Form are being offered
pursuant to dividend or interest reinvestment plans, please check the following
box. [ ]
If the securities being registered on this Form are to be offered on a
delayed or continuous basis pursuant to Rule 415 of the Securities Act of 1933,
other than securities offered only in connection with dividend or interest
reinvestment plans, check the following box. [X]
If this Form is filed to register additional securities for an offering
pursuant to Rule 462(b) under the Securities Act, please check the following box
and list the Securities Act registration statement number of the earlier
effective registration statement for the same offering. [ ]
If this Form is a post-effective amendment filed pursuant to Rule 462(c)
under the Securities Act, check the following box and list the Securities Act
registration number of the earlier effective registration statement for the same
offering. [ ]
If delivery of the prospectus is expected to be made pursuant to Rule 434,
please check the following box. [ ]
------------------------
CALCULATION OF REGISTRATION FEE
<TABLE>
<S> <C> <C> <C> <C>
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TITLE OF EACH CLASS AMOUNT PROPOSED MAXIMUM PROPOSED MAXIMUM
OF SECURITIES TO BE TO BE OFFERING PRICE AGGREGATE AMOUNT OF
REGISTERED REGISTERED PER UNIT(1) OFFERING PRICE(1) REGISTRATION FEE
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Debt Securities............. $900,000,000 100%(2) $900,000,000(2) $250,200(3)
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</TABLE>
(1) Estimated solely for the purposes of determining the registration fee
pursuant to Rule 457(o) promulgated under the Securities Act.
(2) Exclusive of accrued interest, if any.
(3) Pursuant to Rule 429(b) of the Securities Act, the prospectus filed as a
part of this Registration Statement will be used as a combined prospectus in
connection with this Registration Statement and Registration Statement No.
33-93850. A total of $100,000,000 of securities are being carried forward
from Registration Statement No. 33-93850 for which a filing fee was
previously paid in connection therewith.
THE REGISTRANT HEREBY AMENDS THIS REGISTRATION STATEMENT ON SUCH DATE OR
DATES AS MAY BE NECESSARY TO DELAY ITS EFFECTIVE DATE UNTIL THE REGISTRANT SHALL
FILE A FURTHER AMENDMENT WHICH SPECIFICALLY STATES THAT THIS REGISTRATION
STATEMENT SHALL THEREAFTER BECOME EFFECTIVE IN ACCORDANCE WITH SECTION 8(a) OF
THE SECURITIES ACT OF 1933 OR UNTIL THE REGISTRATION STATEMENT SHALL BECOME
EFFECTIVE ON SUCH DATE AS THE SECURITIES AND EXCHANGE COMMISSION, ACTING
PURSUANT TO SAID SECTION 8(a), MAY DETERMINE.
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<PAGE> 2
SUBJECT TO COMPLETION, DATED JUNE 18, 1999
PROSPECTUS
$1,000,000,000
[WASHINGTON MUTUAL LOGO]
DEBT SECURITIES
-------------------------
This prospectus is part of a registration statement that we filed with the
Securities and Exchange Commission using a "shelf" registration process. This
means:
- we may issue the debt securities covered by this prospectus from time to
time;
- we will provide a prospectus supplement each time we issue the debt
securities;
- the prospectus supplement will provide specific information about the
terms of that issuance and also may add, update or change information
contained in this prospectus.
NEITHER THE SECURITIES AND EXCHANGE COMMISSION NOR ANY STATE SECURITIES
COMMISSION HAS APPROVED OR DISAPPROVED THESE DEBT SECURITIES OR DETERMINED IF
THIS PROSPECTUS IS TRUTHFUL OR COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE.
The date of this prospectus is June , 1999.
THE INFORMATION IN THIS PROSPECTUS IS NOT COMPLETE AND MAY BE CHANGED. WE
MAY NOT SELL THESE SECURITIES UNTIL THE REGISTRATION STATEMENT FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION IS EFFECTIVE. THIS PROSPECTUS IS NOT AN OFFER
TO SELL THESE SECURITIES AND IS NOT SOLICITING AN OFFER TO BUY THESE SECURITIES
IN ANY STATE WHERE THE OFFER OR SALE IS NOT PERMITTED.
<PAGE> 3
WHERE YOU CAN FIND ADDITIONAL INFORMATION
We file annual, quarterly and current reports, and other information with
the Securities and Exchange Commission. You may read and copy any reports and
other information filed by us at the SEC's Public Reference Rooms at (a) 450
Fifth Street, N.W., Washington, D.C. 20549; (b) Citicorp Center, 500 West
Madison Street, 14th Floor, Chicago, Illinois 60661-2511; and (c) 7 World Trade
Center, 13th Floor, New York, New York 10048. You can also obtain copies of
these documents, upon payment of a duplicating fee, by writing to the Public
Reference Section of the SEC at 450 Fifth Street, N.W., Washington, D.C. 20549.
Please call the SEC at 1-800-SEC-0330 for further information on the operation
of the SEC's Public Reference Rooms. Our SEC filings are also available to the
public on the SEC's Internet site (http://www.sec.gov). Because our common stock
is listed on the New York Stock Exchange, our reports and other information may
also be inspected at the offices of the Exchange at 20 Broad Street, New York,
New York 10005.
We have filed a registration statement on Form S-3 with the SEC covering
the debt securities described in this prospectus. For further information with
respect to us and those securities, you should refer to our registration
statement and its exhibits. You may inspect and copy the registration statement,
including exhibits, at the SEC's Public Reference Rooms or Web site. We have
summarized certain key provisions of contracts and other documents that we refer
to in this prospectus. Because a summary may not contain all the information
that is important to you, you should review the full text of each document. We
have included copies of these documents as exhibits to our registration
statement.
Each of the Indentures (as defined herein) pursuant to which the debt
securities are being issued requires Washington Mutual to file reports under the
Securities Exchange Act of 1934, as amended (the "Exchange Act"). Quarterly and
annual reports will be made available upon request of holders of the debt
securities, which annual reports will contain financial information that has
been examined and reported upon by, with an opinion expressed by, an independent
public or certified public accountant.
INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE
The SEC allows us to "incorporate by reference" the information we file
with it, which means that we can disclose important information to you by
referring you to another document that we filed with the SEC. The information
incorporated by reference is an important part of this prospectus, and
information that we file later with the SEC will automatically update and
supersede this information. We incorporate by reference the documents listed
below and any future filings we make with the SEC under Sections 13(a), 13(c),
14 or 15(d) of the Exchange Act until we sell all of the securities.
- Our Annual Report to Shareholders on Form 10-K for the fiscal year ended
December 31, 1998;
- Our Quarterly Report on Form 10-Q for the quarter ended March 31, 1999;
- Our Current Reports on Form 8-K dated January 22, 1999; April 23, 1999;
and May 21, 1999.
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You may obtain a copy of these filings (other than exhibits) at no cost, by
writing or telephoning us at 1201 Third Avenue, Seattle, Washington 98101,
telephone (206) 461-3187, attention Investor Relations Department, WMT0735.
You should rely only on the information contained or incorporated by
reference in this prospectus, any supplemental prospectus or any pricing
supplement. We have not authorized anyone to provide you with any other
information. We are not making an offer of these securities in any state where
the offer is not permitted. You should not assume that the information in this
prospectus, any accompanying prospectus supplement or any document incorporated
by reference is accurate as of any date other than the date on the front of the
document.
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<PAGE> 5
WASHINGTON MUTUAL, INC.
With a history dating back to 1889, Washington Mutual, Inc. is a financial
services company committed to serving consumers and small to mid-sized
businesses. At March 31, 1999, we had deposits of $84.18 billion and
stockholders' equity of $9.61 billion. Based on our consolidated assets of
$174.30 billion at March 31, 1999, we were the largest savings institution and
the eighth largest banking company in the United States.
We operate principally in California, Washington, Oregon, Florida, Texas
and Utah, and have operations in 31 other states and the District of Columbia.
Through our subsidiaries, we engage in the following business activities:
- Mortgage Banking
- Consumer Banking
- Commercial Banking
- Financial Services
- Consumer Finance
MORTGAGE BANKING
We conduct mortgage banking through our banking subsidiaries, Washington
Mutual Bank, FA, Washington Mutual Bank, and Washington Mutual Bank fsb. The
principal activities conducted by our mortgage banking operations are the
origination of single-family residential mortgages and residential construction
loans and the associated loan servicing activities. For the year ended December
31, 1998, this group originated $41.87 billion of single-family residential
loans (excluding residential construction), making us the nation's fourth
largest single-family residential mortgage originator. At March 31, 1999, we had
a servicing portfolio of $158.59 billion of single-family residential mortgage
loans and residential construction loans including $52.35 billion of loans
serviced for others.
CONSUMER BANKING
The consumer banking business includes the sale of all consumer deposit
products, including checking accounts, money market accounts and time deposits
and the associated servicing activities as well as the origination of consumer
loans through our financial centers. These consumer loan products include second
equity mortgage loans and lines of credit, manufactured housing loans,
automobile, boat and recreational vehicle loans and education loans. We conduct
consumer banking in eight states through over 1,000 financial centers. The
consumer banking group also has approximately 1,200 full time equivalent
employees in its telephone banking centers. At March 31, 1999, we had $84.18
billion in deposits and a consumer loan portfolio of $5.42 billion.
COMMERCIAL BANKING
This business line is comprised of our commercial real estate group and
Western Bank, a separately named division of Washington Mutual Bank. This
business segment offers commercial business loans and commercial real estate
loans, comprised of multi-family residential loans and loans for nonresidential
real estate. The Western Bank division operates primarily in Washington and
Oregon and commenced operations in California as
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of the beginning of 1999 under the name WM Business Bank. The commercial banking
group provides personalized commercial banking services to small to mid-sized
businesses and makes available multi-family shelter-based lending, commercial
construction financing and other commercial real estate loans. At March 31,
1999, Washington Mutual had $18.05 billion of commercial real estate and
commercial business loans in our portfolio, of which $14.51 billion is secured
by liens on apartment buildings.
FINANCIAL SERVICES
The financial services business consists of WM Financial Services, Inc., a
licensed broker-dealer, WM Advisors Inc., the investment adviser to the WM Group
of Funds; WM Funds Distributor, Inc., the distributor of the WM Group of Funds;
and Washington Mutual Insurance Services, Inc. Through our broker-dealer, WM
Financial Services, we offer a wide range of investment products to our
customers, including mutual funds, variable and fixed annuities and general
securities.
The WM Group of Funds is a proprietary mutual fund complex formed through
the consolidation of the Composite Funds, Sierra Trust Funds and The Griffin
Funds. At March 31, 1999, the WM Group of Funds consisted of 18 mutual funds, 18
variable annuities and five managed asset funds. At that date, it had 352,710
accounts and $6.03 billion in assets under management.
Washington Mutual Insurance Services, Inc. supports the mortgage lending
process by offering customers property and casualty insurance products. The
group also offers insurance products to existing mortgage and deposit customers,
which includes mortgage life and accidental death and dismemberment, property
and casualty, and life insurance.
CONSUMER FINANCE
We conduct our consumer finance business through Aristar, Inc., and its
subsidiaries. Through those companies, we make direct consumer installment
loans, real estate secured loans and purchase retail installment contracts from
local retail establishments through a network of over 500 branch offices located
in 24 states, primarily in the southeastern United States. Aristar also accepts
deposits in Colorado and Utah through its industrial bank subsidiary. Aristar
generally conducts its business under the names Blazer Financial, City Finance
and First Community Industrial Bank. At March 31, 1999, Aristar had assets of
$2.79 billion and deposits of $198.0 million.
Our principal executive offices are located at 1201 Third Avenue, Seattle,
Washington 98101, telephone number (206) 461-2000.
USE OF PROCEEDS
Unless otherwise specified in the applicable prospectus supplement,
Washington Mutual will use the net proceeds from the sale of the debt securities
for general corporate purposes. Examples of general corporate purposes include
additions to working capital, repayment of existing debt, acquisitions, and
office expansions.
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RATIO OF EARNINGS TO FIXED CHARGES
The following table contains Washington Mutual's ratio of earnings to fixed
charges for each of the periods indicated.
<TABLE>
<CAPTION>
THREE MONTHS
ENDED
YEAR ENDED DECEMBER 31, MARCH 31,
- ------------------------------- -------------
1994 1995 1996 1997 1998 1998 1999
- ---- ---- ---- ---- ---- ----- -----
<S> <C> <C> <C> <C> <C> <C>
1.27 1.27 1.10 1.24 1.34 1.36 1.41
</TABLE>
For purposes of this ratio, earnings consist of earnings before income
taxes plus fixed charges. Fixed charges consist of interest expense and the
estimated interest portion of rent expense.
DESCRIPTION OF DEBT SECURITIES
Washington Mutual may from time to time offer, under this prospectus,
unsecured debt securities, which may be senior debt securities or subordinated
debt securities. The aggregate offering price of the debt securities offered by
Washington Mutual by a prospectus supplement will not exceed $1,000,000,000.
The following description of the debt securities sets forth the material
terms and provisions of the debt securities to which any prospectus supplement
may relate. The senior debt securities are to be issued under an indenture (the
"Senior Indenture"), between Washington Mutual and Harris Trust and Savings
Bank, as trustee, a copy of which is filed as an exhibit to the registration
statement of which this prospectus is a part. The subordinated debt securities
are to be issued under an indenture (the "Subordinated Indenture") between
Washington Mutual and Harris Trust and Savings Bank, as trustee, a copy of which
is filed as an exhibit to the registration statement of which this prospectus is
a part. The Senior Indenture and the Subordinated Indenture are sometimes
referred to collectively as the "Indentures" and each individually as an
"Indenture." The particular terms of the debt securities offered by any
prospectus supplement (the "Offered Securities") and the extent, if any, to
which such general provisions may apply to the Offered Securities, will be
described in the prospectus supplement relating to such Offered Securities.
The following summaries of the material provisions of the Indentures and
the debt securities do not purport to be complete and are subject to, and are
qualified in their entirety by reference to all of the provisions of the
Indentures, including the definitions therein of certain terms, and such debt
securities. Wherever particular articles, sections or defined terms of an
Indenture are referred to, it is intended that such articles, sections or
defined terms shall be incorporated herein by reference, and the statement in
connection with which such reference is made is qualified in its entirety by
such reference. The Indentures are substantially identical, except for certain
covenants made by Washington Mutual and provisions relating to subordination.
GENERAL
The Indentures do not limit the aggregate principal amount of debt
securities which may be issued thereunder and provide that debt securities may
be issued thereunder from
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time to time in one or more series. (Section 3.1) The Indentures do not limit
the amount of other indebtedness or debt securities, other than certain secured
indebtedness as described below, which may be issued by Washington Mutual or its
subsidiaries.
Unless otherwise provided in a prospectus supplement, the senior debt
securities will be unsecured obligations of Washington Mutual and will rank on a
parity with all other unsecured and unsubordinated indebtedness of Washington
Mutual. The subordinated debt securities will be unsecured obligations of
Washington Mutual, subordinated in right of payment to the prior payment in full
of all Senior Indebtedness (which term includes senior debt securities) of
Washington Mutual as described below under "Subordination of Subordinated Debt
Securities" and in the applicable prospectus supplement.
The debt securities are obligations exclusively of Washington Mutual.
Because Washington Mutual's operations are currently conducted substantially
through subsidiaries, its cash flow and the consequent ability to service its
debt, including the debt securities, are dependent upon the earnings of its
subsidiaries and the distribution of those earnings to Washington Mutual, or
upon loans or other payments of funds by its subsidiaries to Washington Mutual.
The subsidiaries are separate and distinct legal entities and have no
obligation, contingent or otherwise, to pay any amounts due with respect to the
debt securities or to make funds available therefor, whether by dividends, loans
or other payments. In addition, the payment of dividends and certain loans and
advances to Washington Mutual by its subsidiaries may be subject to certain
statutory or contractual restrictions, are contingent upon the earnings of the
subsidiaries, and are subject to various business considerations.
The debt securities will be effectively subordinated to all liabilities,
including deposits, of Washington Mutual's subsidiaries. As of May 31, 1999,
Washington Mutual's subsidiaries had approximately $84.12 billion of deposits
and $77.45 billion of other debt outstanding. Any right of Washington Mutual to
receive assets of its subsidiaries upon the latter's liquidation or
reorganization (and the consequent right of the holders of the debt securities
to participate in those assets) will be effectively subordinated to the claims
of that subsidiary's creditors, except to the extent that Washington Mutual is
itself recognized as a creditor of a subsidiary, in which case the claims of
Washington Mutual would still be subordinate to any security interests in the
assets of the subsidiary and any liabilities of the subsidiary senior to
liabilities held by Washington Mutual.
The debt securities may be issued in fully registered form without coupons
("Registered Securities") or in bearer form with or without coupons ("Bearer
Securities") or in the form of one or more global securities (each a "Global
Security"). Registered Securities that are book-entry securities ("Book-Entry
Securities") will be issued as registered Global Securities. Bearer Securities
may be issued in the form of temporary or definitive Global Securities. Unless
otherwise provided in the prospectus supplement, the debt securities will be
only Registered Securities. The debt securities will be issued, unless otherwise
provided in the prospectus supplement, in denominations of $1,000 or an integral
multiple thereof for Registered Securities, and in denominations of $5,000 or an
integral multiple thereof for Bearer Securities.
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The prospectus supplement relating to the particular debt securities
offered thereby will describe the following terms of the Offered Securities:
(1) the title of the Offered Securities;
(2) whether the Offered Securities are senior debt securities or
subordinated debt securities;
(3) the percentage of principal amount at which the Offered Securities
will be issued;
(4) any limit on the aggregate principal amount of the Offered
Securities;
(5) the date or dates on which the Offered Securities will mature and
the amount or amounts of any installment of principal payable on such
dates;
(6) the rate or rates (which may be fixed or variable) per year at
which the Offered Securities will bear interest, if any, or the method of
determining such rate or rates and the date or dates from which such
interest, if any, will accrue;
(7) the date or dates on which interest, if any, on the Offered
Securities will be payable and the regular record dates for such payment
dates;
(8) the terms for redemption, repurchase or early payment, if any,
including any mandatory or optional sinking fund or analogous provisions;
(9) in the case of Offered Securities which bear no interest or
interest at a rate which at the time of issuance is below market rates, the
principal amount of that is payable upon declaration of acceleration of the
maturity of the Offered Securities;
(10) whether the Offered Securities will be issued in registered form
without coupons, in bearer form with or without coupons, including
temporary and definitive global form, or a combination thereof and the
circumstances, if any, upon which such Offered Securities may be exchanged
for Offered Securities issued in a different form;
(11) whether the Offered Securities are to be issued in whole or in
part in the form of one or more Global Securities and, if so, the identity
of the depositary for such Global Security or Securities;
(12) whether and under what circumstances Washington Mutual will pay
additional amounts to any Holder of Offered Securities who is not a United
States person (as defined under "-- Limitations on Issuance of Bearer
Securities") in respect of any tax, assessment or other governmental charge
required to be withheld or deducted and, if so, whether Washington Mutual
will have the option to redeem rather than pay any additional amounts;
(13) any additional covenants for the benefit of the holders of the
Offered Securities; and
(14) certain other terms, including the ability of the Washington
Mutual to satisfy and discharge its obligations under the Indenture with
respect to the Offered Securities.
No service charge will be made for any transfer or exchange of the debt
securities but Washington Mutual may require payment of a sum sufficient to
cover any tax or other governmental charge payable in connection therewith.
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Debt securities of a single series may be issued at various times with
different maturity dates and different principal repayment provisions, may bear
interest at different rates, may be issued at or above par or with an original
issue discount, and may otherwise vary, all as provided in the Indentures.
Federal income tax consequences and other special considerations applicable
to any debt securities issued with original issue discount or above par will be
described in the prospectus supplement relating thereto.
STATUS OF SENIOR DEBT SECURITIES
The senior debt securities will be unsecured and unsubordinated general
obligations of Washington Mutual and will rank on a parity with all other
unsecured and unsubordinated indebtedness of Washington Mutual.
SUBORDINATION OF SUBORDINATED DEBT SECURITIES
Payment of the principal of (and premium, if any) and interest, if any, on
the subordinated debt securities will be subordinate and junior in right of
payment to the prior payment in full of all Senior Debt (as defined herein). At
May 31, 1999, Senior Debt aggregated approximately $2.25 billon. The
Subordinated Indenture does not limit or restrict our ability to incur
additional Senior Debt, but certain of our other debt instruments contain such
limitations.
In the event of any sale pursuant to any judgment or decree in any
proceeding by or on behalf of any Holder, or of any distribution, division or
application of all or any part of Washington Mutual's assets to our creditors by
reason of any liquidation, dissolution or winding up of Washington Mutual or any
receivership, insolvency, bankruptcy or similar proceeding relative to
Washington Mutual or its debts or properties, then the Holders of Senior Debt
shall be preferred in the payment of their claims over the Holders of the
subordinated debt securities, and such Senior Debt shall be satisfied in full
before any payment or other distribution (other than securities which are
subordinate and junior in right of payment to the payment of all Senior Debt
then outstanding) shall be made upon the subordinated debt securities. In the
event that any subordinated debt security is declared or becomes due and payable
before its maturity because of an occurrence of an event of default (under
circumstances not described in the preceding sentence), no amount shall be paid
in respect of the subordinated debt securities in excess of current interest
payments, except sinking fund payments or at maturity, unless all Senior Debt
then outstanding shall have been paid in full or payments satisfactory to the
Holders thereof provided therefor. During the continuance of any default on
Senior Debt, no payments of principal, sinking fund, interest or premium shall
be made with respect to any subordinated debt security if either (i) notice of
default has been given to Washington Mutual, provided judicial proceedings are
commenced in respect thereof within 120 days, or (ii) judicial proceedings shall
be pending in respect of such default. In the event that any subordinated debt
security is declared or becomes due and payable before maturity, each holder of
Senior Debt shall be entitled to notice of same and shall be entitled to declare
payable on demand any Senior Debt outstanding to such holder.
"Debt" is defined in the Indenture to include all indebtedness of
Washington Mutual or any Consolidated Subsidiary representing deposits and money
borrowed, except indebtedness owed to Washington Mutual by any Consolidated
Subsidiary or owed to any Consolidated Subsidiary by Washington Mutual or any
other Consolidated Subsidiary, and
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includes indebtedness of any other person for money borrowed when such
indebtedness is guaranteed by Washington Mutual or any Consolidated Subsidiary.
The term "Debt" shall be deemed to include the liability of Washington Mutual or
any Consolidated Subsidiary in respect of any investment or similar certificate,
except to the extent such certificates are pledged by purchasers as collateral
for, and are offset by, receivables. "Senior Debt" is defined to mean all Debt
except Subordinated Debt. "Subordinated Debt" is defined to mean Washington
Mutual's 9.875% Senior Subordinated Notes Due 1999 and 7.875% Senior
Subordinated Notes Due 2004 (together, the "Senior Subordinated Notes"), its
8.375% Junior Subordinated Debentures due 2027, its 8.206% Subordinated
Deferrable Interest Notes due 2027, its 8.36% Subordinated Notes due 2026 and
its 8.25% Subordinated Deferrable Interest Notes due 2025 (together, the "Junior
Subordinated Notes"), and any Debt which is subordinate and junior in right of
payment to any other Debt by the terms of the instrument creating or evidencing
such Subordinated Debt.
Subordinated debt securities will rank on a parity with all other
Subordinated Debt other than the Junior Subordinated Notes. Subordinated debt
securities are senior to the Junior Subordinated Notes and to Washington
Mutual's common stock and will be senior to any other class of capital stock
which may be authorized.
EXCHANGE, REGISTRATION AND TRANSFER
Registered Securities (other than Book-Entry Securities) of any series will
be exchangeable for other Registered Securities of the same series and of a like
aggregate principal amount and tenor of different authorized denominations. In
addition, if Debt Securities of any series are issuable as both Registered
Securities and Bearer Securities, at the option of the Holder and subject to the
terms of the Indenture, Bearer Securities (with all unmatured coupons, except as
provided below, and all matured coupons in default) of such series will be
exchangeable into Registered Securities of the same series of any authorized
denominations and of a like aggregate principal amount and tenor. Bearer
Securities with coupons appertaining thereto surrendered in exchange for
Registered Securities between a Regular Record Date or a Special Record Date and
the relevant date for payment of interest shall be surrendered without the
coupon relating to such date for payment of interest and interest due on such
date will not be payable in respect of the Registered Security issued in
exchange for such Bearer Security, but will be payable only to the Holder of
such coupon when due in accordance with the terms of the applicable Indenture.
Bearer Securities will not be issued in exchange for Registered Securities.
Debt securities may be presented for exchange as provided above, and
Registered Securities (other than Book-Entry Securities) may be presented for
registration of transfer (with the form of transfer endorsed thereon duly
executed), at the office of the Security Registrar or at the office of any
transfer agent designated by Washington Mutual for such purpose with respect to
any series of debt securities referred to in the Prospectus Supplement, without
service charge and upon payment of any taxes and other governmental charges as
described in the applicable Indenture. Such transfer or exchange will be
effected upon the Security Registrar or such transfer agent, as the case may be,
being satisfied with the documents of title and identity of the person making
the request. Washington Mutual has appointed the trustee under each Indenture as
Security Registrar. If a prospectus supplement refers to any transfer agents (in
addition to the Security Registrar) initially designated by Washington Mutual
with respect to any series of debt securities, Washington Mutual may at any time
rescind the designation of any such transfer agent or approve a change in the
location through which any such transfer agent
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acts, except that, if debt securities of a series are issuable solely as
Registered Securities, Washington Mutual will be required to maintain a transfer
agent in each Place of Payment for such series and, if debt securities of a
series are issuable as Bearer Securities, Washington Mutual will be required to
maintain (in addition to the Security Registrar) a transfer agent in a Place of
Payment for such series located in Europe. Washington Mutual may at any time
designate additional transfer agents with respect to any series of debt
securities.
In the event of any redemption in part, Washington Mutual shall not be
required to: (i) issue, register the transfer of or exchange debt securities of
any series during a period beginning at the opening of business 15 days before
any selection of debt securities of that series to be redeemed and ending at the
close of business on (a) if debt securities of the series are issuable only as
Registered Securities, the day of mailing of the relevant notice of redemption
and (b) if debt securities of the series are issuable only as Bearer Securities,
the day of the first publication of the relevant notice of redemption or, if
debt securities of the series are also issuable as Registered Securities and
there is no publication, the day of mailing of the relevant notice of
redemption; (ii) register the transfer of or exchange any Registered Security,
or portion thereof, called for redemption, except the unredeemed portion of any
Registered Security being redeemed in part; or (iii) exchange any Bearer
Security called for redemption, except to exchange such Bearer Security for a
Registered Security of that series and like tenor which is simultaneously
surrendered for redemption.
For a discussion of restrictions on the exchange, registration and transfer
of Global Securities, see "-- Global Securities".
PAYMENT AND PAYING AGENTS
Unless otherwise provided in a prospectus supplement, payment of principal
of (and premium, if any) and interest, if any, on Bearer Securities will be
payable in U.S. dollars, subject to any applicable laws and regulations, at the
offices of such Paying Agents outside the United States as Washington Mutual may
designate from time to time, and payment of interest on Bearer Securities with
coupons appertaining thereto on any Interest Payment Date will be made only
against surrender of the coupon relating to such Interest Payment Date. No
payment of interest on a Bearer Security will be made unless, on the earlier of
the date of the first such payment by Washington Mutual or the delivery by
Washington Mutual of the Bearer Security in definitive form, a written
certificate in the form required by the Indenture is provided to the Trustee
stating that on such date the Bearer Security is owned by (i) a person that is
not a United States person, (ii) a United States person that (a) is a foreign
branch of a United States financial institution purchasing for its own account
or for resale or (b) acquired and holds the Bearer Security through the foreign
branch of a United States financial institution (and, in the case of either (a)
or (b), such financial institution agrees to comply with the requirements of
Section 165(j)(3)(A), (B) or (C) of the Internal Revenue Code of 1986, as
amended (the "Code"), and the regulations thereunder) or (iii) a financial
institution purchasing for resale during the restricted period (as defined under
"-- Global Securities -- Temporary and Definitive Global Securities") and, in
any case, if any such owner is a financial institution, such financial
institution has not acquired the Bearer Security for purposes of resale to
United States persons or to persons within the United States (as defined under
"-- Limitations on Issuance of Bearer Securities"). Presentation of coupons for
payment or other demands for payment of Bearer Securities must be made outside
the United States, and no payment with respect to any Bearer Security will be
made at any office or agency of Washington
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Mutual in the United States or by check mailed to any address in the United
States or by transfer to an account maintained with a bank located in the United
States. Notwithstanding the foregoing, payments of principal of (and premium, if
any) and interest, if any, on Bearer Securities will be made at the office of
Washington Mutual's Paying Agent in The City of New York, if (but only if) (i)
despite the appointment of Paying Agents outside the United States, payment of
the full amount thereof at the offices of all such Paying Agents is illegal or
effectively precluded by exchange controls or other similar restrictions, (ii)
such payment is then permitted by applicable laws and (iii) in appointing a
Paying Agent in The City of New York, Washington Mutual would not suffer any
fiscal or other sanction under applicable laws as a result of such appointment
or of any payment being made through such Paying Agent.
Unless otherwise provided in the prospectus supplement, payment of
principal of (and premium, if any) and interest, if any, on Registered
Securities will be made in U.S. dollars at the office of such Paying Agent or
Paying Agents as Washington Mutual may designate from time to time, except that
at the option of Washington Mutual payment of any interest may be made by check
mailed to the address of the Person entitled thereto as such address shall
appear in the Security Register. Unless otherwise provided in a prospectus
supplement, payment of any installment of interest on Registered Securities will
be made to the Person in whose name such Registered Security is registered at
the close of business on the Regular Record Date for such interest.
Unless otherwise provided in a prospectus supplement, the Corporate Trust
Office of each trustee in the city of Chicago will be designated as Washington
Mutual's sole Paying Agent for payments with respect to Offered Securities that
are issuable solely as Registered Securities and the office of each trustee's
affiliate as Washington Mutual's Paying Agent in the city of New York for
payments with respect to Offered Securities (subject to the limitations
described above in the case of Bearer Securities) that are issuable solely as
Bearer Securities or as both Registered Securities and Bearer Securities. Any
Paying Agents outside the United States and any other Paying Agents in the
United States initially designated by Washington Mutual for the Offered
Securities will be named in a prospectus supplement. Washington Mutual may at
any time designate additional Paying Agents or rescind the designation of any
Paying Agent or approve a change in the office through which any Paying Agent
acts, except that, if debt securities of a series are issuable solely as
Registered Securities, Washington Mutual will be required to maintain a Paying
Agent in each Place of Payment for such series and, if debt securities of a
series are issuable as Bearer Securities, Washington Mutual will be required to
maintain (i) a Paying Agent in the city of New York for payments with respect to
any Registered Securities of the series (and for payments with respect to Bearer
Securities of the series in the circumstances described above, but not
otherwise), and (ii) a Paying Agent in a Place of Payment located outside the
United States where debt securities of such series and any coupons appertaining
thereto may be presented and surrendered for payment; provided that if the debt
securities of such series are listed on The International Stock Exchange of the
United Kingdom and the Republic of Ireland Limited or the Luxembourg Stock
Exchange or any other stock exchange located outside the United States and such
stock exchange shall so require, Washington Mutual will maintain a Paying Agent
in London or Luxembourg or any other required city located outside the United
States, as the case may be, for the debt securities of such series.
All moneys paid by Washington Mutual to a Paying Agent for the payment of
principal of (and premium, if any) or interest, if any, on any Debt Security or
coupon that
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remain unclaimed at the end of two years after such principal, premium or
interest shall have become due and payable will be repaid to Washington Mutual
and the Holder of such Debt Security or coupon will thereafter look only to
Washington Mutual for payment thereof.
GLOBAL SECURITIES
The debt securities of a series may be issued in whole or in part as one or
more Global Securities that will be deposited with, or on behalf of, a
depositary located in the United States (a "U.S. Depositary") or a common
depositary located outside the United States (a "Common Depositary") identified
in the prospectus supplement relating to such series. Global Securities may be
issued in either registered or bearer form, and in either temporary or
definitive form.
The specific terms of the depositary arrangement with respect to any debt
securities of a series will be described in a prospectus supplement relating to
such series. Washington Mutual anticipates that the following provisions will
apply to all depositary arrangements with a U.S. Depositary or Common
Depositary.
BOOK-ENTRY SECURITIES
Unless otherwise specified in a prospectus supplement, debt securities
which are to be represented by a Global Security to be deposited with or on
behalf of a U.S. Depositary will be represented by a Global Security registered
in the name of such depositary or its nominee. Upon the issuance of a Global
Security in registered form, the U.S. Depositary for such Global Security will
credit, on its book-entry registration and transfer system, the respective
principal amounts of the debt securities represented by such Global Security to
the accounts of institutions that have accounts with such depositary or its
nominee ("participants"). The accounts to be credited shall be designated by the
underwriters or agents of such debt securities or by Washington Mutual, if such
debt securities are offered and sold directly by Washington Mutual. Ownership of
beneficial interests in such Global Securities will be limited to participants
or persons that may hold interests through participants. Ownership of beneficial
interests in such Global Securities will be shown on, and the transfer of that
ownership will be effected only through, records maintained by the U.S.
Depositary or its nominee for such Global Security or by participants or persons
that hold through participants. The laws of some jurisdictions require that
certain purchasers of securities take physical delivery of such securities in
definitive form. Such limits and such laws may impair the ability to transfer
beneficial interests in a Global Security.
So long as the U.S. Depositary for a Global Security in registered form, or
its nominee, is the registered owner of such Global Security, such depositary or
such nominee, as the case may be, will be considered the sole owner or holder of
the debt securities represented by such Global Security for all purposes under
the Indenture governing such debt securities. Except as set forth below, owners
of beneficial interests in such Global Securities will not be entitled to have
debt securities of the series represented by such Global Security registered in
their names, will not receive or be entitled to receive physical delivery of
debt securities of such series in definitive form and will not be considered the
owners or holders thereof under the Indenture including, without limitation, for
purposes of consenting to any amendment thereof or supplement thereto.
Payment of principal of (and premium, if any) and interest, if any, on debt
securities registered in the name of or held by a U.S. Depositary or its nominee
will be made to the
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U.S. Depositary or its nominee, as the case may be, as the registered owner or
the holder of the Global Security representing such debt securities. None of
Washington Mutual, the trustee, any Paying Agent or the Security Registrar for
such debt securities will have any responsibility or liability for any aspect of
the records relating to or payments made on account of beneficial ownership
interests in a Global Security for such debt securities or for maintaining,
supervising or reviewing any records relating to such beneficial ownership
interests.
Washington Mutual expects that the U.S. Depositary for debt securities of a
series, upon receipt of any payment of principal of (and premium, if any) or
interest on permanent Global Securities, will credit participants' accounts on
the date such payment is payable in accordance with their respective beneficial
interests in the principal amount of such Global Securities as shown on the
records of such Depositary. Washington Mutual also expects that payments by
participants to owners of beneficial interests in such Global Security held
through such participants will be governed by standing instructions and
customary practices, as is now the case with securities held for the accounts of
customers in bearer form or registered in "street name", and will be the
responsibility of such participants.
Unless and until it is exchanged in whole for debt securities in definitive
form, a Global Security may not be transferred except as a whole by the U.S.
Depositary for such Global Security to a nominee of such Depositary or by a
nominee of such Depositary to such Depositary or another nominee of such
Depositary or by such Depositary or any such nominee to a successor of such
Depositary or a nominee of such successor. If a U.S. Depositary for debt
securities in registered form is at any time unwilling or unable to continue as
depositary and a successor depositary is not appointed by Washington Mutual
within ninety days, Washington Mutual will issue debt securities in definitive
registered form in exchange for the Global Security or Securities representing
such debt securities. In addition, Washington Mutual may at any time and in its
sole discretion determine not to have any debt securities in registered form
represented by one or more Global Securities and, in such event, will issue debt
securities in definitive registered form in exchange for the Global Security or
Securities representing such Debt Securities. In any such instance, an owner of
a beneficial interest in a Global Security will be entitled to physical delivery
in definitive form of debt securities of the series represented by such Global
Security equal in principal amount to such beneficial interest and to have such
debt securities registered in the name of the owner of such beneficial interest.
TEMPORARY AND DEFINITIVE GLOBAL SECURITIES
If so specified in a prospectus supplement, all or any portion of the debt
securities of a series that are issuable as Bearer Securities initially will be
represented by one or more temporary Global Securities, without interest
coupons, to be deposited with a Common Depositary in London for Morgan Guaranty
Trust Company of New York, Brussels Office, as operator of the Euro-clear System
("Euro-clear") and CEDEL S.A. ("CEDEL") for credit to the respective accounts of
the beneficial owners of such debt securities (or to such other accounts as they
may direct). On and after the exchange date determined as provided in any such
temporary Global Security and described in a prospectus supplement, each such
temporary Global Security will be exchangeable for definitive debt securities in
bearer form, registered form, definitive global bearer form or any combination
thereof, as specified in such prospectus supplement, upon written certification
(as described under "-- Payment and Paying Agents") of non-United States
beneficial ownership. No Bearer
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Security delivered in exchange for a portion of a temporary Global Security
shall be mailed or otherwise delivered to any location in the United States.
Unless otherwise provided in a prospectus supplement, interest in respect
of any portion of a temporary Global Security payable in respect of an Interest
Payment Date occurring prior to the issuance of definitive debt securities will
be paid to each of Euro-clear and CEDEL with respect to the portion of the
temporary Global Security held for its account upon delivery to the Trustee of a
certificate of non-United States beneficial ownership signed by Euro-clear or
CEDEL, as the case may be, in the form required by the applicable Indenture
dated no earlier than such Interest Payment Date.
If any debt securities of a series are issuable in definitive global bearer
form, a prospectus supplement will describe the circumstances, if any, under
which beneficial owners of interests in any such definitive Global Security may
exchange such interests for debt securities of such series and of like tenor and
principal amount in any authorized form and denomination. No Bearer Security
delivered in exchange for a portion of a definitive Global Security shall be
mailed or otherwise delivered to any location in the United States in connection
with such exchange. A Person having a beneficial interest in a definitive Global
Security, except with respect to payment of principal of (and premium, if any)
and interest, if any, on such definitive Global Security, will be treated as a
Holder of such principal amount of outstanding debt securities represented by
such definitive Global Security as shall be specified in a written statement of
the Holder of such definitive Global Security or, in the case of a definitive
Global Security in bearer form, of Euro-clear or CEDEL which is produced to the
trustee by such Person. Principal of (and premium, if any) and interest, if any,
on a definitive Global Security will be payable in the manner described in the
Prospectus Supplement.
In connection with the sale of a Bearer Security during the "restricted
period," as defined in Section 1.163-5(c)(2)(i)(D)(7) of the United States
Treasury regulations (generally, the first 40 days after the closing date and,
with respect to unsold allotments, until sold), no Bearer Security (including a
definitive Bearer Security in global form) shall be mailed or otherwise
delivered to any location in the United States and a Bearer Security sold during
the restricted period may be delivered only if the person entitled to receive
such Bearer Security (including a definitive Bearer Security in global form)
furnishes written certification (as described under "-- Payment and Paying
Agents") of non-United States beneficial ownership. See "-- Limitations on
Issuance of Bearer Securities".
