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AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON FEBRUARY 25, 2000
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:
DAVID R. WILSON, ESQ.
HELLER EHRMAN WHITE & MCAULIFFE LLP
6100 COLUMBIA CENTER
701 5TH AVENUE
SEATTLE, WA 98104-7098
(206) 447-0900
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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. [ ]
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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............. $1,000,000,000 100%(2) $1,000,000,000(2) $264,000
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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.
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
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 DEBT SECURITIES OFFERED HEREBY ARE NOT SAVINGS ACCOUNTS, DEPOSITS OR
OTHER OBLIGATIONS OF ANY BANK OR SAVINGS ASSOCIATION AND ARE NOT INSURED BY THE
FEDERAL DEPOSIT INSURANCE CORPORATION, THE BANK INSURANCE FUND, THE SAVINGS
ASSOCIATION INSURANCE FUND OR ANY OTHER GOVERNMENTAL AGENCY.
The date of this prospectus is February 25, 2000.
<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 Reports on Form 10-Q for the quarters ended March 31, 1999,
June 30, 1999 and September 30, 1999;
- Our Current Reports on Form 8-K dated January 19, 1999; April 20, 1999;
May 18, 1999; June 29, 1999; July 20, 1999; August 5, 1999; August 25,
1999; September 15, 1999; October 1, 1999; October 20, 1999; November 8,
1999; November 18, 1999; November 30, 1999; and January 18, 2000.
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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,
attention Investor Relations Department, WMT0735, telephone (206) 461-3187.
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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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 December 31, 1999, we had deposits of $81.13 billion and
stockholders' equity of $9.05 billion. Based on our consolidated assets of
$186.51 billion at December 31, 1999, we were the largest savings institution
and the ninth largest banking company in the United States.
We operate principally in California, Washington, Oregon, Florida, Texas
and Utah, with operations in 40 states. Through our subsidiaries, we engage in
the following business activities:
- Mortgage Banking
- Consumer Banking
- Commercial Banking
- Financial Services
- Consumer Finance
Our principal executive offices are located at 1201 Third Avenue, Seattle,
Washington 98101, telephone number (206) 461-2000.
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 of 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, 1999, we
originated $40.24 billion of single-family residential loans (excluding
residential construction), making us the nation's fifth largest single-family
residential mortgage originator. At December 31, 1999, we had a servicing
portfolio of $158.88 billion of single-family residential mortgage loans and
residential construction loans including $48.64 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 savings 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 mortgage loans and lines of credit, manufactured housing loans,
automobile, boat and recreational vehicle loans, education loans and small
business lines of credit. We conduct consumer banking in 8 states through over
1,000 financial centers and over 1,400 automated teller machines. The consumer
banking group also has approximately 1,700 full-time equivalent employees in its
telephone banking centers. At December 31, 1999, we had $79.47 billion in
deposits and a consumer loan portfolio of $6.24 billion.
COMMERCIAL BANKING
The commercial banking group is comprised of two primary business lines:
commercial banking, operating under the brand names of WM Business Bank and
Western Bank; and commercial real estate lending, operating under the Washington
Mutual brand.
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The Western Bank division operates primarily in Washington, Oregon, Idaho and
Utah. WM Business Bank commenced operations in California at the beginning of
1999. The commercial banking group provides personalized commercial banking
services to small to mid-sized businesses. The commercial real estate lending
group makes available multi-family shelter-based lending, commercial
construction financing and other commercial real estate loans. At December 31,
1999, we had $19.49 billion of commercial real estate and commercial business
loans in our portfolio, of which $15.26 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 Fund 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 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 December 31, 1999, the WM Group of Funds consisted of 18 mutual funds,
five managed asset funds and one variable annuity. At that date, it had $7.42
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 include mortgage life and accidental death and dismemberment and other
life insurance products.
CONSUMER FINANCE
We conduct our consumer finance business through Washington Mutual Finance
(formerly Aristar, Inc.) and its subsidiaries, and through Long Beach Mortgage
Company ("Long Beach"). Washington Mutual Finance makes direct consumer
installment loans and real estate secured loans and purchases retail installment
contracts from local retail establishments through a network of over 500 branch
offices located in 25 states, primarily in the southeastern United States. At
December 31, 1999 Washington Mutual Finance had assets of $3.26 billion.
Long Beach is engaged in the business of originating, purchasing and
selling specialty mortgage finance loans secured by first liens on one-to-four
family residences. Long Beach originates loans in all 50 states primarily
through wholesale channels comprised of a nation wide network of independent
mortgage loan brokers and correspondents. Long Beach maintains a close working
relationship with these brokers through its sales force of approximately 300
account executives located in 69 offices. Long Beach historically has followed a
strategy of selling all of its loan originations in the secondary market.
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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, repurchase of common
stock, acquisitions, and office expansions.
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>
YEAR ENDED DECEMBER 31,
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1999 1998 1997 1996 1995
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<S> <C> <C> <C> <C>
1.38 1.34 1.24 1.10 1.27
</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
provisions relating to subordination.
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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 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 December 31,
1999, Washington Mutual's subsidiaries had approximately $81.13 billion of
deposits and $92.62 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
December 31, 1999, Senior Debt aggregated approximately $3.70 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
of the Company except Subordinated Debt. "Subordinated Debt" is defined to mean
Washington Mutual's 7.875% Senior Subordinated Notes Due 2004 (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 of the Company 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.
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; U.S. DEPOSITARY
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; COMMON DEPOSITARY
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 persons 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 LLP, Seattle, Washington. As of
February 24, 2000, Heller Ehrman White & McAuliffe LLP 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................................. $264,000
Legal Fees and Expenses.............................. $ 75,000
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...................................... $885,000
========
</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 Trust
and Savings Bank, as Senior Trustee.
4.4 -- Form of Indenture between Washington Mutual and Harris Trust
and Savings Bank, as Subordinated Trustee.
4.5 -- Form of Washington Mutual's Standard Multiple-Series
Indenture Provisions.
5.1 -- Opinion of Heller Ehrman White & McAuliffe LLP 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-5).
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 15th day of
February 2000.
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
--------- ----- ----
<S> <C> <C>
/s/ KERRY K. KILLINGER Chairman, President, February 15, 2000
- --------------------------------------------------- Chief Executive
Kerry K. Killinger Officer and Director
(Chief Executive
Officer)
/s/ WILLIAM A. LONGBRAKE Vice Chair and Chief February 15, 2000
- --------------------------------------------------- Financial Officer
William A. Longbrake (Principal Financial
Officer)
/s/ RICHARD M. LEVY Senior Vice February 15, 2000
- --------------------------------------------------- President &
Richard M. Levy Controller
(Principal
Accounting Officer)
/s/ DOUGLAS P. BEIGHLE Director February 15, 2000
- ---------------------------------------------------
Douglas P. Beighle
</TABLE>
II-5
<PAGE> 29
<TABLE>
<CAPTION>
SIGNATURE TITLE DATE
--------- ----- ----
<S> <C> <C>
/s/ DAVID BONDERMAN Director February 15, 2000
- ---------------------------------------------------
David Bonderman
Director February 15, 2000
- ---------------------------------------------------
J. Taylor Crandall
/s/ ROGER H. EIGSTI Director February 15, 2000
- ---------------------------------------------------
Roger H. Eigsti
/s/ JOHN W. ELLIS Director February 15, 2000
- ---------------------------------------------------
John W. Ellis
/s/ ANNE V. FARRELL Director February 15, 2000
- ---------------------------------------------------
Anne V. Farrell
/s/ STEPHEN E. FRANK Director February 15, 2000
- ---------------------------------------------------
Stephen E. Frank
/s/ WILLIAM P. GERBERDING Director February 15, 2000
- ---------------------------------------------------
William P. Gerberding
Director February 15, 2000
- ---------------------------------------------------
Enrique Hernandez, Jr.
/s/ PHILLIP D. MATTHEWS Director February 15, 2000
- ---------------------------------------------------
Phillip D. Matthews
/s/ MICHAEL K. MURPHY Director February 15, 2000
- ---------------------------------------------------
Michael K. Murphy
/s/ MARY E. PUGH Director February 15, 2000
- ---------------------------------------------------
Mary E. Pugh
/s/ WILLIAM G. REED, JR. Director February 15, 2000
- ---------------------------------------------------
William G. Reed, Jr.
/s/ ELIZABETH A. SANDERS Director February 15, 2000
- ---------------------------------------------------
Elizabeth A. Sanders
/s/ WILLIAM D. SCHULTE Director February 15, 2000
- ---------------------------------------------------
William D. Schulte
</TABLE>
II-6
<PAGE> 30
<TABLE>
<CAPTION>
SIGNATURE TITLE DATE
--------- ----- ----
<S> <C> <C>
/s/ JAMES H. STEVER Director February 15, 2000
- ---------------------------------------------------
James H. Stever
/s/ WILLIS B. WOOD, JR. Director February 15, 2000
- ---------------------------------------------------
Willis B. Wood, Jr.
</TABLE>
II-7
<PAGE> 31
<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 Trust
and Savings Bank, as Senior Trustee.
4.4 -- Form of Indenture between Washington Mutual and Harris Trust
and Savings Bank, as Subordinated Trustee.
4.5 -- Form of Washington Mutual's Standard Multiple-Series
Indenture Provisions.
5.1 -- Opinion of Heller Ehrman White & McAuliffe LLP 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-5).