LIMITATIONS ON ISSUANCE OF BEARER SECURITIES
Generally, in compliance with United States federal tax laws and
regulations, Bearer Securities may not be offered or sold during the restricted
period (as defined under "-- Global Securities -- Temporary and Definitive
Global Securities") or delivered in connection with their sale during the
restricted period in the United States or to United States persons (each as
defined below) other than foreign branches of United States financial
institutions that agree in writing to comply with the requirements of Section
165(j)(3)(A), (B) or (C) of the Code or that purchase for resale during the
restricted period only to non-United States persons outside the United States.
Any underwriters, agents and dealers participating in the offering of Debt
Securities must agree that they will not offer or sell any Bearer Securities in
the United States or to United States persons
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(other than the financial institutions described above) or deliver Bearer
Securities within the United States.
Bearer Securities and their interest coupons will bear a legend
substantially to the following effect: "Any United States person who holds this
obligation will be subject to limitations under the United States income tax
laws, including the limitations provided in Sections 165(j) and 1287(a) of the
Internal Revenue Code". The Code Sections referred to in the legend provide
that, with certain exceptions, a United States person holding a Bearer Security
or coupon will not be permitted to deduct any loss, and will not be eligible for
capital gain treatment with respect to any gain, realized on a sale, exchange or
redemption of such Bearer Security or coupon.
As used in this prospectus, "United States person" means (i) an individual
citizen or resident of the United States, (ii) a corporation or partnership
organized in or under the laws of the United States or any state thereof or the
District of Columbia, (iii) an estate or trust the income of which is subject to
United States federal income taxation regardless of its source or (iv) a trust
the administration of which is subject to the primary supervision of a court
within the United States and for which one or more United States fiduciaries
have the authority to control all substantial decisions, and the term "United
States" means the United States of America (including the States and the
District of Columbia), its territories, its possessions, the Commonwealth of
Puerto Rico and other areas subject to its jurisdiction.
ABSENCE OF RESTRICTIVE COVENANTS
Washington Mutual is not restricted by either of the Indentures from paying
dividends or from incurring, assuming or becoming liable for any type of debt or
other obligations or from creating liens on its property for any purpose.
Neither of the Indentures requires the maintenance of any financial ratios or
specified levels of net worth or liquidity. Neither of the Indentures contains
provisions which afford holders of the debt securities protection in the event
of a highly leveraged transaction involving Washington Mutual.
MERGER AND CONSOLIDATION
Each Indenture provides that Washington Mutual, without the consent of the
Holders of any of the outstanding debt securities, may consolidate with or merge
into any other corporation or transfer or lease its properties and assets
substantially as an entirety to any Person or may permit any corporation to
merge into Washington Mutual, provided that: (i) the successor is a corporation
organized under the laws of any domestic jurisdiction; (ii) the successor, if
other than Washington Mutual, assumes Washington Mutual's obligations under such
Indenture and the debt securities issued thereunder; (iii) immediately after
giving effect to such transaction, no Event of Default and no event which, after
notice or lapse of time or both, would become an Event of Default, shall have
occurred and be continuing; and (iv) certain other conditions are met.
Each Indenture provides that, upon any consolidation or merger or transfer
or lease of the properties and assets of Washington Mutual substantially as an
entirety in accordance with the preceding paragraph, the successor corporation
formed by such consolidation or into which Washington Mutual is merged or to
which such transfer or lease is made shall be substituted for Washington Mutual
with the same effect as if such successor corporation had been named as
Washington Mutual. Thereafter, Washington Mutual shall be relieved of the
performance and observance of all obligations and covenants of such Indenture
and
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the senior debt securities or subordinated debt securities, as the case may be,
including but not limited to the obligation to make payment of the principal of
(and premium, if any) and interest, if any, on all the debt securities then
outstanding, and Washington Mutual may thereupon or any time thereafter be
liquidated and dissolved.
SATISFACTION AND DISCHARGE
Unless a prospectus supplement provides otherwise, Washington Mutual will
be discharged from its obligations under the outstanding debt securities of a
series upon satisfaction of the following conditions: (a) Washington Mutual has
irrevocably deposited with the trustee either (1) money in an amount as will, or
(2) U.S. Government Obligations as will, together with the predetermined and
certain income to accrue thereon without consideration of any reinvestment
thereof, or (3) a combination of (1) and (2) as will (in a written opinion with
respect to (2) or (3) of independent public accountants delivered to the
trustee), be sufficient to pay and discharge the entire principal of (and
premium, if any), and interest, if any, to Stated Maturity or any redemption
date on, the outstanding debt securities of such series; (b) Washington Mutual
has paid or caused to be paid all other sums payable with respect to the
outstanding debt securities of such series; (c) the trustee has received an
Officers' Certificate and an Opinion of Counsel each stating that all conditions
precedent have been complied with; and (d) the trustee has received (1) a ruling
directed to Washington Mutual and the trustee from the United States Internal
Revenue Service to the effect that the Holders of the debt securities of such
series will not recognize income, gain or loss for federal income tax purposes
as a result of Washington Mutual's exercise of its option to discharge its
obligations under the Indenture with respect to such series and will be subject
to federal income tax on the same amount and in the same manner and at the same
times as would have been the case if such deposit and discharge had not
occurred, (2) an opinion of tax counsel to the same effect as the ruling
described in clause (1) above and based upon a change in law, or (3) an
instrument, in form reasonably satisfactory to the trustee, wherein Washington
Mutual, notwithstanding such deposit and discharge, pursuant to the relevant
Indenture, of its indebtedness in respect of debt securities of any series, or
any portion of the principal amount thereof, shall assume the obligation (which
shall be absolute and unconditional) to irrevocably deposit with the trustee
such additional sums of money, if any, or additional U.S. Government Obligations
(meeting the requirements of such Indenture), if any, or any combination
thereof, at such time or times, as shall be necessary, together with the money
and/or U.S. Government Obligations theretofore so deposited, to pay when due the
principal of and premium, if any, and interest due and to become due on such
debt securities or portions thereof; provided, however, that such instrument may
state that the obligation of Washington Mutual to make additional deposits as
aforesaid shall be subject to the delivery to Washington Mutual by the trustee
of a notice asserting the deficiency accompanied by an opinion of an independent
public accountant of nationally recognized standing, selected by the trustee,
showing the calculation thereof. Upon such discharge, Washington Mutual will be
deemed to have satisfied all the obligations under the Indenture, except for
obligations with respect to registration of transfer and exchange of the debt
securities of such series, and the rights of the Holders to receive from
deposited funds payment of the principal of (and premium, if any) and interest,
if any, on the debt securities of such series.
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MODIFICATION OF THE INDENTURES
Each Indenture provides that Washington Mutual and the trustee thereunder
may, without the consent of any Holders of debt securities, enter into
supplemental indentures for the purposes, among other things, of adding to
Washington Mutual's covenants, adding any additional Events of Default,
establishing the form or terms of debt securities or curing ambiguities or
inconsistencies in such Indenture or making other provisions; provided such
action shall not adversely affect the interests of the Holders of any series of
debt securities in any material respect.
Each Indenture contains provisions permitting Washington Mutual, with the
consent of the Holders of not less than a majority in principal amount of the
outstanding debt securities of all affected series (acting as one class), to
execute supplemental indentures adding any provisions to or changing or
eliminating any of the provisions of such Indenture or modifying the rights of
the Holders of the debt securities of such series, except that no such
supplemental indenture may, without the consent of the Holders of all the
outstanding debt securities affected thereby, among other things:
(1) change the maturity of the principal of, or any installment of
principal of or interest on, any of the debt securities;
(2) reduce the principal amount thereof (or any premium thereon) or
the rate of interest, if any, thereon;
(3) reduce the amount of the principal of Original Issue Discount
Securities payable on any acceleration of maturity;
(4) change any obligation of Washington Mutual to maintain an office
or agency in the places and for the purposes required by such Indenture;
(5) impair the right to institute suit for the enforcement of any such
payment on or after the applicable maturity date;
(6) reduce the percentage in principal amount of the outstanding debt
securities of any series, the consent of the Holders of which is required
for any such supplemental indenture or for any waiver of compliance with
certain provisions of, or of certain defaults under, such Indenture; or
(7) with certain exceptions, to modify the provisions for the waiver
of certain defaults and any of the foregoing provisions.
EVENTS OF DEFAULT
An Event of Default in respect of any series of debt securities (unless it
is either inapplicable to a particular series or has been modified or deleted
with respect to any particular series) is defined in each Indenture to be:
(1) a default for 30 days in the payment when due of any interest on
such series of debt securities;
(2) a default in the payment of principal of (and premium, if any, on)
such series of debt securities, whether payable at maturity, by call for
redemption, pursuant to any sinking fund or otherwise;
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(3) a default for 90 days after a notice of default with respect to
the performance of any other covenant in such Indenture (other than a
covenant included in such Indenture solely for the benefit of a series of
debt securities other than that series);
(4) certain events of bankruptcy, insolvency or reorganization;
(5) an event of default under any mortgage, indenture (including such
Indenture) or other instrument under which any Debt shall be outstanding
which default shall have resulted in the acceleration of such Debt in
excess of $25,000,000 in aggregate principal amount (except that such
amount shall be $20,000,000 in respect of a default on debt securities of
another series) and such acceleration shall not have been rescinded or such
Debt discharged within a period of 30 days after notice; and
(6) any other event of default provided for such series of debt
securities.
Each Indenture provides that if an Event of Default specified therein in
respect of any series of outstanding debt securities issued under such Indenture
shall have happened and be continuing, either the trustee thereunder or the
Holders of not less than 25% in principal amount of the outstanding debt
securities of such series may declare the principal (or, if such debt securities
are Original Issue Discount Securities, such portion of the principal amount as
may be specified by the terms of such debt securities) of all of the outstanding
debt securities of such series to be immediately due and payable.
Each Indenture provides that the Holders of not less than a majority in
principal amount of the outstanding debt securities of any series may direct the
time, method and place of conducting any proceeding for any remedy available to
the trustee thereunder, or exercising any trust or power conferred on such
trustee, with respect to the debt securities of such series; provided that (1)
such direction shall not be in conflict with any rule of law or with the
Indenture, (2) the trustee may take any other action deemed proper that is not
inconsistent with such direction and (3) the trustee shall not determine that
the action so directed would be unjustly prejudicial to the Holders of debt
securities of such series not taking part in such direction.
Each Indenture provides that the Holders of not less than a majority in
principal amount of the outstanding debt securities of any series may on behalf
of the Holders of all of the outstanding debt securities of such series waive
any past default under the applicable Indenture with respect to such series and
its consequences, except a default (1) in the payment of the principal of (or
premium, if any) or interest, if any, on any of the debt securities of such
series or (2) in respect of a covenant or provision of such Indenture which,
under the terms of such Indenture, cannot be modified or amended without the
consent of the Holders of all of the outstanding debt securities of such series
affected thereby.
Each Indenture contains provisions entitling the trustee thereunder,
subject to the duty of such Trustee during an Event of Default in respect of any
series of debt securities to act with the required standard of care, to be
indemnified by the Holders of the Debt Securities of such series before
proceeding to exercise any right or power under such Indenture at the request of
the Holders of the debt securities of such series.
Each Indenture provides that the Trustee thereunder will, within 90 days
after the occurrence of a default in respect of any series of debt securities,
give to the Holders of the debt securities of such series notice of all uncured
and unwaived defaults known to it;
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provided, however, that, except in the case of a default in the payment of the
principal of (or premium, if any) or any interest on, or any sinking fund
installment with respect to, any of the debt securities of such series, such
trustee will be protected in withholding such notice if it in good faith
determines that the withholding of such notice is in the interests of the
Holders of the debt securities of such series; and provided, further, that such
notice shall not be given until at least 30 days after the occurrence of an
Event of Default regarding the performance of any covenant of Washington Mutual
under such Indenture other than for the payment of the principal of (or premium,
if any) or any interest on, or any sinking fund installment with respect to, any
of the Debt Securities of such series. The term default for the purpose of this
provision only means any event that is, or after notice or lapse of time, or
both, would become, an Event of Default with respect to the debt securities of
such series.
Washington Mutual will be required to furnish annually to each Trustee a
certificate as to compliance with all conditions and covenants under each of the
Indentures.
MEETINGS
Each Indenture contains provisions for convening meetings of the Holders of
debt securities of a series if debt securities of that series are issuable as
Bearer Securities. A meeting may be called at any time by the trustee under the
applicable Indenture, and also, upon request, by Washington Mutual or the
Holders of at least 10% in principal amount of the outstanding debt securities
of such series, in any such case upon notice given in accordance with
"-- Notices" below. Persons entitled to vote a majority in principal amount of
the outstanding debt securities of a series shall constitute a quorum at a
meeting of Holders of debt securities of such series, except that in the absence
of a quorum, a meeting called by Washington Mutual or the trustee shall be
adjourned for a period of not less than 10 days, and in the absence of a quorum
at any such adjourned meeting, the meeting shall be further adjourned for a
period of not less than 10 days, at which further adjourned meeting persons
entitled to vote 25% in aggregate principal amount of the outstanding debt
securities of such series shall constitute a quorum. Except for any consent
which must be given by the Holder of each outstanding debt security affected
thereby, as described above under "-- Modification of the Indentures", and
subject to the provisions described in the last sentence under this subheading,
any resolution presented at a meeting or adjourned meeting duly reconvened at
which a quorum is present may be adopted by the affirmative vote of the lesser
of (1) the Holders of a majority in principal amount of the outstanding debt
securities of that series and (2) 66 2/3% in aggregate principal amount of
outstanding debt securities of such series represented and voting at the
meeting; provided, however, that any resolution with respect to any request,
demand, authorization, direction, notice, consent, waiver or other action which
may be made, given or taken by the Holders of a specified percentage, which is
less than a majority, in principal amount of outstanding debt securities of a
series may be adopted at a meeting or adjourned meeting duly reconvened at which
a quorum is present by the affirmative vote of the lesser of (1) the Holders of
such specified percentage in principal amount of the outstanding debt securities
of that series and (2) a majority in principal amount of outstanding debt
securities of such series represented and voting at the meeting. Any resolution
passed or decision taken at any meeting of Holders of debt securities of any
series duly held in accordance with the applicable Indenture will be binding on
all Holders of debt securities of that series and the related coupons. With
respect to any consent, waiver or other action which the applicable Indenture
expressly provides may be given by the Holders of a specified percentage of
outstanding debt
20
<PAGE> 22
securities of all series affected thereby (acting as one class), only the
principal amount of outstanding debt securities of any series represented at a
meeting or adjourned meeting duly reconvened at which a quorum is present as
aforesaid and voting in favor of such action shall be counted for purposes of
calculating the aggregate principal amount of outstanding debt securities of all
series affected thereby favoring such action.
NOTICES
Except as otherwise provided in each Indenture, notices to Holders of
Bearer Securities will be given by publication at least once in a daily
newspaper in the city of New York and London and in such other city or cities as
may be specified in such Bearer Securities and will be mailed to such Persons
whose names and addresses were previously filed with the trustee under the
applicable Indenture, within the time prescribed for the giving of such notice.
Notices to Holders of Registered Securities will be given by mail to the
addresses of such Holders as they appear in the Security Register.
TITLE
Title to any Bearer Securities and any coupons appertaining thereto will
pass by delivery. Washington Mutual, the appropriate trustee and any agent of
Washington Mutual or such trustee may treat the bearer of any Bearer Security
and the bearer of any coupon and the registered owner of any Registered Security
(including Registered Securities in global registered form) as the absolute
owner thereof (whether or not such debt security or coupon shall be overdue and
notwithstanding any notice to the contrary) for the purpose of making payment
and for all other purposes.
PLAN OF DISTRIBUTION
Washington Mutual may sell all or part of the debt securities to or through
one or more underwriters for public offering and sale by them, and also may sell
debt securities directly to investors or through one or more agents. Any
underwriter or agent involved in the offer and sale of the Offered Securities
will be named in an applicable prospectus supplement.
Any particular series of debt securities may be acquired by such
underwriter(s) for their own account and may be resold from time to time in one
or more transactions, including negotiated transactions, at a fixed public
offering price or at varying prices determined at the time of sale. In
connection with the sale of debt securities, underwriters, dealers and agents
may receive compensation from Washington Mutual or from purchasers of debt
securities in the form of discounts, concessions or commissions. Underwriters,
dealers and agents who participate in the distribution of debt securities may be
deemed to be underwriters, and any discounts or commissions received by them
from Washington Mutual and any profit on the resale of debt securities by them
may be deemed to be underwriting discounts and commissions under the Securities
Act of 1933, as amended. Any such underwriter, dealer or agent will be
identified, and any such compensation received from Washington Mutual will be
described, in a prospectus supplement. Any initial public offering price and any
discounts or concessions allowed or reallowed or paid to dealers may be changed
from time to time.
Under agreements which may be entered into by Washington Mutual,
underwriters, dealers and agents who participate in the distribution of debt
securities may be entitled to
21
<PAGE> 23
indemnification by Washington Mutual against certain liabilities, including
certain liabilities under the Securities Act of 1933, as amended.
LEGAL OPINIONS
The legality of the debt securities will be passed upon for Washington
Mutual by Heller Ehrman White & McAuliffe, Seattle, Washington. Certain legal
matters in connection with the debt securities will be passed upon for any
underwriters or agents by Cleary, Gottlieb, Steen & Hamilton, New York, New
York. As of June 16, 1999, Heller Ehrman White & McAuliffe and individual
attorneys at the firm who participated in this transaction owned an aggregate of
8,501 shares of the common stock of Washington Mutual.
EXPERTS
The consolidated financial statements of Washington Mutual as of December
31, 1998 and 1997, and for each of the years in the three-year period ended
December 31, 1998, incorporated by reference in this Prospectus, which is
included in this Registration Statement of Washington Mutual on Form S-3, from
Washington Mutual's Annual Report on Form 10-K for the year ended December 31,
1998, have been audited by Deloitte & Touche LLP, independent auditors, as
stated in their report which is incorporated herein by reference. Insofar as the
report of Deloitte & Touche LLP relates to the amounts included for: (i) H.F.
Ahmanson & Company and subsidiaries for 1997 and 1996, it is based solely on the
report of KPMG LLP, independent auditors; and (ii) Great Western Financial
Corporation and subsidiaries for 1996, it is based solely on the report of
PricewaterhouseCoopers LLP, independent accountants; such reports being
incorporated by reference herein, and have been so incorporated in reliance upon
the reports of such firms given upon their authority as experts in auditing and
accounting.
22
<PAGE> 24
PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
ITEM 14. OTHER EXPENSES OF ISSUANCE AND DISTRIBUTION.
The following table sets forth the expenses to be paid by Washington Mutual
in connection with the issuance and distribution of the securities being
registered, other than underwriting discounts and commissions. All of the
amounts shown are estimated except the SEC registration fee.
<TABLE>
<S> <C>
SEC Registration Fee................................. $250,200
Legal Fees and Expenses.............................. $125,000
Accounting Fees and Expenses......................... $100,000
Printing Fees and Expenses........................... $ 90,000
Cost of Preparation of Securities.................... $ 2,500
Fees and Expenses of Trustees........................ $ 25,000
Blue Sky Fees and Expenses........................... $ 5,000
Rating Agency Fees................................... $300,000
Miscellaneous........................................ $ 23,500
--------
Total...................................... $921,200
========
</TABLE>
ITEM 15. INDEMNIFICATION OF DIRECTORS AND OFFICERS.
Section 23B.08.320 of the Washington Business Corporation Act (the
"Corporation Act") provides that the personal liability of directors to a
corporation imposed by Section 23B.08.310 of the Corporation Act may be
eliminated by the articles of incorporation of the corporation, except in the
case of acts or omissions involving certain types of conduct. At Article XIII of
its Restated Articles of Incorporation, the Registrant has elected to eliminate
the liability of directors to the Registrant to the extent permitted by law.
Thus, a director of the Registrant is not personally liable to the Registrant or
its shareholders for monetary damages for conduct as a director, except for
liability of the director (i) for acts or omissions that involve intentional
misconduct by the director or a knowing violation of law by the director, (ii)
for conduct violating Section 23B.08.310 of the Corporation Act, or (iii) for
any transaction from which the director will personally receive a benefit in
money, property or services to which the director is not legally entitled. If
Washington law is amended to authorize corporate action that further eliminates
or limits the liability of directors, then the liability of Washington Mutual
directors will be eliminated or limited to the fullest extent permitted by
Washington law, as so amended.
Section 23B.08.560 of the Corporation Act provides that if authorized by
(i) the articles of incorporation, (ii) a bylaw adopted or ratified by the
shareholders, or (iii) a resolution adopted or ratified, before or after the
event, by the shareholders, a corporation will have the power to indemnify
directors made party to a proceeding, or to obligate itself to advance or
reimburse expenses incurred in a proceeding, without regard to the limitations
on indemnification contained in Sections 23B.08.510 through 23B.08.550 of the
Corporation Act, provided that no such indemnity shall indemnify any director
(i) for acts or omissions that involve intentional misconduct by the director or
a knowing violation of law by the director, (ii) for conduct violating Section
23B.08.310 of the Corporation Act, or (iii) for any transaction from which the
director will personally receive a benefit in money, property or services to
which the director is not legally entitled.
II-1
<PAGE> 25
Pursuant to Article X of Washington Mutual's Restated Articles of
Incorporation and Article VIII of Washington Mutual's Bylaws, Washington Mutual
must, subject to certain exceptions, indemnify and defend its directors against
any expense, liability or loss arising from or in connection with any actual or
threatened action, suit or proceeding relating to service for or at the request
of Washington Mutual, including without limitation, liability under the
Securities Act. Washington Mutual is not permitted to indemnify a director from
or on account of acts or omissions of such director which are finally adjudged
to be intentional misconduct, or from or on account of conduct in violation of
RCW 23B.08.310, or a knowing violation of the law from or on account of any
transaction with respect to which it is finally adjudged that such director
received a benefit in money, property or services to which he or she was not
entitled. If Washington law is amended to authorize further indemnification of
directors, then Washington Mutual directors shall be indemnified to the fullest
extent permitted by Washington law, as so amended. Also, pursuant to Article X
of Washington Mutual's Restated Articles of Incorporation and Article VIII of
Washington Mutual's Bylaws, Washington Mutual may, by action of the Board of
Directors of Washington Mutual, provide indemnification and pay expenses to
officers, employees and agents of Washington Mutual or another corporation,
partnership, joint venture, trust or other enterprise with the same scope and
effect as above described in relation to directors. Insofar as indemnification
for liabilities arising under the Securities Act may be permitted to directors,
officers or persons controlling Washington Mutual pursuant to the provisions
described above, Washington Mutual has been informed that in the opinion of the
Commission such indemnification is against public policy as expressed in the
Securities Act and is therefore unenforceable.
ITEM 16. EXHIBITS.
<TABLE>
<CAPTION>
EXHIBIT
NUMBER EXHIBITS
- ------- --------
<C> <C> <S>
1.1+ -- Form of Underwriting Agreement.
1.2+ -- Form of Agency Agreement.
4.1 -- General Form of Senior Debt Security.*
4.2 -- General Form of Subordinated Debt Security.*
4.3 -- Form of Indenture between Washington Mutual and Harris
Savings and Trust Bank, as Senior Trustee.
4.4 -- Form of Indenture between Washington Mutual and Harris
Savings and Trust Bank, as Subordinated Trustee.
4.5 -- Form of Washington Mutual's Standard Multiple-Series
Indenture Provisions.
5.1 -- Opinion of Heller Ehrman White & McAuliffe as to the
legality of the securities being registered.
12.1 -- Statement re: computation of ratios.
23.1 -- Consent of PricewaterhouseCoopers LLP.
23.2 -- Consent of Deloitte & Touche LLP.
23.3 -- Consent of KPMG LLP.
23.4 -- Consent of Heller Ehrman White & McAuliffe (contained in
Exhibit 5).
24.1 -- Powers of attorney (see page II-4).
25.1 -- Statement of eligibility of Senior Trustee.
25.2 -- Statement of eligibility of Subordinated Trustee.
</TABLE>
- -------------------------
+ To be filed by amendment.
* In the event that Washington Mutual issues a form of Debt Security not filed
as an exhibit to this Registration Statement, Washington Mutual will file such
form of Debt Security in a Current Report on Form 8-K.
II-2
<PAGE> 26
ITEM 17. UNDERTAKINGS.
The undersigned Registrant hereby undertakes:
(a)
(1) To file, during any period in which offers or sales are being
made, a post-effective amendment to this registration statement:
(i) To include any prospectus required by Section 10(a)(3) of the
Securities Act of 1933 (the "Securities Act"), unless the information
required to be included in such post-effective amendment is contained in
a periodic report filed with or furnished to the Commission by the
Registrant pursuant to Section 13 or Section 15(d) of the Securities
Exchange Act of 1934 (the "Exchange Act") and incorporated herein by
reference;
(ii) To reflect in the prospectus any facts or events arising after
the effective date of the registration statement (or the most recent
post-effective amendment thereof) which, individually or in the
aggregate, represent a fundamental change in the information set forth
in the registration statement, unless the information required to be
included in such post-effective amendment is contained in a periodic
report filed with or furnished to the Commission by the Registrant
pursuant to Section 13 or Section 15(d) of the Exchange Act and
incorporated herein by reference. Notwithstanding the foregoing, any
increase or decrease in volume of securities offered (if the total
dollar value of securities offered would not exceed that which was
registered) and any deviation from the low or high end of the estimated
maximum offering range may be reflected in the form of prospectus filed
with the Commission pursuant to Rule 424(b) if, in the aggregate, the
changes in volume and price represent no more than a 20 percent change
in the maximum aggregate offering price set forth in the "Calculation of
Registration Fee" table in the effective registration statement.
(iii) To include any material information with respect to the plan
of distribution not previously disclosed in the registration statement
or any material change to such information in the registration
statement.
(2) That, for the purpose of determining any liability under the
Securities Act, each such post-effective amendment shall be deemed to be a
new registration statement relating to the securities offered therein, and
the offering of such securities at that time shall be deemed to be the
initial bona fide offering thereof.
(3) To remove from registration by means of a post-effective amendment
any of the securities being registered which remain unsold at the
termination of the offering.
(4) That, for purposes of determining any liability under the
Securities Act, each filing of the Registrant's annual report pursuant to
Section 13(a) or Section 15(d) of the Exchange Act that is incorporated by
reference in the registration statement shall be deemed to be a new
registration statement relating to the securities offered therein, and the
offering of such securities at that time shall be deemed to be the initial
bona fide offering thereof.
(b) Insofar as indemnification for liabilities arising under the Securities
Act may be permitted to directors, officers and controlling persons of the
Registrant pursuant to the provisions described under Item 15 above, or
otherwise, the Registrant has been advised
II-3
<PAGE> 27
that in the opinion of the Securities and Exchange Commission such
indemnification is against public policy as expressed in the Securities Act and
is, therefore, unenforceable. In the event that a claim for indemnification
against such liabilities (other than the payment by the Registrant of expenses
incurred or paid by a director, officer or controlling person of the Registrant
in the successful defense of any action, suit or proceeding) is asserted by such
director, officer or controlling person in connection with the securities being
registered, the Registrant will, unless in the opinion of its counsel the matter
has been settled by controlling precedent, submit to a court of appropriate
jurisdiction the question whether such indemnification by it is against public
policy as expressed in the Securities Act and will be governed by the final
adjudication of such issue.
II-4
<PAGE> 28
POWER OF ATTORNEY
Each of the officers and directors of the Registrant whose signature
appears below hereby constitutes and appoints Fay L. Chapman and William A.
Longbrake, and each of them severally, his true and lawful attorney-in-fact, for
him in any and all capacities, to sign any amendments (including post-effective
amendments) to this registration statement and any new registration statement
filed under Rule 462(b) of the Securities Act and amendments thereto, and to
file the same, with exhibits thereto, and any other documents in connection
therewith, with the Securities and Exchange Commission, and hereby ratifies and
confirms all that said attorney-in fact, or his or her substitute, may do or
cause to be done by virtue hereof.
SIGNATURES
Pursuant to the requirements of the Securities Act, the Registrant
certifies that it has reasonable grounds to believe that it meets all of the
requirements for filing on Form S-3 and has duly caused this registration
statement to be signed on its behalf by the undersigned, thereunto duly
authorized, in the City of Seattle, State of Washington, on this 16th day of
June, 1999.
WASHINGTON MUTUAL, INC.
By: /s/ KERRY K. KILLINGER
-----------------------------------
Kerry K. Killinger, Chairman,
President
and Chief Executive Officer
Pursuant to the requirements of the Securities Act of 1933, this
registration statement has been signed below by the following persons in the
capacities and on the dates indicated.
<TABLE>
<CAPTION>
SIGNATURE TITLE DATE
--------- ----- ----
<C> <C> <S>
/s/ KERRY K. KILLINGER Chairman, President, June 16, 1999
- --------------------------------------------------- Chief Executive Officer
Kerry K. Killinger and Director (Chief
Executive Officer)
/s/ WILLIAM A. LONGBRAKE Executive Vice President June 16, 1999
- --------------------------------------------------- and Chief Financial
William A. Longbrake Officer (Principal
Financial Officer)
/s/ RICHARD M. LEVY Senior Vice President & June 16, 1999
- --------------------------------------------------- Controller (Principal
Richard M. Levy Accounting Officer)
/s/ DOUGLAS P. BEIGHLE Director June 16, 1999
- ---------------------------------------------------
Douglas P. Beighle
/s/ DAVID BONDERMAN Director June 16, 1999
- ---------------------------------------------------
David Bonderman
</TABLE>
II-5
<PAGE> 29
<TABLE>
<CAPTION>
SIGNATURE TITLE DATE
--------- ----- ----
<C> <C> <S>
/s/ J. TAYLOR CRANDALL Director June 16, 1999
- ---------------------------------------------------
J. Taylor Crandall
/s/ ROGER H. EIGSTI Director June 16, 1999
- ---------------------------------------------------
Roger H. Eigsti
/s/ JOHN W. ELLIS Director June 16, 1999
- ---------------------------------------------------
John W. Ellis
/s/ ANNE V. FARRELL Director June 16, 1999
- ---------------------------------------------------
Anne V. Farrell
/s/ STEPHEN E. FRANK Director June 16, 1999
- ---------------------------------------------------
Stephen E. Frank
/s/ DR. WILLIAM P. GERBERDING Director June 16, 1999
- ---------------------------------------------------
Dr. William P. Gerberding
/s/ ENRIQUE HERNANDEZ, JR. Director June 16, 1999
- ---------------------------------------------------
Enrique Hernandez, Jr.
/s/ PHILLIP D. MATTHEWS Director June 16, 1999
- ---------------------------------------------------
Phillip D. Matthews
/s/ MICHAEL K. MURPHY Director June 16, 1999
- ---------------------------------------------------
Michael K. Murphy
/s/ MARY E. PUGH Director June 16, 1999
- ---------------------------------------------------
Mary E. Pugh
/s/ WILLIAM G. REED, JR. Director June 16, 1999
- ---------------------------------------------------
William G. Reed, Jr.
/s/ ELIZABETH A. SANDERS Director June 16, 1999
- ---------------------------------------------------
Elizabeth A. Sanders
/s/ WILLIAM D. SCHULTE Director June 16, 1999
- ---------------------------------------------------
William D. Schulte
/s/ JAMES H. STEVER Director June 16, 1999
- ---------------------------------------------------
James H. Stever
/s/ WILLIS B. WOOD, JR. Director June 16, 1999
- ---------------------------------------------------
Willis B. Wood, Jr.
</TABLE>
II-6
<PAGE> 30
<TABLE>
<CAPTION>
EXHIBIT
NUMBER EXHIBITS
- ------- --------
<C> <C> <S>
1.1+ -- Form of Underwriting Agreement.
1.2+ -- Form of Agency Agreement.
4.1 -- General Form of Senior Debt Security.*
4.2 -- General Form of Subordinated Debt Security.*
4.3 -- Form of Indenture between Washington Mutual and Harris
Savings and Trust Bank, as Senior Trustee.
4.4 -- Form of Indenture between Washington Mutual and Harris
Savings and Trust Bank, as Subordinated Trustee.
4.5 -- Form of Washington Mutual's Standard Multiple-Series
Indenture Provisions.
5.1 -- Opinion of Heller Ehrman White & McAuliffe as to the
legality of the securities being registered.
12.1 -- Statement re: computation of ratios.
23.1 -- Consent of PricewaterhouseCoopers LLP.
23.2 -- Consent of Deloitte & Touche LLP.
23.3 -- Consent of KPMG LLP.
23.4 -- Consent of Heller Ehrman White & McAuliffe (contained in
Exhibit 5).
24.1 -- Powers of attorney (see page II-4).
25.1 -- Statement of eligibility of Senior Trustee.
25.2 -- Statement of eligibility of Subordinated Trustee.
</TABLE>
- -------------------------
+ To be filed by amendment.
* In the event that Washington Mutual issues a form of Debt Security not filed
as an exhibit to this Registration Statement, Washington Mutual will file such
form of Debt Security in a Current Report on Form 8-K.
<PAGE> 1
EXHIBIT 4.1
UNLESS THIS SECURITY (AS DEFINED HEREIN) IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (THE
"DEPOSITARY"), TO THE COMPANY (AS DEFINED HEREIN) OR ITS AGENT FOR REGISTRATION
OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE TO BE ISSUED IS REGISTERED
IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITARY AND ANY AMOUNT PAYABLE THEREUNDER IS MADE
PAYABLE TO CEDE & CO. OR TO SUCH OTHER NAME, ANY TRANSFER, PLEDGE OR OTHER USE
HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE
REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.
UNLESS AND UNTIL THIS SECURITY IS EXCHANGED IN WHOLE OR IN PART FOR
CERTIFICATED SECURITIES REGISTERED IN THE NAMES OF THE VARIOUS BENEFICIAL
HOLDERS HEREOF AS THEN CERTIFIED TO THE COMPANY BY THE DEPOSITARY OR A SUCCESSOR
DEPOSITARY, THIS SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE
DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO
THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY
SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR
DEPOSITARY.
WASHINGTON MUTUAL, INC.
__% SENIOR NOTES DUE _______
No. 1 $__________
CUSIP:
WASHINGTON MUTUAL, INC., a Washington corporation (herein called the
"Company", which term shall refer to such Company until a successor corporation
shall have become such pursuant to the provisions of the Indenture referred to
herein and thereafter "Company" shall mean such successor corporation), for
value received, hereby promises to pay to Cede & Co., or registered assigns, the
principal sum of _________________ ($____________) on ____________, and to pay
interest thereon from ___________, or from the most recent Interest Payment Date
to which interest has been paid or duly provided for, semiannually on _____ and
_________ in each year, commencing _______, at the rate of ____% per annum,
until the principal hereof is paid or made available for payment.
The interest so payable, and punctually paid or duly provided for, on
any Interest Payment Date will, as provided in such Indenture, be paid to the
Person in whose name this Security (or one or more Predecessor Securities) is
registered at the close of
- 1 -
<PAGE> 2
business on the Regular Record Date for such interest, which shall be (in each
case whether or not a Business Day) the _____ or ______ as the case may be, next
preceding such Interest Payment Date. Any interest not punctually paid or duly
provided for shall forthwith cease to be payable to the Holder on such Regular
Record Date and may either be paid to the Person in whose name this Security (or
one or more Predecessor Securities) is registered at the close of business on a
Special Record Date for the payment of such Defaulted Interest to be fixed by
the Trustee, notice whereof shall be given to Holders of Securities of this
series not less than 10 days prior to such Special Record Date, or be paid at
any time in any other lawful manner not inconsistent with the requirements of
any securities exchange on which the Securities of this series may be listed,
and upon such notice as may be required by such exchange, all as more fully
provided in said Indenture.
Payment of the principal of (and premium, if any, on) and interest on
this Security will be made at the office or agency of the Company maintained for
that purpose in the Borough of Manhattan, in The City of New York, in such coin
or currency of the United States of America as at the time of payment is legal
tender for payment of public and private debts; provided, however, that at the
option of the Company, payment of interest may be made by check mailed to the
address of the Person entitled thereto as such address shall appear in the
Security Register.
This security is one of a duly authorized issue of securities of the
Company (herein called the "Securities"), issued and to be issued in one or more
series under an Indenture, dated as of June__, 1999 (herein called the
"Indenture"), between the Company and Harris Trust and Savings Bank, as Trustee
(herein called the "Trustee," which term includes any successor trustee or
trustees under the Indenture), to which Indenture and all indentures
supplemental thereto reference is hereby made for a statement of the respective
rights, limitations of rights, duties and immunities thereunder of the Company,
the Trustee and the Holders of the Securities and of the terms upon which the
Securities are, and are to be, authenticated and delivered. This Security is one
of the series designated on the face hereof, limited in aggregate principal
amount to $__________.
The Securities are not redeemable at the option of the Company prior to
Stated Maturity.
If an Event of Default with respect to Securities of this series shall
occur and be continuing, the principal of the Securities of this series may be
declared due and payable in the manner and with the effect provided in the
Indenture.
The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Securities of each series to be
affected under the Indenture at any time by the Company and the Trustee with the
consent of the Holders of not less than a majority in principal amount of the
Securities at the time Outstanding
- 2 -
<PAGE> 3
of all series to be affected (acting as one class). The Indenture also provides
that, regarding the Securities of any series, the Holders of not less than a
majority in principal amount of the Securities at the time Outstanding of such
series may waive certain past defaults and their consequences on behalf of the
Holders of all Securities of such series. Any such consent or waiver by the
Holder of this Security shall be conclusive and binding upon such Holder and
upon all future Holders of this Security and of any Security issued upon the
registration of transfer hereof or in exchange herefor or in lieu hereof,
whether or not notation of such consent or waiver is made upon this Security.
As provided in the Indenture, the Company shall be discharged from its
obligations with respect to the Securities of any series when (1) with respect
to all Outstanding Securities of such series, the Company has deposited or
caused to be deposited with the Trustee as a trust fund specifically pledged as
security for, and dedicated solely to, the benefit of the Holders of the
Securities of such series (i) money in an amount as will, or (ii) U.S.
Government Obligations as will, together with the predetermined and certain
income to accrue thereon without consideration of any reinvestment thereof, or
(iii) a combination of (i) and (ii) as will (in a written opinion with respect
to (ii) or (iii) of independent public accountants delivered to the Trustee), be
sufficient to pay and discharge the entire indebtedness on all Outstanding
Securities of such series for principal (and premium, if any) and interest, if
any, to the Stated Maturity; and (2) the Company has paid or caused to be paid
all other sums payable with respect to the Outstanding Securities of such
series; and (3) the Company has delivered to the Trustee an Officers'
Certificate and an Opinion of Counsel stating that all such conditions precedent
have been complied with; and (4) the Company has delivered to the Trustee (i) a
ruling directed to the Company and the Trustee from the United States Internal
Revenue Service to the effect that Holders of the Securities of such series will
not recognize income, gain or loss for Federal income tax purposes as a result
thereof and will be subject to Federal income tax as if such option had not been
exercised or (ii) an Opinion of Counsel to the same effect and based upon a
change in law.
No reference herein to the Indenture and no provisions of this Security
or of the Indenture shall alter or impair the obligation of the Company, which
is absolute and unconditional, to pay the principal of (and premium, if any) and
interest, if any, on this Security at the times, place and rate, and in the coin
or currency, herein and in the Indenture provided; subject, however, to the
provisions for the discharge of the Company from its obligations under the
Securities upon satisfaction of the conditions set forth in the preceding
paragraph or in the Indenture.
As provided in the Indenture, upon any consolidation or merger or any
conveyance, transfer or lease of the properties and assets of the Company
substantially as an entirety in accordance with the provisions of the Indenture,
the successor corporation formed by such consolidation or into which the
predecessor corporation is merged or to which such conveyance, transfer or lease
is made shall be
- 3 -
<PAGE> 4
substituted for the predecessor corporation with the same effect as if such
successor corporation had been named as the Company. Thereafter the predecessor
corporation shall be relieved of the performance and observance of all
obligations and covenants of the Indenture and the Securities, including but not
limited to the obligation to make payment of the principal of (and premium, if
any, on) and interest, if any, on all the Securities then Outstanding, and, in
the event of any such conveyance, transfer or lease, may be liquidated and
dissolved.
As provided in the Indenture and subject to certain limitations therein
set forth, the transfer of this Security is registrable in the Security
Register, upon surrender of this Security for registration of transfer at the
office or agency of the Company in any place where the principal of (and
premium, if any) and interest on this Security are payable, when duly endorsed
by, or accompanied by a written instrument of transfer in form satisfactory to
the Company and the Security Registrar duly executed by, the Holder hereof or
his attorney duly authorized in writing, and thereupon one or more new
Securities of this series, of authorized denominations and for a like aggregate
principal amount and tenor, will be issued to the designated transferee or
transferees.
- 4 -
<PAGE> 5
The Securities of this series are issuable only in registered form
without coupons in denominations of $1,000 and any larger amount that is an
integral multiple of $1,000. As provided in the Indenture and subject to certain
limitations therein set forth, Securities of this series are exchangeable for a
like aggregate principal amount and tenor of Securities of this series of a
different authorized denomination, upon surrender of the Securities to be
exchanged at any such office or agency.
No service charge shall be made for any such registration of transfer or
exchange, but the Company may require payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.
Prior to due presentment of this Security for registration of transfer,
the Company, the Trustee and any agent of the Company or the Trustee may treat
the Person in whose name this Security is registered as the owner hereof for all
purposes, whether or not this Security be overdue, and neither the Company, the
Trustee nor any such agent shall be affected by notice to the contrary.
As provided in the Indenture, no recourse shall be had for the payment
of the principal of (or premium, if any, on) or the interest, if any, on this
Security, or any part hereof, or for any claim based hereon or otherwise in
respect hereof, or of the indebtedness represented hereby, or upon any
obligation, covenant or agreement of the Company in the Indenture, against any
incorporator, direct or indirect stockholder, officer or director, as such,
past, present or future, of the Company or of any successor corporation (either
directly or through the Company or any such successor corporation), whether by
virtue of any constitutional provision, statute or rule of law, or by the
enforcement of any assessment or penalty or otherwise, all liability, if any, of
that character against every such incorporator, stockholder, officer and
director being by the acceptance hereof, and as a condition of and as part of
the consideration for the issue hereof, expressly waived and released.
The Indenture and the Securities shall be governed by and construed in
accordance with the laws of the State of New York.
All terms used in this Security which are defined in the Indenture shall
have the meanings assigned to them in the Indenture.
Unless the certificate of authentication hereon has been executed by the
Trustee by manual signature, this Security shall not be entitled to any benefit
under the Indenture or be valid or obligatory for any purpose.
- 5 -
<PAGE> 6
IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed under its corporate seal.
WASHINGTON MUTUAL, INC.
By:
-------------------------------------
Authorized Signatory
[SEAL]
Attest:
- -----------------------------------
Assistant Secretary
TRUSTEE'S CERTIFICATE OF AUTHENTICATION
This is one of the Securities of the series designated and issued under
the within mentioned Indenture.
Dated: ________, 1999
HARRIS TRUST AND SAVINGS BANK, as Trustee
By:
--------------------------------------
Authorized Signatory
- 6 -
<PAGE> 7
--------------------
ABBREVIATIONS
The following abbreviations, when used in the inscription on this
Security, shall be construed as though they were written out in full according
to applicable laws or regulations.
TEN COM -- as tenants in common UNIF GIFT MIN ACT
TEN ENT -- as tenants by the
entireties with right
of survivorship and not _____________Custodian
as tenants in common (Cust)
JT TEN -- as joint tenants
with right of survivor-
ship and not as tenants ----------------------
in common (Minor)
Under Uniform Gifts
to Minor Act
----------------------
(State)
Additional abbreviations may also be used though not in the above list.
-----------------
- 7 -
<PAGE> 8
FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
to
INSERT SOCIAL SECURITY OR
OTHER IDENTIFYING NUMBER OF
ASSIGNEE
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS OF ASSIGNEE
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
the within Security of Washington Mutual, Inc., and irrevocably constitutes
and
appoints________________________________________________________________________
to transfer said Security on the books of the within named Company, with full
power of substitution in the premises.
Dated:
----------- ----------------------------------------
----------------------------------------
The signature to this assignment must
correspond with the name as written upon
the face of the Security in every
particular without alteration or
enlargement, or any change whatsoever.
Signatures must be guaranteed by an
"eligible guarantor institution" meeting
the requirements of the Security
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 Security Registrar in
addition to, or in substitution for,
STAMP, all in accordance with the
Securities Exchange Act of 1934, as
amended.
- 8 -
<PAGE> 1
EXHIBIT 4.2
UNLESS THIS SECURITY (AS DEFINED HEREIN) IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (THE
"DEPOSITARY"), TO THE COMPANY (AS DEFINED HEREIN) OR ITS AGENT FOR REGISTRATION
OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE TO BE ISSUED IS REGISTERED
IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITARY AND ANY AMOUNT PAYABLE THEREUNDER IS MADE
PAYABLE TO CEDE & CO. OR TO SUCH OTHER NAME, ANY TRANSFER, PLEDGE OR OTHER USE
HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE
REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.
UNLESS AND UNTIL THIS SECURITY IS EXCHANGED IN WHOLE OR IN PART FOR
CERTIFICATED SECURITIES REGISTERED IN THE NAMES OF THE VARIOUS BENEFICIAL
HOLDERS HEREOF AS THEN CERTIFIED TO THE COMPANY BY THE DEPOSITARY OR A SUCCESSOR
DEPOSITARY, THIS SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE
DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO
THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY
SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR
DEPOSITARY.
WASHINGTON MUTUAL, INC.
__% SUBORDINATED NOTES DUE _______
No. 1 $__________
CUSIP:
WASHINGTON MUTUAL, INC., a Washington corporation (herein called the
"Company", which term shall refer to such Company until a successor corporation
shall have become such pursuant to the provisions of the Indenture referred to
herein and thereafter "Company" shall mean such successor corporation), for
value received, hereby promises to pay to Cede & Co., or registered assigns, the
principal sum of _________________ ($____________) on ____________, and to pay
interest thereon from ___________, or from the most recent Interest Payment Date
to which interest has been paid or duly provided for, semiannually on _____ and
_________ in each year, commencing _______, at the rate of ____% per annum,
until the principal hereof is paid or made available for payment.
The interest so payable, and punctually paid or duly provided for, on
any Interest Payment Date will, as provided in such Indenture, be paid to the
Person in whose name this Security (or one or more Predecessor Securities) is
registered at the close of
- 1 -
<PAGE> 2
business on the Regular Record Date for such interest, which shall be (in each
case whether or not a Business Day) the _____ or ______ as the case may be, next
preceding such Interest Payment Date. Any interest not punctually paid or duly
provided for shall forthwith cease to be payable to the Holder on such Regular
Record Date and may either be paid to the Person in whose name this Security (or
one or more Predecessor Securities) is registered at the close of business on a
Special Record Date for the payment of such Defaulted Interest to be fixed by
the Trustee, notice whereof shall be given to Holders of Securities of this
series not less than 10 days prior to such Special Record Date, or be paid at
any time in any other lawful manner not inconsistent with the requirements of
any securities exchange on which the Securities of this series may be listed,
and upon such notice as may be required by such exchange, all as more fully
provided in said Indenture.
Payment of the principal of (and premium, if any, on) and interest on
this Security will be made at the office or agency of the Company maintained for
that purpose in the Borough of Manhattan, in The City of New York, in such coin
or currency of the United States of America as at the time of payment is legal
tender for payment of public and private debts; provided, however, that at the
option of the Company, payment of interest may be made by check mailed to the
address of the Person entitled thereto as such address shall appear in the
Security Register.
This security is one of a duly authorized issue of securities of the
Company (herein called the "Securities"), issued and to be issued in one or more
series under an Indenture, dated as of June__, 1999 (herein called the
"Indenture"), between the Company and Harris Trust and Savings Bank, as Trustee
(herein called the "Trustee," which term includes any successor trustee or
trustees under the Indenture), to which Indenture and all indentures
supplemental thereto reference is hereby made for a statement of the respective
rights, limitations of rights, duties and immunities thereunder of the Company,
the Trustee and the Holders of the Securities and of the terms upon which the
Securities are, and are to be, authenticated and delivered. This Security is one
of the series designated on the face hereof, limited in aggregate principal
amount to $__________.
The Securities are not redeemable at the option of the Company prior to
Stated Maturity.
If an Event of Default with respect to Securities of this series shall
occur and be continuing, the principal of the Securities of this series may be
declared due and payable in the manner and with the effect provided in the
Indenture.
The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Securities of each series to be
affected under the Indenture at any time by the Company and the Trustee with the
consent of the Holders of not less than a majority in principal amount of the
Securities at the time Outstanding
- 2 -
<PAGE> 3
of all series to be affected (acting as one class). The Indenture also provides
that, regarding the Securities of any series, the Holders of not less than a
majority in principal amount of the Securities at the time Outstanding of such
series may waive certain past defaults and their consequences on behalf of the
Holders of all Securities of such series. Any such consent or waiver by the
Holder of this Security shall be conclusive and binding upon such Holder and
upon all future Holders of this Security and of any Security issued upon the
registration of transfer hereof or in exchange herefor or in lieu hereof,
whether or not notation of such consent or waiver is made upon this Security.
As provided in the Indenture, the Company shall be discharged from its
obligations with respect to the Securities of any series when (1) with respect
to all Outstanding Securities of such series, the Company has deposited or
caused to be deposited with the Trustee as a trust fund specifically pledged as
security for, and dedicated solely to, the benefit of the Holders of the
Securities of such series (i) money in an amount as will, or (ii) U.S.
Government Obligations as will, together with the predetermined and certain
income to accrue thereon without consideration of any reinvestment thereof, or
(iii) a combination of (i) and (ii) as will (in a written opinion with respect
to (ii) or (iii) of independent public accountants delivered to the Trustee), be
sufficient to pay and discharge the entire indebtedness on all Outstanding
Securities of such series for principal (and premium, if any) and interest, if
any, to the Stated Maturity; and (2) the Company has paid or caused to be paid
all other sums payable with respect to the Outstanding Securities of such
series; and (3) the Company has delivered to the Trustee an Officers'
Certificate and an Opinion of Counsel stating that all such conditions precedent
have been complied with; and (4) the Company has delivered to the Trustee (i) a
ruling directed to the Company and the Trustee from the United States Internal
Revenue Service to the effect that Holders of the Securities of such series will
not recognize income, gain or loss for Federal income tax purposes as a result
thereof and will be subject to Federal income tax as if such option had not been
exercised or (ii) an Opinion of Counsel to the same effect and based upon a
change in law.
No reference herein to the Indenture and no provisions of this Security
or of the Indenture shall alter or impair the obligation of the Company, which
is absolute and unconditional, to pay the principal of (and premium, if any) and
interest, if any, on this Security at the times, place and rate, and in the coin
or currency, herein and in the Indenture provided; subject, however, to the
provisions for the discharge of the Company from its obligations under the
Securities upon satisfaction of the conditions set forth in the preceding
paragraph or in the Indenture.
As provided in the Indenture, upon any consolidation or merger or any
conveyance, transfer or lease of the properties and assets of the Company
substantially as an entirety in accordance with the provisions of the Indenture,
the successor corporation formed by such consolidation or into which the
predecessor corporation is merged or to which such conveyance, transfer or lease
is made shall be
- 3 -
<PAGE> 4
substituted for the predecessor corporation with the same effect as if such
successor corporation had been named as the Company. Thereafter the predecessor
corporation shall be relieved of the performance and observance of all
obligations and covenants of the Indenture and the Securities, including but not
limited to the obligation to make payment of the principal of (and premium, if
any, on) and interest, if any, on all the Securities then Outstanding, and, in
the event of any such conveyance, transfer or lease, may be liquidated and
dissolved.
As provided in the Indenture and subject to certain limitations therein
set forth, the transfer of this Security is registrable in the Security
Register, upon surrender of this Security for registration of transfer at the
office or agency of the Company in any place where the principal of (and
premium, if any) and interest on this Security are payable, when duly endorsed
by, or accompanied by a written instrument of transfer in form satisfactory to
the Company and the Security Registrar duly executed by, the Holder hereof or
his attorney duly authorized in writing, and thereupon one or more new
Securities of this series, of authorized denominations and for a like aggregate
principal amount and tenor, will be issued to the designated transferee or
transferees.
- 4 -
<PAGE> 5
The Securities of this series are issuable only in registered form
without coupons in denominations of $1,000 and any larger amount that is an
integral multiple of $1,000. As provided in the Indenture and subject to certain
limitations therein set forth, Securities of this series are exchangeable for a
like aggregate principal amount and tenor of Securities of this series of a
different authorized denomination, upon surrender of the Securities to be
exchanged at any such office or agency.
No service charge shall be made for any such registration of transfer or
exchange, but the Company may require payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.
Prior to due presentment of this Security for registration of transfer,
the Company, the Trustee and any agent of the Company or the Trustee may treat
the Person in whose name this Security is registered as the owner hereof for all
purposes, whether or not this Security be overdue, and neither the Company, the
Trustee nor any such agent shall be affected by notice to the contrary.
As provided in the Indenture, no recourse shall be had for the payment
of the principal of (or premium, if any, on) or the interest, if any, on this
Security, or any part hereof, or for any claim based hereon or otherwise in
respect hereof, or of the indebtedness represented hereby, or upon any
obligation, covenant or agreement of the Company in the Indenture, against any
incorporator, direct or indirect stockholder, officer or director, as such,
past, present or future, of the Company or of any successor corporation (either
directly or through the Company or any such successor corporation), whether by
virtue of any constitutional provision, statute or rule of law, or by the
enforcement of any assessment or penalty or otherwise, all liability, if any, of
that character against every such incorporator, stockholder, officer and
director being by the acceptance hereof, and as a condition of and as part of
the consideration for the issue hereof, expressly waived and released.
The indebtedness evidenced by this Security is, to the extent permitted
in the Indenture, subordinate and subject in right of payment to the prior
payment in full of all Senior Debt, and this Security is issued subject to the
provisions of the Indenture with respect thereto. Each Holder of this Security,
by accepting the same (1) agrees to and shall be bound by such provisions, (2)
authorizes and directs the Trustee on his behalf to take such action as may be
necessary or appropriate to effecuate the subordination so provided, and (3)
appoints the Trustee his attorney-in-fact for any and all such purposes.
The Indenture and the Securities shall be governed by and construed in
accordance with the laws of the State of New York.
All terms used in this Security which are defined in the Indenture shall
have the meanings assigned to them in the Indenture.
- 5 -
<PAGE> 6
Unless the certificate of authentication hereon has been executed by the
Trustee by manual signature, this Security shall not be entitled to any benefit
under the Indenture or be valid or obligatory for any purpose.
- 6 -
<PAGE> 7
IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed under its corporate seal.
WASHINGTON MUTUAL, INC.
By:
-------------------------------------
Authorized Signatory
[SEAL]
Attest:
- -----------------------------------
Assistant Secretary
TRUSTEE'S CERTIFICATE OF AUTHENTICATION
This is one of the Securities of the series designated and issued under
the within mentioned Indenture.
Dated: , 1999
HARRIS TRUST AND SAVINGS BANK, as Trustee
By:
--------------------------------------
Authorized Signatory
- 7 -
<PAGE> 8
--------------------
ABBREVIATIONS
The following abbreviations, when used in the inscription on this
Security, shall be construed as though they were written out in full according
to applicable laws or regulations.
TEN COM -- as tenants in common UNIF GIFT MIN ACT
TEN ENT -- as tenants by the
entireties with right
of survivorship and not _____________Custodian
as tenants in common (Cust)
JT TEN -- as joint tenants
with right of survivor-
ship and not as tenants ----------------------
in common (Minor)
Under Uniform Gifts
to Minor Act
----------------------
(State)
Additional abbreviations may also be used though not in the above list.
-----------------
- 8 -
<PAGE> 9
FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
to
INSERT SOCIAL SECURITY OR
OTHER IDENTIFYING NUMBER OF
ASSIGNEE
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS OF ASSIGNEE
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
the within Security of Washington Mutual, Inc., and irrevocably constitutes
and
appoints________________________________________________________________________
to transfer said Security on the books of the within named Company, with full
power of substitution in the premises.
Dated:
--------- ----------------------------------------
----------------------------------------
The signature to this assignment must
correspond with the name as written upon
the face of the Security in every
particular without alteration or
enlargement, or any change whatsoever.
Signatures must be guaranteed by an
"eligible guarantor institution" meeting
the requirements of the Security
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 Security Registrar in
addition to, or in substitution for,
STAMP, all in accordance with the
Securities Exchange Act of 1934, as
amended.
- 9 -
<PAGE> 1
EXHIBIT 4.3
WASHINGTON MUTUAL, INC.
AND
HARRIS TRUST AND SAVINGS BANK, AS TRUSTEE
--------------------------
Senior Debt Securities
Indenture
---------------------------
Dated as of __, 1999
<PAGE> 2
INDENTURE, dated as of __, 1999 (the "Indenture"), between
WASHINGTON MUTUAL, INC., a corporation duly organized and existing under the
laws of the State of Washington (herein called the "Company"), having its
principal offices at 8900 Grand Oak Circle, Tampa, Florida 33637-1050, and
HARRIS TRUST AND SAVINGS BANK, an Illinois banking corporation, as Trustee
(herein called the "Trustee").
RECITALS OF THE COMPANY
The Company has duly authorized the execution and delivery of this
Indenture to provide for the issuance from time to time of its unsecured
debentures, notes or other obligations for money so borrowed (herein called the
"Securities"), to be issued in one or more series as in this Indenture provided.
All things necessary to make this Indenture a valid agreement of the
Company, in accordance with its terms, have been done.
NOW, THEREFORE, THIS INDENTURE WITNESSETH:
For and in consideration of the premises and the purchase of the
Securities by the Holders thereof, it is mutually covenanted and agreed, for the
equal and proportionate benefit of all Holders of the Securities or of any
series thereof, as follows:
PARAGRAPH A. INCORPORATION BY REFERENCE
Articles I through XIV of the Washington Mutual, Inc. Standard
Multiple-Series Indenture Provisions dated as of June __, 1999 (herein called
the "Standard Provisions"), a copy of which is attached hereto as Annex "A", are
hereby incorporated herein by reference with the same force and effect as though
fully set out herein.
PARAGRAPH B. ADDITIONAL PROVISIONS
1. Section 2.2 of the Standard Provisions is hereby amended by
deleting the words "[full name of Trustee] " and inserting the words "Harris
Trust and Savings Bank."
2. Section 1.5, subsection (b), of the Standard Provisions is hereby
amended by deleting the words "the address of its principal office specified in
the first paragraph of this instrument" and inserting the words 1201 Third
Avenue, Suite 1500, Seattle, Washington 98101, Attention: Marangal I. Domingo,
with a copy to the same address, Attention: Executive Vice President and General
Counsel."
3. The following provision, which constitutes part of this
Indenture, is numbered to conform with the format of the Standard Provisions.
Section 6.15. Corporate Trust Office. At the date of this
Indenture, the Corporate Trust Office of the Trustee is located at 311
West Monroe, 12th Floor, Chicago, Illinois 60606.
1
<PAGE> 3
IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be
duly executed, and their respective corporate seals to be hereunto affixed and
attested, all as of the day and year first above written.
WASHINGTON MUTUAL, INC.
By
--------------------------------------
Title: Authorized Signatory
[SEAL]
Attest
- ------------------------------
Assistant Secretary
HARRIS TRUST AND SAVINGS BANK,
as Trustee
By
--------------------------------------
Title: Authorized Signatory
[SEAL]
Attest
- ------------------------------
Title: Assistant Secretary
2
<PAGE> 4
STATE OF WASHINGTON )
) ss
COUNTY OF KING )
On the __ day of , 1999, before me personally came Marangal I.
Domingo to me known, who, being by me duly sworn, did depose and say that he is
Senior Vice President and Treasurer of WASHINGTON MUTUAL, INC., one of the
corporations described in and which executed the foregoing instrument; that he
knows the seal of said corporation; that the seal affixed to said instrument is
such corporate seal; that it was so affixed by authority of the Board of
Directors of said corporation, and that he signed his name thereto by like
authority.
-----------------------------------------
Notary Public
3
<PAGE> 5
IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be
duly executed, and their respective corporate seals to be hereunto affixed and
attested, all as of the day and year first above written.
WASHINGTON MUTUAL, INC.
By:
-------------------------------------
Title: Authorized Signatory
[SEAL]
Attest
- ------------------------------
Assistant Secretary
HARRIS TRUST AND SAVINGS BANK,
as Trustee
By
-------------------------------------
Title: Authorized Signatory
[SEAL]
Attest
- ------------------------------
Title: Assistant Secretary
4
<PAGE> 6
STATE OF ILLINOIS )
) ss
COUNTY OF COOK )
On the __ day of ____, 1999, before me personally came _____________ to
me known, who, being by me duly sworn, did depose and say that he/she is
__________ of HARRIS TRUST AND SAVINGS BANK, one of the corporations described
in and which executed the foregoing instrument; that he/she knows the seal of
said corporation; that the seal affixed to said instrument is such corporate
seal; that it was so affixed by authority of the Board of Directors of said
corporation, and that he/she signed his/her name thereto by like authority.
-----------------------------------------
Notary Public
5
<PAGE> 1
EXHIBIT 4.4
WASHINGTON MUTUAL, INC.
AND
HARRIS TRUST AND SAVINGS BANK, AS TRUSTEE
--------------------------
Subordinated Debt Securities
Indenture
---------------------------
Dated as of ____ __, 1999
<PAGE> 2
INDENTURE, dated as of ____ __, 1999 (the "Indenture"), between
WASHINGTON MUTUAL, INC., a corporation duly organized and existing under the
laws of the State of Washington (herein called the "Company"), having its
principal offices at 8900 Grand Oak Circle, Tampa, Florida 33637-1050, and
HARRIS TRUST AND SAVINGS BANK, an Illinois banking corporation, as Trustee
(herein called the "Trustee").
RECITALS OF THE COMPANY
The Company has duly authorized the execution and delivery of this
Indenture to provide for the issuance from time to time of its subordinated and
unsecured debentures, notes or other obligations for money so borrowed (herein
called the "Securities"), to be issued in one or more series as in this
Indenture provided.
All things necessary to make this Indenture a valid agreement of the
Company, in accordance with its terms, have been done.
NOW, THEREFORE, THIS INDENTURE WITNESSETH:
For and in consideration of the premises and the purchase of the
Securities by the Holders thereof, it is mutually covenanted and agreed, for the
equal and proportionate benefit of all Holders of the Securities or of any
series thereof, as follows:
PARAGRAPH A. INCORPORATION BY REFERENCE
Articles I through XIV of the Washington Mutual, Inc. Standard
Multiple-Series Indenture Provisions dated as of ____ __, 1999 (herein called
the "Standard Provisions") , a copy of which is attached hereto as Annex "A",
are hereby incorporated herein by reference with the same force and effect as
though fully set out herein.
PARAGRAPH B. ADDITIONAL PROVISIONS
1. Section 1.11 of the Standard Provisions is hereby amended by
inserting ", holders of Senior Debt" after the word "hereunder" on the third
line thereof.
2. Section 2.2 of the Standard Provisions is hereby amended by
deleting the words "[full name of Trustee] " and inserting the words "Harris
Trust and Savings Bank."
3. Section 1.5, subsection (b), of the Standard Provisions is hereby
amended by deleting the words "the address of its principal office specified in
the first paragraph of this instrument" and inserting the words 1201 Third
Avenue, Suite 1500, Seattle, Washington 98101, Attention: Marangal I. Domingo,
with a copy to the same address, Attention: Executive Vice President and General
Counsel."
4. The following provision, which constitutes part of this
Indenture, is numbered to conform with the format of the Standard Provisions.
1
<PAGE> 3
Section 6.15. Corporate Trust Office. At the date of this
Indenture, the Corporate Trust Office of the Trustee is located at 311
West Monroe, 12th Floor, Chicago, Illinois 60606.
IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be
duly executed, and their respective corporate seals to be hereunto affixed and
attested, all as of the day and year first above written.
WASHINGTON MUTUAL, INC.
By
--------------------------------------
Title: Authorized Signatory
[SEAL]
Attest
- ------------------------------
Assistant Secretary
HARRIS TRUST AND SAVINGS BANK,
as Trustee
By
--------------------------------------
Title: Authorized Signatory
[SEAL]
Attest
- ------------------------------
Title: Assistant Secretary
2
<PAGE> 4
STATE OF WASHINGTON )
) ss
COUNTY OF KING )
On the __ day of , 1999, before me personally came Marangal I.
Domingo to me known, who, being by me duly sworn, did depose and say that he is
Senior Vice President and Treasurer of WASHINGTON MUTUAL, INC., one of the
corporations described in and which executed the foregoing instrument; that he
knows the seal of said corporation; that the seal affixed to said instrument is
such corporate seal; that it was so affixed by authority of the Board of
Directors of said corporation, and that he signed his name thereto by like
authority.
--------------------------------------
Notary Public
3
<PAGE> 5
IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be
duly executed, and their respective corporate seals to be hereunto affixed and
attested, all as of the day and year first above written.
WASHINGTON MUTUAL, INC.
By:
-------------------------------------
Title: Authorized Signatory
[SEAL]
Attest
- ------------------------------
Title: Assistant Secretary
HARRIS TRUST AND SAVINGS BANK,
as Trustee
By
--------------------------------------
Title: Authorized Signatory
[SEAL]
Attest
- ------------------------------
Title: Assistant Secretary
4
<PAGE> 6
STATE OF ILLINOIS )
) ss
COUNTY OF COOK )
On the __ day of , 1999, before me personally came _____________ to
me known, who, being by me duly sworn, did depose and say that he/she is
__________ of HARRIS TRUST AND SAVINGS BANK, one of the corporations described
in and which executed the foregoing instrument; that he/she knows the seal of
said corporation; that the seal affixed to said instrument is such corporate
seal; that it was so affixed by authority of the Board of Directors of said
corporation, and that he/she signed his/her name thereto by like authority.
--------------------------------------
Notary Public
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EXHIBIT 4.5
WASHINGTON MUTUAL, INC.
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Standard Multiple-Series
Indenture Provisions
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Dated as of __, 1999
<PAGE> 2
ARTICLE I
DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION
1.1 DEFINITIONS. For all purposes of this Indenture, except as otherwise
expressly provided or unless the context otherwise requires:
(a) the terms defined in this Article have the meanings
assigned to them in this Article and include the plural as well as the singular;
(b) all other terms used herein which are defined in the Trust
Indenture Act, either directly or by reference therein, have the meanings
assigned to them therein;
(c) all accounting terms not otherwise defined herein have the
meanings assigned to them in accordance with generally accepted accounting
principles, and, except as otherwise herein expressly provided, the term
"generally accepted accounting principles" with respect to any computation
required or permitted hereunder shall mean such accounting principles as are
generally accepted at the date of such computation; and
(d) the words "herein", "hereof" and "hereunder" and other
words of similar import refer to this Indenture as a whole and not to any
particular Article, Section or other subdivision.
Certain terms, used principally within an Article of this Indenture, may
be defined in that Article.
"Act" when used with respect to any Holder, has the meaning specified in
Section 1.4.
"Affiliate" of any specified Person means any other Person directly or
indirectly controlling or controlled by or under direct or indirect common
control with such specified Person. For the purposes of this definition,
"control" when used with respect to any specified Person means the power to
direct the management and policies of such Person, directly or indirectly,
whether through the ownership of voting securities, by contract or otherwise;
and the terms "controlling" and "controlled" have meanings correlative to the
foregoing.
"Authenticating Agent" means any Person authorized by the Trustee
pursuant to Section 6.14 to act on behalf of the Trustee to authenticate
securities of one or more series.
"Authorized Newspaper" means a newspaper of general circulation in the
place of publication, printed in the official language of the country of
publication and customarily published on each Business Day, whether or not
published on Saturdays, Sundays or holidays. Whenever successive weekly
publications in an Authorized Newspaper are authorized or required hereunder,
they may be made (unless otherwise expressly provided herein) on the same or
different days of the week and in the same or different Authorized Newspapers.
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"Bearer Security" means any Security in the form of a bearer security
established pursuant to Section 3.1 which is payable to bearer and is not a
Registered Security (including without limitation any Security in temporary or
definitive global bearer form).
"Board of Directors" means either the board of directors of the Company
or any duly authorized committee of that board.
"Board Resolution" means a copy of a resolution certified by the
Secretary or an Assistant Secretary of the Company to have been duly adopted by
the Board of Directors and to be in full force and effect on the date of such
certification, and delivered to the Trustee.
"Business Day", when used with respect to any Place of Payment or place
of publication, means each Monday, Tuesday, Wednesday, Thursday and Friday which
is not a day on which banking institutions in that Place of Payment or place of
publication are authorized or obligated by or pursuant to law regulation or
executive order to close or as specified for a series of Securities pursuant to
Section 3.1 or as specified for any Security in such Security.
"Commission" means the Securities and Exchange Commission, as from time
to time constituted, created under the Securities Exchange Act of 1934, or, if
at any time after the execution of this instrument such Commission is not
existing and performing the duties now assigned to it under the Trust Indenture
Act, then the body performing such duties at such time.
"Common Depositary" has the meaning specified in Section 3.4.
"Company" means the Person named as the "Company" in the first paragraph
of this instrument until a successor corporation shall have become such pursuant
to the applicable provisions of this Indenture, and thereafter "Company" shall
mean such successor corporation.
"Company Request", "Request of the Company", "Company Order" or "Order
of the Company" means a written request or order signed in the name of the
Company by its Chairman of the Board, its President or a Vice-President, and by
its Treasurer, an Assistant Treasurer, its Controller, an Assistant Controller,
its Secretary or an Assistant Secretary, and delivered to the Trustee.
"Consolidated Subsidiary" means every Subsidiary which does not transact
any substantial portion of its business or regularly maintain any substantial
portion of its operating assets outside the United States or Canada other than
(i) a Subsidiary acquired or organized after the date of this Indenture which,
prior to the date of acquisition or organization, shall have been classified by
resolution of the Board of Directors or Executive Committee of the Board of
Directors of the Company as an Unconsolidated Subsidiary unless and until the
Board of Directors or Executive Committee of the Board of Directors of the
Company shall by resolution reclassify such Subsidiary as a Consolidated
Subsidiary; and (ii) any Subsidiary of an Unconsolidated Subsidiary; provided,
however, that an Unconsolidated Subsidiary shall not be a successor, directly or
indirectly, to any Consolidated Subsidiary.
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"Corporate Trust Office" means the office of the Trustee in The City of
Chicago at which at any particular time its corporate trust business shall be
administered, which office at the date hereof is that indicated in Section 6.15
of this Indenture, except that with respect to the presentation of Securities
(or Coupons, if any, representing an installment of interest) for payment or for
registration of transfer and exchange, such term shall mean the office or the
agency of the Trustee in said city at which at any particular time its corporate
agency business shall be conducted.
"Corporation" includes corporations, associations, companies and
business trusts.
"Coupon" or "coupon" means any interest coupon appertaining to a Bearer
Security.
"Debt" means indebtedness of the Company or any Consolidated Subsidiary
representing deposits and money borrowed (which term shall include evidences of
indebtedness representing extensions of credit whether or not representing
obligations for money borrowed), except indebtedness owed to the Company by any
Consolidated Subsidiary or owed to any Consolidated Subsidiary by the Company or
any other Consolidated Subsidiary, and shall include indebtedness of any other
person for money borrowed when such indebtedness is guaranteed by the Company or
any Consolidated Subsidiary. The term "Debt" shall be deemed to include the
liability of the Company or any Consolidated Subsidiary in respect of any
investment or similar certificate, except to the extent such certificates are
pledged by purchasers as collateral for, and are offset by, receivables.
"Defaulted Interest" has the meaning specified in Section 3.7.
"Depositary" means, with respect to the Securities of any series
issuable or issued in whole or in part in the form of one or more Global
Securities, the Person designated as Depositary by the Company pursuant to
Section 3.1 until a successor Depositary shall have become such pursuant to the
applicable provisions of this Indenture, and thereafter "Depositary" shall mean
or include each Person who is then a Depositary hereunder, and if at any time
there is more than one such Person, "Depositary" as used with respect to the
Securities of any such series shall mean the Depositary with respect to the
Securities of that series.
"Dollar" means the coin or currency of the United States of America as
at the time of payment is legal tender for the payment of public and private
debts.
"Euro-clear" means the operator of the Euro-clear System.
"Event of Default" has the meaning specified in Section 5.1.
"Exchange Date" has the meaning specified in Section 3.4.
"Global Security" or "global Security" means a Registered or Bearer
Security evidencing all or part of a series of Securities issued to the
Depositary for such series in accordance with Section 3.3.
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"Holder" or "holder" means, with respect to a Registered Security, the
Person in whose name at the time a particular Registered Security is registered
in the Security Register and, with respect to a Bearer Security and/or Coupon,
the bearer thereof.
"Indenture" means this instrument as originally executed or as it may
from time to time be supplemented or amended by one or more indentures
supplemental hereto entered into pursuant to the applicable provisions hereof,
including, for all purposes of this instrument and any such Supplemental
indenture, the provisions of the Trust Indenture Act that are deemed to be a
part of and govern this instrument and any such supplemental indenture,
respectively. The term "Indenture,, shall also include the terms of particular
series of Securities established as contemplated by Section 3.1.
"Interest", when used with respect to an Original Issue Discount
Security which by its terms bears interest only after Maturity, means interest
payable after Maturity.
"Interest Payment Date", when used with respect to any Security, means
the Stated Maturity of an installment of interest on such Security.
"Maturity", when used with respect to any Security consent or waiver
hereunder or whether a quorum is present at a meeting of Holders of Outstanding
Securities or the number of votes entitled to be cast by each Holder of a
Security in respect of such Security at any such meeting (i) the principal
amount of an Original Issue Discount Security that shall be deemed to be
Outstanding for such purposes shall be the amount of the principal thereof that
would be due and payable as of the date of such determination upon a declaration
of acceleration of the Maturity thereof pursuant to Section 5.2, and (ii)
Securities owned by the Company or any other obligor upon the Securities or any
Affiliate of the Company or of such other obligor shall be disregarded and
deemed not to be outstanding, except that, in determining whether the Trustee
shall be protected in relying upon any such request, demand, authorization,
direction, notice, consent or waiver, only Securities which the Trustee knows to
be so owned shall be so disregarded. Securities so owned which have been pledged
in good faith may be regarded as Outstanding if the pledgee establishes to the
satisfaction of the Trustee the pledgee's right so to act with respect to such
Securities and that the pledgee is not the Company or any other obligor upon the
Securities or any Affiliate of the Company or of such other obligor.
"Paying Agent" means any Person authorized by the Company to pay the
principal of (and premium, if any) or interest, if any, on any Securities on
behalf of the Company.
"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.
"Place of Payment", when used with respect to the Securities of any
series, means the place or places where the principal of (and premium, if any)
and interest, if any, on the Securities of that series are payable as specified
in accordance with Section 3.1.
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"Predecessor Security" of any particular Security means every previous
Security evidencing all or a portion of the same debt as that evidenced by such
particular Security; and, for the purposes of this definition, any Security
authenticated and delivered under Section 3.6 in exchange for or in lieu of a
mutilated, destroyed, lost or stolen Security shall be deemed to evidence the
same debt as the mutilated, destroyed, lost or stolen Security.
"Redemption Date", when used with respect to any Security to be
redeemed, means the date fixed for such redemption by or pursuant to this
Indenture.
"Redemption Price", when used with respect to any Security to be
redeemed, means the price at which it is to be redeemed pursuant to this
Indenture.
"Registered Security" means any Security in the form of a registered
security established pursuant to Section 3.1 which is registered in the Security
Register as to principal and any interest (including without limitation any
Security in temporary or definitive global registered form).
"Regular Record Date" for the interest payable on any Interest Payment
Date on the Registered Securities of any series means the date specified for
that purpose as contemplated by Section 3.1, which date shall be, unless
otherwise specified pursuant to Section 3.1, the fifteenth day preceding such
Interest Payment Date, whether or not such day shall be a Business Day.
"Responsible officer", when used with respect to the Trustee means any
vice president, the secretary, any trust officer 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 knowledge of and familiarity with the particular subject.
"Securities" has the meaning stated in the first recital of this
Indenture and more particularly means any Securities authenticated and delivered
under this Indenture.
"Security Register" and "Security Registrar" have the respective
meanings specified in Section 3.5.
"Special Record Date" for the payment of any Defaulted Interest means a
date fixed by the Trustee pursuant to Section 3.7.
"Stated Maturity", when used with respect to any Security (or upon, if
any, representing an installment of interest) or any installment of principal
thereof or interest thereon, means the date specified in such Security (or
Coupon) as the fixed date on which the principal of such Security or such
installment of principal or interest is due and payable.
"Subsidiary" means any corporation at least a majority of the
outstanding voting stock of which shall at the time be owned, directly or
indirectly, by the Company or by one or more Subsidiaries or by the Company and
one or more of the United States) of any corporation, means stock (or such
equivalent) of any class or classes, however designated, having ordinary voting
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<PAGE> 7
power for the election of at least a majority of the members of the board of
directors (or other governing body) of such corporation, other than stock (or
such equivalent) having such power only by reason of the happening of a
contingency.
"Trustee" means the Person named as the "Trustee" in the first paragraph
of this instrument until a successor Trustee shall have become such pursuant to
the applicable provisions of this Indenture, and thereafter "Trustee" shall mean
or include each Person who is then a Trustee hereunder, and if at any time there
is more than one such Person, "Trustee" as used with respect to the Securities
of any series shall mean the Trustee with respect to Securities of that series.
"Trust Indenture Act" means the Trust Indenture Act of 1939, as amended,
as in force at the date as of which this instrument was executed; provided,
however, that in the event the Trust Indenture Act of 1939 is amended after such
date, "Trust Indenture Act" means, to the extent required by any such amendment,
the Trust Indenture Act of 1939 as-so amended.
"Unconsolidated Subsidiary" means any subsidiary other than a
Consolidated Subsidiary.
"United States" means the United States of America (including the States
and the District of Columbia), its territories, its possessions, the
Commonwealth of Puerto Rico and other areas subject to its jurisdiction.