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 $__________
CUSIP:
WASHINGTON MUTUAL, INC., a Washington corporation (hereinafter called the
"Company," which term shall refer to such Company until a successor corporation
shall have become such pursuant to the provisions of the Indenture referred to
herein and thereafter "Company" shall mean such successor corporation), for
value received, hereby promises to pay to Cede & Co., or registered assigns, the
principal sum of ____________________ ($_______) 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,
<PAGE> 2
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 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 ______ ___, 200_ (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.
-2-
<PAGE> 3
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 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 hereof 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
-3-
<PAGE> 4
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 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.
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,
-4-
<PAGE> 5
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.
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
-5-
<PAGE> 6
TRUSTEE'S CERTIFICATE OF AUTHENTICATION
This is one of the Securities of the series designated and issued under the
within mentioned Indenture.
Dated: _______________, 200_
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.
<TABLE>
<S> <C> <C>
TEN COM - as tenants in common UNIF GIFT MIN ACT
TEN ENT - as tenants by the entireties with right
of survivorship and not as tenants in
common
JT TEN - as joint tenants with right of Custodian
survivorship and not as tenants in --------------------
common (Cust)
-------------------------------------
(Minor)
Under Uniform Gifts to Minor Act
------------------------------------
(State)
</TABLE>
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
-8-
<PAGE> 9
in addition to, or in substitution for,
STAMP, all in accordance with the
Securities Exchange Act of 1934, as
amended.
-9-
<PAGE> 1
EXHIBIT 4.2
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. $
----------------
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.
<PAGE> 2
The interest so payable, and punctually paid or duly provided for, on any
Interest Payment Date will, as provided in such Indenture, be paid to the Person
in whose name this Security (or one or more Predecessor Securities) is
registered at the close of business on the Regular Record Date for such
interest, which shall be (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 _________ ____, 200_ (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
2
<PAGE> 3
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 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
3
<PAGE> 4
formed by such consolidation or into which the predecessor corporation is merged
or to which such conveyance, transfer or lease is made shall be 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.
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 hanged
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
4
<PAGE> 5
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 effectuate 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.
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.
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
5
<PAGE> 6
TRUSTEE'S CERTIFICATE OF AUTHENTICATION
This is one of the Securities of the series designated and issued under the
within mentioned Indenture.
Dated: _________________, 200_
HARRIS TRUST AND SAVINGS BANK,
as Trustee
By:
-------------------------------------
Authorized Signatory
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.
<TABLE>
<S> <C> <C>
TEN COM - as tenants in common UNIF GIFT MIN ACT
TEN ENT - as tenants by the entireties with right
of survivorship and not as tenants in
common
JT TEN - as joint tenants with right of Custodian
survivorship and not as tenants in -----------------------
common (Cust)
----------------------
(Minor)
Under Uniform Gifts to Minor Act
----------------------
(State)
</TABLE>
Additional abbreviations may also be used though not in the above list.
6
<PAGE> 7
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.
7
<PAGE> 1
EXHIBIT 4.3
WASHINGTON MUTUAL, INC.
AND
HARRIS TRUST AND SAVINGS BANK, AS TRUSTEE
----------------
Senior Debt Securities
Indenture
----------------
Dated as of _____, 200_
<PAGE> 2
INDENTURE, dated as of ______, 200_ (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 1201 Third Avenue, Seattle, Washington 98101, 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 __________, 200_ (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: Treasurer, with a copy
to the same address, Attention: Senior 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
- ------------------------------------
Title:
HARRIS TRUST AND SAVINGS BANK,
as Trustee
By
-------------------------------------
Title: Authorized Signatory
[SEAL]
Attest
- ------------------------------------
Title:
2
<PAGE> 4
STATE OF WASHINGTON )
) ss
COUNTY OF KING )
On the __ day of________, 200_, before me personally came
_____________________ to me known, who, being by me duly sworn, did depose and
say that he/she is _________________________________ 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:
HARRIS TRUST AND SAVINGS BANK,
as Trustee
By:
------------------------------------
Title: Authorized Signatory
[SEAL]
Attest
Title:
4
<PAGE> 6
STATE OF ILLINOIS )
) ss
COUNTY OF COOK )
On the __ day of ____, 200_, 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 ________, 200_
<PAGE> 2
INDENTURE, dated as of ________, 200_ (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 1201 Third Avenue, Seattle, Washington 98101, 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 ____ __, 200_ (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: Treasurer, with a copy
to the same address, Attention: Senior 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.
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
- ------------------------------------
Title:
HARRIS TRUST AND SAVINGS BANK,
as Trustee
By
-------------------------------------
Title: Authorized Signatory
[SEAL]
Attest
- ------------------------------------
Title:
2
<PAGE> 4
STATE OF WASHINGTON )
) ss
COUNTY OF KING )
On the __ day of_________, 200_, before me personally came
__________________________ 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:
HARRIS TRUST AND SAVINGS BANK,
as Trustee
By
-------------------------------------
Title: Authorized Signatory
[SEAL]
Attest
- ------------------------------------
Title:
4
<PAGE> 6
STATE OF ILLINOIS )
) ss
COUNTY OF COOK )
On the __ day of _______, 200_, 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 4.5
WASHINGTON MUTUAL, INC.