"Vice President", when used with respect to the Company or the Trustee,
means any vice president, whether or not designated by a number or a word or
words added before or after the title "vice president".
"Yield to Maturity", when used with respect to any Original Issue
Discount Security, means the annual yield to maturity, if any, set forth on the
face thereof.
1.2 COMPLIANCE CERTIFICATES AND OPINIONS. Upon any application or
request by the Company to the Trustee to take any action under any provision of
this Indenture, the Company shall furnish to the Trustee an Officers'
Certificate stating that all conditions precedent, if any, provided for in this
Indenture relating to the proposed action have been complied with and an Opinion
of Counsel stating that in the opinion of such counsel all such conditions
precedent, if any, have been complied with.
Every certificate or opinion with respect to compliance with a condition
or covenant provided for in this Indenture, except the certificate of
destruction pursuant to Section 3.9, shall include
(a) a statement that each individual signing such certificate
or opinion has read such covenant or condition and the definitions herein
relating thereto;
(b) a brief statement as to the nature and scope of the
examination or investigation upon which the statements or opinions contained in
such certificate or opinion are based;
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(c) a statement that, in the opinion of each such individual
he has made such examination or investigation as is necessary to enable him to
express an informed opinion as to whether or not such covenant or condition has
been complied with; and
(d) a statement as to whether, in the opinion of each such
individual, such condition or covenant has been complied with.
1.3 FORM OF DOCUMENTS DELIVERED TO TRUSTEE. In any case where several
matters are required to be certified by, or covered by an opinion of, any
specified Person, it is not necessary that all such matters be certified by, or
covered by the opinion of, only one such Person, or that they be so certified or
covered by only one document, but one such Person may certify or give an opinion
with respect to some matters and one or more other such Persons as to other
matters, and any such Person may certify or give an opinion as to such matters
in one or several documents.
Any certificate or opinion of an officer of the Company may be based,
insofar as it relates to legal matters, upon a certificate or opinion of, or
representations by, counsel, unless such officer knows, or in the exercise of
reasonable care should know, that the certificate or opinion or representations
with respect to the matters upon which his certificate or opinion is based are
erroneous. Any such certificate or opinion of Counsel may be based, insofar as
it relates to factual matters, upon a certificate or opinion of, or
representations by, an officer or officers of the Company stating that the
information with respect to such factual matters is in the possession of the
Company, unless such counsel knows, or in the exercise of reasonable care should
know, that the certificate or opinion or representations with respect to such
matters are erroneous.
Where any Person is required to make, give or execute two or more
applications, requests, consents, certificates, statements, opinions or other
instruments under this Indenture, they may, but need not, be consolidated and
form one instrument.
1.4 ACTS OF HOLDERS; RECORD DATES.
(a) Any request, demand, authorization, direction, notice,
consent, waiver or other action provided by this Indenture to be given or taken
by Holders may be embodied in and evidenced by one or more instruments of
substantially similar tenor signed by such Holders in person or by agent duly
appointed in writing. If Securities of a series are issuable as Bearer
Securities, any request, demand, authorization, direction, notice, consent,
waiver or other action provided by this Indenture to be given or taken by
Holders of such series may alternatively, be embodied in and evidenced by the
record of Holders of Securities of such series voting in favor thereof, either
in person or by proxies duly appointed in writing, at any meeting of Holders of
Securities of such series duly called and held in accordance with the provisions
of Article XIII, or a combination of such instruments and any such record.
Except as herein otherwise expressly provided, such action shall become
effective when such instrument or instruments are delivered to the Trustee and,
where it is hereby expressly required, to the Company. Such instrument or
instruments (and the action embodied therein and evidenced thereby) are HEREIN
sometimes referred to as the "Act" of the Holders signing such instrument or
instruments or so voting at any
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such meeting. Proof of execution of any such instrument or of a writing
appointing any such agent shall be sufficient for any purpose of this Indenture
and (subject to Section 6.1) conclusive in favor of the Trustee and the Company,
if made in the manner provided in this Section. The record of any meeting of
Holders of Securities shall be proved in the manner provided in Section 13.6.
(b) The fact and date of the execution by any Person of any
such instrument or writing may be proved by the affidavit of a witness of such
execution or by a certificate of a notary public or other officer authorized
bylaw to take acknowledgments of deeds, certifying that the individual signing
such instrument or writing acknowledged to him the execution thereof. Where such
execution is by a signer acting in a capacity other than his individual
capacity, such certificate or affidavit shall also constitute sufficient proof
of his authority. The fact and date of the execution of any such instrument or
writing, or the authority of the Person executing the same, may also be proved
in any other manner which the Trustee deems sufficient.
(c) The principal amount and serial numbers of Bearer
Securities held by any Person, and the date of holding the same, may be proved
by the production of such Bearer Securities or by certificate executed by any
trust company, bank, banker or other depositary, wherever situated, showing that
at the date therein mentioned such Person had on deposit with such depositary,
or exhibited to it, the Bearer Securities therein described; or such facts may
be proved by the certificates or affidavit of the Person holding such Bearer
Securities, if such certificate or affidavit is deemed by the Trustee to be
satisfactory. The Trustee and the Company may assume that such ownership of any
Bearer Security continues until (1) another certificate or affidavit bearing a
later date issued in respect of the same Bearer Security is produced, (2) such
Bearer Security is produced to the Trustee by some other Person, (3) such Bearer
Security is surrendered in exchange for a Registered Security or (4) such Bearer
Security is no longer Outstanding.
(d) The fact and date of execution of any such instrument or
writing pursuant to clause (c) above, the authority of the Person executing the
same and the principal amount and serial numbers of Bearer Securities held by
the Person so executing such instrument or writing and the date of holding the
same may also be proved in any other manner which the Trustee deems sufficient;
and the Trustee may in any instance require further proof with respect to any of
the matters referred to in this clause.
(e) The principal amount and serial numbers of Registered
Securities held by any Person and the date of holding the same shall be proved
by the Security Register.
(f) Any request, demand, authorization, direction, notice,
consent, waiver or other Act of a Holder shall bind every future Holder of the
same Security and/or Coupon and the Holder of every Security and/or Coupon
issued upon the registration of transfer thereof or in exchange therefor or in
lieu thereof in respect of anything done, omitted or suffered to be done by the
Trustee or the Company in reliance thereon, whether or not notation of such
action is made upon such Security and/or Coupon.
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(g) If the Company shall solicit from the Holders any request,
demand, authorization, direction, notice, consent, waiver or other Act, or in
the circumstances permitted by the Trust Indenture Act, the Company may, at its
option, by or pursuant to a Board Resolution, fix in advance a record date for
the determination of Holders entitled to give such request, demand,
authorization, direction, notice, consent, waiver or other Act, but the Company
shall have no obligation to do so. Where the Company does not fix a record date
prior to the first solicitation of a Holder made by any Person in respect of any
such Act, the record date for any such Act shall be the 30th day (or, if later,
the date of the most recent list of Holders required to be provided pursuant to
Section 7.1) prior to such first solicitation. With regard to any record date,
any request, demand, authorization, direction, notice, consent, waiver or other
Act may be given before or after such record date, but only the Holders of
record at the close of business on such record date shall be deemed to be
Holders for the purposes of determining whether Holders of the requisite
proportion of Outstanding Securities have authorized or agreed or consented to
such request, demand, authorization, direction, notice, consent, waiver or other
Act, and for that purpose the Outstanding Securities shall be computed as of
such record date; provided that- no such authorization, agreement or consent: by
the Holders on such record date shall be deemed effective unless it shall become
effective pursuant to the provisions of this Indenture not later than six months
after the record date.
1.5 NOTICES, ETC., TO TRUSTEE AND COMPANY. Any request, demand,
authorization, direction, notice, consent, waiver or Act of Holders or other
document provided or permitted by this Indenture to be made upon, given or
furnished to, or filed with,
(a) the Trustee by any Holder or by the Company shall be made,
given, furnished or filed in writing to or with the Trustee at its Corporate
Trust Office and unless otherwise herein expressly provided, any such document
shall be deemed to be sufficiently made, given, furnished or filed upon its
receipt by a Responsible Officer of the Trustee, or
(b) the company by the Trustee or by any Holder shall be
sufficient for every purpose hereunder (unless otherwise herein expressly
provided) if in writing and mailed, first-class postage prepaid, to the Company
addressed to it at the address of its principal office specified in the first
paragraph of this instrument or at any other address previously furnished in
writing to the Trustee by the Company, Attention: Secretary.
1.6 NOTICE TO HOLDERS; WAIVER. Where this Indenture provides for
notice to Holders of any event:
(a) if any of the Securities affected by such event are
Registered Securities, such notice shall be sufficiently given (unless otherwise
herein expressly provided) if in writing and mailed, first-class postage
prepaid, to each Holder affected by such event, at his address as it appears in
the Security Register, within the time prescribed for the giving of such notice,
and
(b) if any of the Securities affected by such event are Bearer
Securities, such notice shall be sufficiently given (unless otherwise herein
expressly provided or unless otherwise specified in such Securities) if
published once in an Authorized Newspaper in New York City
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and London and mailed to such Persons whose names and addresses were previously
filed with the Trustee, within the time prescribed for the giving of such
notice. In case by reason of the suspension of regular mail service or by reason
of any other cause it shall be impracticable to give such notice to Holders by
mail, then such notification as the Company shall direct the Trustee in writing
to give shall constitute a sufficient notification for every purpose hereunder.
In any case where notice to Holders is given by mail, neither the failure to
mail such notice, nor any defect in any notice so mailed, to any particular
Holder shall affect the sufficiency of such notice with respect to other
Holders.
In case by reason of the suspension of publication of any Authorized
Newspaper or Authorized Newspapers or by reason of any other cause it shall be
impracticable to publish any notice to Holders of Bearer Securities as provided
above, then such notification to Holders of Bearer Securities as the Company
shall direct the Trustee in writing to give shall constitute sufficient notice
to such Holders for every purpose hereunder. Neither the failure to give notice
by publication to Holders of Bearer Securities as provided above, nor any defect
in any notice so published, shall affect the sufficiency of any notice to
Holders of Registered Securities given as provided herein.
Where this Indenture provides for notice in any manner, such notice may
be waived in writing by the Person entitled to receive such notice, either
before or after the event, and such waiver shall be the equivalent of such
notice. Waivers of notice by Holders of Securities shall be filed with the
Trustee, but such filing shall not be a condition precedent to the validity of
any action taken in reliance upon such waiver.
1.7 CONFLICT WITH TRUST INDENTURE ACT. This Indenture is subject to,
and shall be governed by, the provisions of the Trust Indenture Act that are
required to be a part of this Indenture. If any provision hereof limits,
qualifies or conflicts with a provision of the Trust Indenture Act that is
required under such Act to be a part of and govern this Indenture, the latter
provision shall control. If any provision of this Indenture modifies or excludes
any provision of the Trust Indenture Act that may be so modified or excluded,
the latter provision shall be deemed to apply to this Indenture as so modified
or to be excluded, as the case may be.
1.8 EFFECT OF HEADINGS AND TABLE OF CONTENTS. The Article and Section
headings herein and the Table of Contents are for convenience only and shall not
affect the construction hereof.
1.9 SUCCESSORS AND ASSIGNS. All covenants and agreements in this
Indenture by the Company shall bind its successors and assigns, whether so
expressed or not.
1.10 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.
1.11 BENEFITS OF INDENTURE. Nothing in this Indenture or in the
Securities or Coupons, express or implied, shall give to any Person other than
the parties hereto and their successors
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hereunder and the Holders, any benefit or any legal or equitable right, remedy
or claim under this Indenture.
1.12 GOVERNING LAW. This Indenture and the Securities and Coupons
shall be governed by and construed in accordance with the laws of the State of
New York, without regard to conflicts of laws provisions thereof other than
Section 5-1401 of the New York General Obligations Law.
1.13 LEGAL HOLIDAYS. Except as otherwise specified as contemplated by
Section 3.1, in any case where any Interest Payment Date Redemption Date or
Stated Maturity of any Security shall not be a Business Day at any Place of
Payment, then (notwithstanding any other provision of this Indenture or of the
Securities or Coupons, if any) payment of interest or principal (and premium, if
any) need not be made at such Place of Payment on such date, but may be made on
the next succeeding Business Day at such Place of Payment with the same force
and effect as if made on the Interest Payment Date or Redemption Date, or at the
Stated Maturity, provided that no interest shall accrue for the period from and
after such Interest Payment Date, Redemption Date or Stated Maturity, as the
case may be, to the next succeeding Business Day at such Place of Payment.
1.14 LANGUAGE OF NOTICES, ETC. Any request, demand authorization,
direction, notice, consent or waiver required or permitted under this Indenture
shall be in the English language, except that any published notice may be in an
official language of the country of publication.
1.15 COUNTERPARTS. This Indenture may be executed in any number of
counterparts, each of which so executed shall be deemed to be an original, but
all such counterparts shall together constitute but one and the same instrument.
ARTICLE II
SECURITY FORMS
2.1 FORMS GENERALLY. The Securities of each series and the Coupons, if any,
to be attached thereto shall be in substantially the forms as shall be
established by or pursuant to a Board Resolution or in one or more indentures
supplemental hereto, in each case with such appropriate insertions, omissions,
substitutions and other variations as are required or permitted by this
Indenture, and may have such letters, numbers or other marks of identification
and such legends or endorsements placed thereon as may be required to comply
with the rules of any securities exchange or as may, consistently herewith, be
determined by the officers executing such Securities and Coupons, if any, as
evidenced by their execution of the Securities and Coupons, if any. If the form
of Securities of any series is established by or by action taken pursuant to a
Board Resolution, a copy of the Board Resolution together with an appropriate
record of any action taken pursuant thereto, which Board Resolution or record of
such action shall have attached thereto a true and correct copy of the forms of
Security approved by or pursuant to such Board Resolution, shall be certified by
the Secretary or an Assistant Secretary of the Company and delivered to the
Trustee at or prior to the delivery of the Company Order contemplated by Section
3.3 for the authentication and delivery of such Securities.
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The definitive Securities and Coupons, if any, shall be printed, typed,
lithographed or engraved on steel engraved borders or may be produced in any
other manner, all as determined by the officers executing such Securities and
Coupons, if any, as evidenced by their execution of such Securities and Coupons,
if any.
2.2 FORM OF TRUSTEE'S CERTIFICATE OF AUTHENTICATION. The Trustee's
certificate of authentication shall be in substantially the following form:
This is one of the Securities of the series designated and issued under
the within-mentioned Indenture.***
[full name of Trustee] as Trustee
By: ____________________________________
Authorized [Officer] [Signatory]
2.3 SECURITIES IN GLOBAL FORM. If Securities of a series are issuable
in global form, as specified as contemplated by Section 3.1 then,
notwithstanding clause (8) of Section 3.1 and the provisions of Section 3.2,
such Security shall represent such of the Outstanding Securities of such series
as shall be specified therein and may provide that it shall represent the
aggregate amount of Outstanding Securities from time to time endorsed thereon
and that the aggregate amount of Outstanding Securities represented thereby may
from time to time be reduced to reflect exchanges. Any endorsement of a Security
in global form to reflect the amount, or any increase or decrease in the amount,
of Outstanding Securities represented thereby shall be made by the Trustee in
such manner and upon instructions given by such Person or Persons as shall be
specified therein or in the Company Order to be delivered to the Trustee
pursuant to Section 3.3 or Section 3.4. Subject to the provisions of Section 3.3
and, if applicable, Section 3.4, the Trustee shall deliver and redeliver any
Security in definitive global bearer form in the manner and upon written
instructions given by the Person or Persons specified therein or in the
applicable Company order. If a Company Order pursuant to Section 3.3 or 3.4 has
been, or simultaneously is, delivered, any instructions by the Company with
respect to endorsement or delivery or redelivery of a Security in global form
shall be in writing but need not comply with Section 1.2 and need not be
accompanied by an Opinion of Counsel.
The provisions of the last sentence of the eighth paragraph of Section
3.3 shall apply to any Security represented by a Security in global form if such
Security was never issued and sold by the Company and the Company delivers to
the Trustee the Security in global form together with written instructions
(which need not comply with Section 1.2 and need not be accompanied by an
Opinion of Counsel) with regard to the reduction in the principal amount of
Securities represented thereby, together with the written statement contemplated
by the last sentence of the eighth paragraph of Section 3.3.
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Notwithstanding the provisions of Section 3.7, unless otherwise
specified as contemplated by Section 3.1, payment of principal of and any
premium and any interest on any Security in definitive global form shall be made
to the Person or Persons specified therein.
Notwithstanding the provisions of Section 3.6 and except as provided in
the preceding paragraph, the Company, the Trustee and any agent of the Company
and the Trustee shall treat a Person as the Holder of such principal amount of
outstanding Securities represented by a definitive global security as shall be
specified in a written statement of the Holder of such definitive global
Security or, in the case of a definitive global Security in bearer form, of
Euro-clear or CEDEL, S.A. which is produced to the Trustee by such Person.
ARTICLE III
The Securities
3.1 AMOUNT UNLIMITED; ISSUABLE IN SERIES. The aggregate principal amount of
Securities which may be authenticated and delivered under this Indenture is
unlimited.
The Securities may be issued from time to time in one or more series.
There shall be established in or pursuant to a Board Resolution, and set forth
in an Officers' Certificate, or established in one or more indentures
supplemental hereto, prior to the issuance of Securities of any series,
(a) the title of the Securities of the series (which shall
distinguish the Securities of the series from all other Securities);
(b) any limit upon the aggregate principal amount of the
Securities of the series which may be authenticated and delivered under this
Indenture (except for Securities authenticated and delivered upon registration
of transfer of, or in exchange for, or in lieu of other Securities of the series
pursuant to Section 3.4, 3.5, 3.6, 9.6 or 11.7 and except for any Securities
which, pursuant to Section 3.3, are deemed never to have been authenticated and
delivered hereunder);
(c) the date or date on which the principal of (and premium,
if any, on) any of the Securities of the series are payable or the method of
determination thereof and the amount or amounts of any installment of principal
payable on such dates;
(d) the rate or rates, or the method of determination thereof,
at which any of the Securities of the series shall bear interest, if any, the
date or dates from which such interest shall accrue, the Interest Payment Dates
on which such interest shall be payable and the Regular Record Date for the
interest payable on any Registered Securities on any Interest Payment Date;
(e) the place or places where the principal of (and premium,
if any) and interest, if any, on any of the Securities and Coupons, if any, of
the series shall be payable and the office or agency for the Securities of the
series maintained by the Company pursuant to Section 10.2;
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<PAGE> 15
(f) the period or periods within which, the price or prices at
which and the terms and conditions upon which any of the Securities and any
Coupons of the series may be redeemed, in whole or in part, at the option of the
Company;
(g) the terms of any sinking fund and the obligation, if any,
of the Company to redeem or purchase Securities of the series pursuant to any
sinking fund or analogous provisions or at the option of a Holder thereof and
the period or periods within which, the price or prices at which and the terms
and conditions upon which Securities of the series shall be redeemed or
purchased, in whole or in part, pursuant to such obligation;
(h) if other than denominations of $1,000, if registered, and
$5,000, if bearer, and any integral multiple of the applicable denominations,
the denominations in which the Securities of the series shall be issuable;
(i) if other than the principal amount thereof, the portion of
the principal amount of any of the Securities of the series which shall be
payable upon declaration of acceleration of the Maturity thereof pursuant to
Section 5.2;
(j) (the application, if any, of Section 4.3, or such other
means of satisfaction and discharge as may be specified for the Securities and
Coupons, if any, for a series;
(k) any deletions or modifications of or additions to the
Events of Default set forth in Section 5.1 or covenants of the Company set forth
in Article X pertaining to the Securities of the series;
(l) the forms of the Securities and Coupons, if any, of the
series;
(m) whether the Securities of the series are to be issued as
Registered Securities or Bearer Securities (with or without Coupons), or a
combination thereof, whether Bearer Securities may be exchanged for Registered
Securities of the series and whether Registered Securities may be exchanged for
Bearer Securities of the series (if permitted by applicable laws and
regulations) and the circumstances under which and the place or places where any
such exchanges, if permitted, may be made; and whether any Securities of the
series are to be issuable initially in temporary global form and whether any
Securities of the series are to be issuable in definitive global form with or
without Coupons and, it so, whether beneficial owners of interests in any such
definitive global Security -lay exchange such interests for Securities of such
series and of like tenor of any authorized form and denomination and the
circumstances under which and the place or places where any such exchanges may
occur, if other than in the manner provided in Section 3.5;
(n) if the Securities and Coupons, if any, of the series are
to be issued upon the exercise of warrants, the time, manner and place for
Securities to be authenticated and delivered;
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<PAGE> 16
(o) whether and under what circumstances and with what
procedures and documentation the Company will pay additional amounts on any of
the Securities and Coupons, if any, of the series to any Holder who is not a
United States person (including a definition of such term), in respect of any
tax, assessment or other governmental charge withheld or deducted from a payment
thereon and, if so, whether the Company will have the option to redeem such
Securities rather than pay additional amounts (and the terms of any such
option);
(p) the Person to whom any interest on any Registered Security
of the series shall be payable, if other than the Person in whose name that
Security (or one or more Predecessor Securities) is registered at the close of
business on the Regular Record Date for such interest, the manner in which, or
the Person to whom, any interest on any Bearer Security of the series shall be
payable, if otherwise than upon presentation and surrender of the Coupons
appertaining thereto as they severally mature and the extent to which, or the
manner in which, any interest payable on a temporary global Security on an
Interest Payment Date will be paid if other than in the manner provided in
Section 3.4.
(q) whether the Securities of the series shall be issued in
whole or in part in the form of one or more Global Securities and, in such case,
the Depositary for such Global Security or Securities; and
(r) any other terms of any of the Securities of the series
(which terms shall not be inconsistent with the provisions of this Indenture).
All Securities of any one series and the Coupons appertaining to any
Bearer Securities of such series shall be substantially identical except as to
denomination, the rate or rates of interest, if any, and the Maturity and except
as may otherwise be provided in or pursuant to the Board Resolution referred to
above and (subject to Section 3.3) set forth in the Officers, Certificate
referred to above or in any such indenture supplemental hereto.
The Securities shall be payable as to principal and interest, if any,
and any premium payable upon the redemption thereof in Dollars. At the option of
the Company, interest on the Registered Securities of any series that bears
interest may be paid by mailing a check to the address of any Holder as such
address shall appear in the Securities Register.
If any of the terms of the Securities of any series are established by
action taken pursuant to a Board Resolution, a copy of an appropriate record of
such action together with such Board Resolution shall be certified by the
Secretary or an Assistant Secretary of the Company and delivered to the Trustee
at or prior to the delivery of the Officers, Certificate setting forth the terms
of the Securities of such series.
3.2 DENOMINATIONS. The Securities of each series shall be issuable in
such denominations as shall be specified as contemplated by Section 3.1. In the
absence of any such provisions with respect to the Securities of any series, the
Securities of such series shall be issuable in denominations of $1,000, if
registered, and $5,000, if bearer, and in any integral multiple of the
applicable denominations. Securities of each series shall be numbered, lettered
or
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<PAGE> 17
otherwise distinguished in such manner or in accordance with such plan as the
officers of the Company executing the same may determine with the approval of
the Trustee.
3.3 EXECUTION, AUTHENTICATION, DELIVERY AND DATING. The Securities
shall be executed in the name and on behalf of the Company by manual or
facsimile signatures of its Chairman of the Board, it President or any of its
Vice Presidents, under its corporate seal reproduced thereon attested by the
manual or facsimile signature of its Secretary or one of its Assistant
Secretaries. Any Coupons shall be executed on behalf of the Company by the
manual or facsimile signature of any such officer of the Company.
Securities and Coupons bearing the manual or facsimile signatures of
individuals who were at any time the proper officers of the Company shall bind
the Company, notwithstanding that such individuals or any of them have ceased to
hold such offices prior to the authentication and delivery of such Securities or
did not hold such offices at the date of such Securities.
At any time and from time to time after the execution and delivery of
this Indenture, the Company may deliver Securities of any series, together with
any Coupons appertaining thereto, executed by the Company to the Trustee for
authentication, together with a Company Order for the authentication and
delivery of such Securities, and the Trustee in accordance with the Company
Order shall authenticate and deliver such Securities; provided, however, that,
in connection with the sale of a Bearer Security during the "restricted period"
as defined in United States Treasury regulation Section 1.163-5(c)(2)(i)(D)(7),
no Bearer Security shall be mailed or otherwise delivered to any location in the
United States; and provided, further, that a definitive Bearer Security sold
during the restricted period may be delivered only outside the United States and
only if the Person entitled to receive such definitive Bearer Security shall
have furnished a certificate in the form set forth in Exhibit A.1 to this
Indenture, dated no earlier than 15 days prior to the earlier of the date on
which such definitive Bearer Security is delivered and the date on which any
temporary bearer Global Security first becomes exchangeable for such definitive
Bearer Security in accordance with the terms of such temporary Security and this
- - Indenture. Except as permitted by Section 3.6, the Trustee shall not
authenticate and deliver any Bearer Security unless all appurtenant Coupons for
interest then matured have been detached and canceled.
If all the Securities of a series are not to be originally issued at one
time, and if the Board Resolution, Officers' Certificate or supplemental
indenture establishing such series shall so permit, such Company Order may set
forth procedures acceptable to the Trustee for the issuance of such Securities
and the determination of the terms of particular Securities of such series such
as interest rate or rates (or the method in which such rate or rates are to be
determined) , if any, Stated maturity, date of issuance and date from which
interest, if any, shall accrue.
If the forms or terms of the Securities of the series and any related
Coupons have been established by or pursuant to one or more Board Resolutions as
permitted by Sections 2.1 and 3.1, in authenticating such Securities, and
accepting the additional responsibilities under this Indenture in relation to
such Securities, the Trustee shall be entitled to receive, and (subject to
Section 6.1) shall be fully protected in relying upon, an Opinion of Counsel
stating:
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(a) if the forms of such Securities and any Coupons have been
established by or pursuant to a Board Resolution as permitted by Section 2.1,
that such forms have been established in conformity with the provisions of this
indenture; and
(b) if the terms of such Securities and any Coupons have been
established by or pursuant to a Board Resolution as permitted by Section 3.1,
that such terms have been established in conformity with the provisions of this
Indenture.
Notwithstanding the provisions of Section 3.1 and of the preceding
paragraph, if all Securities of a series are not to be originally issued at one
time, it shall not be necessary to deliver the Officers' Certificate otherwise
required pursuant to Section 3.1 or the Company Order and opinion of Counsel
otherwise required pursuant to such preceding paragraph at or prior to the time
of authentication of each Security of such series if such documents are
delivered at or prior to the authentication upon original issuance of the first
Security of such series to be issued.
Each Registered Security shall be dated the date of its authentication;
and each Bearer Security and any Bearer Security in global form shall be dated
as of the date of original issuance of the first Security of such series to be
issued.
No Security or Coupon shall be entitled to any benefit under this
Indenture or be valid or obligatory for any purpose unless there appears on such
Security a certificate of authentication substantially in the form provided for
herein executed by the Trustee by manual signature, and such certificate upon
any Security shall be conclusive evidence, and the only evidence, that such
Security has been duly authenticated and delivered hereunder. Notwithstanding
the foregoing, if any Security shall have been duly authenticated and delivered
hereunder but never issued and sold by the Company, and the Company shall
deliver such Security to the Trustee for cancellation as provided in Section 3.9
together with a written statement (which need not comply with Section 1.2 and
need not be accompanied by an Opinion of Counsel) stating that such Security has
never been issued and sold by the Company, for all purposes of this Indenture
such Security shall be deemed never to have been authenticated and delivered
hereunder and shall never be entitled to the benefits of this Indenture.
If the Company shall establish pursuant to Section 3.1 that the
Securities of a series are to be issued in whole or in part in the form of a
Global Security, then the Company shall execute and the Trustee shall in
accordance with this Section and the Company order with respect to such series
authenticate and deliver the Global Security that (i) shall represent and shall
be denominated in an aggregate amount equal to the aggregate principal amount of
Outstanding Securities of such series to be represented by the Global Security,
(ii) shall be registered, if in registered form, in the name of the Depositary
for such Global Security or the nominee of such Depositary, (iii) shall be
delivered by the Trustee to such Depositary or pursuant to such Depositary's
instruction, and (iv) shall bear a legend substantially to the following effect:
"Unless and until this Security is exchanged in whole or in part for Securities
in definitive form, this Security may not be transferred except as a whole by
the Depositary to a nominee of the Depositary or by a nominee of the Depositary
to the Depositary or another nominee of the
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<PAGE> 19
Depositary or by the Depositary or any such nominee to a successor Depositary or
a nominee of such successor Depositary" or to such other effect as the
Depositary and the Trustee may agree.
Each Depositary designated pursuant to Section 3.1 for a Global Security
in registered form must, at the time of its designation and at all times while
it serves as Depositary, be a clearing agency registered under the Securities
Exchange Act of 1934 and any other applicable statute or regulation. The Trustee
shall have no responsibility to determine if the Depositary is so registered.
3.4 TEMPORARY SECURITIES. Pending the preparation of definitive
Securities of any series, the Company may execute, and upon Company Order the
Trustee shall authenticate and deliver, temporary Securities which are printed,
lithographed, typewritten, mimeographed or otherwise produced, in any authorized
denomination, substantially of the tenor of the definitive Securities in lieu of
which they are issued, (i) in registered form or (ii) in bearer form, with one
or more Coupons or without Coupons, and with such appropriate insertions,
omissions, substitutions and other variations as the officers executing such
Securities may determine, as evidenced conclusively by their execution of such
Securities. Such temporary Securities may be (in the case of Registered
Securities) and shall be (in the case of Bearer Securities) in global form.
Except in the case of temporary Global Securities in bearer form (which
are exchangeable for definitive Bearer Securities in accordance with the
provisions of the following paragraphs), if temporary Securities of any series
are issued, the Company will cause definitive Securities of that series to be
prepared without unreasonable delay. After the preparation of definitive
Securities of such series, the temporary Securities of such series shall be
exchangeable for definitive Securities of such series upon surrender of the
temporary Securities of such series at the office of agency of the Company
maintained pursuant to Section 10.2 in a Place of Payment for such series for
the purpose of exchanges of Securities of such series, without charge to the
Holder. Upon surrender for cancellation of any one or more temporary Securities
of any series (accompanied by any unmatured Coupons appertaining thereto) the
Company shall execute and the Trustee shall authenticate and deliver in exchange
therefor a like aggregate principal amount of definitive Securities of the same
series and of like tenor and authorized denominations; provided, however, that
no definitive Bearer Security shall be delivered in exchange for a temporary
Registered Security; and provided, further, that a definitive Bearer Security
(including a definitive Bearer Security in global form) shall be delivered in
exchange for a temporary Bearer Security only in compliance with the conditions
set forth in Section 3.3.
If temporary Global Securities in bearer form of any series are issued,
any such temporary global Securities in bearer form shall, unless otherwise
provided therein, be delivered to the London office of a Depositary (the "Common
Depositary"), for the benefit of Euro-clear and CEDEL, S.A., for credit to the
respective accounts of the beneficial owners of such Securities (or to such
other accounts as they may direct).
Without unnecessary delay but in any event not later than the date
specified in, or determined pursuant to the terms of, any such temporary global
Security in bearer form (the
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<PAGE> 20
"Exchange Date"), the Company shall deliver to the Trustee definitive
Securities, in aggregate principal amount equal to the principal amount of such
temporary global Security in bearer form, executed by the Company. On or after
the Exchange Date, such temporary global Security in bearer form shall be
surrendered by the Common Depositary to the Trustee, as the Company's agent for
such purpose, to be exchanged, in whole or from time to time in part, for
definitive Securities without charge and the Trustee shall authenticate and
deliver, in exchange for each portion of such temporary global Security in
bearer form, an equal aggregate principal amount of definitive Securities of the
same series of authorized denominations and of like tenor as the portion of such
temporary global Security in bearer form to be exchanged. The definitive
Securities to be delivered in exchange for any such temporary global Security in
bearer form shall be in bearer form, registered form, definitive global form
(registered or bearer), or a combination thereof, as specified as contemplated
by Section 3.1, and, if a combination thereof is so specified, as requested by
the beneficial owner thereof; provided, however, that, unless otherwise
specified in such temporary global Security in bearer form, upon such
presentation by the Common Depositary, such temporary global Security in bearer
form shall be accompanied by a certificate dated the Exchange Date or a
subsequent date and signed by Euro-clear as to the portion of such temporary
global Security in bearer form held for its account then to be exchanged and a
certificate dated the Exchange Date or a subsequent date and signed by CEDEL,
S.A. as to the portion of such temporary global Security in bearer form held for
its account then to be exchanged, each in the form set forth in Exhibit A.2 to
this Indenture; and provided, further, that definitive Bearer Securities shall
be delivered in exchange for a portion of a temporary global Security in bearer
form only in compliance with the requirements of Section 3.3.
Unless otherwise specified in such temporary global Security in bearer
form, the interest of a beneficial owner of Securities of a series in a
temporary global Security in bearer form shall be exchanged for definitive
Securities of the same series and of like tenor following the Exchange Date when
the beneficial owner instructs Euro-clear or CEDEL, S.A., as the case may be, to
request such exchange on his behalf and delivers to Euro-clear or CEDEL, S.A.,
as the case may be, a certificate in the form set forth in Exhibit A.1 of this
Indenture, dated no earlier than 15 days prior to the Exchange Date, copies of
which certificate shall be available from the offices of Euro-clear, CEDEL,
S.A., the Trustee, any Authenticating Agent appointed for such series of
Securities and any Paying Agent appointed for such series of Securities. Unless
otherwise specified in such temporary global Security in bearer form, any such
exchange shall be made free of charge to the beneficial owners of such temporary
global Security in bearer form, except that a Person receiving definitive
Securities must bear the cost of insurance, postage, transportation and the like
in the event that such Person does not take delivery of such definitive
Securities in person at the offices of Euro-clear or CEDEL, S.A. The definitive
Securities in bearer form to be delivered in exchange for any portion of a
temporary global Security in bearer form shall be delivered only outside the
United States.
Until exchanged in full as hereinabove provided, the temporary
Securities of any series shall in all respects be entitled to the same benefits
under this Indenture as definitive Securities of the same series and of like
tenor authenticated and delivered hereunder, except that, unless otherwise
specified as contemplated by Section 3.1, interest payable on a temporary global
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Security in bearer form on an Interest Payment Date for Securities of such
series occurring prior to the applicable Exchange Date shall be payable to
Euro-clear and CEDEL, S.A. on such Interest Payment Date upon delivery by
Euro-clear and CEDEL S.A. to the Trustee of a certificate or certificates in the
form set forth in Exhibit A.2 to this Indenture, for credit without further
interest on or after such Interest Payment Date to the respective accounts of
the Persons who are the beneficial owners of such temporary global Security in
bearer form (or to such other accounts as they may direct) on such Interest
Payment Date and, who have each delivered to Euro-Clear or CEDEL, S.A., as the
case may, be a certificate in the form set forth Exhibit A.1 to this Indenture.
Any interest so received by Euro-Clear and CEDEL, S.A. and not: paid as herein
provided shall be returned to the Trustee immediately prior to the expiration of
two years after such Interest Payment Date in order to be repaid to the Company
in accordance with Section 10.3.
3.5 REGISTRATION, REGISTRATION OF TRANSFER AND EXCHANGE. The Company
shall cause to be kept at an office or agency to be maintained by the Company in
accordance with Section 10.2 a register (being the combined register of the
Security Registrar and all transfer agents designated pursuant to Section 10.2
for the purpose of registration of transfer of Securities and sometimes
collectively referred to as the "Security Register") in which, subject to such
reasonable regulations as it may prescribe, the Company shall provide for the
registration of Registered Securities and the registration of transfers of
Registered Securities. The Trustee is hereby appointed "Security Registrar" for
the purpose of registering Registered Securities and transfers of Registered
Securities as herein provided.
Upon surrender for registration of transfer of any Registered Security
of any series at the office or agency of the Company maintained pursuant to
Section 10.2 for such purpose in a Place of Payment for such series, the Company
shall execute, and the Trustee shall authenticate and deliver, in the name of
the designated transferee or transferees, one or more new Registered Securities
of the same series of any authorized denominations and of a like aggregate
principal amount and tenor.
At the option of the Holder, Registered Securities of any series (except
a Global Security representing all or a portion of the Securities of such
series) may be exchanged for other Registered Securities of the same series of
any authorized denominations and of a like aggregate principal amount and tenor,
upon surrender of the Registered Securities to be exchanged at any such office
or agency. Whenever any Registered Securities are so surrendered for exchange,
the Company shall execute, and the Trustee shall authenticate and deliver, the
Registered Securities which the Holder making the exchange is entitled to
receive. Bearer Securities may not be issued in exchange for Registered
Securities.
The Company may establish pursuant to Section 3.1 that, at the option of
the Holder (subject to Section 3.3), Bearer Securities of any series may be
exchanged for Registered Securities of the same series of any authorized
denominations and of a like aggregate principal amount and tenor, upon surrender
of the Bearer Securities to be exchanged at any such office or agency, with all
unmatured Coupons and all matured Coupons in default thereto appertaining. If
the Holder of a Bearer Security is unable to produce any such unmatured Coupon
or Coupons or
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<PAGE> 22
matured Coupon or Coupons in default, such exchange may be effected if the
Bearer Securities are accompanied by payment in funds acceptable to the Company
in an amount equal to the face amount of such missing Coupon or Coupons, or the
surrender of such missing Coupon or Coupons may be waived by the Company and the
Trustee if there if there is furnished to each of them such security or
indemnity as each may require to save each of them and any Paying Agent
harmless. If thereafter the Holder of such Security shall surrender to any
Paying Agent any such missing Coupon in respect of which such a payment shall
have been made, such Holder shall be entitled to receive the amount of such
payment; provided, however, that, except as otherwise provided in Section 10.2,
interest represented by Coupons shall be payable only upon presentation and
surrender of those Coupons at an office or agency located outside the United
States. Notwithstanding the foregoing, in case a Bearer Security of any series
is surrendered at any such office or agency in exchange for a Registered
Security of the same series and like tenor after the close of Business at such
office or agency on (i) any Regular Record Date and before the opening of
business at such office or agency on the relevant Interest Payment Date, or (ii)
any Special Record Date and before the opening of business at such office or
agency on the related proposed date for payment of Defaulted Interest, such
Bearer Security shall be surrendered without the Coupon relating to such
Interest Payment Date or proposed date for payment, as the case may be, and
interest or Defaulted Interest, as the case may be, will not be payable on such
Interest Payment Date or proposed date for payment, as the case may be, in
respect of the Registered Security issued in exchange for such Bearer Security,
but will be payable only to the Holder of such Coupon when due in accordance
with the provisions of this Indenture.
Whenever any Securities are so surrendered for exchange, the Company
shall execute, and the Trustee shall authenticate and deliver, the Securities
which the Holder making the exchange is entitled to receive.