----------------
Standard Multiple-Series
Indenture Provisions
----------------
Dated as of___________, 200_
<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.
"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.
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"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.
"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.
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"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.
"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, means the date on which
the principal of such Security or an installment of principal becomes due and
payable as therein or herein provided, whether at Stated Maturity or by
declaration of acceleration, call for redemption or otherwise.
"Officers' Certificate" means a certificate signed by both (i) the
president or a Vice President, and (ii) the Treasurer, an Assistant Treasurer,
the Controller, the Secretary or an Assistant Secretary of the Company, and
delivered to the Trustee.
"Opinion of Counsel" means a written opinion of counsel, who may (except as
otherwise expressly provided in this Indenture) be an employee of or counsel for
the Company who is acceptable to the Trustee.
"Original Issue Date" means the date of issuance specified as such in each
Security.
"Original Issue Discount Security" means any Debt Security that provides
for an amount less than the stated principal amount thereof to be due and
payable upon declaration of acceleration of the maturity thereof upon the
occurrence of an Event of Default and the continuation thereof.
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"Outstanding" means, as of the date of determination, all Securities
theretofore authenticated and delivered under this Indenture, except:
(i) Securities therefore cancelled by the Trustee or delivered to the
Trustee for cancellation;
(ii) Securities for whose payment money in the necessary amount has been
theretofore deposited with the Trustee or any Paying Agent in trust for the
Holders of such Securities; and
(iii) Securities in substitution for or in lieu of which other Securities
have been authenticated and delivered or which have been paid pursuant to
Section 3.6, unless proof satisfactory to the Trustee is presented that any
such Securities are held by Holders in whose hands such Securities are
valid, binding and legal obligations of the Company;
provided, however, that in determining whether the Holders of the requisite
principal amount of Outstanding Securities have given any request, demand,
authorization, direction, notice, consent or waiver hereunder, (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 such other obligor. Upon request
of the Trustee, the Company shall furnish to the Trustee promptly an Officers'
Certificate listing and identifying all Securities, if any, known by the Company
to be owned or held by or for the account of the Company, or any other obligor
on the Securities or any Affiliate of the Company or such obligor, and, subject
to the provisions of Section 6.1, the Trustee shall be entitled to accept such
Officers' Certificate as conclusive evidence of the facts therein set forth and
of the fact that all Securities not listed therein are Outstanding for the
purpose of any such determination.
"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.
"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).
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"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 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.
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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;
(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
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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 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
by-law 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.
(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
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<PAGE> 9
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 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
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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 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
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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.
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.
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.
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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;
(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;
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(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, if so, whether beneficial owners of interests in any such
definitive global Security may 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;
(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
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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 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:
(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
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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 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
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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 "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 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
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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 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.
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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 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 11.7 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
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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.
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 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
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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 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.
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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 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 Holder, with respect to such
Global Security or impair, as between such
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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.
(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 9.1(h), 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.
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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
(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 (b) (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
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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, 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.
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.
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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 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
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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;
(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,
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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
(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.
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
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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.
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
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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 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
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(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 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;
(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
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(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;
(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;
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(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;
(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
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(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, 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:
(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
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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 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
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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 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.
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
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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]
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
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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 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,
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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 (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;
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(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;
(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
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
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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 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.
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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 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
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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 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 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
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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 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
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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 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 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
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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 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.
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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
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.
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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.
(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 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
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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.
(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,
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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, 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
48
<PAGE> 50
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 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 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 and 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.
49
<PAGE> 51
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 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
50
<PAGE> 52
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 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 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.
51
<PAGE> 53
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 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.
<PAGE> 54
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.
A-2
<PAGE> 55
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.
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
A-3
<PAGE> 56
*Dated: , 200__ 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.]