Notwithstanding the foregoing, except as otherwise specified as
contemplated by Section 3.1, any definitive global Bearer Security shall be
exchangeable only as provided in this paragraph. If the beneficial owners of
interests in a definitive global Bearer Security are entitled to exchange such
interests for Securities of such series and of like tenor and principal amount
of another authorized form and denomination, as specified as contemplated by
Section 3.1, then without unnecessary delay but in any event not later than the
earliest date on which such interests may be so exchanged, the Company shall
deliver to the Trustee definitive Securities in aggregate principal amount equal
to the principal amount of such definitive global Bearer Security, executed by
the Company. On or after the earliest date on which such interests may be so
exchanged, such definitive global Bearer Security shall be surrendered by the
Common Depositary or such or other depositary or Common Depositary as shall be
specified in the Company Order with respect thereto to the Trustee, as the
Company's agent for such purpose, to be exchanged in whole or from time to time
in part, for definitive Securities without charge and the Trustee shall
authenticate and deliver, in exchange for each portion of such definitive global
Bearer Security, an equal aggregate principal amount of definitive Securities of
the same series of authorized denominations and of like tenor as the portion of
such definitive global Bearer Security to be exchanged which, unless the
Securities of the series are not issuable both as Bearer Securities and as
Registered Securities, as specified as contemplated by Section 3.1, shall be in
the form of Bearer Securities or Registered Securities or any combination
thereof, as shall be
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specified by the beneficial owner thereof; provided, however, that no such
exchanges may occur during a period beginning at the opening of business 15 days
before any selection of Securities of that series to be redeemed and ending on
the relevant Redemption Date; and provided, further, that no Bearer Security
delivered in exchange for a portion of a definitive global Security shall be
mailed or otherwise delivered to any location in the United States. If a
Registered Security is issued in exchange for any portion of a definitive global
Bearer Security after the close of business at the office or agency where such
exchange occurs on (i) any Regular Record Date and before the opening of
business at such office or agency on the relevant Interest Payment Date, or (ii)
any Special Record Date and before the opening of business at such office or
agency on the related proposed date for payment of Defaulted Interest, interest
or Defaulted Interest, as the case maybe, will not be payable on such Interest
Payment Date or proposed date for payment, as the case may be, in respect of
such Registered Security, but will be payable on such Interest Payment Date or
proposed date for payment, as the case may be, only to the Person to whom
interest in respect of such portion of such definitive global Bearer Security is
payable in accordance with the provisions of this Indenture.
All Securities issued upon any registration of transfer or exchange of
Securities shall be the valid obligations of the Company, evidencing the same
debt, and entitled to the same benefits under this Indenture, as the Securities
surrendered upon such registration of transfer or exchange.
Every Registered Security presented or surrendered for registration of
transfer or for exchange shall (if so required by the Company or the Trustee or
any transfer agent) be duly endorsed, or be accompanied by a written instrument
of transfer in form satisfactory to the Company and the Security Registrar or
any transfer agent duly executed, by the Holder thereof or his attorney duly
authorized in writing.
No service charge shall be made for any registration of transfer or
exchange of Securities, but the Company may require payment of a sum sufficient
to cover any tax or other governmental charge that may be imposed in connection
with any registration of transfer or exchange of Securities, other than
exchanges pursuant to Section 3.4, 9.6 or 1107 not involving any transfer.
The Company shall not be required (i) to issue, register the transfer of
or exchange Securities of any series during a period beginning at the opening of
business 15 days before any selection of Securities of that series to be
redeemed and ending at the close of business on (A) if Securities of the series
are issuable only as Registered Securities, the day of the mailing of the
relevant notice of redemption and (B) if Securities of the series are issuable
as Bearer Securities, the day of the first publication of the relevant notice of
redemption or, if Securities of the series are also issuable as Registered
Securities and there is no publication, the mailing of the relevant notice of
redemption, or (ii) to register the transfer of or exchange any Registered
Security so selected for redemption, in whole or in part, except the unredeemed
portion of any Security being redeemed in part, or (iii) to exchange any Bearer
Security so selected for redemption except that such a Bearer Security may be
exchanged for a Registered Security of that series and like tenor; provided,
that such Registered Security shall be simultaneously surrendered for
redemption.
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If at any time the Depositary for the Securities .of a series notifies
the Company that it is unwilling or unable to continue as Depositary for the
Securities of such series or if at any time the Depositary for the Securities of
such series shall no longer be eligible under Section 3.3, the Company shall
appoint a successor Depositary with respect to the Securities of such series. If
a successor Depositary for the Securities of such series is not appointed by the
Company within 90 days after the Company receives such notice or becomes aware
of such ineligibility, the Company's election pursuant to Section 3.1 shall no
longer be effective with respect to the securities of such series and the
Company will execute, and the Trustee, upon receipt of a Company Order for the
authentication and delivery of definitive Securities of such series, will
authenticate and deliver, Securities of such series in definitive form in an
aggregate principal amount equal to the principal amount of the Global Security
representing such series in exchange for such Global Security.
If specified by the Company pursuant to Section 3.1 with respect to a
series of Securities, the Company may at any time and in its sole discretion
determine that the Securities of any series issued in the form of one or more
Global Securities shall no longer be represented by such Global Security or
Securities. In such event the Company will execute, and the Trustee, upon
receipt of a Company Order for the authentication and delivery of definitive
Securities of such series, will authenticate and deliver Securities of such
series in definitive form and in an aggregate principal amount equal to the
principal amount of the Global Security or Securities representing such series
in exchange for such Global Security or Securities.
If specified by the Company pursuant to Section 3.1 with respect to a
series of Securities, the Depositary for such series of Securities may surrender
a Global Security for such series of Securities in exchange in whole or in part
for Securities of such series in definitive form on such terms as are acceptable
to the Company and such Depositary; provided, however, that no portion of a
Global Security in registered form may be surrendered in exchange for Securities
in bearer form. Thereupon, the Company shall execute; and the Trustee, upon
receipt of a Company Order for the authentication and delivery of definitive
Securities of such series, shall authenticate and deliver, without charge to the
Holders,
(i) to each Person specified by such Depositary a new
Security or Securities of the series of any authorized denomination as requested
by such Person in aggregate principal amount equal to and in exchange for such
Person's beneficial interest in the Global Security; and
(ii) to such Depositary a new Global Security in a
denomination equal to the difference, if any, between the principal amount of
the surrendered, Global Security and the aggregate principal amount of
Securities delivered to Holders thereof.
In any exchange provided for in any of the preceding three paragraphs,
the Company will execute and the Trustee will authenticate and deliver
Securities (a) in definitive registered form in authorized denominations, if the
Securities of such series are issuable as Registered Securities, (b) in
definitive bearer form in authorized denominations, with coupons attached, if
the Securities of such series are issuable as Bearer Securities or (c) as either
Registered or Bearer
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Securities, if the Securities of such series are issuable in either form;
provided, however, that a Bearer Security may not be delivered in exchange for a
Registered Security, and provided, further, that a definitive Bearer Security
shall be delivered in exchange for a temporary Global Security in bearer form
only in compliance with the conditions set forth in Section 3.3 and provided,
further, that delivery of a Bearer Security shall be made only outside the
United States.
Upon the exchange of a Global Security for Securities in definitive
form, such Global Security shall be canceled by the Trustee, Registered
Securities issued in exchange for a Global Security pursuant to this Section
shall be registered in such names and in such authorized denominations as the
Depositary for such Global Security, pursuant to instructions from its direct or
indirect participants or otherwise, shall instruct the Trustee in writing. The
Trustee shall deliver such Registered Securities to the persons in whose names
such Securities are so registered.
Notwithstanding any other provisions of this Section to the contrary,
unless and until a Global Security is exchanged in whole for Securities in
definitive form, a Global Security representing all or a portion of the
Securities of a series may not be transferred except as a whole by the
Depositary for such series to a nominee of such Depositary or by a nominee of
such Depositary to such Depositary or another nominee of such Depositary or by
such Depositary or any such nominee to a successor Depositary for such series or
a nominee of such successor Depositary.
3.6 MUTILATED, DESTROYED, LOST AND STOLEN SECURITIES. If any
mutilated Security or Security with a mutilated Coupon appertaining to it is
surrendered to the Trustee, the Company shall execute and the Trustee shall
authenticate and deliver in exchange therefor a new Security of the same series
and of like tenor and principal amount and bearing a number not
contemporaneously outstanding with Coupons corresponding to the Coupons, if any,
appertaining to the surrendered Security.
If there shall be delivered to the Company and the Trustee (i)evidence
to each of their satisfaction of the destruction, loss or theft of any Security
or Coupon and (ii) such security or indemnity as may be required by each of them
to save each of them and any agent of either of them harmless, then, in the
absence of notice to the Company or the Trustee that such Security or Coupon has
been acquired by a bona fide purchaser, the Company shall execute and the
Trustee shall authenticate and deliver, in lieu of any such destroyed, lost or
stolen Security or in exchange for the Security to which a destroyed, lost or
stolen Coupon appertains (upon surrender to the Trustee of such Security with
all appurtenant Coupons not destroyed, lost or stolen), a new Security of the
same series and of like tenor and principal amount and bearing a number not
contemporaneously outstanding, with Coupons corresponding to the Coupons, it
any, appertaining to such destroyed, lost or stolen Security or to the Security
to which such destroyed, lost or stolen Coupon appertains.
In case any such mutilated, destroyed, lost or stolen Security or Coupon
has become or is about to become due and payable, the Company in its discretion
may, instead of issuing a new Security or Coupon, pay such Security or Coupon;
provided, however, that principal of (and
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premium, if any) and any interest on Bearer Securities shall, except as
otherwise provided in Section 10.2, be payable only at an office or agency
located outside the United States and, unless otherwise specified as
contemplated by Section 3.1, any interest on Bearer Securities shall be payable
only upon presentation and surrender of the Coupons appertaining thereto.
Upon the issuance of any new Security or Coupon 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) connected therewith.
Every new Security or Coupon of any series issued pursuant to this
Section in lieu of any mutilated, destroyed, lost or stolen Security or Coupon
shall constitute an original additional contractual obligation of the Company,
whether or not the mutilated, destroyed, lost or stolen Security shall be at any
time enforceable by anyone, and shall be entitled to all the benefits of this
Indenture equally and proportionately with any and all other Securities or
Coupons of that series duly issued hereunder.
The provisions of this Section are exclusive and shall preclude (to the
extent lawful) all other rights and remedies with respect to the replacement or
payment of mutilated, destroyed, lost or stolen Securities or Coupons.
3.7 PAYMENT OF INTEREST; INTEREST RIGHTS PRESERVED. Unless otherwise
provided as contemplated by Section 3.1 with respect to any series of
Securities, interest on any Registered Security which is payable, and is
punctually paid or duly provided for, on any Interest Payment Date shall be paid
to the Person in whose name that Security (or one or more Predecessor
Securities) is registered at the close of business on the Regular Record Date
for such interest.
Any interest on any Registered Security of any series which is payable,
but is not punctually paid or duly provided for, on any Interest Payment Date
(herein called "Defaulted Interest") shall forthwith cease to be payable to the
Holder on the relevant Regular Record Date by virtue of having been such Holder,
and such Defaulted Interest may be paid by the Company, at its election in each
case, as provided in Clause (1) or (2) below:
(a) The Company may elect to make payment of any Defaulted
Interest to the Persons in whose names the Registered Securities of such series
(or their respective Predecessor Securities) are registered at the close of
business on a Special Record Date for the payment of such Defaulted Interest,
which shall be fixed in the following manner. The Company shall notify the
Trustee in writing of the amount of Defaulted Interest proposed to be paid on
each Security of such series and the date of the proposed payment, and at the
same time the Company shall deposit with the Trustee an amount of money equal to
the aggregate amount proposed to be paid in respect of such Defaulted Interest
or shall make arrangements satisfactory to the Trustee for such deposit prior to
the date of the proposed payment, such money when deposited to be held in trust
for the benefit of the Persons entitled to such Defaulted Interest as in this
Clause provided. Thereupon the Trustee shall fix a Special Record Date for the
payment of such Defaulted Interest which shall not all be more than 10 days and
not less than 10 days prior to the date of the
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proposed payment and not less than 10 days after the receipt by the Trustee of
the notice of the proposed payment. The Trustee shall promptly notify the
Company of such Special Record Date and, in the name and at the expense of the
Company, shall cause notice of the proposed payment of such Defaulted Interest
and the Special Record Date therefor to be mailed, first-class postage prepaid,
to each Holder of Securities of such series at his address as it appears in the
Security Register, not less than 10 days prior to such Special Record Date.
Notice of the proposed payment of such Defaulted Interest and the Special Record
Date therefor having been so mailed, such Defaulted Interest shall be paid to
the Persons in whose names the Securities of such series (or their respective
Predecessor Securities) are registered at the close of business on such Special
Record Date and shall no longer be payable pursuant to the following Clause (2).
(b) The Company may make payment of any Defaulted Interest on
the Registered Securities of any series in any other lawful manner not
inconsistent with the requirements of any securities exchange on which such
Securities may be listed, and upon such notice as may be required by such
exchange, if, after notice given by the Company to the Trustee of the proposed
payment pursuant to this Clause, such manner of payment shall be deemed
practicable by the Trustee.
Subject to the foregoing provisions of this Section and Section 3.5,
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, and, subject as aforesaid, each such Security shall be so dated, or
have attached thereto such Coupons, that neither gain nor loss in interest shall
result from such transfer, exchange or substitution.
3.8 PERSONS DEEMED OWNERS. Prior to due presentment of a Registered
Security for registration of transfer, the Company, the Trustee and any agent of
the Company or the Trustee may treat the Person in whose name such Registered
Security is registered as the owner of such Registered Security for the purpose
of receiving payment of principal of (and premium, if any) and (subject to
Sections 3.5 and 3.) any interest on such Security, and for all other purposes
whatsoever, whether or not such Security be overdue, and neither the Company,
the Trustee nor any agent of the Company or the Trustee shall be affected by
notice to the contrary.
Title to any Bearer Security and any Coupons appertaining thereto shall
pass by delivery. The Company, the Trustee and any agent of the Company or the
Trustee may treat the Holder of any Bearer Security and the Holder of any Coupon
as the absolute owner of such Security or Coupon for the purpose of receiving
payment thereof or on account thereof and for all other purposes whatsoever,
whether or not such Security or Coupon be overdue, and neither the Company, the
Trustee nor any agent of the Company or the Trustee shall be affected by notice
to the contrary.
Notwithstanding the foregoing, with respect to any Global Security,
nothing herein shall 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 any Depositary, as a
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Holder, with respect to such Global Security or impair, as between such
Depositary and owners of beneficial interests in such Global Security, the
operation of customary practices governing the exercise of the rights of such
Depositary (or its nominee) as Holder of such Global Security. Neither the
Company, the Trustee, nor any agent of the Company or, the Trustee, will have
any responsibility or liability for any aspects of the records relating to or
payments made on account of beneficial ownership interests in a Global Security
or for maintaining, supervising or reviewing any records relating to such
beneficial ownership interests.
3.9 CANCELLATION. All Securities and Coupons surrendered for payment,
redemption, registration of transfer or exchange or for credit against any
sinking fund payment shall, if surrendered to any Person other than the Trustee,
be delivered to the Trustee. All such Securities and Coupons so delivered, and
all such Securities and Coupons so surrendered to the Trustee, shall be promptly
canceled by the Trustee. All Bearer Securities and unmatured Coupons held by the
Trustee pending such cancellation shall be deemed to be delivered for
cancellation for all purposes of this Indenture and the Securities. The Company
may at any time deliver to the Trustee for cancellation any Securities
previously authenticated and delivered hereunder which the Company may have
acquired in any manner whatsoever, and may deliver to the Trustee (or to any
other Person for delivery to the Trustee) for cancellation any Securities
previously authenticated hereunder which the Company has not issued and sold,
and all Securities so delivered shall be promptly canceled by the Trustee. No
Securities shall be authenticated in lieu of or in exchange for any Securities
canceled as provided in this Section, except as expressly permitted by this
Indenture. All canceled Securities and Coupons held by the Trustee shall be
disposed of in a manner selected by the Trustee and the Trustee shall deliver a
certificate evidencing such destruction to the Company.
3.10 COMPUTATION OF INTEREST. Except as otherwise specified as
contemplated by Section 3.1 for Securities of any series, interest on the
Securities of each series shall be computed on the basis of a 360-day year of
twelve 30-day months.
3.11 MANNER OF PAYMENTS IN RESPECT OF SECURITIES. The provisions of
this Section shall apply to the Securities of any series unless otherwise
provided as contemplated by Section 3.1.
(a) The following payment provisions shall apply to any
Registered Security of any series:
(i) Except as provided in subparagraph (a)(2)
below, payment of principal of and premium, if any, on such Registered Security
will be made at the Place of Payment by delivery of a check on the payment date
or dates against surrender of such Registered Security, and any interest on any
Registered Security will be paid at the Place of Payment by mailing a check by
first class mail to the Person entitled thereto at the address of such Person
appearing on the Security Register.
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(ii) Payment of the principal of, premium, if
any, And interest, if any, on such Security may also, subject to applicable laws
and regulations, be made at such other place or places as may be designated by
the Company by any appropriate method.
(b) Payment of the principal of and premium, if any, and
interest, if any, on any Bearer Security will be made, except as provided in
Section 3.4 with respect to temporary global Securities, unless otherwise
specified pursuant to Section 3.1 and/or Section 901(8), at such place or places
outside the United States as may be designated by the Company pursuant to any
applicable laws or regulations by any appropriate method on the payment date
therefor against surrender of the Bearer Security, in the case of payment of
principal and premium, if Any, or the relevant Coupon, in the case of payment of
interest, if any, to a Paying Agent designated for such series pursuant to
Section 10.2.
(c) Not later than 10 Business Days (with respect to any Place
of Payment) prior to each payment date, the Trustee shall deliver to the Company
a copy of its record of the respective aggregate amounts of principal of,
premium, if any, and interest, if any, on the Securities to be made on such
payment date, specifying the amounts so payable in respect of Registered
Securities and Bearer Securities.
3.12 COMPLIANCE WITH CERTAIN LAWS AND REGULATIONS. If any Bearer
Securities are to be issued in any series of Securities, the Company will use
reasonable efforts to provide for arrangements and Procedures designed pursuant
to then applicable laws and regulations, if any, to ensure that such Bearer
Securities are sold or resold, exchanged, transferred and paid only in
compliance with such laws and regulations and without adverse consequences to
the Company, the Holders and the Trustee.
ARTICLE IV
SATISFACTION AND DISCHARGE
4.1 SATISFACTION AND DISCHARGE OF INDENTURE. This Indenture shall upon
Company Request cease to be of further effect (except as to any surviving rights
of (as applicable) registration of transfer or exchange of Securities and
Coupons, if any, of any series herein expressly provided for), and the Trustee,
at the expense of the Company, shall execute proper instruments acknowledging
satisfaction and discharge of this Indenture when
either
(a) all Securities and Coupons theretofore authenticated and
delivered (other than (i) Securities and Coupons which have been destroyed, lost
or stolen and which have been replaced or paid as provided in Section 3.6 and
(ii) Securities and Coupons for whose payment money has theretofore been
deposited in trust or segregated and held in trust by the Company and thereafter
repaid to the Company or discharged from such trust, as provided in Section
10.3) have been delivered to the Trustee for cancellation; or
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(b) all such Securities and Coupons not theretofore delivered
to the Trustee for cancellation
(i) have become due and payable, or
(ii) will become due and payable at their Stated
Maturity within one year, or
(iii) are to be called for redemption within one
year under arrangements satisfactory to the Trustee for the giving of notice of
redemption by the Trustee in the name, and at the expense, of the Company,
and the Company, in the case of (9) (i) , (ii) or (iii) above,
has deposited or caused to be deposited with the Trustee as trust
funds in trust for the purpose an amount sufficient to pay and
discharge the entire indebtedness on such Securities and Coupons
not theretofore delivered to the Trustee for cancellation,
principal (and premium, if any) and interest, if any, to the date
of such deposit in the case of Securities and Coupons which have
become due and payable) or to the Stated Maturity or Redemption
Date, as the case may be;
(2) the Company has paid or caused to be paid all other sums
payable hereunder by the Company; and
(3) the Company has delivered to the Trustee an Officers'
Certificate and an Opinion of Counsel, each stating that all
conditions precedent herein provided for relating to the
satisfaction and discharge of this Indenture have been complied
with.
Notwithstanding the satisfaction and discharge of this Indenture, the
obligations of the Company to the Trustee under Section 6.7, the obligations of
the Company to any Authenticating Agent under Section 6.14 and, if money shall
have been deposited with the Trustee pursuant to subclause (B) of clause (1) of
this Section, the obligations of the Trustee under Section 4.2 and the last
paragraph of Section 10.3 shall survive.
4.2 APPLICATION OF TRUST MONEY. Subject to the provisions of the last
paragraph of Section 10.3, all money deposited with the Trustee pursuant to
Sections 4.1 and 4.3 shall be held in trust and applied by it, in accordance
with the provisions of the Securities and Coupons, if any, and this Indenture,
to the payment, either directly or through any Paying Agent(including the
Company acting as its own Paying Agent) as the Trustee may determine, to the
Persons entitled thereto, of the principal (and premium, if any) and any
interest for whose payment such money has been deposited with the Trustee; but
such money need not be segregated from other funds except to the extent required
by law.
4.3 SATISFACTION, DISCHARGE AND DEFEASANCES OF SECURITIES OF ANY
SERIES. If this Section is specified, as contemplated by Section 3.1, to be
applicable to Securities and Coupons,
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if any, of any series, the Company will be deemed to have been Discharged (as
defined below) from its obligations with respect to Securities and Coupons, if
any, of such series when
(a) either
(i) with respect to all Outstanding Securities
and Coupons of such series, the Company has deposited or caused to be deposited
with the Trustee as a trust fund specifically pledged as security for, and
dedicated solely to, the benefit of the Holders of the Securities and Coupons,
if any, of such series,
(ii) money in an amount as will, or
(1) U.S. Government Obligations (as
defined below) as will, together with the predetermined and certain income to
accrue thereon without consideration of any reinvestment thereof, or
(2) a combination of (i) and (ii) as will
(in a written opinion with respect to (ii) or (iii) of independent public
accountants delivered to the Trustee), be sufficient to pay and discharge the
entire indebtedness on all Outstanding Securities and Coupons of such series for
principal (and premium, if any) and interest, if any, to the Stated Maturity or
any Redemption Date as contemplated by the last paragraph of this Section 4.3,
as the case may be; or
(3) with respect to all Outstanding
Securities and Coupons of such series, the Company has properly fulfilled such
other means of satisfaction and discharge as is specified by Section 3.1 to be
applicable to the Securities and Coupons, if any, of such series; and
(b) the Company has paid or caused to be paid all other sums
payable with respect to the Outstanding Securities and Coupons, if any, of such
series;
(c) the Company has delivered to the Trustee an Officer's
Certificate and an opinion of Counsel, each stating that all conditions
precedent herein provided for relating to the satisfaction and discharge of the
entire indebtedness on all Outstanding Securities and Coupons, if any, of any
such series have been complied with; and
(d) with respect to subsection 1(a) above, the Company shall
have delivered to the Trustee (A) a ruling directed to the Company and the
Trustee received from the United States Internal Revenue Service to the effect
that the Holders of the Securities of such series will not recognize income,
gain or loss for Federal income tax purposes as a result of the Company's
exercise of its option under this Section 4.3 and will be subject to Federal
income tax on the same amount and in the same manner and at the same times as
would have been the case if such deposit and discharge had not occurred, (B) an
Opinion of Counsel to the same effect as the ruling described in clause (A)
above and based upon a change in law.
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Any deposits with the Trustee referred to in Section 4.3(a) above shall
be irrevocable and shall be made under the terms of an escrow trust agreement in
form and substance satisfactory to the Trustee. If any Outstanding Securities
and Coupons, if any, of such series are to be redeemed prior to their Stated
Maturity, whether pursuant to any mandatory redemption provisions or in
accordance with any mandatory sinking fund requirement, the applicable escrow
trust agreement will provide therefor and the Company will make arrangements for
the giving of notice of redemption by the Trustee in the name, and at the
expense, of the Company.
4.4 REINSTATEMENT. If the Trustee is unable to apply any money or
U.S. Government Obligations in accordance with Section 4.1 or 4.3 by reason of
any legal proceeding or by reason of any order or judgment of any court or
governmental authority enjoining, restraining or otherwise prohibiting such
application, the Company's obligations under this Indenture and the Securities
and Coupons, if any, of such series shall be revived and reinstated as though no
deposit had occurred pursuant to Section 4.1 or 4.3 until such time as the
Trustee is permitted to apply all such money or U.S. Governmental Obligations in
accordance with Section 4.1 or 4.3; provided, however, that if the Company has
made any payment of interest on or principal of (and premium, if any, on) any
Securities and Coupons, if any, of such series because of the reinstatement of
its obligations, the Company shall be subrogated to the rights of the Holders of
such series of Securities and Coupons, if any, to receive such payment from the
money or U.S. Government Obligations held by the Trustee.
4.5 DEFINITIONS. The following terms, as used in this Article IV,
shall have the following meanings:
"Discharged" means that the Company will be deemed to have paid and
discharged the entire indebtedness represented by, and obligations under, the
Securities and Coupons, if any, of the series as to which Section 4.3 is
specified as applicable as aforesaid and to have satisfied all the obligations
under this Indenture relating to the Securities and Coupons, if any, of such
series (and the Trustee, at the expense of the Company, will execute proper
instruments acknowledging the same), except (A) the rights of Holders thereof to
receive, from the trust fund described in Section 4.3(i)(A) above, payment of
the principal of (and premium, if any) and the interest, if any, on such
Securities and Coupons, if any, when such payments are due, (B) the Company's
obligations with respect to such Securities and Coupons, if any, under Sections
3.5 and 3.6 (insofar as applicable to Securities of such series), 4.2, 10.2 and
10.3 (last paragraph only) and the Company's obligations to the Trustee under
Sections 6.7 and 6.10, and (C) the rights, powers, trusts, duties and immunities
of the Trustee hereunder, will survive such discharge.
"U.S. Government Obligations" means securities that are (i) direct
obligations of the United States of America for the payment of which its full
faith and credit is pledged or (ii) obligations of a Person controlled or
supervised by and acting as an agency or instrumentality of the United States of
America the timely payment of which is unconditionally guaranteed as a full
faith and credit obligation of the United States of America, which, in either
case under clauses (i) or (ii), are not callable or redeemable at the option of
the issuer thereof, and will also include a depository receipt issued by a bank
or trust company as custodian with respect to any such U.S. Government
Obligation or a specified payment of interest on or principal of any such
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U.S. Government Obligation held by such custodian for the account of the holder
of a depository receipt, provided that (except as required by law) such
custodian is not authorized to make any deduction from the amount payable to the
holder of such depository receipt from any amount received by the custodian in
respect of the U.S. Government obligation or the specific payment of interest on
or principal of the U.S. Government Obligation evidenced by such depository
receipt.
ARTICLE V
REMEDIES
5.1 EVENTS OF DEFAULT. "Event of Default", wherever used herein with respect
to Securities of any series, means any one of the following events, unless it is
either inapplicable to a particular series or it is specifically deleted or
modified in or pursuant to the supplemental indenture or Board Resolution
establishing such series of Securities or in the form of Security for such
series:
(a) the failure of the Company to pay any installment of
interest on any of the Securities of that series, when and as the same shall
become payable, which failure shall have continued unremedied for a period of
30 days (whether or not such payment is prohibited under the provisions of
Article XV);
(b) the failure of the Company to pay the principal of (and
premium, if any, on) any of the Securities of that series, when and as the same
shall become payable, whether at Stated Maturity as therein expressed, by call
for redemption, pursuant to any sinking fund, by declaration as authorized by
this Indenture or otherwise (whether or not such payment is prohibited under the
provisions of Article XV);
(c) the failure of the Company to observe and perform any
other of the covenants or agreements on the part of the Company contained in
this Indenture (other then a covenant or agreement included in this Indenture
solely for the benefit of a series of Securities other than that series), which
failure shall have continued unremedied for a period of 90 days after written
notice shall have been given, by registered or certified mail, to the Company by
the Trustee, or shall have been given to the Company and the Trustee by the
Holders of 25% or more in principal amount of the Securities of that series then
Outstanding, specifying such failure and requiring the Company to remedy the
same and stating that such notice is a "Notice of Default" hereunder;
(d) the entry of a decree or order for relief by a court
having jurisdiction in the premises in respect of the Company in an involuntary
case under the Federal bankruptcy laws, as now or hereafter constituted, or any
other applicable Federal or State bankruptcy, insolvency or other similar law,
or appointing a receiver, liquidator, assignee, custodian, trustee, sequestrator
(or other similar official) of the Company or for any substantial part of its
property, or ordering the winding up or liquidation of its affairs and the
continuance of any such decree or order unstayed and in effect for a period of
90 consecutive days;
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(e) the commencement by the Company of a voluntary case under
the Federal bankruptcy laws, as now constituted or hereafter amended, or any
other applicable Federal or State bankruptcy, insolvency or other similar law,
or the consent by it to the appointment of or taking possession by a receiver,
liquidator, assignee, trustee, custodian, sequestrator (or other similar
official) of the Company or for any substantial part of its property, or the
making by it of any assignment for the benefit of its creditors, or the
admission by the Company in writing of its inability to pay its debts generally
as such debts become due;
(f) an event of default, as defined in any mortgage, indenture
(including this Indenture), trust agreement or other instrument securing,
evidencing or providing for any Debt of the Company as a result of which Debt of
the Company in excess of $25,000,000 aggregate principal amount shall be or
become due and payable prior to the date on which the same would otherwise
become due and payable (except that such amount shall be $20,000,000 in respect
of a default on Securities of another series) and such acceleration shall not
have been annulled or rescinded within 30 days of notice of such acceleration to
the Company; provided, however, that, if such event of default with respect to
such other series of Securities or under such indenture or instrument, as the
case may be, shall be remedied or cured by the Company or waived by the holders
of such other series of Securities or the holders of such indebtedness, as the
case may be, pursuant to this Indenture or such indenture or instrument, as the
case may be, then unless the maturity of the Securities of such series shall
have been accelerated as provided herein, the Event of Default hereunder by
reason thereof shall be deemed likewise to have been thereupon remedied, cured
or waived without further action upon the part of either the Trustee or the
holders of such series; or
(g) any other Event of Default provided with respect to the
Securities of that series.
5.2 ACCELERATION OF MATURITY; RESCISSION AND ANNULMENT. If an Event
of Default with respect to Securities of any series at the time Outstanding
occurs and is continuing, then in every such case the Trustee or the Holders of
not less than 25% in principal amount of the Outstanding Securities of that
series may declare the principal amount (or, if the Securities of that series
are Original Issue Discount Securities, such portion of the principal amount as
may be specified in the terms of that series) of all of the Securities of that
series to be due and payable immediately, by a notice in writing to the Company
(and to the Trustee if given by Holders), and upon any such declaration such
principal amount (or specified amount) shall become immediately due and payable.
At any time after such a declaration of acceleration with respect to
Securities of any series has been made and before a judgment or decree for
payment of the money due has been obtained by the Trustee as hereinafter in this
Article provided, the Holders of a majority in principal amount of the
Outstanding Securities of that series, by written notice to the Company and the
Trustee, may rescind and annul such declaration and its consequences if
(a) the Company has paid or deposited with the Trustee a sum
sufficient to pay
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(i) all overdue interest on all Securities of
that series,
(ii) the principal of (and premium, if any, on)
any Securities of that series which have become due otherwise than by such
declaration of acceleration and interest thereon at the rate or rates prescribed
therefor in such Securities,
(iii) to the extent that payment of such interest
is lawful, interest upon overdue interest at the rate or rates prescribed
therefor in such Securities or, in the case of Original Issue Discount
Securities, the Securities, Yield to Maturity, and
(iv) all sums paid or advanced by the Trustee
hereunder and the reasonable compensation, expenses, disbursements and advances
of the Trustee, its agents and counsel; and
(b) all Events of Default with respect to Securities of that
series, other than the nonpayment of the principal of Securities of that series
which have become due solely by such declaration of acceleration, have been
cured or waived as provided in Section 5.13.
No such rescission shall affect any subsequent default or impair any
right consequent thereon.
5.3 COLLECTION OF INDEBTEDNESS AND SUITS FOR ENFORCEMENT BY TRUSTEE.
The Company covenants that if the Company shall fail for a period of 30 days to
pay any installment of interest on the Securities of any series or shall fail to
pay the principal of (and premium, if any, on) any of the Securities of any
series when and as the same shall become due and payable, whether at Stated
Maturity, or by call for redemption, pursuant to any sinking fund, by
declaration as authorized by this Indenture, or otherwise, the Company will,
upon demand of the Trustee, pay to it, for the benefit of the Holders of such
Securities and Coupons, if any, the whole amount then due and payable on such
Securities and Coupons, if any, for principal (and premium, if any) and interest
and, to the extent that payment of such interest shall be legally enforceable,
interest on any overdue principal (and premium, if any) and on any overdue
interest, at the rate or rates prescribed therefor in such Securities (or, in
the case of Original Issue Discount Securities, the Securities; Yield to
Maturity) and Coupons, if any, and, in addition thereto, such further amount as
shall be sufficient to cover the costs and expenses of collection, including the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel.
If an Event of Default with respect to Securities and Coupons, if any,
of any series occurs and is continuing, the Trustee may in its discretion
proceed to protect and enforce its rights and the rights of the Holders of
Securities of such series by such appropriate judicial proceedings as the
Trustee shall deem most effectual to protect and enforce any such rights,
whether for the specific enforcement of any covenant or agreement in this
Indenture or in aid of the exercise of any power granted herein, or to enforce
any other proper remedy.
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5.4 TRUSTEE MAY FILE PROOFS OF CLAIM. In case of any judicial
proceeding relative to the Company (or any other obligor upon the Securities),
its property or its creditors, the Trustee shall be entitled and empowered, by
intervention in such proceeding or otherwise, to take any and all actions
authorized under the Trust Indenture Act in order to have claims of the Holders
and the Trustee allowed in any such proceeding. In particular, the Trustee shall
be authorized to collect and receive any moneys or other property payable or
deliverable on any such claims and to distribute the same; and any custodian,
receiver, assignee, trustee, liquidator, sequestrator or other similar official
in any such judicial proceeding is hereby authorized by each Holder to make such
payments to the Trustee and, in the event that the Trustee shall consent to the
making of such payments directly to the Holders, to pay to the Trustee any
amount due it for the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel, and any other amounts due the
Trustee under Section 6.7.
No provision of this Indenture shall be deemed to authorize the Trustee
to authorize or consent to or accept or adopt on behalf of any Holder any plan
of reorganization, arrangement, adjustment or composition affecting the
Securities or the rights of any Holder thereof or to authorize the Trustee to
vote in respect of the claim of any Holder in any such proceeding.
5.5 TRUSTEE MAY ENFORCE CLAIMS WITHOUT POSSESSION OF SECURITIES. All
rights of action and claims under this Indenture or the Securities and Coupons,
if any, may be prosecuted and enforced by the Trustee without the possession of
any of the Securities or the production thereof in any proceeding relating
thereto, and any such proceeding instituted by the Trustee shall be brought in
its own name as trustee of an express trust, and any recovery of judgment shall,
after provision for the payment of the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, be for the
ratable benefit of the Holders of the Securities and Coupons, if any, in respect
of which such judgment has been recovered.
5.6 APPLICATION OF MONEY COLLECTED. Any money collected by the
Trustee pursuant to this Article shall be applied in the following order, at the
date or dates fixed by the Trustee and, in case of the distribution of such
money on account of principal (or premium, if any) or interest, if any, upon
presentation of the Securities and the notation thereon of the payment if only
partially paid and upon surrender thereof if fully paid:
FIRST: to the payment of all amounts due the Trustee under Section 6.7;
SECOND: to the payment of the amounts then due and unpaid for principal
of (and premium, if any) and interest, if any, on the Securities in respect of
which or for the benefit of which such money has been-collected, ratably,
without preference or priority of any kind, according to the amounts due and
payable on such Securities for principal (and premium, if any) and interest, if
any, respectively; and
THIRD: the balance, if any, ratably to the Person or Persons entitled
thereto.
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5.7 LIMITATION ON SUITS. No Holder of any Security of any series
shall have any right to institute any proceeding, judicial or otherwise, with
respect to this Indenture, or for the appointment of a receiver or trustee, or
for any other remedy hereunder, unless
(a) an Event of Default with respect to Securities of such
series shall have occurred and be continuing and such Holder has previously
given written notice to the Trustee of such continuing Event of Default;
(b) the Holders of not less than 25% in principal amount of
the Outstanding Securities of that series shall have made written request to the
Trustee to institute proceedings in respect of such Event of Default in its own
name as Trustee hereunder;
(c) such Holder or Holders have offered to the Trustee
reasonable indemnity against the costs, expenses and liabilities to be incurred
in compliance with such request;
(d) the Trustee for 60 days after its receipt of such notice
request and offer of indemnity has failed to institute any such proceeding; and
(e) no direction inconsistent with such written request has
been given to the Trustee during such 60-day period by the Holders of a majority
in principal amount of the Outstanding Securities of that series; it being
understood and intended that no one or more of such Holders shall have the right
in any manner whatever by virtue of, or by availing of, any provision of this
Indenture (including without limitation the provisions of Section 5.12) to
affect, disturb or prejudice the rights of any other of such Holders, or to
obtain or to seek to obtain priority or preference over any other of such
Holders or to enforce any right under this Indenture, except in the manner
herein provided and for the equal and ratable benefit of all of such Holders.
5.8 UNCONDITIONAL RIGHT OF HOLDERS TO RECEIVE PRINCIPAL, PREMIUM AND
interest. Notwithstanding any other provision in this Indenture, the Holder of
any Security or any Coupon shall have the right, which is absolute and
unconditional, to receive payment of the principal of (and premium, if any, on)
and (subject to Section 3.7) any interest on such Security or Coupon on the
Stated Maturity or Maturities expressed in such Security (or, in the case of
redemption, on the Redemption Date) and to institute suit for the enforcement of
any such payment, and such rights shall not be impaired without the consent of
such Holder.
5.9 RESTORATION OF RIGHTS AND REMEDIES. If the Trustee or any Holder
has instituted any proceeding to enforce any right or remedy under this
Indenture and such proceeding has been discontinued or abandoned for any reason,
or has been determined adversely to the Trustee or to such Holder, then and in
every such case, subject to any determination in such proceeding, the Company,
the Trustee and the Holders shall be restored severally and respectively to
their former positions hereunder and thereafter all rights and remedies of the
Trustee and the Holders shall continue as though no such proceeding had been
instituted.
5.10 RIGHTS AND REMEDIES CUMULATIVE. Except as provided with respect
to the replacement or payment of mutilated, destroyed, lost or stolen Securities
in the last paragraph of
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Section 3.6, no right or remedy herein conferred upon or reserved to the Trustee
or to the Holders is intended to be exclusive of any other right or remedy, and
every right and remedy shall, to the extent permitted by law, be cumulative and
in addition to every other right and remedy given hereunder or now or hereafter
existing at law or in equity or otherwise. The assertion or employment of any
right or remedy hereunder, or otherwise, shall not prevent the concurrent
assertion or employment of any other appropriate right or remedy.