A-4
<PAGE> 57
TABLE OF CONTENTS
<TABLE>
<CAPTION>
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<S> <C> <C>
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......................................................6
1.4 ACTS OF HOLDERS; RECORD DATES...............................................................6
1.5 NOTICES, ETC., TO TRUSTEE AND COMPANY.......................................................8
1.6 NOTICE TO HOLDERS; WAIVER...................................................................8
1.7 CONFLICT WITH TRUST INDENTURE ACT...........................................................8
1.8 EFFECT OF HEADINGS AND TABLE OF CONTENTS....................................................9
1.9 SUCCESSORS AND ASSIGNS......................................................................9
1.10 SEPARABILITY CLAUSE.........................................................................9
1.11 BENEFITS OF INDENTURE.......................................................................9
1.12 GOVERNING LAW...............................................................................9
1.13 LEGAL HOLIDAYS..............................................................................9
1.14 LANGUAGE OF NOTICES, ETC....................................................................9
1.15 COUNTERPARTS................................................................................9
ARTICLE II SECURITY FORMS..............................................................................9
2.1 FORMS GENERALLY.............................................................................9
2.2 FORM OF TRUSTEE'S CERTIFICATE OF AUTHENTICATION............................................10
2.3 SECURITIES IN GLOBAL FORM..................................................................10
ARTICLE III THE SECURITIES.............................................................................11
3.1 AMOUNT UNLIMITED; ISSUABLE IN SERIES.......................................................11
3.2 DENOMINATIONS..............................................................................12
3.3 EXECUTION, AUTHENTICATION, DELIVERY AND DATING.............................................13
3.4 TEMPORARY SECURITIES.......................................................................14
3.5 REGISTRATION, REGISTRATION OF TRANSFER AND EXCHANGE........................................16
3.6 MUTILATED, DESTROYED, LOST AND STOLEN SECURITIES...........................................19
3.7 PAYMENT OF INTEREST; INTEREST RIGHTS PRESERVED.............................................19
3.8 PERSONS DEEMED OWNERS......................................................................20
3.9 CANCELLATION...............................................................................21
3.10 COMPUTATION OF INTEREST....................................................................21
3.11 MANNER OF PAYMENTS IN RESPECT OF SECURITIES................................................21
3.12 COMPLIANCE WITH CERTAIN LAWS AND REGULATIONS...............................................22
ARTICLE IV SATISFACTION AND DISCHARGE.................................................................22
4.1 SATISFACTION AND DISCHARGE OF INDENTURE....................................................22
4.2 APPLICATION OF TRUST MONEY.................................................................22
4.3 SATISFACTION, DISCHARGE AND DEFEASANCES OF SECURITIES OF ANY SERIES........................23
4.4 REINSTATEMENT..............................................................................24
4.5 DEFINITIONS................................................................................24
ARTICLE V REMEDIES...................................................................................24
5.1 EVENTS OF DEFAULT..........................................................................24
5.2 ACCELERATION OF MATURITY; RESCISSION AND ANNULMENT.........................................25
5.3 COLLECTION OF INDEBTEDNESS AND SUITS FOR ENFORCEMENT BY TRUSTEE............................26
</TABLE>
(i)
<PAGE> 58
TABLE OF CONTENTS (cont.)
<TABLE>
<CAPTION>
PAGE
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<S> <C> <C>
5.4 TRUSTEE MAY FILE PROOFS OF CLAIM...........................................................26
5.5 TRUSTEE MAY ENFORCE CLAIMS WITHOUT POSSESSION OF SECURITIES................................27
5.6 APPLICATION OF MONEY COLLECTED.............................................................27
5.7 LIMITATION ON SUITS........................................................................27
5.8 UNCONDITIONAL RIGHT OF HOLDERS TO RECEIVE PRINCIPAL, PREMIUM AND INTEREST..................28
5.9 RESTORATION OF RIGHTS AND REMEDIES.........................................................28
5.10 RIGHTS AND REMEDIES CUMULATIVE.............................................................28
5.11 DELAY OR OMISSION NOT WAIVER...............................................................28
5.12 CONTROL BY HOLDERS.........................................................................28
5.13 WAIVER OF PAST DEFAULTS....................................................................28
5.14 UNDERTAKING FOR COSTS......................................................................29
ARTICLE VI THE TRUSTEE................................................................................29
6.1 CERTAIN DUTIES AND RESPONSIBILITIES........................................................29
6.2 NOTICE OF DEFAULTS.........................................................................30
6.3 CERTAIN RIGHTS OF TRUSTEE..................................................................30
6.4 NOT RESPONSIBLE FOR RECITALS OR ISSUANCE OF SECURITIES.....................................31
6.5 MAY HOLD SECURITIES........................................................................31
6.6 MONEY HELD IN TRUST........................................................................31
6.7 COMPENSATION AND REIMBURSEMENT.............................................................31
6.8 DISQUALIFICATION; CONFLICTING INTERESTS....................................................32
6.9 CORPORATE TRUSTEE REQUIRED; ELIGIBILITY....................................................32
6.10 RESIGNATION AND REMOVAL; APPOINTMENT OF SUCCESSOR..........................................32
6.11 ACCEPTANCE OF APPOINTMENT BY SUCCESSOR.....................................................33
6.12 MERGER, CONVERSION, CONSOLIDATION OR SUCCESSION TO BUSINESS................................34
6.13 PREFERENTIAL COLLECTION OF CLAIMS AGAINST COMPANY..........................................34
6.14 APPOINTMENT OF AUTHENTICATING AGENT........................................................34
ARTICLE VII HOLDERS' LISTS AND REPORTS BY TRUSTEE AND COMPANY..........................................35
7.1 COMPANY TO FURNISH TRUSTEE NAMES AND ADDRESSES OF HOLDERS..................................36
7.2 PRESERVATION OF INFORMATION; COMMUNICATIONS TO HOLDERS.....................................36
7.3 REPORTS BY TRUSTEE.........................................................................36
7.4 REPORTS BY COMPANY.........................................................................36
ARTICLE VIII CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE.......................................37
8.1 COMPANY MAY CONSOLIDATE, ETC...............................................................37
8.2 SUCCESSOR CORPORATION SUBSTITUTED..........................................................37
ARTICLE IX SUPPLEMENTAL INDENTURES....................................................................37
9.1 SUPPLEMENTAL INDENTURES WITHOUT CONSENT OF HOLDERS.........................................37
9.2 SUPPLEMENTAL INDENTURES WITH CONSENT OF HOLDERS............................................38
9.3 EXECUTION OF SUPPLEMENTAL INDENTURES.......................................................39
9.4 EFFECT OF SUPPLEMENTAL INDENTURES..........................................................39
9.5 CONFORMITY WITH TRUST INDENTURE ACT........................................................39
9.6 REFERENCE IN SECURITIES TO SUPPLEMENTAL INDENTURES.........................................40
ARTICLE X COVENANTS..................................................................................40
</TABLE>
(ii)
<PAGE> 59
TABLE OF CONTENTS (cont.)