5.11 DELAY OR OMISSION NOT WAIVER. No delay or omission of the Trustee
or of any Holder of any Securities to exercise any right or remedy accruing upon
any Event of Default shall impair any such right or remedy or constitute a
waiver of any such Event of Default or any acquiescence therein. Every right and
remedy given by this Article or by law to the Trustee or to the Holders may be
exercised from time to time, and as often as may be deemed expedient, by the
Trustee or by the Holders, as the case may be.
5.12 CONTROL BY HOLDERS. The Holders of not less than a majority in
principal amount of the outstanding Securities of any series shall have the
right to direct the time, method and place of conducting any proceeding for any
remedy available to the Trustee, or exercising any trust or power conferred on
the Trustee, with respect to the Securities of such series, provided that
(a) such direction shall not be in conflict with any rule of
law or with this Indenture,
(b) the Trustee shall not determine that the action so
directed would be unjustly prejudicial to the Holders not taking part in such
direction,
(c) the Holders have provided the Trustee reasonable indemnity
against costs, expenses and liabilities to be incurred, and
(d) the Trustee may take any other action deemed proper by the
Trustee which is not inconsistent with such direction.
5.13 WAIVER OF PAST DEFAULTS. The Holders of not less than a majority
in principal amount of the Outstanding Securities of any series may on behalf of
the Holders of all the Securities of such series waive any past default
hereunder with respect to such series and its consequences, except a default
(a) in the payment of the principal of (or premium, if any) or
interest, if any, on any Security of such series, or
(b) in respect of a covenant or provision hereof which under
Article IX cannot be modified or amended without the consent of the Holder of
each Outstanding Security of such series affected.
Upon any such waiver, such default shall cease to exist with respect to
such series, and any Event of Default with respect to such series arising
therefrom shall be deemed to have been
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cured, for every purpose of this Indenture; but no such waiver shall extend to
any subsequent or other default or impair any right consequent thereon.
5.14 UNDERTAKING FOR COSTS. In any suit for the enforcement of any
right or remedy under this Indenture, or in any suit against the Trustee for any
action taken, suffered or omitted by it as Trustee, a court may require any
party litigant in such suit to file an undertaking to pay the costs of such
suit, and may assess costs against any such party litigant, in the manner and to
the extent provided in the Trust Indenture Act; provided that neither this
Section nor the Trust Indenture Act shall be deemed to authorize any court to
require such an undertaking or to make such an assessment in any suit instituted
by the Company.
ARTICLE VI
THE TRUSTEE
6.1 CERTAIN DUTIES AND RESPONSIBILITIES.
(a) Except during the continuance of an Event of Default.
(i) the Trustee undertakes to perform such
duties and only such duties as are specifically set forth in this Indenture, and
no implied covenants or obligations shall be read into this Indenture against
the Trustee; and
(ii) 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 which by any provision of
this Indenture are specifically required to be furnished to the Trustee, the
Trustee shall be under a duty to examine the same to determine whether or not
they conform to the requirements of this Indenture.
(b) In case an Event of Default has occurred and is
continuing, the Trustee shall exercise such of the rights and powers vested in
it by this Indenture, and use the same degree of care and skill in their
exercise, as a prudent man would exercise or use under the circumstances in the
conduct of his own affairs.
(c) No provision of this Indenture shall be construed to
relieve the Trustee from liability for its own negligent action, its own
negligent failure to act, or its own willful misconduct, except that
(i) this Subsection shall not be construed to
limit the effect of Subsection (a) of this Section;
(ii) 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 pertinent facts;
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(iii) 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 a majority in principal amount of the
Outstanding Securities of any series, determined as provided in Sections 1.1,
1.4 and 5.12, relating to the time, method and place of conducting any
proceeding for any remedy available to the Trustee, or exercising any trust or
power conferred upon the Trustee, under this Indenture with respect to the
Securities of such series; and
(iv) no provision of this Indenture shall require
the Trustee to expend or risk its own funds or otherwise incur any financial
liability in the performance of any of its duties hereunder, or in the exercise
of any of its rights or powers, if it shall have reasonable grounds for
believing that repayment of such funds or adequate indemnity against such or
liability is not reasonably assured to it.
(d) Whether or not therein expressly so provided, every
provision of this Indenture relating to the conduct or affecting the liability
of or affording protection to the Trustee shall be subject to the provisions of
this Section.
6.2 NOTICE OF DEFAULTS. If a default occurs hereunder with respect to
Securities of any series, the Trustee shall give the Holders of Securities of
such series notice of such default actually known to the Trustee as and to the
extent provided by the Trust Indenture Act; provided, however, that in the case
of any default of the character specified in Section 5.1(c) with respect to
Securities of such series, no such notice to Holders shall be given until at
least 30 days after the occurrence thereof and if such default is corrected
within such period, the Trustee may conclude, consistent with the Trust
Indenture Act, that notice of such a default need not be provided to such
Holders of Securities. For the purpose of this Section, the term "default" means
any event which is, or after notice or lapse of time or both would become, an
Event of Default with respect to Securities of such series.
6.3 CERTAIN RIGHTS OF TRUSTEE. Subject to the provisions of
Section 6.1:
(a) the Trustee may rely and shall be protected in acting or
refraining from acting upon any resolution, Officers' Certificate, certificate,
statement, instrument, opinion, report, notice, request, direction, consent,
order, bond, debenture, Security or other paper or document believed by it to be
genuine and to have been signed or presented by the proper party or parties;
(b) any request or direction of the Company shall be
sufficiently evidenced by a Company Request or Company Order and any resolution
of the Board of Directors may be sufficiently evidenced by a Board Resolution;
(c) whenever in the administration of this Indenture the
Trustee shall deem it desirable that a matter be proved or established prior to
taking, suffering or omitting any action hereunder, the Trustee (unless other
evidence be herein specifically prescribed) may, in the absence of bad faith on
its part, rely upon an Officers' Certificate;
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(d) before the Trustee acts or refrains from acting, the
Trustee may consult with counsel and the advice of such counsel shall be full
and complete authorization and protection in respect of any action taken,
suffered or omitted by it hereunder in good faith and in reliance thereon;
(e) the Trustee shall be under no obligation to exercise any
of the rights or powers vested in it by this Indenture at the request or
direction of any of the Holders pursuant to this Indenture, unless such Holders
shall have offered to the Trustee reasonable security or indemnity against the
costs, expenses and liabilities which might be incurred by it in compliance with
such request or direction;
(f) prior to the occurrence of an Event of Default hereunder
and after the curing or waiving of all Events of Default, the Trustee shall not
be bound to make any investigation into the facts or matters stated in any
resolution, Officer's Certificate, other certificate, statement, instrument
opinion, report, notice, request, consent, order approval, appraisal, bond,
debenture, note, coupon, security, or other paper or document unless requested
in writing so to do by any Holder; provided that, if the payment within a
reasonable time to the Trustee of the costs, expenses or liabilities likely to
be incurred by it in the making of such investigation is, in the opinion of the
Trustee, not reasonably assured to the Trustee by the security afforded to it by
the terms of this Indenture, the Trustee may require reasonable indemnity
against such expenses or liabilities as a condition to proceeding; the
reasonable expenses of every such examination shall be paid by the Company or,
if advanced by the Trustee, shall be repaid by the Company upon demand;
(g) the Trustee may execute any of the trusts or powers
hereunder or perform any duties hereunder either directly or by or through
agents or attorneys and the Trustee shall not be responsible for any misconduct
or negligence on the part of any agent or attorney appointed with due care by it
hereunder;
(h) the Trustee shall not be liable for any action taken or
omitted to be taken by it in good faith and believed by it to be authorized or
within the discretion or rights or powers conferred upon it by this Indenture;
(i) the Trustee shall not be required to give any bond or
surety in respect of the performance of its power and duties hereunder;
(j) the Trustee shall not be bound to ascertain or inquire as
to the performance or observance of any covenants, conditions, or agreements on
the part of the Company, except as otherwise set forth herein, but the Trustee
may require of the Company full information and advice as to the performance of
the covenants, conditions and agreements contained herein and shall be entitled
in connection herewith to examine the books, records and premises of the
Company;
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(k) the permissive rights of the Trustee to do things
enumerated in this Indenture shall not be construed as a duty and the Trustee
shall not be answerable for other than its negligence or willful default; and
(l) the Trustee shall not be deemed to have actual knowledge
of an Event of Default except for (I) a default under Sections 5.1(a) or 5.1(b)
hereof, or (ii) any other event of which the Trustee has "actual knowledge" and
which event with the giving of notice or the passage of time or both, would
constitute an Event of Default under this Indenture or event unless specifically
notified in writing of such event by the Company or any Holder; the term "actual
knowledge" means the actual fact or statement of knowing, without any duty to
make any investigation with regard thereto.
6.4 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 assumes no responsibility for their correctness. The Trustee
makes no representations as to the validity or sufficiency of this Indenture or
of the Securities. Neither the Trustee nor any Authenticating Agent shall be
accountable for the use or application by the Company of Securities or the
proceeds thereof.
6.5 MAY HOLD SECURITIES. The Trustee, any Paying Agent, any Security
Registrar or any other agent of the Company, in its individual or any other
capacity, may become the owner or pledgee of Securities or warrants to purchase
Securities and, subject to Sections 6.8 and 6.13, may otherwise deal with the
Company with the same rights it would have if it were not Trustee, Paying Agent,
Security Registrar or such other agent.
6.6 MONEY HELD IN TRUST. Money held by the Trustee or any Paying
Agent in trust hereunder need not be segregated from other funds except to the
extent required by law. The Trustee or any Paying Agent shall be under no
liability for interest on any money received by it hereunder except as otherwise
agreed with the Company.
6.7 COMPENSATION AND REIMBURSEMENT. The Company agrees
(a) to pay to the Trustee from time to time reasonable
compensation for all services rendered by it hereunder (which compensation shall
not be limited by any provision of law in regard to the compensation of a
trustee of an express trust);
(b) except as otherwise expressly provided herein, 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
(c) to indemnify the Trustee for, and to hold it harmless
against, any loss, damage, claim, liability or expense incurred without
negligence or bad faith on its part, arising out of or in connection with the
acceptance or administration of the trust or trusts hereunder,
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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. The costs and expenses of enforcing this right to
indemnification shall also be paid by the Company.
As security for the performance of the obligations of the Company under
this Section, the Trustee shall have a lien prior to the Securities upon all
property and funds held or collected by the Trustee as such, except funds held
in trust for the payment of principal of, premium, if any, or interest, if any,
on particular Securities.
6.8 DISQUALIFICATION; CONFLICTING INTERESTS. If the Trustee has or
shall acquire any conflicting interest within the meaning of the Trust Indenture
Act, the Trustee shall comply with the relevant provisions thereof.
6.9 CORPORATE TRUSTEE REQUIRED; ELIGIBILITY. There shall at all times
be a Trustee hereunder which shall be a Person that is eligible pursuant to the
Trust Indenture Act to act as such and has a combined capital and surplus of at
least $50,000,000. If such Person publishes reports of condition at least
annually, pursuant to law or to the requirements of its supervising or examining
authority, then for the purposes of this Section, the combined capital and
surplus of such Person shall be deemed to be its combined capital and surplus as
set forth in its most recent report of condition so published. If at any time
the Trustee shall cease to be eligible in accordance with the provisions of this
Section, it shall resign immediately in the manner and with the effect
hereinafter specified in this Article.
6.10 RESIGNATION AND REMOVAL; APPOINTMENT OF SUCCESSOR.
(a) No resignation or removal of the Trustee and no
appointment of a successor Trustee pursuant to this Article shall become
effective until the acceptance of appointment by the successor Trustee in
accordance with the applicable requirements of Section 6.11.
(b) The Trustee may resign at any time with respect to the
Securities of one or more series by giving written notice thereof to the
Company. If the instrument of acceptance by a successor Trustee required by
Section 6.11 shall not have been delivered to the resigning Trustee within 30
days after the giving of such notice of resignation, the resigning Trustee may
petition any court of competent jurisdiction for the appointment of a successor
Trustee with respect to the Securities of such series.
(c) The Trustee may be removed at any time with respect to the
Securities of any series by Act of the Holders of a majority in principal amount
of the Outstanding Securities of such series, delivered to the Trustee and to
the Company.
(d) If at any time:
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(i) the Trustee shall fall to comply with
Section 6.8 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
(ii) the Trustee for a series shall cease to be
eligible under Section 6.9 and shall fail to resign after written request
therefor by the Company or by any Holder of Securities of such series, or
(iii) 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 its property or affairs for the purpose of
rehabilitation, conservation or liquidation,
then, in any such case, (i) the Company by a Board Resolution may remove the
Trustee with respect to all Securities, or (ii) subject to Section 5.14, 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 removal of the Trustee with respect to all
Securities and the appointment of a successor Trustee or Trustees.
(e) If the Trustee shall resign, be removed or become
incapable of acting, or if a vacancy shall occur in the office of the Trustee
for any cause, with respect to the Securities of one or more series, the
Company, by a Board Resolution, shall promptly appoint a successor Trustee or
Trustees with respect to the Securities of that or those series (it being
understood that any such successor Trustee may be appointed with respect to the
Securities of one or more or all of such series and that at any time there shall
be only one Trustee with respect to the Securities of any particular series) and
each successor Trustee or Trustees shall comply with the applicable requirements
of Section 6.11. If, within one year after such resignation, removal or
incapability, or the occurrence of such vacancy, a successor Trustee with
respect to the Securities of any series shall be appointed by Act of the Holders
of a majority in principal amount of the Outstanding Securities of such series
delivered to the Company and the retiring Trustee, the successor Trustee so
appointed shall, forthwith upon its acceptance of such appointment in accordance
with the applicable requirements of Section 6.11, become the successor Trustee
with respect to the Securities of such series and to that extent supersede the
successor Trustee appointed by the Company. If no successor Trustee with respect
to the Securities of any series shall have been so appointed by the Company or
the Holders and accepted appointment in the manner required by Section 6.11, any
Holder who has been a bona fide Holder of a Security of such series for at least
six months may, on behalf of himself and all others similarly situated, petition
any court of competent jurisdiction for the appointment of a successor Trustee
with respect to the Securities of such series.
(f) The Company shall give notice of each resignation and each
removal of the Trustee with respect to the Securities of any series and each
appointment of a successor Trustee with respect to the Securities of any series
by giving notice of such event to all Holders of Securities of such series as
provided by Section 1.6. Each notice shall include the name of the
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successor Trustee with respect to the Securities of such series and the address
of its Corporate Trust office.
6.11 ACCEPTANCE OF APPOINTMENT BY SUCCESSOR.
(a) In case of the appointment hereunder of a Successor
Trustee with respect to all Securities, every such successor Trustee so
appointed shall execute, acknowledge and deliver to the Company and to the
retiring Trustee an instrument accepting such appointment, and thereupon the
resignation or removal of the retiring Trustee shall become effective and such
successor Trustee, without any further act, deed or conveyance, shall become
vested with all the rights, powers, trusts and duties of the retiring Trustee;
but, on the request of the Company or the successor Trustee, such retiring
Trustee shall, upon payment of its charges, execute and deliver an instrument
transferring to such successor Trustee all the rights, powers and trusts of the
retiring Trustee and shall duly assign, transfer and deliver to such successor
Trustee all property and money held by such retiring Trustee hereunder.
(b) In case of the appointment hereunder of a successor
Trustee with respect to the Securities of one or more (but not all) series, the
Company, the retiring Trustee and each successor Trustee with respect to the
Securities of one or more series shall execute and deliver an indenture
supplemental hereto wherein each successor Trustee shall accept such appointment
and which (1) shall contain such provisions as shall be necessary or desirable
to transfer and confirm to, and to vest in, each successor Trustee all the
rights, powers, trusts and duties of the retiring Trustee with respect to the
Securities of that or those series to which the appointment of such successor
Trustee relates, (2) if the retiring Trustee is not retiring with respect to all
Securities, shall contain such provisions as shall be deemed necessary or
desirable to confirm that all the rights, powers, trusts and duties of the
retiring Trustee with respect to the Securities of that or those series as to
which the retiring Trustee is not retiring shall continue to be vested in the
retiring Trustee, and (3) shall add to or change any of the provisions of this
Indenture as shall be necessary to provide for or facilitate the administration
of the trusts hereunder by more than one Trustee, it being understood that
nothing herein or in such supplemental indenture shall constitute such Trustees
co-trustees of the same trust and that such Trustee shall be trustee of a trust
or trusts hereunder separate and apart from any trust or trusts hereunder
administered by any other such Trustee; and upon the execution and delivery of
such supplemental indenture, the resignation or removal of the retiring Trustee
shall become effective to the extent provided therein and each such successor
Trustee, without any further act, deed or conveyance, shall become vested with
all the rights, powers, trusts and duties of the retiring Trustee with respect
to the Securities of that or those series to which the appointment of such
successor Trustee relates; but, on request of the Company or any successor
Trustee, such retiring Trustee shall duly assign, transfer and deliver to such
successor Trustee all property and money held by such retiring Trustee hereunder
with respect to the Securities of that or those series to which the appointment
of such successor Trustee relates.
(c) Upon request of any such successor Trustee, the Company
shall execute any and all instruments for more fully and certainly vesting in
and confirming to such successor
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Trustee all such rights, powers and trusts referred to in paragraph (a) or (b)
of this Section, as the case may be.
(d) 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.
6.12 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 into which the Trustee shall be a party, or any corporation
succeeding to all or substantially all the corporate 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.
6.13 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 or the Coupons, if any), the Trustee shall be subject to the
provisions of the Trust Indenture Act regarding the collection of claims against
the Company (or any such other obligor).
6.14 APPOINTMENT OF AUTHENTICATING AGENT. The Trustee may appoint an
Authenticating Agent or Agents with respect to one or more series of Securities
which shall be authorized to act on behalf of the Trustee to authenticate
Securities of such series issued upon original issue or upon exchange,
registration of transfer or partial redemption thereof or pursuant to Section
3.6, 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 having a combined capital and
surplus of not less than the equivalent of $50,000,000 and subject to
supervision or examination by Federal or State authority or the equivalent
foreign authority, in the case of an Authenticating Agent who is not organized
and doing business under the laws of the United States of America, any State
thereof or the District of Columbia. If such Authenticating Agent publishes
reports of condition at least annually, pursuant to law or to the requirements
of said supervising or examining authority, then for the purposes of this
Section, the combined capital and surplus of such Authenticating Agent shall be
deemed to be its combined capital and surplus as set forth in its most recent
report of condition so published. If at any time an Authenticating Agent shall
cease to be eligible in accordance with the provisions of this Section, such
Authenticating Agent shall resign immediately in the manner and with the effect
specified in this Section.
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Any corporation into which an Authenticating Agent may be merged or
converted or with which it may be consolidated, or any corporation resulting
from any merger, conversion or consolidation to which such Authenticating Agent
shall be a party, or any corporation succeeding to the corporate agency or
corporate trust business of such 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 such 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 which shall be acceptable to the Company and shall mail written notice of
such appointment by first-class mail, postage prepaid, to all Holders Registered
Securities, if any, of the series with respect to which such Authenticating
Agent will serve, as their names and addresses appear in the Security Register.
Any successor Authenticating Agent upon acceptance of its appointment hereunder
shall become vested with all the rights, powers and duties of its predecessor
hereunder, with like effect as if originally named as an Authenticating Agent.
No successor Authenticating Agent shall be appointed unless eligible under the
provisions of this Section.
The Company agrees to pay to each Authenticating Agent from time to time
reasonable compensation for its services under this Section.
If an appointment with respect to one or more series is made pursuant to
this Section, the Securities of such series may have endorsed thereon, in
addition to the Trustee's certificate of authentication, an alternative
certificate of authentication in the following form:
This is one of the Securities of the series designated and issued under
the within-mentioned Indenture.
[full name of Trustee]
-------------------------------------------
As Trustee
By
-----------------------------------------
As Authenticating Agent
By
-----------------------------------------
Authorized [Officer] [Secretary]
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If all of the Securities of a series may not be originally issued at one
time, and if the Trustee does not have an office capable of authenticating
Securities upon original issuance located in a Place of Payment or other place
where the Company wishes to have Securities of such series authenticated upon
original issuance, the Trustee, if so requested by the Company in writing (which
writing need not comply with Section 1.2 and need not be accompanied by an
opinion of Counsel), shall appoint in accordance with this Section an
Authenticating Agent (which may be an Affiliate of the Company if eligible to be
appointed as an Authenticating Agent hereunder) having an office in such Place
of Payment or other place designated by the Company with respect to such series
of Securities.
ARTICLE VII
HOLDERS' LISTS AND REPORTS BY TRUSTEE AND COMPANY
7.1 COMPANY TO FURNISH TRUSTEE NAMES AND ADDRESSES OF HOLDERS. The Company
will furnish or cause to be furnished to the Trustee:
(a) semi-annually, not later than January 15 and July 15 in
each year (commencing with the first January 15 or July 15 after the first
issuance of Securities pursuant to this Indenture), a list, in such form as the
Trustee may reasonably require, of all information in the possession or control
of the Company or any Paying Agent as to the Holders of each series of the
preceding January 1 or be,
(b) at such other times as the Trustee may request in writing,
within 30 days after the receipt by the Company of any such request, a list of
similar form and content as of a date not more than 15 days prior to the time
such list is furnished, and
(c) such information concerning the Holders of Bearer
Securities which is known to the Company; provided, however, that the Company
shall have no obligation to investigate any matter relating to any Holder of a
Bearer Security or a Coupon.
7.2 PRESERVATION OF INFORMATION; COMMUNICATIONS TO HOLDERS.
(a) The Trustee shall preserve, in as current a form as is
reasonably practicable, the names and addresses of Holders contained in the most
recent list furnished to the Trustee as provided in Section 7.1 and the names
and addresses of Holders received by the Trustee in its capacity as Security
Registrar. The Trustee may destroy any list furnished to it as provided in
Section 7.1 upon receipt of a new list so furnished.
(b) The rights of the Holders to communicate with other
Holders with respect to their rights under this Indenture or under the
Securities, and the corresponding rights and privileges of the Trustee, shall be
as provided by the Trust Indenture Act.
(c) Every Holder of Securities or Coupons, by receiving and
holding the same, agrees with the Company and the Trustee that neither the
Company nor the Trustee nor any agent of either of them shall be held
accountable by reason of the disclosure of any such
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information as to the names and addresses of the Holders in accordance with
Section 3.12 of the Trust Indenture Act, regardless of the source from which
such information was derived, and that the Trustee shall not be held accountable
by reason of mailing any material pursuant to a request made under Section
3.12(b) of the Trust Indenture Act.
7.3 REPORTS BY TRUSTEE.
(a) On or before July 15 of each year commencing with the
first July 15 after the first issuance of Securities pursuant to this Indenture,
the Trustee shall transmit to the Holders of Securities, in the manner and to
the extent provided in Section 3.13(c) of the Trust Indenture Act, a brief
report if required by Section 3.13(a) of the Trust Indenture Act, dated as of a
date no more than 60 nor less than 45 days prior thereto. The Trustee also shall
comply with Section 3.13(b) of the Trust Indenture Act and shall transmit to
Holders, in the manner and to the extent provided is said Section 3.13(c), such
other reports, if any, as may be required pursuant to the Trust Indenture Act.
(b) A copy of each such report shall, at the time of such
transmission to Holders, be filed by the Trustee with each stock exchange upon
which any Securities are listed, with the Commission and with the Company. The
Company will notify the Trustee when any Securities are listed on any stock
exchange.
7.4 REPORTS BY COMPANY. The Company shall file with the Trustee and
the Commission, and transmit to Holders, such information, documents and
reports, and such summaries thereof, as may be required pursuant to the Trust
Indenture Act at the times and in the manner provided pursuant to such Act;
provided that any such information, documents or reports required to be filed
with the Commission pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934 shall be filed with the Trustee within 15 days after the same is so
required to be filed with the Commission.
ARTICLE VIII
CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE
8.1 COMPANY MAY CONSOLIDATE, ETC. Only on Certain Terms. The Company shall
not consolidate with or merge into any other corporation 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, unless:
(a) in case the Company shall consolidate with or merge into
another corporation or convey, transfer or lease its properties and assets
substantially as an entirety to any Person, the corporation formed by such
consolidation or into which the Company is merged or the Person which acquires
by conveyance or transfer, or which leases, the properties and assets of the
Company substantially as an entirety shall be a corporation organized and
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
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(and premium, if any) and interest, if any, on all the Outstanding Securities of
all series and the performance of every covenant of this Indenture on the part
of the Company to be performed or observed;
(b) immediately after giving effect to such transaction, no
Event of Default, and no event which, after notice or lapse of time or both,
would become an Event of Default, shall have happened and be continuing; and
(c) if a supplemental indenture is required in connection with
such transaction, the Company shall have delivered to the Trustee an Officers'
Certificate and an Opinion of Counsel, each stating that such consolidation,
merger, conveyance, transfer or lease and such supplemental indenture comply
with this Article and that all conditions precedent herein provided or relating
to such transaction have been complied with.
8.2 SUCCESSOR CORPORATION SUBSTITUTED. Upon any consolidation by the
Company with or merger by the Company into any other corporation or any
conveyance, transfer or lease of the properties and assets of the Company
substantially as an entirety in accordance with Section 8.1, the successor
corporation 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 corporation had been
named as the Company herein, and thereafter, the predecessor corporation shall
be relieved of the performance and observance of all obligations and covenants
under this Indenture and the Securities (and any Coupons appertaining thereto),
including but not limited to the obligation to make payment of the principal of
(and premium, if any) and interest, if any, on all the Outstanding Securities of
all series (and any Coupons appertaining thereto), and, in the event of such
conveyance, transfer or lease, may be liquidated and dissolved.
ARTICLE IX
SUPPLEMENTAL INDENTURES
9.1 SUPPLEMENTAL INDENTURES WITHOUT CONSENT OF HOLDERS. Without the consent
of any Holders, the Company, when authorized by or pursuant to a Board
Resolution, and the Trustee, at any time and from time to time, may enter into
one or more indentures supplemental hereto, in form satisfactory to the Trustee,
for any of the following purposes:
(a) to evidence the succession of another corporation to the
Company and the assumption by any such successor of the covenants of the Company
herein and in the Securities;
(b) to add to the covenants of the Company for the benefit of
the Holders of all or any series of Securities (and if such covenants are to be
for the benefit of less than all series of Securities, stating that such
covenants are expressly being included solely for the benefit of such series) or
to surrender any right or power herein conferred upon the Company;
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(c) to add any additional Events of Default with respect to
all or any series of the Securities (and, if such Event of Default is applicable
to less than all series of Securities specifying the series to which such Event
of Default is applicable);
(d) to add to or change any of the provisions of this
Indenture to such extent as shall be necessary to facilitate the issuance of
Securities in bearer form, registrable or not registrable as to principal, and
with or without interest coupons; to change or eliminate any restrictions on the
payment of principal of or any premium or interest on Bearer Securities, to
permit Bearer Securities to be issued in exchange for Registered Securities, to
permit Bearer Securities to be issued in exchange for Bearer Securities of other
authorized denominations; provided that any such addition or change shall not
adversely affect the interests of the Holders of Securities of any series or any
related Coupons in any material respect;
(e) to change or eliminate any of the provisions of this
Indenture; provided that any such change or elimination shall become effective
only when there is no Security Outstanding of any series created prior to the
execution of such supplemental indenture which is adversely affected by such
change in or elimination of such provision;
(f) to establish the form or terms of Securities of any series
as permitted by Sections 2.1 and 3.1;
(g) to evidence and provide for the acceptance of appointment
hereunder by a successor Trustee with respect to the Securities of one or more
series and to add to or change any of the provisions of this Indenture as shall
be necessary to provide for or facilitate the administration of the trusts
hereunder by more than one Trustee, pursuant to the requirements of Section
6.11(b);
(h) if allowed under applicable laws and regulations, to
permit payment in the United States of principal, premium or interest on Bearer
Securities or Coupons, if any;
(i) to provide for the issuance of uncertificated Securities
of one or more series in addition to or in place of certificated Securities; or
(j) to cure any ambiguity, to correct or supplement any
provision herein which may be defective or inconsistent with any other provision
herein, or to make any other provisions with respect to matters or questions
arising under this Indenture; provided such other provisions as may be made
shall not adversely affect the interests of the Holders of Securities of any
series in any material respect.
9.2 SUPPLEMENTAL INDENTURES WITH CONSENT OF HOLDERS. With the consent
of the Holders of not less than a majority in principal amount of the
Outstanding Securities of all series affected by such supplemental indenture
(acting as one class), by Act of said Holders delivered to the Company and the
Trustee, the Company, when authorized by or pursuant to a Board Resolution, and
the Trustee may enter into an indenture or indentures supplemental hereto for
the purpose of adding any provisions to or changing in any manner or eliminating
any of the
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provisions of this Indenture or of modifying in any manner the rights of the
Holders of Securities of such series under this Indenture; provided, however,
that no such supplemental indenture shall, without the consent of the Holder of
each Outstanding Security affected thereby,
(a) change the Stated Maturity of the principal of, or any
installment of principal of or interest on, any Security, or reduce the
principal amount thereof or the rate of interest thereon or any premium payable
upon the redemption thereof, or reduce the amount of the principal of an
Original Issue Discount Security that would be due and payable upon a
declaration of acceleration of the Maturity thereof pursuant to Section 5.2, or
change any Place of Payment where, or the coin or currency in which, any
Security or any premium or the interest thereon is payable, or impair the right
to institute suit for the enforcement of any such payment on or after the Stated
Maturity thereof (or, in the case of redemption, on or after the Redemption
Date).
(b) reduce the percentage in principal amount of the
Outstanding Securities of any series, the consent of whose Holders is required
for any such supplemental indenture, or the consent of whose Holders is required
for any waiver of compliance with certain provisions of this Indenture or
certain defaults hereunder and their consequences provided for in this
Indenture.
(c) change any obligation of the Company, with respect to
Outstanding Securities of a series, to maintain an office or agency in the
places and for the purposes specified in Section 10.2 for such series, or
(d) modify any of the provisions of this Section or Section
5.13 except to increase any such percentage or to provide with respect to any
particular series the right to condition the effectiveness of any supplemental
indenture as to that series on the consent of the Holders of a specified
percentage of the aggregate principal amount of Outstanding Securities of such
series (which provision may be made pursuant to Section 3.1 without the consent
of any Holder) or to provide that certain other provisions of this Indenture
cannot be modified or waived without the consent of the Holder of each
Outstanding Security affected thereby; provided, however, that this clause shall
not be deemed to require the consent of any Holder with respect to changes in
the references to the Trustee and concomitant changes in this Section, or the
deletion of this proviso, in accordance with the requirements of Sections
6.11(b) and 9.1(7).
For purposes of this Section 9.2, if the Securities of any series are
issuable upon the exercise of warrants, each holder of an unexercised and
unexpired warrant with respect to such series shall be deemed to be a Holder of
Outstanding Securities of such series in the amount issuable upon the exercise
of such warrant. For such purposes, the ownership of any such warrant shall be
determined by the Company in a manner consistent with customary commercial
practices. The Trustee for such series shall be entitled to rely on an Officer's
Certificate as to the principal amount of Securities of such series in respect
of which consents shall have been executed by holders of such warrants.
A supplemental indenture which changes or eliminates any covenant or
other provision of this Indenture which has expressly been included solely for
the benefit of one or more particular
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series of Securities, or which modifies the rights of the Holders of Securities
of such series with respect to such covenant or other provision, shall be deemed
not to affect the rights under this Indenture of the Holders of Securities of
any other series.
It shall not be necessary for any Act of Holders under this Section to
approve the Particular form of any proposed supplemental indenture, but it shall
be sufficient if such Act shall approve the substance thereof.
9.3 EXECUTION OF SUPPLEMENTAL INDENTURES. In executing, or accepting
the additional trusts created by, any supplemental indenture permitted by this
Article or the modifications thereby of the trusts created by this Indenture,
the Trustee shall be entitled to receive, and (subject to Section 6.1) shall be
fully protected in relying upon, an Opinion of Counsel stating that the
execution of such supplemental indenture is authorized or permitted by this
Indenture. The Trustee may, but shall not be obligated to, enter into any such
supplemental indenture which affects the Trustee's own rights, duties,
immunities or liabilities under this Indenture or otherwise.
9.4 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.
9.5 CONFORMITY WITH TRUST INDENTURE ACT. Every supplemental indenture
executed pursuant to this Article shall conform to the requirements of the Trust
Indenture Act.
9.6 REFERENCE IN SECURITIES TO SUPPLEMENTAL INDENTURES. Securities of
any series authenticated and delivered after the execution of any supplemental
indenture pursuant to this Article may, and shall if required by the Trustee,
bear a notation in form approved by the Trustee as to any matter provided for in
such supplemental indenture. If the Company shall so determine, new Securities
of any series so modified as to conform, in the opinion of the Trustee and the
Company, to any such supplemental indenture may be prepared and executed by the
Company and authenticated and delivered by the Trustee in exchange for
Outstanding Securities of such series.
ARTICLE X
COVENANTS
10.1 PAYMENT OF PRINCIPAL, PREMIUM AND INTEREST. The Company covenants and
agrees for the benefit of each series of Securities and Coupons, if any, that it
will duly and punctually pay the principal of (and premium, if any, on) each of
the Securities and Coupons, if any, of that series, and the interest, if any,
which shall have accrued thereon, in accordance with the terms of the Securities
and Coupons, if any, of such series and this Indenture.
10.2 MAINTENANCE OF OFFICE OR AGENCY. If Securities of a series are
issuable only as Registered Securities, until all the Securities of each such
series shall have been paid or payment
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thereof provided for, the Company will maintain in each Place of Payment for
such series an office or agency where Securities of that series may be presented
or surrendered for payment, where Securities of that series may be surrendered
for registration of transfer or exchange and where notices and demands to or
upon the Company in respect of the Securities of that series and this Indenture
may be served. If Securities of a series are issuable as Bearer Securities,
until all the Securities of each such series shall have been paid or payment
thereof provided for, the Company will maintain (a) in The City of New York, an
office or agency where any Registered Securities of that series may be presented
or surrendered for payment, where any Registered Securities of that series may
be surrendered for registration of transfer, where Securities of that series may
be surrendered for exchange, where notices and demands to or upon the Company in
respect of the Securities of that series and this Indenture may be served and
where Bearer Securities of that series and related Coupons may be presented or
surrendered for payment in the circumstances described in this paragraph (and
not otherwise), (b) subject to any laws or regulations applicable thereto, in a
Place of Payment for that series which is located outside the United States, an
office or agency where Securities of that series and related Coupons may be
presented and surrendered for payment (including payment of any additional
amounts payable on Securities of that series pursuant to Section 10.4);
provided, however. that if the Securities of that series are listed on The
International Stock Exchange of the United Kingdom and the Republic of Ireland
Limited, the Luxembourg Stock Exchange or any other stock exchange located
outside the United States and such stock exchange shall so require, the Company
will maintain a Paying Agent for the Securities of that series in London,
Luxembourg or any other required city located outside the United States, as the
case may be, so long as the Securities of that series are listed on such
exchange, and (c) subject to any laws or regulations applicable thereto, in a
Place of Payment for that series located in Europe, an office or agency where
any Registered Securities of that series may be surrendered for registration of
transfer, where Securities of that series may be surrendered for exchange and
where notices and demands to or upon the Company in respect of the Securities of
that series and this Indenture may be served. The Company will give prompt
written notice to the Trustee and the Holders of the location, and any change in
the location, of any such office or agency. If at any time the Company shall
fail to maintain any such required office or agency in respect of any series of
Securities or shall fail to furnish the Trustee with the address thereof, such
presentations and surrenders of securities of that series may be made and
notices and demands may be made or served at the Corporate Trust Office of the
Trustee, except that Bearer Securities of that series and the related Coupons
may be presented and surrendered for payment (including payment of any
additional amounts payable on Bearer Securities of that series pursuant to
Section 10.4) at the London office of the Trustee (or an agent with a London
office appointed by the Trustee and acceptable to the Company), and the Company
hereby appoints the same as its agent to receive such respective presentations,
surrenders, notices and demands. Presentation of Coupons for payment or other
demands for payment of Bearer Securities must be made outside the United States,
and no payment of principal, premium or interest on Bearer Securities shall be
made at any office or agency of the Company in the United States or by check
mailed to any address in the United States or by transfer to an account
maintained with a bank located in the United States; provided, however, that
payment of principal of and any premium and interest on any Bearer Security
(including any additional amounts payable on Securities of such series pursuant
to Section 10.4) shall be made at the office of the Company's Paying Agent in
The City of New York, if (but only if) (i) despite the
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appointment of Paying Agents outside the United States, payment of the full
amount of such principal, premium, interest or additional amounts, as the case
may be, at the offices of all such Paying Agents maintained for the purpose by
the Company in accordance with this Indenture is illegal or effectively
precluded by exchange controls or other similar restrictions, (ii) such payment
is then permitted by applicable laws and (iii) in appointing a Paying Agent in
The City of New York, the Company would not suffer any fiscal or other sanction
under applicable laws as a result of such appointment or of any payment being
made through such Paying Agent.
The Company may also from time to time designate one or more other
offices or agencies where the Securities of one or more series may be presented
or surrendered for any or all such purposes and may from time to time rescind
such designations; provided, however, that no such designation or rescission
shall in any manner relieve the Company of its obligation to maintain an office
or agency in accordance with the requirements set forth above for Securities of
any series for such purposes. The Company will give prompt written notice to the
Trustee and the Holders of any such designation or rescission and of any change
in the location of any such other office or agency.
10.3 MONEY FOR SECURITIES PAYMENTS TO BE HELD IN TRUST. If the Company
shall at any time act as its own Paying Agent with respect to any series of
Securities, it will, on or before each due date of the principal of (and
premium, if any) or interest, if any, on any of the Securities of that series,
segregate and hold in trust for the benefit of the Persons entitled thereto a
sum sufficient to pay the principal (and premium, if any) or interest, if any,
so becoming due until such sums shall be paid to such Persons or otherwise
disposed of as herein provided and will promptly notify the Trustee of its
action or failure so to act.
Whenever the Company shall have one or more Paying Agents "or any series
of Securities, it will, at or prior to the opening of business on each due date
of the principal of (and premium, if any) or interest, if any, on any Securities
of that series, deposit with a Paying Agent a sum sufficient to pay the
principal (and premium, if any) or interest, if any, so becoming due, such sum
to be held as provided by the Trust Indenture Act, and (unless such Paying Agent
is the Trustee) the Company will promptly notify the Trustee of its action or
failure so to act.
The Company will cause each Paying Agent for any series of Securities
other than the Trustee to execute and deliver to the Trustee an instrument in
which such Paying Agent shall agree with the Trustee, subject to the provisions
of this Section, that such Paying Agent will (i) comply with the provisions of
the Trust Indenture Act applicable to it as a Paying Agent and (ii) during the
continuance of any default by the Company (or any other obligor upon the
Securities of that series) in the making of any payment in respect of the
Securities of that series, and upon the written request of the Trustee,
forthwith pay to the Trustee all sums held in trust by such Paying Agent for
payment in respect of the Securities of that series.
Anything in this Section 10.3 to the contrary notwithstanding, the
Company may at any time, for the purpose of obtaining the satisfaction and
discharge of this Indenture or for any other purpose, pay, or by Company Order
direct any Paying Agent to pay, to the Trustee all sums held in trust by the
Company or such Paying Agent, such sums to be held by the Trustee upon the
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same trusts as those upon which such sums were held by the Company or such
Paying Agent; and, upon such payment by any Paying Agent to the Trustee, such
Paying Agent shall be released from all further liability with respect to such
money.