<TABLE>
<CAPTION>
PAGE
----
<S> <C> <C>
10.1 PAYMENT OF PRINCIPAL, PREMIUM AND INTEREST.................................................40
10.2 MAINTENANCE OF OFFICE OR AGENCY............................................................40
10.3 MONEY FOR SECURITIES PAYMENTS TO BE HELD IN TRUST..........................................41
10.4 ADDITIONAL AMOUNTS.........................................................................42
10.5 STATEMENT AS TO COMPLIANCE.................................................................42
ARTICLE XI REDEMPTION OF SECURITIES...................................................................42
11.1 APPLICABILITY OF ARTICLE...................................................................42
11.2 ELECTION TO REDEEM; NOTICE TO TRUSTEE......................................................42
11.3 SELECTION BY TRUSTEE OF SECURITIES TO BE REDEEMED..........................................43
11.4 NOTICE OF REDEMPTION.......................................................................43
11.5 DEPOSIT OF REDEMPTION PRICE................................................................44
11.6 SECURITIES PAYABLE ON REDEMPTION DATE......................................................44
11.7 SECURITY REDEEMED IN PART..................................................................44
ARTICLE XII SINKING FUNDS..............................................................................45
12.1 APPLICABILITY OF ARTICLE...................................................................45
12.2 SATISFACTION OF SINKING FUND PAYMENTS WITH SECURITIES......................................45
12.3 REDEMPTION OF SECURITIES FOR SINKING FUND..................................................45
ARTICLE XIII MEETINGS OF HOLDERS OF SECURITIES..........................................................45
13.1 PURPOSES FOR WHICH MEETINGS MAY BE CALLED..................................................45
13.2 CALL, NOTICE AND PLACE OF MEETINGS.........................................................46
13.3 PERSONS ENTITLED TO VOTE AT MEETINGS.......................................................46
13.4 QUORUM; ACTION.............................................................................46
13.5 DETERMINATION OF VOTING RIGHTS; CONDUCT AND ADJOURNMENT OF MEETINGS........................47
13.6 COUNTING VOTES AND RECORDING ACTION OF MEETINGS............................................47
ARTICLE XIV IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS............................48
14.1 IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS............................48
ARTICLE XV SUBORDINATION..............................................................................48
15.1 AGREEMENT TO SUBORDINATE...................................................................48
15.2 NO PAYMENTS TO HOLDERS OF SECURITIES IN CERTAIN CIRCUMSTANCES..............................48
15.3 PAYMENTS BY TRUSTEE OR HOLDERS OF SECURITIES TO HOLDERS OF SENIOR DEBT.....................49
15.4 SUBROGATION................................................................................49
15.5 OBLIGATION OF COMPANY UNCONDITIONAL........................................................50
15.6 PAYMENTS ON SECURITIES PERMITTED...........................................................50
15.7 EFFECTUATION OF SUBORDINATION BY TRUSTEE...................................................50
15.8 KNOWLEDGE OF TRUSTEE.......................................................................51
15.9 TRUSTEE MAY HOLD SENIOR DEBT...............................................................51
15.10 RIGHTS OF HOLDERS OF SENIOR DEBT NOT IMPAIRED..............................................51
15.11 RIGHTS AND OBLIGATIONS SUBJECT TO POWER OF COURT...........................................51
15.12 DEFINITIONS................................................................................51
EXHIBIT A [FORMS OF CERTIFICATION.....................................................................1
</TABLE>
(iii)
<PAGE> 60
TABLE OF CONTENTS (cont.)
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
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
February 25, 2000
Washington Mutual, Inc.
1201 Third Avenue
Seattle, WA 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 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:
<PAGE> 2
[HELLER EHRMAN LETTERHEAD]
Page 2
(a) The Registration Statement;
(b) The Indentures;
(c) Forms of Senior and Subordinated Debt Securities;
(d) The Articles of Incorporation (including all amendments thereto) of
the Company certified by the Washington Secretary of State as of
February 15, 2000, 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.
(f) Records certified to us by an officer of the Company as constituting
all records of proceedings and actions of the board of directors of
the Company relating to the issuance of the Securities by the Company
and the transactions contemplated by the Indenture.
We have also assumed that (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 will 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, (3) each of the
Indentures will be duly executed and delivered on behalf of the Company and (4)
the Securities will be duly executed, authenticated and delivered on behalf of
the Company, and duly authenticated by the trustee under the applicable
Indenture, 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.
<PAGE> 3
[HELLER EHRMAN LETTERHEAD]
Page 3
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, 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:
1. 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
----------------------------------------
A-11
<PAGE> 4
[HELLER EHRMAN LETTERHEAD]
Page 5
<PAGE> 1
EXHIBIT 12.1
<TABLE>
<CAPTION>
Year Ended December 31,
--------------------------------------------------------------
1999 1998 1997 1996 1995
--------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Earnings before income taxes, extraordinary
items, cumulative effect of change in tax
accounting method, and minority interest 2,884,160 2,369,457 1,538,269 590,635 1,672,256
Interest expense
Deposits 3,170,262 3,588,015 3,645,542 3,764,175 4,187,493
Borrowings 4,440,146 3,341,728 2,641,496 2,263,002 2,119,231
--------------------------------------------------------------
7,610,408 6,929,743 6,287,038 6,027,177 6,306,724
Ratio of earnings (as defined above) to fixed charges
Excluding interest on deposits
Earnings before fixed charges 7,324,306 5,711,185 4,179,765 2,853,637 3,791,487
Fixed charges 4,440,146 3,341,728 2,641,496 2,263,002 2,119,231
Ratio 1.65x 1.71x 1.58x 1.26x 1.79x
Including interest on deposits
Earnings before fixed charges 10,494,568 9,299,200 7,825,307 6,617,812 7,978,980
Fixed charges 7,610,408 6,929,743 6,287,038 6,027,177 6,306,724
Ratio 1.38x 1.34x 1.24x 1.10x 1.27x
</TABLE>
<PAGE> 1
EXHIBIT 23.1
CONSENT OF INDEPENDENT ACCOUNTANTS
We hereby consent to the incorporation by reference in this 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.'s 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 Registration Statement.
PricewaterhouseCoopers LLP
Los Angeles, California
February 23, 2000
<PAGE> 1
EXHIBIT 23.2
INDEPENDENT AUDITOR'S 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
Seattle, Washington
February 23, 2000
<PAGE> 1
EXHIBIT 23.3
CONSENT OF INDEPENDENT AUDITORS
We consent to the incorporation by reference in the 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/ KMPG LLP
Los Angeles, California
February 23, 2000
<PAGE> 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
(I.R.S. Employer
(State of Incorporation) Identification No.)
111 West Monroe Street, Chicago, Illinois 60603
(Address of principal executive offices)
Marianne Tinerella, Harris Trust and Savings Bank,
311 West Monroe Street, Chicago, Illinois, 60606
312-461-2420
(Name, address and telephone number for agent for service)
WASHINGTON MUTUAL, INC.
(Name of Obligor)
Washington 91-1653725
(I.R.S. Employer
(State of Incorporation) Identification No.)
1201 Third Avenue
Seattle, WA 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. thru 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 Commercial
Federal Corporation, File No. 33320711, 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 C-Cube Microsystems,
Inc., File No. 33-97166, 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)
<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 2nd day of September, 1999.
HARRIS TRUST AND SAVINGS BANK
By: /s/ M. TINERELLA
----------------------------
M. Tinerella
Trust Officer
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 September 30, 1999, 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 September 30, 1999, 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............... $1,139,804
Interest bearing balances......................................... $223,943
Securities:.....................................................................
a. Held-to-maturity securities $0
b. Available-for-sale securities $5,773,313
Federal funds sold and securities purchased under agreements to resell $148,650
Loans and lease financing receivables:
Loans and leases, net of unearned income.......................... $9,752,500
LESS: Allowance for loan and lease losses........................ $111,660
----------
Loans and leases, net of unearned income, allowance, and reserve
(item 4.a minus 4.b).............................................. $9,640,840
Assets held in trading accounts................................................. $193,520
Premises and fixed assets (including capitalized leases)........................ $271,847
Other real estate owned......................................................... $339
Investments in unconsolidated subsidiaries and associated companies............. $0
Customer's liability to this bank on acceptances outstanding.................... $44,067
Intangible assets............................................................... $245,968
Other assets.................................................................... $1,328,114
--------------------------
TOTAL ASSETS $19,010,405
==========================
</TABLE>
3
<PAGE> 5
<TABLE>
<CAPTION>
LIABILITIES
<S> <C> <C>
Deposits:
In domestic offices........................................................ $9,579,731
Non-interest bearing.............................................. $2,953,755
Interest bearing.................................................. $6,625,976
In foreign offices, Edge and Agreement subsidiaries, and IBF'S............. $1,396,781
Non-interest bearing.............................................. $21,682
Interest bearing.................................................. $1,375,099
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........ $3,951,113
Trading Liabilities 91,252
Other borrowed money:...........................................................