Any money deposited with the Trustee or any Paying Agent, or then held
by the Company, in trust for the payment of the principal of (and premium, if
any) or interest, if any, on any Security of any series and remaining unclaimed
for two years after such principal (and premium, if any) or interest has become
due and payable shall be paid to the Company, or (if then held by the Company)
shall be discharged from such trust; and the Holder of such Security and
Coupons, if any, shall thereafter, as an unsecured general creditor, look only
to the Company for payment thereof, and all liability of the Trustee or such
Paying Agent with respect to such trust money, and all liability of the Company
as trustee thereof, shall thereupon cease; provided, however, that the Trustee
or such Paying Agent, before being required to make any such repayment, shall at
the expense and at the written direction of the Company cause to be published
once, in a newspaper published in the English language, customarily published on
each Business Day and of general circulation in The City of New York, notice
that such money remains unclaimed and that, after a date specified herein, which
shall not be less than 30 days from the date of such publication, any unclaimed
balance of such money then remaining will be repaid to the Company.
10.4 ADDITIONAL AMOUNTS. If the Securities of a series provide for the
payment of additional amounts, the Company will pay to the Holder of any
Security of such series or any Coupon appertaining thereto additional amounts as
provided and subject to the conditions set forth therein. Whenever in this
Indenture there is mentioned, in any context, the payment of the principal of or
any premium or interest on, or in respect of, any Security of any series or
payment of any related Coupon or the net proceeds received on the sale or
exchange of any Security of any series, such mention shall be deemed to include
mention of the payment of additional amounts provided for in this Section to the
extent that, in such context, additional amounts are, were or would be payable
in respect thereof pursuant to the provisions of this Section and express
mention of the payment of additional amounts (if applicable) in any provisions
hereof shall not be construed as excluding additional amounts in those
provisions hereof where such express mention is not made.
If the Securities of a series provide for the payment of additional
amounts, at least 10 days prior to the first Interest Payment Date with respect
to that series of Securities (or if the Securities of that series will not bear
interest prior to Maturity, the first day on which a payment of principal and
any premium is made), and at least 10 days prior to each date of payment of
principal and any premium or interest if there has been any change with respect
to the matters set forth in the below-mentioned Officers' Certificate, the
Company will furnish the Trustee and the Company's Paying Agent or Paying
Agents, if other than the Trustee, with an Officers' Certificate instructing the
Trustee and such Paying Agent or Paying Agents whether such payment of principal
of and any premium or interest on the Securities of that series shall be made to
Holders of Securities of that series or any related Coupons who are United
States Aliens (as defined in the Securities) without withholding for or on
account of any tax, assessment or other governmental charge described in the
Securities of that series. If any such withholding shall be
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required, then such Officers' Certificate shall specify by country the amount,
if any, required to be withheld on such payments to such Holders of Securities
or Coupons and the Company will pay to the Trustee or such Paying Agent the
additional amounts required by this Section. The Company covenants to indemnify
the Trustee and any Paying Agent for, and to hold them harmless against, any
loss, liability or expense reasonably incurred without negligence or bad faith
on their part arising out of or in connection with actions taken or omitted by
any of them in reliance on an Officer's Certificate furnished pursuant to this
Section.
10.5 STATEMENT AS TO COMPLIANCE. On or before March 31 of each year
following the date hereof, the Company shall deliver to the Trustee a
certificate of the principal executive officer, principal financial officer or
principal accounting officer of the Company, stating whether or not to the best
knowledge of such officer the Company is in default in the performance and
observance of any of the terms, provisions and conditions of this Indenture
(without regard to any period of grace or requirement of notice provided
hereunder) and, if the Company shall be in default, specifying all such defaults
and the nature and status thereof of which such officer may have knowledge.
ARTICLE XI
REDEMPTION OF SECURITIES
11.1 APPLICABILITY OF ARTICLE. Securities (including any Coupons) of any
series which are redeemable before their Stated Maturity shall be redeemable in
accordance with their terms and (except as otherwise specified as contemplated
by Section 3.1 for Securities (including any Coupons of any series) in
accordance with this Article.
11.2 ELECTION TO REDEEM; NOTICE TO TRUSTEE. The election of the
Company to redeem any Securities (including any Coupons) shall be evidenced by a
Board Resolution or by an action taken pursuant to a Board Resolution. In case
of any redemption at the election of the Company of less than all the Securities
(including any Coupons) of any series, the Company shall, at least 60 days prior
to the Redemption Date fixed by the Company (unless a shorter notice shall be
satisfactory to the Trustee), notify the Trustee of such Redemption Date and of
the principal amount of Securities (including any Coupons) of such series to be
redeemed. In the case of any redemption of Securities (including any Coupons)
prior to the expiration of any restriction on such redemption provided in the
terms of such Securities (including any Coupons) or elsewhere in this Indenture,
the Company shall furnish the Trustee with an Officers' Certificate evidencing
compliance with such restriction.
11.3 SELECTION BY TRUSTEE OF SECURITIES TO BE REDEEMED. If less than
all the Securities (including any Coupons) of any series are to be redeemed, the
particular Securities (including any Coupons) to be redeemed shall be selected
not more than 60 days prior to the Redemption Date by the Trustee, from the
Outstanding Securities (including any Coupons) of such series not previously
called for redemption, by such method as the Trustee shall deem fair and
appropriate and which may provide for the selection for redemption of portions
(equal to the minimum authorized denomination for Securities(including any
Coupons) of that series or any integral multiple thereof) of the principal
amount of Securities (including any Coupons) of such
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series of a denomination larger than the minimum authorized denomination for
Securities (including any Coupons) of that series.
In any case where Securities (including any Coupons) of such series are
registered in the same name, the Trustee in its discretion may treat the
aggregate principal amount so registered as if it were represented by one
Security of such series. If the Securities of any series (including any Coupons)
to be redeemed consist of Securities having different Stated Maturities or
different rates of interest (or methods of computing interest), then the Company
may, in the written notice delivered to the Trustee pursuant to Section 11.2,
direct that the Securities (including any Coupons) of such series to be redeemed
shall be selected from among groups of such Securities having specified Stated
Maturities or rates of interest (or methods of computing interest) and the
Trustee shall thereafter select the particular Securities (including any
Coupons) to be redeemed in the manner set forth above from among the groups of
such Securities so specified.
The Trustee shall promptly notify the Company in writing of the
Securities (including any Coupons) selected for redemption and, in the case of
any Securities (including any Coupons) selected for partial redemption, the
principal amount thereof to be redeemed.
For all purposes of this Indenture, unless the context otherwise
requires, all provisions relating to the redemption of Securities (including any
Coupons) shall relate, in the case of any Securities (including any Coupons)
redeemed or to be redeemed only in part, to the portion of the principal amount
of such Securities (including any Coupons) which has been or is to be redeemed.
11.4 NOTICE OF REDEMPTION. Notice of redemption shall be given not
less than 30 nor more than 60 days prior to the Redemption Date, to each Holder
of Securities to be redeemed, as provided in Section 1.6.
Each such notice of redemption shall specify the Redemption Date, the
Redemption Price, the Place or Places of Payment, that the Securities of such
series are being redeemed at the option of the Company pursuant to provisions
contained in the terms of the Securities of such series or in a supplemental
indenture establishing such series, if such be the case, together with a brief
statement of the facts permitting such redemption, that on the Redemption Date
the Redemption Price will become due and payable upon each Security redeemed,
that payment will be made upon presentation and surrender of the applicable
Securities, that all Coupons, if any, maturing subsequent to the date fixed for
redemption shall be void, that any interest accrued to the Redemption Date will
be pa id as specified in said notice, and that on and after said Redemption Date
any interest thereon or on the portions thereof to be redeemed will cease to
accrue. If less than all the Securities of any series are to be redeemed the
notice of redemption shall specify the numbers of the Securities of such series
to be redeemed, and, if only Bearer Securities of any series are to be redeemed,
and if such Bearer Securities may be exchanged for Registered Securities, the
last date on which exchanges of Bearer Securities for Registered Securities not
subject to redemption may be made. In case any Security of any series is to be
redeemed in part only, the notice of redemption shall state the portion of the
principal amount thereof to be redeemed and shall state that on and after the
Redemption Date, upon surrender of
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such Security and any Coupons appertaining thereto, a new Security or Securities
of such series in principal amount equal to the unredeemed portion thereof and
with appropriate Coupons will be issued, or, in the case of Registered
Securities providing appropriate space for such notation, at the option of the
Holders, the Trustee, in lieu of delivering a new Security or Securities as
aforesaid, may make a notation on such Security of the payment of the redeemed
portion thereof.
Notice of redemption of Securities and Coupons, if any, to be redeemed
at the election of the Company shall be given by the Company or, at the
Company's request, by the Trustee in the name and at the expense of the Company.
11.5 DEPOSIT OF REDEMPTION PRICE. On or before the opening of business
on any Redemption Date, the Company shall deposit with the Trustee or with a
Paying Agent (or, if the Company is acting as its own Paying Agent, segregate
and hold in trust as provided in Section 10.3) an amount of money sufficient to
pay the Redemption Price of, and (except if the Redemption Date shall be an
Interest Payment Date) accrued interest on, all the Securities and Coupons, if
any, which are to be redeemed on that date.
11.6 SECURITIES PAYABLE ON REDEMPTION DATE. Notice of redemption
having been given as aforesaid, the Securities so to be redeemed shall, on the
Redemption Date, become due and payable at the Redemption Price therein
specified, and from and after such date (unless the Company shall default in the
payment of the Redemption Price and accrued interest, if any) such Securities
shall cease to bear interest and the Coupons for such interest appertaining to
any Bearer Securities so to be redeemed, except to the extent provided below,
shall be void. Upon surrender of any such Security for redemption in accordance
with said notice, together with all Coupons, if any, appertaining thereto
maturing after the Redemption Date, such Security shall be paid by the Company
at the Redemption Price, together with accrued interest, if any, to the
Redemption Date; provided, however, that installments of interest on Bearer
Securities whose Stated Maturity is on or prior to the Redemption Date shall be
payable only at an office or agency located outside the United States (except as
otherwise provided in Section 10.2) and, unless otherwise specified as
contemplated by Section 3.1, only upon presentation and surrender of Coupons for
such interest, and provided, further, that, unless otherwise specified as
contemplated by Section 3.1, installments of interest on Registered Securities
whose Stated Maturity is on or prior to the Redemption Date shall be payable to
the Holders of such Securities, or one or more Predecessor Securities,
registered as such at the close of business on the relevant Record Dates
according to their terms and the provisions of Section 3.7.
If any Bearer Security surrendered for redemption shall not be
accompanied by all appurtenant Coupons maturing after the Redemption Date, such
Security may be paid after deducting from the Redemption Price an amount equal
to the face amount of all such missing Coupons, or the surrender of such missing
Coupon or Coupons may be waived by the Company and the Trustee if there be
furnished to them such security or indemnity as they may require to save each of
them and any Paying Agent harmless. If thereafter the Holder of such Security
shall surrender to the Trustee or any Paying Agent any such missing Coupon in
respect of which a deduction shall have been made from the Redemption Price,
such Holder shall be entitled to receive the amount so deducted; provided,
however, that interest represented by Coupons shall
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be payable only at an office or agency located outside the United States (except
as otherwise provided in Section 10.2) and, unless otherwise specified as
contemplated by Section 3.1, only upon presentation and surrender of those
Coupons.
If any Security called for redemption shall not be so paid upon
surrender thereof for redemption, the principal and any premium shall, until
paid, bear interest from the Redemption Date at the rate prescribed therefor in
the Security (or, in the case of any Original Issue Discount Securities, the
Security's Yield to Maturity).
11.7 SECURITY REDEEMED IN PART. Any Security (including any Coupons
appertaining thereto) which is to be redeemed only in part shall be surrendered
at a Place of Payment therefor (with, if the Company or the Trustee so requires,
due endorsement by, or a written instrument of transfer in form satisfactory to
the Company and the Trustee duly executed by, the Holder thereof or his attorney
duly authorized in writing), and the Company shall execute, and the Trustee
shall authenticate and deliver to the Holder of such Security (including any
Coupons appertaining thereto) without service charge, a new Security (including
any Coupons appertaining thereto) or Securities (including any Coupons
appertaining thereto) of the same series and Stated Maturity and like tenor, of
any authorized denomination as requested by such Holder, in aggregate principal
amount equal to and in exchange for the unredeemed portion of the principal of
the Security (including any Coupons appertaining thereto) so surrendered.
ARTICLE XII
SINKING FUNDS
12.1 APPLICABILITY OF ARTICLE. The provisions of this Article shall be
applicable to any sinking fund for the retirement of Securities (including any
Coupons) of a series except as otherwise specified as contemplated by Section
3.1 for Securities (including any Coupons) of such series.
The minimum amount of any sinking fund payment provided for by the terms
of Securities (including any Coupons) of any series is herein referred to as a
"mandatory sinking fund payment", and any payment in excess of such minimum
amount provided for by the terms of Securities (including any Coupons) of any
series is herein referred to as an "optional sinking fund payment". If provided
for by the terms of Securities (including any Coupons) of any series, the cash
amount of any sinking fund payment may be subject to reduction as provided in
Section 12.2. Each sinking fund payment shall be applied to the redemption of
Securities (including any Coupons) of any series as provided for by the terms of
Securities (including any Coupons) of such series.
12.2 SATISFACTION OF SINKING FUND PAYMENTS WITH SECURITIES. The
Company (1) may deliver Outstanding Securities (including any Coupons) of a
series (other than any previously called for redemption) and (2) may apply as a
credit Securities (including any Coupons) of a series which have been redeemed
(or called for redemption and for which the Redemption Price, together with
accrued interest, if any, has been deposited pursuant to Section 11.5), either
at the election of the Company pursuant to the terms of such Securities
(including any Coupons) or through the application of permitted optional sinking
fund payments
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pursuant to the terms of such Securities (including any Coupons), in each case
in satisfaction of all or any part of any sinking fund payment with respect to
the Securities (including any Coupons) of such series required to be made
pursuant to the terms of such Securities (including any Coupons) as provided for
by the terms of such series; provided that such Securities (including any
Coupons) have not been previously so credited. Such Securities (including any
Coupons) shall be received and credited for such purpose by the Trustee at the
Redemption Price specified in such Securities (including any Coupons) for
redemption through operation of the sinking fund and the amount of such sinking
fund payment shall be reduced accordingly.
12.3 REDEMPTION OF SECURITIES FOR SINKING FUND. Not less than 60 days
prior to each sinking fund payment date for any series of Securities (including
any Coupons), the Company will deliver to the Trustee an Officers' Certificate
specifying the amount of the next ensuing sinking fund payment for that series
pursuant to the terms of that series, the portion thereof, if any, which is to
be satisfied by payment of cash and the portion thereof, if any, which is to be
satisfied by delivering and crediting Securities (including any Coupons) of that
series pursuant to Section 12.2 and the optional amount, if any, to be added in
cash to the next ensuing mandatory sinking fund payment, and will also deliver
to the Trustee any Securities (including any Coupons) to be so delivered. If
such Officers' Certificate shall specify an optional amount to be added in cash
to the next ensuing mandatory sinking fund payment, the Company shall thereupon
be obligated to pay the amount therein specified. Not less than 30 days before
each such sinking fund payment date the Trustee shall select the Securities
(including any Coupons) to be redeemed upon such sinking fund payment date in
the manner specified in Section 11.3 and cause notice of the redemption thereof
to be given in the name of and at the expense of the Company in the manner
provided in Section 11.4. Such notice having been duly given, the redemption of
such Securities (including any Coupons) shall be made upon the terms and in the
manner stated in Sections 11.6 and 11.7.
ARTICLE XIII
MEETINGS OF HOLDERS OF SECURITIES
13.1 PURPOSES FOR WHICH MEETINGS MAY BE CALLED. If Securities of a series are
issuable as Bearer Securities, a meeting of Holders of Securities of such series
may be called at any time and from time to time pursuant to this Article to
make, give or take any request, demand, authorization, direction, notice,
consent, waiver or other action provided by this Indenture to be made, given or
taken by Holders of Securities of such series.
13.2 CALL, NOTICE AND PLACE OF MEETINGS.
(a) The Trustee may at any time call a meeting of Holders of
Securities of any series for any purpose specified in Section 13.1, to be held
at such time and at such place in the Borough of Manhattan, The City of New
York, Chicago, Illinois or in London, England, as the Trustee shall determine.
Notice of every meeting of Holders of Securities of any series, setting forth
the time and the place of such meeting and in general terms the action proposed
to be taken at such meeting, shall be given, in the manner provided in Section
1.6, not less than 21 nor more than 180 days prior to the date fixed for the
meeting.
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(b) In case at any time the Company, by or pursuant to a Board
Resolution, or the Holders of at least 10% in principal amount of the
Outstanding Securities of any series shall have requested the Trustee to call a
meeting of the Holders of Securities of such series for any purpose specified in
Section 13.1, by written request setting forth in reasonable detail the action
proposed to be taken at the meeting, and the Trustee shall not have made the
first publication of the notice of such meeting within 21 days after receipt of
such request or shall not thereafter proceed to cause the meeting to be held as
provided herein, then the Company or the Holders of Securities of such series in
the amount above specified, as the case may be, may determine the time and the
place in the Borough of Manhattan, The City of New York, Chicago, Illinois or in
London, England for such meeting and may call such meeting for such purposes by
giving notice thereof as provided in subsection (a) of this Section.
13.3 PERSONS ENTITLED TO VOTE AT MEETINGS. To been titled to vote at
any meeting of Holders of Securities of any series, a Person shall be (1) a
Holder of one or more Outstanding Securities of such series, or (2) a Person
appointed by an instrument in writing as proxy for a Holder or Holders of one or
more Outstanding Securities of such series by such Holder or Holders. The only
Persons who shall be entitled to be present or to speak at any meeting of
Holders of Securities of any series shall be the Persons entitled to vote at
such meeting and their counsel, any representatives of the Trustee and its
counsel and any representatives of the Company and its counsel.
13.4 QUORUM; ACTION. The Persons entitled to vote a majority in
principal amount of the Outstanding Securities of a series shall constitute a
quorum for a meeting of Holders of Securities of such series. In the absence of
a quorum within 30 minutes of the time appointed for any such meeting, the
meeting shall, if convened at the request of Holders of Securities of such
series, be dissolved. In any other case the meeting may be adjourned for a
period of not less than 10 days as determined by the chairman of the meeting
prior to the adjournment of such meeting. In the absence of a quorum at any such
adjourned meeting, such adjourned meeting may be further adjourned for a period
of not less than 10 days as determined by the chairman of the meeting prior to
the adjournment of such adjourned meeting. Notice of the reconvening of any
adjourned meeting shall be given as provided in Section 13.2(a), except that
such notice need be given only once not less than five days prior to the date on
which the meeting is scheduled to be reconvened. Subject to the foregoing, at
the reconvening of any such further adjourned meeting, the Persons entitled to
vote 25% in aggregate principal amount of the Outstanding Securities of such
series shall constitute a quorum for the taking of any action set forth in the
notice of the original meeting. Notice of the reconvening of an adjourned
meeting which was adjourned for lack of a quorum shall state expressly the
percentage, as provided above, of the principal amount of the Outstanding
Securities of such series which shall constitute a quorum.
Except as limited by the proviso to Section 9.2, and subject to the
provisions described in the next succeeding paragraph, any resolution presented
to a meeting or adjourned meeting duly reconvened at which a quorum is present
as aforesaid may be adopted by the affirmative vote of the lesser of (i) the
Holders of a majority in principal amount of the Outstanding Securities of that
series and (ii) 66-2/3% in principal amount of Outstanding Securities of such
series represented and voting at such meeting or adjourned meeting; provided,
however, that any
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resolution with respect to any request, demand, authorization, direction,
notice, consent, waiver or other action which this Indenture expressly provides
may be made, given or taken by the Holders of a specified percentage, which is
less than a majority, in principal amount of the outstanding Securities of a
series may be adopted at a meeting or an adjourned meeting duly reconvened and
at which a quorum is present as aforesaid by the affirmative vote of the lesser
of (i) the Holders of such specified percentage in principal amount of the
Outstanding Securities of that series and (ii) a majority in principal amount of
Outstanding Securities of such series represented and voting at such meeting or
adjourned meeting. Any resolution passed or decision taken at any meeting of
Holders of Securities of any series duly held in accordance with this Section
shall be binding on all the Holders of Securities of such series and the related
Coupons, whether or not present or represented at the meeting.
With respect to any consent, waiver or other action which this Indenture
expressly provides may be given by the Holders of a specified percentage of
Outstanding Securities of all series affected thereby (acting as one class),
only the principal amount of Outstanding Securities of any series represented at
a meeting or adjourned meeting duly reconvened at which a quorum was present,
held in accordance with this Section, and voting in favor of such action, shall
be counted for purposes of calculating the aggregate principal amount of
Outstanding Securities of all series affected thereby favoring such action.
13.5 DETERMINATION OF VOTING RIGHTS; CONDUCT AND ADJOURNMENT OF
MEETINGS.
(a) Notwithstanding any other provisions of this Indenture,
the Trustee may make such reasonable regulations as it may deem advisable for
any meeting of Holders of Securities of a series in regard to proof of the
holding of Securities of such series and of the appointment of proxies and in
regard to the appointment and duties of inspectors of votes, the submission and
examination of proxies, certificates and other evidence of the right to vote,
and such other matters concerning the conduct of the meeting as it shall deem
appropriate. Except as otherwise permitted or required by any such regulations,
the holding of Securities shall be proved in the manner specified in Section 1.4
and the appointment of any proxy shall be proved in the manner specified in
Section 1.4 or by having the signature of the person executing the proxy
witnessed or guaranteed by any trust company, bank or banker authorized by
Section 1.4 to certify to the holder of Bearer Securities. Such regulations may
provide that written instruments appointing proxies, regular on their face, may
be presumed valid and genuine without the proof specified in Section 1.4 or
other proof.
(b) The Trustee shall, by an instrument in writing, appoint a
temporary chairman of the meeting, unless the meeting shall have been called by
the Company or by Holders of Securities as provided in Section 13.2(b), in which
case the Company or the Holders of Securities of the series calling the meeting,
as the case may be, shall in like manner appoint a temporary chairman. A
permanent chairman and a permanent secretary of the meeting shall be elected by
vote of the Persons entitled to vote a majority in principal amount of the
Outstanding Securities of such series represented at the meeting.
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(c) At any meeting each Holder of a Security of such series or
proxy shall be entitled to one vote for each $1,000 principal amount of the
Outstanding Securities of such series held or represented by him; provided,
however, that no vote shall be cast or counted at any meeting in respect of any
Security challenged as not Outstanding and ruled by the chairman of the meeting
to be not Outstanding. The chairman of the meeting shall have no right to vote,
except as a Holder of a Security of such series or proxy.
(d) Any meeting of Holders of Securities of any series duly
called pursuant to Section 13.2 at which a quorum is present may be adjourned
from time to time by Persons entitled to vote a majority in principal amount of
the Outstanding Securities of such series represented at the meeting; and the
meeting may be held as so adjourned without further notice.
13.6 COUNTING VOTES AND RECORDING ACTION OF MEETINGS. The vote upon
any resolution submitted to any meeting of Holders of Securities of any series
shall be by written ballots on which shall be subscribed the signatures of the
Holders of Securities of such series or of their representatives by proxy and
the principal amounts and serial numbers of the Outstanding Securities of such
series held or represented by them. The permanent chairman of the meeting shall
appoint two inspectors of votes who shall count all votes cast at the meeting
for or against any resolution and who shall make and file with the secretary of
the meeting their verified written reports in duplicate of all votes cast at the
meeting. A record, at least in duplicate, of the proceedings of each meeting of
Holders of Securities of any series shall be prepared by the secretary of the
meeting and there shall be attached to said record the original reports of the
inspectors of votes on any vote by ballot taken thereat and affidavits by one or
more persons having knowledge of the facts setting forth a copy of the notice of
the meeting and showing that said notice was given as provided in Section 13.2
and, if applicable, Section 13.4. Each copy shall be signed and verified by the
affidavits of the permanent chairman and secretary of the meeting and one such
copy shall be delivered to the Company, and another to the Trustee to be
preserved by the Trustee, the latter to have attached thereto the ballots voted
at the meeting. Any record so signed and verified shall be conclusive evidence
of the matters therein stated.
ARTICLE XIV
IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS
14.1 IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS. No
recourse shall be had for the payment of the principal of (or premium, if any,
on) or interest, if any, on, any Security of any series (or any Coupon
appertaining thereto), or any part thereof, or for any claim based thereon or
otherwise in respect thereof, or of the indebtedness represented thereby, or
upon any obligation, covenant or agreement of this Indenture, against any
incorporator, direct or indirect stockholder, officer or director, as such,
past, present or future, of the Company, or of any successor corporation, either
directly or through the Company or any successor corporation, whether by virtue
of any constitutional provision, statute or rule of law, or by the enforcement
of any assessment or penalty or otherwise; it being expressly agreed and
understood that this Indenture and all the Securities of all series (and any
Coupons appertaining thereto) are solely corporate obligations, and that no
personal liability whatsoever shall attach to, or be incurred by,
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any incorporator, direct or indirect stockholder, officer or director, as such,
past, present or future, of the Company or of any successor corporation, either
directly or through the Company or any successor corporation, because of the
incurring of the indebtedness hereby authorized or under or by reason of any of
the obligations, covenants, promises or agreements contained in this Indenture
or in any of the Securities of any series (or any Coupons appertaining thereto)
or to be implied here from or therefrom, and that all liability, if any, of that
character against every such incorporator, stockholder, officer and director is,
by the acceptance of the Securities of any series (or any Coupons appertaining
thereto), and as a condition of, and as part of the consideration for, the
execution of this Indenture and the issue of the Securities (and any Coupons
appertaining thereto), expressly waived and released.
ARTICLE XV
SUBORDINATION
15.1 AGREEMENT TO SUBORDINATE. Anything to the contrary herein
notwithstanding, the Company covenants and agrees, and each Holder of Securities
of any series (or any Coupons appertaining thereto) by acceptance thereof
likewise covenants and agrees, that the indebtedness represented by the
Securities of such series (and any Coupons appertaining thereto) and the payment
of the principal of (and premium, if any, on) and interest, if any, on each and
all of the Securities of such series (and any Coupons appertaining thereto)
shall be subordinate and junior in right of payment, to the extent and in the
manner hereinafter set forth, to the prior payment in full of all Senior Debt
(as defined below), whether outstanding at the date hereof or incurred after the
date hereof, but shall in all respects rank pari passu with all other
Subordinated Debt (as defined below) other than the Junior Subordinated Notes
(as defined below).
15.2 NO PAYMENTS TO HOLDERS OF SECURITIES IN CERTAIN CIRCUMSTANCES.
(a) In the event of any sale under or in accordance with any
judgment or decree rendered in any proceeding by or on behalf of any Holder of
Securities (or any Coupons appertaining thereto) or in the event of any
distribution, division or application, partial or complete, voluntary or
involuntary, by operation of law or otherwise, of all or any part of the assets
of the Company, or the proceeds thereof, to creditors of the Company occurring
by reason of any liquidation, dissolution or winding up of the Company, or in
the event of any receivership, insolvency, bankruptcy, liquidation,
readjustment, reorganization or other similar proceeding relative to the Company
or its debts or properties, then in any such event the holders of any and all
Senior Debt shall be preferred in the payment of their claims over the Holders
of Securities (or any Coupons appertaining thereto), and such Senior Debt shall
be first paid and satisfied in full before any payment or distribution of any
kind or character, whether in cash, property or securities (other than
securities which are subordinate and junior in right of payment to the payment
of all Senior Debt which may at the time be outstanding), shall be made upon the
Securities (or any Coupons appertaining thereto); and in any such event any
dividend or distribution of any kind or character, whether in cash, property or
securities (other than in securities which are subordinate and junior in right
of payment to the payment of all Senior Debt which may at the time be
outstanding) which shall be made upon or in respect of the
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indebtedness evidenced by the Securities (or any Coupons appertaining thereto),
or any renewals or extensions thereof, shall be paid over to the holders of such
Senior Debt, pro rata, for application in payment thereof unless and until such
Senior Debt shall have been paid and satisfied in full; and
(b) In the event that pursuant to the provisions hereof any
Security is declared or becomes due and payable before its Stated Maturity
because of an occurrence of an Event of Default (under circumstances when
paragraph (a) of this Section 15.2 shall not be applicable), no amount shall be
paid by the Company in respect of the principal of or interest, if any, on the
Securities (or any Coupons appertaining thereto) in excess of current interest
payments as provided herein, except at the Stated Maturity thereof or in
accordance with any regular mandatory prepayments as contemplated by Section 3.1
for Securities of any series (or any Coupons appertaining thereto) (all subject
to paragraph (a) of this Section 15.2), unless and until all Senior Debt
outstanding at the time such Security so becomes due and payable because of any
such event shall have been paid in full or payment thereof shall have been
provided for in a manner satisfactory to the holders of such outstanding Senior
Debt; and
(c) without limiting the effect of any of the other provisions
of this Article XV, during the continuance of any default with respect to any
Senior Debt, no payment of principal, sinking fund, interest or premium shall be
made on or with respect to the indebtedness evidenced by the Securities (or any
Coupons appertaining thereto) or any renewals or extensions hereof, if either
(l) notice of such default in writing or by telegram has been given to the
Company by any holder or holders of any Senior Debt, provided that judicial
proceedings shall be commenced with respect to such default within 120 days
thereafter or (2) judicial proceedings shall be pending in respect of such
default.
The Company covenants and agrees, for the benefit of each and every
present and future holder of Senior Debt, that in the event that pursuant to the
provisions hereof any Security is declared or becomes due and payable because of
an occurrence of an Event of Default, then each holder of any Senior Debt then
outstanding shall have the right to declare immediately due and payable on
demand all or any part of such Senior Debt owing and payable to such holder,
regardless of any other maturity or terms of said Senior Debt; and if and when
any such default has occurred, or any notice of default under the terms hereof
may be served upon the Company, then in each such event the Company shall and
hereby agrees that it will immediately notify the holders of the Senior Debt of
such default or notice thereof, as the case may be.
15.3 PAYMENTS BY TRUSTEE OR HOLDERS OF SECURITIES TO HOLDERS OF SENIOR
DEBT. In the event that any payment by, or distribution of assets of, the
Company of any kind or character, whether in cash, property or securities, shall
be received by the Trustee or the Holders of Securities (or any Coupons
appertaining thereto) before all Senior Debt is paid in full, contrary to the
provisions of Section 15.2, such payment or distribution shall be paid over to
the holders of such Senior Debt or their representative or representatives or to
the trustee or trustees under any indenture under which any instruments
evidencing any of such Senior Debt may have been issued, ratably as aforesaid,
for application to the payment of all Senior Debt remaining unpaid
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until all such Senior Debt shall have been paid in full, after giving effect to
any concurrent payment or distribution (or provision therefor) to the holders of
such Senior Debt.
15.4 SUBROGATION. Subject to the payment in full of all Senior Debt,
the Holders of Securities land any Coupons appertaining thereto) shall be
subrogated to the rights of the holders of Senior Debt to receive payments or
distributions of cash, property or securities of the Company applicable to the
Senior Debt until all amounts owing on the Securities (and any Coupons
appertaining thereto) shall be paid in full, and, as between the Company, its
creditors other than holders of Senior Debt, and the Holders of Securities (and
any Coupons appertaining thereto), no such payment or distribution made to the
holders of Senior Debt by virtue of this Article XV which otherwise would have
been made to the Holders of Securities (and any Coupons appertaining thereto)
shall be deemed to be a payment by the Company on account of the Senior Debt, it
being understood that the provisions of this Article XV are and are intended
solely for the purpose of defining the relative rights of the Holders of
Securities (and any Coupons appertaining thereto), on the one hand, and the
holders of Senior Debt, on the other hand.
15.5 OBLIGATION OF COMPANY UNCONDITIONAL. Nothing herein shall impair,
as between the Company and the Holders of Securities (and any Coupons
appertaining thereto), the right of the Holder of any Security or any Coupon,
which is absolute and unconditional, to receive payment of the principal (and
premium, if any) and interest, if any, thereon in accordance with their terms,
or shall prevent the Trustee or any Paying Agent from applying any moneys
deposited with it hereunder to the payment of principal of (or premium, if any)
or interest, if any, on any of the Securities (or any Coupons appertaining
thereto), in each case except as otherwise provided in this Article XV, nor
shall anything herein prevent any Holder of Securities (or any Coupons
appertaining thereto) from exercising all remedies otherwise permitted by
applicable law or hereunder upon default hereunder, subject to the rights, if
any, of holders of Senior Debt as herein provided. Each and every holder of
Securities (or any Coupons appertaining thereto) by acceptance thereof shall
undertake and agree for the benefit of each holder of Senior Debt to execute,
verify, deliver and file any proofs of claim, consents, assignments or other
instruments which any holder of Senior Debt may at any time require in order to
prove and realize upon any rights or claims pertaining to the Securities (or any
Coupons appertaining thereto) and to effectuate the full benefit of the
subordination contained in this Article XV.
Upon any payment or distribution of assets of the Company referred to in
this Article XV, the Trustee and the Holders of Securities (or any Coupons
appertaining thereto) shall be entitled to rely upon any order or decree made by
any court of competent jurisdiction in which any such dissolution, winding up,
liquidation or reorganization proceeding affecting the affairs of the Company is
pending or upon a certificate of the liquidating trustee or agent or other
person making any payment or distribution to the Trustee or to the Holders of
Securities (or any Coupons appertaining thereto) for the purpose of ascertaining
the persons entitled to participate in such payment or distribution, the holders
of the Senior Debt and other indebtedness of the Company, the amount thereof or
payable thereon, the amount paid or distributed thereon and all other facts
pertinent thereto or to this Article XV. 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
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Senior Debt to participate in any payment or distribution pursuant to this
Article XV, the Trustee may request such person to furnish evidence to the
reasonable satisfaction of the Trustee as to the amount of Senior Debt held by
such person, as to the extent to which such person is entitled to participate in
such payment or distribution, and as to other facts pertinent to the rights of
such person under this Article XV, 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.
15.6 PAYMENTS ON SECURITIES PERMITTED. Nothing contained in this
Article XV or elsewhere in this Indenture, or in any of the Securities (or any
Coupons appertaining thereto), shall (a) affect the obligation of the Company to
make, or prevent the Company from making, at any time except in the event of any
event specified in Section 15.2, payments at any time of principal of (or
premium, if any) or interest, if any, on the Securities of any series (or any
Coupons appertaining thereto) or of any sinking fund payments with respect to
the Securities of any series, or (b) prevent the application by the Trustee or
any Paying Agent of any moneys held by the Trustee or such Paying Agent in trust
for the benefit of the holders of Securities of any series (and any Coupons
appertaining thereto) as to which notice of redemption shall have been mailed or
published at least once prior to the happening of an event specified in
paragraph (b) or (c) of Section 15.2 to the payment of or on account of the
principal of (and premium, if any on) and interest, if any, on such Securities
(and any Coupons appertaining thereto), or (c) prevent the application by the
Trustee or any Paying Agent of any moneys deposited prior to the happening of
any event specified in paragraph (b) or (c) of Section 15.2 with the Trustee or
such Paying Agent in trust for the purpose of paying a specified installment or
installments of interest on the Securities of any series (or any Coupons
appertaining thereto), to the payment of such installments of interest on the
Securities of any series (or any Coupons appertaining thereto).
15.7 EFFECTUATION OF SUBORDINATION BY TRUSTEE. Each holder of
Securities (or any Coupons appertaining thereto), by his acceptance thereof,
authorizes and directs the Trustee in his behalf to take such action as may be
necessary or appropriate to effectuate the subordination provided in this
Article XV and appoints the Trustee his attorney-in-fact for any and all such
purposes.
The Trustee shall not be deemed to owe any fiduciary duty to the holders
of Senior Debt and, with respect to the holders of Senior Debt, the Trustee
undertakes to perform or to observe only such of its covenants and obligations
as are specifically set forth in this Article XV, and no implied covenants or
obligations with respect to the holders of Senior Debt shall be read into this
Indenture against the Trustee. Subject to the provisions of Section 6.1, the
Trustee shall not be liable to any holder of Senior Debt if it shall mistakenly
pay over or deliver to holders of Securities (or any Coupons appertaining
thereto), the Company or any other person moneys or assets to which any holder
of Senior Debt shall be entitled by virtue of this Article XV or otherwise.
15.8 KNOWLEDGE OF TRUSTEE. Notwithstanding the provisions of this
Article XV or any other provisions 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 of moneys to or by the
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Trustee, or the taking of any other action by the Trustee, unless and until the
Trustee shall have received written notice thereof from the Company, any Holder,
any Paying Agent or the holder or representative of any class of Senior Debt.
Prior to the receipt of any such written notice, the Trustee, subject to
the provisions of Section 6.1, shall be entitled in all respects to assume that
no such facts exist; provided, that if on a date not less than one day prior to
the date upon which by the terms hereof any such moneys may become payable for
any purpose (including, without limitation, the payment of the principal of or
interest, if any, on any Securities (or any Coupons appertaining thereto)), the
Trustee shall not have received with respect to such moneys the notice provided
for in this Section 15.8, then, anything herein contained to the contrary
notwithstanding, the Trustee shall have full power and authority to receive such
moneys and to apply the same to the purpose for which they were received, and
shall not be affected by any notice to the contrary which may be received by it
on or after such prior date.
15.9 TRUSTEE MAY HOLD SENIOR DEBT. The Trustee shall be entitled to
all the rights set forth in this Article XV with respect to any Senior Debt at
the time held by it, to the same extent as any other holder of Senior Debt, and
nothing in Section 6.13 or elsewhere in this Indenture shall deprive the Trustee
of any of its rights as such holder.
15.10 RIGHTS OF HOLDERS OF SENIOR DEBT NOT IMPAIRED. No right of any
present or future holder of any Senior Debt to enforce the subordination herein
shall at any time or in any way be prejudiced or impaired by any act or failure
to act on the part of the Company 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.
15.11 RIGHTS AND OBLIGATIONS SUBJECT TO POWER OF COURT. The right of
the holders of Senior Debt and the obligations of the Trustee and the Holders of
Securities (and any Coupons appertaining thereto) set forth in this Article XV
are subject to the power of a court of competent jurisdiction to make other
equitable provision reflecting the rights conferred in this Indenture upon the
Senior Debt and the holders thereof with respect to the Securities (and any
Coupons appertaining thereto) and the holders thereof by a plan of
reorganization under applicable bankruptcy law.
15.12 DEFINITIONS. The following terms shall have the following
meanings:
"Junior Subordinated Notes" means the Company's 8.375% Junior
Subordinated Debentures due 2027, its 8.206% Subordinated Deferrable
Interest Notes due 2027, its 8.36% Subordinated Notes due 2026 and its
8.25% Subordinated Deferrable Interest Notes due 2025.
"Senior Debt" means all Debt of the Company except Junior
Subordinated Notes and Subordinated Debt.