a. With remaining maturity of one year or less $1,978,203
b. With remaining maturity of more than one year $0
Bank's liability on acceptances executed and outstanding $44,067
Subordinated notes and debentures............................................... $225,000
Other liabilities............................................................... $481,642
=========================
TOTAL LIABILITIES $17,747,789
=========================
EQUITY CAPITAL
Common stock.................................................................... $100,000
Surplus......................................................................... $609,913
a. Undivided profits and capital reserves $657,705
b. Net unrealized holding gains (losses) on available-for-sale securities ($105,002)
-------------------------
TOTAL EQUITY CAPITAL $1,262,616
=========================
Total liabilities, limited-life preferred stock, and equity capital............. $19,010,405
=========================
</TABLE>
I, Christy Wipper, 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.
CHRISTY WIPPER
10/26/99
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.
ALAN G. McNALLY,
EDWARD W. LYMAN,
LEO M. HENIKOFF
Directors.
4
<PAGE> 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
(I.R.S. Employer
(State of Incorporation) Identification No.)
111 West Monroe Street, Chicago, Illinois 60603
(Address of principal executive offices)
Marianne Tinerella, Harris Trust and Savings Bank,
311 West Monroe Street, Chicago, Illinois, 60606
312-461-2420
(Name, address and telephone number for agent for service)
WASHINGTON MUTUAL, INC.
(Name of Obligor)
Washington 91-1653725
(I.R.S. Employer
(State of Incorporation) Identification No.)
1201 Third Avenue
Seattle, WA 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. thru 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 Commercial
Federal Corporation, File No. 33320711, 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 C-Cube Microsystems,
Inc., File No. 33-97166, 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)
<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 2nd day of September, 1999.
HARRIS TRUST AND SAVINGS BANK
By: /s/ M. TINERELLA
----------------------------
M. Tinerella
Trust Officer
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 September 30, 1999, 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 September 30, 1999, 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............... $1,139,804
Interest bearing balances......................................... $223,943
Securities:.....................................................................
a. Held-to-maturity securities $0
b. Available-for-sale securities $5,773,313
Federal funds sold and securities purchased under agreements to resell $148,650
Loans and lease financing receivables:
Loans and leases, net of unearned income.......................... $9,752,500
LESS: Allowance for loan and lease losses........................ $111,660
----------
Loans and leases, net of unearned income, allowance, and reserve
(item 4.a minus 4.b).............................................. $9,640,840
Assets held in trading accounts................................................. $193,520
Premises and fixed assets (including capitalized leases)........................ $271,847
Other real estate owned......................................................... $339
Investments in unconsolidated subsidiaries and associated companies............. $0
Customer's liability to this bank on acceptances outstanding.................... $44,067
Intangible assets............................................................... $245,968
Other assets.................................................................... $1,328,114
--------------------------
TOTAL ASSETS $19,010,405
==========================
</TABLE>
3
<PAGE> 5
<TABLE>
<CAPTION>
LIABILITIES
<S> <C> <C>
Deposits:
In domestic offices........................................................ $9,579,731
Non-interest bearing.............................................. $2,953,755
Interest bearing.................................................. $6,625,976
In foreign offices, Edge and Agreement subsidiaries, and IBF'S............. $1,396,781
Non-interest bearing.............................................. $21,682
Interest bearing.................................................. $1,375,099
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........ $3,951,113
Trading Liabilities 91,252
Other borrowed money:...........................................................
a. With remaining maturity of one year or less $1,978,203
b. With remaining maturity of more than one year $0
Bank's liability on acceptances executed and outstanding $44,067
Subordinated notes and debentures............................................... $225,000
Other liabilities............................................................... $481,642
=========================
TOTAL LIABILITIES $17,747,789
=========================
EQUITY CAPITAL
Common stock.................................................................... $100,000
Surplus......................................................................... $609,913
a. Undivided profits and capital reserves $657,705
b. Net unrealized holding gains (losses) on available-for-sale securities ($105,002)
-------------------------
TOTAL EQUITY CAPITAL $1,262,616
=========================
Total liabilities, limited-life preferred stock, and equity capital............. $19,010,405
=========================
</TABLE>
I, Christy Wipper, 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.
CHRISTY WIPPER
10/26/99
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.
ALAN G. McNALLY,
EDWARD W. LYMAN,
LEO M. HENIKOFF
Directors.
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