"Subordinated Debt" means the Company's 9.875% Senior
Subordinated Notes Due 1999 and 7.875% Senior Subordinated Notes Due
2004 and any other Debt which is subordinate and junior in right of
payment to any other Debt of the Company by the terms of the instrument
creating or evidencing such Subordinated Debt and senior to the Junior
Subordinated Notes.
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EXHIBIT A
[FORMS OF CERTIFICATION]
[FORM OF CERTIFICATE TO BE GIVEN BY PERSON ENTITLED TO RECEIVE BEARER
SECURITY OR TO OBTAIN INTEREST PRIOR TO AN EXCHANGE DATE]
EXHIBIT A.1. WASHINGTON MUTUAL, INC.
[INSERT TITLE OR SUFFICIENT DESCRIPTION
OF SECURITIES TO BE DELIVERED]
(THE "SECURITIES")
This is to certify that, as of the date hereof, and except as set forth
below, the above-referenced Securities held by you for our account are owned by
(i) (a) persons that are not individual citizens or residents of the United
States, (b) a corporation or partnership organized in or under the laws of the
United States or any state thereof or the District of Columbia, (c) an estate or
trust the income of which is subject to United States federal income taxation
regardless of its source or (d) a trust the administration of which is subject
to the primary supervision of a court within the United States and for which one
or more United States fiduciaries have the authority to control all substantial
decisions ("United States persons"), (ii) United States persons that (a) are
foreign branches of United States financial institutions (as defined in U.S.
Treasury Regulations Section 1.165-12 (c) (1) (v) ) ("financial institutions")
purchasing for their own accounts or for resale or (b) acquired the Securities
through foreign branches of United States financial institutions and that hold
the Securities through such United States financial institutions on the date
hereof (and in the case of either (a) or (b), each such United States financial
institution hereby agrees, on its own behalf or through its agent, that you may
advise the issuer or the issuer's agent that it will comply with, the
requirements of Section 165(j)(3)(A), (B) or (C) of the United States Internal
Revenue Code of 1986, as amended, and the regulations thereunder), or (iii)
financial institutions for purposes of resale during the restricted period (as
defined in U.S. Treasury Regulations Section 1.163-5(c)(2)(i)(D)(7)), and in
addition, if we are a financial institution described in this clause (iii)
(whether or not also described in clause (i) or (ii)), we certify that we have
not acquired the Securities for purposes of resale directly or indirectly to a
United States person or to a person within the United States.
As used herein, "United States" means the United States of America
(including the States and the District of Columbia), its territories, its
possessions, the Commonwealth of Puerto Rico, and other areas subject to its
jurisdiction.
We undertake to advise you promptly by tested telex on or prior to the date on
which you intend to submit your certification relating to the Securities held by
you for our account in accordance with your Operating Procedures if any
applicable statement herein is not correct on
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such date and, in the absence of any such notification, it may be
assumed that this Certification applies as of such date.
This certification excepts and does not relate to $____________
principal amount of such Securities, in respect of which we are not able to
certify as above and as to which we understand exchange and delivery of
definitive Securities (or, if relevant, exercise of any rights or collection of
any interest) cannot be made until we do so certify.
We understand that this certification is required in connection with
certain tax laws of the United States. In connection therewith, if
administrative or legal proceedings are commenced or threatened in connection
with which this certification is or would be relevant, we irrevocably authorize
you to produce this certification to any interested party in such proceedings.
Dated: ______________________________________________
[To be dated no earlier than 15 days prior
to the Exchange Date or the first interest
payment date prior to the Exchange Date,
as relevant]
By: ______________________________________________
As, or as agent for, the beneficial owner(s)
of the Securities to which this certificate
relates.
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EXHIBIT A.2
[FORM OF CERTIFICATE TO BE GIVEN BY EURO-CLEAR OR CEDEL, S.A. IN
CONNECTION WITH THE EXCHANGE OF A PORTION OF A TEMPORARY
GLOBAL SECURITY OR TO OBTAIN INTEREST PRIOR TO AN EXCHANGE DATE]
WASHINGTON MUTUAL, INC.
[Insert title or sufficient description
of Securities to be delivered]
(the "Securities")
This is to certify that, based solely on certifications we have received
in writing, by tested telex or by electronic transmission from member
organizations appearing in our records as persons being entitled to a portion of
the principal amount set forth below (our "Member Organizations"), substantially
as set forth in the Temporary Global Security with respect to the Securities, as
of the date hereof, $____________ principal amount of the above-captioned
Securities is owned by (i) (a) persons that are not individual citizens or
residents of the United States, (b) a corporation or partnership organized in or
under the laws of the United States or any state thereof or the District of
Columbia, (c) an estate or trust the income of which is subject to United States
federal income taxation regardless of its source or (d) a trust the
administration of which is subject to the primary supervision of a court within
the United States and for which one or more United States fiduciaries have the
authority to control all substantial decisions ("United States persons"), (ii)
United States persons that (a) are foreign branches of United States financial
institutions (as defined in U.S. Treasury Regulations Section 1.165-12(c)(1)(v))
("financial institutions") purchasing for their own accounts or for resale or
(b) acquired the Securities through foreign branches of United States financial
institutions and that hold the Securities through such United States financial
institutions on the date hereof (and in the case of either (a) or (b), each such
United States financial institution has agreed, on its own behalf or through its
agent, that we may advise the issuer or the issuer's agent that it will comply
with the requirements of Section 165(j)(3)(A), (B) or (C) of the United States
Internal Revenue Code of 1986, as amended, and the regulations thereunder), or
(iii) financial institutions for purposes of resale during the restricted period
(as defined in U.S. Treasury Regulations Section 1.163-5(c)(2)(i)(D)(7)), which
financial institutions described in this clause (iii) whether or not also
described in clause (i) or (ii)) have certified that they have not acquired the
Securities for purposes of resale directly or indirectly to a United States
person or to a person within the United States.
As used herein, "United States" means the United States of America
(including the States and the District of Columbia), its territories, its
possessions, the Commonwealth of Puerto Rico and other areas subject to its
jurisdiction.
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We further certify (i) that we are not making available herewith for
exchange (or, if relevant, exercise of any rights or collection of any interest)
any portion of the Temporary Global Security excepted in such certifications and
(ii) that as of the date hereof we have not received any notification from any
of our Member Organizations to the effect that the statements made by such
Member Organizations with respect to any portion of the part submitted herewith
for exchange (or, if relevant, exercise of any rights or collection of any
interest) are no longer true and cannot be relied upon as the date hereof.
We understand that this certification is required in connection with
certain tax laws of the United States. In connection therewith, if
administrative or legal proceedings are commenced or threatened in connection
with which this certification is or would be relevant, we irrevocably authorize
you to produce this certification to any interested party in such
*Dated: ________________, 199__ Yours faithfully,
MORGAN GUARANTY TRUST COMPANY OF
NEW YORK, Brussels office as operator
of the Euro-clear System
or
CEDEL, S.A.
By: ___________________________________
* [Not earlier than the Exchange
Date or the first interest payment
date prior to the Exchange Date,
as relevant.]
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TABLE OF CONTENTS
<TABLE>
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ARTICLE I Definitions and Other Provisions of General Application............................1
1.1 Definitions......................................................................1
1.2 Compliance Certificates and Opinions.............................................6
1.3 Form of Documents Delivered to Trustee...........................................7
1.4 Acts of Holders; Record Dates....................................................7
1.5 Notices, etc., to Trustee and Company............................................9
1.6 Notice to Holders; Waiver........................................................9
1.7 Conflict with Trust Indenture Act...............................................10
1.8 Effect of Headings and Table of Contents........................................10
1.9 Successors and Assigns..........................................................10
1.10 Separability Clause............................................................10
1.11 Benefits of Indenture..........................................................10
1.12 Governing Law..................................................................11
1.13 Legal Holidays.................................................................11
1.14 Language of Notices, Etc.......................................................11
1.15 Counterparts...................................................................11
ARTICLE II Security Forms...................................................................11
2.1 Forms Generally.................................................................11
2.2 Form of Trustee's Certificate of Authentication.................................12
2.3 Securities in Global Form.......................................................12
ARTICLE III The Securities..................................................................13
3.1 Amount Unlimited; Issuable in Series............................................13
3.2 Denominations...................................................................16
3.3 Execution, Authentication, Delivery and Dating..................................16
3.4 Temporary Securities............................................................18
3.5 Registration, Registration of Transfer and Exchange.............................20
3.6 Mutilated, Destroyed, Lost and Stolen Securities................................24
3.7 Payment of Interest; Interest Rights Preserved..................................25
3.8 Persons Deemed Owners...........................................................26
3.9 Cancellation....................................................................27
3.10 Computation of Interest........................................................27
3.11 Manner of Payments in Respect of Securities....................................27
3.12 Compliance with Certain Laws and Regulations...................................28
ARTICLE IV Satisfaction and Discharge.......................................................28
4.1 Satisfaction and Discharge of Indenture.........................................28
</TABLE>
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(CONTINUED)
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4.2 Application of Trust Money......................................................29
4.3 Satisfaction, Discharge and Defeasances of Securities of Any Series.............30
4.4 Reinstatement...................................................................31
4.5 Definitions.....................................................................31
ARTICLE V Remedies..........................................................................32
5.1 Events of Default...............................................................32
5.2 Acceleration of Maturity; Rescission and Annulment..............................33
5.3 Collection of Indebtedness and Suits for Enforcement by Trustee.................34
5.4 Trustee May File Proofs of Claim................................................35
5.5 Trustee May Enforce Claims Without Possession of Securities.....................35
5.6 Application of Money Collected..................................................35
5.7 Limitation on Suits.............................................................36
5.8 Unconditional Right of Holders to Receive Principal, Premium and interest.......36
5.9 Restoration of Rights and Remedies..............................................36
5.10 Rights and Remedies Cumulative.................................................37
5.11 Delay or Omission Not Waiver...................................................37
5.12 Control by Holders.............................................................37
5.13 Waiver of Past Defaults........................................................37
5.14 Undertaking for Costs..........................................................38
ARTICLE VI The Trustee......................................................................38
6.1 Certain Duties and Responsibilities.............................................38
6.2 Notice of Defaults..............................................................39
6.3 Certain Rights of Trustee.......................................................39
6.4 Not Responsible for Recitals or Issuance of Securities..........................41
6.5 May Hold Securities.............................................................41
6.6 Money Held in Trust.............................................................41
6.7 Compensation and Reimbursement..................................................41
6.8 Disqualification; Conflicting Interests.........................................42
6.9 Corporate Trustee Required; Eligibility.........................................42
6.10 Resignation and Removal; Appointment of Successor..............................42
6.11 Acceptance of Appointment by Successor.........................................44
6.12 Merger, Conversion, Consolidation or Succession to Business....................45
6.13 Preferential Collection of Claims Against Company..............................45
6.14 Appointment of Authenticating Agent............................................45
ARTICLE VII Holders' Lists and Reports by Trustee and Company...............................47
7.1 Company To Furnish Trustee Names and Addresses of Holders.......................47
7.2 Preservation of Information; Communications to Holders..........................47
</TABLE>
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(CONTINUED)
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7.3 Reports by Trustee..............................................................48
7.4 Reports by Company..............................................................48
ARTICLE VIII Consolidation, Merger, Conveyance, Transfer or Lease...........................48
8.1 Company May Consolidate, Etc....................................................48
8.2 Successor Corporation Substituted...............................................49
ARTICLE IX Supplemental Indentures..........................................................49
9.1 Supplemental Indentures Without Consent of Holders..............................49
9.2 Supplemental Indentures With Consent of Holders.................................51
9.3 Execution of Supplemental Indentures............................................52
9.4 Effect of Supplemental Indentures...............................................52
9.5 Conformity With Trust Indenture Act.............................................52
9.6 Reference in Securities to Supplemental Indentures..............................52
ARTICLE X Covenants.........................................................................52
10.1 Payment of Principal, Premium and Interest.....................................53
10.2 Maintenance of Office or Agency................................................53
10.3 Money for Securities Payments to be Held in Trust..............................54
10.4 Additional Amounts.............................................................55
10.5 Statement as to Compliance.....................................................56
ARTICLE XI Redemption of Securities.........................................................56
11.1 Applicability of Article.......................................................56
11.2 Election to Redeem; Notice to Trustee..........................................56
11.3 Selection by Trustee of Securities to be Redeemed..............................57
11.4 Notice of Redemption...........................................................57
11.5 Deposit of Redemption Price....................................................58
11.6 Securities Payable on Redemption Date..........................................58
11.7 Security Redeemed in Part......................................................59
ARTICLE XII Sinking Funds...................................................................59
12.1 Applicability of Article.......................................................59
12.2 Satisfaction of Sinking Fund Payments With Securities..........................60
12.3 Redemption of Securities for Sinking Fund......................................60
ARTICLE XIII Meetings of Holders of Securities..............................................61
13.1 Purposes for Which Meetings May Be Called......................................61
13.2 Call, Notice and Place of Meetings.............................................61
</TABLE>
iii
<PAGE> 77
TABLE OF CONTENTS
(CONTINUED)
<TABLE>
<CAPTION>
PAGE
----
<S> <C> <C>
13.3 Persons Entitled To Vote at Meetings...........................................61
13.4 Quorum; Action.................................................................61
13.5 Determination of Voting Rights; Conduct and Adjournment of Meetings............62
13.6 Counting Votes and Recording Action of Meetings................................63
ARTICLE XIV Immunity of Incorporators, Stockholders, Officers and Directors.................64
14.1 Immunity of Incorporators, Stockholders, Officers and Directors................64
ARTICLE XV Subordination....................................................................64
15.1 Agreement to Subordinate.......................................................64
15.2 No Payments to Holders of Securities in Certain Circumstances..................65
15.3 Payments by Trustee or Holders of Securities to Holders of Senior Debt.........66
15.4 Subrogation....................................................................66
15.5 Obligation of Company Unconditional............................................66
15.6 Payments on Securities Permitted...............................................67
15.7 Effectuation of Subordination by Trustee.......................................68
15.8 Knowledge of Trustee...........................................................68
15.9 Trustee May Hold Senior Debt...................................................68
15.10 Rights of Holders of Senior Debt Not Impaired.................................68
15.11 Rights and Obligations Subject to Power of Court..............................69
15.12 Definitions...................................................................69
EXHIBIT A [FORMS OF CERTIFICATION]...........................................................1
EXHIBIT A.1. WASHINGTON MUTUAL, INC. [Insert title or sufficient description of
Securities to be delivered] (the "Securities")...............................................1
EXHIBIT A.2 [FORM OF CERTIFICATE TO BE GIVEN BY EURO-CLEAR OR CEDEL,
S.A. IN CONNECTION WITH THE EXCHANGE OF A PORTION OF A TEMPORARY
GLOBAL SECURITY OR TO OBTAIN INTEREST PRIOR TO AN EXCHANGE DATE].............................3
</TABLE>
iv
<PAGE> 1
EXHIBIT 5.1
June 16, 1999
Washington Mutual, Inc.
1201 Third Avenue
Seattle, Washington 98101
Re: Washington Mutual, Inc. -- Registration Statement on Form
S-3 with respect to $1,000,000,000 aggregate principal amount of Debt
Securities
Ladies and Gentlemen:
We have acted as counsel to Washington Mutual, Inc., a Washington
corporation (the "Company"), in connection with the filing by the Company with
the Securities and Exchange Commission (the "Commission") of a Registration
Statement on Form S-3 (the "Registration Statement") with respect to
$1,000,000,000 aggregate principal amount of the Company's debt securities,
which may be senior debt securities (the "Senior Debt Securities") or
subordinated debt securities (the "Subordinated Debt Securities" and, together
with the Senior Debt Securities, the "Securities"), for issuance from time to
time pursuant to Rule 415 under the Securities Act of 1933, as amended (the
"Securities Act"). The Senior Debt Securities will be issued pursuant to an
indenture between the Company and Harris Trust and Savings Bank, as Trustee, and
the Subordinated Debt Securities will be issued pursuant to an indenture between
the Company and Harris Trust Savings Bank, as Trustee (collectively, the
"Indentures" and individually, an "Indenture").
I.
We have assumed the authenticity of all records, documents and
instruments submitted to us as originals, the genuineness of all signatures, the
legal capacity of natural persons and the conformity to the originals of all
records, documents and instruments
<PAGE> 2
Washington Mutual, Inc.
June 16, 1999
Page 2
submitted to us as copies. We have based our opinion upon our review of the
following records, documents, instruments and certificates and such additional
certificates relating to factual matters as we have deemed necessary or
appropriate for our opinion:
(a) The Registration Statement;
(b) The Indentures;
(c) Forms of Senior and Subordinated Debt Securities;
(d) The Certificate of Incorporation (including all amendments
thereto) of the Company certified by the Washington Secretary of
State as of May 10, 1999, and certified to us by an officer of
the Company as being complete and in full force and effect as of
the date of this opinion; and
(e) The Bylaws of the Company (and all amendments thereto) certified
to us by an officer of the Company as being complete and in full
force and effect as of the date of this opinion.
We have also assumed (1) the applicable provisions of the Securities
Act, the Trust Indenture Act of 1939, as amended, and the securities or blue sky
laws of the various states shall have been complied with, (2) the terms of each
series of Securities will have been duly authorized by all necessary corporate
action on the part of the Company prior to their issuance, (iii) each of the
Indentures will be duly executed and delivered on behalf of the Company, and the
Securities will be duly executed, authenticated and delivered on behalf of the
Company prior to their issuance against the consideration therefor to be set
forth in a supplement or supplements to the prospectus constituting a part of
the Registration Statement.
II.
We express no opinion as to:
A. The applicable choice of law rules that may affect the
interpretation or enforcement of the Indentures or the Securities.
B. Any tax, anti-trust, land use, safety, environmental or
hazardous materials laws, rules or regulations.
This opinion is limited to the federal laws of the United States of
America, the Business Corporation Law of the State of Washington and the laws of
the State of New York,
<PAGE> 3
Washington Mutual, Inc.
June 16, 1999
Page 3
and we disclaim any opinion as to the laws of any other jurisdiction. We further
disclaim any opinion as to any statute, rule, regulation, ordinance, order or
other promulgation of any regional or local governmental body or as to any
related judicial or administrative opinion.
III.
Based upon the foregoing and our examination of such questions of law as
we have deemed necessary or appropriate for the purpose of our opinion, and
subject to the limitations and qualifications expressed below, it is our opinion
that:
The Securities have been duly authorized and, when sold and after
receipt of payment therefor, will constitute valid and binding obligations of
the Company, enforceable against the Company in accordance with their terms,
subject, as to enforcement, (i) to bankruptcy, insolvency, reorganization,
arrangement, moratorium and other laws of general applicability relating to or
affecting creditors' rights and (ii) to general principles of equity, whether
such enforceability is considered in a proceeding in equity or at law.
IV.
We hereby consent to the filing of this opinion as an exhibit to the
Registration Statement and to the reference to this firm under the heading
"Legal Opinions" in the prospectus constituting a part of the Registration
Statement. In giving this consent, we do not thereby admit that we are within
the category of persons whose consent is required under Section 7 of the
Securities Act or the rules and regulations of the Commission thereunder.
This opinion is rendered to you in connection with the filing of the
Registration Statement and is solely for your benefit. This opinion may not be
relied upon by any other person, firm, corporation or other entity without our
prior written consent. We disclaim any obligation to advise you of any change of
law that occurs, or any facts of which we become aware, after the date of this
opinion.
Very truly yours,
/s/ HELLER EHRMAN WHITE & McAULIFFE
-----------------------------------
<PAGE> 1
EXHIBIT 12.1
WASHINGTON MUTUAL, INC. AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Unaudited)
The calculation of Washington Mutual's ratio of earnings to fixed charges as of
the dates indicated is shown below.
<TABLE>
<CAPTION>
Quarter Ended
March 31, Year Ended December 31,
------------------------- ---------------------------------------------------------------------
1999 1998 1998 1997 1996 1995 1994
---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C>
Earnings before income
taxes, extraordinary items,
cumulative effect of change
in tax accounting method,
and minority interest $ 707,772 $ 599,944 $2,369,457 $1,538,269 $ 590,635 $1,672,256 $1,180,527
Interest expense
Deposits 813,627 903,796 3,588,015 3,645,542 3,764,175 4,187,493 3,094,858
Borrowings 913,296 763,138 3,341,728 2,641,496 2,263,002 2,119,231 1,321,230
---------- ---------- ---------- ---------- ---------- ---------- ----------
1,726,923 1,666,934 6,929,743 6,287,038 6,027,177 6,306,724 4,416,088
Ratio of earnings (as
defined above) to fixed
charges
Excluding interest on
deposits
Earnings before
fixed charges 1,621,068 1,363,082 5,711,185 4,179,765 2,853,637 3,791,487 2,501,757
Fixed charges 913,296 763,138 3,341,728 2,641,496 2,263,002 2,119,231 1,321,230
Ratio 1.77x 1.79x 1.71x 1.58x 1.26x 1.79x 1.89x
Including interest on
deposits
Earnings before fixed
charges 2,434,695 2,266,878 9,299,200 7,825,307 6,617,812 7,978,980 5,596,615
Fixed charges 1,726,923 1,668,934 6,929,743 6,287,038 6,027,177 6,306,724 4,416,088
Ratio 1.41x 1.36x 1.34x 1.24x 1.10x 1.27x 1.27x
</TABLE>
<PAGE> 1
EXHIBIT 23.1
CONSENT OF INDEPENDENT ACCOUNTANTS
We hereby consent to the incorporation by reference in this Prospectus
constituting part of the Registration Statement on Form S-3 of Washington
Mutual, Inc. of our report dated January 22, 1997, except as to Note 28, which
is as of March 7, 1997, relating to the consolidated financial statements of
Great Western Financial Corporation, which appears in the Washington Mutual,
Inc. Annual Report on Form 10-K for the year ended December 31, 1998. We also
consent to the reference to us under the heading "Experts" in this Prospectus,
which is part of this Registration Statement.
/s/ PricewaterhouseCoopers LLP
Los Angeles, California
June 16, 1999
<PAGE> 1
EXHIBIT 23.2
INDEPENDENT AUDITORS' CONSENT
We consent to the incorporation by reference in this Registration Statement of
Washington Mutual, Inc. on Form S-3 of our report dated February 26, 1999,
appearing in the Annual Report on Form 10-K of Washington Mutual, Inc. for the
year ended December 31, 1998, and to the reference to us under the heading
"Experts" in the Prospectus, which is part of this Registration Statement.
/S/ Deloitte & Touche LLP
June 16, 1999
Seattle, Washington
<PAGE> 1
Exhibit 23.3
Independent Auditors' Consent
We consent to the incorporation by reference in Prospectus constituting part of
the Registration Statement of Washington Mutual, Inc. on Form S-3 of our report
dated January 15, 1998, except as to Note 2 of Notes to Consolidated Financial
Statements, which is as of February 13, 1998, and Note 19 of Notes to
Consolidated Financial Statements, which is as of March 16, 1998, relating to
the consolidated statement of financial condition as of December 31, 1997, and
the related consolidated statements of operations, stockholders' equity and
cash flows for each of the years in the two-year period ended December 31,
1997, which report appears in the December 31, 1998, annual report on Form 10-K
of Washington Mutual, Inc. and to the reference to us under the heading
"Experts" in the Prospectus, which is part of this Registration Statement.
/s/ KPMG LLP
Los Angeles, California June 16, 1999
<PAGE> 1
EXHIBIT 25.1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM T-1
Statement of Eligibility
Under the Trust Indenture Act of 1939
of a Corporation Designated to Act as Trustee
Check if an Application to Determine Eligibility
of a Trustee Pursuant to Section 305(b)(2) ______
HARRIS TRUST AND SAVINGS BANK
(Name of Trustee)
Illinois 36-1194448
(State of Incorporation) (I.R.S. Employer Identification No.)
111 West Monroe Street, Chicago, Illinois 60603 (Address
of principal executive offices)
Daniel G. Donovan, Harris Trust and Savings Bank,
311 West Monroe Street, Chicago, Illinois, 60606
(312) 461-2908 phone (312) 461-3525 facsimile
(Name, address and telephone number for agent for service)
WASHINGTON MUTUAL, INC.
(Obligor)
Delaware 95-4128205
(State of Incorporation) (I.R.S. Employer Identification No.)
1201 Third Avenue, Suite 1500
Seattle, Washington 98101
(Address of principal executive offices)
Debt Securities
(Title of indenture securities)
<PAGE> 2
1. GENERAL INFORMATION. Furnish the following information as to the
Trustee:
(a) Name and address of each examining or supervising authority to
which it is subject.
Commissioner of Banks and Trust Companies, State of Illinois,
Springfield, Illinois; Chicago Clearing House Association, 164
West Jackson Boulevard, Chicago, Illinois; Federal Deposit
Insurance Corporation, Washington, D.C.; The Board of Governors
of the Federal Reserve System, Washington, D.C.
(b) Whether it is authorized to exercise corporate trust powers.
Harris Trust and Savings Bank is authorized to exercise corporate
trust powers.
2. AFFILIATIONS WITH OBLIGOR. If the Obligor is an affiliate of the
Trustee, describe each such affiliation.
The Obligor is not an affiliate of the Trustee.
3. through 15.
NO RESPONSE NECESSARY
16. LIST OF EXHIBITS.
1. A copy of the articles of association of the Trustee as now in effect
which includes the authority of the trustee to commence business and
to exercise corporate trust powers.
A copy of the Certificate of Merger dated April 1, 1972 between
Harris Trust and Savings Bank, HTS Bank and Harris Bankcorp, Inc.
which constitutes the articles of association of the Trustee as now
in effect and includes the authority of the Trustee to commence
business and to exercise corporate trust powers was filed in
connection with the Registration Statement of Louisville Gas and
Electric Company, File No. 2-44295, and is incorporated herein by
reference.
2. A copy of the existing by-laws of the Trustee.
A copy of the existing by-laws of the Trustee was filed in connection
with the Registration Statement of Commercial Federal Corporation,
File No. 333-20711, and is incorporated herein by reference.
3. The consents of the Trustee required by Section 321(b) of the Act.
(included as Exhibit A on page 2 of this statement)
4. A copy of the latest report of condition of the Trustee published
pursuant to law or the requirements of its supervising or examining
authority.
(included as Exhibit B on page 3 of this statement)
1
<PAGE> 3
SIGNATURE
Pursuant to the requirements of the Trust Indenture Act of 1939, the Trustee,
HARRIS TRUST AND SAVINGS BANK, a corporation organized and existing under the
laws of the State of Illinois, has duly caused this statement of eligibility to
be signed on its behalf by the undersigned, thereunto duly authorized, all in
the City of Chicago, and State of Illinois, on the 7th day of June, 1999.
HARRIS TRUST AND SAVINGS BANK
By: /s/ D. G. DONOVAN
---------------------------------
D. G. Donovan
Assistant Vice President
EXHIBIT A
The consents of the trustee required by Section 321(b) of the Act.
Harris Trust and Savings Bank, as the Trustee herein named, hereby consents that
reports of examinations of said trustee by Federal and State authorities may be
furnished by such authorities to the Securities and Exchange Commission upon
request therefor.
HARRIS TRUST AND SAVINGS BANK
By: /s/ D. G. DONOVAN
---------------------------------
D. G. Donovan
Assistant Vice President
2
<PAGE> 4
EXHIBIT B
Attached is a true and correct copy of the statement of condition of Harris
Trust and Savings Bank as of December 31, 1998, as published in accordance with
a call made by the State Banking Authority and by the Federal Reserve Bank of
the Seventh Reserve District.
[HARRIS BANK LOGO]
Harris Trust and Savings Bank
111 West Monroe Street
Chicago, Illinois 60603
of Chicago, Illinois, And Foreign and Domestic Subsidiaries, at the close of
business on December 31, 1998, a state banking institution organized and
operating under the banking laws of this State and a member of the Federal
Reserve System. Published in accordance with a call made by the Commissioner of
Banks and Trust Companies of the State of Illinois and by the Federal Reserve
Bank of this District.
Bank's Transit Number 71000288
<TABLE>
<CAPTION>
THOUSANDS
ASSETS OF DOLLARS
<S> <C> <C>
Cash and balances due from depository institutions:
Non-interest bearing balances and currency and coin ................... $ 1,435,233
Interest bearing balances ............................................. $ 98,929
Securities:
a. Held-to-maturity securities .................................................. $ 0
b. Available-for-sale securities ................................................ $ 5,295,498
Federal funds sold and securities purchased under agreements to resell ........... $ 151,575
Loans and lease financing receivables:
Loans and leases, net of unearned income .............................. $9,320,939
LESS: Allowance for loan and lease losses ............................ $ 108,280
----------
Loans and leases, net of unearned income, allowance, and reserve
(item 4.a minus 4.b) .................................................. $ 9,212,659
Assets held in trading accounts .................................................. $ 252,881
Premises and fixed assets (including capitalized leases) ......................... $ 271,540
Other real estate owned .......................................................... $ 366
Investments in unconsolidated subsidiaries and associated companies .............. $ 57
Customer's liability to this bank on acceptances outstanding ..................... $ 30,829
Intangible assets ................................................................ $ 257,627
Other assets ..................................................................... $ 1,093,599
-----------
TOTAL ASSETS $18,100,793
===========
</TABLE>
3
<PAGE> 5
<TABLE>
<S> <C> <C>
LIABILITIES
Deposits:
In domestic offices........................................................... $10,270,499
Non-interest bearing................................................... $3,410,568
Interest bearing....................................................... $6,859,931
In foreign offices, Edge and Agreement subsidiaries, and IBF's................ $ 935,609
Non-interest bearing................................................... $ 69,215
Interest bearing....................................................... $ 866,394
Federal funds purchased and securities sold under agreements to
repurchase in domestic offices of the bank and of its Edge and
Agreement subsidiaries, and in IBF's:
Federal funds purchased & securities sold under agreements to repurchase.......... $ 3,642,049
Trading Liabilities 131,909
Other borrowed money:
a. With remaining maturity of one year or less $ 1,107,125
b. With remaining maturity of more than one year $ 0
Bank's liability on acceptances executed and outstanding $ 30,829
Subordinated notes and debentures................................................. $ 225,000
Other liabilities................................................................. $ 424,376
-----------
TOTAL LIABILITIES $16,767,396
===========
EQUITY CAPITAL
Common stock...................................................................... $ 100,000
Surplus........................................................................... $ 608,116
a. Undivided profits and capital reserves........................................ $ 593,973
b. Net unrealized holding gains (losses) on available-for-sale securities $ 31,308
-----------
TOTAL EQUITY CAPITAL $ 1,333,397
===========
Total liabilities, limited-life preferred stock, and equity capital............... $18,100,793
===========
</TABLE>
I, Pamela Piarowski, Vice President of the above-named bank, do hereby
declare that this Report of Condition has been prepared in conformance with the
instructions issued by the Board of Governors of the Federal Reserve System and
is true to the best of my knowledge and belief.
PAMELA PIAROWSKI
1/27/99
We, the undersigned directors, attest to the correctness of this Report
of Condition and declare that it has been examined by us and, to the best of our
knowledge and belief, has been prepared in conformance with the instructions
issued by the Board of Governors of the Federal Reserve System and the
Commissioner of Banks and Trust Companies of the State of Illinois and is true
and correct.
EDWARD W. LYMAN,
ALAN G. McNALLY,
RICHARD E. TERRY
Directors.
4
<PAGE> 1
EXHIBIT 25.2
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM T-1
Statement of Eligibility
Under the Trust Indenture Act of 1939
of a Corporation Designated to Act as Trustee
Check if an Application to Determine Eligibility
of a Trustee Pursuant to Section 305(b)(2) ______
HARRIS TRUST AND SAVINGS BANK
(Name of Trustee)
Illinois 36-1194448
(State of Incorporation) (I.R.S. Employer Identification No.)
111 West Monroe Street, Chicago, Illinois 60603 (Address
of principal executive offices)
Daniel G. Donovan, Harris Trust and Savings Bank,
311 West Monroe Street, Chicago, Illinois, 60606
(312) 461-2908 phone (312) 461-3525 facsimile
(Name, address and telephone number for agent for service)
WASHINGTON MUTUAL, INC.
(Obligor)
Delaware 95-4128205
(State of Incorporation) (I.R.S. Employer Identification No.)
1201 Third Avenue, Suite 1500
Seattle, Washington 98101
(Address of principal executive offices)
Debt Securities
(Title of indenture securities)
<PAGE> 2
1. GENERAL INFORMATION. Furnish the following information as to the
Trustee:
(a) Name and address of each examining or supervising authority to
which it is subject.
Commissioner of Banks and Trust Companies, State of Illinois,
Springfield, Illinois; Chicago Clearing House Association, 164
West Jackson Boulevard, Chicago, Illinois; Federal Deposit
Insurance Corporation, Washington, D.C.; The Board of Governors
of the Federal Reserve System, Washington, D.C.
(b) Whether it is authorized to exercise corporate trust powers.
Harris Trust and Savings Bank is authorized to exercise corporate
trust powers.
2. AFFILIATIONS WITH OBLIGOR. If the Obligor is an affiliate of the
Trustee, describe each such affiliation.
The Obligor is not an affiliate of the Trustee.
3. through 15.
NO RESPONSE NECESSARY
16. LIST OF EXHIBITS.
1. A copy of the articles of association of the Trustee as now in effect
which includes the authority of the trustee to commence business and
to exercise corporate trust powers.
A copy of the Certificate of Merger dated April 1, 1972 between
Harris Trust and Savings Bank, HTS Bank and Harris Bankcorp, Inc.
which constitutes the articles of association of the Trustee as now
in effect and includes the authority of the Trustee to commence
business and to exercise corporate trust powers was filed in
connection with the Registration Statement of Louisville Gas and
Electric Company, File No. 2-44295, and is incorporated herein by
reference.
2. A copy of the existing by-laws of the Trustee.
A copy of the existing by-laws of the Trustee was filed in connection
with the Registration Statement of Commercial Federal Corporation,
File No. 333-20711, and is incorporated herein by reference.
3. The consents of the Trustee required by Section 321(b) of the Act.
(included as Exhibit A on page 2 of this statement)
4. A copy of the latest report of condition of the Trustee published
pursuant to law or the requirements of its supervising or examining
authority.
(included as Exhibit B on page 3 of this statement)
1
<PAGE> 3
SIGNATURE
Pursuant to the requirements of the Trust Indenture Act of 1939, the Trustee,
HARRIS TRUST AND SAVINGS BANK, a corporation organized and existing under the
laws of the State of Illinois, has duly caused this statement of eligibility to
be signed on its behalf by the undersigned, thereunto duly authorized, all in
the City of Chicago, and State of Illinois, on the 7th day of June, 1999.
HARRIS TRUST AND SAVINGS BANK
By: /s/ D. G. DONOVAN
---------------------------------
D. G. Donovan
Assistant Vice President
EXHIBIT A
The consents of the trustee required by Section 321(b) of the Act.
Harris Trust and Savings Bank, as the Trustee herein named, hereby consents that
reports of examinations of said trustee by Federal and State authorities may be
furnished by such authorities to the Securities and Exchange Commission upon
request therefor.
HARRIS TRUST AND SAVINGS BANK
By: /s/ D. G. DONOVAN
---------------------------------
D. G. Donovan
Assistant Vice President
2
<PAGE> 4
EXHIBIT B
Attached is a true and correct copy of the statement of condition of Harris
Trust and Savings Bank as of December 31, 1998, as published in accordance with
a call made by the State Banking Authority and by the Federal Reserve Bank of
the Seventh Reserve District.
[HARRIS BANK LOGO]
Harris Trust and Savings Bank
111 West Monroe Street
Chicago, Illinois 60603
of Chicago, Illinois, And Foreign and Domestic Subsidiaries, at the close of
business on December 31, 1998, a state banking institution organized and
operating under the banking laws of this State and a member of the Federal
Reserve System. Published in accordance with a call made by the Commissioner of
Banks and Trust Companies of the State of Illinois and by the Federal Reserve
Bank of this District.
Bank's Transit Number 71000288
<TABLE>
<CAPTION>
THOUSANDS
ASSETS OF DOLLARS
<S> <C> <C>
Cash and balances due from depository institutions:
Non-interest bearing balances and currency and coin ................... $ 1,435,233
Interest bearing balances ............................................. $ 98,929
Securities:
a. Held-to-maturity securities .................................................. $ 0
b. Available-for-sale securities ................................................ $ 5,295,498
Federal funds sold and securities purchased under agreements to resell ........... $ 151,575
Loans and lease financing receivables:
Loans and leases, net of unearned income .............................. $9,320,939
LESS: Allowance for loan and lease losses ............................ $ 108,280
----------
Loans and leases, net of unearned income, allowance, and reserve
(item 4.a minus 4.b) .................................................. $ 9,212,659
Assets held in trading accounts .................................................. $ 252,881
Premises and fixed assets (including capitalized leases) ......................... $ 271,540
Other real estate owned .......................................................... $ 366
Investments in unconsolidated subsidiaries and associated companies .............. $ 57
Customer's liability to this bank on acceptances outstanding ..................... $ 30,829
Intangible assets ................................................................ $ 257,627
Other assets ..................................................................... $ 1,093,599
-----------
TOTAL ASSETS $18,100,793
===========
</TABLE>
3
<PAGE> 5
<TABLE>
<S> <C> <C>
LIABILITIES
Deposits:
In domestic offices........................................................... $10,270,499
Non-interest bearing................................................... $3,410,568
Interest bearing....................................................... $6,859,931
In foreign offices, Edge and Agreement subsidiaries, and IBF's................ $ 935,609
Non-interest bearing................................................... $ 69,215
Interest bearing....................................................... $ 866,394
Federal funds purchased and securities sold under agreements to
repurchase in domestic offices of the bank and of its Edge and
Agreement subsidiaries, and in IBF's:
Federal funds purchased & securities sold under agreements to repurchase.......... $ 3,642,049
Trading Liabilities 131,909
Other borrowed money:
a. With remaining maturity of one year or less $ 1,107,125
b. With remaining maturity of more than one year $ 0
Bank's liability on acceptances executed and outstanding $ 30,829
Subordinated notes and debentures................................................. $ 225,000
Other liabilities................................................................. $ 424,376
-----------
TOTAL LIABILITIES $16,767,396
===========
EQUITY CAPITAL
Common stock...................................................................... $ 100,000
Surplus........................................................................... $ 608,116
a. Undivided profits and capital reserves........................................ $ 593,973
b. Net unrealized holding gains (losses) on available-for-sale securities $ 31,308
-----------
TOTAL EQUITY CAPITAL $ 1,333,397
===========
Total liabilities, limited-life preferred stock, and equity capital............... $18,100,793
===========
</TABLE>
I, Pamela Piarowski, Vice President of the above-named bank, do hereby
declare that this Report of Condition has been prepared in conformance with the
instructions issued by the Board of Governors of the Federal Reserve System and
is true to the best of my knowledge and belief.
PAMELA PIAROWSKI
1/27/99
We, the undersigned directors, attest to the correctness of this Report
of Condition and declare that it has been examined by us and, to the best of our
knowledge and belief, has been prepared in conformance with the instructions
issued by the Board of Governors of the Federal Reserve System and the
Commissioner of Banks and Trust Companies of the State of Illinois and is true
and correct.
EDWARD W. LYMAN,
ALAN G. McNALLY,
RICHARD E. TERRY
Directors.
4
